Conference Committee Report - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am
1.1 CONFERENCE COMMITTEE REPORT ON H.F. NO. 2277 1.2 A bill for an act 1.3 relating to human services; making changes to 1.4 licensing provisions; regulating child protection 1.5 dispositions; clarifying a mental health case 1.6 management provision; changing a provision under child 1.7 welfare targeted case management; regulating child 1.8 care, long-term care, and health care; amending 1.9 Minnesota Statutes 2002, sections 119B.011, by adding 1.10 a subdivision; 119B.03, subdivisions 3, 6a, by adding 1.11 a subdivision; 245.4881, subdivision 1; 245.814, 1.12 subdivision 1; 245A.02, subdivisions 2a, 5a, 7, 10, 1.13 14, by adding a subdivision; 245A.03, subdivision 3; 1.14 245A.04, subdivisions 5, 6, 7, by adding a 1.15 subdivision; 245A.05; 245A.06, subdivisions 2, 4; 1.16 245A.07, subdivisions 2, 2a, 3; 245A.08, subdivision 1.17 5; 245A.16, subdivision 4; 245A.22, subdivision 2; 1.18 245B.02, by adding a subdivision; 245B.05, subdivision 1.19 2; 245B.07, subdivisions 8, 12; 252.28, subdivision 1; 1.20 256.01, by adding a subdivision; 256.955, subdivisions 1.21 2, 2b; 256B.0625, by adding a subdivision; 256B.0911, 1.22 subdivision 4a; 256F.10, subdivision 5; 256J.01, 1.23 subdivision 1; 256J.08, subdivisions 73, 82a; 256J.21, 1.24 subdivision 3; 256J.415; 256J.425, subdivision 5; 1.25 260C.212, subdivision 5; Minnesota Statutes 2003 1.26 Supplement, sections 119B.011, subdivisions 8, 10, 20; 1.27 119B.03, subdivision 4; 119B.05, subdivision 1; 1.28 119B.09, subdivision 7; 119B.12, subdivision 2; 1.29 119B.13, subdivisions 1, 1a; 119B.189, subdivisions 2, 1.30 4; 119B.19, subdivision 1; 119B.24; 119B.25, 1.31 subdivision 2; 241.021, subdivision 6; 245.4874; 1.32 245A.03, subdivision 2; 245A.04, subdivision 1; 1.33 245A.08, subdivisions 1, 2a; 245A.085; 245A.11, 1.34 subdivisions 2a, 2b; 245A.16, subdivision 1; 245A.22, 1.35 subdivision 3; 245C.02, subdivision 18; 245C.03, 1.36 subdivision 1, by adding a subdivision; 245C.05, 1.37 subdivisions 1, 2, 5, 6; 245C.08, subdivisions 2, 3, 1.38 4; 245C.09, subdivision 1; 245C.13, subdivision 1; 1.39 245C.14, subdivision 1; 245C.15, subdivisions 2, 3, 4; 1.40 245C.16, subdivision 1; 245C.17, subdivisions 1, 3; 1.41 245C.18; 245C.20; 245C.21, subdivision 3, by adding a 1.42 subdivision; 245C.22, subdivisions 3, 4, 5, 6; 1.43 245C.23, subdivisions 1, 2; 245C.25; 245C.26; 245C.27, 1.44 subdivisions 1, 2; 245C.28, subdivisions 1, 2, 3; 1.45 245C.29, subdivision 2; 256.01, subdivision 2; 2.1 256.045, subdivisions 3, 3b; 256.046, subdivision 1; 2.2 256.955, subdivision 2a; 256.98, subdivision 8; 2.3 256B.0596; 256B.06, subdivision 4; 256B.0625, 2.4 subdivision 9; 256B.0915, subdivisions 3a, 3b; 2.5 256B.431, subdivision 32; 256B.69, subdivision 6b; 2.6 256D.03, subdivisions 3, 4; 256J.09, subdivision 3b; 2.7 256J.24, subdivision 5; 256J.32, subdivisions 2, 8; 2.8 256J.37, subdivision 9; 256J.425, subdivisions 1, 4, 2.9 6; 256J.46, subdivision 1; 256J.49, subdivision 4; 2.10 256J.515; 256J.521, subdivisions 1, 2; 256J.53, 2.11 subdivision 2; 256J.56; 256J.57, subdivision 1; 2.12 256J.626, subdivision 2; 256J.751, subdivision 2; 2.13 256J.95, subdivisions 1, 3, 11, 12, 19; 626.556, 2.14 subdivision 10i; 626.557, subdivision 9d; proposing 2.15 coding for new law in Minnesota Statutes, chapters 2.16 245A; 245B; repealing Minnesota Statutes 2002, 2.17 sections 119B.211; 256D.051, subdivision 17; Minnesota 2.18 Statutes 2003 Supplement, sections 245C.02, 2.19 subdivision 17; Laws 2000, chapter 489, article 1, 2.20 section 36; Laws 2003, First Special Session chapter 2.21 14, article 3, section 56; Minnesota Rules, parts 2.22 9525.1600; 9543.0040, subpart 3; 9543.1000; 9543.1010; 2.23 9543.1020; 9543.1030; 9543.1040; 9543.1050; 9543.1060. 2.24 May 15, 2004 2.25 The Honorable Steve Sviggum 2.26 Speaker of the House of Representatives 2.28 The Honorable James P. Metzen 2.29 President of the Senate 2.31 We, the undersigned conferees for H.F. No. 2277, report 2.32 that we have agreed upon the items in dispute and recommend as 2.33 follows: 2.34 2.35 That the Senate recede from its amendments and that H.F. No. 2.36 2277 be further amended as follows: 2.37 Delete everything after the enacting clause and insert: 2.38 "ARTICLE 1 2.39 HUMAN SERVICES 2.40 Section 1. Minnesota Statutes 2002, section 245.814, 2.41 subdivision 1, is amended to read: 2.42 Subdivision 1. [INSURANCE FOR FOSTER HOME PROVIDERS.] The 2.43 commissioner of human services shall within the appropriation 2.44 provided purchase and provide insurance to individuals licensed 2.45 as foster home providers to cover their liability for: 2.46 (1) injuries or property damage caused or sustained by 2.47 persons in foster care in their home; and 2.48 (2) actions arising out of alienation of affections 2.49 sustained by the birth parents of a foster child or birth 2.50 parents or children of a foster adult. 3.1 For purposes of this subdivision, insurance for homes 3.2 licensed to provide adult foster care shall be limited to family 3.3 adult foster care homes as defined in section 144D.01, 3.4 subdivision 7, and family adult day services licensed under 3.5 section 245A.143. 3.6 Sec. 2. Minnesota Statutes 2002, section 245A.02, 3.7 subdivision 2a, is amended to read: 3.8 Subd. 2a. [ADULT DAY CARE OR FAMILY ADULT DAY SERVICES.] 3.9 "Adult day care,"
means"adult day services," and "family adult 3.10 day services" mean a program operating less than 24 hours per 3.11 day that provides functionally impaired adults with an 3.12 individualized and coordinated set of services including health 3.13 services, social services, and nutritional services that are 3.14 directed at maintaining or improving the participants' 3.15 capabilities for self-care. Adult day care does, adult day 3.16 services, and family adult day services do not include programs 3.17 where adults gather or congregate primarily for purposes of 3.18 socialization, education, supervision, caregiver respite, 3.19 religious expression, exercise, or nutritious meals. 3.20 Sec. 3. Minnesota Statutes 2002, section 245A.02, 3.21 subdivision 5a, is amended to read: 3.22 Subd. 5a. [CONTROLLING INDIVIDUAL.] "Controlling 3.23 individual" means a public body, governmental agency, business 3.24 entity, officer, program administrator, or directorowner, or 3.25 managerial official whose responsibilities include the direction 3.26 of the management or policies of a program. Controlling3.27 individual also means an individual who, directly or indirectly,3.28 beneficially owns an interest in a corporation, partnership, or3.29 other business association that is a controlling individualFor 3.30 purposes of this subdivision, owner means an individual who has 3.31 direct or indirect ownership interest in a corporation, 3.32 partnership, or other business association issued a license 3.33 under this chapter. For purposes of this subdivision, 3.34 managerial official means those individuals who have the 3.35 decision-making authority related to the operation of the 3.36 program, and the responsibility for the ongoing management of or 4.1 direction of the policies, services, or employees of the 4.2 program. Controlling individual does not include: 4.3 (1) a bank, savings bank, trust company, savings 4.4 association, credit union, industrial loan and thrift company, 4.5 investment banking firm, or insurance company unless the entity 4.6 operates a program directly or through a subsidiary; 4.7 (2) an individual who is a state or federal official, or 4.8 state or federal employee, or a member or employee of the 4.9 governing body of a political subdivision of the state or 4.10 federal government that operates one or more programs, unless 4.11 the individual is also an officer, owner, or directormanagerial 4.12 official of the program, receives remuneration from the program, 4.13 or owns any of the beneficial interests not excluded in this 4.14 subdivision; 4.15 (3) an individual who owns less than five percent of the 4.16 outstanding common shares of a corporation: 4.17 (i) whose securities are exempt under section 80A.15, 4.18 subdivision 1, clause (f); or 4.19 (ii) whose transactions are exempt under section 80A.15, 4.20 subdivision 2, clause (b); or 4.21 (4) an individual who is a member of an organization exempt 4.22 from taxation under section 290.05, unless the individual is 4.23 also an officer, owner, or directormanagerial official of the 4.24 program or owns any of the beneficial interests not excluded in 4.25 this subdivision. This clause does not exclude from the 4.26 definition of controlling individual an organization that is 4.27 exempt from taxation. 4.28 Sec. 4. Minnesota Statutes 2002, section 245A.02, is 4.29 amended by adding a subdivision to read: 4.30 Subd. 6c. [FOSTER CARE FOR ADULTS.] "Foster care for 4.31 adults" means a program operating 24 hours a day that provides 4.32 functionally impaired adults with food, lodging, protection, 4.33 supervision, and household services in a residence, in addition 4.34 to services according to the individual service plans under 4.35 Minnesota Rules, part 9555.5105, subpart 18. 4.36 Sec. 5. Minnesota Statutes 2002, section 245A.02, 5.1 subdivision 7, is amended to read: 5.2 Subd. 7. [FUNCTIONAL IMPAIRMENT.] For the purposes of 5.3 adult day care, adult day services, family adult day services, 5.4 or adult foster care, "functional impairment" means: 5.5 (1) a condition that is characterized by substantial 5.6 difficulty in carrying out one or more of the essential major 5.7 activities of daily living, such as caring for oneself, 5.8 performing manual tasks, walking, seeing, hearing, speaking, 5.9 breathing, learning, working; or 5.10 (2) a disorder of thought or mood that significantly 5.11 impairs judgment, behavior, capacity to recognize reality, or 5.12 ability to cope with the ordinary demands of life and that 5.13 requires support to maintain independence in the community. 5.14 Sec. 6. Minnesota Statutes 2002, section 245A.02, 5.15 subdivision 10, is amended to read: 5.16 Subd. 10. [NONRESIDENTIAL PROGRAM.] "Nonresidential 5.17 program" means care, supervision, rehabilitation, training or 5.18 habilitation of a person provided outside the person's own home 5.19 and provided for fewer than 24 hours a day, including adult day 5.20 care programs; a nursing home that receives public funds to5.21 provide services for five or more persons whose primary5.22 diagnosis is mental retardation or a related condition or mental5.23 illness and who do not have a significant physical or medical5.24 problem that necessitates nursing home care; a nursing home or5.25 hospital that was licensed by the commissioner on July 1, 1987,5.26 to provide a program for persons with a physical handicap that5.27 is not the result of the normal aging process and considered to5.28 be a chronic condition;and chemical dependency or chemical 5.29 abuse programs that are located in a nursing home or hospital 5.30 and receive public funds for providing chemical abuse or 5.31 chemical dependency treatment services under chapter 254B. 5.32 Nonresidential programs include home and community-based 5.33 services and semi-independent living services for persons with 5.34 mental retardation or a related condition that are provided in 5.35 or outside of a person's own home. 5.36 Sec. 7. Minnesota Statutes 2002, section 245A.02, 6.1 subdivision 14, is amended to read: 6.2 Subd. 14. [RESIDENTIAL PROGRAM.] "Residential program" 6.3 means a program that provides 24-hour-a-day care, supervision, 6.4 food, lodging, rehabilitation, training, education, 6.5 habilitation, or treatment outside a person's own home, 6.6 including a nursing home or hospital that receives public funds,6.7 administered by the commissioner, to provide services for five6.8 or more persons whose primary diagnosis is mental retardation or6.9 a related condition or mental illness and who do not have a6.10 significant physical or medical problem that necessitates6.11 nursing home care;a program in an intermediate care facility 6.12 for four or more persons with mental retardation or a related 6.13 condition; a nursing home or hospital that was licensed by the6.14 commissioner on July 1, 1987, to provide a program for persons6.15 with a physical handicap that is not the result of the normal6.16 aging process and considered to be a chronic condition;and 6.17 chemical dependency or chemical abuse programs that are located 6.18 in a hospital or nursing home and receive public funds for 6.19 providing chemical abuse or chemical dependency treatment 6.20 services under chapter 254B. Residential programs include home 6.21 and community-based services for persons with mental retardation 6.22 or a related condition that are provided in or outside of a 6.23 person's own home. 6.24 Sec. 8. Minnesota Statutes 2003 Supplement, section 6.25 245A.03, subdivision 2, is amended to read: 6.26 Subd. 2. [EXCLUSION FROM LICENSURE.] (a) This chapter does 6.27 not apply to: 6.28 (1) residential or nonresidential programs that are 6.29 provided to a person by an individual who is related unless the 6.30 residential program is a child foster care placement made by a 6.31 local social services agency or a licensed child-placing agency, 6.32 except as provided in subdivision 2a; 6.33 (2) nonresidential programs that are provided by an 6.34 unrelated individual to persons from a single related family; 6.35 (3) residential or nonresidential programs that are 6.36 provided to adults who do not abuse chemicals or who do not have 7.1 a chemical dependency, a mental illness, mental retardation or a 7.2 related condition, a functional impairment, or a physical 7.3 handicap; 7.4 (4) sheltered workshops or work activity programs that are 7.5 certified by the commissioner of economic security; 7.6 (5) programs operated by a public school for children 7.7 enrolled in kindergarten to the 12th grade and prekindergarten7.8 special education in a school as defined in section 120A.22,7.9 subdivision 4, and programs serving children in combined special7.10 education and regular prekindergarten programs that are operated7.11 or assisted by the commissioner of education33 months or older; 7.12 (6) nonresidential programs primarily for children that 7.13 provide care or supervision , without charge for ten or fewer7.14 days a year, andfor periods of less than three hours a day 7.15 while the child's parent or legal guardian is in the same 7.16 building as the nonresidential program or present within another 7.17 building that is directly contiguous to the building in which 7.18 the nonresidential program is located; 7.19 (7) nursing homes or hospitals licensed by the commissioner 7.20 of health except as specified under section 245A.02; 7.21 (8) board and lodge facilities licensed by the commissioner 7.22 of health that provide services for five or more persons whose 7.23 primary diagnosis is mental illness who have refused an7.24 appropriate residential program offered by a county agencythat 7.25 do not provide intensive residential treatment; 7.26 (9) homes providing programs for persons placed there by a 7.27 licensed agency for legal adoption, unless the adoption is not 7.28 completed within two years; 7.29 (10) programs licensed by the commissioner of corrections; 7.30 (11) recreation programs for children or adults that 7.31 operate for fewer than 40 calendar days in a calendar year or7.32 programs operatedare operated or approved by a park and 7.33 recreation board of a city of the first classwhose primary 7.34 purpose is to provide social and recreational activities to7.35 school age children, provided the program is approved by the7.36 park and recreation board; 8.1 (12) programs operated by a school as defined in section 8.2 120A.22, subdivision 4, whose primary purpose is to provide 8.3 child care to school-age children , provided the program is8.4 approved by the district's school board; 8.5 (13) Head Start nonresidential programs which operate for 8.6 less than 31 days in each calendar year; 8.7 (14) noncertified boarding care homes unless they provide 8.8 services for five or more persons whose primary diagnosis is 8.9 mental illness or mental retardation; 8.10 (15) nonresidential programs for nonhandicappedchildren 8.11 provided for a cumulative total of less than 30 days in any 8.12 12-month period; 8.13 (16) residential programs for persons with mental illness, 8.14 that are located in hospitals , until the commissioner adopts8.15 appropriate rules; 8.16 (17) the religious instruction of school-age children; 8.17 Sabbath or Sunday schools; or the congregate care of children by 8.18 a church, congregation, or religious society during the period 8.19 used by the church, congregation, or religious society for its 8.20 regular worship; 8.21 (18) camps licensed by the commissioner of health under 8.22 Minnesota Rules, chapter 4630; 8.23 (19) mental health outpatient services for adults with 8.24 mental illness or children with emotional disturbance; 8.25 (20) residential programs serving school-age children whose 8.26 sole purpose is cultural or educational exchange, until the 8.27 commissioner adopts appropriate rules; 8.28 (21) unrelated individuals who provide out-of-home respite 8.29 care services to persons with mental retardation or related 8.30 conditions from a single related family for no more than 90 days 8.31 in a 12-month period and the respite care services are for the 8.32 temporary relief of the person's family or legal representative; 8.33 (22) respite care services provided as a home and 8.34 community-based service to a person with mental retardation or a 8.35 related condition, in the person's primary residence; 8.36 (23) community support services programs as defined in 9.1 section 245.462, subdivision 6, and family community support 9.2 services as defined in section 245.4871, subdivision 17; 9.3 (24) the placement of a child by a birth parent or legal 9.4 guardian in a preadoptive home for purposes of adoption as 9.5 authorized by section 259.47; 9.6 (25) settings registered under chapter 144D which provide 9.7 home care services licensed by the commissioner of health to 9.8 fewer than seven adults; or 9.9 (26) consumer-directed community support service funded 9.10 under the Medicaid waiver for persons with mental retardation 9.11 and related conditions when the individual who provided the 9.12 service is: 9.13 (i) the same individual who is the direct payee of these 9.14 specific waiver funds or paid by a fiscal agent, fiscal 9.15 intermediary, or employer of record; and 9.16 (ii) not otherwise under the control of a residential or 9.17 nonresidential program that is required to be licensed under 9.18 this chapter when providing the service. 9.19 (b) For purposes of paragraph (a), clause (6), a building 9.20 is directly contiguous to a building in which a nonresidential 9.21 program is located if it shares a common wall with the building 9.22 in which the nonresidential program is located or is attached to 9.23 that building by skyway, tunnel, atrium, or common roof. 9.24 (c) Nothing in this chapter shall be construed to require 9.25 licensure for any services provided and funded according to an 9.26 approved federal waiver plan where licensure is specifically 9.27 identified as not being a condition for the services and funding. 9.28 Sec. 9. Minnesota Statutes 2002, section 245A.03, 9.29 subdivision 3, is amended to read: 9.30 Subd. 3. [UNLICENSED PROGRAMS.] (a) It is a misdemeanor 9.31 for an individual, corporation, partnership, voluntary 9.32 association, other organization, or a controlling individual to 9.33 provide a residential or nonresidential program without a 9.34 license and in willful disregard of this chapter unless the 9.35 program is excluded from licensure under subdivision 2. 9.36 (b) If, after receiving notice that a license is required,10.1 the individual, corporation, partnership, voluntary association,10.2 other organization, or controlling individual has failed to10.3 apply for a license,The commissioner may ask the appropriate 10.4 county attorney or the attorney general to begin proceedings to 10.5 secure a court order against the continued operation of the 10.6 program, if an individual, corporation, partnership, voluntary 10.7 association, other organization, or controlling individual has: 10.8 (1) failed to apply for a license after receiving notice 10.9 that a license is required; 10.10 (2) continued to operate without a license after the 10.11 license has been revoked or suspended under section 245A.07, and 10.12 the commissioner has issued a final order affirming the 10.13 revocation or suspension, or the license holder did not timely 10.14 appeal the sanction; or 10.15 (3) continued to operate without a license after the 10.16 license has been temporarily suspended under section 245A.07. 10.17 The county attorney and the attorney general have a duty to 10.18 cooperate with the commissioner. 10.19 Sec. 10. Minnesota Statutes 2003 Supplement, section 10.20 245A.04, subdivision 1, is amended to read: 10.21 Subdivision 1. [APPLICATION FOR LICENSURE.] (a) An 10.22 individual, corporation, partnership, voluntary association, 10.23 other organization or controlling individual that is subject to 10.24 licensure under section 245A.03 must apply for a license. The 10.25 application must be made on the forms and in the manner 10.26 prescribed by the commissioner. The commissioner shall provide 10.27 the applicant with instruction in completing the application and 10.28 provide information about the rules and requirements of other 10.29 state agencies that affect the applicant. An applicant seeking 10.30 licensure in Minnesota with headquarters outside of Minnesota 10.31 must have a program office located within the state. 10.32 The commissioner shall act on the application within 90 10.33 working days after a complete application and any required 10.34 reports have been received from other state agencies or 10.35 departments, counties, municipalities, or other political 10.36 subdivisions. The commissioner shall not consider an 11.1 application to be complete until the commissioner receives all 11.2 of the information required under section 245C.05. 11.3 (b) An application for licensure must specify one or more 11.4 controlling individuals as an agent who is responsible for 11.5 dealing with the commissioner of human services on all matters 11.6 provided for in this chapter and on whom service of all notices 11.7 and orders must be made. The agent must be authorized to accept 11.8 service on behalf of all of the controlling individuals of the 11.9 program. Service on the agent is service on all of the 11.10 controlling individuals of the program. It is not a defense to 11.11 any action arising under this chapter that service was not made 11.12 on each controlling individual of the program. The designation 11.13 of one or more controlling individuals as agents under this 11.14 paragraph does not affect the legal responsibility of any other 11.15 controlling individual under this chapter. 11.16 (c) An applicant or license holder must have a policy that 11.17 prohibits license holders, employees, subcontractors, and 11.18 volunteers, when directly responsible for persons served by the 11.19 program, from abusing prescription medication or being in any 11.20 manner under the influence of a chemical that impairs the 11.21 individual's ability to provide services or care. The license 11.22 holder must train employees, subcontractors, and volunteers 11.23 about the program's drug and alcohol policy. 11.24 (d) An applicant and license holder must have a program 11.25 grievance procedure that permits persons served by the program 11.26 and their authorized representatives to bring a grievance to the 11.27 highest level of authority in the program. 11.28 Sec. 11. Minnesota Statutes 2002, section 245A.04, 11.29 subdivision 5, is amended to read: 11.30 Subd. 5. [COMMISSIONER'S RIGHT OF ACCESS.] When the 11.31 commissioner is exercising the powers conferred by this 11.32 chapter and section 245.69, the commissioner must be given 11.33 access to the physical plant and grounds where the program is 11.34 provided, documents, persons served by the program, and staff 11.35 whenever the program is in operation and the information is 11.36 relevant to inspections or investigations conducted by the 12.1 commissioner. The commissioner must be given access without 12.2 prior notice and as often as the commissioner considers 12.3 necessary if the commissioner is conducting an investigation of 12.4 allegations of maltreatment or other violation of applicable 12.5 laws or rules. In conducting inspections, the commissioner may 12.6 request and shall receive assistance from other state, county, 12.7 and municipal governmental agencies and departments. The 12.8 applicant or license holder shall allow the commissioner to 12.9 photocopy, photograph, and make audio and video tape recordings 12.10 during the inspection of the program at the commissioner's 12.11 expense. The commissioner shall obtain a court order or the 12.12 consent of the subject of the records or the parents or legal 12.13 guardian of the subject before photocopying hospital medical 12.14 records. 12.15 Persons served by the program have the right to refuse to 12.16 consent to be interviewed, photographed, or audio or videotaped. 12.17 Failure or refusal of an applicant or license holder to fully 12.18 comply with this subdivision is reasonable cause for the 12.19 commissioner to deny the application or immediately suspend or 12.20 revoke the license. 12.21 Sec. 12. Minnesota Statutes 2002, section 245A.04, 12.22 subdivision 6, is amended to read: 12.23 Subd. 6. [COMMISSIONER'S EVALUATION.] Before issuing, 12.24 denying, suspending, revoking, or making conditional a license, 12.25 the commissioner shall evaluate information gathered under this 12.26 section. The commissioner's evaluation shall consider facts, 12.27 conditions, or circumstances concerning the program's operation, 12.28 the well-being of persons served by the program, available 12.29 consumer evaluations of the program, and information about the 12.30 qualifications of the personnel employed by the applicant or 12.31 license holder. 12.32 The commissioner shall evaluate the results of the study 12.33 required in subdivision 3 and determine whether a risk of harm 12.34 to the persons served by the program exists. In conducting this 12.35 evaluation, the commissioner shall apply the disqualification 12.36 standards set forth in rules adopted under thischapter 245C. 13.1 Sec. 13. Minnesota Statutes 2002, section 245A.04, 13.2 subdivision 7, is amended to read: 13.3 Subd. 7. [ISSUANCE OF A LICENSE; EXTENSION OF A LICENSE.] 13.4 (a) If the commissioner determines that the program complies 13.5 with all applicable rules and laws, the commissioner shall issue 13.6 a license. At minimum, the license shall state: 13.7 (1) the name of the license holder; 13.8 (2) the address of the program; 13.9 (3) the effective date and expiration date of the license; 13.10 (4) the type of license; 13.11 (5) the maximum number and ages of persons that may receive 13.12 services from the program; and 13.13 (6) any special conditions of licensure. 13.14 (b) The commissioner may issue an initial license for a 13.15 period not to exceed two years if: 13.16 (1) the commissioner is unable to conduct the evaluation or 13.17 observation required by subdivision 4, paragraph (a), clauses (3) 13.18 and (4), because the program is not yet operational; 13.19 (2) certain records and documents are not available because 13.20 persons are not yet receiving services from the program; and 13.21 (3) the applicant complies with applicable laws and rules 13.22 in all other respects. 13.23 (c) A decision by the commissioner to issue a license does 13.24 not guarantee that any person or persons will be placed or cared 13.25 for in the licensed program. A license shall not be 13.26 transferable to another individual, corporation, partnership, 13.27 voluntary association, other organization, or controlling or to 13.28 another location. 13.29 (d) A license holder must notify the commissioner and 13.30 obtain the commissioner's approval before making any changes 13.31 that would alter the license information listed under paragraph 13.32 (a). 13.33 (e) The commissioner shall not issue a license if the 13.34 applicant, license holder, or controlling individual has: 13.35 (1) been disqualified and the disqualification was not set 13.36 aside; 14.1 (2) has been denied a license within the past two years; or 14.2 (3) had a license revoked within the past five years. 14.3 For purposes of reimbursement for meals only, under the 14.4 Child and Adult Care Food Program, Code of Federal Regulations, 14.5 title 7, subtitle B, chapter II, subchapter A, part 226, 14.6 relocation within the same county by a licensed family day care 14.7 provider, shall be considered an extension of the license for a 14.8 period of no more than 30 calendar days or until the new license 14.9 is issued, whichever occurs first, provided the county agency 14.10 has determined the family day care provider meets licensure 14.11 requirements at the new location. 14.12 Unless otherwise specified by statute, all licenses expire 14.13 at 12:01 a.m. on the day after the expiration date stated on the 14.14 license. A license holder must apply for and be granted a new 14.15 license to operate the program or the program must not be 14.16 operated after the expiration date. 14.17 Sec. 14. Minnesota Statutes 2002, section 245A.04, is 14.18 amended by adding a subdivision to read: 14.19 Subd. 13. [RESIDENTIAL PROGRAMS HANDLING RESIDENT FUNDS 14.20 AND PROPERTY; ADDITIONAL REQUIREMENTS.] (a) A license holder 14.21 must ensure that residents retain the use and availability of 14.22 personal funds or property unless restrictions are justified in 14.23 the resident's individual plan. 14.24 (b) The license holder must ensure separation of resident 14.25 funds from funds of the license holder, the residential program, 14.26 or program staff. 14.27 (c) Whenever the license holder assists a resident with the 14.28 safekeeping of funds or other property, the license holder must: 14.29 (1) immediately document receipt and disbursement of the 14.30 resident's funds or other property at the time of receipt or 14.31 disbursement, including the signature of the resident, 14.32 conservator, or payee; 14.33 (2) provide a statement, at least quarterly, itemizing 14.34 receipts and disbursements of resident funds or other property; 14.35 and 14.36 (3) return to the resident upon the resident's request, 15.1 funds and property in the license holder's possession subject to 15.2 restrictions in the resident's treatment plan, as soon as 15.3 possible, but no later than three working days after the date of 15.4 request. 15.5 (d) License holders and program staff must not: 15.6 (1) borrow money from a resident; 15.7 (2) purchase personal items from a resident; 15.8 (3) sell merchandise or personal services to a resident; 15.9 (4) require a resident to purchase items for which the 15.10 license holder is eligible for reimbursement; or 15.11 (5) use resident funds to purchase items for which the 15.12 facility is already receiving public or private payments. 15.13 Sec. 15. Minnesota Statutes 2002, section 245A.05, is 15.14 amended to read: 15.15 245A.05 [DENIAL OF APPLICATION.] 15.16 The commissioner may deny a license if an applicant fails 15.17 to comply with applicable laws or rules, or knowingly withholds 15.18 relevant information from or gives false or misleading 15.19 information to the commissioner in connection with an 15.20 application for a license or during an investigation. An 15.21 applicant whose application has been denied by the commissioner 15.22 must be given notice of the denial. Notice must be given by 15.23 certified mail or personal service. The notice must state the 15.24 reasons the application was denied and must inform the applicant 15.25 of the right to a contested case hearing under chapter 14 and 15.26 Minnesota Rules, parts 1400.85101400.8505 to 1400.8612 and15.27 successor rules. The applicant may appeal the denial by 15.28 notifying the commissioner in writing by certified mail or 15.29 personal service within 20 calendar days after receiving notice 15.30 that the application was denied. Section 245A.08 applies to 15.31 hearings held to appeal the commissioner's denial of an 15.32 application. 15.33 Sec. 16. Minnesota Statutes 2002, section 245A.06, 15.34 subdivision 2, is amended to read: 15.35 Subd. 2. [RECONSIDERATION OF CORRECTION ORDERS.] If the 15.36 applicant or license holder believes that the contents of the 16.1 commissioner's correction order are in error, the applicant or 16.2 license holder may ask the Department of Human Services to 16.3 reconsider the parts of the correction order that are alleged to 16.4 be in error. The request for reconsideration must be made in 16.5 writing and received bymust be postmarked and sent to the 16.6 commissioner within 20 calendar days after receipt of the 16.7 correction order by the applicant or license holder, and: 16.8 (1) specify the parts of the correction order that are 16.9 alleged to be in error; 16.10 (2) explain why they are in error; and 16.11 (3) include documentation to support the allegation of 16.12 error. 16.13 A request for reconsideration does not stay any provisions 16.14 or requirements of the correction order. The commissioner's 16.15 disposition of a request for reconsideration is final and not 16.16 subject to appeal under chapter 14. 16.17 Sec. 17. Minnesota Statutes 2002, section 245A.06, 16.18 subdivision 4, is amended to read: 16.19 Subd. 4. [NOTICE OF CONDITIONAL LICENSE; RECONSIDERATION 16.20 OF CONDITIONAL LICENSE.] If a license is made conditional, the 16.21 license holder must be notified of the order by certified 16.22 mail or personal service. If mailed, the notice must be mailed 16.23 to the address shown on the application or the last known 16.24 address of the license holder. The notice must state the 16.25 reasons the conditional license was ordered and must inform the 16.26 license holder of the right to request reconsideration of the 16.27 conditional license by the commissioner. The license holder may 16.28 request reconsideration of the order of conditional license by 16.29 notifying the commissioner by certified mail or personal 16.30 service. The request must be made in writing and. If sent by 16.31 certified mail, the request must be received bypostmarked and 16.32 sent to the commissioner within ten calendar days after the 16.33 license holder received the order. If a request is made by 16.34 personal service, it must be received by the commissioner within 16.35 ten calendar days after the license holder received the order. 16.36 The license holder may submit with the request for 17.1 reconsideration written argument or evidence in support of the 17.2 request for reconsideration. A timely request for 17.3 reconsideration shall stay imposition of the terms of the 17.4 conditional license until the commissioner issues a decision on 17.5 the request for reconsideration. If the commissioner issues a 17.6 dual order of conditional license under this section and an 17.7 order to pay a fine under section 245A.07, subdivision 3, the 17.8 license holder has a right to a contested case hearing under 17.9 chapter 14 and Minnesota Rules, parts 1400.8505 to 1400.8612. 17.10 The scope of the contested case hearing shall include the fine 17.11 and the conditional license. In this case, a reconsideration of 17.12 the conditional license will not be conducted under this section. 17.13 The commissioner's disposition of a request for 17.14 reconsideration is final and not subject to appeal under chapter 17.15 14. 17.16 Sec. 18. Minnesota Statutes 2002, section 245A.07, 17.17 subdivision 2, is amended to read: 17.18 Subd. 2. [TEMPORARY IMMEDIATE SUSPENSION.] If the license 17.19 holder's actions or failure to comply with applicable law or 17.20 rule poses, or the actions of other individuals or conditions in 17.21 the program pose an imminent risk of harm to the health, safety, 17.22 or rights of persons served by the program, the commissioner 17.23 shall act immediately to temporarily suspend the license. No 17.24 state funds shall be made available or be expended by any agency 17.25 or department of state, county, or municipal government for use 17.26 by a license holder regulated under this chapter while a license 17.27 is under immediate suspension. A notice stating the reasons for 17.28 the immediate suspension and informing the license holder of the 17.29 right to an expedited hearing under chapter 14 and Minnesota 17.30 Rules, parts 1400.85101400.8505 to 1400.8612 and successor17.31 rules, must be delivered by personal service to the address 17.32 shown on the application or the last known address of the 17.33 license holder. The license holder may appeal an order 17.34 immediately suspending a license. The appeal of an order 17.35 immediately suspending a license must be made in writing by 17.36 certified mail andor personal service. If mailed, the appeal 18.1 must be postmarked and sent to the commissioner within five 18.2 calendar days after the license holder receives notice that the 18.3 license has been immediately suspended. If a request is made by 18.4 personal service, it must be received by the commissioner within 18.5 five calendar days after the license holder received the order. 18.6 A license holder and any controlling individual shall 18.7 discontinue operation of the program upon receipt of the 18.8 commissioner's order to immediately suspend the license. 18.9 Sec. 19. Minnesota Statutes 2002, section 245A.07, 18.10 subdivision 2a, is amended to read: 18.11 Subd. 2a. [IMMEDIATE SUSPENSION EXPEDITED HEARING.] (a) 18.12 Within five working days of receipt of the license holder's 18.13 timely appeal, the commissioner shall request assignment of an 18.14 administrative law judge. The request must include a proposed 18.15 date, time, and place of a hearing. A hearing must be conducted 18.16 by an administrative law judge within 30 calendar days of the 18.17 request for assignment, unless an extension is requested by 18.18 either party and granted by the administrative law judge for 18.19 good cause. The commissioner shall issue a notice of hearing by 18.20 certified mail or personal service at least ten working days 18.21 before the hearing. The scope of the hearing shall be limited 18.22 solely to the issue of whether the temporary immediate 18.23 suspension should remain in effect pending the commissioner's 18.24 final order under section 245A.08, regarding a licensing 18.25 sanction issued under subdivision 3 following the immediate 18.26 suspension. The burden of proof in expedited hearings under 18.27 this subdivision shall be limited to the commissioner's 18.28 demonstration that reasonable cause exists to believe that the 18.29 license holder's actions or failure to comply with applicable 18.30 law or rule poses an imminent risk of harm to the health, 18.31 safety, or rights of persons served by the program. 18.32 (b) The administrative law judge shall issue findings of 18.33 fact, conclusions, and a recommendation within ten working days 18.34 from the date of hearing. The parties shall have ten calendar 18.35 days to submit exceptions to the administrative law judge's 18.36 report. The record shall close at the end of the ten-day period 19.1 for submission of exceptions. The commissioner's final order 19.2 shall be issued within ten working days from receipt of the19.3 recommendation of the administrative law judgethe close of the 19.4 record. Within 90 calendar days after a final order affirming 19.5 an immediate suspension, the commissioner shall make a 19.6 determination regarding whether a final licensing sanction shall 19.7 be issued under subdivision 3. The license holder shall 19.8 continue to be prohibited from operation of the program during 19.9 this 90-day period. 19.10 (c) When the final order under paragraph (b) affirms an 19.11 immediate suspension, and a final licensing sanction is issued 19.12 under subdivision 3 and the license holder appeals that 19.13 sanction, the license holder continues to be prohibited from 19.14 operation of the program pending a final commissioner's order 19.15 under section 245A.08, subdivision 5, regarding the final 19.16 licensing sanction. 19.17 Sec. 20. Minnesota Statutes 2002, section 245A.07, 19.18 subdivision 3, is amended to read: 19.19 Subd. 3. [LICENSE SUSPENSION, REVOCATION, OR FINE.] The 19.20 commissioner may suspend or revoke a license, or impose a fine 19.21 if a license holder fails to comply fully with applicable laws 19.22 or rules, has a disqualification which has not been set aside 19.23 under section 245C.22, or knowingly withholds relevant 19.24 information from or gives false or misleading information to the 19.25 commissioner in connection with an application for a license, in 19.26 connection with the background study status of an individual, or 19.27 during an investigation. A license holder who has had a license 19.28 suspended, revoked, or has been ordered to pay a fine must be 19.29 given notice of the action by certified mail or personal 19.30 service. If mailed, the notice must be mailed to the address 19.31 shown on the application or the last known address of the 19.32 license holder. The notice must state the reasons the license 19.33 was suspended, revoked, or a fine was ordered. 19.34 (a) If the license was suspended or revoked, the notice 19.35 must inform the license holder of the right to a contested case 19.36 hearing under chapter 14 and Minnesota Rules, parts 1400.851020.1 1400.8505 to 1400.8612 and successor rules. The license holder 20.2 may appeal an order suspending or revoking a license. The 20.3 appeal of an order suspending or revoking a license must be made 20.4 in writing by certified mail andor personal service. If 20.5 mailed, the appeal must be postmarked and sent to the 20.6 commissioner within ten calendar days after the license holder 20.7 receives notice that the license has been suspended or revoked. 20.8 If a request is made by personal service, it must be received by 20.9 the commissioner within ten calendar days after the license 20.10 holder received the order. Except as provided in subdivision 20.11 2a, paragraph (c), a timely appeal of an order suspending or 20.12 revoking a license shall stay the suspension or revocation until 20.13 the commissioner issues a final order. 20.14 (b)(1) If the license holder was ordered to pay a fine, the 20.15 notice must inform the license holder of the responsibility for 20.16 payment of fines and the right to a contested case hearing under 20.17 chapter 14 and Minnesota Rules, parts 1400.85101400.8505 to 20.18 1400.8612 and successor rules. The appeal of an order to pay a 20.19 fine must be made in writing by certified mail andor personal 20.20 service. If mailed, the appeal must be postmarked and sent to 20.21 the commissioner within ten calendar days after the license 20.22 holder receives notice that the fine has been ordered. If a 20.23 request is made by personal service, it must be received by the 20.24 commissioner within ten calendar days after the license holder 20.25 received the order. 20.26 (2) The license holder shall pay the fines assessed on or 20.27 before the payment date specified. If the license holder fails 20.28 to fully comply with the order, the commissioner may issue a 20.29 second fine or suspend the license until the license holder 20.30 complies. If the license holder receives state funds, the 20.31 state, county, or municipal agencies or departments responsible 20.32 for administering the funds shall withhold payments and recover 20.33 any payments made while the license is suspended for failure to 20.34 pay a fine. A timely appeal shall stay payment of the fine 20.35 until the commissioner issues a final order. 20.36 (3) A license holder shall promptly notify the commissioner 21.1 of human services, in writing, when a violation specified in the 21.2 order to forfeit a fine is corrected. If upon reinspection the 21.3 commissioner determines that a violation has not been corrected 21.4 as indicated by the order to forfeit a fine, the commissioner 21.5 may issue a second fine. The commissioner shall notify the 21.6 license holder by certified mail or personal service that a 21.7 second fine has been assessed. The license holder may appeal 21.8 the second fine as provided under this subdivision. 21.9 (4) Fines shall be assessed as follows: the license holder 21.10 shall forfeit $1,000 for each determination of maltreatment of a 21.11 child under section 626.556 or the maltreatment of a vulnerable 21.12 adult under section 626.557; the license holder shall forfeit 21.13 $200 for each occurrence of a violation of law or rule governing 21.14 matters of health, safety, or supervision, including but not 21.15 limited to the provision of adequate staff-to-child or adult 21.16 ratios, and failure to submit a background study; and the 21.17 license holder shall forfeit $100 for each occurrence of a 21.18 violation of law or rule other than those subject to a $1,000 or 21.19 $200 fine above. For purposes of this section, "occurrence" 21.20 means each violation identified in the commissioner's fine order. 21.21 (5) When a fine has been assessed, the license holder may 21.22 not avoid payment by closing, selling, or otherwise transferring 21.23 the licensed program to a third party. In such an event, the 21.24 license holder will be personally liable for payment. In the 21.25 case of a corporation, each controlling individual is personally 21.26 and jointly liable for payment. 21.27 Sec. 21. Minnesota Statutes 2003 Supplement, section 21.28 245A.08, subdivision 1, is amended to read: 21.29 Subdivision 1. [RECEIPT OF APPEAL; CONDUCT OF HEARING.] 21.30 Upon receiving a timely appeal or petition pursuant to section 21.31 245A.05, 245A.07, subdivision 3, or 245C.28, the commissioner 21.32 shall issue a notice of and order for hearing to the appellant 21.33 under chapter 14 and Minnesota Rules, parts 1400.85101400.8505 21.34 to 1400.8612 and successor rules. 21.35 Sec. 22. Minnesota Statutes 2003 Supplement, section 21.36 245A.08, subdivision 2a, is amended to read: 22.1 Subd. 2a. [CONSOLIDATED CONTESTED CASE HEARINGS FOR 22.2 SANCTIONS BASED ON MALTREATMENT DETERMINATIONS AND 22.3 DISQUALIFICATIONS.] (a) When a denial of a license under section 22.4 245A.05 or a licensing sanction under section 245A.07, 22.5 subdivision 3, is based on a disqualification for which 22.6 reconsideration was requested and which was not set aside or was22.7 not rescindedunder sections 245C.21 to 245C.27section 245C.22, 22.8 the scope of the contested case hearing shall include the 22.9 disqualification and the licensing sanction or denial of a 22.10 license. When the licensing sanction or denial of a license is 22.11 based on a determination of maltreatment under section 626.556 22.12 or 626.557, or a disqualification for serious or recurring 22.13 maltreatment which was not set aside or was not rescinded, the 22.14 scope of the contested case hearing shall include the 22.15 maltreatment determination, disqualification, and the licensing 22.16 sanction or denial of a license. In such cases, a fair hearing 22.17 under section 256.045 shall not be conducted as provided for in 22.18 sections 626.556, subdivision 10i, and 626.557, subdivision 9d. 22.19 (b) In consolidated contested case hearings regarding 22.20 sanctions issued in family child care, child foster care, and 22.21 adult foster care, the county attorney shall defend the 22.22 commissioner's orders in accordance with section 245A.16, 22.23 subdivision 4. 22.24 (c) The commissioner's final order under subdivision 5 is 22.25 the final agency action on the issue of maltreatment and 22.26 disqualification, including for purposes of subsequent 22.27 background studies under chapter 245C and is the only 22.28 administrative appeal of the final agency determination, 22.29 specifically, including a challenge to the accuracy and 22.30 completeness of data under section 13.04. 22.31 (d) When consolidated hearings under this subdivision 22.32 involve a licensing sanction based on a previous maltreatment 22.33 determination for which the commissioner has issued a final 22.34 order in an appeal of that determination under section 256.045, 22.35 or the individual failed to exercise the right to appeal the 22.36 previous maltreatment determination under section 626.556, 23.1 subdivision 10i, or 626.557, subdivision 9d, the commissioner's 23.2 order is conclusive on the issue of maltreatment. In such 23.3 cases, the scope of the administrative law judge's review shall 23.4 be limited to the disqualification and the licensing sanction or 23.5 denial of a license. In the case of a denial of a license or a 23.6 licensing sanction issued to a facility based on a maltreatment 23.7 determination regarding an individual who is not the license 23.8 holder or a household member, the scope of the administrative 23.9 law judge's review includes the maltreatment determination. 23.10 (e) If a maltreatment determination or disqualification, 23.11 which was not set aside or was not rescindedunder sections23.12 245C.21 to 245C.27section 245C.22, is the basis for a denial of 23.13 a license under section 245A.05 or a licensing sanction under 23.14 section 245A.07, and the disqualified subject is an individual 23.15 other than the license holder and upon whom a background study 23.16 must be conducted under section 245C.03, the hearings of all 23.17 parties may be consolidated into a single contested case hearing 23.18 upon consent of all parties and the administrative law judge. 23.19 Sec. 23. Minnesota Statutes 2002, section 245A.08, 23.20 subdivision 5, is amended to read: 23.21 Subd. 5. [NOTICE OF THE COMMISSIONER'S FINAL ORDER.] After 23.22 considering the findings of fact, conclusions, and 23.23 recommendations of the administrative law judge, the 23.24 commissioner shall issue a final order. The commissioner shall 23.25 consider, but shall not be bound by, the recommendations of the 23.26 administrative law judge. The appellant must be notified of the 23.27 commissioner's final order as required by chapter 14 and 23.28 Minnesota Rules, parts 1400.85101400.8505 to 1400.8612 and23.29 successor rules. The notice must also contain information about 23.30 the appellant's rights under chapter 14 and Minnesota Rules, 23.31 parts 1400.85101400.8505 to 1400.8612 and successor rules. The 23.32 institution of proceedings for judicial review of the 23.33 commissioner's final order shall not stay the enforcement of the 23.34 final order except as provided in section 14.65. A license 23.35 holder and each controlling individual of a license holder whose 23.36 license has been revoked because of noncompliance with 24.1 applicable law or rule must not be granted a license for five 24.2 years following the revocation. An applicant whose application 24.3 was denied must not be granted a license for two years following 24.4 a denial, unless the applicant's subsequent application contains 24.5 new information which constitutes a substantial change in the 24.6 conditions that caused the previous denial. 24.7 Sec. 24. Minnesota Statutes 2003 Supplement, section 24.8 245A.085, is amended to read: 24.9 245A.085 [CONSOLIDATION OF HEARINGS; RECONSIDERATION.] 24.10 Hearings authorized under this chapter, chapter 245C, and 24.11 sections 256.045, 626.556, and 626.557, shall be consolidated if 24.12 feasible and in accordance with other applicable statutes and 24.13 rules. Reconsideration under sections 245C.28; 626.556, 24.14 subdivision 10i; and 626.557, subdivision 9d, shall also be 24.15 consolidated if feasible. 24.16 Sec. 25. Minnesota Statutes 2003 Supplement, section 24.17 245A.11, subdivision 2b, is amended to read: 24.18 Subd. 2b. [ADULT FOSTER CARE; FAMILY ADULT DAY CARE24.19 SERVICES.] An adult foster care license holder licensed under 24.20 the conditions in subdivision 2a may also provide family adult 24.21 day care for adults age 55 or over if no persons in the adult 24.22 foster or adultfamily adult day careservices program have a 24.23 serious and persistent mental illness or a developmental 24.24 disability. The maximum combined capacity for adult foster care24.25 and family adult day care is five adults, except that the24.26 commissioner may grant a variance for a family adult day care24.27 provider to admit up to seven individuals for day care services24.28 and one individual for respite care services, if all of the24.29 following requirements are met: (1) the variance complies with24.30 section 245A.04, subdivision 9; (2) a second caregiver is24.31 present whenever six or more clients are being served; and (3)24.32 the variance is recommended by the county social service agency24.33 in the county where the provider is located. A separate license24.34 is not required to provide family adult day care under this24.35 subdivision.Family adult day services provided in a licensed 24.36 adult foster care setting must be provided as specified under 25.1 section 245A.143. Authorization to provide family adult day 25.2 services in the adult foster care setting shall be printed on 25.3 the license certificate by the commissioner. Adult foster care 25.4 homes providing services to five adultslicensed under this 25.5 section and family adult day services licensed under section 25.6 245A.143 shall not be subject to licensure by the commissioner 25.7 of health under the provisions of chapter 144, 144A, 157, or any 25.8 other law requiring facility licensure by the commissioner of 25.9 health. 25.10 Sec. 26. Minnesota Statutes 2002, section 245A.14, 25.11 subdivision 4, is amended to read: 25.12 Subd. 4. [SPECIAL FAMILY DAY CARE HOMES.] Nonresidential 25.13 child care programs serving 14 or fewer children that are 25.14 conducted at a location other than the license holder's own 25.15 residence shall be licensed under this section and the rules 25.16 governing family day care or group family day care if: 25.17 (a) the license holder is the primary provider of care and 25.18 the nonresidential child care program is conducted in a dwelling 25.19 that is located on a residential lot; 25.20 (b) the license holder is an employer who may or may not be 25.21 the primary provider of care, and the purpose for the child care 25.22 program is to provide child care services to children of the 25.23 license holder's employees; or25.24 (c) the license holder is a church or religious 25.25 organization; or 25.26 (d) the license holder is a community collaborative child 25.27 care provider. For purposes of this subdivision, a community 25.28 collaborative child care provider is a provider participating in 25.29 a cooperative agreement with a community action agency as 25.30 defined in section 119A.375. 25.31 Sec. 27. [245A.143] [FAMILY ADULT DAY SERVICES.] 25.32 Subdivision 1. [SCOPE.] (a) The licensing standards in 25.33 this section must be met to obtain and maintain a license to 25.34 provide family adult day services. For the purposes of this 25.35 section, family adult day services means a program operating 25.36 fewer than 24 hours per day that provides functionally impaired 26.1 adults, none of which are under age 55, have serious or 26.2 persistent mental illness, or have mental retardation or a 26.3 related condition, with an individualized and coordinated set of 26.4 services including health services, social services, and 26.5 nutritional services that are directed at maintaining or 26.6 improving the participants' capabilities for self-care. 26.7 (b) A family adult day services license shall only be 26.8 issued when the services are provided in the license holder's 26.9 primary residence, and the license holder is the primary 26.10 provider of care. The license holder may not serve more than 26.11 eight adults at one time, including residents, if any, served 26.12 under a license issued under Minnesota Rules, parts 9555.5105 to 26.13 9555.6265. 26.14 (c) An adult foster care license holder may provide family 26.15 adult day services if the license holder meets the requirements 26.16 of this section. 26.17 (d) When an applicant or license holder submits an 26.18 application for initial licensure or relicensure for both adult 26.19 foster care and family adult day services, the county agency 26.20 shall process the request as a single application and shall 26.21 conduct concurrent routine licensing inspections. 26.22 (e) Adult foster care license holders providing family 26.23 adult day services under their foster care license on March 30, 26.24 2004, shall be permitted to continue providing these services 26.25 with no additional requirements until their adult foster care 26.26 license is due for renewal. At the time of relicensure, an 26.27 adult foster care license holder may continue to provide family 26.28 adult day services upon demonstration of compliance with this 26.29 section. Adult foster care license holders who provide only 26.30 family adult day services on August 1, 2004, may apply for a 26.31 license under this section instead of an adult foster care 26.32 license. 26.33 Subd. 2. [DEFINITIONS.] (a) For the purposes of this 26.34 section, the terms defined in this subdivision have the 26.35 following meanings unless otherwise provided for by text. 26.36 (b) [CAREGIVER.] "Caregiver" means a spouse, adult child, 27.1 parent, relative, friend, or others who normally provide unpaid 27.2 support or care to the individual needing assistance. For the 27.3 purpose of this section, the caregiver may or may not have legal 27.4 or financial responsibility for the participant. 27.5 (c) [PARTICIPANT.] "Participant" means a functionally 27.6 impaired adult receiving family adult day services. 27.7 (d) [CONSULTATION BY A HEALTH CARE 27.8 PROFESSIONAL.] "Consultation by a health care professional" 27.9 means the review and oversight of the participant's 27.10 health-related services by a registered nurse, physician, or 27.11 mental health professional. 27.12 Subd. 3. [POLICY AND PROGRAM INFORMATION 27.13 REQUIREMENTS.] (a) The license holder shall have available for 27.14 review, and shall distribute to participants and their 27.15 caregivers upon admission, written information about: 27.16 (1) the scope of the programs, services, and care offered 27.17 by the license holder; 27.18 (2) a description of the population to be served by the 27.19 license holder; 27.20 (3) a description of individual conditions which the 27.21 license holder is not prepared to accept, such as a communicable 27.22 disease requiring isolation, a history of violence to self or 27.23 others, unmanageable incontinence, or uncontrollable wandering; 27.24 (4) the participants' rights and procedure for presenting 27.25 grievances, including the name, address, and telephone number of 27.26 the Office of Ombudsman for Older Minnesotans and the county 27.27 licensing department, to which a participant or participant's 27.28 caregiver may submit an oral or written complaint; 27.29 (5) the license holder's policy on and arrangements for 27.30 providing transportation; 27.31 (6) the license holder's policy on providing meals and 27.32 snacks; 27.33 (7) the license holder's fees, billing arrangements, and 27.34 plans for payment; 27.35 (8) the license holder's policy governing the presence of 27.36 pets in the home; 28.1 (9) the license holder's policy on smoking in the home; 28.2 (10) types of insurance coverage carried by the license 28.3 holder; 28.4 (11) information on orientation requirements under section 28.5 245A.65, subdivisions 1, paragraph (c), and 2, paragraph (a), 28.6 clause (4); 28.7 (12) the terms and conditions of the license holder's 28.8 license issued by the department; 28.9 (13) the license holder's plan for emergency evacuation of 28.10 participants involving fire, weather, and other disasters. The 28.11 plan must include instructions for evacuation or rescue of 28.12 participants, identification of an emergency shelter area, 28.13 quarterly fire drill schedule, and staff responsibilities; and 28.14 (14) the license holder's policy for handling harmful 28.15 objects, materials, or equipment including the storage of 28.16 poisonous chemicals, use of appliances, sharp instruments, 28.17 matches, or any other potentially harmful materials. 28.18 (b) The information in paragraph (a) must be provided in 28.19 writing to the commissioner's representative upon request and 28.20 must be available for inspection by the commissioner's 28.21 representative at the home. 28.22 Subd. 4. [ADMISSION SCREENING AND EVALUATION.] (a) Before 28.23 admitting an individual into the family adult day services 28.24 program, the license holder shall screen the individual to 28.25 determine how or whether the license holder can serve the 28.26 individual, based on the license holder's policies, services, 28.27 expertise, and the individual's needs and condition. If 28.28 possible, the screening shall include an interview with the 28.29 individual and with the individual's caregiver. 28.30 (b) The screening required under paragraph (a) shall 28.31 include an evaluation of the health, nutritional, and social 28.32 services needs of the individual. 28.33 Subd. 5. [SERVICE DELIVERY PLAN.] Before providing family 28.34 adult day services, an individual, the individual's caregiver, 28.35 the legal representative if there is one, the county or private 28.36 case manager, if applicable, and the license holder shall 29.1 develop a service delivery plan. At a minimum, the service 29.2 delivery plan shall include: 29.3 (1) a description of the health services, nutritional 29.4 services, and social services to be arranged or provided by the 29.5 license holder and the frequency of those services and that the 29.6 services will be based on the needs of the individual; 29.7 (2) scheduled days and hours of participant's attendance at 29.8 the license holder's home; 29.9 (3) transportation arrangements for getting the participant 29.10 to and from the license holder's home; 29.11 (4) contingency plans if scheduled services cannot be 29.12 provided by the license holder; 29.13 (5) identification of responsibilities of the participant 29.14 and the license holder with respect to payment for the services; 29.15 (6) circumstances when emergency services will be called; 29.16 and 29.17 (7) identification of the license holder's discharge policy 29.18 when services are no longer needed or when the participant's 29.19 needs can no longer be met by the license holder. 29.20 Subd. 6. [INDIVIDUAL SERVICE PLAN.] (a) The service plan 29.21 must be coordinated with other plans of services for the 29.22 participant, as appropriate. 29.23 (b) The service plan must be dated and revised when there 29.24 is a change in the needs of the participant or annually, 29.25 whichever occurs sooner. 29.26 Subd. 7. [HEALTH SERVICES.] (a) The license holder shall 29.27 provide health services as specified in the service delivery 29.28 plan under the direction of the designated caregiver or county 29.29 or private case manager. Health services must include: 29.30 (1) monitoring the participant's level of function and 29.31 health while participating; taking appropriate action for a 29.32 change in condition including immediately reporting changes to 29.33 the participant's caregiver, physician, mental health 29.34 professional, or registered nurse; and seeking consultation; 29.35 (2) offering information to participants and caregivers on 29.36 good health and safety practices; and 30.1 (3) maintaining a listing of health resources available for 30.2 referrals as needed by participants and caregivers. 30.3 (b) Unless the person is a licensed health care 30.4 practitioner qualified to administer medications, the person 30.5 responsible for medication administration or assistance shall 30.6 provide a certificate verifying successful completion of a 30.7 trained medication aid program for unlicensed personnel approved 30.8 by the Minnesota Department of Health or comparable program, or 30.9 biennially provide evidence of competency as demonstrated to a 30.10 registered nurse or physician. 30.11 (c) The license holder must have secure storage and 30.12 safeguarding of all medications with storage of medications in 30.13 their original container, know what information regarding 30.14 medication administration must be reported to a health care 30.15 professional, and must maintain a record of all medications 30.16 administered. 30.17 Subd. 8. [NUTRITIONAL SERVICES.] (a) The license holder 30.18 shall ensure that food served is nutritious and meets any 30.19 special dietary needs of the participants as prescribed by the 30.20 participant's physician or dietitian as specified in the service 30.21 delivery plan. 30.22 (b) Food and beverages must be obtained, handled, and 30.23 properly stored to prevent contamination, spoilage, or a threat 30.24 to the health of a resident. 30.25 Subd. 9. [SOCIAL SERVICES.] The license holder, in 30.26 consultation with the county or private case manager, when 30.27 appropriate, shall actively assist the participant in 30.28 identifying and achieving personal goals, support the 30.29 participant in maintaining personal support networks and 30.30 socially valued roles, provide assistance to the participant to 30.31 enable community participation, and refer participants to the 30.32 Office of Ombudsman for Older Minnesotans and other advocacy 30.33 organizations for assistance when there is a potential conflict 30.34 of interest between the license holder and the participant. 30.35 Subd. 10. [PARTICIPANT RIGHTS.] (a) The license holder 30.36 shall adopt and comply with a participant bill of rights. The 31.1 rights shall include the participants' right to: 31.2 (1) participate in the development of the service plan; 31.3 (2) refuse services or participation; 31.4 (3) privacy; 31.5 (4) confidentiality of participant information; and 31.6 (5) present grievances regarding treatment or services to 31.7 the Office of Ombudsman for Older Minnesotans or the county 31.8 licensing department. The license holder's policies shall 31.9 include a procedure for addressing participant grievances, 31.10 including the name, address, and telephone number of the county 31.11 licensing department, to which a participant or participant 31.12 caregiver may submit an oral or written complaint. 31.13 (b) The license holder shall post the participant rights in 31.14 the home and shall provide a copy to the participant and the 31.15 participant's primary caregiver and legal representative if the 31.16 participant has one. 31.17 Subd. 11. [STAFFING.] Whenever participants are in the 31.18 home, there must be present at least one individual who is 31.19 trained in basic first aid and certified in cardiopulmonary 31.20 resuscitation and the treatment of obstructed airways. Whenever 31.21 there are six, seven, or eight participants present, there must 31.22 be a second staff person present. 31.23 Subd. 12. [TRAINING.] The license holder and license 31.24 holder's staff must annually complete 12 hours of training 31.25 related to the health, nutritional, and social needs of the 31.26 license holder's target population. License holders with six or 31.27 more years of licensure under this section or as an adult foster 31.28 care provider must annually complete six hours of training. The 31.29 annual training must include training on the reporting of 31.30 maltreatment of vulnerable adults under sections 626.557 and 31.31 626.5572; license holder requirements governing maltreatment of 31.32 vulnerable adults under section 245A.65; and, when a license 31.33 holder serves participants who rely on medical monitoring 31.34 equipment to sustain life or monitor a medical condition, 31.35 training on medical equipment as required under section 245A.155 31.36 for foster care providers. A record of all training must be 32.1 maintained in the home. 32.2 Subd. 13. [RESIDENTIAL REQUIREMENTS.] (a) The home where 32.3 family adult day services are to be provided shall be classified 32.4 as a residential group R-3 occupancy under the State Building 32.5 Code and State Fire Code for purposes of building code and fire 32.6 code inspections. A building code inspection is not required 32.7 for licensure under this section. The state or local fire 32.8 marshal must inspect the family adult day services home 32.9 operating in the residence for compliance with the residential 32.10 group R-3 occupancy provisions of the State Fire Code. 32.11 (b) The licensed capacity of the home shall be limited by 32.12 the amount of indoor space available for use by participants. 32.13 The total indoor space available for use by participants must 32.14 equal at least 35 square feet for each participant, the license 32.15 holder, and each staff member present in the home. In 32.16 determining the square footage of usable indoor space available, 32.17 the following must not be counted: hallways, stairways, 32.18 closets, offices, restrooms, and utility and storage areas. The 32.19 usable indoor space available must include a room or an area 32.20 that can be used as private space for providing personal hygiene 32.21 services or social services to participants. 32.22 (c) The residence must comply with all applicable local 32.23 ordinances. 32.24 Subd. 14. [VARIANCES.] The commissioner may grant a 32.25 variance to any of the requirements in this section if the 32.26 conditions in section 245A.04, subdivision 9, are met. 32.27 Sec. 28. Minnesota Statutes 2003 Supplement, section 32.28 245A.16, subdivision 1, is amended to read: 32.29 Subdivision 1. [DELEGATION OF AUTHORITY TO AGENCIES.] (a) 32.30 County agencies and private agencies that have been designated 32.31 or licensed by the commissioner to perform licensing functions 32.32 and activities under section 245A.04 and chapter 245C, to 32.33 recommend denial of applicants under section 245A.05, to issue 32.34 correction orders, to issue variances, and recommend a 32.35 conditional license under section 245A.06, or to recommend 32.36 suspending or revoking a license or issuing a fine under section 33.1 245A.07, shall comply with rules and directives of the 33.2 commissioner governing those functions and with this section. 33.3 The following variances are excluded from the delegation of 33.4 variance authority and may be issued only by the commissioner: 33.5 (1) dual licensure of family child care and child foster 33.6 care, dual licensure of child and adult foster care, and adult 33.7 foster care and family child care; 33.8 (2) adult foster care maximum capacity; 33.9 (3) adult foster care minimum age requirement; 33.10 (4) child foster care maximum age requirement; 33.11 (5) variances regarding disqualified individuals except 33.12 that county agencies may issue variances under section 245C.30 33.13 regarding disqualified individuals when the county is 33.14 responsible for conducting a consolidated reconsideration 33.15 according to sections 245C.25 and 245C.27, subdivision 2, 33.16 clauses (a) and (b), of a county maltreatment determination and 33.17 a disqualification based on serious or recurring maltreatment; 33.18 and 33.19 (6) the required presence of a caregiver in the adult 33.20 foster care residence during normal sleeping hours. 33.21 (b) County agencies must report information about 33.22 disqualification reconsiderations under sections 245C.25 and 33.23 245C.27, subdivision 2, clauses (a) and (b), and variances 33.24 granted under paragraph (a), clause (5), to the commissioner at 33.25 least monthly in a format prescribed by the commissioner. 33.26 (c) For family day care programs, the commissioner may 33.27 authorize licensing reviews every two years after a licensee has 33.28 had at least one annual review. 33.29 (d) For family adult day services programs, the 33.30 commissioner may authorize licensing reviews every two years 33.31 after a licensee has had at least one annual review. 33.32 (e) A license issued under this section may be issued for 33.33 up to two years. 33.34 Sec. 29. Minnesota Statutes 2002, section 245A.16, 33.35 subdivision 4, is amended to read: 33.36 Subd. 4. [ENFORCEMENT OF THE COMMISSIONER'S ORDERS.] The 34.1 county or private agency shall enforce the commissioner's orders 34.2 under sections 245A.07 and, 245A.08, subdivision 5, and chapter 34.3 245C, according to the instructions of the commissioner. The 34.4 county attorney shall assist the county agency in the 34.5 enforcement and defense of the commissioner's orders under 34.6 sections 245A.07 and, 245A.08, and chapter 245C, according to 34.7 the instructions of the commissioner, unless a conflict of 34.8 interest exists between the county attorney and the commissioner. 34.9 Sec. 30. Minnesota Statutes 2002, section 245A.22, 34.10 subdivision 2, is amended to read: 34.11 Subd. 2. [ADMISSION.] (a) The license holder shall accept 34.12 as clients in the independent living assistance program only 34.13 individuals specified under section 256E.115youth ages 16 to 21 34.14 who are in out-of-home placement, leaving out-of-home placement, 34.15 at risk of becoming homeless, or homeless. 34.16 (b) Youth who have current drug or alcohol problems, a 34.17 recent history of violent behaviors, or a mental health disorder 34.18 or issue that is not being resolved through counseling or 34.19 treatment are not eligible to receive the services described in 34.20 subdivision 1. 34.21 (c) Youth who are not employed, participating in employment 34.22 training, or enrolled in an academic program are not eligible to 34.23 receive transitional housing or independent living assistance. 34.24 [EFFECTIVE DATE.]This section is effective the day 34.25 following final enactment. 34.26 Sec. 31. Minnesota Statutes 2003 Supplement, section 34.27 245A.22, subdivision 3, is amended to read: 34.28 Subd. 3. [INDEPENDENT LIVING PLAN.] (a) Unless an 34.29 independent living plan has been developed by the local agency, 34.30 the license holder shall develop a plan based on the client's 34.31 individual needs that specifies objectives for the client. The 34.32 services provided shall include those specified in this section. 34.33 The plan shall identify the persons responsible for 34.34 implementation of each part of the plan. The plan shall be 34.35 reviewed as necessary, but at least annually. 34.36 (b) The following services, or adequate access to referrals 35.1 for the following services, must be made available to the 35.2 targeted youth participating in the programs described in 35.3 subdivision 1: 35.4 (1) counseling services for the youth and their families, 35.5 if appropriate, on site, to help with problems that contributed 35.6 to the homelessness or could impede making the transition to 35.7 independent living; 35.8 (2) educational, vocational, or employment services; 35.9 (3) health care; 35.10 (4) transportation services including, where appropriate, 35.11 assisting the child in obtaining a driver's license; 35.12 (5) money management skills training; 35.13 (6) planning for ongoing housing; 35.14 (7) social and recreational skills training; and 35.15 (8) assistance establishing and maintaining connections 35.16 with the child's family and community. 35.17 [EFFECTIVE DATE.]This section is effective the day 35.18 following final enactment. 35.19 Sec. 32. Minnesota Statutes 2002, section 245B.02, is 35.20 amended by adding a subdivision to read: 35.21 Subd. 12a. [INTERDISCIPLINARY TEAM.] "Interdisciplinary 35.22 team" means a team composed of the case manager, the person, the 35.23 person's legal representative and advocate, if any, and 35.24 representatives of providers of the service areas relevant to 35.25 the needs of the person as described in the individual service 35.26 plan. 35.27 [EFFECTIVE DATE.]This section is effective the day 35.28 following final enactment. 35.29 Sec. 33. Minnesota Statutes 2003 Supplement, section 35.30 245B.03, subdivision 2, is amended to read: 35.31 Subd. 2. [RELATIONSHIP TO OTHER STANDARDS GOVERNING 35.32 SERVICES FOR PERSONS WITH MENTAL RETARDATION OR RELATED 35.33 CONDITIONS.] (a) ICFs/MR are exempt from: 35.34 (1) section 245B.04; 35.35 (2) section 245B.06, subdivisions 4 and 6; and 35.36 (3) section 245B.07, subdivisions 4, paragraphs (b) and 36.1 (c); 7; and 8, paragraphs (1), clause (iv), and (2). 36.2 (b) License holders also licensed under chapter 144 as a 36.3 supervised living facility are exempt from section 245B.04. 36.4 (c) Residential service sites controlled by license holders 36.5 licensed under this chapter for home and community-based 36.6 waivered services for four or fewer adults are exempt from 36.7 compliance with Minnesota Rules, parts 9543.0040, subpart 2, 36.8 item C; 9555.5505; 9555.5515, items B and G; 9555.5605; 36.9 9555.5705; 9555.6125, subparts 3, item C, subitem (2), and 4 to 36.10 6; 9555.6185; 9555.6225, subpart 8; 9555.6245; 9555.6255; and 36.11 9555.6265; and as provided under section 245B.06, subdivision 2, 36.12 the license holder is exempt from the program abuse prevention 36.13 plans and individual abuse prevention plans otherwise required 36.14 under sections 245A.65, subdivision 2, and 626.557, subdivision 36.15 14. The commissioner may approve alternative methods of 36.16 providing overnight supervision using the process and criteria 36.17 for granting a variance in section 245A.04, subdivision 9. This 36.18 chapter does not apply to foster care homes that do not provide 36.19 residential habilitation services funded under the home and 36.20 community-based waiver programs defined in section 256B.092. 36.21 (d) Residential service sites controlled by license holders 36.22 licensed under this chapter for home and community-based 36.23 waivered services for four or fewer children are exempt from 36.24 compliance with Minnesota Rules, parts 9545.0130; 9545.0140;36.25 9545.0150; 9545.0170; 9545.0220, subparts 1, items C, F, and I,36.26 and 3; and 9545.02302960.3060, subpart 3, items B and C; 36.27 2960.3070; 2960.3100, subpart 1, items C, F, and I; and 36.28 2960.3210. 36.29 (e) The commissioner may exempt license holders from 36.30 applicable standards of this chapter when the license holder 36.31 meets the standards under section 245A.09, subdivision 7. 36.32 License holders that are accredited by an independent 36.33 accreditation body shall continue to be licensed under this 36.34 chapter. 36.35 (f) License holders governed by sections 245B.02 to 245B.07 36.36 must also meet the licensure requirements in chapter 245A. 37.1 (g) Nothing in this chapter prohibits license holders from 37.2 concurrently serving consumers with and without mental 37.3 retardation or related conditions provided this chapter's 37.4 standards are met as well as other relevant standards. 37.5 (h) The documentation that sections 245B.02 to 245B.07 37.6 require of the license holder meets the individual program plan 37.7 required in section 256B.092 or successor provisions. 37.8 Sec. 34. Minnesota Statutes 2002, section 245B.05, 37.9 subdivision 2, is amended to read: 37.10 Subd. 2. [LICENSED CAPACITY FOR FACILITY-BASED DAY 37.11 TRAINING AND HABILITATION SERVICES.] The licensed capacity of 37.12 each day training and habilitation service sitessite must be 37.13 determined by the amount of primary space available, the 37.14 scheduling of activities at other service sites, and the space 37.15 requirements of consumers receiving services at the site. 37.16 Primary space does not include hallways, stairways, closets, 37.17 utility areas, bathrooms, kitchens, and floor areas beneath 37.18 stationary equipment. A facility-based day training and 37.19 habilitation site must have a minimum of 40 square feet of 37.20 primary space must beavailable for each consumer who is engaged37.21 in a day training and habilitation activity at the site for37.22 which the licensed capacity must be determinedpresent at the 37.23 site at any one time. Licensed capacity under this subdivision 37.24 does not apply to: (1) consumers receiving community-based day 37.25 training and habilitation services; and (2) the temporary use of 37.26 a facility-based training and habilitation service site for the 37.27 limited purpose of providing transportation to consumers 37.28 receiving community-based day training and habilitation services 37.29 from the license holder. The license holder must comply at all 37.30 times with all applicable fire and safety codes under 37.31 subdivision 4 and adequate supervision requirements under 37.32 section 245B.055 for all persons receiving day training and 37.33 habilitation services. 37.34 [EFFECTIVE DATE.]This section is effective the day 37.35 following final enactment. 37.36 Sec. 35. [245B.055] [MINIMUM LEVEL OF STAFFING REQUIRED 38.1 FOR DAY TRAINING AND HABILITATION SERVICES.] 38.2 Subdivision 1. [SCOPE.] This section applies only to 38.3 license holders that provide day training and habilitation 38.4 services. 38.5 Subd. 2. [FACTORS.] (a) The number of direct service staff 38.6 members that a license holder must have on duty at a given time 38.7 to meet the minimum staffing requirements established in this 38.8 section varies according to: 38.9 (1) the number of persons who are enrolled and receiving 38.10 direct services at that given time; 38.11 (2) the staff ratio requirement established under 38.12 subdivision 3 for each of the persons who is present; and 38.13 (3) whether the conditions described in subdivision 8 exist 38.14 and warrant additional staffing beyond the number determined to 38.15 be needed under subdivision 7. 38.16 (b) The commissioner shall consider the factors in 38.17 paragraph (a) in determining a license holder's compliance with 38.18 the staffing requirements and shall further consider whether the 38.19 staff ratio requirement established under subdivision 3 for each 38.20 person receiving services accurately reflects the person's need 38.21 for staff time. 38.22 Subd. 3. [DETERMINING AND DOCUMENTING THE STAFF RATIO 38.23 REQUIREMENT FOR EACH PERSON RECEIVING SERVICES.] The case 38.24 manager, in consultation with the interdisciplinary team shall 38.25 determine at least once each year which of the ratios in 38.26 subdivisions 4, 5, and 6 is appropriate for each person 38.27 receiving services on the basis of the characteristics described 38.28 in subdivisions 4, 5, and 6. The ratio assigned each person and 38.29 the documentation of how the ratio was arrived at must be kept 38.30 in each person's individual service plan. Documentation must 38.31 include an assessment of the person with respect to the 38.32 characteristics in subdivisions 4, 5, and 6 recorded on a 38.33 standard assessment form required by the commissioner. 38.34 Subd. 4. [PERSON REQUIRING STAFF RATIO OF ONE TO FOUR.] A 38.35 person who has one or more of the following characteristics must 38.36 be assigned a staff ratio requirement of one to four: 39.1 (1) on a daily basis the person requires total care and 39.2 monitoring or constant hand-over-hand physical guidance to 39.3 successfully complete at least three of the following activities: 39.4 toileting, communicating basic needs, eating, or ambulating; or 39.5 (2) the person assaults others, is self-injurious, or 39.6 manifests severe dysfunctional behaviors at a documented level 39.7 of frequency, intensity, or duration requiring frequent daily 39.8 ongoing intervention and monitoring as established in an 39.9 approved behavior management program. 39.10 Subd. 5. [PERSON REQUIRING STAFF RATIO OF ONE TO EIGHT.] A 39.11 person who has all of the following characteristics must be 39.12 assigned a staff ratio requirement of one to eight: 39.13 (1) the person does not meet the requirements in 39.14 subdivision 4; and 39.15 (2) on a daily basis the person requires verbal prompts or 39.16 spot checks and minimal or no physical assistance to 39.17 successfully complete at least three of the following 39.18 activities: toileting, communicating basic needs, eating, or 39.19 ambulating. 39.20 Subd. 6. [PERSON REQUIRING STAFF RATIO OF ONE TO SIX.] A 39.21 person who does not have any of the characteristics described in 39.22 subdivision 4 or 5 must be assigned a staff ratio requirement of 39.23 one to six. 39.24 Subd. 7. [DETERMINING NUMBER OF DIRECT SERVICE STAFF 39.25 REQUIRED.] The minimum number of direct service staff members 39.26 required at any one time to meet the combined staff ratio 39.27 requirements of the persons present at that time can be 39.28 determined by following the steps in clauses (1) through (4): 39.29 (1) assign each person in attendance the three-digit 39.30 decimal below that corresponds to the staff ratio requirement 39.31 assigned to that person. A staff ratio requirement of one to 39.32 four equals 0.250. A staff ratio requirement of one to eight 39.33 equals 0.125. A staff ratio requirement of one to six equals 39.34 0.166; 39.35 (2) add all of the three-digit decimals (one three-digit 39.36 decimal for every person in attendance) assigned in clause (1); 40.1 (3) when the sum in clause (2) falls between two whole 40.2 numbers, round off the sum to the larger of the two whole 40.3 numbers; and 40.4 (4) the larger of the two whole numbers in clause (3) 40.5 equals the number of direct service staff members needed to meet 40.6 the staff ratio requirements of the persons in attendance. 40.7 Subd. 8. [CONDITIONS REQUIRING ADDITIONAL DIRECT SERVICE 40.8 STAFF.] The license holder shall increase the number of direct 40.9 service staff members present at any one time beyond the number 40.10 arrived at in subdivision 4 if necessary when any one or 40.11 combination of the following circumstances can be documented by 40.12 the commissioner as existing: 40.13 (1) the health and safety needs of the persons receiving 40.14 services cannot be met by the number of staff members available 40.15 under the staffing pattern in effect even though the number has 40.16 been accurately calculated under subdivision 7; or 40.17 (2) the behavior of a person presents an immediate danger 40.18 and the person is not eligible for a special needs rate 40.19 exception under Minnesota Rules, parts 9510.1020 to 9510.1140. 40.20 Subd. 9. [SUPERVISION REQUIREMENTS.] At no time shall one 40.21 direct service staff member be assigned responsibility for 40.22 supervision and training of more than ten persons receiving 40.23 supervision and training, except as otherwise stated in each 40.24 person's risk management plan. 40.25 [EFFECTIVE DATE.]This section is effective the day 40.26 following final enactment. 40.27 Sec. 36. Minnesota Statutes 2002, section 245B.07, 40.28 subdivision 8, is amended to read: 40.29 Subd. 8. [POLICIES AND PROCEDURES.] The license holder 40.30 must develop and implement the policies and procedures in 40.31 paragraphs (1) to (3). 40.32 (1) policies and procedures that promote consumer health 40.33 and safety by ensuring: 40.34 (i) consumer safety in emergency situations as identified 40.35 in section 245B.05, subdivision 7; 40.36 (ii) consumer health through sanitary practices; 41.1 (iii) safe transportation, when the license holder is 41.2 responsible for transportation of consumers, with provisions for 41.3 handling emergency situations; 41.4 (iv) a system of record keeping for both individuals and 41.5 the organization, for review of incidents and emergencies, and 41.6 corrective action if needed; 41.7 (v) a plan for responding to and reporting all emergencies,41.8 including deaths, medical emergencies, illnesses, accidents,41.9 missing consumers,all incidents, as defined in section 245B.02, 41.10 subdivision 10, fires, severe weather and natural disasters, 41.11 bomb threats, and other threats and reporting all incidents 41.12 required to be reported under section 245B.05, subdivision 7; 41.13 (vi) safe medication administration as identified in 41.14 section 245B.05, subdivision 5, incorporating an observed skill 41.15 assessment to ensure that staff demonstrate the ability to 41.16 administer medications consistent with the license holder's 41.17 policy and procedures; 41.18 (vii) psychotropic medication monitoring when the consumer 41.19 is prescribed a psychotropic medication, including the use of 41.20 the psychotropic medication use checklist. If the 41.21 responsibility for implementing the psychotropic medication use 41.22 checklist has not been assigned in the individual service plan 41.23 and the consumer lives in a licensed site, the residential 41.24 license holder shall be designated; and 41.25 (viii) criteria for admission or service initiation 41.26 developed by the license holder; 41.27 (2) policies and procedures that protect consumer rights 41.28 and privacy by ensuring: 41.29 (i) consumer data privacy, in compliance with the Minnesota 41.30 Data Practices Act, chapter 13; and 41.31 (ii) that complaint procedures provide consumers with a 41.32 simple process to bring grievances and consumers receive a 41.33 response to the grievance within a reasonable time period. The 41.34 license holder must provide a copy of the program's grievance 41.35 procedure and time lines for addressing grievances. The 41.36 program's grievance procedure must permit consumers served by 42.1 the program and the authorized representatives to bring a 42.2 grievance to the highest level of authority in the program; and 42.3 (3) policies and procedures that promote continuity and 42.4 quality of consumer supports by ensuring: 42.5 (i) continuity of care and service coordination, including 42.6 provisions for service termination, temporary service 42.7 suspension, and efforts made by the license holder to coordinate 42.8 services with other vendors who also provide support to the 42.9 consumer. The policy must include the following requirements: 42.10 (A) the license holder must notify the consumer or 42.11 consumer's legal representative and the consumer's case manager 42.12 in writing of the intended termination or temporary service 42.13 suspension and the consumer's right to seek a temporary order 42.14 staying the termination or suspension of service according to 42.15 the procedures in section 256.045, subdivision 4a or subdivision 42.16 6, paragraph (c); 42.17 (B) notice of the proposed termination of services, 42.18 including those situations that began with a temporary service 42.19 suspension, must be given at least 60 days before the proposed 42.20 termination is to become effective; 42.21 (C) the license holder must provide information requested 42.22 by the consumer or consumer's legal representative or case 42.23 manager when services are temporarily suspended or upon notice 42.24 of termination; 42.25 (D) use of temporary service suspension procedures are 42.26 restricted to situations in which the consumer's behavior causes 42.27 immediate and serious danger to the health and safety of the 42.28 individual or others; 42.29 (E) prior to giving notice of service termination or 42.30 temporary service suspension, the license holder must document 42.31 actions taken to minimize or eliminate the need for service 42.32 termination or temporary service suspension; and 42.33 (F) during the period of temporary service suspension, the 42.34 license holder will work with the appropriate county agency to 42.35 develop reasonable alternatives to protect the individual and 42.36 others; and 43.1 (ii) quality services measured through a program evaluation 43.2 process including regular evaluations of consumer satisfaction 43.3 and sharing the results of the evaluations with the consumers 43.4 and legal representatives. 43.5 Sec. 37. Minnesota Statutes 2002, section 245B.07, 43.6 subdivision 12, is amended to read: 43.7 Subd. 12. [SEPARATE LICENSE REQUIRED FOR SEPARATE SITES.] 43.8 The license holder shall apply for separate licenses for each 43.9 day training and habilitation service site owned or leased by 43.10 the license holder at which persons receiving services and the 43.11 provider's employees who provide training and habilitation 43.12 services are present for a cumulative total of more than 30 days 43.13 within any 12-month period, and for each residential service 43.14 site. Notwithstanding this subdivision, a separate license is 43.15 not required for a day training and habilitation service site 43.16 used only for the limited purpose of providing transportation to 43.17 consumers receiving community-based day training and 43.18 habilitation services from a license holder. 43.19 [EFFECTIVE DATE.]This section is effective the day 43.20 following final enactment. 43.21 Sec. 38. Minnesota Statutes 2003 Supplement, section 43.22 245C.02, subdivision 18, is amended to read: 43.23 Subd. 18. [SERIOUS MALTREATMENT.] (a) "Serious 43.24 maltreatment" means sexual abuse, maltreatment resulting in 43.25 death, maltreatment resulting in serious injury which reasonably 43.26 requires the care of a physician whether or not the care of a 43.27 physician was sought, or abuse resulting in serious injury. 43.28 (b) For purposes of this definition, "care of a physician" 43.29 is treatment received or ordered by a physician but does not 43.30 include diagnostic testing, assessment, or observation. 43.31 (c) For purposes of this definition, "abuse resulting in 43.32 serious injury" means: bruises, bites, skin laceration, or 43.33 tissue damage; fractures; dislocations; evidence of internal 43.34 injuries; head injuries with loss of consciousness; extensive 43.35 second-degree or third-degree burns and other burns for which 43.36 complications are present; extensive second-degree or 44.1 third-degree frostbite and other frostbite for which 44.2 complications are present; irreversible mobility or avulsion of 44.3 teeth; injuries to the eyes; ingestion of foreign substances and 44.4 objects that are harmful; near drowning; and heat exhaustion or 44.5 sunstroke. 44.6 (d) Serious maltreatment includes neglect when it results 44.7 in criminal sexual conduct against a child or vulnerable adult. 44.8 [EFFECTIVE DATE.]This section is effective the day 44.9 following final enactment. 44.10 Sec. 39. Minnesota Statutes 2003 Supplement, section 44.11 245C.03, subdivision 1, is amended to read: 44.12 Subdivision 1. [LICENSED PROGRAMS.] (a) The commissioner 44.13 shall conduct a background study on: 44.14 (1) the applicantperson or persons applying for a license; 44.15 (2) an individual age 13 and over living in the household 44.16 where the licensed program will be provided; 44.17 (3) current employees or contractors of the applicant who 44.18 will have direct contact with persons served by the facility, 44.19 agency, or program ; 44.20 (4) volunteers or student volunteers who will have direct 44.21 contact with persons served by the program to provide program 44.22 services if the contact is not under the continuous, direct 44.23 supervision by an individual listed in clause (1) or (3); 44.24 (5) an individual age ten to 12 living in the household 44.25 where the licensed services will be provided when the 44.26 commissioner has reasonable cause; and44.27 (6) an individual who, without providing direct contact 44.28 services at a licensed program, may have unsupervised access to 44.29 children or vulnerable adults receiving services from a program 44.30 licensed to provide: 44.31 (i) family child care for children; 44.32 (ii) foster care for children in the provider's own home; 44.33 or 44.34 (iii) foster care or day care services for adults in the 44.35 provider's own home; and 44.36 (7) all managerial officials as defined under section 45.1 245A.02, subdivision 5a. 45.2 The commissioner must have reasonable cause to study an 45.3 individual under this clausesubdivision. 45.4 (b) For family child foster care settings, a short-term 45.5 substitute caregiver providing direct contact services for a 45.6 child for less than 72 hours of continuous care is not required 45.7 to receive a background study under this chapter. 45.8 [EFFECTIVE DATE.]This section is effective the day 45.9 following final enactment. 45.10 Sec. 40. Minnesota Statutes 2003 Supplement, section 45.11 245C.03, is amended by adding a subdivision to read: 45.12 Subd. 5. [OTHER STATE AGENCIES.] The commissioner shall 45.13 conduct background studies on applicants and license holders 45.14 under the jurisdiction of other state agencies who are required 45.15 in other statutory sections to initiate background studies under 45.16 this chapter, including the applicant's or license holder's 45.17 employees, contractors, and volunteers when required under other 45.18 statutory sections. 45.19 [EFFECTIVE DATE.]This section is effective the day 45.20 following final enactment. 45.21 Sec. 41. Minnesota Statutes 2003 Supplement, section 45.22 245C.05, subdivision 1, is amended to read: 45.23 Subdivision 1. [INDIVIDUAL STUDIED.] (a) The individual 45.24 who is the subject of the background study must provide the 45.25 applicant, license holder, or other entity under section 245C.04 45.26 with sufficient information to ensure an accurate study, 45.27 including: 45.28 (1) the individual's first, middle, and last name and all 45.29 other names by which the individual has been known; 45.30 (2) home address, city, county,and state of residence for45.31 the past five years; 45.32 (3) zip code; 45.33 (4) sex; 45.34 (5) date of birth; and 45.35 (6) Minnesota driver's license number or state 45.36 identification number. 46.1 (b) Every subject of a background study conducted by 46.2 counties or private agencies under this chapter must also 46.3 provide the home address, city, county, and state of residence 46.4 for the past five years. 46.5 [EFFECTIVE DATE.]This section is effective the day 46.6 following final enactment. 46.7 Sec. 42. Minnesota Statutes 2003 Supplement, section 46.8 245C.05, subdivision 2, is amended to read: 46.9 Subd. 2. [APPLICANT, LICENSE HOLDER, OR OTHER ENTITY.] The 46.10 applicant, license holder, or other entity under section 245C.0446.11 entities as provided in this chapter shall provide the 46.12 information collected under subdivision 1 about an individual 46.13 who is the subject of the background study on forms or in a 46.14 format prescribed by the commissioner. 46.15 [EFFECTIVE DATE.]This section is effective the day 46.16 following final enactment. 46.17 Sec. 43. Minnesota Statutes 2003 Supplement, section 46.18 245C.05, subdivision 5, is amended to read: 46.19 Subd. 5. [FINGERPRINTS.] (a) For any background study 46.20 completed under this sectionchapter, when the commissioner has 46.21 reasonable cause to believe that further pertinent information 46.22 may exist on the subject of the background study, the subject 46.23 shall provide the commissioner with a set of classifiable 46.24 fingerprints obtained from an authorized law enforcement agency. 46.25 (b) For purposes of requiring fingerprints, the 46.26 commissioner has reasonable cause when, but not limited to, the: 46.27 (1) information from the Bureau of Criminal Apprehension 46.28 indicates that the subject is a multistate offender; 46.29 (2) information from the Bureau of Criminal Apprehension 46.30 indicates that multistate offender status is undetermined; or 46.31 (3) commissioner has received a report from the subject or 46.32 a third party indicating that the subject has a criminal history 46.33 in a jurisdiction other than Minnesota. 46.34 [EFFECTIVE DATE.]This section is effective the day 46.35 following final enactment. 46.36 Sec. 44. Minnesota Statutes 2003 Supplement, section 47.1 245C.05, subdivision 6, is amended to read: 47.2 Subd. 6. [APPLICANT, LICENSE HOLDER, REGISTRANTOTHER 47.3 ENTITIES, AND AGENCIES.] (a) The applicant, license 47.4 holder, registrantother entities as provided in this chapter, 47.5 Bureau of Criminal Apprehension, commissioner of health, and 47.6 county agencies shall help with the study by giving the 47.7 commissioner criminal conviction data and reports about the 47.8 maltreatment of adults substantiated under section 626.557 and 47.9 the maltreatment of minors in licensed programssubstantiated 47.10 under section 626.556. 47.11 (b) If a background study is initiated by an applicant or, 47.12 license holder, or other entities as provided in this chapter, 47.13 and the applicant or, license holder, or other entity receives 47.14 information about the possible criminal or maltreatment history 47.15 of an individual who is the subject of the background study, the 47.16 applicant or, license holder, or other entity must immediately 47.17 provide the information to the commissioner. 47.18 (c) The program or county or other agency must provide 47.19 written notice to the individual who is the subject of the 47.20 background study of the requirements under this subdivision. 47.21 [EFFECTIVE DATE.]This section is effective the day 47.22 following final enactment. 47.23 Sec. 45. Minnesota Statutes 2003 Supplement, section 47.24 245C.08, subdivision 2, is amended to read: 47.25 Subd. 2. [BACKGROUND STUDIES CONDUCTED BY A COUNTY OR 47.26 PRIVATE AGENCY; FOSTER CARE AND FAMILY CHILD CARE.] (a) For a 47.27 background study conducted by a county or private agency for 47.28 child foster care, adult foster care, and family child care 47.29 homes, the commissioner shall review: 47.30 (1) information from the county agency's record of 47.31 substantiated maltreatment of adults and the maltreatment of 47.32 minors; 47.33 (2) information from juvenile courts as required in 47.34 subdivision 4 for individuals listed in section 245C.03, 47.35 subdivision 1, clauses (2), (5), and (6); and47.36 (3) information from the Bureau of Criminal Apprehension; 48.1 and 48.2 (4) arrest and investigative records maintained by the 48.3 Bureau of Criminal Apprehension, county attorneys, county 48.4 sheriffs, courts, county agencies, local police, the National 48.5 Criminal Records Repository, and criminal records from other 48.6 states. 48.7 (b) If the individual has resided in the county for less 48.8 than five years, the study shall include the records specified 48.9 under paragraph (a) for the previous county or counties of 48.10 residence for the past five years. 48.11 [EFFECTIVE DATE.]This section is effective the day 48.12 following final enactment. 48.13 Sec. 46. Minnesota Statutes 2003 Supplement, section 48.14 245C.08, subdivision 3, is amended to read: 48.15 Subd. 3. [ARREST AND INVESTIGATIVE INFORMATION.] (a) For 48.16 any background study completed under this section, if the 48.17 commissioner has reasonable cause to believe the information is 48.18 pertinent to the disqualification of an individual listed in48.19 section 245C.03, subdivisions 1 and 2, the commissioner also may 48.20 review arrest and investigative information from: 48.21 (1) the Bureau of Criminal Apprehension; 48.22 (2) the commissioner of health; 48.23 (3) a county attorney; 48.24 (4) a county sheriff; 48.25 (5) a county agency; 48.26 (6) a local chief of police; 48.27 (7) other states; 48.28 (8) the courts; or 48.29 (9) the Federal Bureau of Investigation. 48.30 (b) The commissioner is not required to conduct more than 48.31 one review of a subject's records from the Federal Bureau of 48.32 Investigation if a review of the subject's criminal history with 48.33 the Federal Bureau of Investigation has already been completed 48.34 by the commissioner and there has been no break in the subject's 48.35 affiliation with the license holder who initiated the background 48.36 study. 49.1 [EFFECTIVE DATE.]This section is effective the day 49.2 following final enactment. 49.3 Sec. 47. Minnesota Statutes 2003 Supplement, section 49.4 245C.08, subdivision 4, is amended to read: 49.5 Subd. 4. [JUVENILE COURT RECORDS.] (a) The commissioner 49.6 shall review records from the juvenile courts for an individual 49.7 studied under section 245C.03, subdivision 1, clauses (2) and 49.8 (5). 49.9 (b) For individuals studied under section 245C.03, 49.10 subdivision 1, clauses (1), (3), (4), and (6), and subdivision 49.11 2, who are ages 13 to 17, the commissioner shall review records 49.12 from the juvenile courts when the commissioner has reasonable 49.13 cause. 49.14 (c) The juvenile courts shall help with the study by giving 49.15 the commissioner existing juvenile court records on individuals 49.16 described in section 245C.03, subdivision 1, clauses (2), (5), 49.17 and (6), relating to delinquency proceedings held within either 49.18 the five years immediately preceding the background study or the 49.19 five years immediately preceding the individual's 18th birthday, 49.20 whichever time period is longer. 49.21 (d) For purposes of this chapter, a finding that a 49.22 delinquency petition is proven in juvenile court shall be 49.23 considered a conviction in state district court. 49.24 (e) The commissioner shall destroy juvenile court records 49.25 obtained under this subdivision when the subject of the records 49.26 reaches age 23. 49.27 [EFFECTIVE DATE.]This section is effective the day 49.28 following final enactment. 49.29 Sec. 48. Minnesota Statutes 2003 Supplement, section 49.30 245C.09, subdivision 1, is amended to read: 49.31 Subdivision 1. [DISQUALIFICATION; LICENSING ACTION.] An 49.32 applicant's, license holder's, or registrant'sother entity's 49.33 failure or refusal to cooperate with the commissioner is 49.34 reasonable cause to disqualify a subject, deny a license 49.35 application, or immediately suspend or revoke a license or 49.36 registration. 50.1 [EFFECTIVE DATE.]This section is effective the day 50.2 following final enactment. 50.3 Sec. 49. Minnesota Statutes 2003 Supplement, section 50.4 245C.13, subdivision 1, is amended to read: 50.5 Subdivision 1. [TIMING.] Upon receipt of the background 50.6 study forms from an applicant, license holder, registrant,50.7 agency, organization, program,or other entity as provided in 50.8 this chapter required to initiate a background study under 50.9 section 245C.04, the commissioner shall complete the background 50.10 study and provide the notice required under section 245C.17, 50.11 subdivision 1, within 15 working days. 50.12 [EFFECTIVE DATE.]This section is effective the day 50.13 following final enactment. 50.14 Sec. 50. Minnesota Statutes 2003 Supplement, section 50.15 245C.14, subdivision 1, is amended to read: 50.16 Subdivision 1. [DISQUALIFICATION FROM DIRECT CONTACT.] (a) 50.17 The commissioner shall disqualify an individual who is the 50.18 subject of a background study from any position allowing direct 50.19 contact with persons receiving services from the license holder 50.20 or entity identified in section 245C.03, upon receipt of 50.21 information showing, or when a background study completed under 50.22 this chapter shows any of the following: 50.23 (1) a conviction of or admission to one or more crimes 50.24 listed in section 245C.15, regardless of whether the conviction 50.25 or admission is a felony, gross misdemeanor, or misdemeanor 50.26 level crime; 50.27 (2) a preponderance of the evidence indicates the 50.28 individual has committed an act or acts that meet the definition 50.29 of any of the crimes listed in section 245C.15, regardless of 50.30 whether the preponderance of the evidence is for a felony, gross 50.31 misdemeanor, or misdemeanor level crime; or 50.32 (3) an investigation results in an administrative 50.33 determination listed under section 245C.15, subdivision 4, 50.34 paragraph (b). 50.35 (b) No individual who is disqualified following a 50.36 background study under section 245C.03, subdivisions 1 and 2, 51.1 may be retained in a position involving direct contact with 51.2 persons served by a program or entity identified in section 51.3 245C.03, unless the commissioner has provided written notice 51.4 under section 245C.17 stating that: 51.5 (1) the individual may remain in direct contact during the 51.6 period in which the individual may request reconsideration as 51.7 provided in section 245C.21, subdivision 2; 51.8 (2) the commissioner has set aside the individual's 51.9 disqualification for that program or entity identified in 51.10 section 245C.03, as provided in section 245C.22, subdivision 4; 51.11 or 51.12 (3) the license holder has been granted a variance for the 51.13 disqualified individual under section 245C.30. 51.14 [EFFECTIVE DATE.]This section is effective the day 51.15 following final enactment. 51.16 Sec. 51. Minnesota Statutes 2003 Supplement, section 51.17 245C.15, subdivision 2, is amended to read: 51.18 Subd. 2. [15-YEAR DISQUALIFICATION.] (a) An individual is 51.19 disqualified under section 245C.14 if: (1) less than 15 years 51.20 have passed since the discharge of the sentence imposed for the 51.21 offense; and (2) the individual has received a felony conviction 51.22 for a violation of any of the following offenses: sections 51.23 260C.301 (grounds for termination of parental rights); 609.165 51.24 (felon ineligible to possess firearm); 609.21 (criminal 51.25 vehicular homicide and injury); 609.215 (suicide); 609.223 or 51.26 609.2231 (assault in the third or fourth degree); repeat 51.27 offenses under 609.224 (assault in the fifth degree); 609.2325 51.28 (criminal abuse of a vulnerable adult); 609.2335 (financial 51.29 exploitation of a vulnerable adult); 609.235 (use of drugs to 51.30 injure or facilitate crime); 609.24 (simple robbery); 609.255 51.31 (false imprisonment); 609.2664 (manslaughter of an unborn child 51.32 in the first degree); 609.2665 (manslaughter of an unborn child 51.33 in the second degree); 609.267 (assault of an unborn child in 51.34 the first degree); 609.2671 (assault of an unborn child in the 51.35 second degree); 609.268 (injury or death of an unborn child in 51.36 the commission of a crime); 609.27 (coercion); 609.275 (attempt 52.1 to coerce); repeat offenses under 609.3451 (criminal sexual 52.2 conduct in the fifth degree); 609.498, subdivision 1 or 1b 52.3 (aggravated first degree or first degree tampering with a 52.4 witness); 609.52 (theft); 609.521 (possession of shoplifting 52.5 gear); 609.562 (arson in the second degree); 609.563 (arson in 52.6 the third degree); 609.582 (burglary); 609.625 (aggravated 52.7 forgery); 609.63 (forgery); 609.631 (check forgery; offering a 52.8 forged check); 609.635 (obtaining signature by false pretense); 52.9 609.66 (dangerous weapons); 609.67 (machine guns and 52.10 short-barreled shotguns); 609.687 (adulteration); 609.71 (riot); 52.11 609.713 (terroristic threats); repeat offenses under 617.23 52.12 (indecent exposure; penalties); repeat offenses under 617.241 52.13 (obscene materials and performances; distribution and exhibition 52.14 prohibited; penalty); chapter 152 (drugs; controlled substance); 52.15 or a felony level conviction involving alcohol or drug use. 52.16 (b) An individual is disqualified under section 245C.14 if 52.17 less than 15 years has passed since the individual's attempt or 52.18 conspiracy to commit any of the offenses listed in paragraph 52.19 (a), as each of these offenses is defined in Minnesota Statutes. 52.20 (c) An individual is disqualified under section 245C.14 if 52.21 less than 15 years has passed since the discharge of the 52.22 sentence imposed for an offense in any other state or country, 52.23 the elements of which are substantially similar to the elements 52.24 of the offenses listed in paragraph (a). 52.25 (d) If the individual studied is convicted of one of the 52.26 felonies listed in paragraph (a), but the sentence is a gross 52.27 misdemeanor or misdemeanor disposition, the individual is 52.28 disqualified but the disqualification lookback period for the 52.29 conviction is the period applicable to the gross misdemeanor or 52.30 misdemeanor disposition. 52.31 [EFFECTIVE DATE.]This section is effective the day 52.32 following final enactment. 52.33 Sec. 52. Minnesota Statutes 2003 Supplement, section 52.34 245C.15, subdivision 3, is amended to read: 52.35 Subd. 3. [TEN-YEAR DISQUALIFICATION.] (a) An individual is 52.36 disqualified under section 245C.14 if: (1) less than ten years 53.1 have passed since the discharge of the sentence imposed for the 53.2 offense; and (2) the individual has received a gross misdemeanor 53.3 conviction for a violation of any of the following offenses: 53.4 sections 609.224 (assault in the fifth degree); 609.224, 53.5 subdivision 2, paragraph (c) (assault in the fifth degree by a 53.6 caregiver against a vulnerable adult); 609.2242 and 609.2243 53.7 (domestic assault); 609.23 (mistreatment of persons confined); 53.8 609.231 (mistreatment of residents or patients); 609.2325 53.9 (criminal abuse of a vulnerable adult); 609.233 (criminal 53.10 neglect of a vulnerable adult); 609.2335 (financial exploitation 53.11 of a vulnerable adult); 609.234 (failure to report maltreatment 53.12 of a vulnerable adult); 609.265 (abduction); 609.275 (attempt to 53.13 coerce); 609.324, subdivision 1a (other prohibited acts; minor 53.14 engaged in prostitution); 609.33 (disorderly house); 609.3451 53.15 (criminal sexual conduct in the fifth degree); 609.377 53.16 (malicious punishment of a child); 609.378 (neglect or 53.17 endangerment of a child); 609.52 (theft); 609.582 (burglary); 53.18 609.631 (check forgery; offering a forged check); 609.66 53.19 (dangerous weapons); 609.71 (riot); 609.72, subdivision 3 53.20 (disorderly conduct against a vulnerable adult); repeat offenses 53.21 under 609.746 (interference with privacy); 609.749, subdivision 53.22 2 (harassment; stalking); repeat offenses under 617.23 (indecent 53.23 exposure); 617.241 (obscene materials and performances); 617.243 53.24 (indecent literature, distribution); 617.293 (harmful materials; 53.25 dissemination and display to minors prohibited); or violation of 53.26 an order for protection under section 518B.01, subdivision 14. 53.27 (b) An individual is disqualified under section 245C.14 if 53.28 less than ten years has passed since the individual's attempt or 53.29 conspiracy to commit any of the offenses listed in paragraph 53.30 (a), as each of these offenses is defined in Minnesota Statutes. 53.31 (c) An individual is disqualified under section 245C.14 if 53.32 less than ten years has passed since the discharge of the 53.33 sentence imposed for an offense in any other state or country, 53.34 the elements of which are substantially similar to the elements 53.35 of any of the offenses listed in paragraph (a). 53.36 (d) If the defendant is convicted of one of the gross 54.1 misdemeanors listed in paragraph (a), but the sentence is a 54.2 misdemeanor disposition, the individual is disqualified but the 54.3 disqualification lookback period for the conviction is the 54.4 period applicable to misdemeanors. 54.5 [EFFECTIVE DATE.]This section is effective the day 54.6 following final enactment. 54.7 Sec. 53. Minnesota Statutes 2003 Supplement, section 54.8 245C.15, subdivision 4, is amended to read: 54.9 Subd. 4. [SEVEN-YEAR DISQUALIFICATION.] (a) An individual 54.10 is disqualified under section 245C.14 if: (1) less than seven 54.11 years has passed since the discharge of the sentence imposed for 54.12 the offense; and (2) the individual has received a misdemeanor 54.13 conviction for a violation of any of the following offenses: 54.14 sections 609.224 (assault in the fifth degree); 609.2242 54.15 (domestic assault); 609.2335 (financial exploitation of a 54.16 vulnerable adult); 609.234 (failure to report maltreatment of a 54.17 vulnerable adult); 609.2672 (assault of an unborn child in the 54.18 third degree); 609.27 (coercion); violation of an order for 54.19 protection under 609.3232 (protective order authorized; 54.20 procedures; penalties); 609.52 (theft); 609.66 (dangerous 54.21 weapons); 609.665 (spring guns); 609.746 (interference with 54.22 privacy); 609.79 (obscene or harassing phone calls); 609.795 54.23 (letter, telegram, or package; opening; harassment); 617.23 54.24 (indecent exposure; penalties); 617.293 (harmful materials; 54.25 dissemination and display to minors prohibited); or violation of 54.26 an order for protection under section 518B.01 (Domestic Abuse 54.27 Act). 54.28 (b) An individual is disqualified under section 245C.14 if 54.29 less than seven years has passed since a determination or 54.30 disposition of the individual's: 54.31 (1) failure to make required reports under section 626.556, 54.32 subdivision 3, or 626.557, subdivision 3, for incidents in 54.33 which: (i) the final disposition under section 626.556 or 54.34 626.557 was substantiated maltreatment, and (ii) the 54.35 maltreatment was recurring or serious; or 54.36 (2) substantiated serious or recurring maltreatment of a 55.1 minor under section 626.556 or of, a vulnerable adult under 55.2 section 626.557, or serious or recurring maltreatment in any 55.3 other state, the elements of which are substantially similar to 55.4 the elements of maltreatment under section 626.556 or 626.557 55.5 for which: (i) there is a preponderance of evidence that the 55.6 maltreatment occurred, and (ii) the subject was responsible for 55.7 the maltreatment. 55.8 (c) An individual is disqualified under section 245C.14 if 55.9 less than seven years has passed since the individual's attempt 55.10 or conspiracy to commit any of the offenses listed in paragraphs 55.11 (a) and (b), as each of these offenses is defined in Minnesota 55.12 Statutes. 55.13 (d) An individual is disqualified under section 245C.14 if 55.14 less than seven years has passed since the discharge of the 55.15 sentence imposed for an offense in any other state or country, 55.16 the elements of which are substantially similar to the elements 55.17 of any of the offenses listed in paragraphs (a) and (b). 55.18 [EFFECTIVE DATE.]This section is effective the day 55.19 following final enactment. 55.20 Sec. 54. Minnesota Statutes 2003 Supplement, section 55.21 245C.16, subdivision 1, is amended to read: 55.22 Subdivision 1. [DETERMINING IMMEDIATE RISK OF HARM.] (a) 55.23 If the commissioner determines that the individual studied has a 55.24 disqualifying characteristic, the commissioner shall review the 55.25 information immediately available and make a determination as to 55.26 the subject's immediate risk of harm to persons served by the 55.27 program where the individual studied will have direct contact. 55.28 (b) The commissioner shall consider all relevant 55.29 information available, including the following factors in 55.30 determining the immediate risk of harm: 55.31 (1) the recency of the disqualifying characteristic; 55.32 (2) the recency of discharge from probation for the crimes; 55.33 (3) the number of disqualifying characteristics; 55.34 (4) the intrusiveness or violence of the disqualifying 55.35 characteristic; 55.36 (5) the vulnerability of the victim involved in the 56.1 disqualifying characteristic; and56.2 (6) the similarity of the victim to the persons served by 56.3 the program where the individual studied will have direct 56.4 contact; and 56.5 (7) whether the individual has a disqualification from a 56.6 previous background study that has not been set aside. 56.7 (c) This section does not apply when the subject of a 56.8 background study is regulated by a health-related licensing 56.9 board as defined in chapter 214, and the subject is determined 56.10 to be responsible for substantiated maltreatment under section 56.11 626.556 or 626.557. 56.12 (d) If the commissioner has reason to believe, based on 56.13 arrest information or an active maltreatment investigation, that 56.14 an individual poses an imminent risk of harm to persons 56.15 receiving services, the commissioner may order that the person 56.16 be continuously supervised or immediately removed pending the 56.17 conclusion of the maltreatment investigation or criminal 56.18 proceedings. 56.19 [EFFECTIVE DATE.]This section is effective the day 56.20 following final enactment. 56.21 Sec. 55. Minnesota Statutes 2003 Supplement, section 56.22 245C.17, subdivision 1, is amended to read: 56.23 Subdivision 1. [TIME FRAME FOR NOTICE OF STUDY RESULTS.] 56.24 (a) Within 15 working days after the commissioner's receipt of 56.25 the background study form, the commissioner shall notify the 56.26 individual who is the subject of the study in writing or by 56.27 electronic transmission of the results of the study or that more 56.28 time is needed to complete the study. 56.29 (b) Within 15 working days after the commissioner's receipt 56.30 of the background study form, the commissioner shall notify the 56.31 applicant, license holder, or registrantother entity as 56.32 provided in this chapter in writing or by electronic 56.33 transmission of the results of the study or that more time is 56.34 needed to complete the study. 56.35 [EFFECTIVE DATE.]This section is effective the day 56.36 following final enactment. 57.1 Sec. 56. Minnesota Statutes 2003 Supplement, section 57.2 245C.17, subdivision 3, is amended to read: 57.3 Subd. 3. [DISQUALIFICATION NOTICE SENT TO APPLICANT, 57.4 LICENSE HOLDER, OR REGISTRANTOTHER ENTITY.] (a) The 57.5 commissioner shall notify an applicant, license holder, 57.6 or registrantother entity as provided in this chapter who is 57.7 not the subject of the study: 57.8 (1) that the commissioner has found information that 57.9 disqualifies the individual studied from direct contact with, or 57.10 from access to, persons served by the program; and 57.11 (2) the commissioner's determination of the individual's 57.12 risk of harm under section 245C.16. 57.13 (b) If the commissioner determines under section 245C.16 57.14 that an individual studied poses an imminent risk of harm to 57.15 persons served by the program where the individual studied will 57.16 have direct contact, the commissioner shall order the license 57.17 holder to immediately remove the individual studied from direct 57.18 contact. 57.19 (c) If the commissioner determines under section 245C.16 57.20 that an individual studied poses a risk of harm that requires 57.21 continuous, direct supervision, the commissioner shall order the 57.22 applicant, license holder, or other entities as provided in this 57.23 chapter to: 57.24 (1) immediately remove the individual studied from direct 57.25 contact services; or 57.26 (2) assure that the individual studied is under continuous, 57.27 direct supervision when providing direct contact services during 57.28 the period in which the individual may request a reconsideration 57.29 of the disqualification under section 245C.21. 57.30 (d) If the commissioner determines under section 245C.16 57.31 that an individual studied does not pose a risk of harm that 57.32 requires continuous, direct supervision, the commissioner shall 57.33 send the license holder a notice that more time is needed to 57.34 complete the individual's background study. 57.35 (e) The commissioner shall not notify the applicant, 57.36 license holder, or registrantother entity as provided in this 58.1 chapter of the information contained in the subject's background 58.2 study unless: 58.3 (1) the basis for the disqualification is failure to 58.4 cooperate with the background study or substantiated 58.5 maltreatment under section 626.556 or 626.557; 58.6 (2) the Data Practices Act under chapter 13 provides for 58.7 release of the information; or 58.8 (3) the individual studied authorizes the release of the 58.9 information. 58.10 [EFFECTIVE DATE.]This section is effective the day 58.11 following final enactment. 58.12 Sec. 57. Minnesota Statutes 2003 Supplement, section 58.13 245C.18, is amended to read: 58.14 245C.18 [OBLIGATION TO REMOVE DISQUALIFIED INDIVIDUAL FROM 58.15 DIRECT CONTACT.] 58.16 Upon receipt of notice from the commissioner, the license 58.17 holder must remove a disqualified individual from direct contact 58.18 with persons served by the licensed program if: 58.19 (1) the individual does not request reconsideration under 58.20 section 245C.21 within the prescribed time , or if; 58.21 (2) the individual submits a timely request for 58.22 reconsideration, andthe commissioner does not set aside the 58.23 disqualification under section 245C.22, subdivision 4 ., and the 58.24 individual does not submit a timely request for a hearing under 58.25 sections 245C.27 and 256.045, or 245C.28 and chapter 14; or 58.26 (3) the individual submits a timely request for a hearing 58.27 under sections 245C.27 and 256.045, or 245C.28 and chapter 14, 58.28 and the commissioner does not set aside or rescind the 58.29 disqualification under section 245A.08, subdivision 5, or 58.30 256.045. 58.31 [EFFECTIVE DATE.]This section is effective the day 58.32 following final enactment. 58.33 Sec. 58. Minnesota Statutes 2003 Supplement, section 58.34 245C.20, is amended to read: 58.35 245C.20 [LICENSE HOLDER RECORD KEEPING.] 58.36 A licensed program shall document the date the program 59.1 initiates a background study under this chapter in the program's 59.2 personnel files. When a background study is completed under 59.3 this chapter, a licensed program shall maintain a notice that 59.4 the study was undertaken and completed in the program's 59.5 personnel files. If a licensed program has not received a 59.6 response from the commissioner under section 245C.17 within 45 59.7 days of initiation of the background study request, the licensed 59.8 program must contact the commissioner to inquire about the 59.9 status of the study. 59.10 [EFFECTIVE DATE.]This section is effective the day 59.11 following final enactment. 59.12 Sec. 59. Minnesota Statutes 2003 Supplement, section 59.13 245C.21, subdivision 3, is amended to read: 59.14 Subd. 3. [INFORMATION DISQUALIFIED INDIVIDUALS MUST 59.15 PROVIDE WHEN REQUESTING RECONSIDERATION.] The disqualified 59.16 individual requesting reconsideration must submit information 59.17 showing that: 59.18 (1) the information the commissioner relied upon in 59.19 determining the underlying conduct that gave rise to the 59.20 disqualification is incorrect; 59.21 (2) for maltreatment, the information the commissioner 59.22 relied upon in determining that maltreatment was serious or 59.23 recurring is incorrect; or 59.24 (3) the subject of the study does not pose a risk of harm 59.25 to any person served by the applicant, license holder, or 59.26 registrantother entities as provided in this chapter, by 59.27 addressing the information required under section 245C.22, 59.28 subdivision 4. 59.29 [EFFECTIVE DATE.]This section is effective the day 59.30 following final enactment. 59.31 Sec. 60. Minnesota Statutes 2003 Supplement, section 59.32 245C.21, is amended by adding a subdivision to read: 59.33 Subd. 4. [NOTICE OF REQUEST FOR RECONSIDERATION.] Upon 59.34 request, the commissioner may inform the applicant, license 59.35 holder, or other entities as provided in this chapter who 59.36 received a notice of the individual's disqualification under 60.1 section 245C.17, subdivision 3, or has the consent of the 60.2 disqualified individual, whether the disqualified individual has 60.3 requested reconsideration. 60.4 [EFFECTIVE DATE.]This section is effective the day 60.5 following final enactment. 60.6 Sec. 61. Minnesota Statutes 2003 Supplement, section 60.7 245C.22, subdivision 3, is amended to read: 60.8 Subd. 3. [PREEMINENT WEIGHT GIVEN TO SAFETY OF PERSONS 60.9 BEING SERVED.] In reviewing a request for reconsideration of a 60.10 disqualification, the commissioner shall give preeminent weight 60.11 to the safety of each person served by the license holder, 60.12 applicant, or registrantother entities as provided in this 60.13 chapter over the interests of the license holder, applicant, 60.14 or registrantother entity as provided in this chapter, and any 60.15 single factor under subdivision 4, paragraph (b), may be 60.16 determinative of the commissioner's decision whether to set 60.17 aside the individual's disqualification. 60.18 [EFFECTIVE DATE.]This section is effective the day 60.19 following final enactment. 60.20 Sec. 62. Minnesota Statutes 2003 Supplement, section 60.21 245C.22, subdivision 4, is amended to read: 60.22 Subd. 4. [RISK OF HARM; SET ASIDE.] (a) The commissioner 60.23 may set aside the disqualification if the commissioner finds 60.24 that the individual has submitted sufficient information to 60.25 demonstrate that the individual does not pose a risk of harm to 60.26 any person served by the applicant, license holder, 60.27 or registrantother entities as provided in this chapter. 60.28 (b) In determining ifwhether the individual has met the 60.29 burden of proof by demonstrating the individual does not pose a 60.30 risk of harm, the commissioner shall consider: 60.31 (1) the nature, severity, and consequences of the event or 60.32 events that led to the disqualification; 60.33 (2) whether there is more than one disqualifying event; 60.34 (3) the age and vulnerability of the victim at the time of 60.35 the event; 60.36 (4) the harm suffered by the victim; 61.1 (5) the similarity between the victim and persons served by 61.2 the program; 61.3 (6) the time elapsed without a repeat of the same or 61.4 similar event; 61.5 (7) documentation of successful completion by the 61.6 individual studied of training or rehabilitation pertinent to 61.7 the event; and 61.8 (8) any other information relevant to reconsideration. 61.9 [EFFECTIVE DATE.]This section is effective the day 61.10 following final enactment. 61.11 Sec. 63. Minnesota Statutes 2003 Supplement, section 61.12 245C.22, subdivision 5, is amended to read: 61.13 Subd. 5. [SCOPE OF SET ASIDE.] If the commissioner sets 61.14 aside a disqualification under this section, the disqualified 61.15 individual remains disqualified, but may hold a license and have 61.16 direct contact with or access to persons receiving services. 61.17 The commissioner's set aside of a disqualification is limited 61.18 solely to the licensed program, applicant, or agency specified 61.19 in the set aside notice under section 245C.23, unless otherwise 61.20 specified in the notice. 61.21 [EFFECTIVE DATE.]This section is effective the day 61.22 following final enactment. 61.23 Sec. 64. Minnesota Statutes 2003 Supplement, section 61.24 245C.22, subdivision 6, is amended to read: 61.25 Subd. 6. [RECISION OF SET ASIDE.] The commissioner may 61.26 rescind a previous set aside of a disqualification under this 61.27 section based on new information that indicates the individual 61.28 may pose a risk of harm to persons served by the applicant, 61.29 license holder, or registrantother entities as provided in this 61.30 chapter. If the commissioner rescinds a set aside of a 61.31 disqualification under this paragraphsubdivision, the appeal 61.32 rights under sections 245C.21 and, 245C.27, subdivision 1, and 61.33 245C.28, subdivision 3, shall apply. 61.34 [EFFECTIVE DATE.]This section is effective the day 61.35 following final enactment. 61.36 Sec. 65. Minnesota Statutes 2003 Supplement, section 62.1 245C.23, subdivision 1, is amended to read: 62.2 Subdivision 1. [COMMISSIONER'S NOTICE OF DISQUALIFICATION 62.3 THAT IS SET ASIDE.] (a) Except as provided under paragraph (c), 62.4 if the commissioner sets aside a disqualification, the 62.5 commissioner shall notify the applicant or license holder in 62.6 writing or by electronic transmission of the decision. In the 62.7 notice from the commissioner that a disqualification has been 62.8 set aside, the commissioner must inform the license holder that 62.9 information about the nature of the disqualification and which 62.10 factors under section 245C.22, subdivision 4, were the basis of 62.11 the decision to set aside the disqualification are available to 62.12 the license holder upon request without the consent of the 62.13 background study subject. 62.14 (b) With the written consent of the background study 62.15 subject, the commissioner may release to the license holder 62.16 copies of all information related to the background study 62.17 subject's disqualification and the commissioner's decision to 62.18 set aside the disqualification as specified in the written 62.19 consent. 62.20 (c) If the individual studied submits a timely request for 62.21 reconsideration under section 245C.21 and the license holder was 62.22 previously sent a notice under section 245C.17, subdivision 3, 62.23 paragraph (d), and if the commissioner sets aside the 62.24 disqualification for that license holder under section 245C.22, 62.25 the commissioner shall send the license holder the same 62.26 notification received by license holders in cases where the 62.27 individual studied has no disqualifying characteristic. 62.28 [EFFECTIVE DATE.]This section is effective the day 62.29 following final enactment. 62.30 Sec. 66. Minnesota Statutes 2003 Supplement, section 62.31 245C.23, subdivision 2, is amended to read: 62.32 Subd. 2. [COMMISSIONER'S NOTICE OF DISQUALIFICATION THAT 62.33 IS NOT SET ASIDE.] (a) The commissioner shall notify the license 62.34 holder of the disqualification and order the license holder to 62.35 immediately remove the individual from any position allowing 62.36 direct contact with persons receiving services from the license 63.1 holder if: 63.2 (1) the individual studied does not submit a timely request 63.3 for reconsideration under section 245C.21 , or; 63.4 (2) the individual submits a timely request for 63.5 reconsideration, but the commissioner does not set aside the 63.6 disqualification for that license holder under section 245C.22 ,63.7 the commissioner shall notify the license holder of the63.8 disqualification and order the license holder to immediately63.9 remove the individual from any position allowing direct contact63.10 with persons receiving services from the license holder.; 63.11 (3) an individual who has a right to request a hearing 63.12 under sections 245C.27 and 256.045, or 245C.28 and chapter 14 63.13 for a disqualification that has not been set aside, does not 63.14 request a hearing within the specified time; or 63.15 (4) an individual submitted a timely request for a hearing 63.16 under sections 245C.27 and 256.045, or 245C.28 and chapter 14, 63.17 but the commissioner does not set aside the disqualification 63.18 under section 245A.08, subdivision 5, or 256.045. 63.19 (b) If the commissioner does not set aside the 63.20 disqualification under section 245C.22, and the license holder 63.21 was previously ordered under section 245C.17 to immediately 63.22 remove the disqualified individual from direct contact with 63.23 persons receiving services or to ensure that the individual is 63.24 under continuous, direct supervision when providing direct 63.25 contact services, the order remains in effect pending the 63.26 outcome of a hearing under sections 245C.27 and 256.045, or 63.27 245C.28 and chapter 14. 63.28 [EFFECTIVE DATE.]This section is effective the day 63.29 following final enactment. 63.30 Sec. 67. Minnesota Statutes 2003 Supplement, section 63.31 245C.25, is amended to read: 63.32 245C.25 [CONSOLIDATED RECONSIDERATION OF MALTREATMENT 63.33 DETERMINATION AND DISQUALIFICATION.] 63.34 (a) If an individual is disqualified on the basis of a 63.35 determination of maltreatment under section 626.556 or 626.557, 63.36 which was serious or recurring, and the individual requests 64.1 reconsideration of the maltreatment determination under section 64.2 626.556, subdivision 10i, or 626.557, subdivision 9d, and also 64.3 requests reconsideration of the disqualification under section 64.4 245C.21, the commissioner shall consolidate the reconsideration 64.5 of the maltreatment determination and the disqualification into 64.6 a single reconsideration. 64.7 (b) For maltreatment and disqualification determinations 64.8 made by county agencies, the county agency shall conduct the 64.9 consolidated reconsideration. If the county agency has 64.10 disqualified an individual on multiple bases, one of which is a 64.11 county maltreatment determination for which the individual has a 64.12 right to request reconsideration, the county shall conduct the 64.13 reconsideration of all disqualifications. 64.14 (c) If the county has previously conducted a consolidated 64.15 reconsideration under paragraph (b) of a maltreatment 64.16 determination and a disqualification based on serious or 64.17 recurring maltreatment, and the county subsequently disqualifies 64.18 the individual based on that determination, the county shall 64.19 conduct the reconsideration of the subsequent disqualification. 64.20 The scope of the subsequent disqualification shall be limited to 64.21 whether the individual poses a risk of harm in accordance with 64.22 section 245C.22, subdivision 4. 64.23 [EFFECTIVE DATE.]This section is effective the day 64.24 following final enactment. 64.25 Sec. 68. Minnesota Statutes 2003 Supplement, section 64.26 245C.26, is amended to read: 64.27 245C.26 [RECONSIDERATION OF A DISQUALIFICATION FOR AN 64.28 INDIVIDUAL LIVING IN A LICENSED HOME.] 64.29 In the case of any ground for disqualification under this 64.30 chapter, if the act was committed by an individual other than 64.31 the applicant ,or license holder , or registrantresiding in the 64.32 applicant's ,or license holder's , or registrant'shome, the 64.33 applicant ,or license holder , or registrantmay seek 64.34 reconsideration when the individual who committed the act no 64.35 longer resides in the home. 64.36 [EFFECTIVE DATE.]This section is effective the day 65.1 following final enactment. 65.2 Sec. 69. Minnesota Statutes 2003 Supplement, section 65.3 245C.27, subdivision 1, is amended to read: 65.4 Subdivision 1. [FAIR HEARING WHEN DISQUALIFICATION IS NOT 65.5 SET ASIDE.] (a) If the commissioner does not set aside or 65.6 rescind a disqualification of an individual under section 65.7 245C.22 who is disqualified on the basis of a preponderance of 65.8 evidence that the individual committed an act or acts that meet 65.9 the definition of any of the crimes listed in section 245C.15; 65.10 for a determination under section 626.556 or 626.557 of 65.11 substantiated maltreatment that was serious or recurring under 65.12 section 245C.15; or for failure to make required reports under 65.13 section 626.556, subdivision 3; or 626.557, subdivision 3, 65.14 pursuant to section 245C.15, subdivision 4, paragraph (b), 65.15 clause (1), the individual may request a fair hearing under 65.16 section 256.045, unless the disqualification is deemed 65.17 conclusive under section 245C.29. 65.18 (b) The fair hearing is the only administrative appeal of 65.19 the final agency determination for purposes of appeal by the 65.20 disqualified individual. The disqualified individual does not 65.21 have the right to challenge the accuracy and completeness of 65.22 data under section 13.04. 65.23 (c) If the individual was disqualified based on a 65.24 conviction or admission to any crimes listed in section 245C.15, 65.25 subdivisions 1 to 4, the reconsideration decision under this65.26 subdivisionsection 245C.22 is the final agency determination 65.27 for purposes of appeal by the disqualified individual and is not 65.28 subject to a hearing under section 256.045. 65.29 (d) This sectionsubdivision does not apply to a public 65.30 employee's appeal of a disqualification under section 245C.28, 65.31 subdivision 3. 65.32 [EFFECTIVE DATE.]This section is effective the day 65.33 following final enactment. 65.34 Sec. 70. Minnesota Statutes 2003 Supplement, section 65.35 245C.27, subdivision 2, is amended to read: 65.36 Subd. 2. [CONSOLIDATED FAIR HEARING FOR MALTREATMENT 66.1 DETERMINATION AND DISQUALIFICATION NOT SET ASIDE.] (a) If an 66.2 individual who is disqualified on the bases of serious or 66.3 recurring maltreatment requests a fair hearing on the 66.4 maltreatment determination under section 626.556, subdivision 66.5 10i, or 626.557, subdivision 9d, and requests a fair hearing 66.6 under this section on the disqualification, which has not been 66.7 set aside or rescinded, the scope of the fair hearing under 66.8 section 256.045 shall include the maltreatment determination and 66.9 the disqualification. 66.10 (b) A fair hearing is the only administrative appeal of the 66.11 final agency determination. The disqualified individual does 66.12 not have the right to challenge the accuracy and completeness of 66.13 data under section 13.04. 66.14 (c) This sectionsubdivision does not apply to a public 66.15 employee's appeal of a disqualification under section 245C.28, 66.16 subdivision 3. 66.17 [EFFECTIVE DATE.]This section is effective the day 66.18 following final enactment. 66.19 Sec. 71. Minnesota Statutes 2003 Supplement, section 66.20 245C.28, subdivision 1, is amended to read: 66.21 Subdivision 1. [LICENSE HOLDER.] (a) If a maltreatment 66.22 determination or a disqualification for which reconsideration 66.23 was requested and which was not set aside or rescindedis the 66.24 basis for a denial of a license under section 245A.05 or a 66.25 licensing sanction under section 245A.07, the license holder has 66.26 the right to a contested case hearing under chapter 14 and 66.27 Minnesota Rules, parts 1400.8505 to 1400.8612. 66.28 (b) The license holder must submit the appeal in accordance 66.29 with section 245A.05 or 245A.07, subdivision 3. As provided 66.30 under section 245A.08, subdivision 2a, the scope of the 66.31 consolidated contested case hearing must include the 66.32 disqualification and the licensing sanction or denial of a 66.33 license. 66.34 (c) If the disqualification was based on a determination of 66.35 substantiated serious or recurring maltreatment under section 66.36 626.556 or 626.557, the appeal must be submitted in accordance 67.1 with sections 245A.07, subdivision 3, and 626.556, subdivision 67.2 10i, or 626.557, subdivision 9d. As provided for under section 67.3 245A.08, subdivision 2a, the scope of the contested case hearing 67.4 must include the maltreatment determination, the 67.5 disqualification, and the licensing sanction or denial of a 67.6 license. In such cases, a fair hearing must not be conducted 67.7 under section 256.045. 67.8 [EFFECTIVE DATE.]This section is effective the day 67.9 following final enactment. 67.10 Sec. 72. Minnesota Statutes 2003 Supplement, section 67.11 245C.28, subdivision 2, is amended to read: 67.12 Subd. 2. [INDIVIDUAL OTHER THAN LICENSE HOLDER.] If the 67.13 basis for the commissioner's denial of a license under section 67.14 245A.05 or a licensing sanction under section 245A.07 is a 67.15 maltreatment determination or disqualification that was not set 67.16 aside or rescindedunder section 245C.22, and the disqualified 67.17 subject is an individual other than the license holder and upon 67.18 whom a background study must be conducted under section 245C.03, 67.19 the hearing of all parties may be consolidated into a single 67.20 contested case hearing upon consent of all parties and the 67.21 administrative law judge. 67.22 [EFFECTIVE DATE.]This section is effective the day 67.23 following final enactment. 67.24 Sec. 73. Minnesota Statutes 2003 Supplement, section 67.25 245C.28, subdivision 3, is amended to read: 67.26 Subd. 3. [EMPLOYEES OF PUBLIC EMPLOYER.] (a) If the 67.27 commissioner does not set aside the disqualification of an 67.28 individual who is an employee of an employer, as defined in 67.29 section 179A.03, subdivision 15, the individual may request a 67.30 contested case hearing under chapter 14. The request for a 67.31 contested case hearing must be made in writing and must be 67.32 postmarked and mailed within 30 calendar days after the employee 67.33 receives notice that the disqualification has not been set aside. 67.34 (b) If the commissioner does not set aside or rescind a 67.35 disqualification that is based on a maltreatment determination, 67.36 the scope of the contested case hearing must include the 68.1 maltreatment determination and the disqualification. In such 68.2 cases, a fair hearing must not be conducted under section 68.3 256.045. 68.4 (c) Rules adopted under this chapter may not preclude an 68.5 employee in a contested case hearing for a disqualification from 68.6 submitting evidence concerning information gathered under this 68.7 chapter. 68.8 (d) When a person has been disqualified from multiple 68.9 licensed programs and the disqualifications have not been set 68.10 aside under section 245C.22, if at least one of the 68.11 disqualifications entitles the person to a contested case 68.12 hearing under this subdivision, the scope of the contested case 68.13 hearing shall include all disqualifications from licensed 68.14 programs which were not set aside. 68.15 (e) In determining whether the disqualification should be 68.16 set aside, the administrative law judge shall consider all of 68.17 the characteristics that cause the individual to be 68.18 disqualified, including those characteristics that were not 68.19 subject to review under paragraph (b), in order to determine 68.20 whether the individual poses a risk of harm. The administrative 68.21 law judge's recommendation and the commissioner's order to set 68.22 aside a disqualification that is the subject of the hearing 68.23 constitutes a determination that the individual does not pose a 68.24 risk of harm and that the individual may provide direct contact 68.25 services in the individual program specified in the set aside. 68.26 [EFFECTIVE DATE.]This section is effective the day 68.27 following final enactment. 68.28 Sec. 74. Minnesota Statutes 2003 Supplement, section 68.29 245C.29, subdivision 2, is amended to read: 68.30 Subd. 2. [CONCLUSIVE DISQUALIFICATION DETERMINATION.] (a) 68.31 Unless otherwise specified in statute, a determination that: 68.32 (1) the information the commissioner relied upon to 68.33 disqualify an individual under section 245C.14 was correct based 68.34 on serious or recurring maltreatment; 68.35 (2) a preponderance of the evidence shows that the 68.36 individual committed an act or acts that meet the definition of 69.1 any of the crimes listed in section 245C.15; or 69.2 (3) the individual failed to make required reports under 69.3 section 626.556, subdivision 3, or 626.557, subdivision 3, is 69.4 conclusive if: 69.5 (i) the commissioner has issued a final order in an appeal 69.6 of that determination under section 245A.08, subdivision 5, or 69.7 256.045, or a court has issued a final decision; 69.8 (ii) the individual did not request reconsideration of the 69.9 disqualification under section 245C.21; or 69.10 (iii) the individual did not request a hearing on the 69.11 disqualification under section 256.045 or chapter 14. 69.12 (b) When a licensing action under section 245A.05, 245A.06, 69.13 or 245A.07 is based on the disqualification of an individual in 69.14 connection with a license to provide family child care, foster 69.15 care for children in the provider's own home, or foster care 69.16 services for adults in the provider's own home, that 69.17 disqualification shall be conclusive for purposes of the 69.18 licensing action if a request for reconsideration was not 69.19 submitted within 30 calendar days of the individual's receipt of 69.20 the notice of disqualification. 69.21 (c) If a determination that the information relied upon to 69.22 disqualify an individual was correct and is conclusive under 69.23 this section, and the individual is subsequently disqualified 69.24 under section 245C.15, the individual has a right to request 69.25 reconsideration on the risk of harm under section 245C.21. 69.26 Subsequent determinations regarding the risk of harm shall be 69.27 made according to section 245C.22 and are not subject to another 69.28 hearing under section 256.045 or chapter 14. 69.29 [EFFECTIVE DATE.]This section is effective the day 69.30 following final enactment. 69.31 Sec. 75. Minnesota Statutes 2002, section 252.28, 69.32 subdivision 1, is amended to read: 69.33 Subdivision 1. [DETERMINATIONS; REDETERMINATIONS.] In 69.34 conjunction with the appropriate county boards, the commissioner 69.35 of human services shall determine, and shall redetermine at 69.36 least every four years, the need, anticipated growth or decline 70.1 in need until the next anticipated redetermination, location, 70.2 size, and program of public and private day training and 70.3 habilitation services for persons with mental retardation or 70.4 related conditions. This subdivision does not apply to 70.5 semi-independent living services and residential-based 70.6 habilitation services provided to four or fewer persons at a 70.7 single site funded as home and community-based services. A 70.8 determination of need shall not be required for a change in 70.9 ownership. 70.10 [EFFECTIVE DATE.]This section is effective the day 70.11 following final enactment. 70.12 Sec. 76. Minnesota Statutes 2003 Supplement, section 70.13 256.045, subdivision 3, is amended to read: 70.14 Subd. 3. [STATE AGENCY HEARINGS.] (a) State agency 70.15 hearings are available for the following: (1) any person 70.16 applying for, receiving or having received public assistance, 70.17 medical care, or a program of social services granted by the 70.18 state agency or a county agency or the federal Food Stamp Act 70.19 whose application for assistance is denied, not acted upon with 70.20 reasonable promptness, or whose assistance is suspended, 70.21 reduced, terminated, or claimed to have been incorrectly paid; 70.22 (2) any patient or relative aggrieved by an order of the 70.23 commissioner under section 252.27; (3) a party aggrieved by a 70.24 ruling of a prepaid health plan; (4) except as provided under 70.25 chapter 245C, any individual or facility determined by a lead 70.26 agency to have maltreated a vulnerable adult under section 70.27 626.557 after they have exercised their right to administrative 70.28 reconsideration under section 626.557; (5) any person whose 70.29 claim for foster care payment according to a placement of the 70.30 child resulting from a child protection assessment under section 70.31 626.556 is denied or not acted upon with reasonable promptness, 70.32 regardless of funding source; (6) any person to whom a right of 70.33 appeal according to this section is given by other provision of 70.34 law; (7) an applicant aggrieved by an adverse decision to an 70.35 application for a hardship waiver under section 256B.15; (8) 70.36 except as provided under chapter 245A, an individual or facility 71.1 determined to have maltreated a minor under section 626.556, 71.2 after the individual or facility has exercised the right to 71.3 administrative reconsideration under section 626.556; or (9) 71.4 except as provided under chapter 245C, an individual 71.5 disqualified under sections 245C.14 and 245C.15, on the basis of 71.6 serious or recurring maltreatment; a preponderance of the 71.7 evidence that the individual has committed an act or acts that 71.8 meet the definition of any of the crimes listed in section 71.9 245C.15, subdivisions 1 to 4; or for failing to make reports 71.10 required under section 626.556, subdivision 3, or 626.557, 71.11 subdivision 3. Hearings regarding a maltreatment determination 71.12 under clause (4) or (8) and a disqualification under this clause 71.13 in which the basis for a disqualification is serious or 71.14 recurring maltreatment, which has not been set aside or71.15 rescindedunder sections 245C.22 and 245C.23, shall be 71.16 consolidated into a single fair hearing. In such cases, the 71.17 scope of review by the human services referee shall include both 71.18 the maltreatment determination and the disqualification. The 71.19 failure to exercise the right to an administrative 71.20 reconsideration shall not be a bar to a hearing under this 71.21 section if federal law provides an individual the right to a 71.22 hearing to dispute a finding of maltreatment. Individuals and 71.23 organizations specified in this section may contest the 71.24 specified action, decision, or final disposition before the 71.25 state agency by submitting a written request for a hearing to 71.26 the state agency within 30 days after receiving written notice 71.27 of the action, decision, or final disposition, or within 90 days 71.28 of such written notice if the applicant, recipient, patient, or 71.29 relative shows good cause why the request was not submitted 71.30 within the 30-day time limit. 71.31 The hearing for an individual or facility under clause (4), 71.32 (8), or (9) is the only administrative appeal to the final 71.33 agency determination specifically, including a challenge to the 71.34 accuracy and completeness of data under section 13.04. Hearings 71.35 requested under clause (4) apply only to incidents of 71.36 maltreatment that occur on or after October 1, 1995. Hearings 72.1 requested by nursing assistants in nursing homes alleged to have 72.2 maltreated a resident prior to October 1, 1995, shall be held as 72.3 a contested case proceeding under the provisions of chapter 14. 72.4 Hearings requested under clause (8) apply only to incidents of 72.5 maltreatment that occur on or after July 1, 1997. A hearing for 72.6 an individual or facility under clause (8) is only available 72.7 when there is no juvenile court or adult criminal action 72.8 pending. If such action is filed in either court while an 72.9 administrative review is pending, the administrative review must 72.10 be suspended until the judicial actions are completed. If the 72.11 juvenile court action or criminal charge is dismissed or the 72.12 criminal action overturned, the matter may be considered in an 72.13 administrative hearing. 72.14 For purposes of this section, bargaining unit grievance 72.15 procedures are not an administrative appeal. 72.16 The scope of hearings involving claims to foster care 72.17 payments under clause (5) shall be limited to the issue of 72.18 whether the county is legally responsible for a child's 72.19 placement under court order or voluntary placement agreement 72.20 and, if so, the correct amount of foster care payment to be made 72.21 on the child's behalf and shall not include review of the 72.22 propriety of the county's child protection determination or 72.23 child placement decision. 72.24 (b) A vendor of medical care as defined in section 256B.02, 72.25 subdivision 7, or a vendor under contract with a county agency 72.26 to provide social services is not a party and may not request a 72.27 hearing under this section, except if assisting a recipient as 72.28 provided in subdivision 4. 72.29 (c) An applicant or recipient is not entitled to receive 72.30 social services beyond the services included in the amended 72.31 community social services plan. 72.32 (d) The commissioner may summarily affirm the county or 72.33 state agency's proposed action without a hearing when the sole 72.34 issue is an automatic change due to a change in state or federal 72.35 law. 72.36 [EFFECTIVE DATE.]This section is effective the day 73.1 following final enactment. 73.2 Sec. 77. Minnesota Statutes 2003 Supplement, section 73.3 256.045, subdivision 3b, is amended to read: 73.4 Subd. 3b. [STANDARD OF EVIDENCE FOR MALTREATMENT AND 73.5 DISQUALIFICATION HEARINGS.] (a) The state human services referee 73.6 shall determine that maltreatment has occurred if a 73.7 preponderance of evidence exists to support the final 73.8 disposition under sections 626.556 and 626.557. For purposes of 73.9 hearings regarding disqualification, the state human services 73.10 referee shall affirm the proposed disqualification in an appeal 73.11 under subdivision 3, paragraph (a), clause (9), if a 73.12 preponderance of the evidence shows the individual has: 73.13 (1) committed maltreatment under section 626.556 or 73.14 626.557, which is serious or recurring; 73.15 (2) committed an act or acts meeting the definition of any 73.16 of the crimes listed in section 245C.15, subdivisions 1 to 4; or 73.17 (3) failed to make required reports under section 626.556 73.18 or 626.557, for incidents in which the final disposition under 73.19 section 626.556 or 626.557 was substantiated maltreatment that 73.20 was serious or recurring. 73.21 (b) If the disqualification is affirmed, the state human 73.22 services referee shall determine whether the individual poses a 73.23 risk of harm in accordance with the requirements of section 73.24 245C.16 ., and whether the disqualification should be set aside 73.25 or not set aside. In determining whether the disqualification 73.26 should be set aside, the human services referee shall consider 73.27 all of the characteristics that cause the individual to be 73.28 disqualified, including those characteristics that were not 73.29 subject to review under paragraph (a), in order to determine 73.30 whether the individual poses a risk of harm. A decision to set 73.31 aside a disqualification that is the subject of the hearing 73.32 constitutes a determination that the individual does not pose a 73.33 risk of harm and that the individual may provide direct contact 73.34 services in the individual program specified in the set aside. 73.35 If a determination that the information relied upon to 73.36 disqualify an individual was correct and is conclusive under 74.1 section 245C.29, and the individual is subsequently disqualified 74.2 under section 245C.14, the individual has a right to again 74.3 request reconsideration on the risk of harm under section 74.4 245C.21. Subsequent determinations regarding risk of harm are 74.5 not subject to another hearing under this section. 74.6 (c) The state human services referee shall recommend an 74.7 order to the commissioner of health, education, or human 74.8 services, as applicable, who shall issue a final order. The 74.9 commissioner shall affirm, reverse, or modify the final 74.10 disposition. Any order of the commissioner issued in accordance 74.11 with this subdivision is conclusive upon the parties unless 74.12 appeal is taken in the manner provided in subdivision 7. In any 74.13 licensing appeal under chapters 245A and 245C and sections 74.14 144.50 to 144.58 and 144A.02 to 144A.46, the commissioner's 74.15 determination as to maltreatment is conclusive, as provided 74.16 under section 245C.29. 74.17 [EFFECTIVE DATE.]This section is effective the day 74.18 following final enactment. 74.19 Sec. 78. Minnesota Statutes 2003 Supplement, section 74.20 626.556, subdivision 10, is amended to read: 74.21 Subd. 10. [DUTIES OF LOCAL WELFARE AGENCY AND LOCAL LAW 74.22 ENFORCEMENT AGENCY UPON RECEIPT OF A REPORT.] (a) If the report 74.23 alleges neglect, physical abuse, or sexual abuse by a parent, 74.24 guardian, or individual functioning within the family unit as a 74.25 person responsible for the child's care, the local welfare 74.26 agency shall immediately conduct an assessment including 74.27 gathering information on the existence of substance abuse and 74.28 offer protective social services for purposes of preventing 74.29 further abuses, safeguarding and enhancing the welfare of the 74.30 abused or neglected minor, and preserving family life whenever 74.31 possible. If the report alleges a violation of a criminal 74.32 statute involving sexual abuse, physical abuse, or neglect or 74.33 endangerment, under section 609.378, the local law enforcement 74.34 agency and local welfare agency shall coordinate the planning 74.35 and execution of their respective investigation and assessment 74.36 efforts to avoid a duplication of fact-finding efforts and 75.1 multiple interviews. Each agency shall prepare a separate 75.2 report of the results of its investigation. In cases of alleged 75.3 child maltreatment resulting in death, the local agency may rely 75.4 on the fact-finding efforts of a law enforcement investigation 75.5 to make a determination of whether or not maltreatment 75.6 occurred. When necessary the local welfare agency shall seek 75.7 authority to remove the child from the custody of a parent, 75.8 guardian, or adult with whom the child is living. In performing 75.9 any of these duties, the local welfare agency shall maintain 75.10 appropriate records. 75.11 If the assessment indicates there is a potential for abuse 75.12 of alcohol or other drugs by the parent, guardian, or person 75.13 responsible for the child's care, the local welfare agency shall 75.14 conduct a chemical use assessment pursuant to Minnesota Rules, 75.15 part 9530.6615. The local welfare agency shall report the 75.16 determination of the chemical use assessment, and the 75.17 recommendations and referrals for alcohol and other drug 75.18 treatment services to the state authority on alcohol and drug 75.19 abuse. 75.20 (b) When a local agency receives a report or otherwise has 75.21 information indicating that a child who is a client, as defined 75.22 in section 245.91, has been the subject of physical abuse, 75.23 sexual abuse, or neglect at an agency, facility, or program as 75.24 defined in section 245.91, it shall, in addition to its other 75.25 duties under this section, immediately inform the ombudsman 75.26 established under sections 245.91 to 245.97. The commissioner 75.27 of education shall inform the ombudsman established under 75.28 sections 245.91 to 245.97 of reports regarding a child defined 75.29 as a client in section 245.91 that maltreatment occurred at a 75.30 school as defined in sections 120A.05, subdivisions 9, 11, and 75.31 13, and 124D.10. 75.32 (c) Authority of the local welfare agency responsible for 75.33 assessing the child abuse or neglect report, the agency 75.34 responsible for assessing or investigating the report, and of 75.35 the local law enforcement agency for investigating the alleged 75.36 abuse or neglect includes, but is not limited to, authority to 76.1 interview, without parental consent, the alleged victim and any 76.2 other minors who currently reside with or who have resided with 76.3 the alleged offender. The interview may take place at school or 76.4 at any facility or other place where the alleged victim or other 76.5 minors might be found or the child may be transported to, and 76.6 the interview conducted at, a place appropriate for the 76.7 interview of a child designated by the local welfare agency or 76.8 law enforcement agency. The interview may take place outside 76.9 the presence of the alleged offender or parent, legal custodian, 76.10 guardian, or school official. Except as provided in this 76.11 paragraph, the parent, legal custodian, or guardian shall be 76.12 notified by the responsible local welfare or law enforcement 76.13 agency no later than the conclusion of the investigation or 76.14 assessment that this interview has occurred. Notwithstanding 76.15 rule 49.02 of the Minnesota Rules of Procedure for Juvenile 76.16 Courts, the juvenile court may, after hearing on an ex parte 76.17 motion by the local welfare agency, order that, where reasonable 76.18 cause exists, the agency withhold notification of this interview 76.19 from the parent, legal custodian, or guardian. If the interview 76.20 took place or is to take place on school property, the order 76.21 shall specify that school officials may not disclose to the 76.22 parent, legal custodian, or guardian the contents of the 76.23 notification of intent to interview the child on school 76.24 property, as provided under this paragraph, and any other 76.25 related information regarding the interview that may be a part 76.26 of the child's school record. A copy of the order shall be sent 76.27 by the local welfare or law enforcement agency to the 76.28 appropriate school official. 76.29 (d) When the local welfare, local law enforcement agency, 76.30 or the agency responsible for assessing or investigating a 76.31 report of maltreatment determines that an interview should take 76.32 place on school property, written notification of intent to 76.33 interview the child on school property must be received by 76.34 school officials prior to the interview. The notification shall 76.35 include the name of the child to be interviewed, the purpose of 76.36 the interview, and a reference to the statutory authority to 77.1 conduct an interview on school property. For interviews 77.2 conducted by the local welfare agency, the notification shall be 77.3 signed by the chair of the local social services agency or the 77.4 chair's designee. The notification shall be private data on 77.5 individuals subject to the provisions of this paragraph. School 77.6 officials may not disclose to the parent, legal custodian, or 77.7 guardian the contents of the notification or any other related 77.8 information regarding the interview until notified in writing by 77.9 the local welfare or law enforcement agency that the 77.10 investigation or assessment has been concluded, unless a school 77.11 employee or agent is alleged to have maltreated the child. 77.12 Until that time, the local welfare or law enforcement agency or 77.13 the agency responsible for assessing or investigating a report 77.14 of maltreatment shall be solely responsible for any disclosures 77.15 regarding the nature of the assessment or investigation. 77.16 Except where the alleged offender is believed to be a 77.17 school official or employee, the time and place, and manner of 77.18 the interview on school premises shall be within the discretion 77.19 of school officials, but the local welfare or law enforcement 77.20 agency shall have the exclusive authority to determine who may 77.21 attend the interview. The conditions as to time, place, and 77.22 manner of the interview set by the school officials shall be 77.23 reasonable and the interview shall be conducted not more than 24 77.24 hours after the receipt of the notification unless another time 77.25 is considered necessary by agreement between the school 77.26 officials and the local welfare or law enforcement agency. 77.27 Where the school fails to comply with the provisions of this 77.28 paragraph, the juvenile court may order the school to comply. 77.29 Every effort must be made to reduce the disruption of the 77.30 educational program of the child, other students, or school 77.31 staff when an interview is conducted on school premises. 77.32 (e) Where the alleged offender or a person responsible for 77.33 the care of the alleged victim or other minor prevents access to 77.34 the victim or other minor by the local welfare agency, the 77.35 juvenile court may order the parents, legal custodian, or 77.36 guardian to produce the alleged victim or other minor for 78.1 questioning by the local welfare agency or the local law 78.2 enforcement agency outside the presence of the alleged offender 78.3 or any person responsible for the child's care at reasonable 78.4 places and times as specified by court order. 78.5 (f) Before making an order under paragraph (e), the court 78.6 shall issue an order to show cause, either upon its own motion 78.7 or upon a verified petition, specifying the basis for the 78.8 requested interviews and fixing the time and place of the 78.9 hearing. The order to show cause shall be served personally and 78.10 shall be heard in the same manner as provided in other cases in 78.11 the juvenile court. The court shall consider the need for 78.12 appointment of a guardian ad litem to protect the best interests 78.13 of the child. If appointed, the guardian ad litem shall be 78.14 present at the hearing on the order to show cause. 78.15 (g) The commissioner of human services, the ombudsman for 78.16 mental health and mental retardation, the local welfare agencies 78.17 responsible for investigating reports, the commissioner of 78.18 education, and the local law enforcement agencies have the right 78.19 to enter facilities as defined in subdivision 2 and to inspect 78.20 and copy the facility's records, including medical records, as 78.21 part of the investigation. Notwithstanding the provisions of 78.22 chapter 13, they also have the right to inform the facility 78.23 under investigation that they are conducting an investigation, 78.24 to disclose to the facility the names of the individuals under 78.25 investigation for abusing or neglecting a child, and to provide 78.26 the facility with a copy of the report and the investigative 78.27 findings. 78.28 (h) The local welfare agency or the agency responsible for 78.29 assessing or investigating the report shall collect available 78.30 and relevant information to ascertain whether maltreatment 78.31 occurred and whether protective services are needed. 78.32 Information collected includes, when relevant, information with 78.33 regard to the person reporting the alleged maltreatment, 78.34 including the nature of the reporter's relationship to the child 78.35 and to the alleged offender, and the basis of the reporter's 78.36 knowledge for the report; the child allegedly being maltreated; 79.1 the alleged offender; the child's caretaker; and other 79.2 collateral sources having relevant information related to the 79.3 alleged maltreatment. The local welfare agency or the agency 79.4 responsible for assessing or investigating the report may make a 79.5 determination of no maltreatment early in an assessment, and 79.6 close the case and retain immunity, if the collected information 79.7 shows no basis for a full assessment or investigation. 79.8 Information relevant to the assessment or investigation 79.9 must be asked for, and may include: 79.10 (1) the child's sex and age, prior reports of maltreatment, 79.11 information relating to developmental functioning, credibility 79.12 of the child's statement, and whether the information provided 79.13 under this clause is consistent with other information collected 79.14 during the course of the assessment or investigation; 79.15 (2) the alleged offender's age, a record check for prior 79.16 reports of maltreatment, and criminal charges and convictions. 79.17 The local welfare agency or the agency responsible for assessing 79.18 or investigating the report must provide the alleged offender 79.19 with an opportunity to make a statement. The alleged offender 79.20 may submit supporting documentation relevant to the assessment 79.21 or investigation; 79.22 (3) collateral source information regarding the alleged 79.23 maltreatment and care of the child. Collateral information 79.24 includes, when relevant: (i) a medical examination of the 79.25 child; (ii) prior medical records relating to the alleged 79.26 maltreatment or the care of the child maintained by any 79.27 facility, clinic, or health care professional and an interview 79.28 with the treating professionals; and (iii) interviews with the 79.29 child's caretakers, including the child's parent, guardian, 79.30 foster parent, child care provider, teachers, counselors, family 79.31 members, relatives, and other persons who may have knowledge 79.32 regarding the alleged maltreatment and the care of the child; 79.33 and 79.34 (4) information on the existence of domestic abuse and 79.35 violence in the home of the child, and substance abuse. 79.36 Nothing in this paragraph precludes the local welfare 80.1 agency, the local law enforcement agency, or the agency 80.2 responsible for assessing or investigating the report from 80.3 collecting other relevant information necessary to conduct the 80.4 assessment or investigation. Notwithstanding section 13.384 or 80.5 144.335, the local welfare agency has access to medical data and 80.6 records for purposes of clause (3). Notwithstanding the data's 80.7 classification in the possession of any other agency, data 80.8 acquired by the local welfare agency or the agency responsible 80.9 for assessing or investigating the report during the course of 80.10 the assessment or investigation are private data on individuals 80.11 and must be maintained in accordance with subdivision 11. Data 80.12 of the commissioner of education collected or maintained during 80.13 and for the purpose of an investigation of alleged maltreatment 80.14 in a school are governed by this section, notwithstanding the 80.15 data's classification as educational, licensing, or personnel 80.16 data under chapter 13. 80.17 In conducting an assessment or investigation involving a 80.18 school facility as defined in subdivision 2, paragraph (f), the 80.19 commissioner of education shall collect investigative reports 80.20 and data that are relevant to a report of maltreatment and are 80.21 from local law enforcement and the school facility. 80.22 (i) In the initial stages of an assessment or 80.23 investigation, the local welfare agency shall conduct a 80.24 face-to-face observation of the child reported to be maltreated 80.25 and a face-to-face interview of the alleged offender. At the 80.26 initial contact, the local child welfare agency or the agency 80.27 responsible for assessing or investigating the report must 80.28 inform the alleged offender of the complaints or allegations 80.29 made against the individual in a manner consistent with laws 80.30 protecting the rights of the person who made the report. The 80.31 interview with the alleged offender may be postponed if it would 80.32 jeopardize an active law enforcement investigation. 80.33 (j) The local welfare agency shall use a question and 80.34 answer interviewing format with questioning as nondirective as 80.35 possible to elicit spontaneous responses. The following 80.36 interviewing methods and procedures must be used whenever 81.1 possible when collecting information: 81.2 (1) audio recordings of all interviews with witnesses and 81.3 collateral sources; and 81.4 (2) in cases of alleged sexual abuse, audio-video 81.5 recordings of each interview with the alleged victim and child 81.6 witnesses. 81.7 (k) In conducting an assessment or investigation involving 81.8 a school facility as defined in subdivision 2, paragraph (f), 81.9 the commissioner of education shall collect available and 81.10 relevant information and use the procedures in paragraphs (h), 81.11 (i), and (j), provided that the commissioner may also base the 81.12 assessment or investigation on investigative reports and data 81.13 received from the school facility and local law enforcement, to 81.14 the extent those investigations satisfy the requirements of 81.15 paragraphs (h), (i), and (j). 81.16 Sec. 79. Minnesota Statutes 2003 Supplement, section 81.17 626.556, subdivision 10i, is amended to read: 81.18 Subd. 10i. [ADMINISTRATIVE RECONSIDERATION OF FINAL 81.19 DETERMINATION OF MALTREATMENT AND DISQUALIFICATION BASED ON 81.20 SERIOUS OR RECURRING MALTREATMENT; REVIEW PANEL.] (a) Except as 81.21 provided under paragraph (e), an individual or facility that the 81.22 commissioner of human services, a local social service agency, 81.23 or the commissioner of education determines has maltreated a 81.24 child, an interested person acting on behalf of the child, 81.25 regardless of the determination, who contests the investigating 81.26 agency's final determination regarding maltreatment, may request 81.27 the investigating agency to reconsider its final determination 81.28 regarding maltreatment. The request for reconsideration must be 81.29 submitted in writing to the investigating agency within 15 81.30 calendar days after receipt of notice of the final determination 81.31 regarding maltreatment or, if the request is made by an 81.32 interested person who is not entitled to notice, within 15 days 81.33 after receipt of the notice by the parent or guardian of the 81.34 child. Effective January 1, 2002, an individual who was 81.35 determined to have maltreated a child under this section and who 81.36 was disqualified on the basis of serious or recurring 82.1 maltreatment under sections 245C.14 and 245C.15, may request 82.2 reconsideration of the maltreatment determination and the 82.3 disqualification. The request for reconsideration of the 82.4 maltreatment determination and the disqualification must be 82.5 submitted within 30 calendar days of the individual's receipt of 82.6 the notice of disqualification under sections 245C.16 and 82.7 245C.17. 82.8 (b) Except as provided under paragraphs (e) and (f), if the 82.9 investigating agency denies the request or fails to act upon the 82.10 request within 15 calendar days after receiving the request for 82.11 reconsideration, the person or facility entitled to a fair 82.12 hearing under section 256.045 may submit to the commissioner of 82.13 human services or the commissioner of education a written 82.14 request for a hearing under that section. Section 256.045 also 82.15 governs hearings requested to contest a final determination of 82.16 the commissioner of education. For reports involving 82.17 maltreatment of a child in a facility, an interested person 82.18 acting on behalf of the child may request a review by the Child 82.19 Maltreatment Review Panel under section 256.022 if the 82.20 investigating agency denies the request or fails to act upon the 82.21 request or if the interested person contests a reconsidered 82.22 determination. The investigating agency shall notify persons 82.23 who request reconsideration of their rights under this 82.24 paragraph. The request must be submitted in writing to the 82.25 review panel and a copy sent to the investigating agency within 82.26 30 calendar days of receipt of notice of a denial of a request 82.27 for reconsideration or of a reconsidered determination. The 82.28 request must specifically identify the aspects of the agency 82.29 determination with which the person is dissatisfied. 82.30 (c) If, as a result of a reconsideration or review, the 82.31 investigating agency changes the final determination of 82.32 maltreatment, that agency shall notify the parties specified in 82.33 subdivisions 10b, 10d, and 10f. 82.34 (d) Except as provided under paragraph (f), if an 82.35 individual or facility contests the investigating agency's final 82.36 determination regarding maltreatment by requesting a fair 83.1 hearing under section 256.045, the commissioner of human 83.2 services shall assure that the hearing is conducted and a 83.3 decision is reached within 90 days of receipt of the request for 83.4 a hearing. The time for action on the decision may be extended 83.5 for as many days as the hearing is postponed or the record is 83.6 held open for the benefit of either party. 83.7 (e) Effective January 1, 2002, if an individual was 83.8 disqualified under sections 245C.14 and 245C.15, on the basis of 83.9 a determination of maltreatment, which was serious or recurring, 83.10 and the individual has requested reconsideration of the 83.11 maltreatment determination under paragraph (a) and requested 83.12 reconsideration of the disqualification under sections 245C.21 83.13 to 245C.27, reconsideration of the maltreatment determination 83.14 and reconsideration of the disqualification shall be 83.15 consolidated into a single reconsideration. If reconsideration 83.16 of the maltreatment determination is denied or the 83.17 disqualification is not set aside or rescindedunder sections 83.18 245C.21 to 245C.27, the individual may request a fair hearing 83.19 under section 256.045. If an individual requests a fair hearing 83.20 on the maltreatment determination and the disqualification, the 83.21 scope of the fair hearing shall include both the maltreatment 83.22 determination and the disqualification. 83.23 (f) Effective January 1, 2002, if a maltreatment 83.24 determination or a disqualification based on serious or 83.25 recurring maltreatment is the basis for a denial of a license 83.26 under section 245A.05 or a licensing sanction under section 83.27 245A.07, the license holder has the right to a contested case 83.28 hearing under chapter 14 and Minnesota Rules, parts 1400.851083.29 1400.8505 to 1400.8612 and successor rules. As provided for 83.30 under section 245A.08, subdivision 2a, the scope of the 83.31 contested case hearing shall include the maltreatment 83.32 determination, disqualification, and licensing sanction or 83.33 denial of a license. In such cases, a fair hearing regarding 83.34 the maltreatment determination shall not be conducted under 83.35 paragraph (b). If the disqualified subject is an individual 83.36 other than the license holder and upon whom a background study 84.1 must be conducted under chapter 245C, the hearings of all 84.2 parties may be consolidated into a single contested case hearing 84.3 upon consent of all parties and the administrative law judge. 84.4 (g) For purposes of this subdivision, "interested person 84.5 acting on behalf of the child" means a parent or legal guardian; 84.6 stepparent; grandparent; guardian ad litem; adult stepbrother, 84.7 stepsister, or sibling; or adult aunt or uncle; unless the 84.8 person has been determined to be the perpetrator of the 84.9 maltreatment. 84.10 [EFFECTIVE DATE.]This section is effective the day 84.11 following final enactment. 84.12 Sec. 80. Minnesota Statutes 2003 Supplement, section 84.13 626.557, subdivision 9d, is amended to read: 84.14 Subd. 9d. [ADMINISTRATIVE RECONSIDERATION OF FINAL 84.15 DISPOSITION OF MALTREATMENT AND DISQUALIFICATION BASED ON 84.16 SERIOUS OR RECURRING MALTREATMENT; REVIEW PANEL.] (a) Except as 84.17 provided under paragraph (e), any individual or facility which a 84.18 lead agency determines has maltreated a vulnerable adult, or the 84.19 vulnerable adult or an interested person acting on behalf of the 84.20 vulnerable adult, regardless of the lead agency's determination, 84.21 who contests the lead agency's final disposition of an 84.22 allegation of maltreatment, may request the lead agency to 84.23 reconsider its final disposition. The request for 84.24 reconsideration must be submitted in writing to the lead agency 84.25 within 15 calendar days after receipt of notice of final 84.26 disposition or, if the request is made by an interested person 84.27 who is not entitled to notice, within 15 days after receipt of 84.28 the notice by the vulnerable adult or the vulnerable adult's 84.29 legal guardian. An individual who was determined to have 84.30 maltreated a vulnerable adult under this section and who was 84.31 disqualified on the basis of serious or recurring maltreatment 84.32 under sections 245C.14 and 245C.15, may request reconsideration 84.33 of the maltreatment determination and the disqualification. The 84.34 request for reconsideration of the maltreatment determination 84.35 and the disqualification must be submitted within 30 calendar 84.36 days of the individual's receipt of the notice of 85.1 disqualification under sections 245C.16 and 245C.17. 85.2 (b) Except as provided under paragraphs (e) and (f), if the 85.3 lead agency denies the request or fails to act upon the request 85.4 within 15 calendar days after receiving the request for 85.5 reconsideration, the person or facility entitled to a fair 85.6 hearing under section 256.045, may submit to the commissioner of 85.7 human services a written request for a hearing under that 85.8 statute. The vulnerable adult, or an interested person acting 85.9 on behalf of the vulnerable adult, may request a review by the 85.10 Vulnerable Adult Maltreatment Review Panel under section 256.021 85.11 if the lead agency denies the request or fails to act upon the 85.12 request, or if the vulnerable adult or interested person 85.13 contests a reconsidered disposition. The lead agency shall 85.14 notify persons who request reconsideration of their rights under 85.15 this paragraph. The request must be submitted in writing to the 85.16 review panel and a copy sent to the lead agency within 30 85.17 calendar days of receipt of notice of a denial of a request for 85.18 reconsideration or of a reconsidered disposition. The request 85.19 must specifically identify the aspects of the agency 85.20 determination with which the person is dissatisfied. 85.21 (c) If, as a result of a reconsideration or review, the 85.22 lead agency changes the final disposition, it shall notify the 85.23 parties specified in subdivision 9c, paragraph (d). 85.24 (d) For purposes of this subdivision, "interested person 85.25 acting on behalf of the vulnerable adult" means a person 85.26 designated in writing by the vulnerable adult to act on behalf 85.27 of the vulnerable adult, or a legal guardian or conservator or 85.28 other legal representative, a proxy or health care agent 85.29 appointed under chapter 145B or 145C, or an individual who is 85.30 related to the vulnerable adult, as defined in section 245A.02, 85.31 subdivision 13. 85.32 (e) If an individual was disqualified under sections 85.33 245C.14 and 245C.15, on the basis of a determination of 85.34 maltreatment, which was serious or recurring, and the individual 85.35 has requested reconsideration of the maltreatment determination 85.36 under paragraph (a) and reconsideration of the disqualification 86.1 under sections 245C.21 to 245C.27, reconsideration of the 86.2 maltreatment determination and requested reconsideration of the 86.3 disqualification shall be consolidated into a single 86.4 reconsideration. If reconsideration of the maltreatment 86.5 determination is denied or if the disqualification is not set 86.6 aside or rescindedunder sections 245C.21 to 245C.27, the 86.7 individual may request a fair hearing under section 256.045. If 86.8 an individual requests a fair hearing on the maltreatment 86.9 determination and the disqualification, the scope of the fair 86.10 hearing shall include both the maltreatment determination and 86.11 the disqualification. 86.12 (f) If a maltreatment determination or a disqualification 86.13 based on serious or recurring maltreatment is the basis for a 86.14 denial of a license under section 245A.05 or a licensing 86.15 sanction under section 245A.07, the license holder has the right 86.16 to a contested case hearing under chapter 14 and Minnesota 86.17 Rules, parts 1400.85101400.8505 to 1400.8612 and successor86.18 rules. As provided for under section 245A.08, the scope of the 86.19 contested case hearing shall include the maltreatment 86.20 determination, disqualification, and licensing sanction or 86.21 denial of a license. In such cases, a fair hearing shall not be 86.22 conducted under paragraph (b). If the disqualified subject is 86.23 an individual other than the license holder and upon whom a 86.24 background study must be conducted under chapter 245C, the 86.25 hearings of all parties may be consolidated into a single 86.26 contested case hearing upon consent of all parties and the 86.27 administrative law judge. 86.28 (g) Until August 1, 2002, an individual or facility that 86.29 was determined by the commissioner of human services or the 86.30 commissioner of health to be responsible for neglect under 86.31 section 626.5572, subdivision 17, after October 1, 1995, and 86.32 before August 1, 2001, that believes that the finding of neglect 86.33 does not meet an amended definition of neglect may request a 86.34 reconsideration of the determination of neglect. The 86.35 commissioner of human services or the commissioner of health 86.36 shall mail a notice to the last known address of individuals who 87.1 are eligible to seek this reconsideration. The request for 87.2 reconsideration must state how the established findings no 87.3 longer meet the elements of the definition of neglect. The 87.4 commissioner shall review the request for reconsideration and 87.5 make a determination within 15 calendar days. The 87.6 commissioner's decision on this reconsideration is the final 87.7 agency action. 87.8 (1) For purposes of compliance with the data destruction 87.9 schedule under subdivision 12b, paragraph (d), when a finding of 87.10 substantiated maltreatment has been changed as a result of a 87.11 reconsideration under this paragraph, the date of the original 87.12 finding of a substantiated maltreatment must be used to 87.13 calculate the destruction date. 87.14 (2) For purposes of any background studies under chapter 87.15 245C, when a determination of substantiated maltreatment has 87.16 been changed as a result of a reconsideration under this 87.17 paragraph, any prior disqualification of the individual under 87.18 chapter 245C that was based on this determination of 87.19 maltreatment shall be rescinded, and for future background 87.20 studies under chapter 245C the commissioner must not use the 87.21 previous determination of substantiated maltreatment as a basis 87.22 for disqualification or as a basis for referring the 87.23 individual's maltreatment history to a health-related licensing 87.24 board under section 245C.31. 87.25 [EFFECTIVE DATE.]This section is effective the day 87.26 following final enactment. 87.27 Sec. 81. [DIRECTION TO COMMISSIONER; REPORT.] 87.28 The commissioner of human services shall report on the 87.29 number of adult foster care licenses, family adult day services 87.30 licenses, combined adult foster care and family adult day 87.31 services, and adult day services center licenses and their 87.32 capacities with changes in the number of licenses and capacities 87.33 from August 1, 2004, to August 1, 2006. The commissioner shall 87.34 provide this report to the chairs of the senate and house 87.35 committees with jurisdiction over health and human services 87.36 policy by September 15, 2006. 88.1 Sec. 82. [REVISOR'S INSTRUCTION.] 88.2 The revisor of statutes shall insert the phrase "or adult 88.3 day services" after the phrase "adult day care," and the phrase 88.4 "or adult day services center" after "adult day care center," 88.5 wherever it appears in Minnesota Rules, parts 9555.9600 to 88.6 9555.9730, or the headnotes to the rule parts. 88.7 Sec. 83. [REPEALER.] 88.8 Minnesota Statutes 2003 Supplement, section 245C.02, 88.9 subdivision 17; and Minnesota Rules, parts 9525.1600; 9543.0040, 88.10 subpart 3; 9543.1000; 9543.1010; 9543.1020; 9543.1030; 88.11 9543.1040; 9543.1050; and 9543.1060, are repealed. 88.12 ARTICLE 2 88.13 CORRECTIONS 88.14 Section 1. Minnesota Statutes 2003 Supplement, section 88.15 241.021, subdivision 6, is amended to read: 88.16 Subd. 6. [BACKGROUND STUDIES.] (a) The commissioner of 88.17 corrections is authorized to do background studies on personnel 88.18 employed by any facility serving children or youth that is 88.19 licensed under this section. The commissioner of corrections 88.20 shall contract with the commissioner of human services to 88.21 conduct background studies of individuals providing services in 88.22 secure and nonsecure residential facilities and detention 88.23 facilities who have direct contact, as defined under section 88.24 245C.02, subdivision 11, with persons served in the facilities. 88.25 A disqualification of an individual in this section shall 88.26 disqualify the individual from positions allowing direct contact88.27 or access to persons and residents receiving services in88.28 programs licensed by the Departments of Health and Human88.29 Servicesas provided in chapter 245C. 88.30 (b) A clerk or administrator of any court, the Bureau of 88.31 Criminal Apprehension, a prosecuting attorney, a county sheriff, 88.32 or a chief of a local police department, shall assist in these 88.33 studies by providing to the commissioner of human services, or 88.34 the commissioner's representative, all criminal conviction data 88.35 available from local, state, and national criminal history 88.36 record repositories, including the criminal justice data 89.1 communications network, pertaining to the following individuals: 89.2 applicants, operators, all persons living in the household, and 89.3 all staff of any facility subject to background studies under 89.4 this subdivision. 89.5 (c) The Department of Human Services shall conduct the 89.6 background studies required by paragraph (a) in compliance with 89.7 the provisions of chapter 245C. For the purpose of this 89.8 subdivision, the term "secure and nonsecure residential facility 89.9 and detention facility" shall include programs licensed or 89.10 certified under subdivision 2. The Department of Human Services 89.11 shall provide necessary forms and instructions, shall conduct 89.12 the necessary background studies of individuals, and shall 89.13 provide notification of the results of the studies to the 89.14 facilities, individuals, and the commissioner of corrections. 89.15 Individuals shall be disqualified under the provisions of 89.16 chapter 245C. 89.17 If an individual is disqualified, the Department of Human 89.18 Services shall notify the facility and the individual and shall 89.19 inform the individual of the right to request a reconsideration 89.20 of the disqualification by submitting the request to the 89.21 Department of Corrections. 89.22 (d) The commissioner of corrections shall review and decide 89.23 reconsideration requests, including the granting of variances, 89.24 in accordance with the procedures and criteria contained in 89.25 chapter 245C. The commissioner's decision shall be provided to 89.26 the individual and to the Department of Human Services. The 89.27 commissioner's decision to grant or deny a reconsideration of 89.28 disqualification is the final administrative agency action. 89.29 (e) Facilities described in paragraph (a) shall be 89.30 responsible for cooperating with the departments in implementing 89.31 the provisions of this subdivision. The responsibilities 89.32 imposed on applicants and licensees under chapters 245A and 245C 89.33 shall apply to these facilities. The provisions of sections89.34 245C.03, subdivision 3, 245C.04, subdivision 4, paragraph (b),89.35 and 245C.10, subdivision 2, shall apply to applicants,89.36 licensees, and individuals.90.1 ARTICLE 3 90.2 MISCELLANEOUS 90.3 Section 1. Minnesota Statutes 2002, section 13.43, 90.4 subdivision 2, is amended to read: 90.5 Subd. 2. [PUBLIC DATA.] (a) Except for employees described 90.6 in subdivision 5 and the limitations described in subdivision 90.7 5a, the following personnel data on current and former 90.8 employees, volunteers, and independent contractors of a state 90.9 agency, statewide system, or political subdivision and members 90.10 of advisory boards or commissions is public: 90.11 (1) name; employee identification number, which must not be 90.12 the employee's Social Security number; actual gross salary; 90.13 salary range; contract fees; actual gross pension; the value and 90.14 nature of employer paid fringe benefits; and the basis for and 90.15 the amount of any added remuneration, including expense 90.16 reimbursement, in addition to salary; 90.17 (2) job title and bargaining unit; job description; 90.18 education and training background; and previous work experience; 90.19 (3) date of first and last employment; 90.20 (4) the existence and status of any complaints or charges 90.21 against the employee, regardless of whether the complaint or 90.22 charge resulted in a disciplinary action; 90.23 (5) the final disposition of any disciplinary action 90.24 together with the specific reasons for the action and data 90.25 documenting the basis of the action, excluding data that would 90.26 identify confidential sources who are employees of the public 90.27 body; 90.28 (6) the terms of any agreement settling any dispute arising 90.29 out of an employment relationship, including a buyout agreement 90.30 as defined in section 123B.143, subdivision 2, paragraph (a); 90.31 except that the agreement must include specific reasons for the 90.32 agreement if it involves the payment of more than $10,000 of 90.33 public money; 90.34 (7) work location; a work telephone number; badge number; 90.35 and honors and awards received; and 90.36 (8) payroll time sheets or other comparable data that are 91.1 only used to account for employee's work time for payroll 91.2 purposes, except to the extent that release of time sheet data 91.3 would reveal the employee's reasons for the use of sick or other 91.4 medical leave or other not public data ; and city and county of91.5 residence. 91.6 (b) For purposes of this subdivision, a final disposition 91.7 occurs when the state agency, statewide system, or political 91.8 subdivision makes its final decision about the disciplinary 91.9 action, regardless of the possibility of any later proceedings 91.10 or court proceedings. In the case of arbitration proceedings 91.11 arising under collective bargaining agreements, a final 91.12 disposition occurs at the conclusion of the arbitration 91.13 proceedings, or upon the failure of the employee to elect 91.14 arbitration within the time provided by the collective 91.15 bargaining agreement. Final disposition includes a resignation 91.16 by an individual when the resignation occurs after the final 91.17 decision of the state agency, statewide system, political 91.18 subdivision, or arbitrator. 91.19 (c) The state agency, statewide system, or political 91.20 subdivision may display a photograph of a current or former 91.21 employee to a prospective witness as part of the state agency's, 91.22 statewide system's, or political subdivision's investigation of 91.23 any complaint or charge against the employee. 91.24 (d) A complainant has access to a statement provided by the 91.25 complainant to a state agency, statewide system, or political 91.26 subdivision in connection with a complaint or charge against an 91.27 employee. 91.28 (e) Notwithstanding paragraph (a), clause (5), upon 91.29 completion of an investigation of a complaint or charge against 91.30 a public official, or if a public official resigns or is 91.31 terminated from employment while the complaint or charge is 91.32 pending, all data relating to the complaint or charge are 91.33 public, unless access to the data would jeopardize an active 91.34 investigation or reveal confidential sources. For purposes of 91.35 this paragraph, "public official" means: 91.36 (1) the head of a state agency and deputy and assistant 92.1 state agency heads; 92.2 (2) members of boards or commissions required by law to be 92.3 appointed by the governor or other elective officers; and 92.4 (3) executive or administrative heads of departments, 92.5 bureaus, divisions, or institutions. 92.6 Sec. 2. Minnesota Statutes 2002, section 13.43, is amended 92.7 by adding a subdivision to read: 92.8 Subd. 5a. [LIMITATION ON DISCLOSURE OF CERTAIN PERSONNEL 92.9 DATA.] Notwithstanding any other provision of this section, the 92.10 following data relating to employees of a secure treatment 92.11 facility defined in section 253B.02, subdivision 18a, employees 92.12 of a state correctional facility, or employees of the Department 92.13 of Corrections directly involved in supervision of offenders in 92.14 the community, shall not be disclosed to facility patients, 92.15 corrections inmates, or other individuals whom facility or 92.16 correction administrators reasonably believe will use the 92.17 information to harass, intimidate, or assault any such 92.18 employees: place where previous education or training occurred; 92.19 place of prior employment; and payroll timesheets or other 92.20 comparable data, to the extent that payroll timesheets or other 92.21 comparable data may disclose: future work assignments, home 92.22 address or telephone number, the location of employees during 92.23 nonwork hours, or the location of employees' immediate family 92.24 members. 92.25 Sec. 3. Minnesota Statutes 2002, section 62A.042, is 92.26 amended to read: 92.27 62A.042 [FAMILY COVERAGE; COVERAGE OF NEWBORN INFANTS.] 92.28 Subdivision 1. [INDIVIDUAL FAMILY POLICIES.] (a) No policy 92.29 of individual accident and sickness insurance which provides for 92.30 insurance for more than one person under section 62A.03, 92.31 subdivision 1, clause (3), and no individual health maintenance 92.32 contract which provides for coverage for more than one person 92.33 under chapter 62D, shall be renewed to insure or cover any 92.34 person in this state or be delivered or issued for delivery to 92.35 any person in this state unless the policy or contract includes 92.36 as insured or covered members of the family any newborn infants 93.1 immediately from the moment of birth and thereafter which 93.2 insurance or contract shall provide coverage for illness, 93.3 injury, congenital malformation, or premature birth. For 93.4 purposes of this paragraph, "newborn infants" includes 93.5 grandchildren who are financially dependent upon a covered 93.6 grandparent and who reside with that covered grandparent 93.7 continuously from birth. No policy or contract covered by this 93.8 section may require notification to a health carrier as a 93.9 condition for this dependent coverage. However, if the policy 93.10 or contract mandates an additional premium for each dependent, 93.11 the health carrier shall be entitled to all premiums that would 93.12 have been collected had the health carrier been aware of the 93.13 additional dependent. The health carrier may withhold payment 93.14 of any health benefits for the new dependent until it has been 93.15 compensated with the applicable premium which would have been 93.16 owed if the health carrier had been informed of the additional 93.17 dependent immediately. 93.18 (b) The coverage under paragraph (a) includes benefits for 93.19 inpatient or outpatient expenses arising from medical and dental 93.20 treatment up to age 18the limiting age for coverage of the 93.21 dependent, including orthodontic and oral surgery treatment, 93.22 involved in the management of birth defects known as cleft lip 93.23 and cleft palate. Benefits for individuals age 19 up to the 93.24 limiting age for coverage of the dependent are limited to 93.25 inpatient or outpatient expenses arising from medical and dental 93.26 treatment that was scheduled or initiated prior to the dependent 93.27 turning age 19. If orthodontic services are eligible for 93.28 coverage under a dental insurance plan and another policy or 93.29 contract, the dental plan shall be primary and the other policy 93.30 or contract shall be secondary in regard to the coverage 93.31 required under paragraph (a). Payment for dental or orthodontic 93.32 treatment not related to the management of the congenital 93.33 condition of cleft lip and cleft palate shall not be covered 93.34 under this provision. 93.35 Subd. 2. [GROUP POLICIES.] (a) No group accident and 93.36 sickness insurance policy and no group health maintenance 94.1 contract which provide for coverage of family members or other 94.2 dependents of an employee or other member of the covered group 94.3 shall be renewed to cover members of a group located in this 94.4 state or delivered or issued for delivery to any person in this 94.5 state unless the policy or contract includes as insured or 94.6 covered family members or dependents any newborn infants 94.7 immediately from the moment of birth and thereafter which 94.8 insurance or contract shall provide coverage for illness, 94.9 injury, congenital malformation, or premature birth. For 94.10 purposes of this paragraph, "newborn infants" includes 94.11 grandchildren who are financially dependent upon a covered 94.12 grandparent and who reside with that covered grandparent 94.13 continuously from birth. No policy or contract covered by this 94.14 section may require notification to a health carrier as a 94.15 condition for this dependent coverage. However, if the policy 94.16 or contract mandates an additional premium for each dependent, 94.17 the health carrier shall be entitled to all premiums that would 94.18 have been collected had the health carrier been aware of the 94.19 additional dependent. The health carrier may reduce the health 94.20 benefits owed to the insured, certificate holder, member, or 94.21 subscriber by the amount of past due premiums applicable to the 94.22 additional dependent. 94.23 (b) The coverage under paragraph (a) includes benefits for 94.24 inpatient or outpatient expenses arising from medical and dental 94.25 treatment up to age 18the limiting age for coverage of the 94.26 dependent, including orthodontic and oral surgery treatment, 94.27 involved in the management of birth defects known as cleft lip 94.28 and cleft palate. Benefits for individuals age 19 up to the 94.29 limiting age for coverage of the dependent are limited to 94.30 inpatient or outpatient expenses arising from medical and dental 94.31 treatment that was scheduled or initiated prior to the dependent 94.32 turning age 19. If orthodontic services are eligible for 94.33 coverage under a dental insurance plan and another policy or 94.34 contract, the dental plan shall be primary and the other policy 94.35 or contract shall be secondary in regard to the coverage 94.36 required under paragraph (a). Payment for dental or orthodontic 95.1 treatment not related to the management of the congenital 95.2 condition of cleft lip and cleft palate shall not be covered 95.3 under this provision. 95.4 [EFFECTIVE DATE.]This section is effective January 1, 95.5 2005, and applies to coverage issued or renewed on or after that 95.6 date. 95.7 Sec. 4. Minnesota Statutes 2002, section 62C.14, 95.8 subdivision 14, is amended to read: 95.9 Subd. 14. [NEWBORN INFANT COVERAGE.] No subscriber's 95.10 individual contract or any group contract which provides for 95.11 coverage of family members or other dependents of a subscriber 95.12 or of an employee or other group member of a group subscriber, 95.13 shall be renewed, delivered, or issued for delivery in this 95.14 state unless such contract includes as covered family members or 95.15 dependents any newborn infants immediately from the moment of 95.16 birth and thereafter which insurance shall provide coverage for 95.17 illness, injury, congenital malformation or premature 95.18 birth. The coverage described in this subdivision includes 95.19 coverage of cleft lip and cleft palate to the same extent 95.20 provided in section 62A.042, subdivisions 1, paragraph (b); and 95.21 2, paragraph (b). For purposes of this paragraph, "newborn 95.22 infants" includes grandchildren who are financially dependent 95.23 upon a covered grandparent and who reside with that covered 95.24 grandparent continuously from birth. No policy, contract, or 95.25 agreement covered by this section may require notification to a 95.26 health carrier as a condition for this dependent coverage. 95.27 However, if the policy, contract, or agreement mandates an 95.28 additional premium for each dependent, the health carrier shall 95.29 be entitled to all premiums that would have been collected had 95.30 the health carrier been aware of the additional dependent. The 95.31 health carrier may withhold payment of any health benefits for 95.32 the new dependent until it has been compensated with the 95.33 applicable premium which would have been owed if the health 95.34 carrier had been informed of the additional dependent 95.35 immediately. 95.36 [EFFECTIVE DATE.]This section is effective January 1, 96.1 2005, and applies to coverage issued or renewed on or after that 96.2 date. 96.3 Sec. 5. [151.214] [PAYMENT DISCLOSURE.] 96.4 Subdivision 1. [EXPLANATION OF PHARMACY BENEFITS.] A 96.5 pharmacist licensed under this chapter must provide to a 96.6 purchaser, for each prescription dispensed where part or all of 96.7 the cost of the prescription is being paid or reimbursed by an 96.8 employer-sponsored plan or health plan company, or its 96.9 contracted pharmacy benefit manager, the purchaser's co-payment 96.10 amount and the usual and customary price of the prescription or 96.11 the amount the pharmacy will be paid for the prescription drug 96.12 by the purchaser's employer-sponsored plan or health plan 96.13 company, or its contracted pharmacy benefit manager. 96.14 Subd. 2. [NO PROHIBITION ON DISCLOSURE.] No contracting 96.15 agreement between an employer-sponsored health plan or health 96.16 plan company, or its contracted pharmacy benefit manager, and a 96.17 resident or nonresident pharmacy registered under this chapter, 96.18 may prohibit the pharmacy from disclosing to patients 96.19 information a pharmacy is required or given the option to 96.20 provide under subdivision 1. 96.21 Sec. 6. Minnesota Statutes 2002, section 243.55, 96.22 subdivision 1, is amended to read: 96.23 Subdivision 1. Any person who brings, sends, or in any 96.24 manner causes to be introduced into any state correctional 96.25 facility or state hospital, or within or upon the grounds 96.26 belonging to or land or controlled by any such facility or 96.27 hospital, or is found in possession of any controlled substance 96.28 as defined in section 152.01, subdivision 4, or any firearms, 96.29 weapons or explosives of any kind, without the consent of the 96.30 chief executive officer thereof, shall be guilty of a felony 96.31 and, upon conviction thereof, punished by imprisonment for a 96.32 term of not more than ten years. Any person who brings, sends, 96.33 or in any manner causes to be introduced into any state 96.34 correctional facility or within or upon the grounds belonging to 96.35 or land controlled by the facility, or is found in the 96.36 possession of any intoxicating or alcoholic liquor or malt 97.1 beverage of any kind without the consent of the chief executive 97.2 officer thereof, shall be guilty of a gross misdemeanor. The 97.3 provisions of this section shall not apply to physicians 97.4 carrying drugs or introducing any of the above described liquors 97.5 into such facilities for use in the practice of their 97.6 profession; nor to sheriffs or other peace officers carrying 97.7 revolvers or firearms as such officers in the discharge of 97.8 duties. 97.9 [EFFECTIVE DATE.]This section is effective August 1, 2004, 97.10 and applies to crimes committed on or after that date. 97.11 Sec. 7. Minnesota Statutes 2002, section 245.462, 97.12 subdivision 18, is amended to read: 97.13 Subd. 18. [MENTAL HEALTH PROFESSIONAL.] "Mental health 97.14 professional" means a person providing clinical services in the 97.15 treatment of mental illness who is qualified in at least one of 97.16 the following ways: 97.17 (1) in psychiatric nursing: a registered nurse who is 97.18 licensed under sections 148.171 to 148.285 ,; and: 97.19 (i) who is certified as a clinical specialist or as a nurse 97.20 practitioner in adult or family psychiatric and mental health 97.21 nursing by a national nurse certification organization; or 97.22 (ii) who has a master's degree in nursing or one of the 97.23 behavioral sciences or related fields from an accredited college 97.24 or university or its equivalent, with at least 4,000 hours of 97.25 post-master's supervised experience in the delivery of clinical 97.26 services in the treatment of mental illness; 97.27 (2) in clinical social work: a person licensed as an 97.28 independent clinical social worker under section 148B.21, 97.29 subdivision 6, or a person with a master's degree in social work 97.30 from an accredited college or university, with at least 4,000 97.31 hours of post-master's supervised experience in the delivery of 97.32 clinical services in the treatment of mental illness; 97.33 (3) in psychology: an individual licensed by the board of 97.34 psychology under sections 148.88 to 148.98 who has stated to the 97.35 board of psychology competencies in the diagnosis and treatment 97.36 of mental illness; 98.1 (4) in psychiatry: a physician licensed under chapter 147 98.2 and certified by the American Board of Psychiatry and Neurology 98.3 or eligible for board certification in psychiatry; 98.4 (5) in marriage and family therapy: the mental health 98.5 professional must be a marriage and family therapist licensed 98.6 under sections 148B.29 to 148B.39 with at least two years of 98.7 post-master's supervised experience in the delivery of clinical 98.8 services in the treatment of mental illness; or 98.9 (6) in allied fields: a person with a master's degree from 98.10 an accredited college or university in one of the behavioral 98.11 sciences or related fields, with at least 4,000 hours of 98.12 post-master's supervised experience in the delivery of clinical 98.13 services in the treatment of mental illness. 98.14 Sec. 8. Minnesota Statutes 2002, section 245.464, is 98.15 amended by adding a subdivision to read: 98.16 Subd. 3. [PUBLIC-PRIVATE PARTNERSHIPS.] The commissioner 98.17 may establish a mechanism by which counties, the Department of 98.18 Human Services, hospitals, health plans, consumers, providers, 98.19 and others may enter into agreements that allow for capacity 98.20 building and oversight of any agreed-upon entity that is 98.21 developed through these partnerships. The purpose of these 98.22 partnerships is the development and provision of mental health 98.23 services which would be more effective, efficient, and 98.24 accessible than services that might be provided separately by 98.25 each partner. 98.26 Sec. 9. Minnesota Statutes 2003 Supplement, section 98.27 245.4874, is amended to read: 98.28 245.4874 [DUTIES OF COUNTY BOARD.] 98.29 The county board in each county shall use its share of 98.30 mental health and Community Social Services Act funds allocated 98.31 by the commissioner according to a biennial children's mental 98.32 health component of the community social services plan that is 98.33 approved by the commissioner. The county board must: 98.34 (1) develop a system of affordable and locally available 98.35 children's mental health services according to sections 245.487 98.36 to 245.4887; 99.1 (2) establish a mechanism providing for interagency 99.2 coordination as specified in section 245.4875, subdivision 6; 99.3 (3) develop a biennial children's mental health component 99.4 of the community social services plan which considers the 99.5 assessment of unmet needs in the county as reported by the local 99.6 children's mental health advisory council under section 99.7 245.4875, subdivision 5, paragraph (b), clause (3). The county 99.8 shall provide, upon request of the local children's mental 99.9 health advisory council, readily available data to assist in the 99.10 determination of unmet needs; 99.11 (4) assure that parents and providers in the county receive 99.12 information about how to gain access to services provided 99.13 according to sections 245.487 to 245.4887; 99.14 (5) coordinate the delivery of children's mental health 99.15 services with services provided by social services, education, 99.16 corrections, health, and vocational agencies to improve the 99.17 availability of mental health services to children and the 99.18 cost-effectiveness of their delivery; 99.19 (6) assure that mental health services delivered according 99.20 to sections 245.487 to 245.4887 are delivered expeditiously and 99.21 are appropriate to the child's diagnostic assessment and 99.22 individual treatment plan; 99.23 (7) provide the community with information about predictors 99.24 and symptoms of emotional disturbances and how to access 99.25 children's mental health services according to sections 245.4877 99.26 and 245.4878; 99.27 (8) provide for case management services to each child with 99.28 severe emotional disturbance according to sections 245.486; 99.29 245.4871, subdivisions 3 and 4; and 245.4881, subdivisions 1, 3, 99.30 and 5; 99.31 (9) provide for screening of each child under section 99.32 245.4885 upon admission to a residential treatment facility, 99.33 acute care hospital inpatient treatment, or informal admission 99.34 to a regional treatment center; 99.35 (10) prudently administer grants and purchase-of-service 99.36 contracts that the county board determines are necessary to 100.1 fulfill its responsibilities under sections 245.487 to 245.4887; 100.2 (11) assure that mental health professionals, mental health 100.3 practitioners, and case managers employed by or under contract 100.4 to the county to provide mental health services are qualified 100.5 under section 245.4871; 100.6 (12) assure that children's mental health services are 100.7 coordinated with adult mental health services specified in 100.8 sections 245.461 to 245.486 so that a continuum of mental health 100.9 services is available to serve persons with mental illness, 100.10 regardless of the person's age; 100.11 (13) assure that culturally informed mental health 100.12 consultants are used as necessary to assist the county board in 100.13 assessing and providing appropriate treatment for children of 100.14 cultural or racial minority heritage; and 100.15 (14) consistent with section 245.486, arrange for or 100.16 provide a children's mental health screening to a child 100.17 receiving child protective services or a child in out-of-home 100.18 placement, a child for whom parental rights have been 100.19 terminated, a child found to be delinquent, and a child found to 100.20 have committed a juvenile petty offense for the third or 100.21 subsequent time, unless a screening has been performed within 100.22 the previous 180 days, or the child is currently under the care 100.23 of a mental health professional. The court or county agency 100.24 must notify a parent or guardian whose parental rights have not 100.25 been terminated of the potential mental health screening and the 100.26 option to prevent the screening by notifying the court or county 100.27 agency in writing. The screening shall be conducted with a 100.28 screening instrument approved by the commissioner of human 100.29 services according to criteria that are updated and issued 100.30 annually to ensure that approved screening instruments are valid 100.31 and useful for child welfare and juvenile justice populations, 100.32 and shall be conducted by a mental health practitioner as 100.33 defined in section 245.4871, subdivision 26, or a probation 100.34 officer or local social services agency staff person who is 100.35 trained in the use of the screening instrument. Training in the 100.36 use of the instrument shall include training in the 101.1 administration of the instrument, the interpretation of its 101.2 validity given the child's current circumstances, the state and 101.3 federal data practices laws and confidentiality standards, the 101.4 parental consent requirement, and providing respect for families 101.5 and cultural values. If the screen indicates a need for 101.6 assessment, the child's family, or if the family lacks mental 101.7 health insurance, the local social services agency, in 101.8 consultation with the child's family, shall have conducted a 101.9 diagnostic assessment, including a functional assessment, as 101.10 defined in section 245.4871. The administration of the 101.11 screening shall safeguard the privacy of children receiving the 101.12 screening and their families and shall comply with the Minnesota 101.13 Government Data Practices Act, chapter 13, and the federal 101.14 Health Insurance Portability and Accountability Act of 1996, 101.15 Public Law 104-191. Screening results shall be considered 101.16 private data and the commissioner shall not collect individual 101.17 screening results. 101.18 Sec. 10. Minnesota Statutes 2002, section 245.4881, 101.19 subdivision 1, is amended to read: 101.20 Subdivision 1. [AVAILABILITY OF CASE MANAGEMENT SERVICES.] 101.21 (a) By April 1, 1992,The county board shall provide case 101.22 management services for each child with severe emotional 101.23 disturbance who is a resident of the county and the child's 101.24 family who request or consent to the services. Case management 101.25 services may be continued to be provided for a child with a 101.26 serious emotional disturbance who is over the age of 18 101.27 consistent with section 245.4875, subdivision 8. Staffing 101.28 ratios must be sufficient to serve the needs of the clients. 101.29 The case manager must meet the requirements in section 245.4871, 101.30 subdivision 4. 101.31 (b) Except as permitted by law and the commissioner under 101.32 demonstration projects, case management services provided to 101.33 children with severe emotional disturbance eligible for medical 101.34 assistance must be billed to the medical assistance program 101.35 under sections 256B.02, subdivision 8, and 256B.0625. 101.36 (c) Case management services are eligible for reimbursement 102.1 under the medical assistance program. Costs of mentoring, 102.2 supervision, and continuing education may be included in the 102.3 reimbursement rate methodology used for case management services 102.4 under the medical assistance program. 102.5 [EFFECTIVE DATE.]This section is effective July 1, 2004. 102.6 Sec. 11. Minnesota Statutes 2003 Supplement, section 102.7 246.15, is amended by adding a subdivision to read: 102.8 Subd. 3. [SAVINGS ACCOUNT.] The commissioner of human 102.9 services shall create a savings account for each patient 102.10 receiving treatment in a secure treatment facility as defined by 102.11 section 253B.02, subdivision 18a. The source of money to be 102.12 deposited in this account shall come from a portion of the 102.13 patient's share of the cost of care. The money in this savings 102.14 account shall be made available to the patient when the patient 102.15 is ready to be transitioned into the community. The money in 102.16 the account shall be used for expenses associated with obtaining 102.17 housing and other personal needs necessary for the patient's 102.18 smooth transition into the community. The savings account shall 102.19 be called "forensic patient transition savings account." 102.20 Sec. 12. [246B.05] [MINNESOTA SEX OFFENDER PROGRAM; 102.21 PRODUCTIVE DAY PROGRAM.] 102.22 Subdivision 1. [EMPLOYMENT OPTION.] The commissioner of 102.23 human services, in consultation with the commissioner of 102.24 corrections, shall develop an employment option for persons 102.25 committed to a sexual psychopathic personality treatment center 102.26 in order for patients to contribute to their cost of care. The 102.27 employment may include work maintaining the center or work that 102.28 is brought to the center by an outside source. The earnings 102.29 generated must be deposited into the account created in 102.30 subdivision 2 and divided between the participating patient and 102.31 the center, in an effort to reduce state costs. 102.32 Subd. 2. [MINNESOTA SEX OFFENDER PROGRAM; PRODUCTIVE DAY 102.33 PROGRAM ACCOUNT.] A productive day program account is created in 102.34 the state treasury. Money collected by the commissioner of 102.35 human services for the program under this section must be 102.36 deposited in this account. Money in the account is appropriated 103.1 to the commissioner for purposes of this section. 103.2 Subd. 3. [MONEY.] The commissioner has the authority to 103.3 collect money resulting from the productive day program, and 103.4 retain 50 percent to reimburse the state for the cost of 103.5 administering the work program and for the purpose of reducing 103.6 state costs associated with the Minnesota Sex Offender Program 103.7 and return 50 percent of the earnings to the patient. 103.8 Sec. 13. Minnesota Statutes 2003 Supplement, section 103.9 252.27, subdivision 2a, is amended to read: 103.10 Subd. 2a. [CONTRIBUTION AMOUNT.] (a) The natural or 103.11 adoptive parents of a minor child, including a child determined 103.12 eligible for medical assistance without consideration of 103.13 parental income, must contribute monthlyto the cost of services 103.14 used by making monthly payments on a sliding scale based on 103.15 income, unless the child is married or has been married, 103.16 parental rights have been terminated, or the child's adoption is 103.17 subsidized according to section 259.67 or through title IV-E of 103.18 the Social Security Act. 103.19 (b) For households with adjusted gross income equal to or 103.20 greater than 100 percent of federal poverty guidelines, the 103.21 parental contribution shall be computed by applying the 103.22 following schedule of rates to the adjusted gross income of the 103.23 natural or adoptive parents: 103.24 (1) if the adjusted gross income is equal to or greater 103.25 than 100 percent of federal poverty guidelines and less than 175 103.26 percent of federal poverty guidelines, the parental contribution 103.27 is $4 per month; 103.28 (2) if the adjusted gross income is equal to or greater 103.29 than 175 percent of federal poverty guidelines and less than or 103.30 equal to 375 percent of federal poverty guidelines, the parental 103.31 contribution shall be determined using a sliding fee scale 103.32 established by the commissioner of human services which begins 103.33 at one percent of adjusted gross income at 175 percent of 103.34 federal poverty guidelines and increases to 7.5 percent of 103.35 adjusted gross income for those with adjusted gross income up to 103.36 375 percent of federal poverty guidelines; 104.1 (3) if the adjusted gross income is greater than 375 104.2 percent of federal poverty guidelines and less than 675 percent 104.3 of federal poverty guidelines, the parental contribution shall 104.4 be 7.5 percent of adjusted gross income; 104.5 (4) if the adjusted gross income is equal to or greater 104.6 than 675 percent of federal poverty guidelines and less than 975 104.7 percent of federal poverty guidelines, the parental contribution 104.8 shall be ten percent of adjusted gross income; and 104.9 (5) if the adjusted gross income is equal to or greater 104.10 than 975 percent of federal poverty guidelines, the parental 104.11 contribution shall be 12.5 percent of adjusted gross income. 104.12 If the child lives with the parent, the annual adjusted 104.13 gross income is reduced by $2,400 prior to calculating the 104.14 parental contribution. If the child resides in an institution 104.15 specified in section 256B.35, the parent is responsible for the 104.16 personal needs allowance specified under that section in 104.17 addition to the parental contribution determined under this 104.18 section. The parental contribution is reduced by any amount 104.19 required to be paid directly to the child pursuant to a court 104.20 order, but only if actually paid. 104.21 (c) The household size to be used in determining the amount 104.22 of contribution under paragraph (b) includes natural and 104.23 adoptive parents and their dependents under age 21, including 104.24 the child receiving services. Adjustments in the contribution 104.25 amount due to annual changes in the federal poverty guidelines 104.26 shall be implemented on the first day of July following 104.27 publication of the changes. 104.28 (d) For purposes of paragraph (b), "income" means the 104.29 adjusted gross income of the natural or adoptive parents 104.30 determined according to the previous year's federal tax form, 104.31 except, effective retroactive to July 1, 2003, taxable capital 104.32 gains to the extent the funds have been used to purchase a home 104.33 shall not be counted as income. 104.34 (e) The contribution shall be explained in writing to the 104.35 parents at the time eligibility for services is being 104.36 determined. The contribution shall be made on a monthly basis 105.1 effective with the first month in which the child receives 105.2 services. Annually upon redetermination or at termination of 105.3 eligibility, if the contribution exceeded the cost of services 105.4 provided, the local agency or the state shall reimburse that 105.5 excess amount to the parents, either by direct reimbursement if 105.6 the parent is no longer required to pay a contribution, or by a 105.7 reduction in or waiver of parental fees until the excess amount 105.8 is exhausted. 105.9 (f) The monthly contribution amount must be reviewed at 105.10 least every 12 months; when there is a change in household size; 105.11 and when there is a loss of or gain in income from one month to 105.12 another in excess of ten percent. The local agency shall mail a 105.13 written notice 30 days in advance of the effective date of a 105.14 change in the contribution amount. A decrease in the 105.15 contribution amount is effective in the month that the parent 105.16 verifies a reduction in income or change in household size. 105.17 (g) Parents of a minor child who do not live with each 105.18 other shall each pay the contribution required under paragraph 105.19 (a). An amount equal to the annual court-ordered child support 105.20 payment actually paid on behalf of the child receiving services 105.21 shall be deducted from the adjusted gross income of the parent 105.22 making the payment prior to calculating the parental 105.23 contribution under paragraph (b). 105.24 (h) The contribution under paragraph (b) shall be increased 105.25 by an additional five percent if the local agency determines 105.26 that insurance coverage is available but not obtained for the 105.27 child. For purposes of this section, "available" means the 105.28 insurance is a benefit of employment for a family member at an 105.29 annual cost of no more than five percent of the family's annual 105.30 income. For purposes of this section, "insurance" means health 105.31 and accident insurance coverage, enrollment in a nonprofit 105.32 health service plan, health maintenance organization, 105.33 self-insured plan, or preferred provider organization. 105.34 Parents who have more than one child receiving services 105.35 shall not be required to pay more than the amount for the child 105.36 with the highest expenditures. There shall be no resource 106.1 contribution from the parents. The parent shall not be required 106.2 to pay a contribution in excess of the cost of the services 106.3 provided to the child, not counting payments made to school 106.4 districts for education-related services. Notice of an increase 106.5 in fee payment must be given at least 30 days before the 106.6 increased fee is due. 106.7 (i) The contribution under paragraph (b) shall be reduced 106.8 by $300 per fiscal year if, in the 12 months prior to July 1: 106.9 (1) the parent applied for insurance for the child; 106.10 (2) the insurer denied insurance; 106.11 (3) the parents submitted a complaint or appeal, in writing 106.12 to the insurer, submitted a complaint or appeal, in writing, to 106.13 the commissioner of health or the commissioner of commerce, or 106.14 litigated the complaint or appeal; and 106.15 (4) as a result of the dispute, the insurer reversed its 106.16 decision and granted insurance. 106.17 For purposes of this section, "insurance" has the meaning 106.18 given in paragraph (h). 106.19 A parent who has requested a reduction in the contribution 106.20 amount under this paragraph shall submit proof in the form and 106.21 manner prescribed by the commissioner or county agency, 106.22 including, but not limited to, the insurer's denial of 106.23 insurance, the written letter or complaint of the parents, court 106.24 documents, and the written response of the insurer approving 106.25 insurance. The determinations of the commissioner or county 106.26 agency under this paragraph are not rules subject to chapter 14. 106.27 Sec. 14. Minnesota Statutes 2002, section 253B.02, is 106.28 amended by adding a subdivision to read: 106.29 Subd. 24. [ADMINISTRATIVE RESTRICTION.] "Administrative 106.30 restriction" means any measure utilized by the commissioner to 106.31 maintain safety and security, protect possible evidence, and 106.32 prevent the continuation of suspected criminal acts. 106.33 Administrative restriction does not mean protective isolation as 106.34 defined by Minnesota Rules, part 9515.3090, subpart 4. 106.35 Administrative restriction may include increased monitoring, 106.36 program limitations, loss of privileges, restricted access to 107.1 and use of possessions, and separation of a patient from the 107.2 normal living environment, as determined by the commissioner or 107.3 the commissioner's designee. Administrative restriction applies 107.4 only to patients in a secure treatment facility as defined in 107.5 subdivision 18a who: 107.6 (1) are suspected of committing a crime or charged with a 107.7 crime; 107.8 (2) are the subject of a criminal investigation; 107.9 (3) are awaiting sentencing following a conviction of a 107.10 crime; or 107.11 (4) are awaiting transfer to a correctional facility. 107.12 The commissioner shall establish policies and procedures 107.13 according to section 246.014, paragraph (d), regarding the use 107.14 of administrative restriction. The policies and procedures 107.15 shall identify the implementation and termination of 107.16 administrative restrictions. Use of administrative restriction 107.17 and the reason associated with the use shall be documented in 107.18 the patient's medical record. 107.19 Sec. 15. Minnesota Statutes 2002, section 253B.02, is 107.20 amended by adding a subdivision to read: 107.21 Subd. 25. [SAFETY.] "Safety" means protection of persons 107.22 or property from potential danger, risk, injury, harm, or damage. 107.23 Sec. 16. Minnesota Statutes 2002, section 253B.02, is 107.24 amended by adding a subdivision to read: 107.25 Subd. 26. [SECURITY.] "Security" means the measures 107.26 necessary to achieve the management and accountability of 107.27 patients of the facility, staff, and visitors, as well as 107.28 property of the facility. 107.29 Sec. 17. Minnesota Statutes 2002, section 253B.03, is 107.30 amended by adding a subdivision to read: 107.31 Subd. 1a. [ADMINISTRATIVE RESTRICTION.] (a) A patient has 107.32 the right to be free from unnecessary or excessive 107.33 administrative restriction. Administrative restriction shall 107.34 not be used for the convenience of staff, for retaliation for 107.35 filing complaints, or as a substitute for program treatment. 107.36 Administrative restriction may not involve any further 108.1 deprivation of privileges than is necessary. 108.2 (b) Administrative restriction may include separate and 108.3 secure housing. 108.4 (c) Patients under administrative restriction shall not be 108.5 limited in access to their attorney. 108.6 (d) If a patient is placed on administrative restriction 108.7 because the patient is suspected of committing a crime, the 108.8 secure treatment facility must report the crime to the 108.9 appropriate police agency within 24 hours of the beginning of 108.10 administrative restriction. The patient must be released from 108.11 administrative restriction if a police agency does not begin an 108.12 investigation within 72 hours of the report. 108.13 (e) A patient placed on administrative restriction because 108.14 the patient is a subject of a criminal investigation must be 108.15 released from administrative restriction when the investigation 108.16 is completed. If the patient is charged with a crime following 108.17 the investigation, administrative restriction may continue until 108.18 the charge is disposed of. 108.19 (f) The secure treatment facility must notify the patient's 108.20 attorney of the patient's being placed on administrative 108.21 restriction within 24 hours after the beginning of 108.22 administrative restriction. 108.23 Sec. 18. Minnesota Statutes 2002, section 253B.185, is 108.24 amended by adding a subdivision to read: 108.25 Subd. 7. [RIGHTS OF PATIENTS COMMITTED UNDER THIS 108.26 SECTION.] (a) The commissioner or the commissioner's designee 108.27 may limit the statutory rights described in paragraph (b) for 108.28 patients committed to the Minnesota sex offender program under 108.29 this section or with the commissioner's consent under section 108.30 246B.02. The statutory rights described in paragraph (b) may be 108.31 limited only as necessary to maintain a therapeutic environment 108.32 or the security of the facility or to protect the safety and 108.33 well-being of patients, staff, and the public. 108.34 (b) The statutory rights that may be limited in accordance 108.35 with paragraph (a) are those set forth in section 144.651, 108.36 subdivision 19, personal privacy; section 144.651, subdivision 109.1 21, private communications; section 144.651, subdivision 22, 109.2 retain and use of personal property; section 144.651, 109.3 subdivision 25, manage personal financial affairs; section 109.4 144.651, subdivision 26, meet with visitors and participate in 109.5 groups; section 253B.03, subdivision 2, correspond with others; 109.6 and section 253B.03, subdivision 3, receive visitors and make 109.7 telephone calls. Other statutory rights enumerated by sections 109.8 144.651 and 253B.03, or any other law, may be limited as 109.9 provided in those sections. 109.10 [EFFECTIVE DATE.]This section is effective the day 109.11 following final enactment. 109.12 Sec. 19. Minnesota Statutes 2002, section 256.01, is 109.13 amended by adding a subdivision to read: 109.14 Subd. 14a. [SINGLE BENEFIT DEMONSTRATION.] The 109.15 commissioner may conduct a demonstration program under a federal 109.16 Title IV-E waiver to demonstrate the impact of a single benefit 109.17 level on the rate of permanency for children in long-term foster 109.18 care through transfer of permanent legal custody or adoption. 109.19 The commissioner of human services is authorized to waive 109.20 enforcement of related statutory program requirements, rules, 109.21 and standards in one or more counties for the purpose of this 109.22 demonstration. The demonstration must comply with the 109.23 requirements of the secretary of health and human services under 109.24 federal waiver and be cost neutral to the state. 109.25 The commissioner may measure cost neutrality to the state 109.26 by the same mechanism approved by the secretary of health and 109.27 human services to measure federal cost neutrality. The 109.28 commissioner is authorized to accept and administer county funds 109.29 and to transfer state and federal funds among the affected 109.30 programs as necessary for the conduct of the demonstration. 109.31 Sec. 20. Minnesota Statutes 2002, section 256.01, is 109.32 amended by adding a subdivision to read: 109.33 Subd. 21. [HOMELESS SERVICES.] The commissioner of human 109.34 services may contract directly with nonprofit organizations 109.35 providing homeless services in two or more counties. 109.36 [EFFECTIVE DATE.]This section is effective immediately 110.1 following final enactment. 110.2 Sec. 21. Minnesota Statutes 2002, section 256B.055, is 110.3 amended by adding a subdivision to read: 110.4 Subd. 10b. [CHILDREN.] This subdivision supersedes 110.5 subdivision 10 as long as the Minnesota health care reform 110.6 waiver remains in effect. When the waiver expires, the 110.7 commissioner of human services shall publish a notice in the 110.8 State Register and notify the revisor of statutes. Medical 110.9 assistance may be paid for a child less than two years of age 110.10 with countable family income as established for infants under 110.11 section 256B.057, subdivision 1. 110.12 [EFFECTIVE DATE.]This section is effective retroactively 110.13 from July 1, 2003. 110.14 Sec. 22. Minnesota Statutes 2003 Supplement, section 110.15 256B.0596, is amended to read: 110.16 256B.0596 [MENTAL HEALTH CASE MANAGEMENT.] 110.17 Counties shall contract with eligible providers willing to 110.18 provide mental health case management services under section 110.19 256B.0625, subdivision 20. In order to be eligible, in addition 110.20 to general provider requirements under this chapter, the 110.21 provider must: 110.22 (1) be willing to provide the mental health case management 110.23 services; and 110.24 (2) have a minimum of at least one contact with the client 110.25 per week. This section is not intended to limit the ability of 110.26 a county to provide its own mental health case management 110.27 services. 110.28 Sec. 23. Minnesota Statutes 2003 Supplement, section 110.29 256B.0622, subdivision 8, is amended to read: 110.30 Subd. 8. [MEDICAL ASSISTANCE PAYMENT FOR INTENSIVE 110.31 REHABILITATIVE MENTAL HEALTH SERVICES.] (a) Payment for 110.32 residential and nonresidential services in this section shall be 110.33 based on one daily rate per provider inclusive of the following 110.34 services received by an eligible recipient in a given calendar 110.35 day: all rehabilitative services under this section, staff 110.36 travel time to provide rehabilitative services under this 111.1 section, and nonresidential crisis stabilization services under 111.2 section 256B.0624. 111.3 (b) Except as indicated in paragraph (c), payment will not 111.4 be made to more than one entity for each recipient for services 111.5 provided under this section on a given day. If services under 111.6 this section are provided by a team that includes staff from 111.7 more than one entity, the team must determine how to distribute 111.8 the payment among the members. 111.9 (c) The host county shall recommend to the commissioner one 111.10 rate for each entity that will bill medical assistance for 111.11 residential services under this section and two rates for each 111.12 nonresidential provider. The first nonresidential rate is for 111.13 recipients who are not receiving residential services. The 111.14 second nonresidential rate is for recipients who are temporarily 111.15 receiving residential services and need continued contact with 111.16 the nonresidential team to assure timely discharge from 111.17 residential services. In developing these rates, the host 111.18 county shall consider and document: 111.19 (1) the cost for similar services in the local trade area; 111.20 (2) actual costs incurred by entities providing the 111.21 services; 111.22 (3) the intensity and frequency of services to be provided 111.23 to each recipient; 111.24 (4) the degree to which recipients will receive services 111.25 other than services under this section; 111.26 (5) the costs of other services , such as case management,111.27 that will be separately reimbursed; and 111.28 (6) input from the local planning process authorized by the 111.29 adult mental health initiative under section 245.4661, regarding 111.30 recipients' service needs. 111.31 (d) The rate for intensive rehabilitative mental health 111.32 services must exclude room and board, as defined in section 111.33 256I.03, subdivision 6, and services not covered under this 111.34 section, such as case management,partial hospitalization, home 111.35 care, and inpatient services. Physician services that are not 111.36 separately billed may be included in the rate to the extent that 112.1 a psychiatrist is a member of the treatment team. The county's 112.2 recommendation shall specify the period for which the rate will 112.3 be applicable, not to exceed two years. 112.4 (e) When services under this section are provided by an 112.5 assertive community team, case management functions must be an 112.6 integral part of the team. The county must allocate costs which112.7 are reimbursable under this section versus costs which are112.8 reimbursable through case management or other reimbursement, so112.9 that payment is not duplicated.112.10 (f) The rate for a provider must not exceed the rate 112.11 charged by that provider for the same service to other payors. 112.12 (g) The commissioner shall approve or reject the county's 112.13 rate recommendation, based on the commissioner's own analysis of 112.14 the criteria in paragraph (c). 112.15 Sec. 24. Minnesota Statutes 2002, section 256B.0916, 112.16 subdivision 2, is amended to read: 112.17 Subd. 2. [DISTRIBUTION OF FUNDS; PARTNERSHIPS.] (a) 112.18 Beginning with fiscal year 2000, the commissioner shall 112.19 distribute all funding available for home and community-based 112.20 waiver services for persons with mental retardation or related 112.21 conditions to individual counties or to groups of counties that 112.22 form partnerships to jointly plan, administer, and authorize 112.23 funding for eligible individuals. The commissioner shall 112.24 encourage counties to form partnerships that have a sufficient 112.25 number of recipients and funding to adequately manage the risk 112.26 and maximize use of available resources. 112.27 (b) Counties must submit a request for funds and a plan for 112.28 administering the program as required by the commissioner. The 112.29 plan must identify the number of clients to be served, their 112.30 ages, and their priority listing based on: 112.31 (1) requirements in Minnesota Rules, part 9525.1880; 112.32 (2) unstable living situations due to the age or incapacity 112.33 of the primary caregiver; 112.34 (3) the need for services to avoid out-of-home placement of 112.35 children; and112.36 (4) the need to serve persons affected by private sector 113.1 ICF/MR closures; and 113.2 (5) the need to serve persons whose consumer support grant 113.3 exception amount was eliminated in 2004. 113.4 The plan must also identify changes made to improve services to 113.5 eligible persons and to improve program management. 113.6 (c) In allocating resources to counties, priority must be 113.7 given to groups of counties that form partnerships to jointly 113.8 plan, administer, and authorize funding for eligible individuals 113.9 and to counties determined by the commissioner to have 113.10 sufficient waiver capacity to maximize resource use. 113.11 (d) Within 30 days after receiving the county request for 113.12 funds and plans, the commissioner shall provide a written 113.13 response to the plan that includes the level of resources 113.14 available to serve additional persons. 113.15 (e) Counties are eligible to receive medical assistance 113.16 administrative reimbursement for administrative costs under 113.17 criteria established by the commissioner. 113.18 Sec. 25. Minnesota Statutes 2002, section 256B.49, is 113.19 amended by adding a subdivision to read: 113.20 Subd. 21. [REPORT.] The commissioner shall expand on the 113.21 annual report required under section 256B.0916, subdivision 7, 113.22 to include information on the county of residence and financial 113.23 responsibility, age, and major diagnoses for persons eligible 113.24 for the home and community-based waivers authorized under 113.25 subdivision 11 who are: 113.26 (1) receiving those services; 113.27 (2) screened and waiting for waiver services; and 113.28 (3) residing in nursing facilities and are under age 65. 113.29 Sec. 26. Minnesota Statutes 2003 Supplement, section 113.30 256B.69, subdivision 4, is amended to read: 113.31 Subd. 4. [LIMITATION OF CHOICE.] (a) The commissioner 113.32 shall develop criteria to determine when limitation of choice 113.33 may be implemented in the experimental counties. The criteria 113.34 shall ensure that all eligible individuals in the county have 113.35 continuing access to the full range of medical assistance 113.36 services as specified in subdivision 6. 114.1 (b) The commissioner shall exempt the following persons 114.2 from participation in the project, in addition to those who do 114.3 not meet the criteria for limitation of choice: 114.4 (1) persons eligible for medical assistance according to 114.5 section 256B.055, subdivision 1; 114.6 (2) persons eligible for medical assistance due to 114.7 blindness or disability as determined by the Social Security 114.8 Administration or the state medical review team, unless: 114.9 (i) they are 65 years of age or older; or 114.10 (ii) they reside in Itasca County or they reside in a 114.11 county in which the commissioner conducts a pilot project under 114.12 a waiver granted pursuant to section 1115 of the Social Security 114.13 Act; 114.14 (3) recipients who currently have private coverage through 114.15 a health maintenance organization; 114.16 (4) recipients who are eligible for medical assistance by 114.17 spending down excess income for medical expenses other than the 114.18 nursing facility per diem expense; 114.19 (5) recipients who receive benefits under the Refugee 114.20 Assistance Program, established under United States Code, title 114.21 8, section 1522(e); 114.22 (6) children who are both determined to be severely 114.23 emotionally disturbed and receiving case management services 114.24 according to section 256B.0625, subdivision 20; 114.25 (7) adults who are both determined to be seriously and 114.26 persistently mentally ill and received case management services 114.27 according to section 256B.0625, subdivision 20; 114.28 (8) persons eligible for medical assistance according to 114.29 section 256B.057, subdivision 10; and 114.30 (9) persons with access to cost-effective 114.31 employer-sponsored private health insurance or persons enrolled 114.32 in an individual health plan determined to be cost-effective 114.33 according to section 256B.0625, subdivision 15. 114.34 Children under age 21 who are in foster placement may enroll in 114.35 the project on an elective basis. Individuals excluded under 114.36 clauses (1), (6), and (7) may choose to enroll on an elective 115.1 basis. The commissioner may enroll recipients in the prepaid 115.2 medical assistance program for seniors who are (1) age 65 and 115.3 over, and (2) eligible for medical assistance by spending down 115.4 excess income. 115.5 (c) The commissioner may allow persons with a one-month 115.6 spenddown who are otherwise eligible to enroll to voluntarily 115.7 enroll or remain enrolled, if they elect to prepay their monthly 115.8 spenddown to the state. 115.9 (d) The commissioner may require those individuals to 115.10 enroll in the prepaid medical assistance program who otherwise 115.11 would have been excluded under paragraph (b), clauses (1), (3), 115.12 and (8), and under Minnesota Rules, part 9500.1452, subpart 2, 115.13 items H, K, and L. 115.14 (e) Before limitation of choice is implemented, eligible 115.15 individuals shall be notified and after notification, shall be 115.16 allowed to choose only among demonstration providers. The 115.17 commissioner may assign an individual with private coverage 115.18 through a health maintenance organization, to the same health 115.19 maintenance organization for medical assistance coverage, if the 115.20 health maintenance organization is under contract for medical 115.21 assistance in the individual's county of residence. After 115.22 initially choosing a provider, the recipient is allowed to 115.23 change that choice only at specified times as allowed by the 115.24 commissioner. If a demonstration provider ends participation in 115.25 the project for any reason, a recipient enrolled with that 115.26 provider must select a new provider but may change providers 115.27 without cause once more within the first 60 days after 115.28 enrollment with the second provider. 115.29 (f) An infant born to a woman who is eligible for and 115.30 receiving medical assistance and who is enrolled in the prepaid 115.31 medical assistance program shall be retroactively enrolled to 115.32 the month of birth in the same managed care plan as the mother 115.33 once the child is enrolled in medical assistance unless the 115.34 child is determined to be excluded from enrollment in a prepaid 115.35 plan under this section. 115.36 [EFFECTIVE DATE.]This section is effective July 1, 2004, 116.1 or upon federal approval, whichever is later. 116.2 Sec. 27. Minnesota Statutes 2002, section 256F.10, 116.3 subdivision 5, is amended to read: 116.4 Subd. 5. [CASE MANAGERS.] Case managers are individuals 116.5 employed by and authorized by the certified child welfare 116.6 targeted case management provider to provide case management 116.7 services under section 256B.094 and this section. A case 116.8 manager must have: 116.9 (1) skills in identifying and assessing a wide range of 116.10 children's needs; 116.11 (2) knowledge of local child welfare and a variety of 116.12 community resources and effective use of those resources for the 116.13 benefit of the child; and 116.14 (3) a bachelor's degree in social work, psychology, 116.15 sociology, or a closely related field from an accredited 116.16 four-year college or university; or a bachelor's degree from an 116.17 accredited four-year college or university in a field other than 116.18 social work, psychology, sociology or a closely related field, 116.19 plus one year of experience in the delivery of social services 116.20 to children as a supervised social worker in a public or private 116.21 social services agency; or 116.22 (4) been authorized to serve as a tribal child welfare case 116.23 manager certified by a federally recognized tribal government 116.24 within the state of Minnesota, pursuant to section 256B.02, 116.25 subdivision 7, paragraph (c), and determined as meeting 116.26 applicable standards. 116.27 Sec. 28. Minnesota Statutes 2002, section 260C.007, 116.28 subdivision 18, is amended to read: 116.29 Subd. 18. [FOSTER CARE.] "Foster care" means the24 hour a116.30 day care of a child in any facility which for gain or otherwise116.31 regularly provides one or more children, when unaccompanied by116.32 their parents, with a substitute for the care, food, lodging,116.33 training, education, supervision or treatment they need but116.34 which for any reason cannot be furnished by their parents or116.35 legal guardians in their homes.substitute care for children 116.36 placed away from their parents or guardian and for whom a 117.1 responsible social services agency has placement and care 117.2 responsibility. "Foster care" includes, but is not limited to, 117.3 placement in foster family homes, foster homes of relatives, 117.4 group homes, emergency shelters, residential facilities not 117.5 excluded in this subdivision, child care institutions, and 117.6 proadoptive homes. A child is in foster care under this 117.7 definition regardless of whether the facility is licensed and 117.8 payments are made for the cost of care. Nothing in this 117.9 definition creates any authority to place a child in a home or 117.10 facility that is required to be licensed which is not licensed. 117.11 "Foster care" does not include placement in any of the following 117.12 facilities: hospitals, in-patient chemical dependency treatment 117.13 facilities, facilities that are primarily for delinquent 117.14 children, any corrections facility or program within a 117.15 particular correction's facility not meeting requirements for 117.16 Title IV-E facilities as determined by the commissioner, 117.17 facilities to which a child is committed under the provision of 117.18 chapter 253B, forestry camps, or jails. 117.19 Sec. 29. Minnesota Statutes 2002, section 260C.201, 117.20 subdivision 11, is amended to read: 117.21 Subd. 11. [REVIEW OF COURT ORDERED PLACEMENTS; PERMANENT 117.22 PLACEMENT DETERMINATION.] (a) Except forThis subdivision and 117.23 subdivision 11a do not apply in cases where the child is in 117.24 placement due solely to the child's developmental disability or 117.25 emotional disturbance, andwhere legal custody has not been 117.26 transferred to the responsible social services agency, and where 117.27 the court finds compelling reasons under section 260C.007, 117.28 subdivision 8, to continue the child in foster care past the 117.29 time periods specified in this subdivision. Foster care 117.30 placements of children due solely to their disability are 117.31 governed by section 260C.141, subdivision 2b. In all other 117.32 cases where the child is in foster care or in the care of a 117.33 noncustodial parent under subdivision 1 of this section, the 117.34 court shall conduct a hearing to determine the permanent status 117.35 of a child not later than 12 months after the child is 117.36 placed out of the home of thein foster care or in the care of a 118.1 noncustodial parent. 118.2 For purposes of this subdivision, the date of the child's 118.3 placement out of the home of the parentin foster care is the 118.4 earlier of the first court-ordered placement or 60 days after 118.5 the date on which the child has been voluntarily placed out of118.6 the homein foster care by the child's parent or guardian. For 118.7 purposes of this subdivision, time spent by a child under the 118.8 protective supervision of the responsible social services agency 118.9 in the home of a noncustodial parent pursuant to an order under 118.10 subdivision 1 of this section counts towards the requirement of 118.11 a permanency hearing under this subdivision or subdivision 11a. 118.12 For purposes of this subdivision, 12 months is calculated 118.13 as follows: 118.14 (1) during the pendency of a petition alleging that a child 118.15 is in need of protection or services, all time periods when a 118.16 child is placed out of the home of thein foster care or in the 118.17 home of a noncustodial parent are cumulated; 118.18 (2) if a child has been placed out of the home of the118.19 parentin foster care within the previous five years under one 118.20 or more previous petitions, the lengths of all prior time 118.21 periods when the child was placed out of the homein foster care 118.22 within the previous five years are cumulated. If a child under 118.23 this clause has been out of the homein foster care for 12 118.24 months or more, the court, if it is in the best interests of the 118.25 child and for compelling reasons, may extend the total time the 118.26 child may continue out of the home under the current petition up 118.27 to an additional six months before making a permanency 118.28 determination. 118.29 (b) Unless the responsible social services agency 118.30 recommends return of the child to the custodial parent or 118.31 parents, not later than 30 days prior to this hearing, the 118.32 responsible social services agency shall file pleadings in 118.33 juvenile court to establish the basis for the juvenile court to 118.34 order permanent placement of the child according to paragraph 118.35 (d). Notice of the hearing and copies of the pleadings must be 118.36 provided pursuant to section 260C.152. If a termination of 119.1 parental rights petition is filed before the date required for 119.2 the permanency planning determination and there is a trial under 119.3 section 260C.163 scheduled on that petition within 90 days of 119.4 the filing of the petition, no hearing need be conducted under 119.5 this subdivision. 119.6 (c) At the conclusion of the hearing, the court shall order 119.7 the child returned to the care of the parent or guardian from 119.8 whom the child was removed or order a permanent placement in the 119.9 child's best interests. The "best interests of the child" means 119.10 all relevant factors to be considered and evaluated. Transfer 119.11 of permanent legal and physical custody, termination of parental 119.12 rights, or guardianship and legal custody to the commissioner 119.13 through a consent to adopt are preferred permanency options for 119.14 a child who cannot return home. 119.15 (d) If the child is not returned to the home, the court 119.16 must order one of the following dispositions: 119.17 (1) permanent legal and physical custody to a relative in 119.18 the best interests of the child according to the following 119.19 conditions: 119.20 (i) an order for transfer of permanent legal and physical 119.21 custody to a relative shall only be made after the court has 119.22 reviewed the suitability of the prospective legal and physical 119.23 custodian; 119.24 (ii) in transferring permanent legal and physical custody 119.25 to a relative, the juvenile court shall follow the standards 119.26 applicable under this chapter and chapter 260, and the 119.27 procedures set out in the juvenile court rules; 119.28 (iii) an order establishing permanent legal and physical 119.29 custody under this subdivision must be filed with the family 119.30 court; 119.31 (iv) a transfer of legal and physical custody includes 119.32 responsibility for the protection, education, care, and control 119.33 of the child and decision making on behalf of the child; 119.34 (v) the social services agency may bring a petition or 119.35 motion naming a fit and willing relative as a proposed permanent 119.36 legal and physical custodian. The commissioner of human 120.1 services shall annually prepare for counties information that 120.2 must be given to proposed custodians about their legal rights 120.3 and obligations as custodians together with information on 120.4 financial and medical benefits for which the child is eligible; 120.5 and 120.6 (vi) the juvenile court may maintain jurisdiction over the 120.7 responsible social services agency, the parents or guardian of 120.8 the child, the child, and the permanent legal and physical 120.9 custodian for purposes of ensuring appropriate services are 120.10 delivered to the child and permanent legal custodian or for the 120.11 purpose of ensuring conditions ordered by the court related to 120.12 the care and custody of the child are met; 120.13 (2) termination of parental rights according to the 120.14 following conditions: 120.15 (i) unless the social services agency has already filed a 120.16 petition for termination of parental rights under section 120.17 260C.307, the court may order such a petition filed and all the 120.18 requirements of sections 260C.301 to 260C.328 remain applicable; 120.19 and 120.20 (ii) an adoption completed subsequent to a determination 120.21 under this subdivision may include an agreement for 120.22 communication or contact under section 259.58; 120.23 (3) long-term foster care according to the following 120.24 conditions: 120.25 (i) the court may order a child into long-term foster care 120.26 only if it finds compelling reasons that neither an award of 120.27 permanent legal and physical custody to a relative, nor 120.28 termination of parental rights is in the child's best interests; 120.29 and 120.30 (ii) further, the court may only order long-term foster 120.31 care for the child under this section if it finds the following: 120.32 (A) the child has reached age 12 and reasonable efforts by 120.33 the responsible social services agency have failed to locate an 120.34 adoptive family for the child; or 120.35 (B) the child is a sibling of a child described in subitem 120.36 (A) and the siblings have a significant positive relationship 121.1 and are ordered into the same long-term foster care home; 121.2 (4) foster care for a specified period of time according to 121.3 the following conditions: 121.4 (i) foster care for a specified period of time may be 121.5 ordered only if: 121.6 (A) the sole basis for an adjudication that the child is in 121.7 need of protection or services is the child's behavior; 121.8 (B) the court finds that foster care for a specified period 121.9 of time is in the best interests of the child; and 121.10 (C) the court finds compelling reasons that neither an 121.11 award of permanent legal and physical custody to a relative, nor 121.12 termination of parental rights is in the child's best interests; 121.13 (ii) the order does not specify that the child continue in 121.14 foster care for any period exceeding one year; or 121.15 (5) guardianship and legal custody to the commissioner of 121.16 human services under the following procedures and conditions: 121.17 (i) there is an identified prospective adoptive home that 121.18 has agreed to adopt the child and the court accepts the parent's 121.19 voluntary consent to adopt under section 259.24; 121.20 (ii) if the court accepts a consent to adopt in lieu of 121.21 ordering one of the other enumerated permanency dispositions, 121.22 the court must review the matter at least every 90 days. The 121.23 review will address the reasonable efforts of the agency to 121.24 achieve a finalized adoption; 121.25 (iii) a consent to adopt under this clause vests all legal 121.26 authority regarding the child, including guardianship and legal 121.27 custody of the child, with the commissioner of human services as 121.28 if the child were a state ward after termination of parental 121.29 rights; 121.30 (iv) the court must forward a copy of the consent to adopt, 121.31 together with a certified copy of the order transferring 121.32 guardianship and legal custody to the commissioner, to the 121.33 commissioner; and 121.34 (v) if an adoption is not finalized by the identified 121.35 prospective adoptive parent within 12 months of the execution of 121.36 the consent to adopt under this clause, the commissioner of 122.1 human services or the commissioner's delegate shall pursue 122.2 adoptive placement in another home unless the commissioner 122.3 certifies that the failure to finalize is not due to either an 122.4 action or a failure to act by the prospective adoptive parent. 122.5 (e) In ordering a permanent placement of a child, the court 122.6 must be governed by the best interests of the child, including a 122.7 review of the relationship between the child and relatives and 122.8 the child and other important persons with whom the child has 122.9 resided or had significant contact. 122.10 (f) Once a permanent placement determination has been made 122.11 and permanent placement has been established, further court 122.12 reviews are necessary if: 122.13 (1) the placement is long-term foster care or foster care 122.14 for a specified period of time; 122.15 (2) the court orders further hearings because it has 122.16 retained jurisdiction of a transfer of permanent legal and 122.17 physical custody matter; 122.18 (3) an adoption has not yet been finalized; or 122.19 (4) there is a disruption of the permanent or long-term 122.20 placement. 122.21 (g) Court reviews of an order for long-term foster care, 122.22 whether under this section or section 260C.317, subdivision 3, 122.23 paragraph (d), or foster care for a specified period of time 122.24 must be conducted at least yearly and must review the child's 122.25 out-of-home placement plan and the reasonable efforts of the 122.26 agency to: 122.27 (1) identify a specific long-term foster home for the child 122.28 or a specific foster home for the time the child is specified to 122.29 be out of the care of the parent, if one has not already been 122.30 identified; 122.31 (2) support continued placement of the child in the 122.32 identified home, if one has been identified; 122.33 (3) ensure appropriate services are provided to the child 122.34 during the period of long-term foster care or foster care for a 122.35 specified period of time; 122.36 (4) plan for the child's independence upon the child's 123.1 leaving long-term foster care living as required under section 123.2 260C.212, subdivision 1; and 123.3 (5) where placement is for a specified period of time, a 123.4 plan for the safe return of the child to the care of the parent. 123.5 (h) An order under this subdivision must include the 123.6 following detailed findings: 123.7 (1) how the child's best interests are served by the order; 123.8 (2) the nature and extent of the responsible social service 123.9 agency's reasonable efforts, or, in the case of an Indian child, 123.10 active efforts to reunify the child with the parent or parents; 123.11 (3) the parent's or parents' efforts and ability to use 123.12 services to correct the conditions which led to the out-of-home 123.13 placement; and 123.14 (4) whether the conditions which led to the out-of-home 123.15 placement have been corrected so that the child can return home. 123.16 (i) An order for permanent legal and physical custody of a 123.17 child may be modified under sections 518.18 and 518.185. The 123.18 social services agency is a party to the proceeding and must 123.19 receive notice. A parent may only seek modification of an order 123.20 for long-term foster care upon motion and a showing by the 123.21 parent of a substantial change in the parent's circumstances 123.22 such that the parent could provide appropriate care for the 123.23 child and that removal of the child from the child's permanent 123.24 placement and the return to the parent's care would be in the 123.25 best interest of the child. 123.26 (j) The court shall issue an order required under this 123.27 section within 15 days of the close of the proceedings. The 123.28 court may extend issuing the order an additional 15 days when 123.29 necessary in the interests of justice and the best interests of 123.30 the child. 123.31 Sec. 30. Minnesota Statutes 2002, section 260C.212, 123.32 subdivision 5, is amended to read: 123.33 Subd. 5. [RELATIVE SEARCH; NATURE.] (a) In implementing 123.34 the requirement that the responsible social services agency must 123.35 consider placement with a relative under subdivision 2 as soon123.36 as possiblewithout delay after identifying the need for 124.1 placement of the child in foster care, the responsible social 124.2 services agency shall identify relatives of the child and notify 124.3 them of the need for a foster care home for the child and of the 124.4 possibility of the need for a permanent out-of-home placement of 124.5 the child. The relative search required by this section shall 124.6 be reasonable and comprehensive in scope and may last up to six 124.7 months or until a fit and willing relative is 124.8 identified. Relatives should be notified that a decision not to124.9 be a placement resource at the beginning of the case may affect124.10 the relative being considered for placement of the child with124.11 that relative laterThe relative search required by this section 124.12 shall include both maternal relatives of the child and paternal 124.13 relatives of the child, if paternity is adjudicated. The 124.14 relatives must be notified that they must keep the responsible 124.15 social services agency informed of their current address in 124.16 order to receive notice that a permanent placement is being 124.17 sought for the child. A relative who fails to provide a current 124.18 address to the responsible social services agency forfeits the 124.19 right to notice of the possibility of permanent placement. A 124.20 decision by a relative not to be a placement resource at the 124.21 beginning of the case shall not affect whether the relative is 124.22 considered for placement of the child with that relative later. 124.23 (b) A responsible social services agency may disclose 124.24 private or confidential data, as defined in section 13.02, to 124.25 relatives of the child for the purpose of locating a suitable 124.26 placement. The agency shall disclose only data that is 124.27 necessary to facilitate possible placement with relatives. If 124.28 the child's parent refuses to give the responsible social 124.29 services agency information sufficient to identify the maternal 124.30 and paternal relatives of the child, the agency shall determine124.31 whether the parent's refusal is in the child's best interests.124.32 If the agency determines the parent's refusal is not in the124.33 child's best interests, the agency shall file a petition under124.34 section 260C.141, and shallask the juvenile court to order the 124.35 parent to provide the necessary information. If a parent makes 124.36 an explicit request that relatives or a specific relative not be 125.1 contacted or considered for placement, the agency shall bring 125.2 the parent's request to the attention of the court to determine 125.3 whether the parent's request is consistent with the best 125.4 interests of the child and the agency shall not contact 125.5 relatives or a specific relative unless authorized to do so by 125.6 the juvenile court. 125.7 (c) When the placing agency determines that a permanent 125.8 placement hearing is necessary because there is a likelihood 125.9 that the child will not return to a parent's care, the agency 125.10 may send the notice provided in paragraph (d), may ask the court 125.11 to modify the requirements of the agency under this paragraph, 125.12 or may ask the court to completely relieve the agency of the 125.13 requirements of this paragraph. The relative notification 125.14 requirements of this paragraph do not apply when the child is 125.15 placed with an appropriate relative or a foster home that has 125.16 committed to being the permanent legal placement for the child 125.17 and the agency approves of that foster home for permanent 125.18 placement of the child. The actions ordered by the court under 125.19 this section must be consistent with the best interests, safety, 125.20 and welfare of the child. 125.21 (d) Unless required under the Indian Child Welfare Act or 125.22 relieved of this duty by the court under paragraph (c), when the 125.23 agency determines that it is necessary to prepare for the 125.24 permanent placement determination hearing, or in anticipation of 125.25 filing a termination of parental rights petition, the agency 125.26 shall send notice to the relatives, any adult with whom the 125.27 child is currently residing, any adult with whom the child has 125.28 resided for one year or longer in the past, and any adults who 125.29 have maintained a relationship or exercised visitation with the 125.30 child as identified in the agency case plan. The notice must 125.31 state that a permanent home is sought for the child and that the 125.32 individuals receiving the notice may indicate to the agency 125.33 their interest in providing a permanent home. The notice must 125.34 state that within 30 days of receipt of the notice an individual 125.35 receiving the notice must indicate to the agency the 125.36 individual's interest in providing a permanent home for the 126.1 child or that the individual may lose the opportunity to be 126.2 considered for a permanent placement. 126.3 (e) The Department of Human Services shall develop a best 126.4 practices guide and specialized staff training to assist the 126.5 responsible social services agency in performing and complying 126.6 with the relative search requirements under this subdivision. 126.7 Sec. 31. [LEAD REDUCTION STUDY.] 126.8 The commissioner of health, in consultation with the 126.9 Department of Employment and Economic Development, the Minnesota 126.10 Housing Finance Agency, and the Department of Human Services, 126.11 shall develop and evaluate the best strategies to reduce the 126.12 number of children endangered by lead paint. The study shall 126.13 examine: 126.14 (1) how to promote and encourage primary prevention; 126.15 (2) how to ensure that all children at risk are tested; 126.16 (3) whether or not to reduce the state mandatory 126.17 intervention from 20 to ten micrograms of lead per deciliter of 126.18 whole blood and if a reduction is not recommended whether to 126.19 develop guidelines on intervention for children with blood 126.20 levels between ten and 20 micrograms of lead per deciliter of 126.21 whole blood; 126.22 (4) how to provide incentives and funding support to 126.23 property owners for lead hazard prevention and reduction; and 126.24 (5) ways to provide resources for local jurisdictions to 126.25 conduct outreach. 126.26 The commissioner shall submit the results of the study and any 126.27 recommendations, including any necessary legislative changes to 126.28 the legislature by January 15, 2005. 126.29 Sec. 32. [CONSUMER-DIRECTED COMMUNITY SUPPORT EVALUATION.] 126.30 The commissioner of human services, in consultation with 126.31 interested stakeholders, including representatives of consumers, 126.32 families, guardians, advocacy groups, counties, and providers, 126.33 shall evaluate the new consumer-directed community support 126.34 option under the home and community-based waiver programs, as 126.35 required by the federal Center for Medicare and Medicaid 126.36 Services. The evaluation shall include, but not be limited to, 127.1 an examination of whether any current consumer-directed option 127.2 participants will have their funding reduced so significantly 127.3 that their health, safety, and welfare at home will be 127.4 jeopardized, and whether replacement services will cost more or 127.5 be of lower quality than their current consumer-directed 127.6 services. The preliminary findings of the evaluation shall be 127.7 provided to the house and senate committees with jurisdiction 127.8 over human services policy and finance by February 15, 2005. 127.9 Sec. 33. [REPEALER.] 127.10 Laws 2003, First Special Session chapter 14, article 3, 127.11 section 56, is repealed effective immediately following final 127.12 enactment. 127.13 ARTICLE 4 127.14 CHILD CARE; MINNESOTA FAMILY INVESTMENT PLAN 127.15 Section 1. Minnesota Statutes 2003 Supplement, section 127.16 119B.011, subdivision 6, is amended to read: 127.17 Subd. 6. [CHILD CARE FUND.] "Child care fund" means a 127.18 program under this chapter providing: 127.19 (1) financial assistance for child care to parents engaged 127.20 in employment, job search, or education and training leading to 127.21 employment, or an at-home infant child care subsidy; and 127.22 (2) grants to develop, expand, and improve the access and 127.23 availability of child care services statewide. 127.24 [EFFECTIVE DATE.]This section is effective July 1, 2004. 127.25 Sec. 2. Minnesota Statutes 2003 Supplement, section 127.26 119B.011, subdivision 8, is amended to read: 127.27 Subd. 8. [COMMISSIONER.] "Commissioner" means the 127.28 commissioner of educationhuman services. 127.29 Sec. 3. Minnesota Statutes 2003 Supplement, section 127.30 119B.011, subdivision 10, is amended to read: 127.31 Subd. 10. [DEPARTMENT.] "Department" means the Department 127.32 of EducationHuman Services. 127.33 Sec. 4. Minnesota Statutes 2002, section 119B.011, is 127.34 amended by adding a subdivision to read: 127.35 Subd. 10a. [DIVERSIONARY WORK PROGRAM.] "Diversionary work 127.36 program" means the program established under section 256J.95. 128.1 Sec. 5. Minnesota Statutes 2003 Supplement, section 128.2 119B.011, subdivision 15, is amended to read: 128.3 Subd. 15. [INCOME.] "Income" means earned or unearned 128.4 income received by all family members, including public 128.5 assistance cash benefits and at-home infant child care subsidy 128.6 payments, unless specifically excluded and child support and 128.7 maintenance distributed to the family under section 256.741, 128.8 subdivision 15. The following are excluded from income: funds 128.9 used to pay for health insurance premiums for family members, 128.10 Supplemental Security Income, scholarships, work-study income, 128.11 and grants that cover costs or reimbursement for tuition, fees, 128.12 books, and educational supplies; student loans for tuition, 128.13 fees, books, supplies, and living expenses; state and federal 128.14 earned income tax credits; assistance specifically excluded as 128.15 income by law; in-kind income such as food support, energy 128.16 assistance, foster care assistance, medical assistance, child 128.17 care assistance, and housing subsidies; earned income of 128.18 full-time or part-time students up to the age of 19, who have 128.19 not earned a high school diploma or GED high school equivalency 128.20 diploma including earnings from summer employment; grant awards 128.21 under the family subsidy program; nonrecurring lump sum income 128.22 only to the extent that it is earmarked and used for the purpose 128.23 for which it is paid; and any income assigned to the public 128.24 authority according to section 256.741. 128.25 [EFFECTIVE DATE.]This section is effective July 1, 2004. 128.26 Sec. 6. Minnesota Statutes 2003 Supplement, section 128.27 119B.011, subdivision 20, is amended to read: 128.28 Subd. 20. [TRANSITION YEAR FAMILIES.] (a)"Transition year 128.29 families" means families who have received MFIP assistance, or 128.30 who were eligible to receive MFIP assistance after choosing to 128.31 discontinue receipt of the cash portion of MFIP assistance under 128.32 section 256J.31, subdivision 12, or families who have received 128.33 DWP assistance under section 256J.95 for at least three of the 128.34 last six months before losing eligibility for MFIP or DWP. 128.35 Transition year child care may be used to support employment or 128.36 job search. Transition year child care is not available to 129.1 families who have been disqualified from MFIP or DWP due to 129.2 fraud. 129.3 (b)Subd. 20a. [TRANSITION YEAR EXTENSION FAMILIES.] 129.4 "Transition year extension yearfamilies" means families who 129.5 have completed their transition year of child care assistance 129.6 under this subdivision and who are eligible for, but on a 129.7 waiting list for, services under section 119B.03. For purposes 129.8 of sections 119B.03, subdivision 3, and 119B.05, subdivision 1, 129.9 clause (2), families participating in extended transition year 129.10 shall not be considered transition year families. Transition 129.11 year extension child care may be used to support employment or a 129.12 job search that meets the requirements of section 119B.10 for 129.13 the length of time necessary for families to be moved from the 129.14 basic sliding fee waiting list into the basic sliding fee 129.15 program. 129.16 Sec. 7. Minnesota Statutes 2002, section 119B.02, 129.17 subdivision 4, is amended to read: 129.18 Subd. 4. [UNIVERSAL APPLICATION FORM.] The commissioner 129.19 must develop and make available to all counties a universal 129.20 application form for child care assistance under this 129.21 chapter. The commissioner may develop and make available to all 129.22 counties a child care addendum form to be used to supplement the 129.23 combined application form for MFIP, DWP, or Food Support or to 129.24 supplement other statewide application forms for public 129.25 assistance programs for families applying for one of these 129.26 programs in addition to child care assistance. The application 129.27 must provide notice of eligibility requirements for assistance 129.28 and penalties for wrongfully obtaining assistance. 129.29 Sec. 8. Minnesota Statutes 2002, section 119B.03, 129.30 subdivision 3, is amended to read: 129.31 Subd. 3. [ELIGIBLE PARTICIPANTS.] Families that meet the 129.32 eligibility requirements under sections 119B.07, 119B.09, and 129.33 119B.10, except MFIP participants, work first129.34 participantsdiversionary work program, and transition year 129.35 families are eligible for child care assistance under the basic 129.36 sliding fee program. Families enrolled in the basic sliding fee 130.1 program shall be continued until they are no longer eligible. 130.2 Child care assistance provided through the child care fund is 130.3 considered assistance to the parent. 130.4 Sec. 9. Minnesota Statutes 2003 Supplement, section 130.5 119B.03, subdivision 4, is amended to read: 130.6 Subd. 4. [FUNDING PRIORITY.] (a) First priority for child 130.7 care assistance under the basic sliding fee program must be 130.8 given to eligible non-MFIP families who do not have a high 130.9 school or general equivalency diploma or who need remedial and 130.10 basic skill courses in order to pursue employment or to pursue 130.11 education leading to employment and who need child care 130.12 assistance to participate in the education program. Within this 130.13 priority, the following subpriorities must be used: 130.14 (1) child care needs of minor parents; 130.15 (2) child care needs of parents under 21 years of age; and 130.16 (3) child care needs of other parents within the priority 130.17 group described in this paragraph. 130.18 (b) Second priority must be given to parents who have 130.19 completed their MFIP or work firstDWP transition year, or 130.20 parents who are no longer receiving or eligible for diversionary 130.21 work program supports. 130.22 (c) Third priority must be given to families who are 130.23 eligible for portable basic sliding fee assistance through the 130.24 portability pool under subdivision 9. 130.25 (d) Families under paragraph (b) must be added to the basic 130.26 sliding fee waiting list on the date they begin the transition 130.27 year under section 119B.011, subdivision 20, and must be moved 130.28 into the basic sliding fee program as soon as possible after 130.29 they complete their transition year. 130.30 Sec. 10. Minnesota Statutes 2002, section 119B.03, 130.31 subdivision 6a, is amended to read: 130.32 Subd. 6a. [ALLOCATION DUE TO INCREASED FUNDING.] When 130.33 funding increases are implemented within a calendar year, every 130.34 county must receive an allocation at least equal and130.35 proportionateto its original allocation for the same time 130.36 period. The remainder of the allocation must be recalculated to 131.1 reflect the funding increase, according to formulas identified 131.2 in subdivision 6. 131.3 Sec. 11. Minnesota Statutes 2002, section 119B.03, is 131.4 amended by adding a subdivision to read: 131.5 Subd. 6b. [ALLOCATION DUE TO DECREASED FUNDING.] When 131.6 funding decreases are implemented within a calendar year, county 131.7 allocations must be reduced in an amount proportionate to the 131.8 reduction in the total allocation for the same time period. 131.9 This applies when a funding decrease necessitates the revision 131.10 of an existing calendar year allocation. 131.11 Sec. 12. [119B.035] [AT-HOME INFANT CHILD CARE PROGRAM.] 131.12 Subdivision 1. [ESTABLISHMENT.] A family in which a parent 131.13 provides care for the family's infant child may receive a 131.14 subsidy in lieu of assistance if the family is eligible for or 131.15 is receiving assistance under the basic sliding fee program. An 131.16 eligible family must meet the eligibility factors under section 131.17 119B.09, except as provided in subdivision 4, and the 131.18 requirements of this section. Subject to federal match and 131.19 maintenance of effort requirements for the child care and 131.20 development fund, the commissioner shall establish a pool of up 131.21 to three percent of the annual appropriation for the basic 131.22 sliding fee program to provide assistance under the at-home 131.23 infant child care program and for administrative costs 131.24 associated with the program. At the end of a fiscal year, the 131.25 commissioner may carry forward any unspent funds under this 131.26 section to the next fiscal year within the same biennium for 131.27 assistance under the basic sliding fee program. 131.28 Subd. 2. [ELIGIBLE FAMILIES.] A family with an infant 131.29 under the age of one year is eligible for assistance if: 131.30 (1) the family is not receiving MFIP, other cash 131.31 assistance, or other child care assistance; 131.32 (2) the family has not previously received a life-long 131.33 total of 12 months of assistance under this section; and 131.34 (3) the family is participating in the basic sliding fee 131.35 program or provides verification of participating in an 131.36 authorized activity at the time of application and meets the 132.1 program requirements. 132.2 Subd. 3. [ELIGIBLE PARENT.] A family is eligible for 132.3 assistance under this section if one parent cares for the 132.4 family's infant child. The eligible parent must: 132.5 (1) be over the age of 18; 132.6 (2) care for the infant full time in the infant's home; and 132.7 (3) care for any other children in the family who are 132.8 eligible for child care assistance under this chapter. 132.9 For purposes of this section, "parent" means birth parent, 132.10 adoptive parent, or stepparent. 132.11 Subd. 4. [ASSISTANCE.] (a) A family is limited to a 132.12 lifetime total of 12 months of assistance under subdivision 2. 132.13 The maximum rate of assistance is equal to 90 percent of the 132.14 rate established under section 119B.13 for care of infants in 132.15 licensed family child care in the applicant's county of 132.16 residence. 132.17 (b) A participating family must report income and other 132.18 family changes as specified in the county's plan under section 132.19 119B.08, subdivision 3. 132.20 (c) Persons who are admitted to the at-home infant child 132.21 care program retain their position in any basic sliding fee 132.22 program. Persons leaving the at-home infant child care program 132.23 reenter the basic sliding fee program at the position they would 132.24 have occupied. 132.25 (d) Assistance under this section does not establish an 132.26 employer-employee relationship between any member of the 132.27 assisted family and the county or state. 132.28 Subd. 5. [IMPLEMENTATION.] The commissioner shall 132.29 implement the at-home infant child care program under this 132.30 section through counties that administer the basic sliding fee 132.31 program under section 119B.03. The commissioner must develop 132.32 and distribute consumer information on the at-home infant child 132.33 care program to assist parents of infants or expectant parents 132.34 in making informed child care decisions. 132.35 [EFFECTIVE DATE.]This section is effective July 1, 2004. 132.36 Sec. 13. Minnesota Statutes 2003 Supplement, section 133.1 119B.05, subdivision 1, is amended to read: 133.2 Subdivision 1. [ELIGIBLE PARTICIPANTS.] Families eligible 133.3 for child care assistance under the MFIP child care program are: 133.4 (1) MFIP participants who are employed or in job search and 133.5 meet the requirements of section 119B.10; 133.6 (2) persons who are members of transition year families 133.7 under section 119B.011, subdivision 20, and meet the 133.8 requirements of section 119B.10; 133.9 (3) families who are participating in employment 133.10 orientation or job search, or other employment or training 133.11 activities that are included in an approved employability 133.12 development plan under chapter 256Ksection 256J.95; 133.13 (4) MFIP families who are participating in work job search, 133.14 job support, employment, or training activities as required in 133.15 their job search support oremployment plan, or in appeals, 133.16 hearings, assessments, or orientations according to chapter 133.17 256J; 133.18 (5) MFIP families who are participating in social services 133.19 activities under chapter 256J or 256Kas required in their 133.20 employment plan approved according to chapter 256J or 256K; 133.21 (6) families who are participating in programs as required 133.22 in tribal contracts under section 119B.02, subdivision 2, or 133.23 256.01, subdivision 2; and 133.24 (7) families who are participating in the transition year 133.25 extension under section 119B.011, subdivision 20, paragraph133.26 (a)20a. 133.27 Sec. 14. Minnesota Statutes 2003 Supplement, section 133.28 119B.09, subdivision 7, is amended to read: 133.29 Subd. 7. [DATE OF ELIGIBILITY FOR ASSISTANCE.] (a) The 133.30 date of eligibility for child care assistance under this chapter 133.31 is the later of the date the application was signed; the 133.32 beginning date of employment, education, or training; the date 133.33 the infant is born for applicants to the at-home infant care 133.34 program; or the date a determination has been made that the 133.35 applicant is a participant in employment and training services 133.36 under Minnesota Rules, part 3400.0080, subpart 2a, or chapter 134.1 256J or 256K. 134.2 (b) Payment ceases for a family under the at-home infant 134.3 child care program when a family has used a total of 12 months 134.4 of assistance as specified under section 119B.035. Payment of 134.5 child care assistance for employed persons on MFIP is effective 134.6 the date of employment or the date of MFIP eligibility, 134.7 whichever is later. Payment of child care assistance for MFIP 134.8 or work firstDWP participants in employment and training 134.9 services is effective the date of commencement of the services 134.10 or the date of MFIP or work firstDWP eligibility, whichever is 134.11 later. Payment of child care assistance for transition year 134.12 child care must be made retroactive to the date of eligibility 134.13 for transition year child care. 134.14 [EFFECTIVE DATE.]This section is effective July 1, 2004. 134.15 Sec. 15. Minnesota Statutes 2003 Supplement, section 134.16 119B.12, subdivision 2, is amended to read: 134.17 Subd. 2. [PARENT FEE.] A family must be assessed a parent 134.18 fee for each service period. A family's parent fee must be a 134.19 fixed percentage of its annual gross income. Parent fees must 134.20 apply to families eligible for child care assistance under 134.21 sections 119B.03 and 119B.05. Income must be as defined in 134.22 section 119B.011, subdivision 15. The fixed percent is based on 134.23 the relationship of the family's annual gross income to 100 134.24 percent of the annual federal poverty guidelines. Parent fees 134.25 must begin at 75 percent of the poverty level. The minimum 134.26 parent fees for families between 75 percent and 100 percent of 134.27 poverty level must be $10 per month. Parent fees must provide 134.28 for graduated movement to full payment. 134.29 Sec. 16. Minnesota Statutes 2003 Supplement, section 134.30 119B.125, subdivision 1, is amended to read: 134.31 Subdivision 1. [AUTHORIZATION.] Except as provided in 134.32 subdivision 5, a county must authorize the provider chosen by an 134.33 applicant or a participant before the county can authorize 134.34 payment for care provided by that provider. The commissioner 134.35 must establish the requirements necessary for authorization of 134.36 providers. A provider must be reauthorized every two years. A 135.1 legal, nonlicensed family child care provider also must be 135.2 reauthorized when another person over the age of 13 joins the 135.3 household, a current household member turns 13, or there is 135.4 reason to believe that a household member has a factor that 135.5 prevents authorization. The provider is required to report all 135.6 family changes that would require reauthorization. When a 135.7 provider has been authorized for payment for providing care for 135.8 families in more than one county, the county responsible for 135.9 reauthorization of that provider is the county of the family 135.10 with a current authorization for that provider and who has used 135.11 the provider for the longest length of time. 135.12 Sec. 17. Minnesota Statutes 2003 Supplement, section 135.13 119B.125, subdivision 2, is amended to read: 135.14 Subd. 2. [PERSONS WHO CANNOT BE AUTHORIZED.] (a) A person 135.15 who meets any of the conditions under paragraphs (b) to (n) must 135.16 not be authorized as a legal nonlicensed family child care 135.17 provider. To determine whether any of the listed conditions 135.18 exist, the county must request information about the provider 135.19 from the Bureau of Criminal Apprehension, the juvenile courts, 135.20 and social service agencies. When one of the listed entities 135.21 does not maintain information on a statewide basis, the county 135.22 must contact the entity in the county where the provider resides 135.23 and any other county in which the provider previously resided in 135.24 the past year. For purposes of this subdivision, a finding that 135.25 a delinquency petition is proven in juvenile court must be 135.26 considered a conviction in state district court. If a county 135.27 has determined that a provider is able to be authorized in that 135.28 county, and a family in another county later selects that 135.29 provider, the provider is able to be authorized in the second 135.30 county without undergoing a new background investigation unless 135.31 one of the following conditions exists: 135.32 (1) two years have passed since the first authorization; 135.33 (2) another person age 13 or older has joined the 135.34 provider's household since the last authorization; 135.35 (3) a current household member has turned 13 since the last 135.36 authorization; or 136.1 (4) there is reason to believe that a household member has 136.2 a factor that prevents authorization. 136.3 (b) The person has been convicted of one of the following 136.4 offenses or has admitted to committing or a preponderance of the 136.5 evidence indicates that the person has committed an act that 136.6 meets the definition of one of the following offenses: sections 136.7 609.185 to 609.195, murder in the first, second, or third 136.8 degree; 609.2661 to 609.2663, murder of an unborn child in the 136.9 first, second, or third degree; 609.322, solicitation, 136.10 inducement, or promotion of prostitution; 609.323, receiving 136.11 profit from prostitution; 609.342 to 609.345, criminal sexual 136.12 conduct in the first, second, third, or fourth degree; 609.352, 136.13 solicitation of children to engage in sexual conduct; 609.365, 136.14 incest; 609.377, felony malicious punishment of a child; 136.15 617.246, use of minors in sexual performance; 617.247, 136.16 possession of pictorial representation of a minor; 609.2242 to 136.17 609.2243, felony domestic assault; a felony offense of spousal 136.18 abuse; a felony offense of child abuse or neglect; a felony 136.19 offense of a crime against children; or an attempt or conspiracy 136.20 to commit any of these offenses as defined in Minnesota 136.21 Statutes; or an offense in any other state or country where the 136.22 elements are substantially similar to any of the offenses listed 136.23 in this paragraph. 136.24 (c) Less than 15 years have passed since the discharge of 136.25 the sentence imposed for the offense and the person has received 136.26 a felony conviction for one of the following offenses, or the 136.27 person has admitted to committing or a preponderance of the 136.28 evidence indicates that the person has committed an act that 136.29 meets the definition of a felony conviction for one of the 136.30 following offenses: sections 609.20 to 609.205, manslaughter in 136.31 the first or second degree; 609.21, criminal vehicular homicide; 136.32 609.215, aiding suicide or aiding attempted suicide; 609.221 to 136.33 609.2231, assault in the first, second, third, or fourth degree; 136.34 609.224, repeat offenses of fifth degree assault; 609.228, great 136.35 bodily harm caused by distribution of drugs; 609.2325, criminal 136.36 abuse of a vulnerable adult; 609.2335, financial exploitation of 137.1 a vulnerable adult; 609.235, use of drugs to injure or 137.2 facilitate a crime; 609.24, simple robbery; 617.241, repeat 137.3 offenses of obscene materials and performances; 609.245, 137.4 aggravated robbery; 609.25, kidnapping; 609.255, false 137.5 imprisonment; 609.2664 to 609.2665, manslaughter of an unborn 137.6 child in the first or second degree; 609.267 to 609.2672, 137.7 assault of an unborn child in the first, second, or third 137.8 degree; 609.268, injury or death of an unborn child in the 137.9 commission of a crime; 609.27, coercion; 609.275, attempt to 137.10 coerce; 609.324, subdivision 1, other prohibited acts, minor 137.11 engaged in prostitution; 609.3451, repeat offenses of criminal 137.12 sexual conduct in the fifth degree; 609.378, neglect or 137.13 endangerment of a child; 609.52, theft; 609.521, possession of 137.14 shoplifting gear; 609.561 to 609.563, arson in the first, 137.15 second, or third degree; 609.582, burglary in the first, second, 137.16 third, or fourth degree; 609.625, aggravated forgery; 609.63, 137.17 forgery; 609.631, check forgery, offering a forged check; 137.18 609.635, obtaining signature by false pretenses; 609.66, 137.19 dangerous weapon; 609.665, setting a spring gun; 609.67, 137.20 unlawfully owning, possessing, or operating a machine gun; 137.21 609.687, adulteration; 609.71, riot; 609.713, terrorist threats; 137.22 609.749, harassment, stalking; 260.221, grounds for termination 137.23 of parental rights; 152.021 to 152.022, controlled substance 137.24 crime in the first or second degree; 152.023, subdivision 1, 137.25 clause (3) or (4), or 152.023, subdivision 2, clause (4), 137.26 controlled substance crime in third degree; 152.024, subdivision 137.27 1, clause (2), (3), or (4), controlled substance crime in fourth 137.28 degree; 617.23, repeat offenses of indecent exposure; an attempt 137.29 or conspiracy to commit any of these offenses as defined in 137.30 Minnesota Statutes; or an offense in any other state or country 137.31 where the elements are substantially similar to any of the 137.32 offenses listed in this paragraph. 137.33 (d) Less than ten years have passed since the discharge of 137.34 the sentence imposed for the offense and the person has received 137.35 a gross misdemeanor conviction for one of the following offenses 137.36 or the person has admitted to committing or a preponderance of 138.1 the evidence indicates that the person has committed an act that 138.2 meets the definition of a gross misdemeanor conviction for one 138.3 of the following offenses: sections 609.224, fifth degree 138.4 assault; 609.2242 to 609.2243, domestic assault; 518B.01, 138.5 subdivision 14, violation of an order for protection; 609.3451, 138.6 fifth degree criminal sexual conduct; 609.746, repeat offenses 138.7 of interference with privacy; 617.23, repeat offenses of 138.8 indecent exposure; 617.241, obscene materials and performances; 138.9 617.243, indecent literature, distribution; 617.293, 138.10 disseminating or displaying harmful material to minors; 609.71, 138.11 riot; 609.66, dangerous weapons; 609.749, harassment, stalking; 138.12 609.224, subdivision 2, paragraph (c), fifth degree assault 138.13 against a vulnerable adult by a caregiver; 609.23, mistreatment 138.14 of persons confined; 609.231, mistreatment of residents or 138.15 patients; 609.2325, criminal abuse of a vulnerable adult; 138.16 609.2335, financial exploitation of a vulnerable adult; 609.233, 138.17 criminal neglect of a vulnerable adult; 609.234, failure to 138.18 report maltreatment of a vulnerable adult; 609.72, subdivision 138.19 3, disorderly conduct against a vulnerable adult; 609.265, 138.20 abduction; 609.378, neglect or endangerment of a child; 609.377, 138.21 malicious punishment of a child; 609.324, subdivision 1a, other 138.22 prohibited acts, minor engaged in prostitution; 609.33, 138.23 disorderly house; 609.52, theft; 609.582, burglary in the first, 138.24 second, third, or fourth degree; 609.631, check forgery, 138.25 offering a forged check; 609.275, attempt to coerce; an attempt 138.26 or conspiracy to commit any of these offenses as defined in 138.27 Minnesota Statutes; or an offense in any other state or country 138.28 where the elements are substantially similar to any of the 138.29 offenses listed in this paragraph. 138.30 (e) Less than seven years have passed since the discharge 138.31 of the sentence imposed for the offense and the person has 138.32 received a misdemeanor conviction for one of the following 138.33 offenses or the person has admitted to committing or a 138.34 preponderance of the evidence indicates that the person has 138.35 committed an act that meets the definition of a misdemeanor 138.36 conviction for one of the following offenses: sections 609.224, 139.1 fifth degree assault; 609.2242, domestic assault; 518B.01, 139.2 violation of an order for protection; 609.3232, violation of an 139.3 order for protection; 609.746, interference with privacy; 139.4 609.79, obscene or harassing telephone calls; 609.795, letter, 139.5 telegram, or package opening, harassment; 617.23, indecent 139.6 exposure; 609.2672, assault of an unborn child, third degree; 139.7 617.293, dissemination and display of harmful materials to 139.8 minors; 609.66, dangerous weapons; 609.665, spring guns; an 139.9 attempt or conspiracy to commit any of these offenses as defined 139.10 in Minnesota Statutes; or an offense in any other state or 139.11 country where the elements are substantially similar to any of 139.12 the offenses listed in this paragraph. 139.13 (f) The person has been identified by the county'schild 139.14 protection agency in the county where the provider resides or a 139.15 county where the provider has resided or by the statewide child 139.16 protection database as the person allegedly responsible for 139.17 physical or sexual abuse of a child within the last seven years. 139.18 (g) The person has been identified by the county'sadult 139.19 protection agency in the county where the provider resides or a 139.20 county where the provider has resided or by the statewide adult 139.21 protection database as the person responsible for abuse or 139.22 neglect of a vulnerable adult within the last seven years. 139.23 (h) The person has refused to give written consent for 139.24 disclosure of criminal history records. 139.25 (i) The person has been denied a family child care license 139.26 or has received a fine or a sanction as a licensed child care 139.27 provider that has not been reversed on appeal. 139.28 (j) The person has a family child care licensing 139.29 disqualification that has not been set aside. 139.30 (k) The person has admitted or a county has found that 139.31 there is a preponderance of evidence that fraudulent information 139.32 was given to the county for child care assistance application 139.33 purposes or was used in submitting child care assistance bills 139.34 for payment. 139.35 (l) The person has been convicted or there is a139.36 preponderance of evidenceof the crime of theft by wrongfully 140.1 obtaining public assistance. 140.2 (m) The person has a household member age 13 or older who 140.3 has access to children during the hours that care is provided 140.4 and who meets one of the conditions listed in paragraphs (b) to 140.5 (l). 140.6 (n) The person has a household member ages ten to 12 who 140.7 has access to children during the hours that care is provided; 140.8 information or circumstances exist which provide the county with 140.9 articulable suspicion that further pertinent information may 140.10 exist showing the household member meets one of the conditions 140.11 listed in paragraphs (b) to (l); and the household member 140.12 actually meets one of the conditions listed in paragraphs (b) to 140.13 (l). 140.14 Sec. 18. Minnesota Statutes 2003 Supplement, section 140.15 119B.13, subdivision 1, is amended to read: 140.16 Subdivision 1. [SUBSIDY RESTRICTIONS.] The maximum rate 140.17 paid for child care assistance under the child care fund may not 140.18 exceed the 75th percentile rate for like-care arrangements in 140.19 the county as surveyed by the commissioner. A rate which 140.20 includes a provider bonus paid under subdivision 2 ora special 140.21 needs rate paid under subdivision 3 may be in excess of the 140.22 maximum rate allowed under this subdivision. The department 140.23 shall monitor the effect of this paragraph on provider rates. 140.24 The county shall pay the provider's full charges for every child 140.25 in care up to the maximum established. The commissioner shall 140.26 determine the maximum rate for each type of care on an hourly, 140.27 full-day, and weekly basis, including special needs and 140.28 handicapped care. Not less than once every two years, the 140.29 commissioner shall evaluate market practices for payment of 140.30 absences and shall establish policies for payment of absent days 140.31 that reflect current market practice. 140.32 When the provider charge is greater than the maximum 140.33 provider rate allowed, the parent is responsible for payment of 140.34 the difference in the rates in addition to any family co-payment 140.35 fee. 140.36 Sec. 19. Minnesota Statutes 2003 Supplement, section 141.1 119B.13, subdivision 1a, is amended to read: 141.2 Subd. 1a. [LEGAL NONLICENSED FAMILY CHILD CARE PROVIDER 141.3 RATES.] (a) Legal nonlicensed family child care providers 141.4 receiving reimbursement under this chapter must be paid on an 141.5 hourly basis for care provided to families receiving assistance. 141.6 (b) The maximum rate paid to legal nonlicensed family child 141.7 care providers must be 80 percent of the county maximum hourly 141.8 rate for licensed family child care providers. In counties 141.9 where the maximum hourly rate for licensed family child care 141.10 providers is higher than the maximum weekly rate for those 141.11 providers divided by 50, the maximum hourly rate that may be 141.12 paid to legal nonlicensed family child care providers is the 141.13 rate equal to the maximum weekly rate for licensed family child 141.14 care providers divided by 50 and then multiplied by 0.80. 141.15 (c) A rate which includes a provider bonus paid under141.16 subdivision 2 ora special needs rate paid under subdivision 3 141.17 may be in excess of the maximum rate allowed under this 141.18 subdivision. 141.19 (d) Legal nonlicensed family child care providers receiving 141.20 reimbursement under this chapter may not be paid registration 141.21 fees for families receiving assistance. 141.22 Sec. 20. Minnesota Statutes 2003 Supplement, section 141.23 119B.189, subdivision 2, is amended to read: 141.24 Subd. 2. [INTERIM FINANCING.] "Interim financing" means 141.25 funding for up to 18 months: 141.26 (1) for activities that are necessary to receive and 141.27 maintain state child care licensing; 141.28 (2) to expand an existing child care program or to improve 141.29 program quality; and 141.30 (3) to operate for a period of six consecutive months after 141.31 a child care facility becomes licensed or satisfies standards of 141.32 the commissioner of educationhuman services. 141.33 Sec. 21. Minnesota Statutes 2003 Supplement, section 141.34 119B.189, subdivision 4, is amended to read: 141.35 Subd. 4. [TRAINING PROGRAM.] "Training program" means 141.36 child development courses offered by an accredited postsecondary 142.1 institution or similar training approved by a county board or 142.2 the commissioner. A training program must be a course of study 142.3 that teaches specific skills to meet licensing requirements or 142.4 requirements of the commissioner of educationhuman services. 142.5 Sec. 22. Minnesota Statutes 2003 Supplement, section 142.6 119B.19, subdivision 1, is amended to read: 142.7 Subdivision 1. [DISTRIBUTION OF FUNDS FOR OPERATION OF 142.8 CHILD CARE RESOURCE AND REFERRAL PROGRAMS.] The commissioner 142.9 of educationhuman services shall distribute funds to public or 142.10 private nonprofit organizations for the planning, establishment, 142.11 expansion, improvement, or operation of child care resource and 142.12 referral programs under this section. The commissioner must 142.13 adopt rules for programs under this section and sections 142.14 119B.189 and 119B.21. The commissioner must develop a process 142.15 to fund organizations to operate child care resource and 142.16 referral programs that includes application forms, timelines, 142.17 and standards for renewal. 142.18 Sec. 23. Minnesota Statutes 2003 Supplement, section 142.19 119B.24, is amended to read: 142.20 119B.24 [DUTIES OF COMMISSIONER.] 142.21 In addition to the powers and duties already conferred by 142.22 law, the commissioner of educationhuman services shall: 142.23 (1) administer the child care fund, including the basic 142.24 sliding fee program authorized under sections 119B.011 to 142.25 119B.16; 142.26 (2) monitor the child care resource and referral programs 142.27 established under section 119B.19; and 142.28 (3) encourage child care providers to participate in a 142.29 nationally recognized accreditation system for early childhood 142.30 and school-age care programs. Subject to approval by the 142.31 commissioner, family child care providers and early childhood 142.32 and school-age care programs shall be reimbursed for one-half of 142.33 the direct cost of accreditation fees, upon successful 142.34 completion of accreditation. 142.35 Sec. 24. Minnesota Statutes 2003 Supplement, section 142.36 119B.25, subdivision 2, is amended to read: 143.1 Subd. 2. [GRANTS.] The commissioner shall distribute money 143.2 provided by this section through a grant to a nonprofit 143.3 corporation organized to plan, develop, and finance early 143.4 childhood education and child care sites. The nonprofit 143.5 corporation must have demonstrated the ability to analyze 143.6 financing projects, have knowledge of other sources of public 143.7 and private financing for child care and early childhood 143.8 education sites, and have a relationship with the resource and 143.9 referral programs under section 119B.211. The board of 143.10 directors of the nonprofit corporation must include members who 143.11 are knowledgeable about early childhood education, child care, 143.12 development and improvement, and financing. The commissioners 143.13 of the Departments of EducationHuman Services and Employment 143.14 and Economic Development, and the commissioner of the Housing 143.15 Finance Agency shall advise the board on the loan program. The 143.16 grant must be used to make loans to improve child care or early 143.17 childhood education sites, or loans to plan, design, and 143.18 construct or expand licensed and legal unlicensed sites to 143.19 increase the availability of child care or early childhood 143.20 education. All loans made by the nonprofit corporation must 143.21 comply with section 363A.16. 143.22 Sec. 25. Minnesota Statutes 2003 Supplement, section 143.23 256.046, subdivision 1, is amended to read: 143.24 Subdivision 1. [HEARING AUTHORITY.] A local agency must 143.25 initiate an administrative fraud disqualification hearing for 143.26 individuals, including child care providers caring for children 143.27 receiving child care assistance, accused of wrongfully obtaining 143.28 assistance or intentional program violations, in lieu of a 143.29 criminal action when it has not been pursued, in the aid to 143.30 families with dependent children program formerly codified in 143.31 sections 256.72 to 256.87, MFIP, the diversionary work program, 143.32 child care assistance programs, general assistance, family 143.33 general assistance program formerly codified in section 256D.05, 143.34 subdivision 1, clause (15), Minnesota supplemental aid, food 143.35 stamp programs, general assistance medical care, MinnesotaCare 143.36 for adults without children, and upon federal approval, all 144.1 categories of medical assistance and remaining categories of 144.2 MinnesotaCare except for children through age 18. The hearing 144.3 is subject to the requirements of section 256.045 and the 144.4 requirements in Code of Federal Regulations, title 7, section 144.5 273.16, for the food stamp program and title 45, section 144.6 235.112, as of September 30, 1995, for the cash grant, medical 144.7 care programs, and child care assistance under chapter 119B. 144.8 Sec. 26. Minnesota Statutes 2003 Supplement, section 144.9 256.98, subdivision 8, is amended to read: 144.10 Subd. 8. [DISQUALIFICATION FROM PROGRAM.] (a) Any person 144.11 found to be guilty of wrongfully obtaining assistance by a 144.12 federal or state court or by an administrative hearing 144.13 determination, or waiver thereof, through a disqualification 144.14 consent agreement, or as part of any approved diversion plan 144.15 under section 401.065, or any court-ordered stay which carries 144.16 with it any probationary or other conditions, in the Minnesota 144.17 family investment program, the diversionary work program, the 144.18 food stamp or food support program, the general assistance 144.19 program, the group residential housing program, or the Minnesota 144.20 supplemental aid program shall be disqualified from that 144.21 program. In addition, any person disqualified from the 144.22 Minnesota family investment program shall also be disqualified 144.23 from the food stamp or food support program. The needs of that 144.24 individual shall not be taken into consideration in determining 144.25 the grant level for that assistance unit: 144.26 (1) for one year after the first offense; 144.27 (2) for two years after the second offense; and 144.28 (3) permanently after the third or subsequent offense. 144.29 The period of program disqualification shall begin on the 144.30 date stipulated on the advance notice of disqualification 144.31 without possibility of postponement for administrative stay or 144.32 administrative hearing and shall continue through completion 144.33 unless and until the findings upon which the sanctions were 144.34 imposed are reversed by a court of competent jurisdiction. The 144.35 period for which sanctions are imposed is not subject to 144.36 review. The sanctions provided under this subdivision are in 145.1 addition to, and not in substitution for, any other sanctions 145.2 that may be provided for by law for the offense involved. A 145.3 disqualification established through hearing or waiver shall 145.4 result in the disqualification period beginning immediately 145.5 unless the person has become otherwise ineligible for 145.6 assistance. If the person is ineligible for assistance, the 145.7 disqualification period begins when the person again meets the 145.8 eligibility criteria of the program from which they were 145.9 disqualified and makes application for that program. 145.10 (b) A family receiving assistance through child care 145.11 assistance programs under chapter 119B with a family member who 145.12 is found to be guilty of wrongfully obtaining child care 145.13 assistance by a federal court, state court, or an administrative 145.14 hearing determination or waiver, through a disqualification 145.15 consent agreement, as part of an approved diversion plan under 145.16 section 401.065, or a court-ordered stay with probationary or 145.17 other conditions, is disqualified from child care assistance 145.18 programs. The disqualifications must be for periods of three 145.19 months, six months, and two years for the first, second, and 145.20 third offenses respectively. Subsequent violations must result 145.21 in permanent disqualification. During the disqualification 145.22 period, disqualification from any child care program must extend 145.23 to all child care programs and must be immediately applied. 145.24 (c) A provider caring for children receiving assistance 145.25 through child care assistance programs under chapter 119B is 145.26 disqualified from receiving payment for child care services from 145.27 the child care assistance program under chapter 119B when the 145.28 provider is found to have wrongfully obtained child care 145.29 assistance by a federal court, state court, or an administrative 145.30 hearing determination or waiver under section 256.046, through a 145.31 disqualification consent agreement, as part of an approved 145.32 diversion plan under section 401.065, or a court-ordered stay 145.33 with probationary or other conditions. The disqualification 145.34 must be for a period of one year for the first offense and two 145.35 years for the second offense. Any subsequent violation must 145.36 result in permanent disqualification. The disqualification 146.1 period must be imposed immediately after a determination is made 146.2 under this paragraph. During the disqualification period, the 146.3 provider is disqualified from receiving payment from any child 146.4 care program under chapter 119B. 146.5 (d) Any person found to be guilty of wrongfully obtaining 146.6 general assistance medical care, MinnesotaCare for adults 146.7 without children, and upon federal approval, all categories of 146.8 medical assistance and remaining categories of MinnesotaCare, 146.9 except for children through age 18, by a federal or state court 146.10 or by an administrative hearing determination, or waiver 146.11 thereof, through a disqualification consent agreement, or as 146.12 part of any approved diversion plan under section 401.065, or 146.13 any court-ordered stay which carries with it any probationary or 146.14 other conditions, is disqualified from that program. The period 146.15 of disqualification is one year after the first offense, two 146.16 years after the second offense, and permanently after the third 146.17 or subsequent offense. The period of program disqualification 146.18 shall begin on the date stipulated on the advance notice of 146.19 disqualification without possibility of postponement for 146.20 administrative stay or administrative hearing and shall continue 146.21 through completion unless and until the findings upon which the 146.22 sanctions were imposed are reversed by a court of competent 146.23 jurisdiction. The period for which sanctions are imposed is not 146.24 subject to review. The sanctions provided under this 146.25 subdivision are in addition to, and not in substitution for, any 146.26 other sanctions that may be provided for by law for the offense 146.27 involved. 146.28 Sec. 27. Minnesota Statutes 2002, section 256D.051, 146.29 subdivision 6c, is amended to read: 146.30 Subd. 6c. [PROGRAM FUNDING.] (a) Within the limits of 146.31 available resources, the commissioner shall reimburse the actual 146.32 costs of county agencies and their employment and training 146.33 service providers for the provision of food stamp employment and 146.34 training services, including participant support services, 146.35 direct program services, and program administrative activities. 146.36 The cost of services for each county's food stamp employment and 147.1 training program shall not exceed an average of $400 per147.2 participantthe annual allocated amount. No more than 15 147.3 percent of program funds may be used for administrative 147.4 activities. The county agency may expend county funds in excess 147.5 of the limits of this subdivision without state reimbursement. 147.6 Program funds shall be allocated based on the county's 147.7 average number of food stamp cases as compared to the statewide 147.8 total number of such cases. The average number of cases shall 147.9 be based on counts of cases as of March 31, June 30, September 147.10 30, and December 31 of the previous calendar year. The 147.11 commissioner may reallocate unexpended money appropriated under 147.12 this section to those county agencies that demonstrate a need 147.13 for additional funds. 147.14 (b) This subdivision expires effective June 30, 2005. 147.15 Sec. 28. Minnesota Statutes 2002, section 256J.01, 147.16 subdivision 1, is amended to read: 147.17 Subdivision 1. [IMPLEMENTATION OF MINNESOTA FAMILY 147.18 INVESTMENT PROGRAM (MFIP).] Except for section 256J.95, this 147.19 chapter and chapter 256K may be cited as the Minnesota family 147.20 investment program (MFIP). MFIP is the statewide implementation 147.21 of components of the Minnesota family investment plan (MFIP) 147.22 authorized and formerly codified in section 256.031 and 147.23 Minnesota family investment plan-Ramsey County (MFIP-R) formerly 147.24 codified in section 256.047. 147.25 Sec. 29. Minnesota Statutes 2002, section 256J.08, 147.26 subdivision 73, is amended to read: 147.27 Subd. 73. [QUALIFIED NONCITIZEN.] "Qualified noncitizen" 147.28 means a person: 147.29 (1) who was lawfully admitted for permanent residence 147.30 pursuantaccording to United States Code, title 8; 147.31 (2) who was admitted to the United States as a refugee 147.32 pursuantaccording to United States Code, title 8; section 1157; 147.33 (3) whose deportation is being withheld pursuantaccording 147.34 to United States Code, title 8, sectionsections 1231(b)(3), 147.35 1253(h), and 1641(b)(5); 147.36 (4) who was paroled for a period of at least one year 148.1 pursuantaccording to United States Code, title 8, section 148.2 1182(d)(5); 148.3 (5) who was granted conditional entry pursuantaccording to 148.4 United State Code, title 8, section 1153(a)(7); 148.5 (6) who is a Cuban or Haitian entrant as defined in section 148.6 501(e) of the Refugee Education Assistance Act of 1980, United 148.7 States Code, title 8, section 1641(b)(7); 148.8 (7) who was granted asylum pursuantaccording to United 148.9 States Code, title 8, section 1158; 148.10 (7) determined to be a battered noncitizen by the United148.11 States Attorney General according to the Illegal Immigration148.12 Reform and Immigrant Responsibility Act of 1996, Title V of the148.13 Omnibus Consolidated Appropriations Bill, Public Law 104-208;148.14 (8) who is a child of a noncitizen determined to be a148.15 battered noncitizen by the United States Attorney General148.16 according to the Illegal Immigration Reform and Responsibility148.17 Act of 1996, title V, Public Law 104-200battered noncitizen 148.18 according to United States Code, title 8, section 1641(c); or 148.19 (9) who was admitted as a Cuban or Haitian entrantis a 148.20 parent or child of a battered noncitizen according to United 148.21 States Code, title 8, section 1641(c). 148.22 Sec. 30. Minnesota Statutes 2002, section 256J.08, 148.23 subdivision 82a, is amended to read: 148.24 Subd. 82a. [SHARED HOUSEHOLD STANDARD.] "Shared household 148.25 standard" means the basic standard used when the household 148.26 includes an unrelated member. The standard also applies to a 148.27 member disqualified under section 256J.425. The cash portion of 148.28 the shared household standard is equal to 90 percent of the cash 148.29 portion of the transitional standard. The cash portion of the 148.30 shared household standard plus the food portion equals the full 148.31 shared household standard. 148.32 Sec. 31. Minnesota Statutes 2003 Supplement, section 148.33 256J.09, subdivision 3b, is amended to read: 148.34 Subd. 3b. [INTERVIEW TO DETERMINE REFERRALS AND SERVICES.] 148.35 If the applicant is not diverted from applying for MFIP, and if 148.36 the applicant meets the MFIP eligibility requirements, then a 149.1 county agency must: 149.2 (1) identify an applicant who is under the age of 20 149.3 without a high school diploma or its equivalent and explain to 149.4 the applicant the assessment procedures and employment plan 149.5 requirements under section 256J.54; 149.6 (2) explain to the applicant the eligibility criteria in 149.7 section 256J.545 for the family violence waiver, and what an 149.8 applicant should do to develop an employment plan; 149.9 (3) determine if an applicant qualifies for an exemption149.10 under section 256J.56 from employment and training services149.11 requirementsexplain that the activities and hourly requirements 149.12 of the employment plan may be adjusted to accommodate the 149.13 personal and family circumstances of applicants who meet the 149.14 criteria in section 256J.561, subdivision 2, paragraph (d), 149.15 explain how a person should report to the county agency any 149.16 status changes, and explain that an applicant who is exemptnot 149.17 required to participate in employment services under section 149.18 256J.561 may volunteer to participate in employment and training 149.19 services; 149.20 (4) for applicants who are not exempt from the requirement 149.21 to attend orientation, arrange for an orientation under section 149.22 256J.45 and an assessment under section 256J.521; 149.23 (5) inform an applicant who is not exempt from the 149.24 requirement to attend orientation that failure to attend the 149.25 orientation is considered an occurrence of noncompliance with 149.26 program requirements and will result in an imposition of a 149.27 sanction under section 256J.46; and 149.28 (6) explain how to contact the county agency if an 149.29 applicant has questions about compliance with program 149.30 requirements. 149.31 Sec. 32. Minnesota Statutes 2003 Supplement, section 149.32 256J.21, subdivision 2, is amended to read: 149.33 Subd. 2. [INCOME EXCLUSIONS.] The following must be 149.34 excluded in determining a family's available income: 149.35 (1) payments for basic care, difficulty of care, and 149.36 clothing allowances received for providing family foster care to 150.1 children or adults under Minnesota Rules, parts 9545.0010 to 150.2 9545.0260 and 9555.5050 to 9555.6265, and payments received and 150.3 used for care and maintenance of a third-party beneficiary who 150.4 is not a household member; 150.5 (2) reimbursements for employment training received through 150.6 the Workforce Investment Act of 1998, United States Code, title 150.7 20, chapter 73, section 9201; 150.8 (3) reimbursement for out-of-pocket expenses incurred while 150.9 performing volunteer services, jury duty, employment, or 150.10 informal carpooling arrangements directly related to employment; 150.11 (4) all educational assistance, except the county agency 150.12 must count graduate student teaching assistantships, 150.13 fellowships, and other similar paid work as earned income and, 150.14 after allowing deductions for any unmet and necessary 150.15 educational expenses, shall count scholarships or grants awarded 150.16 to graduate students that do not require teaching or research as 150.17 unearned income; 150.18 (5) loans, regardless of purpose, from public or private 150.19 lending institutions, governmental lending institutions, or 150.20 governmental agencies; 150.21 (6) loans from private individuals, regardless of purpose, 150.22 provided an applicant or participant documents that the lender 150.23 expects repayment; 150.24 (7)(i) state income tax refunds; and 150.25 (ii) federal income tax refunds; 150.26 (8)(i) federal earned income credits; 150.27 (ii) Minnesota working family credits; 150.28 (iii) state homeowners and renters credits under chapter 150.29 290A; and 150.30 (iv) federal or state tax rebates; 150.31 (9) funds received for reimbursement, replacement, or 150.32 rebate of personal or real property when these payments are made 150.33 by public agencies, awarded by a court, solicited through public 150.34 appeal, or made as a grant by a federal agency, state or local 150.35 government, or disaster assistance organizations, subsequent to 150.36 a presidential declaration of disaster; 151.1 (10) the portion of an insurance settlement that is used to 151.2 pay medical, funeral, and burial expenses, or to repair or 151.3 replace insured property; 151.4 (11) reimbursements for medical expenses that cannot be 151.5 paid by medical assistance; 151.6 (12) payments by a vocational rehabilitation program 151.7 administered by the state under chapter 268A, except those 151.8 payments that are for current living expenses; 151.9 (13) in-kind income, including any payments directly made 151.10 by a third party to a provider of goods and services; 151.11 (14) assistance payments to correct underpayments, but only 151.12 for the month in which the payment is received; 151.13 (15) payments for short-term emergency needs under section 151.14 256J.626, subdivision 2; 151.15 (16) funeral and cemetery payments as provided by section 151.16 256.935; 151.17 (17) nonrecurring cash gifts of $30 or less, not exceeding 151.18 $30 per participant in a calendar month; 151.19 (18) any form of energy assistance payment made through 151.20 Public Law 97-35, Low-Income Home Energy Assistance Act of 1981, 151.21 payments made directly to energy providers by other public and 151.22 private agencies, and any form of credit or rebate payment 151.23 issued by energy providers; 151.24 (19) Supplemental Security Income (SSI), including 151.25 retroactive SSI payments and other income of an SSI recipient, 151.26 except as described in section 256J.37, subdivision 3b; 151.27 (20) Minnesota supplemental aid, including retroactive 151.28 payments; 151.29 (21) proceeds from the sale of real or personal property; 151.30 (22) state adoption assistance payments under section 151.31 259.67, and up to an equal amount of county adoption assistance 151.32 payments; 151.33 (23) state-funded family subsidy program payments made 151.34 under section 252.32 to help families care for children with 151.35 mental retardation or related conditions, consumer support grant 151.36 funds under section 256.476, and resources and services for a 152.1 disabled household member under one of the home and 152.2 community-based waiver services programs under chapter 256B; 152.3 (24) interest payments and dividends from property that is 152.4 not excluded from and that does not exceed the asset limit; 152.5 (25) rent rebates; 152.6 (26) income earned by a minor caregiver, minor child 152.7 through age 6, or a minor child who is at least a half-time 152.8 student in an approved elementary or secondary education 152.9 program; 152.10 (27) income earned by a caregiver under age 20 who is at 152.11 least a half-time student in an approved elementary or secondary 152.12 education program; 152.13 (28) MFIP child care payments under section 119B.05; 152.14 (29) all other payments made through MFIP to support a 152.15 caregiver's pursuit of greater economic stability; 152.16 (30) income a participant receives related to shared living 152.17 expenses; 152.18 (31) reverse mortgages; 152.19 (32) benefits provided by the Child Nutrition Act of 1966, 152.20 United States Code, title 42, chapter 13A, sections 1771 to 152.21 1790; 152.22 (33) benefits provided by the women, infants, and children 152.23 (WIC) nutrition program, United States Code, title 42, chapter 152.24 13A, section 1786; 152.25 (34) benefits from the National School Lunch Act, United 152.26 States Code, title 42, chapter 13, sections 1751 to 1769e; 152.27 (35) relocation assistance for displaced persons under the 152.28 Uniform Relocation Assistance and Real Property Acquisition 152.29 Policies Act of 1970, United States Code, title 42, chapter 61, 152.30 subchapter II, section 4636, or the National Housing Act, United 152.31 States Code, title 12, chapter 13, sections 1701 to 1750jj; 152.32 (36) benefits from the Trade Act of 1974, United States 152.33 Code, title 19, chapter 12, part 2, sections 2271 to 2322; 152.34 (37) war reparations payments to Japanese Americans and 152.35 Aleuts under United States Code, title 50, sections 1989 to 152.36 1989d; 153.1 (38) payments to veterans or their dependents as a result 153.2 of legal settlements regarding Agent Orange or other chemical 153.3 exposure under Public Law 101-239, section 10405, paragraph 153.4 (a)(2)(E); 153.5 (39) income that is otherwise specifically excluded from 153.6 MFIP consideration in federal law, state law, or federal 153.7 regulation; 153.8 (40) security and utility deposit refunds; 153.9 (41) American Indian tribal land settlements excluded under 153.10 Public Laws 98-123, 98-124, and 99-377 to the Mississippi Band 153.11 Chippewa Indians of White Earth, Leech Lake, and Mille Lacs 153.12 reservations and payments to members of the White Earth Band, 153.13 under United States Code, title 25, chapter 9, section 331, and 153.14 chapter 16, section 1407; 153.15 (42) all income of the minor parent's parents and 153.16 stepparents when determining the grant for the minor parent in 153.17 households that include a minor parent living with parents or 153.18 stepparents on MFIP with other children; 153.19 (43) income of the minor parent's parents and stepparents 153.20 equal to 200 percent of the federal poverty guideline for a 153.21 family size not including the minor parent and the minor 153.22 parent's child in households that include a minor parent living 153.23 with parents or stepparents not on MFIP when determining the 153.24 grant for the minor parent. The remainder of income is deemed 153.25 as specified in section 256J.37, subdivision 1b; 153.26 (44) payments made to children eligible for relative 153.27 custody assistance under section 257.85; 153.28 (45) vendor payments for goods and services made on behalf 153.29 of a client unless the client has the option of receiving the 153.30 payment in cash; and 153.31 (46) the principal portion of a contract for deed payment. 153.32 Sec. 33. Minnesota Statutes 2002, section 256J.21, 153.33 subdivision 3, is amended to read: 153.34 Subd. 3. [INITIAL INCOME TEST.] The county agency shall 153.35 determine initial eligibility by considering all earned and 153.36 unearned income that is not excluded under subdivision 2. To be 154.1 eligible for MFIP, the assistance unit's countable income minus 154.2 the disregards in paragraphs (a) and (b) must be below the 154.3 transitional standard of assistance according to section 256J.24 154.4 for that size assistance unit. 154.5 (a) The initial eligibility determination must disregard 154.6 the following items: 154.7 (1) the employment disregard is 18 percent of the gross 154.8 earned income whether or not the member is working full time or 154.9 part time; 154.10 (2) dependent care costs must be deducted from gross earned 154.11 income for the actual amount paid for dependent care up to a 154.12 maximum of $200 per month for each child less than two years of 154.13 age, and $175 per month for each child two years of age and 154.14 older under this chapter and chapter 119B; 154.15 (3) all payments made according to a court order for 154.16 spousal support or the support of children not living in the 154.17 assistance unit's household shall be disregarded from the income 154.18 of the person with the legal obligation to pay support, provided 154.19 that, if there has been a change in the financial circumstances 154.20 of the person with the legal obligation to pay support since the 154.21 support order was entered, the person with the legal obligation 154.22 to pay support has petitioned for a modification of the support 154.23 order; and 154.24 (4) an allocation for the unmet need of an ineligible 154.25 spouse or an ineligible child under the age of 21 for whom the 154.26 caregiver is financially responsible and who lives with the 154.27 caregiver according to section 256J.36. 154.28 (b) Notwithstanding paragraph (a), when determining initial 154.29 eligibility for applicant units when at least one member has 154.30 received work first orMFIP in this state within four months of 154.31 the most recent application for MFIP, apply the disregard as 154.32 defined in section 256J.08, subdivision 24, for all unit members. 154.33 After initial eligibility is established, the assistance 154.34 payment calculation is based on the monthly income test. 154.35 Sec. 34. Minnesota Statutes 2003 Supplement, section 154.36 256J.24, subdivision 5, is amended to read: 155.1 Subd. 5. [MFIP TRANSITIONAL STANDARD.] The MFIP 155.2 transitional standard is based on the number of persons in the 155.3 assistance unit eligible for both food and cash assistance 155.4 unless the restrictions in subdivision 6 on the birth of a child 155.5 apply. The following table represents the transitional 155.6 standards effective October 1, 20022003. 155.7 Number of Transitional Cash Food 155.8 Eligible People Standard Portion Portion 155.9 1 $370$371: $250 $120$121 155.10 2 $658$661: $437 $221$224 155.11 3 $844$852: $532 $312$320 155.12 4 $998$1,006: $621 $377$385 155.13 5 $1,135$1,146: $697 $438$449 155.14 6 $1,296$1,309: $773 $523$536 155.15 7 $1,414$1,428: $850 $564$578 155.16 8 $1,558$1,572: $916 $642$656 155.17 9 $1,700$1,715: $980 $720$735 155.18 10 $1,836$1,853: $1,035 $801$818 155.19 over 10 add $136$137: $53 $83$84 155.20 per additional member. 155.21 The commissioner shall annually publish in the State 155.22 Register the transitional standard for an assistance unit sizes 155.23 1 to 10 including a breakdown of the cash and food portions. 155.24 Sec. 35. Minnesota Statutes 2003 Supplement, section 155.25 256J.32, subdivision 2, is amended to read: 155.26 Subd. 2. [DOCUMENTATION.] The applicant or participant 155.27 must document the information required under subdivisions 4 to 6 155.28 or authorize the county agency to verify the information. The 155.29 applicant or participant has the burden of providing documentary 155.30 evidence to verify eligibility. The county agency shall assist 155.31 the applicant or participant in obtaining required documents 155.32 when the applicant or participant is unable to do so. The 155.33 county agency may accept an affidavita signed personal 155.34 statement from the applicant or participant only for factors 155.35 specified under subdivision 8. 155.36 Sec. 36. Minnesota Statutes 2003 Supplement, section 156.1 256J.32, subdivision 8, is amended to read: 156.2 Subd. 8. [ AFFIDAVITPERSONAL STATEMENT.] The county agency 156.3 may accept an affidavita signed personal statement from the 156.4 applicant or recipientparticipant explaining the reasons that 156.5 the documentation requested in subdivision 2 is unavailable as 156.6 sufficient documentation at the time of application or, 156.7 recertification, or change related to eligibility only for the 156.8 following factors: 156.9 (1) a claim of family violence if used as a basis to 156.10 qualify for the family violence waiver; 156.11 (2) information needed to establish an exception under 156.12 section 256J.24, subdivision 9; 156.13 (3) relationship of a minor child to caregivers in the 156.14 assistance unit; and156.15 (4) citizenship status from a noncitizen who reports to be, 156.16 or is identified as, a victim of severe forms of trafficking in 156.17 persons, if the noncitizen reports that the noncitizen's 156.18 immigration documents are being held by an individual or group 156.19 of individuals against the noncitizen's will. The noncitizen 156.20 must follow up with the Office of Refugee Resettlement (ORR) to 156.21 pursue certification. If verification that certification is 156.22 being pursued is not received within 30 days, the MFIP case must 156.23 be closed and the agency shall pursue overpayments. The ORR 156.24 documents certifying the noncitizen's status as a victim of 156.25 severe forms of trafficking in persons, or the reason for the 156.26 delay in processing, must be received within 90 days, or the 156.27 MFIP case must be closed and the agency shall pursue 156.28 overpayments; and 156.29 (5) other documentation unavailable for reasons beyond the 156.30 control of the applicant or participant. Reasonable attempts 156.31 must have been made to obtain the documents requested under 156.32 subdivision 2. 156.33 Sec. 37. Minnesota Statutes 2003 Supplement, section 156.34 256J.37, subdivision 9, is amended to read: 156.35 Subd. 9. [UNEARNED INCOME.] (a) The county agency must 156.36 apply unearned income to the MFIP standard of need. When 157.1 determining the amount of unearned income, the county agency 157.2 must deduct the costs necessary to secure payments of unearned 157.3 income. These costs include legal fees, medical fees, and 157.4 mandatory deductions such as federal and state income taxes. 157.5 (b) The county agency must convert unearned income received 157.6 on a periodic basis to monthly amounts by prorating the income 157.7 over the number of months represented by the frequency of the 157.8 payments. The county agency must begin counting the monthly 157.9 amount in the month the periodic payment is received and budget 157.10 it according to the assistance unit's budget cycle. 157.11 Sec. 38. Minnesota Statutes 2002, section 256J.415, is 157.12 amended to read: 157.13 256J.415 [NOTICE OF TIME LIMIT 12 MONTHS PRIOR TO 60-MONTH 157.14 TIME LIMIT EXPIRING.] 157.15 (a) The county agency shall mail a notice to each 157.16 assistance unit when the assistance unit has 12 months of TANF 157.17 assistance remaining and each month thereafter until the 157.18 60-month limit has expired. The notice must be developed by the 157.19 commissioner of human services and must contain information 157.20 about the 60-month limit, the number of months the participant 157.21 has remaining, the hardship extension policy, and any other 157.22 information that the commissioner deems pertinent to an 157.23 assistance unit nearing the 60-month limit. 157.24 (b) For applicants who have less than 12 months remaining 157.25 in the 60-month time limit because the unit previously received 157.26 TANF assistance in Minnesota or another state, the county agency 157.27 shall notify the applicant of the number of months of TANF 157.28 remaining when the application is approved and begin the process 157.29 required in paragraph (a). 157.30 Sec. 39. Minnesota Statutes 2003 Supplement, section 157.31 256J.425, subdivision 1, is amended to read: 157.32 Subdivision 1. [ELIGIBILITY.] (a) To be eligible for a 157.33 hardship extension, a participant in an assistance unit subject 157.34 to the time limit under section 256J.42, subdivision 1, must be 157.35 in compliance in the participant's 60th counted month. For 157.36 purposes of determining eligibility for a hardship extension, a 158.1 participant is in compliance in any month that the participant 158.2 has not been sanctioned. 158.3 (b) If one participant in a two-parent assistance unit is 158.4 determined to be ineligible for a hardship extension, the county 158.5 shall give the assistance unit the option of disqualifying the 158.6 ineligible participant from MFIP. In that case, the assistance 158.7 unit shall be treated as a one-parent assistance unit and the 158.8 assistance unit's MFIP grant shall be calculated using the 158.9 shared household standard under section 256J.08, subdivision 82a. 158.10 (c) Prior to denying an extension, the county must review 158.11 the sanction status and determine whether the sanction is 158.12 appropriate or if good cause exists under section 256J.57. If 158.13 the sanction was inappropriately applied or the participant is 158.14 granted a good cause exception before the end of month 60, the 158.15 participant shall be considered for an extension. 158.16 Sec. 40. Minnesota Statutes 2003 Supplement, section 158.17 256J.425, subdivision 4, is amended to read: 158.18 Subd. 4. [EMPLOYED PARTICIPANTS.] (a) An assistance unit 158.19 subject to the time limit under section 256J.42, subdivision 1, 158.20 is eligible to receive assistance under a hardship extension if 158.21 the participant who reached the time limit belongs to: 158.22 (1) a one-parent assistance unit in which the participant 158.23 is participating in work activities for at least 30 hours per 158.24 week, of which an average of at least 25 hours per week every 158.25 month are spent participating in employment; 158.26 (2) a two-parent assistance unit in which the participants 158.27 are participating in work activities for at least 55 hours per 158.28 week, of which an average of at least 45 hours per week every 158.29 month are spent participating in employment; or 158.30 (3) an assistance unit in which a participant is 158.31 participating in employment for fewer hours than those specified 158.32 in clause (1), and the participant submits verification from a 158.33 qualified professional, in a form acceptable to the 158.34 commissioner, stating that the number of hours the participant 158.35 may work is limited due to illness or disability, as long as the 158.36 participant is participating in employment for at least the 159.1 number of hours specified by the qualified professional. The 159.2 participant must be following the treatment recommendations of 159.3 the qualified professional providing the verification. The 159.4 commissioner shall develop a form to be completed and signed by 159.5 the qualified professional, documenting the diagnosis and any 159.6 additional information necessary to document the functional 159.7 limitations of the participant that limit work hours. If the 159.8 participant is part of a two-parent assistance unit, the other 159.9 parent must be treated as a one-parent assistance unit for 159.10 purposes of meeting the work requirements under this subdivision. 159.11 (b) For purposes of this section, employment means: 159.12 (1) unsubsidized employment under section 256J.49, 159.13 subdivision 13, clause (1); 159.14 (2) subsidized employment under section 256J.49, 159.15 subdivision 13, clause (2); 159.16 (3) on-the-job training under section 256J.49, subdivision 159.17 13, clause (2); 159.18 (4) an apprenticeship under section 256J.49, subdivision 159.19 13, clause (1); 159.20 (5) supported work under section 256J.49, subdivision 13, 159.21 clause (2); 159.22 (6) a combination of clauses (1) to (5); or 159.23 (7) child care under section 256J.49, subdivision 13, 159.24 clause (7), if it is in combination with paid employment. 159.25 (c) If a participant is complying with a child protection 159.26 plan under chapter 260C, the number of hours required under the 159.27 child protection plan count toward the number of hours required 159.28 under this subdivision. 159.29 (d) The county shall provide the opportunity for subsidized 159.30 employment to participants needing that type of employment 159.31 within available appropriations. 159.32 (e) To be eligible for a hardship extension for employed 159.33 participants under this subdivision, a participant must be in 159.34 compliance for at least ten out of the 12 months the participant 159.35 received MFIP immediately preceding the participant's 61st month 159.36 on assistance. If ten or fewer months of eligibility for TANF 160.1 assistance remain at the time the participant from another state 160.2 applies for assistance, the participant must be in compliance 160.3 every month. 160.4 (f) The employment plan developed under section 256J.521, 160.5 subdivision 2, for participants under this subdivision must 160.6 contain at least the minimum number of hours specified in 160.7 paragraph (a) related to employment and work activitiesfor the 160.8 purpose of meeting the requirements for an extension under this 160.9 subdivision. The job counselor and the participant must sign 160.10 the employment plan to indicate agreement between the job 160.11 counselor and the participant on the contents of the plan. 160.12 (g) Participants who fail to meet the requirements in 160.13 paragraph (a), without good cause under section 256J.57, shall 160.14 be sanctioned or permanently disqualified under subdivision 6. 160.15 Good cause may only be granted for that portion of the month for 160.16 which the good cause reason applies. Participants must meet all 160.17 remaining requirements in the approved employment plan or be 160.18 subject to sanction or permanent disqualification. 160.19 (h) If the noncompliance with an employment plan is due to 160.20 the involuntary loss of employment, the participant is exempt 160.21 from the hourly employment requirement under this subdivision 160.22 for one month. Participants must meet all remaining 160.23 requirements in the approved employment plan or be subject to 160.24 sanction or permanent disqualification. This exemption is 160.25 available to aeach participant two times in a 12-month period. 160.26 Sec. 41. Minnesota Statutes 2002, section 256J.425, 160.27 subdivision 5, is amended to read: 160.28 Subd. 5. [ACCRUAL OF CERTAIN EXEMPT MONTHS.] (a) A160.29 participant who received TANF assistance that counted towards160.30 the federal 60-month time limit while the participant160.31 wasParticipants who meet the criteria in clause (1), (2), or (3) 160.32 and who are not eligible for assistance under a hardship 160.33 extension under subdivision 2, paragraph (a), clause (3), shall 160.34 be eligible for a hardship extension for a period of time equal 160.35 to the number of months that were counted toward the federal 160.36 60-month time limit while the participant was: 161.1 (1) a caregiver with a child or an adult in the household 161.2 who meets the disability or medical criteria for home care 161.3 services under section 256B.0627, subdivision 1, paragraph (f), 161.4 or a home and community-based waiver services program under 161.5 chapter 256B, or meets the criteria for severe emotional 161.6 disturbance under section 245.4871, subdivision 6, or for 161.7 serious and persistent mental illness under section 245.462, 161.8 subdivision 20, paragraph (c), who was subject to the 161.9 requirements in section 256J.561, subdivision 2; 161.10 (2) exempt under section 256J.56, paragraph (a), clause 161.11 (7) , from employment and training services requirements and who161.12 is no longer eligible for assistance under a hardship extension161.13 under subdivision 2, paragraph (a), clause (3), is eligible for161.14 assistance under a hardship extension for a period of time equal161.15 to the number of months that were counted toward the federal161.16 60-month time limit while the participant was exempt under161.17 section 256J.56, paragraph (a), clause (7), from the employment161.18 and training services requirements.; or 161.19 (3) exempt under section 256J.56, paragraph (a), clause 161.20 (3), and demonstrates at the time of the case review required 161.21 under section 256J.42, subdivision 6, that the participant met 161.22 the exemption criteria under section 256J.56, paragraph (a), 161.23 clause (7), during one or more months the participant was exempt 161.24 under section 256J.56, paragraph (a), clause (3). Only months 161.25 during which the participant met the criteria under section 161.26 256J.56, paragraph (a), clause (7), shall be considered. 161.27 (b) A participant who received TANF assistance that counted 161.28 towards the federal 60-month time limit while the participant 161.29 met the state time limit exemption criteria under section 161.30 256J.42, subdivision 4 or 5, is eligible for assistance under a 161.31 hardship extension for a period of time equal to the number of 161.32 months that were counted toward the federal 60-month time limit 161.33 while the participant met the state time limit exemption 161.34 criteria under section 256J.42, subdivision 4 or 5. 161.35 (c) A participant who received TANF assistance that counted161.36 towards the federal 60-month time limit while the participant162.1 was exempt under section 256J.56, paragraph (a), clause (3),162.2 from employment and training services requirements, who162.3 demonstrates at the time of the case review required under162.4 section 256J.42, subdivision 6, that the participant met the162.5 exemption criteria under section 256J.56, paragraph (a), clause162.6 (7), during one or more months the participant was exempt under162.7 section 256J.56, paragraph (a), clause (3), before or after July162.8 1, 2002, is eligible for assistance under a hardship extension162.9 for a period of time equal to the number of months that were162.10 counted toward the federal 60-month time limit during the time162.11 the participant met the criteria under section 256J.56,162.12 paragraph (a), clause (7)After the accrued months have been 162.13 exhausted, the county agency must determine if the assistance 162.14 unit is eligible for an extension under another extension 162.15 category in section 256J.425, subdivision 2, 3, or 4. 162.16 (d) At the time of the case review, a county agency must 162.17 explain to the participant the basis for receiving a hardship 162.18 extension based on the accrual of exempt months. The 162.19 participant must provide documentation necessary to enable the 162.20 county agency to determine whether the participant is eligible 162.21 to receive a hardship extension based on the accrual of exempt 162.22 months or authorize a county agency to verify the information. 162.23 (e) While receiving extended MFIP assistance under this 162.24 subdivision, a participant is subject to the MFIP policies that 162.25 apply to participants during the first 60 months of MFIP, unless 162.26 the participant is a member of a two-parent family in which one 162.27 parent is extended under subdivision 3 or 4. For two-parent 162.28 families in which one parent is extended under subdivision 3 or 162.29 4, the sanction provisions in subdivision 6, shall apply. 162.30 Sec. 42. Minnesota Statutes 2003 Supplement, section 162.31 256J.425, subdivision 6, is amended to read: 162.32 Subd. 6. [SANCTIONS FOR EXTENDED CASES.] (a) If one or 162.33 both participants in an assistance unit receiving assistance 162.34 under subdivision 3 or 4 are not in compliance with the 162.35 employment and training service requirements in sections 162.36 256J.521 to 256J.57, the sanctions under this subdivision 163.1 apply. For a first occurrence of noncompliance, an assistance 163.2 unit must be sanctioned under section 256J.46, subdivision 1, 163.3 paragraph (c), clause (1). For a second or third occurrence of 163.4 noncompliance, the assistance unit must be sanctioned under 163.5 section 256J.46, subdivision 1, paragraph (c), clause (2). For 163.6 a fourth occurrence of noncompliance, the assistance unit is 163.7 disqualified from MFIP. If a participant is determined to be 163.8 out of compliance, the participant may claim a good cause 163.9 exception under section 256J.57, however, the participant may 163.10 not claim an exemption under section 256J.56. 163.11 (b) If both participants in a two-parent assistance unit 163.12 are out of compliance at the same time, it is considered one 163.13 occurrence of noncompliance. 163.14 (c) When a parent in an extended two-parent assistance unit 163.15 who has not used 60 months of assistance is out of compliance 163.16 with the employment and training service requirements in 163.17 sections 256J.521 to 256J.57, sanctions must be applied as 163.18 specified in clauses (1) and (2). 163.19 (1) If the assistance unit is receiving assistance under 163.20 subdivision 3 or 4, the assistance unit is subject to the 163.21 sanction policy in this subdivision. 163.22 (2) If the assistance unit is receiving assistance under 163.23 subdivision 2, the assistance unit is subject to the sanction 163.24 policy in section 256J.46. 163.25 (d) If a two-parent assistance unit is extended under 163.26 subdivision 3 or 4, and a parent who has not reached the 163.27 60-month time limit is out of compliance with the employment and 163.28 training services requirements in sections 256J.521 to 256J.57 163.29 when the case is extended, the sanction in the 61st month is 163.30 considered the first sanction for the purposes of applying the 163.31 sanctions in this subdivision, except that the sanction amount 163.32 shall be 30 percent. 163.33 Sec. 43. Minnesota Statutes 2003 Supplement, section 163.34 256J.46, subdivision 1, is amended to read: 163.35 Subdivision 1. [PARTICIPANTS NOT COMPLYING WITH PROGRAM 163.36 REQUIREMENTS.] (a) A participant who fails without good cause 164.1 under section 256J.57 to comply with the requirements of this 164.2 chapter, and who is not subject to a sanction under subdivision 164.3 2, shall be subject to a sanction as provided in this 164.4 subdivision. Prior to the imposition of a sanction, a county 164.5 agency shall provide a notice of intent to sanction under 164.6 section 256J.57, subdivision 2, and, when applicable, a notice 164.7 of adverse action as provided in section 256J.31. 164.8 (b) A sanction under this subdivision becomes effective the 164.9 month following the month in which a required notice is given. 164.10 A sanction must not be imposed when a participant comes into 164.11 compliance with the requirements for orientation under section 164.12 256J.45 prior to the effective date of the sanction. A sanction 164.13 must not be imposed when a participant comes into compliance 164.14 with the requirements for employment and training services under 164.15 sections 256J.515 to 256J.57 ten days prior to the effective 164.16 date of the sanction. For purposes of this subdivision, each 164.17 month that a participant fails to comply with a requirement of 164.18 this chapter shall be considered a separate occurrence of 164.19 noncompliance. If both participants in a two-parent assistance 164.20 unit are out of compliance at the same time, it is considered 164.21 one occurrence of noncompliance. 164.22 (c) Sanctions for noncompliance shall be imposed as follows: 164.23 (1) For the first occurrence of noncompliance by a 164.24 participant in an assistance unit, the assistance unit's grant 164.25 shall be reduced by ten percent of the MFIP standard of need for 164.26 an assistance unit of the same size with the residual grant paid 164.27 to the participant. The reduction in the grant amount must be 164.28 in effect for a minimum of one month and shall be removed in the 164.29 month following the month that the participant returns to 164.30 compliance. 164.31 (2) For a second, third, fourth, fifth, or sixth occurrence 164.32 of noncompliance by a participant in an assistance unit, the 164.33 assistance unit's shelter costs shall be vendor paid up to the 164.34 amount of the cash portion of the MFIP grant for which the 164.35 assistance unit is eligible. At county option, the assistance 164.36 unit's utilities may also be vendor paid up to the amount of the 165.1 cash portion of the MFIP grant remaining after vendor payment of 165.2 the assistance unit's shelter costs. The residual amount of the 165.3 grant after vendor payment, if any, must be reduced by an amount 165.4 equal to 30 percent of the MFIP standard of need for an 165.5 assistance unit of the same size before the residual grant is 165.6 paid to the assistance unit. The reduction in the grant amount 165.7 must be in effect for a minimum of one month and shall be 165.8 removed in the month following the month that the participant in 165.9 a one-parent assistance unit returns to compliance. In a 165.10 two-parent assistance unit, the grant reduction must be in 165.11 effect for a minimum of one month and shall be removed in the 165.12 month following the month both participants return to 165.13 compliance. The vendor payment of shelter costs and, if 165.14 applicable, utilities shall be removed six months after the 165.15 month in which the participant or participants return to 165.16 compliance. If an assistance unit is sanctioned under this 165.17 clause, the participant's case file must be reviewed to 165.18 determine if the employment plan is still appropriate. 165.19 (d) For a seventh occurrence of noncompliance by a 165.20 participant in an assistance unit, or when the participants in a 165.21 two-parent assistance unit have a total of seven occurrences of 165.22 noncompliance, the county agency shall close the MFIP assistance 165.23 unit's financial assistance case, both the cash and food 165.24 portions, and redetermine the family's continued eligibility for 165.25 food support payments. The MFIP case must remain closed for a 165.26 minimum of one full month. Closure under this paragraph does165.27 not make a participant automatically ineligible for food165.28 support, if otherwise eligible.Before the case is closed, the 165.29 county agency must review the participant's case to determine if 165.30 the employment plan is still appropriate and attempt to meet 165.31 with the participant face-to-face. The participant may bring an 165.32 advocate to the face-to-face meeting. If a face-to-face meeting 165.33 is not conducted, the county agency must send the participant a 165.34 written notice that includes the information required under 165.35 clause (1). 165.36 (1) During the face-to-face meeting, the county agency must: 166.1 (i) determine whether the continued noncompliance can be 166.2 explained and mitigated by providing a needed preemployment 166.3 activity, as defined in section 256J.49, subdivision 13, clause 166.4 (9); 166.5 (ii) determine whether the participant qualifies for a good 166.6 cause exception under section 256J.57, or if the sanction is for 166.7 noncooperation with child support requirements, determine if the 166.8 participant qualifies for a good cause exemption under section 166.9 256.741, subdivision 10; 166.10 (iii) determine whether the participant qualifies for an 166.11 exemption under section 256J.56 or the work activities in the 166.12 employment plan are appropriate based on the criteria in section 166.13 256J.521, subdivision 2 or 3; 166.14 (iv) determine whether the participant qualifies for the 166.15 family violence waiver; 166.16 (v) inform the participant of the participant's sanction 166.17 status and explain the consequences of continuing noncompliance; 166.18 (vi) identify other resources that may be available to the 166.19 participant to meet the needs of the family; and 166.20 (vii) inform the participant of the right to appeal under 166.21 section 256J.40. 166.22 (2) If the lack of an identified activity or service can 166.23 explain the noncompliance, the county must work with the 166.24 participant to provide the identified activity. 166.25 (3) The grant must be restored to the full amount for which 166.26 the assistance unit is eligible retroactively to the first day 166.27 of the month in which the participant was found to lack 166.28 preemployment activities or to qualify for an exemption under 166.29 section 256J.56, a family violence waiver, or for a good cause 166.30 exemption under section 256.741, subdivision 10, or 256J.57. 166.31 (e) For the purpose of applying sanctions under this 166.32 section, only occurrences of noncompliance that occur after July 166.33 1, 2003, shall be considered. If the participant is in 30 166.34 percent sanction in the month this section takes effect, that 166.35 month counts as the first occurrence for purposes of applying 166.36 the sanctions under this section, but the sanction shall remain 167.1 at 30 percent for that month. 167.2 (f) An assistance unit whose case is closed under paragraph 167.3 (d) or (g), may reapply for MFIP and shall be eligible if the 167.4 participant complies with MFIP program requirements and 167.5 demonstrates compliance for up to one month. No assistance 167.6 shall be paid during this period. 167.7 (g) An assistance unit whose case has been closed for 167.8 noncompliance, that reapplies under paragraph (f), is subject to 167.9 sanction under paragraph (c), clause (2), for a first occurrence 167.10 of noncompliance. Any subsequent occurrence of noncompliance 167.11 shall result in case closure under paragraph (d). 167.12 Sec. 44. Minnesota Statutes 2003 Supplement, section 167.13 256J.49, subdivision 4, is amended to read: 167.14 Subd. 4. [EMPLOYMENT AND TRAINING SERVICE PROVIDER.] 167.15 "Employment and training service provider" means: 167.16 (1) a public, private, or nonprofit employment and training167.17 agency certified by the commissioner of economic security under167.18 sections 268.0122, subdivision 3, and 268.871, subdivision 1, or167.19 is approved under section 256J.51 and is included in the county167.20 service agreement submitted under section 256J.626, subdivision167.21 4;167.22 (2)a public, private, or nonprofit agency that is not167.23 certified by the commissioner under clause (1), butwith which a 167.24 county has contracted to provide employment and training 167.25 services and which is included in the county's service agreement 167.26 submitted under section 256J.626, subdivision 4; or 167.27 (3)(2) a county agency, if the county has opted to provide 167.28 employment and training services and the county has indicated 167.29 that fact in the service agreement submitted under section 167.30 256J.626, subdivision 4. 167.31 Notwithstanding section 268.871, an employment and training 167.32 services provider meeting this definition may deliver employment 167.33 and training services under this chapter. 167.34 Sec. 45. Minnesota Statutes 2003 Supplement, section 167.35 256J.515, is amended to read: 167.36 256J.515 [OVERVIEW OF EMPLOYMENT AND TRAINING SERVICES.] 168.1 During the first meeting with participants, job counselors 168.2 must ensure that an overview of employment and training services 168.3 is provided that: 168.4 (1) stresses the necessity and opportunity of immediate 168.5 employment; 168.6 (2) outlines the job search resources offered; 168.7 (3) outlines education or training opportunities available; 168.8 (4) describes the range of work activities, including 168.9 activities under section 256J.49, subdivision 13, clause (18), 168.10 that are allowable under MFIP to meet the individual needs of 168.11 participants; 168.12 (5) explains the requirements to comply with an employment 168.13 plan; 168.14 (6) explains the consequences for failing to comply; 168.15 (7) explains the services that are available to support job 168.16 search and work and education; and 168.17 (8) provides referral information about shelters and 168.18 programs for victims of family violence ,and the time limit 168.19 exemption , and waivers of regular employment and training168.20 requirementsfor family violence victims. 168.21 Failure to attend the overview of employment and training 168.22 services without good cause results in the imposition of a 168.23 sanction under section 256J.46. 168.24 An applicant who requests and qualifies for a family 168.25 violence waiver is exempt from attending a group overview. 168.26 Information usually presented in an overview must be covered 168.27 during the development of an employment plan under section 168.28 256J.521, subdivision 3. 168.29 Sec. 46. Minnesota Statutes 2003 Supplement, section 168.30 256J.521, subdivision 1, is amended to read: 168.31 Subdivision 1. [ASSESSMENTS.] (a) For purposes of MFIP 168.32 employment services, assessment is a continuing process of 168.33 gathering information related to employability for the purpose 168.34 of identifying both participant's strengths and strategies for 168.35 coping with issues that interfere with employment. The job 168.36 counselor must use information from the assessment process to 169.1 develop and update the employment plan under subdivision 2 or 3, 169.2 as appropriate, and to determine whether the participant 169.3 qualifies for a family violence waiver including an employment 169.4 plan under subdivision 3. 169.5 (b) The scope of assessment must cover at least the 169.6 following areas: 169.7 (1) basic information about the participant's ability to 169.8 obtain and retain employment, including: a review of the 169.9 participant's education level; interests, skills, and abilities; 169.10 prior employment or work experience; transferable work skills; 169.11 child care and transportation needs; 169.12 (2) identification of personal and family circumstances 169.13 that impact the participant's ability to obtain and retain 169.14 employment, including: any special needs of the children, the 169.15 level of English proficiency, family violence issues, and any 169.16 involvement with social services or the legal system; 169.17 (3) the results of a mental and chemical health screening 169.18 tool designed by the commissioner and results of the brief 169.19 screening tool for special learning needs. Screening tools for 169.20 mental and chemical health and special learning needs must be 169.21 approved by the commissioner and may only be administered by job 169.22 counselors or county staff trained in using such screening 169.23 tools. The commissioner shall work with county agencies to 169.24 develop protocols for referrals and follow-up actions after 169.25 screens are administered to participants, including guidance on 169.26 how employment plans may be modified based upon outcomes of 169.27 certain screens. Participants must be told of the purpose of 169.28 the screens and how the information will be used to assist the 169.29 participant in identifying and overcoming barriers to 169.30 employment. Screening for mental and chemical health and 169.31 special learning needs must be completed by participants who are 169.32 unable to find suitable employment after six weeks of job search 169.33 under subdivision 2, paragraph (b), and participants who are 169.34 determined to have barriers to employment under subdivision 2, 169.35 paragraph (d). Failure to complete the screens will result in 169.36 sanction under section 256J.46; and 170.1 (4) a comprehensive review of participation and progress 170.2 for participants who have received MFIP assistance and have not 170.3 worked in unsubsidized employment during the past 12 months. 170.4 The purpose of the review is to determine the need for 170.5 additional services and supports, including placement in 170.6 subsidized employment or unpaid work experience under section 170.7 256J.49, subdivision 13. 170.8 (c) Information gathered during a caregiver's participation 170.9 in the diversionary work program under section 256J.95 must be 170.10 incorporated into the assessment process. 170.11 (d) The job counselor may require the participant to 170.12 complete a professional chemical use assessment to be performed 170.13 according to the rules adopted under section 254A.03, 170.14 subdivision 3, including provisions in the administrative rules 170.15 which recognize the cultural background of the participant, or a 170.16 professional psychological assessment as a component of the 170.17 assessment process, when the job counselor has a reasonable 170.18 belief, based on objective evidence, that a participant's 170.19 ability to obtain and retain suitable employment is impaired by 170.20 a medical condition. The job counselor may assist the 170.21 participant with arranging services, including child care 170.22 assistance and transportation, necessary to meet needs 170.23 identified by the assessment. Data gathered as part of a 170.24 professional assessment must be classified and disclosed 170.25 according to the provisions in section 13.46. 170.26 Sec. 47. Minnesota Statutes 2003 Supplement, section 170.27 256J.521, subdivision 2, is amended to read: 170.28 Subd. 2. [EMPLOYMENT PLAN; CONTENTS.] (a) Based on the 170.29 assessment under subdivision 1, the job counselor and the 170.30 participant must develop an employment plan that includes 170.31 participation in activities and hours that meet the requirements 170.32 of section 256J.55, subdivision 1. The purpose of the 170.33 employment plan is to identify for each participant the most 170.34 direct path to unsubsidized employment and any subsequent steps 170.35 that support long-term economic stability. The employment plan 170.36 should be developed using the highest level of activity 171.1 appropriate for the participant. Activities must be chosen from 171.2 clauses (1) to (6), which are listed in order of preference. 171.3 Notwithstanding this order of preference for activities, 171.4 priority must be given for activities related to a family 171.5 violence waiver when developing the employment plan. The 171.6 employment plan must also list the specific steps the 171.7 participant will take to obtain employment, including steps 171.8 necessary for the participant to progress from one level of 171.9 activity to another, and a timetable for completion of each 171.10 step. Levels of activity include: 171.11 (1) unsubsidized employment; 171.12 (2) job search; 171.13 (3) subsidized employment or unpaid work experience; 171.14 (4) unsubsidized employment and job readiness education or 171.15 job skills training; 171.16 (5) unsubsidized employment or unpaid work experience and 171.17 activities related to a family violence waiver or preemployment 171.18 needs; and 171.19 (6) activities related to a family violence waiver or 171.20 preemployment needs. 171.21 (b) Participants who are determined to possess sufficient 171.22 skills such that the participant is likely to succeed in 171.23 obtaining unsubsidized employment must job search at least 30 171.24 hours per week for up to six weeks and accept any offer of 171.25 suitable employment. The remaining hours necessary to meet the 171.26 requirements of section 256J.55, subdivision 1, may be met 171.27 through participation in other work activities under section 171.28 256J.49, subdivision 13. The participant's employment plan must 171.29 specify, at a minimum: (1) whether the job search is supervised 171.30 or unsupervised; (2) support services that will be provided; and 171.31 (3) how frequently the participant must report to the job 171.32 counselor. Participants who are unable to find suitable 171.33 employment after six weeks must meet with the job counselor to 171.34 determine whether other activities in paragraph (a) should be 171.35 incorporated into the employment plan. Job search activities 171.36 which are continued after six weeks must be structured and 172.1 supervised. 172.2 (c) Beginning July 1, 2004, activities and hourly 172.3 requirements in the employment plan may be adjusted as necessary 172.4 to accommodate the personal and family circumstances of 172.5 participants identified under section 256J.561, subdivision 2, 172.6 paragraph (d). Participants who no longer meet the provisions 172.7 of section 256J.561, subdivision 2, paragraph (d), must meet 172.8 with the job counselor within ten days of the determination to 172.9 revise the employment plan. 172.10 (d) Participants who are determined to have barriers to 172.11 obtaining or retaining employment that will not be overcome 172.12 during six weeks of job search under paragraph (b) must work 172.13 with the job counselor to develop an employment plan that 172.14 addresses those barriers by incorporating appropriate activities 172.15 from paragraph (a), clauses (1) to (6). The employment plan 172.16 must include enough hours to meet the participation requirements 172.17 in section 256J.55, subdivision 1, unless a compelling reason to 172.18 require fewer hours is noted in the participant's file. 172.19 (e) The job counselor and the participant must sign the 172.20 employment plan to indicate agreement on the contents. Failure 172.21 to develop or comply with activities in the plan, or voluntarily 172.22 quitting suitable employment without good cause, will result in 172.23 the imposition of a sanction under section 256J.46. 172.24 (f) Employment plans must be reviewed at least every three 172.25 months to determine whether activities and hourly requirements 172.26 should be revised. 172.27 Sec. 48. Minnesota Statutes 2003 Supplement, section 172.28 256J.53, subdivision 2, is amended to read: 172.29 Subd. 2. [APPROVAL OF POSTSECONDARY EDUCATION OR 172.30 TRAINING.] (a) In order for a postsecondary education or 172.31 training program to be an approved activity in an employment 172.32 plan, the participant must be working in unsubsidized employment 172.33 at least 20 hours per week. 172.34 (b) Participants seeking approval of a postsecondary 172.35 education or training plan must provide documentation that: 172.36 (1) the employment goal can only be met with the additional 173.1 education or training; 173.2 (2) there are suitable employment opportunities that 173.3 require the specific education or training in the area in which 173.4 the participant resides or is willing to reside; 173.5 (3) the education or training will result in significantly 173.6 higher wages for the participant than the participant could earn 173.7 without the education or training; 173.8 (4) the participant can meet the requirements for admission 173.9 into the program; and 173.10 (5) there is a reasonable expectation that the participant 173.11 will complete the training program based on such factors as the 173.12 participant's MFIP assessment, previous education, training, and 173.13 work history; current motivation; and changes in previous 173.14 circumstances. 173.15 (c) The hourly unsubsidized employment requirement may be173.16 reduceddoes not apply for intensive education or training 173.17 programs lasting 12 weeks or less when full-time attendance is 173.18 required. 173.19 (d) Participants with an approved employment plan in place 173.20 on July 1, 2003, which includes more than 12 months of 173.21 postsecondary education or training shall be allowed to complete 173.22 that plan provided that hourly requirements in section 256J.55, 173.23 subdivision 1, and conditions specified in paragraph (b), and 173.24 subdivisions 3 and 5 are met. A participant whose case is 173.25 subsequently closed for three months or less for reasons other 173.26 than noncompliance with program requirements and who return to 173.27 MFIP shall be allowed to complete that plan provided that hourly 173.28 requirements in section 256J.55, subdivision 1, and conditions 173.29 specified in paragraph (b) and subdivisions 3 and 5 are met. 173.30 Sec. 49. Minnesota Statutes 2003 Supplement, section 173.31 256J.56, is amended to read: 173.32 256J.56 [EMPLOYMENT AND TRAINING SERVICES COMPONENT; 173.33 EXEMPTIONS.] 173.34 (a) An MFIPParagraphs (b) and (c) apply only to an MFIP 173.35 participant who was exempt from participating in employment 173.36 services as of June 30, 2004, has not been required to develop 174.1 an employment plan under section 256J.561, and continues to 174.2 qualify for an exemption under this section. All exemptions 174.3 under this section expire at the time of the participant's 174.4 recertification. No new exemptions shall be granted under this 174.5 section after June 30, 2004. 174.6 (b) A participant is exempt from the requirements of 174.7 sections 256J.515 to 256J.57 if the participant belongs174.8 continues to belong to any of the following groups: 174.9 (1) participants who are age 60 or older; 174.10 (2) participants who are suffering from a permanent or 174.11 temporary illness, injury, or incapacity which has been 174.12 certified by a qualified professional when the illness, injury, 174.13 or incapacity is expected to continue for more than 30 days and 174.14 prevents the person from obtaining or retaining employment. 174.15 Persons in this category with a temporary illness, injury, or 174.16 incapacity must be reevaluated at least quarterly; 174.17 (3) participants whose presence in the home is required as 174.18 a caregiver because of the illness, injury, or incapacity of 174.19 another member in the assistance unit, a relative in the 174.20 household, or a foster child in the household when the illness 174.21 or incapacity and the need for a person to provide assistance in 174.22 the home has been certified by a qualified professional and is 174.23 expected to continue for more than 30 days; 174.24 (4) women who are pregnant, if the pregnancy has resulted 174.25 in an incapacity that prevents the woman from obtaining or 174.26 retaining employment, and the incapacity has been certified by a 174.27 qualified professional; 174.28 (5) caregivers of a child under the age of one year who 174.29 personally provide full-time care for the child. This exemption 174.30 may be used for only 12 months in a lifetime. In two-parent 174.31 households, only one parent or other relative may qualify for 174.32 this exemption; 174.33 (6) participants experiencing a personal or family crisis 174.34 that makes them incapable of participating in the program, as 174.35 determined by the county agency. If the participant does not 174.36 agree with the county agency's determination, the participant 175.1 may seek certification from a qualified professional, as defined 175.2 in section 256J.08, that the participant is incapable of 175.3 participating in the program. 175.4 Persons in this exemption category must be reevaluated 175.5 every 60 days. A personal or family crisis related to family 175.6 violence, as determined by the county or a job counselor with 175.7 the assistance of a person trained in domestic violence, should 175.8 not result in an exemption, but should be addressed through the 175.9 development or revision of an employment plan under section 175.10 256J.521, subdivision 3; or 175.11 (7) caregivers with a child or an adult in the household 175.12 who meets the disability or medical criteria for home care 175.13 services under section 256B.0627, subdivision 1, paragraph (f), 175.14 or a home and community-based waiver services program under 175.15 chapter 256B, or meets the criteria for severe emotional 175.16 disturbance under section 245.4871, subdivision 6, or for 175.17 serious and persistent mental illness under section 245.462, 175.18 subdivision 20, paragraph (c). Caregivers in this exemption 175.19 category are presumed to be prevented from obtaining or 175.20 retaining employment. 175.21 A caregiver who is exempt under clause (5) must enroll in 175.22 and attend an early childhood and family education class, a 175.23 parenting class, or some similar activity, if available, during 175.24 the period of time the caregiver is exempt under this section. 175.25 Notwithstanding section 256J.46, failure to attend the required 175.26 activity shall not result in the imposition of a sanction. 175.27 (b)(c) The county agency must provide employment and 175.28 training services to MFIP participants who are exempt under this 175.29 section, but who volunteer to participate. Exempt volunteers 175.30 may request approval for any work activity under section 175.31 256J.49, subdivision 13. The hourly participation requirements 175.32 for nonexempt participants under section 256J.55, subdivision 1, 175.33 do not apply to exempt participants who volunteer to participate. 175.34 (c)(d) This section expires on June 30, 20042005. 175.35 Sec. 50. Minnesota Statutes 2003 Supplement, section 175.36 256J.57, subdivision 1, is amended to read: 176.1 Subdivision 1. [GOOD CAUSE FOR FAILURE TO COMPLY.] The 176.2 county agency shall not impose the sanction under section 176.3 256J.46 if it determines that the participant has good cause for 176.4 failing to comply with the requirements of sections 256J.515 to 176.5 256J.57. Good cause exists when: 176.6 (1) appropriate child care is not available; 176.7 (2) the job does not meet the definition of suitable 176.8 employment; 176.9 (3) the participant is ill or injured; 176.10 (4) a member of the assistance unit, a relative in the 176.11 household, or a foster child in the household is ill and needs 176.12 care by the participant that prevents the participant from 176.13 complying with the employment plan; 176.14 (5) the parental caregiverparticipant is unable to secure 176.15 necessary transportation; 176.16 (6) the parental caregiverparticipant is in an emergency 176.17 situation that prevents compliance with the employment plan; 176.18 (7) the schedule of compliance with the employment plan 176.19 conflicts with judicial proceedings; 176.20 (8) a mandatory MFIP meeting is scheduled during a time 176.21 that conflicts with a judicial proceeding or a meeting related 176.22 to a juvenile court matter, or a participant's work schedule; 176.23 (9) the parental caregiverparticipant is already 176.24 participating in acceptable work activities; 176.25 (10) the employment plan requires an educational program 176.26 for a caregiver under age 20, but the educational program is not 176.27 available; 176.28 (11) activities identified in the employment plan are not 176.29 available; 176.30 (12) the parental caregiverparticipant is willing to 176.31 accept suitable employment, but suitable employment is not 176.32 available; or 176.33 (13) the parental caregiverparticipant documents other 176.34 verifiable impediments to compliance with the employment plan 176.35 beyond the parental caregiver'sparticipant's control. 176.36 The job counselor shall work with the participant to 177.1 reschedule mandatory meetings for individuals who fall under 177.2 clauses (1), (3), (4), (5), (6), (7), and (8). 177.3 Sec. 51. Minnesota Statutes 2003 Supplement, section 177.4 256J.626, subdivision 2, is amended to read: 177.5 Subd. 2. [ALLOWABLE EXPENDITURES.] (a) The commissioner 177.6 must restrict expenditures under the consolidated fund to 177.7 benefits and services allowed under title IV-A of the federal 177.8 Social Security Act. Allowable expenditures under the 177.9 consolidated fund may include, but are not limited to: 177.10 (1) short-term, nonrecurring shelter and utility needs that 177.11 are excluded from the definition of assistance under Code of 177.12 Federal Regulations, title 45, section 260.31, for families who 177.13 meet the residency requirement in section 256J.12, subdivisions 177.14 1 and 1a. Payments under this subdivision are not considered 177.15 TANF cash assistance and are not counted towards the 60-month 177.16 time limit; 177.17 (2) transportation needed to obtain or retain employment or 177.18 to participate in other approved work activities; 177.19 (3) direct and administrative costs of staff to deliver 177.20 employment services for MFIP or the diversionary work program, 177.21 to administer financial assistance, and to provide specialized 177.22 services intended to assist hard-to-employ participants to 177.23 transition to work; 177.24 (4) costs of education and training including functional 177.25 work literacy and English as a second language; 177.26 (5) cost of work supports including tools, clothing, boots, 177.27 and other work-related expenses; 177.28 (6) county administrative expenses as defined in Code of 177.29 Federal Regulations, title 45, section 260(b); 177.30 (7) services to parenting and pregnant teens; 177.31 (8) supported work; 177.32 (9) wage subsidies; 177.33 (10) child care needed for MFIP or diversionary work 177.34 program participants to participate in social services; 177.35 (11) child care to ensure that families leaving MFIP or 177.36 diversionary work program will continue to receive child care 178.1 assistance from the time the family no longer qualifies for 178.2 transition year child care until an opening occurs under the 178.3 basic sliding fee child care program; and 178.4 (12) services to help noncustodial parents who live in 178.5 Minnesota and have minor children receiving MFIP or DWP 178.6 assistance, but do not live in the same household as the child, 178.7 obtain or retain employment. 178.8 (b) Administrative costs that are not matched with county 178.9 funds as provided in subdivision 8 may not exceed 7.5 percent of 178.10 a county's or 15 percent of a tribe's reimbursementallocation 178.11 under this section. The commissioner shall define 178.12 administrative costs for purposes of this subdivision. 178.13 Sec. 52. Minnesota Statutes 2003 Supplement, section 178.14 256J.626, subdivision 6, is amended to read: 178.15 Subd. 6. [BASE ALLOCATION TO COUNTIES AND TRIBES.] (a) For 178.16 purposes of this section, the following terms have the meanings 178.17 given them: 178.18 (1) "2002 historic spending base" means the commissioner's 178.19 determination of the sum of the reimbursement related to fiscal 178.20 year 2002 of county or tribal agency expenditures for the base 178.21 programs listed in clause (4), items (i) through (iv), and 178.22 earnings related to calendar year 2002 in the base program 178.23 listed in clause (4), item (v), and the amount of spending in 178.24 fiscal year 2002 in the base program listed in clause (4), item 178.25 (vi), issued to or on behalf of persons residing in the county 178.26 or tribal service delivery area. 178.27 (2) "Initial allocation" means the amount potentially 178.28 available to each county or tribe based on the formula in 178.29 paragraphs (b) through (d). 178.30 (3) "Final allocation" means the amount available to each 178.31 county or tribe based on the formula in paragraphs (b) through 178.32 (d), after adjustment by subdivision 7. 178.33 (4) "Base programs" means the: 178.34 (i) MFIP employment and training services under Minnesota 178.35 Statutes 2002, section 256J.62, subdivision 1, in effect June 178.36 30, 2002; 179.1 (ii) bilingual employment and training services to refugees 179.2 under Minnesota Statutes 2002, section 256J.62, subdivision 6, 179.3 in effect June 30, 2002; 179.4 (iii) work literacy language programs under Minnesota 179.5 Statutes 2002, section 256J.62, subdivision 7, in effect June 179.6 30, 2002; 179.7 (iv) supported work program authorized in Laws 2001, First 179.8 Special Session chapter 9, article 17, section 2, in effect June 179.9 30, 2002; 179.10 (v) administrative aid program under section 256J.76 in 179.11 effect December 31, 2002; and 179.12 (vi) emergency assistance program under Minnesota Statutes 179.13 2002, section 256J.48, in effect June 30, 2002. 179.14 (b)(1) Beginning July 1, 2003, the commissioner shall 179.15 determine the initial allocation of funds available under this 179.16 section according to clause (2). 179.17 (2) All of the funds available for the period beginning 179.18 July 1, 2003, and ending December 31, 2004, shall be allocated 179.19 to each county or tribe in proportion to the county's or tribe's 179.20 share of the statewide 2002 historic spending base. 179.21 (c) For calendar year 2005, the commissioner shall 179.22 determine the initial allocation of funds to be made available 179.23 under this section in proportion to the county or tribe's 179.24 initial allocation for the period of July 1, 2003, to December 179.25 31, 2004. 179.26 (d) The formula under this subdivision sunsets December 31, 179.27 2005. 179.28 (e) Before November 30, 2003, a county or tribe may ask for179.29 a review of the commissioner's determination of the historic179.30 base spending when the county or tribe believes the 2002179.31 information was inaccurate or incomplete. By January 1, 2004,179.32 the commissioner must adjust that county's or tribe's base when179.33 the commissioner has determined that inaccurate or incomplete179.34 information was used to develop that base. The commissioner179.35 shall adjust each county's or tribe's initial allocation under179.36 paragraph (c) and final allocation under subdivision 7 to180.1 reflect the base changeWith the commencement of a new or 180.2 expanded tribal TANF program or an agreement under section 180.3 256.01, subdivision 2, paragraph (g), in which some or all of 180.4 the responsibilities of particular counties under this section 180.5 are transferred to a tribe, the commissioner shall: 180.6 (1) in the case where all responsibilities under this 180.7 section are transferred to a tribal program, determine the 180.8 percentage of the county's current caseload that is transferring 180.9 to a tribal program and adjust the affected county's allocation 180.10 accordingly; and 180.11 (2) in the case where a portion of the responsibilities 180.12 under this section are transferred to a tribal program, the 180.13 commissioner shall consult with the affected county or counties 180.14 to determine an appropriate adjustment to the allocation. 180.15 (f) Effective January 1, 2005, counties and tribes will 180.16 have their final allocations adjusted based on the performance 180.17 provisions of subdivision 7. 180.18 Sec. 53. Minnesota Statutes 2003 Supplement, section 180.19 256J.626, subdivision 7, is amended to read: 180.20 Subd. 7. [PERFORMANCE BASE FUNDS.] (a) Beginning calendar 180.21 year 2005, each county and tribe will be allocated 95 percent of 180.22 their initial calendar year 2005allocation. Counties and 180.23 tribes will be allocated additional funds based on performance 180.24 as follows: 180.25 (1) for calendar year 2005, a county or tribe that achieves 180.26 a 5030 percent rate or higher on the MFIP participation rate 180.27 under section 256J.751, subdivision 2, clause (8), as averaged 180.28 across the four quarterly measurements for the most recent year 180.29 for which the measurements are available, will receive an 180.30 additional allocation equal to 2.5 percent of its initial 180.31 allocation; and 180.32 (2) for calendar year 2006, a county or tribe that achieves 180.33 a 40 percent rate or a five percentage point improvement over 180.34 the previous year's MFIP participation rate under section 180.35 256J.751, subdivision 2, clause (8), as averaged across the four 180.36 quarterly measurements for the most recent year for which the 181.1 measurements are available, will receive an additional 181.2 allocation equal to 2.5 percent of its initial allocation; and 181.3 (3) for calendar year 2007, a county or tribe that achieves 181.4 a 50 percent rate or a five percentage point improvement over 181.5 the previous year's MFIP participation rate under section 181.6 256J.751, subdivision 2, clause (8), as averaged across the four 181.7 quarterly measurements for the most recent year for which the 181.8 measurements are available, will receive an additional 181.9 allocation equal to 2.5 percent of its initial allocation; and 181.10 (4) for calendar year 2008 and yearly thereafter, a county 181.11 or tribe that achieves a 50 percent MFIP participation rate 181.12 under section 256J.751, subdivision 2, clause (8), as averaged 181.13 across the four quarterly measurements for the most recent year 181.14 for which the measurements are available, will receive an 181.15 additional allocation equal to 2.5 percent of its initial 181.16 allocation; and 181.17 (5) for calendar years 2005 and thereafter, a county or 181.18 tribe that performs above the top of its range of expected 181.19 performance on the three-year self-support index under section 181.20 256J.751, subdivision 2, clause (7), in both measurements in the 181.21 preceding year will receive an additional allocation equal to 181.22 five percent of its initial allocation; or 181.23 (3)(6) for calendar years 2005 and thereafter, a county or 181.24 tribe that performs within its range of expected performance on 181.25 the three-year self-support index under section 256J.751, 181.26 subdivision 2, clause (7), in both measurements in the preceding 181.27 year, or above the top of its range of expected performance in 181.28 one measurement and within its expected range of performance in 181.29 the other measurement, will receive an additional allocation 181.30 equal to 2.5 percent of its initial allocation. 181.31 (b) Funds remaining unallocated after the performance-based 181.32 allocations in paragraph (a) are available to the commissioner 181.33 for innovation projects under subdivision 5. 181.34 (c)(1) If available funds are insufficient to meet county 181.35 and tribal allocations under paragraph (a), the commissioner may 181.36 make available for allocation funds that are unobligated and 182.1 available from the innovation projects through the end of the 182.2 current biennium. 182.3 (2) If after the application of clause (1) funds remain 182.4 insufficient to meet county and tribal allocations under 182.5 paragraph (a), the commissioner must proportionally reduce the 182.6 allocation of each county and tribe with respect to their 182.7 maximum allocation available under paragraph (a). 182.8 Sec. 54. Minnesota Statutes 2003 Supplement, section 182.9 256J.751, subdivision 2, is amended to read: 182.10 Subd. 2. [QUARTERLY COMPARISON REPORT.] The commissioner 182.11 shall report quarterly to all counties on each county's 182.12 performance on the following measures: 182.13 (1) percent of MFIP caseload working in paid employment; 182.14 (2) percent of MFIP caseload receiving only the food 182.15 portion of assistance; 182.16 (3) number of MFIP cases that have left assistance; 182.17 (4) federal participation requirements as specified in 182.18 Title 1 of Public Law 104-193; 182.19 (5) median placement wage rate; 182.20 (6) caseload by months of TANF assistance; 182.21 (7) percent of MFIP and diversionary work program (DWP) 182.22 cases off cash assistance or working 30 or more hours per week 182.23 at one-year, two-year, and three-year follow-up points from a 182.24 baseline quarter. This measure is called the self-support 182.25 index. Twice annually, the commissioner shall report an 182.26 expected range of performance for each county, county grouping, 182.27 and tribe on the self-support index. The expected range shall 182.28 be derived by a statistical methodology developed by the 182.29 commissioner in consultation with the counties and tribes. The 182.30 statistical methodology shall control differences across 182.31 counties in economic conditions and demographics of the MFIP and 182.32 DWP case load; and 182.33 (8) the MFIP work participation rate, defined as the 182.34 participation requirements specified in title 1 of Public Law 182.35 104-193 applied to all MFIP cases except child only cases and 182.36 cases exempt under section 256J.56. 183.1 Sec. 55. Minnesota Statutes 2003 Supplement, section 183.2 256J.95, subdivision 1, is amended to read: 183.3 Subdivision 1. [ESTABLISHING A DIVERSIONARY WORK PROGRAM 183.4 (DWP).] (a) The Personal Responsibility and Work Opportunity 183.5 Reconciliation Act of 1996, Public Law 104-193, establishes 183.6 block grants to states for temporary assistance for needy 183.7 families (TANF). TANF provisions allow states to use TANF 183.8 dollars for nonrecurrent, short-term diversionary benefits. The 183.9 diversionary work program established on July 1, 2003, is 183.10 Minnesota's TANF program to provide short-term diversionary 183.11 benefits to eligible recipients of the diversionary work program. 183.12 (b) The goal of the diversionary work program is to provide 183.13 short-term, necessary services and supports to families which 183.14 will lead to unsubsidized employment, increase economic 183.15 stability, and reduce the risk of those families needing longer 183.16 term assistance, under the Minnesota family investment program 183.17 (MFIP). 183.18 (c) When a family unit meets the eligibility criteria in 183.19 this section, the family must receive a diversionary work 183.20 program grant and is not eligible for MFIP. 183.21 (d) A family unit is eligible for the diversionary work 183.22 program for a maximum of four consecutive months only once in a183.23 12-month period. The 12-month period begins at the date of183.24 application or the date eligibility is met, whichever is later. 183.25 During the four-month periodfour consecutive months, family 183.26 maintenance needs as defined in subdivision 2, shall be vendor 183.27 paid, up to the cash portion of the MFIP standard of need for 183.28 the same size household. To the extent there is a balance 183.29 available between the amount paid for family maintenance needs 183.30 and the cash portion of the transitional standard, a personal 183.31 needs allowance of up to $70 per DWP recipient in the family 183.32 unit shall be issued. The personal needs allowance payment plus 183.33 the family maintenance needs shall not exceed the cash portion 183.34 of the MFIP standard of need. Counties may provide supportive 183.35 and other allowable services funded by the MFIP consolidated 183.36 fund under section 256J.626 to eligible participants during the 184.1 four-month diversionary period. 184.2 Sec. 56. Minnesota Statutes 2003 Supplement, section 184.3 256J.95, subdivision 3, is amended to read: 184.4 Subd. 3. [ELIGIBILITY FOR DIVERSIONARY WORK PROGRAM.] (a) 184.5 Except for the categories of family units listed below, all 184.6 family units who apply for cash benefits and who meet MFIP 184.7 eligibility as required in sections 256J.11 to 256J.15 are 184.8 eligible and must participate in the diversionary work program. 184.9 Family units that are not eligible for the diversionary work 184.10 program include: 184.11 (1) child only cases; 184.12 (2) a single-parent family unit that includes a child under 184.13 12 weeks of age. A parent is eligible for this exception once 184.14 in a parent's lifetime and is not eligible if the parent has 184.15 already used the previously allowed child under age one 184.16 exemption from MFIP employment services; 184.17 (3) a minor parent without a high school diploma or its 184.18 equivalent; 184.19 (4) a caregiveran 18 or 19 years of ageyear-old caregiver 184.20 without a high school diploma or its equivalent who chooses to 184.21 have an employment plan with an education option; 184.22 (5) a caregiver age 60 or over; 184.23 (6) family units with a parentcaregiver who received DWP 184.24 benefits within a 12-month period as defined in subdivision 1,184.25 paragraph (d)in the 12 months prior to the month the family 184.26 applied for DWP, except as provided in paragraph (c); and184.27 (7) family units with a parentcaregiver who received MFIP 184.28 within the past12 months prior to the month the family unit 184.29 applied for DWP; 184.30 (8) a family unit with a caregiver who received 60 or more 184.31 months of TANF assistance; and 184.32 (9) a family unit with a caregiver who is disqualified from 184.33 DWP or MFIP due to fraud. 184.34 (b) A two-parent family must participate in DWP unless both 184.35 parentscaregivers meet the criteria for an exception under 184.36 paragraph (a), clauses (1) through (5), or the family unit 185.1 includes a parent who meets the criteria in paragraph (a), 185.2 clause (6) or, (7), (8), or (9). 185.3 (c) Once DWP eligibility is determined, the four months run 185.4 consecutively. If a participant leaves the program for any 185.5 reason and reapplies during the four-month period, the county 185.6 must redetermine eligibility for DWP. 185.7 Sec. 57. Minnesota Statutes 2003 Supplement, section 185.8 256J.95, subdivision 11, is amended to read: 185.9 Subd. 11. [UNIVERSAL PARTICIPATION REQUIRED.] (a) All DWP 185.10 caregivers, except caregivers who meet the criteria in paragraph 185.11 (d), are required to participate in DWP employment services. 185.12 Except as specified in paragraphs (b) and (c), employment plans 185.13 under DWP must, at a minimum, meet the requirements in section 185.14 256J.55, subdivision 1. 185.15 (b) A caregiver who is a member of a two-parent family that 185.16 is required to participate in DWP who would otherwise be 185.17 ineligible for DWP under subdivision 3 may be allowed to develop 185.18 an employment plan under section 256J.521, subdivision 2, 185.19 paragraph (c), that may contain alternate activities and reduced 185.20 hours. 185.21 (c) A participant who hasis a victim of family violence 185.22 waivershall be allowed to develop an employment plan under 185.23 section 256J.521, subdivision 3. A claim of family violence 185.24 must be documented by the applicant or participant by providing 185.25 a sworn statement which is supported by collateral documentation 185.26 in section 256J.545, paragraph (b). 185.27 (d) One parent in a two-parent family unit that has a 185.28 natural born child under 12 weeks of age is not required to have 185.29 an employment plan until the child reaches 12 weeks of age 185.30 unless the family unit has already used the exclusion under 185.31 section 256J.561, subdivision 2, or the previously allowed child 185.32 under age one exemption under section 256J.56, paragraph (a), 185.33 clause (5). 185.34 (e) The provision in paragraph (d) ends the first full 185.35 month after the child reaches 12 weeks of age. This provision 185.36 is allowable only once in a caregiver's lifetime. In a 186.1 two-parent household, only one parent shall be allowed to use 186.2 this category. 186.3 (f) The participant and job counselor must meet within ten 186.4 working days after the child reaches 12 weeks of age to revise 186.5 the participant's employment plan. The employment plan for a 186.6 family unit that has a child under 12 weeks of age that has 186.7 already used the exclusion in section 256J.561 or the previously 186.8 allowed child under age one exemption under section 256J.56, 186.9 paragraph (a), clause (5), must be tailored to recognize the 186.10 caregiving needs of the parent. 186.11 Sec. 58. Minnesota Statutes 2003 Supplement, section 186.12 256J.95, subdivision 12, is amended to read: 186.13 Subd. 12. [CONVERSION OR REFERRAL TO MFIP.] (a) If at any 186.14 time during the DWP application process or during the four-month 186.15 DWP eligibility period, it is determined that a participant is 186.16 unlikely to benefit from the diversionary work program, the 186.17 county shall convert or refer the participant to MFIP as 186.18 specified in paragraph (d). Participants who are determined to 186.19 be unlikely to benefit from the diversionary work program must 186.20 develop and sign an employment plan. Participants who meet any 186.21 one of the criteria in paragraph (b) shall be considered to be 186.22 unlikely to benefit from DWP, provided the necessary 186.23 documentation is available to support the determination. 186.24 (b) A participant who: 186.25 (1) has been determined by a qualified professional as 186.26 being unable to obtain or retain employment due to an illness, 186.27 injury, or incapacity that is expected to last at least 60 days; 186.28 (2) is required in the home as a caregiver because of the 186.29 illness, injury, or incapacity, of a family member, or a 186.30 relative in the household, or a foster child, and the illness, 186.31 injury, or incapacity and the need for a person to provide 186.32 assistance in the home has been certified by a qualified 186.33 professional and is expected to continue more than 60 days; 186.34 (3) is determined by a qualified professional as being 186.35 needed in the home to care for a child or adult meeting the 186.36 special medical criteria in section 256J.425256J.561, 187.1 subdivision 2, paragraph (d), clause (3); 187.2 (4) is pregnant and is determined by a qualified 187.3 professional as being unable to obtain or retain employment due 187.4 to the pregnancy; or 187.5 (5) has applied for SSI or RSDISSDI. 187.6 (c) In a two-parent family unit, both parents must be 187.7 determined to be unlikely to benefit from the diversionary work 187.8 program before the family unit can be converted or referred to 187.9 MFIP. 187.10 (d) A participant who is determined to be unlikely to 187.11 benefit from the diversionary work program shall be converted to 187.12 MFIP and, if the determination was made within 30 days of the 187.13 initial application for benefits, no additional application form 187.14 is required. A participant who is determined to be unlikely to 187.15 benefit from the diversionary work program shall be referred to 187.16 MFIP and, if the determination is made more than 30 days after 187.17 the initial application, the participant must submit a program 187.18 change request form. The county agency shall process the 187.19 program change request form by the first of the following month 187.20 to ensure that no gap in benefits is due to delayed action by 187.21 the county agency. In processing the program change request 187.22 form, the county must follow section 256J.32, subdivision 1, 187.23 except that the county agency shall not require additional 187.24 verification of the information in the case file from the DWP 187.25 application unless the information in the case file is 187.26 inaccurate, questionable, or no longer current. 187.27 (e) The county shall not request a combined application 187.28 form for a participant who has exhausted the four months of the 187.29 diversionary work program, has continued need for cash and food 187.30 assistance, and has completed, signed, and submitted a program 187.31 change request form within 30 days of the fourth month of the 187.32 diversionary work program. The county must process the program 187.33 change request according to section 256J.32, subdivision 1, 187.34 except that the county agency shall not require additional 187.35 verification of information in the case file unless the 187.36 information is inaccurate, questionable, or no longer current. 188.1 When a participant does not request MFIP within 30 days of the 188.2 diversionary work program benefits being exhausted, a new 188.3 combined application form must be completed for any subsequent 188.4 request for MFIP. 188.5 Sec. 59. Minnesota Statutes 2003 Supplement, section 188.6 256J.95, subdivision 19, is amended to read: 188.7 Subd. 19. [ RECOVERY OFDWP OVERPAYMENTS AND 188.8 UNDERPAYMENTS.] WhenDWP benefits are subject to overpayments 188.9 and underpayments. Anytime an overpayment or an ATM error188.10 underpayment is determined for DWP, the overpaymentcorrection 188.11 shall be recouped orcalculated using prospective budgeting. 188.12 Corrections shall be determined based on the policy in section 188.13 256J.34, subdivision 1, paragraphs (a), (b), and (c), and 188.14 subdivision 3, paragraph (b), clause (1). ATM errors must be 188.15 recovered as specified in section 256J.38, subdivision 5. DWP 188.16 overpayments are not subject to cross program recoupment. 188.17 Sec. 60. Laws 1997, chapter 245, article 2, section 11, as 188.18 amended by Laws 2003, First Special Session chapter 14, article 188.19 10, section 7, is amended to read: 188.20 Sec. 11. [FEDERAL FUNDS FOR VISITATION AND ACCESS.] 188.21 The commissioner of human services mayshall apply for and 188.22 accept on behalf of the state any federal funding received under 188.23 Public Law Number 104-193 for access and visitation programs ,188.24 and must administer the funds for the activities allowed under188.25 federal law. The commissioner may distribute the funds on a188.26 competitive basis andshall transfer these funds in three equal 188.27 amounts to the FATHER Project of Goodwill/Easter Seals 188.28 Minnesota, the Hennepin County African American Men Project, and 188.29 the Minnesota Fathers & Families Network for use of the 188.30 activities allowed under federal law. These programs must 188.31 monitor, evaluate, and report on the access and visitation 188.32 programs in accordance with any applicable regulations. 188.33 Sec. 61. [TEMPORARY INELIGIBILITY OF MILITARY PERSONNEL.] 188.34 Counties must reserve a family's position under the child 188.35 care assistance fund if a family has been receiving child care 188.36 assistance but is temporarily ineligible for assistance due to 189.1 increased income from active military service. Activated 189.2 military personnel may be temporarily ineligible until 189.3 deactivated. A county must reserve a military family's position 189.4 on the basic sliding fee waiting list under the child care 189.5 assistance fund if a family is approved to receive child care 189.6 assistance and reaches the top of the waiting list but is 189.7 temporarily ineligible for assistance. 189.8 Sec. 62. [REPEALER.] 189.9 (a) Minnesota Statutes 2002, sections 119B.211 and 189.10 256D.051, subdivision 17, are repealed. 189.11 (b) Laws 2000, chapter 489, article 1, section 36, is 189.12 repealed. 189.13 ARTICLE 5 189.14 LONG-TERM CARE 189.15 Section 1. Minnesota Statutes 2002, section 198.261, is 189.16 amended to read: 189.17 198.261 [CANTEEN AND, COFFEE SHOP, AND WOOD SHOP.] 189.18 Any profits derived from the operation of canteens and, 189.19 coffee shops, and wood shops at the Minnesota veterans homes 189.20 shall be used by the board only for the direct benefit of the 189.21 residents of the homes. 189.22 Sec. 2. Minnesota Statutes 2003 Supplement, section 189.23 245A.11, subdivision 2a, is amended to read: 189.24 Subd. 2a. [ADULT FOSTER CARE LICENSE CAPACITY.] (a) An 189.25 adult foster care license holder may have a maximum license 189.26 capacity of five if all persons in care are age 55 or over and 189.27 do not have a serious and persistent mental illness or a 189.28 developmental disability. 189.29 (b) The commissioner may grant variances to paragraph (a) 189.30 to allow a foster care provider with a licensed capacity of five 189.31 persons to admit an individual under the age of 55 if the 189.32 variance complies with section 245A.04, subdivision 9, and 189.33 approval of the variance is recommended by the county in which 189.34 the licensed foster care provider is located. 189.35 (c) The commissioner may grant variances to paragraph (a) 189.36 to allow the use of a fifth bed for emergency crisis services 190.1 for a person with serious and persistent mental illness or a 190.2 developmental disability, regardless of age, if the variance 190.3 complies with section 245A.04, subdivision 9, and approval of 190.4 the variance is recommended by the county in which the licensed 190.5 foster care provider is located. 190.6 (d) Notwithstanding paragraph (a), the commissioner may 190.7 issue an adult foster care license with a capacity of five 190.8 adults when the capacity is recommended by the county licensing 190.9 agency of the county in which the facility is located and if the 190.10 recommendation verifies that: 190.11 (1) the facility meets the physical environment 190.12 requirements in the adult foster care licensing rule; 190.13 (2) the five-bed living arrangement is specified for each 190.14 resident in the resident's: 190.15 (i) individualized plan of care; 190.16 (ii) individual service plan under section 256B.092, 190.17 subdivision 1b, if required; or 190.18 (iii) individual resident placement agreement under 190.19 Minnesota Rules, part 9555.5105, subpart 19, if required; 190.20 (3) the license holder obtains written and signed informed 190.21 consent from each resident or resident's legal representative 190.22 documenting the resident's informed choice to living in the home 190.23 and that the resident's refusal to consent would not have 190.24 resulted in service termination; and 190.25 (4) the facility was licensed for adult foster care before 190.26 March 1, 2003. 190.27 (e) The commissioner shall not issue a new adult foster 190.28 care license under paragraph (d) after June 30, 2005. The 190.29 commissioner shall allow a facility with an adult foster care 190.30 license issued under paragraph (d) before June 30, 2005, to 190.31 continue with a capacity of five or sixadults if the license 190.32 holder continues to comply with the requirements in paragraph 190.33 (d). 190.34 Sec. 3. Minnesota Statutes 2002, section 256B.0625, is 190.35 amended by adding a subdivision to read: 190.36 Subd. 2a. [SKILLED NURSING FACILITY AND HOSPICE SERVICES 191.1 FOR DUAL ELIGIBLES.] Medical assistance covers skilled nursing 191.2 facility services for individuals eligible for both medical 191.3 assistance and Medicare who have waived the Medicare skilled 191.4 nursing facility room and board benefit and have enrolled in the 191.5 Medicare hospice program. Medical assistance covers skilled 191.6 nursing facility services regardless of whether an individual 191.7 enrolled in the Medicare hospice program prior to, on, or after 191.8 the date of the hospitalization that qualified the individual 191.9 for Medicare skilled nursing facility services. 191.10 Sec. 4. Minnesota Statutes 2002, section 256B.0911, 191.11 subdivision 4a, is amended to read: 191.12 Subd. 4a. [PREADMISSION SCREENING ACTIVITIES RELATED TO 191.13 NURSING FACILITY ADMISSIONS.] (a) All applicants to Medicaid 191.14 certified nursing facilities, including certified boarding care 191.15 facilities, must be screened prior to admission regardless of 191.16 income, assets, or funding sources for nursing facility care, 191.17 except as described in subdivision 4b. The purpose of the 191.18 screening is to determine the need for nursing facility level of 191.19 care as described in paragraph (d) and to complete activities 191.20 required under federal law related to mental illness and mental 191.21 retardation as outlined in paragraph (b). 191.22 (b) A person who has a diagnosis or possible diagnosis of 191.23 mental illness, mental retardation, or a related condition must 191.24 receive a preadmission screening before admission regardless of 191.25 the exemptions outlined in subdivision 4b, paragraph (b), to 191.26 identify the need for further evaluation and specialized 191.27 services, unless the admission prior to screening is authorized 191.28 by the local mental health authority or the local developmental 191.29 disabilities case manager, or unless authorized by the county 191.30 agency according to Public Law 100-508101-508. 191.31 The following criteria apply to the preadmission screening: 191.32 (1) the county must use forms and criteria developed by the 191.33 commissioner to identify persons who require referral for 191.34 further evaluation and determination of the need for specialized 191.35 services; and 191.36 (2) the evaluation and determination of the need for 192.1 specialized services must be done by: 192.2 (i) a qualified independent mental health professional, for 192.3 persons with a primary or secondary diagnosis of a serious 192.4 mental illness; or 192.5 (ii) a qualified mental retardation professional, for 192.6 persons with a primary or secondary diagnosis of mental 192.7 retardation or related conditions. For purposes of this 192.8 requirement, a qualified mental retardation professional must 192.9 meet the standards for a qualified mental retardation 192.10 professional under Code of Federal Regulations, title 42, 192.11 section 483.430. 192.12 (c) The local county mental health authority or the state 192.13 mental retardation authority under Public Law Numbers 100-203 192.14 and 101-508 may prohibit admission to a nursing facility if the 192.15 individual does not meet the nursing facility level of care 192.16 criteria or needs specialized services as defined in Public Law 192.17 Numbers 100-203 and 101-508. For purposes of this section, 192.18 "specialized services" for a person with mental retardation or a 192.19 related condition means active treatment as that term is defined 192.20 under Code of Federal Regulations, title 42, section 483.440 192.21 (a)(1). 192.22 (d) The determination of the need for nursing facility 192.23 level of care must be made according to criteria developed by 192.24 the commissioner. In assessing a person's needs, consultation 192.25 team members shall have a physician available for consultation 192.26 and shall consider the assessment of the individual's attending 192.27 physician, if any. The individual's physician must be included 192.28 if the physician chooses to participate. Other personnel may be 192.29 included on the team as deemed appropriate by the county. 192.30 Sec. 5. Minnesota Statutes 2003 Supplement, section 192.31 256B.0915, subdivision 3a, is amended to read: 192.32 Subd. 3a. [ELDERLY WAIVER COST LIMITS.] (a) The monthly 192.33 limit for the cost of waivered services to an individual elderly 192.34 waiver client shall be the weighted average monthly nursing 192.35 facility rate of the case mix resident class to which the 192.36 elderly waiver client would be assigned under Minnesota Rules, 193.1 parts 9549.0050 to 9549.0059, less the recipient's maintenance 193.2 needs allowance as described in subdivision 1d, paragraph (a), 193.3 until the first day of the state fiscal year in which the 193.4 resident assessment system as described in section 256B.437 for 193.5 nursing home rate determination is implemented. Effective on 193.6 the first day of the state fiscal year in which the resident 193.7 assessment system as described in section 256B.437 for nursing 193.8 home rate determination is implemented and the first day of each 193.9 subsequent state fiscal year, the monthly limit for the cost of 193.10 waivered services to an individual elderly waiver client shall 193.11 be the rate of the case mix resident class to which the waiver 193.12 client would be assigned under Minnesota Rules, parts 9549.0050 193.13 to 9549.0059, in effect on the last day of the previous state 193.14 fiscal year, adjusted by the greater of any legislatively 193.15 adopted home and community-based services cost-of-living193.16 percentage rate increase or any legislatively adoptedthe 193.17 average statewide percent ratepercentage increase forin 193.18 nursing facilitiesfacility payment rates. 193.19 (b) If extended medical supplies and equipment or 193.20 environmental modifications are or will be purchased for an 193.21 elderly waiver client, the costs may be prorated for up to 12 193.22 consecutive months beginning with the month of purchase. If the 193.23 monthly cost of a recipient's waivered services exceeds the 193.24 monthly limit established in paragraph (a), the annual cost of 193.25 all waivered services shall be determined. In this event, the 193.26 annual cost of all waivered services shall not exceed 12 times 193.27 the monthly limit of waivered services as described in paragraph 193.28 (a). 193.29 Sec. 6. Minnesota Statutes 2003 Supplement, section 193.30 256B.0915, subdivision 3b, is amended to read: 193.31 Subd. 3b. [COST LIMITS FOR ELDERLY WAIVER APPLICANTS WHO 193.32 RESIDE IN A NURSING FACILITY.] (a) For a person who is a nursing 193.33 facility resident at the time of requesting a determination of 193.34 eligibility for elderly waivered services, a monthly conversion 193.35 limit for the cost of elderly waivered services may be 193.36 requested. The monthly conversion limit for the cost of elderly 194.1 waiver services shall be the resident class assigned under 194.2 Minnesota Rules, parts 9549.0050 to 9549.0059, for that resident 194.3 in the nursing facility where the resident currently resides 194.4 until July 1 of the state fiscal year in which the resident 194.5 assessment system as described in section 256B.437 for nursing 194.6 home rate determination is implemented. Effective on July 1 of 194.7 the state fiscal year in which the resident assessment system as 194.8 described in section 256B.437 for nursing home rate 194.9 determination is implemented, the monthly conversion limit for 194.10 the cost of elderly waiver services shall be the per diem 194.11 nursing facility rate as determined by the resident assessment 194.12 system as described in section 256B.437 for that resident in the 194.13 nursing facility where the resident currently resides multiplied 194.14 by 365 and divided by 12, less the recipient's maintenance needs 194.15 allowance as described in subdivision 1d. The initially 194.16 approved conversion rate may be adjusted by the greater of any 194.17 subsequent legislatively adopted home and community-based 194.18 services cost-of-livingpercentage rate increase or any194.19 subsequent legislatively adoptedthe average statewide 194.20 percentage rateincrease forin nursing facilitiesfacility 194.21 payment rates. The limit under this subdivision only applies to 194.22 persons discharged from a nursing facility after a minimum 194.23 30-day stay and found eligible for waivered services on or after 194.24 July 1, 1997. 194.25 (b) The following costs must be included in determining the 194.26 total monthly costs for the waiver client: 194.27 (1) cost of all waivered services, including extended 194.28 medical supplies and equipment and environmental modifications; 194.29 and 194.30 (2) cost of skilled nursing, home health aide, and personal 194.31 care services reimbursable by medical assistance. 194.32 Sec. 7. Minnesota Statutes 2003 Supplement, section 194.33 256B.431, subdivision 32, is amended to read: 194.34 Subd. 32. [PAYMENT DURING FIRST 90 DAYS.] (a) For rate 194.35 years beginning on or after July 1, 2001, the total payment rate 194.36 for a facility reimbursed under this section, section 256B.434, 195.1 or any other section for the first 90 paid days after admission 195.2 shall be: 195.3 (1) for the first 30 paid days, the rate shall be 120 195.4 percent of the facility's medical assistance rate for each case 195.5 mix class; 195.6 (2) for the next 60 paid days after the first 30 paid days, 195.7 the rate shall be 110 percent of the facility's medical 195.8 assistance rate for each case mix class; 195.9 (3) beginning with the 91st paid day after admission, the 195.10 payment rate shall be the rate otherwise determined under this 195.11 section, section 256B.434, or any other section; and 195.12 (4) payments under this paragraph apply to admissions 195.13 occurring on or after July 1, 2001, and before July 1, 2003, and 195.14 to resident days occurring before July 30, 2003. 195.15 (b) For rate years beginning on or after July 1, 2003, the 195.16 total payment rate for a facility reimbursed under this section, 195.17 section 256B.434, or any other section shall be: 195.18 (1) for the first 30 calendar days after admission, the 195.19 rate shall be 120 percent of the facility's medical assistance 195.20 rate for each RUG class; 195.21 (2) beginning with the 31st calendar day after admission, 195.22 the payment rate shall be the rate otherwise determined under 195.23 this section, section 256B.434, or any other section; and 195.24 (3) payments under this paragraph apply to admissions 195.25 occurring on or after July 1, 2003. 195.26 (c) Effective January 1, 2004, the enhanced rates under 195.27 this subdivision shall not be allowed if a resident has resided 195.28 during the previous 30 calendar days in: 195.29 (1) the same nursing facility; 195.30 (2) a nursing facility owned or operated by a related 195.31 party; or 195.32 (3) a nursing facility or part of a facility that closed or 195.33 was in the process of closing. 195.34 Sec. 8. Minnesota Statutes 2002, section 256B.431, is 195.35 amended by adding a subdivision to read: 195.36 Subd. 40. [DESIGNATION OF AREAS TO RECEIVE METROPOLITAN 196.1 RATES.] (a) For rate years beginning on or after July 1, 2004, 196.2 and subject to paragraph (b), nursing facilities located in 196.3 areas designated as metropolitan areas by the federal Office of 196.4 Management and Budget using census bureau data shall be 196.5 considered metro, in order to: 196.6 (1) determine rate increases under this section, section 196.7 256B.434, or any other section; and 196.8 (2) establish nursing facility reimbursement rates for the 196.9 new nursing facility reimbursement system developed under Laws 196.10 2001, First Special Session chapter 9, article 5, section 35, as 196.11 amended by Laws 2002, chapter 220, article 14, section 19. 196.12 (b) Paragraph (a) applies only if designation as a metro 196.13 facility results in a level of reimbursement that is higher than 196.14 the level the facility would have received without application 196.15 of that paragraph. 196.16 [EFFECTIVE DATE.]This section is effective July 1, 2004. 196.17 Sec. 9. Minnesota Statutes 2003 Supplement, section 196.18 256B.69, subdivision 6b, is amended to read: 196.19 Subd. 6b. [HOME AND COMMUNITY-BASED WAIVER SERVICES.] (a) 196.20 For individuals enrolled in the Minnesota senior health options 196.21 project authorized under subdivision 23, elderly waiver services 196.22 shall be covered according to the terms and conditions of the 196.23 federal agreement governing that demonstration project. 196.24 (b) For individuals under age 65 enrolled in demonstrations 196.25 authorized under subdivision 23, home and community-based waiver 196.26 services shall be covered according to the terms and conditions 196.27 of the federal agreement governing that demonstration project. 196.28 (c) The commissioner of human services shall issue requests 196.29 for proposals for collaborative service models between counties 196.30 and managed care organizations to integrate the home and 196.31 community-based elderly waiver services and additional nursing 196.32 home services into the prepaid medical assistance program. 196.33 (d) Notwithstanding Minnesota Rules, part 9500.1457, 196.34 subpart 1, item C, elderly waiver services shall be covered 196.35 statewide no sooner than July 1, 2006, under the prepaid medical 196.36 assistance program for all individuals who are eligible 197.1 according to section 256B.0915. The commissioner may develop a 197.2 schedule to phase in implementation of these waiver services, 197.3 including collaborative service models under paragraph (c). The 197.4 commissioner shall phase in implementation beginning with those 197.5 counties participating under section 256B.692, and those 197.6 counties where a viable collaborative service model has been 197.7 developed. In consultation with counties and all managed care 197.8 organizations that have expressed an interest in participating 197.9 in collaborative service models, the commissioner shall evaluate 197.10 the models. The commissioner shall consider the evaluation in 197.11 selecting the most appropriate models for statewide 197.12 implementation. 197.13 ARTICLE 6 197.14 HEALTH CARE 197.15 Section 1. Minnesota Statutes 2002, section 13.3806, is 197.16 amended by adding a subdivision to read: 197.17 Subd. 4a. [BIRTH DEFECTS INFORMATION SYSTEM.] Information 197.18 collected for the birth defects information system is governed 197.19 by section 144.2217. 197.20 [EFFECTIVE DATE.]This section is effective upon receipt of 197.21 a federal grant to establish a birth defects information system. 197.22 Sec. 2. Minnesota Statutes 2002, section 62A.30, 197.23 subdivision 2, is amended to read: 197.24 Subd. 2. [REQUIRED COVERAGE.] Every policy, plan, 197.25 certificate, or contract referred to in subdivision 1 issued or197.26 renewed after August 1, 1988,that provides coverage to a 197.27 Minnesota resident must provide coverage for routine screening 197.28 procedures for cancer, including mammograms, surveillance tests 197.29 for ovarian cancer for women who are at risk for ovarian cancer 197.30 as defined in subdivision 3, and pap smears, when ordered or 197.31 provided by a physician in accordance with the standard practice 197.32 of medicine. 197.33 Sec. 3. Minnesota Statutes 2002, section 62A.30, is 197.34 amended by adding a subdivision to read: 197.35 Subd. 3. [OVARIAN CANCER SURVEILLANCE TESTS.] For purposes 197.36 of subdivision 2: 198.1 (a) "At risk for ovarian cancer" means: 198.2 (1) having a family history: 198.3 (i) with one or more first or second degree relatives with 198.4 ovarian cancer; 198.5 (ii) of clusters of women relatives with breast cancer; or 198.6 (iii) of nonpolyposis colorectal cancer; or 198.7 (2) testing positive for BRCA1 or BRCA2 mutations. 198.8 (b) "Surveillance tests for ovarian cancer" means annual 198.9 screening using: 198.10 (1) CA-125 serum tumor marker testing; 198.11 (2) transvaginal ultrasound; 198.12 (3) pelvic examination; or 198.13 (4) other proven ovarian cancer screening tests currently 198.14 being evaluated by the federal Food and Drug Administration or 198.15 by the National Cancer Institute. 198.16 Sec. 4. Minnesota Statutes 2002, section 62H.01, is 198.17 amended to read: 198.18 62H.01 [AUTHORITY TO JOINTLY SELF-INSURE.] 198.19 Any two or more employers, excluding the state and its 198.20 political subdivisions as described in section 471.617, 198.21 subdivision 1, who are authorized to transact business in 198.22 Minnesota may jointly self-insure employee health, dental, 198.23 short-term disability benefits, or other benefits permitted 198.24 under the Employee Retirement Income Security Act of 1974, 198.25 United States Code, title 29, sections 1001 et seq. If an 198.26 employer chooses to jointly self-insure in accordance with this 198.27 chapter, the employer must participate in the joint plan for at 198.28 least three consecutive years. If an employer terminates 198.29 participation in the joint plan before the conclusion of this 198.30 three-year period, a financial penalty may be assessed under the 198.31 joint plan, not to exceed the amount contributed by the employer 198.32 to the plan's reserves as determined under Minnesota Rules, part 198.33 2765.1200. Joint plans must have a minimum of 1,000 covered 198.34 employeesenrollees and meet all conditions and terms of 198.35 sections 62H.01 to 62H.08. Joint plans covering employers not 198.36 resident in Minnesota must meet the requirements of sections 199.1 62H.01 to 62H.08 as if the portion of the plan covering 199.2 Minnesota resident employees was treated as a separate plan. A199.3 plan may cover employees resident in other states only if the199.4 plan complies with the applicable laws of that state.199.5 A multiple employer welfare arrangement as defined in 199.6 United States Code, title 29, section 1002(40)(a), is subject to 199.7 this chapter to the extent authorized by the Employee Retirement 199.8 Income Security Act of 1974, United States Code, title 29, 199.9 sections 1001 et seq. The commissioner of commerce may, on 199.10 behalf of the state, enter into an agreement with the United 199.11 States Secretary of Labor for delegation to the state of some or 199.12 all of the secretary's enforcement authority with respect to 199.13 multiple employer welfare arrangements, as described in United 199.14 States Code, title 29, section 1136(c). 199.15 Sec. 5. Minnesota Statutes 2002, section 62H.02, is 199.16 amended to read: 199.17 62H.02 [REQUIRED PROVISIONS.] 199.18 A joint self-insurance plan must include aggregate excess 199.19 stop-loss coverage and individual excess stop-loss coverage 199.20 provided by an insurance company licensed by the state of 199.21 Minnesota. Aggregate excess stop-loss coverage must include 199.22 provisions to cover incurred, unpaid claim liability in the 199.23 event of plan termination. In addition, the plan of 199.24 self-insurance must have participating employers fund an amount 199.25 at least equal to the point at which the excess or stop-loss 199.26 insurer has contracted to assume 100 percent of additional 199.27 liability. A joint self-insurance plan must submit its proposed 199.28 excess or stop-loss insurance contract to the commissioner of 199.29 commerce at least 30 days prior to the proposed plan's effective 199.30 date and at least 30 days subsequent to any renewal date. The 199.31 commissioner shall review the contract to determine if they meet 199.32 the standards established by sections 62H.01 to 62H.08 and 199.33 respond within a 30-day period. Any excess or stop-loss 199.34 insurance plan must contain a provision that the excess or 199.35 stop-loss insurer will give the plan and the commissioner of 199.36 commerce a minimum of 180 days' notice of termination or 200.1 nonrenewal. If the plan fails to secure replacement coverage 200.2 within 60 days after receipt of the notice of cancellation or 200.3 nonrenewal, the commissioner shall issue an order providing for 200.4 the orderly termination of the plan. The commissioner may waive 200.5 the requirements of this section and of any rule relating to the 200.6 requirements of this section, if the commissioner determines 200.7 that a joint self-insurance plan has established alternative 200.8 arrangements that fully fund the plan's liability or incurred 200.9 but unpaid claims. The commissioner may not waive the 200.10 requirement that a joint self-insurance plan have excess 200.11 stop-loss coverage. 200.12 Sec. 6. Minnesota Statutes 2002, section 62H.04, is 200.13 amended to read: 200.14 62H.04 [COMPLIANCE WITH OTHER LAWS.] 200.15 (a) A joint self-insurance plan is subject to the 200.16 requirements of chapters 62A, 62E, 62L, and 62Q, and sections 200.17 72A.17 to 72A.32 unless otherwise specifically exempt. A joint 200.18 self-insurance plan must pay assessments made by the Minnesota 200.19 Comprehensive Health Association, as required under section 200.20 62E.11. 200.21 (b) A joint self-insurance plan is exempt from providing 200.22 the mandated health benefits described in chapters 62A, 62E, 200.23 62L, and 62Q if it otherwise provides the benefits required 200.24 under the Employee Retirement Income Security Act of 1974, 200.25 United States Code, title 29, sections 1001, et seq., for all 200.26 employers and not just for the employers with 50 or more 200.27 employees who are covered by that federal law. 200.28 (c) A joint self-insurance plan is exempt from section 200.29 62L.03, subdivision 1, if the plan offers an annual open 200.30 enrollment period of no less than 15 days during which all 200.31 employers that qualify for membership may enter the plan without 200.32 preexisting condition limitations or exclusions except those 200.33 permitted under chapter 62L. 200.34 (d) A joint self-insurance plan is exempt from sections 200.35 62A.146, 62A.16, 62A.17, 62A.20, and62A.21, 62A.65, subdivision 200.36 5, paragraph (b), and 62E.16 if the joint self-insurance plan 201.1 complies with the continuation requirements under the Employee 201.2 Retirement Income Security Act of 1974, United States Code, 201.3 title 29, sections 1001, et seq., for all employers and not just 201.4 for the employers with 20 or more employees who are covered by 201.5 that federal law. 201.6 (e) A joint self-insurance plan must provide to all 201.7 employers the maternity coverage required by federal law for 201.8 employers with 15 or more employees. 201.9 Sec. 7. Minnesota Statutes 2002, section 62J.23, 201.10 subdivision 2, is amended to read: 201.11 Subd. 2. [ INTERIMRESTRICTIONS.] (a) From July 1, 1992, 201.12 until rules are adopted by the commissioner under this section, 201.13 the restrictions in the federal Medicare antikickback statutes 201.14 in section 1128B(b) of the Social Security Act, United States 201.15 Code, title 42, section 1320a-7b(b), and rules adopted under the 201.16 federal statutes, apply to all persons in the state, regardless 201.17 of whether the person participates in any state health care 201.18 program. The commissioner shall approve a transition plan201.19 submitted to the commissioner by January 1, 1993, by a person201.20 who is in violation of this section that provides a reasonable201.21 time for the person to modify prohibited practices or divest201.22 financial interests in other persons in order to come into201.23 compliance with this section. Transition plans that identify201.24 individuals are private data. Transition plans that do not201.25 identify individuals are nonpublic data.201.26 (b) Nothing in paragraph (a) shall be construed to prohibit 201.27 an individual from receiving a discount or other reduction in 201.28 price or a limited-time free supply or samples of a prescription 201.29 drug, medical supply, or medical equipment offered by a 201.30 pharmaceutical manufacturer, medical supply or device 201.31 manufacturer, health plan company, or pharmacy benefit manager, 201.32 so long as: 201.33 (1) the discount or reduction in price is provided to the 201.34 individual in connection with the purchase of a prescription 201.35 drug, medical supply, or medical equipment prescribed for that 201.36 individual; 202.1 (2) it otherwise complies with the requirements of state 202.2 and federal law applicable to enrollees of state and federal 202.3 public health care programs; 202.4 (3) the discount or reduction in price does not exceed the 202.5 amount paid directly by the individual for the prescription 202.6 drug, medical supply, or medical equipment; and 202.7 (4) the limited-time free supply or samples are provided by 202.8 a physician or pharmacist, as provided by the federal 202.9 Prescription Drug Marketing Act. 202.10 (c) No benefit, reward, remuneration, or incentive for 202.11 continued product use may be provided to an individual or an 202.12 individual's family by a pharmaceutical manufacturer, medical 202.13 supply or device manufacturer, or pharmacy benefit manager, 202.14 except that this prohibition does not apply to: 202.15 (1) activities permitted under paragraph (b); 202.16 (2) a pharmaceutical manufacturer, medical supply or device 202.17 manufacturer, health plan company, or pharmacy benefit manager 202.18 providing to a patient, at a discount or reduced price or free 202.19 of charge, ancillary products necessary for treatment of the 202.20 medical condition for which the prescription drug, medical 202.21 supply, or medical equipment was prescribed or provided; and 202.22 (3) a pharmaceutical manufacturer, medical supply or device 202.23 manufacturer, health plan company, or pharmacy benefit manager 202.24 providing to a patient a trinket or memento of insignificant 202.25 value. 202.26 (d) Nothing in this subdivision shall be construed to 202.27 prohibit a health plan company from offering a tiered formulary 202.28 with different co-payment or cost-sharing amounts for different 202.29 drugs. 202.30 [EFFECTIVE DATE.]This section is effective July 1, 2004. 202.31 Sec. 8. [62Q.37] [AUDITS CONDUCTED BY NATIONALLY 202.32 RECOGNIZED INDEPENDENT ORGANIZATION.] 202.33 Subdivision 1. [APPLICABILITY.] This section applies only 202.34 to (i) a nonprofit health service plan corporation operating 202.35 under chapter 62C; (ii) a health maintenance organization 202.36 operating under chapter 62D; (iii) a community integrated 203.1 service network operating under chapter 62N; and (iv) managed 203.2 care organizations operating under chapter 256B, 256D, or 256L. 203.3 Subd. 2. [DEFINITIONS.] For purposes of this section, the 203.4 following terms have the meanings given them. 203.5 (a) "Commissioner" means the commissioner of health for 203.6 purposes of regulating health maintenance organizations and 203.7 community integrated service networks, the commissioner of 203.8 commerce for purposes of regulating nonprofit health service 203.9 plan corporations, or the commissioner of human services for the 203.10 purpose of contracting with managed care organizations serving 203.11 persons enrolled in programs under chapter 256B, 256D, or 256L. 203.12 (b) "Health plan company" means (i) a nonprofit health 203.13 service plan corporation operating under chapter 62C; (ii) a 203.14 health maintenance organization operating under chapter 62D; 203.15 (iii) a community integrated service network operating under 203.16 chapter 62N; or (iv) a managed care organization operating under 203.17 chapter 256B, 256D, or 256L. 203.18 (c) "Nationally recognized independent organization" means 203.19 (i) an organization that sets specific national standards 203.20 governing health care quality assurance processes, utilization 203.21 review, provider credentialing, marketing, and other topics 203.22 covered by this chapter and other chapters and audits and 203.23 provides accreditation to those health plan companies that meet 203.24 those standards. The American Accreditation Health Care 203.25 Commission (URAC), the National Committee for Quality Assurance 203.26 (NCQA), and the Joint Commission on Accreditation of Healthcare 203.27 Organizations (JCAHO) are, at a minimum, defined as nationally 203.28 recognized independent organizations; and (ii) the Centers for 203.29 Medicare and Medicaid Services for purposes of reviews or audits 203.30 conducted of health plan companies under Part C of Title XVIII 203.31 of the Social Security Act or under section 1876 of the Social 203.32 Security Act. 203.33 (d) "Performance standard" means those standards relating 203.34 to quality management and improvement, access and availability 203.35 of service, utilization review, provider selection, provider 203.36 credentialing, marketing, member rights and responsibilities, 204.1 complaints, appeals, grievance systems, enrollee information and 204.2 materials, enrollment and disenrollment, subcontractual 204.3 relationships and delegation, confidentiality, continuity and 204.4 coordination of care, assurance of adequate capacity and 204.5 services, coverage and authorization of services, practice 204.6 guidelines, health information systems, and financial solvency. 204.7 Subd. 3. [AUDITS.] (a) The commissioner may conduct 204.8 routine audits and investigations as prescribed under the 204.9 commissioner's respective state authorizing statutes. If a 204.10 nationally recognized independent organization has conducted an 204.11 audit of the health plan company using audit procedures that are 204.12 comparable to or more stringent than the commissioner's audit 204.13 procedures: 204.14 (1) the commissioner may accept the independent audit and 204.15 require no further audit if the results of the independent audit 204.16 show that the performance standard being audited meets or 204.17 exceeds state standards; 204.18 (2) the commissioner may accept the independent audit and 204.19 limit further auditing if the results of the independent audit 204.20 show that the performance standard being audited partially meets 204.21 state standards; 204.22 (3) the health plan company must demonstrate to the 204.23 commissioner that the nationally recognized independent 204.24 organization that conducted the audit is qualified and that the 204.25 results of the audit demonstrate that the particular performance 204.26 standard partially or fully meets state standards; and 204.27 (4) if the commissioner has partially or fully accepted an 204.28 independent audit of the performance standard, the commissioner 204.29 may use the finding of a deficiency with regard to statutes or 204.30 rules by an independent audit as the basis for a targeted audit 204.31 or enforcement action. 204.32 (b) If a health plan company has formally delegated 204.33 activities that are required under either state law or contract 204.34 to another organization that has undergone an audit by a 204.35 nationally recognized independent organization, that health plan 204.36 company may use the nationally recognized accrediting body's 205.1 determination on its own behalf under this section. 205.2 Subd. 4. [DISCLOSURE OF NATIONAL STANDARDS AND 205.3 REPORTS.] The health plan company shall: 205.4 (1) request that the nationally recognized independent 205.5 organization provide to the commissioner a copy of the current 205.6 nationally recognized independent organization's standards upon 205.7 which the acceptable accreditation status has been granted; and 205.8 (2) provide the commissioner a copy of the most current 205.9 final audit report issued by the nationally recognized 205.10 independent organization. 205.11 Subd. 5. [ACCREDITATION NOT REQUIRED.] Nothing in this 205.12 section requires a health plan company to seek an acceptable 205.13 accreditation status from a nationally recognized independent 205.14 organization. 205.15 Subd. 6. [CONTINUED AUTHORITY.] Nothing in this section 205.16 precludes the commissioner from conducting audits and 205.17 investigations or requesting data as granted under the 205.18 commissioner's respective state authorizing statutes. 205.19 Subd. 7. [HUMAN SERVICES.] The commissioner of human 205.20 services shall implement this section in a manner that is 205.21 consistent with applicable federal laws and regulations. 205.22 Subd. 8. [CONFIDENTIALITY.] Any documents provided to the 205.23 commissioner related to the audit report that may be accepted 205.24 under this section are private data on individuals pursuant to 205.25 chapter 13 and may only be released as permitted under section 205.26 60A.03, subdivision 9. 205.27 Sec. 9. Minnesota Statutes 2002, section 62T.02, is 205.28 amended by adding a subdivision to read: 205.29 Subd. 3. [SEASONAL EMPLOYEES.] A purchasing alliance may 205.30 define eligible employees to include seasonal employees. For 205.31 purposes of this chapter, "seasonal employee" means an employee 205.32 who is employed on a full-time basis for at least six months 205.33 during the calendar year and is unemployed for no longer than 205.34 four months during the calendar year. If seasonal employees are 205.35 included: 205.36 (1) the alliance must not show bias in the selection of 206.1 members based on the percentage of seasonal employees employed 206.2 by an employer member; 206.3 (2) prior to issuance or renewal, the employer must inform 206.4 the alliance that it will include seasonal employees; 206.5 (3) the employer must cover seasonal employees for the 206.6 entire term of its plan year; and 206.7 (4) the purchasing alliance may require an employer-member 206.8 contribution of at least 50 percent of the cost of employee 206.9 coverage during the months the seasonal employee is unemployed. 206.10 Sec. 10. Minnesota Statutes 2003 Supplement, section 206.11 128C.05, subdivision 1a, is amended to read: 206.12 Subd. 1a. [SUPERVISED COMPETITIVE HIGH SCHOOL DIVING.] 206.13 Notwithstanding Minnesota Rules, part 4717.3750, any pool built 206.14 before January 1, 1987, that was used for a one-meter board high 206.15 school diving program during the 2000-2001 school year may be 206.16 used for supervised competitive one-meter board high school 206.17 diving unless a pool that meets the requirements of Minnesota206.18 Rules, part 4717.3750, is located within the school district. A 206.19 school or district using a pool for supervised training practice 206.20 for competitive high school diving that does not meet the 206.21 requirements of the ruleMinnesota Rules, part 4717.3750, must 206.22 provide appropriate notice to parents and participants as to the 206.23 type of variance from Minnesota Rules and risk it may present. 206.24 Sec. 11. Minnesota Statutes 2002, section 144.2215, is 206.25 amended to read: 206.26 144.2215 [MINNESOTA BIRTH DEFECTS REGISTRYINFORMATION 206.27 SYSTEM.] 206.28 Subdivision 1. [ESTABLISHMENT.] The commissioner of health 206.29 shall develop a statewide birth defects registry system to206.30 provide for the collection, analysis, and dissemination of birth206.31 defects informationestablish and maintain an information system 206.32 containing data on the cause, treatment, prevention, and cure of 206.33 major birth defects. The commissioner shall consult with 206.34 representatives and experts in epidemiology, medicine, 206.35 insurance, health maintenance organizations, genetics, 206.36 consumers, and voluntary organizations in developing the system 207.1 and may phase in the implementation of the system. 207.2 Subd. 2. [DUTIES OF COMMISSIONER.] The commissioner of 207.3 health shall design a system that allows the commissioner to: 207.4 (1) monitor incidence trends of birth defects to detect 207.5 potential public health problems, predict risks, and assist in 207.6 responding to birth defects clusters; 207.7 (2) more accurately target intervention, prevention, and 207.8 services for communities, patients, and their families; 207.9 (3) inform health professionals and citizens of the 207.10 prevalence of and risks for birth defects; 207.11 (4) conduct scientific investigation and surveys of the 207.12 causes, mortality, methods of treatment, prevention, and cure 207.13 for birth defects; 207.14 (5) modify, as necessary, the birth defects information 207.15 system through demonstration projects; 207.16 (6) remove identifying information about a child whose 207.17 parent or legal guardian has chosen not to participate in the 207.18 system as permitted by section 144.2216, subdivision 4; 207.19 (7) protect the individually identifiable information as 207.20 required by section 144.2217; 207.21 (8) limit the dissemination of identifying information as 207.22 required by sections 144.2218 and 144.2219; and 207.23 (9) use the birth defects coding scheme defined by the 207.24 Centers for Disease Control and Prevention (CDC) of the United 207.25 States Public Health Service. 207.26 [EFFECTIVE DATE.]This section is effective upon receipt of 207.27 a federal grant to establish a birth defects information system. 207.28 Sec. 12. [144.2216] [BIRTH DEFECTS RECORDS AND REPORTS 207.29 REQUIRED.] 207.30 Subdivision 1. [HOSPITALS AND SIMILAR INSTITUTIONS.] With 207.31 the informed consent of a parent or guardian, as provided in 207.32 subdivision 4, a hospital, medical clinic, medical laboratory, 207.33 or other institution for the hospitalization, clinical or 207.34 laboratory diagnosis, or care of human beings shall provide the 207.35 commissioner of health with access to information on each birth 207.36 defect case in the manner and at the times that the commissioner 208.1 designates. 208.2 Subd. 2. [OTHER INFORMATION REPOSITORIES.] With the 208.3 informed consent of a parent or guardian, as provided in 208.4 subdivision 4, other repositories of information on the 208.5 diagnosis or care of infants may provide the commissioner with 208.6 access to information on each case of birth defects in the 208.7 manner and at the times that the commissioner designates. 208.8 Subd. 3. [REPORTING WITHOUT LIABILITY.] Furnishing 208.9 information in good faith in compliance with this section does 208.10 not subject the person, hospital, medical clinic, medical 208.11 laboratory, data repository, or other institution furnishing the 208.12 information to any action for damages or relief. 208.13 Subd. 4. [OPT OUT.] A parent or legal guardian must be 208.14 informed by the commissioner at the time of the initial data 208.15 collection that they may request removal at any time of personal 208.16 identifying information concerning a child from the birth 208.17 defects information system using a written form prescribed by 208.18 the commissioner. The commissioner shall advise parents or 208.19 legal guardians of infants: 208.20 (1) that the information on birth defects may be retained 208.21 by the Department of Health; 208.22 (2) the benefit of retaining birth defects records; 208.23 (3) that they may elect to have the birth defects 208.24 information collected once, within one year of birth, but to 208.25 require that all personally identifying information be destroyed 208.26 immediately upon the commissioner receiving the information. 208.27 If the parents of an infant object in writing to the maintaining 208.28 of birth defects information, the objection or election shall be 208.29 recorded on a form that is signed by a parent or legal guardian 208.30 and submitted to the commissioner of health; and 208.31 (4) that if the parent or legal guardian chooses to 208.32 opt-out, the commissioner will not be able to inform the parent 208.33 or legal guardian of a child of information related to the 208.34 prevention, treatment, or cause of a particular birth defect. 208.35 [EFFECTIVE DATE.]This section is effective upon receipt of 208.36 a federal grant to establish a birth defects information system. 209.1 Sec. 13. [144.2217] [CLASSIFICATION OF BIRTH DEFECTS 209.2 INFORMATION.] 209.3 Information collected on individuals for the birth defects 209.4 information system are private data on individuals as defined in 209.5 section 13.02, subdivision 12, and may only be used for the 209.6 purposes in sections 144.2215 to 144.2219. Any disclosure other 209.7 than one provided for in sections 144.2215 to 144.2219 is a 209.8 misdemeanor. 209.9 [EFFECTIVE DATE.]This section is effective upon receipt of 209.10 a federal grant to establish a birth defects information system. 209.11 Sec. 14. [144.2218] [TRANSFERS OF INFORMATION TO OTHER 209.12 GOVERNMENT AGENCIES.] 209.13 Information collected by the birth defects information 209.14 system may be disseminated to a state or local government agency 209.15 in Minnesota or another state solely for purposes consistent 209.16 with sections 144.2215 to 144.2219, provided that the state or 209.17 local government agency agrees to maintain the classification of 209.18 the information as provided under section 144.2217. Information 209.19 collected by other states consistent with sections 144.2215 to 209.20 144.2219 may be received by the commissioner of health and must 209.21 be maintained according to section 144.2217. 209.22 [EFFECTIVE DATE.]This section is effective upon receipt of 209.23 a federal grant to establish a birth defects information system. 209.24 Sec. 15. [144.2219] [TRANSFERS OF INFORMATION TO RESEARCH 209.25 ENTITIES.] 209.26 Information from the birth defects information system that 209.27 does not contain identifying information may be shared with 209.28 research entities upon request for studies approved by the 209.29 commissioner and appropriate institutional review boards. For 209.30 studies approved by the commissioner that require identifying 209.31 information about a child or a parent or legal guardian of the 209.32 child, the commissioner shall contact the parent or legal 209.33 guardian to obtain informed consent to share identifying 209.34 information with the research entity. Notwithstanding section 209.35 144.335, subdivision 3a, paragraph (d), the parent or legal 209.36 guardian must provide informed consent before the information 210.1 may be shared. The commissioner must collect all reasonable 210.2 costs of locating and obtaining consent from the research entity. 210.3 [EFFECTIVE DATE.]This section is effective upon receipt of 210.4 a federal grant to establish a birth defects information system. 210.5 Sec. 16. Minnesota Statutes 2002, section 145C.01, 210.6 subdivision 7, is amended to read: 210.7 Subd. 7. [HEALTH CARE FACILITY.] "Health care facility" 210.8 means a hospital or other entity licensed under sections 144.50 210.9 to 144.58, a nursing home licensed to serve adults under section 210.10 144A.02, a home care provider licensed under sections 144A.43 to 210.11 144A.47, an adult foster care provider licensed under chapter 210.12 245A and Minnesota Rules, parts 9555.5105 to 9555.6265, or a 210.13 hospice provider licensed under sections 144A.75 to 144A.755. 210.14 Sec. 17. Minnesota Statutes 2003 Supplement, section 210.15 256.01, subdivision 2, is amended to read: 210.16 Subd. 2. [SPECIFIC POWERS.] Subject to the provisions of 210.17 section 241.021, subdivision 2, the commissioner of human 210.18 services shall carry out the specific duties in paragraphs (a) 210.19 through (aa): 210.20 (1)(a) Administer and supervise all forms of public 210.21 assistance provided for by state law and other welfare 210.22 activities or services as are vested in the commissioner. 210.23 Administration and supervision of human services activities or 210.24 services includes, but is not limited to, assuring timely and 210.25 accurate distribution of benefits, completeness of service, and 210.26 quality program management. In addition to administering and 210.27 supervising human services activities vested by law in the 210.28 department, the commissioner shall have the authority to: 210.29 (a)(1) require county agency participation in training and 210.30 technical assistance programs to promote compliance with 210.31 statutes, rules, federal laws, regulations, and policies 210.32 governing human services; 210.33 (b)(2) monitor, on an ongoing basis, the performance of 210.34 county agencies in the operation and administration of human 210.35 services, enforce compliance with statutes, rules, federal laws, 210.36 regulations, and policies governing welfare services and promote 211.1 excellence of administration and program operation; 211.2 (c)(3) develop a quality control program or other 211.3 monitoring program to review county performance and accuracy of 211.4 benefit determinations; 211.5 (d)(4) require county agencies to make an adjustment to 211.6 the public assistance benefits issued to any individual 211.7 consistent with federal law and regulation and state law and 211.8 rule and to issue or recover benefits as appropriate; 211.9 (e)(5) delay or deny payment of all or part of the state 211.10 and federal share of benefits and administrative reimbursement 211.11 according to the procedures set forth in section 256.017; 211.12 (f)(6) make contracts with and grants to public and 211.13 private agencies and organizations, both profit and nonprofit, 211.14 and individuals, using appropriated funds; and 211.15 (g)(7) enter into contractual agreements with federally 211.16 recognized Indian tribes with a reservation in Minnesota to the 211.17 extent necessary for the tribe to operate a federally approved 211.18 family assistance program or any other program under the 211.19 supervision of the commissioner. The commissioner shall consult 211.20 with the affected county or counties in the contractual 211.21 agreement negotiations, if the county or counties wish to be 211.22 included, in order to avoid the duplication of county and tribal 211.23 assistance program services. The commissioner may establish 211.24 necessary accounts for the purposes of receiving and disbursing 211.25 funds as necessary for the operation of the programs. 211.26 (2)(b) Inform county agencies, on a timely basis, of 211.27 changes in statute, rule, federal law, regulation, and policy 211.28 necessary to county agency administration of the programs. 211.29 (3)(c) Administer and supervise all child welfare 211.30 activities; promote the enforcement of laws protecting 211.31 handicapped, dependent, neglected and delinquent children, and 211.32 children born to mothers who were not married to the children's 211.33 fathers at the times of the conception nor at the births of the 211.34 children; license and supervise child-caring and child-placing 211.35 agencies and institutions; supervise the care of children in 211.36 boarding and foster homes or in private institutions; and 212.1 generally perform all functions relating to the field of child 212.2 welfare now vested in the State Board of Control. 212.3 (4)(d) Administer and supervise all noninstitutional 212.4 service to handicapped persons, including those who are visually 212.5 impaired, hearing impaired, or physically impaired or otherwise 212.6 handicapped. The commissioner may provide and contract for the 212.7 care and treatment of qualified indigent children in facilities 212.8 other than those located and available at state hospitals when 212.9 it is not feasible to provide the service in state hospitals. 212.10 (5)(e) Assist and actively cooperate with other 212.11 departments, agencies and institutions, local, state, and 212.12 federal, by performing services in conformity with the purposes 212.13 of Laws 1939, chapter 431. 212.14 (6)(f) Act as the agent of and cooperate with the federal 212.15 government in matters of mutual concern relative to and in 212.16 conformity with the provisions of Laws 1939, chapter 431, 212.17 including the administration of any federal funds granted to the 212.18 state to aid in the performance of any functions of the 212.19 commissioner as specified in Laws 1939, chapter 431, and 212.20 including the promulgation of rules making uniformly available 212.21 medical care benefits to all recipients of public assistance, at 212.22 such times as the federal government increases its participation 212.23 in assistance expenditures for medical care to recipients of 212.24 public assistance, the cost thereof to be borne in the same 212.25 proportion as are grants of aid to said recipients. 212.26 (7)(g) Establish and maintain any administrative units 212.27 reasonably necessary for the performance of administrative 212.28 functions common to all divisions of the department. 212.29 (8)(h) Act as designated guardian of both the estate and 212.30 the person of all the wards of the state of Minnesota, whether 212.31 by operation of law or by an order of court, without any further 212.32 act or proceeding whatever, except as to persons committed as 212.33 mentally retarded. For children under the guardianship of the 212.34 commissioner whose interests would be best served by adoptive 212.35 placement, the commissioner may contract with a licensed 212.36 child-placing agency or a Minnesota tribal social services 213.1 agency to provide adoption services. A contract with a licensed 213.2 child-placing agency must be designed to supplement existing 213.3 county efforts and may not replace existing county programs, 213.4 unless the replacement is agreed to by the county board and the 213.5 appropriate exclusive bargaining representative or the 213.6 commissioner has evidence that child placements of the county 213.7 continue to be substantially below that of other counties. 213.8 Funds encumbered and obligated under an agreement for a specific 213.9 child shall remain available until the terms of the agreement 213.10 are fulfilled or the agreement is terminated. 213.11 (9)(i) Act as coordinating referral and informational 213.12 center on requests for service for newly arrived immigrants 213.13 coming to Minnesota. 213.14 (10)(j) The specific enumeration of powers and duties as 213.15 hereinabove set forth shall in no way be construed to be a 213.16 limitation upon the general transfer of powers herein contained. 213.17 (11)(k) Establish county, regional, or statewide schedules 213.18 of maximum fees and charges which may be paid by county agencies 213.19 for medical, dental, surgical, hospital, nursing and nursing 213.20 home care and medicine and medical supplies under all programs 213.21 of medical care provided by the state and for congregate living 213.22 care under the income maintenance programs. 213.23 (12)(l) Have the authority to conduct and administer 213.24 experimental projects to test methods and procedures of 213.25 administering assistance and services to recipients or potential 213.26 recipients of public welfare. To carry out such experimental 213.27 projects, it is further provided that the commissioner of human 213.28 services is authorized to waive the enforcement of existing 213.29 specific statutory program requirements, rules, and standards in 213.30 one or more counties. The order establishing the waiver shall 213.31 provide alternative methods and procedures of administration, 213.32 shall not be in conflict with the basic purposes, coverage, or 213.33 benefits provided by law, and in no event shall the duration of 213.34 a project exceed four years. It is further provided that no 213.35 order establishing an experimental project as authorized by the 213.36 provisions of this section shall become effective until the 214.1 following conditions have been met: 214.2 (a)(1) the secretary of health and human services of the 214.3 United States has agreed, for the same project, to waive state 214.4 plan requirements relative to statewide uniformity .; and 214.5 (b)(2) a comprehensive plan, including estimated project 214.6 costs, shall be approved by the Legislative Advisory Commission 214.7 and filed with the commissioner of administration. 214.8 (13)(m) According to federal requirements, establish 214.9 procedures to be followed by local welfare boards in creating 214.10 citizen advisory committees, including procedures for selection 214.11 of committee members. 214.12 (14)(n) Allocate federal fiscal disallowances or sanctions 214.13 which are based on quality control error rates for the aid to 214.14 families with dependent children program formerly codified in 214.15 sections 256.72 to 256.87, medical assistance, or food stamp 214.16 program in the following manner: 214.17 (a)(1) one-half of the total amount of the disallowance 214.18 shall be borne by the county boards responsible for 214.19 administering the programs. For the medical assistance and the 214.20 AFDC program formerly codified in sections 256.72 to 256.87, 214.21 disallowances shall be shared by each county board in the same 214.22 proportion as that county's expenditures for the sanctioned 214.23 program are to the total of all counties' expenditures for the 214.24 AFDC program formerly codified in sections 256.72 to 256.87, and 214.25 medical assistance programs. For the food stamp program, 214.26 sanctions shall be shared by each county board, with 50 percent 214.27 of the sanction being distributed to each county in the same 214.28 proportion as that county's administrative costs for food stamps 214.29 are to the total of all food stamp administrative costs for all 214.30 counties, and 50 percent of the sanctions being distributed to 214.31 each county in the same proportion as that county's value of 214.32 food stamp benefits issued are to the total of all benefits 214.33 issued for all counties. Each county shall pay its share of the 214.34 disallowance to the state of Minnesota. When a county fails to 214.35 pay the amount due hereunder, the commissioner may deduct the 214.36 amount from reimbursement otherwise due the county, or the 215.1 attorney general, upon the request of the commissioner, may 215.2 institute civil action to recover the amount due .; and 215.3 (b)(2) notwithstanding the provisions of paragraph215.4 (a)clause (1), if the disallowance results from knowing 215.5 noncompliance by one or more counties with a specific program 215.6 instruction, and that knowing noncompliance is a matter of 215.7 official county board record, the commissioner may require 215.8 payment or recover from the county or counties, in the manner 215.9 prescribed in paragraph (a)clause (1), an amount equal to the 215.10 portion of the total disallowance which resulted from the 215.11 noncompliance, and may distribute the balance of the 215.12 disallowance according to paragraph (a)clause (1). 215.13 (15)(o) Develop and implement special projects that 215.14 maximize reimbursements and result in the recovery of money to 215.15 the state. For the purpose of recovering state money, the 215.16 commissioner may enter into contracts with third parties. Any 215.17 recoveries that result from projects or contracts entered into 215.18 under this paragraph shall be deposited in the state treasury 215.19 and credited to a special account until the balance in the 215.20 account reaches $1,000,000. When the balance in the account 215.21 exceeds $1,000,000, the excess shall be transferred and credited 215.22 to the general fund. All money in the account is appropriated 215.23 to the commissioner for the purposes of this paragraph. 215.24 (16)(p) Have the authority to make direct payments to 215.25 facilities providing shelter to women and their children 215.26 according to section 256D.05, subdivision 3. Upon the written 215.27 request of a shelter facility that has been denied payments 215.28 under section 256D.05, subdivision 3, the commissioner shall 215.29 review all relevant evidence and make a determination within 30 215.30 days of the request for review regarding issuance of direct 215.31 payments to the shelter facility. Failure to act within 30 days 215.32 shall be considered a determination not to issue direct payments. 215.33 (17)(q) Have the authority to establish and enforce the 215.34 following county reporting requirements: 215.35 (a)(1) the commissioner shall establish fiscal and 215.36 statistical reporting requirements necessary to account for the 216.1 expenditure of funds allocated to counties for human services 216.2 programs. When establishing financial and statistical reporting 216.3 requirements, the commissioner shall evaluate all reports, in 216.4 consultation with the counties, to determine if the reports can 216.5 be simplified or the number of reports can be reduced .; 216.6 (b)(2) the county board shall submit monthly or quarterly 216.7 reports to the department as required by the commissioner. 216.8 Monthly reports are due no later than 15 working days after the 216.9 end of the month. Quarterly reports are due no later than 30 216.10 calendar days after the end of the quarter, unless the 216.11 commissioner determines that the deadline must be shortened to 216.12 20 calendar days to avoid jeopardizing compliance with federal 216.13 deadlines or risking a loss of federal funding. Only reports 216.14 that are complete, legible, and in the required format shall be 216.15 accepted by the commissioner .; 216.16 (c)(3) if the required reports are not received by the 216.17 deadlines established in clause (b)(2), the commissioner may 216.18 delay payments and withhold funds from the county board until 216.19 the next reporting period. When the report is needed to account 216.20 for the use of federal funds and the late report results in a 216.21 reduction in federal funding, the commissioner shall withhold 216.22 from the county boards with late reports an amount equal to the 216.23 reduction in federal funding until full federal funding is 216.24 received .; 216.25 (d)(4) a county board that submits reports that are late, 216.26 illegible, incomplete, or not in the required format for two out 216.27 of three consecutive reporting periods is considered 216.28 noncompliant. When a county board is found to be noncompliant, 216.29 the commissioner shall notify the county board of the reason the 216.30 county board is considered noncompliant and request that the 216.31 county board develop a corrective action plan stating how the 216.32 county board plans to correct the problem. The corrective 216.33 action plan must be submitted to the commissioner within 45 days 216.34 after the date the county board received notice of 216.35 noncompliance .; 216.36 (e)(5) the final deadline for fiscal reports or amendments 217.1 to fiscal reports is one year after the date the report was 217.2 originally due. If the commissioner does not receive a report 217.3 by the final deadline, the county board forfeits the funding 217.4 associated with the report for that reporting period and the 217.5 county board must repay any funds associated with the report 217.6 received for that reporting period .; 217.7 (f)(6) the commissioner may not delay payments, withhold 217.8 funds, or require repayment under paragraph (c)clause (3) or 217.9 (e)(5) if the county demonstrates that the commissioner failed 217.10 to provide appropriate forms, guidelines, and technical 217.11 assistance to enable the county to comply with the 217.12 requirements. If the county board disagrees with an action 217.13 taken by the commissioner under paragraph (c)clause (3) or 217.14 (e)(5), the county board may appeal the action according to 217.15 sections 14.57 to 14.69 .; and 217.16 (g)(7) counties subject to withholding of funds under 217.17 paragraph (c)clause (3) or forfeiture or repayment of funds 217.18 under paragraph (e)clause (5) shall not reduce or withhold 217.19 benefits or services to clients to cover costs incurred due to 217.20 actions taken by the commissioner under paragraph (c)clause (3) 217.21 or (e)(5). 217.22 (18)(r) Allocate federal fiscal disallowances or sanctions 217.23 for audit exceptions when federal fiscal disallowances or 217.24 sanctions are based on a statewide random sample for the foster 217.25 care program under title IV-E of the Social Security Act, United 217.26 States Code, title 42, in direct proportion to each county's 217.27 title IV-E foster care maintenance claim for that period. 217.28 (19)(s) Be responsible for ensuring the detection, 217.29 prevention, investigation, and resolution of fraudulent 217.30 activities or behavior by applicants, recipients, and other 217.31 participants in the human services programs administered by the 217.32 department. 217.33 (20)(t) Require county agencies to identify overpayments, 217.34 establish claims, and utilize all available and cost-beneficial 217.35 methodologies to collect and recover these overpayments in the 217.36 human services programs administered by the department. 218.1 (21)(u) Have the authority to administer a drug rebate 218.2 program for drugs purchased pursuant to the prescription drug 218.3 program established under section 256.955 after the 218.4 beneficiary's satisfaction of any deductible established in the 218.5 program. The commissioner shall require a rebate agreement from 218.6 all manufacturers of covered drugs as defined in section 218.7 256B.0625, subdivision 13. Rebate agreements for prescription 218.8 drugs delivered on or after July 1, 2002, must include rebates 218.9 for individuals covered under the prescription drug program who 218.10 are under 65 years of age. For each drug, the amount of the 218.11 rebate shall be equal to the rebate as defined for purposes of 218.12 the federal rebate program in United States Code, title 42, 218.13 section 1396r-8(c)(1)1396r-8. The manufacturers must provide 218.14 full payment within 30 days of receipt of the state invoice for 218.15 the rebate within the terms and conditions used for the federal 218.16 rebate program established pursuant to section 1927 of title XIX 218.17 of the Social Security Act. The manufacturers must provide the 218.18 commissioner with any information necessary to verify the rebate 218.19 determined per drug. The rebate program shall utilize the terms 218.20 and conditions used for the federal rebate program established 218.21 pursuant to section 1927 of title XIX of the Social Security Act. 218.22 (22)(v) Have the authority to administer the federal drug 218.23 rebate program for drugs purchased under the medical assistance 218.24 program as allowed by section 1927 of title XIX of the Social 218.25 Security Act and according to the terms and conditions of 218.26 section 1927. Rebates shall be collected for all drugs that 218.27 have been dispensed or administered in an outpatient setting and 218.28 that are from manufacturers who have signed a rebate agreement 218.29 with the United States Department of Health and Human Services. 218.30 (23)(w) Have the authority to administer a supplemental 218.31 drug rebate program for drugs purchased under the medical 218.32 assistance program. The commissioner may enter into 218.33 supplemental rebate contracts with pharmaceutical manufacturers 218.34 and may require prior authorization for drugs that are from 218.35 manufacturers that have not signed a supplemental rebate 218.36 contract. Prior authorization of drugs shall be subject to the 219.1 provisions of section 256B.0625, subdivision 13. 219.2 (24)(x) Operate the department's communication systems 219.3 account established in Laws 1993, First Special Session chapter 219.4 1, article 1, section 2, subdivision 2, to manage shared 219.5 communication costs necessary for the operation of the programs 219.6 the commissioner supervises. A communications account may also 219.7 be established for each regional treatment center which operates 219.8 communications systems. Each account must be used to manage 219.9 shared communication costs necessary for the operations of the 219.10 programs the commissioner supervises. The commissioner may 219.11 distribute the costs of operating and maintaining communication 219.12 systems to participants in a manner that reflects actual usage. 219.13 Costs may include acquisition, licensing, insurance, 219.14 maintenance, repair, staff time and other costs as determined by 219.15 the commissioner. Nonprofit organizations and state, county, 219.16 and local government agencies involved in the operation of 219.17 programs the commissioner supervises may participate in the use 219.18 of the department's communications technology and share in the 219.19 cost of operation. The commissioner may accept on behalf of the 219.20 state any gift, bequest, devise or personal property of any 219.21 kind, or money tendered to the state for any lawful purpose 219.22 pertaining to the communication activities of the department. 219.23 Any money received for this purpose must be deposited in the 219.24 department's communication systems accounts. Money collected by 219.25 the commissioner for the use of communication systems must be 219.26 deposited in the state communication systems account and is 219.27 appropriated to the commissioner for purposes of this section. 219.28 (25)(y) Receive any federal matching money that is made 219.29 available through the medical assistance program for the 219.30 consumer satisfaction survey. Any federal money received for 219.31 the survey is appropriated to the commissioner for this 219.32 purpose. The commissioner may expend the federal money received 219.33 for the consumer satisfaction survey in either year of the 219.34 biennium. 219.35 (26)(z) Designate community information and referral call 219.36 centers and Incorporate cost reimbursement claims from First220.1 Call Minnesota and Greater Twin Cities United Waythe designated 220.2 community information and referral call centers into the federal 220.3 cost reimbursement claiming processes of the department 220.4 according to federal law, rule, and regulations. Existing 220.5 information and referral centers provided by Greater Twin Cities 220.6 United Way or existing call centers for which Greater Twin 220.7 Cities United Way has legal authority to represent, shall be 220.8 included in these designations upon review by the commissioner 220.9 and assurance that these services are accredited and in 220.10 compliance with national standards. Any reimbursement received220.11 is appropriated to the commissioner and all designated 220.12 information and referral centers shall be disbursed to First220.13 Call Minnesota and Greater Twinreceive payments Cities United220.14 Wayaccording to normal department paymentschedules established 220.15 by the commissioner upon final approval of allocation 220.16 methodologies from the United States Department of Health and 220.17 Human Services Division of Cost Allocation or other appropriate 220.18 authorities. 220.19 (27)(aa) Develop recommended standards for foster care 220.20 homes that address the components of specialized therapeutic 220.21 services to be provided by foster care homes with those services. 220.22 Sec. 18. Minnesota Statutes 2002, section 256.955, 220.23 subdivision 2, is amended to read: 220.24 Subd. 2. [DEFINITIONS.] (a) For purposes of this section, 220.25 the following definitions apply. 220.26 (b) "Health plan" has the meaning provided in section 220.27 62Q.01, subdivision 3. 220.28 (c) "Health plan company" has the meaning provided in 220.29 section 62Q.01, subdivision 4. 220.30 (d) "Qualified individual" means an individual who meets 220.31 the requirements described in subdivision 2a or 2b, and: 220.32 (1) who is not determined eligible for medical assistance 220.33 according to section 256B.0575, who is not determined eligible 220.34 for medical assistance or general assistance medical care220.35 without a spenddown, or who is not enrolled in MinnesotaCare; 220.36 (2) is not enrolled in prescription drug coverage under a 221.1 health plan; 221.2 (3) is not enrolled in prescription drug coverage under a 221.3 Medicare supplement plan, as defined in sections 62A.31 to 221.4 62A.44, or policies, contracts, or certificates that supplement 221.5 Medicare issued by health maintenance organizations or those 221.6 policies, contracts, or certificates governed by section 1833 or 221.7 1876 of the federal Social Security Act, United States Code, 221.8 title 42, section 1395, et seq., as amended; 221.9 (4) has not had coverage described in clauses (2) and (3) 221.10 for at least four months prior to application for the program; 221.11 and 221.12 (5) is a permanent resident of Minnesota as defined in 221.13 section 256L.09. 221.14 Sec. 19. Minnesota Statutes 2003 Supplement, section 221.15 256.955, subdivision 2a, is amended to read: 221.16 Subd. 2a. [ELIGIBILITY.] An individual satisfying the 221.17 following requirements and the requirements described in 221.18 subdivision 2, paragraph (d), is eligible for the prescription 221.19 drug program: 221.20 (1) is at least 65 years of age or older; and 221.21 (2) is eligible as a qualified Medicare beneficiary 221.22 according to section 256B.057, subdivision 3 or 3a, or is 221.23 eligible under section 256B.057, subdivision 3 or 3a, and is 221.24 also eligible for medical assistance or general assistance221.25 medical carewith a spenddown as defined in section 256B.056, 221.26 subdivision 5. 221.27 Sec. 20. Minnesota Statutes 2002, section 256.955, 221.28 subdivision 2b, is amended to read: 221.29 Subd. 2b. [ELIGIBILITY.] Effective July 1, 2002, an 221.30 individual satisfying the following requirements and the 221.31 requirements described in subdivision 2, paragraph (d), is 221.32 eligible for the prescription drug program: 221.33 (1) is under 65 years of age; and 221.34 (2) is eligible as a qualified Medicare beneficiary 221.35 according to section 256B.057, subdivision 3 or 3a or is 221.36 eligible under section 256B.057, subdivision 3 or 3a and is also 222.1 eligible for medical assistance or general assistance medical222.2 carewith a spenddown as defined in section 256B.056, 222.3 subdivision 5. 222.4 Sec. 21. Minnesota Statutes 2003 Supplement, section 222.5 256B.06, subdivision 4, is amended to read: 222.6 Subd. 4. [CITIZENSHIP REQUIREMENTS.] (a) Eligibility for 222.7 medical assistance is limited to citizens of the United States, 222.8 qualified noncitizens as defined in this subdivision, and other 222.9 persons residing lawfully in the United States. 222.10 (b) "Qualified noncitizen" means a person who meets one of 222.11 the following immigration criteria: 222.12 (1) admitted for lawful permanent residence according to 222.13 United States Code, title 8; 222.14 (2) admitted to the United States as a refugee according to 222.15 United States Code, title 8, section 1157; 222.16 (3) granted asylum according to United States Code, title 222.17 8, section 1158; 222.18 (4) granted withholding of deportation according to United 222.19 States Code, title 8, section 1253(h); 222.20 (5) paroled for a period of at least one year according to 222.21 United States Code, title 8, section 1182(d)(5); 222.22 (6) granted conditional entrant status according to United 222.23 States Code, title 8, section 1153(a)(7); 222.24 (7) determined to be a battered noncitizen by the United 222.25 States Attorney General according to the Illegal Immigration 222.26 Reform and Immigrant Responsibility Act of 1996, title V of the 222.27 Omnibus Consolidated Appropriations Bill, Public Law 104-200; 222.28 (8) is a child of a noncitizen determined to be a battered 222.29 noncitizen by the United States Attorney General according to 222.30 the Illegal Immigration Reform and Immigrant Responsibility Act 222.31 of 1996, title V, of the Omnibus Consolidated Appropriations 222.32 Bill, Public Law 104-200; or 222.33 (9) determined to be a Cuban or Haitian entrant as defined 222.34 in section 501(e) of Public Law 96-422, the Refugee Education 222.35 Assistance Act of 1980. 222.36 (c) All qualified noncitizens who were residing in the 223.1 United States before August 22, 1996, who otherwise meet the 223.2 eligibility requirements of this chapter, are eligible for 223.3 medical assistance with federal financial participation. 223.4 (d) All qualified noncitizens who entered the United States 223.5 on or after August 22, 1996, and who otherwise meet the 223.6 eligibility requirements of this chapter, are eligible for 223.7 medical assistance with federal financial participation through 223.8 November 30, 1996. 223.9 Beginning December 1, 1996, qualified noncitizens who 223.10 entered the United States on or after August 22, 1996, and who 223.11 otherwise meet the eligibility requirements of this chapter are 223.12 eligible for medical assistance with federal participation for 223.13 five years if they meet one of the following criteria: 223.14 (i) refugees admitted to the United States according to 223.15 United States Code, title 8, section 1157; 223.16 (ii) persons granted asylum according to United States 223.17 Code, title 8, section 1158; 223.18 (iii) persons granted withholding of deportation according 223.19 to United States Code, title 8, section 1253(h); 223.20 (iv) veterans of the United States armed forces with an 223.21 honorable discharge for a reason other than noncitizen status, 223.22 their spouses and unmarried minor dependent children; or 223.23 (v) persons on active duty in the United States armed 223.24 forces, other than for training, their spouses and unmarried 223.25 minor dependent children. 223.26 Beginning December 1, 1996, qualified noncitizens who do 223.27 not meet one of the criteria in items (i) to (v) are eligible 223.28 for medical assistance without federal financial participation 223.29 as described in paragraph (j). 223.30 (e) Noncitizens who are not qualified noncitizens as 223.31 defined in paragraph (b), who are lawfully residing in the 223.32 United States and who otherwise meet the eligibility 223.33 requirements of this chapter, are eligible for medical 223.34 assistance under clauses (1) to (3). These individuals must 223.35 cooperate with the Immigration and Naturalization Service to 223.36 pursue any applicable immigration status, including citizenship, 224.1 that would qualify them for medical assistance with federal 224.2 financial participation. 224.3 (1) Persons who were medical assistance recipients on 224.4 August 22, 1996, are eligible for medical assistance with 224.5 federal financial participation through December 31, 1996. 224.6 (2) Beginning January 1, 1997, persons described in clause 224.7 (1) are eligible for medical assistance without federal 224.8 financial participation as described in paragraph (j). 224.9 (3) Beginning December 1, 1996, persons residing in the 224.10 United States prior to August 22, 1996, who were not receiving 224.11 medical assistance and persons who arrived on or after August 224.12 22, 1996, are eligible for medical assistance without federal 224.13 financial participation as described in paragraph (j). 224.14 (f) Nonimmigrants who otherwise meet the eligibility 224.15 requirements of this chapter are eligible for the benefits as 224.16 provided in paragraphs (g) to (i). For purposes of this 224.17 subdivision, a "nonimmigrant" is a person in one of the classes 224.18 listed in United States Code, title 8, section 1101(a)(15). 224.19 (g) Payment shall also be made for care and services that 224.20 are furnished to noncitizens, regardless of immigration status, 224.21 who otherwise meet the eligibility requirements of this chapter, 224.22 if such care and services are necessary for the treatment of an 224.23 emergency medical condition, except for organ transplants and 224.24 related care and services and routine prenatal care. 224.25 (h) For purposes of this subdivision, the term "emergency 224.26 medical condition" means a medical condition that meets the 224.27 requirements of United States Code, title 42, section 1396b(v). 224.28 (i) Pregnant noncitizens who are undocumented or 224.29 nonimmigrants, who otherwise meet the eligibility requirements 224.30 of this chapter, are eligible for medical assistance payment 224.31 without federal financial participation for care and services 224.32 through the period of pregnancy, and 60 days postpartum, except 224.33 for labor and delivery. 224.34 (j) Qualified noncitizens as described in paragraph (d), 224.35 and all other noncitizens lawfully residing in the United States 224.36 as described in paragraph (e), who are ineligible for medical 225.1 assistance with federal financial participation and who 225.2 otherwise meet the eligibility requirements of chapter 256B and 225.3 of this paragraph, are eligible for medical assistance without 225.4 federal financial participation. Qualified noncitizens as 225.5 described in paragraph (d) are only eligible for medical 225.6 assistance without federal financial participation for five 225.7 years from their date of entry into the United States. 225.8 (k) Beginning October 1, 2003, persons who are receiving 225.9 care and rehabilitation services from a nonprofit center 225.10 established to serve victims of torture and are otherwise 225.11 ineligible for medical assistance under this chapter or general225.12 assistance medical care under section 256D.03are eligible for 225.13 medical assistance without federal financial participation. 225.14 These individuals are eligible only for the period during which 225.15 they are receiving services from the center. Individuals 225.16 eligible under this paragraph shall not be required to 225.17 participate in prepaid medical assistance. 225.18 Sec. 22. Minnesota Statutes 2003 Supplement, section 225.19 256B.0625, subdivision 9, is amended to read: 225.20 Subd. 9. [DENTAL SERVICES.] (a) Medical assistance covers 225.21 dental services. Dental services include, with prior 225.22 authorization, fixed bridges that are cost-effective for persons 225.23 who cannot use removable dentures because of their medical 225.24 condition. 225.25 (b) Coverage of dental services for adults age 21 and over 225.26 who are not pregnant is subject to a $500 annual benefit limit 225.27 and covered services are limited to: 225.28 (1) diagnostic and preventative services; 225.29 (2) basicrestorative services; and 225.30 (3) emergency services. 225.31 Emergency services, dentures, and extractions related to 225.32 dentures are not included in the $500 annual benefit limit. 225.33 Sec. 23. Minnesota Statutes 2003 Supplement, section 225.34 256D.03, subdivision 3, is amended to read: 225.35 Subd. 3. [GENERAL ASSISTANCE MEDICAL CARE; ELIGIBILITY.] 225.36 (a) General assistance medical care may be paid for any person 226.1 who is not eligible for medical assistance under chapter 256B, 226.2 including eligibility for medical assistance based on a 226.3 spenddown of excess income according to section 256B.056, 226.4 subdivision 5, or MinnesotaCare as defined in paragraph (b), 226.5 except as provided in paragraph (c), and: 226.6 (1) who is receiving assistance under section 256D.05, 226.7 except for families with children who are eligible under 226.8 Minnesota family investment program (MFIP), or who is having a 226.9 payment made on the person's behalf under sections 256I.01 to 226.10 256I.06; or 226.11 (2) who is a resident of Minnesota; and 226.12 (i) who has gross countable income not in excess of 75 226.13 percent of the federal poverty guidelines for the family size, 226.14 using a six-month budget period and whose equity in assets is 226.15 not in excess of $1,000 per assistance unit. Exempt assets, the 226.16 reduction of excess assets, and the waiver of excess assets must 226.17 conform to the medical assistance program in section 256B.056, 226.18 subdivision 3, with the following exception: the maximum amount 226.19 of undistributed funds in a trust that could be distributed to 226.20 or on behalf of the beneficiary by the trustee, assuming the 226.21 full exercise of the trustee's discretion under the terms of the 226.22 trust, must be applied toward the asset maximum; or 226.23 (ii) who has gross countable income above 75 percent of the 226.24 federal poverty guidelines but not in excess of 175 percent of 226.25 the federal poverty guidelines for the family size, using a 226.26 six-month budget period, whose equity in assets is not in excess 226.27 of the limits in section 256B.056, subdivision 3c, and who 226.28 applies during an inpatient hospitalization. 226.29 (b) General assistance medical care may not be paid for 226.30 applicants or recipients who meet all eligibility requirements 226.31 of MinnesotaCare as defined in sections 256L.01 to 256L.16, and 226.32 are adults with dependent children under 21 whose gross family 226.33 income is equal to or less than 275 percent of the federal 226.34 poverty guidelines. 226.35 (c) For applications received on or after October 1, 2003, 226.36 eligibility may begin no earlier than the date of application. 227.1 For individuals eligible under paragraph (a), clause (2), item 227.2 (i), a redetermination of eligibility must occur every 12 227.3 months. Individuals are eligible under paragraph (a), clause 227.4 (2), item (ii), only during inpatient hospitalization but may 227.5 reapply if there is a subsequent period of inpatient 227.6 hospitalization. Beginning January 1, 2000, Minnesota health 227.7 care program applications completed by recipients and applicants 227.8 who are persons described in paragraph (b), may be returned to 227.9 the county agency to be forwarded to the Department of Human 227.10 Services or sent directly to the Department of Human Services 227.11 for enrollment in MinnesotaCare. If all other eligibility 227.12 requirements of this subdivision are met, eligibility for 227.13 general assistance medical care shall be available in any month 227.14 during which a MinnesotaCare eligibility determination and 227.15 enrollment are pending. Upon notification of eligibility for 227.16 MinnesotaCare, notice of termination for eligibility for general 227.17 assistance medical care shall be sent to an applicant or 227.18 recipient. If all other eligibility requirements of this 227.19 subdivision are met, eligibility for general assistance medical 227.20 care shall be available until enrollment in MinnesotaCare 227.21 subject to the provisions of paragraph (e). 227.22 (d) The date of an initial Minnesota health care program 227.23 application necessary to begin a determination of eligibility 227.24 shall be the date the applicant has provided a name, address, 227.25 and Social Security number, signed and dated, to the county 227.26 agency or the Department of Human Services. If the applicant is 227.27 unable to provide a name, address, Social Security number, and 227.28 signature when health care is delivered due to a medical 227.29 condition or disability, a health care provider may act on an 227.30 applicant's behalf to establish the date of an initial Minnesota 227.31 health care program application by providing the county agency 227.32 or Department of Human Services with provider identification and 227.33 a temporary unique identifier for the applicant. The applicant 227.34 must complete the remainder of the application and provide 227.35 necessary verification before eligibility can be determined. 227.36 The county agency must assist the applicant in obtaining 228.1 verification if necessary. 228.2 (e) County agencies are authorized to use all automated 228.3 databases containing information regarding recipients' or 228.4 applicants' income in order to determine eligibility for general 228.5 assistance medical care or MinnesotaCare. Such use shall be 228.6 considered sufficient in order to determine eligibility and 228.7 premium payments by the county agency. 228.8 (f) General assistance medical care is not available for a 228.9 person in a correctional facility unless the person is detained 228.10 by law for less than one year in a county correctional or 228.11 detention facility as a person accused or convicted of a crime, 228.12 or admitted as an inpatient to a hospital on a criminal hold 228.13 order, and the person is a recipient of general assistance 228.14 medical care at the time the person is detained by law or 228.15 admitted on a criminal hold order and as long as the person 228.16 continues to meet other eligibility requirements of this 228.17 subdivision. 228.18 (g) General assistance medical care is not available for 228.19 applicants or recipients who do not cooperate with the county 228.20 agency to meet the requirements of medical assistance. 228.21 (h) In determining the amount of assets of an individual 228.22 eligible under paragraph (a), clause (2), item (i), there shall 228.23 be included any asset or interest in an asset, including an 228.24 asset excluded under paragraph (a), that was given away, sold, 228.25 or disposed of for less than fair market value within the 60 228.26 months preceding application for general assistance medical care 228.27 or during the period of eligibility. Any transfer described in 228.28 this paragraph shall be presumed to have been for the purpose of 228.29 establishing eligibility for general assistance medical care, 228.30 unless the individual furnishes convincing evidence to establish 228.31 that the transaction was exclusively for another purpose. For 228.32 purposes of this paragraph, the value of the asset or interest 228.33 shall be the fair market value at the time it was given away, 228.34 sold, or disposed of, less the amount of compensation received. 228.35 For any uncompensated transfer, the number of months of 228.36 ineligibility, including partial months, shall be calculated by 229.1 dividing the uncompensated transfer amount by the average 229.2 monthly per person payment made by the medical assistance 229.3 program to skilled nursing facilities for the previous calendar 229.4 year. The individual shall remain ineligible until this fixed 229.5 period has expired. The period of ineligibility may exceed 30 229.6 months, and a reapplication for benefits after 30 months from 229.7 the date of the transfer shall not result in eligibility unless 229.8 and until the period of ineligibility has expired. The period 229.9 of ineligibility begins in the month the transfer was reported 229.10 to the county agency, or if the transfer was not reported, the 229.11 month in which the county agency discovered the transfer, 229.12 whichever comes first. For applicants, the period of 229.13 ineligibility begins on the date of the first approved 229.14 application. 229.15 (i) When determining eligibility for any state benefits 229.16 under this subdivision, the income and resources of all 229.17 noncitizens shall be deemed to include their sponsor's income 229.18 and resources as defined in the Personal Responsibility and Work 229.19 Opportunity Reconciliation Act of 1996, title IV, Public Law 229.20 104-193, sections 421 and 422, and subsequently set out in 229.21 federal rules. 229.22 (j) Undocumented noncitizens and nonimmigrants are 229.23 ineligible for general assistance medical care , except an229.24 individual eligible under paragraph (a), clause (4), remains229.25 eligible through September 30, 2003. For purposes of this 229.26 subdivision, a nonimmigrant is an individual in one or more of 229.27 the classes listed in United States Code, title 8, section 229.28 1101(a)(15), and an undocumented noncitizen is an individual who 229.29 resides in the United States without the approval or 229.30 acquiescence of the Immigration and Naturalization Service. 229.31 (k) Notwithstanding any other provision of law, a 229.32 noncitizen who is ineligible for medical assistance due to the 229.33 deeming of a sponsor's income and resources, is ineligible for 229.34 general assistance medical care. 229.35 (l) Effective July 1, 2003, general assistance medical care 229.36 emergency services end. 230.1 Sec. 24. Minnesota Statutes 2003 Supplement, section 230.2 256D.03, subdivision 4, is amended to read: 230.3 Subd. 4. [GENERAL ASSISTANCE MEDICAL CARE; SERVICES.] 230.4 (a)(i) For a person who is eligible under subdivision 3, 230.5 paragraph (a), clause (2), item (i), general assistance medical 230.6 care covers, except as provided in paragraph (c): 230.7 (1) inpatient hospital services; 230.8 (2) outpatient hospital services; 230.9 (3) services provided by Medicare certified rehabilitation 230.10 agencies; 230.11 (4) prescription drugs and other products recommended 230.12 through the process established in section 256B.0625, 230.13 subdivision 13; 230.14 (5) equipment necessary to administer insulin and 230.15 diagnostic supplies and equipment for diabetics to monitor blood 230.16 sugar level; 230.17 (6) eyeglasses and eye examinations provided by a physician 230.18 or optometrist; 230.19 (7) hearing aids; 230.20 (8) prosthetic devices; 230.21 (9) laboratory and X-ray services; 230.22 (10) physician's services; 230.23 (11) medical transportation except special transportation; 230.24 (12) chiropractic services as covered under the medical 230.25 assistance program; 230.26 (13) podiatric services; 230.27 (14) dental services and dentures, subject to the 230.28 limitations specified in section 256B.0625, subdivision 9; 230.29 (15) outpatient services provided by a mental health center 230.30 or clinic that is under contract with the county board and is 230.31 established under section 245.62; 230.32 (16) day treatment services for mental illness provided 230.33 under contract with the county board; 230.34 (17) prescribed medications for persons who have been 230.35 diagnosed as mentally ill as necessary to prevent more 230.36 restrictive institutionalization; 231.1 (18) psychological services, medical supplies and 231.2 equipment, and Medicare premiums, coinsurance and deductible 231.3 payments; 231.4 (19) medical equipment not specifically listed in this 231.5 paragraph when the use of the equipment will prevent the need 231.6 for costlier services that are reimbursable under this 231.7 subdivision; 231.8 (20) services performed by a certified pediatric nurse 231.9 practitioner, a certified family nurse practitioner, a certified 231.10 adult nurse practitioner, a certified obstetric/gynecological 231.11 nurse practitioner, a certified neonatal nurse practitioner, or 231.12 a certified geriatric nurse practitioner in independent 231.13 practice, if (1) the service is otherwise covered under this 231.14 chapter as a physician service, (2) the service provided on an 231.15 inpatient basis is not included as part of the cost for 231.16 inpatient services included in the operating payment rate, and 231.17 (3) the service is within the scope of practice of the nurse 231.18 practitioner's license as a registered nurse, as defined in 231.19 section 148.171; 231.20 (21) services of a certified public health nurse or a 231.21 registered nurse practicing in a public health nursing clinic 231.22 that is a department of, or that operates under the direct 231.23 authority of, a unit of government, if the service is within the 231.24 scope of practice of the public health nurse's license as a 231.25 registered nurse, as defined in section 148.171; and 231.26 (22) telemedicine consultations, to the extent they are 231.27 covered under section 256B.0625, subdivision 3b. 231.28 (ii) Effective October 1, 2003, for a person who is 231.29 eligible under subdivision 3, paragraph (a), clause (2), item 231.30 (ii), general assistance medical care coverage is limited to 231.31 inpatient hospital services, including physician services 231.32 provided during the inpatient hospital stay. A $1,000 231.33 deductible is required for each inpatient hospitalization. 231.34 (b) Gender reassignment surgery and related services are 231.35 not covered services under this subdivision unless the 231.36 individual began receiving gender reassignment services prior to 232.1 July 1, 1995. 232.2 (c) In order to contain costs, the commissioner of human 232.3 services shall select vendors of medical care who can provide 232.4 the most economical care consistent with high medical standards 232.5 and shall where possible contract with organizations on a 232.6 prepaid capitation basis to provide these services. The 232.7 commissioner shall consider proposals by counties and vendors 232.8 for prepaid health plans, competitive bidding programs, block 232.9 grants, or other vendor payment mechanisms designed to provide 232.10 services in an economical manner or to control utilization, with 232.11 safeguards to ensure that necessary services are provided. 232.12 Before implementing prepaid programs in counties with a county 232.13 operated or affiliated public teaching hospital or a hospital or 232.14 clinic operated by the University of Minnesota, the commissioner 232.15 shall consider the risks the prepaid program creates for the 232.16 hospital and allow the county or hospital the opportunity to 232.17 participate in the program in a manner that reflects the risk of 232.18 adverse selection and the nature of the patients served by the 232.19 hospital, provided the terms of participation in the program are 232.20 competitive with the terms of other participants considering the 232.21 nature of the population served. Payment for services provided 232.22 pursuant to this subdivision shall be as provided to medical 232.23 assistance vendors of these services under sections 256B.02, 232.24 subdivision 8, and 256B.0625. For payments made during fiscal 232.25 year 1990 and later years, the commissioner shall consult with 232.26 an independent actuary in establishing prepayment rates, but 232.27 shall retain final control over the rate methodology. 232.28 (d) Recipients eligible under subdivision 3, paragraph (a), 232.29 clause (2), item (i), shall pay the following co-payments for 232.30 services provided on or after October 1, 2003: 232.31 (1) $3 per nonpreventive visit. For purposes of this 232.32 subdivision, a visit means an episode of service which is 232.33 required because of a recipient's symptoms, diagnosis, or 232.34 established illness, and which is delivered in an ambulatory 232.35 setting by a physician or physician ancillary, chiropractor, 232.36 podiatrist, nurse midwife, advanced practice nurse, audiologist, 233.1 optician, or optometrist; 233.2 (2) $25 for eyeglasses; 233.3 (3) $25 for nonemergency visits to a hospital-based 233.4 emergency room; 233.5 (4) $3 per brand-name drug prescription and $1 per generic 233.6 drug prescription, subject to a $20 per month maximum for 233.7 prescription drug co-payments. No co-payments shall apply to 233.8 antipsychotic drugs when used for the treatment of mental 233.9 illness; and 233.10 (5) 50 percent coinsurance on basicrestorative dental 233.11 services. 233.12 (e) Co-payments shall be limited to one per day per 233.13 provider for nonpreventive visits, eyeglasses, and nonemergency 233.14 visits to a hospital-based emergency room. Recipients of 233.15 general assistance medical care are responsible for all 233.16 co-payments in this subdivision. The general assistance medical 233.17 care reimbursement to the provider shall be reduced by the 233.18 amount of the co-payment, except that reimbursement for 233.19 prescription drugs shall not be reduced once a recipient has 233.20 reached the $20 per month maximum for prescription drug 233.21 co-payments. The provider collects the co-payment from the 233.22 recipient. Providers may not deny services to recipients who 233.23 are unable to pay the co-payment, except as provided in 233.24 paragraph (f). 233.25 (f) If it is the routine business practice of a provider to 233.26 refuse service to an individual with uncollected debt, the 233.27 provider may include uncollected co-payments under this 233.28 section. A provider must give advance notice to a recipient 233.29 with uncollected debt before services can be denied. 233.30 (g) Any county may, from its own resources, provide medical 233.31 payments for which state payments are not made. 233.32 (h) Chemical dependency services that are reimbursed under 233.33 chapter 254B must not be reimbursed under general assistance 233.34 medical care. 233.35 (i) The maximum payment for new vendors enrolled in the 233.36 general assistance medical care program after the base year 234.1 shall be determined from the average usual and customary charge 234.2 of the same vendor type enrolled in the base year. 234.3 (j) The conditions of payment for services under this 234.4 subdivision are the same as the conditions specified in rules 234.5 adopted under chapter 256B governing the medical assistance 234.6 program, unless otherwise provided by statute or rule. 234.7 (k) Inpatient and outpatient payments shall be reduced by 234.8 five percent, effective July 1, 2003. This reduction is in 234.9 addition to the five percent reduction effective July 1, 2003, 234.10 and incorporated by reference in paragraph (i). 234.11 (l) Payments for all other health services except 234.12 inpatient, outpatient, and pharmacy services shall be reduced by 234.13 five percent, effective July 1, 2003. 234.14 (m) Payments to managed care plans shall be reduced by five 234.15 percent for services provided on or after October 1, 2003. 234.16 (n) A hospital receiving a reduced payment as a result of 234.17 this section may apply the unpaid balance toward satisfaction of 234.18 the hospital's bad debts. 234.19 Sec. 25. Minnesota Statutes 2003 Supplement, section 234.20 295.50, subdivision 9b, is amended to read: 234.21 Subd. 9b. [PATIENT SERVICES.] (a) "Patient services" means 234.22 inpatient and outpatient services and other goods and services 234.23 provided by hospitals, surgical centers, or health care 234.24 providers. They include the following health care goods and 234.25 services provided to a patient or consumer: 234.26 (1) bed and board; 234.27 (2) nursing services and other related services; 234.28 (3) use of hospitals, surgical centers, or health care 234.29 provider facilities; 234.30 (4) medical social services; 234.31 (5) drugs, biologicals, supplies, appliances, and 234.32 equipment; 234.33 (6) other diagnostic or therapeutic items or services; 234.34 (7) medical or surgical services; 234.35 (8) items and services furnished to ambulatory patients not 234.36 requiring emergency care; and 235.1 (9) emergency services ; and235.2 (10) covered services listed in section 256B.0625 and in235.3 Minnesota Rules, parts 9505.0170 to 9505.0475. 235.4 (b) "Patient services" does not include: 235.5 (1) services provided to nursing homes licensed under 235.6 chapter 144A; 235.7 (2) examinations for purposes of utilization reviews, 235.8 insurance claims or eligibility, litigation, and employment, 235.9 including reviews of medical records for those purposes; 235.10 (3) services provided to and by community residential 235.11 mental health facilities licensed under Minnesota Rules, parts 235.12 9520.0500 to 9520.0690, and to and by residential treatment 235.13 programs for children with severe emotional disturbance licensed 235.14 or certified under chapter 245A; 235.15 (4) services provided to and by community support programs 235.16 and family community support programs approved under Minnesota 235.17 Rules, parts 9535.1700 to 9535.1760 or certified as mental 235.18 health rehabilitative services under chapter 256B; 235.19 (5) services provided to and by community mental health 235.20 centers as defined in section 245.62, subdivision 2; 235.21 (6) services provided to and by assisted living programs 235.22 and congregate housing programs; and235.23 (7) hospice care services .; 235.24 (8) home and community-based waivered services under 235.25 sections 256B.0915, 256B.49, 256B.491, and 256B.501; 235.26 (9) targeted case management services under sections 235.27 256B.0621; 256B.0625, subdivisions 20, 20a, 33, and 44; and 235.28 256B.094; and 235.29 (10) services provided to the following: supervised living 235.30 facilities for persons with mental retardation or related 235.31 conditions licensed under Minnesota Rules, parts 4665.0100 to 235.32 4665.9900; housing with services establishments required to be 235.33 registered under chapter 144D; board and lodging establishments 235.34 providing only custodial services that are licensed under 235.35 chapter 157 and registered under section 157.17 to provide 235.36 supportive services or health supervision services; adult foster 236.1 homes as defined in Minnesota Rules, part 9555.5105; day 236.2 training and habilitation services for adults with mental 236.3 retardation and related conditions as defined in section 252.41, 236.4 subdivision 3; boarding care homes as defined in Minnesota 236.5 Rules, part 4655.0100; adult day care services as defined in 236.6 section 245A.02, subdivision 2a; and home health agencies as 236.7 defined in Minnesota Rules, part 9505.0175, subpart 15, or 236.8 licensed under chapter 144A. 236.9 [EFFECTIVE DATE.]This section is effective retroactively 236.10 from January 1, 2004. 236.11 Sec. 26. Minnesota Statutes 2003 Supplement, section 236.12 295.53, subdivision 1, is amended to read: 236.13 Subdivision 1. [EXEMPTIONS.] (a) The following payments 236.14 are excluded from the gross revenues subject to the hospital, 236.15 surgical center, or health care provider taxes under sections 236.16 295.50 to 295.59: 236.17 (1) payments received for services provided under the 236.18 Medicare program, including payments received from the 236.19 government, and organizations governed by sections 1833 and 1876 236.20 of title XVIII of the federal Social Security Act, United States 236.21 Code, title 42, section 1395, and enrollee deductibles, 236.22 coinsurance, and co-payments, whether paid by the Medicare 236.23 enrollee or by a Medicare supplemental coverage as defined in 236.24 section 62A.011, subdivision 3, clause (10), or by Medicaid 236.25 payments under title XIX of the federal Social Security Act. 236.26 Payments for services not covered by Medicare are taxable; 236.27 (2) payments received for home health care services; 236.28 (3) payments received from hospitals or surgical centers 236.29 for goods and services on which liability for tax is imposed 236.30 under section 295.52 or the source of funds for the payment is 236.31 exempt under clause (1), (7), (10), or (14); 236.32 (4) payments received from health care providers for goods 236.33 and services on which liability for tax is imposed under this 236.34 chapter or the source of funds for the payment is exempt under 236.35 clause (1), (7), (10), or (14); 236.36 (5) amounts paid for legend drugs, other than nutritional 237.1 products, to a wholesale drug distributor who is subject to tax 237.2 under section 295.52, subdivision 3, reduced by reimbursements 237.3 received for legend drugs otherwise exempt under this chapter; 237.4 (6) payments received by a health care provider or the 237.5 wholly owned subsidiary of a health care provider for care 237.6 provided outside Minnesota; 237.7 (7) payments received from the chemical dependency fund 237.8 under chapter 254B; 237.9 (8) payments received in the nature of charitable donations 237.10 that are not designated for providing patient services to a 237.11 specific individual or group; 237.12 (9) payments received for providing patient services 237.13 incurred through a formal program of health care research 237.14 conducted in conformity with federal regulations governing 237.15 research on human subjects. Payments received from patients or 237.16 from other persons paying on behalf of the patients are subject 237.17 to tax; 237.18 (10) payments received from any governmental agency for 237.19 services benefiting the public, not including payments made by 237.20 the government in its capacity as an employer or insurer or 237.21 payments made by the government for services provided under 237.22 medical assistance,general assistance medical care, orthe 237.23 MinnesotaCare program, or the medical assistance program 237.24 governed by title XIX of the federal Social Security Act, United 237.25 States Code, title 42, sections 1396 to 1396v; 237.26 (11) government payments received by a regional treatment237.27 centerthe commissioner of human services for state-operated 237.28 services; 237.29 (12) payments received by a health care provider for 237.30 hearing aids and related equipment or prescription eyewear 237.31 delivered outside of Minnesota; 237.32 (13) payments received by an educational institution from 237.33 student tuition, student activity fees, health care service 237.34 fees, government appropriations, donations, or grants, and for 237.35 services identified in and provided under an individualized 237.36 education plan as defined in section 256B.0625 or Code of 238.1 Federal Regulations, chapter 34, section 300.340(a). Fee for 238.2 service payments and payments for extended coverage are taxable; 238.3 and 238.4 (14) payments received under the federal Employees Health 238.5 Benefits Act, United States Code, title 5, section 8909(f), as 238.6 amended by the Omnibus Reconciliation Act of 1990. 238.7 (b) Payments received by wholesale drug distributors for 238.8 legend drugs sold directly to veterinarians or veterinary bulk 238.9 purchasing organizations are excluded from the gross revenues 238.10 subject to the wholesale drug distributor tax under sections 238.11 295.50 to 295.59. 238.12 [EFFECTIVE DATE.]This section is effective retroactively 238.13 from January 1, 2004. 238.14 Sec. 27. [FETAL ALCOHOL SPECTRUM DISORDER APPROPRIATION 238.15 TRANSFER.] 238.16 (a) On July 1 of each fiscal year, beginning July 1, 2004, 238.17 a portion of the general fund appropriation to the commissioner 238.18 of health for fetal alcohol spectrum disorder administration and 238.19 grants shall be transferred to a statewide organization that 238.20 focuses solely on prevention of and intervention with fetal 238.21 alcohol spectrum disorder as follows: 238.22 (1) on July 1, 2004, $340,000; 238.23 (2) on July 1, 2005, $990,049; and 238.24 (3) on July 1, 2006, and annually thereafter, $1,190,000. 238.25 (b) The money shall be used for prevention and intervention 238.26 services and programs, including, but not limited to, community 238.27 grants, professional education, public awareness, and 238.28 diagnosis. The organization may retain $60,000 of the 238.29 transferred money for administrative costs. The organization 238.30 shall report to the commissioner annually by January 15 on the 238.31 services and programs funded by the appropriation. 238.32 Sec. 28. [RULE AMENDMENT.] 238.33 The commissioner of human services shall amend Minnesota 238.34 Rules, part 9555.5105, subpart 20, to expand the definition of 238.35 "legal representative" to include a health care agent appointed 238.36 by a principal in a health care power of attorney to make health 239.1 care decisions as provided in Minnesota Statutes, chapter 145C. 239.2 The commissioner shall adopt rule amendments required by this 239.3 section using the authority of Minnesota Statutes, section 239.4 14.388, subdivision 1, clause (3). 239.5 Sec. 29. [COST OF HEALTH CARE REPORTING.] 239.6 The commissioners of human services, health, and commerce 239.7 shall meet with representatives of health plan companies as 239.8 defined in Minnesota Statutes, section 62Q.01, subdivision 4, 239.9 and hospitals to evaluate reporting requirements for these 239.10 regulated entities and develop recommendations for reducing 239.11 required reports. The commissioner must meet with the specified 239.12 representatives prior to August 30, 2004, and must submit a 239.13 consolidated report to the legislature by January 15, 2005. The 239.14 report must: 239.15 (1) identify the name and scope of each required report; 239.16 (2) evaluate the need for and use of each report, including 239.17 the value of the report to consumers; 239.18 (3) evaluate the extent to which the report is used to 239.19 reduce costs and increase quality of care; 239.20 (4) identify reports that are no longer required; and 239.21 (5) specify any statutory changes necessary to eliminate 239.22 required reports. 239.23 Sec. 30. [TRANSFER FROM THE UNIVERSITY OF MINNESOTA.] 239.24 The transfer provided in Minnesota Statutes, section 239.25 62J.692, subdivision 10, may occur twice in fiscal year 2005, 239.26 with the approval of the commissioners of human services, 239.27 health, and finance, for the purposes of Minnesota Statutes, 239.28 section 62J.692, subdivision 8. 239.29 Sec. 31. [REPEALER.] 239.30 Minnesota Statutes 2002, section 62H.07, is repealed. 239.31 ARTICLE 7 239.32 HEALTH CARE COST CONTAINMENT 239.33 Section 1. Minnesota Statutes 2002, section 62A.28, is 239.34 amended to read: 239.35 62A.28 [COVERAGE FOR SCALP HAIR PROSTHESES.] 239.36 Subdivision 1. [SCOPE OF COVERAGE.] This section applies 240.1 to all policies of accident and health insurance, health 240.2 maintenance contracts regulated under chapter 62D, health 240.3 benefit certificates offered through a fraternal benefit society 240.4 regulated under chapter 64B, and group subscriber contracts 240.5 offered by nonprofit health service plan corporations regulated 240.6 under chapter 62C. This section does not apply to policies 240.7 designed primarily to provide coverage payable on a per diem, 240.8 fixed indemnity or nonexpense incurred basis, or policies that 240.9 provide only accident coverage. 240.10 Subd. 2. [REQUIRED COVERAGE.] Every policy, plan, 240.11 certificate, or contract referred to in subdivision 1 issued or 240.12 renewed after August 1, 1987, must provide coverage for scalp 240.13 hair prostheses worn for hair loss suffered as a result of 240.14 alopecia areata. 240.15 The coverage required by this section is subject to a240.16 policy'sthe co-payment requirement, coinsurance, deductible, 240.17 and other enrollee cost sharing requirements that apply to 240.18 similar types of items under the policy, plan, certificate, or 240.19 contract, and is limited to a maximum of $350 in any benefit 240.20 year , exclusive of any deductible. 240.21 [EFFECTIVE DATE.]This section is effective retroactive to 240.22 January 1, 2004. 240.23 Sec. 2. [62J.43] [BEST PRACTICES AND QUALITY IMPROVEMENT.] 240.24 (a) To improve quality and reduce health care costs, state 240.25 agencies shall encourage the adoption of best practice 240.26 guidelines and participation in best practices measurement 240.27 activities by physicians, other health care providers, and 240.28 health plan companies. The commissioner of health shall 240.29 facilitate access to best practice guidelines and quality of 240.30 care measurement information to providers, purchasers, and 240.31 consumers by: 240.32 (1) identifying and promoting local community-based, 240.33 physician-designed best practices care across the Minnesota 240.34 health care system; 240.35 (2) disseminating information available to the commissioner 240.36 on adherence to best practices care by physicians and other 241.1 health care providers in Minnesota; 241.2 (3) educating consumers and purchasers on how to 241.3 effectively use this information in choosing their providers and 241.4 in making purchasing decisions; and 241.5 (4) making best practices and quality care measurement 241.6 information available to enrollees and program participants 241.7 through the Department of Health's Web site. The commissioner 241.8 may convene an advisory committee to ensure that the Web site is 241.9 designed to provide user friendly and easy accessibility. 241.10 (b) The commissioner of health shall collaborate with a 241.11 nonprofit Minnesota quality improvement organization 241.12 specializing in best practices and quality of care measurements 241.13 to provide best practices criteria and assist in the collection 241.14 of the data. 241.15 (c) The initial best practices and quality of care 241.16 measurement criteria developed shall include asthma, diabetes, 241.17 and at least two other preventive health measures. Hypertension 241.18 and coronary artery disease shall be included within one year 241.19 following availability. 241.20 (d) The commissioners of human services and employee 241.21 relations may use the data to make decisions about contracts 241.22 they enter into with health plan companies. 241.23 (e) This section does not apply if the best practices 241.24 guidelines authorize or recommend denial of treatment, food, or 241.25 fluids necessary to sustain life on the basis of the patient's 241.26 age or expected length of life or the patient's present or 241.27 predicted disability, degree of medical dependency, or quality 241.28 of life. 241.29 (f) The commissioner of health, human services, and 241.30 employee relations shall report to the legislature by January 241.31 15, 2005, on the status of best practices and quality of care 241.32 initiatives, and shall present recommendations to the 241.33 legislature on any statutory changes needed to increase the 241.34 effectiveness of these initiatives. 241.35 (g) This section expires June 30, 2006. 241.36 Sec. 3. [62J.81] [DISCLOSURE OF PAYMENTS FOR HEALTH CARE 242.1 SERVICES.] 242.2 Subdivision 1. [REQUIRED DISCLOSURE OF ESTIMATED PAYMENT.] 242.3 A health care provider, as defined in section 62J.03, 242.4 subdivision 8, shall, at the request of a consumer, provide that 242.5 consumer with a good faith estimate of the reimbursement the 242.6 provider expects to receive from the health plan company in 242.7 which the consumer is enrolled. Health plan companies must 242.8 allow contracted providers to release this information. A good 242.9 faith estimate must also be made available at the request of a 242.10 consumer who is not enrolled in a health plan company. Payment 242.11 information provided by a provider to a patient pursuant to this 242.12 subdivision does not constitute a legally binding estimate of 242.13 the cost of services. 242.14 Subd. 2. [APPLICABILITY.] For purposes of this section, 242.15 "consumer" does not include a medical assistance, MinnesotaCare, 242.16 or general assistance medical care enrollee, for services 242.17 covered under those programs. 242.18 Sec. 4. Minnesota Statutes 2002, section 72A.20, is 242.19 amended by adding a subdivision to read: 242.20 Subd. 37. [ELECTRONIC TRANSMISSION OF REQUIRED 242.21 INFORMATION.] A health carrier, as defined in section 62A.011, 242.22 subdivision 2, is not in violation of this chapter for 242.23 electronically transmitting or electronically making available 242.24 information otherwise required to be delivered in writing under 242.25 chapters 62A to 62Q and 72A to an enrollee as defined in section 242.26 62Q.01, subdivision 2a, and with the requirements of those 242.27 chapters if the following conditions are met: 242.28 (1) the health carrier informs the enrollee that electronic 242.29 transmission or access is available and, at the discretion of 242.30 the health carrier, the enrollee is given one of the following 242.31 options: 242.32 (i) electronic transmission or access will occur only if 242.33 the enrollee affirmatively requests to the health carrier that 242.34 the required information be electronically transmitted or 242.35 available and a record of that request is retained by the health 242.36 carrier; or 243.1 (ii) electronic transmission or access will automatically 243.2 occur if the enrollee has not opted out of that manner of 243.3 transmission by request to the health carrier and requested that 243.4 the information be provided in writing. If the enrollee opts 243.5 out of electronic transmission, a record of that request must be 243.6 retained by the health carrier; 243.7 (2) the enrollee is allowed to withdraw the request at any 243.8 time; 243.9 (3) if the information transmitted electronically contains 243.10 individually identifiable data, it must be transmitted to a 243.11 secured mailbox. If the information made available 243.12 electronically contains individually identifiable data, it must 243.13 be made available at a password-protected secured Web site; 243.14 (4) the enrollee is provided a customer service number on 243.15 the enrollee's member card that may be called to request a 243.16 written copy of the document; and 243.17 (5) the electronic transmission or electronic availability 243.18 meets all other requirements of this chapter including, but not 243.19 limited to, size of the typeface and any required time frames 243.20 for distribution. 243.21 Sec. 5. Minnesota Statutes 2002, section 147.03, 243.22 subdivision 1, is amended to read: 243.23 Subdivision 1. [ENDORSEMENT; RECIPROCITY.] (a) The board 243.24 may issue a license to practice medicine to any person who 243.25 satisfies the requirements in paragraphs (b) to (f). 243.26 (b) The applicant shall satisfy all the requirements 243.27 established in section 147.02, subdivision 1, paragraphs (a), 243.28 (b), (d), (e), and (f). 243.29 (c) The applicant shall: 243.30 (1) have passed an examination prepared and graded by the 243.31 Federation of State Medical Boards, the National Board of 243.32 Medical Examiners, or the United States Medical Licensing 243.33 Examination program in accordance with section 147.02, 243.34 subdivision 1, paragraph (c), clause (2); the National Board of 243.35 Osteopathic Examiners; or the Medical Council of Canada; and 243.36 (2) have a current license from the equivalent licensing 244.1 agency in another state or Canada and, if the examination in 244.2 clause (1) was passed more than ten years ago, either: 244.3 (i) pass the Special Purpose Examination of the Federation 244.4 of State Medical Boards with a score of 75 or better within 244.5 three attempts; or 244.6 (ii) have a current certification by a specialty board of 244.7 the American Board of Medical Specialties, of the American 244.8 Osteopathic Association Bureau of Professional Education, or of 244.9 the Royal College of Physicians and Surgeons of Canada. 244.10 (d) The applicant shall pay a fee established by the board 244.11 by rule. The fee may not be refunded. 244.12 (e) The applicant must not be under license suspension or 244.13 revocation by the licensing board of the state or jurisdiction 244.14 in which the conduct that caused the suspension or revocation 244.15 occurred. 244.16 (f) The applicant must not have engaged in conduct 244.17 warranting disciplinary action against a licensee, or have been 244.18 subject to disciplinary action other than as specified in 244.19 paragraph (e). If an applicant does not satisfy the 244.20 requirements stated in this paragraph, the board may issue a 244.21 license only on the applicant's showing that the public will be 244.22 protected through issuance of a license with conditions or 244.23 limitations the board considers appropriate. 244.24 (g) Upon the request of an applicant, the board may conduct 244.25 the final interview of the applicant by teleconference. 244.26 Sec. 6. [256B.075] [DISEASE MANAGEMENT PROGRAMS.] 244.27 Subdivision 1. [GENERAL.] The commissioner shall implement 244.28 disease management initiatives that seek to improve patient care 244.29 and health outcomes and reduce health care costs by managing the 244.30 care provided to recipients with chronic conditions. 244.31 Subd. 2. [FEE-FOR-SERVICE.] (a) The commissioner shall 244.32 develop and implement a disease management program for medical 244.33 assistance and general assistance medical care recipients who 244.34 are not enrolled in the prepaid medical assistance or prepaid 244.35 general assistance medical care programs and who are receiving 244.36 services on a fee-for-service basis. The commissioner may 245.1 contract with an outside organization to provide these services. 245.2 (b) The commissioner shall seek any federal approval 245.3 necessary to implement this section and to obtain federal 245.4 matching funds. 245.5 Subd. 3. [PREPAID MANAGED CARE PROGRAMS.] For the prepaid 245.6 medical assistance, prepaid general assistance medical care, and 245.7 MinnesotaCare programs, the commissioner shall ensure that 245.8 contracting health plans implement disease management programs 245.9 that are appropriate for Minnesota health care program 245.10 recipients and have been designed by the health plan to improve 245.11 patient care and health outcomes and reduce health care costs by 245.12 managing the care provided to recipients with chronic conditions. 245.13 Subd. 4. [REPORT.] The commissioner of human services 245.14 shall report to the legislature by January 15, 2005, on the 245.15 status of disease management initiatives, and shall present 245.16 recommendations to the legislature on any statutory changes 245.17 needed to increase the effectiveness of these initiatives. 245.18 Subd. 5. [EXPIRATION.] This section expires June 30, 2006. 245.19 Sec. 7. [ELECTRONIC HEALTH RECORD WORK GROUP.] 245.20 (a) The commissioner of health shall convene an Electronic 245.21 Health Record Planning and Implementation Work Group. The work 245.22 group shall consist of representatives of hospitals, health 245.23 plans, physicians, nurses, other health care providers, academic 245.24 institutions, state government purchasers, public health 245.25 providers, citizens, and others with knowledge of health 245.26 information technology and electronic health records systems. 245.27 (b) The work group shall: 245.28 (1) identify barriers to the adoption and implementation of 245.29 electronic health record systems in Minnesota; 245.30 (2) identify core components of an electronic health record 245.31 and standards for interoperability; 245.32 (3) assess the status of current implementation of 245.33 electronic health records in Minnesota; 245.34 (4) assess the costs for primary and acute health care 245.35 providers, including safety net clinics and hospitals, to 245.36 implement electronic health records systems; 246.1 (5) identify partnership models and collaboration potential 246.2 for implementing electronic health records systems; 246.3 (6) monitor the development of federal standards, 246.4 coordinate input to the National Health Information 246.5 Infrastructure Process, and ensure that Minnesota's 246.6 recommendations are consistent with emerging federal standards; 246.7 and 246.8 (7) identify barriers and develop a plan to develop a 246.9 unified record system among public hospitals and clinics. 246.10 (c) By December 31, 2004, the work group shall provide 246.11 preliminary assessments and recommendations to the chairs of the 246.12 house and senate committees with jurisdiction over health care 246.13 policy and financing. 246.14 The recommendations shall also include the appropriate role 246.15 of the state in the development, financing, promotion, and 246.16 implementation of an electronic health records system. 246.17 Sec. 8. [REPEALER; BONE MARROW TRANSPLANT MANDATE.] 246.18 Minnesota Statutes 2002, section 62A.309, is repealed." 246.19 Delete the title and insert: 246.20 "A bill for an act 246.21 relating to human services; making changes to 246.22 licensing provisions; regulating child protection 246.23 dispositions; clarifying a mental health case 246.24 management provision; changing a provision under child 246.25 welfare targeted case management; regulating child 246.26 care, long-term care, and health care; amending 246.27 Minnesota Statutes 2002, sections 13.3806, by adding a 246.28 subdivision; 13.43, subdivision 2, by adding a 246.29 subdivision; 62A.042; 62A.28; 62A.30, subdivision 2, 246.30 by adding a subdivision; 62C.14, subdivision 14; 246.31 62H.01; 62H.02; 62H.04; 62J.23, subdivision 2; 62T.02, 246.32 by adding a subdivision; 72A.20, by adding a 246.33 subdivision; 119B.011, by adding a subdivision; 246.34 119B.02, subdivision 4; 119B.03, subdivisions 3, 6a, 246.35 by adding a subdivision; 144.2215; 145C.01, 246.36 subdivision 7; 147.03, subdivision 1; 198.261; 243.55, 246.37 subdivision 1; 245.462, subdivision 18; 245.464, by 246.38 adding a subdivision; 245.4881, subdivision 1; 246.39 245.814, subdivision 1; 245A.02, subdivisions 2a, 5a, 246.40 7, 10, 14, by adding a subdivision; 245A.03, 246.41 subdivision 3; 245A.04, subdivisions 5, 6, 7, by 246.42 adding a subdivision; 245A.05; 245A.06, subdivisions 246.43 2, 4; 245A.07, subdivisions 2, 2a, 3; 245A.08, 246.44 subdivision 5; 245A.14, subdivision 4; 245A.16, 246.45 subdivision 4; 245A.22, subdivision 2; 245B.02, by 246.46 adding a subdivision; 245B.05, subdivision 2; 245B.07, 246.47 subdivisions 8, 12; 252.28, subdivision 1; 253B.02, by 246.48 adding subdivisions; 253B.03, by adding a subdivision; 246.49 253B.185, by adding a subdivision; 256.01, by adding 246.50 subdivisions; 256.955, subdivisions 2, 2b; 256B.055, 246.51 by adding a subdivision; 256B.0625, by adding a 247.1 subdivision; 256B.0911, subdivision 4a; 256B.0916, 247.2 subdivision 2; 256B.431, by adding a subdivision; 247.3 256B.49, by adding a subdivision; 256D.051, 247.4 subdivision 6c; 256F.10, subdivision 5; 256J.01, 247.5 subdivision 1; 256J.08, subdivisions 73, 82a; 256J.21, 247.6 subdivision 3; 256J.415; 256J.425, subdivision 5; 247.7 260C.007, subdivision 18; 260C.201, subdivision 11; 247.8 260C.212, subdivision 5; Minnesota Statutes 2003 247.9 Supplement, sections 119B.011, subdivisions 6, 8, 10, 247.10 15, 20; 119B.03, subdivision 4; 119B.05, subdivision 247.11 1; 119B.09, subdivision 7; 119B.12, subdivision 2; 247.12 119B.125, subdivisions 1, 2; 119B.13, subdivisions 1, 247.13 1a; 119B.189, subdivisions 2, 4; 119B.19, subdivision 247.14 1; 119B.24; 119B.25, subdivision 2; 128C.05, 247.15 subdivision 1a; 241.021, subdivision 6; 245.4874; 247.16 245A.03, subdivision 2; 245A.04, subdivision 1; 247.17 245A.08, subdivisions 1, 2a; 245A.085; 245A.11, 247.18 subdivisions 2a, 2b; 245A.16, subdivision 1; 245A.22, 247.19 subdivision 3; 245B.03, subdivision 2; 245C.02, 247.20 subdivision 18; 245C.03, subdivision 1, by adding a 247.21 subdivision; 245C.05, subdivisions 1, 2, 5, 6; 247.22 245C.08, subdivisions 2, 3, 4; 245C.09, subdivision 1; 247.23 245C.13, subdivision 1; 245C.14, subdivision 1; 247.24 245C.15, subdivisions 2, 3, 4; 245C.16, subdivision 1; 247.25 245C.17, subdivisions 1, 3; 245C.18; 245C.20; 245C.21, 247.26 subdivision 3, by adding a subdivision; 245C.22, 247.27 subdivisions 3, 4, 5, 6; 245C.23, subdivisions 1, 2; 247.28 245C.25; 245C.26; 245C.27, subdivisions 1, 2; 245C.28, 247.29 subdivisions 1, 2, 3; 245C.29, subdivision 2; 246.15, 247.30 by adding a subdivision; 252.27, subdivision 2a; 247.31 256.01, subdivision 2; 256.045, subdivisions 3, 3b; 247.32 256.046, subdivision 1; 256.955, subdivision 2a; 247.33 256.98, subdivision 8; 256B.0596; 256B.06, subdivision 247.34 4; 256B.0622, subdivision 8; 256B.0625, subdivision 9; 247.35 256B.0915, subdivisions 3a, 3b; 256B.431, subdivision 247.36 32; 256B.69, subdivisions 4, 6b; 256D.03, subdivisions 247.37 3, 4; 256J.09, subdivision 3b; 256J.21, subdivision 2; 247.38 256J.24, subdivision 5; 256J.32, subdivisions 2, 8; 247.39 256J.37, subdivision 9; 256J.425, subdivisions 1, 4, 247.40 6; 256J.46, subdivision 1; 256J.49, subdivision 4; 247.41 256J.515; 256J.521, subdivisions 1, 2; 256J.53, 247.42 subdivision 2; 256J.56; 256J.57, subdivision 1; 247.43 256J.626, subdivisions 2, 6, 7; 256J.751, subdivision 247.44 2; 256J.95, subdivisions 1, 3, 11, 12, 19; 295.50, 247.45 subdivision 9b; 295.53, subdivision 1; 626.556, 247.46 subdivisions 10, 10i; 626.557, subdivision 9d; Laws 247.47 1997, chapter 245, article 2, section 11, as amended; 247.48 proposing coding for new law in Minnesota Statutes, 247.49 chapters 62J; 62Q; 119B; 144; 151; 245A; 245B; 246B; 247.50 253B; 256B; repealing Minnesota Statutes 2002, 247.51 sections 62A.309; 62H.07; 119B.211; 256D.051, 247.52 subdivision 17; Minnesota Statutes 2003 Supplement, 247.53 section 245C.02, subdivision 17; Laws 2000, chapter 247.54 489, article 1, section 36; Laws 2003, First Special 247.55 Session chapter 14, article 3, section 56; Minnesota 247.56 Rules, parts 9525.1600; 9543.0040, subpart 3; 247.57 9543.1000; 9543.1010; 9543.1020; 9543.1030; 9543.1040; 247.58 9543.1050; 9543.1060." 248.1 We request adoption of this report and repassage of the 248.2 bill. 248.5 House Conferees: 248.8 ......................... ......................... 248.9 Jim Abeler Charlotte Samuelson 248.12 ......................... 248.13 Thomas Huntley 248.18 Senate Conferees: 248.21 ......................... ......................... 248.22 Sheila M. Kiscaden Becky Lourey 248.25 ......................... 248.26 Yvonne Prettner Solon