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Office of the Revisor of Statutes

HF 2448

1st Engrossment - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - 1st Engrossment

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A bill for an act
relating to forecast adjustments; making forecast
adjustments for prekindergarten through grade 12
education and human services programs; providing for
human services savings; appropriating money; amending
Minnesota Statutes 2004, sections 256B.0595,
subdivision 2; 256B.0625, subdivisions 13e, 13f, by
adding subdivisions; Laws 2003, First Special Session
chapter 9, article 1, section 53, subdivision 2, as
amended; Laws 2003, First Special Session chapter 9,
article 1, section 53, subdivision 3, as amended; Laws
2003, First Special Session chapter 9, article 1,
section 53, subdivision 5, as amended; Laws 2003,
First Special Session chapter 9, article 1, section
53, subdivision 6, as amended; Laws 2003, First
Special Session chapter 9, article 1, section 53,
subdivision 11, as amended; Laws 2003, First Special
Session chapter 9, article 1, section 53, subdivision
12, as amended; Laws 2003, First Special Session
chapter 9, article 2, section 55, subdivision 2, as
amended; Laws 2003, First Special Session chapter 9,
article 2, section 55, subdivision 5, as amended; Laws
2003, First Special Session chapter 9, article 2,
section 55, subdivision 7, as amended; Laws 2003,
First Special Session chapter 9, article 2, section
55, subdivision 8; Laws 2003, First Special Session
chapter 9, article 2, section 55, subdivision 9, as
amended; Laws 2003, First Special Session chapter 9,
article 2, section 55, subdivision 12, as amended;
Laws 2003, First Special Session chapter 9, article 3,
section 20, subdivision 2; Laws 2003, First Special
Session chapter 9, article 3, section 20, subdivision
4, as amended; Laws 2003, First Special Session
chapter 9, article 3, section 20, subdivision 5, as
amended; Laws 2003, First Special Session chapter 9,
article 3, section 20, subdivision 6, as amended; Laws
2003, First Special Session chapter 9, article 3,
section 20, subdivision 7, as amended; Laws 2003,
First Special Session chapter 9, article 3, section
20, subdivision 8, as amended; Laws 2003, First
Special Session chapter 9, article 3, section 20,
subdivision 9, as amended; Laws 2003, First Special
Session chapter 9, article 3, section 20, subdivision
10; Laws 2003, First Special Session chapter 9,
article 4, section 31, subdivision 2, as amended; Laws
2003, First Special Session chapter 9, article 4,
section 31, subdivision 3, as amended; Laws 2003,
First Special Session chapter 9, article 4, section
31, subdivision 4; Laws 2003, First Special Session
chapter 9, article 5, section 35, subdivision 2, as
amended; Laws 2003, First Special Session chapter 9,
article 5, section 35, subdivision 3, as amended; Laws
2003, First Special Session chapter 9, article 6,
section 4, as amended; Laws 2003, First Special
Session chapter 9, article 7, section 11, subdivision
2; Laws 2003, First Special Session chapter 9, article
7, section 11, subdivision 3, as amended; Laws 2003,
First Special Session chapter 9, article 7, section
11, subdivision 4; Laws 2003, First Special Session
chapter 9, article 8, section 7, subdivision 2, as
amended; Laws 2003, First Special Session chapter 9,
article 8, section 7, subdivision 3; Laws 2003, First
Special Session chapter 9, article 8, section 7,
subdivision 5, as amended; Laws 2003, First Special
Session chapter 9, article 9, section 9, subdivision
2, as amended; proposing coding for new law in
Minnesota Statutes, chapter 501B.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

ARTICLE 1

PREKINDERGARTEN THROUGH GRADE 12 EDUCATION
A. FORECAST ADJUSTMENTS

Section 1.

Laws 2003, First Special Session chapter 9,
article 1, section 53, subdivision 2, as amended by Laws 2004,
chapter 272, article 1, section 1, is amended to read:


Subd. 2.

General education aid.

For general education
aid under Minnesota Statutes, section 126C.13, subdivision 4:

$4,726,466,000 ..... 2004

deleted text begin $5,026,983,000 deleted text endnew text begin$5,281,781,000new text end..... 2005

The 2004 appropriation includes $860,552,000 for 2003 and
$3,865,914,000 for 2004.

The 2005 appropriation includes
deleted text begin $1,009,822,000 deleted text endnew text begin$1,009,526,000 new text endfor 2004
and deleted text begin$4,017,161,000 deleted text endnew text begin$4,272,255,000 new text endfor 2005.

Sec. 2.

Laws 2003, First Special Session chapter 9,
article 1, section 53, subdivision 3, as amended by Laws 2004,
chapter 272, article 1, section 2, is amended to read:


Subd. 3.

Referendum tax base replacement aid.

For
referendum tax base replacement aid under Minnesota Statutes,
section 126C.17, subdivision 7a:

$8,096,000 ..... 2004

deleted text begin $8,596,000 deleted text endnew text begin$9,007,000new text end..... 2005

The 2004 appropriation includes $1,419,000 for 2003 and
$6,677,000 for 2004.

The 2005 appropriation includes $1,669,000 for 2004 and
deleted text begin $6,927,000 deleted text endnew text begin$7,338,000 new text endfor 2005.

Sec. 3.

Laws 2003, First Special Session chapter 9,
article 1, section 53, subdivision 5, as amended by Laws 2004,
chapter 272, article 1, section 3, is amended to read:


Subd. 5.

Abatement revenue.

For abatement aid under
Minnesota Statutes, section 127A.49:

$2,436,000 ..... 2004

deleted text begin $1,559,000 deleted text endnew text begin$1,498,000new text end..... 2005

The 2004 appropriation includes $472,000 for 2003 and
$1,964,000 for 2004.

The 2005 appropriation includes $491,000 for 2004 and
deleted text begin $1,068,000 deleted text endnew text begin$1,007,000 new text endfor 2005.

Sec. 4.

Laws 2003, First Special Session chapter 9,
article 1, section 53, subdivision 6, as amended by Laws 2004,
chapter 272, article 1, section 4, is amended to read:


Subd. 6.

Consolidation transition.

For districts
consolidating under Minnesota Statutes, section 123A.485:

$ 35,000 ..... 2004

deleted text begin $145,000 deleted text endnew text begin$-0-new text end..... 2005

The 2004 appropriation includes $35,000 for 2003 and $0 for
2004.

deleted text begin The 2005 appropriation includes $0 for 2004 and $145,000
for 2005.
deleted text end

Sec. 5.

Laws 2003, First Special Session chapter 9,
article 1, section 53, subdivision 11, as amended by Laws 2004,
chapter 272, article 1, section 5, is amended to read:


Subd. 11.

Nonpublic pupil aid.

For nonpublic pupil
education aid under Minnesota Statutes, sections 123B.40 to
123B.43 and 123B.87:

$14,411,000 ..... 2004

deleted text begin $15,072,000 deleted text endnew text begin$15,304,000new text end..... 2005

The 2004 appropriation includes $2,715,000 for 2003 and
$11,696,000 for 2004.

The 2005 appropriation includes $2,923,000 for 2004 and
deleted text begin $12,149,000 deleted text endnew text begin$12,381,000 new text endfor 2005.

Sec. 6.

Laws 2003, First Special Session chapter 9,
article 1, section 53, subdivision 12, as amended by Laws 2004,
chapter 272, article 1, section 6, is amended to read:


Subd. 12.

Nonpublic pupil transportation.

For nonpublic
pupil transportation aid under Minnesota Statutes, section
123B.92, subdivision 9:

$20,471,000 ..... 2004

deleted text begin $21,421,000 deleted text endnew text begin$21,703,000new text end..... 2005

The 2004 appropriation includes $3,990,000 for 2003 and
$16,481,000 for 2004.

The 2005 appropriation includes $4,120,000 for 2004 and
deleted text begin $17,301,000 deleted text endnew text begin$17,583,000 new text endfor 2005.
B. EDUCATION EXCELLENCE

Sec. 7.

Laws 2003, First Special Session chapter 9,
article 2, section 55, subdivision 2, as amended by Laws 2004,
chapter 272, article 1, section 7, is amended to read:


Subd. 2.

Charter school building lease aid.

For building
lease aid under Minnesota Statutes, section 124D.11, subdivision
4:

$16,753,000 ..... 2004

deleted text begin $21,347,000 deleted text endnew text begin$21,410,000new text end..... 2005

The 2004 appropriation includes $2,524,000 for 2003 and
$14,229,000 for 2004.

The 2005 appropriation includes $3,557,000 for 2004 and
deleted text begin $17,790,000 deleted text endnew text begin$17,853,000 new text endfor 2005.

Sec. 8.

Laws 2003, First Special Session chapter 9,
article 2, section 55, subdivision 5, as amended by Laws 2004,
chapter 272, article 1, section 10, is amended to read:


Subd. 5.

Integration aid.

For integration aid under
Minnesota Statutes, section 124D.86, subdivision 5:

$55,911,000 ..... 2004

deleted text begin $55,893,000 deleted text endnew text begin$57,756,000new text end..... 2005

The 2004 appropriation includes $8,428,000 for 2003 and
$47,483,000 for 2004.

The 2005 appropriation includes $11,870,000 for 2004 and
deleted text begin $44,023,000 deleted text endnew text begin$45,886,000 new text endfor 2005.

Sec. 9.

Laws 2003, First Special Session chapter 9,
article 2, section 55, subdivision 7, as amended by Laws 2004,
chapter 272, article 1, section 11, is amended to read:


Subd. 7.

Magnet school startup aid.

For magnet school
startup aid under Minnesota Statutes, section 124D.88:

$ 37,000 ..... 2004

deleted text begin $ 40,000 deleted text end deleted text begin ..... deleted text end deleted text begin 2005
deleted text end

The 2004 appropriation includes $37,000 for 2003 and $0 for
2004.

deleted text begin The 2005 appropriation includes $0 for 2004 and $40,000 for
2005.
deleted text end

Sec. 10.

Laws 2003, First Special Session chapter 9,
article 2, section 55, subdivision 8, is amended to read:


Subd. 8.

Interdistrict desegregation or integration
transportation grants.

For interdistrict desegregation or
integration transportation grants under Minnesota Statutes,
section 124D.87:

$5,796,000 ..... 2004

deleted text begin $8,401,000 deleted text endnew text begin$5,279,000new text end..... 2005

Sec. 11.

Laws 2003, First Special Session chapter 9,
article 2, section 55, subdivision 9, as amended by Laws 2004,
chapter 272, article 1, section 12, is amended to read:


Subd. 9.

Success for the future.

For American Indian
success for the future grants under Minnesota Statutes, section
124D.81:

$2,061,000 ..... 2004

deleted text begin $2,137,000 deleted text endnew text begin$2,229,000new text end..... 2005

The 2004 appropriation includes $351,000 for 2003 and
$1,710,000 for 2004.

The 2005 appropriation includes $427,000 for 2004 and
deleted text begin $1,710,000 deleted text endnew text begin$1,802,000 new text endfor 2005.

Sec. 12.

Laws 2003, First Special Session chapter 9,
article 2, section 55, subdivision 12, as amended by Laws 2004,
chapter 272, article 1, section 13, is amended to read:


Subd. 12.

Tribal contract schools.

For tribal contract
school aid under Minnesota Statutes, section 124D.83:

$1,617,000 ..... 2004

deleted text begin $2,185,000 deleted text endnew text begin$2,203,000new text end..... 2005

The 2004 appropriation includes $285,000 for 2003 and
$1,332,000 for 2004.

The 2005 appropriation includes $333,000 for 2004 and
deleted text begin $1,852,000 deleted text endnew text begin$1,870,000 new text endfor 2005.
C. SPECIAL PROGRAMS

Sec. 13.

Laws 2003, First Special Session chapter 9,
article 3, section 20, subdivision 2, is amended to read:


Subd. 2.

Special education; regular.

For special
education aid under Minnesota Statutes, section 125A.75:

$515,091,000 ..... 2004

deleted text begin $529,460,000 deleted text endnew text begin$552,214,000new text end..... 2005

The 2004 appropriation includes $90,577,000 for 2003 and
$424,514,000 for 2004.

The 2005 appropriation includes $106,128,000 for 2004 and
deleted text begin $423,332,000 deleted text endnew text begin$446,086,000 new text endfor 2005.

Sec. 14.

Laws 2003, First Special Session chapter 9,
article 3, section 20, subdivision 4, as amended by Laws 2004,
chapter 272, article 1, section 14, is amended to read:


Subd. 4.

Aid for children with disabilities.

For aid
under Minnesota Statutes, section 125A.75, subdivision 3, for
children with disabilities placed in residential facilities
within the district boundaries for whom no district of residence
can be determined:

$2,311,000 ..... 2004

deleted text begin $2,550,000 deleted text endnew text begin$3,155,000new text end..... 2005

If the appropriation for either year is insufficient, the
appropriation for the other year is available.

Sec. 15.

Laws 2003, First Special Session chapter 9,
article 3, section 20, subdivision 5, as amended by Laws 2004,
chapter 272, article 1, section 15, is amended to read:


Subd. 5.

Travel for home-based services.

For aid for
teacher travel for home-based services under Minnesota Statutes,
section 125A.75, subdivision 1:

$173,000 ..... 2004

deleted text begin $178,000 deleted text endnew text begin$187,000new text end..... 2005

The 2004 appropriation includes $34,000 for 2003 and
$139,000 for 2004.

The 2005 appropriation includes $34,000 for 2004 and
deleted text begin $144,000 deleted text endnew text begin$153,000 new text endfor 2005.

Sec. 16.

Laws 2003, First Special Session chapter 9,
article 3, section 20, subdivision 6, as amended by Laws 2004,
chapter 272, article 1, section 16, is amended to read:


Subd. 6.

Special education; excess costs.

For excess
cost aid under Minnesota Statutes, section 125A.79, subdivision
7:

$92,605,000 ..... 2004

deleted text begin $92,799,000 deleted text endnew text begin$95,572,000new text end..... 2005

The 2004 appropriation includes $41,754,000 for 2003 and
$50,851,000 for 2004.

The 2005 appropriation includes $41,216,000 for 2004 and
deleted text begin $51,583,000 deleted text endnew text begin$54,356,000 new text endfor 2005.

Sec. 17.

Laws 2003, First Special Session chapter 9,
article 3, section 20, subdivision 7, as amended by Laws 2004,
chapter 272, article 1, section 17, is amended to read:


Subd. 7.

Litigation costs for special education.

For
paying the costs a district incurs under Minnesota Statutes,
section 125A.75, subdivision 8:

$201,000 ..... 2004

deleted text begin $150,000 deleted text endnew text begin$109,000new text end..... 2005

Sec. 18.

Laws 2003, First Special Session chapter 9,
article 3, section 20, subdivision 8, as amended by Laws 2004,
chapter 272, article 1, section 18, is amended to read:


Subd. 8.

Transition for disabled students.

For aid for
transition programs for children with disabilities under
Minnesota Statutes, section 124D.454:

$8,570,000 ..... 2004

deleted text begin $8,760,000 deleted text endnew text begin$9,176,000new text end..... 2005

The 2004 appropriation includes $1,516,000 for 2003 and
$7,054,000 for 2004.

The 2005 appropriation includes $1,763,000 for 2004 and
deleted text begin $6,997,000 deleted text endnew text begin$7,413,000 new text endfor 2005.

Sec. 19.

Laws 2003, First Special Session chapter 9,
article 3, section 20, subdivision 9, as amended by Laws 2004,
chapter 272, article 1, section 19, is amended to read:


Subd. 9.

Court-placed special education revenue.

For
reimbursing serving school districts for unreimbursed eligible
expenditures attributable to children placed in the serving
school district by court action under Minnesota Statutes,
section 125A.79, subdivision 4:

$36,000 ..... 2004

deleted text begin $61,000 deleted text endnew text begin$62,000new text end..... 2005

Sec. 20.

Laws 2003, First Special Session chapter 9,
article 3, section 20, subdivision 10, is amended to read:


Subd. 10.

Out-of-state tuition special education.

For
special education out-of-state tuition according to Minnesota
Statutes, section 125A.79, subdivision 8:

$250,000 ..... 2004

deleted text begin $250,000 deleted text endnew text begin$208,000new text end..... 2005
D. FACILITIES AND TECHNOLOGY

Sec. 21.

Laws 2003, First Special Session chapter 9,
article 4, section 31, subdivision 2, as amended by Laws 2004,
chapter 272, article 1, section 21, is amended to read:


Subd. 2.

Health and safety revenue.

For health and
safety aid according to Minnesota Statutes, section 123B.57,
subdivision 5:

$5,356,000 ..... 2004

deleted text begin $1,920,000 deleted text endnew text begin$2,099,000new text end..... 2005

The 2004 appropriation includes $1,516,000 for 2003 and
$3,840,000 for 2004.

The 2005 appropriation includes $960,000 for 2004 and
deleted text begin $960,000 deleted text endnew text begin$1,139,000 new text endfor 2005.

Sec. 22.

Laws 2003, First Special Session chapter 9,
article 4, section 31, subdivision 3, as amended by Laws 2004,
chapter 272, article 1, section 22, is amended to read:


Subd. 3.

Debt service equalization.

For debt service aid
according to Minnesota Statutes, section 123B.53, subdivision 6:

$35,598,000 ..... 2004

deleted text begin $31,220,000 deleted text endnew text begin$32,495,000new text end..... 2005

The 2004 appropriation includes $5,586,000 for 2003 and
$30,012,000 for 2004.

The 2005 appropriation includes $7,503,000 for 2004 and
deleted text begin $23,717,000 deleted text endnew text begin$24,992,000 new text endfor 2005.

Sec. 23.

Laws 2003, First Special Session chapter 9,
article 4, section 31, subdivision 4, is amended to read:


Subd. 4.

Alternative facilities bonding aid.

For
alternative facilities bonding aid, according to Minnesota
Statutes, section 123B.59, subdivision 1:

$18,708,000 ..... 2004

deleted text begin $19,287,000 deleted text endnew text begin$20,116,000new text end..... 2005

The 2004 appropriation includes $3,278,000 for 2003 and
$15,430,000 for 2004.

The 2005 appropriation includes $3,857,000 for 2004 and
deleted text begin $15,430,000 deleted text endnew text begin$16,259,000 new text endfor 2005.
E. NUTRITION, SCHOOL ACCOUNTING, OTHER PROGRAMS

Sec. 24.

Laws 2003, First Special Session chapter 9,
article 5, section 35, subdivision 2, as amended by Laws 2004,
chapter 272, article 1, section 23, is amended to read:


Subd. 2.

School lunch.

For school lunch aid according to
Minnesota Statutes, section 124D.111, and Code of Federal
Regulations, title 7, section 210.17:

$7,650,000 ..... 2004

deleted text begin $7,760,000 deleted text endnew text begin$7,671,000new text end..... 2005

Sec. 25.

Laws 2003, First Special Session chapter 9,
article 5, section 35, subdivision 3, as amended by Laws 2004,
chapter 272, article 1, section 24, is amended to read:


Subd. 3.

Traditional school breakfast; kindergarten
milk.

For traditional school breakfast aid and kindergarten
milk under Minnesota Statutes, sections 124D.1158 and 124D.118:

$4,382,000 ..... 2004

deleted text begin $4,460,000 deleted text endnew text begin$4,548,000new text end..... 2005
F. LIBRARIES

Sec. 26.

Laws 2003, First Special Session chapter 9,
article 6, section 4, as amended by Laws 2004, chapter 272,
article 1, section 25, and Laws 2004, chapter 286, section 3, is
amended to read:


Sec. 4. new text beginAPPROPRIATIONS.
new text end

Subdivision 1.

Department of education.

The sums
indicated in this section are appropriated from the general fund
to the department of education for the fiscal years designated.

Subd. 2.

Basic system support.

For basic system support
grants under Minnesota Statutes, section 134.355:

$8,312,000 ..... 2004

deleted text begin $8,570,000 deleted text endnew text begin$8,939,000new text end..... 2005

The 2004 appropriation includes $1,456,000 for 2003 and
$6,856,000 for 2004.

The 2005 appropriation includes $1,714,000 for 2004 and
deleted text begin $6,856,000 deleted text endnew text begin$7,225,000 new text endfor 2005.

Subd. 3.

Regional library telecommunications aid.

For
regional library telecommunications aid under Minnesota
Statutes, section 134.355:

$960,000 ..... 2004

deleted text begin $1,200,000 deleted text endnew text begin$1,252,000new text end..... 2005

The 2004 appropriation includes $960,000 for 2004.

The 2005 appropriation includes $240,000 for 2004 and
deleted text begin $960,000 deleted text endnew text begin$1,012,000 new text endfor 2005.

Subd. 4.

Multicounty, multitype library systems.

For
grants according to Minnesota Statutes, sections 134.353 and
134.354, to multicounty, multitype library systems:

$876,000 ..... 2004

deleted text begin $903,000 deleted text endnew text begin$942,000new text end..... 2005

The 2004 appropriation includes $153,000 for 2003 and
$723,000 for 2004.

The 2005 appropriation includes $180,000 for 2004 and
deleted text begin $723,000 deleted text endnew text begin$762,000 new text endfor 2005.

Subd. 5.

Electronic library for minnesota.

For statewide
licenses to on-line databases selected in cooperation with the
higher education services office for school media centers,
public libraries, state government agency libraries, and public
or private college or university libraries:

$400,000 ..... 2004

$400,000 ..... 2005

Any balance in the first year does not cancel but is
available in the second year.
G. EARLY CHILDHOOD FAMILY SUPPORT

Sec. 27.

Laws 2003, First Special Session chapter 9,
article 7, section 11, subdivision 2, is amended to read:


Subd. 2.

School readiness.

For revenue for school
readiness programs under Minnesota Statutes, sections 124D.15
and 124D.16:

$ 9,536,000 ..... 2004

deleted text begin $ 9,258,000 deleted text endnew text begin$9,594,000new text end..... 2005

The 2004 appropriation includes $1,605,000 for 2003 and
$7,931,000 for 2004.

The 2005 appropriation includes $1,982,000 for 2004 and
deleted text begin $7,276,000 deleted text endnew text begin$7,612,000 new text endfor 2005.

Sec. 28.

Laws 2003, First Special Session chapter 9,
article 7, section 11, subdivision 3, as amended by Laws 2004,
chapter 272, article 1, section 26, is amended to read:


Subd. 3.

Early childhood family education aid.

For early
childhood family education aid under Minnesota Statutes, section
124D.135:

$19,079,000 ..... 2004

deleted text begin $14,407,000 deleted text endnew text begin$13,956,000new text end..... 2005

The 2004 appropriation includes $3,239,000 for 2003 and
$15,840,000 for 2004.

The 2005 appropriation includes $3,959,000 for 2004 and
deleted text begin $10,448,000 deleted text endnew text begin$9,997,000 new text endfor 2005.

Sec. 29.

Laws 2003, First Special Session chapter 9,
article 7, section 11, subdivision 4, is amended to read:


Subd. 4.

Health and developmental screening aid.

For
health and developmental screening aid under Minnesota Statutes,
sections 121A.17 and 121A.19:

$2,581,000 ..... 2004

deleted text begin $2,661,000 deleted text endnew text begin$2,776,000new text end..... 2005

The 2004 appropriation includes $452,000 for 2003 and
$2,129,000 for 2004.

The 2005 appropriation includes $532,000 for 2004 and
deleted text begin $2,129,000 deleted text endnew text begin$2,244,000 new text endfor 2005.
H. PREVENTION

Sec. 30.

Laws 2003, First Special Session chapter 9,
article 8, section 7, subdivision 2, as amended by Laws 2004,
chapter 272, article 1, section 27, is amended to read:


Subd. 2.

Community education aid.

For community
education aid under Minnesota Statutes, section 124D.20:

$5,351,000 ..... 2004

deleted text begin $3,137,000 deleted text endnew text begin$3,198,000new text end..... 2005

The 2004 appropriation includes $956,000 for 2003 and
$4,395,000 for 2004.

The 2005 appropriation includes $1,098,000 for 2004 and
deleted text begin $2,039,000 deleted text endnew text begin$2,100,000 new text endfor 2005.

Sec. 31.

Laws 2003, First Special Session chapter 9,
article 8, section 7, subdivision 3, is amended to read:


Subd. 3.

Adults with disabilities program aid.

For
adults with disabilities programs under Minnesota Statutes,
section 124D.56:

$688,000 ..... 2004

deleted text begin $710,000 deleted text endnew text begin$741,000new text end..... 2005

The 2004 appropriation includes $120,000 for 2003 and
$568,000 for 2004.

The 2005 appropriation includes $142,000 for 2004 and
deleted text begin $568,000 deleted text endnew text begin$599,000 new text endfor 2005.

Sec. 32.

Laws 2003, First Special Session chapter 9,
article 8, section 7, subdivision 5, as amended by Laws 2004,
chapter 272, article 1, section 28, is amended to read:


Subd. 5.

School-age care revenue.

For extended day care
aid under Minnesota Statutes, section 124D.22:

$40,000 ..... 2004

deleted text begin $24,000 deleted text endnew text begin$30,000new text end..... 2005

The 2004 appropriation includes $14,000 for 2003 and
$26,000 for 2004.

The 2005 appropriation includes $6,000 for 2004 and
deleted text begin $18,000 deleted text endnew text begin$24,000 new text endfor 2005.
I. SELF-SUFFICIENCY AND LIFELONG LEARNING

Sec. 33.

Laws 2003, First Special Session chapter 9,
article 9, section 9, subdivision 2, as amended by Laws 2004,
chapter 272, article 1, section 29, is amended to read:


Subd. 2.

Adult basic education aid.

For adult basic
education aid under Minnesota Statutes, section 124D.52, in
fiscal year 2004 and Minnesota Statutes, section 124D.531, in
fiscal year 2005:

$33,014,000 ..... 2004

deleted text begin $35,808,000 deleted text endnew text begin$37,444,000new text end..... 2005

The 2004 appropriation includes $5,827,000 for 2003 and
$27,187,000 for 2004.

The 2005 appropriation includes $6,796,000 for 2004 and
deleted text begin $29,012,000 deleted text endnew text begin$30,648,000 new text endfor 2005.

Sec. 34. new text beginEFFECTIVE DATE.
new text end

new text begin This article is effective the day following final enactment.
new text end

ARTICLE 2

HUMAN SERVICES FORECAST ADJUSTMENTS

Section 1. new text beginDEPARTMENT OF HUMAN SERVICES FORECAST ADJUSTMENT.
new text end

The dollar amounts shown are added to or, if shown in
parentheses, are subtracted from the appropriations in Laws
2003, First Special Session chapter 14, as amended by Laws 2004,
chapter 272, or other law, and are appropriated from the general
fund, or any other fund named, to the Department of Human
Services for the purposes specified in this article, to be
available for the fiscal year indicated for each purpose. The
figure "2005" used in this article means that the appropriation
or appropriations listed are available for the fiscal year
ending June 30, 2005.
SUMMARY BY FUND

2005

General Fund 33,797,000

Health Care Access (33,947,000)

TANF (17,645,000)

TOTAL (17,795,000)

Sec. 2. COMMISSIONER OF HUMAN SERVICES

Subdivision 1.

Total
Appropriation (17,795,000)
Summary by Fund

General 33,797,000

Health Care Access (33,947,000)

TANF (17,645,000)

Subd. 2. Revenue and Pass-Through

TANF (814,000)

Subd. 3. Basic Health Care Grants

General 44,502,000

Health Care Access (33,947,000)

The amount that may be spent from this
appropriation for each purpose is as
follows:

(a) MinnesotaCare
Health Care Access (33,947,000)

(b) MA Basic Health Care - Families and Children
General 39,343,000

(c) MA Basic Health Care - Elderly and Disabled
General (20,641,000)

(d) General Assistance Medical Care
General 25,800,000

Subd. 4. Continuing Care Grants

General (12,968,000)

The amount that may be spent from this
appropriation for each purpose is as
follows:

(a) MA Long-Term Care Waivers
General (6,218,000)

(b) MA Long-Term Care Facilities
General (15,645,000)

(c) Group Residential Housing
General 6,017,000

(d) Chemical Dependency Entitlement Grants
General 2,878,000

Subd. 5. Economic Support Grants

General 22,940,000

TANF (16,831,000)

The amount that may be spent from this
appropriation for each purpose is as
follows:

(a) Minnesota Family Investment Program
General 21,000,000

TANF (16,831,000)

(b) General Assistance 2,840,000

(c) Minnesota Supplemental Aid (900,000)

Subd. 6.

Child Care
Total Appropriation (20,677,000)

General Fund (20,677,000)

ARTICLE 3

HUMAN SERVICES SAVINGS

Section 1.

Minnesota Statutes 2004, section 256B.0595,
subdivision 2, is amended to read:


Subd. 2.

Period of ineligibility.

(a) For any
uncompensated transfer occurring on or before August 10, 1993,
the number of months of ineligibility for long-term care
services shall be the lesser of 30 months, or the uncompensated
transfer amount divided by the average medical assistance rate
for nursing facility services in the state in effect on the date
of application. The amount used to calculate the average
medical assistance payment rate shall be adjusted each July 1 to
reflect payment rates for the previous calendar year. The
period of ineligibility begins with the month in which the
assets were transferred. If the transfer was not reported to
the local agency at the time of application, and the applicant
received long-term care services during what would have been the
period of ineligibility if the transfer had been reported, a
cause of action exists against the transferee for the cost of
long-term care services provided during the period of
ineligibility, or for the uncompensated amount of the transfer,
whichever is less. The action may be brought by the state or
the local agency responsible for providing medical assistance
under chapter 256G. The uncompensated transfer amount is the
fair market value of the asset at the time it was given away,
sold, or disposed of, less the amount of compensation received.

(b) For uncompensated transfers made after August 10, 1993,
the number of months of ineligibility for long-term care
services shall be the total uncompensated value of the resources
transferred divided by the average medical assistance rate for
nursing facility services in the state in effect on the date of
application. The amount used to calculate the average medical
assistance payment rate shall be adjusted each July 1 to reflect
payment rates for the previous calendar year. The period of
ineligibility begins with the first day of the month after the
month in which the assets were transferred except that if one or
more uncompensated transfers are made during a period of
ineligibility, the total assets transferred during the
ineligibility period shall be combined and a penalty period
calculated to begin on the first day of the month after the
month in which the first uncompensated transfer was made. If
the new text begintransfer was reported to the local agency after the date
that advance notice of a period of ineligibility that affects
the next month could be provided to the recipient and the
recipient received medical assistance services or the
new text endtransfer
was not reported to the local agency, and the applicant new text beginor
recipient
new text endreceived medical assistance services during what would
have been the period of ineligibility if the transfer had been
reported, a cause of action exists against the transferee for
the cost of medical assistance services provided during the
period of ineligibility, or for the uncompensated amount of the
transfer, whichever is less. The action may be brought by the
state or the local agency responsible for providing medical
assistance under chapter 256G. The uncompensated transfer
amount is the fair market value of the asset at the time it was
given away, sold, or disposed of, less the amount of
compensation received. Effective for transfers made on or after
March 1, 1996, involving persons who apply for medical
assistance on or after April 13, 1996, no cause of action exists
for a transfer unless:

(1) the transferee knew or should have known that the
transfer was being made by a person who was a resident of a
long-term care facility or was receiving that level of care in
the community at the time of the transfer;

(2) the transferee knew or should have known that the
transfer was being made to assist the person to qualify for or
retain medical assistance eligibility; or

(3) the transferee actively solicited the transfer with
intent to assist the person to qualify for or retain eligibility
for medical assistance.

(c) If a calculation of a penalty period results in a
partial month, payments for long-term care services shall be
reduced in an amount equal to the fraction, except that in
calculating the value of uncompensated transfers, if the total
value of all uncompensated transfers made in a month not
included in an existing penalty period does not exceed $200,
then such transfers shall be disregarded for each month prior to
the month of application for or during receipt of medical
assistance.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for transfers
occurring on or after July 1, 2005.
new text end

Sec. 2.

Minnesota Statutes 2004, section 256B.0625, is
amended by adding a subdivision to read:


new text begin Subd. 3c. new text end

new text begin Health services policy committee. new text end

new text begin The
commissioner, after receiving recommendations from professional
physician associations, professional associations representing
licensed nonphysician health care professionals, and consumer
groups, shall establish a 13-member Health Services Policy
Committee, which consists of 12 voting members and one nonvoting
member. The Health Services Policy Committee shall advise the
commissioner regarding health services pertaining to the
administration of health care benefits covered under the medical
assistance, general assistance medical care, and MinnesotaCare
programs. The Health Services Policy Committee shall meet at
least quarterly. The Health Services Policy Committee shall
annually elect a physician chair from among its members, who
shall work directly with the commissioner's medical director, to
establish the agenda for each meeting.
new text end

Sec. 3.

Minnesota Statutes 2004, section 256B.0625, is
amended by adding a subdivision to read:


new text begin Subd. 3d. new text end

new text begin Health services policy committee members. new text end

new text begin The
Health Services Policy Committee consists of:
new text end

new text begin (1) seven voting members who are licensed physicians
actively engaged in the practice of medicine in Minnesota, one
of whom must be actively engaged in the treatment of persons
with mental illness, and three of whom must represent health
plans currently under contract to serve medical assistance
recipients;
new text end

new text begin (2) two voting members who are physician specialists
actively practicing their specialty in Minnesota;
new text end

new text begin (3) two voting members who are nonphysician health care
professionals licensed or registered in their profession and
actively engaged in their practice of their profession in
Minnesota;
new text end

new text begin (4) one consumer who shall serve as a voting member; and
new text end

new text begin (5) the commissioner's medical director who shall serve as
a nonvoting member.
new text end

new text begin Members of the Health Services Policy Committee shall not
be employed by the Department of Human Services, except for the
medical director.
new text end

Sec. 4.

Minnesota Statutes 2004, section 256B.0625, is
amended by adding a subdivision to read:


new text begin Subd. 3e. new text end

new text begin Health services policy committee terms and
compensation.
new text end

new text begin Committee members shall serve staggered
three-year terms, with one-third of the voting members' terms
expiring annually. Members may be reappointed by the
commissioner. The commissioner may require more frequent Health
Services Policy Committee meetings as needed. An honorarium of
$200 per meeting and reimbursement for mileage and parking shall
be paid to each committee member in attendance except the
medical director. The Health Services Policy Committee does not
expire as provided in section 15.059, subdivision 6.
new text end

Sec. 5.

Minnesota Statutes 2004, section 256B.0625,
subdivision 13e, is amended to read:


Subd. 13e.

Payment rates.

(a) The basis for determining
the amount of payment shall be the lower of the actual
acquisition costs of the drugs plus a fixed dispensing fee; the
maximum allowable cost set by the federal government or by the
commissioner plus the fixed dispensing fee; or the usual and
customary price charged to the public. The amount of payment
basis must be reduced to reflect all discount amounts applied to
the charge by any provider/insurer agreement or contract for
submitted charges to medical assistance programs. The net
submitted charge may not be greater than the patient liability
for the service. The pharmacy dispensing fee shall be $3.65,
except that the dispensing fee for intravenous solutions which
must be compounded by the pharmacist shall be $8 per bag, $14
per bag for cancer chemotherapy products, and $30 per bag for
total parenteral nutritional products dispensed in one liter
quantities, or $44 per bag for total parenteral nutritional
products dispensed in quantities greater than one liter. Actual
acquisition cost includes quantity and other special discounts
except time and cash discounts. The actual acquisition cost of
a drug shall be estimated by the commissioner, at average
wholesale price minus 11.5 percent, except that where a drug has
had its wholesale price reduced as a result of the actions of
the National Association of Medicaid Fraud Control Units, the
estimated actual acquisition cost shall be the reduced average
wholesale price, without the 11.5 percent deduction. new text beginThe actual
acquisition cost of antihemophilic factor drugs shall be
estimated at the average wholesale price minus 30 percent.
new text endThe
maximum allowable cost of a multisource drug may be set by the
commissioner and it shall be comparable to, but no higher than,
the maximum amount paid by other third-party payors in this
state who have maximum allowable cost programs. Establishment
of the amount of payment for drugs shall not be subject to the
requirements of the Administrative Procedure Act.

(b) An additional dispensing fee of $.30 may be added to
the dispensing fee paid to pharmacists for legend drug
prescriptions dispensed to residents of long-term care
facilities when a unit dose blister card system, approved by the
department, is used. Under this type of dispensing system, the
pharmacist must dispense a 30-day supply of drug. The National
Drug Code (NDC) from the drug container used to fill the blister
card must be identified on the claim to the department. The
unit dose blister card containing the drug must meet the
packaging standards set forth in Minnesota Rules, part
6800.2700, that govern the return of unused drugs to the
pharmacy for reuse. The pharmacy provider will be required to
credit the department for the actual acquisition cost of all
unused drugs that are eligible for reuse. Over-the-counter
medications must be dispensed in the manufacturer's unopened
package. The commissioner may permit the drug clozapine to be
dispensed in a quantity that is less than a 30-day supply.

(c) Whenever a generically equivalent product is available,
payment shall be on the basis of the actual acquisition cost of
the generic drug, or on the maximum allowable cost established
by the commissioner.

(d) The basis for determining the amount of payment for
drugs administered in an outpatient setting shall be the lower
of the usual and customary cost submitted by the providerdeleted text begin, the
average wholesale price minus five percent, or the maximum
allowable cost set by the federal government under United States
Code, title 42, chapter 7, section 1396r-8(e), and Code of
Federal Regulations, title 42, section 447.332, or by the
commissioner under paragraphs (a) to (c)
deleted text endnew text beginor the amount
established for Medicare by the United States Department of
Health and Human Services pursuant to title XVIII, section 1847a
of the federal Social Security Act
new text end.

new text begin (e) The commissioner may negotiate lower reimbursement
rates for specialty pharmacy products than the rates specified
in paragraph (a). The commissioner may require individuals
enrolled in the health care programs administered by the
department to obtain specialty pharmacy products from providers
with whom the commissioner has negotiated lower reimbursement
rates. Specialty pharmacy products are defined as those used by
a small number of recipients or recipients with complex and
chronic diseases that require expensive and challenging drug
regimens. Examples of these conditions include, but are not
limited to: multiple sclerosis, HIV/AIDS, transplantation,
hepatitis C, growth hormone deficiency, Crohn's Disease,
rheumatoid arthritis, and certain forms of cancer. Specialty
pharmaceutical products include injectable and infusion
therapies, biotechnology drugs, high-cost therapies, and
therapies that require complex care. The commissioner shall
consult with the formulary committee to develop a list of
specialty pharmacy products subject to this paragraph. In
consulting with the formulary committee in developing this list,
the commissioner shall take into consideration the population
served by specialty pharmacy products, the current delivery
system and standard of care in the state, and access to care
issues. The commissioner shall have the discretion to adjust
the reimbursement rate to prevent access to care issues.
new text end

Sec. 6.

Minnesota Statutes 2004, section 256B.0625,
subdivision 13f, is amended to read:


Subd. 13f.

Prior authorization.

(a) The Formulary
Committee shall review and recommend drugs which require prior
authorization. The Formulary Committee shall establish general
criteria to be used for the prior authorization of brand-name
drugs for which generically equivalent drugs are available, but
the committee is not required to review each brand-name drug for
which a generically equivalent drug is available.

(b) Prior authorization may be required by the commissioner
before certain formulary drugs are eligible for payment. The
Formulary Committee may recommend drugs for prior authorization
directly to the commissioner. The commissioner may also request
that the Formulary Committee review a drug for prior
authorization. Before the commissioner may require prior
authorization for a drug:

(1) the commissioner must provide information to the
Formulary Committee on the impact that placing the drug on prior
authorization may have on the quality of patient care and on
program costs, information regarding whether the drug is subject
to clinical abuse or misuse, and relevant data from the state
Medicaid program if such data is available;

(2) the Formulary Committee must review the drug, taking
into account medical and clinical data and the information
provided by the commissioner; and

(3) the Formulary Committee must hold a public forum and
receive public comment for an additional 15 days.

The commissioner must provide a 15-day notice period before
implementing the prior authorization.

(c) Prior authorization shall not be required or utilized
for any atypical antipsychotic drug prescribed for the treatment
of mental illness if:

(1) there is no generically equivalent drug available; and

(2) the drug was initially prescribed for the recipient
prior to July 1, 2003; or

(3) the drug is part of the recipient's current course of
treatment.

This paragraph applies to any multistate preferred drug list or
supplemental drug rebate program established or administered by
the commissioner.

(d) Prior authorization shall not be required or utilized
for any antihemophilic factor drug prescribed for the treatment
of hemophilia and blood disorders where there is no generically
equivalent drug available if the prior authorization is used in
conjunction with any supplemental drug rebate program or
multistate preferred drug list established or administered by
the commissioner. This paragraph expires July 1, 2005.

(e) The commissioner may require prior authorization for
brand name drugs whenever a generically equivalent product is
available, even if the prescriber specifically indicates
"dispense as written-brand necessary" on the prescription as
required by section 151.21, subdivision 2.

new text begin (f) Notwithstanding this subdivision, the commissioner may
automatically require prior authorization, for a period not to
exceed 180 days, for any drug that is approved by the United
States Food and Drug Administration on or after July 1, 2005.
The 180-day period begins no later than the first day that a
drug is available for shipment to pharmacies within the state.
The Formulary Committee shall recommend to the commissioner
general criteria to be used for the prior authorization of the
drugs, but the committee is not required to review each
individual drug. In order to continue prior authorizations for
a drug after the 180-day period has expired, the commissioner
must follow provisions of this subdivision.
new text end

Sec. 7.

new text begin [501B.895] PUBLIC HEALTH CARE PROGRAMS AND
CERTAIN TRUSTS.
new text end

new text begin (a) It is the public policy of this state that individuals
use all available resources to pay for the cost of long-term
care services, as defined in section 256B.0595, before turning
to Minnesota health care program funds, and that trust
instruments should not be permitted to shield available
resources of an individual or an individual's spouse from such
use.
new text end

new text begin (b) When a state or local agency makes a determination on
an application by the individual or the individual's spouse for
payment of long-term care services through a Minnesota public
health care program pursuant to chapter 256B, any irrevocable
inter-vivos trust or any legal instrument, device, or
arrangement similar to an irrevocable inter-vivos trust created
on or after July 1, 2005, containing assets or income of an
individual or an individual's spouse, including those created by
a person, court, or administrative body with legal authority to
act in place of, at the direction of, upon the request of, or on
behalf of the individual or individual's spouse, becomes
revocable for the sole purpose of that determination. For
purposes of this section, any inter-vivos trust and any legal
instrument, device, or arrangement similar to an inter-vivos
trust:
new text end

new text begin (1) shall be deemed to be located in and subject to the
laws of this state; and
new text end

new text begin (2) is created as of the date it is fully executed by or on
behalf of all of the settlors or others.
new text end

new text begin (c) For purposes of this section, a legal instrument,
device, or arrangement similar to an irrevocable inter-vivos
trust means any instrument, device, or arrangement which
involves a grantor who transfers or whose property is
transferred by another including, but not limited to, any court,
administrative body, or anyone else with authority to act on
their behalf or at their direction, to an individual or entity
with fiduciary, contractual, or legal obligations to the grantor
or others to be held, managed, or administered by the individual
or entity for the benefit of the grantor or others. These legal
instruments, devices, or other arrangements are irrevocable
inter-vivos trusts for purposes of this section.
new text end

new text begin (d) In the event of a conflict between this section and the
provisions of an irrevocable trust created on or after July 1,
2005, this section shall control.
new text end

new text begin (e) This section does not apply to trusts that qualify as
supplemental needs trusts under section 501B.89 or to trusts
meeting the criteria of United States Code, title 42, section
1396p (d)(4)(a) and (c) for purposes of eligibility for medical
assistance.
new text end

new text begin (f) This section applies to all trusts first created on or
after July 1, 2005, as permitted under United States Code, title
42, section 1396p, and to all interests in real or personal
property regardless of the date on which the interest was
created, reserved, or acquired.
new text end

Sec. 8. new text beginLIMITING WAIVER GROWTH.
new text end

new text begin (a) For each year of the biennium ending June 30, 2007, the
commissioner shall limit the new diversion caseload growth in
the MR/RC waiver to 75 additional allocations. Notwithstanding
Minnesota Statutes, section 256B.0916, subdivision 5, paragraph
(b), the available diversion allocations shall be awarded to
support individuals whose health and safety needs result in an
imminent risk of an institutional placement at any time during
the fiscal year.
new text end

new text begin (b) For each year of the biennium ending June 30, 2007, the
commissioner of human services shall make available additional
allocations for community alternatives for disabled individuals
waivered services covered under Minnesota Statutes, section
256B.49, at a rate of 105 per month or 1,260 per year, plus any
additional legislatively authorized growth. Priorities for the
allocation of funds shall be for individuals anticipated to be
discharged from institutional settings or who are at imminent
risk of a placement in an institutional setting.
new text end

new text begin (c) For each year of the biennium ending June 30, 2007, the
commissioner shall make available additional allocations for
traumatic brain injury waivered services covered under Minnesota
Statutes, section 256B.49, at a rate of 165 per year.
Priorities for the allocation of funds shall be for individuals
anticipated to be discharged from institutional settings or who
are at imminent risk of a placement in an institutional setting.
new text end