HF 2749

1st Unofficial Engrossment - 89th Legislature (2015 - 2016) Posted on 04/29/2016 12:43pm

1.1A bill for an act

1.2relating to state government; providing supplemental appropriations for the Office
1.3of Higher Education, the Board of Trustees of the Minnesota State Colleges and
1.4Universities, the Board of Regents of the University of Minnesota; jobs, economic
1.5development, labor, commerce and housing finance; state government and
1.6veterans; public safety and corrections; transportation; agriculture, environment,
1.7natural resources and clean water; early childhood education; kindergarten
1.8through grade 12; community and adult education including general education;
1.9education excellence; special education; education facilities; nutrition; state
1.10education agencies; health and human services; making certain appropriations
1.11adjustments; modifying disposition of certain revenues; requiring studies and
1.12reports; providing rulemaking authority;amending Minnesota Statutes 2014,
1.13sections 13.321, by adding a subdivision; 13.3805, by adding a subdivision;
1.1413.3806, subdivision 22; 13.43, subdivision 6; 16B.33, subdivisions 3, 4; 16C.10,
1.15subdivision 6; 16C.16, subdivisions 6, 7, 11, by adding a subdivision; 16E.0466;
1.1616E.21, subdivision 2, by adding subdivisions; 17.117, subdivisions 4, 11a;
1.1741A.12, subdivision 2; 62D.04, subdivision 1; 62D.08, subdivision 3; 62J.495,
1.18subdivision 4; 62J.496, subdivision 1; 62J.497, subdivisions 1, 3; 62M.02,
1.19subdivisions 12, 14, 15, 17, by adding subdivisions; 62M.05, subdivisions 3a,
1.203b; 62M.06, subdivisions 2, 3; 62M.07; 62M.09, subdivision 3; 62M.11; 62Q.81,
1.21subdivision 4; 62V.05, subdivision 2; 84.091, subdivision 2; 84.798, subdivision
1.222; 84.8035; 85.015, subdivision 13; 89.0385; 93.0015, subdivision 3; 93.2236;
1.2394.3495, subdivisions 2, 3, 7; 97A.405, subdivision 2; 97A.465, by adding a
1.24subdivision; 115B.48, by adding a subdivision; 115B.50, subdivision 3, by
1.25adding a subdivision; 115C.13; 115E.042; 116J.396, subdivision 2; 116J.423;
1.26116J.424; 116J.431, subdivisions 1, 2, 4, 6; 116J.68; 116L.99; 116M.14,
1.27subdivisions 2, 4, by adding subdivisions; 116M.15, subdivision 1; 116M.17,
1.28subdivisions 2, 4; 116M.18; 119B.13, subdivision 1; 120B.021, subdivisions
1.291, 3; 120B.115; 120B.232; 120B.30, subdivision 2, by adding a subdivision;
1.30120B.31, by adding a subdivision; 120B.35; 120B.36, as amended; 122A.61, by
1.31adding a subdivision; 122A.63, subdivision 1; 122A.74; 123B.04, subdivision
1.322, by adding a subdivision; 123B.53, subdivision 5; 123B.535; 124D.091,
1.33subdivisions 2, 3; 124D.1158, subdivisions 3, 4; 124D.135, subdivision 6, by
1.34adding subdivisions; 124D.55; 124D.59, by adding a subdivision; 124D.68,
1.35subdivision 2; 126C.05, subdivision 3; 126C.10, subdivisions 2d, 24; 127A.45,
1.36subdivision 6a; 136A.101, subdivisions 5a, 10; 144A.75, subdivisions 5, 6, 8, by
1.37adding a subdivision; 145.4716, subdivision 2, by adding a subdivision; 152.27,
1.38subdivision 2, by adding a subdivision; 152.33, by adding a subdivision; 161.368;
1.39165.14, subdivision 6; 168.017, by adding a subdivision; 168.021, subdivisions 1,
2.12, 2a; 168A.29, subdivision 1; 169.345, subdivisions 1, 2, 3; 171.06, subdivision
2.22; 171.07, by adding a subdivision; 174.185; 174.30, subdivisions 1, 4a, 8, by
2.3adding a subdivision; 179A.041, by adding subdivisions; 198.03, subdivisions 2,
2.43; 214.075, subdivision 3; 216B.2424, subdivision 5a; 216B.62, subdivision 2, by
2.5adding a subdivision; 219.015; 219.1651; 222.49; 222.50, subdivision 6; 237.012,
2.6subdivision 1; 245.99, subdivision 2; 245A.10, subdivisions 2, 4, 8; 245C.03,
2.7by adding a subdivision; 245C.04, subdivision 1; 245C.05, subdivisions 2b, 4,
2.87; 245C.08, subdivisions 2, 4; 245C.11, subdivision 3; 245C.17, subdivision 6;
2.9245C.23, subdivision 2; 246.50, subdivision 7; 246.54, as amended; 246B.01,
2.10subdivisions 1b, 2b; 246B.035; 246B.10; 254B.01, subdivision 4a; 254B.03,
2.11subdivision 4; 254B.04, subdivision 2a; 254B.06, subdivision 2, by adding
2.12a subdivision; 256.01, by adding a subdivision; 256B.04, subdivision 14;
2.13256B.057, by adding a subdivision; 256B.059, subdivisions 1, 2, 3, by adding a
2.14subdivision; 256B.06, subdivision 4; 256B.0621, subdivision 10; 256B.0622, by
2.15adding a subdivision; 256B.0625, subdivisions 30, 34, by adding subdivisions;
2.16256B.0924, by adding a subdivision; 256B.0949; 256B.15, subdivisions 1,
2.171a, 2; 256B.4912, by adding a subdivision; 256B.4914, subdivisions 5, 11;
2.18256B.69, subdivision 6; 256B.761; 256D.051; 256L.01, subdivision 1a; 256L.04,
2.19subdivisions 1, 1a, 2, 7; 256L.07, subdivision 1; 256L.11, subdivision 7; 256N.26,
2.20subdivision 3; 260C.451, by adding a subdivision; 297B.01, subdivision 16;
2.21297H.13, subdivision 2; 299A.41, subdivisions 3, 4; 299A.55; 299D.03,
2.22subdivision 5; 327.14, subdivision 8; 353.01, subdivision 43; 360.013, by adding
2.23a subdivision; 360.075, subdivisions 1, 2; 360.55, by adding a subdivision;
2.24473.121, subdivision 2; 473.845, subdivision 1; 518.175, subdivision 5; 518A.34;
2.25518A.35, subdivision 1; 518A.36; 609.3241; 626.556, subdivisions 3e, 10f;
2.26Minnesota Statutes 2015 Supplement, sections 16A.724, subdivision 2; 16C.16,
2.27subdivision 6a; 16C.19; 41A.14, subdivisions 1, 2; 41A.15, subdivision 10, by
2.28adding subdivisions; 41A.16, subdivision 1; 41A.17, subdivisions 1, 2; 41A.18,
2.29subdivision 1; 62U.04, subdivision 11; 116D.04, subdivision 2a; 116J.394;
2.30120A.41; 120B.021, subdivision 4; 120B.31, subdivision 4; 120B.36, subdivision
2.311; 122A.21, subdivision 2; 122A.415, subdivision 4; 122A.61, subdivision 1;
2.32123B.595, subdivisions 1, 10, 11; 124D.231, subdivision 2; 124D.59, subdivision
2.332; 124E.10, by adding a subdivision; 125A.08; 125A.11, subdivision 1; 125A.21,
2.34subdivision 3; 125A.76, subdivision 2c; 125A.79, subdivision 1; 126C.05,
2.35subdivision 1; 126C.10, subdivision 13a; 127A.47, subdivision 7; 136A.246,
2.36by adding subdivisions; 136A.87; 144.061; 144.4961, subdivisions 3, 4, 5,
2.376, 8, by adding a subdivision; 144A.75, subdivision 13; 174.30, subdivisions
2.384, 10; 222.50, subdivision 7; 245.4889, subdivision 1; 245.735, subdivisions
2.393, 4; 245C.08, subdivision 1; 245D.03, subdivision 1; 254B.05, subdivision
2.405; 256B.059, subdivision 5; 256B.0625, subdivisions 17, 17a, 18a, 20, 31,
2.4158; 256B.441, subdivisions 30, 66; 256B.4913, subdivision 4a; 256B.4914,
2.42subdivisions 10, 14, 15; 256B.76, subdivisions 1, 2, 4; 256B.766; 256L.01,
2.43subdivision 5; 256L.03, subdivision 5; 256L.04, subdivision 7b; 256L.05,
2.44subdivision 3a; 256L.06, subdivision 3; 256L.15, subdivisions 1, 2; 256M.41,
2.45subdivision 3; 256P.06, subdivision 3; 260C.203; 260C.212, subdivisions 1,
2.4614; 260C.215, subdivision 4; 260C.451, subdivision 6; 260C.521, subdivision
2.471; 326B.988; 518A.26, subdivision 14; 518A.39, subdivision 2; 626.556,
2.48subdivisions 2, 3c, 10b; Laws 1994, chapter 643, section 15, subdivision 8; Laws
2.492000, chapter 486, section 4, as amended; Laws 2011, First Special Session
2.50chapter 11, article 4, section 8; Laws 2012, chapter 263, sections 1, as amended;
2.512; Laws 2013, chapter 108, article 14, section 2, subdivision 1, as amended;
2.52Laws 2014, chapter 198, article 2, section 2; Laws 2014, chapter 312, article 11,
2.53sections 10; 11; 13; 16; 18; article 12, section 6, subdivision 5, as amended;
2.54Laws 2015, chapter 71, article 8, section 24; article 14, sections 4, subdivision
2.553; 9; Laws 2015, chapter 75, article 1, sections 1; 3, subdivisions 1, 2, 3; 4; 5,
2.56subdivisions 1, 2, 3; Laws 2015, chapter 77, article 1, section 3; Laws 2015, First
2.57Special Session chapter 1, article 1, sections 3, subdivisions 5, 6, 10; 4; 6; 8,
2.58subdivisions 1, 7; 9; Laws 2015, First Special Session chapter 3, article 1, section
3.127, subdivisions 2, 4, 5, 6, 7, 9; article 2, section 70, subdivisions 2, 3, 4, 5, 6, 7,
3.29, 11, 12, 15, 19, 21, 24, 26; article 3, section 15, subdivision 3; article 4, sections
3.34; 9, subdivision 2; article 5, section 30, subdivisions 2, 3, 5; article 6, section 13,
3.4subdivisions 2, 3, 6, 7; article 7, section 7, subdivisions 2, 3, 4; article 9, section
3.58, subdivisions 5, 6, 7, 9; article 10, section 3, subdivisions 2, 6, 7; article 11,
3.6section 3, subdivisions 2, 3; article 12, section 4, subdivision 2; Laws 2015,
3.7First Special Session chapter 4, article 1, sections 2, subdivision 4; 5; article 3,
3.8sections 2, subdivision 4; 3, subdivision 5; article 4, section 131; proposing
3.9coding for new law in Minnesota Statutes, chapters 13; 16C; 17; 41A; 62D; 62Q;
3.1062V; 86B; 103F; 116J; 116L; 120B; 122A; 124D; 125B; 136A; 136F; 144; 148;
3.11168; 168A; 198; 219; 256B; 260C; 260D; 325F; 360; 462A; 626; proposing
3.12coding for new law as Minnesota Statutes, chapters 146C; 147F; 153B; repealing
3.13Minnesota Statutes 2014, sections 144.058; 256B.059, subdivision 1a; 256L.04,
3.14subdivisions 2a, 8; 256L.22; 256L.24; 256L.26; 256L.28; Minnesota Statutes
3.152015 Supplement, section 115B.48, subdivision 9; Laws 2015, First Special
3.16Session chapter 1, article 1, section 2, subdivision 8.
3.17BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

3.18ARTICLE 1

3.19HIGHER EDUCATION APPROPRIATIONS

3.20	Section 1. APPROPRIATIONS.

3.21The sums shown in the columns marked "Appropriations" are added to the
3.22appropriations in Laws 2015, chapter 69, article 1, unless otherwise specified, to the
3.23agencies and for the purposes specified in this article. The appropriations are from the
3.24general fund, or another named fund, and are available for the fiscal years indicated
3.25for each purpose. The figures "2016" and "2017" used in this article mean that the
3.26appropriations listed under them are available for the fiscal year ending June 30, 2016, or
3.27June 30, 2017, respectively. "The first year" is fiscal year 2016. "The second year" is fiscal
3.28year 2017. "The biennium" is fiscal years 2016 and 2017.

3.29				APPROPRIATIONS
3.30				Available for the Year
3.31				Ending June 30
3.32					2016		2017

3.33 3.34

Sec. 2. MINNESOTA OFFICE OF HIGHER EDUCATION

3.35

Subdivision 1.Total Appropriations

$

-0-

$

17,570,000

3.36The amounts that may be spent for each
3.37purpose are specified in the following
3.38subdivisions.

3.39 3.40

Subd. 2.Equity in Postsecondary Education Grants

-0-

14,320,000

4.1For equity in postsecondary attainment
4.2grants under section 15. This appropriation
4.3is available until June 30, 2020. Of this
4.4appropriation, $100,000 may be used for
4.5administration expenses to administer
4.6the grant program. This is a onetime
4.7appropriation.

4.8 4.9

Subd. 3.Teacher Diversity Recommendation and Report

-0-

80,000

4.10For the teacher diversity recommendation
4.11and report under section 19. This is a onetime
4.12appropriation.

4.13

Subd. 4.State Grant

-0-

1,735,000

4.14For the state grant program under Minnesota
4.15Statutes, section 136A.121. This is a onetime
4.16appropriation.

4.17

Subd. 5.Dual Credit, Parent Information

-0-

25,000

4.18For the purpose of obtaining and providing
4.19information under Minnesota Statutes,
4.20section 136A.87, paragraph (b). The base for
4.21fiscal year 2018 and later is $20,000.

4.22 4.23

Subd. 6.Addiction Medicine Graduate Fellowship Program

-0-

210,000

4.24For establishing a grant program used to
4.25support up to four physicians who are
4.26enrolled each year in an addiction medicine
4.27fellowship program. A grant recipient must
4.28be enrolled in a program that trains fellows
4.29in diagnostic interviewing, motivational
4.30interviewing, addiction counseling,
4.31recognition and care of common acute
4.32withdrawal syndromes and complications,
4.33pharmacotherapies of addictive disorders,
4.34epidemiology and pathophysiology of
4.35addiction, addictive disorders in special
5.1populations, secondary interventions, use
5.2of screening and diagnostic instruments,
5.3inpatient care, and working within a
5.4multidisciplinary team, and prepares doctors
5.5to practice addiction medicine in rural and
5.6underserved areas of the state. The base for
5.7this program is $210,000 in fiscal year 2018
5.8and 2019 and is zero in fiscal year 2020.

5.9

Subd. 7.Dual Training

-0-

200,000

5.10For making grants under Minnesota Statutes,
5.11section 136A.246, subdivision 8a. This
5.12appropriation is available until June 30, 2019.

5.13 5.14

Subd. 8.Student and Employer Connection Information System

-0-

1,000,000

5.15For student and employer connection
5.16information system under section 18. Up
5.17to $100,000 of this appropriation may be
5.18spent for administrative expenses related
5.19to the appropriation. This is a onetime
5.20appropriation and is available until June 30,
5.212019.

5.22 5.23 5.24

Sec. 3. BOARD OF TRUSTEES OF THE MINNESOTA STATE COLLEGES AND UNIVERSITIES

5.25

Subdivision 1.Total Appropriations

$

-0-

$

12,018,000

5.26The amounts that may be spent for each
5.27purpose are specified in the following
5.28subdivisions.

5.29 5.30

Subd. 2. Operating Support and Protecting Affordability

-0-

10,000,000

5.31

Subd. 3.Principals' Leadership Institute

-0-

200,000

5.32For a grant to the Minnesota State University
5.33Mankato Principals' Leadership Institute
5.34under Minnesota Statutes, section 136A.89.

6.1

Subd. 4.Early Childhood Online Program

-0-

100,000

6.2To develop a multicampus online program
6.3for early childhood teacher preparation. This
6.4is a onetime appropriation.

6.5

Subd. 5.MnSCU Open Textbooks

-0-

100,000

6.6(a) For programs on system campuses
6.7that promote adoption of open textbooks.
6.8Programs must focus on the review, creation,
6.9and promotion of new or existing open
6.10textbooks and on saving money for students
6.11while meeting the academic needs of faculty.
6.12This is a onetime appropriation.
6.13(b) By January 15, 2017, the board shall
6.14report to the chairs and ranking minority
6.15members of the legislative committees with
6.16jurisdiction over higher education regarding
6.17the progress of the pilot programs. The
6.18report shall include a summary of each pilot
6.19program and the total savings expected for
6.20students as a result of the programs.

6.21

Subd. 6.MnSCU Open Textbook Library

-0-

100,000

6.22To expand and promote the open textbook
6.23library to faculty across the state. This is a
6.24onetime appropriation.

6.25 6.26

Subd. 7.Developmentally Delayed Student Pilot

-0-

750,000

6.27For the pilot program for developmentally
6.28delayed students under section 17. The base
6.29for fiscal year 2018 and later is $853,000.

6.30 6.31

Subd. 8.Supplemental Instruction and Data Reporting

-0-

768,000

6.32For activities and reporting under Minnesota
6.33Statutes, section 136F.33. This is a onetime
6.34appropriation.

7.1 7.2

Sec. 4. BOARD OF REGENTS OF THE UNIVERSITY OF MINNESOTA

7.3

Subdivision 1.Total Appropriation

$

-0-

$

18,100,000

7.4The amounts that may be spent for each
7.5purpose are specified in the following
7.6subdivisions.

7.7

Subd. 2.Health Restoration

-0-

5,000,000

7.8This appropriation is for the following
7.9activities:
7.10$3,000,000 is for support for faculty
7.11physicians who teach at eight residency
7.12program sites, including medical resident and
7.13student training programs in the Department
7.14of Family Medicine.
7.15$1,000,000 is for the Mobile Dental Clinic,
7.16in which dental students provide patient care
7.17as part of their clinical education and training
7.18under the supervision of faculty dentists.
7.19$1,000,000 is for expansion of geriatric
7.20education and family programs.

7.21

Subd. 3.Tuition Relief

-0-

13,000,000

7.22For undergraduate student tuition relief for
7.23Minnesota residents. The Board of Regents
7.24is requested not to offset the tuition relief
7.25by increases in mandatory fees, charges, or
7.26other assessments to the student.

7.27 7.28

Subd. 4.Rochester Campus, Collegiate Recovery Program

-0-

100,000

7.29(a) To design and implement a collegiate
7.30recovery program at its Rochester campus.
7.31This is a onetime appropriation and is
7.32available until June 30, 2019.
7.33(b) The purpose of the collegiate recovery
7.34program is to provide structured support
8.1for students in recovery from alcohol,
8.2chemical, or other addictive behaviors.
8.3Program activities may include, but are not
8.4limited to, specialized professional support
8.5through academic, career, and financial
8.6advising; establishment of on-campus
8.7or residential peer support communities;
8.8and opportunities for personal growth
8.9through leadership development and other
8.10community engagement activities.
8.11(c) No later than January 15, 2020, the
8.12Board of Regents must submit a report to
8.13the chairs and ranking minority members of
8.14the legislative committees with jurisdiction
8.15over higher education finance and policy on
8.16campus recovery program outcomes. Based
8.17on available data, the report must describe,
8.18in summary form, the number of students
8.19participating in the program and the success
8.20rate of participants, including retention and
8.21graduation rates, and long-term recovery and
8.22relapse rates.

8.23    Sec. 5. MNSCU TWO-YEAR COLLEGE PROGRAM; ADMINISTRATIVE
8.24COSTS.
8.25The appropriation made by Laws 2015, chapter 69, article 1, section 3, subdivision
8.2618, paragraph (c), for fiscal year 2017 for information technology and administrative costs
8.27is available on the effective date of this section and until June 30, 2017.
8.28EFFECTIVE DATE.This section is effective the day following final enactment.

8.29    Sec. 6. Minnesota Statutes 2014, section 122A.74, is amended to read:
8.30122A.74 PRINCIPALS' LEADERSHIP INSTITUTE, UNIVERSITY OF
8.31MINNESOTA.
8.32    Subdivision 1. Establishment. (a) The commissioner of education may contract
8.33with the Minnesota State University Mankato or the regents of the University of Minnesota
9.1to establish a Principals' Leadership Institute to provide professional development to
9.2school principals by:
9.3(1) creating a network of leaders in the educational and business communities to
9.4communicate current and future trends in leadership techniques;
9.5(2) helping to create a vision for the school that is aligned with the community
9.6and district priorities;
9.7(3) developing strategies to retain highly qualified teachers and ensure that diverse
9.8student populations, including at-risk students, children with disabilities, English learners,
9.9and gifted students, among others, have equal access to these highly qualified teachers; and
9.10(4) providing training to analyze data using culturally competent tools.
9.11(b) The University of Minnesota must cooperate with participating members of the
9.12business community to provide funding and content for the institute.
9.13(c) Participants must agree to attend the Principals' Leadership Institute for four
9.14weeks during the academic summer.
9.15(d) The Principals' Leadership Institute must incorporate program elements offered
9.16by leadership programs at the University of Minnesota and program elements used by
9.17the participating members of the business community to enhance leadership within their
9.18businesses.
9.19(e) The board of each school district in the state may select a principal, upon the
9.20recommendation of the district's superintendent and based on the principal's leadership
9.21potential, to attend the institute.
9.22(f) The school board annually shall forward its list of recommended participants to
9.23the commissioner by February 1. In addition, a principal may submit an application
9.24directly to the commissioner by February 1. The commissioner shall notify the school
9.25board, the principal candidates, and the University of Minnesota of the principals selected
9.26to participate in the Principals' Leadership Institute each year.
9.27    Subd. 2. Method of selection and requirements. (a) The board of each school
9.28district in the state may select a principal, upon the recommendation of the district's
9.29superintendent and based on the principal's leadership potential, to attend the institute.
9.30(b) The school board annually shall forward its list of recommended participants
9.31to the commissioner by February 1. In addition, a principal may submit an application
9.32directly to the commissioner by February 1. The commissioner shall notify the school
9.33board, the principal candidates, and the University of Minnesota of the principals selected
9.34to participate in the Principals' Leadership Institute each year.

9.35    Sec. 7. Minnesota Statutes 2014, section 136A.101, subdivision 5a, is amended to read:
10.1    Subd. 5a. Assigned family responsibility. "Assigned family responsibility" means
10.2the amount of a family's contribution to a student's cost of attendance, as determined by a
10.3federal need analysis. For dependent students, the assigned family responsibility is 96 94
10.4percent of the parental contribution. For independent students with dependents other than
10.5a spouse, the assigned family responsibility is 86 85 percent of the student contribution.
10.6For independent students without dependents other than a spouse, the assigned family
10.7responsibility is 50 49 percent of the student contribution.

10.8    Sec. 8. Minnesota Statutes 2014, section 136A.101, subdivision 10, is amended to read:
10.9    Subd. 10. Satisfactory academic progress. "Satisfactory academic progress"
10.10means satisfactory academic progress as defined under Code of Federal Regulations, title
10.1134, sections 668.16(e), 668.32(f), and 668.34, except that a student with an intellectual
10.12disability as defined in Code of Federal Regulations, title 34, section 668.231, enrolled
10.13in an approved comprehensive transition and postsecondary program under that section
10.14is subject to the institution's published satisfactory academic process standards for that
10.15program as approved by the Office of Higher Education.

10.16    Sec. 9. Minnesota Statutes 2015 Supplement, section 136A.246, is amended by adding
10.17a subdivision to read:
10.18    Subd. 8a. Support grants. The commissioner, from appropriations specifically
10.19made for the purposes of this subdivision, may provide grants to school districts and
10.20community colleges for the purpose of providing exposure and connection to teachers and
10.21staff, students, and employers regarding industry occupational pathways and employment
10.22with employers in the region.

10.23    Sec. 10. Minnesota Statutes 2015 Supplement, section 136A.246, is amended by
10.24adding a subdivision to read:
10.25    Subd. 10. Dual training account. A dual training account is created in the special
10.26revenue fund in the state treasury. The commissioner shall deposit into the account
10.27appropriations made for the purposes of this section. Money in the account is appropriated
10.28to the commissioner for the purposes for which it was appropriated.

10.29    Sec. 11. Minnesota Statutes 2015 Supplement, section 136A.246, is amended by
10.30adding a subdivision to read:
11.1    Subd. 11. Administration expenses. The commissioner may expend up to five
11.2percent of the appropriation made for the purposes of this section for administration
11.3of this section.

11.4    Sec. 12. Minnesota Statutes 2015 Supplement, section 136A.87, is amended to read:
11.5136A.87 PLANNING INFORMATION FOR POSTSECONDARY
11.6EDUCATION.
11.7(a) The office shall make available to all residents beginning in 7th grade through
11.8adulthood information about planning and preparing for postsecondary opportunities.
11.9Information must be provided to all 7th grade students and their parents annually
11.10by September 30 about planning for their postsecondary education. The office may
11.11also provide information to high school students and their parents, to adults, and to
11.12out-of-school youth.
11.13(b) The office must make reasonable efforts to obtain publicly available information
11.14about the dual credit acceptance policies of each Minnesota, Wisconsin, South Dakota,
11.15and North Dakota public and private college and university. This information must be
11.16shared on the office's Web site and included in the information under paragraph (a).
11.17(c) The information provided under paragraph (a) may include the following:
11.18(1) the need to start planning early;
11.19(2) the availability of assistance in educational planning from educational institutions
11.20and other organizations;
11.21(3) suggestions for studying effectively during high school;
11.22(4) high school courses necessary to be adequately prepared for postsecondary
11.23education;
11.24(5) encouragement to involve parents actively in planning for all phases of education;
11.25(6) information about postsecondary education and training opportunities existing
11.26in the state, their respective missions and expectations for students, their preparation
11.27requirements, admission requirements, and student placement;
11.28(7) ways to evaluate and select postsecondary institutions;
11.29(8) the process of transferring credits among Minnesota postsecondary institutions
11.30and systems;
11.31(9) the costs of postsecondary education and the availability of financial assistance
11.32in meeting these costs, including specific information about the Minnesota Promise;
11.33(10) the interrelationship of assistance from student financial aid, public assistance,
11.34and job training programs; and
11.35(11) financial planning for postsecondary education.
12.1EFFECTIVE DATE.This section is effective for the 2016-2017 school year and
12.2later.

12.3    Sec. 13. [136A.89] PRINCIPAL LEADERSHIP INSTITUTE.
12.4(a) The commissioner may contract with the Minnesota State University Mankato to
12.5establish a Principals' Leadership Institute to provide licensed principals in Minnesota
12.6with a research-based and evaluated professional development experience focused on
12.7instructional and organizational leadership by:
12.8(1) creating a network of educational leaders who demonstrate strong instructional
12.9leadership, racial equity leadership, and the skills to lead for all students;
12.10(2) advancing student achievement in school districts through the continuous
12.11development of courageous and results-driven principal leaders;
12.12(3) developing leaders who cultivate a school culture where every student is fully
12.13engaged, educated, and included; and
12.14(4) developing principal leaders who create a culture of high standards for all
12.15students and demonstrate the ability to build teacher development so that culturally
12.16responsive practices occur in all classrooms.
12.17(b) Minnesota State University Mankato must partner with participating district or
12.18charter school leadership to bridge professional development learning from the Principals'
12.19Leadership Institute to the district at large.
12.20(c) Participants must agree to attend all sessions of the Principals' Leadership Institute.
12.21(d) The Principals' Leadership Institute must base the program content and
12.22curriculum on current research-based best practices in educational leadership that lead to
12.23accelerated achievement growth for all students.
12.24(e) School district or charter school leadership in the state may recommend a licensed
12.25principal for participation in the program based on the principal's leadership potential.
12.26(f) The school board or charter school board must submit the list of recommended
12.27participants to the Principals' Leadership Institute by July 1 each year. Principals from a
12.28school district or charter school whose leadership is engaged in intentional work focused
12.29on eliminating the predictable racial achievement disparities within their district or school
12.30must receive priority selection for attending the Principals' Leadership Institute.

12.31    Sec. 14. [136F.33] SUPPLEMENTAL AND DEVELOPMENTAL EDUCATION.
12.32    Subdivision 1. Definitions. (a) For purposes of this section, the following terms
12.33have the meanings given.
13.1(b) "Academic weakness" means an academic skill determined to be below college
13.2ready according to a formalized assessment.
13.3(c) "Corequisite" means a course or other requirement that is taken simultaneously
13.4with a credit-bearing course for the purpose of providing targeted support.
13.5(d) "Credit-bearing course" means a college entry-level course that meets the
13.6requirements for a diploma, certificate, or degree.
13.7(e) "Developmental education" means the building of foundational skills in noncredit
13.8courses or programs to promote academic success in college-level coursework.
13.9(f) "Gateway course" means an initial credit-bearing course in a subject.
13.10(g) "Supplemental instruction" means a targeted support model for students with
13.11academic weaknesses to promote academic success in credit-bearing courses.
13.12(h) "Targeted support" means academic support, including but not limited to
13.13tutoring and directed group study time, related to increasing a student's understanding of
13.14a credit-bearing course.
13.15    Subd. 2. Program requirements. (a) The board shall develop and implement varied
13.16research-grounded tiered approaches to supplemental instruction and developmental
13.17education based on student academic readiness. The tiered approach must minimize the
13.18placement of students in developmental education under subdivision 5 by providing a
13.19supplemental instruction course structure that results in earning the equivalent of credit in
13.20a credit-bearing course while providing targeted support to a student who:
13.21(1) did not meet the minimum course placement criteria for a credit-bearing course;
13.22and
13.23(2) using multiple measures of assessment, is identified as likely to succeed in a
13.24credit-bearing course if targeted support is provided.
13.25(b) The board shall establish campus-specific tiered approaches including strategies
13.26under subdivision 3 that are:
13.27(1) focused on the skills and competencies essential for success in the math and
13.28English college-level courses; and
13.29(2) based on the nature of individual campus academic programming and the needs
13.30of specific campus student populations.
13.31(c) To facilitate the transfer of credits, the transcript record for a supplemental
13.32instruction course must include a credit-bearing course or a designation of equivalency to
13.33a specific credit-bearing course.
13.34(d) The board shall make available to students on its Web site, in course catalogs, and
13.35by other methods at the discretion of the board, the supplemental instruction, developmental
13.36education, and corequisite courses offered at a particular college or university.
14.1    Subd. 3. Support strategies. (a) The board shall continuously monitor and adopt
14.2strategies that have the potential or that have proven to increase the placement and success
14.3of students in credit-bearing courses. If the board finds that strategies are successful at
14.4one campus or program, the board must assess whether the strategies would be beneficial
14.5campuswide or systemwide and, if it determines that it would, must implement the strategy
14.6for all campus or system programs in which the strategy is predicted to be successful. The
14.7board may discontinue the strategy for those programs where it does not prove beneficial.
14.8(b) Consistent with subdivision 2, strategies may include, but are not limited to:
14.9(1) replacing developmental or remedial courses, when appropriate, with corequisite
14.10courses in which students with academic weaknesses are placed into introductory
14.11credit-bearing courses while receiving supplemental academic instruction on the same
14.12subject and during the same term;
14.13(2) expanding proactive advising, including the use of early alert systems or
14.14requiring the approval of an adviser or counselor to register for certain classes;
14.15(3) developing meta-majors in broad academic disciplines as an alternative to
14.16undecided majors;
14.17(4) making available alternative mathematics curriculum, including curriculum most
14.18relevant to the student's chosen area of study;
14.19(5) implementing "opt-out scheduling" by automatically enrolling students in a
14.20schedule of courses chosen by the student's department but allowing students to disenroll
14.21from those courses if they meet with an academic adviser and cosign a change of
14.22enrollment form; and
14.23(6) facilitating the transfer of credits between state colleges and universities.
14.24    Subd. 4. Assessments and advising. (a) Common student placement assessments
14.25must provide information identifying academic weaknesses that must be provided to the
14.26student. A student assessed below college ready must be provided:
14.27(1) materials designed to address identified academic weaknesses;
14.28(2) support to prepare for and retake placement assessments;
14.29(3) postassessment advising to assist in making informed decisions on identifying
14.30academic weaknesses and targeting supplemental instruction options; and
14.31(4) additional targeted support while enrolled in college-level math and English
14.32courses.
14.33(b) Intrusive advising must be provided to a student who participates in supplemental
14.34instruction programs but has been unsuccessful in achieving academic success. Advising
14.35must include career and employment options, alternative career pathways, and related
14.36educational opportunities.
15.1    Subd. 5. Developmental education. (a) The board shall create a framework to
15.2redesign developmental education to provide a student who does not meet the criteria for
15.3inclusion in a supplemental instruction course the opportunity to complete gateway math
15.4and English courses within one academic year. The board must provide developmental
15.5education to a student or advise the student to enroll in adult basic education.
15.6(b) The board shall not require a student who has successfully taken a developmental
15.7course under section 124D.09, subdivision 10, to participate in a developmental education
15.8course in the same subject area.
15.9    Subd. 6. Report. Annually by January 15, the board shall report to the chairs and
15.10ranking minority members of the legislative committees with primary jurisdiction over
15.11higher education finance on the goal of increasing the placement and success of students
15.12in credit-bearing courses. The report must, at a minimum, include:
15.13(1) the following information on board activities:
15.14(i) strategies the board has adopted at each campus under subdivision 2, paragraph (b);
15.15(ii) strategies that have been discontinued at each campus; and
15.16(iii) strategies being considered for systemwide implementation; and
15.17(2) the following information on students:
15.18(i) the number and percent of students placed in developmental education;
15.19(ii) the number and percent of students who complete developmental education
15.20within one academic year;
15.21(iii) the number and percent of students that complete gateway courses in math
15.22and English in one academic year;
15.23(iv) the student retention rate;
15.24(v) time to complete a degree or certificate; and
15.25(vi) credits earned by those completing a degree, certificate, or other program.
15.26The report must disaggregate student data by race, ethnicity, Pell Grant eligibility,
15.27and age and provide aggregate data.

15.28    Sec. 15. EQUITY IN EDUCATION AND JOB CONNECTION GRANT
15.29PROGRAM.
15.30    Subdivision 1. Grants. (a) The commissioner of the Office of Higher Education
15.31shall award grants to improve postsecondary attendance, completion, and retention and
15.32the obtaining of well-paying jobs for which the postsecondary education provides training
15.33by providing services to historically underrepresented college students. Grants must be
15.34awarded to Minnesota state colleges and universities and private organization programs
15.35that help the state reach the attainment goals under Minnesota Statutes, section 135A.012.
16.1Programs must provide services targeted to make the improvements including, but not
16.2limited to:
16.3    (1) academic and nonacademic counseling or advising;
16.4    (2) mentoring in education and career opportunities;
16.5    (3) structured tutoring;
16.6    (4) career awareness and exploration including internships and post graduation
16.7job placements;
16.8    (5) orientation to college life;
16.9(6) financial aid counseling;
16.10    (7) academic instruction programs in core curricular areas of mathematics and
16.11language arts;
16.12    (8) supplemental instruction programs for college courses with high failure and
16.13withdrawal rates; and
16.14    (9) co-requisite college course models for delivery of academic support.
16.15(b) The office shall structure the grants for sustainability of programs funded by a
16.16grant.
16.17(c) To the extent there are sufficient qualified applicants, approximately 50 percent
16.18of grant dollars must be awarded to private organization programs.
16.19    Subd. 2. Application process. (a) The commissioner shall develop a grant
16.20application process. The commissioner shall attempt to support projects in a manner that
16.21ensures that eligible students throughout the state have access to program services.
16.22    (b) The grant application must include, at a minimum, the following information:
16.23    (1) a description of the characteristics of the students to be served reflective of the
16.24need for services listed in subdivision 1;
16.25    (2) a description of the services to be provided and a timeline for implementation
16.26of the service activities;
16.27    (3) a description of how the services provided will foster postsecondary retention
16.28and completion;
16.29    (4) a description of how the services will be evaluated to determine whether the
16.30program goals were met;
16.31(5) the history of the applicant in achieving successful improvements using the
16.32services for which a grant is sought;
16.33(6) the assumed cost per student of achieving successful outcomes;
16.34(7) the effect of the grant on assisting students to obtain well-paying jobs;
16.35(8) the proposed grant match;
16.36(9) the organizational commitment to program sustainability; and
17.1    (10) other information as identified by the commissioner.
17.2Grant recipients must specify both program and student outcome goals, and performance
17.3measures for each goal.
17.4    Subd. 3. Advisory committee. The commissioner may establish and convene an
17.5advisory committee to assist the commissioner in reviewing applications and advise the
17.6commissioner on grantees and grant amounts. The members of the committee may include
17.7representatives of postsecondary institutions, organizations providing postsecondary
17.8academic and career services, and others deemed appropriate by the commissioner.
17.9    Subd. 4. Outcome report. Each grant recipient must annually submit a report to
17.10the Office of Higher Education identifying its program and student goals and activities
17.11implemented. A report must include, but not be limited to, information on:
17.12(1) number of students served;
17.13(2) course taking and grade point average of participating students;
17.14    (3) persistence and retention rates of participating students;
17.15(4) postsecondary graduation rates of participating students;
17.16    (5) the number of students who required postsecondary academic remediation and
17.17number of remedial courses for each of those students and in the aggregate; and
17.18(6) jobs and wage rates of students after postsecondary graduation.
17.19To the extent possible, the report must breakdown outcomes by Pell grant qualification,
17.20race, and ethnicity.
17.21    Subd. 5. Legislative report. By January 15 of each year through 2021, the office
17.22shall submit a report to the chairs and ranking minority members of the committees in the
17.23house of representatives and the senate with jurisdiction over higher education finance
17.24regarding the grant recipients and their activities. The report shall include information
17.25about the students served, the organizations providing services, program activities,
17.26program goals and outcomes, and program revenue sources and funding levels.

17.27    Sec. 16. STATE GRANT TUITION CAPS.
17.28For the purposes of the state grant program under Minnesota Statutes, section
17.29136A.121, for the fiscal year ending June 30, 2017, the tuition maximum is $5,736
17.30for students in two-year programs and the tuition maximum is $14,186 for students in
17.31four-year programs.

17.32    Sec. 17. STATE UNIVERSITIES; PILOT PROGRAM FOR STUDENTS WITH
17.33INTELLECTUAL AND DEVELOPMENTAL DISABILITIES.
18.1    Subdivision 1. Pilot program created. (a) The Board of Trustees of the Minnesota
18.2State Colleges and Universities must offer a pilot academic program as described in
18.3this section for students with intellectual and developmental disabilities. The pilot is for
18.4students entering the program in the 2017-2018 academic year. The program must be
18.5offered at a total of four state university or college campuses that have the ability to offer
18.6a robust program using existing facilities, including residential facilities. The campuses
18.7selected must, to the extent possible, be located in different geographic regions of the state.
18.8(b) In designing the pilot program, the Board of Trustees must consult with PACER
18.9Center, Inc., the Minnesota Governor's Council on Developmental Disabilities, Arc
18.10Minnesota, and other interested stakeholder groups. The board must also consult with
18.11administrators of similar programs at other postsecondary institutions.
18.12    Subd. 2. Program enrollment and admission. The enrollment goal for each
18.13campus's pilot program must be at least ten incoming students per academic year. Students
18.14must be admitted based on an application process that includes an in-person interview;
18.15an independent assessment of an applicant's interest, motivation, and likelihood of
18.16success in the program; and any other eligibility requirements established by the board.
18.17Upon successful completion, a student must be awarded a certificate, diploma, or other
18.18appropriate academic credential.
18.19    Subd. 3. Program curriculum and activities. (a) The pilot program must provide
18.20an inclusive, two-year full-time residential college experience for students with intellectual
18.21and developmental disabilities. The required curriculum must include core courses
18.22that develop life skills, financial literacy, and the ability to live independently; rigorous
18.23academic work in a student's chosen field of study; and an internship, apprenticeship, or
18.24other skills-based experience to prepare for meaningful employment upon completion
18.25of the program.
18.26(b) In addition to academic requirements, the program must offer participating
18.27students the opportunity to engage fully in campus life. Program activities must include
18.28but are not limited to (1) the establishment of on-campus mentoring and peer support
18.29communities and (2) opportunities for personal growth through leadership development
18.30and other community engagement activities.
18.31(c) A participating campus may tailor its program curriculum and activities to
18.32highlight academic programs, student and community life experiences, and employment
18.33opportunities unique to that campus or the region of the state where the campus is located.
18.34    Subd. 4. Progress reports to legislature. The board must submit progress reports
18.35on the pilot program required by this section to the chairs and ranking minority members
19.1of the committees in the house of representatives and the senate with jurisdiction over
19.2higher education finance and policy and human services finance and policy as follows:
19.3(1) no later than January 15, 2017, a report describing plans for implementation of
19.4the program and recruitment of applicants, including identification of anticipated program
19.5needs that cannot be filled using existing campus or system resources; and
19.6(2) no later than January 15, 2019, a report describing program operations, including
19.7information on participation and expected completion rates, the feasibility of program
19.8expansion to other state university campuses, and detail on any unmet program needs.

19.9    Sec. 18. STUDENT AND EMPLOYER CONNECTION INFORMATION
19.10SYSTEM.
19.11The commissioner of the Office of Higher Education shall issue a request for
19.12proposal no later than July 1, 2016, for a Web-based job and intern-seeking software tool
19.13that matches the needs of employers located in Minnesota with the individual profiles of
19.14high school seniors and postsecondary students attending Minnesota high schools and
19.15postsecondary institutions. The commissioner shall no later than October 1, 2016, select a
19.16provider. The selected provider must have experience that demonstrates both prior similar
19.17software development ability and implementation outcomes of successful blind matching
19.18of job candidates and employers in furtherance of Minnesota's workforce diversity and
19.19inclusion objectives. The commissioner shall contract for the development of the system.
19.20EFFECTIVE DATE.This section is effective the day following final enactment.

19.21    Sec. 19. COMMISSIONER OF THE OFFICE OF HIGHER EDUCATION;
19.22TEACHER DIVERSITY RECOMMENDATIONS AND REPORT.
19.23(a) The commissioner of the Office of Higher Education, in consultation with
19.24the Board of Teaching, the Office of Educator Licensing at the Minnesota Department
19.25of Education, and other interested stakeholders, including councils and other local
19.26organizations serving communities of color or American Indian communities, diverse
19.27K-12 educator candidates and licensed educators, human resources personnel, parent
19.28representatives, urban, suburban, and rural school district and school board associations
19.29and organizations, teacher representatives, other organizations focused on teacher diversity
19.30in education, public and nonpublic higher education systems and institutions, and local
19.31ethnic-focused media, shall prepare and submit a report to the legislature recommending
19.32how best to realize the goal of providing all students, including low-income students,
19.33American Indian students, and students of color with improved and equitable access to
19.34effective, more diverse teachers, consistent with state policy. The commissioner must
20.1consider the substance of state policy and paragraphs (b) and (c) in developing the
20.2recommendations in the report.
20.3(b) The commissioner's recommendations must address at least the following:
20.4(1) ensuring transparency and accountability by requiring traditional and alternative
20.5teacher preparation programs to publicly report enrollment and completion data for
20.6diverse teacher licensure candidates and by requiring districts to publicly report data on
20.7the demographic disparities between enrolled students and licensed teachers employed in
20.8the district and its school;
20.9(2) expanding pathways to licensure by encouraging districts to develop programs
20.10with two- and four-year institutions and with community-based organizations to recruit
20.11and support diverse populations of enrolled students, nonlicensed district employees, and
20.12local community members in becoming licensed teachers in the district, facilitating the
20.13ability of diverse, nontraditional teacher candidates to change careers and pursue licensure
20.14through community college pathways, bachelor's degree programs or postbaccalaureate
20.15teacher preparation programs, and creating statewide campaigns to encourage diverse
20.16candidates to become licensed teachers;
20.17(3) providing diverse teacher licensure candidates with the preparation and skills
20.18needed to become effective teachers, removing inequitable barriers to licensure presented
20.19by licensure exams, and for purposes of attaining a full professional license, allowing
20.20candidates to demonstrate their skills proficiency through alternatives to teacher skills and
20.21college entrance exams;
20.22(4) providing financial assistance and incentives such as scholarships, student
20.23teaching stipends, and loan forgiveness programs to encourage diverse individuals to attain
20.24a teaching, counseling, or social work license or advanced degree, otherwise improve their
20.25professional practice, or become school administrators, and using a hiring bonus to recruit
20.26more diverse teachers into a district or school; and
20.27(5) supporting induction and retention programs by funding teacher residency and
20.28mentoring programs that support the retention and professional development of diverse
20.29teachers and focusing teachers' professional development opportunities on cultural fluency
20.30and competency.
20.31(c) The commissioner must include in the report, as appropriate, any
20.32recommendations for amendments to the following statutes and any related statutes:
20.33(1) the world's best work force under Minnesota Statutes, section 120B.11;
20.34(2) regional centers of excellence under Minnesota Statutes, section 120B.115;
20.35(3) Board of Teaching duties under Minnesota Statutes, section 122A.09,
20.36subdivisions 4 and 4a;
21.1(4) teacher continuing or employment contracts and peer review and mentorship
21.2under Minnesota Statutes, sections 122A.40 and 122A.41;
21.3(5) the alternative teacher professional pay system agreement under Minnesota
21.4Statutes, section 122A.414, subdivision 2;
21.5(6) staff development programs under Minnesota Statutes, section 122A.60;
21.6(7) American Indian grants, scholarships, and loan programs under Minnesota
21.7Statutes, section 122A.63;
21.8(8) teacher residency programs under Minnesota Statutes, section 122A.68;
21.9(9) the ability of the Board of Teaching to arrange for student teachers under
21.10Minnesota Statutes, section 122A.69;
21.11(10) the ability of school districts to develop mentoring programs for teachers of
21.12color under Minnesota Statutes, section 122A.70;
21.13(11) the legislature's support of research on the effectiveness of teacher preparation
21.14programs under Minnesota Statutes, section 122A.71;
21.15(12) teacher centers to help teachers learn, experiment, assess, and improve to meet
21.16students' needs under Minnesota Statutes, section 122A.72; and
21.17(13) the teacher shortage loan forgiveness program under Minnesota Statutes,
21.18section 136A.1791.
21.19(d) The commissioner must submit the report to the chairs and ranking minority
21.20members of the committees in the house of representatives and the senate with jurisdiction
21.21over education by February 1, 2017.

21.22    Sec. 20. UNIVERSITY OF MINNESOTA BUDGET ALLOCATION REPORT.
21.23The Board of Regents of the University of Minnesota shall report by February 1,
21.242017, to the chairs and ranking minority members of the legislative committees with
21.25primary jurisdiction over higher education finance on the factors it considers when
21.26allocating funds to system campuses. The report must specifically, without limitation,
21.27address the following questions:
21.28(1) what circumstances would lead the university to adopt an alternate budget model
21.29to the Resource Responsibility Center (RRC) model for a system campus;
21.30(2) what were the rationale and factors considered for the initial base budget
21.31allocation to system campuses when the RRC was first established; and
21.32(3) what factors would lead the university to consider adjusting the initial base
21.33allocation model.

22.1ARTICLE 2

22.2ECONOMIC DEVELOPMENT

22.3	Section 1. APPROPRIATIONS.

22.4    The sums shown in the columns under "Appropriations" are added to or, if shown
22.5in parentheses, subtracted from the appropriations in Laws 2015, First Special Session
22.6chapter 1, article 1, or other law to the specified agencies. The appropriations are from the
22.7general fund, or another named fund, and are available for the fiscal years indicated for
22.8each purpose. The figure "2017" used in this article means that the appropriations listed
22.9under it are available for the fiscal year ending June 30, 2017.

22.10				APPROPRIATIONS
22.11				Available for the Year
22.12				Ending June 30
22.13					2016		2017

22.14 22.15

Sec. 2. DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT

22.16

Subdivision 1.Total Appropriation

$

-0-

$

34,445,000

22.17	Appropriations by Fund
22.18	General	-0-	33,445,000
22.19 22.20	Workforce Development	-0-	1,000,000

22.21The amounts that may be spent for each
22.22purpose are specified in the following
22.23subdivisions.

22.24 22.25

Subd. 2.Business and Community Development

-0-

30,595,000

22.26$2,000,000 in fiscal year 2017 is for the
22.27redevelopment program under Minnesota
22.28Statutes, section 116J.571. This is a onetime
22.29appropriation.
22.30$1,220,000 in fiscal year 2017 is for a
22.31grant to the Duluth North Shore Sanitary
22.32District to retire debt of the district in order
22.33to bring the district's monthly wastewater
22.34rates in line with those of similarly situated
23.1facilities across the state. This is a onetime
23.2appropriation.
23.3$275,000 in fiscal year 2017 is for a grant to
23.4the Community and Economic Development
23.5Associates (CEDA) for an economic
23.6development study and analysis of the effects
23.7of current and projected economic growth
23.8in southeast Minnesota. This is a onetime
23.9appropriation and is available until June 30,
23.102019.
23.11$300,000 in fiscal year 2017 is for expansion
23.12of business assistance services provided by
23.13business development specialists located in
23.14the Northwest Region, Northeast Region,
23.15West Central Region, Southwest Region,
23.16Southeast Region, and Twin Cites Metro
23.17Region offices established throughout the
23.18state. Funds under this section may be used
23.19to provide services including, but not limited
23.20to, business start-ups; expansion; location or
23.21relocation; finance; regulatory and permitting
23.22assistance; and other services determined
23.23by the commissioner. The commissioner
23.24may also use funds under this section to
23.25increase the number of business development
23.26specialists in each region of the state,
23.27increase and expand the services provided
23.28through each regional office, and publicize
23.29the services available and provide outreach
23.30to communities in each region regarding
23.31services and assistance available through the
23.32business development specialist program.
23.33This is a onetime appropriation.
23.34$50,000 in fiscal year 2017 is to enhance
23.35the outreach and public awareness activities
24.1of the Bureau of Small Business under
24.2Minnesota Statutes, section 116J.68. This is
24.3a onetime appropriation.
24.4$750,000 in fiscal year 2017 is for a grant to
24.5Enterprise Minnesota, Inc. Of this amount,
24.6$375,000 is for the small business growth
24.7acceleration program under Minnesota
24.8Statutes, section 116O.115, and $375,000
24.9is for operations under Minnesota Statutes,
24.10sections 116O.01 to 116O.061. This is a
24.11onetime appropriation.
24.12$2,000,000 in fiscal year 2017 is for
24.13the Minnesota Initiative program under
24.14Minnesota Statutes, section 116M.18.
24.15Of this amount, up to five percent is for
24.16administration, outreach, and monitoring of
24.17the program. This is a onetime appropriation.
24.18$500,000 in fiscal year 2017 is for making
24.19capacity building grants under Minnesota
24.20Statutes, section 116M.18, subdivision 9.
24.21This is a onetime appropriation.
24.22$3,500,000 in fiscal year 2017 is for grants to
24.23initiative foundations to provide financing
24.24for business startups, expansions, and
24.25maintenance; and for business ownership
24.26transition and succession. This is a onetime
24.27appropriation. Of the amount appropriated:
24.28(1) $500,000 is for a grant to the Southwest
24.29Initiative Foundation;
24.30(2) $500,000 is for a grant to the West Central
24.31Initiative Foundation;
24.32(3) $500,000 is for a grant to the Southern
24.33Minnesota Initiative Foundation;
25.1(4) $500,000 is for a grant to the Northwest
25.2Minnesota Foundation;
25.3(5) $500,000 is for a grant to the Initiative
25.4Foundation;
25.5(6) $500,000 is for a grant to the Northland
25.6Foundation; and
25.7(7) $500,000 is for a grant to the Minnesota
25.8Initiative Board under Minnesota Statutes,
25.9chapter 116M. Funds available under this
25.10clause must be allocated as follows:
25.11(i) 50 percent of the funds must be allocated
25.12for projects in the counties of Dakota,
25.13Ramsey, and Washington; and
25.14(ii) 50 percent of the funds must be allocated
25.15for projects in the counties of Anoka, Carver,
25.16Hennepin, and Scott.
25.17$600,000 in fiscal year 2017 is for a grant to
25.18a city of the second class that is designated
25.19as an economically depressed area by the
25.20United States Department of Commerce for
25.21economic development, redevelopment, and
25.22job creation programs and projects. This is a
25.23onetime appropriation and is available until
25.24June 30, 2019.
25.25$5,500,000 in fiscal year 2017 is for a grant to
25.26the Minnesota Film and TV Board for the film
25.27production jobs program under Minnesota
25.28Statutes, section 116U.26. This appropriation
25.29is in addition to the appropriation in Laws
25.302015, First Special Session chapter 1,
25.31article 1, section 2, subdivision 2. This is
25.32a onetime appropriation. Of this amount,
25.33$250,000 is for grants to Hmong-American
25.34filmmakers that have directed or produced
26.1prior feature-length stories to produce
26.2projects within Minnesota.
26.3$150,000 in fiscal year 2017 is for a grant
26.4to the city of Edina to conduct a feasibility
26.5study of constructing Grandview Green over
26.6Highway 100 in Edina. This is a onetime
26.7appropriation.
26.8$10,000,000 in fiscal year 2017 is for deposit
26.9in the Minnesota 21st century fund. This is a
26.10onetime appropriation.
26.11$400,000 in fiscal year 2017 is for grants to
26.12small business development centers under
26.13Minnesota Statutes, section 116J.68. Funds
26.14made available under this section may be
26.15used to match funds under the federal Small
26.16Business Development Center (SBDC)
26.17program under United States Code, title 15,
26.18section 648, provide consulting and technical
26.19services, or to build additional SBDC
26.20network capacity to serve entrepreneurs
26.21and small businesses. The commissioner
26.22shall allocate funds equally among the nine
26.23regional centers and lead center. This is a
26.24onetime appropriation.
26.25$3,100,000 in fiscal year 2017 is for a transfer
26.26to the Board of Regents of the University
26.27of Minnesota for academic and applied
26.28research through MnDRIVE at the Natural
26.29Resources Research Institute to develop new
26.30technologies that enhance the long-term
26.31viability of the Minnesota mining industry.
26.32The research must be done in consultation
26.33with the Mineral Coordinating Committee
26.34established by Minnesota Statutes, section
26.3593.0015. This is a onetime transfer.
27.1$250,000 in fiscal year 2017 is for a grant to
27.2the city of Kelliher for water infrastructure
27.3upgrades. This is a onetime appropriation
27.4and is available until June 30, 2019.

27.5

Subd. 3.Workforce Development

-0-

2,300,000

27.6	Appropriations by Fund
27.7		2016	2017
27.8	General	-0-	1,300,000
27.9 27.10	Workforce Development	-0-	1,000,000

27.11$100,000 in fiscal year 2017 is for a
27.12grant to Ramsey County for a study of
27.13the workforce-based mass transit needs
27.14of the north metro area. Ramsey County
27.15may work in collaboration with officials in
27.16other counties including, but not limited
27.17to, Anoka and Washington Counties in
27.18producing the study. By December 1, 2017,
27.19Ramsey County must submit the report to
27.20the commissioner. By January 1, 2018, the
27.21commissioner must report to the chairs of the
27.22standing committees of the legislature having
27.23jurisdiction over workforce development
27.24and transportation. This is a onetime
27.25appropriation and is available until June 30,
27.262018.
27.27$500,000 in fiscal year 2017 is from the
27.28workforce development fund for rural career
27.29counseling coordinators in the workforce
27.30service areas and for the purposes specified
27.31in Minnesota Statutes, section 116L.667.
27.32This appropriation is for increases to existing
27.33applicants who were awarded grants in fiscal
27.34years 2016 and 2017.
27.35$500,000 in fiscal year 2017 is for a grant to
27.36Occupational Development Corporation, Inc.
28.1in the city of Buhl to provide training and
28.2employment opportunities for people with
28.3disabilities and disadvantaged workers. This
28.4is a onetime appropriation.
28.5$400,000 in fiscal year 2017 is for a grant
28.6to Northern Bedrock Historic Preservation
28.7Corps for the pathway to the preservation
28.8trades program for recruitment of corps
28.9members, engagement of technical
28.10specialists, development of a certificate
28.11program, and skill development in historic
28.12preservation for youth ages 18 to 25. This is
28.13a onetime appropriation.
28.14$300,000 in fiscal year 2017 is for the
28.15"Getting to Work" grant program. This is a
28.16onetime appropriation and is available until
28.17June 30, 2019.
28.18$500,000 in fiscal year 2017 is from the
28.19workforce development fund for a grant to
28.20the North East Higher Education District to
28.21purchase equipment for training programs
28.22due to increased demand for job training
28.23under the state dislocated worker program.
28.24This is a onetime appropriation and is
28.25available until June 30, 2018.

28.26

Subd. 4.Vocational rehabilitation

-0-

1,550,000

28.27$800,000 in fiscal year 2017 is for grants
28.28to centers for independent living under
28.29Minnesota Statutes, section 268A.11. This
28.30is a onetime appropriation and is in addition
28.31to the appropriation in Laws 2015, First
28.32Special Session chapter 1, article 1, section
28.332, subdivision 6.
28.34$750,000 in fiscal year 2017 is for grants
28.35to day training and habilitation providers
29.1to provide innovative employment options
29.2and to advance community integration for
29.3persons with disabilities as required under
29.4the Minnesota Olmstead Plan. Of this
29.5amount, $250,000 is for a pilot program
29.6for home-based, technology-enhanced
29.7monitoring of persons with disabilities. This
29.8is a onetime appropriation and is available
29.9until June 30, 2018.

29.10 29.11

Sec. 3. DEPARTMENT OF LABOR AND INDUSTRY

$

-0-

$

350,000

29.12$250,000 in fiscal year 2017 is from
29.13the workforce development fund for the
29.14apprenticeship program under Minnesota
29.15Statutes, chapter 178. This amount is added
29.16to the base appropriation for this purpose.
29.17$100,000 in fiscal year 2017 is to provide
29.18outreach and education concerning
29.19requirements under state or federal law
29.20governing removal of architectural barriers
29.21that limit access to public accommodations
29.22by persons with disabilities and resources
29.23that are available to comply with
29.24those requirements. This is a onetime
29.25appropriation.

29.26

Sec. 4. EXPLORE MINNESOTA TOURISM

$

-0-

$

1,250,000

29.27$300,000 in fiscal year 2017 is for a grant to
29.28the Mille Lacs Tourism Council to enhance
29.29marketing activities related to tourism
29.30promotion in the Mille Lacs Lake area. This
29.31is a onetime appropriation.
29.32$950,000 in fiscal year 2017 is to establish a
29.33pilot project to assist in funding and securing
29.34major events benefiting communities
30.1throughout the state. The pilot project must
30.2measure the economic impact of visitors on
30.3state and local economies, increased lodging
30.4and nonlodging sales taxes in addition
30.5to visitor spending, and increased media
30.6awareness of the state as an event destination.
30.7This is a onetime appropriation. Of this
30.8amount, $100,000 is for a grant to the St.
30.9Louis County Historical Society for a project,
30.10in collaboration with the Erie Mining history
30.11book project team, to research, document,
30.12publish, preserve, and exhibit the history of
30.13taconite mining in Minnesota.

30.14 30.15

Sec. 5. PUBLIC EMPLOYMENT RELATIONS BOARD

$

-0-

$

525,000

30.16$525,000 in fiscal year 2017 is for the
30.17Public Employment Relations Board under
30.18Minnesota Statutes, section 179A.041.
30.19The base appropriation for this purpose is
30.20$525,000 in fiscal year 2018 and $525,000 in
30.21fiscal year 2019.

30.22

Sec. 6. HOUSING FINANCE AGENCY

$

-0-

$

2,500,000

30.23$1,000,000 in fiscal year 2017 is to establish
30.24a grant program within the housing trust fund
30.25for the exploited families rental assistance
30.26program. This is a onetime appropriation and
30.27is available until June 30, 2019.
30.28$500,000 in fiscal year 2017 is for a
30.29competitive grant program to fund a housing
30.30project or projects in a community or
30.31communities: (1) that have low housing
30.32vacancy rates; and (2) that have an education
30.33and training center for jobs in agriculture,
30.34farm business management, health care
31.1fields, or other fields with anticipated
31.2significant job growth potential. A grant or
31.3grants must be no more than 50 percent of
31.4the total development costs for the project.
31.5Funds for a grant or grants made in this
31.6section must be to a housing project or
31.7projects that have financial and in-kind
31.8contributions from nonagency sources
31.9that when combined with a grant under
31.10this section are sufficient to complete the
31.11housing project. Funds must be used to
31.12create new housing units either through
31.13new construction or through acquisition and
31.14rehabilitation of a building or buildings not
31.15currently used for housing. If funds remain
31.16uncommitted at the end of fiscal year 2017,
31.17the agency may transfer the uncommitted
31.18funds to the housing development fund and
31.19use the funds for the economic development
31.20and housing challenge program under
31.21Minnesota Statutes, section 462A.33. This is
31.22a onetime appropriation.
31.23$1,000,000 in fiscal year 2017 is for the
31.24Workforce and Affordable Homeownership
31.25Development Program under Minnesota
31.26Statutes, section 462A.38. This is a onetime
31.27appropriation and is available until June 30,
31.282019.

31.29

Sec. 7. COMMERCE

$

-0-

$

1,006,000

31.30$500,000 in fiscal year 2017 is for increased
31.31civil insurance fraud investigation. This is a
31.32onetime appropriation.
31.33$290,000 in fiscal year 2017 is to fund two
31.34positions to return abandoned property to
31.35owners, newspaper publication, and related
32.1technology upgrades under Minnesota
32.2Statutes, section 345.42. This is a onetime
32.3appropriation.
32.4$66,000 in fiscal year 2017 is for the
32.5commissioner of commerce to seek any
32.6necessary federal approvals to modify the
32.7boundaries of and reduce the number of the
32.8state's designated geographic rating areas for
32.9purposes of setting health plan premiums in
32.10the individual health insurance market. This
32.11is a onetime appropriation.
32.12$150,000 in fiscal year 2017 is for the
32.13commissioner of commerce to:
32.14(1) study and create models of potential
32.15Minnesota-tailored rate-stability mechanisms
32.16for the individual marketplace, such as a
32.17reinsurance program;
32.18(2) study and create models merging the
32.19state's individual and small group markets;
32.20and
32.21(3) study options for making the state's rate
32.22review process more transparent utilizing
32.23public information and hearings.
32.24The commissioner may seek other private
32.25funds or grants to supplement the costs of
32.26the studies. The commissioner shall issue
32.27a report on the preliminary findings of the
32.28studies to the chairs and ranking minority
32.29members of the committees in the house
32.30of representatives and the senate with
32.31jurisdiction over health and marketplace
32.32premiums by January 15, 2017.

32.33    Sec. 8. Minnesota Statutes 2014, section 13.43, subdivision 6, is amended to read:
33.1    Subd. 6. Access by labor organizations, the Bureau of Mediation Services,
33.2and the Public Employment Relations Board. Personnel data may be disseminated to
33.3labor organizations and the Public Employment Relations Board to the extent that the
33.4responsible authority determines that the dissemination is necessary to conduct elections,
33.5notify employees of fair share fee assessments, and implement the provisions of chapters
33.6179 and 179A. Personnel data shall be disseminated to labor organizations, the Public
33.7Employment Relations Board, and to the Bureau of Mediation Services to the extent the
33.8dissemination is ordered or authorized by the commissioner of the Bureau of Mediation
33.9Services, or the Public Employment Relations Board or its designee.
33.10EFFECTIVE DATE.This section is effective July 1, 2016.

33.11    Sec. 9. [13.7909] PUBLIC EMPLOYMENT RELATIONS BOARD DATA.
33.12    Subdivision 1. Definition. For purposes of this section, "board" means the Public
33.13Employment Relations Board.
33.14    Subd. 2. Not public data. (a) Except as provided in this subdivision, all data
33.15maintained by the board about a charge or complaint of unfair labor practices and
33.16appeals of determinations of the commissioner under section 179A.12, subdivision 11,
33.17are classified as protected nonpublic data or confidential data, and become public when
33.18admitted into evidence at a hearing conducted pursuant to section 179A.13. The data may
33.19be subject to a protective order as determined by the board or a hearing officer.
33.20(b) Notwithstanding sections 13.43 and 181.932, the following data are public:
33.21(1) the filing date of unfair labor practice charges;
33.22(2) the status of unfair labor practice charges as an original or amended charge;
33.23(3) the names and job classifications of charging parties and charged parties;
33.24(4) the provisions of law alleged to have been violated in unfair labor practice charges;
33.25(5) the complaint issued by the board and all data in the complaint;
33.26(6) the full and complete record of an evidentiary hearing before a hearing officer,
33.27including the hearing transcript, exhibits admitted into evidence, and posthearing briefs,
33.28unless subject to a protective order;
33.29(7) recommended decisions and orders of hearing officers pursuant to section
33.30179A.13, subdivision 1, paragraph (i);
33.31(8) exceptions to the hearing officer's recommended decision and order filed with the
33.32board pursuant to section 179A.13, subdivision 1, paragraph (k);
33.33(9) briefs filed with the board; and
33.34(10) decisions and orders issued by the board.
34.1(c) Notwithstanding paragraph (a), individuals have access to their own statements
34.2provided to the board under paragraph (a).
34.3(d) The board may make any data classified as protected nonpublic or confidential
34.4pursuant to this subdivision accessible to any person or party if the access will aid the
34.5implementation of chapters 179 and 179A or ensure due process protection of the parties.
34.6EFFECTIVE DATE.This section is effective July 1, 2016.

34.7    Sec. 10. Minnesota Statutes 2014, section 116J.423, is amended to read:
34.8116J.423 MINNESOTA MINERALS 21ST CENTURY FUND.
34.9    Subdivision 1. Created. The Minnesota minerals 21st century fund is created
34.10as a separate account in the treasury. Money in the account is appropriated to the
34.11commissioner of employment and economic development for the purposes of this section.
34.12All money earned by the account, loan repayments of principal and interest, and earnings
34.13on investments must be credited to the account. For the purpose of this section, "fund"
34.14means the Minnesota minerals 21st century fund. The commissioner shall operate the
34.15account as a revolving account.
34.16    Subd. 2. Use of fund. The commissioner shall use money in the fund to make loans
34.17or equity investments in mineral, steel, or taconite any other industry processing facilities,
34.18steel production facilities, facilities for the manufacturing of renewable energy products,
34.19or facilities for the manufacturing of biobased or biomass products, manufacturing, or
34.20technology project that would enhance the economic diversification and that are is located
34.21within the taconite relief tax area as defined under section 273.134. The commissioner
34.22must, prior to making any loans or equity investments and after consultation with industry
34.23and public officials, develop a strategy for making loans and equity investments that
34.24assists the Minnesota mineral industry in becoming globally competitive taconite relief
34.25area in retaining and enhancing its economic competitiveness. Money in the fund may
34.26also be used to pay for the costs of carrying out the commissioner's due diligence duties
34.27under this section.
34.28    Subd. 2a. Grants authorized. Notwithstanding subdivision 2, the commissioner
34.29may use money in the fund to make grants to a municipality or county, or to a county
34.30regional rail authority as appropriate, for public infrastructure needed to support an
34.31eligible project under this section. Grant money may be used by the municipality, county,
34.32or regional rail authority to acquire right-of-way and mitigate loss of wetlands and runoff
34.33of storm water; to predesign, design, construct, and equip roads and rail lines; and, in
34.34cooperation with municipal utilities, to predesign, design, construct, and equip natural
35.1gas pipelines, electric infrastructure, water supply systems, and wastewater collection and
35.2treatment systems. Grants made under this subdivision are available until expended.
35.3    Subd. 3. Requirements prior to committing funds. The commissioner, prior to
35.4making a commitment for a loan or equity investment must, at a minimum, conduct due
35.5diligence research regarding the proposed loan or equity investment, including contracting
35.6with professionals as needed to assist in the due diligence.
35.7    Subd. 4. Requirements for fund disbursements. The commissioner may make
35.8conditional commitments for loans or equity investments but disbursements of funds
35.9pursuant to a commitment may not be made until commitments for the remainder of a
35.10project's funding are made that are satisfactory to the commissioner and disbursements
35.11made from the other commitments sufficient to protect the interests of the state in its
35.12loan or investment.
35.13    Subd. 5. Company contribution. The commissioner may provide loans or equity
35.14investments that match, in a proportion determined by the commissioner, an investment
35.15made by the owner of a facility.

35.16    Sec. 11. Minnesota Statutes 2014, section 116J.424, is amended to read:
35.17116J.424 IRON RANGE RESOURCES AND REHABILITATION BOARD
35.18CONTRIBUTION.
35.19The commissioner of the Iron Range Resources and Rehabilitation Board with
35.20approval by the board, shall may provide an equal match for any loan or equity investment
35.21made for a facility project located in the tax relief area defined in section 273.134,
35.22paragraph (b) , by the Minnesota minerals 21st century fund created by section 116J.423.
35.23The match may be in the form of a loan or equity investment, notwithstanding whether
35.24the fund makes a loan or equity investment. The state shall not acquire an equity interest
35.25because of an equity investment or loan by the board and the board at its sole discretion
35.26shall decide what interest it acquires in a project. The commissioner of employment and
35.27economic development may require a commitment from the board to make the match
35.28prior to disbursing money from the fund.

35.29    Sec. 12. Minnesota Statutes 2014, section 116J.431, subdivision 1, is amended to read:
35.30    Subdivision 1. Grant program established; purpose. (a) The commissioner shall
35.31make grants to counties or cities to provide up to 50 percent of the capital costs of public
35.32infrastructure necessary for an eligible economic development project. The county or city
35.33receiving a grant must provide for the remainder of the costs of the project, either in cash
36.1or in kind. In-kind contributions may include the value of site preparation other than the
36.2public infrastructure needed for the project.
36.3(b) The purpose of the grants made under this section is to keep or enhance jobs in
36.4the area, increase the tax base, or to expand or create new economic development.
36.5(c) In awarding grants under this section, the commissioner must adhere to the
36.6criteria under subdivision 4.
36.7(d) If the commissioner awards a grant for less than 50 percent of the project, the
36.8commissioner shall provide the applicant and the chairs and ranking minority members
36.9of the senate and house of representatives committees with jurisdiction over economic
36.10development finance a written explanation of the reason less than 50 percent of the capital
36.11costs were awarded in the grant.

36.12    Sec. 13. Minnesota Statutes 2014, section 116J.431, subdivision 2, is amended to read:
36.13    Subd. 2. Eligible projects. An economic development project for which a county or
36.14city may be eligible to receive a grant under this section includes:
36.15(1) manufacturing;
36.16(2) technology;
36.17(3) warehousing and distribution;
36.18(4) research and development;
36.19(5) agricultural processing, defined as transforming, packaging, sorting, or grading
36.20livestock or livestock products into goods that are used for intermediate or final
36.21consumption, including goods for nonfood use; or
36.22(6) industrial park development that would be used by any other business listed in
36.23this subdivision even if no business has committed to locate in the industrial park at the
36.24time the grant application is made.
36.25EFFECTIVE DATE.This section is effective the day following final enactment.

36.26    Sec. 14. Minnesota Statutes 2014, section 116J.431, subdivision 4, is amended to read:
36.27    Subd. 4. Application. (a) The commissioner must develop forms and procedures
36.28for soliciting and reviewing applications for grants under this section. At a minimum, a
36.29county or city must include in its application a resolution of the county or city council
36.30certifying that the required local match is available. The commissioner must evaluate
36.31complete applications for eligible projects using the following criteria:
36.32(1) the project is an eligible project as defined under subdivision 2;
37.1(2) the project will is expected to result in or will attract substantial public and
37.2private capital investment and provide substantial economic benefit to the county or city in
37.3which the project would be located;
37.4(3) the project is not relocating substantially the same operation from another
37.5location in the state, unless the commissioner determines the project cannot be reasonably
37.6accommodated within the county or city in which the business is currently located, or the
37.7business would otherwise relocate to another state; and
37.8(4) the project is expected to or will create or maintain retain full-time jobs.
37.9(b) The determination of whether to make a grant for a site is within the discretion of
37.10the commissioner, subject to this section. The commissioner's decisions and application of
37.11the priorities criteria are not subject to judicial review, except for abuse of discretion.
37.12EFFECTIVE DATE.This section is effective the day following final enactment.

37.13    Sec. 15. Minnesota Statutes 2014, section 116J.431, subdivision 6, is amended to read:
37.14    Subd. 6. Maximum grant amount. A county or city may receive no more than
37.15$1,000,000 $2,000,000 in two years for one or more projects.
37.16EFFECTIVE DATE.This section is effective the day following final enactment.

37.17    Sec. 16. Minnesota Statutes 2014, section 116J.68, is amended to read:
37.18116J.68 BUREAU OF SMALL BUSINESS.
37.19    Subdivision 1. Generally. The Bureau of Small Business within the business
37.20assistance center shall serve as a clearinghouse, technical assistance center, and referral
37.21service for information and other assistance needed by small businesses including small
37.22targeted group businesses and small businesses located in an economically disadvantaged
37.23area.
37.24    Subd. 2. Duties. The bureau shall:
37.25(1) provide information and assistance with respect to all aspects of business
37.26planning, business finance, and business management related to the start-up, operation, or
37.27expansion of a small business in Minnesota;
37.28(2) refer persons interested in the start-up, operation, or expansion of a small
37.29business in Minnesota to assistance programs sponsored by federal agencies, state
37.30agencies, educational institutions, chambers of commerce, civic organizations, community
37.31development groups, private industry associations, and other organizations;
38.1(3) plan, develop, and implement a master file of information on small business
38.2assistance programs of federal, state, and local governments, and other public and private
38.3organizations so as to provide comprehensive, timely information to the bureau's clients;
38.4(4) employ staff with adequate and appropriate skills and education and training for
38.5the delivery of information and assistance;
38.6(5) seek out and utilize, to the extent practicable, contributed expertise and services
38.7of federal, state, and local governments, educational institutions, and other public and
38.8private organizations;
38.9(6) maintain a close and continued relationship with the director of the procurement
38.10program within the Department of Administration so as to facilitate the department's
38.11duties and responsibilities under sections 16C.16 to 16C.19 relating to the small targeted
38.12group business and economically disadvantaged business program of the state;
38.13(7) develop an information system which will enable the commissioner and other
38.14state agencies to efficiently store, retrieve, analyze, and exchange data regarding small
38.15business development and growth in the state. All executive branch agencies of state
38.16government and the secretary of state shall to the extent practicable, assist the bureau in
38.17the development and implementation of the information system;
38.18(8) establish and maintain a toll-free telephone number, e-mail account, and other
38.19electronic contact mediums determined by the commissioner so that all small business
38.20persons anywhere in the state can call may contact the bureau office for assistance.
38.21An outreach program shall be established to make the existence of the bureau and the
38.22assistance and services the bureau may provide to small businesses well known to its
38.23potential clientele throughout the state. If the small business person requires a referral to
38.24another provider the bureau may use the business assistance referral system established by
38.25the Minnesota Project Outreach Corporation;
38.26(9) conduct research and provide data as required by the state legislature;
38.27(10) develop and publish material on all aspects of the start-up, operation, or
38.28expansion of a small business in Minnesota;
38.29(11) collect and disseminate information on state procurement opportunities,
38.30including information on the procurement process;
38.31(12) develop a public awareness program through the use of regarding state
38.32assistance programs for small businesses, including those programs specifically for
38.33socially disadvantaged small business persons. The commissioner may utilize print and
38.34electronic newsletters, personal contacts, and advertising devices as defined in section
38.35173.02, subdivision 16, social media, other electronic and print news media advertising
38.36about state assistance programs for small businesses, including those programs specifically
39.1for socially disadvantaged small business persons, and any other means determined by
39.2the commissioner;
39.3(13) enter into agreements with the federal government and other public and private
39.4entities to serve as the statewide coordinator or host agency for the federal small business
39.5development center program under United States Code, title 15, section 648; and
39.6(14) assist providers in the evaluation of their programs and the assessment of
39.7their service area needs. The bureau may establish model evaluation techniques and
39.8performance standards for providers to use.

39.9    Sec. 17. Minnesota Statutes 2014, section 116M.14, subdivision 2, is amended to read:
39.10    Subd. 2. Board. "Board" means the Urban Minnesota Initiative Board.
39.11EFFECTIVE DATE.This section is effective July 1, 2016.

39.12    Sec. 18. Minnesota Statutes 2014, section 116M.14, is amended by adding a
39.13subdivision to read:
39.14    Subd. 3a. Department. "Department" means the Department of Employment and
39.15Economic Development.
39.16EFFECTIVE DATE.This section is effective July 1, 2016.

39.17    Sec. 19. Minnesota Statutes 2014, section 116M.14, subdivision 4, is amended to read:
39.18    Subd. 4. Low-income area. "Low-income area" means:
39.19(1) Minneapolis, St. Paul;
39.20(2) those cities in the metropolitan area as defined in section 473.121, subdivision
39.212 , that have an average income that is below 80 percent of the median income for a
39.22four-person family as of the latest report by the United States Census Bureau; and
39.23(3) (2) those cities in the metropolitan area, which contain two or more contiguous
39.24census tracts in which the average family income is less than 80 percent of the median
39.25family income for the Twin Cities metropolitan area as of the latest report by the United
39.26States Census Bureau.
39.27EFFECTIVE DATE.This section is effective July 1, 2016.

39.28    Sec. 20. Minnesota Statutes 2014, section 116M.14, is amended by adding a
39.29subdivision to read:
39.30    Subd. 4a. Low-income person. "Low-income person" means a person who has an
39.31annual income, adjusted for family size, of not more than 80 percent of the area median
40.1family income for the Twin Cities metropolitan area as of the latest report by the United
40.2States Census Bureau.
40.3EFFECTIVE DATE.This section is effective July 1, 2016.

40.4    Sec. 21. Minnesota Statutes 2014, section 116M.14, is amended by adding a
40.5subdivision to read:
40.6    Subd. 4b. Metropolitan area. "Metropolitan area" has the meaning given in section
40.7473.121, subdivision 2.
40.8EFFECTIVE DATE.This section is effective July 1, 2016.

40.9    Sec. 22. Minnesota Statutes 2014, section 116M.14, is amended by adding a
40.10subdivision to read:
40.11    Subd. 6. Minority person. "Minority person" means a person belonging to a racial
40.12or ethnic minority as defined in Code of Federal Regulations, title 49, section 23.5.
40.13EFFECTIVE DATE.This section is effective July 1, 2016.

40.14    Sec. 23. Minnesota Statutes 2014, section 116M.14, is amended by adding a
40.15subdivision to read:
40.16    Subd. 7. Program. "Program" means the Minnesota Initiative program created
40.17by this chapter.
40.18EFFECTIVE DATE.This section is effective July 1, 2016.

40.19    Sec. 24. Minnesota Statutes 2014, section 116M.15, subdivision 1, is amended to read:
40.20    Subdivision 1. Creation; membership Membership. The Urban Minnesota
40.21Initiative Board is created and consists of the commissioner of employment and economic
40.22development, the chair of the Metropolitan Council, and eight 12 members from the general
40.23public appointed by the governor. Six Nine of the public members must be representatives
40.24from minority business enterprises. No more than four six of the public members may be of
40.25one gender. Appointments must ensure balanced geographic representation. At least half
40.26of the public members must have experience working to address racial income disparities.
40.27All public members must be experienced in business or economic development.
40.28EFFECTIVE DATE.This section is effective July 1, 2016.

40.29    Sec. 25. Minnesota Statutes 2014, section 116M.17, subdivision 2, is amended to read:
41.1    Subd. 2. Technical assistance. The board through the department, shall provide
41.2technical assistance and development information services to state agencies, regional
41.3agencies, special districts, local governments, and the public, with special emphasis on
41.4minority communities informational outreach about the program to lenders, nonprofit
41.5corporations, and low-income and minority communities throughout the state that support
41.6the development of business enterprises and entrepreneurs.
41.7EFFECTIVE DATE.This section is effective July 1, 2016.

41.8    Sec. 26. Minnesota Statutes 2014, section 116M.17, subdivision 4, is amended to read:
41.9    Subd. 4. Reports. The board shall submit an annual report to the legislature of an
41.10accounting of loans made under section 116M.18, including information on loans to
41.11minority business enterprises made, the number of jobs created by the program, the impact
41.12on low-income areas, and recommendations concerning minority business development
41.13and jobs for persons in low-income areas.
41.14EFFECTIVE DATE.This section is effective July 1, 2016.

41.15    Sec. 27. Minnesota Statutes 2014, section 116M.18, is amended to read:
41.16116M.18 URBAN CHALLENGE GRANTS MINNESOTA INITIATIVE
41.17PROGRAM.
41.18    Subdivision 1. Establishment. The Minnesota Initiative program is established to
41.19award grants to nonprofit corporations to fund loans to businesses owned by minority or
41.20low-income persons or women or veterans.
41.21    Subd. 1a. Statewide loans. To the extent there is sufficient eligible demand,
41.22loans shall be made so that an approximately equal dollar amount of loans are made to
41.23businesses in the metropolitan area as in the nonmetropolitan area. If funds remain after
41.24the ninth month of the fiscal year, those funds shall revert to the general loan pool and may
41.25be lent in any part of the state.
41.26    Subdivision 1 Subd. 1b. Eligibility rules Grants. The board shall make urban
41.27challenge grants for use in low-income areas to nonprofit corporations to fund loans to
41.28businesses owned by minority or low-income persons or women or veterans to encourage
41.29private investment, to provide jobs for minority and low-income persons and others in
41.30low-income areas, to create and strengthen minority business enterprises, and to promote
41.31economic development in a low-income area. The board shall adopt rules to establish
41.32criteria for determining loan eligibility.
42.1    Subd. 2. Challenge Grant eligibility; nonprofit corporation. (a) The board
42.2may enter into agreements with nonprofit corporations to fund and guarantee loans the
42.3nonprofit corporation makes in low-income areas under subdivision 4. A corporation
42.4must demonstrate that to businesses owned by minority or low-income persons or
42.5women or veterans. The board shall evaluate applications from nonprofit corporations.
42.6In evaluating applications, the board must consider, among other things, whether the
42.7nonprofit corporation:
42.8(1) its has a board of directors that includes citizens experienced in business
42.9and community development, minority business enterprises, addressing racial income
42.10disparities, and creating jobs in low-income areas for low-income and minority persons;
42.11(2) it has the technical skills to analyze projects;
42.12(3) it is familiar with other available public and private funding sources and
42.13economic development programs;
42.14(4) it can initiate and implement economic development projects;
42.15(5) it can establish and administer a revolving loan account or has operated a
42.16revolving loan account; and
42.17(6) it can work with job referral networks which assist minority and other persons in
42.18low-income areas low-income persons; and
42.19(7) has established relationships with minority communities.
42.20(b) The department shall review existing agreements with nonprofit corporations
42.21every five years and may renew or terminate the agreement based on the review. In making
42.22its review, the department shall consider, among other criteria, the criteria in paragraph (a).
42.23    Subd. 3. Revolving loan fund. (a) The board shall establish a revolving loan fund to
42.24make grants to nonprofit corporations for the purpose of making loans and loan guarantees
42.25to new and expanding businesses in a low-income area to promote owned by minority or
42.26low-income persons or women or veterans and to support minority business enterprises
42.27and job creation for minority and other persons in low-income areas low-income persons.
42.28(b) Nonprofit corporations that receive grants from the department under the
42.29program must establish a commissioner-certified revolving loan fund for the purpose
42.30of making eligible loans.
42.31(c) Eligible business enterprises include, but are not limited to, technologically
42.32innovative industries, value-added manufacturing, and information industries. Loan
42.33applications given preliminary approval by the nonprofit corporation must be forwarded to
42.34the board for approval. The commissioner must give final approval for each loan or loan
42.35guarantee made by the nonprofit corporation. The amount of the state funds contributed to
42.36any loan or loan guarantee may not exceed 50 percent of each loan.
43.1    Subd. 4. Business loan criteria. (a) The criteria in this subdivision apply to loans
43.2made or guaranteed by nonprofit corporations under the urban challenge grant program.
43.3(b) Loans or guarantees must be made to businesses that are not likely to undertake
43.4a project for which loans are sought without assistance from the urban challenge grant
43.5program.
43.6(c) A loan or guarantee must be used for a project designed to benefit persons in
43.7low-income areas through the creation of job or business opportunities for them to support
43.8a business owned by a minority or a low-income person or woman or veteran. Priority
43.9must be given for loans to the lowest income areas.
43.10(d) The minimum state contribution to a loan or guarantee is $5,000 and the
43.11maximum is $150,000.
43.12(e) The state contribution must be matched by at least an equal amount of new
43.13private investment.
43.14(f) A loan may not be used for a retail development project.
43.15(g) The business must agree to work with job referral networks that focus on
43.16minority and low-income applicants from low-income areas.
43.17    Subd. 4a. Microenterprise loan. Urban challenge Program grants may be
43.18used to make microenterprise loans to small, beginning businesses, including a sole
43.19proprietorship. Microenterprise loans are subject to this section except that:
43.20(1) they may also be made to qualified retail businesses;
43.21(2) they may be made for a minimum of $1,000 $5,000 and a maximum of $25,000
43.22$35,000; and
43.23(3) in a low-income area, they may be made for a minimum of $5,000 and a
43.24maximum of $50,000; and
43.25(3) (4) they do not require a match.
43.26    Subd. 5. Revolving fund administration; rules. (a) The board shall establish a
43.27minimum interest rate for loans or guarantees to ensure that necessary loan administration
43.28costs are covered.
43.29(b) Loan repayment amounts equal to one-half of the principal and interest must be
43.30deposited in a revolving fund created by the board for challenge grants. The remaining
43.31amount of the loan repayment may be paid to the department for deposit in the revolving
43.32loan fund. Loan interest payments must be deposited in a revolving loan fund created
43.33by the nonprofit corporation originating the loan being repaid for further distribution,
43.34consistent with the loan criteria specified in subdivision 4 of this section.
43.35(c) Administrative expenses of the board and nonprofit corporations with whom
43.36the board enters into agreements under subdivision 2, including expenses incurred by
44.1a nonprofit corporation in providing financial, technical, managerial, and marketing
44.2assistance to a business enterprise receiving a loan under subdivision 4, may be paid out of
44.3the interest earned on loans and out of interest earned on money invested by the state Board
44.4of Investment under section 116M.16, subdivision 2, as may be provided by the board.
44.5    Subd. 6. Rules. The board shall adopt rules to implement this section.
44.6    Subd. 6a. Nonprofit corporation loans. The board may make loans to a nonprofit
44.7corporation with which it has entered into an agreement under subdivision 1 2. These
44.8loans must be used to support a new or expanding business. This support may include
44.9such forms of financing as the sale of goods to the business on installment or deferred
44.10payments, lease purchase agreements, or royalty investments in the business. The interest
44.11rate charged by a nonprofit corporation for a loan under this subdivision must not exceed
44.12the Wall Street Journal prime rate plus four percent. For a loan under this subdivision, the
44.13nonprofit corporation may charge a loan origination fee equal to or less than one percent
44.14of the loan value. The nonprofit corporation may retain the amount of the origination fee.
44.15The nonprofit corporation must provide at least an equal match to the loan received by the
44.16board. The maximum loan available to the nonprofit corporation under this subdivision is
44.17$50,000. Loans made to the nonprofit corporation under this subdivision may be made
44.18without interest. Repayments made by the nonprofit corporation must be deposited in the
44.19revolving fund created for urban initiative program grants.
44.20    Subd. 7. Cooperation. A nonprofit corporation that receives an urban challenge a
44.21program grant shall cooperate with other organizations, including but not limited to,
44.22community development corporations, community action agencies, and the Minnesota
44.23small business development centers.
44.24    Subd. 8. Reporting requirements. A nonprofit corporation that receives a
44.25challenge program grant shall:
44.26(1) submit an annual report to the board by September March 30 of each year that
44.27includes a description of projects businesses supported by the urban challenge grant
44.28program, an account of loans made during the calendar year, the program's impact on
44.29minority business enterprises and job creation for minority persons and low-income
44.30persons in low-income areas, the source and amount of money collected and distributed by
44.31the urban challenge grant program, the program's assets and liabilities, and an explanation
44.32of administrative expenses; and
44.33(2) provide for an independent annual audit to be performed in accordance with
44.34generally accepted accounting practices and auditing standards and submit a copy of each
44.35annual audit report to the board.
45.1    Subd. 9. Capacity building grants. The department may make grants to nonprofit
45.2corporations for the purpose of building their capacity to meet the eligibility criteria for
45.3the grant program under subdivision 2, or in applying for the Department of Employment
45.4and Economic Development's business development competitive grant program. Funding
45.5priority must be given to those applicants that can demonstrate that they have established
45.6relationships with minority communities and have provided small business-related
45.7services primarily to low-income and minority business enterprises.
45.8EFFECTIVE DATE.This section is effective July 1, 2016.

45.9    Sec. 28. Minnesota Statutes 2014, section 179A.041, is amended by adding a
45.10subdivision to read:
45.11    Subd. 10. Open meetings. Chapter 13D does not apply to meetings of the board
45.12when it is deliberating on the merits of unfair labor practice charges under sections
45.13179.11, 179.12, and 179A.13; reviewing a recommended decision and order of a hearing
45.14officer under section 179A.13; reviewing decisions of the commissioner of the Bureau of
45.15Mediation Services relating to unfair labor practices under section 179A.12, subdivision
45.1611; or exercising its hiring authority under section 179A.041.
45.17EFFECTIVE DATE.This section is effective the day following final enactment.

45.18    Sec. 29. Minnesota Statutes 2014, section 179A.041, is amended by adding a
45.19subdivision to read:
45.20    Subd. 11. Report. The board shall prepare and submit a report to the governor
45.21and the chairs and ranking minority members of the committees with jurisdiction over
45.22the board by November 15, 2017. The report shall summarize the nature, number, and
45.23resolution of charges filed with the board. The report shall cover the period of July
45.241, 2016, through June 30, 2017.
45.25EFFECTIVE DATE.This section is effective July 1, 2016.

45.26    Sec. 30. Minnesota Statutes 2015 Supplement, section 326B.988, is amended to read:
45.27326B.988 EXCEPTIONS.
45.28    (a) The provisions of sections 326B.95 to 326B.998 shall not apply to:
45.29    (1) boilers and pressure vessels in buildings occupied solely for residence purposes
45.30with accommodations for not more than five families;
45.31    (2) railroad locomotives operated by railroad companies for transportation purposes;
46.1    (3) air tanks installed on the right-of-way of railroads and used directly in the
46.2operation of trains;
46.3    (4) boilers and pressure vessels under the direct jurisdiction of the United States;
46.4    (5) unfired pressure vessels having an internal or external working pressure not
46.5exceeding 15 psig with no limit on size;
46.6    (6) pressure vessels used for storage of compressed air not exceeding five cubic feet
46.7in volume and equipped with an ASME code stamped safety valve set at a maximum of
46.8100 psig;
46.9    (7) pressure vessels having an inside diameter not exceeding six inches;
46.10    (8) every vessel that contains water under pressure, including those containing air
46.11that serves only as a cushion, whose design pressure does not exceed 300 psig and whose
46.12design temperature does not exceed 210 degrees Fahrenheit;
46.13    (9) boiler or pressure vessels located on farms used solely for agricultural or
46.14horticultural purposes; for purposes of this section, boilers used for mint oil extraction
46.15are considered used for agricultural or horticultural purposes, provided that the owner or
46.16lessee complies with the inspection requirements contained in section 326B.958;
46.17    (10) tanks or cylinders used for storage or transfer of liquefied petroleum gases;
46.18    (11) unfired pressure vessels in petroleum refineries;
46.19    (12) an air tank or pressure vessel which is an integral part of a passenger motor
46.20bus, truck, or trailer;
46.21    (13) hot water heating and other hot liquid boilers not exceeding a heat input of
46.22750,000 BTU per hour;
46.23    (14) hot water supply boilers (water heaters) not exceeding a heat input of 500,000
46.24BTU per hour, a water temperature of 210 degrees Fahrenheit, a nominal water capacity
46.25of 120 gallons, or a pressure of 160 psig;
46.26    (15) a laundry and dry cleaning press not exceeding five cubic feet of steam volume;
46.27    (16) pressure vessels operated full of water or other liquid not materially more
46.28hazardous than water, if the vessel's contents' temperature does not exceed 210 degrees
46.29Fahrenheit or a pressure of 200 psig;
46.30    (17) steam-powered turbines at papermaking facilities which are powered by steam
46.31generated by steam facilities at a remote location;
46.32    (18) manually fired boilers for model locomotive, boat, tractor, stationary engine,
46.33or antique motor vehicles constructed or maintained only as a hobby for exhibition,
46.34educational or historical purposes and not for commercial use, if the boilers have an
46.35inside diameter of 12 inches or less, or a grate area of two square feet or less, and are
47.1equipped with an ASME stamped safety valve of adequate size, a water level indicator,
47.2and a pressure gauge;
47.3(19) any pressure vessel used as an integral part of an electrical circuit breaker;
47.4(20) pressure vessels used for the storage of refrigerant if they are built to ASME
47.5code specifications, registered with the national board, and equipped with an ASME
47.6code-stamped pressure-relieving device set no higher than the maximum allowable
47.7working pressure of the vessel. This does not include pressure vessels used in ammonia
47.8refrigeration systems;
47.9(21) pressure vessels used for the storage of oxygen, nitrogen, helium, carbon dioxide,
47.10argon, nitrous oxide, or other medical gas, provided the vessel is constructed to ASME
47.11or Minnesota Department of Transportation specifications and equipped with an ASME
47.12code-stamped pressure-relieving device. The owner of the vessels shall perform annual
47.13visual inspections and planned maintenance on these vessels to ensure vessel integrity;
47.14(22) pressure vessels used for the storage of compressed air for self-contained
47.15breathing apparatuses;
47.16(23) hot water heating or other hot liquid boilers vented directly to the atmosphere;
47.17and
47.18(24) pressure vessels used for the storage of compressed air not exceeding 1.5 cubic
47.19feet (11.22 gallons) in volume with a maximum allowable working pressure of 600 psi or
47.20less.
47.21    (b) An engineer's license is not required for hot water supply boilers.
47.22    (c) An engineer's license and annual inspection by the department is not required
47.23for boilers, steam cookers, steam kettles, steam sterilizers or other steam generators not
47.24exceeding 100,000 BTU per hour input, 25 kilowatt, and a pressure of 15 psig.
47.25    (d) Electric boilers not exceeding a maximum working pressure of 50 psig,
47.26maximum of 30 kilowatt input or three horsepower rating shall be inspected as pressure
47.27vessels and shall not require an engineer license to operate.
47.28(e) Sawmills, located in a county with a population of less than 8,000 according to
47.29the last federal census and that utilize steam for the drying of lumber, are not required to
47.30meet the high pressure boiler attendance requirements set forth in Minnesota Rules, part
47.315225.1180, only if all of the following conditions are met:
47.32(1) the owner complies with the inspection requirements under section 326B.958,
47.33and the licensing requirements under section 326B.972; and
47.34(2) the boiler:
47.35(i) is equipped with electronic control systems that are remotely operated but which
47.36require on-site manual reset of system faults;
48.1(ii) is remotely monitored for log water levels, boiler pressure, and steam flow;
48.2(iii) has automatic safety mechanisms built into the remote monitoring systems that
48.3send an alarm upon detection of a fault condition, and an on-site alarm that will sound
48.4upon detection of a fault condition and which may be heard at a distance of 500 feet;
48.5(iv) has a water treatment program that is supervised by a third party water treatment
48.6company; and
48.7(v) is attended on site by a licensed boiler operator at least two times in a 24-hour
48.8period. If the boiler is not attended more than twice in a 24-hour period, the period
48.9between checks must not be less than eight hours.
48.10This paragraph expires August 1, 2016. This paragraph expires the sooner of August
48.111, 2018, or upon the effective date of a rule regulating high pressure boiler attendance
48.12requirements at a sawmill described in this paragraph adopted after the effective date
48.13of this act.
48.14EFFECTIVE DATE.This section is effective the day following final enactment.

48.15    Sec. 31. [462A.38] WORKFORCE AND AFFORDABLE HOMEOWNERSHIP
48.16DEVELOPMENT PROGRAM.
48.17    Subdivision 1. Establishment. A workforce and affordable homeownership
48.18development program is established to award homeownership development grants
48.19to nonprofit organizations, cooperatives created under chapter 308A or 308B, and
48.20community land trusts created for the purposes outlined in section 462A.31, subdivision
48.211, for development of workforce and affordable homeownership projects. The purpose
48.22of the program is to increase the supply of workforce and affordable, owner-occupied
48.23multifamily or single-family housing throughout Minnesota.
48.24    Subd. 2. Use of funds. (a) Grant funds awarded under this program may be used for:
48.25(1) development costs;
48.26(2) rehabilitation;
48.27(3) land development; and
48.28(4) residential housing, including storm shelters and related community facilities.
48.29(b) A project funded through the grant program shall serve households that meet the
48.30income limits as provided in section 462A.33, subdivision 5, unless a project is intended
48.31for the purpose outlined in section 462A.02, subdivision 6.
48.32    Subd. 3. Application. The commissioner shall develop forms and procedures for
48.33soliciting and reviewing applications for grants under this section. The commissioner shall
48.34consult with interested stakeholders when developing the guidelines and procedures for
49.1the program. In making grants, the commissioner shall establish semiannual application
49.2deadlines in which grants will be authorized from all or part of the available appropriations.
49.3    Subd. 4. Awarding grants. Among comparable proposals, preference must be
49.4given to proposals that include contributions from nonstate resources for the greatest
49.5portion of the total development cost.
49.6    Subd. 5. Statewide program. The agency shall attempt to make grants in
49.7approximately equal amounts to applicants outside and within the metropolitan area.
49.8    Subd. 6. Report. Beginning January 15, 2018, the commissioner must annually
49.9submit a report to the chairs and ranking minority members of the senate and house of
49.10representatives committees having jurisdiction over housing and workforce development
49.11specifying the projects that received grants under this section and the specific purposes for
49.12which the grant funds were used.
49.13EFFECTIVE DATE.This section is effective the day following final enactment.

49.14    Sec. 32. Minnesota Statutes 2014, section 473.121, subdivision 2, is amended to read:
49.15    Subd. 2. Metropolitan area or area. "Metropolitan area" or "area" means the area
49.16over which the Metropolitan Council has jurisdiction, including only the counties of
49.17Anoka; Carver; Dakota excluding the city cities of Northfield and Cannon Falls; Hennepin
49.18excluding the cities of Hanover and Rockford; Ramsey; Scott excluding the city of New
49.19Prague; and Washington.

49.20    Sec. 33. Laws 2015, First Special Session chapter 1, article 1, section 4, is amended to
49.21read:

49.22

Sec. 4. EXPLORE MINNESOTA TOURISM

$

14,118,000

$

14,248,000

49.23(a) To develop maximum private sector
49.24involvement in tourism, $500,000 in fiscal
49.25year 2016 and $500,000 in fiscal year 2017
49.26must be matched by Explore Minnesota
49.27Tourism from nonstate sources. Each $1 of
49.28state incentive must be matched with $6 of
49.29private sector funding. Cash match is defined
49.30as revenue to the state or documented cash
49.31expenditures directly expended to support
49.32Explore Minnesota Tourism programs. Up
49.33to one-half of the private sector contribution
50.1may be in-kind or soft match. The incentive
50.2in fiscal year 2016 shall be based on fiscal
50.3year 2015 private sector contributions. The
50.4incentive in fiscal year 2017 shall be based on
50.5fiscal year 2016 private sector contributions.
50.6This incentive is ongoing. Of this amount,
50.7$100,000 is for a grant to the Northern Lights
50.8International Music festival.
50.9(b) Funding for the marketing grants is
50.10available either year of the biennium.
50.11Unexpended grant funds from the first year
50.12are available in the second year.
50.13(c) $30,000 in fiscal year 2016 is for Mille
50.14Lacs Lake tourism promotion. This is a
50.15onetime appropriation.

50.16    Sec. 34. Laws 2015, First Special Session chapter 1, article 1, section 6, is amended to
50.17read:

50.18 50.19

Sec. 6. BUREAU OF MEDIATION SERVICES

$

2,208,000

$

2,234,000 2,497,000

50.20(a) $68,000 each year is for grants to area
50.21labor management committees. Grants may
50.22be awarded for a 12-month period beginning
50.23July 1 each year. Any unencumbered balance
50.24remaining at the end of the first year does not
50.25cancel but is available for the second year.
50.26(b) $125,000 each year in fiscal year 2016
50.27is for purposes of the Public Employment
50.28Relations Board under Minnesota Statutes,
50.29section 179A.041. This is a onetime
50.30appropriation.
50.31(c) $256,000 each year is in fiscal year
50.322016 and $394,000 in fiscal year 2017 are
50.33for the Office of Collaboration and Dispute
50.34Resolution under Minnesota Statutes, section
51.1179.90 . The base appropriation for this
51.2purpose is $394,000 in fiscal year 2018 and
51.3$394,000 in fiscal year 2019. Of this amount,
51.4$160,000 each year is for grants under
51.5Minnesota Statutes, section 179.91, and
51.6$96,000 each year is for intergovernmental
51.7and public policy collaboration and operation
51.8of the office.
51.9(d) $250,000 is to complete the Case
51.10Management System-Database Project Phase
51.11II. This is a onetime appropriation.
51.12EFFECTIVE DATE.This section is effective the day following final enactment.

51.13    Sec. 35. DAY TRAINING AND HABILITATION GRANT PROGRAM.
51.14    Subdivision 1. Establishment. The commissioner of employment and economic
51.15development shall establish a day training and habilitation grant program in fulfillment
51.16of the Olmstead Plan purpose of ensuring that people with disabilities have choices for
51.17competitive, meaningful, and sustained employment in the most integrated setting.
51.18    Subd. 2. Definitions. (a) For the purposes of this section, the following terms
51.19have the meanings given them.
51.20(b) "Day training and habilitation providers" means those organizations whose
51.21names are listed as Department of Human Services providers in the Minnesota Department
51.22of Administration, Materials Management Division, ALP Manual, Appendix J, without
51.23regard to whether they are listed as approved vendors with the Minnesota Department
51.24of Employment and Economic Development, Division of Rehabilitation Services as a
51.25community rehabilitation provider, limited-use vendor, or center for independent living,
51.26and irrespective as to whether they are accredited by CARF International.
51.27(c) "Competitive employment" means full-time or part-time employment, with or
51.28without support, in an integrated setting in the community that pays at least minimum
51.29wage, as defined by the Fair Labor Standards Act, but not less than the customary wage
51.30and level of benefits paid by the employer for the same or similar work performed by
51.31workers without a disability.
51.32(d) "Olmstead Plan" means Minnesota's 2013 Olmstead Plan, dated November 1,
51.332013, and all subsequent modifications approved by the United States District Court.
52.1    Subd. 3. Competitive process. The commissioner shall issue a request for proposals
52.2to day training and habilitation providers seeking proposals to assist the Department
52.3of Employment and Economic Development in achieving its goals as provided in the
52.4Olmstead Plan. Grant funds shall be used to improve individual employment outcomes
52.5by aligning programs, funding, and policies to support people with disabilities to choose,
52.6secure, and maintain competitive employment and self-employment, including, but not
52.7limited to, the following activities:
52.8(1) implementing policies and initiating processes that improve the employment
52.9outcomes of working adults with disabilities;
52.10(2) offering incentives for innovation that increase competitive employment in
52.11the general work force;
52.12(3) expanding the flexibility in current funding and services to increase competitive
52.13employment outcomes;
52.14(4) providing evidence of partnerships with private sector businesses and public
52.15sector employment; and
52.16(5) submitting outcome data, required by the department, according to the
52.17stipulations of the Olmstead Plan.
52.18    Subd. 4. Eligibility. Any person who has a disability as determined by the Social
52.19Security Administration or state medical review team is eligible to receive services
52.20provided with grant funds.
52.21    Subd. 5. Consultation required. The commissioner shall consult with the
52.22governor's Workforce Development Council, the Commission of Deaf, DeafBlind, and
52.23Hard-of-Hearing Minnesotans, the governor's Council on Developmental Disabilities, and
52.24other governor-appointed disability councils in designing, implementing, and evaluating
52.25the competitive grant program.
52.26    Subd. 6. Report. On or before February 1, 2017, and annually thereafter, the
52.27commissioner shall report to the chairs and ranking minority members of the senate and
52.28house of representatives committees having jurisdiction over employment and economic
52.29development policy and finance on the amount of funds awarded and the outcomes
52.30reported by grantees.

52.31    Sec. 36. EXPLOITED FAMILIES RENTAL ASSISTANCE PROGRAM .
52.32    Subdivision 1. Rental assistance program. (a) The commissioner of housing
52.33finance shall establish a grant program within the housing trust fund to serve families
52.34from emerging communities at risk of being homeless and who have been victims of
52.35gender-based violence, including, but not limited to domestic violence, sexual assault,
53.1trafficking, international abusive marriage, or forced marriage. For the purposes of this
53.2section the term "gender-based violence" is defined as violence that is directed against a
53.3woman because she is a woman or that affects women disproportionately; and the term
53.4"emerging communities" is defined as refugee and immigrant communities who are less
53.5established, who are unfamiliar with mainstream government services, or who have
53.6limited English proficiency. The commissioner shall award grants to organizations that
53.7can provide linguistically and culturally appropriate services and that have the capacity to
53.8serve families who have experienced gender-based violence from emerging communities.
53.9(b) The program must:
53.10(1) provide rental assistance to individuals with a minor child at risk of being
53.11homeless and who have been victims of domestic violence, sexual assault, trafficking,
53.12international abusive marriage, or forced marriage;
53.13(2) require the participants to pay at least 30 percent of the participant's income
53.14toward the rent;
53.15(3) allow the families to choose their own housing, including single-family homes,
53.16townhomes, and apartments;
53.17(4) give priority to large families who experience barriers in accessing housing,
53.18including having limited English proficiency, lack of positive rental history, employment
53.19history, and financial history; and
53.20(5) require the program participants to be employed, or actively seeking employment,
53.21or be engaged in activities that will assist them in gaining employment.
53.22    Subd. 2. Program evaluation. All grant recipients must collect and make available
53.23to the commissioner, aggregate data to assist the agency in the evaluation of the program.
53.24The commissioner shall evaluate the program effectiveness and measure the number of
53.25families served from emerging communities, the support services provided for families in
53.26seeking employment and achieving economic-stability, and the employment and housing
53.27status of the participants.

53.28    Sec. 37. "GETTING TO WORK" GRANT PROGRAM.
53.29    Subdivision 1. Creation. The commissioner of employment and economic
53.30development shall make grants to nonprofit organizations to establish and operate
53.31programs under this section that provide, repair, or maintain motor vehicles to assist
53.32eligible individuals to obtain or maintain employment.
53.33    Subd. 2. Qualified grantee. A grantee must:
53.34(1) qualify under section 501(c)(3) of the Internal Revenue Code; and
54.1(2) at the time of application offer, or have the demonstrated capacity to offer, a
54.2motor vehicle program that provides the services required under subdivision 3.
54.3    Subd. 3. Program requirements. (a) A program must offer one or more of the
54.4following services:
54.5(1) provision of new or used motor vehicles by gift, sale, or lease;
54.6(2) motor vehicle repair and maintenance services; or
54.7(3) motor vehicle loans.
54.8(b) In addition to the requirements of paragraph (a), a program must offer one or
54.9more of the following services:
54.10(1) financial literacy education;
54.11(2) education on budgeting for vehicle ownership;
54.12(3) car maintenance and repair instruction;
54.13(4) credit counseling; or
54.14(5) job training related to motor vehicle maintenance and repair.
54.15(c) A program may also offer other transportation-related support services.
54.16    Subd. 4. Application. Applications for a grant must be by a form provided by the
54.17commissioner and on a schedule set by the commissioner. Applications must, in addition
54.18to any other information required by the commissioner, include the following:
54.19(1) a detailed description of all services to be offered;
54.20(2) the area to be served;
54.21(3) the estimated number of program participants to be served by the grant; and
54.22(4) a plan for leveraging resources from partners that may include, but are not
54.23limited to:
54.24(i) automobile dealers;
54.25(ii) automobile parts dealers;
54.26(iii) independent local mechanics and automobile repair facilities;
54.27(iv) banks and credit unions;
54.28(v) employers;
54.29(vi) employment and training agencies;
54.30(vii) insurance companies and agents;
54.31(viii) local workforce centers; and
54.32(ix) educational institutions including vocational institutions and jobs or skills
54.33training programs.
54.34    Subd. 5. Participant eligibility. (a) To be eligible to receive program services,
54.35a person must:
55.1(1) have a household income at or below 200 percent of the federal poverty level;
55.2(2) be at least 18 years of age;
55.3(3) have a valid driver's license;
55.4(4) provide the grantee with proof of motor vehicle insurance; and
55.5(5) demonstrate to the grantee that a motor vehicle is required by the person to
55.6obtain or maintain employment.
55.7(b) This subdivision does not preclude a grantee from imposing additional
55.8requirements, not inconsistent with paragraph (a), for the receipt of program services.
55.9    Subd. 6. Allocation of grants. The commissioner shall allocate grants to up to 15
55.10grantees so that, to the extent feasible, program services are available in every county of
55.11the state.
55.12    Subd. 7. Report to legislature. By February 15, 2018, the commissioner shall
55.13submit a report to the chairs of the house of representatives and senate committees with
55.14jurisdiction over workforce and economic development on program outcomes. At a
55.15minimum, the report must include:
55.16(1) the total number of program participants;
55.17(2) the number of program participants who received each of the following:
55.18(i) provision of a motor vehicle;
55.19(ii) motor vehicle repair services; and
55.20(iii) motor vehicle loan; and
55.21(3) an analysis of the impact of the "Getting to Work" grant program on the
55.22employment rate and wages of program participants.

55.23    Sec. 38. REVISOR'S INSTRUCTION.
55.24In the next editions of Minnesota Statutes and Minnesota Rules, the Revisor of
55.25Statutes shall change the term "Urban Initiative Board" to "Minnesota Initiative Board,"
55.26"board," or similar terms as the context requires.

55.27ARTICLE 3

55.28AGRICULTURE

55.29

Section 1. APPROPRIATIONS.

55.30The sums shown in the columns marked "Appropriations" are added to the
55.31appropriations in Laws 2015, First Special Session chapter 4, or appropriated to the
55.32agencies and for the purposes specified in this article. The appropriations are from the
55.33general fund, or another named fund, and are available for the fiscal year indicated for
56.1each purpose. The figures "2016" and "2017" used in this article mean that the addition
56.2to the appropriations listed under them are available for the fiscal year ending June 30,
56.32016, or June 30, 2017, respectively. "The first year" is fiscal year 2016. "The second
56.4year" is fiscal year 2017. Appropriations for fiscal year 2016 are effective the day
56.5following final enactment.

56.6				APPROPRIATIONS
56.7				Available for the Year
56.8				Ending June 30
56.9					2016		2017

56.10

Sec. 2. DEPARTMENT OF AGRICULTURE

$

-0-

$

3,500,000

56.11$350,000 the second year is for deposit
56.12in the noxious weed and invasive plant
56.13species assistance account established under
56.14Minnesota Statutes, section 18.89, to be
56.15used to implement the noxious weed grant
56.16program under Minnesota Statutes, section
56.1718.90. This is a onetime appropriation.
56.18$1,000,000 the second year is for the tractor
56.19rollover protection pilot program under
56.20Minnesota Statutes, section 17.119. This is a
56.21onetime appropriation.
56.22$300,000 the second year is for the pollinator
56.23investment grant program under Minnesota
56.24Statutes, section 17.1195. This is a onetime
56.25appropriation.
56.26$200,000 the second year is for a grant to the
56.27city of Duluth to design and construct the
56.28Deep Winter Greenhouse. This is a onetime
56.29appropriation.
56.30$500,000 the second year is to administer
56.31the industrial hemp pilot program under
56.32Minnesota Statutes, section 18K.09. This is
56.33a onetime appropriation.
57.1$150,000 the second year is for grants of up
57.2to $750 to farmers who demonstrate financial
57.3hardship due to the three-year transition
57.4period required under federal law for organic
57.5certification. This is a onetime appropriation
57.6and is in addition to funds appropriated to the
57.7commissioner of agriculture and available for
57.8organic certification cost-share grants under
57.9Laws 2015, First Special Session chapter
57.104, article 1, section 2, subdivision 3. The
57.11commissioner may award both a transition
57.12grant and a certification cost-share grant to a
57.13farmer in the same fiscal year.
57.14$1,000,000 the second year is for grants
57.15to the Board of Regents of the University
57.16of Minnesota to fund the Forever Green
57.17Agriculture Initiative and to protect the
57.18state's natural resources while increasing
57.19the efficiency, profitability, and productivity
57.20of Minnesota farmers by incorporating
57.21perennial and winter annual crops into
57.22existing agricultural practices. This is a
57.23onetime appropriation and is available until
57.24June 30, 2019. The appropriation in Laws
57.252015, First Special Session chapter 2, article
57.262, section 3, paragraph (i), is available until
57.27June 30, 2018.

57.28    Sec. 3. Minnesota Statutes 2014, section 17.117, subdivision 4, is amended to read:
57.29    Subd. 4. Definitions. (a) For the purposes of this section, the terms defined in this
57.30subdivision have the meanings given them.
57.31    (b) "Agricultural and environmental revolving accounts" means accounts in the
57.32agricultural fund, controlled by the commissioner, which hold funds available to the
57.33program.
57.34    (c) "Agriculture supply business" means a person, partnership, joint venture,
57.35corporation, limited liability company, association, firm, public service company,
58.1or cooperative that provides materials, equipment, or services to farmers or
58.2agriculture-related enterprises.
58.3    (d) "Allocation" means the funds awarded to an applicant for implementation of best
58.4management practices through a competitive or noncompetitive application process.
58.5    (e) "Applicant" means a local unit of government eligible to participate in this
58.6program that requests an allocation of funds as provided in subdivision 6b.
58.7    (f) "Best management practices" has the meaning given in sections 103F.711,
58.8subdivision 3 , and 103H.151, subdivision 2, or. Best management practices also means
58.9other practices, techniques, and measures that have been demonstrated to the satisfaction
58.10of the commissioner: (1) to prevent or reduce adverse environmental impacts by using
58.11the most effective and practicable means of achieving environmental goals; or (2) to
58.12achieve drinking water quality standards under chapter 103H or under Code of Federal
58.13Regulations, title 40, parts 141 and 143, as amended.
58.14    (g) "Borrower" means a farmer, an agriculture supply business, or a rural landowner
58.15applying for a low-interest loan.
58.16    (h) "Commissioner" means the commissioner of agriculture, including when the
58.17commissioner is acting in the capacity of chair of the Rural Finance Authority, or the
58.18designee of the commissioner.
58.19    (i) "Committed project" means an eligible project scheduled to be implemented at
58.20a future date:
58.21    (1) that has been approved and certified by the local government unit; and
58.22    (2) for which a local lender has obligated itself to offer a loan.
58.23    (j) "Comprehensive water management plan" means a state approved and locally
58.24adopted plan authorized under section 103B.231, 103B.255, 103B.311, 103C.331,
58.25103D.401 , or 103D.405.
58.26    (k) "Cost incurred" means expenses for implementation of a project accrued because
58.27the borrower has agreed to purchase equipment or is obligated to pay for services or
58.28materials already provided as a result of implementing an approved eligible project.
58.29    (l) "Farmer" means a person, partnership, joint venture, corporation, limited liability
58.30company, association, firm, public service company, or cooperative that regularly
58.31participates in physical labor or operations management of farming and files a Schedule F
58.32as part of filing United States Internal Revenue Service Form 1040 or indicates farming as
58.33the primary business activity under Schedule C, K, or S, or any other applicable report to
58.34the United States Internal Revenue Service.
58.35    (m) "Lender agreement" means an agreement entered into between the commissioner
58.36and a local lender which contains terms and conditions of participation in the program.
59.1    (n) "Local government unit" means a county, soil and water conservation district,
59.2or an organization formed for the joint exercise of powers under section 471.59 with
59.3the authority to participate in the program.
59.4    (o) "Local lender" means a local government unit as defined in paragraph (n), a state
59.5or federally chartered bank, a savings association, a state or federal credit union, Agribank
59.6and its affiliated organizations, or a nonprofit economic development organization or other
59.7financial lending institution approved by the commissioner.
59.8    (p) "Local revolving loan account" means the account held by a local government unit
59.9and a local lender into which principal repayments from borrowers are deposited and new
59.10loans are issued in accordance with the requirements of the program and lender agreements.
59.11    (q) "Nonpoint source" has the meaning given in section 103F.711, subdivision 6.
59.12    (r) "Program" means the agriculture best management practices loan program
59.13in this section.
59.14    (s) "Project" means one or more components or activities located within Minnesota
59.15that are required by the local government unit to be implemented for satisfactory
59.16completion of an eligible best management practice.
59.17    (t) "Rural landowner" means the owner of record of Minnesota real estate located
59.18in an area determined by the local government unit to be rural after consideration of
59.19local land use patterns, zoning regulations, jurisdictional boundaries, local community
59.20definitions, historical uses, and other pertinent local factors.
59.21    (u) "Water-quality cooperative" has the meaning given in section 115.58, paragraph
59.22(d), except as expressly limited in this section.

59.23    Sec. 4. Minnesota Statutes 2014, section 17.117, subdivision 11a, is amended to read:
59.24    Subd. 11a. Eligible projects. (a) All projects that remediate or mitigate adverse
59.25environmental impacts are eligible if:
59.26(1) the project is eligible under the an allocation agreement and funding sources
59.27designated by the local government unit to finance the project; and.
59.28(2) (b) A manure management projects remediate project is eligible if the project
59.29remediates or mitigate mitigates impacts from facilities with less than 1,000 animal units
59.30as defined in Minnesota Rules, chapter 7020, and otherwise meets the requirements of
59.31this section.
59.32(c) A drinking water project is eligible if the project:
59.33(1) remediates the adverse environmental impacts or presence of contaminants in
59.34private well water;
59.35(2) implements best management practices to achieve drinking water standards; and
60.1(3) otherwise meets the requirements of this section.

60.2    Sec. 5. [17.119] TRACTOR ROLLOVER PROTECTION PILOT GRANT
60.3PROGRAM.
60.4    Subdivision 1. Grants; eligibility. (a) The commissioner must award cost-share
60.5grants to Minnesota farmers who retrofit eligible tractors and Minnesota schools that
60.6retrofit eligible tractors with eligible rollover protective structures. Grants are limited to
60.770 percent of the farmer's or school's documented cost to purchase, ship, and install an
60.8eligible rollover protective structure. The commissioner must increase the grant award
60.9amount over the 70 percent grant limitation requirement if necessary to limit a farmer's or
60.10school's cost per tractor to no more than $500.
60.11(b) A rollover protective structure is eligible if it meets or exceeds SAE International
60.12standard J2194.
60.13(c) A tractor is eligible if the tractor was built before 1987.
60.14    Subd. 2. Promotion; administration. The commissioner may spend up to 20
60.15percent of total program dollars each fiscal year to promote and administer the program to
60.16Minnesota farmers and schools.
60.17    Subd. 3. Nonstate sources; appropriation. The commissioner must accept
60.18contributions from nonstate sources to supplement state appropriations for this program.
60.19Contributions received under this subdivision are appropriated to the commissioner for
60.20purposes of this section.
60.21    Subd. 4. Expiration. This section expires on June 30, 2019.

60.22    Sec. 6. [17.1195] POLLINATOR INVESTMENT GRANT PROGRAM.
60.23    Subdivision 1. Establishment. The commissioner may award a pollinator
60.24investment grant to a person who implements best management practices to protect wild
60.25and managed insect pollinators in this state equal to ten percent of the first $100,000 of
60.26qualifying expenditures, provided the person makes qualifying expenditures of at least
60.27$25,000. The commissioner may award multiple pollinator investment grants to a person
60.28over the life of the program as long as the cumulative amount does not exceed $30,000.
60.29    Subd. 2. Definition. For the purposes of this section, "qualified expenditures"
60.30means the amount spent for:
60.31(1) in conventional farming systems, planting neonicotinoid-free seeds,
60.32implementing integrated pest management practices, and not using a pesticide class
60.33labeled by the United States Environmental Protection Agency as toxic to bees; or
61.1(2) creating new pollinator habitat, and not using a pesticide class labeled by the
61.2United States Environmental Protection Agency as toxic to bees; by:
61.3(i) seeding native flowering plants as prairie strips within productive cropland to
61.4provide forage for pollinators;
61.5(ii) renovating a pasture system by overseeding a pasture with high-diversity native
61.6forb or native or non-native legume mixtures;
61.7(iii) interseeding legumes, brassicas, buckwheat, or other pollinator forage plants
61.8with corn or soybean, or planting these as cover crops before or after corn or soybean;
61.9(iv) planting or seeding riparian and wetland areas and vegetative buffer strips with
61.10native perennial cover that provides forage for pollinators;
61.11(v) planting a native hedgerow; or
61.12(vi) increasing plant diversity in nonproductive areas by adding native flowering
61.13forbs, trees, or shrubs, or by introducing pollinator-friendly plant species into existing
61.14strands of grasses.
61.15    Subd. 3. Eligibility. (a) To be eligible for a pollinator investment grant, a person
61.16must:
61.17(1) be a resident of Minnesota or an entity specifically defined in section 500.24,
61.18subdivision 2, that is eligible to own farmland and operate a farm in this state under
61.19section 500.24;
61.20(2) be the principal operator of the farm; and
61.21(3) apply to the commissioner on forms prescribed by the commissioner, including a
61.22statement of the qualifying expenditures made during the qualifying period along with any
61.23proof or other documentation the commissioner may require.
61.24(b) The $10,000 maximum grant applies at the entity level for partnerships, S
61.25corporations, C corporations, trusts, and estates as well as at the individual level. In the
61.26case of married individuals, the grant is limited to $10,000 for a married couple.

61.27    Sec. 7. Minnesota Statutes 2014, section 41A.12, subdivision 2, is amended to read:
61.28    Subd. 2. Activities authorized. For the purposes of this program, the commissioner
61.29may issue grants, loans, or other forms of financial assistance. Eligible activities include,
61.30but are not limited to, grants to livestock producers under the livestock investment grant
61.31program under section 17.118, bioenergy awards made by the NextGen Energy Board
61.32under section 41A.105, cost-share grants for the installation of biofuel blender pumps, and
61.33financial assistance to support other rural economic infrastructure activities.

62.1    Sec. 8. Minnesota Statutes 2015 Supplement, section 41A.14, subdivision 1, is
62.2amended to read:
62.3    Subdivision 1. Duties; grants. The agriculture research, education, extension, and
62.4technology transfer grant program is created. The purpose of the grant program is to
62.5provide investments that will most efficiently achieve long-term agricultural productivity
62.6increases through improved infrastructure, vision, and accountability. The scope and
62.7intent of the grants, to the extent possible, shall provide for a long-term base funding
62.8that allows the research grantee to continue the functions of the research, education, and
62.9extension, and technology transfer efforts to a practical conclusion. Priority for grants
62.10shall be given to human infrastructure. The commissioner shall provide grants for:
62.11(1) agricultural research, extension, and technology transfer needs and recipients
62.12including agricultural research and extension at the University of Minnesota, research and
62.13outreach centers, the College of Food, Agricultural and Natural Resource Sciences, the
62.14Minnesota Agricultural Experiment Station, University of Minnesota Extension Service,
62.15the University of Minnesota Veterinary School, the Veterinary Diagnostic Laboratory,
62.16the Stakman-Borlaug Center, and the Minnesota Agriculture Fertilizer Research and
62.17Education Council;
62.18(2) agriculture rapid response for plant and animal diseases and pests; and
62.19(3) agricultural education including but not limited to the Minnesota Agriculture
62.20Education Leadership Council, farm business management, mentoring programs, graduate
62.21debt forgiveness, and high school programs.
62.22EFFECTIVE DATE.This section is effective the day following final enactment.

62.23    Sec. 9. Minnesota Statutes 2015 Supplement, section 41A.14, subdivision 2, is
62.24amended to read:
62.25    Subd. 2. Advisory panel. (a) In awarding grants under this section, the
62.26commissioner and a representative of the College of Food, Agricultural, and Natural
62.27Resource Sciences at the University of Minnesota must consult with an advisory panel
62.28consisting of the following stakeholders:
62.29(1) a representative of the College of Food, Agricultural and Natural Resource
62.30Sciences at the University of Minnesota;
62.31(2) a representative of the Minnesota State Colleges and Universities system;
62.32(3) (2) a representative of the Minnesota Farm Bureau;
62.33(4) (3) a representative of the Minnesota Farmers Union;
62.34(5) (4) a person representing agriculture industry statewide;
63.1(6) (5) a representative of each of the state commodity councils organized under
63.2section 17.54 and the Minnesota Pork Board;
63.3(7) (6) a person representing an association of primary manufacturers of forest
63.4products;
63.5(8) (7) a person representing organic or sustainable agriculture; and
63.6(9) (8) a person representing statewide environment and natural resource
63.7conservation organizations.
63.8(b) Members under paragraph (a), clauses (1) to (3) and (5), shall be chosen by their
63.9respective organizations.
63.10EFFECTIVE DATE.This section is effective the day following final enactment.

63.11    Sec. 10. Minnesota Statutes 2015 Supplement, section 41A.15, is amended by adding a
63.12subdivision to read:
63.13    Subd. 2a. Biobased content. "Biobased content" means a chemical, polymer,
63.14monomer, or plastic that is not sold primarily for use as food, feed, or fuel and that has a
63.15biobased percentage of at least 51 percent as determined by testing representative samples
63.16using American Society for Testing and Materials specification D6866.

63.17    Sec. 11. Minnesota Statutes 2015 Supplement, section 41A.15, is amended by adding a
63.18subdivision to read:
63.19    Subd. 2b. Biobased formulated product. "Biobased formulated product" means
63.20a product that is not sold primarily for use as food, feed, or fuel and that has a biobased
63.21content percentage of at least ten percent as determined by testing representative samples
63.22using American Society for Testing and Materials specification D6866, or that contains
63.23a biobased chemical constituent that displaces a known hazardous or toxic constituent
63.24previously used in the product formulation.

63.25    Sec. 12. Minnesota Statutes 2015 Supplement, section 41A.15, is amended by adding a
63.26subdivision to read:
63.27    Subd. 2c. Biobutanol. "Biobutanol" means fermentation isobutyl alcohol that is
63.28derived from agricultural products, including potatoes, cereal grains, cheese whey, and
63.29sugar beets; forest products; or other renewable resources, including residue and waste
63.30generated from the production, processing, and marketing of agricultural products, forest
63.31products, and other renewable resources.

64.1    Sec. 13. Minnesota Statutes 2015 Supplement, section 41A.15, is amended by adding a
64.2subdivision to read:
64.3    Subd. 2d. Biobutanol facility. "Biobutanol facility" means a facility at which
64.4biobutanol is produced.

64.5    Sec. 14. Minnesota Statutes 2015 Supplement, section 41A.15, is amended by adding a
64.6subdivision to read:
64.7    Subd. 9a. Quarterly. "Quarterly" means any of the following three-month intervals
64.8in a calendar year: January through March, April through June, July through September,
64.9or October through December.

64.10    Sec. 15. Minnesota Statutes 2015 Supplement, section 41A.15, subdivision 10, is
64.11amended to read:
64.12    Subd. 10. Renewable chemical. "Renewable chemical" means a chemical with
64.13biobased content as defined in section 41A.105, subdivision 1a.

64.14    Sec. 16. Minnesota Statutes 2015 Supplement, section 41A.16, subdivision 1, is
64.15amended to read:
64.16    Subdivision 1. Eligibility. (a) A facility eligible for payment under this section must
64.17source at least 80 percent raw materials from Minnesota. If a facility is sited 50 miles or
64.18less from the state border, raw materials may be sourced from within a 100-mile radius.
64.19Raw materials must be from agricultural or forestry sources or from solid waste. The
64.20facility must be located in Minnesota, must begin production at a specific location by June
64.2130, 2025, and must not begin operating above 95,000 23,750 MMbtu of annual quarterly
64.22biofuel production before July 1, 2015. Eligible facilities include existing companies and
64.23facilities that are adding advanced biofuel production capacity, or retrofitting existing
64.24capacity, as well as new companies and facilities. Production of conventional corn ethanol
64.25and conventional biodiesel is not eligible. Eligible advanced biofuel facilities must
64.26produce at least 95,000 23,750 MMbtu a year of biofuel quarterly.
64.27(b) No payments shall be made for advanced biofuel production that occurs after
64.28June 30, 2035, for those eligible biofuel producers under paragraph (a).
64.29(c) An eligible producer of advanced biofuel shall not transfer the producer's
64.30eligibility for payments under this section to an advanced biofuel facility at a different
64.31location.
64.32(d) A producer that ceases production for any reason is ineligible to receive
64.33payments under this section until the producer resumes production.
65.1(e) Renewable chemical production for which payment has been received under
65.2section 41A.17, and biomass thermal production for which payment has been received
65.3under section 41A.18, are not eligible for payment under this section.
65.4(f) Biobutanol is eligible under this section.

65.5    Sec. 17. Minnesota Statutes 2015 Supplement, section 41A.17, subdivision 1, is
65.6amended to read:
65.7    Subdivision 1. Eligibility. (a) A facility eligible for payment under this program
65.8must source at least 80 percent biobased content, as defined in section 41A.105,
65.9subdivision 1a, clause (1), from Minnesota. If a facility is sited 50 miles or less from the
65.10state border, biobased content must be sourced from within a 100-mile radius. Biobased
65.11content must be from agricultural or forestry sources or from solid waste. The facility must
65.12be located in Minnesota, must begin production at a specific location by June 30, 2025, and
65.13must not begin production of 3,000,000 750,000 pounds of chemicals annually quarterly
65.14before January 1, 2015. Eligible facilities include existing companies and facilities that are
65.15adding production capacity, or retrofitting existing capacity, as well as new companies and
65.16facilities. Eligible renewable chemical facilities must produce at least 3,000,000 750,000
65.17pounds per year of renewable chemicals quarterly. Renewable chemicals produced
65.18through processes that are fully commercial before January 1, 2000, are not eligible.
65.19(b) No payments shall be made for renewable chemical production that occurs after
65.20June 30, 2035, for those eligible renewable chemical producers under paragraph (a).
65.21(c) An eligible producer of renewable chemicals shall not transfer the producer's
65.22eligibility for payments under this section to a renewable chemical facility at a different
65.23location.
65.24(d) A producer that ceases production for any reason is ineligible to receive
65.25payments under this section until the producer resumes production.
65.26(e) Advanced biofuel production for which payment has been received under section
65.2741A.16 , and biomass thermal production for which payment has been received under
65.28section 41A.18, are not eligible for payment under this section.

65.29    Sec. 18. Minnesota Statutes 2015 Supplement, section 41A.17, subdivision 2, is
65.30amended to read:
65.31    Subd. 2. Payment amounts; bonus; limits. (a) The commissioner shall make
65.32payments to eligible producers of renewable chemicals located in the state. The amount of
65.33the payment for each producer's annual production is $0.03 per pound of sugar-derived
65.34renewable chemical, $0.03 per pound of cellulosic sugar, and $0.06 per pound of
66.1cellulosic-derived renewable chemical produced at a specific location for ten years after
66.2the start of production.
66.3(b) An eligible facility producing renewable chemicals using agricultural cellulosic
66.4biomass is eligible for a 20 percent bonus payment for each MMbtu pound produced from
66.5agricultural biomass that is derived from perennial crop or cover crop biomass.
66.6(c) Total payments under this section to an eligible renewable chemical producer in
66.7a fiscal year may not exceed the amount necessary for 99,999,999 pounds of renewable
66.8chemical production. Total payments under this section to all eligible renewable chemical
66.9producers in a fiscal year may not exceed the amount necessary for 599,999,999 pounds of
66.10renewable chemical production. The commissioner shall award payments on a first-come,
66.11first-served basis within the limits of available funding.
66.12(d) For purposes of this section, an entity that holds a controlling interest in more
66.13than one renewable chemical production facility is considered a single eligible producer.

66.14    Sec. 19. Minnesota Statutes 2015 Supplement, section 41A.18, subdivision 1, is
66.15amended to read:
66.16    Subdivision 1. Eligibility. (a) A facility eligible for payment under this section must
66.17source at least 80 percent raw materials from Minnesota. If a facility is sited 50 miles or
66.18less from the state border, raw materials should be sourced from within a 100-mile radius.
66.19Raw materials must be from agricultural or forestry sources. The facility must be located
66.20in Minnesota, must have begun production at a specific location by June 30, 2025, and
66.21must not begin before July 1, 2015. Eligible facilities include existing companies and
66.22facilities that are adding production capacity, or retrofitting existing capacity, as well as
66.23new companies and facilities. Eligible biomass thermal production facilities must produce
66.24at least 1,000 250 MMbtu per year of biomass thermal quarterly.
66.25(b) No payments shall be made for biomass thermal production that occurs after June
66.2630, 2035, for those eligible biomass thermal producers under paragraph (a).
66.27(c) An eligible producer of biomass thermal production shall not transfer the
66.28producer's eligibility for payments under this section to a biomass thermal production
66.29facility at a different location.
66.30(d) A producer that ceases production for any reason is ineligible to receive
66.31payments under this section until the producer resumes production.
66.32(e) Biofuel production for which payment has been received under section 41A.16,
66.33and renewable chemical production for which payment has been received under section
66.3441A.17 , are not eligible for payment under this section.

67.1    Sec. 20. [41A.20] SIDING PRODUCTION INCENTIVE.
67.2    Subdivision 1. Definitions. (a) For the purposes of this section, the terms defined in
67.3this subdivision have the meanings given them.
67.4(b) "Commissioner" means the commissioner of agriculture.
67.5(c) "Forest resources" means raw wood logs and material primarily made up of
67.6cellulose, hemicellulose, or lignin, or a combination of those ingredients.
67.7    Subd. 2. Eligibility. (a) A facility eligible for payment under this section must
67.8source at least 80 percent raw materials from Minnesota. If a facility is sited 50 miles
67.9or less from the state border, raw materials may be sourced from within a 100-mile
67.10radius. Raw materials must be from forest resources. The facility must be located in
67.11Minnesota, must begin production at a specific location by June 30, 2025, and must not
67.12begin operating before July 1, 2017. Eligible facilities include existing companies and
67.13facilities that are adding siding production capacity, or retrofitting existing capacity, as
67.14well as new companies and facilities. Eligible siding production facilities must produce at
67.15least 200,000,000 siding square feet on a 3/8 inch nominal basis of siding each year.
67.16(b) No payments shall be made for siding production that occurs after June 30, 2035,
67.17for those eligible producers under paragraph (a).
67.18(c) An eligible producer of siding shall not transfer the producer's eligibility for
67.19payments under this section to a facility at a different location.
67.20(d) A producer that ceases production for any reason is ineligible to receive
67.21payments under this section until the producer resumes production.
67.22    Subd. 3. Payment amounts; limits. (a) The commissioner shall make payments
67.23to eligible producers of siding. The amount of the payment for each eligible producer's
67.24annual production is $7.50 per 1,000 siding square feet on a 3/8 inch nominal basis of
67.25siding produced at a specific location for ten years after the start of production.
67.26(b) Total payments under this section to an eligible siding producer in a fiscal year
67.27may not exceed the amount necessary for 400,000,000 siding square feet on a 3/8 inch
67.28nominal basis of siding produced. Total payments under this section to all eligible siding
67.29producers in a fiscal year may not exceed the amount necessary for 400,000,000 siding
67.30square feet on a 3/8 inch nominal basis of siding produced. The commissioner shall award
67.31payments on a first-come, first-served basis within the limits of available funding.
67.32(c) For purposes of this section, an entity that holds a controlling interest in more
67.33than one siding facility is considered a single eligible producer.
67.34    Subd. 4. Forest resources requirements. Forest resources that come from land
67.35parcels greater than 160 acres must be certified by the Forest Stewardship Council,
67.36Sustainable Forestry Initiative, or American Tree Farm System. Uncertified land from
68.1parcels of 160 acres or less and federal land must be harvested by a logger who has
68.2completed training from the Minnesota logger education program or the equivalent, and
68.3have a forest stewardship plan.
68.4    Subd. 5. Claims. (a) By the last day of October, January, April, and July, each
68.5eligible siding producer shall file a claim for payment for siding production during the
68.6preceding three calendar months. An eligible siding producer that files a claim under this
68.7subdivision shall include a statement of the eligible producer's total board feet of siding
68.8produced during the quarter covered by the claim. For each claim and statement of total
68.9board feet of siding filed under this subdivision, the board feet of siding produced must
68.10be examined by a certified public accounting firm with a valid permit to practice under
68.11chapter 326A, in accordance with Statements on Standards for Attestation Engagements
68.12established by the American Institute of Certified Public Accountants.
68.13(b) The commissioner must issue payments by November 15, February 15, May 15,
68.14and August 15. A separate payment must be made for each claim filed.
68.15    Subd. 6. Appropriation. A sum sufficient to make the payments required by this
68.16section, not to exceed $3,000,000 in a fiscal year, is annually appropriated from the
68.17general fund to the commissioner.

68.18    Sec. 21. Minnesota Statutes 2015 Supplement, section 116D.04, subdivision 2a,
68.19is amended to read:
68.20    Subd. 2a. When prepared. Where there is potential for significant environmental
68.21effects resulting from any major governmental action, the action shall be preceded by a
68.22detailed environmental impact statement prepared by the responsible governmental unit.
68.23The environmental impact statement shall be an analytical rather than an encyclopedic
68.24document which describes the proposed action in detail, analyzes its significant
68.25environmental impacts, discusses appropriate alternatives to the proposed action and
68.26their impacts, and explores methods by which adverse environmental impacts of an
68.27action could be mitigated. The environmental impact statement shall also analyze those
68.28economic, employment, and sociological effects that cannot be avoided should the action
68.29be implemented. To ensure its use in the decision-making process, the environmental
68.30impact statement shall be prepared as early as practical in the formulation of an action.
68.31    (a) The board shall by rule establish categories of actions for which environmental
68.32impact statements and for which environmental assessment worksheets shall be prepared
68.33as well as categories of actions for which no environmental review is required under this
68.34section. A mandatory environmental assessment worksheet shall not be required for the
68.35expansion of an ethanol plant, as defined in section 41A.09, subdivision 2a, paragraph
69.1(b), or the conversion of an ethanol plant to a biobutanol facility or the expansion of a
69.2biobutanol facility as defined in section 41A.105 41A.15, subdivision 1a 2d, based on
69.3the capacity of the expanded or converted facility to produce alcohol fuel, but must be
69.4required if the ethanol plant or biobutanol facility meets or exceeds thresholds of other
69.5categories of actions for which environmental assessment worksheets must be prepared.
69.6The responsible governmental unit for an ethanol plant or biobutanol facility project for
69.7which an environmental assessment worksheet is prepared shall be the state agency with
69.8the greatest responsibility for supervising or approving the project as a whole.
69.9A mandatory environmental impact statement shall not be required for a facility
69.10or plant located outside the seven-county metropolitan area that produces less than
69.11125,000,000 gallons of ethanol, biobutanol, or cellulosic biofuel annually, or produces less
69.12than 400,000 tons of chemicals annually, if the facility or plant is: an ethanol plant, as
69.13defined in section 41A.09, subdivision 2a, paragraph (b); a biobutanol facility, as defined
69.14in section 41A.105 41A.15, subdivision 1a, clause (1) 2d; or a cellulosic biofuel facility.
69.15A facility or plant that only uses a cellulosic feedstock to produce chemical products for
69.16use by another facility as a feedstock shall not be considered a fuel conversion facility as
69.17used in rules adopted under this chapter.
69.18    (b) The responsible governmental unit shall promptly publish notice of the
69.19completion of an environmental assessment worksheet by publishing the notice in at least
69.20one newspaper of general circulation in the geographic area where the project is proposed,
69.21by posting the notice on a Web site that has been designated as the official publication site
69.22for publication of proceedings, public notices, and summaries of a political subdivision in
69.23which the project is proposed, or in any other manner determined by the board and shall
69.24provide copies of the environmental assessment worksheet to the board and its member
69.25agencies. Comments on the need for an environmental impact statement may be submitted
69.26to the responsible governmental unit during a 30-day period following publication of the
69.27notice that an environmental assessment worksheet has been completed. The responsible
69.28governmental unit's decision on the need for an environmental impact statement shall be
69.29based on the environmental assessment worksheet and the comments received during the
69.30comment period, and shall be made within 15 days after the close of the comment period.
69.31The board's chair may extend the 15-day period by not more than 15 additional days upon
69.32the request of the responsible governmental unit.
69.33    (c) An environmental assessment worksheet shall also be prepared for a proposed
69.34action whenever material evidence accompanying a petition by not less than 100
69.35individuals who reside or own property in the state, submitted before the proposed
69.36project has received final approval by the appropriate governmental units, demonstrates
70.1that, because of the nature or location of a proposed action, there may be potential for
70.2significant environmental effects. Petitions requesting the preparation of an environmental
70.3assessment worksheet shall be submitted to the board. The chair of the board shall
70.4determine the appropriate responsible governmental unit and forward the petition to it.
70.5A decision on the need for an environmental assessment worksheet shall be made by
70.6the responsible governmental unit within 15 days after the petition is received by the
70.7responsible governmental unit. The board's chair may extend the 15-day period by not
70.8more than 15 additional days upon request of the responsible governmental unit.
70.9    (d) Except in an environmentally sensitive location where Minnesota Rules, part
70.104410.4300, subpart 29, item B, applies, the proposed action is exempt from environmental
70.11review under this chapter and rules of the board, if:
70.12    (1) the proposed action is:
70.13    (i) an animal feedlot facility with a capacity of less than 1,000 animal units; or
70.14    (ii) an expansion of an existing animal feedlot facility with a total cumulative
70.15capacity of less than 1,000 animal units;
70.16    (2) the application for the animal feedlot facility includes a written commitment by
70.17the proposer to design, construct, and operate the facility in full compliance with Pollution
70.18Control Agency feedlot rules; and
70.19    (3) the county board holds a public meeting for citizen input at least ten business
70.20days prior to the Pollution Control Agency or county issuing a feedlot permit for the
70.21animal feedlot facility unless another public meeting for citizen input has been held with
70.22regard to the feedlot facility to be permitted. The exemption in this paragraph is in
70.23addition to other exemptions provided under other law and rules of the board.
70.24    (e) The board may, prior to final approval of a proposed project, require preparation
70.25of an environmental assessment worksheet by a responsible governmental unit selected
70.26by the board for any action where environmental review under this section has not been
70.27specifically provided for by rule or otherwise initiated.
70.28    (f) An early and open process shall be utilized to limit the scope of the environmental
70.29impact statement to a discussion of those impacts, which, because of the nature or location
70.30of the project, have the potential for significant environmental effects. The same process
70.31shall be utilized to determine the form, content and level of detail of the statement as well
70.32as the alternatives which are appropriate for consideration in the statement. In addition,
70.33the permits which will be required for the proposed action shall be identified during the
70.34scoping process. Further, the process shall identify those permits for which information
70.35will be developed concurrently with the environmental impact statement. The board
70.36shall provide in its rules for the expeditious completion of the scoping process. The
71.1determinations reached in the process shall be incorporated into the order requiring the
71.2preparation of an environmental impact statement.
71.3    (g) The responsible governmental unit shall, to the extent practicable, avoid
71.4duplication and ensure coordination between state and federal environmental review
71.5and between environmental review and environmental permitting. Whenever practical,
71.6information needed by a governmental unit for making final decisions on permits
71.7or other actions required for a proposed project shall be developed in conjunction
71.8with the preparation of an environmental impact statement. When an environmental
71.9impact statement is prepared for a project requiring multiple permits for which two or
71.10more agencies' decision processes include either mandatory or discretionary hearings
71.11before a hearing officer prior to the agencies' decision on the permit, the agencies
71.12may, notwithstanding any law or rule to the contrary, conduct the hearings in a single
71.13consolidated hearing process if requested by the proposer. All agencies having jurisdiction
71.14over a permit that is included in the consolidated hearing shall participate. The responsible
71.15governmental unit shall establish appropriate procedures for the consolidated hearing
71.16process, including procedures to ensure that the consolidated hearing process is consistent
71.17with the applicable requirements for each permit regarding the rights and duties of parties to
71.18the hearing, and shall utilize the earliest applicable hearing procedure to initiate the hearing.
71.19    (h) An environmental impact statement shall be prepared and its adequacy
71.20determined within 280 days after notice of its preparation unless the time is extended by
71.21consent of the parties or by the governor for good cause. The responsible governmental
71.22unit shall determine the adequacy of an environmental impact statement, unless within 60
71.23days after notice is published that an environmental impact statement will be prepared,
71.24the board chooses to determine the adequacy of an environmental impact statement. If an
71.25environmental impact statement is found to be inadequate, the responsible governmental
71.26unit shall have 60 days to prepare an adequate environmental impact statement.
71.27    (i) The proposer of a specific action may include in the information submitted to the
71.28responsible governmental unit a preliminary draft environmental impact statement under
71.29this section on that action for review, modification, and determination of completeness and
71.30adequacy by the responsible governmental unit. A preliminary draft environmental impact
71.31statement prepared by the project proposer and submitted to the responsible governmental
71.32unit shall identify or include as an appendix all studies and other sources of information
71.33used to substantiate the analysis contained in the preliminary draft environmental impact
71.34statement. The responsible governmental unit shall require additional studies, if needed,
71.35and obtain from the project proposer all additional studies and information necessary for
72.1the responsible governmental unit to perform its responsibility to review, modify, and
72.2determine the completeness and adequacy of the environmental impact statement.

72.3    Sec. 22. Laws 2015, First Special Session chapter 4, article 1, section 2, subdivision 4,
72.4is amended to read:

72.5 72.6

Subd. 4.Agriculture, Bioenergy, and Bioproduct Advancement

14,993,000

19,010,000

72.7$4,483,000 the first year and $8,500,000 the
72.8second year are for transfer to the agriculture
72.9research, education, extension, and
72.10technology transfer account under Minnesota
72.11Statutes, section 41A.14, subdivision 3. The
72.12transfer in this paragraph includes money
72.13for plant breeders at the University of
72.14Minnesota for cultivated wild rice, potatoes,
72.15and grapes. Of the amount appropriated in
72.16this paragraph, at least $450,000 the second
72.17year is for transfer to the Board of Regents
72.18of the University of Minnesota for the
72.19cultivated wild rice breeding project at the
72.20North Central Research and Outreach Center
72.21to include a tenure track/research associate
72.22plant breeder. Of the amount appropriated
72.23in this paragraph, at least $350,000 the
72.24second year is for transfer to the Board of
72.25Regents of the University of Minnesota
72.26for potato breeding. Of these amounts, at
72.27least $600,000 each year is for agriculture
72.28rapid response the Minnesota Agricultural
72.29Experiment Station's agriculture rapid
72.30response fund under Minnesota Statutes,
72.31section 41A.14, subdivision 1, clause (2). Of
72.32the amount appropriated in this paragraph,
72.33$1,000,000 each year is for transfer to
72.34the Board of Regents of the University of
72.35Minnesota for research to determine (1) what
73.1is causing avian influenza, (2) why some
73.2fowl are more susceptible, and (3) prevention
73.3measures that can be taken. Of the amount
73.4appropriated in this paragraph, $2,000,000
73.5each year is for grants to the Minnesota
73.6Agriculture Education Leadership Council
73.7to enhance agricultural education with
73.8priority given to Farm Business Management
73.9challenge grants. The commissioner shall
73.10transfer the remaining grant funds in this
73.11appropriation each year to the Board of
73.12Regents of the University of Minnesota for
73.13purposes of Minnesota Statutes, section
73.1441A.14, subdivision 1, clause (1), and subject
73.15to Minnesota Statutes, section 41A.14,
73.16subdivision 2.
73.17To the extent practicable, funds expended
73.18under Minnesota Statutes, section 41A.14,
73.19subdivision 1 , clauses (1) and (2), must
73.20supplement and not supplant existing sources
73.21and levels of funding. The commissioner may
73.22use up to 4.5 percent of this appropriation
73.23for costs incurred to administer the program.
73.24Any unencumbered balance does not cancel
73.25at the end of the first year and is available for
73.26the second year. Notwithstanding Minnesota
73.27Statutes, section 16A.28, the appropriations
73.28encumbered under contract on or before June
73.2930, 2017, for agricultural growth, research,
73.30and innovation grants are available until June
73.3130, 2019.
73.32$10,235,000 the first year and $10,235,000
73.33the second year are for the agricultural
73.34growth, research, and innovation program
73.35in Minnesota Statutes, section 41A.12. No
73.36later than February 1, 2016, and February
74.11, 2017, the commissioner must report to
74.2the legislative committees with jurisdiction
74.3over agriculture policy and finance regarding
74.4the commissioner's accomplishments
74.5and anticipated accomplishments in
74.6the following areas: facilitating the
74.7start-up, modernization, or expansion of
74.8livestock operations including beginning
74.9and transitioning livestock operations;
74.10developing new markets for Minnesota
74.11farmers by providing more fruits, vegetables,
74.12meat, grain, and dairy for Minnesota school
74.13children; assisting value-added agricultural
74.14businesses to begin or expand, access new
74.15markets, or diversify products; developing
74.16urban agriculture; facilitating the start-up,
74.17modernization, or expansion of other
74.18beginning and transitioning farms including
74.19loans under Minnesota Statutes, section
74.2041B.056 ; sustainable agriculture on farm
74.21research and demonstration; development or
74.22expansion of food hubs and other alternative
74.23community-based food distribution systems;
74.24and research on bioenergy, biobased content,
74.25or biobased formulated products and other
74.26renewable energy development. The
74.27commissioner may use up to 4.5 percent
74.28of this appropriation for costs incurred to
74.29administer the program. Any unencumbered
74.30balance does not cancel at the end of the first
74.31year and is available for the second year.
74.32Notwithstanding Minnesota Statutes, section
74.3316A.28 , the appropriations encumbered
74.34under contract on or before June 30, 2017, for
74.35agricultural growth, research, and innovation
74.36grants are available until June 30, 2019.
75.1The commissioner may use funds
75.2appropriated for the agricultural growth,
75.3research, and innovation program as provided
75.4in this paragraph. The commissioner may
75.5award grants to owners of Minnesota
75.6facilities producing bioenergy, biobased
75.7content, or a biobased formulated product;
75.8to organizations that provide for on-station,
75.9on-farm field scale research and outreach to
75.10develop and test the agronomic and economic
75.11requirements of diverse strands of prairie
75.12plants and other perennials for bioenergy
75.13systems; or to certain nongovernmental
75.14entities. For the purposes of this paragraph,
75.15"bioenergy" includes transportation fuels
75.16derived from cellulosic material, as well as
75.17the generation of energy for commercial heat,
75.18industrial process heat, or electrical power
75.19from cellulosic materials via gasification or
75.20other processes. Grants are limited to 50
75.21percent of the cost of research, technical
75.22assistance, or equipment related to bioenergy,
75.23biobased content, or biobased formulated
75.24product production or $500,000, whichever
75.25is less. Grants to nongovernmental entities
75.26for the development of business plans and
75.27structures related to community ownership
75.28of eligible bioenergy facilities together may
75.29not exceed $150,000. The commissioner
75.30shall make a good-faith effort to select
75.31projects that have merit and, when taken
75.32together, represent a variety of bioenergy
75.33technologies, biomass feedstocks, and
75.34geographic regions of the state. Projects
75.35must have a qualified engineer provide
75.36certification on the technology and fuel
76.1source. Grantees must provide reports at the
76.2request of the commissioner.
76.3Of the amount appropriated for the
76.4agricultural growth, research, and innovation
76.5program in this subdivision, $1,000,000 the
76.6first year and $1,000,000 the second year
76.7are for distribution in equal amounts to each
76.8of the state's county fairs to preserve and
76.9promote Minnesota agriculture.
76.10Of the amount appropriated for the
76.11agricultural growth, research, and innovation
76.12program in this subdivision, $500,000 in
76.13fiscal year 2016 and $1,500,000 in fiscal
76.14year 2017 are for incentive payments
76.15under Minnesota Statutes, sections 41A.16,
76.1641A.17 , and 41A.18. If the appropriation
76.17exceeds the total amount for which all
76.18producers are eligible in a fiscal year, the
76.19balance of the appropriation is available
76.20to the commissioner for the agricultural
76.21growth, research, and innovation program.
76.22Notwithstanding Minnesota Statutes,
76.23section 16A.28, the first year appropriation
76.24is available until June 30, 2017, and the
76.25second year appropriation is available until
76.26June 30, 2018. The commissioner may use
76.27up to 4.5 percent of the appropriation for
76.28administration of the incentive payment
76.29programs.
76.30Of the amount appropriated for the
76.31agricultural growth, research, and innovation
76.32program in this subdivision, $250,000
76.33the first year is for grants to communities
76.34to develop or expand food hubs and
76.35other alternative community-based food
77.1distribution systems. Of this amount,
77.2$50,000 is for the commissioner to consult
77.3with existing food hubs, alternative
77.4community-based food distribution systems,
77.5and University of Minnesota Extension
77.6to identify best practices for use by other
77.7Minnesota communities. No later than
77.8December 15, 2015, the commissioner must
77.9report to the legislative committees with
77.10jurisdiction over agriculture and health
77.11regarding the status of emerging alternative
77.12community-based food distribution systems
77.13in the state along with recommendations
77.14to eliminate any barriers to success. Any
77.15unencumbered balance does not cancel at the
77.16end of the first year and is available for the
77.17second year. This is a onetime appropriation.
77.18$250,000 the first year and $250,000 the
77.19second year are for grants that enable
77.20retail petroleum dispensers to dispense
77.21biofuels to the public in accordance with the
77.22biofuel replacement goals established under
77.23Minnesota Statutes, section 239.7911. A
77.24retail petroleum dispenser selling petroleum
77.25for use in spark ignition engines for vehicle
77.26model years after 2000 is eligible for grant
77.27money under this paragraph if the retail
77.28petroleum dispenser has no more than 15
77.29retail petroleum dispensing sites and each
77.30site is located in Minnesota. The grant
77.31money received under this paragraph must
77.32be used for the installation of appropriate
77.33technology that uses fuel dispensing
77.34equipment appropriate for at least one fuel
77.35dispensing site to dispense gasoline that is
77.36blended with 15 percent of agriculturally
78.1derived, denatured ethanol, by volume, and
78.2appropriate technical assistance related to
78.3the installation. A grant award must not
78.4exceed 85 percent of the cost of the technical
78.5assistance and appropriate technology,
78.6including remetering of and retrofits for
78.7retail petroleum dispensers and replacement
78.8of petroleum dispenser projects. The
78.9commissioner may use up to $35,000 of this
78.10appropriation for administrative expenses.
78.11The commissioner shall cooperate with
78.12biofuel stakeholders in the implementation
78.13of the grant program. The commissioner
78.14must report to the legislative committees
78.15with jurisdiction over agriculture policy and
78.16finance by February 1 each year, detailing
78.17the number of grants awarded under this
78.18paragraph and the projected effect of the grant
78.19program on meeting the biofuel replacement
78.20goals under Minnesota Statutes, section
78.21239.7911 . These are onetime appropriations.
78.22$25,000 the first year and $25,000 the second
78.23year are for grants to the Southern Minnesota
78.24Initiative Foundation to promote local foods
78.25through an annual event that raises public
78.26awareness of local foods and connects local
78.27food producers and processors with potential
78.28buyers.
78.29EFFECTIVE DATE.This section is effective the day following final enactment.

78.30    Sec. 23. Laws 2015, First Special Session chapter 4, article 1, section 5, is amended to
78.31read:
78.32    Sec. 5. AVIAN INFLUENZA RESPONSE ACTIVITIES; APPROPRIATIONS
78.33AND TRANSFERS.
79.1(a) $3,619,000 $619,000 is appropriated from the general fund in fiscal year 2016 to
79.2the commissioner of agriculture for avian influenza emergency response activities. The
79.3commissioner may use money appropriated under this paragraph to purchase necessary
79.4euthanasia and composting equipment and to reimburse costs incurred by local units of
79.5government directly related to avian influenza emergency response activities that are not
79.6eligible for federal reimbursement. This appropriation is available the day following final
79.7enactment until June 30, 2017.
79.8(b) $1,853,000 is appropriated from the general fund in fiscal year 2016 to the
79.9Board of Animal Health for avian influenza emergency response activities. The Board
79.10may use money appropriated under this paragraph to purchase necessary euthanasia and
79.11composting equipment and to retain trained staff. This appropriation is available the day
79.12following final enactment until June 30, 2017.
79.13(c) $103,000 is appropriated from the general fund in fiscal year 2016 to the
79.14commissioner of health for avian influenza emergency response activities. This
79.15appropriation is available the day following final enactment until June 30, 2017.
79.16(d) $350,000 is appropriated from the general fund in fiscal year 2016 to the
79.17commissioner of natural resources for sampling wild animals to detect and monitor the
79.18avian influenza virus. This appropriation may also be used to conduct serology sampling,
79.19in consultation with the Board of Animal Health and the University of Minnesota Pomeroy
79.20Chair in Avian Health, from birds within a control zone and outside of a control zone.
79.21This appropriation is available the day following final enactment until June 30, 2017.
79.22(e) $544,000 is appropriated from the general fund in fiscal year 2016 to the
79.23commissioner of public safety to operate the State Emergency Operation Center in
79.24coordination with the statewide avian influenza response activities. Appropriations
79.25under this paragraph may also be used to support a staff person at the state's agricultural
79.26incident command post in Willmar. This appropriation is available the day following final
79.27enactment until June 30, 2017.
79.28(f) The commissioner of management and budget may transfer unexpended balances
79.29from the appropriations in this section to any state agency for operating expenses related
79.30to avian influenza emergency response activities. The commissioner of management and
79.31budget must report each transfer to the chairs and ranking minority members of the senate
79.32Committee on Finance and the house of representatives Committee on Ways and Means.
79.33(g) In addition to the transfers required under Laws 2015, chapter 65, article 1,
79.34section 17, no later than September 30, 2015, the commissioner of management and
79.35budget must transfer $4,400,000 from the fiscal year 2015 closing balance in the general
79.36fund to the disaster assistance contingency account in Minnesota Statutes, section 12.221,
80.1subdivision 6 . This amount is available for avian influenza emergency response activities
80.2as provided in Laws 2015, chapter 65, article 1, section 18.
80.3EFFECTIVE DATE.This section is effective the day following final enactment.

80.4ARTICLE 4

80.5NATURAL RESOURCES

80.6	Section 1. APPROPRIATIONS.

80.7The sums shown in the columns marked "Appropriations" are added to the
80.8appropriations in Laws 2015, First Special Session chapter 4, or appropriated to the
80.9agencies and for the purposes specified in this article. The appropriations are from the
80.10general fund, or another named fund, and are available for the fiscal year indicated for
80.11each purpose. The figures "2016" and "2017" used in this article mean that the addition
80.12to the appropriations listed under them are available for the fiscal year ending June 30,
80.132016, or June 30, 2017, respectively. "The first year" is fiscal year 2016. "The second
80.14year" is fiscal year 2017. Appropriations for fiscal year 2016 are effective the day
80.15following final enactment.

80.16				APPROPRIATIONS
80.17				Available for the Year
80.18				Ending June 30
80.19					2016		2017

80.20

Sec. 2. NATURAL RESOURCES

80.21

Subdivision 1.Total Appropriation

$

2,269,000

$

14,816,000

80.22	Appropriations by Fund
80.23		2016	2017
80.24	General	1,599,000	12,386,000
80.25	Natural Resources	-0-	2,320,000
80.26	Game and Fish	670,000	110,000

80.27The amounts that may be spent for each
80.28purpose are specified in the following
80.29subdivisions.

80.30

Subd. 2.Lands and Minerals Management

-0-

600,000

80.31$400,000 the second year is for transfer to
80.32the school trust lands director to initiate the
80.33private sale of surplus school trust lands
81.1identified according to Minnesota Statutes,
81.2section 92.82, paragraph (d), including, but
81.3not limited to, valuation expenses, legal
81.4fees, and transactional staff costs. This
81.5appropriation must not be used to extinguish
81.6school trust interests in school trust lands.
81.7This is a onetime appropriation.
81.8$200,000 the second year is to initiate,
81.9in consultation with the school trust
81.10lands director, a valuation process
81.11and representative valuations for the
81.12compensation of school trust lands required
81.13by Minnesota Statutes, section 84.027,
81.14subdivision 18, paragraph (b). By January 15,
81.152017, the commissioner must submit a report
81.16to the chairs and ranking minority members
81.17of the house of representatives and senate
81.18committees and divisions with jurisdiction
81.19over environment and natural resources
81.20and education policy and finance on the
81.21Department of Natural Resources' progress in
81.22developing a valuation process, a description
81.23of the process to identify representative
81.24sample valuations, and the results of the
81.25representative valuations of school trust
81.26lands identified for compensation. This is a
81.27onetime appropriation.

81.28

Subd. 3.Ecological and Water Resources

-0-

1,637,000

81.29$187,000 the second year is for a grant to the
81.30Middle-Snake-Tamarac Rivers Watershed
81.31District to match equal funds from the North
81.32Dakota State Water Commission and North
81.33Dakota water boards to conduct hydraulic
81.34modeling of alternative floodway options
81.35for the reach including and upstream and
82.1downstream of the Minnesota and North
82.2Dakota agricultural levies in the vicinity
82.3of Oslo, Minnesota. The modeling must
82.4include evaluating removal of floodway
82.5flow obstructions, channel obstructions,
82.6transportation access, and equalization of
82.7agricultural levy protection. The project must
82.8be conducted in partnership with the border
82.9township association group representing four
82.10Minnesota townships and the city of Oslo
82.11and the three adjacent townships in North
82.12Dakota. This is a onetime appropriation and
82.13is available until June 30, 2018.
82.14$1,000,000 the second year is for an impact
82.15study of irrigation on the Pineland Sands
82.16aquifer. This is a onetime appropriation and
82.17is available until June 30, 2019.
82.18$250,000 the second year is for maintenance
82.19of the Little Stone Lake Dam. St. Louis
82.20County shall transfer to the state of Minnesota
82.21maintenance and control of the Little Stone
82.22Lake Dam that is described as: DAM ID
82.23MN00373. This is a onetime appropriation.
82.24$200,000 the second year is for a grant to
82.25the Koronis Lake Association for purposes
82.26of removing and preventing aquatic invasive
82.27species. This is a onetime appropriation.

82.28

Subd. 4.Forest Management

-0-

3,100,000

82.29$600,000 the second year is for a pilot
82.30program to increase forest road maintenance.
82.31The commissioner shall use the money to
82.32perform needed maintenance on forest roads
82.33in conjunction with timber sales. Optional
82.34forest road maintenance contracts may be
82.35offered to successful purchasers of state
83.1timber sales at the commissioner's discretion.
83.2This is a onetime appropriation.
83.3$2,500,000 the second year is for private
83.4forest management assistance. The agency
83.5base is increased by $2,028,000 in fiscal year
83.62018 and thereafter.

83.7

Subd. 5.Parks and Trails Management

-0-

5,499,000

83.8	Appropriations by Fund
83.9		2016	2017
83.10	General	-0-	3,179,000
83.11	Natural Resources	-0-	2,320,000

83.12$2,800,000 the second year is a onetime
83.13appropriation.
83.14$2,300,000 the second year is from the state
83.15parks account in the natural resources fund.
83.16Of this amount, $1,300,000 is onetime. In
83.17fiscal year 2017, the level of service and
83.18hours at all state parks and recreation areas
83.19must be maintained at fiscal year 2015 levels.
83.20$20,000 the second year is from the natural
83.21resources fund to design and erect signs
83.22marking the David K. Dill trail designated in
83.23this act. Of this amount, $10,000 is from the
83.24snowmobile trails and enforcement account
83.25and $10,000 is from the all-terrain vehicle
83.26account. This is a onetime appropriation.
83.27$100,000 the second year is for the
83.28improvement of the infrastructure for
83.29sanitary sewer service at the Woodenfrog
83.30Campground in Kabetogama State Forest.
83.31This is a onetime appropriation.
83.32$250,000 the second year is for a grant to
83.33Douglas County to acquire land, including a
83.34ski area, for use as a regional park. The grant
83.35must be matched by other state or nonstate
84.1sources. This is a onetime appropriation and
84.2is available until June 30, 2019.
84.3$29,000 the second year is for computer
84.4programming related to the transfer-on-death
84.5title changes for watercraft. This is a onetime
84.6appropriation.

84.7

Subd. 6.Fish and Wildlife Management

-0-

50,000

84.8$50,000 the second year is from the game
84.9and fish fund for fish virus surveillance,
84.10including fish testing in high-risk waters used
84.11for bait production, to ensure the availability
84.12of safe bait. This is a onetime appropriation.

84.13

Subd. 7.Enforcement

670,000

-0-

84.14$670,000 the first year is from the game and
84.15fish fund for aviation services. This is a
84.16onetime appropriation.

84.17

Subd. 8.Operations Support

1,599,000

3,930,000

84.18	Appropriations by Fund
84.19		2016	2017
84.20	General	1,599,000	3,870,000
84.21	Game and Fish	-0-	60,000

84.22$1,599,000 the first year and $2,370,000 the
84.23second year are for legal costs related to the
84.24NorthMet mining project. This is a onetime
84.25appropriation and is available until June 30,
84.262019.
84.27$1,500,000 the second year is for a grant to
84.28Wolf Ridge Environmental Learning Center
84.29to construct a new dormitory, renovate an old
84.30dormitory, construct a maintenance building,
84.31and construct a small classroom building
84.32with parking. The grant is not available
84.33until the commissioner of management
84.34and budget determines that an amount
85.1sufficient to complete the project is available
85.2from nonstate sources. This is a onetime
85.3appropriation and is available until June 30,
85.42019.
85.5$60,000 the second year is from the
85.6heritage enhancement account for the
85.7department's Southeast Asian unit to
85.8conduct outreach efforts to the Southeast
85.9Asian community in Minnesota, including
85.10outreach efforts to refugees from Burma, to
85.11encourage participation in outdoor education
85.12opportunities and activities. This is a onetime
85.13appropriation.

85.14    Sec. 3. Minnesota Statutes 2014, section 84.091, subdivision 2, is amended to read:
85.15    Subd. 2. License required; exception exemptions. (a) Except as provided in
85.16paragraph (b) this subdivision, a person may not harvest, buy, sell, transport, or possess
85.17aquatic plants without a license required under this chapter. A license shall be issued in
85.18the same manner as provided under the game and fish laws.
85.19(b) A resident under the age of 18 years may harvest wild rice without a license, if
85.20accompanied by a person with a wild rice license.
85.21(c) Tribal band members who possess a valid tribal identification card may harvest
85.22wild rice without a license under this section.

85.23    Sec. 4. Minnesota Statutes 2014, section 84.798, subdivision 2, is amended to read:
85.24    Subd. 2. Exemptions. Registration is not required for an off-road vehicle that is:
85.25(1) owned and used by the United States, an Indian tribal government, the state,
85.26another state, or a political subdivision; or
85.27(2) registered in another state or country and has not been in this state for more than
85.2830 consecutive days; or
85.29(3) operated with a valid state trail pass according to section 84.8035.
85.30EFFECTIVE DATE.This section is effective January 1, 2017.

85.31    Sec. 5. Minnesota Statutes 2014, section 84.8035, is amended to read:
85.3284.8035 NONRESIDENT OFF-ROAD VEHICLE STATE TRAIL PASS.
86.1    Subdivision 1. Pass required; fee. (a) Except as provided under paragraph (c), a
86.2nonresident person may not operate an off-road vehicle on a state or grant-in-aid off-road
86.3vehicle trail or use area unless the vehicle displays a nonresident an off-road vehicle state
86.4trail pass sticker issued according to this section. The pass must be viewable by a peace
86.5officer, a conservation officer, or an employee designated under section 84.0835.
86.6    (b) The fee for an annual pass is $20. The pass is valid from January 1 through
86.7December 31. The fee for a three-year pass is $30. The commissioner of natural resources
86.8shall issue a pass upon application and payment of the fee. Fees collected under this
86.9section, except for the issuing fee for licensing agents, shall be deposited in the state
86.10treasury and credited to the off-road vehicle account in the natural resources fund and,
86.11except for the electronic licensing system commission established by the commissioner
86.12under section 84.027, subdivision 15, must be used for grants-in-aid to counties and
86.13municipalities for off-road vehicle organizations to construct and maintain off-road
86.14vehicle trails and use areas.
86.15    (c) A nonresident An off-road vehicle state trail pass is not required for:
86.16    (1) an off-road vehicle that is owned and used by the United States, another state,
86.17or a political subdivision thereof that is exempt from registration under section 84.798,
86.18subdivision 2;
86.19    (2) a person operating an off-road vehicle only on the portion of a trail that is owned
86.20by the person or the person's spouse, child, or parent; or
86.21    (3) a nonresident person operating an off-road vehicle that is registered according
86.22to section 84.798.
86.23(d) The fee for an annual nonresident off-road vehicle state trail pass is $20. The
86.24nonresident pass is valid from January 1 through December 31. The fee for a nonresident
86.25three-year pass is $30.
86.26(e) The fee for a resident off-road vehicle state trail pass is $20. The resident pass is
86.27valid for 30 consecutive days after the date of issuance.
86.28    Subd. 2. License agents. The commissioner may appoint agents to issue and
86.29sell nonresident off-road vehicle state trail passes. The commissioner may revoke the
86.30appointment of an agent at any time. The commissioner may adopt additional rules as
86.31provided in section 97A.485, subdivision 11. An agent shall observe all rules adopted
86.32by the commissioner for accounting and handling of passes pursuant to section 97A.485,
86.33subdivision 11 . An agent shall promptly deposit and remit all money received from the
86.34sale of the passes, exclusive of the issuing fee, to the commissioner.
86.35    Subd. 3. Issuance of passes. The commissioner and agents shall issue and sell
86.36nonresident off-road vehicle state trail passes. The commissioner shall also make the
87.1passes available through the electronic licensing system established under section 84.027,
87.2subdivision 15.
87.3    Subd. 4. Agent's fee. In addition to the fee for a pass, an issuing fee of $1 per pass
87.4shall be charged. The issuing fee may be retained by the seller of the pass. Issuing fees for
87.5passes issued by the commissioner shall be deposited in the off-road vehicle account in the
87.6natural resources fund and retained for the operation of the electronic licensing system.
87.7    Subd. 5. Duplicate passes. The commissioner and agents shall issue a duplicate
87.8pass to persons whose pass is lost or destroyed using the process established under section
87.997A.405, subdivision 3 , and rules adopted thereunder. The fee for a duplicate nonresident
87.10off-road vehicle state trail pass is $4, with an issuing fee of 50 cents.
87.11EFFECTIVE DATE.This section is effective January 1, 2017.

87.12    Sec. 6. Minnesota Statutes 2014, section 85.015, subdivision 13, is amended to read:
87.13    Subd. 13. Arrowhead Region Trails, Cook, Lake, St. Louis, Pine, Carlton,
87.14Koochiching, and Itasca Counties. (a)(1) The Taconite Trail shall originate at Ely in St.
87.15Louis County and extend southwesterly to Tower in St. Louis County, thence westerly to
87.16McCarthy Beach State Park in St. Louis County, thence southwesterly to Grand Rapids in
87.17Itasca County and there terminate;
87.18(2) the C. J. Ramstad/Northshore Trail shall originate in Duluth in St. Louis County
87.19and extend northeasterly to Two Harbors in Lake County, thence northeasterly to Grand
87.20Marais in Cook County, thence northeasterly to the international boundary in the vicinity
87.21of the north shore of Lake Superior, and there terminate;
87.22(3) The Grand Marais to International Falls Trail shall originate in Grand Marais
87.23in Cook County and extend northwesterly, outside of the Boundary Waters Canoe Area,
87.24to Ely in St. Louis County, thence southwesterly along the route of the Taconite Trail to
87.25Tower in St. Louis County, thence northwesterly through the Pelican Lake area in St.
87.26Louis County to International Falls in Koochiching County, and there terminate the David
87.27K. Dill/Arrowhead Trail shall originate at International Falls in Koochiching County and
87.28extend southeasterly through the Pelican Lake area in St. Louis County, intersecting with
87.29the Taconite Trail west of Tower; then the David K. Dill/Taconite Trail continues easterly
87.30to Ely in St. Louis County; then the David K. Dill/Tomahawk Trail extends southeasterly,
87.31outside the Boundary Waters Canoe Area, to the area of Little Marais in Lake County and
87.32there terminates at the intersection with the C. J. Ramstad/Northshore Trail; and
87.33(4) the Matthew Lourey Trail shall originate in Duluth in St. Louis County and
87.34extend southerly to Chengwatana State Forest in Pine County.
87.35(b) The trails shall be developed primarily for riding and hiking.
88.1(c) In addition to the authority granted in subdivision 1, lands and interests in lands
88.2for the Arrowhead Region trails may be acquired by eminent domain. Before acquiring
88.3any land or interest in land by eminent domain the commissioner of administration shall
88.4obtain the approval of the governor. The governor shall consult with the Legislative
88.5Advisory Commission before granting approval. Recommendations of the Legislative
88.6Advisory Commission shall be advisory only. Failure or refusal of the commission to
88.7make a recommendation shall be deemed a negative recommendation.

88.8    Sec. 7. [86B.841] TRANSFER-ON-DEATH TITLE TO WATERCRAFT.
88.9    Subdivision 1. Titled as transfer-on-death. A natural person who is the owner of a
88.10watercraft may have the watercraft titled in transfer-on-death or TOD form by including in
88.11the application for the certificate of title a designation of a beneficiary or beneficiaries to
88.12whom the watercraft must be transferred on death of the owner or the last survivor of joint
88.13owners with rights of survivorship, subject to the rights of secured parties.
88.14    Subd. 2. Designation of beneficiary. A watercraft is registered in transfer-on-death
88.15form by designating on the certificate of title the name of the owner and the names
88.16of joint owners with identification of rights of survivorship, followed by the words
88.17"transfer-on-death to (name of beneficiary or beneficiaries)." The designation "TOD" may
88.18be used instead of "transfer-on-death." A title in transfer-on-death form is not required
88.19to be supported by consideration, and the certificate of title in which the designation
88.20is made is not required to be delivered to the beneficiary or beneficiaries in order for
88.21the designation to be effective.
88.22    Subd. 3. Interest of beneficiary. The transfer-on-death beneficiary or beneficiaries
88.23have no interest in the watercraft until the death of the owner or the last survivor of joint
88.24owners with rights of survivorship. A beneficiary designation may be changed at any time
88.25by the owner or by all joint owners with rights of survivorship, without the consent of the
88.26beneficiary or beneficiaries, by filing an application for a new certificate of title.
88.27    Subd. 4. Vesting of ownership in beneficiary. Ownership of a watercraft titled in
88.28transfer-on-death form vests in the designated beneficiary or beneficiaries on the death of
88.29the owner or the last of the joint owners with rights of survivorship, subject to the rights of
88.30secured parties. The transfer-on-death beneficiary or beneficiaries who survive the owner
88.31may apply for a new certificate of title to the watercraft upon submitting a certified death
88.32record of the owner of the watercraft. If no transfer-on-death beneficiary or beneficiaries
88.33survive the owner of a watercraft, the watercraft must be included in the probate estate
88.34of the deceased owner. A transfer of a watercraft to a transfer-on-death beneficiary or
88.35beneficiaries is not a testamentary transfer.
89.1    Subd. 5. Rights of creditors. (a) This section does not limit the rights of any
89.2secured party or creditor of the owner of a watercraft against a transfer-on-death
89.3beneficiary or beneficiaries.
89.4(b) The state or a county agency with a claim or lien authorized by section 246.53,
89.5256B.15, 261.04, or 270C.63, is a creditor for purposes of this subdivision. A claim
89.6or lien under those sections continues to apply against the designated beneficiary or
89.7beneficiaries after the transfer under this section if other assets of the deceased owner's
89.8estate are insufficient to pay the amount of the claim. The claim or lien continues to apply
89.9to the watercraft until the designated beneficiary sells or transfers it to a person against
89.10whom the claim or lien does not apply and who did not have actual notice or knowledge
89.11of the claim or lien.

89.12    Sec. 8. Minnesota Statutes 2014, section 89.0385, is amended to read:
89.1389.0385 FOREST MANAGEMENT INVESTMENT ACCOUNT; COST
89.14CERTIFICATION.
89.15(a) The commissioner shall certify the total costs incurred for forest management,
89.16forest improvement, and road improvement on state-managed lands during each fiscal
89.17year. The commissioner shall distribute forest management receipts credited to various
89.18accounts according to this section.
89.19(b) The amount of the certified costs incurred for forest management activities on
89.20state lands shall be transferred from the account where receipts are deposited to the forest
89.21management investment account in the natural resources fund, except for those costs
89.22certified under section 16A.125. Transfers may occur quarterly, based on quarterly cost and
89.23revenue reports, throughout the fiscal year, with final certification and reconciliation after
89.24each fiscal year. Transfers in a fiscal year cannot exceed receipts credited to the account.
89.25(c) The amount of the certified costs incurred for forest management activities
89.26on nonstate lands managed under a good neighbor or joint powers agreement must be
89.27transferred from the account where receipts are deposited to the forest management
89.28investment account in the natural resources fund. Transfers for costs incurred may occur
89.29after projects or timber permits are finalized.

89.30    Sec. 9. Minnesota Statutes 2014, section 93.0015, subdivision 3, is amended to read:
89.31    Subd. 3. Expiration. The committee expires June 30, 2016 2026.

89.32    Sec. 10. Minnesota Statutes 2014, section 93.2236, is amended to read:
89.3393.2236 MINERALS MANAGEMENT ACCOUNT.
90.1(a) The minerals management account is created as an account in the natural
90.2resources fund. Interest earned on money in the account accrues to the account. Money in
90.3the account may be spent or distributed only as provided in paragraphs (b) and (c).
90.4(b) If the balance in the minerals management account exceeds $3,000,000 on March
90.531, June 30, September 30, or December 31, the amount exceeding $3,000,000 must
90.6be distributed to the permanent school fund, the permanent university fund, and taxing
90.7districts as provided in section 93.22, subdivision 1, paragraph (c). The amount distributed
90.8to each fund must be in the same proportion as the total mineral lease revenue received
90.9in the previous biennium from school trust lands, university lands, and lands held by the
90.10state in trust for taxing districts.
90.11(c) Subject to appropriation by the legislature, money in the minerals management
90.12account may be spent by the commissioner of natural resources for mineral resource
90.13management and projects to enhance future mineral income and promote new mineral
90.14resource opportunities.

90.15    Sec. 11. Minnesota Statutes 2014, section 94.3495, subdivision 2, is amended to read:
90.16    Subd. 2. Classes of land; definitions. (a) The classes of public land that may be
90.17involved in an expedited exchange under this section are:
90.18    (1) Class 1 land, which for the purpose of this section is Class A land as defined in
90.19section 94.342, subdivision 1, except for:;
90.20    (i) school trust land as defined in section 92.025; and
90.21    (ii) university land granted to the state by acts of Congress;
90.22    (2) Class 2 land, which for the purpose of this section is Class B land as defined in
90.23section 94.342, subdivision 2; and
90.24    (3) Class 3 land, which for the purpose of this section is all land owned in fee by
90.25a governmental subdivision of the state.
90.26(b) "School trust land" has the meaning given in section 92.025.
90.27(c) "University land" means land granted to the state by acts of Congress for
90.28university purposes.

90.29    Sec. 12. Minnesota Statutes 2014, section 94.3495, subdivision 3, is amended to read:
90.30    Subd. 3. Valuation of land. (a) In an exchange of Class 1 land for Class 2 or 3 land,
90.31the value of all the land shall be determined by the commissioner of natural resources,
90.32but the county board must approve the value determined for the Class 2 land, and the
90.33governmental subdivision of the state must approve the value determined for the Class 3
90.34land. In an exchange of Class 2 land for Class 3 land, the value of all the land shall be
91.1determined by the county board of the county in which the land lies, but the governmental
91.2subdivision of the state must approve the value determined for the Class 3 land.
91.3    (b) To determine the value of the land, the parties to the exchange may either (1)
91.4cause the land to be appraised, utilize the valuation process provided under section
91.584.0272, subdivision 3, or obtain a market analysis from a qualified real estate broker or
91.6(2) determine the value for each 40-acre tract or lot, or a portion thereof, using the most
91.7current township or county assessment schedules for similar land types from the county
91.8assessor of the county in which the lands are located. Merchantable timber value must
91.9should be determined and considered in finalizing valuation of the lands.
91.10    (b) All (c) Except for school trust lands and university lands, the lands exchanged
91.11under this section shall be exchanged only for lands of at least substantially equal value.
91.12For the purposes of this subdivision, "substantially equal value" has the meaning given
91.13under section 94.343, subdivision 3, paragraph (b). No payment is due either party if the
91.14lands, other than school trust lands or university lands, are of substantially equal value but
91.15are not of the same value.
91.16(d) School trust lands and university lands exchanged under this section must be
91.17exchanged only for lands of equal or greater value.

91.18    Sec. 13. Minnesota Statutes 2014, section 94.3495, subdivision 7, is amended to read:
91.19    Subd. 7. Reversionary interest; Mineral and water power rights and other
91.20reservations. (a) All deeds conveying land given in an expedited land exchange under
91.21this section shall include a reverter that provides that title to the land automatically reverts
91.22to the conveying governmental unit if:
91.23    (1) the receiving governmental unit sells, exchanges, or otherwise transfers title of
91.24the land within 40 years of the date of the deed conveying ownership; and
91.25    (2) there is no prior written approval for the transfer from the conveying
91.26governmental unit. The authority for granting approval is the commissioner of natural
91.27resources for former Class 1 land, the county board for former Class 2 land, and the
91.28governing body for former Class 3 land.
91.29    (b) Class 1 land given in exchange is subject to the reservation provisions of section
91.3094.343, subdivision 4 . Class 2 land given in exchange is subject to the reservation
91.31provisions of section 94.344, subdivision 4. County fee land given in exchange is subject
91.32to the reservation provisions of section 373.01, subdivision 1, paragraph (g).

91.33    Sec. 14. Minnesota Statutes 2014, section 97A.405, subdivision 2, is amended to read:
92.1    Subd. 2. Personal possession. (a) A person acting under a license or traveling from
92.2an area where a licensed activity was performed must have in personal possession either:
92.3(1) the proper license, if the license has been issued to and received by the person; (2) a
92.4driver's license or Minnesota identification card issued under section 171.07, subdivision
92.519, that has a valid written designation of the proper lifetime license; or (2) (3) the proper
92.6license identification number or stamp validation, if the license has been sold to the person
92.7by electronic means but the actual license has not been issued and received.
92.8    (b) If possession of a license or a license identification number is required, a person
92.9must exhibit, as requested by a conservation officer or peace officer, either: (1) the
92.10proper license if the license has been issued to and received by the person; (2) a driver's
92.11license or Minnesota identification card issued under section 171.07, subdivision 19,
92.12that has a valid written designation of the proper lifetime license; or (2) (3) the proper
92.13license identification number or stamp validation and a valid state driver's license, state
92.14identification card, or other form of identification provided by the commissioner, if the
92.15license has been sold to the person by electronic means but the actual license has not been
92.16issued and received. A person charged with violating the license possession requirement
92.17shall not be convicted if the person produces in court or the office of the arresting officer,
92.18the actual license previously issued to that person, which was valid at the time of arrest,
92.19or satisfactory proof that at the time of the arrest the person was validly licensed. Upon
92.20request of a conservation officer or peace officer, a licensee shall write the licensee's name
92.21in the presence of the officer to determine the identity of the licensee.
92.22    (c) Except as provided in paragraph (a), clause (2), if the actual license has been
92.23issued and received, a receipt for license fees, a copy of a license, or evidence showing the
92.24issuance of a license, including the license identification number or stamp validation, does
92.25not entitle a licensee to exercise the rights or privileges conferred by a license.
92.26    (d) A license issued electronically and not immediately provided to the licensee shall
92.27be mailed to the licensee within 30 days of purchase of the license. A pictorial migratory
92.28waterfowl, pheasant, trout and salmon, or walleye stamp shall be provided to the licensee
92.29after purchase of a stamp validation only if the licensee pays an additional fee that covers
92.30the costs of producing and mailing a pictorial stamp. A pictorial turkey stamp may be
92.31purchased for a fee that covers the costs of producing and mailing the pictorial stamp.
92.32Notwithstanding section 16A.1283, the commissioner may, by written order published in
92.33the State Register, establish fees for providing the pictorial stamps. The fees must be set in
92.34an amount that does not recover significantly more or less than the cost of producing and
92.35mailing the stamps. The fees are not subject to the rulemaking provisions of chapter 14,
92.36and section 14.386 does not apply.
93.1EFFECTIVE DATE.This section is effective January 1, 2018, or on the date
93.2the Department of Public Safety implements the Minnesota Licensing and Registration
93.3System (MNLARS), whichever occurs first.

93.4    Sec. 15. Minnesota Statutes 2014, section 97A.465, is amended by adding a
93.5subdivision to read:
93.6    Subd. 8. Nonresident members of National Guard. A nonresident that is a
93.7member of the state's National Guard may obtain a resident license to take fish or game.
93.8This subdivision does not apply to the taking of moose or elk.

93.9    Sec. 16. Minnesota Statutes 2014, section 171.07, is amended by adding a subdivision
93.10to read:
93.11    Subd. 19. Resident lifetime game and fish license. (a) The department shall
93.12maintain in its records information transmitted electronically from the commissioner of
93.13natural resources identifying each person to whom the commissioner has issued a resident
93.14lifetime license under section 97A.473. The records transmitted from the Department of
93.15Natural Resources must contain:
93.16(1) the full name and date of birth as required for the driver's license or identification
93.17card;
93.18(2) the category of lifetime license issued under section 97A.473; and
93.19(3) the Department of Natural Resources lifetime license number.
93.20Records that are not matched to a driver's license or identification card record may
93.21be deleted after seven years.
93.22(b) After receiving information under paragraph (a) that a person has received
93.23a lifetime license, the department shall include, on all drivers' licenses or Minnesota
93.24identification cards subsequently issued to the person, a written designation that the person
93.25has a lifetime license, the category of the lifetime license issued, and the Department of
93.26Natural Resources lifetime license number.
93.27(c) If a person who has received a lifetime license under section 97A.473 applies
93.28for a driver's license or Minnesota identification card before that information has been
93.29transmitted to the department, the department may accept a copy of the license issued
93.30under section 97A.473 as proof of its issuance and shall then follow the procedures in
93.31paragraph (b).
93.32EFFECTIVE DATE.This section is effective January 1, 2018, or on the date
93.33the Department of Public Safety implements the Minnesota Licensing and Registration
93.34System (MNLARS), whichever occurs first.

94.1    Sec. 17. Laws 2000, chapter 486, section 4, as amended by Laws 2001, chapter 182,
94.2section 2, is amended to read:
94.3    Sec. 4. [BOATHOUSE LEASES; SOUDAN UNDERGROUND MINE STATE
94.4PARK.]
94.5    (a) In 1965, United States Steel Corporation conveyed land to the state of Minnesota
94.6that was included in the Soudan underground mine state park, with certain lands at Stuntz
94.7Bay subject to leases outstanding for employee boathouse sites.
94.8    (b) Notwithstanding Minnesota Statutes, sections 85.011, 85.012, subdivision 1, and
94.986A.05, subdivision 2 , upon the expiration of a boathouse lease described under paragraph
94.10(a), the commissioner of natural resources shall offer a new lease to the party in possession
94.11at the time of lease expiration, or, if there has been a miscellaneous lease issued by the
94.12Department of Natural Resources due to expiration of a lease described under paragraph
94.13(a), upon its expiration to the lessee. The new lease shall be issued under the terms and
94.14conditions of Minnesota Statutes, section 92.50, with the following limitations:
94.15    (1) the term of the lease shall be for the lifetime of the party being issued a renewed
94.16lease and, if transferred, for the lifetime of the party to whom the lease is transferred;
94.17    (2) the new lease shall provide that the lease may be transferred only once and the
94.18transfer must be to a person within the third degree of kindred or first cousin according to
94.19civil law; and
94.20    (3) the commissioner shall limit the number of lessees per lease to no more than two
94.21persons who have attained legal age; and
94.22    (4) the lease amount must not exceed 50 percent of the average market rate, based
94.23on comparable private lease rates adjusted every five years.
94.24At the time of the new lease, the commissioner may offer, and after agreement with the
94.25leaseholder, lease equivalent alternative sites to the leaseholder.
94.26    (c) The commissioner shall not cancel a boathouse lease described under paragraphs
94.27(a) and (b) except for noncompliance with the lease agreement.
94.28(d) The commissioner must issue a written receipt to the lessee for each lease
94.29payment.
94.30    (d) (e) By January 15, 2001, the commissioner of natural resources shall report to
94.31the senate and house environment and natural resources policy and finance committees on
94.32boathouse leases in state parks. The report shall include information on:
94.33    (1) the number of boathouse leases;
94.34    (2) the number of leases that have forfeited;
94.35    (3) the expiration dates of the leases;
94.36    (4) the historical significance of the boathouses;
95.1    (5) recommendations on the inclusion of the land described in paragraph (d) within
95.2the park boundary; and
95.3    (6) any other relevant information on the leases.
95.4    (e) (f) The commissioner of natural resources shall contact U.S.X. Corporation and
95.5local units of government regarding the inclusion of the following lands within Soudan
95.6underground mine state park:
95.7    (1) all lands located South of Vermillion Lake shoreline in Section 13, Township
95.862 North, Range 15 West;
95.9    (2) all lands located South of Vermillion Lake shoreline in the S1/2-SE1/4 of Section
95.1014, Township 62 North, Range 15 West;
95.11    (3) NE1/4-SE1/4 and E1/2-NE1/4 of Section 22, Township 62 North, Range 15 West;
95.12    (4) all lands located South of Vermillion Lake shoreline in Section 23, Township
95.1362 North, Range 15 West;
95.14    (5) all of Section 24, Township 62 North, Range 15 West;
95.15    (6) all lands North of trunk highway No. 169 located in Section 25, Township
95.1662 North, Range 15 West;
95.17    (7) all lands North of trunk highway No. 169 located in Section 26, Township
95.1862 North, Range 15 West;
95.19    (8) NE1/4-SE1/4 and SE1/4-NE1/4 of Section 27, Township 62 North, Range 15
95.20West; and
95.21    (9) NW1/4 of Section 19, Township 62 North, Range 14 West.
95.22EFFECTIVE DATE.This section is effective the day following final enactment
95.23and applies to monthly lease payments made on or after that date.

95.24    Sec. 18. Laws 2014, chapter 312, article 12, section 6, subdivision 5, as amended by
95.25Laws 2015, First Special Session chapter 4, article 3, section 11, is amended to read:

95.26 95.27

Subd. 5.Fish and Wildlife Management

-0-

2,412,000

95.28$3,000 in 2015 is from the heritage
95.29enhancement account in the game and fish
95.30fund for a report on aquatic plant management
95.31permitting policies for the management
95.32of narrow-leaved and hybrid cattail in a
95.33range of basin types across the state. The
95.34report shall be submitted to the chairs and
95.35ranking minority members of the house of
96.1representatives and senate committees with
96.2jurisdiction over environment and natural
96.3resources by December 15, 2014, and include
96.4recommendations for any necessary changes
96.5in statutes, rules, or permitting procedures.
96.6This is a onetime appropriation.
96.7$9,000 in 2015 is from the game and fish
96.8fund for the commissioner, in consultation
96.9with interested parties, agencies, and other
96.10states, to develop a detailed restoration plan
96.11to recover the historical native population of
96.12bobwhite quail in Minnesota for its ecological
96.13and recreational benefits to the citizens of the
96.14state. The commissioner shall conduct public
96.15meetings in developing the plan. No later
96.16than January 15, 2015, the commissioner
96.17must report on the plan's progress to the
96.18legislative committees with jurisdiction over
96.19environment and natural resources policy
96.20and finance. This is a onetime appropriation.
96.21$2,000,000 in 2015 is from the game and
96.22fish fund for shooting sports facility grants
96.23under Minnesota Statutes, section 87A.10.
96.24The commissioner may spend up to $50,000
96.25of this appropriation to administer the grant.
96.26This is a onetime appropriation and is
96.27available until June 30, 2017.
96.28$400,000 in 2015 is from the heritage
96.29enhancement account in the game and fish
96.30fund for hunter and angler recruitment
96.31and retention activities and grants to local
96.32chapters of Let's Go Fishing of Minnesota
96.33to provide community outreach to senior
96.34citizens, youth, and veterans and for the costs
96.35associated with establishing and recruiting
97.1new chapters. The grants must be matched
97.2with cash or in-kind contributions from
97.3nonstate sources. Of this amount, $25,000
97.4is for Asian Outdoor Heritage for youth
97.5fishing recruitment efforts and outreach in
97.6the metropolitan area. The commissioner
97.7shall establish a grant application process
97.8that includes a standard for ownership
97.9of equipment purchased under the grant
97.10program and contract requirements that
97.11cover the disposition of purchased equipment
97.12if the grantee no longer exists. Any
97.13equipment purchased with state grant money
97.14must be specified on the grant application
97.15and approved by the commissioner. The
97.16commissioner may spend up to three percent
97.17of the appropriation to administer the grant.
97.18This is a onetime appropriation and is
97.19available until June 30, 2016 2017.

97.20    Sec. 19. Laws 2015, First Special Session chapter 4, article 3, section 3, subdivision 5,
97.21is amended to read:

97.22

Subd. 5.Parks and Trails Management

74,064,000

73,650,000

97.23	Appropriations by Fund
97.24		2016	2017
97.25	General	24,967,000	24,427,000
97.26	Natural Resources	46,831,000	46,950,000
97.27	Game and Fish	2,266,000	2,273,000

97.28$1,075,000 the first year and $1,075,000 the
97.29second year are from the water recreation
97.30account in the natural resources fund for
97.31enhancing public water access facilities.
97.32$5,740,000 the first year and $5,740,000 the
97.33second year are from the natural resources
97.34fund for state trail, park, and recreation area
97.35operations. This appropriation is from the
98.1revenue deposited in the natural resources
98.2fund under Minnesota Statutes, section
98.3297A.94 , paragraph (e), clause (2).
98.4$1,005,000 the first year and $1,005,000 the
98.5second year are from the natural resources
98.6fund for park and trail grants to local units of
98.7government on land to be maintained for at
98.8least 20 years for the purposes of the grants.
98.9This appropriation is from the revenue
98.10deposited in the natural resources fund
98.11under Minnesota Statutes, section 297A.94,
98.12paragraph (e), clause (4). Any unencumbered
98.13balance does not cancel at the end of the first
98.14year and is available for the second year. Up
98.15to 2.5 percent of this appropriation may be
98.16used to administer the grants.
98.17$8,424,000 the first year and $8,424,000
98.18the second year are from the snowmobile
98.19trails and enforcement account in the
98.20natural resources fund for the snowmobile
98.21grants-in-aid program. Any unencumbered
98.22balance does not cancel at the end of the first
98.23year and is available for the second year.
98.24$1,360,000 the first year and $1,360,000
98.25the second year are from the natural
98.26resources fund for the off-highway vehicle
98.27grants-in-aid program. Of this amount,
98.28$1,210,000 each year is from the all-terrain
98.29vehicle account; and $150,000 each year is
98.30from the off-highway motorcycle account.
98.31Any unencumbered balance does not cancel
98.32at the end of the first year and is available for
98.33the second year.
98.34$75,000 the first year and $75,000 the second
98.35year are from the cross-country ski account
99.1in the natural resources fund for grooming
99.2and maintaining cross-country ski trails in
99.3state parks, trails, and recreation areas.
99.4$250,000 the first year and $250,000 the
99.5second year are from the state land and
99.6water conservation account (LAWCON)
99.7in the natural resources fund for priorities
99.8established by the commissioner for eligible
99.9state projects and administrative and
99.10planning activities consistent with Minnesota
99.11Statutes, section 84.0264, and the federal
99.12Land and Water Conservation Fund Act.
99.13Any unencumbered balance does not cancel
99.14at the end of the first year and is available for
99.15the second year.
99.16$968,000 the first year and $968,000 the
99.17second year are from the off-road vehicle
99.18account in the natural resources fund. Of
99.19this amount, $568,000 each year is for parks
99.20and trails management for off-road vehicle
99.21purposes; $325,000 each year is for the
99.22off-road vehicle grant in aid program; and
99.23$75,000 each year is for a new full-time
99.24employee position or contract in northern
99.25Minnesota to work in conjunction with the
99.26Minnesota Four-Wheel Drive Association
99.27to address off-road vehicle touring routes
99.28and other issues related to off-road vehicle
99.29activities. Of this appropriation, the $325,000
99.30each year is onetime.
99.31$65,000 the first year is from the water
99.32recreation account in the natural resources
99.33fund to cooperate with local units of
99.34government in marking routes and
99.35designating river accesses and campsites
100.1under Minnesota Statutes, section 85.32.
100.2This is a onetime appropriation and is
100.3available until June 30, 2019.
100.4$190,000 the first year is for a grant to the
100.5city of Virginia for the additional cost of
100.6supporting a trail due to the rerouting of
100.7U.S. Highway No. 53. This is a onetime
100.8appropriation and is available until June 30,
100.92019.
100.10$50,000 the first year is for development of
100.11a master plan for the Mississippi Blufflands
100.12Trail, including work on possible extensions
100.13or connections to other state or regional
100.14trails. This is a onetime appropriation that is
100.15available until June 30, 2017.
100.16$61,000 from the natural resources fund the
100.17first year is for a grant to the city of East
100.18Grand Forks for payment under a reciprocity
100.19agreement for the Red River State Recreation
100.20Area.
100.21$500,000 the first year is for restoration or
100.22replacement of a historic trestle bridge in
100.23Blackduck. This is a onetime appropriation
100.24and is available until June 30, 2019.
100.25The base for parks and trails operations in
100.26the natural resources fund in fiscal year 2018
100.27and thereafter is $46,450,000.
100.28EFFECTIVE DATE.This section is effective the day following final enactment.

100.29    Sec. 20. Laws 2015, First Special Session chapter 4, article 4, section 131, is amended
100.30to read:
100.31    Sec. 131. SURPLUS STATE LAND SALES.
100.32The school trust lands director shall identify, in consultation with the commissioner
100.33of natural resources, at least $5,000,000 in state-owned lands suitable for sale or exchange
101.1with school trust lands. The lands identified shall not be within a unit of the outdoor
101.2recreation system under Minnesota Statutes, section 86A.05, an administrative site, or trust
101.3land. The commissioner shall sell or exchange at least $3,000,000 worth of lands identified
101.4under this section by June 30, 2017. Land exchanged under this section may be exchanged
101.5in accordance with Minnesota Statutes, section 94.3495. The value of the surplus land
101.6exchanged shall serve as compensation to the permanent school fund as provided under
101.7Minnesota Statutes, section 84.027, subdivision 18, paragraph (b). Notwithstanding the
101.8restrictions on sale of riparian land and the public sale provisions under Minnesota
101.9Statutes, sections 92.45, 94.09, and 94.10, the commissioner may offer the surplus land,
101.10including land bordering public water, for public or private sale. Notwithstanding
101.11Minnesota Statutes, section 94.16, subdivision 3, or any other law to the contrary, the
101.12amount of the proceeds from the sale of lands that exceeds the actual expenses of selling
101.13the lands must be deposited in the school trust lands account and used to extinguish the
101.14school trust interest as provided under Minnesota Statutes, section 92.83, on school trust
101.15lands that have public water access sites or old growth forests located on them.

101.16    Sec. 21. COLD SPRING WATER APPROPRIATION PERMITS; REPORT.
101.17(a) The commissioner of natural resources shall amend the city of Cold Spring's
101.18water appropriation permit to allow an increase in the city's water withdrawal of 100
101.19million gallons per year from city wells 4, 5, and 6, provided a combined reduction of
101.20ten million gallons per year is made from city well 3 or water appropriations under any
101.21permits held by brewing companies in the Cold Spring Creek area. The city and any other
101.22permit holder with permit modifications made under this section must comply with all
101.23existing reporting requirements and demonstrate that increased pumping does not result in
101.24violations of the Safe Drinking Water Act. The increases under this section are available
101.25on an interim basis, not to exceed five years, to allow the city to establish a long-term
101.26water supply solution for the city and area businesses.
101.27(b) The commissioner must conduct necessary monitoring of stream flow and water
101.28levels and develop a groundwater model to determine the amount of water that can be
101.29sustainably pumped in the area of Cold Spring Creek for area businesses, agriculture, and
101.30city needs. Beginning July 1, 2017, the commissioner must submit an annual progress
101.31report to the chairs and ranking minority members of the house of representatives and
101.32senate committees and divisions with jurisdiction over environment and natural resources.
101.33The commissioner must submit a final report by January 15, 2022.

101.34    Sec. 22. APPROPRIATION REALLOCATION.
102.1Notwithstanding Laws 2013, chapter 137, article 3, section 4, paragraph (o), and
102.2Laws 2015, First Special Session chapter 2, article 3, section 4, paragraph (b), the
102.3Minneapolis Park and Recreation Board may allocate its share of the distribution of fiscal
102.4years 2016 and 2017 funds under Minnesota Statutes, section 85.53, subdivision 3, to the
102.5Minneapolis Chain of Lakes, Mississippi Gorge, Above the Falls, and Central Mississippi
102.6Riverfront Regional Parks in accordance with the most recent priority rankings that the
102.7Minneapolis Park and Recreation Board has submitted to the Metropolitan Council. This
102.8reallocation of funds is anticipated to result in $500,000 in federal funds to match extant
102.9parks and trails fund appropriations.
102.10EFFECTIVE DATE.This section is effective the day following final enactment.

102.11ARTICLE 5

102.12BROADBAND

102.13

Section 1. APPROPRIATIONS.

102.14    The sums shown in the columns under "Appropriations" are added to or, if shown
102.15in parentheses, subtracted from the appropriations in Laws 2015, First Special Session
102.16chapter 1, article 1, or other law to the specified agencies. The appropriations are from the
102.17general fund, or another named fund, and are available for the fiscal years indicated for
102.18each purpose. The figure "2017" used in this article means that the appropriations listed
102.19under it are available for the fiscal year ending June 30, 2017.

102.20				APPROPRIATIONS
102.21				Available for the Year
102.22				Ending June 30
102.23					2016		2017

102.24 102.25

Sec. 2. DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT.

$

-0-

$

85,000,000

102.26Border-To-Border Broadband
102.27Development Program. (a) $85,000,000
102.28in fiscal year 2017 is appropriated to
102.29the commissioner of employment and
102.30economic development for deposit in the
102.31border-to-border broadband fund account
102.32created under Minnesota Statutes, section
102.33116J.396, and may be used for the purposes
103.1provided in Minnesota Statutes, section
103.2116J.395. This is a onetime appropriation.
103.3(b) Of the appropriation in paragraph (a),
103.4the commissioner may include the following
103.5activities related to measuring progress
103.6toward the state's broadband goals established
103.7in Minnesota Statutes, section 237.012,
103.8as administrative costs under Minnesota
103.9Statutes, section 116J.395. Administrative
103.10costs may include the following activities
103.11related to measuring progress toward the
103.12state's broadband goals established in
103.13Minnesota Statutes, section 237.012:
103.14(1) collecting broadband deployment data
103.15from Minnesota providers, verifying its
103.16accuracy through on-the-ground testing, and
103.17creating state and county maps available
103.18to the public showing the availability of
103.19broadband service at various upload and
103.20download speeds throughout Minnesota;
103.21(2) analyzing the deployment data collected
103.22to help inform future investments in
103.23broadband infrastructure; and
103.24(3) conducting business and residential
103.25surveys that measure broadband adoption
103.26and use in the state.
103.27(c) Data provided by a broadband provider
103.28under this paragraph is nonpublic data
103.29under Minnesota Statutes, section 13.02,
103.30subdivision 9. Maps produced under this
103.31paragraph are public data under Minnesota
103.32Statutes, section 13.03.

103.33    Sec. 3. Minnesota Statutes 2015 Supplement, section 116J.394, is amended to read:
103.34116J.394 DEFINITIONS.
104.1(a) For the purposes of sections 116J.394 to 116J.396, the following terms have
104.2the meanings given them.
104.3(b) "Broadband" or "broadband service" has the meaning given in section 116J.39,
104.4subdivision 1, paragraph (b).
104.5(c) "Broadband infrastructure" means networks of deployed telecommunications
104.6equipment and technologies necessary to provide high-speed Internet access and other
104.7advanced telecommunications services for end users.
104.8(d) "Commissioner" means the commissioner of employment and economic
104.9development.
104.10(e) "Last-mile infrastructure" means broadband infrastructure that serves as the
104.11final leg connecting the broadband service provider's network to the end-use customer's
104.12on-premises telecommunications equipment.
104.13(f) "Middle-mile infrastructure" means broadband infrastructure that links a
104.14broadband service provider's core network infrastructure to last-mile infrastructure.
104.15(g) "Political subdivision" means any county, city, town, school district, special
104.16district or other political subdivision, or public corporation.
104.17(h) "Underserved areas" means areas of Minnesota in which households or
104.18businesses lack access to wire-line broadband service at speeds that meet the state
104.19broadband goals of ten to 20 at least 100 megabits per second download and five to ten
104.20at least 20 megabits per second upload.
104.21(i) "Unserved areas" means areas of Minnesota in which households or businesses
104.22lack access to wire-line broadband service, as defined in section 116J.39 at speeds of at
104.23least 25 megabits per second download and at least three megabits per second upload.

104.24    Sec. 4. Minnesota Statutes 2014, section 116J.396, subdivision 2, is amended to read:
104.25    Subd. 2. Expenditures. Money in the account may be used only:
104.26(1) for grant awards made under section 116J.395, including costs incurred by the
104.27Department of Employment and Economic Development to administer that section not
104.28to exceed three percent of any expenditures made from the border-to-border broadband
104.29fund account;
104.30(2) to supplement revenues raised by bonds sold by local units of government for
104.31broadband infrastructure development; or
104.32(3) to contract for the collection of broadband deployment data from providers and
104.33the creation of maps showing the availability of broadband service.

104.34    Sec. 5. Minnesota Statutes 2014, section 237.012, subdivision 1, is amended to read:
105.1    Subdivision 1. Universal access and high-speed goal. It is a state goal that as
105.2soon as possible, but no later than 2015, all state residents and businesses have access to
105.3high-speed broadband that provides minimum download speeds of ten to 20 megabits per
105.4second and minimum upload speeds of five to ten megabits per second.:
105.5(1) no later than 2022, all Minnesota businesses and homes have access to
105.6high-speed broadband that provides minimum download speeds of at least 25 megabits
105.7per second and minimum upload speeds of at least three megabits per second; and
105.8(2) no later than 2026, all Minnesota businesses and homes have access to at least
105.9one provider of broadband with download speeds of at least 100 megabits per second and
105.10upload speeds of at least 20 megabits per second.

105.11ARTICLE 6

105.12EQUITY

105.13

Section 1. APPROPRIATIONS.

105.14The sums shown in the columns marked "Appropriations" are appropriated to the
105.15agencies and for the purposes specified in this article. The appropriations are from the
105.16general fund, or another named fund, and are available for the fiscal year indicated
105.17for each purpose. The figures "2016" and "2017" used in this article mean that the
105.18appropriations listed under them are available for the fiscal year ending June 30, 2016,
105.19or June 30, 2017, respectively.

105.20				APPROPRIATIONS
105.21				Available for the Year
105.22				Ending June 30
105.23					2016		2017

105.24

Sec. 2. EQUITY APPROPRIATIONS

105.25

Subdivision 1.Total Appropriation

$

-0-

$

87,130,000

105.26 105.27

Subd. 2.Department of Employment and Economic Development

-0-

60,557,000

105.28(a) $1,420,000 in fiscal year 2017 is for
105.29grants to the Neighborhood Development
105.30Center for small business programs. This is a
105.31onetime appropriation and is available until
105.32June 30, 2019.
105.33Of this amount, $770,000 is for the small
105.34business development program, including:
106.1(1) $600,000 for training, lending, and
106.2business services for aspiring business
106.3owners, and expansion of services for
106.4immigrants in suburban communities; and
106.5(2) $170,000 is for Neighborhood
106.6Development Center model outreach and
106.7training activities in greater Minnesota.
106.8Of this amount, $650,000 is for grants for the
106.9small business incubator program, including:
106.10(1) $400,000 for capital improvements to
106.11existing small business incubators; and
106.12(2) $250,000 for the creation of two
106.13additional small business incubators.
106.14(b) $2,500,000 in fiscal year 2017 is for
106.15the Minnesota Initiative program under
106.16Minnesota Statutes, section 116M.18.
106.17Priority for loans made from this
106.18appropriation shall be given to businesses
106.19operated by women of color. This is a
106.20onetime appropriation and is available until
106.21June 30, 2019.
106.22(c) $5,550,000 in fiscal year 2017 is for
106.23a competitive grant program to provide
106.24grants to organizations that provide support
106.25services for individuals, such as job training,
106.26employment preparation, internships,
106.27assistance to fathers in supporting their
106.28children, financial literacy, academic and
106.29behavioral interventions for low-performing
106.30students, and youth intervention. Grants
106.31made under this section must focus on
106.32low-income communities, young adults from
106.33families with a history of intergenerational
106.34poverty, and communities of color. All grant
106.35recipients are subject to the requirements of
107.1section 35. This is a onetime appropriation
107.2and is available until June 30, 2019.
107.3(d) $2,100,000 in fiscal year 2017 is for
107.4grants to YWCA organizations to provide job
107.5training services and workforce development
107.6programs and services, including job skills
107.7training and counseling necessary to secure
107.8a child development associate credential and
107.9to develop a career path in early childhood
107.10education. This is a onetime appropriation
107.11and is available until June 30, 2019.
107.12(e) $4,250,000 in fiscal year 2017 is for a
107.13grant to EMERGE Community Development,
107.14in collaboration with community partners, for
107.15services targeting Minnesota communities
107.16with the highest concentrations of African
107.17and African-American joblessness to provide
107.18employment readiness training, credentialed
107.19training placement, job placement and
107.20retention services, supportive services for
107.21hard-to-employ individuals, and a general
107.22education development fast track and
107.23adult diploma program. This is a onetime
107.24appropriation and is available until June 30,
107.252019.
107.26(f) $5,050,000 in fiscal year 2017 is for
107.27a grant to the Metropolitan Economic
107.28Development Association (MEDA) for
107.29statewide business development and
107.30assistance services, including services to
107.31entrepreneurs with businesses that have
107.32the potential to create job opportunities for
107.33unemployed and underemployed people. The
107.34grants must be awarded with an emphasis
107.35on minority-owned businesses. This is a
108.1onetime appropriation and is available until
108.2June 30, 2019.
108.3Of this appropriation, $3,250,000 is for a
108.4revolving loan fund to provide additional
108.5minority-owned businesses with access to
108.6capital.
108.7(g) $1,500,000 in fiscal year 2017 is for a
108.8grant to the Minneapolis Foundation for
108.9a strategic intervention program designed
108.10to target and connect program participants
108.11to meaningful, sustainable living-wage
108.12employment. This is a onetime appropriation
108.13and is available until June 30, 2019.
108.14(h) $407,000 in fiscal year 2017 is for a
108.15grant to Twin Cities R!SE, in collaboration
108.16with Metro Transit and Hennepin Technical
108.17College, for the Metro Transit technician
108.18training program. This is a onetime
108.19appropriation and is available until June 30,
108.202019.
108.21(i)_$4,800,000 in fiscal year 2017 is for
108.22the creation of additional multiemployer,
108.23sector-based career connections pathways.
108.24This is a onetime appropriation and is
108.25available until June 30, 2019. $4,500,000 of
108.26this amount is for a grant to Hennepin County
108.27to establish pathways using the Hennepin
108.28Career Connections framework. $300,000
108.29of this amount is for a grant to Hennepin
108.30County to establish a pilot program based on
108.31the career connections pathways framework
108.32outside the seven-county metropolitan area,
108.33in collaboration with another local unit of
108.34government.
109.1(j) $1,500,000 in fiscal year 2017 is for the
109.2high-wage, high-demand, nontraditional
109.3jobs grant program under Minnesota
109.4Statutes, section 116L.99. This is a onetime
109.5appropriation and is available until June 30,
109.62019.
109.7(k) $8,000,000 in fiscal year 2017 is for the
109.8youth-at-work competitive grant program
109.9under Minnesota Statutes, section 116L.562,
109.10subdivision 3. This is a onetime appropriation
109.11and is available until June 30, 2019. Of
109.12this amount, $6,000,000 is for increases to
109.13existing applicants who were awarded grants
109.14in fiscal year 2016 and 2017, and $2,000,000
109.15is to fund existing or new eligible applicants.
109.16(l) $4,000,000 in fiscal year 2017 is for a
109.17competitive grant program for grants to
109.18organizations providing services to relieve
109.19economic disparities in the Southeast Asian
109.20community through workforce recruitment,
109.21development, job creation, assistance of
109.22smaller organizations to increase capacity,
109.23and outreach. Grant recipients under this
109.24paragraph are subject to the requirements of
109.25section 35. This is a onetime appropriation
109.26and is available until June 30, 2019.
109.27(m) $1,500,000 in fiscal year 2017 is for
109.28a grant to Latino Communities United
109.29in Service (CLUES) to expand culturally
109.30tailored programs that address employment
109.31and education skill gaps for working parents
109.32and underserved youth by providing new
109.33job skills training to stimulate higher wages
109.34for low-income people, family support
109.35systems designed to reduce intergenerational
110.1poverty, and youth programming to promote
110.2educational advancement and career
110.3pathways. At least 50 percent of this amount
110.4must be used for programming targeted
110.5at greater Minnesota. This is a onetime
110.6appropriation and is available until June 30,
110.72019.
110.8(n) $880,000 in fiscal year 2017 is for a grant
110.9to the American Indian Opportunities and
110.10Industrialization Center, in collaboration
110.11with the Northwest Indian Community
110.12Development Center, to reduce academic
110.13disparities for American Indian students
110.14and adults. The grant funds may be used to
110.15provide:
110.16(1) student tutoring and testing support
110.17services;
110.18(2) training in information technology;
110.19(3) assistance in obtaining a GED;
110.20(4) remedial training leading to enrollment in
110.21a postsecondary higher education institution;
110.22(5) real-time work experience in information
110.23technology fields; and
110.24(6) contextualized adult basic education.
110.25This is a onetime appropriation and is
110.26available until June 30, 2019.
110.27(o) $1,000,000 in fiscal year 2017 is for
110.28a grant to the White Earth Nation for the
110.29White Earth Nation Integrated Business
110.30Development System to provide business
110.31assistance with workforce development,
110.32outreach, technical assistance, infrastructure
110.33and operational support, financing, and other
110.34business development activities. This is a
111.1onetime appropriation and is available until
111.2June 30, 2019.
111.3(p) $6,000,000 is for the emerging
111.4entrepreneur fund program. This is a onetime
111.5appropriation and is available until June 30,
111.62019. Of this amount, $5,000,000 is for
111.7small business lending and shall be deposited
111.8in the emerging entrepreneur fund special
111.9revenue account under Minnesota Statutes,
111.10section 116J.55, and $1,000,000 is for grants
111.11for small business technical assistance.
111.12(q) $5,100,000 is for the Pathways to
111.13Prosperity adult workforce development
111.14competitive grant program. When
111.15awarding grants under this paragraph, the
111.16commissioner must give preference to any
111.17previous grantee with demonstrated success
111.18in job training and placement for hard-to-train
111.19individuals. A portion of the grants must
111.20provide year-end educational and experiential
111.21learning opportunities for teens and young
111.22adults that provide careers in the construction
111.23industry. This is a onetime appropriation and
111.24is available until June 30, 2019.
111.25(r) $3,000,000 is for the capacity
111.26building grant program to assist nonprofit
111.27organizations offering or seeking to offer
111.28workforce development and economic
111.29development programming. This is a
111.30onetime appropriation and is available until
111.31June 30, 2019.
111.32(s) $2,000,000 in fiscal year 2017 is for a grant
111.33to Youthprise for positive youth development,
111.34community engagement, legal services, and
111.35capacity building for community-based
112.1organizations serving Somali youth,
112.2including youth engagement, prevention,
112.3and intervention activities that help build
112.4the resiliency of the Somali Minnesotan
112.5community and address challenges facing
112.6Somali youth. Funded projects must provide
112.7culturally and linguistically relevant services.
112.8To the maximum extent possible, 50 percent
112.9of the funding must be distributed in greater
112.10Minnesota, and 50 percent of funding must
112.11be distributed within the metropolitan area,
112.12as defined in Minnesota Statutes, section
112.13473.121, subdivision 2. This is a onetime
112.14appropriation and is available until June 30,
112.152019.

112.16

Subd. 3.Department of Administration

-0-

2,500,000

112.17$2,500,000 is to assess, upgrade, and enhance
112.18accounting and procurement software to
112.19facilitate targeted group business utilization
112.20and data reporting. This is a onetime
112.21appropriation and is available until June 30,
112.222019.

112.23

Subd. 4.Department of Corrections

-0-

350,000

112.24$350,000 is for a grant to a nonprofit
112.25organization to provide job skills training
112.26to individuals who have been released from
112.27incarceration for a felony-level offense in the
112.28preceding 12 months. To be eligible for the
112.29grant, the organization shall:
112.30(1) provide housing or rental assistance for
112.31program participants;
112.32(2) provide employment opportunities for
112.33program participants;
113.1(3) require program participants, when
113.2appropriate, to receive counseling for alcohol
113.3or chemical dependency; and
113.4(4) serve a primarily minority population.
113.5This is a onetime appropriation and is
113.6available until June 30, 2019.

113.7

Subd. 5.Minnesota Housing Finance Agency

-0-

500,000

113.8$500,000 is for a grant to Build Wealth MN to
113.9provide a family stabilization plan program
113.10including program outreach, financial
113.11literacy education, and budget and debt
113.12counseling. This is a onetime appropriation
113.13and is available until June 30, 2019.

113.14

Subd. 6.Department of Agriculture

-0-

5,000,000

113.15$5,000,000 shall be deposited in the good
113.16food access account created in Minnesota
113.17Statutes, section 17.1017, subdivision 3. This
113.18is a onetime appropriation and is available
113.19until June 30, 2019.

113.20

Subd. 7.Department of Education

-0-

10,200,000

113.21(a) $1,500,000 in fiscal year 2017 is for a first
113.22class city school district or any other school
113.23district with more than 40 percent minority
113.24students to provide tuition scholarships
113.25or stipends to eligible employees for a
113.26nonconventional teacher residency pilot
113.27program established under Minnesota
113.28Statutes, section 122A.09, subdivision 10,
113.29paragraph (a). The program shall provide
113.30tuition scholarships or stipends to enable
113.31education or teaching assistants or other
113.32nonlicensed employees of a first class city
113.33school district or any other school district
113.34with more than 40 percent minority students
114.1who hold a bachelor's degree from an
114.2accredited college or university and who seek
114.3an education license to participate in a Board
114.4of Teaching-approved nonconventional
114.5teacher residency program under Minnesota
114.6Statutes, section 122A.09, subdivision 10,
114.7paragraph (a). Any funds not awarded by
114.8June 1, 2017, may be reallocated among the
114.9remaining districts if the total cost of the
114.10program exceeds the original allocation. This
114.11is a onetime appropriation and is available
114.12until June 30, 2019.
114.13(b) $3,200,000 in fiscal year 2017 is for grants
114.14as provided under this paragraph. This is a
114.15onetime appropriation and is available until
114.16June 30, 2019. Of this amount, $1,200,000
114.17is for grants to adult basic education (ABE)
114.18program providers to establish up to four
114.19college readiness academies. A college
114.20readiness academy is a partnership between
114.21ABE programs, with support from Minnesota
114.22State Colleges and Universities, to prepare
114.23ABE students to successfully enter college
114.24and complete credit-bearing courses needed
114.25for career-related credentials. The academies
114.26must include academic skill building for
114.27college success, integrated sector-specific
114.28academic training when applicable, and
114.29intensive navigation and educational
114.30support for the program participants. The
114.31commissioner must award one grant to the
114.32International Institute of Minnesota. The
114.33remaining grant awards must be based on the
114.34following criteria:
114.35(1) program capacity;
115.1(2) program need for funding; and
115.2(3) geographic balance of programs around
115.3the state.
115.4Of the amount appropriated under this
115.5paragraph, $1,200,000 is for grants to
115.6ABE program providers that establish
115.7a contextualized GED or adult diploma
115.8program to prepare adults for successful
115.9GED or adult diploma completion and
115.10successful entry into credentialing programs
115.11leading to careers. The programs must:
115.12(1) provide program navigation and academic
115.13supports;
115.14(2) be connected to an ABE consortium and
115.15partner with the Department of Employment
115.16and Economic Development;
115.17(3) provide instruction in one of the state's six
115.18demand sectors identified by the Department
115.19of Employment and Economic Development,
115.20serving participants in the top three ABE
115.21levels of ABE intermediate high, adult
115.22secondary education (ASE) low, or ASE
115.23high;
115.24(4) have a history of success working with
115.25the target populations; and
115.26(5) demonstrate how a GED or an adult
115.27diploma plus the designated postsecondary
115.28credential will lead to a career.
115.29The commissioner shall award grants to
115.30four contextualized GED or adult diploma
115.31programs based on program capacity, need,
115.32and geographic balance of programs around
115.33the state. One grant must be awarded to
115.34Summit Academy OIC.
116.1Of the amount appropriated under this
116.2paragraph, $800,000 is for grants to eight
116.3ABE programs to provide ABE navigating
116.4and advising support services. The programs
116.5must help ABE students:
116.6(1) explore careers;
116.7(2) develop personalized learning;
116.8(3) plan for a postsecondary education and
116.9career;
116.10(4) attain personal learning goals;
116.11(5) complete a standard adult high school
116.12diploma under Minnesota Statutes, section
116.13124D.52, subdivisions 8 and 9, or complete
116.14a GED;
116.15(6) develop time management and study
116.16skills;
116.17(7) develop critical academic and
116.18career-related skills needed to enroll in a
116.19postsecondary program without need for
116.20remediation;
116.21(8) navigate the registration process for a
116.22postsecondary program;
116.23(9) understand postsecondary program
116.24requirements and instruction expectations;
116.25and
116.26(10) resolve personal issues related to mental
116.27health, domestic abuse, chemical abuse,
116.28homelessness, and other issues that, if left
116.29unaddressed, are barriers to enrolling in and
116.30completing a postsecondary program.
116.31The commissioner must award ABE
116.32navigating and advising support services
116.33grants to eight ABE programs. The
117.1commissioner shall award grants to programs
117.2based on program capacity, need, and
117.3geographic balance of programs around
117.4the state. The commissioner shall give
117.5priority to ABE programs already providing
117.6navigating and advising support services.
117.7The commissioner shall allocate the grant
117.8funding based on the number of ABE
117.9program participants the program served in
117.10the prior year.
117.11(c) $2,750,000 is for the Minnesota's
117.12future teachers grant program under
117.13Minnesota Statutes, section 136A.123.
117.14The commissioner of management and
117.15budget shall transfer this amount to the
117.16Office of Higher Education for the purposes
117.17of this appropriation. This is a onetime
117.18appropriation and is available until June 30,
117.192019.
117.20(d) $2,750,000 is for the stepping up for kids
117.21financial assistance account under section
117.2233. The commissioner of management and
117.23budget shall transfer this amount to the
117.24Office of Higher Education for the purposes
117.25of this appropriation. This is a onetime
117.26appropriation and is available until June 30,
117.272019.

117.28

Subd. 8.Minnesota Management and Budget

-0-

3,615,000

117.29$3,615,000 is for administrative expenses
117.30related to grants appropriated in this article.
117.31The commissioner shall transfer funds in an
117.32amount to be determined by the commissioner
117.33to agencies administering competitive grant
117.34programs and serving as fiscal agents for
117.35grants appropriated in this article. The
118.1transfer to each agency may not exceed four
118.2percent of the amount appropriated to that
118.3agency. This is a onetime appropriation and
118.4is available until June 30, 2019.

118.5

Subd. 9.Department of Human Services

-0-

8,000

118.6$8,000 is for the MAXIS system. This is a
118.7onetime appropriation.

118.8    Sec. 3. Minnesota Statutes 2014, section 16C.10, subdivision 6, is amended to read:
118.9    Subd. 6. Expenditures under specified amounts. A competitive solicitation
118.10process described in this chapter is not required for the acquisition of goods, services,
118.11construction, and utilities in an amount of $5,000 or less or as authorized by section
118.1216C.16, subdivisions 6, paragraph (b), 6a, paragraph (b), and 7, paragraph (b).

118.13    Sec. 4. Minnesota Statutes 2014, section 16C.16, subdivision 6, is amended to read:
118.14    Subd. 6. Purchasing methods. (a) The commissioner may award up to a six
118.15percent preference in the amount bid for specified goods or services to small targeted
118.16group businesses.
118.17(b) The commissioner may award a contract for goods, services, or construction
118.18directly to a small business or small targeted group business without going through a
118.19competitive solicitation process up to a total contract award value, including extension
118.20options, of $25,000.
118.21(b) (c) The commissioner may designate a purchase of goods or services for
118.22award only to small businesses or small targeted group businesses if the commissioner
118.23determines that at least three small businesses or small targeted group businesses are likely
118.24to bid respond to a solicitation.
118.25(c) (d) The commissioner, as a condition of awarding a construction contract or
118.26approving a contract for professional or technical services, may set goals that require
118.27the prime contractor to subcontract a portion of the contract to small businesses or
118.28small targeted group businesses. The commissioner must establish a procedure for
118.29granting waivers from the subcontracting requirement when qualified small businesses
118.30or small targeted group businesses are not reasonably available. The commissioner may
118.31establish financial incentives for prime contractors who exceed the goals for use of small
118.32business or small targeted group business subcontractors and financial penalties for prime
118.33contractors who fail to meet goals under this paragraph. The subcontracting requirements
119.1of this paragraph do not apply to prime contractors who are small businesses or small
119.2targeted group businesses.

119.3    Sec. 5. Minnesota Statutes 2015 Supplement, section 16C.16, subdivision 6a, is
119.4amended to read:
119.5    Subd. 6a. Veteran-owned small businesses. (a) Except when mandated by the
119.6federal government as a condition of receiving federal funds, the commissioner shall
119.7award up to a six percent preference, but no less than the percentage awarded to any
119.8other group under this section, in the amount bid on state procurement to certified small
119.9businesses that are majority-owned and operated by veterans.
119.10(b) The commissioner may award a contract for goods, services, or construction
119.11directly to a veteran-owned small business without going through a competitive solicitation
119.12process up to a total contract award value, including extension options, of $25,000.
119.13(c) The commissioner may designate a purchase of goods or services for award only
119.14to a veteran-owned small business if the commissioner determines that at least three
119.15veteran-owned small businesses are likely to respond to a solicitation.
119.16(d) The commissioner, as a condition of awarding a construction contract or
119.17approving a contract for professional or technical services, may set goals that require
119.18the prime contractor to subcontract a portion of the contract to a veteran-owned small
119.19business. The commissioner must establish a procedure for granting waivers from the
119.20subcontracting requirement when qualified veteran-owned small businesses are not
119.21reasonably available. The commissioner may establish financial incentives for prime
119.22contractors who exceed the goals for use of veteran-owned small business subcontractors
119.23and financial penalties for prime contractors who fail to meet goals under this paragraph.
119.24The subcontracting requirements of this paragraph do not apply to prime contractors
119.25who are veteran-owned small businesses.
119.26(b) (e) The purpose of this designation is to facilitate the transition of veterans from
119.27military to civilian life, and to help compensate veterans for their sacrifices, including but
119.28not limited to their sacrifice of health and time, to the state and nation during their military
119.29service, as well as to enhance economic development within Minnesota.
119.30(c) (f) Before the commissioner certifies that a small business is majority-owned and
119.31operated by a veteran, the commissioner of veterans affairs must verify that the owner of
119.32the small business is a veteran, as defined in section 197.447.

119.33    Sec. 6. Minnesota Statutes 2014, section 16C.16, subdivision 7, is amended to read:
120.1    Subd. 7. Economically disadvantaged areas. (a) Except as otherwise provided in
120.2paragraph (b), The commissioner may award up to a six percent preference in the amount
120.3bid on state procurement to small businesses located in an economically disadvantaged area.
120.4(b) The commissioner may award up to a four percent preference in the amount bid
120.5on state construction to small businesses located in an economically disadvantaged area.
120.6(b) The commissioner may award a contract for goods, services, or construction
120.7directly to a small business located in an economically disadvantaged area without going
120.8through a competitive solicitation process up to a total contract award value, including
120.9extension options, of $25,000.
120.10(c) The commissioner may designate a purchase of goods or services for award only
120.11to a small business located in an economically disadvantaged area if the commissioner
120.12determines that at least three small businesses located in an economically disadvantaged
120.13area are likely to respond to a solicitation.
120.14(d) The commissioner, as a condition of awarding a construction contract or
120.15approving a contract for professional or technical services, may set goals that require the
120.16prime contractor to subcontract a portion of the contract to a small business located in
120.17an economically disadvantaged area. The commissioner must establish a procedure for
120.18granting waivers from the subcontracting requirement when qualified small businesses
120.19located in an economically disadvantaged area are not reasonably available. The
120.20commissioner may establish financial incentives for prime contractors who exceed the
120.21goals for use of subcontractors that are small businesses located in an economically
120.22disadvantaged area and financial penalties for prime contractors who fail to meet goals
120.23under this paragraph. The subcontracting requirements of this paragraph do not apply to
120.24prime contractors who are small businesses located in an economically disadvantaged area.
120.25(c) (e) A business is located in an economically disadvantaged area if:
120.26(1) the owner resides in or the business is located in a county in which the median
120.27income for married couples is less than 70 percent of the state median income for married
120.28couples;
120.29(2) the owner resides in or the business is located in an area designated a labor
120.30surplus area by the United States Department of Labor; or
120.31(3) the business is a certified rehabilitation facility or extended employment provider
120.32as described in chapter 268A.
120.33(d) (f) The commissioner may designate one or more areas designated as targeted
120.34neighborhoods under section 469.202 or as border city enterprise zones under section
120.35469.166 as economically disadvantaged areas for purposes of this subdivision if the
120.36commissioner determines that this designation would further the purposes of this section.
121.1If the owner of a small business resides or is employed in a designated area, the small
121.2business is eligible for any preference provided under this subdivision.
121.3(e) (g) The Department of Revenue shall gather data necessary to make the
121.4determinations required by paragraph (c) (e), clause (1), and shall annually certify counties
121.5that qualify under paragraph (c) (e), clause (1). An area designated a labor surplus area
121.6retains that status for 120 days after certified small businesses in the area are notified of
121.7the termination of the designation by the United States Department of Labor.

121.8    Sec. 7. Minnesota Statutes 2014, section 16C.16, is amended by adding a subdivision
121.9to read:
121.10    Subd. 7a. Designated purchases and subcontractor goals. (a) When designating
121.11purchases directly to a business in accordance with this section, the commissioner may
121.12also designate a purchase of goods or services directly to any combination of small
121.13businesses, small targeted group businesses, veteran-owned small businesses or small
121.14businesses located in an economically disadvantaged area if the commissioner determines
121.15that at least three businesses in two or more of the disadvantaged business categories
121.16are likely to respond.
121.17(b) When establishing subcontractor goals under this section, the commissioner may
121.18set goals that require the prime contractor to subcontract a portion of the contract to any
121.19combination of a small business, small targeted group business, veteran-owned small
121.20business, or small business located in an economically disadvantaged area.

121.21    Sec. 8. Minnesota Statutes 2014, section 16C.16, subdivision 11, is amended to read:
121.22    Subd. 11. Procurement procedures. All laws and rules pertaining to solicitations,
121.23bid evaluations, contract awards, and other procurement matters apply equally to
121.24procurements designated for small businesses or small targeted group businesses involving
121.25any small business, small targeted group business, veteran-owned business, or small
121.26business located in an economically disadvantaged area. In the event of conflict with other
121.27rules, section 16C.15 and rules adopted under it govern, if section 16C.15 applies. If it
121.28does not apply, sections 16C.16 to 16C.21 and rules adopted under those sections govern.

121.29    Sec. 9. [17.1017] GOOD FOOD ACCESS PROGRAM.
121.30    Subdivision 1. Definitions. (a) For purposes of this section, unless the language
121.31or context indicates that a different meaning is intended, the following terms have the
121.32meanings given them.
121.33(b) "Account" means the good food access account established in subdivision 3.
122.1(c) "Commissioner" means the commissioner of agriculture.
122.2(d) "Economic or community development financial institution (ECDFI)" means
122.3a lender, including but not limited to a community development financial institution
122.4(CDFI), an economic development district (EDD), a political subdivision of the state, a
122.5microenterprise firm, or a nonprofit community lending organization that has previous
122.6experience lending to a food retailer, producer, or another healthy food enterprise in an
122.7underserved community in a low-income or moderate-income area, as defined in this
122.8section; has been in existence and operating prior to January 1, 2014; has demonstrated
122.9the ability to raise matching capital and in-kind services to leverage appropriated money;
122.10has the demonstrated ability to underwrite loans and grants; and has partnered previously
122.11with nonprofit healthy food access, public health, or related governmental departments or
122.12community organizations.
122.13(e) "Farmers' market" means an association of three or more persons who assemble
122.14at a defined location that is open to the public for the purpose of selling directly to the
122.15consumer the products of a farm or garden occupied and cultivated by the person selling
122.16the product.
122.17(f) "Financing" means loans, including low-interest loans, zero-interest loans,
122.18forgivable loans, and other types of financial assistance other than grants.
122.19(g) "Food hub" means a centrally located facility with a business management
122.20structure that facilitates the aggregation, storage, processing, distribution, marketing, and
122.21sale of locally or regionally produced food products, and which may include a small-scale
122.22retail grocery operation.
122.23(h) "Good Food Access Program Advisory Committee" means the Good Food
122.24Access Program Advisory Committee under section 17.1018.
122.25(i) "Grocery store" means a for-profit, not-for-profit, or cooperative self-service retail
122.26establishment that sells primarily meat, fish, seafood, fruits, vegetables, dry groceries,
122.27and dairy products and may also sell household products, sundries, and other products.
122.28Grocery store includes a supermarket or a large-, mid-, or small-scale retail grocery
122.29establishment and may include a mobile food market or a delivery service operation.
122.30(j) "Low-income area" means a census tract as reported in the most recently
122.31completed decennial census published by the United States Bureau of the Census that has
122.32a poverty rate of at least 20 percent or in which the median family income does not exceed
122.3380 percent of the greater of the statewide or metropolitan median family income.
122.34(k) "Moderate-income area" means a census tract as reported in the most recently
122.35completed decennial census published by the United States Bureau of the Census in which
123.1the median family income is between 81 percent and 95 percent of the median family
123.2income for that area.
123.3(l) "Mobile food market" means a self-contained for-profit, not-for-profit, or
123.4cooperative retail grocery operation located in a movable new or renovated truck, bus, or
123.5other vehicle that is used to store, prepare, display, and sell primarily meat, fish, seafood,
123.6fruits, vegetables, dry groceries, and dairy products and may also be used to sell a nominal
123.7supply of cooking utensils and equipment and other household products and sundries.
123.8(m) "Program" means the good food access program established in this section.
123.9(n) "Small food retailer" means a small-scale retail food outlet, other than a grocery
123.10store as defined in this section. Small food retailer includes, but is not limited to, a corner
123.11store, convenience store, farmers' market, mobile food market, and a retail food outlet
123.12operated by an emergency food program or food hub.
123.13(o) "Technical assistance" means needs-based project assistance provided through
123.14the program, including sustainability-focused individualized guidance, presentations,
123.15workshops, trainings, printed materials, mentorship opportunities, peer-to-peer
123.16opportunities, or other guidance and resources on relevant topics such as business
123.17planning, sales projections, cash flow, succession planning, financing, fund-raising,
123.18marketing, food preparation demonstrations, and workforce training.
123.19(p) "Underserved community" means a census tract that is federally designated
123.20as a food desert by the United States Department of Agriculture, or a census tract in a
123.21low-income or moderate-income area that includes a substantial subpopulation such as
123.22the elderly or the disabled that has low supermarket access, regardless of distance, due
123.23to lack of transportation.
123.24    Subd. 2. Program established. (a) A good food access program is established within
123.25the Department of Agriculture to increase the availability of and access to affordable,
123.26nutritious, and culturally appropriate food, including fresh fruits and vegetables, for
123.27underserved communities in low-income and moderate-income areas by providing financial
123.28support and sustainable public-private projects to open, renovate, or expand the operations
123.29of grocery stores and small food retailers; expanding access to credit and reducing barriers
123.30to investment in underserved communities in low- and moderate-income areas; and to
123.31provide technical assistance, primarily for small food retailers with demonstrated need,
123.32to increase availability and sustainable sales of affordable, nutritious, and culturally
123.33appropriate food, including fresh fruits and vegetables, to underserved communities in
123.34low-income and moderate-income areas. The commissioner, in cooperation with public
123.35and private partners, shall establish and implement the program as provided in this section.
124.1(b) The good food access program shall be comprised of state or private grants, loans,
124.2or other types of financial and technical assistance for the establishment, construction,
124.3expansion of operations, or renovation of grocery stores and small food retailers to increase
124.4the availability of and access to affordable fresh produce and other nutritious, culturally
124.5appropriate food to underserved communities in low-income and moderate-income areas.
124.6    Subd. 3. Good food access account. A good food access account is established in
124.7the agricultural fund. The account consists of money appropriated by the legislature to the
124.8commissioner, as provided by law, and any other money donated, allotted, transferred,
124.9or otherwise provided to the account. Money in the account may only be expended on
124.10projects receiving financing, grants, or other financial and technical assistance as provided
124.11under this section, and shall be used, to the extent practicable, to leverage other forms of
124.12public and private financing or financial assistance for the projects.
124.13    Subd. 4. Program administration. (a) The commissioner shall be the administrator
124.14of the account for auditing purposes and shall establish program requirements and a
124.15competitive process for projects applying for financial and technical assistance.
124.16(b) The commissioner may receive money or other assets from any source, including
124.17but not limited to philanthropic foundations and financial investors, for deposit into the
124.18account, and shall direct the investment of the account and credit to the account interest
124.19and earnings from account investments.
124.20(c) Through issuance of requests for proposals, the commissioner may contract
124.21with one or more qualified economic or community development financial institutions
124.22to manage the financing component of the program and with one or more qualified
124.23organizations or public agencies with financial or other program-related expertise to
124.24manage the provision of technical assistance to project grantees.
124.25(d) Money in the account at the close of each fiscal year shall remain in the account
124.26and shall not cancel. In each biennium, the commissioner shall determine the appropriate
124.27proportion of money to be allocated to loans, grants, technical assistance, and any other
124.28types of financial assistance.
124.29(e) To encourage public-private, cross-sector collaboration and investment in the
124.30account and program and to ensure that the program intent is maintained throughout
124.31implementation, the commissioner shall convene and maintain the Good Food Access
124.32Program Advisory Committee.
124.33(f) The commissioner, in cooperation with the Good Food Access Program Advisory
124.34Committee, shall manage the program, establish program criteria, facilitate leveraging of
124.35additional public and private investment, and promote the program statewide.
125.1(g) The commissioner, in cooperation with the Good Food Access Program Advisory
125.2Committee, shall establish annual monitoring and accountability mechanisms for all
125.3projects receiving financing or other financial or technical assistance through this program.
125.4    Subd. 5. Eligible projects. (a) The commissioner, in cooperation with the program
125.5partners and advisors, shall establish project eligibility guidelines and application
125.6processes to be used to review and select project applicants for financing or other financial
125.7or technical assistance. All projects must be located in an underserved community or must
125.8serve primarily underserved communities in low-income and moderate-income areas.
125.9(b) Projects eligible for financing include, but are not limited to, new construction,
125.10renovations, expansions of operations, and infrastructure upgrades of grocery stores and
125.11small food retailers to improve the availability of and access to affordable, nutritious food,
125.12including fresh fruits and vegetables, and build capacity in areas of greatest need.
125.13(c) Projects eligible for other types of financial assistance such as grants or
125.14technical assistance are primarily projects throughout the state, including, but not limited
125.15to, feasibility studies, new construction, renovations, expansion of operations, and
125.16infrastructure upgrades of small food retailers.
125.17    Subd. 6. Qualifications for receipt of financing and other financial or technical
125.18assistance. (a) An applicant for receipt of financing through an economic or community
125.19development financial institution, or an applicant for a grant or other financial or technical
125.20assistance, may be a for-profit or not-for-profit entity, including, but not limited to, a sole
125.21proprietorship, limited liability company, corporation, cooperative, nonprofit organization,
125.22or nonprofit community development organization. Each applicant must:
125.23(1) demonstrate community engagement in and support for the project;
125.24(2) demonstrate the capacity to successfully implement the project;
125.25(3) demonstrate a viable plan for long-term sustainability, including the ability to
125.26increase the availability of and access to affordable, nutritious, and culturally appropriate
125.27food, including fresh fruits and vegetables, for underserved communities in low-income
125.28and moderate-income areas; and
125.29(4) demonstrate the ability to repay the debt, to the extent that the financing requires
125.30repayment.
125.31(b) Each applicant must also agree to comply with the following conditions for a
125.32period of at least five years, except as otherwise specified in this section:
125.33(1) accept Supplemental Nutrition Assistance Program (SNAP) benefits;
125.34(2) apply to accept Special Supplemental Nutrition Program for Women, Infants,
125.35and Children (WIC) benefits and, if approved, accept WIC benefits;
126.1(3) allocate at least 30 percent of retail space for the sale of affordable, nutritious,
126.2and culturally appropriate foods, including fruits and vegetables, low-fat and nonfat
126.3dairy, fortified dairy substitute beverages such as soy-based or nut-based dairy substitute
126.4beverages, whole grain-rich staple foods, meats, poultry, fish, seafood, and other proteins,
126.5consistent with nutrition standards in national guidelines described in the current United
126.6States Department of Agriculture Dietary Guidelines for Americans;
126.7(4) comply with all data collection and reporting requirements established by the
126.8commissioner; and
126.9(5) promote the hiring, training, and retention of local or regional residents from
126.10low-income and moderate-income areas that reflect area demographics, including
126.11communities of color.
126.12(c) A selected project that is a small food retailer is not subject to the allocation
126.13agreement under paragraph (b), clause (3), and may use financing, grants, or other financial
126.14or technical assistance for refrigeration, displays, or onetime capital expenditures for the
126.15promotion and sale of perishable foods, including a combination of affordable, nutritious,
126.16and culturally appropriate fresh or frozen dairy, dairy substitute products, produce, meats,
126.17poultry, and fish, consistent with nutrition standards in national guidelines described in the
126.18current United States Department of Agriculture Dietary Guidelines for Americans.
126.19    Subd. 7. Additional selection criteria. In determining which qualified projects to
126.20finance, and in determining which qualified projects to provide with grants or other types
126.21of financial or technical assistance, the commissioner, in cooperation with any entities
126.22with which the commissioner contracts for those purposes and the Good Food Access
126.23Program Advisory Committee, shall also consider:
126.24(1) the level of need in the area to be served;
126.25(2) the degree to which the project requires an investment of public support, or
126.26technical assistance where applicable, to move forward, build capacity, create community
126.27impact, or be competitive;
126.28(3) the likelihood that the project will have positive economic and health impacts on
126.29the underserved community, including creation and retention of jobs for local or regional
126.30residents from low-income and moderate-income areas that reflect area demographics,
126.31including communities of color;
126.32(4) the degree to which the project will participate in state and local health department
126.33initiatives to educate consumers on nutrition, promote healthy eating and healthy weight,
126.34and support locally grown food products through programs such as Minnesota Grown; and
126.35(5) any other criteria that the commissioner, in cooperation with public and private
126.36partners, determines to be consistent with the purposes of this chapter.
127.1    Subd. 8. Eligible costs. Financing for project loans, including low-interest,
127.2zero-interest, and forgivable loans, grants, and other financial or technical assistance, may
127.3be used to support one or more of the following purposes:
127.4(1) site acquisition and preparation;
127.5(2) predevelopment costs, including but not limited to feasibility studies, market
127.6studies, and appraisals;
127.7(3) construction and build-out costs;
127.8(4) equipment and furnishings;
127.9(5) workforce or retailer training; and
127.10(6) working capital.
127.11    Subd. 9. Legislative report. The commissioner, in cooperation with any economic
127.12or community development financial institution and any other entity with which it
127.13contracts, shall submit an annual report on the good food access program by January 15 of
127.14each year to the chairs and ranking minority members of the house of representatives and
127.15senate committees and divisions with jurisdiction over agriculture policy and finance. The
127.16annual report shall include, but not be limited to, a summary of the following metrics:
127.17(1) the number and types of projects financed;
127.18(2) the amount of dollars leveraged or matched per project;
127.19(3) the geographic distribution of financed projects;
127.20(4) the number and types of technical assistance recipients;
127.21(5) any market or commodity expansion associated with increased access;
127.22(6) the demographics of the areas served;
127.23(7) the costs of the program;
127.24(8) the number of SNAP and WIC dollars spent;
127.25(9) any increase in retail square footage;
127.26(10) the number of loans or grants to minority-owned or female-owned businesses;
127.27and
127.28(11) measurable economic and health outcomes, including, but not limited to,
127.29increases in sales and consumption of locally sourced and other fresh fruits and vegetables,
127.30the number of construction and retail jobs retained or created, and any health initiatives
127.31associated with the program.

127.32    Sec. 10. [17.1018] GOOD FOOD ACCESS PROGRAM ADVISORY
127.33COMMITTEE.
127.34    Subdivision 1. Definitions. As used in this section, the following terms have the
127.35meanings given them:
128.1(1) "program" means the good food access program under section 17.1017; and
128.2(2) "commissioner" means the commissioner of agriculture.
128.3    Subd. 2. Creation. The Good Food Access Program Advisory Committee consists
128.4of the following members, appointed by the commissioner of agriculture, unless otherwise
128.5specified:
128.6(1) the commissioners of health, employment and economic development, and
128.7human services, or their respective designees;
128.8(2) one person representing the grocery industry;
128.9(3) two people representing economic or community development, one rural
128.10member and one urban or suburban member;
128.11(4) two people representing political subdivisions of the state;
128.12(5) one person designated by the Council for Minnesotans of African Heritage;
128.13(6) one person designated by the Minnesota Indian Affairs Council;
128.14(7) one person designated by the Council on Asian Pacific Minnesotans;
128.15(8) one person designated by the Chicano Latino Affairs Council;
128.16(9) one person designated by the Minnesota Farmers Union;
128.17(10) one person representing public health experts;
128.18(11) one person representing philanthropic foundations;
128.19(12) one person representing economic or community development financial
128.20institutions;
128.21(13) one person representing the University of Minnesota Regional Sustainable
128.22Development Partnerships;
128.23(14) two people representing organizations engaged in addressing food security,
128.24one representative from a statewide hunger relief organization and one from a
128.25community-based organization;
128.26(15) one person representing immigrant farmer-led organizations;
128.27(16) one person representing small business technical assistance with experience
128.28in food retail; and
128.29(17) up to four additional members with economic development, health equity,
128.30financial, or other relevant expertise.
128.31At least half of the members must reside in or their organizations must serve rural
128.32Minnesota. The commissioner may remove members and fill vacancies as provided in
128.33section 15.059, subdivision 4.
128.34    Subd. 3. Duties. The advisory committee must advise the commissioner of
128.35agriculture on managing the program, establishing program criteria, establishing project
128.36eligibility guidelines, establishing application processes and additional selection criteria,
129.1establishing annual monitoring and accountability mechanisms, facilitating leveraging of
129.2additional public and private investments, and promoting the program statewide.
129.3    Subd. 4. Meetings. The commissioner must convene the advisory committee at
129.4least two times per year to achieve the committee's duties.
129.5    Subd. 5. Administrative support. The commissioner of agriculture must provide
129.6staffing, meeting space, and administrative services for the advisory committee.
129.7    Subd. 6. Chair. The commissioner of agriculture or the commissioner's designee
129.8shall serve as chair of the committee.
129.9    Subd. 7. Compensation. The public members of the advisory committee serve
129.10without compensation or payment of expenses.
129.11    Subd. 8. Expiration. The advisory committee does not expire.

129.12    Sec. 11. [116J.55] EMERGING ENTREPRENEUR FUND PROGRAM.
129.13    Subdivision 1. Program created. The emerging entrepreneur fund program is
129.14created to provide, through partnership with nonprofit corporations, financial and technical
129.15assistance for small businesses owned by minorities, women, veterans, or persons with
129.16disabilities, or businesses located in low-income areas in the seven-county metropolitan
129.17area. Loans and business development services must promote job creation and economic
129.18development in low-income areas and encourage private investment and strengthen
129.19businesses owned by minorities, women, veterans, and persons with disabilities.
129.20    Subd. 2. Definitions. (a) The definitions in this subdivision apply to this section.
129.21(b) "Commissioner" means the commissioner of employment and economic
129.22development.
129.23(c) "Department" means the Department of Employment and Economic
129.24Development.
129.25(d) "Disability-owned business" means a small business that is majority owned and
129.26operated by a person with a disability who is eligible to receive Supplemental Security
129.27Income (SSI) or Social Security Disability Insurance (SSDI) based on the person's own
129.28disability or is eligible for services from the department's vocational rehabilitation services
129.29or State Services for the Blind programs.
129.30(e) "Emerging Entrepreneur Fund Advisory Council" or "council" means the
129.31advisory council created under subdivision 9.
129.32(f) "Emerging entrepreneur fund program" or "program" means the program
129.33established under this section.
130.1(g) "Emerging entrepreneur fund qualified small business" means a small business
130.2that is majority owned and operated by a racial or ethnic minority, woman, veteran, or a
130.3person with a disability, solely or in any combination thereof.
130.4(h) "Greater Minnesota" means the area of the state that excludes the metropolitan
130.5area, as defined in section 473.121, subdivision 2.
130.6(i) "Low-income area" means:
130.7(1) those cities in the metropolitan area that have an average income that is below
130.880 percent of the median income for a four-person family as of the latest report by the
130.9United States Census Bureau; or
130.10(2) those cities in the metropolitan area that contain two or more contiguous census
130.11tracts in which the average family income is less than 80 percent of the median family
130.12income for the Twin Cities metropolitan area.
130.13(j) "Metropolitan area" has the meaning given in section 473.121, subdivision 2.
130.14(k) "Minority-owned business" means a small business that is majority owned and
130.15operated by persons belonging to a racial or ethnic minority as defined in Minnesota
130.16Rules, part 1230.0150, subpart 24.
130.17(l) "Nonprofit corporation" means a nonprofit lender or a nonprofit technical
130.18assistance provider operating in the state.
130.19(m) "Nonprofit lender" means a nonprofit corporation that has been certified as a
130.20participating lender under subdivision 3.
130.21(n) "Nonprofit technical assistance provider" means a nonprofit corporation that
130.22provides consulting services to assist businesses under the program.
130.23(o) "Small business" means an enterprise as defined in section 645.445, subdivision 2.
130.24(p) "Veteran-owned business" means a small business that is majority owned and
130.25operated by a veteran as defined in section 197.447.
130.26(q) "Woman-owned business" means a small business that is majority owned and
130.27operated by a woman.
130.28    Subd. 3. Nonprofit lender application. (a) The commissioner shall provide funds
130.29to nonprofit lenders for the purpose of making loans to businesses that are (1) located in a
130.30low-income area or (2) emerging entrepreneur fund qualified small businesses.
130.31(b) A nonprofit corporation wishing to be certified as a nonprofit lender in the program
130.32must apply using the form prescribed by the commissioner. The application must include:
130.33(1) an assurance signed by the nonprofit lender's chair that the applicant will comply
130.34with all applicable state and federal laws, guidelines, and requirements;
131.1(2) a resolution passed by the nonprofit lender's board of directors approving the
131.2submission of an application and authorizing execution of the grant agreement if funds
131.3are made available;
131.4(3) a plan demonstrating the nonprofit lender's approach to assisting small businesses
131.5that are majority owned and operated by a racial or ethnic minority, woman, veteran, or a
131.6person with disabilities and the expected outcomes from the corporation's participation
131.7in the program;
131.8(4) the geographic area served by the nonprofit lender's loan programs; and
131.9(5) any additional information that the commissioner deems necessary to clarify the
131.10applicant's ability to achieve the program's objectives.
131.11(c) The commissioner must enter into agreements with nonprofit lenders to fund
131.12loans under this section. The commissioner shall select and certify participating nonprofit
131.13lenders based on the organization's ability to demonstrate:
131.14(1) a board of directors or management team that includes citizens experienced in
131.15business development; financing small businesses that are majority owned and operated
131.16by a racial or ethnic minority, woman, veteran, or a person with disabilities; financing
131.17businesses located in low-income areas; and creating jobs in low-income areas;
131.18(2) the technical skills needed to analyze projects;
131.19(3) familiarity with other available public and private funding sources and economic
131.20development programs;
131.21(4) ability to initiate and implement business finance projects;
131.22(5) capacity to establish and administer a revolving loan account;
131.23(6) experience working with job referral networks that assist small businesses that
131.24are majority owned and operated by a racial or ethnic minority, woman, veteran, or a
131.25person with disabilities or persons in low-income areas; and
131.26(7) any other criteria the commissioner deems necessary.
131.27(d) The commissioner shall solicit applications by participating and nonparticipating
131.28lenders at least every five years.
131.29    Subd. 4. Business loan criteria. (a) A participating nonprofit corporation must use
131.30the criteria in this subdivision when making loans under the program.
131.31(b) Loans must be made to small businesses that are not likely to undertake a project
131.32for which loans are sought without assistance from the program.
131.33(c) A loan may be used for a project for an emerging entrepreneur fund qualified
131.34small business (1) located anywhere in Minnesota or (2) that is not an emerging
131.35entrepreneur fund qualified small business but is located in a low-income area.
132.1(d) If a loan involves a small business that is not an emerging entrepreneur fund
132.2qualified small business, the state contribution must be matched by at least an equal
132.3amount of new private investment funded and provided by the nonprofit lender. If the loan
132.4does not exceed $50,000, private matching funds are not required.
132.5(e) The state contribution may represent up to 75 percent of the project's financing if
132.6the applicant is an emerging entrepreneur fund qualified small business with the nonprofit
132.7lender funding and providing 25 percent of the financing.
132.8(f) The minimum state contribution to a loan is $2,000, and the maximum is $150,000.
132.9(g) A loan may not be used for a retail development project unless the loan does
132.10not exceed $25,000.
132.11(h) The participating small business must agree to work with job referral networks
132.12that focus on minority, women, veteran, and disabled applicants.
132.13(i) The loan funds may be used for normal operating business expenses including
132.14but not limited to business or site acquisition, new construction, renovation, machinery
132.15and equipment, inventory, or working capital.
132.16(j) The loan funds may not be used for any of the following:
132.17(1) costs incurred by applicants not meeting the eligibility requirements in this
132.18subdivision;
132.19(2) lending, passive real estate investment purposes, or land speculation;
132.20(3) management fees, financing costs, debt consolidation, or refinancing existing
132.21business or personal debt;
132.22(4) any activity deemed illegal by federal, state, or local law or ordinance; and
132.23(5) other purposes or activities determined by the commissioner to not be in the
132.24best interests of the state.
132.25(k) An applicant must be in compliance with all applicable local, state, and federal
132.26laws and must not be subject to any judgments, liens, or other actions that would prevent
132.27loan repayment.
132.28(l) Other factors that the commissioner deems important shall be incorporated as
132.29part of the agreement between the department and the nonprofit lender required under
132.30subdivision 3.
132.31    Subd. 5. Loan administration. (a) An eligible small business may make an
132.32application to the nonprofit corporation for an emerging entrepreneur fund loan. The
132.33application must be in the form approved by the nonprofit lender and the commissioner.
132.34(b) The nonprofit corporation must review the application and may give preliminary
132.35approval for the loan based on criteria in subdivision 4. Loan applications given
132.36preliminary approval by the nonprofit lender must be forwarded to the commissioner
133.1for approval. The commissioner shall disburse funds for each approved emerging
133.2entrepreneur fund loan made by the nonprofit corporation for which funding is available.
133.3(c) In cases where the nonprofit lender fails to demonstrate that it has met the
133.4requirements of this section, the commissioner must disapprove the application. The
133.5commissioner shall inform the nonprofit corporation of the decision, in writing, stating
133.6the reasons for the denial.
133.7(d) The nonprofit lender must use a loan agreement for each emerging entrepreneur
133.8fund loan. Each agreement must identify specific loan terms and include, at a minimum, the
133.9maximum loan period, repayment terms, and default terms. The commissioner may pursue
133.10any course of action authorized by statute, rule, or loan agreement to remedy default.
133.11(1) Nonprofit lenders may structure project financing using interest or an equivalent
133.12approach using other allowable charges if the borrower has limitations or restrictions on
133.13the type of project financing used.
133.14(2) If interest is charged, the rate on a loan shall be established by the nonprofit
133.15lender, but may be no less than two percent per annum nor more than seven percent per
133.16annum or four percent above the prime rate, as published in the Wall Street Journal at the
133.17time the loan is closed, whichever is greater.
133.18(3) The nonprofit lender may charge a loan origination fee equal to or less than
133.19one percent of the loan value. The nonprofit corporation may retain the amount of the
133.20origination fee.
133.21(4) The nonprofit lender may only charge the participating small business
133.22out-of-pocket administrative expenses connected with originating the loan at the time
133.23of closing.
133.24(5) For emerging entrepreneur fund loans made by the nonprofit lender, the principal
133.25payments shall be submitted to the commissioner. These funds must be deposited in the
133.26emerging entrepreneur fund account in the special revenue fund as defined in subdivision 6.
133.27(6) The commissioner may allow the nonprofit lender to keep interest payments for
133.28a loan in order to pay for the nonprofit lender's administrative expenses associated with
133.29that loan.
133.30(7) The nonprofit lender shall attempt to have applicants provide security for the loan
133.31equal to the loan value. Security may be a lien on real property owned by the applicant or
133.32other security satisfactory to the agency such as a lien on other assets of the applicant or
133.33other individuals affiliated with the applicant or business, or a guaranty by the business
133.34owners or other individuals affiliated with the applicant or business.
133.35    Subd. 6. Special revenue account. (a) The emerging entrepreneur fund account
133.36is established as a separate account in the special revenue fund in the state treasury.
134.1The commissioner shall transfer to the account appropriations made for loans. Loan
134.2principal repayments must be deposited in the account. Any interest not used for lenders
134.3for administrative expenses and repaid to the commissioner or earned on money in the
134.4account accrues to the account. Funds remaining in the account at the end of a fiscal
134.5year are not canceled to the general fund, but remain in the account until expended. The
134.6commissioner shall manage the account.
134.7(b) Amounts in the emerging entrepreneur fund account in the special revenue fund
134.8are appropriated to the commissioner for providing, through partnership with nonprofit
134.9organizations, financial assistance for small businesses owned by minorities, women,
134.10veterans, or persons with disabilities or located in low-income areas.
134.11(c) The balance in any accounts authorized under chapter 116M shall be transferred
134.12to the emerging entrepreneur fund account in the special revenue fund. Loan repayments
134.13made under chapter 116M shall be transferred to the emerging entrepreneur fund account
134.14in the special revenue fund.
134.15    Subd. 7. Business development technical assistance. (a) The commissioner shall
134.16award grants to organizations to provide technical assistance services.
134.17(b) The commissioner shall select participating nonprofit technical assistance
134.18providers for competitive grants under this subdivision based on the organization's ability
134.19to provide services to small businesses owned by minorities, women, veterans, or persons
134.20with disabilities, or businesses located in low-income areas by demonstrating:
134.21(1) a need for funding;
134.22(2) clear and measurable activities and outcomes within a service delivery area
134.23and schedule;
134.24(3) partnerships that will support the service delivery;
134.25(4) organizational capacity and related experience providing technical assistance;
134.26(5) a clear and detailed budget;
134.27(6) methods to evaluate the success of reaching proposed outcomes; and
134.28(7) any additional information that the commissioner finds is necessary to clarify
134.29the applicant's ability to achieve the program's objectives.
134.30    Subd. 8. Reporting requirements. (a) A nonprofit corporation that receives
134.31funding from the emerging entrepreneur fund for loans or technical services must report to
134.32the commissioner by March 1 of each year in a format prescribed by the commissioner.
134.33The report shall include the information in this subdivision and any other information
134.34deemed necessary by the commissioner.
134.35(b) Nonprofit corporations that receive funding to provide lending shall submit a
134.36report containing: a description of all projects supported by the program; an account of
135.1any loans made during the calendar year; the project's assets and liabilities; an explanation
135.2of administrative expenses; and the project's impact on small businesses owned by
135.3minorities, women, veterans, or persons with disabilities.
135.4(c) Nonprofit corporations that receive funding to provide lending shall provide
135.5for an independent annual audit to be performed in accordance with generally accepted
135.6accounting practices and auditing standards and submit a copy of each annual audit report
135.7to the commissioner.
135.8(d) Nonprofit corporations that receive a grant to provide business development
135.9technical assistance shall provide an account of the number of businesses served during
135.10the calendar year, the program's impact on small businesses owned by minorities, women,
135.11veterans, or persons with disabilities, and an explanation of administrative expenses.
135.12    Subd. 9. Emerging Entrepreneur Fund Advisory Council. (a) The Emerging
135.13Entrepreneur Fund Advisory Council is created and consists of the commissioner, the
135.14chair of the Metropolitan Council, the commissioner of the Department of Human Rights,
135.15and ten members from the general public appointed by the governor. Appointments must
135.16ensure balanced geographic representation. At least half of the public members must have
135.17experience working to address racial disparities.
135.18(b) The membership terms, compensation, removal, and filling of vacancies of
135.19public members of the council are as provided in section 15.0575.
135.20(c) The commissioner shall serve as chair of the council. The council may elect other
135.21officers as necessary from its members.
135.22(d) The commissioner shall provide staff, consultant support, materials, and
135.23administrative services necessary for the council's activities. The emerging entrepreneur
135.24fund account in the special revenue fund may be used for council expenses.
135.25(e) The governor must make initial appointments to the council by November 15,
135.262016, and the chair must convene the first meeting of the council by December 15, 2016.
135.27EFFECTIVE DATE.This section is effective the day following final enactment.

135.28    Sec. 12. [116L.562] YOUTH-AT-WORK GRANT PROGRAM.
135.29    Subdivision 1. Establishment. The commissioner shall award grants to eligible
135.30organizations for the purpose of providing workforce development and training
135.31opportunities to economically disadvantaged or at-risk youth ages 14 to 24.
135.32    Subd. 2. Definitions. For purposes of this section:
135.33(1) "eligible organization" or "eligible applicant" means a local government unit,
135.34nonprofit organization, community action agency, or a public school district;
136.1(2) "at-risk youth" means youth classified as at-risk under section 116L.56,
136.2subdivision 2; and
136.3(3) "economically disadvantaged" means youth who are economically disadvantaged
136.4as defined in United States Code, title 29, section 1503.
136.5    Subd. 3. Competitive grant awards. (a) In awarding competitive grants, priority
136.6shall be given to programs that:
136.7(1) provide students with information about education and training requirements for
136.8careers in high-growth, in-demand occupations;
136.9(2) serve youth from communities of color who are under represented in the
136.10workforce; or
136.11(3) serve youth with disabilities.
136.12(b) Eligible organizations must have demonstrated effectiveness in administering
136.13youth workforce programs and must leverage nonstate or private sector funds.
136.14(c) New eligible applicants must be youth-serving organizations with significant
136.15capacity and demonstrable youth development experience and outcomes to operate a
136.16youth workforce development project.
136.17(d) If a program is not operated by a local unit of government or a workforce
136.18development board, the grant recipient must coordinate the program with the local
136.19workforce development board.
136.20    Subd. 4. Reports. Each grant recipient shall report to the commissioner in a format
136.21to be determined by commissioner.

136.22    Sec. 13. Minnesota Statutes 2014, section 116L.99, is amended to read:
136.23116L.99 WOMEN AND HIGH-WAGE, HIGH-DEMAND,
136.24NONTRADITIONAL JOBS GRANT PROGRAM.
136.25    Subdivision 1. Definitions. (a) For the purpose of this section, the following terms
136.26have the meanings given.
136.27(b) "Commissioner" means the commissioner of employment and economic
136.28development.
136.29(c) ''Eligible organization'' includes, but is not limited to:
136.30(1) community-based organizations experienced in serving women;
136.31(2) employers;
136.32(3) business and trade associations;
136.33(4) labor unions and employee organizations;
136.34(5) registered apprenticeship programs;
136.35(6) secondary and postsecondary education institutions located in Minnesota; and
137.1(7) workforce and economic development agencies.
137.2(d) "High-wage, high-demand" means occupations that represent at least 0.1 percent
137.3of total employment in the base year, have an annual median salary which is higher than
137.4the average for the current year, and are projected to have more total openings as a share
137.5of employment than the average.
137.6(e) "Low-income" means income less than 200 percent of the federal poverty
137.7guideline adjusted for a family size of four.
137.8(f) "Nontraditional occupations'' means those occupations in which women make
137.9up less than 25 percent of the workforce as defined under United States Code, title 20,
137.10section 2302.
137.11(g) "Registered apprenticeship program'' means a program registered under United
137.12States Code, title 29, section 50.
137.13(h) "STEM" means science, technology, engineering, and math.
137.14(i) "Women of color" means females age 18 and older who are American Indian,
137.15Asian, Black, or Hispanic.
137.16(j) "Girls of color" means females under age 18 who are American Indian, Asian,
137.17Black, or Hispanic.
137.18    Subd. 2. Grant program. The commissioner shall establish the women and
137.19high-wage, high-demand, nontraditional jobs grant program to increase the number of
137.20women in high-wage, high-demand, nontraditional occupations. The commissioner shall
137.21make grants to eligible organizations for programs that encourage and assist women to enter
137.22high-wage, high-demand, nontraditional occupations including but not limited to those in
137.23the skilled trades, science, technology, engineering, and math (STEM) STEM occupations.
137.24The commissioner must give priority to programs that encourage and assist women of color
137.25to enter high-wage, high-demand, nontraditional occupations and STEM occupations.
137.26    Subd. 3. Use of funds. (a) Grant funds awarded under this section may be used for:
137.27(1) recruitment, preparation, placement, and retention of women, including women
137.28of color, low-income women and women over 50 years old, in registered apprenticeships,
137.29postsecondary education programs, on-the-job training, and permanent employment in
137.30high-wage, high-demand, nontraditional occupations;
137.31(2) secondary or postsecondary education or other training to prepare women
137.32to succeed in high-wage, high-demand, nontraditional occupations. Activities under
137.33this clause may be conducted by the grantee or in collaboration with another institution,
137.34including but not limited to a public or private secondary or postsecondary school;
137.35(3) innovative, hands-on, best practices that stimulate interest in high-wage,
137.36high-demand, nontraditional occupations among girls, increase awareness among
138.1girls about opportunities in high-wage, high-demand, nontraditional occupations, or
138.2increase access to secondary programming leading to jobs in high-wage, high-demand,
138.3nontraditional occupations. Best practices include but are not limited to mentoring,
138.4internships, or apprenticeships for girls in high-wage, high-demand, nontraditional
138.5occupations;
138.6(4) training and other staff development for job seeker counselors and Minnesota
138.7family investment program (MFIP) caseworkers on opportunities in high-wage,
138.8high-demand, nontraditional occupations;
138.9(5) incentives for employers and sponsors of registered apprenticeship programs
138.10to retain women in high-wage, high-demand, nontraditional occupations for more than
138.11one year;
138.12(6) training and technical assistance for employers to create a safe and healthy
138.13workplace environment designed to retain and advance women, including best practices
138.14for addressing sexual harassment, and to overcome gender inequity among employers
138.15and registered apprenticeship programs;
138.16(7) public education and outreach activities to overcome stereotypes about women
138.17in high-wage, high-demand, nontraditional occupations, including the development of
138.18educational and marketing materials; and
138.19(8) services to support for women in high-wage, high-demand, nontraditional
138.20occupations including but not limited to assistance with balancing work responsibilities;
138.21skills training and education; family caregiving; financial assistance for child care,
138.22transportation, and safe and stable housing; workplace issues resolution; and access to
138.23advocacy assistance and services; and
138.24(9) recruitment, participation, and support of girls of color in approved training
138.25programs or a valid apprenticeship program subject to section 181A.07, subdivision 7.
138.26(b) Grant applications must include detailed information about how the applicant
138.27plans to:
138.28(1) increase women's participation in high-wage, high-demand occupations in which
138.29women are currently underrepresented in the workforce;
138.30(2) comply with the requirements under subdivision 3; and
138.31(3) use grant funds in conjunction with funding from other public or private
138.32sources.; and
138.33(4) collaborate with existing, successful programs for training, education,
138.34recruitment, preparation, placement, and retention of women of color in high-wage,
138.35high-demand, nontraditional occupations and STEM occupations.
139.1(c) In awarding grants under this subdivision, the commissioner shall give priority
139.2to eligible organizations:
139.3(1) with demonstrated success in recruiting and preparing women, especially
139.4low-income women, women of color, and women over 50 years old, for high-wage,
139.5high-demand, nontraditional occupations; and
139.6(2) that leverage additional public and private resources.
139.7(d) At least 50 percent of total grant funds must be awarded to programs providing
139.8services and activities targeted to low-income women and women of color.
139.9(e) The commissioner of employment and economic development in conjunction
139.10with the commissioner of labor and industry shall monitor the use of funds under this
139.11section, collect and compile information on the activities of other state agencies and public
139.12or private entities that have purposes similar to those under this section, and identify other
139.13public and private funding available for these purposes.
139.14(f) By January 15, 2019, and each January 15 thereafter, the commissioner must
139.15submit a report to the chairs and ranking minority members of the committees of the
139.16house of representatives and the senate having jurisdiction over workforce development
139.17that details the use of grant funds. If data is available, the report must contain data that is
139.18disaggregated by race, cultural groups, family income, age, geographical location, migrant
139.19or foreign immigrant status, primary language, whether the participant is an English
139.20learner under Minnesota Statutes, section 124D.59, disability, and status of homelessness.

139.21    Sec. 14. Minnesota Statutes 2014, section 116M.14, subdivision 2, is amended to read:
139.22    Subd. 2. Board. "Board" means the Urban Minnesota Initiative Board.

139.23    Sec. 15. Minnesota Statutes 2014, section 116M.14, is amended by adding a
139.24subdivision to read:
139.25    Subd. 3a. Department. "Department" means the Department of Employment and
139.26Economic Development.

139.27    Sec. 16. Minnesota Statutes 2014, section 116M.14, subdivision 4, is amended to read:
139.28    Subd. 4. Low-income area. "Low-income area" means:
139.29(1) Minneapolis, St. Paul;
139.30(2) those cities in the metropolitan area as defined in section 473.121, subdivision
139.312 , that have an average income that is below 80 percent of the median income for a
139.32four-person family as of the latest report by the United States Census Bureau; and
140.1(3) (2) those cities in the metropolitan area, which contain two or more contiguous
140.2census tracts in which the average family income is less than 80 percent of the median
140.3family income for the Twin Cities metropolitan area as of the latest report by the United
140.4States Census Bureau.

140.5    Sec. 17. Minnesota Statutes 2014, section 116M.14, is amended by adding a
140.6subdivision to read:
140.7    Subd. 4a. Low-income person. "Low-income person" means a person who has an
140.8annual income, adjusted for family size, of not more than 80 percent of the area median
140.9family income for the Twin Cities metropolitan area as of the latest report by the United
140.10States Census Bureau.

140.11    Sec. 18. Minnesota Statutes 2014, section 116M.14, is amended by adding a
140.12subdivision to read:
140.13    Subd. 4b. Metropolitan area. "Metropolitan area" has the meaning given in section
140.14473.121, subdivision 2.

140.15    Sec. 19. Minnesota Statutes 2014, section 116M.14, is amended by adding a
140.16subdivision to read:
140.17    Subd. 6. Minority person. "Minority person" means a person belonging to a racial
140.18or ethnic minority as defined in Code of Federal Regulations, title 49, section 23.5.

140.19    Sec. 20. Minnesota Statutes 2014, section 116M.14, is amended by adding a
140.20subdivision to read:
140.21    Subd. 7. Program. "Program" means the Minnesota Initiative program created
140.22by this chapter.

140.23    Sec. 21. Minnesota Statutes 2014, section 116M.15, subdivision 1, is amended to read:
140.24    Subdivision 1. Creation; membership Membership. The Urban Minnesota
140.25Initiative Board is created and consists of the commissioner of employment and economic
140.26development, the chair of the Metropolitan Council, the commissioner of human rights,
140.27and eight 12 members from the general public appointed by the governor. Six Nine of the
140.28public members must be representatives from minority business enterprises. No more than
140.29four six of the public members may be of one gender. Appointments must ensure balanced
140.30geographic representation. At least half of the public members must have experience
141.1working to address racial income disparities. All public members must be experienced in
141.2business or economic development.

141.3    Sec. 22. Minnesota Statutes 2014, section 116M.17, subdivision 2, is amended to read:
141.4    Subd. 2. Technical assistance. The board through the department, shall provide
141.5technical assistance and development information services to state agencies, regional
141.6agencies, special districts, local governments, and the public, with special emphasis on
141.7minority communities informational outreach about the program to lenders, nonprofit
141.8corporations, and low-income and minority communities throughout the state that support
141.9the development of business enterprises and entrepreneurs.

141.10    Sec. 23. Minnesota Statutes 2014, section 116M.17, subdivision 4, is amended to read:
141.11    Subd. 4. Reports. The board shall submit an annual report to the legislature of an
141.12accounting of loans made under section 116M.18, including information on loans to
141.13minority business enterprises made, the number of jobs created by the program, the impact
141.14on low-income areas, and recommendations concerning minority business development
141.15and jobs for persons in low-income areas.

141.16    Sec. 24. Minnesota Statutes 2014, section 116M.18, is amended to read:
141.17116M.18 URBAN CHALLENGE GRANTS MINNESOTA INITIATIVE
141.18PROGRAM.
141.19    Subdivision 1. Establishment. The Minnesota Initiative program is established to
141.20award grants to nonprofit corporations to fund loans to businesses owned by minority or
141.21low-income persons or women.
141.22    Subd. 1a. Statewide loans. To the extent there is sufficient eligible demand,
141.23loans shall be made so that an approximately equal dollar amount of loans are made to
141.24businesses in the metropolitan area as in the nonmetropolitan area. If funds remain after
141.25the ninth month of the fiscal year, those funds shall revert to the general loan pool and may
141.26be lent in any part of the state.
141.27    Subdivision 1 Subd. 1b. Eligibility rules Grants. The board shall make urban
141.28challenge grants for use in low-income areas to nonprofit corporations to fund loans to
141.29businesses owned by minority or low-income persons or women, to encourage private
141.30investment, to provide jobs for minority and low-income persons and others in low-income
141.31areas, to create and strengthen minority business enterprises, and to promote economic
141.32development in a low-income area. The board shall adopt rules to establish criteria for
141.33determining loan eligibility.
142.1    Subd. 2. Challenge Grant eligibility; nonprofit corporation. (a) The board
142.2may enter into agreements with nonprofit corporations to fund and guarantee loans the
142.3nonprofit corporation makes in low-income areas under subdivision 4. A corporation must
142.4demonstrate that to businesses owned by minority or low-income persons or women. The
142.5board shall evaluate applications from nonprofit corporations. In evaluating applications,
142.6the board must consider, among other things, whether the nonprofit corporation:
142.7(1) its has a board of directors that includes citizens experienced in business
142.8and community development, minority business enterprises, addressing racial income
142.9disparities, and creating jobs in low-income areas for low-income and minority persons;
142.10(2) it has the technical skills to analyze projects;
142.11(3) it is familiar with other available public and private funding sources and
142.12economic development programs;
142.13(4) it can initiate and implement economic development projects;
142.14(5) it can establish and administer a revolving loan account or has operated a
142.15revolving loan account; and
142.16(6) it can work with job referral networks which assist minority and other persons in
142.17low-income areas low-income persons; and
142.18(7) has established relationships with minority communities.
142.19(b) The department shall review existing agreements with nonprofit corporations
142.20every five years and may renew or terminate the agreement based on the review. In making
142.21its review, the department shall consider, among other criteria, the criteria in paragraph (a).
142.22    Subd. 3. Revolving loan fund. (a) The board shall establish a revolving loan fund to
142.23make grants to nonprofit corporations for the purpose of making loans and loan guarantees
142.24to new and expanding businesses in a low-income area to promote owned by minority
142.25or low-income persons or women and to support minority business enterprises and job
142.26creation for minority and other persons in low-income areas low-income persons.
142.27(b) Nonprofit corporations that receive grants from the department under the
142.28program must establish a commissioner-certified revolving loan fund for the purpose
142.29of making eligible loans.
142.30(c) Eligible business enterprises include, but are not limited to, technologically
142.31innovative industries, value-added manufacturing, and information industries. Loan
142.32applications given preliminary approval by the nonprofit corporation must be forwarded to
142.33the board for approval. The commissioner must give final approval for each loan or loan
142.34guarantee made by the nonprofit corporation. The amount of the state funds contributed to
142.35any loan or loan guarantee may not exceed 50 percent of each loan.
143.1    Subd. 4. Business loan criteria. (a) The criteria in this subdivision apply to loans
143.2made or guaranteed by nonprofit corporations under the urban challenge grant program.
143.3(b) Loans or guarantees must be made to businesses that are not likely to undertake
143.4a project for which loans are sought without assistance from the urban challenge grant
143.5program.
143.6(c) A loan or guarantee must be used for a project designed to benefit persons in
143.7low-income areas through the creation of job or business opportunities for them to support
143.8a business owned by a minority or a low-income person or woman. Priority must be
143.9given for loans to the lowest income areas.
143.10(d) The minimum state contribution to a loan or guarantee is $5,000 and the
143.11maximum is $150,000.
143.12(e) The state contribution must be matched by at least an equal amount of new
143.13private investment.
143.14(f) A loan may not be used for a retail development project.
143.15(g) The business must agree to work with job referral networks that focus on
143.16minority and low-income applicants from low-income areas.
143.17    Subd. 4a. Microenterprise loan. Urban challenge Program grants may be
143.18used to make microenterprise loans to small, beginning businesses, including a sole
143.19proprietorship. Microenterprise loans are subject to this section except that:
143.20(1) they may also be made to qualified retail businesses;
143.21(2) they may be made for a minimum of $1,000 $5,000 and a maximum of $25,000
143.22$35,000; and
143.23(3) in a low-income area, they may be made for a minimum of $5,000 and a
143.24maximum of $50,000; and
143.25(3) (4) they do not require a match.
143.26    Subd. 5. Revolving fund administration; rules. (a) The board shall establish a
143.27minimum interest rate for loans or guarantees to ensure that necessary loan administration
143.28costs are covered.
143.29(b) Loan repayment amounts equal to one-half of the principal and interest must be
143.30deposited in a revolving fund created by the board for challenge grants. The remaining
143.31amount of the loan repayment may be paid to the department for deposit in the revolving
143.32loan fund. Loan interest payments must be deposited in a revolving loan fund created
143.33by the nonprofit corporation originating the loan being repaid for further distribution,
143.34consistent with the loan criteria specified in subdivision 4 of this section.
143.35(c) Administrative expenses of the board and nonprofit corporations with whom
143.36the board enters into agreements under subdivision 2, including expenses incurred by
144.1a nonprofit corporation in providing financial, technical, managerial, and marketing
144.2assistance to a business enterprise receiving a loan under subdivision 4, may be paid out of
144.3the interest earned on loans and out of interest earned on money invested by the state Board
144.4of Investment under section 116M.16, subdivision 2, as may be provided by the board.
144.5    Subd. 6. Rules. The board shall adopt rules to implement this section.
144.6    Subd. 6a. Nonprofit corporation loans. The board may make loans to a nonprofit
144.7corporation with which it has entered into an agreement under subdivision 1 2. These
144.8loans must be used to support a new or expanding business. This support may include
144.9such forms of financing as the sale of goods to the business on installment or deferred
144.10payments, lease purchase agreements, or royalty investments in the business. The interest
144.11rate charged by a nonprofit corporation for a loan under this subdivision must not exceed
144.12the Wall Street Journal prime rate plus four percent. For a loan under this subdivision, the
144.13nonprofit corporation may charge a loan origination fee equal to or less than one percent
144.14of the loan value. The nonprofit corporation may retain the amount of the origination fee.
144.15The nonprofit corporation must provide at least an equal match to the loan received by the
144.16board. The maximum loan available to the nonprofit corporation under this subdivision is
144.17$50,000. Loans made to the nonprofit corporation under this subdivision may be made
144.18without interest. Repayments made by the nonprofit corporation must be deposited in the
144.19revolving fund created for urban initiative program grants.
144.20    Subd. 7. Cooperation. A nonprofit corporation that receives an urban challenge a
144.21program grant shall cooperate with other organizations, including but not limited to,
144.22community development corporations, community action agencies, and the Minnesota
144.23small business development centers.
144.24    Subd. 8. Reporting requirements. A nonprofit corporation that receives a
144.25challenge program grant shall:
144.26(1) submit an annual report to the board by September March 30 of each year that
144.27includes a description of projects businesses supported by the urban challenge grant
144.28program, an account of loans made during the calendar year, the program's impact on
144.29minority business enterprises and job creation for minority persons and low-income
144.30persons in low-income areas, the source and amount of money collected and distributed by
144.31the urban challenge grant program, the program's assets and liabilities, and an explanation
144.32of administrative expenses; and
144.33(2) provide for an independent annual audit to be performed in accordance with
144.34generally accepted accounting practices and auditing standards and submit a copy of each
144.35annual audit report to the board.

145.1    Sec. 25. Minnesota Statutes 2014, section 124D.55, is amended to read:
145.2124D.55 GENERAL EDUCATION DEVELOPMENT (GED) TEST FEES.
145.3    The commissioner shall pay 60 percent of the fee that is charged to an eligible
145.4individual for the full battery of a general education development (GED) test, but not
145.5more than $40 for an eligible individual.
145.6For fiscal year 2017 only, the commissioner shall pay 100 percent of the fee that is
145.7charged to an eligible individual for the full battery of a general education development
145.8(GED) test, but not more than the cost of one full battery per year for any individual.

145.9    Sec. 26. [136A.123] MINNESOTA'S FUTURE TEACHERS GRANT PROGRAM.
145.10    Subdivision 1. Definitions. (a) For purposes of this section, the following terms
145.11have the meanings given.
145.12(b) "Eligible institution" means a postsecondary institution under section 136A.101,
145.13subdivision 4, located in Minnesota.
145.14(c) "High needs area" means a high needs area as defined by the Department of
145.15Education biannual teacher supply and demand report under section 127A.05, subdivision
145.166, or other surveys conducted by the Department of Education that provide indicators for
145.17teacher supply and demand needs not captured by the teacher supply and demand report.
145.18(d) "High needs school" means a school that:
145.19(1) has been designated a low performing school under the most recently passed
145.20version of the federal Elementary and Secondary Education Act; or
145.21(2) is above the state average in concentration of students qualifying for free and
145.22reduced-price lunch.
145.23(e) "Qualified candidate" means a student enrolled in an eligible institution with an
145.24approved teacher preparation program that meets the program eligibility requirements in
145.25subdivision 3.
145.26    Subd. 2. Program requirements. (a) The commissioner of the Office of Higher
145.27Education shall award grants to eligible institutions to facilitate undergraduate and
145.28graduate students, beginning in the 2017-2018 academic year, to become licensed
145.29teachers. The commissioner of the Office of Higher Education shall determine the
145.30maximum grant amount per institution and the maximum amount of the grant available
145.31for administrative and support services.
145.32(b) Grants must be awarded to programs at eligible institutions that demonstrate:
145.33(1) a majority of the grant will be used to reduce the tuition, fees, and costs for
145.34qualified candidates;
146.1(2) the ability of the program to perform outreach activities to encourage historically
146.2underserved students, students of color, and students interested in teaching in a high needs
146.3area or high needs school to participate in the program;
146.4(3) participating students will be provided with support services to ensure persistence
146.5and completion in their program and successful teacher licensure;
146.6(4) participating students will be provided with experiential opportunities to explore
146.7teacher and educator experiences;
146.8(5) participating students will provide a letter of intent, demonstrating their interest
146.9in teaching in a high needs area or high needs school, upon completing their teacher
146.10preparation program and receiving their teaching license.
146.11(c) A grantee must be provided mentoring. Mentoring must include, but is not
146.12limited to:
146.13(1) communicating frequently and consistently throughout program participation;
146.14(2) developing a personalized student success plan, which must include concrete
146.15steps towards program completion and job placement and identify and make contingency
146.16plans for potential obstacles to program completion;
146.17(3) connecting grantees to on-campus resources and personal development
146.18opportunities; and
146.19(4) financial planning.

146.20    Sec. 27. Minnesota Statutes 2014, section 256D.051, is amended to read:
146.21256D.051 FOOD STAMP EMPLOYMENT AND TRAINING PROGRAM.
146.22    Subdivision 1. Food stamp employment and training program. The
146.23commissioner shall implement a food stamp employment and training program in order to
146.24meet the food stamp employment and training participation requirements of the United
146.25States Department of Agriculture. Unless exempt under subdivision 3a, each adult
146.26recipient in the unit must participate in the food stamp employment and training program
146.27each month that the person is eligible for food stamps. The person's participation in
146.28food stamp employment and training services must begin no later than the first day of
146.29the calendar month following the determination of eligibility for food stamps. With the
146.30county agency's consent, and To the extent of available resources, the person a recipient
146.31may voluntarily continue volunteer to participate in food stamp employment and training
146.32services for up to three additional consecutive months immediately following termination
146.33of food stamp benefits in order to complete the provisions of the person's employability
146.34development plan. A recipient who volunteers for employment and training services is
146.35subject to work requirements in Code of Federal Regulations, title 7, section 273.7.
147.1    Subd. 1a. Notices and sanctions. (a) At the time the county agency notifies the
147.2household that it is eligible for food stamps, the county agency must: (1) inform all
147.3mandatory employment and training services participants as identified in subdivision 1
147.4in the household that they must comply with all food stamp employment and training
147.5program requirements each month, including the requirement to attend an initial
147.6orientation to the food stamp employment and training program and that food stamp
147.7eligibility will end unless the participants comply with the requirements specified in the
147.8notice adults of the opportunity to volunteer for and participate in SNAP employment
147.9and training activities; (2) provide plain language material that explains the benefits of
147.10voluntary participation; and (3) provide the name and address of the county's designated
147.11employment and training service provider.
147.12(b) A participant who fails without good cause to comply with food stamp
147.13employment and training program requirements of this section, including attendance
147.14at orientation, will lose food stamp eligibility for the following periods: The county
147.15must inform all recipients who are able-bodied adults without dependents that SNAP
147.16benefits are time limited to three months in a 36-month period from the first full month
147.17of application unless the recipient meets the work requirements in Code of Federal
147.18Regulations, title 7, section 273.7.
147.19(1) for the first occurrence, for one month or until the person complies with the
147.20requirements not previously complied with, whichever is longer;
147.21(2) for the second occurrence, for three months or until the person complies with the
147.22requirements not previously complied with, whichever is longer; or
147.23(3) for the third and any subsequent occurrence, for six months or until the person
147.24complies with the requirements not previously complied with, whichever is longer.
147.25If the participant is not the food stamp head of household, the person shall be
147.26considered an ineligible household member for food stamp purposes. If the participant is
147.27the food stamp head of household, the entire household is ineligible for food stamps as
147.28provided in Code of Federal Regulations, title 7, section 273.7(g). "Good cause" means
147.29circumstances beyond the control of the participant, such as illness or injury, illness or
147.30injury of another household member requiring the participant's presence, a household
147.31emergency, or the inability to obtain child care for children between the ages of six and
147.3212 or to obtain transportation needed in order for the participant to meet the food stamp
147.33employment and training program participation requirements.
147.34(c) The county agency shall mail or hand deliver a notice to the participant not later
147.35than five days after determining that the participant has failed without good cause to
147.36comply with food stamp employment and training program requirements which specifies
148.1the requirements that were not complied with, the factual basis for the determination of
148.2noncompliance, and the right to reinstate eligibility upon a showing of good cause for
148.3failure to meet the requirements. The notice must ask the reason for the noncompliance
148.4and identify the participant's appeal rights. The notice must request that the participant
148.5inform the county agency if the participant believes that good cause existed for the failure
148.6to comply and must state that the county agency intends to terminate eligibility for food
148.7stamp benefits due to failure to comply with food stamp employment and training program
148.8requirements.
148.9(d) If the county agency determines that the participant did not comply during the
148.10month with all food stamp employment and training program requirements that were in
148.11effect, and if the county agency determines that good cause was not present, the county
148.12must provide a ten-day notice of termination of food stamp benefits. The amount of
148.13food stamps that are withheld from the household and determination of the impact of
148.14the sanction on other household members is governed by Code of Federal Regulations,
148.15title 7, section 273.7.
148.16(e) The participant may appeal the termination of food stamp benefits under the
148.17provisions of section 256.045.
148.18    Subd. 2. County agency duties. (a) The county agency shall provide to food stamp
148.19recipients a food stamp employment and training program. The program must include:
148.20(1) orientation to the food stamp employment and training program;
148.21(2) an individualized employability assessment and an individualized employability
148.22development plan that includes assessment of literacy, ability to communicate in the
148.23English language, educational and employment history, and that estimates the length of
148.24time it will take the participant to obtain employment. The employability assessment and
148.25development plan must be completed in consultation with the participant, must assess the
148.26participant's assets, barriers, and strengths, and must identify steps necessary to overcome
148.27barriers to employment. A copy of the employability development plan must be provided
148.28to the registrant;
148.29(3) referral to available accredited remedial or skills training or career pathway
148.30programs designed to address participant's barriers to employment;
148.31(4) referral to available programs that provide subsidized or unsubsidized
148.32employment as necessary;
148.33(5) a job search program, including job seeking skills training; and
148.34(6) other activities, to the extent of available resources designed by the county
148.35agency to prepare the participant for permanent employment.
149.1In order to allow time for job search, the county agency may not require an individual
149.2to participate in the food stamp employment and training program for more than 32 hours
149.3a week. The county agency shall require an individual to spend at least eight hours a week
149.4in job search or other food stamp employment and training program activities.
149.5(b) The county agency shall prepare an annual plan for the operation of its food
149.6stamp employment and training program. The plan must be submitted to and approved by
149.7the commissioner of employment and economic development. The plan must include:
149.8(1) a description of the services to be offered by the county agency;
149.9(2) a plan to coordinate the activities of all public and private nonprofit entities
149.10providing employment-related services in order to avoid duplication of effort and to
149.11provide a wide range of allowable activities and services more efficiently;
149.12(3) a description of the factors that will be taken into account when determining a
149.13client's employability development plan; and
149.14(4) provisions to ensure that the county agency's employment and training service
149.15provider provides providers provide each recipient with an orientation, employability
149.16assessment, and employability development plan as specified in paragraph (a), clauses (1)
149.17and (2), within 30 days of the recipient's eligibility for assistance request to participate in
149.18employment and training.
149.19    Subd. 2a. Duties of commissioner. In addition to any other duties imposed by law,
149.20the commissioner shall:
149.21(1) based on this section and section 256D.052 and Code of Federal Regulations,
149.22title 7, section 273.7, supervise the administration of food stamp employment and training
149.23services to county agencies;
149.24(2) disburse money appropriated for food stamp employment and training services
149.25to county agencies based upon the county's costs as specified in section 256D.051,
149.26subdivision 6c ;
149.27(3) accept and supervise the disbursement of any funds that may be provided by the
149.28federal government or from other sources for use in this state for food stamp employment
149.29and training services;
149.30(4) cooperate with other agencies including any agency of the United States or of
149.31another state in all matters concerning the powers and duties of the commissioner under
149.32this section and section 256D.052; and
149.33(5) in cooperation with the commissioner of employment and economic
149.34development, ensure that each component of an employment and training program carried
149.35out under this section is delivered through a statewide workforce development system,
149.36unless the component is not available locally through such a system.
150.1    Subd. 3. Participant duties. In order to receive food stamp assistance employment
150.2and training services, a registrant participant who volunteers shall: (1) cooperate with
150.3the county agency in all aspects of the food stamp employment and training program;
150.4and (2) accept any suitable employment, including employment offered through the Job
150.5Training Partnership Act, and other employment and training options; and (3) participate
150.6in food stamp employment and training activities assigned by the county agency. The
150.7county agency may terminate employment and training assistance to a registrant voluntary
150.8participant who fails to cooperate in the food stamp employment and training program, as
150.9provided in subdivision 1a unless good cause is provided.
150.10    Subd. 3a. Requirement to register work. (a) To the extent required under Code
150.11of Federal Regulations, title 7, section 273.7(a), each applicant for and recipient of
150.12food stamps is required to register for work as a condition of eligibility for food stamp
150.13benefits. Applicants and recipients are registered by signing an application or annual
150.14reapplication for food stamps, and must be informed that they are registering for work
150.15by signing the form.
150.16(b) The commissioner shall determine, within federal requirements, persons required
150.17to participate in the food stamp employment and training (FSET) program.
150.18(c) The following food stamp recipients are exempt from mandatory participation in
150.19food stamp employment and training services:
150.20(1) recipients of benefits under the Minnesota family investment program, Minnesota
150.21supplemental aid program, or the general assistance program;
150.22(2) a child;
150.23(3) a recipient over age 55;
150.24(4) a recipient who has a mental or physical illness, injury, or incapacity which is
150.25expected to continue for at least 30 days and which impairs the recipient's ability to obtain
150.26or retain employment as evidenced by professional certification or the receipt of temporary
150.27or permanent disability benefits issued by a private or government source;
150.28(5) a parent or other household member responsible for the care of either a
150.29dependent child in the household who is under age six or a person in the household who is
150.30professionally certified as having a physical or mental illness, injury, or incapacity. Only
150.31one parent or other household member may claim exemption under this provision;
150.32(6) a recipient receiving unemployment insurance or who has applied for
150.33unemployment insurance and has been required to register for work with the Department
150.34of Employment and Economic Development as part of the unemployment insurance
150.35application process;
151.1(7) a recipient participating each week in a drug addiction or alcohol abuse treatment
151.2and rehabilitation program, provided the operators of the treatment and rehabilitation
151.3program, in consultation with the county agency, recommend that the recipient not
151.4participate in the food stamp employment and training program;
151.5(8) a recipient employed or self-employed for 30 or more hours per week at
151.6employment paying at least minimum wage, or who earns wages from employment equal
151.7to or exceeding 30 hours multiplied by the federal minimum wage; or
151.8(9) a student enrolled at least half time in any school, training program, or institution
151.9of higher education. When determining if a student meets this criteria, the school's,
151.10program's or institution's criteria for being enrolled half time shall be used.
151.11    Subd. 3b. Orientation. The county agency or its employment and training service
151.12provider providers must provide an orientation to food stamp employment and training
151.13services to each nonexempt food stamp recipient within 30 days of the date that food
151.14stamp eligibility is determined recipient within 30 days of the date that they agree to
151.15volunteer. The orientation must inform the participant of the requirement to participate
151.16benefits of participating in services, the date, time, and address to report to for services,
151.17the name and telephone number of the food stamp employment and training service
151.18provider, the consequences for failure without good cause to comply, the services and
151.19support services available through food stamp employment and training services and other
151.20providers of similar services, and must encourage the participant to view the food stamp
151.21program as a temporary means of supplementing the family's food needs until the family
151.22achieves self-sufficiency through employment. The orientation may be provided through
151.23audio-visual methods, but the participant must have the opportunity for face-to-face
151.24interaction with county agency staff.
151.25    Subd. 6b. Federal reimbursement. Federal financial participation from the United
151.26States Department of Agriculture for food stamp employment and training expenditures
151.27that are eligible for reimbursement through the food stamp employment and training
151.28program are dedicated funds and are annually appropriated to the commissioner of human
151.29services for the operation of the food stamp employment and training program. Funds
151.30appropriated under this subdivision must be used for skill attainment through employment,
151.31training, and support services for food stamp participants. Up to ten percent of the funds
151.32may be used for the administrative costs of capturing additional federal reimbursement
151.33dollars. By February 15, 2017, the commissioner shall report to the legislative committees
151.34having jurisdiction over the food stamp program on the progress of securing additional
151.35federal reimbursements dollars. Federal financial participation for the nonstate portion of
151.36food stamp employment and training costs must be paid to the county agency or services
152.1provider that incurred the costs at a rate to be determined by the Departments of Human
152.2Services and Employment and Economic Development.
152.3    Subd. 6c. Program funding. Within the limits of available resources, the
152.4commissioner shall reimburse the actual costs of county agencies and their employment
152.5and training service providers for the provision of food stamp employment and training
152.6services, including participant support services, direct program services, and program
152.7administrative activities. The cost of services for each county's food stamp employment and
152.8training program shall not exceed the annual allocated amount. No more than 15 percent of
152.9program funds may be used for administrative activities. The county agency may expend
152.10county funds in excess of the limits of this subdivision without state reimbursement.
152.11Program funds shall be allocated based on the county's average number of food
152.12stamp cases as compared to the statewide total number of such cases. The average number
152.13of cases shall be based on counts of cases as of March 31, June 30, September 30, and
152.14December 31 of the previous calendar year. The commissioner may reallocate unexpended
152.15money appropriated under this section to those county agencies that demonstrate a need
152.16for additional funds.
152.17    Subd. 7. Registrant status. A registrant under this section is not an employee for
152.18the purposes of workers' compensation, unemployment benefits, retirement, or civil service
152.19laws, and shall not perform work ordinarily performed by a regular public employee.
152.20    Subd. 8. Voluntary quit. A person who is required to participate in food stamp
152.21employment and training services is not eligible for food stamps if, without good cause,
152.22the person refuses a legitimate offer of, or quits, suitable employment within 60 days
152.23before the date of application. A person who is required to participate in food stamp
152.24employment and training services and, without good cause, voluntarily quits suitable
152.25employment or refuses a legitimate offer of suitable employment while receiving food
152.26stamps shall be terminated from the food stamp program as specified in subdivision 1a.
152.27    Subd. 9. Subcontractors. A county agency may, at its option, subcontract any or all
152.28of the duties under this section to a public or private entity approved by the commissioner
152.29of employment and economic development.
152.30    Subd. 18. Work experience Workfare placements. (a) To the extent of available
152.31resources, each county agency must establish and operate a work experience workfare
152.32component in the food stamp employment and training program for recipients who are
152.33subject to a federal limit of three months of food stamp eligibility in any 36-month period.
152.34The purpose of the work experience workfare component is to enhance the participant's
152.35employability, self-sufficiency, and to provide meaningful, productive work activities.
153.1(b) The commissioner shall assist counties in the design and implementation of these
153.2components. The commissioner must ensure that job placements under a work experience
153.3workfare component comply with section 256J.72. Written or oral concurrence with job
153.4duties of persons placed under the community work experience workfare program shall be
153.5obtained from the appropriate exclusive bargaining representative.
153.6(c) Worksites developed under this section are limited to projects that serve a useful
153.7public service such as health, social service, environmental protection, education, urban
153.8and rural development and redevelopment, welfare, recreation, public facilities, public
153.9safety, community service, services to aged or disabled citizens, and child care. To the
153.10extent possible, the prior training, skills, and experience of a recipient must be used in
153.11making appropriate work experience workfare assignments.
153.12(d) Structured, supervised volunteer uncompensated work with an agency or
153.13organization that is monitored by the county service provider may, with the approval of
153.14the county agency, be used as a work experience workfare placement.
153.15(e) As a condition of placing a person receiving food stamps in a program under this
153.16subdivision, the county agency shall first provide the recipient the opportunity:
153.17(1) for placement in suitable subsidized or unsubsidized employment through
153.18participation in job search under section 256D.051; or
153.19(2) for placement in suitable employment through participation in on-the-job training
153.20a paid work experience, if such employment is available.; or
153.21(3) for placement in an educational program designed to increase job skills and
153.22employability.
153.23(f) The county agency shall limit the maximum monthly number of hours that any
153.24participant may work in a work experience workfare placement to a number equal to the
153.25amount of the family's monthly food stamp allotment divided by the greater of the federal
153.26minimum wage or the applicable state minimum wage.
153.27After a participant has been assigned to a position for nine six months, the participant
153.28may not continue in that assignment unless the maximum number of hours a participant
153.29works is no greater than the amount of the food stamp benefit divided by the rate of pay
153.30for individuals employed in the same or similar occupations by the same employer at
153.31the same site.
153.32(g) The participant's employability development plan must include the length
153.33of time needed in the work experience workfare program, the need to continue job
153.34seeking activities while participating in work experience the workfare program, and the
153.35participant's employment goals.
154.1(h) After each six months of a recipient's participation in a work experience job
154.2workfare placement, and at the conclusion of each work experience workfare assignment
154.3under this section, the county agency shall reassess and revise, as appropriate, the
154.4participant's employability development plan.
154.5(i) A participant has good cause for failure to cooperate with a work experience job
154.6workfare placement if, in the judgment of the employment and training service provider,
154.7the reason for failure is reasonable and justified. Good cause for purposes of this section is
154.8defined in subdivision 1a, paragraph (b).
154.9(j) A recipient who has failed without good cause to participate in or comply with the
154.10work experience job a workfare placement shall be terminated from participation in work
154.11experience job workfare activities. If the recipient is not exempt from mandatory food
154.12stamp employment and training program participation under subdivision 3a, the recipient
154.13will be assigned to other mandatory program activities. If the recipient is exempt from
154.14mandatory participation but is participating as a volunteer, the person shall be terminated
154.15from the food stamp employment and training program.

154.16    Sec. 28. Laws 2013, chapter 108, article 14, section 2, subdivision 1, as amended by
154.17Laws 2014, chapter 312, article 31, section 3, is amended to read:

154.18

Subdivision 1.Total Appropriation

$

6,437,815,000

$

6,456,311,000

154.19	Appropriations by Fund
154.20		2014	2015
154.21	General	5,654,095,000	5,676,652,000
154.22 154.23	State Government Special Revenue	4,099,000	4,510,000
154.24	Health Care Access	519,816,000	518,446,000
154.25	Federal TANF	257,915,000	254,813,000
154.26	Lottery Prize Fund	1,890,000	1,890,000

154.27Receipts for Systems Projects.
154.28Appropriations and federal receipts for
154.29information systems projects for MAXIS,
154.30PRISM, MMIS, and SSIS must be deposited
154.31in the state system account authorized
154.32in Minnesota Statutes, section 256.014.
154.33Money appropriated for computer projects
154.34approved by the commissioner of Minnesota
154.35information technology services, funded
154.36by the legislature, and approved by the
155.1commissioner of management and budget,
155.2may be transferred from one project to
155.3another and from development to operations
155.4as the commissioner of human services
155.5considers necessary. Any unexpended
155.6balance in the appropriation for these
155.7projects does not cancel but is available for
155.8ongoing development and operations.
155.9Nonfederal Share Transfers. The
155.10nonfederal share of activities for which
155.11federal administrative reimbursement is
155.12appropriated to the commissioner may be
155.13transferred to the special revenue fund.
155.14ARRA Supplemental Nutrition Assistance
155.15Benefit Increases. The funds provided for
155.16food support benefit increases under the
155.17Supplemental Nutrition Assistance Program
155.18provisions of the American Recovery and
155.19Reinvestment Act (ARRA) of 2009 must be
155.20used for benefit increases beginning July 1,
155.212009.
155.22Supplemental Nutrition Assistance
155.23Program Employment and Training.
155.24(1) Notwithstanding Minnesota Statutes,
155.25sections 256D.051, subdivisions 1a, 6b,
155.26and 6c, and 256J.626, federal Supplemental
155.27Nutrition Assistance employment and
155.28training funds received as reimbursement of
155.29MFIP consolidated fund grant expenditures
155.30for diversionary work program participants
155.31and child care assistance program
155.32expenditures must be deposited in the general
155.33fund. The amount of funds must be limited to
155.34$4,900,000 per year in fiscal years 2014 and
155.352015, and to $4,400,000 per year in fiscal
156.1years year 2016 and 2017, contingent on
156.2approval by the federal Food and Nutrition
156.3Service.
156.4(2) Notwithstanding Minnesota Statutes,
156.5sections 256D.051, subdivisions 1a, 6b, and
156.66c, and 256J.626, in fiscal year 2017, up to
156.7$4,400,000 in federal Supplemental Nutrition
156.8Assistance employment and training
156.9funds received as reimbursement of MFIP
156.10consolidated fund grant expenditures for
156.11diversionary work program participants and
156.12child care assistance program expenditures
156.13is appropriated to the commissioner of
156.14human services to expand the Supplemental
156.15Nutrition Assistance Program Employment
156.16and Training Program, including
156.17administrative costs, contingent on approval
156.18by the federal Food and Nutrition Service.
156.19(2) (3) Consistent with the receipt of the
156.20federal funds, the commissioner may
156.21adjust the level of working family credit
156.22expenditures claimed as TANF maintenance
156.23of effort. Notwithstanding any contrary
156.24provision in this article, this rider expires
156.25June 30, 2017.
156.26TANF Maintenance of Effort. (a) In order
156.27to meet the basic maintenance of effort
156.28(MOE) requirements of the TANF block grant
156.29specified under Code of Federal Regulations,
156.30title 45, section 263.1, the commissioner may
156.31only report nonfederal money expended for
156.32allowable activities listed in the following
156.33clauses as TANF/MOE expenditures:
157.1(1) MFIP cash, diversionary work program,
157.2and food assistance benefits under Minnesota
157.3Statutes, chapter 256J;
157.4(2) the child care assistance programs
157.5under Minnesota Statutes, sections 119B.03
157.6and 119B.05, and county child care
157.7administrative costs under Minnesota
157.8Statutes, section 119B.15;
157.9(3) state and county MFIP administrative
157.10costs under Minnesota Statutes, chapters
157.11256J and 256K;
157.12(4) state, county, and tribal MFIP
157.13employment services under Minnesota
157.14Statutes, chapters 256J and 256K;
157.15(5) expenditures made on behalf of legal
157.16noncitizen MFIP recipients who qualify for
157.17the MinnesotaCare program under Minnesota
157.18Statutes, chapter 256L;
157.19(6) qualifying working family credit
157.20expenditures under Minnesota Statutes,
157.21section 290.0671;
157.22(7) qualifying Minnesota education credit
157.23expenditures under Minnesota Statutes,
157.24section 290.0674; and
157.25(8) qualifying Head Start expenditures under
157.26Minnesota Statutes, section 119A.50.
157.27(b) The commissioner shall ensure that
157.28sufficient qualified nonfederal expenditures
157.29are made each year to meet the state's
157.30TANF/MOE requirements. For the activities
157.31listed in paragraph (a), clauses (2) to
157.32(8), the commissioner may only report
157.33expenditures that are excluded from the
158.1definition of assistance under Code of
158.2Federal Regulations, title 45, section 260.31.
158.3(c) For fiscal years beginning with state fiscal
158.4year 2003, the commissioner shall ensure
158.5that the maintenance of effort used by the
158.6commissioner of management and budget
158.7for the February and November forecasts
158.8required under Minnesota Statutes, section
158.916A.103 , contains expenditures under
158.10paragraph (a), clause (1), equal to at least 16
158.11percent of the total required under Code of
158.12Federal Regulations, title 45, section 263.1.
158.13(d) The requirement in Minnesota Statutes,
158.14section 256.011, subdivision 3, that federal
158.15grants or aids secured or obtained under that
158.16subdivision be used to reduce any direct
158.17appropriations provided by law, do not apply
158.18if the grants or aids are federal TANF funds.
158.19(e) For the federal fiscal years beginning on
158.20or after October 1, 2007, the commissioner
158.21may not claim an amount of TANF/MOE in
158.22excess of the 75 percent standard in Code
158.23of Federal Regulations, title 45, section
158.24263.1(a)(2), except:
158.25(1) to the extent necessary to meet the 80
158.26percent standard under Code of Federal
158.27Regulations, title 45, section 263.1(a)(1),
158.28if it is determined by the commissioner
158.29that the state will not meet the TANF work
158.30participation target rate for the current year;
158.31(2) to provide any additional amounts
158.32under Code of Federal Regulations, title 45,
158.33section 264.5, that relate to replacement of
158.34TANF funds due to the operation of TANF
158.35penalties; and
159.1(3) to provide any additional amounts that
159.2may contribute to avoiding or reducing
159.3TANF work participation penalties through
159.4the operation of the excess MOE provisions
159.5of Code of Federal Regulations, title 45,
159.6section 261.43(a)(2).
159.7(f) For the purposes of paragraph (e), clauses
159.8(1) to (3), the commissioner may supplement
159.9the MOE claim with working family credit
159.10expenditures or other qualified expenditures
159.11to the extent such expenditures are otherwise
159.12available after considering the expenditures
159.13allowed in this subdivision and subdivisions
159.14subdivision 2 and 3.
159.15(f) (g) Notwithstanding any contrary
159.16provision in this article, paragraphs (a) to (e)
159.17expire June 30, 2017 2019.
159.18Working Family Credit Expenditures
159.19as TANF/MOE. The commissioner may
159.20claim as TANF maintenance of effort up to
159.21$6,707,000 per year of working family credit
159.22expenditures in each fiscal year.

159.23    Sec. 29. Laws 2015, First Special Session chapter 1, article 1, section 3, subdivision 5,
159.24is amended to read:

159.25 159.26

Subd. 5.Family Homeless Prevention

8,519,000

8,519,000 8,769,000

159.27This appropriation is for the family homeless
159.28prevention and assistance programs under
159.29Minnesota Statutes, section 462A.204. Of
159.30this amount, $250,000 in the second year
159.31is a onetime appropriation for grants to
159.32eligible applicants to create or expand risk
159.33mitigation programs to reduce landlord
159.34financial risks for renting to persons eligible
160.1under Minnesota Statutes, section 462A.204.
160.2Eligible programs may reimburse landlords
160.3for costs including but not limited to
160.4nonpayment of rent, or damage costs above
160.5those costs covered by security deposits. The
160.6agency may give higher priority to applicants
160.7that can demonstrate a matching amount
160.8of money by a local unit of government,
160.9business, or nonprofit organization. Grantees
160.10must establish a procedure to review and
160.11validate claims and reimbursements under
160.12this grant program.

160.13    Sec. 30. Laws 2015, First Special Session chapter 1, article 1, section 3, subdivision 6,
160.14is amended to read:

160.15 160.16

Subd. 6.Home Ownership Assistance Fund

885,000

885,000 3,885,000

160.17This appropriation is for the home ownership
160.18assistance program under Minnesota
160.19Statutes, section 462A.21, subdivision 8.
160.20The agency shall continue to strengthen
160.21its efforts to address the disparity gap in
160.22the homeownership rate between white
160.23households and indigenous American Indians
160.24and communities of color.

160.25    Sec. 31. Laws 2015, First Special Session chapter 1, article 1, section 3, subdivision
160.2610, is amended to read:

160.27 160.28

Subd. 10.Capacity Building Grants

375,000

375,000 875,000

160.29(a) This appropriation is for nonprofit
160.30capacity building grants under Minnesota
160.31Statutes, section 462A.21, subdivision 3b.
160.32Of this amount, $125,000 each year is
160.33for support of the Homeless Management
160.34Information System (HMIS).
161.1(b) $500,000 is a onetime appropriation
161.2for competitive grants to nonprofit housing
161.3organizations, housing and redevelopment
161.4authorities, or other political subdivisions
161.5to provide intensive financial education and
161.6coaching services to individuals or families
161.7who have the goal of homeownership.
161.8Financial education and coaching services
161.9include but are not limited to asset building,
161.10development of spending plans, credit report
161.11education, repair and rebuilding, consumer
161.12protection training, and debt reduction.
161.13Priority must be given to organizations
161.14that have experience serving underserved
161.15populations.

161.16    Sec. 32. Laws 2015, First Special Session chapter 3, article 11, section 3, subdivision
161.173, is amended to read:
161.18    Subd. 3. GED tests. For payment of 60 percent of the costs of GED tests as
161.19provided under Minnesota Statutes, section 124D.55:

161.20		$	125,000	.....	2016
161.21 161.22		$	125,000 245,000	.....	2017

161.23The base appropriation for fiscal year 2018 and later is $125,000.

161.24    Sec. 33. STEPPING UP FOR KIDS; FINANCIAL ASSISTANCE.
161.25    Subdivision 1. Definitions. (a) For purposes of this section, the following terms
161.26have the meanings given.
161.27(b) "High needs area" means a high needs area as defined in the Department of
161.28Education biannual teacher supply and demand report under Minnesota Statutes, section
161.29127A.05, subdivision 6, or other surveys conducted by the Department of Education
161.30that provide indicators for teacher supply and demand needs not captured by the teacher
161.31supply and demand report.
161.32(c) "High needs school" means a school that:
161.33(1) is identified as a low performing school under federal expectations; and
162.1(2) is above the state average in concentration of students qualifying for free and
162.2reduced-price lunch.
162.3(d) "Qualified candidate" means a paraprofessional employed in a Minnesota school
162.4currently or within the past three years who has been admitted to an institution as defined
162.5under Minnesota Statutes, section 136A.101, subdivision 4, located in Minnesota with
162.6an approved Minnesota teacher licensure program and meets the program eligibility
162.7requirements in subdivision 3 and in policies adopted under subdivision 5.
162.8    Subd. 2. Eligibility. (a) A qualified candidate may apply, beginning in the
162.92017-2018 academic year, to the commissioner of the Office of Higher Education to
162.10receive financial assistance under this section. The commissioner of the Office of Higher
162.11Education shall award financial assistance to paraprofessionals employed in high needs
162.12areas or high needs schools based on shortages, geographical distribution, or other surveys
162.13conducted by the Department of Education and must take into consideration diversifying
162.14the teacher workforce. The application must include a letter of support from the designated
162.15school district administrator where the paraprofessional is employed.
162.16(b) A candidate must commit to remain employed in a Minnesota school district for
162.17four years upon completion of teacher preparation as verified through the Staff Automated
162.18Reporting (STAR) system maintained by the Department of Education. A candidate
162.19who does not complete the four-year service commitment may be required to repay the
162.20financial assistance.
162.21(c) A candidate must provide a letter of intent, demonstrating an interest in teaching
162.22in a high needs area or high needs school, upon completing the teacher preparation
162.23program and receiving a teaching license.
162.24    Subd. 3. Usage. The financial assistance may only be used for tuition and related
162.25living and miscellaneous expenses required to complete teacher preparation and attain
162.26licensure.
162.27    Subd. 4. Policymaking. The commissioner of education with assistance from the
162.28commissioner of the Office of Higher Education shall adopt policies or procedures to
162.29implement this section, including:
162.30(1) additional eligibility and renewal criteria;
162.31(2) annual and lifetime maximum awards per student; and
162.32(3) service fulfillment and repayment criteria.

162.33    Sec. 34. GOOD FOOD ACCESS ADVISORY COMMITTEE.
162.34The commissioner of agriculture and designating authorities must make their initial
162.35appointments and designations by July 1, 2016, for the Good Food Access Advisory
163.1Committee established under Minnesota Statutes, section 17.1018. The commissioner of
163.2agriculture or the commissioner's designee must convene the first meeting of the Good
163.3Food Access Advisory Committee by September 1, 2016.

163.4    Sec. 35. REQUIREMENTS FOR GRANTS TO INDIVIDUALLY SPECIFIED
163.5RECIPIENTS.
163.6(a) Application. This section applies to any grant funded under this act where the
163.7recipient of the grant is individually specified in this act. The commissioner serving as the
163.8fiscal agent for the grant must ensure compliance with the requirements of this section, and
163.9all applicable requirements under existing law, including applicable grants management
163.10policies and procedures established by the Office of Grants Management.
163.11(b) Prerequisites. Before any funding is provided to the grant recipient, the
163.12recipient must provide the fiscal agent with a description of the following information in
163.13a grant application:
163.14(1) the purpose of the grant, including goals, priorities, and measurable outcomes;
163.15(2) eligibility requirements for individuals who will be served by the grant program;
163.16(3) the proposed geographic service areas for individuals served by the grant; and
163.17(4) the reporting requirements.
163.18These requirements are in addition to any requirements under existing laws and policies.
163.19(c) Financial Review. Office of Grants Management Operating Policy and
163.20Procedure number 08-06, titled "Policy on the Financial Review of Nongovernmental
163.21Organizations" applies in pertinent part to all grants covered by paragraph (a).
163.22(d) Reporting to Fiscal Agent. In addition to meeting any reporting requirements
163.23included in the grant agreement, grant recipients subject to this section must provide the
163.24following information to the commissioner serving as fiscal agent:
163.25(1) a detailed accounting of the use of any grant proceeds;
163.26(2) a description of program outcomes to date, including performance measured
163.27against indicators specified in the grant agreement, including, but not limited to, job
163.28creation, employment activity, wage information, business formation or expansion, and
163.29academic performance; and
163.30(3) the portion of the grant, if any, spent on the recipient's operating expenses.
163.31Grant recipients must report the information required under this paragraph to the fiscal
163.32agent within one year after receiving any portion of the grant, annually thereafter, and
163.33within 30 days following the use of all funds provided under the grant.
163.34(e) Reporting to Legislature. Beginning January 15, 2017, a commissioner serving
163.35as a fiscal agent for a grant subject to this section must submit a report containing the
164.1information provided by the grant recipients to the chairs and ranking minority members
164.2of the legislative committees and budget divisions with jurisdiction over the agency
164.3serving as fiscal agent for the grant. The report submitted under this section must also
164.4include the commissioner's summary of the use of grant proceeds, and an analysis of
164.5the grant recipients' success in meeting the goals, priorities, and measurable outcomes
164.6specified for the grant. An updated version of this report must be submitted on January
164.715 of each succeeding year until January 15 in the year following the date when all of
164.8the grant funds have been spent.

164.9    Sec. 36. ETHNIC COUNCIL REVIEW.
164.10The commissioners of each agency appropriated money in this article may consult
164.11with the four ethnic councils under Minnesota Statutes, sections 3.922 and 15.0145,
164.12regarding implementation of the programs funded under this article. Any request for
164.13proposals developed by a state agency as a result of this article may be reviewed by the
164.14four ethnic councils prior to public submission.
164.15EFFECTIVE DATE.This section is effective the day following final enactment.

164.16    Sec. 37. REVISOR'S INSTRUCTION.
164.17In the next editions of Minnesota Statutes and Minnesota Rules, the Revisor of
164.18Statutes shall change the term "Urban Initiative Board" to "Minnesota Initiative Board,"
164.19"board," or similar terms as the context requires.

164.20    Sec. 38. REPEALER.
164.21Laws 2015, First Special Session chapter 1, article 1, section 2, subdivision 8, is
164.22repealed.
164.23EFFECTIVE DATE.This section is effective the day following final enactment.

164.24ARTICLE 7

164.25ENVIRONMENT AND ENERGY

164.26

Section 1. APPROPRIATIONS.

164.27The sums shown in the columns marked "Appropriations" are added to the
164.28appropriations in Laws 2015, First Special Session chapter 4, or appropriated to the
164.29agencies and for the purposes specified in this article. The appropriations are from the
164.30general fund, or another named fund, and are available for the fiscal year indicated for
164.31each purpose. The figures "2016" and "2017" used in this article mean that the addition
165.1to the appropriations listed under them are available for the fiscal year ending June 30,
165.22016, or June 30, 2017, respectively. "The first year" is fiscal year 2016. "The second
165.3year" is fiscal year 2017. Appropriations for fiscal year 2016 are effective the day
165.4following final enactment.

165.5				APPROPRIATIONS
165.6				Available for the Year
165.7				Ending June 30
165.8					2016		2017

165.9

Sec. 2. POLLUTION CONTROL AGENCY

165.10

Subdivision 1.Total Appropriation

$

143,000

$

6,867,000

165.11	Appropriations by Fund
165.12		2016	2017
165.13	General	143,000	2,759,000
165.14	Environmental	-0-	4,108,000

165.15

Subd. 2.Water

-0-

1,146,000

165.16$923,000 the second year is to meet the
165.17increased demand for technical assistance
165.18and review of municipal water infrastructure
165.19projects that will be generated by increased
165.20grant funding through the Public Facilities
165.21Authority. This is a onetime appropriation
165.22and is available until June 30, 2019.
165.23$108,000 the second year is from the
165.24environmental fund to manage a rulemaking
165.25process to enhance equity in the water
165.26program permit fee structure.
165.27$115,000 the second year is for the working
165.28lands program feasibility study and program
165.29plan. This is a onetime appropriation and is
165.30available until June 30, 2018.

165.31

Subd. 3.Land

-0-

432,000

165.32$432,000 the second year is to manage
165.33contaminated sediment projects at multiple
165.34sites identified in the St. Louis River
166.1remedial action plan to restore water quality
166.2in the St. Louis River area of concern. This
166.3amount is added to the base for fiscal years
166.42018, 2019, and 2020 only.

166.5 166.6

Subd. 4.Environmental Assistance and Cross-Media

-0-

4,000,000

166.7$4,000,000 is appropriated from the
166.8environmental fund for SCORE block grants
166.9to counties. This amount is in addition to the
166.10amounts appropriated in Laws 2015, First
166.11Special Session chapter 4, article 3, section 2,
166.12subdivision 5. The forecast base for SCORE
166.13grants in fiscal year 2018 is $21,250,000 and
166.14in fiscal year 2019 and later is $25,250,000.

166.15

Subd. 5.Administrative Services

143,000

1,289,000

166.16$143,000 the first year and $1,289,000
166.17the second year are for legal support costs
166.18related to the agency's environmental review
166.19and permitting decisions on the PolyMet
166.20NorthMet project. This is a onetime
166.21appropriation and is available until June 30,
166.222019.

166.23 166.24

Sec. 3. BOARD OF WATER AND SOIL RESOURCES

$

-0-

$

729,000

166.25$479,000 the second year is for the working
166.26lands program feasibility study and program
166.27plan. This is a onetime appropriation and is
166.28available until June 30, 2018.
166.29$250,000 the second year is to initiate
166.30development and coordination of Minnesota
166.31River Basin goals and strategies for sediment
166.32reduction, flow reduction, and nutrient
166.33reduction. This is a onetime appropriation.

167.1    Sec. 4. [103F.519] WORKING LANDS WATERSHED RESTORATION
167.2PROGRAM.
167.3    Subdivision 1. Definitions. (a) For purposes of this section, the following terms
167.4have the meanings given.
167.5(b) "Advanced biofuel" has the meaning given in section 239.051, subdivision 1a.
167.6(c) "Agricultural use" has the meaning given in section 17.81, subdivision 4.
167.7(d) "Biomass processing facility" means a facility producing electricity, advanced
167.8biofuel, renewable chemical, or biomass thermal energy from perennial crops.
167.9(e) "Biomass thermal energy" means energy generated from biomass for commercial
167.10heat or industrial process heat.
167.11(f) "Board" means the Board of Water and Soil Resources.
167.12(g) "Perennial crops" has the meaning given in section 41A.15, subdivision 9.
167.13(h) "Renewable chemical" has the meaning given in section 41A.15, subdivision 10.
167.14    Subd. 2. Establishment. The board, in consultation with the commissioner of
167.15agriculture, shall administer a program to incentivize the establishment and maintenance
167.16of perennial crops. The board shall contract with landowners and give priority to contracts
167.17that implement water protection actions as identified in a completed watershed restoration
167.18and protection strategy developed under section 114D.26.
167.19    Subd. 3. Eligible land. Land eligible under this section must:
167.20(1) have been in agricultural use for annual crop production or have been set aside,
167.21enrolled, or diverted under another federal or state government program for at least two
167.22of the last five years before the date of application; and
167.23(2) not be currently set aside, enrolled, or diverted under another federal or state
167.24government program.
167.25    Subd. 4. Contract terms; use as livestock feed. (a) The board shall offer a contract
167.26rate of no more than 90 percent of the most recent federal conservation reserve program
167.27payment for the county in which the land is located. The board may make additional
167.28payments to assist with the establishment of perennial crops.
167.29(b) Contracts must be at least ten years in duration.
167.30(c) Perennial crops grown on land enrolled under this section may be used by a
167.31biomass processing facility or for livestock feed. Perennial crops may be processed in a
167.32manner that utilizes a portion of the plant for livestock.
167.33(d) The board shall prioritize land with the highest potential to leverage federal
167.34funding.
167.35(e) The board may establish additional contract terms.
168.1    Subd. 5. Pilot watershed selection. The board may select up to two watersheds in
168.2which to conduct an initial pilot program of up to 100,000 total acres. Project watersheds
168.3must have, as determined by the board:
168.4(1) a completed watershed restoration and protection strategy developed under
168.5section 114D.26, or a hydrological simulation program model approved by the Pollution
168.6Control Agency;
168.7(2) multiple water quality impairments;
168.8(3) access to a viable proposed biomass processing facility for the perennial crops
168.9grown under this section; and
168.10(4) sufficient acres of cropland available for perennial crop production to adequately
168.11supply the proposed biomass processing facility.

168.12    Sec. 5. Minnesota Statutes 2014, section 115B.48, is amended by adding a subdivision
168.13to read:
168.14    Subd. 10. Owner or operator. "Owner or operator" means a person who:
168.15(1) owns or has owned a dry cleaning facility during the time the dry cleaning
168.16facility operated; or
168.17(2) operates or has operated a dry cleaning facility.
168.18EFFECTIVE DATE.This section is effective the day following final enactment.

168.19    Sec. 6. Minnesota Statutes 2014, section 115B.50, subdivision 3, is amended to read:
168.20    Subd. 3. Limitation on amount that may be spent. The commissioner may not, in
168.21a single fiscal year, make expenditures from the account related to a single dry cleaning
168.22facility that exceed 20 percent of the balance in the account at the beginning of the fiscal
168.23year $100,000.
168.24EFFECTIVE DATE.This section is effective the day following final enactment.

168.25    Sec. 7. Minnesota Statutes 2014, section 115B.50, is amended by adding a subdivision
168.26to read:
168.27    Subd. 4. Reimbursement adjustment rulemaking. The commissioner may use
168.28the expedited rulemaking process under section 14.389 to adjust reimbursement dollar
168.29amounts contained in the rules established under subdivision 2.

168.30    Sec. 8. Minnesota Statutes 2014, section 115C.13, is amended to read:
168.31115C.13 REPEALER.
169.1Sections 115C.01, 115C.02, 115C.021, 115C.03, 115C.04, 115C.045, 115C.05,
169.2115C.06 , 115C.065, 115C.07, 115C.08, 115C.09, 115C.093, 115C.094, 115C.10, 115C.11,
169.3115C.112 , 115C.113, 115C.12, and 115C.13, are repealed effective June 30, 2017 2022.

169.4    Sec. 9. Minnesota Statutes 2014, section 216B.2424, subdivision 5a, is amended to read:
169.5    Subd. 5a. Reduction of biomass mandate. (a) Notwithstanding subdivision 5, the
169.6biomass electric energy mandate must be reduced from 125 megawatts to 110 megawatts.
169.7(b) The Public Utilities Commission shall approve a request pending before the
169.8commission as of May 15, 2003, for amendments to and assignment of a power purchase
169.9agreement with the owner of a facility that uses short-rotation, woody crops as its primary
169.10fuel previously approved to satisfy a portion of the biomass mandate if the owner of
169.11the project agrees to reduce the size of its project from 50 megawatts to 35 megawatts,
169.12while maintaining an average price for energy in nominal dollars measured over the term
169.13of the power purchase agreement at or below $104 per megawatt-hour, exclusive of any
169.14price adjustments that may take effect subsequent to commission approval of the power
169.15purchase agreement, as amended. The commission shall also approve, as necessary, any
169.16subsequent assignment or sale of the power purchase agreement or ownership of the
169.17project to an entity owned or controlled, directly or indirectly, by two municipal utilities
169.18located north of Constitutional Route No. 8, as described in section 161.114, which
169.19currently own electric and steam generation facilities using coal as a fuel and which
169.20propose to retrofit their existing municipal electrical generating facilities to utilize biomass
169.21fuels in order to perform the power purchase agreement.
169.22(c) If the power purchase agreement described in paragraph (b) is assigned to an
169.23entity that is, or becomes, owned or controlled, directly or indirectly, by two municipal
169.24entities as described in paragraph (b), and the power purchase agreement meets the
169.25price requirements of paragraph (b), the commission shall approve any amendments to
169.26the power purchase agreement necessary to reflect the changes in project location and
169.27ownership and any other amendments made necessary by those changes. The commission
169.28shall also specifically find that:
169.29(1) the power purchase agreement complies with and fully satisfies the provisions of
169.30this section to the full extent of its 35-megawatt capacity;
169.31(2) all costs incurred by the public utility and all amounts to be paid by the public
169.32utility to the project owner under the terms of the power purchase agreement are fully
169.33recoverable pursuant to section 216B.1645;
170.1(3) subject to prudency review by the commission, the public utility may recover
170.2from its Minnesota retail customers the amounts that may be incurred and paid by the
170.3public utility during the full term of the power purchase agreement; and
170.4(4) if the purchase power agreement meets the requirements of this subdivision,
170.5it is reasonable and in the public interest.
170.6(d) The commission shall specifically approve recovery by the public utility of
170.7any and all Minnesota jurisdictional costs incurred by the public utility to improve,
170.8construct, install, or upgrade transmission, distribution, or other electrical facilities owned
170.9by the public utility or other persons in order to permit interconnection of the retrofitted
170.10biomass-fueled generating facilities or to obtain transmission service for the energy
170.11provided by the facilities to the public utility pursuant to section 216B.1645, and shall
170.12disapprove any provision in the power purchase agreement that requires the developer
170.13or owner of the project to pay the jurisdictional costs or that permit the public utility to
170.14terminate the power purchase agreement as a result of the existence of those costs or the
170.15public utility's obligation to pay any or all of those costs.
170.16(e) Upon request by the project owner, the public utility shall agree to amend the
170.17power purchase agreement described in paragraph (b) and approved by the commission
170.18as required by paragraph (c). The amendment must be negotiated and executed within
170.1945 days of May 14, 2013, and must apply to prices paid after January 1, 2014. The
170.20average price for energy in nominal dollars measured over the term of the power purchase
170.21agreement must not exceed $109.20 per megawatt hour. The public utility shall request
170.22approval of the amendment by the commission within 30 days of execution of the
170.23amended power purchase agreement. The amendment is not effective until approval
170.24by the commission. The commission shall act on the amendment within 90 days of
170.25submission of the request by the public utility. Upon approval of the amended power
170.26purchase agreement, the commission shall allow the public utility to recover the costs of
170.27the amended power purchase agreement, as provided in section 216B.1645.
170.28(f) With respect to the power purchase agreement described in paragraph (b), and
170.29amended and approved by the commission pursuant to paragraphs (c) and (e), upon
170.30request by the project owner, the public utility shall agree to amend the power purchase
170.31agreement to include a fuel cost adjustment clause which requires the public utility to
170.32reimburse the project owner monthly for all costs incurred by the project owner during
170.33the applicable month to procure and transport all fuel used to produce energy for delivery
170.34to the public utility pursuant to the power purchase agreement to the extent such costs
170.35exceeded $3.40 per million metric British thermal unit (MMBTU), in addition to the price
170.36to be paid for the energy produced and delivered by the project owner. Reimbursable
171.1costs include but are not limited to: (1) all costs incurred to load fuel at its source; (2)
171.2costs to transport fuel (i) to the biomass-fueled generating facilities or to an intermediate
171.3woodyard, storage facility, or handling facility, or (ii) from a facility to the biomass-fueled
171.4generating facilities; (3) depreciation of any depreciable loading, woodyard, storage,
171.5handling, or transportation equipment whether the vehicle or equipment is located at the
171.6fuel source, a woodyard, storage facility, handling facility, or at the generating facilities;
171.7and (4) costs to unload fuel at the generating facilities. Beginning with 2014, at the end of
171.8each calendar year of the term of the power purchase agreement, the project owner shall
171.9calculate the amount by which actual fuel costs for the year exceeded $3.40 per MMBTU,
171.10and prior monthly payment for such fuel costs shall be reconciled against actual fuel costs
171.11for the applicable calendar year. If such prior monthly fuel payments for the year in the
171.12aggregate exceed the amount due based on the annual calculation, the project owner shall
171.13credit the public utility for the excess paid. If the annual calculation of fuel costs due
171.14exceeds the prior monthly fuel payments for the year in the aggregate, the project owner
171.15shall be entitled to be paid for the deficiency with the next invoice to the public utility.
171.16The amendment shall be negotiated and executed within 45 days of May 13, 2013, and
171.17shall be effective for fuel costs incurred and prices after January 1, 2014. The public
171.18utility shall request approval of the amendment by the commission, and the commission
171.19shall approve the amendment as reasonable and in the public interest and allow the public
171.20utility to recover from its Minnesota retail customers the amounts paid by the public utility
171.21to the project owner pursuant to the power purchase agreement during the full term of
171.22the power purchase agreement, including the reimbursement of fuel costs pursuant to the
171.23power purchase agreement amendment, reimbursable costs as provided in this paragraph,
171.24pursuant to section 216B.1645, or otherwise.
171.25(g) With respect to the power purchase agreement described in paragraph (b) and
171.26approved by the commission pursuant to paragraphs (c) and (e), the public utility is
171.27prohibited from recovering from the project owner any costs which were not actually and
171.28reasonably incurred by the utility, notwithstanding any provision in the power purchase
171.29agreement to the contrary. In addition, beginning with 2012, the public utility shall pay for
171.30all energy delivered by the project owner pursuant to the power purchase agreement at
171.31the full price for such energy in the power purchase agreement approved and amended
171.32pursuant to paragraph (e), provided that the project owner does not deliver more than
171.33110 percent of the amount scheduled for delivery in any year of the power purchase
171.34agreement, and does not deliver, on average over any five consecutive years of the power
171.35purchase agreement, an amount greater than 105 percent of the amount scheduled for
171.36delivery over the five-year period.
172.1EFFECTIVE DATE.This section is effective retroactively from January 1, 2014.

172.2    Sec. 10. Minnesota Statutes 2014, section 216B.62, subdivision 2, is amended to read:
172.3    Subd. 2. Assessing specific utility. Whenever the commission or department, in a
172.4proceeding upon its own motion, on complaint, or upon an application to it, shall deem it
172.5necessary, in order to carry out the duties imposed under this chapter (1) to investigate the
172.6books, accounts, practices, and activities of, or make appraisals of the property of, any
172.7public utility, (2) to render any engineering or accounting services to any public utility, or
172.8(3) to intervene before an energy regulatory agency, the public utility shall pay the expenses
172.9reasonably attributable to the investigation, appraisal, service, or intervention. The
172.10commission and department shall ascertain the expenses, and the department shall render
172.11a bill therefor to the public utility, either at the conclusion of the investigation, appraisal,
172.12or services, or from time to time during its progress, which bill shall constitute notice of
172.13the assessment and a demand for payment. The amount of the bills so rendered by the
172.14department shall be paid by the public utility into the state treasury within 30 days from the
172.15date of rendition. The total amount, in any one calendar year, for which any public utility
172.16shall become liable, by reason of costs incurred by the commission within that calendar
172.17year, shall not exceed two-fifths of one percent of the gross operating revenue from retail
172.18sales of gas, or electric service by the public utility within the state in the last preceding
172.19calendar year. Where, pursuant to this subdivision, costs are incurred within any calendar
172.20year which are in excess of two-fifths of one percent of the gross operating revenues, the
172.21excess costs shall not be chargeable as part of the remainder under subdivision 3, but shall
172.22be paid out of the general appropriation or special revenue fund to the department and
172.23commission. In the case of public utilities offering more than one public utility service
172.24only the gross operating revenues from the public utility service in connection with which
172.25the investigation is being conducted shall be considered when determining this limitation.

172.26    Sec. 11. Minnesota Statutes 2014, section 216B.62, is amended by adding a subdivision
172.27to read:
172.28    Subd. 9. Utility assessment account; appropriation. The utility assessment
172.29account is created as a separate account in the special revenue fund in the state treasury.
172.30Funds received by the department for the assessment of costs related to the energy
172.31planning and advocacy unit under subdivisions 2 and 3 must be deposited into this
172.32account and are annually appropriated to the commissioner of commerce. Earnings,
172.33such as interest, dividends, and any other earnings arising from account assets, must be
172.34credited to the account. Assessments dated June 1, 2016, or later will be paid into the
173.1utility assessment account. The amount assessed under this subdivision may not exceed
173.2$3,000,000 in a fiscal year.

173.3    Sec. 12. Minnesota Statutes 2014, section 297H.13, subdivision 2, is amended to read:
173.4    Subd. 2. Allocation of revenues. (a) $33,760,000, or 70 percent, whichever is
173.5greater, Of the amounts remitted under this chapter, 75 percent in fiscal years 2017
173.6and 2018, and 80 percent in fiscal year 2019 and thereafter, must be credited to the
173.7environmental fund established in section 16A.531, subdivision 1.
173.8(b) The remainder must be deposited into the general fund.

173.9    Sec. 13. Minnesota Statutes 2014, section 473.845, subdivision 1, is amended to read:
173.10    Subdivision 1. Establishment. The metropolitan landfill contingency action trust
173.11account is an expendable trust account in the remediation fund. The account consists
173.12of revenue deposited in the account under section 473.843, subdivision 2, clause (2);
173.13amounts recovered under subdivision 7; and interest earned on investment of money in
173.14the account. The account must be managed to maximize long-term gain through the
173.15State Board of Investment.

173.16    Sec. 14. Laws 2014, chapter 198, article 2, section 2, the effective date, is amended to
173.17read:
173.18EFFECTIVE DATE; APPLICATION.This section is effective July 1, 2015
173.19January 1, 2016, and applies to applications for reimbursement on or after that date.
173.20EFFECTIVE DATE.This section is effective retroactively from May 5, 2014.

173.21    Sec. 15. Laws 2015, First Special Session chapter 1, article 1, section 8, subdivision 1,
173.22is amended to read:

173.23 173.24

Subdivision 1.Total Appropriation

$

34,003,000

$

34,073,000 32,073,000

173.25	Appropriations by Fund
173.26		2016	2017
173.27 173.28	General	30,960,000	31,030,000 29,030,000
173.29	Special Revenue	1,240,000	1,240,000
173.30	Petroleum Tank	1,052,000	1,052,000
173.31 173.32	Workers' Compensation	751,000	751,000

174.1The amounts that may be spent for each
174.2purpose are specified in the following
174.3subdivisions.

174.4    Sec. 16. Laws 2015, First Special Session chapter 1, article 1, section 8, subdivision 7,
174.5is amended to read:

174.6 174.7

Subd. 7.Energy Resources

3,848,000

3,845,000 1,845,000

174.8$150,000 each year is for grants to
174.9providers of low-income weatherization
174.10services to install renewable energy
174.11equipment in households that are eligible for
174.12weatherization assistance under Minnesota's
174.13weatherization assistance program state
174.14plan as provided for in Minnesota Statutes,
174.15section 216C.264.
174.16$424,000 in fiscal year 2016 and $430,000
174.17in fiscal year 2017 are for costs associated
174.18with competitive rates for energy-intensive,
174.19trade-exposed electric utility customers.
174.20All general fund appropriations for costs
174.21associated with competitive rates for
174.22energy-intensive, trade-exposed electric
174.23utility customers are recovered through
174.24assessments under Minnesota Statutes,
174.25section 216B.62.

174.26    Sec. 17. Laws 2015, First Special Session chapter 1, article 1, section 9, is amended to
174.27read:

174.28 174.29

Sec. 9. PUBLIC UTILITIES COMMISSION

$

6,966,000 7,191,000

$

6,930,000 7,587,000

174.30The general fund base for the Public Utilities
174.31Commission is $7,465,000 in fiscal year
174.322018 and $7,465,000 in fiscal year 2019.
174.33EFFECTIVE DATE.This section is effective the day following final enactment.

175.1    Sec. 18. Laws 2015, First Special Session chapter 4, article 3, section 2, subdivision 4,
175.2is amended to read:

175.3

Subd. 4.Land

21,663,000

18,584,000

175.4	Appropriations by Fund
175.5		2016	2017
175.6	General	3,368,000	-0-
175.7	Environmental	7,031,000	7,150,000
175.8	Remediation	11,264,000	11,434,000

175.9All money for environmental response,
175.10compensation, and compliance in the
175.11remediation fund not otherwise appropriated
175.12is appropriated to the commissioners of the
175.13Pollution Control Agency and agriculture
175.14for purposes of Minnesota Statutes, section
175.15115B.20, subdivision 2 , clauses (1), (2),
175.16(3), (6), and (7). At the beginning of each
175.17fiscal year, the two commissioners shall
175.18jointly submit an annual spending plan
175.19to the commissioner of management and
175.20budget that maximizes the utilization of
175.21resources and appropriately allocates the
175.22money between the two departments. This
175.23appropriation is available until June 30, 2017.
175.24$4,279,000 the first year and $4,343,000 the
175.25second year are from the remediation fund
175.26for purposes of the leaking underground
175.27storage tank program to investigate, clean up,
175.28and prevent future releases from underground
175.29petroleum storage tanks, and to the petroleum
175.30remediation program for purposes of vapor
175.31assessment and remediation. These same
175.32annual amounts are transferred from the
175.33petroleum tank fund to the remediation fund.
175.34$252,000 the first year and $252,000 the
175.35second year are from the remediation fund
175.36for transfer to the commissioner of health for
176.1private water supply monitoring and health
176.2assessment costs in areas contaminated
176.3by unpermitted mixed municipal solid
176.4waste disposal facilities and drinking water
176.5advisories and public information activities
176.6for areas contaminated by hazardous releases.
176.7$868,000 the first year is from the general
176.8fund for a grant to the city of Mountain Iron
176.9for remediation of the abandoned wastewater
176.10treatment pond of the former Nichols
176.11Township. This is a onetime appropriation
176.12that is available until June 30, 2019. This
176.13appropriation is effective December 1, 2015.
176.14Up to $2,500,000 the first year is from the
176.15general fund to the commissioner for a grant
176.16to the city of Paynesville to add a treatment
176.17process to a water treatment plant for removal
176.18of volatile organic compounds. This is a
176.19onetime appropriation. This appropriation is
176.20effective December 1, 2015.
176.21$743,000 the second year is transferred
176.22from the general fund to the dry cleaner
176.23environmental response and reimbursement
176.24account in the remediation fund for the
176.25purpose of remediating land contaminated
176.26by a release from a dry cleaning facility,
176.27as provided under Minnesota Statutes,
176.28section 115B.50, if legislation is enacted in
176.29the 2016 legislative session to address the
176.30insolvency of the dry cleaner environmental
176.31response and reimbursement account. The
176.32commissioner shall prioritize expenditures
176.33from this transfer to address contaminated
176.34sites that pose the greatest risk to public
176.35health or welfare or to the environment, as
177.1established in Minnesota Statutes, section
177.2115B.17, subdivision 13. This is a onetime
177.3transfer. The commissioner shall reimburse
177.4only a person who otherwise would not be
177.5responsible for a release or threatened release
177.6under Minnesota Statutes, section 115B.03,
177.7for all but $10,000 of the environmental
177.8response costs incurred by the person if the
177.9commissioner determines that the costs are
177.10reasonable and were actually incurred. To be
177.11eligible for reimbursement from this transfer,
177.12a person seeking reimbursement must make
177.13a request to the commissioner, as required
177.14under Minnesota Statutes, section 115B.50,
177.15subdivision 2 , on or before the day following
177.16final enactment of this act.
177.17EFFECTIVE DATE.This section is effective the day following final enactment.

177.18    Sec. 19. FEASIBILITY STUDY AND PROGRAM PLAN; WORKING LANDS
177.19WATERSHED RESTORATION PROGRAM.
177.20(a) The Board of Water and Soil Resources shall develop a detailed plan to
177.21implement Minnesota Statutes, section 103F.519 that includes the following:
177.22(1) a process for selecting pilot watersheds that are expected to result in the greatest
177.23water quality improvements and exhibit readiness to participate in the program;
177.24(2) an assessment of the quantity of agricultural land that is expected to be eligible
177.25for the program in each watershed;
177.26(3) an assessment of landowner interest in participating in the program;
177.27(4) an assessment of the contract terms and any recommendations for changes to the
177.28terms, including consideration of variable payment rates for lands of different priority or
177.29type;
177.30(5) an assessment of the opportunity to leverage federal funds through the program
177.31and recommendations on how to maximize the use of federal funds for assistance to
177.32establish perennial crops;
177.33(6) an assessment of how other state programs could complement the program;
177.34(7) an estimate of water quality improvements expected to result from
177.35implementation in pilot watersheds;
178.1(8) an assessment of how to best integrate program implementation with existing
178.2conservation requirements and develop recommendations on harvest practices and timing
178.3to benefit wildlife production;
178.4(9) an assessment of the potential viability and water quality benefit of cover crops
178.5used in biomass processing facilities;
178.6(10) a timeline for implementation, coordinated to the extent possible with proposed
178.7biomass processing facilities; and
178.8(11) a projection of funding sources needed to complete implementation.
178.9(b) The board shall coordinate development of the plan with stakeholders and the
178.10commissioners of natural resources, agriculture, and the Pollution Control Agency. The
178.11board must submit an interim report by October 15, 2017, and the feasibility study and
178.12program plan by February 1, 2018, to the chairs and ranking minority members of the
178.13legislative committees and divisions with jurisdiction over agriculture, natural resources,
178.14and environment policy and finance and to the Clean Water Council.

178.15    Sec. 20. RULEMAKING; DRY CLEANER RESPONSE AND
178.16REIMBURSEMENT ACCOUNT.
178.17(a) The commissioner of the Pollution Control Agency shall adopt rules using
178.18the expedited rulemaking process under Minnesota Statutes, section 14.389, including
178.19subdivision 5, to establish, with respect to Minnesota Statutes, section 115B.50,
178.20subdivision 2:
178.21(1) what environmental response costs are to be considered reasonable costs and
178.22what costs are to be considered ineligible for reimbursement;
178.23(2) appropriate application requirements for reimbursement; and
178.24(3) a process to adjust payment reimbursement rates made for response actions.
178.25(b) Rules adopted under this section:
178.26(1) must be consistent with Minnesota Statutes, sections 115B.47 to 115B.51;
178.27(2) must be structured like rules governing applicable provisions of the petroleum
178.28tank response cleanup fund under Minnesota Rules, chapter 2890, as necessary to
178.29implement paragraph (a), clauses (1) to (3); and
178.30(3) must not reduce reimbursements as contained in Minnesota Rules, part
178.312890.0065, subpart 1, item C.
178.32EFFECTIVE DATE.This section is effective the day following final enactment.

178.33    Sec. 21. REPEALER.
178.34Minnesota Statutes 2015 Supplement, section 115B.48, subdivision 9, is repealed.
179.1EFFECTIVE DATE.This section is effective the day following final enactment.

179.2ARTICLE 8

179.3STATE GOVERNMENT

179.4

Section 1. APPROPRIATIONS.

179.5The sums shown in the columns marked "Appropriations" are added to the
179.6appropriations in Laws 2015, chapter 77, article 1, to the agencies and for the purposes
179.7specified in this article. The appropriations are from the general fund or another named
179.8fund. The figures "2016" and "2017" used in this article mean that the addition to the
179.9appropriation listed under them are available for the fiscal year ending June 30, 2016, or
179.10June 30, 2017, respectively. Supplemental appropriations for the fiscal year ending June
179.1130, 2016, are effective the day following final enactment.

179.12				APPROPRIATIONS
179.13				Available for the Year
179.14				Ending June 30
179.15					2016		2017

179.16

Sec. 2. ADMINISTRATION

179.17

Subdivision 1.Total Appropriation

$

-0-

$

528,000

179.18 179.19

Subd. 2.Government and Citizen Services - Olmstead Plan Increased Capacity

-0-

148,000

179.20For administrative costs to expand services
179.21provided under the Olmstead Plan serving
179.22people with disabilities.

179.23 179.24 179.25

Subd. 3.Government and Citizen Services - Targeted Group and Veterans Business Preference Program

-0-

20,000

179.26For implementing the preference program
179.27in Minnesota Statutes, section 16C.165,
179.28subdivisions 2, 3, and 4, for businesses that
179.29are not small, but otherwise are eligible
179.30for preference as a designated business
179.31under Minnesota Statutes, section 16C.16,
179.32subdivision 5, or as a veteran-owned
179.33business under Minnesota Statutes, section
180.116C.16, subdivision 6a. This is a onetime
180.2appropriation.

180.3 180.4

Subd. 4.Strategic Management Services - Capitol Complex Child Care Facility

-0-

300,000

180.5To predesign a child care facility on the
180.6Capitol complex. $150,000 is added to the
180.7base appropriation beginning in fiscal year
180.82018 and continuing in each fiscal year
180.9thereafter for operating the child care facility.

180.10 180.11

Subd. 5.Fiscal Agent - Capitol Workers Memorial Plaque

-0-

10,000

180.12To design, construct, and install the plaque
180.13or marker authorized in section 28 to honor
180.14those who constructed and died during the
180.15building of the Capitol, as well as those who
180.16worked on subsequent projects to preserve
180.17the building. This amount may be expended
180.18in either year of the biennium. This is a
180.19onetime appropriation.

180.20

Subd. 6.Fiscal Agent - Veterans' Voices

-0-

50,000

180.21For a grant to the Association of Minnesota
180.22Public Educational Radio Stations for
180.23statewide programming to promote the
180.24Veterans' Voices program. This is a onetime
180.25appropriation.

180.26

Sec. 3. MN.IT SERVICES

$

-0-

$

5,000,000

180.27To enhance cybersecurity across state
180.28government and is available until June 30,
180.292019. $47,000 of this appropriation is for
180.30information technology enhancements for the
180.31Gambling Control Board. This is a onetime
180.32appropriation.

180.33 180.34

Sec. 4. MINNESOTA MANAGEMENT AND BUDGET

$

-0-

$

2,500,000

181.1For statewide information technology
181.2systems and is available until June 30, 2018.
181.3This is a onetime appropriation.

181.4

Sec. 5. REVENUE

$

-0-

$

1,871,000

181.5Tax System Management. $500,000 is for
181.6tax refund fraud protection software and
181.7services.
181.8$1,371,000 is for (1) communication and
181.9outreach; and (2) technology, audit, and
181.10fraud staff.
181.11$2,125,000 is added to the base in fiscal year
181.122018 and $2,125,000 in fiscal year 2019.

181.13

Sec. 6. AMATEUR SPORTS COMMISSION

181.14

Subdivision 1.Total Appropriation

$

-0-

$

16,000,000

181.15

Subd. 2.Mighty Ducks

-0-

15,000,000

181.16For the purposes of making grants under
181.17Minnesota Statutes, section 240A.09,
181.18paragraph (b). This appropriation is a
181.19onetime appropriation and is added to the
181.20appropriations in Laws 2015, chapter 77,
181.21article 1, section 18, and Laws 2015, First
181.22Special Session chapter 5, article 1, section 9.

181.23

Subd. 3.Red Wing Ski Jump

-0-

1,000,000

181.24For a grant to the city of Red Wing for
181.25construction of a ski jump that meets
181.26standards for an Olympic training or
181.27qualifying jump. This is a onetime
181.28appropriation. This appropriation is not
181.29available until $3,000,000 is committed from
181.30nonstate sources.

181.31

Sec. 7. HUMANITIES CENTER

$

-0-

$

95,000

182.1To expand education efforts around the
182.2Veterans' Voices program, and to work
182.3with veterans to educate and engage the
182.4community regarding veterans' contributions,
182.5knowledge, skills, and experiences through
182.6the Veterans' Voices program. This is a
182.7onetime appropriation.

182.8 182.9

Sec. 8. MINNESOTA HISTORICAL SOCIETY; DIGITAL PRESERVATION

$

-0-

$

170,000

182.10For digital preservation and access, including
182.11planning and implementation of a program to
182.12preserve and make available resources related
182.13to Minnesota history. This appropriation
182.14is a onetime appropriation and is added to
182.15the appropriation in Laws 2015, chapter 77,
182.16article 1, section 23.

182.17 182.18

Sec. 9. MINNESOTA STATE RETIREMENT SYSTEM

$

-0-

$

2,000,000

182.19Judges Retirement Plan. In fiscal year
182.202017 for transfer to the judges' retirement
182.21fund defined in Minnesota Statutes, section
182.22490.123. This appropriation is included in
182.23the base and the transfer continues each fiscal
182.24year until the judges retirement plan reaches
182.25100 percent funding as determined by an
182.26actuarial valuation prepared under Minnesota
182.27Statutes, section 356.214.

182.28

Sec. 10. MILITARY AFFAIRS

182.29

Subdivision 1.Total Appropriation

$

-0-

$

1,348,000

182.30The amounts that may be spent for each
182.31purpose are specified in the following
182.32subdivisions.

182.33

Subd. 2.Maintenance of Training Facilities

-0-

1,100,000

183.1For security upgrades. This is a onetime
183.2appropriation.

183.3 183.4

Subd. 3.Security Improvement - General Support

-0-

248,000

183.5For payroll costs and contracted costs of
183.6training and testing to provide security at
183.7state-owned Minnesota National Guard
183.8facilities.

183.9

Sec. 11. VETERANS AFFAIRS

183.10

Subdivision 1.Total Appropriation

$

-0-

$

488,000

183.11

Subd. 2.Veterans Homes Domiciliary Increase

-0-

88,000

183.12To increase the personal needs allowance
183.13for residents of veterans homes. $110,000
183.14is added to the base in fiscal year 2018 and
183.15$114,000 is added to the base in fiscal year
183.162019.

183.17

Subd. 3.Mental Health Study

-0-

150,000

183.18For the study and report in section 26. This
183.19is a onetime appropriation.

183.20 183.21

Subd. 4.Disabled Veterans Interim Housing Study

-0-

250,000

183.22For the study and report in section 27. This
183.23is a onetime appropriation.

183.24 183.25

Subd. 5.Veterans Homes - Montevideo and Bemidji

-0-

-0-

183.26The fiscal year 2018 and fiscal year 2019
183.27general fund base appropriation for veterans
183.28homes is increased by $10,000,000 each
183.29fiscal year. This increase is for the operating
183.30costs of 143 skilled nursing beds added
183.31after July 1, 2016, in one or more veteran
183.32homes, including Montevideo and Bemidji.
183.33None of this increased amount may be used
184.1for operating costs at a veterans home in
184.2Minneapolis.

184.3    Sec. 12. Minnesota Statutes 2014, section 16B.33, subdivision 3, is amended to read:
184.4    Subd. 3. Agencies must request designer. (a) Application. Upon undertaking a
184.5project with an estimated cost greater than $2,000,000 $10,000,000 or a planning project
184.6with estimated fees greater than $200,000 $1,000,000, every user agency, except the
184.7Capitol Area Architectural and Planning Board, shall submit a written request for a
184.8primary designer for its project to the commissioner, who shall forward the request to the
184.9board. The University of Minnesota and the Minnesota State Colleges and Universities
184.10shall follow the process in subdivision 3a to select designers for their projects. The written
184.11request must include a description of the project, the estimated cost of completing the
184.12project, a description of any special requirements or unique features of the proposed
184.13project, and other information which will assist the board in carrying out its duties and
184.14responsibilities set forth in this section.
184.15(b) Reactivated project. If a project for which a designer has been selected by the
184.16board becomes inactive, lapses, or changes as a result of project phasing, insufficient
184.17appropriations, or other reasons, the commissioner, the Minnesota State Colleges and
184.18Universities, or the University of Minnesota may, if the project is reactivated, retain
184.19the same designer to complete the project.
184.20(c) Fee limit reached after designer selected. If a project initially estimated to
184.21be below the cost and planning fee limits of this subdivision has its cost or planning
184.22fees revised so that the limits are exceeded, the project must be referred to the board for
184.23designer selection even if a primary designer has already been selected. In this event, the
184.24board may, without conducting interviews, elect to retain the previously selected designer
184.25if it determines that the interests of the state are best served by that decision and shall
184.26notify the commissioner of its determination.

184.27    Sec. 13. Minnesota Statutes 2014, section 16B.33, subdivision 4, is amended to read:
184.28    Subd. 4. Designer selection process. (a) Publicity. Upon receipt of a request
184.29from a user agency for a primary designer, the board shall publicize the proposed
184.30project in order to determine the identity of designers interested in the design work on
184.31the project. The board shall establish criteria for the selection process and make this
184.32information public, and shall compile data on and conduct interviews of designers. The
184.33board's selection criteria must include consideration of the geographic proximity of each
184.34interested designer's primary place of business to the location of the project and each
185.1interested designer's performance on previous projects for the state or any other person.
185.2Upon completing the process, the board shall select the primary designer and shall state its
185.3reasons in writing. If the board's vote for the selection of a primary designer results in a tie
185.4vote, the nonvoting member appointed under subdivision 2, paragraph (b), must vote for
185.5the selection of the primary designer. Notification to the commissioner of the selection
185.6shall be made not more than 60 days after receipt from a user agency of a request for a
185.7primary designer. The commissioner shall promptly notify the designer and the user
185.8agency. The commissioner shall negotiate the designer's fee and prepare the contract to
185.9be entered into between the designer and the user agency.
185.10(b) Conflict of interest. A board member may not participate in the review,
185.11discussion, or selection of a designer or firm in which the member has a financial interest.
185.12(c) Selection by commissioner. In the event the board receives a request for a
185.13primary designer on a project, the estimated cost of which is less than the limit established
185.14by subdivision 3, or a planning project with estimated fees of less than the limit established
185.15by subdivision 3, the board may submit the request to the commissioner of administration,
185.16with or without recommendations, and the commissioner shall thereupon select the
185.17primary designer for the project.
185.18(d) Second selection. If the designer selected for a project declines the appointment
185.19or is unable to reach agreement with the commissioner on the fee or the terms of the
185.20contract, the commissioner shall, within 60 days after the first appointment, request the
185.21board to make another selection.
185.22(e) Sixty days to select. If the board fails to make a selection and forward its
185.23recommendation to the commissioner within 60 days of the user agency's request
185.24for a designer, the commissioner may appoint a designer to the project without the
185.25recommendation of the board.
185.26(f) Less than satisfactory performance. The commissioner, or the University of
185.27Minnesota and the Minnesota State Colleges and Universities for projects under their
185.28supervision, shall forward to the board a written report describing each instance in which
185.29the performance of a designer selected by the board or the commissioner has been less
185.30than satisfactory. Criteria for determining satisfaction include the ability of the designer to
185.31complete design work on time, to provide a design responsive to program needs within
185.32the constraints of the budget, to solve design problems and achieve a design consistent
185.33with the proposed function of the building, to avoid costly design errors or omissions,
185.34and to observe the construction work. These reports are public data and are available for
185.35inspection under section 13.03.

186.1    Sec. 14. [16C.165] PROCUREMENT FROM OTHER TARGETED AND
186.2VETERAN-OWNED BUSINESSES.
186.3    Subdivision 1. Designation of eligible groups. The commissioner may designate
186.4businesses that are not small but otherwise qualify under section 16C.16, subdivisions 5
186.5and 6a, as eligible for preferences under this section.
186.6    Subd. 2. Preference. The commissioner may award up to a three percent preference
186.7for specified goods, services, or construction to businesses designated under subdivision 1.
186.8    Subd. 3. Limitations on preference. If the application of preference under
186.9subdivision 2 precludes a business designated under section 16C.16, subdivisions 5 and
186.106a, from receiving an award, the preference in subdivision 2 shall not be applied.
186.11    Subd. 4. Subcontracting incentives and penalties. The financial incentives for
186.12prime contractors who exceed the goals for use of small business or small targeted group
186.13business subcontractors and financial penalties for prime contractors who fail to meet the
186.14goals for use of small business or small targeted group business subcontractors apply to
186.15businesses designated under subdivision 1.
186.16    Subd. 5. Mentoring program. The commissioner shall collaborate with
186.17organizations that represent targeted group and veteran-owned businesses to prepare
186.18recommendations for establishing a targeted group and veteran-owned business mentoring
186.19program that incentivizes larger businesses to mentor businesses certified under
186.20subdivision 1 and section 16C.16.

186.21    Sec. 15. Minnesota Statutes 2015 Supplement, section 16C.19, is amended to read:
186.2216C.19 ELIGIBILITY; RULES.
186.23(a) A small business wishing to participate in the programs under section 16C.16,
186.24subdivisions 4 to 7, or 16C.165, must be certified by the commissioner or by a nationally
186.25recognized certifying organization authorized by the commissioner. The commissioner
186.26shall adopt by rule standards and procedures for certifying that small targeted group
186.27businesses, small businesses located in economically disadvantaged areas, and
186.28veteran-owned small businesses are eligible to participate under the requirements of
186.29sections 16C.16 to 16C.21. The commissioner shall adopt by rule under paragraph (g)
186.30standards and procedures for certifying that businesses designated under section 16C.165
186.31are eligible to participate. The commissioner shall adopt by rule standards and procedures
186.32for hearing appeals and grievances and other rules necessary to carry out the duties set
186.33forth in sections 16C.16 to 16C.21.
187.1(b) The commissioner may make rules which exclude or limit the participation of
187.2nonmanufacturing business, including third-party lessors, brokers, franchises, jobbers,
187.3manufacturers' representatives, and others from eligibility under sections 16C.16 to 16C.21.
187.4(c) The commissioner may make rules that set time limits and other eligibility limits
187.5on business participation in programs under sections 16C.16 to 16C.21.
187.6(d) Notwithstanding paragraph (a), for purposes of sections 16C.16 to 16C.21, a
187.7veteran-owned small business, the principal place of business of which is in Minnesota,
187.8is certified if:
187.9(1) it has been verified by the United States Department of Veterans Affairs as
187.10being either a veteran-owned small business or a service-disabled veteran-owned small
187.11business, in accordance with Public Law 109-461 and Code of Federal Regulations, title
187.1238, part 74; or
187.13(2) the veteran-owned small business supplies the commissioner with proof that the
187.14small business is majority-owned and operated by:
187.15(i) a veteran as defined in section 197.447; or
187.16(ii) a veteran with a service-connected disability, as determined at any time by the
187.17United States Department of Veterans Affairs.
187.18(e) Until rules are adopted pursuant to paragraph (a) for the purpose of certifying
187.19veteran-owned small businesses, the provisions of Minnesota Rules, part 1230.1700, may
187.20be read to include veteran-owned small businesses. In addition to the documentation
187.21required in Minnesota Rules, part 1230.1700, the veteran owner must have been
187.22discharged under honorable conditions from active service, as indicated by the veteran
187.23owner's most current United States Department of Defense form DD-214.
187.24(f) Notwithstanding paragraph (a), for purposes of sections 16C.16 to 16C.21, a
187.25minority- or woman-owned small business, the principal place of business of which is
187.26in Minnesota, is certified if it has been certified by the Minnesota unified certification
187.27program under the provisions of Code of Federal Regulations, title 49, part 26.
187.28(g) The commissioner may adopt rules to implement the programs under section
187.2916C.16, subdivisions 4 to 7, using the expedited rulemaking process in section 14.389.

187.30    Sec. 16. Minnesota Statutes 2014, section 16E.0466, is amended to read:
187.3116E.0466 STATE AGENCY TECHNOLOGY PROJECTS.
187.32    (a) Every state agency with an information or telecommunications project must
187.33consult with the Office of MN.IT Services to determine the information technology cost
187.34of the project. Upon agreement between the commissioner of a particular agency and
187.35the chief information officer, the agency must transfer the information technology cost
188.1portion of the project to the Office of MN.IT Services. Service level agreements must
188.2document all project-related transfers under this section. Those agencies specified in
188.3section 16E.016, paragraph (d), are exempt from the requirements of this section.
188.4(b) Notwithstanding section 16A.28, subdivision 3, any unexpended operating
188.5balance appropriated to a state agency may be transferred to the information and
188.6telecommunications technology systems and services account for the information
188.7technology cost of a specific project, subject to the review of the Legislative Advisory
188.8Commission, under section 16E.21, subdivision 3.

188.9    Sec. 17. Minnesota Statutes 2014, section 16E.21, subdivision 2, is amended to read:
188.10    Subd. 2. Charges. Upon agreement of the participating agency, the Office of
188.11MN.IT Services may collect a charge or receive a fund transfer under section 16E.0466
188.12for purchases of information and telecommunications technology systems and services
188.13by state agencies and other governmental entities through state contracts for purposes
188.14described in subdivision 1. Charges collected under this section must be credited to the
188.15information and telecommunications technology systems and services account.

188.16    Sec. 18. Minnesota Statutes 2014, section 16E.21, is amended by adding a subdivision
188.17to read:
188.18    Subd. 3. Legislative Advisory Commission review. (a) No funds may be
188.19transferred to the information and telecommunications technology systems and services
188.20account under subdivision 2 or section 16E.0466 until the commissioner of management
188.21and budget has submitted the proposed transfer to the members of the Legislative
188.22Advisory Commission for review and recommendation. If the commission makes a
188.23positive recommendation or no recommendation, or if the commission has not reviewed
188.24the request within 20 days after the date the request to transfer funds was submitted,
188.25the commissioner of management and budget may approve the request to transfer the
188.26funds. If the commission recommends further review of a request to transfer funds, the
188.27commissioner shall provide additional information to the commission. If the commission
188.28makes a negative recommendation on the request within ten days of receiving further
188.29information, the commissioner shall not approve the fund transfer. If the commission
188.30makes a positive recommendation or no recommendation within ten days of receiving
188.31further information, the commissioner may approve the fund transfer.
188.32(b) A recommendation of the commission must be made at a meeting of the
188.33commission unless a written recommendation is signed by all members entitled to vote on
189.1the item as specified in section 3.30, subdivision 2. A recommendation of the commission
189.2must be made by a majority of the commission.

189.3    Sec. 19. Minnesota Statutes 2014, section 16E.21, is amended by adding a subdivision
189.4to read:
189.5    Subd. 4. Lapse. Any portion of any receipt credited to the information and
189.6telecommunications technology systems and services account from a fund transfer under
189.7subdivision 2 that remains unexpended and unencumbered at the close of the fiscal year
189.8four years after the funds were received in the account shall lapse to the fund from which
189.9the receipt was transferred.

189.10    Sec. 20. Minnesota Statutes 2014, section 16E.21, is amended by adding a subdivision
189.11to read:
189.12    Subd. 5. Report. The chief information officer shall report by September 15 of
189.13each odd-numbered year to the chairs and ranking minority members of the legislative
189.14committees and divisions with jurisdiction over the office regarding the receipts credited
189.15to the account. The report must include a description of projects funded through the
189.16information and telecommunications technology systems and services account and each
189.17project's current status.

189.18    Sec. 21. Minnesota Statutes 2014, section 198.03, subdivision 2, is amended to read:
189.19    Subd. 2. Cost of care. (a) The commissioner shall set out in rules the method of
189.20calculating the average cost of care for the domiciliary and nursing care residents. The cost
189.21must be determined yearly based upon the average cost per resident taking into account,
189.22but not limited to, administrative cost of the homes, the cost of service available to the
189.23resident, and food and lodging costs. These average costs must be calculated separately for
189.24domiciliary and nursing care residents. The amount charged each resident for maintenance,
189.25if anything, must be based on the appropriate average cost of care calculation and the
189.26assets and income of the resident but must not exceed the appropriate average cost of care.
189.27(b) Using the authority granted in section 198.03, the commissioner shall set out
189.28in rules the method of calculating each domiciliary resident's maintenance charge. This
189.29maintenance charge shall establish a personal needs allowance based on each domiciliary
189.30resident's monthly income. For the period of July 1, 2016, to June 30, 2017, the personal
189.31needs allowance shall not be less than $122 per month. For the period of July 1, 2017,
189.32to June 30, 2018, the personal needs allowance shall not be less than $130 per month.
189.33Thereafter, the minimum personal needs allowance must be adjusted by multiplying
190.1the allowance by one-half of the percentage change of the Consumer Price Index on
190.2the first day of each fiscal year.
190.3EFFECTIVE DATE.This section is effective the day following final enactment.

190.4    Sec. 22. Minnesota Statutes 2014, section 198.03, subdivision 3, is amended to read:
190.5    Subd. 3. Arrearages. Residents are liable for paying all of their overdue
190.6maintenance charges. Overdue maintenance charges incurred after May 1, 1990, may be
190.7charged interest according to section 334.01. A resident owing overdue maintenance to
190.8the state of Minnesota for charges incurred prior to May 1, 1990, may continue to stay in
190.9the home if the resident enters into an agreement, including a payment schedule, with the
190.10administrator for the payment of the arrearage and abides by the agreement. Residents
190.11who do not promptly pay maintenance or who do not abide by their agreements to pay
190.12overdue maintenance to the state of Minnesota may be discharged from the home. The
190.13payment schedule agreed to between the administrator and the resident must provide for
190.14the prompt payment of the overdue maintenance owed by the resident, but it must not
190.15reduce the resident's personal needs allowance below that which is provided for in the
190.16administrative rules of the facility the amounts specified in subdivision 2.
190.17EFFECTIVE DATE.This section is effective the day following final enactment.

190.18    Sec. 23. [198.365] VETERANS HOMES; MONTEVIDEO AND BEMIDJI.
190.19    Subdivision 1. Veterans homes established. The commissioner of veterans affairs
190.20may apply for federal funding and establish in Montevideo and Bemidji veterans homes
190.21with up to 143 beds available for eligible veterans and their spouses. The state shall
190.22provide the necessary operating costs for the veterans homes in excess of any revenue
190.23and federal funding for the homes that may be required to continue the operation of the
190.24homes and care for Minnesota veterans.
190.25    Subd. 2. Nonstate contribution. The commissioner of administration may accept
190.26contributions of land or money from private individuals, businesses, local governments,
190.27veterans service organizations, and other nonstate sources for the purpose of providing
190.28matching funding when soliciting federal funding for the development of the homes.

190.29    Sec. 24. Laws 2015, chapter 77, article 1, section 3, is amended to read:

190.30 190.31

Sec. 3. GOVERNOR AND LIEUTENANT GOVERNOR

$

3,615,000

$

3,616,000

191.1(a) This appropriation is to fund the Office of
191.2the Governor and Lieutenant Governor.
191.3(b) Up to $19,000 the first year and up to
191.4$19,000 the second year are for necessary
191.5expenses in the normal performance of
191.6the Governor's and Lieutenant Governor's
191.7duties for which no other reimbursement is
191.8provided.
191.9(c) During the biennium ending June 30,
191.102017, and thereafter, the Office of the
191.11Governor may receive payments each fiscal
191.12year from other executive agencies under
191.13Minnesota Statutes, section 15.53, to support
191.14office costs, not including the residence
191.15groundskeeper, incurred by the office.
191.16Payments received under this paragraph must
191.17be deposited in a special revenue account.
191.18Money in the account is appropriated to the
191.19Office of the Governor.
191.20(c) (d) By September 1 of each year, the
191.21commissioner of management and budget
191.22shall report to the chairs and ranking minority
191.23members of the senate State Departments
191.24and Veterans Affairs Budget Division and the
191.25house of representatives State Government
191.26Finance Committee any personnel costs
191.27incurred by the Offices of the Governor and
191.28Lieutenant Governor that were supported
191.29by appropriations to other agencies during
191.30the previous fiscal year. The Office of the
191.31Governor shall inform the chairs and ranking
191.32minority members of the committees before
191.33initiating any interagency agreements.

192.1    Sec. 25. ALLOCATING SENATE SPACE IN THE STATE OFFICE BUILDING
192.2TO THE REVISOR OF STATUTES; APPROPRIATION.
192.3    Subdivision 1. State Office Building space allocation. At the direction of the
192.4senate minority leader, the 5,000 square feet of the first floor space in the State Office
192.5Building allocated to the senate in the 2003 space allocation agreement entered into by the
192.6house of representatives, the senate, and the governor is allocated to the revisor of statutes.
192.7    Subd. 2. Lease cancellation. Within five days of the effective date of this section,
192.8the commissioner of administration shall give notice to terminate the lease for the space at
192.9525 Park Avenue, St. Paul, that is occupied by the revisor of statutes. The termination
192.10shall be effective 30 days after the notice.
192.11    Subd. 3. Cancellation; appropriation. The amount saved in fiscal years 2016
192.12and 2017, under subdivisions 1 and 2, estimated at $56,683, by allocating the space in
192.13the State Office Building to the revisor of statutes is canceled on the effective date of this
192.14section from the general fund appropriation to the Legislative Coordinating Commission
192.15in Laws 2015, chapter 77, article 1, section 4. The same amount is appropriated from the
192.16general fund in fiscal year 2016 to the commissioner of administration to remodel, furnish,
192.17and equip the space in the State Office Building as needed to accommodate the revisor of
192.18statutes. This appropriation is available until June 30, 2017.
192.19EFFECTIVE DATE.This section is effective the day following final enactment.

192.20    Sec. 26. STUDY ON VETERANS' UNMET NEEDS FOR BEHAVIOR AND
192.21MENTAL HEALTH SERVICES.
192.22The commissioner of veterans affairs shall perform a study to quantify and describe
192.23unmet needs amongst Minnesota veterans for behavioral and mental health services. The
192.24study will include conducting focus groups of stakeholders, including veterans and their
192.25families, representatives of the United States Veterans Administration, community referral
192.26centers, and county veteran service officers. The commissioner of veterans affairs may
192.27contract with a statewide nonprofit organization to conduct the study. The commissioner
192.28of veterans affairs shall report by February 15, 2017, to the chairs and ranking minority
192.29members of the committees in the house of representatives and the senate with jurisdiction
192.30over veterans policy and budget with the findings of the study and with recommendations
192.31about how current services provided to veterans could be expanded to better meet the
192.32needs identified by the study.

192.33    Sec. 27. FEASIBILITY STUDY ON PARTNERSHIPS TO PROVIDE INTERIM
192.34HOUSING FOR DISABLED VETERANS.
193.1The commissioner of veterans affairs shall study the feasibility of partnering with
193.2an established nonprofit organization to provide interim housing for disabled veterans in
193.3conjunction with fully integrated and customizable support services. The commissioner of
193.4veterans affairs shall submit a report including its findings and recommendations regarding
193.5the feasibility of such a partnership to the chairs and ranking minority members of the
193.6standing committees in the house of representatives and the senate having jurisdiction
193.7over veterans affairs by February 15, 2017.

193.8    Sec. 28. PLAQUE OR MARKER AUTHORIZED TO HONOR CAPITOL
193.9CONSTRUCTION WORKERS.
193.10(a) A plaque or three-dimensional marker shall be placed in the Capitol building in
193.11a space easily visible to public visitors to recognize and honor the efforts and sacrifice
193.12of workers who constructed the State Capitol building, as well as those who worked on
193.13subsequent projects to preserve the building. The plaque or marker shall specifically honor
193.14the six workers who died during construction of the State Capitol building. The Capitol
193.15Area Architectural and Planning Board and the Minnesota Historical Society shall set the
193.16parameters and location for the memorial plaque or marker.
193.17(b) The Capitol Area Architectural and Planning Board shall conduct an opportunity
193.18contest for sixth graders from across the state to submit designs for the memorial plaque
193.19or marker. The board shall select a design from those submissions to be used as a basis for
193.20the final production of this plaque or marker by January 1, 2017. The memorial plaque or
193.21marker shall be installed during the completion of the Capitol remodel.

193.22    Sec. 29. IMMIGRATION INTEGRATION ADVISORY TASK FORCE.
193.23(a) The Immigration Integration Advisory Task Force is created to research state laws
193.24and rules that negatively affect immigrants. The task force is composed of the following:
193.25(1) five members appointed by the governor to represent Minnesota's diverse
193.26immigrant communities;
193.27(2) two members of the house of representatives, one appointed by the speaker of
193.28the house and one appointed by the minority leader; and
193.29(3) two senators, one appointed by the senate majority leader and one appointed by
193.30the senate minority leader.
193.31(b) At its first meeting, the task force shall elect a chair and cochair from its
193.32membership. The commissioner of human rights shall provide meeting space and
193.33administrative and staff support for the task force.
193.34(c) The task force shall conduct research and hold meetings to:
194.1(1) determine the extent to which current state laws and rules negatively affect
194.2Minnesotans based on their status as immigrants; and
194.3(2) develop methods to ensure that future proposed state laws and rules consider
194.4the impact of the proposals on immigrants.
194.5The task force shall consult with the Minnesota Council on Latino Affairs, the Council for
194.6Minnesotans of African Heritage, and the Council on Asian-Pacific Minnesotans. The task
194.7force shall report to the chairs and ranking minority members of the committees in the
194.8house of representatives and the senate with jurisdiction over human rights by January 15,
194.92017, with recommendations and draft legislation for changes in state laws, consistent
194.10with federal law, that will reduce the negative impact of state laws on immigrants, and
194.11ensure that future state laws and rules consider the impact on immigrants.
194.12(d) The appointing authorities must make their initial appointments by August 1,
194.132016. The commissioner of human rights shall convene the first meeting of the task
194.14force by September 1, 2016.
194.15(e) Public members shall be compensated and reimbursed for expenses as provided
194.16in Minnesota Statutes, section 15.059, subdivision 3.
194.17(f) The task force shall expire on January 30, 2017, or the day after submitting the
194.18report required under paragraph (c), whichever is earlier.
194.19EFFECTIVE DATE.This section is effective the day following final enactment.

194.20ARTICLE 9

194.21PUBLIC SAFETY AND CORRECTIONS

194.22

Section 1. APPROPRIATIONS.

194.23The sums shown in the column under "Appropriations" are added to the
194.24appropriations in Laws 2015, chapter 65, article 1, to the agencies and for the purposes
194.25specified in this article. The appropriations are from the general fund and are available for
194.26the fiscal years indicated for each purpose. The figures "2016" and "2017" used in this
194.27article mean that the addition to the appropriation listed under them is available for the fiscal
194.28year ending June 30, 2016, or June 30, 2017, respectively. Supplemental appropriations
194.29for the fiscal year ending June 30, 2016, are effective the day following final enactment.

194.30				APPROPRIATIONS
194.31				Available for the Year
194.32				Ending June 30
194.33					2016		2017

194.34

Sec. 2. SUPREME COURT

$

-0-

$

5,000,000

195.1For a competitive grant program established
195.2by the chief justice for the distribution of
195.3safe and secure courthouse fund grants to
195.4government entities responsible for providing
195.5or maintaining a courthouse or other facility
195.6where court proceedings are held. Grant
195.7recipients must provide a 50 percent nonstate
195.8match. This is a onetime appropriation and is
195.9available until June 30, 2019.

195.10

Sec. 3. DISTRICT COURTS

$

-0-

$

1,547,000

195.11To increase the juror per diem to $20 and the
195.12juror mileage reimbursement rate to 54 cents
195.13per mile.

195.14

Sec. 4. GUARDIAN AD LITEM BOARD

$

-0-

$

1,581,000

195.15To hire additional guardians ad litem to
195.16comply with federal and state mandates,
195.17and court orders for representing the best
195.18interests of children in juvenile and family
195.19court proceedings.

195.20

Sec. 5. HUMAN RIGHTS

$

-0-

$

400,000

195.21To enhance statewide outreach, education,
195.22and enforcement of the Human Rights Act.

195.23

Sec. 6. CORRECTIONS

195.24

Subdivision 1.Total Appropriation

$

5,741,000

$

29,026,000

195.25The amounts that may be spent for each
195.26purpose are specified in the following
195.27subdivisions.

195.28

Subd. 2.Correctional Institutions

5,437,000

20,921,000

195.29(a) Employee Compensation
196.1$2,827,000 in fiscal year 2016 and
196.2$8,912,000 in fiscal year 2017 are for
196.3employee compensation.
196.4(b) Challenge Incarceration Expansion
196.5$2,610,000 in fiscal year 2016 and $2,757,000
196.6in fiscal year 2017 are to increase capacity
196.7in the challenge incarceration program. The
196.8base for this activity is $3,263,000 in fiscal
196.9year 2018 and $3,623,000 in fiscal year 2019.
196.10(c) Infectious Disease Management
196.11$3,000,000 in fiscal year 2017 is for
196.12infectious disease management.
196.13(d) 24-Hour Nursing
196.14$1,500,000 in fiscal year 2017 is for 24-hour
196.15nursing coverage seven days a week at
196.16MCF-Shakopee, MCF-St. Cloud, MCF-Lino
196.17Lakes, and MCF-Stillwater.
196.18(e) Behavioral and Mental Health
196.19$1,550,000 in fiscal year 2017 is for
196.20behavioral and mental health therapists and
196.21increased security staffing at MCF-Oak Park
196.22Heights.
196.23(f) Increased Security Staffing
196.24$1,800,000 in fiscal year 2017 is for increased
196.25security staffing systemwide.
196.26(g) New Chemical Dependency/Mental
196.27Health Beds
196.28$750,000 in fiscal year 2017 is for 70 new
196.29chemical dependency/mental health beds.
196.30(h) Chemical Dependency Release Planner,
196.31MCF-Shakopee
197.1$125,000 in fiscal year 2017 is for a
197.2chemical dependency release planner at
197.3MCF-Shakopee.
197.4(i) Chemical Dependency Release Planner,
197.5MCF-Stillwater
197.6$125,000 in fiscal year 2017 is for a
197.7chemical dependency release planner at
197.8MCF-Stillwater.
197.9(j) EMPLOY Program Expansion
197.10$375,000 in fiscal year 2017 is to expand
197.11the EMPLOY program administered by
197.12MINNCOR.

197.13

Subd. 3.Community Services

241,000

4,766,000

197.14(a) Employee Compensation
197.15$241,000 in fiscal year 2016 and $860,000
197.16in fiscal year 2017 are for employee
197.17compensation.
197.18(b) Challenge Incarceration Expansion
197.19$406,000 in fiscal year 2017 is to increase
197.20capacity in the challenge incarceration
197.21program. The base for this activity is
197.22$812,000 in fiscal year 2018 and $1,421,000
197.23in fiscal year 2019.
197.24(c) Victim Notification System
197.25$1,000,000 in fiscal year 2017 is for a
197.26victim notification system. This is a onetime
197.27appropriation.
197.28(d) Reentry and Halfway Houses
197.29$500,000 in fiscal year 2017 is for grants to
197.30counties or groups of counties for reentry and
197.31halfway house services. Eligible programs
197.32must be proven to reduce recidivism. Grant
198.1recipients must provide a 50 percent nonstate
198.2match.
198.3(e) High-Risk Revocation Reduction
198.4Programs
198.5$2,000,000 in fiscal year 2017 is to establish
198.6two high-risk revocation reduction programs,
198.7one in the metropolitan area and the other
198.8in greater Minnesota. Each program shall
198.9receive $1,000,000 to provide sustained case
198.10planning, housing assistance, employment
198.11assistance, group mentoring, life skills
198.12programming, and transportation assistance
198.13to adult release violators who are being
198.14released from prison.

198.15

Subd. 4.Operations Support

63,000

3,339,000

198.16(a) Employee Compensation
198.17$63,000 in fiscal year 2016 and $339,000
198.18in fiscal year 2017 are for employee
198.19compensation.
198.20(b) Information Technology Critical
198.21Updates
198.22$3,000,000 in fiscal year 2017 is for
198.23information technology upgrades and
198.24staffing. The base for this activity is $783,000
198.25in each of fiscal years 2018 and 2019.

198.26

Sec. 7. PUBLIC SAFETY

$

-0-

$

1,567,000

198.27The amounts that may be spent for each
198.28purpose are specified in the following
198.29paragraphs.
198.30(a) DNA Lab
198.31$650,000 is for the Bureau of Criminal
198.32Apprehension DNA lab, including the
198.33addition of eight forensic scientists. The base
199.1for this activity is $1,000,000 in each of the
199.2fiscal years 2018 and 2019.
199.3(b) Missing Person Training
199.4$100,000 is to provide regional and statewide
199.5training for law enforcement on best practices
199.6in responding to and investigating missing
199.7persons reports. This training must include
199.8information on:
199.9(1) handling cases involving persons with
199.10dementia, traumatic brain injury, Alzheimer's
199.11disease, or other mental disabilities; and
199.12(2) developing agency policies and
199.13procedural checklists in missing person
199.14cases.
199.15(c) Assessment of Law Enforcement Needs
199.16$88,000 is for a grant to the Arrowhead
199.17Regional Development Commission to
199.18conduct an assessment of law enforcement
199.19needs for detention facilities in northeast
199.20Minnesota. This is a onetime appropriation.
199.21(d) Children In Need of Services or in
199.22Out-Of-Home Placement
199.23$150,000 is for a grant to an organization
199.24that provides legal representation to children
199.25in need of protection or services and children
199.26in out-of-home placement. The grant is
199.27contingent upon a match in an equal amount
199.28from nonstate funds. The match may be
199.29in kind, including the value of volunteer
199.30attorney time, or in cash, or in a combination
199.31of the two.
199.32(e) Youth Intervention Programs
200.1$129,000 is for youth intervention programs
200.2under Minnesota Statutes, section 299A.73.
200.3This is a onetime appropriation.
200.4(f) Mental Health Crisis Training
200.5Curriculum
200.6$150,000 is for grants to organizations
200.7to develop curriculum, including online
200.8training, to meet the training requirements
200.9under section 8. This is a onetime
200.10appropriation.
200.11(g) Autism Training
200.12$50,000 is to select and retain a person or
200.13entity to train law enforcement, firefighters,
200.14and EMTs to better respond to emergency
200.15encounters and crisis situations with
200.16individuals with autism spectrum disorder
200.17and to train other individuals or entities
200.18to conduct this training to create a Cop
200.19Autism Response Education (CARE) pilot
200.20program. When selecting a trainer, the
200.21commissioner shall consider the trainer's
200.22Peace Officer Standards and Training
200.23Board qualified training experience, and
200.24demonstrated knowledge on methods to
200.25help responders to effectively respond to
200.26emergency situations involving people
200.27with autism spectrum disorder and other
200.28related disabilities. The commissioner shall
200.29consult with the Peace Officer Standards and
200.30Training Board and the Minnesota Board of
200.31Firefighter Training and Education before
200.32selecting a trainer. By February 15, 2017,
200.33the commissioner shall report to the chairs
200.34and ranking minority members of the senate
200.35and house of representatives committees
201.1having jurisdiction over criminal justice
201.2policy and funding on the trainer selected
201.3and the training conducted pursuant to this
201.4section, including the number of emergency
201.5responders trained and the departments they
201.6represent. This is a onetime appropriation
201.7and is available until June 30, 2019.
201.8(h) Sex Trafficking
201.9$250,000 is for grants to state and local units
201.10of government for the following purposes:
201.11(1) to support new or existing
201.12multijurisdictional entities to investigate sex
201.13trafficking crimes; and
201.14(2) to provide technical assistance for
201.15sex trafficking crimes, including training
201.16and case consultation, to law enforcement
201.17agencies statewide.

201.18    Sec. 8. [626.8473] TRAINING IN RESPONDING TO A MENTAL HEALTH
201.19CRISIS.
201.20    Subdivision 1. Training course. The board, in consultation with the commissioner
201.21of human services and mental health stakeholders, shall create a list of approved training
201.22courses to instruct peace officers holding an active license in the techniques of responding
201.23to a mental health crisis. A course must include instruction on one or more of the
201.24following issues:
201.25(1) techniques for relating to individuals with mental illnesses and their families;
201.26(2) techniques for crisis de-escalation;
201.27(3) techniques for relating to diverse communities and education on mental health
201.28diversity;
201.29(4) education on mental illnesses and the criminal justice system;
201.30(5) education on community resources and supports for individuals experiencing a
201.31mental health crisis and for their families;
201.32(6) education on psychotropic medications and their side effects;
201.33(7) education on co-occurring mental illnesses and substance use disorders;
201.34(8) education on suicide prevention; and
202.1(9) education on mental illnesses and disorders and their symptoms.
202.2A course also must provide information on local mental health crisis teams in each
202.3participating officer's jurisdiction, including a summary of the services offered by the
202.4team and its contact information, and must include training on children and families of
202.5individuals with mental illnesses to enable officers to respond appropriately to others
202.6who are present during a mental health crisis. The board shall update the training list
202.7periodically as it deems appropriate.
202.8    Subd. 2. Training requirement. An individual shall complete a minimum of four
202.9hours of continuing education training under subdivision 1 over three years.
202.10EFFECTIVE DATE.This section is effective July 1, 2017.

202.11ARTICLE 10

202.12TRANSPORTATION APPROPRIATIONS

202.13    Section 1. Laws 2015, chapter 75, article 1, section 1, is amended to read:

202.14

Section 1. SUMMARY OF APPROPRIATIONS.

202.15The amounts shown in this section summarize direct appropriations by fund made
202.16in this act, and do not have legal effect.

202.17			2016		2017		Total
202.18 202.19	General	$	139,347,000	$	135,792,000 137,488,000	$	275,139,000 276,835,000
202.20 202.21	Airports		25,109,000 35,368,000		25,109,000 25,922,000		50,218,000 61,290,000
202.22	C.S.A.H.		670,768,000		698,495,000		1,369,263,000
202.23	M.S.A.S.		170,743,000		178,141,000		348,884,000
202.24	Special Revenue		61,475,000		62,210,000		123,685,000
202.25	H.U.T.D.		2,192,000		2,213,000		4,405,000
202.26 202.27	Trunk Highway		1,673,708,000		1,672,006,000 1,676,646,000		3,345,714,000 3,350,354,000
202.28 202.29	Total	$	2,743,342,000 2,753,601,000	$	2,773,966,000 2,781,115,000	$	5,517,308,000 5,534,716,000

202.30    Sec. 2. Laws 2015, chapter 75, article 1, section 3, subdivision 1, is amended to read:

202.31	Subdivision 1.Total Appropriation			$	2,488,269,000	$	2,496,573,000
202.32					2,498,528,000		2,498,912,000

202.33	Appropriations by Fund
202.34		2016	2017
202.35 202.36	General	44,115,000	21,058,000 22,444,000
203.1 203.2	Airports	25,109,000 35,368,000	25,109,000 25,922,000
203.3	C.S.A.H.	670,768,000	698,495,000
203.4	M.S.A.S.	170,743,000	178,141,000
203.5 203.6	Trunk Highway	1,577,534,000	1,573,770,000 1,573,910,000

203.7The amounts that may be spent for each
203.8purpose are specified in the following
203.9subdivisions.

203.10    Sec. 3. Laws 2015, chapter 75, article 1, section 3, subdivision 2, is amended to read:

203.11

Subd. 2.Multimodal Systems

203.12(a) Aeronautics

203.13 203.14

(1) Airport Development and Assistance

19,798,000 30,057,000

19,798,000

203.15This appropriation is from the state
203.16airports fund and must be spent according
203.17to Minnesota Statutes, section 360.305,
203.18subdivision 4 .
203.19The base appropriation in each of fiscal years
203.202018 and 2019 is $14,298,000.
203.21Notwithstanding Minnesota Statutes, section
203.2216A.28, subdivision 6 , this appropriation is
203.23available for five years after appropriation.
203.24If the appropriation for either year is
203.25insufficient, the appropriation for the other
203.26year is available for it.

203.27 203.28

(2) Aviation Support and Services

6,661,000

6,661,000 7,474,000

203.29	Appropriations by Fund
203.30		2016	2017
203.31 203.32	Airports	5,311,000	5,311,000 6,124,000
203.33	Trunk Highway	1,350,000	1,350,000

203.34$80,000 in each year is from the state airports
203.35fund for the Civil Air Patrol.
204.1$313,000 in the second year is from the state
204.2airports fund for software system upgrades
204.3needed to accommodate the regulation of
204.4drones under Minnesota Statutes, sections
204.5360.55, subdivision 9, and 360.679, through
204.6aircraft regulation and commercial operator
204.7licensing. This is a onetime appropriation.
204.8$500,000 in the second year is from the
204.9state airports fund for the commissioner of
204.10transportation to conduct an air transport
204.11optimization planning study for the St.
204.12Cloud Regional Airport. The study must
204.13be comprehensive and market-based, using
204.14economic development and air service
204.15expertise to research, analyze, and develop
204.16models and strategies that maximize the
204.17return on investments made to enhance the
204.18use and impact of the St. Cloud Regional
204.19Airport. This is a onetime appropriation.
204.20The base appropriation from the trunk
204.21highway fund in fiscal year 2018 is
204.22$1,479,000 and in fiscal year 2019 is
204.23$1,623,000.
204.24The base appropriation from the state airports
204.25fund in each of fiscal years 2018 and 2019 is
204.26$5,311,000.

204.27

(b) Transit

20,543,000

20,567,000

204.28	Appropriations by Fund
204.29		2016	2017
204.30	General	19,745,000	19,745,000
204.31	Trunk Highway	798,000	822,000

204.32The base appropriation from the general
204.33fund in each of fiscal years 2018 and 2019
204.34is $17,245,000.
205.1The base appropriation from the trunk
205.2highway fund in fiscal year 2018 is $846,000
205.3and in fiscal year 2019 is $873,000.

205.4

(c) Safe Routes to School

500,000

500,000

205.5This appropriation is from the general fund
205.6for the safe routes to school program under
205.7Minnesota Statutes, section 174.40.

205.8

(d) Passenger Rail

500,000

500,000

205.9This appropriation is from the general
205.10fund for passenger rail system planning,
205.11alternatives analysis, environmental analysis,
205.12design, and preliminary engineering under
205.13Minnesota Statutes, sections 174.632 to
205.14174.636 .

205.15 205.16

(e) Freight

13,445,000

5,452,000 6,838,000

205.17	Appropriations by Fund
205.18		2016	2017
205.19 205.20	General	8,401,000	256,000 1,642,000
205.21	Trunk Highway	5,044,000	5,196,000

205.22$150,000 in the second year is from the
205.23general fund to pay for an interagency rail
205.24director to work with the Interagency Rail
205.25Working Group to address rail safety, rail
205.26service, and rail impacts on communities.
205.27$1,128,000 in the second year is from
205.28the general fund to pay for freight and
205.29rail planning, engineering, administration,
205.30and related activities. This is a onetime
205.31appropriation.
205.32$108,000 in the second year is from the
205.33general fund for required activities of
205.34emergency response and preparedness
205.35related to oil and hazardous substances
206.1transported by rail. The base appropriation
206.2for this activity is $95,000 in fiscal year 2018,
206.3$37,000 in fiscal year 2019, and $0 thereafter.
206.4$145,000 in the first year is from the general
206.5fund for a grant to the Minnesota Commercial
206.6Railway for emergency temporary repairs
206.7to approximately 6.5 miles of railroad track
206.8described as that portion of the Minnesota
206.9Commercial main running lead, between
206.10M&D Junction in White Bear Lake and the
206.11end of track in Hugo.
206.12$3,000,000 in the first year is from the
206.13general fund for port development assistance
206.14program grants under Minnesota Statutes,
206.15chapter 457A. Any improvements made with
206.16the proceeds of these grants must be publicly
206.17owned. This is a onetime appropriation and
206.18is available in the second year.
206.19$5,000,000 in the first year is from the
206.20general fund for rail grade crossing
206.21safety improvements. This is a onetime
206.22appropriation and is available in the second
206.23year.
206.24The base appropriation from the trunk
206.25highway fund in fiscal year 2018 is
206.26$5,350,000 and in fiscal year 2019 is
206.27$5,522,000.
206.28The base appropriation from the general fund
206.29in fiscal year 2018 is $536,000 and in fiscal
206.30year 2019 is $478,000.

206.31    Sec. 4. Laws 2015, chapter 75, article 1, section 3, subdivision 3, is amended to read:

206.32

Subd. 3.State Roads

206.33

(a) Operations and Maintenance

288,405,000

290,916,000

207.1The base appropriation in fiscal year 2018
207.2is $292,140,000 and in fiscal year 2019 is
207.3$301,545,000.

207.4 207.5

(b) Program Planning and Delivery

237,529,000

231,252,000 231,392,000

207.6$140,000 in the second year is for the costs
207.7of developing, adopting, and implementing
207.8best practices for project evaluation and
207.9selection. This is a onetime appropriation.
207.10$130,000 in each year is available for
207.11administrative costs of the targeted group
207.12business program.
207.13$266,000 in each year is available for grants
207.14to metropolitan planning organizations
207.15outside the seven-county metropolitan area.
207.16$900,000 in each year is available for
207.17grants for transportation studies outside
207.18the metropolitan area to identify critical
207.19concerns, problems, and issues. These
207.20grants are available: (1) to regional
207.21development commissions; (2) in regions
207.22where no regional development commission
207.23is functioning, to joint powers boards
207.24established under agreement of two or
207.25more political subdivisions in the region to
207.26exercise the planning functions of a regional
207.27development commission; and (3) in regions
207.28where no regional development commission
207.29or joint powers board is functioning, to the
207.30department's district office for that region.
207.31$1,000,000 in each year is available
207.32for management of contaminated and
207.33regulated material on property owned by
207.34the Department of Transportation, including
207.35mitigation of property conveyances, facility
208.1acquisition or expansion, chemical release at
208.2maintenance facilities, and spills on the trunk
208.3highway system where there is no known
208.4responsible party. If the appropriation for
208.5either year is insufficient, the appropriation
208.6for the other year is available for it.
208.7$6,804,000 in the first year and $1,000,000 in
208.8the second year are available for the purposes
208.9stated in Minnesota Statutes, section 12A.16,
208.10subdivision 2 .
208.11The base appropriation for program
208.12planning and delivery in fiscal year 2018
208.13is $227,004,000 and in fiscal year 2019 is
208.14$234,331,000.

208.15

(c) State Road Construction

779,664,000

744,166,000

208.16This appropriation is for the actual
208.17construction, reconstruction, and
208.18improvement of trunk highways, including
208.19design-build contracts, internal department
208.20costs associated with delivering the
208.21construction program, and consultant usage
208.22to support these activities. This includes the
208.23cost of actual payment to landowners for
208.24lands acquired for highway rights-of-way,
208.25payment to lessees, interest subsidies, and
208.26relocation expenses.
208.27$1,000,000 in the first year is to complete
208.28projects using funds made available to
208.29the commissioner of transportation under
208.30title XII of the American Recovery and
208.31Reinvestment Act of 2009, Public Law
208.32111-5, and implemented under Minnesota
208.33Statutes, section 161.36, subdivision 7.
208.34$10,000,000 in each year is for the
208.35transportation economic development
209.1program under Minnesota Statutes, section
209.2174.12 .
209.3The commissioner may expend up to one-half
209.4of one percent of the federal appropriations
209.5under this paragraph as grants to opportunity
209.6industrialization centers and other nonprofit
209.7job training centers for job training programs
209.8related to highway construction.
209.9The commissioner may transfer up to
209.10$15,000,000 each year to the transportation
209.11revolving loan fund.
209.12The commissioner may receive money
209.13covering other shares of the cost of
209.14partnership projects. These receipts are
209.15appropriated to the commissioner for these
209.16projects.
209.17The base appropriation for state road
209.18construction in each of fiscal years 2018 and
209.192019 is $695,800,000.

209.20

(d) Highway Debt Service

197,381,000

231,199,000

209.21$187,881,000 the first year and $221,699,000
209.22the second year are for transfer to the state
209.23bond fund. If this appropriation is insufficient
209.24to make all transfers required in the year
209.25for which it is made, the commissioner
209.26of management and budget shall transfer
209.27the deficiency amount under the statutory
209.28open appropriation, and notify the chairs
209.29and ranking minority members of the
209.30legislative committees with jurisdiction over
209.31transportation finance and the chairs of the
209.32senate Committee on Finance and the house
209.33of representatives Committee on Ways and
209.34Means of the amount of the deficiency. Any
210.1excess appropriation cancels to the trunk
210.2highway fund.

210.3

(e) Statewide Radio Communications

5,358,000

5,486,000

210.4	Appropriations by Fund
210.5		2016	2017
210.6	General	35,000	3,000
210.7	Trunk Highway	5,323,000	5,483,000

210.8$3,000 in each year is from the general fund to
210.9equip and operate the Roosevelt signal tower
210.10for Lake of the Woods weather broadcasting.
210.11$32,000 in the first year is from the general
210.12fund for a weather transmitter in Lake of the
210.13Woods County.
210.14The base appropriation from the trunk
210.15highway fund in fiscal year 2018 is
210.16$5,645,000 and in fiscal year 2019 is
210.17$5,826,000.

210.18    Sec. 5. Laws 2015, chapter 75, article 1, section 4, is amended to read:

210.19 210.20

Sec. 4. METROPOLITAN COUNCIL

$

81,626,000

$

101,126,000 101,176,000

210.21This appropriation is from the general fund
210.22for transit system operations under Minnesota
210.23Statutes, sections 473.371 to 473.449.
210.24Of this amount, $27,300,000 is available
210.25through fiscal year 2018.
210.26$50,000 in the second year is for a grant
210.27to the city of St. Paul for a transitway
210.28development outreach pilot program. This is
210.29a onetime appropriation.
210.30Of this appropriation, $1,000,000 in
210.31each year is for financial assistance to
210.32replacement service providers under
210.33Minnesota Statutes, section 473.388, to
211.1implement a demonstration project that
211.2provides regular route transit or express
211.3bus service between municipalities in the
211.4metropolitan area, as defined in Minnesota
211.5Statutes, section 473.121, subdivision 2,
211.6excluding cities of the first class. The council
211.7may not retain any portion of funds specified
211.8in this rider. The replacement service
211.9providers shall collectively identify one or
211.10more demonstration projects for financial
211.11assistance and submit a notification of the
211.12allocation to the council. The council shall
211.13allocate the appropriated funds as directed by
211.14the replacement service providers. Criteria
211.15for evaluating and identifying demonstration
211.16projects must include but are not limited to:
211.17(1) scope of service offering improvements;
211.18(2) integration with transit facilities and
211.19major business, retail, or suburban centers;
211.20(3) extent to which a proposed route
211.21complements existing transit service; and
211.22(4) density of employment along a proposed
211.23route. This is a onetime appropriation.
211.24Of this appropriation, $200,000 in the first
211.25year is for grants payable by July 31, 2016,
211.26to transportation management organizations
211.27that provide services exclusively or primarily
211.28in (1) each city of the first class, as provided
211.29under section 410.01; and (2) the city having
211.30the highest population as of the effective
211.31date of this section located along the marked
211.32Interstate Highway 494 corridor. Permissible
211.33uses include administrative expenses and
211.34programming and service expansion,
211.35including but not limited to staffing,
211.36communications, outreach and education
212.1program development, and operations
212.2management. The council may not retain any
212.3portion of funds under this appropriation.
212.4The base appropriation in each of fiscal years
212.52018 and 2019 is $89,820,000.

212.6    Sec. 6. Laws 2015, chapter 75, article 1, section 5, subdivision 1, is amended to read:

212.7 212.8

Subdivision 1.Total Appropriation

$

173,447,000

$

176,267,000 181,027,000

212.9	Appropriations by Fund
212.10		2016	2017
212.11 212.12	General	13,606,000	13,608,000 13,868,000
212.13	Special Revenue	61,475,000	62,210,000
212.14	H.U.T.D.	2,192,000	2,213,000
212.15 212.16	Trunk Highway	96,174,000	98,236,000 102,736,000

212.17The amounts that may be spent for each
212.18purpose are specified in the following
212.19subdivisions.

212.20    Sec. 7. Laws 2015, chapter 75, article 1, section 5, subdivision 2, is amended to read:

212.21

Subd. 2.Administration and Related Services

212.22

(a) Office of Communications

517,000

530,000

212.23	Appropriations by Fund
212.24		2016	2017
212.25	General	113,000	115,000
212.26	Trunk Highway	404,000	415,000

212.27 212.28

(b) Public Safety Support

9,035,000

9,124,000 9,384,000

212.29	Appropriations by Fund
212.30		2016	2017
212.31 212.32	General	3,982,000	3,987,000 4,247,000
212.33	H.U.T.D.	1,366,000	1,366,000
212.34	Trunk Highway	3,687,000	3,771,000

213.1The base appropriation from the general
213.2fund in each of fiscal years 2018 and 2019 is
213.3$3,537,000.
213.4$380,000 in each the first year and $640,000
213.5in the second year is are from the general
213.6fund for payment of public safety officer
213.7survivor benefits under Minnesota Statutes,
213.8section 299A.44. If the appropriation for
213.9either year is insufficient, the appropriation
213.10for the other year is available for it.
213.11$1,367,000 in each year is from the general
213.12fund to be deposited in the public safety
213.13officer's benefit account. This money
213.14is available for reimbursements under
213.15Minnesota Statutes, section 299A.465.
213.16$600,000 in each year is from the general
213.17fund and $100,000 in each year is from the
213.18trunk highway fund for soft body armor
213.19reimbursements under Minnesota Statutes,
213.20section 299A.38.
213.21$450,000 in each year is from the general
213.22fund for the creation of two emergency
213.23response teams. One emergency response
213.24team must be under the jurisdiction of the
213.25St. Cloud Fire Department, or a similarly
213.26located fire department if necessary, and one
213.27emergency response team must be under the
213.28jurisdiction of the Duluth Fire Department.
213.29The commissioner shall allocate the funds
213.30as needed to facilitate the creation and
213.31maintenance of the emergency response
213.32teams. This is a onetime appropriation.

213.33

(c) Technology and Support Service

3,685,000

3,685,000

213.34	Appropriations by Fund
213.35		2016	2017
214.1	General	1,322,000	1,322,000
214.2	H.U.T.D.	19,000	19,000
214.3	Trunk Highway	2,344,000	2,344,000

214.4    Sec. 8. Laws 2015, chapter 75, article 1, section 5, subdivision 3, is amended to read:

214.5

Subd. 3.State Patrol

214.6 214.7

(a) Patrolling Highways

81,516,000

83,121,000 87,621,000

214.8	Appropriations by Fund
214.9		2016	2017
214.10	General	154,000	37,000
214.11	H.U.T.D.	92,000	92,000
214.12 214.13	Trunk Highway	81,270,000	82,992,000 87,492,000

214.14$4,500,000 from the trunk highway fund in
214.15the second year is to recruit, hire, train, and
214.16equip a State Patrol Academy.
214.17$858,000 from the trunk highway fund in the
214.18first year and $117,000 from the general fund
214.19in the first year is to purchase a single-engine
214.20aircraft for the State Patrol.
214.21The base appropriation from the trunk
214.22highway fund for patrolling highways in each
214.23of fiscal years 2018 and 2019 is $87,492,000,
214.24of which $4,500,000 each year is for a State
214.25Patrol Academy.

214.26

(b) Commercial Vehicle Enforcement

8,023,000

8,257,000

214.27

(c) Capitol Security

8,035,000

8,147,000

214.28This appropriation is from the general fund.
214.29The commissioner may not: (1) spend
214.30any money from the trunk highway fund
214.31for capitol security; or (2) permanently
214.32transfer any state trooper from the patrolling
214.33highways activity to capitol security.
215.1The commissioner may not transfer any
215.2money appropriated to the commissioner
215.3under this section: (1) to capitol security; or
215.4(2) from capitol security.

215.5

(d) Vehicle Crimes Unit

715,000

736,000

215.6This appropriation is from the highway user
215.7tax distribution fund.
215.8This appropriation is to investigate: (1)
215.9registration tax and motor vehicle sales tax
215.10liabilities from individuals and businesses
215.11that currently do not pay all taxes owed;
215.12and (2) illegal or improper activity related
215.13to sale, transfer, titling, and registration of
215.14motor vehicles.

215.15    Sec. 9. CITY OF GRAND RAPIDS FREIGHT RAIL CONSTRUCTION DESIGN.
215.16$1,000,000 is appropriated from the rail service improvement account in the special
215.17revenue fund to the commissioner of transportation for a grant to the city of Grand
215.18Rapids to fund rail planning studies, design, and preliminary engineering relating to the
215.19construction of a freight rail line located in the counties of Itasca, St. Louis, and Lake
215.20to serve local producers and shippers. The city of Grand Rapids shall collaborate with
215.21the Itasca Economic Development Corporation and the Itasca County Regional Railroad
215.22Authority in the activities funded with the proceeds of this grant. This is a onetime
215.23appropriation and is available until June 30, 2019.
215.24EFFECTIVE DATE.This section is effective the day following final enactment.

215.25    Sec. 10. AUTONOMOUS VEHICLES TASK FORCE; APPROPRIATION.
215.26$25,000 is appropriated from the general fund in fiscal year 2017 to the
215.27commissioner of transportation for the administrative support costs of the autonomous
215.28vehicles task force. This is a onetime appropriation and is available until June 30, 2019.

215.29    Sec. 11. OIL TRAIN AND PIPELINE SAFETY TRAINING REPORT;
215.30APPROPRIATION.
215.31$35,000 is appropriated from the general fund in fiscal year 2017 to the commissioner
215.32of public safety for a report comparing existing and proposed oil train and pipeline safety
216.1training programs and training center locations. The report must analyze existing and
216.2proposed training centers to identify each center's resources, assets, and infrastructure; the
216.3potential of each center to identify and utilize nonstate resources and partnerships; and the
216.4date on which each center, with the assistance of state resources, would begin offering
216.5training programs to first responders, emergency managers, and other local and state
216.6government officials. The report must be submitted no later than February 1, 2017, to the
216.7chairs and ranking minority members of the senate and house of representatives committees
216.8having jurisdiction over public safety policy and finance. This is a onetime appropriation.

216.9ARTICLE 11

216.10TRANSPORTATION FISCAL PROVISIONS

216.11    Section 1. Minnesota Statutes 2014, section 115E.042, is amended to read:
216.12115E.042 PREPAREDNESS AND RESPONSE FOR CERTAIN RAILROADS.
216.13    Subdivision 1. Application. In addition to the requirements of section 115E.04,
216.14a person who owns or operates railroad car rolling stock transporting a unit train must
216.15comply with this section.
216.16    Subd. 2. Training. (a) Each railroad must offer training to each fire department,
216.17and each local organization for emergency management under section 12.25, having
216.18jurisdiction along the route of unit trains routes over which oil and other hazardous
216.19substances are transported. Initial training under this subdivision must be offered to each
216.20fire department by June 30, 2016, and Refresher training must be offered to each fire
216.21department and local organization for emergency management at least once every three
216.22years thereafter after initial training under this subdivision.
216.23(b) The training must address the general hazards of oil and hazardous substances,
216.24techniques to assess hazards to the environment and to the safety of responders and the
216.25public, factors an incident commander must consider in determining whether to attempt to
216.26suppress a fire or to evacuate the public and emergency responders from an area, and other
216.27strategies for initial response by local emergency responders. The training must include
216.28suggested protocol or practices for local responders to safely accomplish these tasks.
216.29    Subd. 3. Coordination. Beginning June 30, 2015, Each railroad must communicate
216.30at least annually with each county or city emergency manager, safety representatives of
216.31railroad employees governed by the Railway Labor Act, and a senior fire department
216.32officer of each fire department having jurisdiction along the route of a unit train routes
216.33over which oil and other hazardous substances are transported, to:
217.1(1) ensure coordination of emergency response activities between the railroad and
217.2local responders; and
217.3(2) assist emergency managers identify and assess local threats, hazards, and risks in
217.4areas (i) having high population concentration, or (ii) in which key facilities are located.
217.5    Subd. 4. Response capabilities; time limits. (a) Following confirmation of a
217.6discharge, a railroad must deliver and deploy sufficient equipment and trained personnel to
217.7contain and recover discharged oil or hazardous substances and to protect the environment
217.8and public safety.
217.9(b) Within one hour of confirmation of a discharge, a railroad must provide a
217.10qualified company employee to advise the incident commander. The employee may be
217.11made available by telephone, and must be authorized to deploy all necessary response
217.12resources of the railroad.
217.13(c) Within three hours of confirmation of a discharge, a railroad must be capable of
217.14delivering monitoring equipment and a trained operator to assist in protection of responder
217.15and public safety. A plan to ensure delivery of monitoring equipment and an operator to a
217.16discharge site must be provided each year to the commissioner of public safety.
217.17(d) Within three hours of confirmation of a discharge, a railroad must provide qualified
217.18personnel at a discharge site to assess the discharge and to advise the incident commander.
217.19(e) A railroad must be capable of deploying containment boom from land across
217.20sewer outfalls, creeks, ditches, and other places where oil or hazardous substances
217.21may drain, in order to contain leaked material before it reaches those resources. The
217.22arrangement to provide containment boom and staff may be made by:
217.23(1) training and caching equipment with local jurisdictions;
217.24(2) training and caching equipment with a fire mutual-aid group;
217.25(3) means of an industry cooperative or mutual-aid group;
217.26(4) deployment of a contractor;
217.27(5) deployment of a response organization under state contract; or
217.28(6) other dependable means acceptable to the Pollution Control Agency.
217.29(f) Each arrangement under paragraph (e) must be confirmed each year. Each
217.30arrangement must be tested by drill at least once every five years.
217.31(g) Within eight hours of confirmation of a discharge, a railroad must be capable of
217.32delivering and deploying containment boom, boats, oil recovery equipment, trained staff,
217.33and all other materials needed to provide:
217.34(1) on-site containment and recovery of a volume of oil equal to ten percent of the
217.35calculated worst case discharge at any location along the route; and
218.1(2) protection of listed sensitive areas and potable water intakes within one mile of
218.2a discharge site and within eight hours of water travel time downstream in any river
218.3or stream that the right-of-way intersects.
218.4(h) Within 60 hours of confirmation of a discharge, a railroad must be capable of
218.5delivering and deploying additional containment boom, boats, oil recovery equipment,
218.6trained staff, and all other materials needed to provide containment and recovery of a
218.7worst case discharge and to protect listed sensitive areas and potable water intakes at any
218.8location along the route.
218.9    Subd. 5. Railroad Environmental response drills. Each railroad must conduct at
218.10least one oil containment, recovery, and sensitive area protection drill exercises as follows:
218.11(1) at least one tabletop exercise every year; and (2) at least one full-scale exercise every
218.12three years, at a location and time and in the manner chosen by the Pollution Control
218.13Agency, and attended by safety representatives of railroad employees governed by the
218.14Railway Labor Act.
218.15    Subd. 5a. Prevention and response plans; capacity information. In addition to
218.16other requirements, a prevention and response plan under section 115E.04 must include a
218.17description of the capacity and methods a railroad intends to utilize in order to meet the
218.18requirements under subdivision 4.
218.19    Subd. 6. Prevention and response plans; submission requirements. (a) By
218.20June 30, 2015, A railroad shall submit the prevention and response plan required under
218.21section 115E.04, as necessary to comply with the requirements of this section, to the
218.22commissioner of the Pollution Control Agency on a form designated by the commissioner.
218.23(b) By June 30 of In every third year following a plan submission under this
218.24subdivision, or sooner as provided under section 115E.04, subdivision 2, a railroad must
218.25update and resubmit the prevention and response plan to the commissioner.
218.26    Subd. 7. Financial responsibility. (a) Each railroad must file with the commissioner
218.27of transportation a financial responsibility plan that complies with the requirements of this
218.28subdivision, in a form and manner determined by the commissioner.
218.29(b) The financial responsibility plan must include (1) evidence demonstrating that
218.30the railroad has the financial ability to pay for the environmental costs that may arise
218.31while the financial responsibility plan is in effect, and (2) business information required by
218.32the commissioner.
218.33(c) Evidence of the railroad's financial ability to pay, in the form, at the amount,
218.34and with such contractual terms, conditions, or defenses required by the commissioner
218.35can be demonstrated by:
218.36(1) insurance meeting the requirements of chapter 60A;
219.1(2) self-insurance;
219.2(3) surety bond; or
219.3(4) irrevocable letter of credit, as defined in section 336.5-102.
219.4(d) The commissioner must set the amount of financial ability to pay in consultation
219.5with the commissioner of the Pollution Control Agency: (1) using a calculation based on
219.6the volume of oil or other hazardous substances to be transported within or through the
219.7state; and (2) at a level no less than the expected environmental costs from a worst-case
219.8discharge.
219.9(e) A financial responsibility plan must be continuous until canceled. The
219.10commissioner must receive 90 days' written notice prior to cancellation of any evidence of
219.11the railroad's ability to pay. A railroad shall notify the commissioner promptly following a
219.12material change in ability to pay.

219.13    Sec. 2. Minnesota Statutes 2014, section 161.368, is amended to read:
219.14161.368 HIGHWAY CONTRACTS WITH TRIBAL AUTHORITIES.
219.15(a) On behalf of the state, the commissioner may enter into agreements with Indian
219.16tribal authorities for the purpose of providing maintenance, design, and construction to
219.17highways on tribal lands. These agreements may include (1) a provision for waiver of
219.18immunity from suit by a party to the contract on the part of the tribal authority with respect
219.19to any controversy arising out of the contract and (2) a provision conferring jurisdiction on
219.20state district courts to hear such a controversy.
219.21(b) Notwithstanding section 161.32, for construction of highways on tribal lands
219.22in a reservation exempt from Public Law 83-280, the commissioner may: (1) award
219.23a preference for Indian-owned contractors to the same extent provided in the applicable
219.24Tribal Employment Rights Ordinance, but not to exceed ten percent; or (2) negotiate
219.25with the tribal authority and enter into an agreement for the tribal authority to award and
219.26administer the construction contract, with the commissioner providing funding for the
219.27state share of the project. If negotiating with the tribal authority, the commissioner must
219.28perform an independent cost estimate and determine that the cost proposed by the tribal
219.29authority is reasonable. An agreement negotiated with a tribal authority must include a
219.30clause requiring conformance with plans and specifications approved by the commissioner.

219.31    Sec. 3. Minnesota Statutes 2014, section 165.14, subdivision 6, is amended to read:
219.32    Subd. 6. Annual report. Annually By January 15 of each odd-numbered year, the
219.33commissioner shall submit a report on the program to the chairs and ranking minority
219.34members of the house of representatives and senate committees with jurisdiction over
220.1transportation finance. The report must include the inventory information required under
220.2subdivision 3, and an analysis, including any recommendations for changes, of the
220.3adequacy and efficacy of (1) the program requirements under subdivision 3, and (2) the
220.4prioritization requirements under subdivision 4.

220.5    Sec. 4. Minnesota Statutes 2014, section 168.017, is amended by adding a subdivision
220.6to read:
220.7    Subd. 6. Refunds; grace period. The registrar shall cancel registration and provide
220.8a full refund on a vehicle registered under this section if an application for refund is
220.9submitted within the first ten days of the month commencing the registration period for
220.10which the refund is submitted.
220.11EFFECTIVE DATE.This section is effective the day following final enactment,
220.12and applies to registration periods starting on or after January 1, 2017.

220.13    Sec. 5. Minnesota Statutes 2014, section 168.021, subdivision 1, is amended to read:
220.14    Subdivision 1. Disability plates; application. (a) When a motor vehicle registered
220.15under section 168.017, a motorcycle, a motorized bicycle, a one-ton pickup truck, or
220.16a self-propelled recreational vehicle is owned or primarily operated by a permanently
220.17physically disabled person or a custodial parent or guardian of a permanently physically
220.18disabled minor, the owner may apply for and secure from the commissioner (1)
220.19immediately, a temporary permit valid for 30 days if the applicant is eligible for the
220.20disability plates issued under this section and (2) two disability plates with attached
220.21emblems, one plate to be attached to the front, and one to the rear of the motor vehicle,
220.22truck, or recreational vehicle, or, in the case of a motorcycle or a motorized bicycle, one
220.23disability plate the same size as a regular motorcycle plate.
220.24    (b) The commissioner shall not issue more than one plate to the owner of a
220.25motorcycle or a motorized bicycle and not more than one set of plates to any owner of
220.26another vehicle described in paragraph (a) at the same time unless the state Council on
220.27Disability approves the issuance of a second plate or set of plates to an owner.
220.28    (c) When the owner first applies for the disability plate or plates, the owner must
220.29submit a medical statement in a format approved by the commissioner under section
220.30169.345 , or proof of physical disability provided for in that section.
220.31    (d) No medical statement or proof of disability is required when an owner applies for
220.32a plate or plates for one or more vehicles listed in paragraph (a) that are specially modified
220.33for and used exclusively by permanently physically disabled persons.
221.1    (e) The owner of a vehicle listed in paragraph (a) may apply for and secure (i)
221.2immediately, a permit valid for 30 days, if the applicant is eligible to receive the disability
221.3plate or plates issued under this section, and (ii) a disability plate or plates for the vehicle if:
221.4    (1) the owner employs a permanently physically disabled person who would qualify
221.5for the disability plate or plates under this section; and
221.6    (2) the owner furnishes the motor vehicle to the physically disabled person for the
221.7exclusive use of that person in the course of employment.
221.8EFFECTIVE DATE.This section is effective January 1, 2017, if the commissioner
221.9of public safety has advised the revisor of statutes that the cost of the requirements of the
221.10section can be absorbed within existing appropriations from the vehicle services operating
221.11account in the special revenue fund.

221.12    Sec. 6. Minnesota Statutes 2014, section 168.021, subdivision 2, is amended to read:
221.13    Subd. 2. Plate design; furnished by commissioner. The commissioner shall design
221.14and furnish two disability plates, or one disability plate for a motorcycle or a motorized
221.15bicycle that is the same size as a regular motorcycle plate, with attached emblem or
221.16emblems to an eligible owner. The emblem must bear the internationally accepted
221.17wheelchair symbol, as designated in section 326B.106, subdivision 9, approximately three
221.18inches square. The emblem must be large enough to be visible plainly from a distance of
221.1950 feet. An applicant eligible for a disability plate or plates shall pay the motor vehicle
221.20registration fee authorized by sections 168.013 and 168.09.
221.21EFFECTIVE DATE.This section is effective January 1, 2017, if the commissioner
221.22of public safety has advised the revisor of statutes that the cost of the requirements of the
221.23section can be absorbed within existing appropriations from the vehicle services operating
221.24account in the special revenue fund.

221.25    Sec. 7. Minnesota Statutes 2014, section 168.021, subdivision 2a, is amended to read:
221.26    Subd. 2a. Plate transfer. (a) When ownership of a vehicle described in subdivision
221.271, is transferred, the owner of the vehicle shall remove the disability plate or plates. The
221.28buyer of the motor vehicle is entitled to receive a regular plate or plates for the vehicle
221.29without further cost for the remainder of the registration period.
221.30(b) Notwithstanding section 168.12, subdivision 1, the disability plate or plates may
221.31be transferred to a replacement vehicle on notification to the commissioner. However, the
221.32disability plate or plates may not be transferred unless the replacement vehicle (1) is listed
221.33under section 168.012, subdivision 1, and, in case of a single plate for a motorcycle or a
222.1motorized bicycle, the replacement vehicle is a motorcycle or a motorized bicycle, and (2)
222.2is owned or primarily operated by the permanently physically disabled person.
222.3EFFECTIVE DATE.This section is effective January 1, 2017, if the commissioner
222.4of public safety has advised the revisor of statutes that the cost of the requirements of the
222.5section can be absorbed within existing appropriations from the vehicle services operating
222.6account in the special revenue fund.

222.7    Sec. 8. [168.1294] LAW ENFORCEMENT MEMORIAL PLATES.
222.8    Subdivision 1. Issuance of plates. The commissioner shall issue special law
222.9enforcement memorial license plates or a single motorcycle plate to an applicant who:
222.10(1) is a registered owner of a passenger automobile, noncommercial one-ton pickup
222.11truck, motorcycle, or recreational motor vehicle;
222.12(2) pays an additional fee of $10 for each set of plates;
222.13(3) pays the registration tax as required under section 168.013, along with any
222.14other fees required by this chapter;
222.15(4) contributes $25 upon initial application and a minimum of $5 annually to the
222.16Minnesota Law Enforcement Memorial Association; and
222.17(5) complies with this chapter and rules governing registration of motor vehicles
222.18and licensing of drivers.
222.19    Subd. 2. Design. After consultation with the Minnesota Law Enforcement Memorial
222.20Association, the commissioner shall design the special plate. The final design of the plate
222.21is subject to the approval of the commissioner.
222.22    Subd. 3. Plates transfer. On application to the commissioner and payment of a
222.23transfer fee of $5, special plates may be transferred to another qualified motor vehicle that
222.24is registered to the same individual to whom the special plates were originally issued.
222.25    Subd. 4. Exemption. Special plates issued under this section are not subject to
222.26section 168.1293, subdivision 2.
222.27    Subd. 5. Fees. Fees collected under subdivision 1, clauses (2) and (3), and
222.28subdivision 3 are credited to the vehicle services operating account in the special revenue
222.29fund.
222.30EFFECTIVE DATE.This section is effective January 1, 2017, for special law
222.31enforcement memorial plates issued on or after that date.

222.32    Sec. 9. [168A.125] TRANSFER-ON-DEATH TITLE TO MOTOR VEHICLE.
223.1    Subdivision 1. Titled as transfer-on-death. A natural person who is the owner of
223.2a motor vehicle may have the motor vehicle titled in transfer-on-death or TOD form by
223.3including in the application for the certificate of title a designation of a beneficiary or
223.4beneficiaries to whom the motor vehicle must be transferred on death of the owner or the last
223.5survivor of joint owners with rights of survivorship, subject to the rights of secured parties.
223.6    Subd. 2. Designation of beneficiary. A motor vehicle is registered in
223.7transfer-on-death form by designating on the certificate of title the name of the owner
223.8and the names of joint owners with identification of rights of survivorship, followed by
223.9the words "transfer-on-death to (name of beneficiary or beneficiaries)." The designation
223.10"TOD" may be used instead of "transfer-on-death." A title in transfer-on-death form is
223.11not required to be supported by consideration, and the certificate of title in which the
223.12designation is made is not required to be delivered to the beneficiary or beneficiaries in
223.13order for the designation to be effective. If the owner of the motor vehicle is married at
223.14the time of the designation, the designation of a beneficiary other than the owner's spouse
223.15requires the spouse's written consent.
223.16    Subd. 3. Interest of beneficiary. The transfer-on-death beneficiary or beneficiaries
223.17have no interest in the motor vehicle until the death of the owner or the last survivor of
223.18joint owners with rights of survivorship. A beneficiary designation may be changed at any
223.19time by the owner or by all joint owners with rights of survivorship, without the consent of
223.20the beneficiary or beneficiaries, by filing an application for a new certificate of title.
223.21    Subd. 4. Vesting of ownership in beneficiary. Ownership of a motor vehicle titled
223.22in transfer-on-death form vests in the designated beneficiary or beneficiaries on the death
223.23of the owner or the last of the joint owners with rights of survivorship, subject to the
223.24rights of secured parties. The transfer-on-death beneficiary or beneficiaries who survive
223.25the owner may apply for a new certificate of title to the motor vehicle upon submitting
223.26a certified death record of the owner of the motor vehicle. If no transfer-on-death
223.27beneficiary or beneficiaries survive the owner of a motor vehicle, the motor vehicle must
223.28be included in the probate estate of the deceased owner. A transfer of a motor vehicle to a
223.29transfer-on-death beneficiary or beneficiaries is not a testamentary transfer.
223.30    Subd. 5. Rights of creditors. (a) This section does not limit the rights of any
223.31secured party or creditor of the owner of a motor vehicle against a transfer-on-death
223.32beneficiary or beneficiaries.
223.33(b) The state or a county agency with a claim or lien authorized by section 246.53,
223.34256B.15, 261.04, or 270C.63, is a creditor for purposes of this subdivision. A claim
223.35or lien under those sections continues to apply against the designated beneficiary or
223.36beneficiaries after the transfer under this section if other assets of the deceased owner's
224.1estate are insufficient to pay the amount of the claim. The claim or lien continues to
224.2apply to the motor vehicle until the designated beneficiary sells or transfers it to a person
224.3against whom the claim or lien does not apply and who did not have actual notice or
224.4knowledge of the claim or lien.

224.5    Sec. 10. Minnesota Statutes 2014, section 168A.29, subdivision 1, is amended to read:
224.6    Subdivision 1. Amounts. (a) The department must be paid the following fees:
224.7    (1) for filing an application for and the issuance of an original certificate of title,
224.8the sum of:
224.9    (i) until December 31, 2016, $6.25 of which $3.25 must be paid into the vehicle
224.10services operating account of the special revenue fund under section 299A.705, and from
224.11July 1, 2012, to June 30, 2016 2019, a surcharge of $1 must be added to the fee and
224.12credited to the driver and vehicle services technology account; and
224.13(ii) on and after January 1, 2017, $8.25 of which $4.15 must be paid into the vehicle
224.14services operating account;
224.15    (2) for each security interest when first noted upon a certificate of title, including the
224.16concurrent notation of any assignment thereof and its subsequent release or satisfaction,
224.17the sum of $2, except that no fee is due for a security interest filed by a public authority
224.18under section 168A.05, subdivision 8;
224.19    (3) until December 31, 2016, for the transfer of the interest of an owner and the
224.20issuance of a new certificate of title, the sum of $5.50 of which $2.50 must be paid into the
224.21vehicle services operating account of the special revenue fund under section 299A.705,
224.22and from July 1, 2012, to June 30, 2016 2019, a surcharge of $1 must be added to the fee
224.23and credited to the driver and vehicle services technology account;
224.24    (4) for each assignment of a security interest when first noted on a certificate of title,
224.25unless noted concurrently with the security interest, the sum of $1; and
224.26    (5) for issuing a duplicate certificate of title, the sum of $7.25 of which $3.25 must
224.27be paid into the vehicle services operating account of the special revenue fund under
224.28section 299A.705; from July 1, 2012, to June 30, 2016 2019, a surcharge of $1 must be
224.29added to the fee and credited to the driver and vehicle services technology account.
224.30    (b) In addition to the fee required under paragraph (a), clause (1), the department
224.31must be paid $3.50. The additional $3.50 fee collected under this paragraph must be
224.32deposited in the special revenue fund and credited to the public safety motor vehicle
224.33account established in section 299A.70.
224.34EFFECTIVE DATE.This section is effective the day following final enactment.

225.1    Sec. 11. Minnesota Statutes 2014, section 169.345, subdivision 1, is amended to read:
225.2    Subdivision 1. Scope of privilege. (a) A vehicle described in section 168.021,
225.3subdivision 1, paragraph (a), that prominently displays the certificate authorized by this
225.4section or that bears the disability plate or plates issued under section 168.021 may be
225.5parked by or solely for the benefit of a physically disabled person:
225.6(1) in a designated parking space for disabled persons, as provided in section 169.346;
225.7(2) in a metered parking space without obligation to pay the meter fee and without
225.8time restrictions unless time restrictions are separately posted on official signs; and
225.9(3) without time restrictions in a nonmetered space where parking is otherwise
225.10allowed for passenger vehicles but restricted to a maximum period of time and that does
225.11not specifically prohibit the exercise of disabled parking privileges in that space.
225.12A person may park the vehicle for a physically disabled person in a parking space
225.13described in clause (1) or (2) only when actually transporting the physically disabled
225.14person for the sole benefit of that person and when the parking space is within a reasonable
225.15distance from the drop-off point.
225.16(b) For purposes of this subdivision, a certificate is prominently displayed if it is
225.17displayed so that it may be viewed from the front and rear of the motor vehicle by hanging
225.18it from the rearview mirror attached to the front windshield of the motor vehicle or, in
225.19the case of a motorcycle or a motorized bicycle, is secured to the vehicle. If there is no
225.20rearview mirror or if the certificate holder's disability precludes placing the certificate on
225.21the mirror, the certificate must be displayed on the dashboard of the vehicle. No part of
225.22the certificate may be obscured.
225.23(c) Notwithstanding paragraph (a), clauses (1), (2), and (3), this section does not
225.24permit parking in areas prohibited by sections 169.32 and 169.34, in designated no
225.25parking spaces, or in parking spaces reserved for specified purposes or vehicles. A local
225.26governmental unit may, by ordinance, prohibit parking on any street or highway to create
225.27a fire lane, or to accommodate heavy traffic during morning and afternoon rush hours and
225.28these ordinances also apply to physically disabled persons.
225.29EFFECTIVE DATE.This section is effective January 1, 2017, if the commissioner
225.30of public safety has advised the revisor of statutes that the cost of the requirements of the
225.31section can be absorbed within existing appropriations from the vehicle services operating
225.32account in the special revenue fund.

225.33    Sec. 12. Minnesota Statutes 2014, section 169.345, subdivision 2, is amended to read:
226.1    Subd. 2. Definitions. (a) For the purpose of section 168.021 and this section, the
226.2following terms have the meanings given them in this subdivision.
226.3(b) "Health professional" means a licensed physician, licensed physician assistant,
226.4advanced practice registered nurse, or licensed chiropractor.
226.5(c) "Long-term certificate" means a certificate issued for a period greater than 12
226.6months but not greater than 71 months.
226.7(d) "Organization certificate" means a certificate issued to an entity other than a
226.8natural person for a period of three years.
226.9(e) "Permit" refers to a permit that is issued for a period of 30 days, in lieu of the
226.10certificate referred to in subdivision 3, while the application is being processed.
226.11(f) "Physically disabled person" means a person who:
226.12(1) because of disability cannot walk without significant risk of falling;
226.13(2) because of disability cannot walk 200 feet without stopping to rest;
226.14(3) because of disability cannot walk without the aid of another person, a walker, a
226.15cane, crutches, braces, a prosthetic device, or a wheelchair;
226.16(4) is restricted by a respiratory disease to such an extent that the person's forced
226.17(respiratory) expiratory volume for one second, when measured by spirometry, is less
226.18than one liter;
226.19(5) has an arterial oxygen tension (PaO2) of less than 60 mm/Hg on room air at rest;
226.20(6) uses portable oxygen;
226.21(7) has a cardiac condition to the extent that the person's functional limitations are
226.22classified in severity as class III or class IV according to standards set by the American
226.23Heart Association;
226.24(8) has lost an arm or a leg and does not have or cannot use an artificial limb; or
226.25(9) has a disability that would be aggravated by walking 200 feet under normal
226.26environmental conditions to an extent that would be life threatening; or
226.27(10) has been diagnosed with a form of dementia that is progressive in nature with
226.28physical complications, or the condition either impacts activities of daily living or presents
226.29an unreasonable safety risk.
226.30(g) "Short-term certificate" means a certificate issued for a period greater than six
226.31months but not greater than 12 months.
226.32(h) "Six-year certificate" means a certificate issued for a period of six years.
226.33(i) "Temporary certificate" means a certificate issued for a period not greater than
226.34six months.

226.35    Sec. 13. Minnesota Statutes 2014, section 169.345, subdivision 3, is amended to read:
227.1    Subd. 3. Identifying certificate. (a) The commissioner shall issue (1) immediately,
227.2a permit valid for 30 days if the person is eligible for the certificate issued under this
227.3section and (2) an identifying certificate for a vehicle described in section 168.021,
227.4subdivision 1, paragraph (a), when a physically disabled applicant submits proof of
227.5physical disability under subdivision 2a. The commissioner shall design separate
227.6certificates for persons with permanent and temporary disabilities that can be readily
227.7distinguished from each other from outside a vehicle at a distance of 25 feet or, in the
227.8case of a motorcycle or a motorized bicycle, can be readily secured to the motorcycle or
227.9motorized bicycle. An applicant may be issued up to two certificates if the applicant has
227.10not been issued disability plates under section 168.021.
227.11(b) The operator of a vehicle displaying a certificate has the parking privileges
227.12provided in subdivision 1 only while the vehicle is actually parked while transporting a
227.13physically disabled person.
227.14(c) The commissioner shall cancel all certificates issued to an applicant who fails to
227.15comply with the requirements of this subdivision.
227.16EFFECTIVE DATE.This section is effective January 1, 2017, if the commissioner
227.17of public safety has advised the revisor of statutes that the cost of the requirements of the
227.18section can be absorbed within existing appropriations from the vehicle services operating
227.19account in the special revenue fund.

227.20    Sec. 14. Minnesota Statutes 2014, section 171.06, subdivision 2, is amended to read:
227.21    Subd. 2. Fees. (a) The fees for a license and Minnesota identification card are
227.22as follows:

227.23	Classified Driver's License		D-$17.25	C-$21.25	B-$28.25	A-$36.25
227.24	Classified Under-21 D.L.		D-$17.25	C-$21.25	B-$28.25	A-$16.25
227.25	Enhanced Driver's License		D-$32.25	C-$36.25	B-$43.25	A-$51.25
227.26	Instruction Permit					$5.25
227.27 227.28	Enhanced Instruction Permit					$20.25
227.29 227.30	Commercial Learner's Permit					$2.50
227.31	Provisional License					$8.25
227.32 227.33	Enhanced Provisional License					$23.25
227.34 227.35 227.36	Duplicate License or duplicate identification card					$6.75
228.1 228.2 228.3 228.4	Enhanced Duplicate License or enhanced duplicate identification card					$21.75
228.5 228.6 228.7 228.8 228.9 228.10 228.11	Minnesota identification card or Under-21 Minnesota identification card, other than duplicate, except as otherwise provided in section 171.07, subdivisions 3 and 3a					$11.25
228.12 228.13	Enhanced Minnesota identification card					$26.25

228.14In addition to each fee required in this paragraph, the commissioner shall collect a
228.15surcharge of: (1) $1.75 until June 30, 2012; and (2) $1.00 from July 1, 2012, to June 30,
228.162016 2019. Surcharges collected under this paragraph must be credited to the driver and
228.17vehicle services technology account in the special revenue fund under section 299A.705.
228.18    (b) Notwithstanding paragraph (a), an individual who holds a provisional license and
228.19has a driving record free of (1) convictions for a violation of section 169A.20, 169A.33,
228.20169A.35 , or sections 169A.50 to 169A.53, (2) convictions for crash-related moving
228.21violations, and (3) convictions for moving violations that are not crash related, shall have a
228.22$3.50 credit toward the fee for any classified under-21 driver's license. "Moving violation"
228.23has the meaning given it in section 171.04, subdivision 1.
228.24    (c) In addition to the driver's license fee required under paragraph (a), the
228.25commissioner shall collect an additional $4 processing fee from each new applicant
228.26or individual renewing a license with a school bus endorsement to cover the costs for
228.27processing an applicant's initial and biennial physical examination certificate. The
228.28department shall not charge these applicants any other fee to receive or renew the
228.29endorsement.
228.30(d) In addition to the fee required under paragraph (a), a driver's license agent may
228.31charge and retain a filing fee as provided under section 171.061, subdivision 4.
228.32(e) In addition to the fee required under paragraph (a), the commissioner shall
228.33charge a filing fee at the same amount as a driver's license agent under section 171.061,
228.34subdivision 4. Revenue collected under this paragraph must be deposited in the driver
228.35services operating account.
228.36(f) An application for a Minnesota identification card, instruction permit, provisional
228.37license, or driver's license, including an application for renewal, must contain a provision
228.38that allows the applicant to add to the fee under paragraph (a), a $2 donation for the
228.39purposes of public information and education on anatomical gifts under section 171.075.
229.1EFFECTIVE DATE.This section is effective the day following final enactment.

229.2    Sec. 15. Minnesota Statutes 2014, section 174.185, is amended to read:
229.3174.185 PAVEMENT LIFE-CYCLE COST ANALYSIS.
229.4    Subdivision 1. Definitions. For the purposes of this section, the following
229.5definitions apply.
229.6    (a) "Life-cycle cost" is the sum of the cost of the initial pavement project and
229.7all anticipated costs for maintenance, repair, and resurfacing over the life of the
229.8pavement. Anticipated costs must be based on Minnesota's actual or reasonably projected
229.9maintenance, repair, and resurfacing schedules, and costs determined by the Department
229.10of Transportation district personnel based upon recently awarded local projects and
229.11experience with local material costs.
229.12    (b) "Life-cycle cost analysis" is a comparison of life-cycle costs among competing
229.13paving materials using equal design lives and equal comparison periods.
229.14    Subd. 2. Required analysis. For each project in the reconditioning, resurfacing,
229.15and road repair funding categories, the commissioner shall perform a life-cycle cost
229.16analysis and shall document the lowest life-cycle costs and all alternatives considered.
229.17The commissioner shall document the chosen pavement strategy and, if the lowest life
229.18cycle is not selected, document the justification for the chosen strategy. A life-cycle cost
229.19analysis is required for projects to be constructed after July 1, 2011. For projects to be
229.20constructed prior to July 1, 2011, when feasible, the department will use its best efforts to
229.21perform life-cycle cost analyses.
229.22    Subd. 3. Report. The commissioner shall report annually by January 15 of each
229.23year to the chairs and ranking minority members of the senate and house of representatives
229.24committees with jurisdiction over transportation finance beginning on January 1, 2012, the
229.25results of the analyses required in subdivision 2.

229.26    Sec. 16. Minnesota Statutes 2014, section 174.30, subdivision 1, is amended to read:
229.27    Subdivision 1. Applicability. (a) The operating standards for special transportation
229.28service adopted under this section do not apply to special transportation provided by:
229.29(1) a common carrier operating on fixed routes and schedules public transit provider
229.30receiving financial assistance under sections 174.24 or 473.371 to 473.449;
229.31(2) a volunteer driver using a private automobile;
229.32(3) a school bus as defined in section 169.011, subdivision 71; or
229.33(4) an emergency ambulance regulated under chapter 144.
230.1(b) The operating standards adopted under this section only apply to providers
230.2of special transportation service who receive grants or other financial assistance from
230.3either the state or the federal government, or both, to provide or assist in providing that
230.4service; except that the operating standards adopted under this section do not apply
230.5to any nursing home licensed under section 144A.02, to any board and care facility
230.6licensed under section 144.50, or to any day training and habilitation services, day care,
230.7or group home facility licensed under sections 245A.01 to 245A.19 unless the facility or
230.8program provides transportation to nonresidents on a regular basis and the facility receives
230.9reimbursement, other than per diem payments, for that service under rules promulgated
230.10by the commissioner of human services.
230.11(c) Notwithstanding paragraph (b), the operating standards adopted under this
230.12section do not apply to any vendor of services licensed under chapter 245D that provides
230.13transportation services to consumers or residents of other vendors licensed under chapter
230.14245D and transports 15 or fewer persons, including consumers or residents and the driver.

230.15    Sec. 17. Minnesota Statutes 2014, section 174.30, is amended by adding a subdivision
230.16to read:
230.17    Subd. 1a. Definition. For purposes of this section, unless the context clearly
230.18indicates otherwise, "disqualified" means an individual disqualified under chapter 245C
230.19who has not received a disqualification set-aside under sections 245C.22 and 245C.23
230.20specific to that special transportation service provider.

230.21    Sec. 18. Minnesota Statutes 2015 Supplement, section 174.30, subdivision 4, is
230.22amended to read:
230.23    Subd. 4. Vehicle and equipment inspection; rules; decal; complaint contact
230.24information; restrictions on name of service. (a) The commissioner shall inspect or
230.25provide for the inspection of vehicles at least annually. In addition to scheduled annual
230.26inspections and reinspections scheduled for the purpose of verifying that deficiencies have
230.27been corrected, unannounced inspections of any vehicle may be conducted.
230.28    (b) On determining that a vehicle or vehicle equipment is in a condition that is likely
230.29to cause an accident or breakdown, the commissioner shall require the vehicle to be taken
230.30out of service immediately. The commissioner shall require that vehicles and equipment
230.31not meeting standards be repaired and brought into conformance with the standards
230.32and shall require written evidence of compliance from the operator before allowing the
230.33operator to return the vehicle to service. The commissioner may prohibit a vehicle from
231.1being placed in or returned to service under a certificate of compliance until the vehicle
231.2fully complies with all of the requirements in Minnesota Rules, chapter 8840.
231.3    (c) The commissioner shall provide in the rules procedures for inspecting vehicles,
231.4removing unsafe vehicles from service, determining and requiring compliance, and
231.5reviewing driver qualifications.
231.6    (d) The commissioner shall design a distinctive decal to be issued to special
231.7transportation service providers with a current certificate of compliance under this section.
231.8A decal is valid for one year from the last day of the month in which it is issued. A person
231.9who is subject to the operating standards adopted under this section may not provide
231.10special transportation service in a vehicle that does not conspicuously display a decal
231.11issued by the commissioner.
231.12    (e) All special transportation service providers shall pay an annual fee of $45
231.13to obtain a decal. Providers of ambulance service, as defined in section 144E.001,
231.14subdivision 3, are exempt from the annual fee. Fees collected under this paragraph must
231.15be deposited in the trunk highway fund, and are appropriated to the commissioner to pay
231.16for costs related to administering the special transportation service program.
231.17    (f) Special transportation service providers shall prominently display in each vehicle
231.18all contact information for the submission of complaints regarding the transportation
231.19services provided to that individual. All vehicles providing service under section
231.20473.386 shall display contact information for the Metropolitan Council. All other special
231.21transportation service vehicles shall display contact information for the commissioner of
231.22transportation.
231.23(g) Nonemergency medical transportation providers must comply with Minnesota
231.24Rules, part 8840.5450, except that a provider may use the phrase "nonemergency medical
231.25transportation" in its name or in advertisements or information describing the service.

231.26    Sec. 19. Minnesota Statutes 2014, section 174.30, subdivision 4a, is amended to read:
231.27    Subd. 4a. Certification of special transportation provider. (a) The commissioner
231.28may refuse to issue a certificate of compliance if an individual specified in subdivision 10,
231.29paragraph (a), clauses (1) to (3), is disqualified.
231.30(b) The commissioner shall annually evaluate or provide for the evaluation of each
231.31provider of special transportation service regulated under this section and certify that the
231.32provider is in compliance with the standards under this section.

231.33    Sec. 20. Minnesota Statutes 2014, section 174.30, subdivision 8, is amended to read:
232.1    Subd. 8. Administrative penalties; loss of certificate of compliance. (a) The
232.2commissioner may issue an order requiring violations of this section and the operating
232.3standards adopted under this section to be corrected and assessing monetary penalties
232.4of up to $1,000 for all violations identified during a single inspection, investigation,
232.5or audit. Section 221.036 applies to administrative penalty orders issued under this
232.6section or section 174.315. The commissioner shall suspend, without a hearing, a special
232.7transportation service provider's certificate of compliance for failure to pay, or make
232.8satisfactory arrangements to pay, an administrative penalty when due.
232.9(b) If the commissioner determines that an individual subject to background studies
232.10under subdivision 10, paragraph (a), is disqualified, the commissioner must issue a written
232.11notice ordering the special transportation service provider to immediately cease permitting
232.12the individual to perform services or functions listed in subdivision 10, paragraph (a). The
232.13written notice must include a warning that failure to comply with the order may result in
232.14the suspension or revocation of the provider's certificate of compliance under this section.
232.15(c) The commissioner may suspend or revoke a provider's certificate of compliance
232.16upon determining that, following receipt by a provider of written notice under paragraph
232.17(b), the individual has continued to perform services or functions listed in subdivision 10,
232.18paragraph (a), for the provider. A provider whose certificate is suspended or revoked may
232.19appeal the commissioner's action in a contested case proceeding under chapter 14.
232.20(d) Penalties collected under this section must be deposited in the state treasury
232.21and credited to the trunk highway fund.

232.22    Sec. 21. Minnesota Statutes 2015 Supplement, section 174.30, subdivision 10, is
232.23amended to read:
232.24    Subd. 10. Background studies. (a) Providers of special transportation service
232.25regulated under this section must initiate background studies in accordance with chapter
232.26245C on the following individuals:
232.27(1) each person with a direct or indirect ownership interest of five percent or higher
232.28in the transportation service provider;
232.29(2) each controlling individual as defined under section 245A.02, subdivision 5a;
232.30(3) managerial officials as defined in section 245A.02, subdivision 5a;
232.31(4) each driver employed by the transportation service provider;
232.32(5) each individual employed by the transportation service provider to assist a
232.33passenger during transport; and
232.34(6) all employees of the transportation service agency who provide administrative
232.35support, including those who:
233.1(i) may have face-to-face contact with or access to passengers, their personal
233.2property, or their private data;
233.3(ii) perform any scheduling or dispatching tasks; or
233.4(iii) perform any billing activities.
233.5(b) The transportation service provider must initiate the background studies required
233.6under paragraph (a) using the online NETStudy system operated by the commissioner
233.7of human services.
233.8(c) The transportation service provider shall not permit any individual to provide
233.9any service or function listed in paragraph (a) until the transportation service provider
233.10has received notification from the commissioner of human services indicating that the
233.11individual:
233.12(1) is not disqualified under chapter 245C; or
233.13(2) is disqualified, but has received a set-aside of that disqualification according to
233.14section sections 245C.22 and 245C.23 related to that transportation service provider.
233.15    (d) When a local or contracted agency is authorizing a ride under section 256B.0625,
233.16subdivision 17, by a volunteer driver, and the agency authorizing the ride has reason
233.17to believe the volunteer driver has a history that would disqualify the individual or
233.18that may pose a risk to the health or safety of passengers, the agency may initiate a
233.19background study to be completed according to chapter 245C using the commissioner
233.20of human services' online NETStudy system, or through contacting the Department of
233.21Human Services background study division for assistance. The agency that initiates the
233.22background study under this paragraph shall be responsible for providing the volunteer
233.23driver with the privacy notice required under section 245C.05, subdivision 2c, and
233.24payment for the background study required under section 245C.10, subdivision 11, before
233.25the background study is completed.

233.26    Sec. 22. Minnesota Statutes 2014, section 219.015, is amended to read:
233.27219.015 STATE RAIL SAFETY INSPECTOR INSPECTION PROGRAM.
233.28    Subdivision 1. Positions established; duties. (a) The commissioner of
233.29transportation shall establish three state rail safety inspector positions in the Office
233.30of Freight and Commercial Vehicle Operations of the Minnesota Department of
233.31Transportation. On or after July 1, 2015, and the commissioner may establish a fourth up
233.32to nine state rail safety inspector position positions following consultation with railroad
233.33companies. The commissioner shall apply to and enter into agreements with the Federal
233.34Railroad Administration (FRA) of the United States Department of Transportation
233.35to participate in the federal State Rail Safety Participation Program for training and
234.1certification of an inspector under authority of United States Code, title 49, sections 20103,
234.220105, 20106, and 20113, and Code of Federal Regulations, title 49, part 212.
234.3    (b) A state rail safety inspector shall may inspect mainline track, secondary
234.4track, and yard and industry track; inspect railroad right-of-way, including adjacent or
234.5intersecting drainage, culverts, bridges, overhead structures, and traffic and other public
234.6crossings; inspect yards and physical plants; inspect train equipment; review and enforce
234.7safety requirements; review maintenance and repair records; and review railroad security
234.8measures.
234.9(c) A state rail safety inspector may perform, but is not limited to, the duties
234.10described in the federal State Rail Safety Participation Program. An inspector may train,
234.11be certified, and participate in any of the federal State Rail Safety Participation Program
234.12disciplines, including: track, signal and train control, motive power and equipment,
234.13operating practices compliance, hazardous materials, and highway-rail grade crossings.
234.14    (d) To the extent delegated by the Federal Railroad Administration and authorized
234.15by the commissioner, an inspector may issue citations for violations of this chapter, or to
234.16ensure railroad employee and public safety and welfare.
234.17    Subd. 2. Railroad company assessment; account; appropriation. (a) As provided
234.18in this subdivision, the commissioner shall annually assess railroad companies that are
234.19(1) defined as common carriers under section 218.011; (2) classified by federal law
234.20or regulation as Class I Railroads, Class I Rail Carriers, Class II Railroads, or Class II
234.21Carriers; and (3) operating in this state.
234.22    (b) The assessment must be by a division of calculated to allocate state rail
234.23safety inspector inspection program costs in equal proportion between proportionally
234.24among carriers based on route miles operated in Minnesota, assessed in equal amounts
234.25for 365 days of the calendar year at the time of assessment. The commissioner shall
234.26assess include in the assessment calculation all program or additional position start-up
234.27or re-establishment costs,; all related costs of initiating the state rail safety inspector
234.28inspection program, including but not limited to inspection, administration, supervision,
234.29travel, equipment, and training; and costs of ongoing state rail inspector duties.
234.30    (c) The assessments collected under this subdivision must be deposited in a special
234.31account in the special revenue fund, to be known as the state rail safety inspection account,
234.32which is established in the special revenue fund. The account consists of funds as provided
234.33by this subdivision, and any other money donated, allotted, transferred, or otherwise
234.34provided to the account. Money in the account is appropriated to the commissioner for
234.35the establishment and ongoing responsibilities of the state rail safety inspector inspection
234.36program.
235.1    Subd. 3. Work site safety coaching program. The commissioner may exempt a
235.2common carrier not federally classified as Class I from violations for a period of up to
235.3two years if the common carrier applies for participation in a work site safety coaching
235.4program, such as the "MNSharp" program administered by the Minnesota Department of
235.5Labor and Industry, and the commissioner determines such participation to be preferred
235.6enforcement for safety or security violations.
235.7    Subd. 4. Appeal. Any person aggrieved by an assessment levied under this section
235.8may appeal within 90 days any assessment, violation, or administrative penalty to the
235.9Office of Administrative Hearings, with further appeal and review by the district court.
235.10    Subd. 5. Inspection program information. (a) The commissioner must maintain
235.11on the department's public Web site information on state rail safety inspection program
235.12activity under this section.
235.13(b) At a minimum, the Web site information must include:
235.14(1) summaries of defects and violations by (i) railroad company, (ii) shipper
235.15company, (iii) State Rail Safety Participation Program discipline, (iv) type of defect or
235.16violation, (v) level of severity, and (vi) geographic location such as city or region;
235.17(2) to the extent permitted by federal law, inspection reports or basic details
235.18regarding any identified critical or major defects, or critical or major violations;
235.19(3) a summary of any enforcement activity;
235.20(4) a review of corrective actions taken; and
235.21(5) a review of revenue sources for and summary of expenditures from the state rail
235.22safety inspection account.
235.23(c) In addition, the Web site information must include railroad bridge inspection
235.24reports provided to the commissioner under section 219.925, subdivision 5.
235.25EFFECTIVE DATE.This section is effective the day following final enactment.

235.26    Sec. 23. Minnesota Statutes 2014, section 219.1651, is amended to read:
235.27219.1651 GRADE CROSSING SAFETY ACCOUNT.
235.28A Minnesota grade crossing safety account is created in the special revenue fund,
235.29consisting of money credited to the account by law. The account consists of funds as
235.30provided by law, and any other money donated, allotted, transferred, or otherwise provided
235.31to the account. Money in the account is appropriated to the commissioner of transportation
235.32for rail-highway grade crossing safety projects on public streets and highways, including
235.33planning, engineering costs, and other costs associated with the administration and delivery
236.1of grade crossing safety projects. At the discretion of the commissioner of transportation,
236.2money in the account at the end of each biennium may cancel to the trunk highway fund.

236.3    Sec. 24. [219.925] INCIDENT EMERGENCY RESPONSE; PREPAREDNESS
236.4AND INFORMATION.
236.5    Subdivision 1. Definitions. (a) For purposes of this section, the following terms
236.6have the meanings given them.
236.7(b) "Emergency manager" means the director of a local organization for emergency
236.8management under section 12.25.
236.9(c) "Hazardous substance" has the meaning given in Code of Federal Regulations,
236.10title 49, section 171.8.
236.11(d) "Oil" has the meaning given in section 115E.01, subdivision 8.
236.12(e) "Rail carrier" means a railroad company that is (1) defined as a common carrier
236.13under section 218.011; (2) classified by federal law or regulation as Class I Railroad, Class
236.14I Rail Carrier, Class II Railroad, Class II Carrier, Class III Railroad, or Class III Carrier;
236.15and (3) operating in this state.
236.16    Subd. 2. Emergency response capability notification. (a) A rail carrier must
236.17provide an emergency response capability notification to each emergency manager and fire
236.18chief having jurisdiction along the routes over which oil and other hazardous substances
236.19are transported and to the commissioner of public safety. At a minimum, the notification
236.20must include geographic inventories of:
236.21(1) life-safety emergency response equipment and related major supplies, including
236.22details on fire-suppression equipment, equipment capacity, and supply amounts; and
236.23(2) response staff, including information on number and expertise areas of personnel
236.24responding from each geographic location.
236.25(b) Each inventory under paragraph (a), clauses (1) and (2), must specify storage
236.26or starting locations of equipment, supplies, and personnel, and must provide estimates
236.27of travel times to a sample of reasonable locations along the routes over which oil and
236.28other hazardous substances are transported.
236.29(c) A rail carrier must promptly provide an updated notification following any
236.30material change in the information under this subdivision.
236.31    Subd. 3. Route planning risk assessment. A rail carrier must provide a copy of
236.32the route planning and analysis, including risk assessment information, required under
236.33Code of Federal Regulations, title 49, section 172.820, or successor requirements, to each
236.34emergency manager and fire chief having jurisdiction along the routes over which oil and
236.35other hazardous substances are transported and to the commissioner of public safety.
237.1    Subd. 4. Hazardous materials response plans. A rail carrier must provide a copy of
237.2the carrier's hazardous materials emergency response plan to each emergency manager and
237.3fire chief having jurisdiction along the routes over which oil and other hazardous substances
237.4are transported for integration and coordination with local emergency operations planning.
237.5    Subd. 5. Bridge inspection reports. A rail carrier must provide a copy of bridge
237.6inspection reports on railroad bridges along the routes over which oil and other hazardous
237.7substances are transported to:
237.8(1) each emergency manager, for those bridges located within the emergency
237.9manager's jurisdiction;
237.10(2) each city or county engineer, for those bridges over a roadway under the
237.11engineer's jurisdiction; and
237.12(3) the commissioner of transportation, for all applicable bridges.
237.13    Subd. 6. Software program; comprehensive oil and other hazardous materials
237.14transportation tracking. (a) All rail carriers subject to this section shall collectively
237.15maintain a single software program that must be accessible both by a downloadable
237.16application and by means of the Internet. The program must provide comprehensive,
237.17accurate, and real-time information regarding transportation of oil and other hazardous
237.18substances.
237.19(b) At a minimum, the software program must:
237.20(1) contain data that is updated on a real-time basis, including, as practicable,
237.21updates due to rail car switching, assembly and disassembly, and storage operations;
237.22(2) contain information on all tanker railcars carrying oil and other hazardous
237.23substances in this state, which must include:
237.24(i) identification of the specific substance in each railcar; and
237.25(ii) reasonable estimates of the volume of the substance in each railcar;
237.26(3) be available to emergency first responders having jurisdiction along the routes
237.27over which oil and other hazardous substances are transported, and to employees in the
237.28Department of Public Safety designated by the commissioner of public safety; and
237.29(4) provide a user interface that is accessible by authorized individuals through a
237.30Web site.
237.31(c) The requirement under paragraph (b), clause (3), does not prevent access through
237.32software applications on wireless communications devices if it is made available for
237.33each operating system commonly in use.
237.34    Subd. 7. Data-sharing requirements. (a) A rail carrier must provide all data
237.35required under subdivisions 2 to 6 in its entirety, without abridgment.
238.1(b) A railroad is prohibited from, as a condition of providing any data required under
238.2this section, requiring an emergency manager or fire chief to enter into an agreement that
238.3restricts the ability of the emergency manager or fire chief to share the data with:
238.4(1) local emergency responders in the same jurisdiction; or
238.5(2) other emergency managers or fire chiefs, if information sharing is for emergency
238.6life-safety response planning and coordination purposes.
238.7    Subd. 8. Transported substances community notice. (a) As provided in this
238.8subdivision, each rail carrier must provide a community notice concerning all oil and other
238.9hazardous substance transportation within or through the state. The notice requirement
238.10under this subdivision does not apply to transportation of goods that are not oil or other
238.11hazardous substances. All rail carriers subject to this section must collectively maintain
238.12the community notices on a public Web site.
238.13(b) A notice under this subdivision must include:
238.14(1) the specific routes over which the oil or other hazardous substance is transported;
238.15(2) the transportation schedule, including the time, frequency, and volume of oil or
238.16other hazardous substance transported on a daily or other reasonable basis as authorized
238.17by the commissioner;
238.18(3) the number of tanker railcars transported;
238.19(4) a description of the material transported, including, as applicable, the gravity as
238.20measured by industry standards and the vapor pressure;
238.21(5) all applicable emergency response information required under Code of Federal
238.22Regulations, title 49, part 172, subpart G, or successor requirements; and
238.23(6) contact information, including name, title, telephone number, and address, of
238.24at least one qualified company employee who is responsible for serving as a point of
238.25contact for discharge response.
238.26(c) A railroad must provide a community notice prior to transporting oil and other
238.27hazardous substances, and must provide an updated notice prior to any material change in
238.28the information under paragraph (b).
238.29EFFECTIVE DATE.This section is effective July 1, 2016, except that subdivision
238.306 is effective July 1, 2017.

238.31    Sec. 25. Minnesota Statutes 2014, section 222.49, is amended to read:
238.32222.49 RAIL SERVICE IMPROVEMENT ACCOUNT; APPROPRIATION.
238.33    The rail service improvement account is created in the special revenue fund in
238.34the state treasury. The commissioner shall deposit in this account all consists of funds
239.1as provided by law, and any other money appropriated to or received by the department
239.2for the purpose of rail service improvement donated, allotted, transferred, or otherwise
239.3provided to the account, excluding bond proceeds as authorized by article XI, section 5,
239.4clause (i), of the Minnesota Constitution. All money so deposited is appropriated to the
239.5department for expenditure for rail service improvement in accordance with applicable
239.6state and federal law. This appropriation shall not lapse but shall be available until the
239.7purpose for which it was appropriated has been accomplished. No money appropriated to
239.8the department for the purposes of administering the rail service improvement program
239.9shall be deposited in the rail service improvement account nor shall such administrative
239.10costs be paid from the account.

239.11    Sec. 26. Minnesota Statutes 2014, section 222.50, subdivision 6, is amended to read:
239.12    Subd. 6. Grants. The commissioner may approve grants from the rail service
239.13improvement account for payment of up to 50 percent of the nonfederal share of the cost
239.14of any rail line project under the federal rail service continuation program freight rail
239.15service improvements that support economic development.

239.16    Sec. 27. Minnesota Statutes 2015 Supplement, section 222.50, subdivision 7, is
239.17amended to read:
239.18    Subd. 7. Expenditures. (a) The commissioner may expend money from the rail
239.19service improvement account for the following purposes:
239.20    (1) to make transfers as provided under section 222.57 or to pay interest adjustments
239.21on loans guaranteed under the state rail user and rail carrier loan guarantee program;
239.22    (2) to pay a portion of the costs of capital improvement projects designed to improve
239.23rail service of a rail user or a rail carrier;
239.24    (3) to pay a portion of the costs of rehabilitation projects designed to improve rail
239.25service of a rail user or a rail carrier;
239.26    (4) to acquire, maintain, manage, and dispose of railroad right-of-way pursuant to
239.27the state rail bank program;
239.28    (5) to provide for aerial photography survey of proposed and abandoned railroad
239.29tracks for the purpose of recording and reestablishing by analytical triangulation the
239.30existing alignment of the inplace track;
239.31    (6) to pay a portion of the costs of acquiring a rail line by a regional railroad
239.32authority established pursuant to chapter 398A;
239.33    (7) to pay the state matching portion of federal grants for rail-highway grade
239.34crossing improvement projects;
240.1    (8) for expenditures made before July 1, 2017, to pay the state matching portion
240.2of grants under the federal Transportation Investment Generating Economic Recovery
240.3(TIGER) program of the United States Department of Transportation to pay the state
240.4matching portion of federal grants for freight rail projects;
240.5    (9) to fund rail planning studies activities and other administrative and program
240.6expenses; and
240.7    (10) to pay a portion of the costs of capital improvement projects designed to
240.8improve capacity or safety at rail yards.
240.9    (b) All money derived by the commissioner from the disposition of railroad
240.10right-of-way or of any other property acquired pursuant to sections 222.46 to 222.62 shall
240.11be deposited in the rail service improvement account.

240.12    Sec. 28. Minnesota Statutes 2015 Supplement, section 256B.0625, subdivision 17,
240.13is amended to read:
240.14    Subd. 17. Transportation costs. (a) "Nonemergency medical transportation service"
240.15means motor vehicle transportation provided by a public or private person that serves
240.16Minnesota health care program beneficiaries who do not require emergency ambulance
240.17service, as defined in section 144E.001, subdivision 3, to obtain covered medical services.
240.18(b) Medical assistance covers medical transportation costs incurred solely for
240.19obtaining emergency medical care or transportation costs incurred by eligible persons in
240.20obtaining emergency or nonemergency medical care when paid directly to an ambulance
240.21company, common carrier, or other recognized providers of transportation services.
240.22Medical transportation must be provided by:
240.23(1) nonemergency medical transportation providers who meet the requirements
240.24of this subdivision;
240.25(2) ambulances, as defined in section 144E.001, subdivision 2;
240.26(3) taxicabs;
240.27(4) public transit, as defined in section 174.22, subdivision 7; or
240.28(5) not-for-hire vehicles, including volunteer drivers.
240.29(c) Medical assistance covers nonemergency medical transportation provided by
240.30nonemergency medical transportation providers enrolled in the Minnesota health care
240.31programs. All nonemergency medical transportation providers must comply with the
240.32operating standards for special transportation service as defined in sections 174.29 to
240.33174.30 and Minnesota Rules, chapter 8840, and in consultation with the Minnesota
240.34Department of Transportation. All nonemergency medical transportation providers shall
240.35bill for nonemergency medical transportation services in accordance with Minnesota
241.1health care programs criteria. Publicly operated transit systems, volunteers, and
241.2not-for-hire vehicles are exempt from the requirements outlined in this paragraph.
241.3(d) An organization may be terminated, denied, or suspended from enrollment if:
241.4(1) the provider has not initiated background studies on the individuals specified in
241.5section 174.30, subdivision 10, paragraph (a), clauses (1) to (3); or
241.6(2) the provider has initiated background studies on the individuals specified in
241.7section 174.30, subdivision 10, paragraph (a), clauses (1) to (3), and:
241.8(i) the commissioner has sent the provider a notice that the individual has been
241.9disqualified under section 245C.14; and
241.10(ii) the individual has not received a disqualification set-aside specific to the special
241.11transportation services provider under sections 245C.22 and 245C.23.
241.12(d) (e) The administrative agency of nonemergency medical transportation must:
241.13(1) adhere to the policies defined by the commissioner in consultation with the
241.14Nonemergency Medical Transportation Advisory Committee;
241.15(2) pay nonemergency medical transportation providers for services provided to
241.16Minnesota health care programs beneficiaries to obtain covered medical services;
241.17(3) provide data monthly to the commissioner on appeals, complaints, no-shows,
241.18canceled trips, and number of trips by mode; and
241.19(4) by July 1, 2016, in accordance with subdivision 18e, utilize a Web-based single
241.20administrative structure assessment tool that meets the technical requirements established
241.21by the commissioner, reconciles trip information with claims being submitted by
241.22providers, and ensures prompt payment for nonemergency medical transportation services.
241.23    (e) (f) Until the commissioner implements the single administrative structure and
241.24delivery system under subdivision 18e, clients shall obtain their level-of-service certificate
241.25from the commissioner or an entity approved by the commissioner that does not dispatch
241.26rides for clients using modes of transportation under paragraph (h) (i), clauses (4), (5),
241.27(6), and (7).
241.28    (f) (g) The commissioner may use an order by the recipient's attending physician or
241.29a medical or mental health professional to certify that the recipient requires nonemergency
241.30medical transportation services. Nonemergency medical transportation providers shall
241.31perform driver-assisted services for eligible individuals, when appropriate. Driver-assisted
241.32service includes passenger pickup at and return to the individual's residence or place of
241.33business, assistance with admittance of the individual to the medical facility, and assistance
241.34in passenger securement or in securing of wheelchairs or stretchers in the vehicle.
241.35Nonemergency medical transportation providers must take clients to the health care
241.36provider using the most direct route, and must not exceed 30 miles for a trip to a primary
242.1care provider or 60 miles for a trip to a specialty care provider, unless the client receives
242.2authorization from the local agency.
242.3Nonemergency medical transportation providers may not bill for separate base rates
242.4for the continuation of a trip beyond the original destination. Nonemergency medical
242.5transportation providers must maintain trip logs, which include pickup and drop-off times,
242.6signed by the medical provider or client, whichever is deemed most appropriate, attesting
242.7to mileage traveled to obtain covered medical services. Clients requesting client mileage
242.8reimbursement must sign the trip log attesting mileage traveled to obtain covered medical
242.9services.
242.10(g) (h) The administrative agency shall use the level of service process established
242.11by the commissioner in consultation with the Nonemergency Medical Transportation
242.12Advisory Committee to determine the client's most appropriate mode of transportation.
242.13If public transit or a certified transportation provider is not available to provide the
242.14appropriate service mode for the client, the client may receive a onetime service upgrade.
242.15(h) (i) The covered modes of transportation, which may not be implemented without
242.16a new rate structure, are:
242.17(1) client reimbursement, which includes client mileage reimbursement provided to
242.18clients who have their own transportation, or to family or an acquaintance who provides
242.19transportation to the client;
242.20(2) volunteer transport, which includes transportation by volunteers using their
242.21own vehicle;
242.22(3) unassisted transport, which includes transportation provided to a client by a
242.23taxicab or public transit. If a taxicab or public transit is not available, the client can receive
242.24transportation from another nonemergency medical transportation provider;
242.25(4) assisted transport, which includes transport provided to clients who require
242.26assistance by a nonemergency medical transportation provider;
242.27(5) lift-equipped/ramp transport, which includes transport provided to a client who
242.28is dependent on a device and requires a nonemergency medical transportation provider
242.29with a vehicle containing a lift or ramp;
242.30(6) protected transport, which includes transport provided to a client who has
242.31received a prescreening that has deemed other forms of transportation inappropriate and
242.32who requires a provider: (i) with a protected vehicle that is not an ambulance or police car
242.33and has safety locks, a video recorder, and a transparent thermoplastic partition between
242.34the passenger and the vehicle driver; and (ii) who is certified as a protected transport
242.35provider; and
243.1(7) stretcher transport, which includes transport for a client in a prone or supine
243.2position and requires a nonemergency medical transportation provider with a vehicle that
243.3can transport a client in a prone or supine position.
243.4(i) (j) The local agency shall be the single administrative agency and shall administer
243.5and reimburse for modes defined in paragraph (h) (i) according to paragraphs (l) (m) and
243.6(m) (n) when the commissioner has developed, made available, and funded the Web-based
243.7single administrative structure, assessment tool, and level of need assessment under
243.8subdivision 18e. The local agency's financial obligation is limited to funds provided by
243.9the state or federal government.
243.10(j) (k) The commissioner shall:
243.11(1) in consultation with the Nonemergency Medical Transportation Advisory
243.12Committee, verify that the mode and use of nonemergency medical transportation is
243.13appropriate;
243.14(2) verify that the client is going to an approved medical appointment; and
243.15(3) investigate all complaints and appeals.
243.16(k) (l) The administrative agency shall pay for the services provided in this
243.17subdivision and seek reimbursement from the commissioner, if appropriate. As vendors
243.18of medical care, local agencies are subject to the provisions in section 256B.041, the
243.19sanctions and monetary recovery actions in section 256B.064, and Minnesota Rules,
243.20parts 9505.2160 to 9505.2245.
243.21(l) (m) Payments for nonemergency medical transportation must be paid based
243.22on the client's assessed mode under paragraph (g) (h), not the type of vehicle used to
243.23provide the service. The medical assistance reimbursement rates for nonemergency
243.24medical transportation services that are payable by or on behalf of the commissioner for
243.25nonemergency medical transportation services are:
243.26(1) $0.22 per mile for client reimbursement;
243.27(2) up to 100 percent of the Internal Revenue Service business deduction rate for
243.28volunteer transport;
243.29(3) equivalent to the standard fare for unassisted transport when provided by public
243.30transit, and $11 for the base rate and $1.30 per mile when provided by a nonemergency
243.31medical transportation provider;
243.32(4) $13 for the base rate and $1.30 per mile for assisted transport;
243.33(5) $18 for the base rate and $1.55 per mile for lift-equipped/ramp transport;
243.34(6) $75 for the base rate and $2.40 per mile for protected transport; and
243.35(7) $60 for the base rate and $2.40 per mile for stretcher transport, and $9 per trip
243.36for an additional attendant if deemed medically necessary.
244.1(m) (n) The base rate for nonemergency medical transportation services in areas
244.2defined under RUCA to be super rural is equal to 111.3 percent of the respective base rate
244.3in paragraph (l) (m), clauses (1) to (7). The mileage rate for nonemergency medical
244.4transportation services in areas defined under RUCA to be rural or super rural areas is:
244.5(1) for a trip equal to 17 miles or less, equal to 125 percent of the respective mileage
244.6rate in paragraph (l) (m), clauses (1) to (7); and
244.7(2) for a trip between 18 and 50 miles, equal to 112.5 percent of the respective
244.8mileage rate in paragraph (l) (m), clauses (1) to (7).
244.9(n) (o) For purposes of reimbursement rates for nonemergency medical
244.10transportation services under paragraphs (l) (m) and (m) (n), the zip code of the recipient's
244.11place of residence shall determine whether the urban, rural, or super rural reimbursement
244.12rate applies.
244.13(o) (p) For purposes of this subdivision, "rural urban commuting area" or "RUCA"
244.14means a census-tract based classification system under which a geographical area is
244.15determined to be urban, rural, or super rural.

244.16    Sec. 29. Minnesota Statutes 2014, section 256B.15, subdivision 1a, is amended to read:
244.17    Subd. 1a. Estates subject to claims. (a) If a person receives any medical assistance
244.18hereunder, on the person's death, if single, or on the death of the survivor of a married
244.19couple, either or both of whom received medical assistance, or as otherwise provided
244.20for in this section, the total amount paid for medical assistance rendered for the person
244.21and spouse shall be filed as a claim against the estate of the person or the estate of the
244.22surviving spouse in the court having jurisdiction to probate the estate or to issue a decree
244.23of descent according to sections 525.31 to 525.313.
244.24(b) For the purposes of this section, the person's estate must consist of:
244.25(1) the person's probate estate;
244.26(2) all of the person's interests or proceeds of those interests in real property the
244.27person owned as a life tenant or as a joint tenant with a right of survivorship at the time of
244.28the person's death;
244.29(3) all of the person's interests or proceeds of those interests in securities the person
244.30owned in beneficiary form as provided under sections 524.6-301 to 524.6-311 at the time
244.31of the person's death, to the extent the interests or proceeds of those interests become part
244.32of the probate estate under section 524.6-307;
244.33(4) all of the person's interests in joint accounts, multiple-party accounts, and
244.34pay-on-death accounts, brokerage accounts, investment accounts, or the proceeds of
244.35those accounts, as provided under sections 524.6-201 to 524.6-214 at the time of the
245.1person's death to the extent the interests become part of the probate estate under section
245.2524.6-207 ; and
245.3(5) assets conveyed to a survivor, heir, or assign of the person through survivorship,
245.4living trust, transfer-on-death of title or deed, or other arrangements.
245.5(c) For the purpose of this section and recovery in a surviving spouse's estate for
245.6medical assistance paid for a predeceased spouse, the estate must consist of all of the legal
245.7title and interests the deceased individual's predeceased spouse had in jointly owned or
245.8marital property at the time of the spouse's death, as defined in subdivision 2b, and the
245.9proceeds of those interests, that passed to the deceased individual or another individual, a
245.10survivor, an heir, or an assign of the predeceased spouse through a joint tenancy, tenancy
245.11in common, survivorship, life estate, living trust, or other arrangement. A deceased
245.12recipient who, at death, owned the property jointly with the surviving spouse shall have
245.13an interest in the entire property.
245.14(d) For the purpose of recovery in a single person's estate or the estate of a survivor
245.15of a married couple, "other arrangement" includes any other means by which title to all or
245.16any part of the jointly owned or marital property or interest passed from the predeceased
245.17spouse to another including, but not limited to, transfers between spouses which are
245.18permitted, prohibited, or penalized for purposes of medical assistance.
245.19(e) A claim shall be filed if medical assistance was rendered for either or both
245.20persons under one of the following circumstances:
245.21(1) the person was over 55 years of age, and received services under this chapter;
245.22(2) the person resided in a medical institution for six months or longer, received
245.23services under this chapter, and, at the time of institutionalization or application for
245.24medical assistance, whichever is later, the person could not have reasonably been expected
245.25to be discharged and returned home, as certified in writing by the person's treating
245.26physician. For purposes of this section only, a "medical institution" means a skilled
245.27nursing facility, intermediate care facility, intermediate care facility for persons with
245.28developmental disabilities, nursing facility, or inpatient hospital; or
245.29(3) the person received general assistance medical care services under chapter 256D.
245.30(f) The claim shall be considered an expense of the last illness of the decedent for
245.31the purpose of section 524.3-805. Notwithstanding any law or rule to the contrary, a
245.32state or county agency with a claim under this section must be a creditor under section
245.33524.6-307 . Any statute of limitations that purports to limit any county agency or the state
245.34agency, or both, to recover for medical assistance granted hereunder shall not apply to any
245.35claim made hereunder for reimbursement for any medical assistance granted hereunder.
245.36Notice of the claim shall be given to all heirs and devisees of the decedent, and to other
246.1persons with an ownership interest in the real property owned by the decedent at the time
246.2of the decedent's death, whose identity can be ascertained with reasonable diligence. The
246.3notice must include procedures and instructions for making an application for a hardship
246.4waiver under subdivision 5; time frames for submitting an application and determination;
246.5and information regarding appeal rights and procedures. Counties are entitled to one-half
246.6of the nonfederal share of medical assistance collections from estates that are directly
246.7attributable to county effort. Counties are entitled to ten percent of the collections for
246.8alternative care directly attributable to county effort.

246.9    Sec. 30. Minnesota Statutes 2014, section 297B.01, subdivision 16, is amended to read:
246.10    Subd. 16. Sale, sells, selling, purchase, purchased, or acquired. (a) "Sale,"
246.11"sells," "selling," "purchase," "purchased," or "acquired" means any transfer of title of any
246.12motor vehicle, whether absolutely or conditionally, for a consideration in money or by
246.13exchange or barter for any purpose other than resale in the regular course of business.
246.14    (b) Any motor vehicle utilized by the owner only by leasing such vehicle to others
246.15or by holding it in an effort to so lease it, and which is put to no other use by the owner
246.16other than resale after such lease or effort to lease, shall be considered property purchased
246.17for resale.
246.18    (c) The terms also shall include any transfer of title or ownership of a motor vehicle
246.19by other means, for or without consideration, except that these terms shall not include:
246.20    (1) the acquisition of a motor vehicle by inheritance from or by bequest of, or
246.21transfer-on-death of title by, a decedent who owned it;
246.22    (2) the transfer of a motor vehicle which was previously licensed in the names of
246.23two or more joint tenants and subsequently transferred without monetary consideration to
246.24one or more of the joint tenants;
246.25    (3) the transfer of a motor vehicle by way of gift from a limited used vehicle dealer
246.26licensed under section 168.27, subdivision 4a, to an individual, when the transfer is with
246.27no monetary or other consideration or expectation of consideration and the parties to the
246.28transfer submit an affidavit to that effect at the time the title transfer is recorded;
246.29    (4) the transfer of a motor vehicle by gift between:
246.30(i) spouses;
246.31(ii) parents and a child; or
246.32(iii) grandparents and a grandchild;
246.33(5) the voluntary or involuntary transfer of a motor vehicle between a husband and
246.34wife in a divorce proceeding; or
247.1    (6) the transfer of a motor vehicle by way of a gift to an organization that is exempt
247.2from federal income taxation under section 501(c)(3) of the Internal Revenue Code when
247.3the motor vehicle will be used exclusively for religious, charitable, or educational purposes.

247.4    Sec. 31. Minnesota Statutes 2014, section 299A.41, subdivision 3, is amended to read:
247.5    Subd. 3. Killed in the line of duty. "Killed in the line of duty" does not include
247.6deaths from natural causes, except as provided in this subdivision. In the case of a peace
247.7public safety officer, "killed in the line of duty" includes the death of an a public safety
247.8officer caused by accidental means while the peace public safety officer is acting in the
247.9course and scope of duties as a peace public safety officer. Killed in the line of duty also
247.10means if a public safety officer dies as the direct and proximate result of a heart attack,
247.11stroke, or vascular rupture, that officer shall be presumed to have died as the direct and
247.12proximate result of a personal injury sustained in the line of duty if:
247.13(1) that officer, while on duty:
247.14(i) engaged in a situation, and that engagement involved nonroutine stressful or
247.15strenuous physical law enforcement, fire suppression, rescue, hazardous material response,
247.16emergency medical services, prison security, disaster relief, or other emergency response
247.17activity; or
247.18(ii) participated in a training exercise, and that participation involved nonroutine
247.19stressful or strenuous physical activity;
247.20(2) that officer died as a result of a heart attack, stroke, or vascular rupture suffered:
247.21(i) while engaging or participating under clause (1);
247.22(ii) while still on duty after engaging or participating under clause (1); or
247.23(iii) not later than 24 hours after engaging or participating under clause (1); and
247.24(3) the presumption is not overcome by competent medical evidence to the contrary.
247.25EFFECTIVE DATE.This section is effective the day following final enactment.

247.26    Sec. 32. Minnesota Statutes 2014, section 299A.41, subdivision 4, is amended to read:
247.27    Subd. 4. Public safety officer. "Public safety officer" includes:
247.28(1) a peace officer defined in section 626.84, subdivision 1, paragraph (c) or (d);
247.29(2) a correction officer employed at a correctional facility and charged with
247.30maintaining the safety, security, discipline, and custody of inmates at the facility;
247.31(3) an individual employed on a full-time basis by the state or by a fire department of
247.32a governmental subdivision of the state, who is engaged in any of the following duties:
247.33(i) firefighting;
247.34(ii) emergency motor vehicle operation;
248.1(iii) investigation into the cause and origin of fires;
248.2(iv) the provision of emergency medical services; or
248.3(v) hazardous material responder;
248.4(4) a legally enrolled member of a volunteer fire department or member of an
248.5independent nonprofit firefighting corporation who is engaged in the hazards of firefighting;
248.6(5) a good samaritan while complying with the request or direction of a public
248.7safety officer to assist the officer;
248.8(6) a reserve police officer or a reserve deputy sheriff while acting under the
248.9supervision and authority of a political subdivision;
248.10(7) a driver or attendant with a licensed basic or advanced life-support transportation
248.11service who is engaged in providing emergency care;
248.12(8) a first responder who is certified by the emergency medical services regulatory
248.13board to perform basic emergency skills before the arrival of a licensed ambulance service
248.14and who is a member of an organized service recognized by a local political subdivision
248.15to respond to medical emergencies to provide initial medical care before the arrival of
248.16an ambulance; and
248.17(9) a person, other than a state trooper, employed by the commissioner of public
248.18safety and assigned to the State Patrol, whose primary employment duty is either Capitol
248.19security or the enforcement of commercial motor vehicle laws and regulations.
248.20EFFECTIVE DATE.This section is effective the day following final enactment.

248.21    Sec. 33. Minnesota Statutes 2014, section 299A.55, is amended to read:
248.22299A.55 RAILROAD AND PIPELINE SAFETY INCIDENT
248.23PREPAREDNESS; OIL AND OTHER HAZARDOUS MATERIALS SUBSTANCES.
248.24    Subdivision 1. Definitions. (a) For purposes of this section, the following terms
248.25have the meanings given them.
248.26(b) "Applicable rail carrier" means a railroad company that is subject to an
248.27assessment under section 219.015, subdivision 2.
248.28(c) "Hazardous substance" has the meaning given in section 115B.02, subdivision 8
248.29Code of Federal Regulations, title 49, section 171.8.
248.30(d) "Oil" has the meaning given in section 115E.01, subdivision 8.
248.31(e) "Pipeline company" means any individual, partnership, association, or public
248.32or private corporation who owns and operates pipeline facilities and is required to show
248.33specific preparedness under section 115E.03, subdivision 2.
249.1    Subd. 2. Railroad and pipeline safety incident account. (a) A railroad and
249.2pipeline safety incident account is created in the special revenue fund. The account
249.3consists of funds collected under subdivision 4 and funds donated, allotted, transferred, or
249.4otherwise provided to the account.
249.5    (b) $104,000 is annually $345,000 in fiscal year 2017, and $250,000 annually
249.6beginning in fiscal year 2018 are appropriated from the railroad and pipeline safety
249.7incident account to the commissioner of the Pollution Control Agency for environmental
249.8protection activities related to railroad discharge preparedness under chapter 115E.
249.9(c) Following the appropriation in paragraph (b), the remaining money in the
249.10account is annually appropriated to the commissioner of public safety for the purposes
249.11specified in subdivision 3.
249.12    Subd. 3. Allocation of funds. (a) Subject to funding appropriated for this
249.13subdivision, the commissioner shall provide funds for training and response preparedness
249.14related to (1) derailments, discharge incidents, or spills involving trains carrying oil or
249.15other hazardous substances, and (2) pipeline discharge incidents or spills involving oil
249.16or other hazardous substances.
249.17(b) The commissioner shall allocate available funds as follows:
249.18(1) $100,000 annually for emergency response teams; and
249.19(2) the remaining amount to the Board of Firefighter Training and Education under
249.20section 299N.02 and the Division of Homeland Security and Emergency Management.
249.21(c) Prior to making allocations under paragraph (b), the commissioner shall consult
249.22with the Fire Service Advisory Committee under section 299F.012, subdivision 2.
249.23(d) The commissioner and the entities identified in paragraph (b), clause (2), shall
249.24prioritize uses of funds based on:
249.25(1) firefighter training needs;
249.26(2) community risk from discharge incidents or spills;
249.27(3) geographic balance; and
249.28(4) risks to the general public; and
249.29(5) recommendations of the Fire Service Advisory Committee.
249.30(e) The following are permissible uses of funds provided under this subdivision:
249.31(1) training costs, which may include, but are not limited to, training curriculum,
249.32trainers, trainee overtime salary, other personnel overtime salary, and tuition;
249.33(2) costs of gear and equipment related to hazardous materials readiness, response,
249.34and management, which may include, but are not limited to, original purchase,
249.35maintenance, and replacement;
249.36(3) supplies related to the uses under clauses (1) and (2); and
250.1(4) emergency preparedness planning and coordination.;
250.2(5) life-safety emergency response exercises, including coordinated or comprehensive
250.3exercises in conjunction with the requirements under section 115E.042, subdivision 5; and
250.4(6) public education and outreach, including but not limited to: (i) informing and
250.5engaging the public regarding hazards of derailments and discharge incidents; (ii) assisting
250.6in development of evacuation readiness; (iii) undertaking public information campaigns;
250.7and (iv) providing accurate information to the media on likelihood and consequences of
250.8derailments and discharge incidents.
250.9(f) Notwithstanding paragraph (b), clause (2), from funds in the railroad and pipeline
250.10safety incident account provided for the purposes under this subdivision, the commissioner
250.11may retain a balance in the account for budgeting in subsequent fiscal years.
250.12    Subd. 4. Assessments. (a) The commissioner of public safety shall annually assess
250.13$2,500,000 to railroad and pipeline companies based on the formula specified in paragraph
250.14(b). The commissioner shall deposit funds collected under this subdivision in the railroad
250.15and pipeline safety incident account under subdivision 2.
250.16(b) The assessment for each railroad is 50 percent of the total annual assessment
250.17amount, divided in equal proportion between applicable rail carriers based on route miles
250.18operated in Minnesota. The assessment for each pipeline company is 50 percent of the
250.19total annual assessment amount, divided in equal proportion between companies based
250.20on the yearly aggregate gallons of oil and hazardous substance transported by pipeline
250.21in Minnesota.
250.22(c) The assessments under this subdivision expire July 1, 2017.

250.23    Sec. 34. Minnesota Statutes 2014, section 299D.03, subdivision 5, is amended to read:
250.24    Subd. 5. Traffic fines and forfeited bail money. (a) All fines and forfeited bail
250.25money collected from persons apprehended or arrested by officers of the State Patrol
250.26shall be transmitted by the person or officer collecting the fines, forfeited bail money,
250.27or installments thereof, on or before the tenth day after the last day of the month in
250.28which these moneys were collected, to the commissioner of management and budget.
250.29Except where a different disposition is required in this subdivision or section 387.213, or
250.30otherwise provided by law, three-eighths of these receipts must be deposited in the state
250.31treasury and credited to the state general fund. The other five-eighths of these receipts
250.32must be deposited in the state treasury and credited as follows: (1) the first $1,000,000
250.33$2,500,000 in each fiscal year must be credited to the Minnesota grade crossing safety
250.34account in the special revenue fund, and (2) remaining receipts must be credited to the state
250.35trunk highway fund. If, however, the violation occurs within a municipality and the city
251.1attorney prosecutes the offense, and a plea of not guilty is entered, one-third of the receipts
251.2shall be deposited in the state treasury and credited to the state general fund, one-third of
251.3the receipts shall be paid to the municipality prosecuting the offense, and one-third shall be
251.4deposited in the state treasury and credited to the Minnesota grade crossing safety account
251.5or the state trunk highway fund as provided in this paragraph. When section 387.213 also
251.6is applicable to the fine, section 387.213 shall be applied before this paragraph is applied.
251.7All costs of participation in a nationwide police communication system chargeable to the
251.8state of Minnesota shall be paid from appropriations for that purpose.
251.9(b) All fines and forfeited bail money from violations of statutes governing the
251.10maximum weight of motor vehicles, collected from persons apprehended or arrested by
251.11employees of the state of Minnesota, by means of stationary or portable scales operated
251.12by these employees, shall be transmitted by the person or officer collecting the fines or
251.13forfeited bail money, on or before the tenth day after the last day of the month in which the
251.14collections were made, to the commissioner of management and budget. Five-eighths of
251.15these receipts shall be deposited in the state treasury and credited to the state highway
251.16user tax distribution fund. Three-eighths of these receipts shall be deposited in the state
251.17treasury and credited to the state general fund.

251.18    Sec. 35. Minnesota Statutes 2014, section 353.01, subdivision 43, is amended to read:
251.19    Subd. 43. Line of duty death. "Line of duty death" means:
251.20    (1) a death that occurs while performing or as a direct result of performing normal or
251.21less frequent duties which are specific to protecting the property and personal safety of
251.22others and that present inherent dangers that are specific to the positions covered by the
251.23public employees police and fire plan.; or
251.24    (2) a death determined by the commissioner of public safety that meets the
251.25requirements of sections 299A.41 to 299A.46.
251.26EFFECTIVE DATE.This section is effective the day following final enactment.

251.27    Sec. 36. Minnesota Statutes 2014, section 360.013, is amended by adding a subdivision
251.28to read:
251.29    Subd. 47a. Drones. "Drone" means a powered aircraft that is operated without the
251.30possibility of direct human intervention from within or on the aircraft.
251.31EFFECTIVE DATE.This section is effective January 1, 2017.

251.32    Sec. 37. Minnesota Statutes 2014, section 360.075, subdivision 1, is amended to read:
252.1    Subdivision 1. Misdemeanor. Every person who:
252.2(1) operates an aircraft either on or over land or water in this state without the
252.3consent of the owner of such aircraft;
252.4(2) operates aircraft while in the possession of any federal license, certificate, or
252.5permit or any certificate of registration issued by the Transportation department of this
252.6state, or displays, or causes or permits to be displayed, such federal license, certificate,
252.7or permit or such state certificate of registration, knowing either to have been canceled,
252.8revoked, suspended, or altered;
252.9(3) lends to, or knowingly permits the use of by, one not entitled thereto of any
252.10federal airman's or aircraft license, certificate, or permit, or any state airman's or aircraft
252.11certificate of registration issued to that person;
252.12(4) displays or represents as the person's own any federal airman's or aircraft license,
252.13certificate, or permit or any state airman's or aircraft certificate of registration not issued
252.14to that person;
252.15(5) tampers with, climbs upon or into, makes use of, or navigates any aircraft without
252.16the knowledge or consent of the owner or person having control thereof, whether while the
252.17same is in motion or at rest, or hurls stones or any other missiles at aircraft, or the occupants
252.18thereof, or otherwise damages or interferes with the same, or places upon any portion of any
252.19airport any object, obstruction, or other device tending to injure aircraft or parts thereof;
252.20(6) uses a false or fictitious name, gives a false or fictitious address, knowingly
252.21makes any false statement or report, or knowingly conceals a material fact, or otherwise
252.22commits a fraud in any application or form required under the provisions of sections
252.23360.011 to 360.076, or by any rules or orders of the commissioner;
252.24(7) operates any aircraft in such a manner so as to indicate either a reckless willful or
252.25a wanton disregard for the safety of persons or property;
252.26(8) carries on or over land or water in this state in an aircraft other than a public
252.27aircraft any explosive substance except as permitted by the Federal Explosives Act, being
252.28the Act of October 6, 1917, as amended by Public Law 775, 77th Congress, approved
252.29November 24, 1942 United States Code, title 18, chapter 40; Code of Federal Regulations,
252.30title 27, part 555; and successor laws and regulations;
252.31(9) discharges a gun, pistol, or other weapon in or from any aircraft in this state
252.32except as the hunting of certain wild animals from aircraft may be permitted by other laws
252.33of this state, or unless the person is the pilot or officer in command of the aircraft or a
252.34peace officer or a member of the military or naval forces of the United States, engaged in
252.35the performance of duty;
253.1(10) carries in any aircraft, other than a public aircraft, any shotgun, rifle, pistol, or
253.2small arms ammunition except in the manner in which such articles may be lawfully carried
253.3in motor vehicles in this state, or is a person excepted from the provisions of clause (9);
253.4(11) engages in acrobatic or stunt flying without being equipped with a parachute
253.5and without providing any other occupants of the aircraft with parachutes and requiring
253.6that they be worn;
253.7(12) while in flying over a thickly inhabited area or over a public gathering in this
253.8state, engages in trick or acrobatic flying or in any acrobatic feat;
253.9(13) except while in landing or taking off, flies at such low levels as to endanger
253.10persons on the surface beneath, or engages in advertising through the playing of music
253.11or transcribed or oral announcements, or makes any noise with any siren, horn, whistle,
253.12or other audible device which is not necessary for the normal operation of the aircraft,
253.13except that sound amplifying devices may be used in aircraft when operated by or under
253.14the authority of any agency of the state or federal government for the purpose of giving
253.15warning or instructions to persons on the ground;
253.16(14) drops any object, except loose water, loose fuel, or loose sand ballast, without
253.17the prior written consent of the commissioner of transportation and the prior written
253.18consent of the municipality or property owner where objects may land; drops objects
253.19from an aircraft that endanger person or property on the ground, or drops leaflets for any
253.20purpose whatsoever; or
253.21(15) while in flight in an aircraft, whether as a pilot, passenger, or otherwise,
253.22endangers, kills, or attempts to kill any birds or animals or uses any aircraft for the purpose
253.23of concentrating, driving, rallying, or stirring up migratory waterfowl;
253.24(16) uses a drone with intent to damage, disrupt, or otherwise interfere with an
253.25aircraft that is in motion on the ground or in the air; or
253.26(17) knowingly operates a drone within an emergency zone established by a law
253.27enforcement agency, fire department, or emergency medical service provider, or within
253.28one mile of a helicopter being operated by one of these entities;
253.29except as may be permitted by other laws of this state, shall be guilty of a misdemeanor.
253.30Notwithstanding section 609.035 or 609.04, a prosecution for or conviction of violating
253.31clause (16) is not a bar to conviction of or punishment for any other crime.
253.32EFFECTIVE DATE.This section is effective January 1, 2017, and applies to
253.33crimes committed on and after that date.

253.34    Sec. 38. Minnesota Statutes 2014, section 360.075, subdivision 2, is amended to read:
254.1    Subd. 2. Gross misdemeanor. Every A person who shall commit any of the acts
254.2specified in commits a violation of subdivision 1 for a second or other subsequent time
254.3shall be after having previously been convicted of violating subdivision 1 is guilty of a
254.4gross misdemeanor.
254.5EFFECTIVE DATE.This section is effective January 1, 2017, and applies to
254.6crimes committed on and after that date.

254.7    Sec. 39. Minnesota Statutes 2014, section 360.55, is amended by adding a subdivision
254.8to read:
254.9    Subd. 9. Drones. A drone that weighs up to a maximum of 55 pounds may be
254.10subject to fees under section 360.679, and is exempt from taxes and fees under sections
254.11360.511 to 360.67.
254.12EFFECTIVE DATE.This section is effective January 1, 2017.

254.13    Sec. 40. [360.679] DRONE; COMMERCIAL USE PERMIT.
254.14    Subdivision 1. Requirements for commercial use permit. The commissioner
254.15shall issue a commercial use permit to an owner of a drone weighing up to a maximum
254.16of 55 pounds, when the owner:
254.17(1) utilizes the drone for any purpose other than hobby or recreational use;
254.18(2) provides proof of payment of sales tax on the purchase of the drone;
254.19(3) identifies each individual who will operate the drone and certifies to the
254.20commissioner that each operator meets the qualifications under subdivision 3;
254.21(4) provides proof of insurance that complies with the requirements of and limits in
254.22section 360.59, subdivision 10;
254.23(5) pays an annual permit fee of $25; and
254.24(6) provides additional information the commissioner deems to be necessary or
254.25desirable.
254.26    Subd. 2. Deposit of fee. The proceeds of the fee required under subdivision 1
254.27must be collected by the commissioner, paid into the state treasury, and credited to the
254.28state airports fund.
254.29    Subd. 3. Qualifications for drone operators. The commissioner shall develop and
254.30administer a written knowledge test for drone operators that complies with all applicable
254.31state and federal regulations. To be eligible to take the knowledge test, a person must:
254.32(1) be at least 17 years of age;
255.1(2) possess a valid driver's license issued by this state, another state or territory of
255.2the United States, or the District of Columbia; and
255.3(3) satisfy all other applicable state or federal requirements.
255.4A drone operator must pass the test and meet all qualifications under this subdivision in
255.5this state or in a state with comparable requirements.
255.6    Subd. 4. Commercial use permit process. The commissioner shall implement a
255.7permit application process, including a requirement that the department provide notice to an
255.8applicant of the department's permit issuance decision no later than ten days from the date
255.9the department receives the application. The commissioner shall offer technical guidance
255.10for permit applicants and permit holders to enable compliance with program requirements.
255.11    Subd. 5. Unlawful operations. A person who owns or operates a drone in violation
255.12of this section is guilty of a misdemeanor.
255.13EFFECTIVE DATE.This section is effective January 1, 2017, and applies to
255.14crimes committed on and after that date.

255.15    Sec. 41. Laws 1994, chapter 643, section 15, subdivision 8, is amended to read:
255.16    Subd. 8.Trunk Highway Facility Projects 13,016,000
255.17To the commissioner of transportation for the
255.18purposes specified in this subdivision. The
255.19appropriations in this subdivision are from
255.20the trunk highway fund.
255.21(a) Installation of automatic fire sprinkler systems at maintenance headquarters in
255.22Virginia, Owatonna, and Windom 365,000
255.23(b) Repair, replace, or construct chemical and salt storage buildings at 36 department
255.24of transportation locations statewide 1,030,000
255.25(c) Construct, furnish, and equip a truck enforcement site and weigh scale in the
255.26Albert Lea area to replace the Lakeville site 886,000
255.27(d) Construct, furnish, and equip a truck station and maintenance facility in
255.28Hutchinson on a new site to replace the current facility 897,000
255.29(e) Construct, furnish, and equip a new truck station on Maryland Avenue in St. Paul
255.30to replace the current facility 5,440,000
255.31(f) Construct an addition to the Detroit Lakes welding shop 355,000
255.32(g) Remodel facilities and construct additions to truck stations in Ely, Montgomery,
255.33and Forest Lake 302,000
256.1(h) Purchase, remodel, and expand the Minnesota National Guard truck maintenance
256.2facility in Tracy to fit the needs of a department of transportation truck station 359,000
256.3(i) Build an unheated equipment storage building at the Golden Valley headquarters
256.4site 435,000
256.5(j) Construct, furnish, and equip a truck station in Wadena on a new site to replace
256.6the current facility 527,000
256.7(k) Remodel facility and construct an addition to the Preston truck station 174,000
256.8(l) Construct, furnish, and equip class II safety rest areas in Darwin Winter park,
256.9Preston/Fountain vicinity, Pioneer monument, Camp Release historic monument, and
256.10Lake Shetek 200,000
256.11(m) Land acquisition for new replacement truck station sites at Illgen City, Rushford,
256.12Gaylord, Madelia, Sherburne, and Litchfield 250,000
256.13(n) Design fees to complete construction drawings for projects at Windom,
256.14Maplewood, Hastings, central services building, Arden Hills training center, and Albert
256.15Lea weigh scale 371,000
256.16(o) Construct pole type storage buildings at department of transportation locations
256.17throughout the state 611,000
256.18(p) Remove asbestos from various department of transportation buildings statewide
256.19150,000
256.20(q) Remodel facility and construct an addition to the Carlton truck station 259,000
256.21(r) Remodel facility and construct an addition to the Sauk Centre truck station 255,000
256.22(s) Remodel the old Burlington Northern train depot in Floodwood into a safety
256.23information center and rest area and phase out the wayside rest at Trunk Highways 2
256.24and 73 150,000
256.25After completion of the project, the
256.26commissioner of transportation shall
256.27convey the newly remodeled rest area for
256.28no or nominal consideration to the city of
256.29Floodwood, which thereafter shall operate
256.30and maintain it.
256.31(t) The commissioner may use the balance
256.32of funds appropriated by Laws 1985,
256.33first special session chapter 15, section
256.349, subdivision 6, paragraph (c), for land
256.35acquisition for a weigh station on interstate
256.36highway 94 at Moorhead to supplement funds
257.1appropriated by Laws of 1989, chapter 269,
257.2section 2, subdivision 11, paragraph (d), for
257.3construction of the Moorhead weigh station.

257.4    Sec. 42. Laws 2014, chapter 312, article 11, section 10, the effective date, is amended
257.5to read:
257.6EFFECTIVE DATE.This section is effective November 30, 2016 2018, and
257.7applies to permits issued on and after that date.

257.8    Sec. 43. Laws 2014, chapter 312, article 11, section 11, the effective date, is amended
257.9to read:
257.10EFFECTIVE DATE.This section is effective November 30, 2016 2018, and
257.11applies to permits issued on and after that date.

257.12    Sec. 44. Laws 2014, chapter 312, article 11, section 13, the effective date, is amended
257.13to read:
257.14EFFECTIVE DATE.This section is effective November 30, 2016 2018, and
257.15applies to permits issued on and after that date.

257.16    Sec. 45. Laws 2014, chapter 312, article 11, section 16, the effective date, is amended
257.17to read:
257.18EFFECTIVE DATE.This section is effective November 30, 2016 2018, and
257.19applies to permits issued on and after that date.

257.20    Sec. 46. Laws 2014, chapter 312, article 11, section 18, the effective date, is amended
257.21to read:
257.22EFFECTIVE DATE.This section is effective November 30, 2016 2018, and
257.23applies to permits issued on and after that date.

257.24    Sec. 47. MINNESOTA LICENSE AND REGISTRATION SYSTEM
257.25OPERATING COSTS; REPORT.
257.26Before January 1, 2019, the commissioners of public safety and MN.IT services
257.27must submit a report documenting the costs of operating the new Minnesota License and
257.28Registration System, including any recommendations for ongoing funding, to the chairs
258.1and ranking members of the committees in the house of representatives and the senate
258.2having jurisdiction over transportation and public safety policy and finance.

258.3    Sec. 48. TRANSPORTATION PROJECT SELECTION PROCESS.
258.4    Subdivision 1. Adoption of best practices. (a) The commissioner of transportation,
258.5after consultation with the Federal Highway Administration, metropolitan planning
258.6organizations, regional development commissions, area transportation partnerships,
258.7local governments, the Metropolitan Council, and transportation stakeholders, shall
258.8develop, adopt, and implement best practices for project evaluation and selection to apply
258.9to the standard process and to special programs, such as corridors of commerce. The
258.10commissioner must adopt and begin implementing the best practices no later than October
258.112017 and may update the best practices as appropriate. The commissioner shall publicize
258.12the best practices and updates on the department's Web site and through other effective
258.13means selected by the commissioner.
258.14(b) The best practices adopted under this section must include:
258.15(1) a description of each selection process and identification of ranking criteria and
258.16weight of each criterion with respect to any selection process;
258.17(2) identification and application of all relevant criteria contained in enacted
258.18Minnesota or federal law, or added by the commissioner;
258.19(3) identification to the stakeholders and general public of each candidate project
258.20selected under each selection process, including identification of all the projects
258.21considered that are not selected;
258.22(4) involvement in the process of scoring and ranking candidate projects of area
258.23transportation partnerships and other local authorities as appropriate for the projects under
258.24consideration; and
258.25(5) means of publicizing scoring, ranking, and decision outcomes concerning each
258.26candidate project, including the projects that were considered and were not selected.
258.27    Subd. 2. Report to legislature. By March 1, 2017, the commissioner shall report
258.28to the chairs and ranking minority members of the senate and house of representatives
258.29committees having jurisdiction over transportation policy and finance concerning the
258.30adopted best practices and how these best practices are anticipated to improve the
258.31consistency, objectivity, and transparency of the selection process. The report must
258.32include information on input from members of the public and the organizations identified
258.33in subdivision 1.
258.34EFFECTIVE DATE.This section is effective the day following final enactment.

259.1    Sec. 49. ESTABLISHMENT OF AUTONOMOUS VEHICLES TASK FORCE.
259.2    Subdivision 1. Purpose. The autonomous vehicles task force is established to
259.3design a demonstration project, analyze policy and recommended legislation, and report
259.4to the legislature concerning issues related to the use by people with disabilities of
259.5autonomous vehicles on public roads and highways.
259.6    Subd. 2. Definition of autonomous vehicle. For the purposes of this section,
259.7"autonomous vehicle" is a vehicle equipped with technology that has the capability to
259.8drive a vehicle without the active control or monitoring of a human operator. Autonomous
259.9vehicle excludes a motor vehicle enabled with active safety systems or driver assistance
259.10systems, including, without limitation, a system to provide electronic blind spot assistance,
259.11crash avoidance, emergency braking, parking assistance, adaptive cruise control, lane keep
259.12assistance, lane departure warning, or traffic jam and queuing assistant, unless the system
259.13alone or in combination with other systems enables the vehicle to drive without the active
259.14control or monitoring by a human operator.
259.15    Subd. 3. Task force membership. (a) The autonomous vehicles task force consists
259.16of 21 members, all of whom are voting members and who must be appointed by July
259.1731, 2016, as follows:
259.18(1) two senators, including one senator appointed by the senate majority leader and
259.19one senator appointed by the senate minority leader;
259.20(2) two members of the house of representatives, including one member appointed
259.21by the speaker of the house of representatives and one member appointed by the minority
259.22leader;
259.23(3) the commissioner of public safety or a designee;
259.24(4) the commissioner of transportation or a designee;
259.25(5) the commissioner of commerce or a designee;
259.26(6) one member appointed by the Minnesota State Council on Disability;
259.27(7) one member with experience in greater Minnesota paratransit administration
259.28appointed by the commissioner of transportation;
259.29(8) one member with experience in metropolitan-area paratransit administration
259.30appointed by the Metropolitan Council;
259.31(9) three members who are not public officials, and at least one of whom represents
259.32the disability community, appointed by the senate majority leader;
259.33(10) three members who are not public officials, and at least one of whom represents
259.34the disability community, appointed by the speaker of the house of representatives;
259.35(11) three members who are not public officials, and at least one of whom represents
259.36the disability community, appointed by the governor;
260.1(12) one member with expertise in autonomous vehicle technology, appointed by
260.2the commissioner of transportation; and
260.3(13) one member representing the Alliance of Automobile Manufacturers, appointed
260.4by the commissioner of commerce.
260.5(b) The appointing authorities for the members appointed under clauses (9), (10),
260.6and (11), shall to the extent practicable make their appointments to reflect geographic
260.7balance across the state. The governor must select one of the appointees under paragraph
260.8(a), clause (11), to serve as chair of the task force.
260.9    Subd. 4. First meeting; chair. The member who is appointed to serve as the chair
260.10shall convene the first meeting of the task force by October 15, 2016. The task force may
260.11elect from among its members a cochair and any other officers the task force determines
260.12are necessary or convenient.
260.13    Subd. 5. Duties. The task force shall examine and report to the legislature
260.14concerning ways in which autonomous vehicles can best be equipped and utilized to
260.15provide mobility service for people with disabilities. To further this goal, the task force
260.16shall design a demonstration project.
260.17    Subd. 6. Authorization. The task force may solicit gifts, grants, or donations
260.18of any kind from any private or public source to carry out the purposes of this act. All
260.19gifts, grants, or donations received by the task force must be deposited in an autonomous
260.20vehicle project account established in the special revenue fund. Money in the account is
260.21appropriated to the commissioner of transportation for the activities of the task force and
260.22implementation of the demonstration project.
260.23    Subd. 7. Compensation. Public members of the task force shall receive no
260.24compensation or per diem payments for participating on the task force.
260.25    Subd. 8. Administrative support. The commissioner of transportation must
260.26provide meeting space, administrative support, and staff support for the task force. The
260.27task force may hold meetings in any publicly accessible location in the state.
260.28    Subd. 9. Open Meeting Law. Meetings of the task force are subject to Minnesota
260.29Statutes, chapter 13D.
260.30    Subd. 10. Reports. The task force shall report its findings and recommendations to
260.31the chairs and ranking minority members of the committees in the house of representatives
260.32and the senate with jurisdiction over transportation policy and finance. By January 31,
260.332017, the task force shall report its findings and recommendations for implementing
260.34the technology demonstration project to the chairs and ranking minority members of
260.35the committees in the house of representatives and the senate with jurisdiction over
260.36transportation policy and finance. By December 31, 2018, the task force shall report
261.1findings concerning recommended legislation, administrative rules, and policies to
261.2utilize autonomous vehicles in the provision of equitable, safe, and cost-effective
261.3transportation solutions to people with disabilities both in the metropolitan area and
261.4greater Minnesota. The report must analyze benefits, costs, business models, liability
261.5issues, legal implications, and safety issues.
261.6    Subd. 11. Sunset. This section expires June 30, 2019.
261.7EFFECTIVE DATE.This section is effective the day following final enactment.

261.8    Sec. 50. TRANSITWAY DEVELOPMENT OUTREACH PILOT GRANT
261.9PROGRAM.
261.10    Subdivision 1. Grant program. The Metropolitan Council shall fund a grant to
261.11the city of St. Paul to conduct a transitway development outreach pilot program, under
261.12which the city shall award grants to entities selected through a competitive process
261.13to conduct outreach, education, and engagement activities. These activities must be
261.14directed to minority communities, relating to the status and future development of
261.15transitways, including, but not limited to, Rush Line corridor, Red Rock corridor, and
261.16Gateway Corridor Gold Line. The program must focus on minorities and new American
261.17communities, especially Karen, Somali, Hispanic, and Hmong, whose members live,
261.18work, or own businesses in the areas to be served by transitway development. A portion
261.19of the grant proceeds must be used for ethnic radio programs and dissemination of
261.20information by credible liaisons in the oral-culture communities.
261.21    Subd. 2. Report. By September 1, 2017, the Metropolitan Council shall report to the
261.22chairs and ranking minority members of the senate and house of representatives committees
261.23and divisions with jurisdiction over transportation policy and budget concerning the use of
261.24this appropriation, the nature of activities funded, and results achieved.

261.25    Sec. 51. REVISOR'S INSTRUCTION.
261.26The revisor of statutes shall recodify Minnesota Statutes, section 115E.042,
261.27subdivision 2, as Minnesota Statutes, section 219.925, subdivision 9, and Minnesota
261.28Statutes, section 115E.042, subdivision 3, as Minnesota Statutes, section 219.925,
261.29subdivision 10. The revisor shall correct any cross-references made necessary by this
261.30recodification.

262.1ARTICLE 12

262.2GENERAL EDUCATION

262.3    Section 1. Minnesota Statutes 2015 Supplement, section 120A.41, is amended to read:
262.4120A.41 LENGTH OF SCHOOL YEAR; HOURS OF INSTRUCTION.
262.5A school board's annual school calendar must include at least 425 hours of
262.6instruction for a kindergarten student without a disability, 935 hours of instruction for a
262.7student in grades 1 through 6, and 1,020 hours of instruction for a student in grades 7
262.8through 12, not including summer school. The school calendar for all-day kindergarten
262.9must include at least 850 hours of instruction for the school year. The school calendar for
262.10a prekindergarten student under section 124D.151, if offered by the district, must include
262.11at least 350 hours of instruction for the school year. A school board's annual calendar
262.12must include at least 165 days of instruction for a student in grades 1 through 11 unless a
262.13four-day week schedule has been approved by the commissioner under section 124D.126.
262.14EFFECTIVE DATE.This section is effective for the 2016-2017 school year and
262.15later.

262.16    Sec. 2. Minnesota Statutes 2014, section 124D.1158, subdivision 3, is amended to read:
262.17    Subd. 3. Program reimbursement. Each school year, the state must reimburse
262.18each participating school 30 cents for each reduced-price breakfast, 55 cents for each fully
262.19paid breakfast served to students in grades 1 to 12, and $1.30 for each fully paid breakfast
262.20served to a prekindergarten student enrolled in an approved voluntary prekindergarten
262.21program under section 124D.151 or a kindergarten student.
262.22EFFECTIVE DATE.This section is effective for revenue in fiscal year 2017 and
262.23later.

262.24    Sec. 3. Minnesota Statutes 2014, section 124D.1158, subdivision 4, is amended to read:
262.25    Subd. 4. No fees. A school that receives school breakfast aid under this section
262.26must make breakfast available without charge to all participating students in grades 1
262.27to 12 who qualify for free or reduced-price meals and to all prekindergarten students
262.28enrolled in an approved voluntary prekindergarten program under section 124D.151 and
262.29all kindergarten students.
262.30EFFECTIVE DATE.This section is effective for the 2016-2017 school year and
262.31later.

263.1    Sec. 4. [124D.151] VOLUNTARY PREKINDERGARTEN PROGRAM.
263.2    Subdivision 1. Establishment; purpose. A district, a charter school, a group of
263.3districts, a group of charter schools, or a group of districts and charter schools may
263.4establish a voluntary prekindergarten program. The purpose of a voluntary prekindergarten
263.5program is to prepare children for success as they enter kindergarten in the following year.
263.6    Subd. 2. Program requirements. (a) A voluntary prekindergarten program
263.7provider must:
263.8    (1) measure each child's cognitive and social skills using a formative measure
263.9aligned to the state's early learning standards when the child enters and again before the
263.10child leaves the program, screening and progress monitoring measures, and others from
263.11the state-approved menu of kindergarten entry profile measures;
263.12(2) provide comprehensive program content including the implementation of
263.13curriculum, assessment, and instructional strategies aligned with the state early learning
263.14standards, and kindergarten through third grade academic standards;
263.15(3) provide instructional content and activities that are of sufficient length and
263.16intensity to address learning needs including offering a program with at least 350 hours of
263.17instruction per school year for a prekindergarten student;
263.18(4) provide voluntary prekindergarten instructional staff salaries comparable to the
263.19salaries of local kindergarten through grade 12 instructional staff;
263.20(5) coordinate appropriate kindergarten transition with families, community-based
263.21prekindergarten programs, and school district kindergarten programs;
263.22(6) involve parents in program planning and transition planning by implementing
263.23parent engagement strategies that include culturally and linguistically responsive activities
263.24in prekindergarten through third grade that are aligned with early childhood family
263.25education under section 124D.13;
263.26(7) coordinate with relevant community-based services, including health and social
263.27service agencies, to ensure children have access to comprehensive services;
263.28(8) coordinate with all relevant school district programs and services including early
263.29childhood special education, homeless students, and English learners;
263.30(9) ensure staff-to-child ratios of one-to-ten and a maximum group size of 20 children;
263.31(10) provide high-quality coordinated professional development, training, and
263.32coaching for both school district and community-based early learning providers that
263.33is informed by a measure of adult-child interactions and enables teachers to be highly
263.34knowledgeable in early childhood curriculum content, assessment, native and English
263.35language development programs, and instruction; and
264.1(11) implement strategies that support the alignment of professional development,
264.2instruction, assessments, and prekindergarten through grade three curricula.
264.3(b) A voluntary prekindergarten program must ensure that all classroom teachers
264.4have an early childhood license issued by the Board of Teaching, or special permission,
264.5by the 2022-2023 school year and later.
264.6(c) Districts and charter schools must include their strategy for implementing and
264.7measuring the impact of their voluntary prekindergarten program under section 120B.11
264.8and provide results in their world's best workforce annual summary to the commissioner
264.9of education.
264.10    Subd. 3. Mixed delivery of services. A district or charter school may contract
264.11with a charter school, Head Start or child care centers, family child care programs
264.12licensed under section 245A.03, or a community-based organization to provide eligible
264.13children with developmentally appropriate services that meet the program requirements in
264.14subdivision 2. Components of a mixed-delivery plan include strategies for recruitment,
264.15contracting, and monitoring of fiscal compliance and program quality.
264.16    Subd. 4. Eligibility. A child who is four years of age as of September 1 in the
264.17calendar year in which the school year commences is eligible to participate in a voluntary
264.18prekindergarten program free of charge. Each eligible child must complete a health and
264.19developmental screening within 90 days of program enrollment under sections 121A.16 to
264.20121A.19, and provide documentation of required immunizations under section 121A.15.
264.21    Subd. 5. Application process; priority for high poverty schools. (a) To qualify
264.22for program approval for fiscal year 2017, a district or charter school must submit an
264.23application to the commissioner by July 1, 2016. To qualify for program approval for
264.24fiscal year 2018 and later, a district or charter school must submit an application to the
264.25commissioner by January 30 of the fiscal year prior to the fiscal year in which the program
264.26will be implemented. The application must include:
264.27    (1) a description of the proposed program, including the number of hours per week
264.28the program will be offered at each school site or mixed-delivery location;
264.29(2) an estimate of the number of eligible children to be served in the program at each
264.30school site or mixed-delivery location; and
264.31(3) a statement of assurances signed by the superintendent or charter school director
264.32that the proposed program meets the requirements of subdivision 2.
264.33(b) The commissioner must review all applications submitted for fiscal year 2017 by
264.34August 1, 2016, and must review all applications submitted for fiscal year 2018 and later
264.35by March 1 of the fiscal year in which the applications are received and determine whether
264.36each application meets the requirements of paragraph (a).
265.1(c) The commissioner must divide all applications for new or expanded programs
265.2meeting the requirements of paragraph (a) into four groups as follows: the Minneapolis and
265.3St. Paul school districts; other school districts located in the metropolitan equity region as
265.4defined in section 126C.10, subdivision 28; school districts located in the rural equity region
265.5as defined in section 126C.10, subdivision 28; and charter schools. Within each group, the
265.6applications must be ordered by rank using a sliding scale based on the following criteria:
265.7(1) concentration of kindergarten students eligible for free or reduced-price lunches
265.8by school site on October 1 of the previous school year. For school district programs to be
265.9operated at locations that do not have free and reduced-price lunch concentration data for
265.10kindergarten programs for October 1 of the previous school year, including mixed-delivery
265.11programs, the school district average concentration of kindergarten students eligible for
265.12free or reduced-price lunches must be used for the rank ordering;
265.13(2) presence or absence of a three- or four-star Parent Aware rated program within
265.14the school district or close proximity of the district. School sites with the highest
265.15concentration of kindergarten students eligible for free or reduced-price lunches that
265.16do not have a three- or four-star Parent Aware program within the district or close
265.17proximity of the district shall receive the highest priority, and school sites with the lowest
265.18concentration of kindergarten students eligible for free or reduced-price lunches that have
265.19a three- or four-star Parent Aware rated program within the district or close proximity of
265.20the district shall receive the lowest priority. If a tie exists in the rank order of applications
265.21under this paragraph, the commissioner must give priority among the tied applications to
265.22the applicant with the highest proportion of prekindergarten classroom teachers with an
265.23early childhood license issued by the Board of Teaching.
265.24(d) The aid available for the program as specified in subdivision 6, paragraph (b),
265.25must initially be allocated among the four groups based on each group's percentage share
265.26of the statewide kindergarten enrollment on October 1 of the previous school year. Within
265.27each group, the available aid must be allocated among school sites in priority order until
265.28that region's share of the aid limit is reached. If the aid limit is not reached for all groups,
265.29the remaining amount must be allocated to the highest priority school sites, as designated
265.30under this section, not funded in the initial allocation on a statewide basis.
265.31(e) Once a school site is approved for aid under this subdivision, it shall remain
265.32eligible for aid if it continues to meet program requirements, regardless of changes in the
265.33concentration of students eligible for free or reduced-price lunches.
265.34(f) If the total aid entitlement approved based on applications submitted under
265.35paragraph (a) is less than the aid entitlement limit under subdivision 6, paragraph (b),
265.36the commissioner must notify all school districts and charter schools of the amount that
266.1remains available within 30 days of the initial application deadline under paragraph (a),
266.2and complete a second round of allocations based on applications received within 60 days
266.3of the initial application deadline.
266.4(g) Procedures for approving applications submitted under paragraph (f) shall be the
266.5same as specified in paragraphs (a) to (d), except that the allocations shall be made to the
266.6highest priority school sites not funded in the initial allocation on a statewide basis.
266.7    Subd. 6. Program and aid entitlement limits. (a) Notwithstanding section
266.8126C.05, subdivision 1, paragraph (d), the pupil units for a voluntary prekindergarten
266.9program for an eligible school district or charter school must not exceed 60 percent of the
266.10kindergarten pupil units for that school district or charter school under section 126C.05,
266.11subdivision 1, paragraph (e).
266.12(b) In reviewing applications under subdivision 5, the commissioner must limit the
266.13estimated state aid entitlement approved under this section to $27,092,000 for fiscal year
266.142017, $33,095,000 for fiscal year 2018, and $40,203,000 for fiscal year 2019 and later. If
266.15the actual state aid entitlement based on final data exceeds the limit in any year, the aid of
266.16the participating districts must be prorated so as not to exceed the limit.
266.17EFFECTIVE DATE.This section is effective for revenue in fiscal year 2017 and
266.18later.

266.19    Sec. 5. Minnesota Statutes 2015 Supplement, section 124D.59, subdivision 2, is
266.20amended to read:
266.21    Subd. 2. English learner. (a) "English learner" means a pupil in kindergarten
266.22through grade 12 or a prekindergarten student enrolled in an approved voluntary
266.23prekindergarten program under section 124D.151 who meets the requirements under
266.24subdivision 2a or the following requirements:
266.25(1) the pupil, as declared by a parent or guardian first learned a language other than
266.26English, comes from a home where the language usually spoken is other than English, or
266.27usually speaks a language other than English; and
266.28(2) the pupil is determined by a valid assessment measuring the pupil's English
266.29language proficiency and by developmentally appropriate measures, which might include
266.30observations, teacher judgment, parent recommendations, or developmentally appropriate
266.31assessment instruments, to lack the necessary English skills to participate fully in
266.32academic classes taught in English.
266.33(b) A pupil enrolled in a Minnesota public school in any grade 4 through 12 who in
266.34the previous school year took a commissioner-provided assessment measuring the pupil's
266.35emerging academic English, shall be counted as an English learner in calculating English
267.1learner pupil units under section 126C.05, subdivision 17, and shall generate state English
267.2learner aid under section 124D.65, subdivision 5, if the pupil scored below the state cutoff
267.3score or is otherwise counted as a nonproficient participant on the assessment measuring
267.4the pupil's emerging academic English, or, in the judgment of the pupil's classroom
267.5teachers, consistent with section 124D.61, clause (1), the pupil is unable to demonstrate
267.6academic language proficiency in English, including oral academic language, sufficient to
267.7successfully and fully participate in the general core curriculum in the regular classroom.
267.8(c) Notwithstanding paragraphs (a) and (b), a pupil in kindergarten prekindergarten
267.9under section 124D.151, through grade 12 shall not be counted as an English learner in
267.10calculating English learner pupil units under section 126C.05, subdivision 17, and shall
267.11not generate state English learner aid under section 124D.65, subdivision 5, if:
267.12(1) the pupil is not enrolled during the current fiscal year in an educational program
267.13for English learners under sections 124D.58 to 124D.64; or
267.14(2) the pupil has generated seven or more years of average daily membership in
267.15Minnesota public schools since July 1, 1996.
267.16EFFECTIVE DATE.This section is effective for revenue in fiscal year 2017 and
267.17later.

267.18    Sec. 6. Minnesota Statutes 2014, section 124D.68, subdivision 2, is amended to read:
267.19    Subd. 2. Eligible pupils. (a) A pupil under the age of 21 or who meets the
267.20requirements of section 120A.20, subdivision 1, paragraph (c), is eligible to participate in
267.21the graduation incentives program, if the pupil:
267.22(1) performs substantially below the performance level for pupils of the same age
267.23in a locally determined achievement test;
267.24(2) is behind in satisfactorily completing coursework or obtaining credits for
267.25graduation;
267.26(3) is pregnant or is a parent;
267.27(4) has been assessed as chemically dependent;
267.28(5) has been excluded or expelled according to sections 121A.40 to 121A.56;
267.29(6) has been referred by a school district for enrollment in an eligible program or
267.30a program pursuant to section 124D.69;
267.31(7) is a victim of physical or sexual abuse;
267.32(8) has experienced mental health problems;
267.33(9) has experienced homelessness sometime within six months before requesting a
267.34transfer to an eligible program;
267.35(10) speaks English as a second language or is an English learner; or
268.1(11) has withdrawn from school or has been chronically truant; or
268.2(12) is being treated in a hospital in the seven-county metropolitan area for cancer or
268.3other life threatening illness or is the sibling of an eligible pupil who is being currently
268.4treated, and resides with the pupil's family at least 60 miles beyond the outside boundary
268.5of the seven-county metropolitan area.
268.6(b) For the 2016-2017 school year only, a pupil otherwise qualifying under
268.7paragraph (a) who is at least 21 years of age and not yet 22 years of age and is an English
268.8learner with an interrupted formal education according to section 124D.59, subdivision 2a,
268.9is eligible to participate in the graduation incentives program under section 124D.68 and
268.10in concurrent enrollment courses offered under section 124D.09, subdivision 10, and is
268.11funded in the same manner as other pupils under this section.

268.12    Sec. 7. Minnesota Statutes 2015 Supplement, section 126C.05, subdivision 1, is
268.13amended to read:
268.14    Subdivision 1. Pupil unit. Pupil units for each Minnesota resident pupil under the
268.15age of 21 or who meets the requirements of section 120A.20, subdivision 1, paragraph
268.16(c), in average daily membership enrolled in the district of residence, in another district
268.17under sections 123A.05 to 123A.08, 124D.03, 124D.08, or 124D.68; in a charter school
268.18under chapter 124E; or for whom the resident district pays tuition under section 123A.18,
268.19123A.22 , 123A.30, 123A.32, 123A.44, 123A.488, 123B.88, subdivision 4, 124D.04,
268.20124D.05 , 125A.03 to 125A.24, 125A.51, or 125A.65, shall be counted according to this
268.21subdivision.
268.22    (a) A prekindergarten pupil with a disability who is enrolled in a program approved
268.23by the commissioner and has an individualized education program is counted as the ratio
268.24of the number of hours of assessment and education service to 825 times 1.0 with a
268.25minimum average daily membership of 0.28, but not more than 1.0 pupil unit.
268.26    (b) A prekindergarten pupil who is assessed but determined not to be disabled is
268.27counted as the ratio of the number of hours of assessment service to 825 times 1.0.
268.28    (c) A kindergarten pupil with a disability who is enrolled in a program approved
268.29by the commissioner is counted as the ratio of the number of hours of assessment and
268.30education services required in the fiscal year by the pupil's individualized education
268.31program to 875, but not more than one.
268.32(d) A prekindergarten pupil who is not included in paragraph (a) or (b) and is
268.33enrolled in an approved voluntary prekindergarten program under section 124D.151 is
268.34counted as the ratio of the number of hours of instruction to 850 times 1.0, but not more
268.35than 0.6 pupil units.
269.1    (d) (e) A kindergarten pupil who is not included in paragraph (c) is counted as 1.0
269.2pupil unit if the pupil is enrolled in a free all-day, every day kindergarten program available
269.3to all kindergarten pupils at the pupil's school that meets the minimum hours requirement in
269.4section 120A.41, or is counted as .55 pupil unit, if the pupil is not enrolled in a free all-day,
269.5every day kindergarten program available to all kindergarten pupils at the pupil's school.
269.6    (e) (f) A pupil who is in any of grades 1 to 6 is counted as 1.0 pupil unit.
269.7    (f) (g) A pupil who is in any of grades 7 to 12 is counted as 1.2 pupil units.
269.8    (g) (h) A pupil who is in the postsecondary enrollment options program is counted
269.9as 1.2 pupil units.
269.10EFFECTIVE DATE.This section is effective for revenue in fiscal year 2017 and
269.11later.

269.12    Sec. 8. Minnesota Statutes 2014, section 126C.05, subdivision 3, is amended to read:
269.13    Subd. 3. Compensation revenue pupil units. Compensation revenue pupil units
269.14for fiscal year 1998 and thereafter must be computed according to this subdivision.
269.15(a) The compensation revenue concentration percentage for each building in a
269.16district equals the product of 100 times the ratio of:
269.17(1) the sum of the number of pupils enrolled in the building eligible to receive free
269.18lunch plus one-half of the pupils eligible to receive reduced priced lunch on October
269.191 of the previous fiscal year; to
269.20(2) the number of pupils enrolled in the building on October 1 of the previous fiscal
269.21year.
269.22(b) The compensation revenue pupil weighting factor for a building equals the
269.23lesser of one or the quotient obtained by dividing the building's compensation revenue
269.24concentration percentage by 80.0.
269.25(c) The compensation revenue pupil units for a building equals the product of:
269.26(1) the sum of the number of pupils enrolled in the building eligible to receive free
269.27lunch and one-half of the pupils eligible to receive reduced priced lunch on October 1
269.28of the previous fiscal year; times
269.29(2) the compensation revenue pupil weighting factor for the building; times
269.30(3) .60.
269.31(d) Notwithstanding paragraphs (a) to (c), for voluntary prekindergarten programs
269.32under section 124D.151, charter schools, and contracted alternative programs in the
269.33first year of operation, compensation revenue pupil units shall be computed using data
269.34for the current fiscal year. If the voluntary prekindergarten program, charter school, or
269.35contracted alternative program begins operation after October 1, compensatory revenue
270.1pupil units shall be computed based on pupils enrolled on an alternate date determined by
270.2the commissioner, and the compensation revenue pupil units shall be prorated based on
270.3the ratio of the number of days of student instruction to 170 days.
270.4(e) The percentages in this subdivision must be based on the count of individual
270.5pupils and not on a building average or minimum.
270.6EFFECTIVE DATE.This section is effective for revenue in fiscal year 2017 and
270.7later.

270.8    Sec. 9. Minnesota Statutes 2014, section 126C.10, subdivision 2d, is amended to read:
270.9    Subd. 2d. Declining enrollment revenue. (a) A school district's declining
270.10enrollment revenue equals the greater of zero or the product of: (1) 28 percent of the
270.11formula allowance for that year and (2) the difference between the adjusted pupil units for
270.12the preceding year and the adjusted pupil units for the current year.
270.13(b) Notwithstanding paragraph (a), for fiscal years 2015, 2016, and 2017 only, a pupil
270.14enrolled at the Crosswinds school shall not generate declining enrollment revenue for the
270.15district or charter school in which the pupil was last counted in average daily membership.
270.16(c) Notwithstanding paragraph (a), for fiscal years 2017, 2018, and 2019 only,
270.17prekindergarten pupil units under section 126C.05, subdivision 1, paragraph (d), must be
270.18excluded from the calculation of declining enrollment revenue.
270.19EFFECTIVE DATE.This section is effective for revenue in fiscal year 2017 and
270.20later.

270.21    Sec. 10. Minnesota Statutes 2015 Supplement, section 126C.10, subdivision 13a,
270.22is amended to read:
270.23    Subd. 13a. Operating capital levy. To obtain operating capital revenue, a district
270.24may levy an amount not more than the product of its operating capital revenue for the
270.25fiscal year times the lesser of one or the ratio of its adjusted net tax capacity per adjusted
270.26pupil unit to the operating capital equalizing factor. The operating capital equalizing factor
270.27equals $14,500 for fiscal years 2015 and 2016, $14,740 $16,680 for fiscal year 2017,
270.28$17,473 $21,523 for fiscal year 2018, and $20,510 $27,678 for fiscal year 2019 and later.
270.29EFFECTIVE DATE.This section is effective for revenue in fiscal year 2017 and
270.30later.

270.31    Sec. 11. Minnesota Statutes 2014, section 126C.10, subdivision 24, is amended to read:
270.32    Subd. 24. Equity revenue. (a) A school district qualifies for equity revenue if:
271.1    (1) the school district's adjusted pupil unit amount of basic revenue, transition
271.2revenue, and referendum revenue is less than the value of the school district at or
271.3immediately above the 95th percentile of school districts in its equity region for those
271.4revenue categories; and
271.5    (2) the school district's administrative offices are not located in a city of the first
271.6class on July 1, 1999.
271.7    (b) Equity revenue for a qualifying district that receives referendum revenue under
271.8section 126C.17, subdivision 4, equals the product of (1) the district's adjusted pupil
271.9units for that year; times (2) the sum of (i) $14, plus (ii) $80, times the school district's
271.10equity index computed under subdivision 27.
271.11    (c) Equity revenue for a qualifying district that does not receive referendum revenue
271.12under section 126C.17, subdivision 4, equals the product of the district's adjusted pupil
271.13units for that year times $14.
271.14    (d) A school district's equity revenue is increased by the greater of zero or an amount
271.15equal to the district's adjusted pupil units times the difference between ten percent of the
271.16statewide average amount of referendum revenue per adjusted pupil unit for that year and
271.17the district's referendum revenue per adjusted pupil unit. A school district's revenue under
271.18this paragraph must not exceed $100,000 for that year.
271.19    (e) A school district's equity revenue for a school district located in the metro equity
271.20region with any of its area located within Anoka, Carver, Dakota, Hennepin, Ramsey,
271.21Scott, or Washington County equals the amount computed in paragraphs (b), (c), and (d)
271.22multiplied by 1.25.
271.23    (f) A school district's additional equity revenue equals $50 times its adjusted pupil
271.24units.
271.25EFFECTIVE DATE.This section is effective for revenue in fiscal year 2018 and
271.26later.

271.27    Sec. 12. Laws 2011, First Special Session chapter 11, article 4, section 8, is amended to
271.28read:
271.29    Sec. 8. EARLY REPAYMENT.
271.30(a) A school district that received a maximum effort capital loan prior to January
271.311, 1997, may repay the full outstanding original principal on its capital loan prior to
271.32July 1, 2012, and the liability of the district on the loan is satisfied and discharged and
271.33interest on the loan ceases.
271.34(b) A school district with an outstanding capital loan balance that received a
271.35maximum effort capital loan prior to January 1, 2007, may repay to the commissioner of
272.1education by November 30, 2016, the full outstanding original principal on its capital
272.2loan and the liability of the district on the loan is satisfied and discharged and interest
272.3on the loan ceases.
272.4EFFECTIVE DATE.This section is effective the day following final enactment.

272.5    Sec. 13. Laws 2015, First Special Session chapter 3, article 1, section 27, subdivision
272.62, is amended to read:
272.7    Subd. 2. General education aid. For general education aid under Minnesota
272.8Statutes, section 126C.13, subdivision 4:

272.9 272.10		$	6,624,310,000 6,649,435,000	.....	2016
272.11 272.12		$	6,761,574,000 6,815,589,000	.....	2017

272.13The 2016 appropriation includes $622,908,000 for 2015 and $6,001,405,000
272.14$6,026,527,000 for 2016.
272.15The 2017 appropriation includes $638,812,000 $641,412,000 for 2016 and
272.16$6,122,762,000 $6,174,177,000 for 2017.

272.17    Sec. 14. Laws 2015, First Special Session chapter 3, article 7, section 7, subdivision 2,
272.18is amended to read:
272.19    Subd. 2. School lunch. For school lunch aid according to Minnesota Statutes,
272.20section 124D.111, and Code of Federal Regulations, title 7, section 210.17:

272.21 272.22		$	15,661,000 16,251,000	.....	2016
272.23 272.24		$	15,818,000 16,775,000	.....	2017

272.25    Sec. 15. Laws 2015, First Special Session chapter 3, article 7, section 7, subdivision 3,
272.26is amended to read:
272.27    Subd. 3. School breakfast. For traditional school breakfast aid under Minnesota
272.28Statutes, section 124D.1158:

272.29 272.30		$	9,731,000 9,457,000	.....	2016
272.31 272.32		$	10,361,000 10,365,000	.....	2017

272.33    Sec. 16. RECIPROCITY AGREEMENT EXEMPTION; HENDRICKS.
273.1Notwithstanding Minnesota Statutes, sections 124D.04, subdivision 6, paragraph
273.2(b); 124D.041, subdivision 3, paragraph (b); and 124D.05, subdivision 2a, the provisions
273.3of Minnesota Statutes, section 124D.041, and the agreement shall not apply to Independent
273.4School District No. 402, Hendricks.
273.5EFFECTIVE DATE.This section is effective for the 2016-2017 school year and
273.6later.

273.7ARTICLE 13

273.8EDUCATION EXCELLENCE

273.9    Section 1. Minnesota Statutes 2014, section 13.321, is amended by adding a
273.10subdivision to read:
273.11    Subd. 11. Student-user privacy requirements. Section 125B.27 governs privacy
273.12and information practices of online educational services.

273.13    Sec. 2. Minnesota Statutes 2014, section 120B.021, subdivision 1, is amended to read:
273.14    Subdivision 1. Required academic standards. (a) The following subject areas
273.15are required for statewide accountability:
273.16    (1) language arts;
273.17    (2) mathematics;
273.18    (3) science;
273.19    (4) social studies, including history, geography, economics, and government and
273.20citizenship;
273.21    (5) physical education;
273.22    (6) health, for which locally developed academic standards apply; and
273.23    (7) the arts, for which statewide or locally developed academic standards apply, as
273.24determined by the school district. Public elementary and middle schools must offer at least
273.25three and require at least two of the following four arts areas: dance; music; theater; and
273.26visual arts. Public high schools must offer at least three and require at least one of the
273.27following five arts areas: media arts; dance; music; theater; and visual arts.
273.28    (b) For purposes of applicable federal law, the academic standards for language arts,
273.29mathematics, and science apply to all public school students, except the very few students
273.30with extreme cognitive or physical impairments for whom an individualized education
273.31program team has determined that the required academic standards are inappropriate. An
273.32individualized education program team that makes this determination must establish
273.33alternative standards.
274.1(c) The department must adopt the most recent National Association of Sport and
274.2Physical Education kindergarten through grade 12 standards and benchmarks for physical
274.3education as the required physical education academic standards. The department may
274.4modify and adapt the national standards to accommodate state interest. The modification
274.5and adaptations must maintain the purpose and integrity of the national standards. The
274.6department must make available sample assessments for school districts to assess students'
274.7mastery of the physical education standards beginning in the 2018-2019 school year.
274.8    (c) (d) District efforts to develop, implement, or improve instruction or curriculum
274.9as a result of the provisions of this section must be consistent with sections 120B.10,
274.10120B.11 , and 120B.20.

274.11    Sec. 3. Minnesota Statutes 2014, section 120B.021, subdivision 3, is amended to read:
274.12    Subd. 3. Rulemaking. The commissioner, consistent with the requirements of
274.13this section and section 120B.022, must adopt statewide rules under section 14.389 for
274.14implementing statewide rigorous core academic standards in language arts, mathematics,
274.15science, social studies, physical education, and the arts. After the rules authorized under
274.16this subdivision are initially adopted, the commissioner may not amend or repeal these
274.17rules nor adopt new rules on the same topic without specific legislative authorization. The
274.18academic standards for language arts, mathematics, and the arts must be implemented for
274.19all students beginning in the 2003-2004 school year. The academic standards for science
274.20and social studies must be implemented for all students beginning in the 2005-2006 school
274.21year.

274.22    Sec. 4. Minnesota Statutes 2015 Supplement, section 120B.021, subdivision 4, is
274.23amended to read:
274.24    Subd. 4. Revisions and reviews required. (a) The commissioner of education must
274.25revise and appropriately embed technology and information literacy standards consistent
274.26with recommendations from school media specialists into the state's academic standards
274.27and graduation requirements and implement a ten-year cycle to review and, consistent
274.28with the review, revise state academic standards and related benchmarks, consistent with
274.29this subdivision. During each ten-year review and revision cycle, the commissioner also
274.30must examine the alignment of each required academic standard and related benchmark
274.31with the knowledge and skills students need for career and college readiness and advanced
274.32work in the particular subject area. The commissioner must include the contributions of
274.33Minnesota American Indian tribes and communities as related to the academic standards
274.34during the review and revision of the required academic standards.
275.1    (b) The commissioner must ensure that the statewide mathematics assessments
275.2administered to students in grades 3 through 8 and 11 are aligned with the state academic
275.3standards in mathematics, consistent with section 120B.30, subdivision 1, paragraph
275.4(b). The commissioner must implement a review of the academic standards and related
275.5benchmarks in mathematics beginning in the 2020-2021 school year and every ten years
275.6thereafter.
275.7(c) The commissioner must implement a review of the academic standards and related
275.8benchmarks in arts beginning in the 2016-2017 school year and every ten years thereafter.
275.9(d) The commissioner must implement a review of the academic standards and
275.10related benchmarks in science beginning in the 2017-2018 school year and every ten
275.11years thereafter.
275.12(e) The commissioner must implement a review of the academic standards and
275.13related benchmarks in language arts beginning in the 2018-2019 school year and every
275.14ten years thereafter.
275.15(f) The commissioner must implement a review of the academic standards and
275.16related benchmarks in social studies beginning in the 2019-2020 school year and every
275.17ten years thereafter.
275.18(g) The commissioner must implement a review of the academic standards and
275.19related benchmarks in physical education beginning in the 2024-2025 school year and
275.20every ten years thereafter.
275.21(h) School districts and charter schools must revise and align local academic
275.22standards and high school graduation requirements in health, world languages, and career
275.23and technical education to require students to complete the revised standards beginning
275.24in a school year determined by the school district or charter school. School districts and
275.25charter schools must formally establish a periodic review cycle for the academic standards
275.26and related benchmarks in health, world languages, and career and technical education.

275.27    Sec. 5. [120B.026] PHYSICAL EDUCATION.
275.28    Subdivision 1. Exclusion from class; recess. A student may be excused from a
275.29physical education class if the student submits written information signed by a physician
275.30stating that physical activity will jeopardize the student's health. A student may be
275.31excused from a physical education class if being excused meets the child's unique and
275.32individualized needs according to the child's individualized education program, federal
275.33504 plan, or individualized health plan. A student may be excused if a parent or guardian
275.34requests an exemption on religious grounds. A student with a disability must be provided
275.35with modifications or adaptations that allow physical education class to meet their needs.
276.1Schools are strongly encouraged not to exclude students in kindergarten through grade
276.25 from recess due to punishment or disciplinary action.
276.3    Subd. 2. Teachers. Physical education must be taught by teachers who are licensed
276.4to teach physical education. A physical education teacher shall be adequately prepared
276.5and regularly participate in professional development activities under section 122A.60.

276.6    Sec. 6. Minnesota Statutes 2014, section 120B.232, is amended to read:
276.7120B.232 CHARACTER DEVELOPMENT EDUCATION.
276.8    Subdivision 1. Character development education. (a) The legislature encourages
276.9districts to integrate or offer instruction on character education including, but not limited
276.10to, character qualities such as attentiveness, truthfulness, respect for authority, diligence,
276.11gratefulness, self-discipline, patience, forgiveness, respect for others, peacemaking, and
276.12resourcefulness. Instruction should be integrated into a district's existing programs,
276.13curriculum, or the general school environment. The commissioner shall provide assistance
276.14at the request of a district to develop character education curriculum and programs.
276.15(b) Character development education under paragraph (a) may include a voluntary
276.16elementary, middle, and high school program that incorporates the history and values of
276.17Congressional Medal of Honor recipients and may be offered as part of the social studies,
276.18English language arts, or other curriculum, as a schoolwide character building and veteran
276.19awareness initiative, or as an after-school program, among other possibilities.
276.20    Subd. 1a. Staff development; continuing education. (a) Staff development
276.21opportunities under section 122A.60 may include training in character development
276.22education that incorporates the history and values of Congressional Medal of Honor
276.23recipients under subdivision 1, paragraph (b), and is provided without cost to the interested
276.24school or district.
276.25(b) Local continuing education and relicensure committees or other local relicensure
276.26committees under section 122A.18, subdivision 4, are encouraged to approve up to six
276.27clock hours of continuing education for licensed teachers who complete the training in
276.28character development education under paragraph (a).
276.29    Subd. 2. Funding sources. The commissioner must first use federal funds for
276.30character development education programs to the extent available under United States
276.31Code, title 20, section 7247. Districts may accept funds from private and other public
276.32sources for character development education programs developed and implemented under
276.33this section, including programs funded through the Congressional Medal of Honor
276.34Foundation, among other sources.
277.1EFFECTIVE DATE.This section is effective the day following final enactment.

277.2    Sec. 7. Minnesota Statutes 2014, section 120B.30, subdivision 2, is amended to read:
277.3    Subd. 2. Department of Education assistance. (a) The Department of Education
277.4shall contract for professional and technical services according to competitive solicitation
277.5procedures under chapter 16C for purposes of this section.
277.6(b) A proposal submitted under this section must include disclosures containing:
277.7(1) comprehensive information regarding test administration monitoring practices;
277.8and
277.9(2) data privacy safeguards for student information to be transmitted to or used
277.10by the proposing entity.
277.11Information provided in the proposal is not security information or trade secret information
277.12for purposes of section 13.37.

277.13    Sec. 8. Minnesota Statutes 2014, section 120B.30, is amended by adding a subdivision
277.14to read:
277.15    Subd. 6. Database. The commissioner shall establish a reporting system for
277.16teachers, administrators, and students to report service disruptions and technical
277.17interruptions. The information reported through this system shall be maintained in a
277.18database accessible through the department's Web site.

277.19    Sec. 9. Minnesota Statutes 2015 Supplement, section 120B.31, subdivision 4, is
277.20amended to read:
277.21    Subd. 4. Student performance data. In developing policies and assessment
277.22processes to hold schools and districts accountable for high levels of academic standards
277.23under section 120B.021, the commissioner shall aggregate and disaggregate student
277.24data over time to report summary student performance and growth levels and, under
277.25section 120B.11, subdivision 2, clause (2), student learning and outcome data measured
277.26at the school, school district, and statewide level. When collecting and reporting the
277.27performance data, The commissioner shall use the student categories identified under
277.28the federal Elementary and Secondary Education Act, as most recently reauthorized,
277.29to organize and report the data so that state and local policy makers can understand
277.30the educational implications of changes in districts' demographic profiles over time,
277.31including student categories of homelessness; ethnicity; race; home language; immigrant;
277.32refugee status; English language learners under section 124D.59; free or reduced-price
277.33lunch; and other categories designated by federal law, as data are available, among other
278.1demographic factors. Any report the commissioner disseminates containing summary data
278.2on student performance must integrate student performance and the demographic factors
278.3that strongly correlate with that performance.
278.4EFFECTIVE DATE.This section is effective for the 2017-2018 school year and
278.5later.

278.6    Sec. 10. Minnesota Statutes 2014, section 120B.31, is amended by adding a
278.7subdivision to read:
278.8    Subd. 6. Test preparation costs. The department must annually compile and
278.9publish data relating to expenditures by school districts for preparation of all assessments
278.10administered pursuant to section 120B.30, including the costs of materials and staff time.

278.11    Sec. 11. Minnesota Statutes 2014, section 120B.35, is amended to read:
278.12120B.35 STUDENT ACADEMIC ACHIEVEMENT AND GROWTH.
278.13    Subdivision 1. School and Student indicators of growth and achievement.
278.14The commissioner must develop and implement a system for measuring and reporting
278.15academic achievement and individual student growth, consistent with the statewide
278.16educational accountability and reporting system. The system components must measure
278.17and separately report the adequate yearly progress of schools and the growth of individual
278.18students: students' current achievement in schools under subdivision 2; and individual
278.19students' educational growth over time under subdivision 3. The system also must include
278.20statewide measures of student academic growth that identify schools with high levels
278.21of growth, and also schools with low levels of growth that need improvement. When
278.22determining a school's effect, The data must include both statewide measures of student
278.23achievement and, to the extent annual tests are administered, indicators of achievement
278.24growth that take into account a student's prior achievement. Indicators of achievement and
278.25prior achievement must be based on highly reliable statewide or districtwide summative,
278.26interim, or formative assessments. Indicators that take into account a student's prior
278.27achievement must not be used to disregard a school's low achievement or to exclude a
278.28school from a program to improve low achievement levels.
278.29    Subd. 2. Federal Expectations for student academic achievement. (a) Each
278.30school year, a school district must determine if the student achievement levels at each
278.31school site meet federal expectations. If student achievement levels at a school site do
278.32not meet federal expectations and the site has not made adequate yearly progress for two
278.33consecutive school years, beginning with the 2001-2002 school year, the district must
279.1work with the school site to adopt a plan to raise student achievement levels to meet
279.2federal expectations. The commissioner of education shall establish student academic
279.3achievement levels to comply with this paragraph.
279.4(b) School sites identified as not meeting federal expectations must develop
279.5continuous improvement plans in order to meet federal expectations for student academic
279.6achievement. The department, at a district's request, must assist the district and the school
279.7site sites in developing a plan to improve student achievement. The plan must include
279.8parental involvement components.
279.9(c) The commissioner must:
279.10(1) assist school sites and districts identified as not meeting federal expectations; and
279.11(2) provide technical assistance to schools that integrate student achievement
279.12measures into the school continuous improvement plan.
279.13(d) The commissioner shall establish and maintain a continuous improvement Web
279.14site designed to make aggregated and disaggregated student growth and, under section
279.15120B.11, subdivision 2, clause (2), student learning and outcome data on every school
279.16and district available to parents, teachers, administrators, community members, and the
279.17general public, consistent with this section.
279.18    Subd. 3. State growth target; other state measures. (a) The state's educational
279.19assessment system measuring individual students' educational growth is based on
279.20indicators of achievement growth that show an individual student's prior achievement.
279.21Indicators of achievement and prior achievement must be based on highly reliable
279.22statewide or districtwide summative, interim, or formative assessments.
279.23(b) The commissioner, in consultation with a stakeholder group that includes
279.24assessment and evaluation directors, district staff, experts in culturally responsive teaching,
279.25and researchers, must implement a model that uses a value-added growth indicator and
279.26includes criteria for identifying schools and school districts that demonstrate medium and
279.27high growth under section 120B.299, subdivisions 8 and 9, and may recommend other
279.28value-added measures under section 120B.299, subdivision 3. The model may be used
279.29to advance educators' professional development and replicate programs that succeed in
279.30meeting students' diverse learning needs. Data on individual teachers generated under the
279.31model are personnel data under section 13.43. The model must allow users to:
279.32(1) report student growth consistent with this paragraph; and
279.33(2) for all student categories, report and compare aggregated and disaggregated state
279.34student growth and, under section 120B.11, subdivision 2, clause (2), student learning
279.35and outcome data using the nine student categories identified under the federal 2001 No
279.36Child Left Behind Act and two student gender categories of male and female, respectively,
280.1following appropriate reporting practices to protect nonpublic student data Elementary
280.2and Secondary Education Act, as most recently reauthorized, and, in addition to the Karen
280.3community, other student categories as determined by the total Minnesota population
280.4at or above the 1,000-person threshold based on the most recent decennial census,
280.5including ethnicity; race; refugee status; English language learners under section 124D.59;
280.6home language; free or reduced-price lunch; immigrant; and all students enrolled in a
280.7Minnesota public school who are currently or were previously in foster care, except that
280.8such disaggregation and cross tabulation is not required if the number of students in a
280.9category is insufficient to yield statistically reliable information or the results would reveal
280.10personally identifiable information about an individual student.
280.11The commissioner must report measures of student growth and, under section
280.12120B.11, subdivision 2, clause (2), student learning and outcome data, consistent with
280.13this paragraph, including the English language development, academic progress, and oral
280.14academic development of English learners and their native language development if the
280.15native language is used as a language of instruction, and include data on all pupils enrolled
280.16in a Minnesota public school course or program who are currently or were previously
280.17counted as an English learner under section 124D.59.
280.18(c) When reporting student performance under section 120B.36, subdivision 1, the
280.19commissioner annually, beginning July 1, 2011, must report two core measures indicating
280.20the extent to which current high school graduates are being prepared for postsecondary
280.21academic and career opportunities:
280.22(1) a preparation measure indicating the number and percentage of high school
280.23graduates in the most recent school year who completed course work important to
280.24preparing them for postsecondary academic and career opportunities, consistent with
280.25the core academic subjects required for admission to Minnesota's public colleges and
280.26universities as determined by the Office of Higher Education under chapter 136A; and
280.27(2) a rigorous coursework measure indicating the number and percentage of high
280.28school graduates in the most recent school year who successfully completed one or more
280.29college-level advanced placement, international baccalaureate, postsecondary enrollment
280.30options including concurrent enrollment, other rigorous courses of study under section
280.31120B.021, subdivision 1a , or industry certification courses or programs.
280.32When reporting the core measures under clauses (1) and (2), the commissioner must also
280.33analyze and report separate categories of information using the nine student categories
280.34identified under the federal 2001 No Child Left Behind Act and two student gender
280.35categories of male and female, respectively, following appropriate reporting practices
280.36to protect nonpublic student data. Elementary and Secondary Education Act, as most
281.1recently reauthorized, and, in addition to the Karen community, other student categories
281.2as determined by the total Minnesota population at or above the 1,000-person threshold
281.3based on the most recent decennial census, including ethnicity; race; refugee status;
281.4English language learners under section 124D.59; home language; free or reduced-price
281.5lunch; immigrant; and all students enrolled in a Minnesota public school who are currently
281.6or were previously enrolled in foster care, except that such disaggregation and cross
281.7tabulation is not required if the number of students in a category is insufficient to yield
281.8statistically reliable information or the results would reveal personally identifiable
281.9information about an individual student.
281.10(d) When reporting student performance under section 120B.36, subdivision 1, the
281.11commissioner annually, beginning July 1, 2014, must report summary data on school
281.12safety and students' engagement and connection at school. The commissioner must
281.13also analyze and report separate categories of information using the student categories
281.14identified under the federal Elementary and Secondary Education Act, as most recently
281.15reauthorized, and, in addition to the Karen community, other student categories as
281.16determined by the total Minnesota population at or above the 1,000-person threshold based
281.17on the most recent decennial census, including ethnicity; race; English language learners
281.18under section 124D.59; home language; free or reduced-price lunch; immigrant; refugee
281.19status; and all students enrolled in a Minnesota public school who are currently or were
281.20previously enrolled in foster care, except that such disaggregation and cross tabulation
281.21is not required if the number of students in a category is insufficient to yield statistically
281.22reliable information or the results would reveal personally identifiable information about
281.23an individual student. The summary data under this paragraph are separate from and
281.24must not be used for any purpose related to measuring or evaluating the performance
281.25of classroom teachers. The commissioner, in consultation with qualified experts on
281.26student engagement and connection and classroom teachers, must identify highly reliable
281.27variables that generate summary data under this paragraph. The summary data may be
281.28used at school, district, and state levels only. Any data on individuals received, collected,
281.29or created that are used to generate the summary data under this paragraph are nonpublic
281.30data under section 13.02, subdivision 9.
281.31(e) For purposes of statewide educational accountability, the commissioner must
281.32identify and report measures that demonstrate the success of learning year program
281.33providers under sections 123A.05 and 124D.68, among other such providers, in improving
281.34students' graduation outcomes. The commissioner, beginning July 1, 2015, must annually
281.35report summary data on:
281.36(1) the four- and six-year graduation rates of students under this paragraph;
282.1(2) the percent of students under this paragraph whose progress and performance
282.2levels are meeting career and college readiness benchmarks under section 120B.30,
282.3subdivision 1; and
282.4(3) the success that learning year program providers experience in:
282.5(i) identifying at-risk and off-track student populations by grade;
282.6(ii) providing successful prevention and intervention strategies for at-risk students;
282.7(iii) providing successful recuperative and recovery or reenrollment strategies for
282.8off-track students; and
282.9(iv) improving the graduation outcomes of at-risk and off-track students.
282.10The commissioner may include in the annual report summary data on other education
282.11providers serving a majority of students eligible to participate in a learning year program.
282.12(f) The commissioner, in consultation with recognized experts with knowledge and
282.13experience in assessing the language proficiency and academic performance of all English
282.14learners enrolled in a Minnesota public school course or program who are currently or were
282.15previously counted as an English learner under section 124D.59, must identify and report
282.16appropriate and effective measures to improve current categories of language difficulty and
282.17assessments, and monitor and report data on students' English proficiency levels, program
282.18placement, and academic language development, including oral academic language.
282.19    Subd. 4. Improving schools. Consistent with the requirements of this section,
282.20beginning June 20, 2012, the commissioner of education must annually report to the
282.21public and the legislature best practices implemented in those schools that demonstrate
282.22high growth compared to the state growth target.
282.23    Subd. 5. Improving graduation rates for students with emotional or behavioral
282.24disorders. (a) A district must develop strategies in conjunction with parents of students
282.25with emotional or behavioral disorders and the county board responsible for implementing
282.26sections 245.487 to 245.4889 to keep students with emotional or behavioral disorders in
282.27school, when the district has a drop-out rate for students with an emotional or behavioral
282.28disorder in grades 9 through 12 exceeding 25 percent.
282.29(b) A district must develop a plan in conjunction with parents of students with
282.30emotional or behavioral disorders and the local mental health authority to increase the
282.31graduation rates of students with emotional or behavioral disorders. A district with a
282.32drop-out rate for children with an emotional or behavioral disturbance in grades 9 through
282.3312 that is in the top 25 percent of all districts shall submit a plan for review and oversight
282.34to the commissioner.
282.35EFFECTIVE DATE.This section is effective for the 2017-2018 school year and
282.36later.

283.1    Sec. 12. Minnesota Statutes 2014, section 120B.36, as amended by Laws 2015, First
283.2Special Session chapter 3, article 2, section 8, is amended to read:
283.3120B.36 SCHOOL ACCOUNTABILITY; APPEALS PROCESS.
283.4    Subdivision 1. School performance reports. (a) The commissioner shall report
283.5student academic performance data under section 120B.35, subdivision subdivisions
283.62 , paragraph (b), and 3; the percentages of students showing low, medium, and high
283.7growth under section 120B.35, subdivision 3, paragraph (b); school safety and student
283.8engagement and connection under section 120B.35, subdivision 3, paragraph (d); rigorous
283.9coursework under section 120B.35, subdivision 3, paragraph (c); the percentage of
283.10students under section 120B.35, subdivision 3, paragraph (b), clause (2), whose progress
283.11and performance levels are meeting career and college readiness benchmarks under
283.12sections 120B.30, subdivision 1, and 120B.35, subdivision 3, paragraph (e); longitudinal
283.13data on the progress of eligible districts in reducing disparities in students' academic
283.14achievement and realizing racial and economic integration under section 124D.861;
283.15the acquisition of English, and where practicable, native language academic literacy,
283.16including oral academic language, and the academic progress of all English learners
283.17under section 124D.59, subdivisions 2 and 2a enrolled in a Minnesota public school
283.18course or program who are currently or were previously counted as an English learner
283.19under section 124D.59; two separate student-to-teacher ratios that clearly indicate the
283.20definition of teacher consistent with sections 122A.06 and 122A.15 for purposes of
283.21determining these ratios; staff characteristics excluding salaries; student enrollment
283.22demographics; all students enrolled in a Minnesota public school course or program who
283.23are currently or were previously in foster care, student homelessness, and district mobility;
283.24and extracurricular activities. The report also must indicate a school's adequate yearly
283.25progress status under applicable federal law, and must not set any designations applicable
283.26to high- and low-performing schools due solely to adequate yearly progress status.
283.27    (b) The commissioner shall develop, annually update, and post on the department
283.28Web site school performance reports.
283.29    (c) The commissioner must make available performance reports by the beginning
283.30of each school year.
283.31    (d) A school or district may appeal its adequate yearly progress status in writing to
283.32the commissioner within 30 days of receiving the notice of its status. The commissioner's
283.33decision to uphold or deny an appeal is final.
283.34    (e) School performance data are nonpublic data under section 13.02, subdivision 9,
283.35until the commissioner publicly releases the data. The commissioner shall annually post
283.36school performance reports to the department's public Web site no later than September 1,
284.1except that in years when the reports reflect new performance standards, the commissioner
284.2shall post the school performance reports no later than October 1.
284.3    Subd. 2. Adequate yearly student progress and other data. All data the
284.4department receives, collects, or creates to determine adequate yearly progress status
284.5under Public Law 107-110, section 1116, set state growth targets, and determine student
284.6growth, learning, and outcomes under section 120B.35 are nonpublic data under section
284.713.02, subdivision 9 , until the commissioner publicly releases the data. Districts must
284.8provide parents sufficiently detailed summary data to permit parents to appeal under
284.9Public Law 107-110, section 1116(b)(2). The commissioner shall annually post federal
284.10adequate yearly progress data and state student growth, learning, and outcome data to the
284.11department's public Web site no later than September 1, except that in years when adequate
284.12yearly progress reflects new performance standards, the commissioner shall post federal
284.13adequate yearly progress data and state student growth data no later than October 1.
284.14EFFECTIVE DATE.This section is effective for the 2017-2018 school year and
284.15later.

284.16    Sec. 13. Minnesota Statutes 2015 Supplement, section 120B.36, subdivision 1, is
284.17amended to read:
284.18    Subdivision 1. School performance reports. (a) The commissioner shall report
284.19student academic performance under section 120B.35, subdivision 2; the percentages of
284.20students showing low, medium, and high growth under section 120B.35, subdivision
284.213 , paragraph (b); school safety and student engagement and connection under section
284.22120B.35 , subdivision 3, paragraph (d); rigorous coursework under section 120B.35,
284.23subdivision 3 , paragraph (c); the percentage of students under section 120B.35, subdivision
284.243 , paragraph (b), clause (2), whose progress and performance levels are meeting career
284.25and college readiness benchmarks under sections 120B.30, subdivision 1, and 120B.35,
284.26subdivision 3 , paragraph (e); longitudinal data on the progress of eligible districts in
284.27reducing disparities in students' academic achievement and realizing racial and economic
284.28integration under section 124D.861; the acquisition of English, and where practicable,
284.29native language academic literacy, including oral academic language, and the academic
284.30progress of English learners under section 124D.59, subdivisions 2 and 2a; the weekly
284.31amount of time students in kindergarten through grade 8 are scheduled to spend in physical
284.32education class, the percent of students in kindergarten through grade 12 who receive a
284.33passing grade in physical education, and the number of required physical education credits
284.34high school students must complete to graduate; two separate student-to-teacher ratios that
284.35clearly indicate the definition of teacher consistent with sections 122A.06 and 122A.15
285.1for purposes of determining these ratios; staff characteristics excluding salaries; student
285.2enrollment demographics; student homelessness and district mobility; and extracurricular
285.3activities. The report also must indicate a school's adequate yearly progress status
285.4under applicable federal law, and must not set any designations applicable to high- and
285.5low-performing schools due solely to adequate yearly progress status.
285.6    (b) The commissioner shall develop, annually update, and post on the department
285.7Web site school performance reports.
285.8    (c) The commissioner must make available performance reports by the beginning
285.9of each school year.
285.10    (d) A school or district may appeal its adequate yearly progress status in writing to
285.11the commissioner within 30 days of receiving the notice of its status. The commissioner's
285.12decision to uphold or deny an appeal is final.
285.13    (e) School performance data are nonpublic data under section 13.02, subdivision 9,
285.14until the commissioner publicly releases the data. The commissioner shall annually post
285.15school performance reports to the department's public Web site no later than September 1,
285.16except that in years when the reports reflect new performance standards, the commissioner
285.17shall post the school performance reports no later than October 1.
285.18EFFECTIVE DATE.This section is effective the day following final enactment
285.19and applies to reports for the 2017-2018 school year and later.

285.20    Sec. 14. Minnesota Statutes 2015 Supplement, section 122A.21, subdivision 2, is
285.21amended to read:
285.22    Subd. 2. Licensure via portfolio. (a) An eligible candidate may use licensure via
285.23portfolio to obtain an initial licensure or to add a licensure field, consistent with applicable
285.24Board of Teaching licensure rules.
285.25    (b) A candidate for initial licensure must submit to the Educator Licensing Division
285.26at the department one portfolio demonstrating pedagogical competence and one portfolio
285.27demonstrating content competence.
285.28    (c) A candidate seeking to add a licensure field must submit to the Educator
285.29Licensing Division at the department one portfolio demonstrating content competence.
285.30    (d) The Board of Teaching must notify a candidate who submits a portfolio under
285.31paragraph (b) or (c) within 90 calendar days after the portfolio is received whether or not
285.32the portfolio was approved. If the portfolio was not approved, the board must immediately
285.33inform the candidate how to revise the portfolio to successfully demonstrate the requisite
285.34competence. The candidate may resubmit a revised portfolio at any time and the Educator
286.1Licensing Division at the department must approve or disapprove the portfolio within
286.260 calendar days of receiving it.
286.3    (e) A candidate must pay to the executive secretary of the Board of Teaching a $300
286.4fee for the first portfolio submitted for review and a $200 fee for any portfolio submitted
286.5subsequently. The fees must be paid to the executive secretary of the Board of Teaching.
286.6The revenue generated from the fee must be is deposited in an education licensure
286.7portfolio account in the special revenue fund and is appropriated to the commissioner of
286.8education for licensure via portfolio expenditures. The fees set by the Board of Teaching
286.9are nonrefundable for applicants not qualifying for a license. The Board of Teaching may
286.10waive or reduce fees for candidates based on financial need.

286.11    Sec. 15. Minnesota Statutes 2015 Supplement, section 122A.415, subdivision 4,
286.12is amended to read:
286.13    Subd. 4. Basic alternative teacher compensation aid. (a) The basic alternative
286.14teacher compensation aid for a school with a plan approved under section 122A.414,
286.15subdivision 2b , equals 65 percent of the alternative teacher compensation revenue under
286.16subdivision 1. The basic alternative teacher compensation aid for a charter school with a
286.17plan approved under section 122A.414, subdivisions 2a and 2b, equals $260 times the
286.18number of pupils enrolled in the school on October 1 of the previous year, or on October
286.191 of the current year for a charter school in the first year of operation, times the ratio of
286.20the sum of the alternative teacher compensation aid and alternative teacher compensation
286.21levy for all participating school districts to the maximum alternative teacher compensation
286.22revenue for those districts under subdivision 1.
286.23(b) Notwithstanding paragraph (a) and subdivision 1, the state total basic alternative
286.24teacher compensation aid entitlement must not exceed $88,118,000 for fiscal year 2017
286.25and later. The commissioner must limit the amount of alternative teacher compensation
286.26aid approved under this section so as not to exceed these limits $75,840,000 for fiscal year
286.272016. Basic alternative teacher compensation aid for an intermediate district or other
286.28cooperative unit equals $3,000 times the number of licensed teachers employed by the
286.29intermediate district or cooperative unit on October 1 of the previous school year.
286.30EFFECTIVE DATE.This section is effective the day following final enactment.

286.31    Sec. 16. Minnesota Statutes 2015 Supplement, section 122A.61, subdivision 1, is
286.32amended to read:
287.1    Subdivision 1. Staff development revenue for school districts. A district is
287.2required to reserve an amount equal to at least two percent of the basic revenue under
287.3section 126C.10, subdivision 2, for:
287.4(1) teacher development and evaluation under section 122A.40, subdivision 8, or
287.5122A.41, subdivision 5 ;
287.6(2) principal development and evaluation under section 123B.147, subdivision 3;
287.7(3) professional development under section 122A.60; and
287.8(4) in-service education for programs under section 120B.22, subdivision 2.
287.9To the extent extra funds remain, staff development revenue may be used for
287.10staff development plans, including plans for challenging instructional activities and
287.11experiences under section 122A.60, and for curriculum development and programs, other
287.12in-service education, teachers' mentoring under section 122A.70 and evaluation, teachers'
287.13workshops, teacher conferences, the cost of substitute teachers for staff development
287.14purposes, preservice and in-service education for special education professionals and
287.15paraprofessionals, and other related costs for staff development efforts. A district may
287.16annually waive the requirement to reserve their basic revenue under this section if a
287.17majority vote of the licensed teachers in the district and a majority vote of the school board
287.18agree to a resolution to waive the requirement. A district in statutory operating debt is
287.19exempt from reserving basic revenue according to this section. Districts may expend an
287.20additional amount of unreserved revenue for staff development based on their needs.
287.21EFFECTIVE DATE.This section is effective for revenue for fiscal year 2017
287.22and later.

287.23    Sec. 17. Minnesota Statutes 2014, section 122A.61, is amended by adding a
287.24subdivision to read:
287.25    Subd. 1a. Staff development aid for intermediate school districts and other
287.26cooperative units. (a) An intermediate school district or other cooperative unit providing
287.27instruction to students in federal instructional settings of level 4 or higher qualifies for
287.28staff development aid equal to $675 times the full-time equivalent number of licensed
287.29instructional staff, related services staff, and nonlicensed classroom aides employed by the
287.30intermediate school district or other cooperative unit during the previous fiscal year.
287.31(b) Staff development aid received under this subdivision must be used for activities
287.32related to enhancing services to students who may have challenging behaviors or mental
287.33health issues or be suffering from trauma. Specific qualifying staff development activities
287.34include but are not limited to:
287.35(1) proactive behavior management;
288.1(2) personal safety training;
288.2(3) de-escalation techniques;
288.3(4) adaptation of published curriculum and pedagogy for students with complex
288.4learning and behavioral needs; and
288.5(5) other staff development activities specific to the population in this paragraph.
288.6(c) The aid received under this subdivision must be reserved and spent only on
288.7the activities specified in this subdivision.
288.8EFFECTIVE DATE.This section is effective for revenue for fiscal year 2017
288.9and later.

288.10    Sec. 18. Minnesota Statutes 2014, section 122A.63, subdivision 1, is amended to read:
288.11    Subdivision 1. Establishment. (a) A grant program is established to assist American
288.12Indian people to become teachers and to provide additional education for American Indian
288.13teachers. The commissioner may award a joint grant to each of the following:
288.14(1) the Duluth campus of the University of Minnesota and Independent School
288.15District No. 709, Duluth;
288.16(2) Bemidji State University and Independent School District No. 38, Red Lake;
288.17(3) Moorhead State University and one of the school districts located within the
288.18White Earth Reservation; and
288.19(4) Augsburg College, Independent School District No. 625, St. Paul, and Special
288.20School District No. 1, Minneapolis.
288.21(b) If additional funds are available, the commissioner may award additional joint
288.22grants to other postsecondary institutions and school districts.

288.23    Sec. 19. Minnesota Statutes 2014, section 123B.04, subdivision 2, is amended to read:
288.24    Subd. 2. Agreement. (a) The school board and a school site may enter into an
288.25agreement under this section solely to develop and implement an individualized learning
288.26and achievement contract under subdivision 4.
288.27(b) Upon the request of 60 percent of the licensed employees of a site or a school
288.28site decision-making team, the school board shall enter into discussions to reach an
288.29agreement concerning the governance, management, or control of the school. A school
288.30site decision-making team may include the school principal, teachers in the school or their
288.31designee, other employees in the school, representatives of pupils in the school, or other
288.32members in the community. A school site decision-making team must include at least one
288.33parent of a pupil in the school. For purposes of formation of a new site, a school site
288.34decision-making team may be a team of teachers that is recognized by the board as a site.
289.1The school site decision-making team shall include the school principal or other person
289.2having general control and supervision of the school. The site decision-making team
289.3must reflect the diversity of the education site. At least one-half of the members shall be
289.4employees of the district, unless an employee is the parent of a student enrolled in the school
289.5site, in which case the employee may elect to serve as a parent member of the site team.
289.6(c) School site decision-making agreements must delegate powers, duties, and
289.7broad management responsibilities to site teams and involve staff members, students as
289.8appropriate, and parents in decision making.
289.9(d) An agreement shall include a statement of powers, duties, responsibilities, and
289.10authority to be delegated to and within the site.
289.11(e) An agreement may include:
289.12(1) an achievement contract according to subdivision 4;
289.13(2) a mechanism to allow principals, a site leadership team, or other persons having
289.14general control and supervision of the school, to make decisions regarding how financial
289.15and personnel resources are best allocated at the site and from whom goods or services
289.16are purchased;
289.17(3) a mechanism to implement parental involvement programs under section
289.18124D.895 and to provide for effective parental communication and feedback on this
289.19involvement at the site level;
289.20(4) a provision that would allow the team to determine who is hired into licensed
289.21and nonlicensed positions;
289.22(5) a provision that would allow teachers to choose the principal or other person
289.23having general control;
289.24(6) an amount of revenue allocated to the site under subdivision 3; and
289.25(7) any other powers and duties determined appropriate by the board.
289.26An agreement may assign such powers, duties, and management responsibilities to
289.27the licensed teachers at a school site to create teacher-governed schools and qualify the
289.28district and site for a grant under subdivision 2a.
289.29The school board of the district remains the legal employer under clauses (4) and (5).
289.30(f) Any powers or duties not delegated to the school site management team in the
289.31school site management agreement shall remain with the school board.
289.32(g) Approved agreements shall be filed with the commissioner. If a school board
289.33denies a request or the school site and school board fail to reach an agreement to enter
289.34into a school site management agreement, the school board shall provide a copy of the
289.35request and the reasons for its denial to the commissioner.
290.1(h) A site decision-making grant program is established, consistent with this
290.2subdivision, to allow sites to implement an agreement that at least:
290.3(1) notwithstanding subdivision 3, allocates to the site all revenue that is attributable
290.4to the students at that site;
290.5(2) includes a provision, consistent with current law and the collective bargaining
290.6agreement in effect, that allows the site team to decide who is selected from within the
290.7district for licensed and nonlicensed positions at the site and to make staff assignments
290.8in the site; and
290.9(3) includes a completed performance agreement under subdivision 4.
290.10The commissioner shall establish the form and manner of the application for a grant
290.11and annually, at the end of each fiscal year, report to the house of representatives and
290.12senate committees having jurisdiction over education on the progress of the program.
290.13EFFECTIVE DATE.This section is effective for fiscal year 2017 and later.

290.14    Sec. 20. Minnesota Statutes 2014, section 123B.04, is amended by adding a
290.15subdivision to read:
290.16    Subd. 2a. Teacher-governed schools. (a) Consistent with subdivision 2 allowing
290.17a school board to agree to assign powers, duties, and management responsibilities to a
290.18school site, and subject to an agreement between the interested school board and the
290.19exclusive representative of the teachers, a grant program is established to encourage
290.20licensed teachers employed at a school site to explore and develop organizational models
290.21for teaching and learning, provide curriculum and corresponding formative, interim, and
290.22summative assessments, measure and evaluate teacher performance, assign teaching
290.23positions and restructure instructional work, provide professional development to support
290.24teachers restructuring their work, allocate revenue, assert autonomy and leadership, and
290.25pursue other such policies, strategies, and activities for creating teacher-governed schools.
290.26(b) The commissioner, after receiving the approved agreement filed by the
290.27parties under subdivision 2, paragraph (g), shall award planning and start-up grants
290.28on a first-come, first-served basis until appropriated funds are expended, distributing
290.29the grants throughout Minnesota to the extent practicable and consistent with this
290.30subdivision. Subject to the content and projected expenditures of the parties' agreement,
290.31the commissioner shall award grants to eligible districts as follows:
290.32(1) a planning grant of up to $20,000 during the first year of the parties' agreement; and
290.33(2) an implementation grant of up to $100,000 during each of the next two years
290.34of the parties' agreement.
291.1A grant recipient that terminates an agreement before the end of a school year must return
291.2a pro rata portion of the grant to the commissioner, the amount of which the commissioner
291.3must determine based upon the number of school days remaining in the school year after
291.4the agreement is terminated. Grant recipients are encouraged to seek matching funds or
291.5in-kind contributions from nonstate sources to supplement the grant awards.
291.6    (c) A school district receiving a grant must transmit to the commissioner in an
291.7electronic format and post on its Web site by the end of the school year readily accessible
291.8information about recommended best practices based on its experience and progress under
291.9this section. The commissioner must make information about these recommended best
291.10practices readily available to interested districts and schools throughout Minnesota.
291.11EFFECTIVE DATE.This section is effective for fiscal year 2017 and later.

291.12    Sec. 21. Minnesota Statutes 2014, section 124D.091, subdivision 2, is amended to read:
291.13    Subd. 2. Eligibility. A district that offers a concurrent enrollment course according
291.14to an agreement under section 124D.09, subdivision 10, is eligible to receive aid for the
291.15costs of providing postsecondary courses at the high school. Beginning in fiscal year 2011,
291.16Districts only are eligible for aid if the college or university concurrent enrollment courses
291.17offered by the district are accredited by the National Alliance of Concurrent Enrollment
291.18Partnership, in the process of being accredited, or are shown by clear evidence to be of
291.19comparable standard to accredited courses, or are technical courses within a recognized
291.20career and technical education program of study approved by the commissioner of
291.21education and the chancellor of the Minnesota State Colleges and Universities.

291.22    Sec. 22. Minnesota Statutes 2014, section 124D.091, subdivision 3, is amended to read:
291.23    Subd. 3. Aid; tuition reimbursement. (a) An eligible district shall receive $150
291.24$300 per pupil enrolled in a concurrent enrollment course. The money must be used
291.25to defray the cost of delivering the course at the high school. The commissioner shall
291.26establish application procedures and deadlines for receipt of aid payments.
291.27    (b) Notwithstanding paragraph (a), by mutual agreement of the school board and the
291.28exclusive representative of the teachers, up to 25 percent of the aid under this subdivision
291.29may be reserved to offset tuition paid to an accredited higher education institution for
291.30coursework necessary for secondary teachers to meet a postsecondary institution's
291.31accrediting body's requirements to teach concurrent enrollment courses.
291.32(c) A teacher receiving tuition reimbursement under this subdivision must repay the
291.33school district if the teacher does not complete the training. If 50 percent or more of a
291.34teacher's tuition is reimbursed by the school district, the teacher must continue to teach in
292.1the school district for two years after receiving an endorsement under section 122A.09,
292.2subdivision 12, or repay the district for the tuition reimbursement.

292.3    Sec. 23. Minnesota Statutes 2015 Supplement, section 124D.231, subdivision 2,
292.4is amended to read:
292.5    Subd. 2. Full-service community school program. (a) The commissioner shall
292.6provide funding to eligible school sites to plan, implement, and improve full-service
292.7community schools. Eligible school sites must meet one of the following criteria:
292.8(1) the school is on a development plan for continuous improvement under section
292.9120B.35, subdivision 2 ; or
292.10(2) the school is in a district that has an achievement and integration plan approved
292.11by the commissioner of education under sections 124D.861 and 124D.862.
292.12(b) An eligible school site may receive up to $100,000 $150,000 annually. School
292.13sites receiving funding under this section shall hire or contract with a partner agency to
292.14hire a site coordinator to coordinate services at each covered school site.
292.15(c) Of grants awarded, implementation funding of up to $20,000 must be available
292.16for up to one year for planning for school sites. At the end of this period, the school must
292.17submit a full-service community school plan, pursuant to paragraph (g). If the site decides
292.18not to use planning funds, the plan must be submitted with the application.
292.19(d) The commissioner shall dispense the funds to consider additional school factors
292.20when dispensing funds including: schools with significant populations of students
292.21receiving free or reduced-price lunches. Schools with; significant homeless and highly
292.22mobile students shall also be a priority. The commissioner must also dispense the funds in a
292.23manner to ensure rates; and equity among urban, suburban, and greater Minnesota schools.
292.24(e) A school site must establish a school leadership team responsible for developing
292.25school-specific programming goals, assessing program needs, and overseeing the process
292.26of implementing expanded programming at each covered site. The school leadership team
292.27shall have between 12 to 15 members and shall meet the following requirements:
292.28(1) at least 30 percent of the members are parents and 30 percent of the members
292.29are teachers at the school site and must include the school principal and representatives
292.30from partner agencies; and
292.31(2) the school leadership team must be responsible for overseeing the baseline
292.32analyses under paragraph (f). A school leadership team must have ongoing responsibility
292.33for monitoring the development and implementation of full-service community school
292.34operations and programming at the school site and shall issue recommendations to schools
293.1on a regular basis and summarized in an annual report. These reports shall also be made
293.2available to the public at the school site and on school and district Web sites.
293.3(f) School sites must complete a baseline analysis prior to beginning programming
293.4as a full-service community school. The analysis shall include:
293.5(1) a baseline analysis of needs at the school site, led by the school leadership team,
293.6which shall include the following elements:
293.7(i) identification of challenges facing the school;
293.8(ii) analysis of the student body, including:
293.9(A) number and percentage of students with disabilities and needs of these students;
293.10(B) number and percentage of students who are English learners and the needs of
293.11these students;
293.12(C) number of students who are homeless or highly mobile; and
293.13(D) number and percentage of students receiving free or reduced-price lunch and the
293.14needs of these students;
293.15(iii) analysis of enrollment and retention rates for students with disabilities,
293.16English learners, homeless and highly mobile students, and students receiving free or
293.17reduced-price lunch;
293.18(iv) analysis of suspension and expulsion data, including the justification for such
293.19disciplinary actions and the degree to which particular populations, including, but not
293.20limited to, students of color, students with disabilities, students who are English learners,
293.21and students receiving free or reduced-price lunch are represented among students subject
293.22to such actions;
293.23(v) analysis of school achievement data disaggregated by major demographic
293.24categories, including, but not limited to, race, ethnicity, English learner status, disability
293.25status, and free or reduced-price lunch status;
293.26(vi) analysis of current parent engagement strategies and their success; and
293.27(vii) evaluation of the need for and availability of wraparound services, including,
293.28but not limited to:
293.29(A) mechanisms for meeting students' social, emotional, and physical health needs,
293.30which may include coordination of existing services as well as the development of new
293.31services based on student needs; and
293.32(B) strategies to create a safe and secure school environment and improve school
293.33climate and discipline, such as implementing a system of positive behavioral supports, and
293.34taking additional steps to eliminate bullying;
293.35(2) a baseline analysis of community assets and a strategic plan for utilizing
293.36and aligning identified assets. This analysis should include, but is not limited to, a
294.1documentation of individuals in the community, faith-based organizations, community and
294.2neighborhood associations, colleges, hospitals, libraries, businesses, and social service
294.3agencies who may be able to provide support and resources; and
294.4(3) a baseline analysis of needs in the community surrounding the school, led by
294.5the school leadership team, including, but not limited to:
294.6(i) the need for high-quality, full-day child care and early childhood education
294.7programs;
294.8(ii) the need for physical and mental health care services for children and adults; and
294.9(iii) the need for job training and other adult education programming.
294.10(g) Each school site receiving funding under this section must establish at least two
294.11of the following types of programming:
294.12(1) early childhood:
294.13(i) early childhood education; and
294.14(ii) child care services;
294.15(2) academic:
294.16(i) academic support and enrichment activities, including expanded learning time;
294.17(ii) summer or after-school enrichment and learning experiences;
294.18(iii) job training, internship opportunities, and career counseling services;
294.19(iv) programs that provide assistance to students who have been truant, suspended,
294.20or expelled; and
294.21(v) specialized instructional support services;
294.22(3) parental involvement:
294.23(i) programs that promote parental involvement and family literacy, including the
294.24Reading First and Early Reading First programs authorized under part B of title I of the
294.25Elementary and Secondary Education Act of 1965, United States Code, title 20, section
294.266361, et seq.;
294.27(ii) parent leadership development activities; and
294.28(iii) parenting education activities;
294.29(4) mental and physical health:
294.30(i) mentoring and other youth development programs, including peer mentoring and
294.31conflict mediation;
294.32(ii) juvenile crime prevention and rehabilitation programs;
294.33(iii) home visitation services by teachers and other professionals;
294.34(iv) developmentally appropriate physical education;
294.35(v) nutrition services;
294.36(vi) primary health and dental care; and
295.1(vii) mental health counseling services;
295.2(5) community involvement:
295.3(i) service and service-learning opportunities;
295.4(ii) adult education, including instruction in English as a second language; and
295.5(iii) homeless prevention services;
295.6(6) positive discipline practices; and
295.7(7) other programming designed to meet school and community needs identified in
295.8the baseline analysis and reflected in the full-service community school plan.
295.9(h) The school leadership team at each school site must develop a full-service
295.10community school plan detailing the steps the school leadership team will take, including:
295.11(1) timely establishment and consistent operation of the school leadership team;
295.12(2) maintenance of attendance records in all programming components;
295.13(3) maintenance of measurable data showing annual participation and the impact
295.14of programming on the participating children and adults;
295.15(4) documentation of meaningful and sustained collaboration between the school
295.16and community stakeholders, including local governmental units, civic engagement
295.17organizations, businesses, and social service providers;
295.18(5) establishment and maintenance of partnerships with institutions, such as
295.19universities, hospitals, museums, or not-for-profit community organizations to further the
295.20development and implementation of community school programming;
295.21(6) ensuring compliance with the district nondiscrimination policy; and
295.22(7) plan for school leadership team development.

295.23    Sec. 24. Minnesota Statutes 2014, section 124D.59, is amended by adding a
295.24subdivision to read:
295.25    Subd. 9. English learner data. When data on English learners are reported for
295.26purposes of educational accountability, English learner data must include all pupils
295.27enrolled in a Minnesota public school course or program who are currently or were
295.28previously counted as an English learner under this section. Reported data must be
295.29disaggregated by currently counted and previously counted English learners.
295.30EFFECTIVE DATE.This section is effective for the 2017-2018 school year and
295.31later.

295.32    Sec. 25. [125B.27] STUDENT-USER PRIVACY IN EDUCATION RIGHTS.
295.33    Subdivision 1. Definitions. (a) The definitions in this subdivision and section 13.32,
295.34subdivision 1, apply to this section.
296.1(b) "Online educational service" means a Web site, online service or application, or
296.2mobile application that a student or the student's parent or legal guardian can access via
296.3the Internet for school purposes. Online educational service includes a cloud computing
296.4service.
296.5(c) "Operator" means, to the extent it is operating in this capacity, a person who
296.6operates an online educational service with actual knowledge that it is used primarily for
296.7school purposes and was designed and marketed for these purposes. Operator includes
296.8a vendor.
296.9(d) "Protected information" means personally identifiable information or materials
296.10or information that is linked to personally identifiable information or materials, in any
296.11media or format that is not publicly available, and:
296.12(1) is created or provided by a student or the student's parent or legal guardian to an
296.13operator in the course of the use of the operator's site, service, or application for school
296.14purposes;
296.15(2) is created or provided by an employee or agent of the school to an operator in the
296.16course of the use of the operator's site, service, or application for school purposes; or
296.17(3) is gathered by an operator through the operation of an online educational service
296.18and personally identifies a student, including but not limited to information in the student's
296.19educational record or e-mail, first and last name, home address, telephone number, e-mail
296.20address, or other information that allows physical or online contact, discipline records,
296.21test results, special education data, juvenile records, grades, evaluations, criminal records,
296.22health records, Social Security number, biometric information, disabilities, socioeconomic
296.23information, food purchases, political affiliations, religious information, text messages,
296.24documents, student identifiers, search activity, photos, voice recordings, or geolocation
296.25information.
296.26(e) "School purposes" means purposes that (1) are directed by or customarily take
296.27place at the direction of the school, teacher, or school district or aid in the administration
296.28of school activities, including instruction in the classroom or at home, administrative
296.29activities, and collaboration between students, school personnel, or parents or legal
296.30guardians, or (2) are for the use and benefit of the school.
296.31(f) "Student" means a student in prekindergarten through grade 12.
296.32(g) "Vendor" means a person who enters into a contract with a school to provide an
296.33online educational service.
296.34(h) "Targeted advertising" means presenting advertisements to a student where
296.35the advertisement is selected based on information obtained or inferred over time from
296.36that student's online behavior, usage of applications, or covered information. It does not
297.1include advertising to a student at an online location based upon that student's current
297.2visit to that location, or in response to that student's request for information or feedback,
297.3without the retention of that student's online activities or requests over time for the
297.4purpose of targeting subsequent ads.
297.5    Subd. 2. Prohibited activities; targeted advertising; creation of student profiles;
297.6sale or unauthorized disclosure of information. (a) An operator must not engage in
297.7any of the following activities:
297.8(1)(i) targeted advertising on the operator's online educational service; or
297.9(ii) targeted advertising on any other site, service, or application when the targeting
297.10of the advertising is based upon information, including protected information and unique
297.11identifiers, that the operator has acquired or created because of the use of that operator's
297.12online educational service;
297.13(2) gather, use, or share information, including persistent unique identifiers, acquired
297.14or created by the operator's online educational service, to create a profile about a student,
297.15except in furtherance of school purposes. "Create a profile" does not include the collection
297.16and retention of account information that remains under the control of the student, the
297.17student's parent or guardian, or kindergarten through grade 12 school;
297.18(3) sell a student's information, including protected information. This prohibition
297.19does not apply to the purchase, merger, or other type of acquisition of an operator by
297.20another person, provided that the operator or successor continues to be subject to this
297.21section with respect to previously acquired student information or to national assessment
297.22providers if the provider secures the express written consent of the parent or student, given
297.23in response to clear and conspicuous notice, solely to provide access to employment,
297.24educational scholarships or financial aid, or postsecondary educational opportunities; or
297.25(4) disclose protected information, unless the disclosure:
297.26(i) is made in furtherance of the educational purpose of the site, service, or
297.27application, provided the recipient of the protected information must not further disclose
297.28the information unless done to allow or improve operability and functionality of the
297.29operator's online educational service;
297.30(ii) is legally required to comply with subdivision 3;
297.31(iii) is made to ensure legal and regulatory compliance, to respond to or participate
297.32in judicial process, or to protect the safety of users or others or the security or integrity
297.33of the site;
297.34(iv) is for a school, educational, or employment purpose requested by the student
297.35or the student's parent or guardian, provided that the information is not used or further
297.36disclosed for any other purposes; or
298.1(v) is made pursuant to a contract between the operator and a service provider. A
298.2contract must prohibit the service provider from using protected information for any
298.3purpose other than providing the contracted service to, or on behalf of, the operator;
298.4prohibit the service provider from disclosing protected information provided by the
298.5operator to third parties; and require the service provider to implement and maintain
298.6reasonable security procedures and practices as provided in subdivision 3.
298.7(b) This subdivision does not prohibit the operator's use of information for
298.8maintaining, developing, supporting, improving, or diagnosing the operator's site, service,
298.9or application.
298.10    Subd. 3. Security procedures and practices. An operator shall:
298.11(1) implement and maintain reasonable security procedures and practices appropriate
298.12to the nature of the protected information designed to protect that information from
298.13unauthorized access, destruction, use, modification, or disclosure; and
298.14(2) delete a student's protected information within a reasonable period of time
298.15and in any case within 60 days if the school requests deletion of data under the control
298.16of the school.
298.17    Subd. 4. Permissible disclosures. Notwithstanding subdivision 2, paragraph (a),
298.18clause (4), an operator may use or disclose protected information of a student under the
298.19following circumstances:
298.20(1) if other provisions of federal or state law require the operator to disclose the
298.21information and the operator complies with the requirements of federal or state law in
298.22protecting and disclosing that information;
298.23(2) as long as no covered information is used for advertising or to create a profile on
298.24the student for purposes other than educational purposes, for legitimate research purposes:
298.25(i) as required by state or federal law and subject to the restrictions under applicable
298.26law; or
298.27(ii) as allowed by state or federal law and in furtherance of educational purposes or
298.28postsecondary educational purposes; and
298.29(3) to a state or local educational agency, including schools and school districts, for
298.30school purposes as permitted by state or federal law.
298.31    Subd. 5. Use of information by operator. This section does not prohibit an
298.32operator from doing any of the following:
298.33(1) using protected information within the operator's site, service, or application or
298.34other sites, services, or applications owned by the operator to improve educational products;
298.35(2) using protected information that is not associated with an identified student to
298.36demonstrate the effectiveness of the operator's products or services, including marketing;
299.1(3) sharing aggregate information that does not directly, indirectly, or in combination
299.2with other information identify a student for the development and improvement of
299.3educational sites, services, or applications;
299.4(4) using recommendation engines to recommend to a student either of the following:
299.5(i) additional content relating to an educational, other learning, or employment
299.6opportunity purpose within an online site, service, or application if the recommendation is
299.7not determined in whole or in part by payment or other consideration from a third party; or
299.8(ii) additional services relating to an educational, other learning, or employment
299.9opportunity purpose within an online site, service, or application if the recommendation is
299.10not determined in whole or in part by payment or other consideration from a third party; or
299.11(5) responding to a student's request for information or for feedback without the
299.12information or response being determined in whole or in part by payment or other
299.13consideration from a third party.
299.14    Subd. 6. Certain activities not affected. (a) This section does not limit the
299.15authority of a law enforcement agency to obtain information from an operator as
299.16authorized by law or pursuant to a court order.
299.17(b) This section does not limit the ability of an operator to use student information,
299.18including protected information, for adaptive learning or customized student learning
299.19purposes.
299.20(c) This section does not apply to general audience Web sites, general audience
299.21online services, general audience online applications, or general audience mobile
299.22applications, even if log-in credentials created for an operator's online educational service
299.23may be used to access those general audience Web sites, services, or applications.
299.24(d) This section does not limit Internet service providers from providing Internet
299.25connectivity to schools or students and their families.
299.26(e) This section does not prohibit an operator of a Web site, online service, online
299.27application, or mobile application from the general marketing of educational products to
299.28parents or legal guardians so long as the marketing is not based on the use of protected
299.29information obtained by the operator through the provision of services governed by this
299.30section.
299.31(f) This section does not impose a duty upon a provider of an electronic store, gateway,
299.32marketplace, or other means of purchasing or downloading software or applications to
299.33review or enforce compliance with this section on those applications or software.
299.34(g) This section does not impose a duty on a provider of an interactive computer
299.35service, as defined in United States Code, title 47, section 230, to review or enforce
299.36compliance with this section by third-party content providers.
300.1(h) This section does not impede the ability of students to download, transfer, export,
300.2or otherwise save or maintain their own data or documents.

300.3    Sec. 26. [136A.1275] GRANTS TO STUDENT TEACHERS IN SHORTAGE
300.4AREAS.
300.5    Subdivision 1. Establishment. The commissioner of the Office of Higher Education
300.6must establish a grant program for student teachers.
300.7    Subd. 2. Eligibility. In order to receive a grant, the applicant must:
300.8(1) be enrolled in a Minnesota teacher preparation program at an eligible institution
300.9that would enable the applicant, upon graduation, to teach in a Minnesota school district
300.10in a shortage area. "Shortage area" has the same meaning given in section 122A.18,
300.11subdivision 4a;
300.12(2) be a teacher candidate completing a student-teacher requirement by teaching in a
300.13shortage area; and
300.14(3) demonstrate financial need in the form and manner prescribed by the
300.15commissioner of the Office of Higher Education.
300.16    Subd. 3. Administration. The office must determine the time and manner of
300.17applications. The office must determine the stipend amount based on the money available
300.18and the number of eligible applicants each academic year.

300.19    Sec. 27. Laws 2012, chapter 263, section 1, as amended by Laws 2014, chapter 312,
300.20article 15, section 24, is amended to read:
300.21    Section 1. INNOVATIVE DELIVERY OF EDUCATION SERVICES AND
300.22SHARING OF SCHOOL OR DISTRICT RESOURCES; PILOT PROJECT.
300.23    Subdivision 1. Establishment; requirements for participation. (a) A pilot project
300.24is established to improve student and, career and college readiness, and school outcomes
300.25by allowing groups of one or more school districts or charter schools to work together or
300.26with postsecondary institutions or employers to:
300.27(1) provide innovative education programs and activities that are consistent with
300.28Minnesota Statutes, section 124D.52, subdivision 9, governing the standard adult high
300.29school diploma, or with Minnesota Statutes, section 124D.085, governing experiential and
300.30applied learning opportunities;
300.31(2) conduct research with rigorous methodology on these innovative education
300.32programs and activities that may include career and college readiness assessments and
300.33interim assessments that comply with the federal Every Student Succeeds Act; and
301.1(3) share district or school and other resources, with the goal of improving students'
301.2career and college readiness as defined under Minnesota Statutes, section 120B.30,
301.3subdivision 1, paragraph (p), and consistent with the requirements of the world's best
301.4workforce under Minnesota Statutes, section 120B.11.
301.5The pilot project may last until June 30, 2018 2021, or for up to five years, whichever is less
301.6earlier, except that innovation partnerships formed during the period of the pilot project
301.7may continue past June 30, 2018 2021, with the agreement of the partnership members.
301.8(b) To participate in this pilot project to improve student and, school, and career and
301.9college readiness outcomes, a group of two or more school districts or charter schools, one
301.10or more school districts and charter schools, one or more school districts or charter schools
301.11and postsecondary institutions, or one or more school districts or charter schools and
301.12employers must collaborate with school staff and, postsecondary faculty, or employees,
301.13as appropriate, to form a partnership, prepare a plan, and complete an application to
301.14participate in a pilot project. A school district partner must receive formal school board
301.15approval to form a partnership and a charter school partner must receive formal approval
301.16from its board of directors to form a partnership. The partnership must develop a plan to
301.17provide challenging programmatic options for students, create professional development
301.18opportunities for educators, increase student engagement and connection and challenging
301.19learning opportunities for students, or demonstrate efficiencies in delivering financial and
301.20other services. The plan evaluations must provide for a rigorous evaluation premised on
301.21returns on investment, program effectiveness, or beat-the-odds analysis and may offer
301.22career and college readiness assessments or other interim assessments.
301.23(c) An interested partnership may structure its application and plan to:
301.24(1) reduce duplicative assessments that educators and psychometricians identify as
301.25less useful for informing instruction or identifying and diagnosing areas where students
301.26require targeted interventions under Minnesota Statutes, section 120B.30, subdivision 1,
301.27paragraphs (c), clause (2), and (d);
301.28(2) establish expectations for career and college readiness under Minnesota Statutes,
301.29section 120B.30, subdivision 1, paragraphs (d) and (g);
301.30(3) use fully adaptive, on and off-grade assessments under Minnesota Statutes,
301.31section 120B.30, subdivision 1;
301.32(4) provide students with predictive information to enable them to successfully
301.33explore and realize their educational, career, and college interests, aptitudes, and
301.34aspirations under Minnesota Statutes, section 120B.125;
302.1(5) use career and college readiness assessments or other interim or formative
302.2assessments highly correlated with the Minnesota comprehensive assessments in reading
302.3and math;
302.4(6) notwithstanding Minnesota Statutes, section 120B.024, allow a student to use a
302.5course in applied mathematics or STEM as an equivalent to algebra II; or
302.6(7) include student assessment data under this section in the district's annual world's
302.7best workforce report, consistent with Minnesota Statutes, section 120B.11, subdivisions 5
302.8and 9, paragraph (a).
302.9Notwithstanding Minnesota Statutes, section 120B.30, or any other law to the
302.10contrary, a participating school district or charter school may use alternative assessments
302.11under this paragraph in place of the Minnesota comprehensive assessments administered
302.12in high school. A participating school district or charter school, whose approved program
302.13under this section lasts longer than four years for a high school student, may count those
302.14students in the four-year graduation rate upon completion of all state and local graduation
302.15requirements even though the student continues in an innovative postsecondary program.
302.16Notwithstanding other law to the contrary, a participating school district or charter school
302.17may take attendance only once per school day so long as the district or charter school
302.18ensures that students in attendance are not otherwise identified as truant. The plan must
302.19establish include:
302.20(1) collaborative educational goals and objectives;
302.21(2) strategies and processes to implement those goals and objectives, including a
302.22budget process with periodic expenditure reviews;
302.23(3) valid and reliable measures to evaluate progress in realizing the goals and
302.24objectives;
302.25(4) an implementation timeline; and
302.26(5) other applicable conditions, regulations, responsibilities, duties, provisions, fee
302.27schedules, and legal considerations needed to fully implement the plan.
302.28A partnership may invite additional districts eligible partners to join the partnership
302.29during the pilot project term after notifying and must notify the commissioner when
302.30additional partners intend to join the partnership. The commissioner may reject the
302.31addition of an eligible partner if the addition causes the state to become out of compliance
302.32with federal requirements.
302.33(c) (d) A school district member or a charter school member of an interested
302.34partnership of interested districts must apply by February 1 of any year submit an
302.35application to the education commissioner in the form and manner the commissioner
302.36determines, consistent with the requirements of this section. The application must contain
303.1the formal approval adopted by the school board in each district or by the charter school
303.2board of directors to participate in the plan.
303.3(d) (e) Notwithstanding other law to the contrary, a participating school district
303.4under this section continues to: receive revenue and maintain its taxation authority; be
303.5organized and governed by an elected school board with general powers under Minnesota
303.6Statutes, section 123B.02; and be subject to employment agreements under Minnesota
303.7Statutes, chapter 122A, and Minnesota Statutes, section 179A.20; and district employees
303.8continue to remain employees of the employing school district.
303.9(f) Participating school district and charter schools must submit a biennial evaluation
303.10by February 1 in each odd-numbered year to the chairs and the ranking minority members
303.11of the legislative committees with primary jurisdiction over kindergarten through grade
303.1212 education and the education commissioner that includes longitudinal data under
303.13Minnesota Statutes, section 127A.70, subdivision 2, paragraph (b), governing SLEDS,
303.14and is premised on return on investment, program effectiveness, or beat-the-odds analysis
303.15in the context of students' career and college readiness.
303.16    Subd. 2. Commissioner's role. Interested groups of school districts partnerships
303.17must submit a completed application to the commissioner by March 1 of any year in the
303.18form and manner determined by the commissioner, consistent with the requirements of this
303.19section. For 2016 only, the school district member or charter school member must submit
303.20an application by July 1. The education commissioner must convene an advisory panel
303.21composed of a teacher appointed by Education Minnesota, a school principal appointed
303.22by the Minnesota Association of Secondary School Principals, a school board member
303.23appointed by the Minnesota School Boards Association, a researcher appointed by the
303.24commissioner of the Office of Higher Education, a researcher appointed by the University
303.25of Minnesota Educational Psychology Department, and a school superintendent appointed
303.26by the Minnesota Association of School Administrators to advise the commissioner on
303.27applicants' qualifications to participate in this pilot project. The commissioner may
303.28select, for the period encompassing the 2016-2017 through 2020-2021 school years, must
303.29authorize up to six eight qualified applicants under subdivision 1 by April 1 of any year to
303.30participate in this pilot project, ensuring seeking an equitable geographical distribution of
303.31project participants to the extent practicable. The commissioner may approve no more
303.32than two partnerships applying to conduct research using alternative measures in place of
303.33the Minnesota comprehensive assessments under subdivision 1, paragraph (c), clause (7),
303.34and those partnerships may include up to three school districts or charter schools. The
303.35commissioner must select authorize only those applicants that fully comply with the
303.36requirements in subdivision 1. The commissioner must terminate a project participant that
304.1fails to effectively implement the goals and objectives contained in its application and
304.2according to its stated timeline.
304.3    Subd. 3. Pilot project evaluation. Participating school districts and charter
304.4schools must submit pilot project data to the education commissioner in the form and
304.5manner determined by the commissioner and the legislature, consistent with this section.
304.6Consistent with Minnesota Statutes, section 13.05, on the duties of state agencies regarding
304.7the use and dissemination of data on individuals, the education commissioner must analyze
304.8the data on participating districts' progress and on participating charter schools' progress
304.9in realizing their educational goals and objectives to work together in providing provide
304.10innovative education programs and activities and sharing share resources to improve
304.11students' career and college readiness. The commissioner must include the analysis of
304.12best practices in a report to the legislative committees with jurisdiction over kindergarten
304.13through grade 12 education finance and policy on the efficacy of this pilot project. The
304.14commissioner shall submit an interim project report by February 1, 2016 March 30, 2019,
304.15and must submit a final report to the legislature by February 1, 2019, recommending
304.16whether or not to continue or expand the pilot project 2022.
304.17EFFECTIVE DATE.This section is effective the day following final enactment
304.18and applies to those applications submitted to the commissioner after that date. Districts
304.19already approved for an innovation zone pilot project may continue to operate under Laws
304.202012, chapter 263, section 1, as amended by Laws 2014, chapter 312, article 15, section 24.

304.21    Sec. 28. Laws 2012, chapter 263, section 2, is amended to read:
304.22    Sec. 2. APPROPRIATION.
304.23$25,000 is appropriated in fiscal year 2013 from the general fund to the commissioner
304.24of education for the review of applicants, selection of participants, and evaluation of
304.25the pilot projects authorized in section 1. The base for the Department of Education is
304.26increased by $25,000 for fiscal year 2014 through fiscal year 2018 2021.
304.27EFFECTIVE DATE.This section is effective the day following final enactment.

304.28    Sec. 29. Laws 2015, First Special Session chapter 3, article 2, section 70, subdivision
304.292, is amended to read:
304.30    Subd. 2. Alternative compensation. For alternative teacher compensation aid
304.31under Minnesota Statutes, section 122A.415, subdivision 4:

305.1 305.2		$	78,331,000 78,656,000	.....	2016
305.3 305.4		$	87,147,000 98,159,000	.....	2017

305.5The 2016 appropriation includes $7,766,000 for 2015 and $70,565,000 $70,890,000
305.6for 2016.
305.7The 2017 appropriation includes $7,840,000 $7,876,000 for 2016 and $79,307,000
305.8$90,283,000 for 2017.

305.9    Sec. 30. Laws 2015, First Special Session chapter 3, article 2, section 70, subdivision
305.103, is amended to read:
305.11    Subd. 3. Achievement and integration aid. For achievement and integration aid
305.12under Minnesota Statutes, section 124D.862:

305.13 305.14		$	65,539,000 65,439,000	.....	2016
305.15 305.16		$	68,745,000 69,372,000	.....	2017

305.17The 2016 appropriation includes $6,382,000 for 2015 and $59,157,000 $59,057,000
305.18for 2016.
305.19The 2017 appropriation includes $6,573,000 $6,561,000 for 2016 and $62,172,000
305.20$62,811,000 for 2017.

305.21    Sec. 31. Laws 2015, First Special Session chapter 3, article 2, section 70, subdivision
305.226, is amended to read:
305.23    Subd. 6. Reading Corps. For grants to ServeMinnesota for the Minnesota Reading
305.24Corps under Minnesota Statutes, section 124D.42, subdivision 8:

305.25		$	6,125,000	.....	2016
305.26 305.27		$	6,125,000 9,125,000	.....	2017

305.28Any balance in the first year does not cancel but is available in the second year. The
305.29base appropriation for fiscal year 2018 and later years is $5,625,000.

305.30    Sec. 32. Laws 2015, First Special Session chapter 3, article 2, section 70, subdivision
305.319, is amended to read:
305.32    Subd. 9. Concurrent enrollment program. For concurrent enrollment programs
305.33under Minnesota Statutes, section 124D.091:

306.1		$	$4,000,000	.....	2016
306.2 306.3		$	$4,000,000 6,250,000	.....	2017

306.4If the appropriation is insufficient, the commissioner must proportionately reduce
306.5the aid payment to each district.
306.6Any balance in the first year does not cancel but is available in the second year. The
306.7base for this appropriation in fiscal year 2018 is $5,000,000.

306.8    Sec. 33. Laws 2015, First Special Session chapter 3, article 2, section 70, subdivision
306.912, is amended to read:
306.10    Subd. 12. Collaborative urban educator. For the collaborative urban educator
306.11grant program:

306.12		$	780,000	.....	2016
306.13 306.14		$	780,000 1,090,000	.....	2017

306.15Grants shall be awarded in equal amounts: $195,000 $272,500 each year is for the
306.16Southeast Asian teacher program at Concordia University, St. Paul; $195,000 $272,500
306.17each year is for the collaborative urban educator program at the University of St. Thomas;
306.18$195,000 $272,500 each year is for the Center for Excellence in Urban Teaching at
306.19Hamline University; and $195,00 $272,500 each year is for the East Africa Student to
306.20Teacher program at Augsburg College.
306.21Any balance in the first year does not cancel but is available in the second year.
306.22Each institution shall prepare for the legislature, by January 15 of each year, a
306.23detailed report regarding the funds used. The report must include the number of teachers
306.24prepared as well as the diversity for each cohort of teachers produced. The report must
306.25also include the graduation rate for each cohort of teacher candidates, the placement rate
306.26for each graduating cohort of teacher candidates, and the retention rate for each graduating
306.27cohort of teacher candidates, among other program outcomes.

306.28    Sec. 34. Laws 2015, First Special Session chapter 3, article 2, section 70, subdivision
306.2915, is amended to read:
306.30    Subd. 15. Museums and Education Centers. For grants to museums and education
306.31centers:

306.32		$	351,000	.....	2016
306.33 306.34		$	351,000 701,000	.....	2017

307.1(a) $260,000 each year is in fiscal year 2016 and $560,000 in fiscal year 2017 are for
307.2the Minnesota Children's Museum. The base amount in fiscal year 2018 is $260,000.
307.3(b) $50,000 each year is for the Duluth Children's Museum.
307.4(c) $41,000 each year is for the Minnesota Academy of Science.
307.5(d) $50,000 in fiscal year 2017 and later is for the Headwaters Science Center for
307.6hands-on science, technology, engineering, and math (STEM) education.
307.7Any balance in the first year does not cancel but is available in the second year.
307.8The base in fiscal year 2018 is $401,000.

307.9    Sec. 35. Laws 2015, First Special Session chapter 3, article 2, section 70, subdivision
307.1019, is amended to read:
307.11    Subd. 19. Full-service community schools. For full-service community schools
307.12under Minnesota Statutes, section 124D.231:

307.13		$	250,000	.....	2016
307.14 307.15		$	250,000 2,450,000	.....	2017

307.16    This is a onetime appropriation. Up to $100,000 each year is for administration of this
307.17program. Any balance in the first year does not cancel but is available in the second year.

307.18    Sec. 36. Laws 2015, First Special Session chapter 3, article 2, section 70, subdivision
307.1921, is amended to read:
307.20    Subd. 21. American Indian teacher preparation grants. For joint grants to assist
307.21American Indian people to become teachers under Minnesota Statutes, section 122A.63:

307.22		$	190,000	.....	2016
307.23 307.24		$	190,000 1,250,000	.....	2017

307.25    Sec. 37. Laws 2015, First Special Session chapter 3, article 2, section 70, subdivision
307.2624, is amended to read:
307.27    Subd. 24. Race 2 Reduce. For grants to support expanded Race 2 Reduce water
307.28conservation programming in Minnesota schools:

307.29		$	81,000	.....	2016
307.30 307.31		$	69,000 219,000	.....	2017

307.32In the first year, $28,000 is for H2O for Life; $38,000 is for Independent School
307.33District No. 624, White Bear Lake; and $15,000 is for Independent School District No.
307.34832, Mahtomedi. In the second year, $32,000 $102,000 is for H2O for Life; $22,000
308.1$70,000 is for Independent School District No. 624, White Bear Lake; and $15,000
308.2$47,000 is for Independent School District No. 832, Mahtomedi.
308.3Any balance in the first year does not cancel but is available in the second year. The
308.4base appropriation for fiscal year 2018 and later is $0.

308.5    Sec. 38. Laws 2015, First Special Session chapter 3, article 2, section 70, subdivision
308.626, is amended to read:
308.7    Subd. 26. Education partnership pilots. (a) For education partnership pilot grants:

308.8		$	501,000	.....	2016
308.9 308.10		$	501,000 531,000	.....	2017

308.11(b) Of this amount, $167,000 in fiscal year 2016 and $177,000 in each fiscal year
308.122017 is for the Northfield Healthy Community Initiative for a pilot site in Northfield;
308.13$167,000 in fiscal year 2016 and $177,000 in each fiscal year 2017 is for the Jones Family
308.14Foundation for a pilot site in Red Wing; and $167,000 in fiscal year 2016 and $177,000 in
308.15each fiscal year 2017 is for Independent School District No. 742, St. Cloud, for a pilot
308.16site in St. Cloud. Each partnership pilot program shall support community collaborations
308.17focused on academic achievement and youth development, use a comprehensive and
308.18data-driven approach to increase student success, and measure outcomes, such as
308.19kindergarten readiness, reading proficiency at third grade, high school graduation, and
308.20college and career readiness. By February 15, 2016, and by February 15 of every
308.21subsequent even-numbered year, each partnership pilot grant recipient shall submit to
308.22the chairs and ranking minority members of the legislative committees with primary
308.23jurisdiction over kindergarten through grade 12 education a report describing the activities
308.24funded by the grant, changes in outcome measures attributable to the grant-funded
308.25activities, and the recipient's program plan for the following year.
308.26    This is a onetime appropriation.
308.27    (c) The base for this program is $501,000 for fiscal year 2018 and later. Annual
308.28grants of $167,000 shall be awarded to each grant recipient named in paragraph (b).
308.29    (d) Any balance from the first year may carry forward into the second year.

308.30    Sec. 39. Laws 2015, First Special Session chapter 3, article 3, section 15, subdivision
308.313, is amended to read:
308.32    Subd. 3. ACT test College entrance examination reimbursement. To reimburse
308.33districts for students who qualify under Minnesota Statutes, section 120B.30, subdivision
308.341 , paragraph (e), for onetime payment of their ACT college entrance examination fee:

309.1		$	3,011,000	.....	2016
309.2		$	3,011,000	.....	2017

309.3The Department of Education must reimburse districts for their onetime payments
309.4on behalf of students. Any balance in the first year does not cancel but is available in the
309.5second year. This appropriation is available until October 1, 2017. For examinations taken
309.6before July 1, 2016, the department may reimburse districts only for ACT examination fees.

309.7    Sec. 40. Laws 2015, First Special Session chapter 3, article 10, section 3, subdivision
309.86, is amended to read:
309.9    Subd. 6. Northside Achievement Zone. For a grant to the Northside Achievement
309.10Zone:

309.11		$	1,200,000	.....	2016
309.12 309.13		$	1,200,000 1,210,000	.....	2017

309.14Funds appropriated in this section are to reduce multigenerational poverty and the
309.15educational achievement gap through increased enrollment of families within the zone,
309.16and may be used for Northside Achievement Zone programming and services consistent
309.17with federal Promise Neighborhood program agreements and requirements.
309.18The base for this program is $1,200,000 for fiscal year 2018 and later.

309.19    Sec. 41. Laws 2015, First Special Session chapter 3, article 10, section 3, subdivision
309.207, is amended to read:
309.21    Subd. 7. St. Paul Promise Neighborhood. For a grant to the St. Paul Promise
309.22Neighborhood:

309.23		$	1,200,000	.....	2016
309.24 309.25		$	1,200,000 1,210,000	.....	2017

309.26Funds appropriated in this section are to reduce multigenerational poverty and the
309.27educational achievement gap through increased enrollment of families within the zone,
309.28and may be used for St. Paul Promise Neighborhood programming and services consistent
309.29with federal Promise Neighborhood program agreements and requirements.
309.30The base for this program is $1,200,000 for fiscal year 2018 and later.

309.31    Sec. 42. AGRICULTURAL EDUCATOR GRANTS.
310.1    Subdivision 1. Grant program established. A grant program is established to
310.2support school districts in paying agricultural education teachers for work over the
310.3summer with high school students in extended projects.
310.4    Subd. 2. Application. The commissioner of education shall develop the form and
310.5method for applying for the grants. The commissioner shall develop criteria for determining
310.6the allocation of the grants, including appropriate goals for the use of the grants.
310.7    Subd. 3. Grant awards. Grant funding under this section must be matched
310.8by funding from the school district for the agricultural education teacher's summer
310.9employment. Grant funding for each teacher is limited to the one-half share of 40 working
310.10days.
310.11    Subd. 4. Reports. School districts that receive grant funds shall report to the
310.12commissioner of education no later than December 31 of each year regarding the number
310.13of teachers funded by the grant program and the outcomes compared to the goals
310.14established in the grant application. The Department of Education shall develop the
310.15criteria necessary for the reports.

310.16    Sec. 43. EXCELLENCE IN TEACHING INCENTIVE GRANTS.
310.17The Board of Teaching shall award a onetime incentive grant of $2,000 to any
310.18Minnesota teacher who achieves National Board Certification after June 30, 2016, as long
310.19as funds are available. A teacher may apply for a grant in the form and manner determined
310.20by the Board of Teaching. The grants must be awarded on a first-come, first-served basis.

310.21    Sec. 44. OUTDOOR PLACE-BASED EDUCATION ADVISORY GROUP.
310.22    Subdivision 1. Definitions. For purposes of this section, "outdoor place-based
310.23education" means the process of using the local community and outdoor environment as
310.24a starting point to teach concepts in language arts, mathematics, social studies, science,
310.25history, and other subjects across the curriculum.
310.26    Subd. 2. Advisory group creation. The outdoor place-based education advisory
310.27group consists of the following 14 members:
310.28(1) the commissioner or director of the following agencies or their designees:
310.29(i) the Department of Education;
310.30(ii) the Department of Natural Resources; and
310.31(iii) the Minnesota Historical Society;
310.32(2) 11 public members who have demonstrated an interest in outdoor skills and
310.33education:
310.34(i) one member appointed by Education Minnesota;
311.1(ii) one member appointed by the Minnesota Rural Education Association;
311.2(iii) one member appointed by the Minnesota School Boards Association;
311.3(iv) one member appointed by the Minnesota Association of Charter Schools;
311.4(v) one member appointed by the Parks and Trails Council of Minnesota;
311.5(vi) one public member appointed by the majority leader of the senate;
311.6(vii) one public member appointed by the minority leader of the senate;
311.7(viii) one public member appointed by the speaker of the house;
311.8(ix) one public member appointed by the minority leader of the house of
311.9representatives; and
311.10(x) two public members appointed by the governor.
311.11    Subd. 3. Advisory group duties; report required. (a) The advisory group must
311.12develop recommendations for the design and implementation of a statewide outdoor
311.13place-based education plan for students in prekindergarten through grade 12. The advisory
311.14group must report proposed recommendations to the chairs and ranking minority members
311.15of the legislative committees with primary jurisdiction over kindergarten through grade 12
311.16education policy by February 15, 2017.
311.17(b) The report required under this subdivision must, at a minimum:
311.18(1) recommend strategies for the integration of outdoor place-based education in
311.19each of the subject areas required for statewide accountability under Minnesota Statutes,
311.20section 120B.021, subdivision 1, including any staff development required to support
311.21such integration;
311.22(2) identify grades or grade ranges in which outdoor place-based education may
311.23have the greatest impact, given limited staff and financial resources;
311.24(3) recommend an assessment instrument that districts may use in order to evaluate
311.25the impact of outdoor place-based education; and
311.26(4) estimate the financial and human resources required to implement the
311.27recommendations on a statewide basis.
311.28    Subd. 4. Administrative provisions. (a) The commissioner of education or the
311.29commissioner's designee must convene the initial meeting of the advisory group by
311.30September 15, 2016. Upon request of the advisory group, the commissioner must provide
311.31meeting space and administrative services for the advisory group. The members of the
311.32advisory group must elect a chair or cochairs from the members of the advisory group at
311.33the initial meeting.
311.34(b) Public members of the advisory group serve without compensation, but may be
311.35reimbursed for travel expenses.
312.1(c) The advisory group expires February 15, 2017, or upon submission of the report
312.2required under this section, whichever is earlier.
312.3    Subd. 5. Deadline for appointments and designations. The appointments and
312.4designations authorized under this section must be completed by August 15, 2016.
312.5EFFECTIVE DATE.This section is effective the day following final enactment.

312.6    Sec. 45. PARAPROFESSIONAL PATHWAY TO TEACHER LICENSURE.
312.7The commissioner of education must establish a grant program for school districts
312.8to design, establish, and maintain a paraprofessional pathway to teacher licensure or
312.9a grow your own new teacher program. The programs must allow a current school
312.10district paraprofessional to pursue their teaching license while still being employed by
312.11the school district. A school district may apply in the form and manner prescribed by
312.12the commissioner.

312.13    Sec. 46. SUPPORT OUR STUDENTS GRANT PROGRAM.
312.14    Subdivision 1. Definitions. For the purposes of this section, the following terms
312.15have the meanings given them:
312.16(1) "student support services personnel" includes individuals licensed to serve as a
312.17school counselor, school psychologist, school social worker, school nurse, or chemical
312.18dependency counselor in Minnesota; and
312.19(2) "new position" means a student support services personnel full-time or part-time
312.20position not under contract by a school at the start of the 2015-2016 school year.
312.21    Subd. 2. Purpose. The purpose of the support our students grant program is to:
312.22(1) address shortages of student support services personnel within Minnesota schools;
312.23(2) decrease caseloads for existing student support services personnel to ensure
312.24effective services;
312.25(3) ensure that students receive effective academic guidance and integrated and
312.26comprehensive services to improve kindergarten through grade 12 school outcomes and
312.27career and college readiness;
312.28(4) ensure that student support services personnel serve within the scope and practice
312.29of their training and licensure;
312.30(5) fully integrate learning supports, instruction, and school management within a
312.31comprehensive approach that facilitates interdisciplinary collaboration; and
312.32(6) improve school safety and school climate to support academic success and
312.33career and college readiness.
313.1    Subd. 3. Grant eligibility and application. (a) A school district, charter school,
313.2intermediate school district, or other cooperative unit is eligible to apply for a six-year
313.3matching grant under this section.
313.4(b) The commissioner of education shall specify the form and manner of the grant
313.5application. In awarding grants, the commissioner must give priority to schools in
313.6which student support services personnel positions do not currently exist. To the extent
313.7practicable, the commissioner must award grants equally between applicants in metro
313.8counties and nonmetro counties. Additional criteria must include at least the following:
313.9(1) existing student support services personnel caseloads;
313.10(2) school demographics;
313.11(3) Title 1 revenue;
313.12(4) Minnesota student survey data;
313.13(5) graduation rates; and
313.14(6) postsecondary completion rates.
313.15    Subd. 4. Allowed uses; match requirements. A grant under this section must be
313.16used to hire a new position. A school that receives a grant must match the grant with local
313.17funds in each year of the grant. In each of the first four years of the grant, the local match
313.18equals $1 for every $1 awarded in the same year. In years five and six of the grant, the
313.19local match equals $3 for every $1 awarded in the same year. The local match may not
313.20include federal reimbursements attributable to the new position.
313.21    Subd. 5. Report required. By February 1 following any fiscal year in which it
313.22received a grant, a school must submit a written report to the commissioner indicating
313.23how the new positions affected two or more of the following measures:
313.24(1) school climate;
313.25(2) attendance rates;
313.26(3) academic achievement;
313.27(4) career and college readiness; and
313.28(5) postsecondary completion rates.

313.29    Sec. 47. TEACHER DEVELOPMENT AND EVALUATION AID.
313.30(a) For fiscal year 2017 only, teacher development and evaluation aid for a school
313.31district, intermediate school district, educational cooperative, education district, or charter
313.32school with any school site that does not have an alternative professional pay system
313.33agreement under Minnesota Statutes, section 122A.414, subdivision 2, equals $400.68
313.34times the number of full-time equivalent teachers employed on October 1 of the previous
313.35school year in each school site without an alternative professional pay system under
314.1Minnesota Statutes, section 122A.414, subdivision 2. Except for charter schools, aid under
314.2this section must be reserved for teacher development and evaluation activities consistent
314.3with Minnesota Statutes, section 122A.40, subdivision 8, or 122A.41, subdivision 5.
314.4For the purposes of this section, "teacher" has the meaning given in Minnesota Statutes,
314.5section 122A.40, subdivision 1, or 122A.41, subdivision 1.
314.6(b) Notwithstanding paragraph (a), the state total teacher development and evaluation
314.7aid entitlement must not exceed $10,000,000 for fiscal year 2017. The commissioner must
314.8limit the amount of aid under this section so as not to exceed this limit.
314.9(c) One hundred percent of the teacher development and evaluation aid must be
314.10paid in fiscal year 2017.

314.11    Sec. 48. APPROPRIATIONS.
314.12    Subdivision 1. Department of Education. The sums indicated in this section are
314.13appropriated from the general fund to the Department of Education for the fiscal years
314.14designated.
314.15    Subd. 2. Teacher development and evaluation. For teacher development and
314.16evaluation aid:

314.17

$

10,000,000

.....

2017

314.18This is a onetime appropriation.
314.19    Subd. 3. Support our students grants. For support our students grants:

314.20

$

13,100,000

.....

2017

314.21This is a onetime appropriation.
314.22Notwithstanding Minnesota Statutes, section 16A.28, this appropriation is available
314.23until June 30, 2023. The commissioner may not allot more than $2,600,000 of this
314.24appropriation before July 1, 2019. Up to $100,000 of this appropriation may be retained
314.25by the commissioner for administration of the grant program. Any balance remaining after
314.26June 30, 2023, shall cancel to the general fund.
314.27    Subd. 4. Paraprofessional pathway to teacher licensure. For grants to school
314.28districts for grow your own new teacher programs:

314.29

$

2,250,000

.....

2017

314.30The base in fiscal year 2018 is $2,250,000.
314.31    Subd. 5. Minnesota Council on Economic Education. For a grant to the
314.32Minnesota Council on Economic Education to provide staff development to teachers
315.1for the implementation of the state graduation standards in learning areas relating to
315.2economic education:

315.3

$

250,000

.....

2017

315.4The commissioner, in consultation with the council, shall develop expected results
315.5of staff development, eligibility criteria for participants, an evaluation procedure, and
315.6guidelines for direct and in-kind contributions by the council.
315.7This is a onetime appropriation.
315.8    Subd. 6. Education Innovation Partners Cooperative Center. For a matching
315.9grant to Education Innovation Partners Cooperative Center, No. 6091-50, to provide
315.10research-based professional development services, on-site training, and leadership
315.11coaching to teachers and other school staff:

315.12

$

500,000

.....

2017

315.13A grant under this subdivision must be matched with money or in-kind contributions
315.14from nonstate sources. This is a onetime appropriation.
315.15    Subd. 7. Teacher-governed school grants. For grants to teacher-governed schools
315.16under Minnesota Statutes, section 123B.04, subdivision 2a:

315.17

$

500,000

.....

2017

315.18This is a onetime appropriation.
315.19    Subd. 8. Outdoor place-based education program. For an outdoor place-based
315.20education literature review:

315.21

$

35,000

.....

2017

315.22The commissioner, in collaboration with outdoor place-based education providers,
315.23shall provide for a literature review of the existing evidence of the effect of outdoor
315.24place-based education on educational outcomes and development of core competencies
315.25that lead to career and college success and deliver the literature review to the outdoor
315.26place-based education advisory group no later than November 15, 2016. This is a onetime
315.27appropriation. For purposes of this subdivision, "outdoor place-based education" means
315.28the process of using the local community and outdoor environment as a starting point to
315.29teach concepts in language arts, mathematics, social studies, science, history, and other
315.30subjects across the curriculum.
315.31    Subd. 9. Outdoor place-based education advisory group. For the outdoor
315.32place-based education advisory group:

316.1

$

50,000

.....

2017

316.2This is a onetime appropriation.
316.3    Subd. 10. Staff development aid for cooperative units. For payment of staff
316.4development aid to intermediate school districts and other cooperative units under
316.5Minnesota Statutes, section 122A.61, subdivision 1a:

316.6

$

1,493,000

.....

2017

316.7    Subd. 11. Student teachers in shortage areas. For transfer to the commissioner of
316.8the Office of Higher Education for the purpose of providing grants to student teachers in
316.9shortage areas under Minnesota Statutes, section 136A.1275:

316.10

$

2,000,000

.....

2017

316.11Any balance in the first year does not cancel but is available in the second year.
316.12    Subd. 12. Singing-based pilot program to improve student reading. (a) For a
316.13grant to pilot a research-supported, computer-based educational program that uses singing
316.14to improve the reading ability of students in grades three to five:

316.15

$

300,000

.....

2017

316.16(b) The commissioner of education shall award a grant to a 501(c)(3) nonprofit
316.17organization to implement in at least three Minnesota school districts, charter schools,
316.18or school sites, a research-supported, computer-based educational program that uses
316.19singing to improve the reading ability of students in grades three to five. The grantee shall
316.20be responsible for selecting participating school sites; providing any required hardware
316.21and software, including software licenses, for the duration of the grant period; providing
316.22technical support, training, and staff to install required project hardware and software;
316.23providing on-site professional development and instructional monitoring and support for
316.24school staff and students; administering pre- and post-intervention reading assessments;
316.25evaluating the impact of the intervention; and other project management services as
316.26required. To the extent practicable, the grantee must select participating schools in urban,
316.27suburban, and greater Minnesota, and give priority to schools in which a high proportion
316.28of students do not read proficiently at grade level and are eligible for free or reduced-price
316.29lunch.
316.30(c) By February 15, 2017, the grantee must submit a report detailing expenditures
316.31and outcomes of the grant to the commissioner of education and the chairs and
316.32ranking minority members of the legislative committees with primary jurisdiction over
316.33kindergarten through grade 12 education policy and finance.
317.1(d) This is a onetime appropriation.
317.2    Subd. 13. Agricultural educator grants. For agricultural educator grants:

317.3

$

250,000

.....

2017

317.4This is a onetime appropriation.
317.5    Subd. 14. Grants for vision therapy pilot project. (a) For a grant to Independent
317.6School District No. 12, Centennial, to implement a neuro-optometric vision therapy
317.7pilot project:

317.8

$

200,000

.....

2017

317.9This is a onetime appropriation and is available until June 30, 2019.
317.10(b) In each year of the pilot project, second and third grade students identified by
317.11a set of criteria created by the district shall be admitted into the pilot study. Identified
317.12students shall have a comprehensive eye examination with written standard requirements
317.13of testing. Students identified with a diagnosis of convergence insufficiency must undergo
317.14a vision efficiency evaluation by a licensed optometrist or ophthalmologist trained in the
317.15evaluation of learning-related vision problems. The results of this examination shall
317.16determine whether a student will qualify for neuro-optometric vision therapy funded by
317.17the grant. The parent or guardian of a student who qualifies for the pilot program under
317.18this paragraph may submit a written notification to the school opting the student out
317.19of the program. The district must establish guidelines to provide quality standards and
317.20measures to ensure an appropriate diagnosis and treatment plan that is consistent with the
317.21convergence insufficiency treatment trial study.
317.22(c) The commissioner of education must provide for an evaluation of the pilot
317.23project and make a report to the legislative committees with jurisdiction over kindergarten
317.24through grade 12 education policy and finance by January 15, 2020.

317.25ARTICLE 14

317.26CHARTER SCHOOLS

317.27    Section 1. Minnesota Statutes 2015 Supplement, section 124E.10, is amended by
317.28adding a subdivision to read:
317.29    Subd. 7. School closures. (a) Upon the final decision to close a charter school,
317.30whether by voluntary action of the charter school's board of directors, nonrenewal
317.31or termination of the charter contract by the authorizer, or termination of the charter
317.32contract by the commissioner, the board of directors shall appoint a school closure trustee,
317.33approved by the authorizer, within 15 business days of the final decision. The board of
318.1directors or the authorizer may require the trustee to post a bond, in a sum and nature
318.2reflective of the school's current condition and situation.
318.3(b) The trustee must be a resident of Minnesota, possess a bachelor's or postgraduate
318.4degree in accounting, law, nonprofit management, educational administration, or other
318.5appropriate field, and have at least five years of work experience in their degree area. The
318.6trustee must submit to a state and federal criminal background check, must not have
318.7been convicted of a felony or other crime involving moral turpitude, and must not have
318.8been found liable in a civil court for fraud, breach of fiduciary duty, civil theft, or similar
318.9misconduct. The trustee must not be under investigation or pending criminal prosecution
318.10for a felony or other crime. The trustee must not have a history of wage garnishment by
318.11the Internal Revenue Service or the state and must not have filed for bankruptcy.
318.12(c) The trustee must not have been an employee or contractor of the charter school
318.13during the previous five years and must not have an immediate family member who is
318.14an employee or contractor of the charter school or who serves on the charter school's
318.15board of directors. The trustee must be independent and have no material interest adverse
318.16to the school.
318.17(d) The trustee shall have the responsibility to activate and execute the closure plan
318.18for the charter school outlined in the school's charter contract, including the transfer
318.19of student records required by subdivision 6, and the reporting of financial and student
318.20data to the department necessary for the release of final aid payments under section
318.21124E.25, subdivision 1, paragraph (b). Upon the appointment of the trustee, the trustee
318.22must approve all school expenditures before payment and shall be a required signatory
318.23on all school accounts and payments made by the school. The trustee has the authority
318.24to void and seek reimbursement of any and all extraordinary payments of the school
318.25to individuals, contractors, or corporations made within 90 business days of the final
318.26decision to close. If during the closure process it is determined by the charter school's
318.27board of directors or the authorizer that the trustee is not performing the closure duties in
318.28an efficient and effective manner, the authorizer may appoint a new trustee.
318.29(e) The trustee shall be entitled to immunity provided by common law for acts or
318.30omissions within the scope of the trustee's appointment. The trustee is not exempt from an
318.31illegal or criminal act, nor any act that is a result of malfeasance or misfeasance.
318.32(f) A charter school closure fund shall be established and managed by the Department
318.33of Education. The Department of Education may charge the fund a management fee
318.34commensurate with the annual activity in the fund. The Department of Education must
318.35issue an annual report on the income and expenditures of the fund by September 30 to all
318.36charter schools. The fund shall be financed by a per capita pupil fee paid by all charter
319.1schools. Until the fund reaches a cap of $200,000, the per capita pupil fee shall be $1 per
319.2pupil annually. Upon the fund reaching the $200,000 cap, the annual per capita pupil fee
319.3shall equal the per pupil amount needed to maintain the fund at $200,000. The Department
319.4of Education shall have the power to deduct the annual fee from a charter school aid
319.5payment in the month of February based on the number of pupils enrolled in charter
319.6schools on October 1 of the previous year, and transfer the funding to the charter school
319.7closure fund. When an authorizer ceases to authorize schools, the authorizer shall transfer
319.8any remaining balance from authorizer fees to the fund.
319.9(g) Funds from the charter school closure fund may only be authorized and used for
319.10the following expenses: the cost of the external audits necessary for the school closure
319.11process; the cost of liability insurance for the school corporation during the closure
319.12process; legal costs for the dissolution of the school corporation; and the trustee's fee,
319.13negotiated upon appointment. The charter school closure fund shall not be used for any
319.14other expenses related to the closed school and may only be requested after all other
319.15school funds and assets of the closed school have been expended. No more than $70,000
319.16may be expended from the fund for an individual school closure process. The trustee may
319.17request funding to cover the authorized expenditures, except for the trustee's fee, which
319.18must be requested by the charter school's board of directors or the authorizer if the board
319.19of directors is nonoperative.
319.20(h) If a charter school board of directors files for bankruptcy upon the final decision
319.21to close the school, the bankruptcy trustee appointed by the bankruptcy court shall have
319.22the authority to activate and execute the closure plan in the charter school contract.

319.23    Sec. 2. Minnesota Statutes 2014, section 127A.45, subdivision 6a, is amended to read:
319.24    Subd. 6a. Cash flow adjustment. The board of directors of any charter school
319.25serving fewer than 200 students where the percent of students eligible for special
319.26education services equals at least 90 percent of the charter school's total enrollment
319.27eligible special education charter school under section 124E.21, subdivision 2, may
319.28request that the commissioner of education accelerate the school's cash flow under this
319.29section. The commissioner must approve a properly submitted request within 30 days of
319.30its receipt. The commissioner must accelerate the school's regular special education aid
319.31payments according to the schedule in the school's request and modify the payments to the
319.32school under subdivision 3 accordingly. A school must not receive current payments of
319.33regular special education aid exceeding 90 percent of its estimated aid entitlement for the
319.34fiscal year. The commissioner must delay the special education aid payments to all other
319.35school districts and charter schools in proportion to each district or charter school's total
320.1share of regular special education aid such that the overall aid payment savings from the
320.2aid payment shift remains unchanged for any fiscal year.
320.3EFFECTIVE DATE.This section is effective for revenue in fiscal year 2017 and
320.4later.

320.5    Sec. 3. Laws 2015, First Special Session chapter 3, article 4, section 4, the effective
320.6date, is amended to read:
320.7EFFECTIVE DATE.This section is effective the day following final enactment
320.8except the provision under paragraph (g) allowing prekindergarten deaf or hard-of-hearing
320.9pupils to enroll in a charter school is effective only if the commissioner of education
320.10determines there is no added cost attributable to the pupil for the 2016-2017 school year
320.11and later.
320.12EFFECTIVE DATE.This section is effective the day following final enactment.

320.13    Sec. 4. Laws 2015, First Special Session chapter 3, article 4, section 9, subdivision 2,
320.14is amended to read:
320.15    Subd. 2. Charter school building lease aid. For building lease aid under Minnesota
320.16Statutes, section 124D.11, subdivision 4 124E.22:

320.17 320.18		$	66,787,000 63,540,000	.....	2016
320.19 320.20		$	73,603,000 70,132,000	.....	2017

320.21The 2016 appropriation includes $6,032,000 for 2015 and $60,755,000 $57,508,000
320.22for 2016.
320.23The 2017 appropriation includes $6,750,000 $6,389,000 for 2016 and $66,853,000
320.24$63,743,000 for 2017.

320.25ARTICLE 15

320.26SPECIAL EDUCATION

320.27    Section 1. Minnesota Statutes 2015 Supplement, section 125A.08, is amended to read:
320.28125A.08 INDIVIDUALIZED EDUCATION PROGRAMS.
320.29(a) At the beginning of each school year, each school district shall have in effect, for
320.30each child with a disability, an individualized education program.
320.31(b) As defined in this section, every district must ensure the following:
321.1(1) all students with disabilities are provided the special instruction and services
321.2which are appropriate to their needs. Where the individualized education program team
321.3has determined appropriate goals and objectives based on the student's needs, including the
321.4extent to which the student can be included in the least restrictive environment, and where
321.5there are essentially equivalent and effective instruction, related services, or assistive
321.6technology devices available to meet the student's needs, cost to the district may be among
321.7the factors considered by the team in choosing how to provide the appropriate services,
321.8instruction, or devices that are to be made part of the student's individualized education
321.9program. The individualized education program team shall consider and may authorize
321.10services covered by medical assistance according to section 256B.0625, subdivision 26.
321.11When a school district makes a determination of other health disability under Minnesota
321.12Rules, part 3525.1335, subparts 1, and 2, item A, subitem (1), the student's individualized
321.13education program team must seek written and signed documentation by a licensed health
321.14provider within the scope of the provider's practice of a medically diagnosed chronic or
321.15acute health condition. The student's needs and the special education instruction and
321.16services to be provided must be agreed upon through the development of an individualized
321.17education program. The program must address the student's need to develop skills to
321.18live and work as independently as possible within the community. The individualized
321.19education program team must consider positive behavioral interventions, strategies,
321.20and supports that address behavior needs for children. During grade 9, the program
321.21must address the student's needs for transition from secondary services to postsecondary
321.22education and training, employment, community participation, recreation, and leisure
321.23and home living. In developing the program, districts must inform parents of the full
321.24range of transitional goals and related services that should be considered. The program
321.25must include a statement of the needed transition services, including a statement of the
321.26interagency responsibilities or linkages or both before secondary services are concluded;
321.27(2) children with a disability under age five and their families are provided special
321.28instruction and services appropriate to the child's level of functioning and needs;
321.29(3) children with a disability and their parents or guardians are guaranteed procedural
321.30safeguards and the right to participate in decisions involving identification, assessment
321.31including assistive technology assessment, and educational placement of children with a
321.32disability;
321.33(4) eligibility and needs of children with a disability are determined by an initial
321.34evaluation or reevaluation, which may be completed using existing data under United
321.35States Code, title 20, section 33, et seq.;
322.1(5) to the maximum extent appropriate, children with a disability, including those
322.2in public or private institutions or other care facilities, are educated with children who
322.3are not disabled, and that special classes, separate schooling, or other removal of children
322.4with a disability from the regular educational environment occurs only when and to the
322.5extent that the nature or severity of the disability is such that education in regular classes
322.6with the use of supplementary services cannot be achieved satisfactorily;
322.7(6) in accordance with recognized professional standards, testing and evaluation
322.8materials, and procedures used for the purposes of classification and placement of children
322.9with a disability are selected and administered so as not to be racially or culturally
322.10discriminatory; and
322.11(7) the rights of the child are protected when the parents or guardians are not known
322.12or not available, or the child is a ward of the state.
322.13(c) For all paraprofessionals employed to work in programs whose role in part is
322.14to provide direct support to students with disabilities, the school board in each district
322.15shall ensure that:
322.16(1) before or beginning at the time of employment, each paraprofessional must
322.17develop sufficient knowledge and skills in emergency procedures, building orientation,
322.18roles and responsibilities, confidentiality, vulnerability, and reportability, among other
322.19things, to begin meeting the needs, especially disability-specific and behavioral needs, of
322.20the students with whom the paraprofessional works;
322.21(2) annual training opportunities are required to enable the paraprofessional to
322.22continue to further develop the knowledge and skills that are specific to the students with
322.23whom the paraprofessional works, including understanding disabilities, the unique and
322.24individual needs of each student according to the student's disability and how the disability
322.25affects the student's education and behavior, following lesson plans, and implementing
322.26follow-up instructional procedures and activities; and
322.27(3) a districtwide process obligates each paraprofessional to work under the ongoing
322.28direction of a licensed teacher and, where appropriate and possible, the supervision of a
322.29school nurse.

322.30    Sec. 2. Minnesota Statutes 2015 Supplement, section 125A.11, subdivision 1, is
322.31amended to read:
322.32    Subdivision 1. Nonresident tuition rate; other costs. (a) For fiscal year 2015 and
322.33later, when a school district provides special instruction and services for a pupil with
322.34a disability as defined in section 125A.02 outside the district of residence, excluding
322.35a pupil for whom an adjustment to special education aid is calculated according to
323.1section 127A.47, subdivision 7, paragraphs (b) to (d), special education aid paid to the
323.2resident district must be reduced by an amount equal to (1) the actual cost of providing
323.3special instruction and services to the pupil, including a proportionate amount for special
323.4transportation and unreimbursed building lease and debt service costs for facilities
323.5used primarily for special education, plus (2) the amount of general education revenue,
323.6excluding local optional revenue, plus local optional aid and referendum equalization aid
323.7attributable to that pupil, calculated using the resident district's average general education
323.8revenue and referendum equalization aid per adjusted pupil unit excluding basic skills
323.9revenue, elementary sparsity revenue and secondary sparsity revenue, minus (3) the
323.10amount of special education aid for children with a disability under section 125A.76
323.11received on behalf of that child, minus (4) if the pupil receives special instruction and
323.12services outside the regular classroom for more than 60 percent of the school day, the
323.13amount of general education revenue and referendum equalization aid, excluding portions
323.14attributable to district and school administration, district support services, operations and
323.15maintenance, capital expenditures, and pupil transportation, attributable to that pupil
323.16for the portion of time the pupil receives special instruction and services outside of the
323.17regular classroom, calculated using the resident district's average general education
323.18revenue and referendum equalization aid per adjusted pupil unit excluding basic skills
323.19revenue, elementary sparsity revenue and secondary sparsity revenue and the serving
323.20district's basic skills revenue, elementary sparsity revenue and secondary sparsity revenue
323.21per adjusted pupil unit. Notwithstanding clauses (1) and (4), for pupils served by a
323.22cooperative unit without a fiscal agent school district, the general education revenue and
323.23referendum equalization aid attributable to a pupil must be calculated using the resident
323.24district's average general education revenue and referendum equalization aid excluding
323.25compensatory revenue, elementary sparsity revenue, and secondary sparsity revenue.
323.26Special education aid paid to the district or cooperative providing special instruction and
323.27services for the pupil must be increased by the amount of the reduction in the aid paid
323.28to the resident district. Amounts paid to cooperatives under this subdivision and section
323.29127A.47, subdivision 7, shall be recognized and reported as revenues and expenditures on
323.30the resident school district's books of account under sections 123B.75 and 123B.76. If
323.31the resident district's special education aid is insufficient to make the full adjustment, the
323.32remaining adjustment shall be made to other state aid due to the district.
323.33    (b) Notwithstanding paragraph (a), when a charter school receiving special education
323.34aid under section 124E.21, subdivision 3, provides special instruction and services for
323.35a pupil with a disability as defined in section 125A.02, excluding a pupil for whom an
323.36adjustment to special education aid is calculated according to section 127A.46, subdivision
324.17, paragraphs (b) to (e), special education aid paid to the resident district must be reduced
324.2by an amount equal to that calculated under paragraph (a) as if the charter school received
324.3aid under section 124E.21, subdivision 1. Notwithstanding paragraph (a), special education
324.4aid paid to the charter school providing special instruction and services for the pupil must
324.5not be increased by the amount of the reduction in the aid paid to the resident district.
324.6    (c) Notwithstanding paragraph (a) and section 127A.47, subdivision 7, paragraphs
324.7(b) to (d),:
324.8    (1) an intermediate district or a special education cooperative may recover
324.9unreimbursed costs of serving pupils with a disability, including building lease, debt
324.10service, and indirect costs necessary for the general operation of the organization, by
324.11billing membership fees and nonmember access fees to the resident district;
324.12    (2) a charter school where more than 30 percent of enrolled students receive special
324.13education and related services, a site approved under section 125A.515, an intermediate
324.14district, or a special education cooperative, or a school district that served as the applicant
324.15agency for a group of school districts for federal special education aids for fiscal year 2006
324.16may apply to the commissioner for authority to charge the resident district an additional
324.17amount to recover any remaining unreimbursed costs of serving pupils with a disability.;
324.18    (3) the billing under clause (1) or application under clause (2) must include a
324.19description of the costs and the calculations used to determine the unreimbursed portion to
324.20be charged to the resident district. Amounts approved by the commissioner under this
324.21paragraph clause (2) must be included in the tuition billings or aid adjustments under
324.22paragraph (a), or section 127A.47, subdivision 7, paragraphs (b) to (d), as applicable.
324.23    (d) For purposes of this subdivision and section 127A.47, subdivision 7, paragraph
324.24(b), "general education revenue and referendum equalization aid" means the sum of the
324.25general education revenue according to section 126C.10, subdivision 1, excluding the
324.26local optional levy according to section 126C.10, subdivision 2e, paragraph (c), plus the
324.27referendum equalization aid according to section 126C.17, subdivision 7.

324.28    Sec. 3. Minnesota Statutes 2015 Supplement, section 125A.21, subdivision 3, is
324.29amended to read:
324.30    Subd. 3. Use of reimbursements. Of the reimbursements received, districts may
324.31School districts must reserve third-party revenue and must spend the reimbursements
324.32received only to:
324.33(1) retain an amount sufficient to compensate the district for its administrative costs
324.34of obtaining reimbursements;
325.1(2) regularly obtain from education- and health-related entities training and other
325.2appropriate technical assistance designed to improve the district's ability to access
325.3third-party payments for individualized education program or individualized family
325.4service plan health-related services; or
325.5(3) reallocate reimbursements for the benefit of students with individualized
325.6education programs or individualized family service plans in the district.

325.7    Sec. 4. Minnesota Statutes 2015 Supplement, section 125A.76, subdivision 2c, is
325.8amended to read:
325.9    Subd. 2c. Special education aid. (a) For fiscal year 2014 and fiscal year 2015, a
325.10district's special education aid equals the sum of the district's special education aid under
325.11subdivision 5, the district's cross subsidy reduction aid under subdivision 2b, and the
325.12district's excess cost aid under section 125A.79, subdivision 7.
325.13(b) For fiscal year 2016 and later, a district's special education aid equals the sum of
325.14the district's special education initial aid under subdivision 2a and the district's excess cost
325.15aid under section 125A.79, subdivision 5.
325.16(c) Notwithstanding paragraph (b), for fiscal year 2016, the special education aid for
325.17a school district must not exceed the sum of the special education aid the district would
325.18have received for fiscal year 2016 under Minnesota Statutes 2012, sections 125A.76
325.19and 125A.79, as adjusted according to Minnesota Statutes 2012, sections 125A.11 and
325.20127A.47, subdivision 7 , and the product of the district's average daily membership served
325.21and the special education aid increase limit.
325.22(d) Notwithstanding paragraph (b), for fiscal year 2017 and later, the special education
325.23aid for a school district must not exceed the sum of: (i) the product of the district's average
325.24daily membership served and the special education aid increase limit and (ii) the product
325.25of the sum of the special education aid the district would have received for fiscal year 2016
325.26under Minnesota Statutes 2012, sections 125A.76 and 125A.79, as adjusted according
325.27to Minnesota Statutes 2012, sections 125A.11 and 127A.47, subdivision 7, the ratio of
325.28the district's average daily membership served for the current fiscal year to the district's
325.29average daily membership served for fiscal year 2016, and the program growth factor.
325.30(e) Notwithstanding paragraph (b), for fiscal year 2016 and later the special
325.31education aid for a school district, not including a charter school or cooperative unit as
325.32defined in section 123A.24, must not be less than the lesser of (1) the district's nonfederal
325.33special education expenditures for that fiscal year or (2) the product of the sum of the
325.34special education aid the district would have received for fiscal year 2016 under Minnesota
325.35Statutes 2012, sections 125A.76 and 125A.79, as adjusted according to Minnesota Statutes
326.12012, sections 125A.11 and 127A.47, subdivision 7, the ratio of the district's adjusted
326.2daily membership for the current fiscal year to the district's average daily membership for
326.3fiscal year 2016, and the program growth factor.
326.4(f) Notwithstanding subdivision 2a and section 125A.79, a charter school in its first
326.5year of operation shall generate special education aid based on current year data. A newly
326.6formed cooperative unit as defined in section 123A.24 may apply to the commissioner
326.7for approval to generate special education aid for its first year of operation based on
326.8current year data, with an offsetting adjustment to the prior year data used to calculate aid
326.9for programs at participating school districts or previous cooperatives that were replaced
326.10by the new cooperative.
326.11(g) The department shall establish procedures through the uniform financial
326.12accounting and reporting system to identify and track all revenues generated from
326.13third-party billings as special education revenue at the school district level; include revenue
326.14generated from third-party billings as special education revenue in the annual cross-subsidy
326.15report; and exclude third-party revenue from calculation of excess cost aid to the districts.

326.16    Sec. 5. Minnesota Statutes 2015 Supplement, section 125A.79, subdivision 1, is
326.17amended to read:
326.18    Subdivision 1. Definitions. For the purposes of this section, the definitions in this
326.19subdivision apply.
326.20    (a) "Unreimbursed old formula special education expenditures" means:
326.21    (1) old formula special education expenditures for the prior fiscal year; minus
326.22    (2) for fiscal years 2014 and 2015, the sum of the special education aid under section
326.23125A.76, subdivision 5 , for the prior fiscal year and the cross subsidy reduction aid under
326.24section 125A.76, subdivision 2b, and for fiscal year 2016 and later, the special education
326.25initial aid under section 125A.76, subdivision 2a; minus
326.26(3) for fiscal year 2016 and later, the amount of general education revenue, excluding
326.27local optional revenue, plus local optional aid and referendum equalization aid for the
326.28prior fiscal year attributable to pupils receiving special instruction and services outside the
326.29regular classroom for more than 60 percent of the school day for the portion of time the
326.30pupils receive special instruction and services outside the regular classroom, excluding
326.31portions attributable to district and school administration, district support services,
326.32operations and maintenance, capital expenditures, and pupil transportation.
326.33(b) "Unreimbursed nonfederal special education expenditures" means:
326.34(1) nonfederal special education expenditures for the prior fiscal year; minus
326.35(2) special education initial aid under section 125A.76, subdivision 2a; minus
327.1(3) the amount of general education revenue, excluding local optional revenue, plus
327.2local optional aid, and referendum equalization aid for the prior fiscal year attributable
327.3to pupils receiving special instruction and services outside the regular classroom for
327.4more than 60 percent of the school day for the portion of time the pupils receive special
327.5instruction and services outside of the regular classroom, excluding portions attributable to
327.6district and school administration, district support services, operations and maintenance,
327.7capital expenditures, and pupil transportation.
327.8    (c) "General revenue" for a school district means the sum of the general education
327.9revenue according to section 126C.10, subdivision 1, excluding transportation sparsity
327.10revenue, local optional revenue, and total operating capital revenue. "General revenue"
327.11for a charter school means the sum of the general education revenue according to section
327.12124E.20, subdivision 1 , and transportation revenue according to section 124E.23,
327.13excluding referendum equalization aid, transportation sparsity revenue, and operating
327.14capital revenue.

327.15    Sec. 6. Minnesota Statutes 2015 Supplement, section 127A.47, subdivision 7, is
327.16amended to read:
327.17    Subd. 7. Alternative attendance programs. (a) The general education aid and
327.18special education aid for districts must be adjusted for each pupil attending a nonresident
327.19district under sections 123A.05 to 123A.08, 124D.03, 124D.08, and 124D.68. The
327.20adjustments must be made according to this subdivision.
327.21    (b) For purposes of this subdivision, the "unreimbursed cost of providing special
327.22education and services" means the difference between: (1) the actual cost of providing
327.23special instruction and services, including special transportation and unreimbursed
327.24building lease and debt service costs for facilities used primarily for special education, for
327.25a pupil with a disability, as defined in section 125A.02, or a pupil, as defined in section
327.26125A.51 , who is enrolled in a program listed in this subdivision, minus (2) if the pupil
327.27receives special instruction and services outside the regular classroom for more than
327.2860 percent of the school day, the amount of general education revenue, excluding local
327.29optional revenue, plus local optional aid and referendum equalization aid as defined in
327.30section 125A.11, subdivision 1, paragraph (d), attributable to that pupil for the portion of
327.31time the pupil receives special instruction and services outside of the regular classroom,
327.32excluding portions attributable to district and school administration, district support
327.33services, operations and maintenance, capital expenditures, and pupil transportation,
327.34minus (3) special education aid under section 125A.76 attributable to that pupil, that is
327.35received by the district providing special instruction and services. For purposes of this
328.1paragraph, general education revenue and referendum equalization aid attributable to a
328.2pupil must be calculated using the serving district's average general education revenue
328.3and referendum equalization aid per adjusted pupil unit.
328.4(c) For fiscal year 2015 and later, special education aid paid to a resident district
328.5must be reduced by an amount equal to 90 percent of the unreimbursed cost of providing
328.6special education and services.
328.7(d) Notwithstanding paragraph (c), special education aid paid to a resident district
328.8must be reduced by an amount equal to 100 percent of the unreimbursed cost of special
328.9education and services provided to students at an intermediate district, cooperative, or
328.10charter school where the percent of students eligible for special education services is at
328.11least 70 percent of the charter school's total enrollment.
328.12(e) Notwithstanding paragraph (c), special education aid paid to a resident district
328.13must be reduced under paragraph (d) for students at a charter school receiving special
328.14education aid under section 124E.21, subdivision 3, calculated as if the charter school
328.15received special education aid under section 124E.21, subdivision 1.
328.16    (f) Special education aid paid to the district or cooperative providing special
328.17instruction and services for the pupil, or to the fiscal agent district for a cooperative, must
328.18be increased by the amount of the reduction in the aid paid to the resident district under
328.19paragraphs (c) and (d). If the resident district's special education aid is insufficient to make
328.20the full adjustment under paragraphs (c), (d), and (e), the remaining adjustment shall be
328.21made to other state aids due to the district.
328.22(g) Notwithstanding paragraph (a), general education aid paid to the resident district
328.23of a nonspecial education student for whom an eligible special education charter school
328.24receives general education aid under section 124E.20, subdivision 1, paragraph (c), must
328.25be reduced by an amount equal to the difference between the general education aid
328.26attributable to the student under section 124E.20, subdivision 1, paragraph (c), and the
328.27general education aid that the student would have generated for the charter school under
328.28section 124E.20, subdivision 1, paragraph (a). For purposes of this paragraph, "nonspecial
328.29education student" means a student who does not meet the definition of pupil with a
328.30disability as defined in section 125A.02 or the definition of a pupil in section 125A.51.
328.31    (h) An area learning center operated by a service cooperative, intermediate district,
328.32education district, or a joint powers cooperative may elect through the action of the
328.33constituent boards to charge the resident district tuition for pupils rather than to have the
328.34general education revenue paid to a fiscal agent school district. Except as provided in
328.35paragraph (f), the district of residence must pay tuition equal to at least 90 and no more
328.36than 100 percent of the district average general education revenue per pupil unit minus
329.1an amount equal to the product of the formula allowance according to section 126C.10,
329.2subdivision 2 , times .0466, calculated without compensatory revenue, local optional
329.3revenue, and transportation sparsity revenue, times the number of pupil units for pupils
329.4attending the area learning center.

329.5    Sec. 7. Laws 2015, First Special Session chapter 3, article 5, section 30, subdivision 2,
329.6is amended to read:
329.7    Subd. 2. Special education; regular. For special education aid under Minnesota
329.8Statutes, section 125A.75:

329.9 329.10		$	1,170,929,000 1,183,619,000	.....	2016
329.11 329.12		$	1,229,706,000 1,247,108,000	.....	2017

329.13The 2016 appropriation includes $137,932,000 for 2015 and $1,032,997,000
329.14$1,045,687,000 for 2016.
329.15The 2017 appropriation includes $145,355,000 $147,202,000 for 2016 and
329.16$1,084,351,000 $1,099,906,000 for 2017.

329.17    Sec. 8. APPROPRIATIONS.
329.18    Subdivision 1. Department of Education. The sums indicated in this section are
329.19appropriated from the general fund to the Department of Education for the fiscal years
329.20designated.
329.21    Subd. 2. Restrictive procedures work group. To implement the recommendations
329.22from the restrictive procedures work group under Minnesota Statutes, section 125A.0942:

329.23

$

500,000

.....

2017

329.24ARTICLE 16

329.25FACILITIES AND TECHNOLOGY

329.26    Section 1. Minnesota Statutes 2014, section 123B.53, subdivision 5, is amended to read:
329.27    Subd. 5. Equalized debt service levy. (a) The equalized debt service levy of a
329.28district equals the sum of the first tier equalized debt service levy and the second tier
329.29equalized debt service levy.
329.30(b) A district's first tier equalized debt service levy equals the district's first tier debt
329.31service equalization revenue times the lesser of one or the ratio of:
330.1(1) the quotient derived by dividing the adjusted net tax capacity of the district for
330.2the year before the year the levy is certified by the adjusted pupil units in the district for
330.3the school year ending in the year prior to the year the levy is certified; to
330.4(2) $3,400 in fiscal year 2016 and, $4,430 in fiscal year 2017, and the greater of
330.5$4,430 or 55.33 percent of the initial equalizing factor in fiscal year 2018 and later.
330.6(c) A district's second tier equalized debt service levy equals the district's second tier
330.7debt service equalization revenue times the lesser of one or the ratio of:
330.8(1) the quotient derived by dividing the adjusted net tax capacity of the district for
330.9the year before the year the levy is certified by the adjusted pupil units in the district for
330.10the school year ending in the year prior to the year the levy is certified; to
330.11(2) $8,000 in fiscal years 2016 and 2017, and the greater of $8,000 or 99.91 percent
330.12of the initial equalizing factor in fiscal year 2018 and later.
330.13(d) For the purposes of this subdivision, the initial equalizing factor equals the
330.14quotient derived by dividing the total adjusted net tax capacity of all school districts in the
330.15state for the year before the year the levy is certified by the total number of adjusted pupil
330.16units in all school districts in the state in the year before the year the levy is certified.

330.17    Sec. 2. Minnesota Statutes 2014, section 123B.535, is amended to read:
330.18123B.535 NATURAL DISASTER ENHANCED DEBT SERVICE
330.19EQUALIZATION.
330.20    Subdivision 1. Definitions; eligibility. (a) For purposes of this section, the eligible
330.21natural disaster enhanced debt service revenue of a district is defined as the amount
330.22needed to produce between five and six percent in excess of the amount needed to meet
330.23when due the principal and interest payments on the obligations of the district eligible
330.24under paragraphs (b) and (c) that would otherwise qualify under section 123B.53 under
330.25the following conditions:.
330.26(b) A district that has been negatively affected by a natural disaster qualifies for
330.27enhanced debt service equalization under this section if:
330.28(1) the district was impacted by a natural disaster event or area occurring January
330.291, 2005, or later, as declared by the President of the United States of America, which is
330.30eligible for Federal Emergency Management Agency payments;
330.31(2) the natural disaster caused $500,000 or more in damages to school district
330.32buildings; and
330.33(3) the repair and replacement costs are not covered by insurance payments or
330.34Federal Emergency Management Agency payments.
331.1(c) A district that consolidated on or after July 1, 2016, with an approved
331.2consolidation plat and plan under section 123A.48 that included building or remodeling
331.3school facilities is eligible for enhanced debt service equalization under this section.
331.4(b) (d) For purposes of this section, the adjusted net tax capacity equalizing factor
331.5equals the quotient derived by dividing the total adjusted net tax capacity of all school
331.6districts in the state for the year before the year the levy is certified by the total number of
331.7adjusted pupil units in the state for the year prior to the year the levy is certified.
331.8    (c) (e) For purposes of this section, the adjusted net tax capacity determined
331.9according to sections 127A.48 and 273.1325 shall be adjusted to include the tax capacity of
331.10property generally exempted from ad valorem taxes under section 272.02, subdivision 64.
331.11    Subd. 2. Notification. A district eligible for natural disaster enhanced debt service
331.12equalization revenue under subdivision 1 must notify the commissioner of the amount of
331.13its intended natural disaster enhanced debt service revenue calculated under subdivision 1
331.14for all bonds sold prior to the notification by July 1 of the calendar year the levy is certified.
331.15    Subd. 3. Natural disaster Enhanced debt service equalization revenue. The
331.16enhanced debt service equalization revenue of a district that qualifies under subdivision 1,
331.17paragraph (b) or (c), equals the greater of zero or the eligible debt service revenue, minus
331.18the greater of zero or the difference between:
331.19(1) the amount raised by a levy of ten percent times the adjusted net tax capacity
331.20of the district; and
331.21(2) the district's eligible debt service revenue under section 123B.53.
331.22    Subd. 4. Equalized natural disaster enhanced debt service levy. A district's
331.23equalized natural disaster enhanced debt service levy equals the district's natural disaster
331.24enhanced debt service equalization revenue times the lesser of one or the ratio of:
331.25(1) the quotient derived by dividing the adjusted net tax capacity of the district for
331.26the year before the year the levy is certified by the adjusted pupil units in the district for
331.27the school year ending in the year prior to the year the levy is certified; to
331.28(2) 300 percent of the statewide adjusted net tax capacity equalizing factor.
331.29    Subd. 5. Natural disaster Enhanced debt service equalization aid. A district's
331.30natural disaster enhanced debt service equalization aid equals the difference between the
331.31district's natural disaster enhanced debt service equalization revenue and the district's
331.32equalized natural disaster enhanced debt service levy.
331.33    Subd. 6. Natural disaster Enhanced debt service equalization aid payment
331.34schedule. Enhanced debt service equalization aid must be paid according to section
331.35127A.45, subdivision 10 .
331.36EFFECTIVE DATE.This section is effective for taxes payable in 2017 and later.

332.1    Sec. 3. Minnesota Statutes 2015 Supplement, section 123B.595, subdivision 1, is
332.2amended to read:
332.3    Subdivision 1. Long-term facilities maintenance revenue. (a) For fiscal year
332.42017 only, long-term facilities maintenance revenue equals the greater of (1) the sum of
332.5(i) $193 times the district's adjusted pupil units times the lesser of one or the ratio of the
332.6district's average building age to 35 years, plus the cost approved by the commissioner
332.7for indoor air quality, fire alarm and suppression, and asbestos abatement projects under
332.8section 123B.57, subdivision 6, with an estimated cost of $100,000 or more per site,
332.9plus (ii) for a school district with an approved voluntary prekindergarten program under
332.10section 124D.151, the cost approved by the commissioner for remodeling existing
332.11instructional space to accommodate prekindergarten instruction, or (2) the sum of (i) the
332.12amount the district would have qualified for under Minnesota Statutes 2014, section
332.13123B.57 , Minnesota Statutes 2014, section 123B.59, and Minnesota Statutes 2014, section
332.14123B.591 ., and (ii) for a school district with an approved voluntary prekindergarten
332.15program under section 124D.151, the cost approved by the commissioner for remodeling
332.16existing instructional space to accommodate prekindergarten instruction.
332.17(b) For fiscal year 2018 only, long-term facilities maintenance revenue equals the
332.18greater of (1) the sum of (i) $292 times the district's adjusted pupil units times the lesser
332.19of one or the ratio of the district's average building age to 35 years, plus (ii) the cost
332.20approved by the commissioner for indoor air quality, fire alarm and suppression, and
332.21asbestos abatement projects under section 123B.57, subdivision 6, with an estimated cost
332.22of $100,000 or more per site, plus (iii) for a school district with an approved voluntary
332.23prekindergarten program under section 124D.151, the cost approved by the commissioner
332.24for remodeling existing instructional space to accommodate prekindergarten instruction,
332.25or (2) the sum of (i) the amount the district would have qualified for under Minnesota
332.26Statutes 2014, section 123B.57, Minnesota Statutes 2014, section 123B.59, and Minnesota
332.27Statutes 2014, section 123B.591., and (ii) for a school district with an approved voluntary
332.28prekindergarten program under section 124D.151, the cost approved by the commissioner
332.29for remodeling existing instructional space to accommodate prekindergarten instruction.
332.30(c) For fiscal year 2019 and later, long-term facilities maintenance revenue equals
332.31the greater of (1) the sum of (i) $380 times the district's adjusted pupil units times the
332.32lesser of one or the ratio of the district's average building age to 35 years, plus (ii) the cost
332.33approved by the commissioner for indoor air quality, fire alarm and suppression, and
332.34asbestos abatement projects under section 123B.57, subdivision 6, with an estimated cost
332.35of $100,000 or more per site, plus (iii) for a school district with an approved voluntary
332.36prekindergarten program under section 124D.151, the cost approved by the commissioner
333.1for remodeling existing instructional space to accommodate prekindergarten instruction,
333.2or (2) the sum of (i) the amount the district would have qualified for under Minnesota
333.3Statutes 2014, section 123B.57, Minnesota Statutes 2014, section 123B.59, and Minnesota
333.4Statutes 2014, section 123B.591., and (ii) for a school district with an approved voluntary
333.5prekindergarten program under section 124D.151, the cost approved by the commissioner
333.6for remodeling existing instructional space to accommodate prekindergarten instruction.
333.7EFFECTIVE DATE.This section is effective for revenue in fiscal year 2017 and
333.8later.

333.9    Sec. 4. Minnesota Statutes 2015 Supplement, section 123B.595, subdivision 10,
333.10is amended to read:
333.11    Subd. 10. Allowed uses for long-term facilities maintenance revenue. (a) A
333.12district may use revenue under this section for any of the following:
333.13(1) deferred capital expenditures and maintenance projects necessary to prevent
333.14further erosion of facilities;
333.15(2) increasing accessibility of school facilities; or
333.16(3) health and safety capital projects under section 123B.57.; or
333.17(4) for violence prevention and facility security, ergonomics, or emergency
333.18communication devices.
333.19(b) A charter school may use revenue under this section for any purpose related
333.20to the school.

333.21    Sec. 5. Minnesota Statutes 2015 Supplement, section 123B.595, subdivision 11,
333.22is amended to read:
333.23    Subd. 11. Restrictions on long-term facilities maintenance revenue.
333.24Notwithstanding subdivision 11 10, long-term facilities maintenance revenue may not
333.25be used:
333.26(1) for the construction of new facilities, remodeling of existing facilities, or the
333.27purchase of portable classrooms;
333.28(2) to finance a lease purchase agreement, installment purchase agreement, or other
333.29deferred payments agreement; or
333.30(3) for energy-efficiency projects under section 123B.65, for a building or property
333.31or part of a building or property used for postsecondary instruction or administration, or
333.32for a purpose unrelated to elementary and secondary education; or.
333.33(4) for violence prevention and facility security, ergonomics, or emergency
333.34communication devices.

334.1    Sec. 6. Laws 2015, First Special Session chapter 3, article 6, section 13, subdivision 2,
334.2is amended to read:
334.3    Subd. 2. Long-term maintenance equalization aid. For long-term maintenance
334.4equalization aid under Minnesota Statutes, section 123B.595:

334.5		$	0	.....	2016
334.6 334.7		$	52,088,000 52,844,000	.....	2017

334.8The 2017 appropriation includes $0 for 2016 and $52,088,000 $52,844,000 for 2017.

334.9    Sec. 7. Laws 2015, First Special Session chapter 3, article 9, section 8, subdivision 9,
334.10is amended to read:
334.11    Subd. 9. Quality Rating System. For transfer to the commissioner of human
334.12services for the purposes of expanding the Quality Rating and Improvement System under
334.13Minnesota Statutes, section 124D.142, in greater Minnesota and increasing supports for
334.14providers participating in the Quality Rating and Improvement System:

334.15		$	1,200,000	.....	2016
334.16 334.17		$	2,300,000 2,800,000	.....	2017

334.18Any balance in the first year does not cancel but is available in the second year. The
334.19base for this program in fiscal year 2018 and later is $1,750,000.

334.20    Sec. 8. GENERATION CONNECT AID.
334.21(a) For fiscal year 2017 only, generation connect aid for a school district or charter
334.22school equals $10.88 times the adjusted pupil units for the school year. Aid under this
334.23section may be used for any allowable purpose under Minnesota Statutes, section 126C.10,
334.24subdivision 14, or Minnesota Statutes, section 124E.20, subdivision 2.
334.25(b) One hundred percent of the aid in this section must be paid in fiscal year 2017.

334.26    Sec. 9. APPROPRIATION.
334.27    Subdivision 1. Department of Education. The sum indicated in this section is
334.28appropriated from the general fund to the Department of Education for the fiscal year
334.29designated.
334.30    Subd. 2. Generation connect aid. For generation connect aid:

334.31

$

10,104,000

.....

2017

334.32This is a onetime appropriation.
335.1    Subd. 3. Regional office of career and technical education. For a grant to
335.2the SW/WC Service Cooperative to establish a regional office of career and technical
335.3education:

335.4

$

70,000

.....

2017

335.5The regional office of career and technical education must:
335.6(1) facilitate the development of highly trained and knowledgeable students who
335.7are equipped with technical and workplace skills needed by regional employers, in
335.8collaborative participation with three or more school districts;
335.9(2) improve access to career and technical education programs for students who
335.10attend sparsely populated rural school districts by developing public/private partnerships
335.11with business and industry leaders and by increasing coordination of high school and
335.12postsecondary program options; and
335.13(3) increase family and student awareness of the availability and benefit of career
335.14and technical education courses and training opportunities.
335.15This is a onetime appropriation.
335.16    Subd. 4. Regional career and technical education advisory committee. For a
335.17grant to the SW/WC Service Cooperative for a regional career and technical education
335.18advisory committee:

335.19

$

280,000

.....

2017

335.20Eligible uses of this grant are:
335.21(1) capital start-up costs for such items as determined by the committee including,
335.22but not limited to, a mobile welding lab, medical equipment and lab, and industrial
335.23kitchen equipment;
335.24(2) informational materials for students, families, and residents of the region that
335.25communicate the relationship between career and technical education programs, labor
335.26market needs, and well-paying employment;
335.27(3) incentive and training grants to develop career and technical education
335.28instructors; and
335.29(4) transportation reimbursement grants to provide equitable opportunities
335.30throughout the region for students to participate in career and technical education.
335.31This is a onetime appropriation.

336.1ARTICLE 17

336.2EARLY CHILDHOOD EDUCATION

336.3    Section 1. Minnesota Statutes 2014, section 124D.135, subdivision 6, is amended to
336.4read:
336.5    Subd. 6. Home visiting levy revenue. (a) A district that is eligible to levy for
336.6early childhood family education under subdivision 3 and that enters into a collaborative
336.7agreement to provide education services and social services to families with young
336.8children may levy an amount equal to $1.60 is eligible for home visiting revenue.
336.9    (b) Total home visiting revenue for a district equals $3 times the number of people
336.10under five years of age residing in the district on September 1 of the last school year. Levy
336.11Revenue under this subdivision must not be included as revenue under subdivision 1. The
336.12revenue must be used for home visiting programs under section 124D.13, subdivision 4.
336.13EFFECTIVE DATE.This section is effective for revenue in fiscal year 2018 and
336.14later.

336.15    Sec. 2. Minnesota Statutes 2014, section 124D.135, is amended by adding a
336.16subdivision to read:
336.17    Subd. 6a. Home visiting levy. To obtain home visiting revenue, a district may levy
336.18an amount not more than the product of its home visiting revenue for the fiscal year times
336.19the lesser of one or the ratio of its adjusted net tax capacity per adjusted pupil unit to the
336.20home visiting equalizing factor. The home visiting equalizing factor equals $17,250 for
336.21fiscal year 2018 and later.
336.22EFFECTIVE DATE.This section is effective for revenue in fiscal year 2018 and
336.23later.

336.24    Sec. 3. Minnesota Statutes 2014, section 124D.135, is amended by adding a
336.25subdivision to read:
336.26    Subd. 6b. Home visiting aid. A district's home visiting aid equals its home visiting
336.27revenue minus its home visiting levy times the ratio of the actual amount levied to the
336.28permitted levy.
336.29EFFECTIVE DATE.This section is effective for revenue in fiscal year 2018 and
336.30later.

336.31    Sec. 4. [124D.173] HELP ME GROW SYSTEM.
337.1    Subdivision 1. Purpose. The purpose of this section is to develop and implement
337.2a comprehensive, statewide, coordinated system of early identification, referral, and
337.3follow-up for children, prenatal through age eight, and their families.
337.4    Subd. 2. Establishment and administration. The commissioner of education shall
337.5provide funding and shall work collaboratively through interagency agreements with the
337.6commissioners of human services and health to implement this section and maintain
337.7annual affiliate status with the Help Me Grow National Center.
337.8    Subd. 3. Duties. (a) The Help Me Grow system shall coordinate sectors, including
337.9child health, early learning and education, and family supports by:
337.10    (1) providing child health care provider outreach to support early detection,
337.11intervention, and knowledge about local resources;
337.12(2) identifying and providing access to detection tools used to identify young
337.13children at risk for developmental and behavioral problems; and
337.14(3) linking children and families to appropriate community-based services.
337.15(b) The Help Me Grow system shall provide community outreach that includes
337.16support for, and participation in, the Help Me Grow system, including disseminating
337.17information on the system and compiling and maintaining a resource directory that
337.18includes, but is not limited to:
337.19(1) primary and specialty medical care providers;
337.20(2) early childhood education and child care programs;
337.21(3) developmental disabilities assessment and intervention programs;
337.22(4) mental health services;
337.23(5) family and social support programs;
337.24(6) child advocacy and legal services;
337.25(7) public health services and resources; and
337.26(8) other appropriate early childhood information.
337.27(c) The Help Me Grow system shall develop a centralized access point for parents
337.28and professionals to obtain information, resources, and other support services.
337.29(d) The Help Me Grow system shall collect data to increase understanding of all
337.30aspects of the current and ongoing system under this section, including identification of
337.31gaps in service, barriers to finding and receiving appropriate service, and lack of resources.
337.32    Subd. 4. Review. The Department of Education shall annually review and by
337.33February 1 report to the chairs and the ranking minority members of the legislative
337.34committees with jurisdiction over early childhood education the following:
337.35(1) outcomes achieved by this system;
337.36(2) alignment with overall early childhood goals and objectives; and
338.1(3) impacts on young children.

338.2    Sec. 5. Laws 2015, First Special Session chapter 3, article 9, section 8, subdivision 7,
338.3is amended to read:
338.4    Subd. 7. Parent-child home program. For a grant to the parent-child home
338.5program:

338.6		$	350,000	.....	2016
338.7 338.8		$	350,000 1,350,000	.....	2017

338.9    The grant must be used for an evidence-based and research-validated early
338.10childhood literacy and school readiness program for children ages 16 months to four
338.11years at its existing suburban program location. The program must include urban and
338.12rural program locations for fiscal years 2016 and 2017. The base for fiscal year 2018
338.13and later is $1,000,000.

338.14    Sec. 6. APPROPRIATIONS.
338.15    Subdivision 1. Department of Education. The sums indicated in this section are
338.16appropriated from the general fund to the Department of Education for the fiscal years
338.17designated.
338.18    Subd. 2. Help Me Grow. For implementation of the Help Me Grow system under
338.19Minnesota Statutes, section 124D.173:

338.20

$

1,000,000

.....

2017

338.21This is a onetime appropriation.
338.22    Subd. 3. Minnesota Learning Resource Center. For a grant to A Chance to
338.23Grow for the Minnesota Learning Resource Center's comprehensive training program
338.24for education professionals charged with helping children in prekindergarten programs
338.25through grade 3 acquire basic reading and math skills:

338.26

$

300,000

.....

2017

338.27This is a onetime appropriation.

338.28ARTICLE 18

338.29SELF-SUFFICIENCY AND LIFELONG LEARNING

338.30    Section 1. AFTER-SCHOOL COMMUNITY LEARNING GRANTS.
339.1    Subdivision 1. Grant program established. A competitive grant program is
339.2established to support community-based organizations, schools, political subdivisions, or
339.3child care centers that service young people in kindergarten through grade 12 after school
339.4or during nonschool hours. Grants must be used to offer a broad array of enrichment
339.5activities that promote positive youth development, including art, music, community
339.6engagement, literacy, technology education, health, agriculture, and recreation programs.
339.7    Subd. 2. Application. The commissioner of education shall develop the form
339.8and method for applying for the grants. The application must include information on
339.9the applicant's outreach to children and youth that qualify for free or reduced-price
339.10lunch and two-year measurable goals and activities linked to research or best practices.
339.11The commissioner shall develop criteria for determining the allocation of the grants and
339.12appropriate goals for the use of the grants including:
339.13(1) increasing access to protective factors that build young people's capacity to
339.14become productive adults, such as connections to a caring adult;
339.15(2) developing children's skills and behaviors necessary to succeed in postsecondary
339.16education and career opportunities; and
339.17(3) encouraging attendance and improving performance in school.
339.18    Subd. 3. Grant awards. To the extent practicable, the selection of applicants
339.19shall result in an equitable distribution of grant awards among geographic areas within
339.20Minnesota, including rural, suburban, and urban communities. The commissioner shall
339.21also give priority to programs that collaborate with and leverage existing community
339.22resources that have demonstrated effectiveness.

339.23    Sec. 2. APPROPRIATIONS.
339.24    Subdivision 1. Department of Education. The sums indicated in this section are
339.25appropriated from the general fund to the Department of Education for the fiscal years
339.26designated.
339.27    Subd. 2. After-school community learning grants. For after-school community
339.28learning grants:

339.29

$

500,000

.....

2017

339.30Up to seven percent of the appropriation in each fiscal year may be used for
339.31administration, evaluation, and technical assistance, including partnering with the
339.32Minnesota Afterschool Network, Ignite Afterschool, and other appropriate entities to
339.33ensure implementation of strategies statewide to ensure the provision of high quality,
339.34research-driven learning opportunities.
340.1This is a onetime appropriation.

340.2ARTICLE 19

340.3STATE AGENCIES

340.4    Section 1. Minnesota Statutes 2014, section 120B.115, is amended to read:
340.5120B.115 REGIONAL CENTERS OF EXCELLENCE.
340.6(a) Regional centers of excellence are established to assist and support school
340.7boards, school districts, school sites, and charter schools in implementing research-based
340.8interventions and practices to increase the students' achievement within a region.
340.9The centers must develop partnerships with local and regional service cooperatives,
340.10postsecondary institutions, integrated school districts, the department, children's mental
340.11health providers, or other local or regional entities interested in providing a cohesive
340.12and consistent regional delivery system that serves all schools equitably. Centers must
340.13assist school districts, school sites, and charter schools in developing similar partnerships.
340.14Center support may include assisting school districts, school sites, and charter schools
340.15with common principles of effective practice, including:
340.16(1) defining measurable education goals under sections 120B.022, subdivisions 1a
340.17and 1b, and 120B.11, subdivision 2;
340.18(2) implementing evidence-based practices, including applied and experiential
340.19learning, contextualized learning, competency-based curricula and assessments, and other
340.20nontraditional learning opportunities, among other practices;
340.21(3) engaging in data-driven decision-making;
340.22(4) providing multilayered levels of support;
340.23(5) supporting culturally responsive teaching and learning aligning the development
340.24of academic English proficiency, state and local academic standards, and career and
340.25college readiness benchmarks;
340.26(6) engaging parents, families, youth, and local community members in programs
340.27and activities at the school district, school site, or charter school that foster collaboration
340.28and shared accountability for the achievement of all students; and
340.29(7) translating district forms and other information such as a multilingual glossary of
340.30commonly used education terms and phrases.
340.31Centers must work with school site leadership teams to build the expertise and experience
340.32to implement programs that close the achievement gap, provide effective and differentiated
340.33programs and instruction for different types of English learners, including English learners
340.34with limited or interrupted formal schooling and long-term English learners under section
341.1124D.59, subdivisions 2 and 2a, increase students' progress and growth toward career and
341.2college readiness, and increase student graduation rates.
341.3(b) The department must assist the regional centers of excellence to meet staff,
341.4facilities, and technical needs, provide the centers with programmatic support, and work
341.5with the centers to establish a coherent statewide system of regional support, including
341.6consulting, training, and technical support, to help school boards, school districts, school
341.7sites, and charter schools effectively and efficiently implement the world's best workforce
341.8goals under section 120B.11 and other state and federal education initiatives, including
341.9secondary and postsecondary career pathways and technical education.
341.10(c) The department must employ a literacy/dyslexia specialist at one regional
341.11center to be determined by the commissioner, and a literacy/dyslexia specialist at the
341.12department, to provide technical assistance for dyslexia and related disorders and to
341.13serve as the primary source of information and support for schools in addressing the
341.14needs of students with dyslexia and related disorders. The literacy/dyslexia specialist
341.15shall also act to increase professional awareness and instructional competencies. For
341.16purposes of this paragraph, a literacy/dyslexia specialist is a dyslexia therapist, licensed
341.17psychologist, certified psychometrist, licensed speech-language pathologist, or certified
341.18dyslexia training specialist who has a minimum of three years of field experience in
341.19screening, identifying, and treating dyslexia and related disorders. A literacy/dyslexia
341.20specialist shall be highly trained in dyslexia and related disorders, and in using scientific,
341.21evidence-based interventions and treatment, which incorporate multisensory, systematic,
341.22sequential teaching strategies in the areas of phonics, phonemic awareness, vocabulary,
341.23fluency, and comprehension.
341.24EFFECTIVE DATE.This section is effective for the 2016-2017 school year and
341.25later.

341.26    Sec. 2. [122A.34] CERTIFICATE OF ADVANCED PROFESSIONAL STUDY.
341.27(a) The Board of Teaching shall adopt rules for a process for approving certificates
341.28of advanced professional study. A certificate of advanced professional study is a credential
341.29available only to a teacher with a full license in at least one discipline that allows for
341.30teaching without further waiver or variance when a licensure program in the discipline
341.31does not exist in Minnesota, or when a teacher with a full license in the discipline cannot
341.32be found. The certificate of advanced professional study must:
341.33    (1) have fewer requirements than the full license in the discipline;
341.34    (2) set the specific qualifications required to attain it; and
341.35    (3) maintain professional standards for teaching in that discipline.
342.1    (b) The rules adopted under paragraph (a) must limit certificates of advanced
342.2professional study to:
342.3    (1) disciplines in which at least one geographic area of the state has a demonstrated
342.4shortage of fully licensed teachers; and
342.5    (2) emerging disciplines where full licenses or licensure programs do not exist
342.6in Minnesota.

342.7    Sec. 3. Laws 2015, First Special Session chapter 3, article 12, section 4, subdivision 2,
342.8is amended to read:
342.9    Subd. 2. Department. (a) For the Department of Education:

342.10 342.11		$	21,246,000 21,276,000	.....	2016
342.12 342.13		$	21,973,000 28,584,000	.....	2017

342.14Of these amounts:
342.15(1) $718,000 each year $748,000 in fiscal year 2016 and zero in fiscal year 2017 is
342.16for the Board of Teaching. Any balance in the first year does not cancel, but is available
342.17in the second year;
342.18(2) $228,000 in fiscal year 2016 and $231,000 in fiscal year 2017 are for the Board
342.19of School Administrators;
342.20(3) $1,000,000 each year is for Regional Centers of Excellence under Minnesota
342.21Statutes, section 120B.115;
342.22(4) $500,000 each year is for the School Safety Technical Assistance Center under
342.23Minnesota Statutes, section 127A.052;
342.24(5) $250,000 each year is for the School Finance Division to enhance financial
342.25data analysis; and
342.26(6) $441,000 in fiscal year 2016 and $720,000 in fiscal year 2017 is for implementing
342.27Laws 2014, chapter 272, article 1, Minnesota's Learning for English Academic Proficiency
342.28and Success Act, as amended;
342.29(7) $2,750,000 in fiscal year 2017 only is for implementation of schoolwide
342.30Positive Behavioral Interventions and Supports (PBIS) in schools and districts throughout
342.31Minnesota to reduce the use of restrictive procedures and increase use of positive
342.32practices. This is a onetime appropriation;
342.33(8) $2,750,000 in fiscal year 2017 only is for Department of Education information
342.34technology enhancements and security. This is a onetime appropriation;
342.35(9) $250,000 in fiscal year 2017 and later is for employing literacy/dyslexia
342.36specialists under Minnesota Statutes, section 120B.115, paragraph (c). The commissioner
343.1must employ a literacy/dyslexia specialist at the department as soon as practicable, but
343.2no later than September 1, 2016. The commissioner must employ the literacy/dyslexia
343.3specialist at one or more regional centers no later than January 1, 2017; and
343.4(10) $200,000 in fiscal year 2017 only is for the Children's Cabinet system redesign
343.5report to the legislature. This is a onetime appropriation.
343.6(b) Any balance in the first year does not cancel but is available in the second year.
343.7(c) None of the amounts appropriated under this subdivision may be used for
343.8Minnesota's Washington, D.C. office.
343.9(d) The expenditures of federal grants and aids as shown in the biennial budget
343.10document and its supplements are approved and appropriated and shall be spent as
343.11indicated.
343.12(e) This appropriation includes funds for information technology project services and
343.13support subject to the provisions of Minnesota Statutes, section 16E.0466. Any ongoing
343.14information technology costs will be incorporated into the service level agreement and
343.15will be paid to the Office of MN.IT Services by the Department of Education under the
343.16rates and mechanism specified in that agreement.
343.17    (f) The agency's base budget in fiscal year 2018 is $21,973,000 $22,371,000. The
343.18agency's base budget in fiscal year 2019 is $21,948,000.

343.19    Sec. 4. SYSTEM REDESIGN; HOMELESS CHILDREN SUPPORTS.
343.20(a) The Children's Cabinet must create a plan for a cross-agency system that provides
343.21support for a family that is homeless, especially with children up to four years of age, to
343.22access available services. The Children's Cabinet shall create the plan in consultation
343.23with the Department of Education, the Department of Human Services, the Department
343.24of Health, the Minnesota Housing Finance Agency, and stakeholders including counties,
343.25school districts, and nonprofits. The redesigned system must address issues including:
343.26(1) implementation methodology that addresses differences in service delivery in
343.27rural versus urban settings;
343.28(2) a training pipeline to increase qualified staff for service providers, including
343.29staff of color;
343.30(3) statewide entry and intake forms to assess and identify the educational and
343.31developmental needs of the child;
343.32(4) a support plan that follows the child even after the child is no longer homeless;
343.33(5) a common data system that allows for easier sharing of data and the plan
343.34components for each child between local entities;
343.35(6) identifying and supporting a community outreach system;
344.1(7) personalizing assistance for a child who is homeless and the child's family to
344.2help the child and the family navigate systems and resources;
344.3(8) transportation options to access services; and
344.4(9) methods to ensure that all state-funded programs and services for a child who is
344.5homeless are adequately staffed with personnel who are trained on the specifics of the
344.6program and receive professional development to handle complex, intergenerational
344.7trauma.
344.8    (b) The Children's Cabinet must report findings and recommendations regarding
344.9the plan, along with draft legislation, to the chairs and ranking minority members of
344.10the legislative committees having jurisdiction over early childhood through grade 12
344.11education, housing, and human services policy by January 23, 2017.

344.12    Sec. 5. APPROPRIATIONS; BOARD OF TEACHING.
344.13(a) The sums indicated in this section are appropriated from the general fund to the
344.14Board of Teaching for the fiscal years designated:

344.15

$

1,500,000

.....

2017

344.16Of these amounts:
344.17(1) $302,000 in fiscal year 2017 is for implementation of certificates of advanced
344.18professional study. The base appropriation in fiscal year 2018 and thereafter is $50,000
344.19each year;
344.20(2) $150,000 in fiscal year 2017 only is for Excellence in Teaching incentive grants.
344.21This is a onetime appropriation and is available until expended; and
344.22(3) $80,000 in fiscal year 2017 and later is for a contract for an electronic statewide
344.23school teacher and administrator job board. The job board must allow school districts
344.24to post job openings for prekindergarten through grade 12 teaching and administrative
344.25positions. Notwithstanding Minnesota Statutes, section 16E.0466, the board is not
344.26required to consult with the Office of MN.IT Services nor transfer any of this appropriation
344.27to the Office of MN.IT Services.
344.28(b) This appropriation includes funds for information technology project services
344.29and support subject to Minnesota Statutes, section 16E.0466. Any ongoing information
344.30technology costs will be incorporated into an interagency agreement and will be paid to
344.31the Office of MN.IT Services by the Board of Teaching under the mechanism specified
344.32in that agreement.
344.33(c) The board's base budget for fiscal year 2018 and later is $1,098,000.

345.1ARTICLE 20

345.2FORECAST ADJUSTMENTS

345.3A. GENERAL EDUCATION

345.4    Section 1. Laws 2015, First Special Session chapter 3, article 1, section 27, subdivision
345.54, is amended to read:
345.6    Subd. 4. Abatement revenue. For abatement aid under Minnesota Statutes, section
345.7127A.49 :

345.8 345.9		$	2,740,000 3,051,000	.....	2016
345.10 345.11		$	2,932,000 3,425,000	.....	2017

345.12The 2016 appropriation includes $278,000 for 2015 and $2,462,000 $2,773,000
345.13for 2016.
345.14The 2017 appropriation includes $273,000 $308,000 for 2016 and $2,659,000
345.15$3,117,000 for 2017.

345.16    Sec. 2. Laws 2015, First Special Session chapter 3, article 1, section 27, subdivision 5,
345.17is amended to read:
345.18    Subd. 5. Consolidation transition. For districts consolidating under Minnesota
345.19Statutes, section 123A.485:

345.20 345.21		$	292,000 22,000	.....	2016
345.22 345.23		$	165,000 0	.....	2017

345.24The 2016 appropriation includes $22,000 for 2015 and $270,000 $0 for 2016.
345.25The 2017 appropriation includes $30,000 $0 for 2016 and $135,000 $0 for 2017.

345.26    Sec. 3. Laws 2015, First Special Session chapter 3, article 1, section 27, subdivision 6,
345.27is amended to read:
345.28    Subd. 6. Nonpublic pupil education aid. For nonpublic pupil education aid under
345.29Minnesota Statutes, sections 123B.40 to 123B.43 and 123B.87:

345.30 345.31		$	16,881,000 16,759,000	.....	2016
345.32 345.33		$	17,460,000 17,235,000	.....	2017

346.1The 2016 appropriation includes $1,575,000 for 2015 and $15,306,000 $15,184,000
346.2for 2016.
346.3The 2017 appropriation includes $1,700,000 $1,687,000 for 2016 and $15,760,000
346.4$15,548,000 for 2017.

346.5    Sec. 4. Laws 2015, First Special Session chapter 3, article 1, section 27, subdivision 7,
346.6is amended to read:
346.7    Subd. 7. Nonpublic pupil transportation. For nonpublic pupil transportation aid
346.8under Minnesota Statutes, section 123B.92, subdivision 9:

346.9 346.10		$	17,654,000 17,673,000	.....	2016
346.11 346.12		$	17,792,000 18,103,000	.....	2017

346.13The 2016 appropriation includes $1,816,000 for 2015 and $15,838,000 $15,857,000
346.14for 2016.
346.15The 2017 appropriation includes $1,759,000 $1,761,000 for 2016 and $16,033,000
346.16$16,342,000 for 2017.

346.17    Sec. 5. Laws 2015, First Special Session chapter 3, article 1, section 27, subdivision 9,
346.18is amended to read:
346.19    Subd. 9. Career and technical aid. For career and technical aid under Minnesota
346.20Statutes, section 124D.4531, subdivision 1b:

346.21 346.22		$	5,420,000 5,922,000	.....	2016
346.23 346.24		$	4,405,000 4,262,000	.....	2017

346.25The 2016 appropriation includes $574,000 for 2015 and $4,846,000 $5,348,000
346.26for 2016.
346.27The 2017 appropriation includes $538,000 $517,000 for 2016 and $3,867,000
346.28$3,745,000 for 2017.

346.29B. EDUCATION EXCELLENCE

346.30    Sec. 6. Laws 2015, First Special Session chapter 3, article 2, section 70, subdivision 4,
346.31is amended to read:
346.32    Subd. 4. Literacy incentive aid. For literacy incentive aid under Minnesota
346.33Statutes, section 124D.98:

347.1 347.2		$	44,552,000 44,538,000	.....	2016
347.3 347.4		$	45,508,000 45,855,000	.....	2017

347.5The 2016 appropriation includes $4,683,000 for 2015 and $39,869,000 $39,855,000
347.6for 2016.
347.7The 2017 appropriation includes $4,429,000 $4,428,000 for 2016 and $41,079,000
347.8$41,427,000 for 2017.

347.9    Sec. 7. Laws 2015, First Special Session chapter 3, article 2, section 70, subdivision 5,
347.10is amended to read:
347.11    Subd. 5. Interdistrict desegregation or integration transportation grants. For
347.12interdistrict desegregation or integration transportation grants under Minnesota Statutes,
347.13section 124D.87:

347.14 347.15		$	15,023,000 14,423,000	.....	2016
347.16 347.17		$	15,825,000 15,193,000	.....	2017

347.18    Sec. 8. Laws 2015, First Special Session chapter 3, article 2, section 70, subdivision 7,
347.19is amended to read:
347.20    Subd. 7. Tribal contract schools. For tribal contract school aid under Minnesota
347.21Statutes, section 124D.83:

347.22 347.23		$	4,340,000 3,539,000	.....	2016
347.24 347.25		$	5,090,000 3,715,000	.....	2017

347.26The 2016 appropriation includes $204,000 for 2015 and $4,136,000 $3,335,000
347.27for 2016.
347.28The 2017 appropriation includes $459,000 $370,000 for 2016 and $4,631,000
347.29$3,345,000 for 2017.

347.30    Sec. 9. Laws 2015, First Special Session chapter 3, article 2, section 70, subdivision
347.3111, is amended to read:
347.32    Subd. 11. American Indian education aid. For American Indian education aid
347.33under Minnesota Statutes, section 124D.81, subdivision 2a:

348.1 348.2		$	7,868,000 7,740,000	.....	2016
348.3 348.4		$	8,875,000 8,878,000	.....	2017

348.5The 2016 appropriation includes $0 for 2015 and $7,868,000 $7,740,000 for 2016.
348.6The 2017 appropriation includes $874,000 $860,000 for 2016 and $8,001,000
348.7$8,018,000 for 2017.

348.8C. SPECIAL PROGRAMS

348.9    Sec. 10. Laws 2015, First Special Session chapter 3, article 5, section 30, subdivision
348.103, is amended to read:
348.11    Subd. 3. Travel for home-based services. For aid for teacher travel for home-based
348.12services under Minnesota Statutes, section 125A.75, subdivision 1:

348.13 348.14		$	361,000 416,000	.....	2016
348.15 348.16		$	371,000 435,000	.....	2017

348.17The 2016 appropriation includes $35,000 for 2015 and $326,000 $381,000 for 2016.
348.18The 2017 appropriation includes $36,000 $42,000 for 2016 and $335,000 $393,000
348.19for 2017.

348.20    Sec. 11. Laws 2015, First Special Session chapter 3, article 5, section 30, subdivision
348.215, is amended to read:
348.22    Subd. 5. Aid for children with disabilities. For aid under Minnesota Statutes,
348.23section 125A.75, subdivision 3, for children with disabilities placed in residential facilities
348.24within the district boundaries for whom no district of residence can be determined:

348.25 348.26		$	1,406,000 1,307,000	.....	2016
348.27 348.28		$	1,629,000 1,516,000	.....	2017

348.29If the appropriation for either year is insufficient, the appropriation for the other
348.30year is available.

348.31D. FACILITIES AND TECHNOLOGY

348.32    Sec. 12. Laws 2015, First Special Session chapter 3, article 6, section 13, subdivision
348.333, is amended to read:
349.1    Subd. 3. Debt service equalization. For debt service aid according to Minnesota
349.2Statutes, section 123B.53, subdivision 6:

349.3		$	20,349,000	.....	2016
349.4 349.5		$	22,171,000 22,926,000	.....	2017

349.6The 2016 appropriation includes $2,295,000 for 2015 and $18,054,000 for 2016.
349.7The 2017 appropriation includes $2,005,000 for 2016 and $20,166,000 $20,921,000
349.8for 2017.

349.9    Sec. 13. Laws 2015, First Special Session chapter 3, article 6, section 13, subdivision
349.106, is amended to read:
349.11    Subd. 6. Deferred maintenance aid. For deferred maintenance aid, according to
349.12Minnesota Statutes, section 123B.591, subdivision 4:

349.13 349.14		$	3,520,000 3,523,000	.....	2016
349.15		$	345,000	.....	2017

349.16The 2016 appropriation includes $409,000 for 2015 and $3,111,000 $3,114,000
349.17for 2016.
349.18The 2017 appropriation includes $345,000 for 2016 and $0 for 2017.

349.19    Sec. 14. Laws 2015, First Special Session chapter 3, article 6, section 13, subdivision
349.207, is amended to read:
349.21    Subd. 7. Health and safety revenue. For health and safety aid according to
349.22Minnesota Statutes, section 123B.57, subdivision 5:

349.23 349.24		$	501,000 588,000	.....	2016
349.25 349.26		$	48,000 57,000	.....	2017

349.27The 2016 appropriation includes $66,000 for 2015 and $435,000 $522,000 for 2016.
349.28The 2017 appropriation includes $48,000 $57,000 for 2016 and $0 for 2017.

349.29E. NUTRITION

349.30    Sec. 15. Laws 2015, First Special Session chapter 3, article 7, section 7, subdivision 4,
349.31is amended to read:
349.32    Subd. 4. Kindergarten milk. For kindergarten milk aid under Minnesota Statutes,
349.33section 124D.118:

350.1 350.2		$	942,000 788,000	.....	2016
350.3 350.4		$	942,000 788,000	.....	2017

350.5F. EARLY CHILDHOOD EDUCATION, SELF-SUFFICIENCY,
350.6AND LIFELONG LEARNING

350.7    Sec. 16. Laws 2015, First Special Session chapter 3, article 9, section 8, subdivision 5,
350.8is amended to read:
350.9    Subd. 5. Early childhood family education aid. For early childhood family
350.10education aid under Minnesota Statutes, section 124D.135:

350.11 350.12		$	28,444,000 27,948,000	.....	2016
350.13 350.14		$	29,939,000 29,336,000	.....	2017

350.15The 2016 appropriation includes $2,713,000 for 2015 and $25,731,000 $25,235,000
350.16for 2016.
350.17The 2017 appropriation includes $2,858,000 $2,803,000 for 2016 and $27,081,000
350.18$26,533,000 for 2017.

350.19    Sec. 17. Laws 2015, First Special Session chapter 3, article 9, section 8, subdivision 6,
350.20is amended to read:
350.21    Subd. 6. Developmental screening aid. For developmental screening aid under
350.22Minnesota Statutes, sections 121A.17 and 121A.19:

350.23 350.24		$	3,363,000 3,477,000	.....	2016
350.25 350.26		$	3,369,000 3,488,000	.....	2017

350.27The 2016 appropriation includes $338,000 for 2015 and $3,025,000 $3,139,000
350.28for 2016.
350.29The 2017 appropriation includes $336,000 $348,000 for 2016 and $3,033,000
350.30$3,140,000 for 2017.

350.31    Sec. 18. Laws 2015, First Special Session chapter 3, article 10, section 3, subdivision
350.322, is amended to read:
350.33    Subd. 2. Community education aid. For community education aid under
350.34Minnesota Statutes, section 124D.20:

351.1 351.2		$	788,000 790,000	.....	2016
351.3 351.4		$	554,000 553,000	.....	2017

351.5The 2016 appropriation includes $107,000 for 2015 and $681,000 $683,000 for 2016.
351.6The 2017 appropriation includes $75,000 for 2016 and $479,000 $478,000 for 2017.

351.7    Sec. 19. Laws 2015, First Special Session chapter 3, article 11, section 3, subdivision
351.82, is amended to read:
351.9    Subd. 2. Adult basic education aid. For adult basic education aid under Minnesota
351.10Statutes, section 124D.531:

351.11 351.12		$	49,118,000 48,231,000	.....	2016
351.13 351.14		$	50,592,000 49,683,000	.....	2017

351.15The 2016 appropriation includes $4,782,000 for 2015 and $44,336,000 $43,449,000
351.16for 2016.
351.17The 2017 appropriation includes $4,926,000 $4,827,000 for 2016 and $45,666,000
351.18$44,856,000 for 2017.

351.19ARTICLE 21

351.20CHILDREN AND FAMILIES

351.21    Section 1. Minnesota Statutes 2014, section 119B.13, subdivision 1, is amended to read:
351.22    Subdivision 1. Subsidy restrictions. (a) Beginning February 3, 2014 January 2,
351.232017, the maximum rate paid for child care assistance in any county or county price
351.24cluster under the child care fund shall be the greater of the 25th percentile of the 2011
351.25child care provider rate survey or the maximum rate effective November 28, 2011 rate
351.26for like-care arrangements effective February 3, 2014, increased by seven percent. The
351.27commissioner may: (1) assign a county with no reported provider prices to a similar price
351.28cluster; and (2) consider county level access when determining final price clusters.
351.29    (b) A rate which includes a special needs rate paid under subdivision 3 may be in
351.30excess of the maximum rate allowed under this subdivision.
351.31    (c) The department shall monitor the effect of this paragraph on provider rates. The
351.32county shall pay the provider's full charges for every child in care up to the maximum
351.33established. The commissioner shall determine the maximum rate for each type of care
351.34on an hourly, full-day, and weekly basis, including special needs and disability care. The
352.1maximum payment to a provider for one day of care must not exceed the daily rate. The
352.2maximum payment to a provider for one week of care must not exceed the weekly rate.
352.3(d) Child care providers receiving reimbursement under this chapter must not be
352.4paid activity fees or an additional amount above the maximum rates for care provided
352.5during nonstandard hours for families receiving assistance.
352.6    (e) When the provider charge is greater than the maximum provider rate allowed,
352.7the parent is responsible for payment of the difference in the rates in addition to any
352.8family co-payment fee.
352.9    (f) All maximum provider rates changes shall be implemented on the Monday
352.10following the effective date of the maximum provider rate.
352.11    (g) Notwithstanding Minnesota Rules, part 3400.0130, subpart 7, maximum
352.12registration fees in effect on January 1, 2013, shall remain in effect.

352.13    Sec. 2. Minnesota Statutes 2014, section 145.4716, subdivision 2, is amended to read:
352.14    Subd. 2. Duties of director. The director of child sex trafficking prevention is
352.15responsible for the following:
352.16    (1) developing and providing comprehensive training on sexual exploitation of
352.17youth for social service professionals, medical professionals, public health workers, and
352.18criminal justice professionals;
352.19    (2) collecting, organizing, maintaining, and disseminating information on sexual
352.20exploitation and services across the state, including maintaining a list of resources on the
352.21Department of Health Web site;
352.22    (3) monitoring and applying for federal funding for antitrafficking efforts that may
352.23benefit victims in the state;
352.24    (4) managing grant programs established under sections 145.4716 to 145.4718,
352.25and 609.3241, paragraph (c), clause (3);
352.26    (5) managing the request for proposals for grants for comprehensive services,
352.27including trauma-informed, culturally specific services;
352.28    (6) identifying best practices in serving sexually exploited youth, as defined in
352.29section 260C.007, subdivision 31;
352.30    (7) providing oversight of and technical support to regional navigators pursuant to
352.31section 145.4717;
352.32    (8) conducting a comprehensive evaluation of the statewide program for safe harbor
352.33of sexually exploited youth; and
353.1    (9) developing a policy consistent with the requirements of chapter 13 for sharing
353.2data related to sexually exploited youth, as defined in section 260C.007, subdivision 31,
353.3among regional navigators and community-based advocates.

353.4    Sec. 3. Minnesota Statutes 2014, section 145.4716, is amended by adding a subdivision
353.5to read:
353.6    Subd. 3. Youth eligible for services. Youth 24 years of age or younger shall be
353.7eligible for all services, support, and programs provided under this section and section
353.8145.4717, and all shelter, housing beds, and services provided by the commissioner of
353.9human services to sexually exploited youth and youth at risk of sexual exploitation.

353.10    Sec. 4. Minnesota Statutes 2014, section 245A.10, subdivision 2, is amended to read:
353.11    Subd. 2. County fees for background studies and licensing inspections. (a)
353.12Before the implementation of NETStudy 2.0, for purposes of family and group family
353.13child care licensing under this chapter, a county agency may charge a fee to an applicant
353.14or license holder to recover the actual cost of background studies, but in any case not to
353.15exceed $100 annually. A county agency may also charge a license fee to an applicant or
353.16license holder not to exceed $50 for a one-year license or $100 for a two-year license.
353.17    (b) Before the implementation of NETStudy 2.0, a county agency may charge a fee
353.18to a legal nonlicensed child care provider or applicant for authorization to recover the
353.19actual cost of background studies completed under section 119B.125, but in any case not
353.20to exceed $100 annually.
353.21    (c) Counties may elect to reduce or waive the fees in paragraph (a) or (b):
353.22    (1) in cases of financial hardship;
353.23    (2) if the county has a shortage of providers in the county's area;
353.24    (3) for new providers; or
353.25    (4) for providers who have attained at least 16 hours of training before seeking
353.26initial licensure.
353.27    (d) Counties may allow providers to pay the applicant fees in paragraph (a) or (b) on
353.28an installment basis for up to one year. If the provider is receiving child care assistance
353.29payments from the state, the provider may have the fees under paragraph (a) or (b)
353.30deducted from the child care assistance payments for up to one year and the state shall
353.31reimburse the county for the county fees collected in this manner.
353.32    (e) For purposes of adult foster care and child foster care licensing, and licensing
353.33the physical plant of a community residential setting, under this chapter, a county agency
354.1may charge a fee to a corporate applicant or corporate license holder to recover the actual
354.2cost of licensing inspections, not to exceed $500 annually.
354.3    (f) Counties may elect to reduce or waive the fees in paragraph (e) under the
354.4following circumstances:
354.5(1) in cases of financial hardship;
354.6(2) if the county has a shortage of providers in the county's area; or
354.7(3) for new providers.

354.8    Sec. 5. Minnesota Statutes 2014, section 245C.03, is amended by adding a subdivision
354.9to read:
354.10    Subd. 6a. Nonlicensed child care programs. Beginning October 1, 2017, the
354.11commissioner shall conduct background studies on any individual required under section
354.12119B.125 to have a background study completed under this chapter.

354.13    Sec. 6. Minnesota Statutes 2014, section 245C.04, subdivision 1, is amended to read:
354.14    Subdivision 1. Licensed programs. (a) The commissioner shall conduct a
354.15background study of an individual required to be studied under section 245C.03,
354.16subdivision 1 , at least upon application for initial license for all license types.
354.17    (b) Effective October 1, 2017, the commissioner shall conduct a background study
354.18of an individual required to be studied specified under section 245C.03, subdivision 1,
354.19who is newly affiliated with the license holder. at reapplication for a license for family
354.20child care. From October 1, 2017, to September 30, 2019, the commissioner shall conduct
354.21a background study of individuals required to be studied under section 245C.03, at the
354.22time of reapplication for a family child care license.
354.23    (1) The individual shall provide information required under section 245C.05,
354.24subdivision 1, paragraphs (a), (b), and (d), to the county agency.
354.25    (2) The county agency shall provide the commissioner with the information received
354.26under clause (1) to complete the background study.
354.27    (3) The background study conducted by the commissioner under this paragraph must
354.28include a review of the information required under section 245C.08.
354.29    (c) The commissioner is not required to conduct a study of an individual at the time
354.30of reapplication for a license if the individual's background study was completed by the
354.31commissioner of human services and the following conditions are met:
354.32    (1) a study of the individual was conducted either at the time of initial licensure or
354.33when the individual became affiliated with the license holder;
355.1    (2) the individual has been continuously affiliated with the license holder since
355.2the last study was conducted; and
355.3    (3) the last study of the individual was conducted on or after October 1, 1995.
355.4    (d) The commissioner of human services shall conduct a background study of an
355.5individual specified under section 245C.03, subdivision 1, paragraph (a), clauses (2)
355.6to (6), who is newly affiliated with a child foster care license holder. The county or
355.7private agency shall collect and forward to the commissioner the information required
355.8under section 245C.05, subdivisions 1 and 5. The background study conducted by the
355.9commissioner of human services under this paragraph must include a review of the
355.10information required under section 245C.08, subdivisions 1, 3, and 4.
355.11(e) The commissioner shall conduct a background study of an individual specified
355.12under section 245C.03, subdivision 1, paragraph (a), clauses (2) to (6), who is newly
355.13affiliated with an adult foster care or family adult day services and effective October 1,
355.142017, with a family child care license holder or a legal nonlicensed child care provider
355.15authorized under chapter 119B: (1) the county shall collect and forward to the commissioner
355.16the information required under section 245C.05, subdivision 1, paragraphs (a) and (b), and
355.17subdivision 5, paragraphs (a) and, (b), and (d), for background studies conducted by the
355.18commissioner for all family adult day services and, for adult foster care when the adult
355.19foster care license holder resides in the adult foster care residence, and for family child care
355.20and legal nonlicensed child care authorized under chapter 119B; (2) the license holder shall
355.21collect and forward to the commissioner the information required under section 245C.05,
355.22subdivisions 1 , paragraphs (a) and (b); and 5, paragraphs (a) and (b), for background
355.23studies conducted by the commissioner for adult foster care when the license holder does
355.24not reside in the adult foster care residence; and (3) the background study conducted by
355.25the commissioner under this paragraph must include a review of the information required
355.26under section 245C.08, subdivision 1, paragraph (a), and subdivisions 3 and 4.
355.27(f) Applicants for licensure, license holders, and other entities as provided in this
355.28chapter must submit completed background study requests to the commissioner using the
355.29electronic system known as NETStudy before individuals specified in section 245C.03,
355.30subdivision 1 , begin positions allowing direct contact in any licensed program.
355.31    (g) For an individual who is not on the entity's active roster, the entity must initiate a
355.32new background study through NETStudy when:
355.33    (1) an individual returns to a position requiring a background study following an
355.34absence of 120 or more consecutive days; or
355.35    (2) a program that discontinued providing licensed direct contact services for 120 or
355.36more consecutive days begins to provide direct contact licensed services again.
356.1    The license holder shall maintain a copy of the notification provided to
356.2the commissioner under this paragraph in the program's files. If the individual's
356.3disqualification was previously set aside for the license holder's program and the new
356.4background study results in no new information that indicates the individual may pose a
356.5risk of harm to persons receiving services from the license holder, the previous set-aside
356.6shall remain in effect.
356.7    (h) For purposes of this section, a physician licensed under chapter 147 is considered
356.8to be continuously affiliated upon the license holder's receipt from the commissioner of
356.9health or human services of the physician's background study results.
356.10(i) For purposes of family child care, a substitute caregiver must receive repeat
356.11background studies at the time of each license renewal.
356.12(j) A repeat background study at the time of license renewal is not required if the
356.13substitute caregiver's background study was completed by the commissioner on or after
356.14October 1, 2017, and the substitute caregiver is on the license holder's active roster
356.15in NETStudy 2.0.

356.16    Sec. 7. Minnesota Statutes 2014, section 245C.05, subdivision 2b, is amended to read:
356.17    Subd. 2b. County agency to collect and forward information to commissioner.
356.18(a) For background studies related to all family adult day services and to adult foster care
356.19when the adult foster care license holder resides in the adult foster care residence, the
356.20county agency must collect the information required under subdivision 1 and forward it to
356.21the commissioner.
356.22(b) Effective October 1, 2017, for background studies related to family child care
356.23and legal nonlicensed child care authorized under chapter 119B, the county agency must
356.24collect the information required under subdivision 1 and provide it to the commissioner.

356.25    Sec. 8. Minnesota Statutes 2014, section 245C.05, subdivision 4, is amended to read:
356.26    Subd. 4. Electronic transmission. (a) For background studies conducted by the
356.27Department of Human Services, the commissioner shall implement a secure system for the
356.28electronic transmission of:
356.29    (1) background study information to the commissioner;
356.30    (2) background study results to the license holder;
356.31    (3) background study results to county and private agencies for background studies
356.32conducted by the commissioner for child foster care; and
357.1(4) background study results to county agencies for background studies conducted by
357.2the commissioner for adult foster care and family adult day services and, effective October
357.31, 2017, family child care and legal nonlicensed child care authorized under chapter 119B.
357.4(b) Unless the commissioner has granted a hardship variance under paragraph (c),
357.5a license holder or an applicant must use the electronic transmission system known
357.6as NETStudy or NETStudy 2.0 to submit all requests for background studies to the
357.7commissioner as required by this chapter.
357.8(c) A license holder or applicant whose program is located in an area in which
357.9high-speed Internet is inaccessible may request the commissioner to grant a variance to
357.10the electronic transmission requirement.

357.11    Sec. 9. Minnesota Statutes 2014, section 245C.05, subdivision 7, is amended to read:
357.12    Subd. 7. Probation officer and corrections agent. (a) A probation officer or
357.13corrections agent shall notify the commissioner of an individual's conviction if the
357.14individual:
357.15    (1) has been affiliated with a program or facility regulated by the Department of
357.16Human Services or Department of Health, a facility serving children or youth licensed by
357.17the Department of Corrections, or any type of home care agency or provider of personal
357.18care assistance services within the preceding year; and
357.19    (2) has been convicted of a crime constituting a disqualification under section
357.20245C.14 .
357.21    (b) For the purpose of this subdivision, "conviction" has the meaning given it
357.22in section 609.02, subdivision 5.
357.23    (c) The commissioner, in consultation with the commissioner of corrections, shall
357.24develop forms and information necessary to implement this subdivision and shall provide
357.25the forms and information to the commissioner of corrections for distribution to local
357.26probation officers and corrections agents.
357.27    (d) The commissioner shall inform individuals subject to a background study that
357.28criminal convictions for disqualifying crimes will shall be reported to the commissioner
357.29by the corrections system.
357.30    (e) A probation officer, corrections agent, or corrections agency is not civilly or
357.31criminally liable for disclosing or failing to disclose the information required by this
357.32subdivision.
357.33    (f) Upon receipt of disqualifying information, the commissioner shall provide the
357.34notice required under section 245C.17, as appropriate, to agencies on record as having
358.1initiated a background study or making a request for documentation of the background
358.2study status of the individual.
358.3    (g) This subdivision does not apply to family child care programs for individuals
358.4whose background study was completed in NETStudy 2.0.

358.5    Sec. 10. Minnesota Statutes 2015 Supplement, section 245C.08, subdivision 1, is
358.6amended to read:
358.7    Subdivision 1. Background studies conducted by Department of Human
358.8Services. (a) For a background study conducted by the Department of Human Services,
358.9including background studies conducted effective October 1, 2017, on legal nonlicensed
358.10child care providers authorized under chapter 119B, the commissioner shall review:
358.11    (1) information related to names of substantiated perpetrators of maltreatment of
358.12vulnerable adults that has been received by the commissioner as required under section
358.13626.557, subdivision 9c , paragraph (j);
358.14    (2) the commissioner's records relating to the maltreatment of minors in licensed
358.15programs, and from findings of maltreatment of minors as indicated through the social
358.16service information system;
358.17    (3) information from juvenile courts as required in subdivision 4 for individuals
358.18listed in section 245C.03, subdivision 1, paragraph (a), when there is reasonable cause;
358.19    (4) information from the Bureau of Criminal Apprehension, including information
358.20regarding a background study subject's registration in Minnesota as a predatory offender
358.21under section 243.166;
358.22    (5) except as provided in clause (6), information from the national crime information
358.23system when the commissioner has reasonable cause as defined under section 245C.05,
358.24subdivision 5, or as required under section 144.057, subdivision 1, clause (2); and
358.25    (6) for a background study related to a child foster care application for licensure, a
358.26transfer of permanent legal and physical custody of a child under sections 260C.503 to
358.27260C.515 , or adoptions, the commissioner shall also review:
358.28    (i) information from the child abuse and neglect registry for any state in which the
358.29background study subject has resided for the past five years; and
358.30    (ii) information from national crime information databases, when the background
358.31study subject is 18 years of age or older.
358.32    (b) Notwithstanding expungement by a court, the commissioner may consider
358.33information obtained under paragraph (a), clauses (3) and (4), unless the commissioner
358.34received notice of the petition for expungement and the court order for expungement is
358.35directed specifically to the commissioner.
359.1    (c) The commissioner shall also review criminal case information received according
359.2to section 245C.04, subdivision 4a, from the Minnesota court information system that
359.3relates to individuals who have already been studied under this chapter and who remain
359.4affiliated with the agency that initiated the background study.
359.5    (d) When the commissioner has reasonable cause to believe that the identity of
359.6a background study subject is uncertain, the commissioner may require the subject to
359.7provide a set of classifiable fingerprints for purposes of completing a fingerprint-based
359.8record check with the Bureau of Criminal Apprehension. Fingerprints collected under this
359.9paragraph shall not be saved by the commissioner after they have been used to verify the
359.10identity of the background study subject against the particular criminal record in question.
359.11    (e) The commissioner may inform the entity that initiated a background study under
359.12NETStudy 2.0 of the status of processing of the subject's fingerprints.

359.13    Sec. 11. Minnesota Statutes 2014, section 245C.08, subdivision 2, is amended to read:
359.14    Subd. 2. Background studies conducted by a county agency for family child
359.15care. (a) Prior to the implementation of NETStudy 2.0, for a background study studies
359.16conducted by a county agency for family child care services, including background studies
359.17conducted in connection with legal nonlicensed child care authorized under chapter 119B,
359.18the commissioner shall review:
359.19    (1) information from the county agency's record of substantiated maltreatment
359.20of adults and the maltreatment of minors;
359.21    (2) information from juvenile courts as required in subdivision 4 for:
359.22    (i) individuals listed in section 245C.03, subdivision 1, paragraph (a), who are ages
359.2313 through 23 living in the household where the licensed services will be provided; and
359.24    (ii) any other individual listed under section 245C.03, subdivision 1, when there
359.25is reasonable cause; and
359.26    (3) information from the Bureau of Criminal Apprehension.
359.27    (b) If the individual has resided in the county for less than five years, the study shall
359.28include the records specified under paragraph (a) for the previous county or counties of
359.29residence for the past five years.
359.30    (c) Notwithstanding expungement by a court, the county agency may consider
359.31information obtained under paragraph (a), clause (3), unless the commissioner received
359.32notice of the petition for expungement and the court order for expungement is directed
359.33specifically to the commissioner.

359.34    Sec. 12. Minnesota Statutes 2014, section 245C.08, subdivision 4, is amended to read:
360.1    Subd. 4. Juvenile court records. (a) For a background study conducted by the
360.2Department of Human Services, the commissioner shall review records from the juvenile
360.3courts for an individual studied under section 245C.03, subdivision 1, paragraph (a), when
360.4the commissioner has reasonable cause.
360.5    (b) For a background study conducted by a county agency for family child care prior
360.6to the implementation of NETStudy 2.0, the commissioner shall review records from the
360.7juvenile courts for individuals listed in section 245C.03, subdivision 1, who are ages 13
360.8through 23 living in the household where the licensed services will be provided. The
360.9commissioner shall also review records from juvenile courts for any other individual listed
360.10under section 245C.03, subdivision 1, when the commissioner has reasonable cause.
360.11    (c) The juvenile courts shall help with the study by giving the commissioner existing
360.12juvenile court records relating to delinquency proceedings held on individuals described in
360.13section 245C.03, subdivision 1, paragraph (a), when requested pursuant to this subdivision.
360.14    (d) For purposes of this chapter, a finding that a delinquency petition is proven in
360.15juvenile court shall be considered a conviction in state district court.
360.16    (e) Juvenile courts shall provide orders of involuntary and voluntary termination of
360.17parental rights under section 260C.301 to the commissioner upon request for purposes of
360.18conducting a background study under this chapter.

360.19    Sec. 13. Minnesota Statutes 2014, section 245C.11, subdivision 3, is amended to read:
360.20    Subd. 3. Criminal history data. County agencies shall have access to the criminal
360.21history data in the same manner as county licensing agencies under this chapter for
360.22purposes of background studies completed prior to the implementation of NETStudy 2.0
360.23by county agencies on legal nonlicensed child care providers to determine eligibility
360.24for child care funds under chapter 119B.

360.25    Sec. 14. Minnesota Statutes 2014, section 245C.17, subdivision 6, is amended to read:
360.26    Subd. 6. Notice to county agency. For studies on individuals related to a license to
360.27provide adult foster care and family adult day services and, effective October 1, 2017,
360.28family child care and legal nonlicensed child care authorized under chapter 119B, the
360.29commissioner shall also provide a notice of the background study results to the county
360.30agency that initiated the background study.

360.31    Sec. 15. Minnesota Statutes 2014, section 245C.23, subdivision 2, is amended to read:
360.32    Subd. 2. Commissioner's notice of disqualification that is not set aside. (a) The
360.33commissioner shall notify the license holder of the disqualification and order the license
361.1holder to immediately remove the individual from any position allowing direct contact
361.2with persons receiving services from the license holder if:
361.3    (1) the individual studied does not submit a timely request for reconsideration
361.4under section 245C.21;
361.5    (2) the individual submits a timely request for reconsideration, but the commissioner
361.6does not set aside the disqualification for that license holder under section 245C.22, unless
361.7the individual has a right to request a hearing under section 245C.27, 245C.28, or 256.045;
361.8    (3) an individual who has a right to request a hearing under sections 245C.27 and
361.9256.045 , or 245C.28 and chapter 14 for a disqualification that has not been set aside, does
361.10not request a hearing within the specified time; or
361.11    (4) an individual submitted a timely request for a hearing under sections 245C.27
361.12and 256.045, or 245C.28 and chapter 14, but the commissioner does not set aside the
361.13disqualification under section 245A.08, subdivision 5, or 256.045.
361.14    (b) If the commissioner does not set aside the disqualification under section 245C.22,
361.15and the license holder was previously ordered under section 245C.17 to immediately
361.16remove the disqualified individual from direct contact with persons receiving services or
361.17to ensure that the individual is under continuous, direct supervision when providing direct
361.18contact services, the order remains in effect pending the outcome of a hearing under
361.19sections 245C.27 and 256.045, or 245C.28 and chapter 14.
361.20(c) If the commissioner does not set aside the disqualification under section 245C.22,
361.21and the license holder was not previously ordered under section 245C.17 to immediately
361.22remove the disqualified individual from direct contact with persons receiving services or
361.23to ensure that the individual is under continuous direct supervision when providing direct
361.24contact services, the commissioner shall order the individual to remain under continuous
361.25direct supervision pending the outcome of a hearing under sections 245C.27 and 256.045,
361.26or 245C.28 and chapter 14.
361.27    (d) For background studies related to child foster care, the commissioner shall
361.28also notify the county or private agency that initiated the study of the results of the
361.29reconsideration.
361.30(e) For background studies related to family child care, adult foster care, and family
361.31adult day services, the commissioner shall also notify the county that initiated the study of
361.32the results of the reconsideration.

361.33    Sec. 16. Minnesota Statutes 2015 Supplement, section 256M.41, subdivision 3,
361.34is amended to read:
362.1    Subd. 3. Payments based on performance. (a) The commissioner shall make
362.2payments under this section to each county board on a calendar year basis in an amount
362.3determined under paragraph (b).
362.4    (b) Calendar year allocations under subdivision 1 shall be paid to counties in the
362.5following manner:
362.6    (1) 80 percent of the allocation as determined in subdivision 1 must be paid to
362.7counties on or before July 10 of each year;
362.8    (2) ten percent of the allocation shall be withheld until the commissioner determines
362.9if the county has met the performance outcome threshold of 90 percent based on
362.10face-to-face contact with alleged child victims. In order to receive the performance
362.11allocation, the county child protection workers must have a timely face-to-face contact
362.12with at least 90 percent of all alleged child victims of screened-in maltreatment reports.
362.13The standard requires that each initial face-to-face contact occur consistent with timelines
362.14defined in section 626.556, subdivision 10, paragraph (i). The commissioner shall make
362.15threshold determinations in January February of each year and payments to counties
362.16meeting the performance outcome threshold shall occur in February March of each year.
362.17Any withheld funds from this appropriation for counties that do not meet this requirement
362.18shall be reallocated by the commissioner to those counties meeting the requirement; and
362.19(3) ten percent of the allocation shall be withheld until the commissioner determines
362.20that the county has met the performance outcome threshold of 90 percent based on
362.21face-to-face visits by the case manager. In order to receive the performance allocation, the
362.22total number of visits made by caseworkers on a monthly basis to children in foster care
362.23and children receiving child protection services while residing in their home must be at
362.24least 90 percent of the total number of such visits that would occur if every child were
362.25visited once per month. The commissioner shall make such determinations in January
362.26February of each year and payments to counties meeting the performance outcome
362.27threshold shall occur in February March of each year. Any withheld funds from this
362.28appropriation for counties that do not meet this requirement shall be reallocated by the
362.29commissioner to those counties meeting the requirement. For 2015, the commissioner
362.30shall only apply the standard for monthly foster care visits.
362.31(c) The commissioner shall work with stakeholders and the Human Services
362.32Performance Council under section 402A.16 to develop recommendations for specific
362.33outcome measures that counties should meet in order to receive funds withheld under
362.34paragraph (b), and include in those recommendations a determination as to whether
362.35the performance measures under paragraph (b) should be modified or phased out. The
363.1commissioner shall report the recommendations to the legislative committees having
363.2jurisdiction over child protection issues by January 1, 2018.
363.3EFFECTIVE DATE.This section is effective July 1, 2016, for allocations made in
363.4fiscal year 2017 using calendar year 2016 data.

363.5    Sec. 17. Minnesota Statutes 2014, section 256N.26, subdivision 3, is amended to read:
363.6    Subd. 3. Basic monthly rate. From January 1, 2015 July 1, 2016, to June 30, 2016
363.72017, the basic monthly rate must be according to the following schedule:

363.8		Ages 0-5	$565 $650 per month
363.9		Ages 6-12	$670 $770 per month
363.10		Ages 13 and older	$790 $910 per month

363.11    Sec. 18. Minnesota Statutes 2015 Supplement, section 256P.06, subdivision 3, is
363.12amended to read:
363.13    Subd. 3. Income inclusions. The following must be included in determining the
363.14income of an assistance unit:
363.15(1) earned income; and
363.16(2) unearned income, which includes:
363.17(i) interest and dividends from investments and savings;
363.18(ii) capital gains as defined by the Internal Revenue Service from any sale of real
363.19property;
363.20(iii) proceeds from rent and contract for deed payments in excess of the principal
363.21and interest portion owed on property;
363.22(iv) income from trusts, excluding special needs and supplemental needs trusts;
363.23(v) interest income from loans made by the participant or household;
363.24(vi) cash prizes and winnings;
363.25(vii) unemployment insurance income;
363.26(viii) retirement, survivors, and disability insurance payments;
363.27(ix) nonrecurring income over $60 per quarter unless earmarked and used for the
363.28purpose for which it is intended. Income and use of this income is subject to verification
363.29requirements under section 256P.04;
363.30(x) retirement benefits;
363.31(xi) cash assistance benefits, as defined by each program in chapters 119B, 256D,
363.32256I, and 256J;
363.33(xii) tribal per capita payments unless excluded by federal and state law;
364.1(xiii) income and payments from service and rehabilitation programs that meet
364.2or exceed the state's minimum wage rate;
364.3(xiv) income from members of the United States armed forces unless excluded from
364.4income taxes according to federal or state law;
364.5(xv) all child support payments for programs under chapters 119B, 256D, and 256I;
364.6(xvi) the amount of current child support received that exceeds $100 for assistance
364.7units with one child and $200 for assistance units with two or more children for programs
364.8under chapter 256J; and
364.9(xvii) spousal support.

364.10    Sec. 19. [260C.125] CASE TRANSFER PROCESS.
364.11    Subdivision 1. Purpose. This section pertains to the transfer of responsibility for
364.12the placement and care of an Indian child in out-of-home placement from the responsible
364.13social services agency to a tribal title IV-E agency or an Indian tribe in and outside of
364.14Minnesota with a title IV-E agreement.
364.15    Subd. 2. Establishment of transfer procedures. The responsible social services
364.16agency shall establish and maintain procedures, in consultation with Indian tribes, for the
364.17transfer of responsibility for placement and care of a child to a tribal agency. Transfer of a
364.18child's case under this section shall not affect the child's title IV-E and Medicaid eligibility.
364.19    Subd. 3. Title IV-E eligibility. If a child's title IV-E eligibility has not been
364.20determined by the responsible social services agency by the time of transfer, it shall be
364.21established at the time of the transfer by the responsible social services agency.
364.22    Subd. 4. Documentation and information. Essential documents and information
364.23shall be transferred to a tribal agency, including but not limited to:
364.24(1) district court judicial determinations to the effect that continuation in the home
364.25from which the child was removed would be contrary to the welfare of the child and that
364.26reasonable efforts were made to ensure placement prevention and family reunification
364.27pursuant to section 260.012;
364.28(2) documentation related to the child's permanency proceeding under sections
364.29260C.503 to 260C.521;
364.30(3) documentation from the responsible social services agency related to the child's
364.31title IV-E eligibility;
364.32(4) documentation regarding the child's eligibility or potential eligibility for other
364.33federal benefits;
364.34(5) the child's case plan, developed pursuant to the Social Security Act, United
364.35States Code, title 42, sections 675(1) and 675a, including health and education records
365.1of the child pursuant to the Social Security Act, United States Code, title 42, section
365.2675(1)(c); and section 260C.212, subdivision 1, and information; and
365.3(6) documentation of the child's placement setting, including a copy of the most
365.4recent provider's license.

365.5    Sec. 20. Minnesota Statutes 2015 Supplement, section 260C.203, is amended to read:
365.6260C.203 ADMINISTRATIVE OR COURT REVIEW OF PLACEMENTS.
365.7    (a) Unless the court is conducting the reviews required under section 260C.202,
365.8there shall be an administrative review of the out-of-home placement plan of each child
365.9placed in foster care no later than 180 days after the initial placement of the child in foster
365.10care and at least every six months thereafter if the child is not returned to the home of the
365.11parent or parents within that time. The out-of-home placement plan must be monitored and
365.12updated at each administrative review. The administrative review shall be conducted by
365.13the responsible social services agency using a panel of appropriate persons at least one of
365.14whom is not responsible for the case management of, or the delivery of services to, either
365.15the child or the parents who are the subject of the review. The administrative review shall
365.16be open to participation by the parent or guardian of the child and the child, as appropriate.
365.17    (b) As an alternative to the administrative review required in paragraph (a), the court
365.18may, as part of any hearing required under the Minnesota Rules of Juvenile Protection
365.19Procedure, conduct a hearing to monitor and update the out-of-home placement plan
365.20pursuant to the procedure and standard in section 260C.201, subdivision 6, paragraph
365.21(d). The party requesting review of the out-of-home placement plan shall give parties to
365.22the proceeding notice of the request to review and update the out-of-home placement
365.23plan. A court review conducted pursuant to section 260C.141, subdivision 2; 260C.193;
365.24260C.201 , subdivision 1; 260C.202; 260C.204; 260C.317; or 260D.06 shall satisfy the
365.25requirement for the review so long as the other requirements of this section are met.
365.26    (c) As appropriate to the stage of the proceedings and relevant court orders, the
365.27responsible social services agency or the court shall review:
365.28    (1) the safety, permanency needs, and well-being of the child;
365.29    (2) the continuing necessity for and appropriateness of the placement;
365.30    (3) the extent of compliance with the out-of-home placement plan;
365.31    (4) the extent of progress that has been made toward alleviating or mitigating the
365.32causes necessitating placement in foster care;
365.33    (5) the projected date by which the child may be returned to and safely maintained in
365.34the home or placed permanently away from the care of the parent or parents or guardian; and
365.35    (6) the appropriateness of the services provided to the child.
366.1    (d) When a child is age 14 or older,:
366.2    (1) in addition to any administrative review conducted by the responsible social
366.3services agency, at the in-court review required under section 260C.317, subdivision
366.43, clause (3), or 260C.515, subdivision 5 or 6, the court shall review the independent
366.5living plan required under section 260C.212, subdivision 1, paragraph (c), clause (12),
366.6and the provision of services to the child related to the well-being of the child as the
366.7child prepares to leave foster care. The review shall include the actual plans related to
366.8each item in the plan necessary to the child's future safety and well-being when the child
366.9is no longer in foster care.; and
366.10    (e) At the court review required under paragraph (d) for a child age 14 or older,
366.11the following procedures apply:
366.12(1) six months before the child is expected to be discharged from foster care, the
366.13responsible social services agency shall give the written notice required under section
366.14260C.451, subdivision 1, regarding the right to continued access to services for certain
366.15children in foster care past age 18 and of the right to appeal a denial of social services
366.16under section 256.045. The agency shall file a copy of the notice, including the right to
366.17appeal a denial of social services, with the court. If the agency does not file the notice by
366.18the time the child is age 17-1/2, the court shall require the agency to give it;
366.19    (2) consistent with the requirements of the independent living plan, the court shall
366.20review progress toward or accomplishment of the following goals:
366.21    (i) the child has obtained a high school diploma or its equivalent;
366.22    (ii) the child has completed a driver's education course or has demonstrated the
366.23ability to use public transportation in the child's community;
366.24    (iii) the child is employed or enrolled in postsecondary education;
366.25    (iv) the child has applied for and obtained postsecondary education financial aid for
366.26which the child is eligible;
366.27    (v) the child has health care coverage and health care providers to meet the child's
366.28physical and mental health needs;
366.29    (vi) the child has applied for and obtained disability income assistance for which
366.30the child is eligible;
366.31    (vii) the child has obtained affordable housing with necessary supports, which does
366.32not include a homeless shelter;
366.33    (viii) the child has saved sufficient funds to pay for the first month's rent and a
366.34damage deposit;
366.35    (ix) the child has an alternative affordable housing plan, which does not include a
366.36homeless shelter, if the original housing plan is unworkable;
367.1    (x) the child, if male, has registered for the Selective Service; and
367.2    (xi) the child has a permanent connection to a caring adult; and.
367.3    (3) the court shall ensure that the responsible agency in conjunction with the
367.4placement provider assists the child in obtaining the following documents prior to the
367.5child's leaving foster care: a Social Security card; the child's birth certificate; a state
367.6identification card or driver's license, tribal enrollment identification card, green card, or
367.7school visa; the child's school, medical, and dental records; a contact list of the child's
367.8medical, dental, and mental health providers; and contact information for the child's
367.9siblings, if the siblings are in foster care.
367.10    (f) For a child who will be discharged from foster care at age 18 or older, the
367.11responsible social services agency is required to develop a personalized transition plan as
367.12directed by the youth. The transition plan must be developed during the 90-day period
367.13immediately prior to the expected date of discharge. The transition plan must be as
367.14detailed as the child may elect and include specific options on housing, health insurance,
367.15education, local opportunities for mentors and continuing support services, and work force
367.16supports and employment services. The agency shall ensure that the youth receives, at
367.17no cost to the youth, a copy of the youth's consumer credit report as defined in section
367.1813C.001 and assistance in interpreting and resolving any inaccuracies in the report. The
367.19plan must include information on the importance of designating another individual to
367.20make health care treatment decisions on behalf of the child if the child becomes unable
367.21to participate in these decisions and the child does not have, or does not want, a relative
367.22who would otherwise be authorized to make these decisions. The plan must provide the
367.23child with the option to execute a health care directive as provided under chapter 145C.
367.24The agency shall also provide the youth with appropriate contact information if the youth
367.25needs more information or needs help dealing with a crisis situation through age 21.

367.26    Sec. 21. Minnesota Statutes 2015 Supplement, section 260C.212, subdivision 1,
367.27is amended to read:
367.28    Subdivision 1. Out-of-home placement; plan. (a) An out-of-home placement plan
367.29shall be prepared within 30 days after any child is placed in foster care by court order or a
367.30voluntary placement agreement between the responsible social services agency and the
367.31child's parent pursuant to section 260C.227 or chapter 260D.
367.32    (b) An out-of-home placement plan means a written document which is prepared
367.33by the responsible social services agency jointly with the parent or parents or guardian
367.34of the child and in consultation with the child's guardian ad litem, the child's tribe, if the
367.35child is an Indian child, the child's foster parent or representative of the foster care facility,
368.1and, where appropriate, the child. When a child is age 14 or older, the child may include
368.2two other individuals on the team preparing the child's out-of-home placement plan. The
368.3child may select one member of the case planning team to be designated as the child's
368.4advisor and to advocate with respect to the application of the reasonable and prudent
368.5parenting standards. The responsible social services agency may reject an individual
368.6selected by the child if the agency has good cause to believe that the individual would
368.7not act in the best interest of the child. For a child in voluntary foster care for treatment
368.8under chapter 260D, preparation of the out-of-home placement plan shall additionally
368.9include the child's mental health treatment provider. For a child 18 years of age or older,
368.10the responsible social services agency shall involve the child and the child's parents as
368.11appropriate. As appropriate, the plan shall be:
368.12    (1) submitted to the court for approval under section 260C.178, subdivision 7;
368.13    (2) ordered by the court, either as presented or modified after hearing, under section
368.14260C.178 , subdivision 7, or 260C.201, subdivision 6; and
368.15    (3) signed by the parent or parents or guardian of the child, the child's guardian ad
368.16litem, a representative of the child's tribe, the responsible social services agency, and, if
368.17possible, the child.
368.18    (c) The out-of-home placement plan shall be explained to all persons involved in its
368.19implementation, including the child who has signed the plan, and shall set forth:
368.20    (1) a description of the foster care home or facility selected, including how the
368.21out-of-home placement plan is designed to achieve a safe placement for the child in the
368.22least restrictive, most family-like, setting available which is in close proximity to the home
368.23of the parent or parents or guardian of the child when the case plan goal is reunification,
368.24and how the placement is consistent with the best interests and special needs of the child
368.25according to the factors under subdivision 2, paragraph (b);
368.26    (2) the specific reasons for the placement of the child in foster care, and when
368.27reunification is the plan, a description of the problems or conditions in the home of the
368.28parent or parents which necessitated removal of the child from home and the changes the
368.29parent or parents must make in order for the child to safely return home;
368.30    (3) a description of the services offered and provided to prevent removal of the child
368.31from the home and to reunify the family including:
368.32    (i) the specific actions to be taken by the parent or parents of the child to eliminate
368.33or correct the problems or conditions identified in clause (2), and the time period during
368.34which the actions are to be taken; and
368.35    (ii) the reasonable efforts, or in the case of an Indian child, active efforts to be made
368.36to achieve a safe and stable home for the child including social and other supportive
369.1services to be provided or offered to the parent or parents or guardian of the child, the
369.2child, and the residential facility during the period the child is in the residential facility;
369.3    (4) a description of any services or resources that were requested by the child or the
369.4child's parent, guardian, foster parent, or custodian since the date of the child's placement
369.5in the residential facility, and whether those services or resources were provided and if
369.6not, the basis for the denial of the services or resources;
369.7    (5) the visitation plan for the parent or parents or guardian, other relatives as defined
369.8in section 260C.007, subdivision 26b or 27, and siblings of the child if the siblings are not
369.9placed together in foster care, and whether visitation is consistent with the best interest
369.10of the child, during the period the child is in foster care;
369.11    (6) when a child cannot return to or be in the care of either parent, documentation
369.12of steps to finalize adoption as the permanency plan for the child through reasonable
369.13efforts to place the child for adoption. At a minimum, the documentation must include
369.14consideration of whether adoption is in the best interests of the child, child-specific
369.15recruitment efforts such as relative search and the use of state, regional, and national
369.16adoption exchanges to facilitate orderly and timely placements in and outside of the state.
369.17A copy of this documentation shall be provided to the court in the review required under
369.18section 260C.317, subdivision 3, paragraph (b);
369.19    (7) when a child cannot return to or be in the care of either parent, documentation
369.20of steps to finalize the transfer of permanent legal and physical custody to a relative as
369.21the permanency plan for the child. This documentation must support the requirements of
369.22the kinship placement agreement under section 256N.22 and must include the reasonable
369.23efforts used to determine that it is not appropriate for the child to return home or be
369.24adopted, and reasons why permanent placement with a relative through a Northstar kinship
369.25assistance arrangement is in the child's best interest; how the child meets the eligibility
369.26requirements for Northstar kinship assistance payments; agency efforts to discuss adoption
369.27with the child's relative foster parent and reasons why the relative foster parent chose not
369.28to pursue adoption, if applicable; and agency efforts to discuss with the child's parent or
369.29parents the permanent transfer of permanent legal and physical custody or the reasons
369.30why these efforts were not made;
369.31    (8) efforts to ensure the child's educational stability while in foster care, including
369.32for a child who attained the minimum age for compulsory school attendance under state
369.33law and is enrolled full time in elementary or secondary school, or instructed in elementary
369.34or secondary education at home, or instructed in an independent study elementary or
369.35secondary program, or incapable of attending school on a full-time basis due to a medical
370.1condition that is documented and supported by regularly updated information in the child's
370.2case plan. Educational stability efforts include:
370.3(i) efforts to ensure that the child remains in the same school in which the child was
370.4enrolled prior to placement or upon the child's move from one placement to another,
370.5including efforts to work with the local education authorities to ensure the child's
370.6educational stability and attendance; or
370.7(ii) if it is not in the child's best interest to remain in the same school that the child
370.8was enrolled in prior to placement or move from one placement to another, efforts to
370.9ensure immediate and appropriate enrollment for the child in a new school;
370.10(9) the educational records of the child including the most recent information
370.11available regarding:
370.12    (i) the names and addresses of the child's educational providers;
370.13    (ii) the child's grade level performance;
370.14    (iii) the child's school record;
370.15    (iv) a statement about how the child's placement in foster care takes into account
370.16proximity to the school in which the child is enrolled at the time of placement; and
370.17(v) any other relevant educational information;
370.18    (10) the efforts by the local responsible social services agency to ensure the oversight
370.19and continuity of health care services for the foster child, including:
370.20(i) the plan to schedule the child's initial health screens;
370.21(ii) how the child's known medical problems and identified needs from the screens,
370.22including any known communicable diseases, as defined in section 144.4172, subdivision
370.232, will shall be monitored and treated while the child is in foster care;
370.24(iii) how the child's medical information will shall be updated and shared, including
370.25the child's immunizations;
370.26(iv) who is responsible to coordinate and respond to the child's health care needs,
370.27including the role of the parent, the agency, and the foster parent;
370.28(v) who is responsible for oversight of the child's prescription medications;
370.29(vi) how physicians or other appropriate medical and nonmedical professionals will
370.30shall be consulted and involved in assessing the health and well-being of the child and
370.31determine the appropriate medical treatment for the child; and
370.32(vii) the responsibility to ensure that the child has access to medical care through
370.33either medical insurance or medical assistance;
370.34(11) the health records of the child including information available regarding:
370.35(i) the names and addresses of the child's health care and dental care providers;
370.36(ii) a record of the child's immunizations;
371.1(iii) the child's known medical problems, including any known communicable
371.2diseases as defined in section 144.4172, subdivision 2;
371.3(iv) the child's medications; and
371.4(v) any other relevant health care information such as the child's eligibility for
371.5medical insurance or medical assistance;
371.6(12) an independent living plan for a child age 14 years of age or older, developed in
371.7consultation with the child. The child may select one member of the case planning team to
371.8be designated as the child's advisor and to advocate with respect to the application of the
371.9reasonable and prudent parenting standards in subdivision 14. The plan should include,
371.10but not be limited to, the following objectives:
371.11    (i) educational, vocational, or employment planning;
371.12    (ii) health care planning and medical coverage;
371.13    (iii) transportation including, where appropriate, assisting the child in obtaining a
371.14driver's license;
371.15    (iv) money management, including the responsibility of the responsible social
371.16services agency to ensure that the youth child annually receives, at no cost to the youth
371.17child, a consumer report as defined under section 13C.001 and assistance in interpreting
371.18and resolving any inaccuracies in the report;
371.19    (v) planning for housing;
371.20    (vi) social and recreational skills;
371.21    (vii) establishing and maintaining connections with the child's family and
371.22community; and
371.23    (viii) regular opportunities to engage in age-appropriate or developmentally
371.24appropriate activities typical for the child's age group, taking into consideration the
371.25capacities of the individual child; and
371.26    (13) for a child in voluntary foster care for treatment under chapter 260D, diagnostic
371.27and assessment information, specific services relating to meeting the mental health care
371.28needs of the child, and treatment outcomes.; and
371.29(14) for a child 14 years of age or older, a signed acknowledgment that describes
371.30the child's rights regarding education, health care, visitation, safety and protection from
371.31exploitation, and court participation; receipt of the documents identified in section
371.32260C.452; and receipt of an annual credit report. The acknowledgment shall state that the
371.33rights were explained in an age-appropriate manner to the child.
371.34    (d) The parent or parents or guardian and the child each shall have the right to legal
371.35counsel in the preparation of the case plan and shall be informed of the right at the time
371.36of placement of the child. The child shall also have the right to a guardian ad litem.
372.1If unable to employ counsel from their own resources, the court shall appoint counsel
372.2upon the request of the parent or parents or the child or the child's legal guardian. The
372.3parent or parents may also receive assistance from any person or social services agency
372.4in preparation of the case plan.
372.5    After the plan has been agreed upon by the parties involved or approved or ordered
372.6by the court, the foster parents shall be fully informed of the provisions of the case plan
372.7and shall be provided a copy of the plan.
372.8    Upon discharge from foster care, the parent, adoptive parent, or permanent legal and
372.9physical custodian, as appropriate, and the child, if appropriate, must be provided with
372.10a current copy of the child's health and education record.

372.11    Sec. 22. Minnesota Statutes 2015 Supplement, section 260C.212, subdivision 14,
372.12is amended to read:
372.13    Subd. 14. Support age-appropriate and developmentally appropriate activities
372.14for foster children. (a) Responsible social services agencies and licensed child-placing
372.15agencies shall support a foster child's emotional and developmental growth by permitting
372.16the child to participate in activities or events that are generally accepted as suitable
372.17for children of the same chronological age or are developmentally appropriate for the
372.18child. "Developmentally appropriate" means based on a child's cognitive, emotional,
372.19physical, and behavioral capacities that are typical for an age or age group. Foster
372.20parents and residential facility staff are permitted to allow foster children to participate in
372.21extracurricular, social, or cultural activities that are typical for the child's age by applying
372.22reasonable and prudent parenting standards.
372.23(b) "Reasonable and prudent parenting" means the standards are characterized
372.24by careful and sensible parenting decisions that maintain the child's health and safety,
372.25cultural, religious, and are made in the child's tribal values, and best interest interests
372.26while encouraging the child's emotional and developmental growth.
372.27(c) The commissioner shall provide guidance about the childhood activities and
372.28factors a foster parent and authorized residential facility staff must consider when applying
372.29the reasonable and prudent parenting standards. The factors must include the:
372.30(1) child's age, maturity, and developmental level;
372.31(2) risk of activity;
372.32(3) best interests of the child;
372.33(4) importance of the experience in the child's emotional and developmental growth;
372.34(5) importance of a family-like experience;
372.35(6) behavioral history of the child; and
373.1(7) wishes of the child's parent or legal guardian, as appropriate.
373.2(d) A residential facility licensed under Minnesota Rules, chapter 2960, must have
373.3at least one onsite staff person who is trained on the standards according to section
373.4260C.215, subdivision 4, and authorized to apply the reasonable and prudent parenting
373.5standards to decisions involving the approval of a foster child's participation in age and
373.6developmentally appropriate extracurricular, social, or cultural activities. The onsite staff
373.7person referenced in this paragraph is not required to be available 24 hours per day.
373.8(e) The foster parent or designated staff at residential facilities demonstrating
373.9compliance with the reasonable and prudent parenting standards shall not incur civil
373.10liability if a foster child is harmed or injured because of participating in approved
373.11extracurricular, enrichment, cultural, and social activities.

373.12    Sec. 23. Minnesota Statutes 2015 Supplement, section 260C.215, subdivision 4,
373.13is amended to read:
373.14    Subd. 4. Duties of commissioner. The commissioner of human services shall:
373.15(1) provide practice guidance to responsible social services agencies and licensed
373.16child-placing agencies that reflect federal and state laws and policy direction on placement
373.17of children;
373.18(2) develop criteria for determining whether a prospective adoptive or foster family
373.19has the ability to understand and validate the child's cultural background;
373.20(3) provide a standardized training curriculum for adoption and foster care workers
373.21and administrators who work with children. Training must address the following objectives:
373.22(i) developing and maintaining sensitivity to all cultures;
373.23(ii) assessing values and their cultural implications;
373.24(iii) making individualized placement decisions that advance the best interests of a
373.25particular child under section 260C.212, subdivision 2; and
373.26(iv) issues related to cross-cultural placement;
373.27(4) provide a training curriculum for all prospective adoptive and foster families
373.28that prepares them to care for the needs of adoptive and foster children taking into
373.29consideration the needs of children outlined in section 260C.212, subdivision 2, paragraph
373.30(b), and, as necessary, preparation is continued after placement of the child and includes
373.31the knowledge and skills related to reasonable and prudent parenting standards for the
373.32participation of the child in age or developmentally appropriate activities, according to
373.33section 260C.212, subdivision 14;
373.34(5) develop and provide to responsible social services agencies and licensed
373.35child-placing agencies a home study format to assess the capacities and needs of
374.1prospective adoptive and foster families. The format must address problem-solving skills;
374.2parenting skills; evaluate the degree to which the prospective family has the ability
374.3to understand and validate the child's cultural background, and other issues needed to
374.4provide sufficient information for agencies to make an individualized placement decision
374.5consistent with section 260C.212, subdivision 2. For a study of a prospective foster parent,
374.6the format must also address the capacity of the prospective foster parent to provide a
374.7safe, healthy, smoke-free home environment. If a prospective adoptive parent has also
374.8been a foster parent, any update necessary to a home study for the purpose of adoption
374.9may be completed by the licensing authority responsible for the foster parent's license.
374.10If a prospective adoptive parent with an approved adoptive home study also applies for
374.11a foster care license, the license application may be made with the same agency which
374.12provided the adoptive home study; and
374.13(6) consult with representatives reflecting diverse populations from the councils
374.14established under sections 3.922 and 15.0145, and other state, local, and community
374.15organizations.

374.16    Sec. 24. Minnesota Statutes 2015 Supplement, section 260C.451, subdivision 6,
374.17is amended to read:
374.18    Subd. 6. Reentering foster care and accessing services after age 18 years of
374.19age and up to 21 years of age. (a) Upon request of an individual between the ages of
374.2018 and 21 who had been under the guardianship of the commissioner and who has left
374.21foster care without being adopted, the responsible social services agency which had
374.22been the commissioner's agent for purposes of the guardianship shall develop with the
374.23individual a plan to increase the individual's ability to live safely and independently using
374.24the plan requirements of section 260C.212, subdivision 1, paragraph (c), clause (12), and
374.25to assist the individual to meet one or more of the eligibility criteria in subdivision 4 if
374.26the individual wants to reenter foster care. The responsible social services agency shall
374.27provide foster care as required to implement the plan. The responsible social services
374.28agency shall enter into a voluntary placement agreement under section 260C.229 with the
374.29individual if the plan includes foster care.
374.30(b) Individuals who had not been under the guardianship of the commissioner of
374.31human services prior to 18 years of age 18 and are between the ages of 18 and 21 may ask
374.32to reenter foster care after age 18 and, to the extent funds are available, the responsible
374.33social services agency that had responsibility for planning for the individual before
374.34discharge from foster care may provide foster care or other services to the individual for
375.1the purpose of increasing the individual's ability to live safely and independently and to
375.2meet the eligibility criteria in subdivision 3a, if the individual:
375.3(1) was in foster care for the six consecutive months prior to the person's 18th
375.4birthday and was not discharged home, adopted, or received into a relative's home under a
375.5transfer of permanent legal and physical custody under section 260C.515, subdivision 4; or
375.6(2) was discharged from foster care while on runaway status after age 15.
375.7(c) In conjunction with a qualifying and eligible individual under paragraph (b) and
375.8other appropriate persons, the responsible social services agency shall develop a specific
375.9plan related to that individual's vocational, educational, social, or maturational needs and,
375.10to the extent funds are available, provide foster care as required to implement the plan.
375.11The responsible social services agency shall enter into a voluntary placement agreement
375.12with the individual if the plan includes foster care.
375.13(d) Youth A child who left foster care while under guardianship of the commissioner
375.14of human services retain retains eligibility for foster care for placement at any time
375.15between the ages of 18 and prior to 21 years of age.

375.16    Sec. 25. Minnesota Statutes 2014, section 260C.451, is amended by adding a
375.17subdivision to read:
375.18    Subd. 9. Administrative or court review of placements. (a) The court shall
375.19conduct reviews at least annually to ensure the responsible social services agency is
375.20making reasonable efforts to finalize the permanency plan for the child.
375.21(b) The court shall find that the responsible social services agency is making
375.22reasonable efforts to finalize the permanency plan for the child when the responsible
375.23social services agency:
375.24(1) provides appropriate support to the child and foster care provider to ensure
375.25continuing stability and success in placement;
375.26(2) works with the child to plan for transition to adulthood and assists the child in
375.27demonstrating progress in achieving related goals;
375.28(3) works with the child to plan for independent living skills and assists the child in
375.29demonstrating progress in achieving independent living goals; and
375.30(4) prepares the child for independence according to sections 260C.203, paragraph
375.31(d), and 260C.452, subdivision 4.
375.32(c) The responsible social services agency must ensure that an administrative review
375.33that meets the requirements of this section and section 260C.203 is completed at least six
375.34months after each of the court's annual reviews.

376.1    Sec. 26. [260C.452] SUCCESSFUL TRANSITION TO ADULTHOOD.
376.2    Subdivision 1. Scope. This section pertains to a child who is under the guardianship
376.3of the commissioner of human services, or who has a permanency disposition of
376.4permanent custody to the agency, or who will leave foster care at 18 to 21 years of age.
376.5    Subd. 2. Independent living plan. When the child is 14 years of age or older,
376.6the responsible social services agency, in consultation with the child, shall complete
376.7the independent living plan according to section 260C.212, subdivision 1, paragraph
376.8(c), clause (12).
376.9    Subd. 3. Notification. Six months before the child is expected to be discharged from
376.10foster care, the responsible social services agency shall provide written notice to the child
376.11regarding the right to continued access to services for certain children in foster care past
376.1218 years of age and of the right to appeal a denial of social services under section 256.045.
376.13    Subd. 4. Administrative or court review of placements. (a) When the child is 14
376.14years of age or older, the court, in consultation with the child, shall review the independent
376.15living plan according to section 260C.203, paragraph (d).
376.16(b) The responsible social services agency shall file a copy of the notification
376.17required in subdivision 3 with the court. If the responsible social services agency does
376.18not file the notice by the time the child is 17-1/2 years of age, the court shall require the
376.19responsible social services agency to file the notice.
376.20(c) The court shall ensure that the responsible social services agency assists the child
376.21in obtaining the following documents before the child leaves foster care: a Social Security
376.22card; an official or certified copy of the child's birth certificate; a state identification card
376.23or driver's license, tribal enrollment identification card, green card, or school visa; health
376.24insurance information; the child's school, medical, and dental records; a contact list of
376.25the child's medical, dental, and mental health providers; and contact information for the
376.26child's siblings, if the siblings are in foster care.
376.27(d) For a child who will be discharged from foster care at 18 years of age or older,
376.28the responsible social services agency must develop a personalized transition plan as
376.29directed by the child during the 90-day period immediately prior to the expected date of
376.30discharge. The transition plan must be as detailed as the child elects and include specific
376.31options, including but not limited to:
376.32(1) affordable housing with necessary supports that does not include a homeless
376.33shelter;
376.34(2) health insurance, including eligibility for medical assistance as defined in section
376.35256B.055, subdivision 17;
376.36(3) education, including application to the Education and Training Voucher Program;
377.1(4) local opportunities for mentors and continuing support services, including the
377.2Healthy Transitions and Homeless Prevention program, if available;
377.3(5) workforce supports and employment services;
377.4(6) a copy of the child's consumer credit report as defined in section 13C.001 and
377.5assistance in interpreting and resolving any inaccuracies in the report, at no cost to the child;
377.6(7) information on executing a health care directive under chapter 145C and on the
377.7importance of designating another individual to make health care decisions on behalf of
377.8the child if the child becomes unable to participate in decisions; and
377.9(8) appropriate contact information through 21 years of age if the child needs
377.10information or help dealing with a crisis situation.
377.11    Subd. 5. Notice of termination of foster care. (a) When a child leaves foster care
377.12at 18 years of age or older, the responsible social services agency shall give the child
377.13written notice that foster care shall terminate 30 days from the date the notice is sent.
377.14(b) The child or the child's guardian ad litem may file a motion asking the court to
377.15review the responsible social services agency's determination within 15 days of receiving
377.16the notice. The child shall not be discharged from foster care until the motion is heard. The
377.17responsible social services agency shall work with the child to transition out of foster care.
377.18(c) The written notice of termination of benefits shall be on a form prescribed by
377.19the commissioner and shall give notice of the right to have the responsible social services
377.20agency's determination reviewed by the court under this section or sections 260C.203,
377.21260C.317, and 260C.515, subdivision 5 or 6. A copy of the termination notice shall
377.22be sent to the child and the child's attorney, if any, the foster care provider, the child's
377.23guardian ad litem, and the court. The responsible social services agency is not responsible
377.24for paying foster care benefits for any period of time after the child leaves foster care.

377.25    Sec. 27. Minnesota Statutes 2015 Supplement, section 260C.521, subdivision 1,
377.26is amended to read:
377.27    Subdivision 1. Child in permanent custody of responsible social services agency.
377.28(a) Court reviews of an order for permanent custody to the responsible social services
377.29agency for placement of the child in foster care must be conducted at least yearly at an
377.30in-court appearance hearing.
377.31(b) The purpose of the review hearing is to ensure:
377.32(1) the responsible social services agency made intensive, ongoing, and, as of the
377.33date of the hearing, unsuccessful efforts to return the child home or secure a placement for
377.34the child with a fit and willing relative, custodian, or adoptive parent, and an order for
377.35permanent custody to the responsible social services agency for placement of the child in
378.1foster care continues to be in the best interests of the child and that no other permanency
378.2disposition order is in the best interests of the child;
378.3(2) that the responsible social services agency is assisting the child to build
378.4connections to the child's family and community; and
378.5(3) that the responsible social services agency is appropriately planning with the
378.6child for development of independent living skills for the child and, as appropriate, for the
378.7orderly and successful transition to independent living adulthood that may occur if the
378.8child continues in foster care without another permanency disposition order.;
378.9(4) the child's foster family home or child care institution is following the reasonable
378.10and prudent parenting standards; and
378.11(5) the child has regular, ongoing opportunities to engage in age or developmentally
378.12appropriate activities by consulting with the child in an age-appropriate manner about the
378.13opportunities.
378.14(c) The court must review the child's out-of-home placement plan and the reasonable
378.15efforts of the responsible social services agency to finalize an alternative permanent plan
378.16for the child including the responsible social services agency's efforts to:
378.17(1) ensure that permanent custody to the responsible social services agency with
378.18placement of the child in foster care continues to be the most appropriate legal arrangement
378.19for meeting the child's need for permanency and stability or, if not, to identify and attempt
378.20to finalize another permanency disposition order under this chapter that would better serve
378.21the child's needs and best interests; by reviewing the compelling reasons it continues not
378.22to be in the best interest of the child to:
378.23(i) return home;
378.24(ii) be placed for adoption; or
378.25(iii) be placed with a fit and willing relative through an order for permanent legal
378.26and physical custody under section 260C.515, subdivision 4;
378.27(2) identify a specific foster home for the child, if one has not already been identified;
378.28(3) support continued placement of the child in the identified home, if one has been
378.29identified;
378.30(4) ensure appropriate services are provided to address the physical health, mental
378.31health, and educational needs of the child during the period of foster care and also ensure
378.32appropriate services or assistance to maintain relationships with appropriate family
378.33members and the child's community; and
378.34(5) plan for the child's independence upon the child's leaving foster care living as
378.35required under section 260C.212, subdivision 1.
379.1(d) The court may find that the responsible social services agency has made
379.2reasonable efforts to finalize the permanent plan for the child when:
379.3(1) the responsible social services agency has made reasonable efforts to identify a
379.4more legally permanent home for the child than is provided by an order for permanent
379.5custody to the agency for placement in foster care;
379.6(2) the child has been asked about the child's desired permanency outcome; and
379.7(3) the responsible social services agency's engagement of the child in planning for
379.8independent living a successful transition to adulthood is reasonable and appropriate.

379.9    Sec. 28. [260D.14] SUCCESSFUL TRANSITION TO ADULTHOOD FOR
379.10CHILDREN IN VOLUNTARY PLACEMENT.
379.11    Subdivision 1. Case planning. When the child is 14 years of age or older, the
379.12responsible social services agency shall ensure a child in foster care under this chapter is
379.13provided with the case plan requirements in section 260C.212, subdivisions 1 and 14.
379.14    Subd. 2. Notification. The responsible social services agency shall provide written
379.15notice of the right to continued access to services for certain children in foster care past 18
379.16years of age under section 260C.452, subdivision 3, and of the right to appeal a denial
379.17of social services under section 256.045. The notice must be provided to the child six
379.18months before the child's 18th birthday.
379.19    Subd. 3. Administrative or court reviews. When the child is 17 years of age or
379.20older, the administrative review or court hearing must include a review of the responsible
379.21social services agency's support for the child's successful transition to adulthood as
379.22required in section 260C.452, subdivision 4.

379.23    Sec. 29. Minnesota Statutes 2014, section 518.175, subdivision 5, is amended to read:
379.24    Subd. 5. Modification of parenting plan or order for parenting time. (a) If a
379.25parenting plan or an order granting parenting time cannot be used to determine the number
379.26of overnights or overnight equivalents the child has with each parent, the court shall modify
379.27the parenting plan or order granting parenting time so that the number of overnights or
379.28overnight equivalents the child has with each parent can be determined. For purposes of this
379.29section, "overnight equivalents" has the meaning given in section 518A.36, subdivision 1.
379.30(b) If modification would serve the best interests of the child, the court shall modify
379.31the decision-making provisions of a parenting plan or an order granting or denying
379.32parenting time, if the modification would not change the child's primary residence.
379.33Consideration of a child's best interest includes a child's changing developmental needs.
380.1(b) (c) Except as provided in section 631.52, the court may not restrict parenting
380.2time unless it finds that:
380.3(1) parenting time is likely to endanger the child's physical or emotional health or
380.4impair the child's emotional development; or
380.5(2) the parent has chronically and unreasonably failed to comply with court-ordered
380.6parenting time.
380.7A modification of parenting time which increases a parent's percentage of parenting time
380.8to an amount that is between 45.1 to 54.9 percent parenting time is not a restriction of
380.9the other parent's parenting time.
380.10(c) (d) If a parent makes specific allegations that parenting time by the other
380.11parent places the parent or child in danger of harm, the court shall hold a hearing at
380.12the earliest possible time to determine the need to modify the order granting parenting
380.13time. Consistent with subdivision 1a, the court may require a third party, including the
380.14local social services agency, to supervise the parenting time or may restrict a parent's
380.15parenting time if necessary to protect the other parent or child from harm. If there is an
380.16existing order for protection governing the parties, the court shall consider the use of an
380.17independent, neutral exchange location for parenting time.
380.18EFFECTIVE DATE.This section is effective August 1, 2018.

380.19    Sec. 30. Minnesota Statutes 2015 Supplement, section 518A.26, subdivision 14,
380.20is amended to read:
380.21    Subd. 14. Obligor. "Obligor" means a person obligated to pay maintenance or
380.22support. For purposes of ordering medical support under section 518A.41, a parent who
380.23has primary physical custody of a child may be an obligor subject to a payment agreement
380.24under section 518A.69. If a parent has more than 55 percent court-ordered parenting
380.25time, there is a rebuttable presumption that the parent has a zero dollar basic support
380.26obligation. A party seeking to overcome this presumption must show, and the court must
380.27consider, the following:
380.28(1) a significant income disparity, which may include potential income determined
380.29under section 518A.32;
380.30(2) the benefit and detriment to the child and the ability of each parent to meet
380.31the needs of the child; and
380.32(3) whether the application of the presumption would have an unjust or inappropriate
380.33result.
381.1The presumption of a zero dollar basic support obligation does not eliminate a parent's
381.2obligation to pay child support arrears under section 518A.60. The presumption of a
381.3zero dollar basic support obligation does not apply to an action under section 256.87,
381.4subdivision 1 or 1a.
381.5EFFECTIVE DATE.This section is effective August 1, 2018.

381.6    Sec. 31. Minnesota Statutes 2014, section 518A.34, is amended to read:
381.7518A.34 COMPUTATION OF CHILD SUPPORT OBLIGATIONS.
381.8    (a) To determine the presumptive child support obligation of a parent, the court shall
381.9follow the procedure set forth in this section.
381.10(b) To determine the obligor's basic support obligation, the court shall:
381.11    (1) determine the gross income of each parent under section 518A.29;
381.12    (2) calculate the parental income for determining child support (PICS) of each
381.13parent, by subtracting from the gross income the credit, if any, for each parent's nonjoint
381.14children under section 518A.33;
381.15    (3) determine the percentage contribution of each parent to the combined PICS by
381.16dividing the combined PICS into each parent's PICS;
381.17    (4) determine the combined basic support obligation by application of the guidelines
381.18in section 518A.35;
381.19    (5) determine the obligor's each parent's share of the combined basic support
381.20obligation by multiplying the percentage figure from clause (3) by the combined basic
381.21support obligation in clause (4); and
381.22    (6) determine the parenting expense adjustment, if any, as apply the parenting
381.23expense adjustment formula provided in section 518A.36, and adjust the obligor's basic
381.24support obligation accordingly to determine the obligor's basic support obligation. If the
381.25parenting time of the parties is presumed equal, section 518A.36, subdivision 3, applies
381.26to the calculation of the basic support obligation and a determination of which parent
381.27is the obligor.
381.28    (c) If the parents have split custody of joint children, child support must be
381.29calculated for each joint child as follows:
381.30(1) the court shall determine each parent's basic support obligation under paragraph
381.31(b) and include the amount of each parent's obligation in the court order. If the basic
381.32support calculation results in each parent owing support to the other, the court shall offset
381.33the higher basic support obligation with the lower basic support obligation to determine
381.34the amount to be paid by the parent with the higher obligation to the parent with the
382.1lower obligation. For the purpose of the cost-of-living adjustment required under section
382.2518A.75, the adjustment must be based on each parent's basic support obligation prior to
382.3offset. For the purposes of this paragraph, "split custody" means that there are two or more
382.4joint children and each parent has at least one joint child more than 50 percent of the time;
382.5(2) if each parent pays all child care expenses for at least one joint child, the court
382.6shall calculate child care support for each joint child as provided in section 518A.40. The
382.7court shall determine each parent's child care support obligation and include the amount of
382.8each parent's obligation in the court order. If the child care support calculation results in
382.9each parent owing support to the other, the court shall offset the higher child care support
382.10obligation with the lower child care support obligation to determine the amount to be paid
382.11by the parent with the higher obligation to the parent with the lower obligation; and
382.12(3) if each parent pays all medical or dental insurance expenses for at least one
382.13joint child, medical support shall be calculated for each joint child as provided in section
382.14518A.41. The court shall determine each parent's medical support obligation and include
382.15the amount of each parent's obligation in the court order. If the medical support calculation
382.16results in each parent owing support to the other, the court shall offset the higher medical
382.17support obligation with the lower medical support obligation to determine the amount to
382.18be paid by the parent with the higher obligation to the parent with the lower obligation.
382.19Unreimbursed and uninsured medical expenses are not included in the presumptive amount
382.20of support owed by a parent and are calculated and collected as provided in section 518A.41.
382.21    (d) The court shall determine the child care support obligation for the obligor
382.22as provided in section 518A.40.
382.23    (d) (e) The court shall determine the medical support obligation for each parent as
382.24provided in section 518A.41. Unreimbursed and uninsured medical expenses are not
382.25included in the presumptive amount of support owed by a parent and are calculated and
382.26collected as described in section 518A.41.
382.27    (e) (f) The court shall determine each parent's total child support obligation by
382.28adding together each parent's basic support, child care support, and health care coverage
382.29obligations as provided in this section.
382.30    (f) (g) If Social Security benefits or veterans' benefits are received by one parent as a
382.31representative payee for a joint child based on the other parent's eligibility, the court shall
382.32subtract the amount of benefits from the other parent's net child support obligation, if any.
382.33    (g) (h) The final child support order shall separately designate the amount owed for
382.34basic support, child care support, and medical support. If applicable, the court shall use
382.35the self-support adjustment and minimum support adjustment under section 518A.42 to
382.36determine the obligor's child support obligation.
383.1EFFECTIVE DATE.This section is effective August 1, 2018.

383.2    Sec. 32. Minnesota Statutes 2014, section 518A.35, subdivision 1, is amended to read:
383.3    Subdivision 1. Determination of support obligation. (a) The guideline in this
383.4section is a rebuttable presumption and shall be used in any judicial or administrative
383.5proceeding to establish or modify a support obligation under this chapter.
383.6    (b) The basic child support obligation shall be determined by referencing the
383.7guideline for the appropriate number of joint children and the combined parental income
383.8for determining child support of the parents.
383.9    (c) If a child is not in the custody of either parent and a support order is sought against
383.10one or both parents, the basic child support obligation shall be determined by referencing
383.11the guideline for the appropriate number of joint children, and the parent's individual
383.12parental income for determining child support, not the combined parental incomes for
383.13determining child support of the parents. Unless a parent has court-ordered parenting time,
383.14the parenting expense adjustment formula under section 518A.34 must not be applied.
383.15    (d) If a child is in custody of either parent and a support order is sought by the public
383.16authority under section 256.87, unless the parent against whom the support order is sought
383.17has court-ordered parenting time, the support obligation must be determined by referencing
383.18the guideline for the appropriate number of joint children and the parent's individual income
383.19without application of the parenting expense adjustment formula under section 518A.34.
383.20    (e) For combined parental incomes for determining child support exceeding $15,000
383.21per month, the presumed basic child support obligations shall be as for parents with
383.22combined parental income for determining child support of $15,000 per month. A basic
383.23child support obligation in excess of this level may be demonstrated for those reasons set
383.24forth in section 518A.43.
383.25EFFECTIVE DATE.This section is effective August 1, 2018.

383.26    Sec. 33. Minnesota Statutes 2014, section 518A.36, is amended to read:
383.27518A.36 PARENTING EXPENSE ADJUSTMENT.
383.28    Subdivision 1. General. (a) The parenting expense adjustment under this section
383.29reflects the presumption that while exercising parenting time, a parent is responsible
383.30for and incurs costs of caring for the child, including, but not limited to, food, clothing,
383.31transportation, recreation, and household expenses. Every child support order shall specify
383.32the percentage of parenting time granted to or presumed for each parent. For purposes
383.33of this section, the percentage of parenting time means the percentage of time a child is
384.1scheduled to spend with the parent during a calendar year according to a court order
384.2averaged over a two-year period. Parenting time includes time with the child whether it is
384.3designated as visitation, physical custody, or parenting time. The percentage of parenting
384.4time may be determined by calculating the number of overnights or overnight equivalents
384.5that a child parent spends with a parent, or child pursuant to a court order. For purposes of
384.6this section, overnight equivalents are calculated by using a method other than overnights
384.7if the parent has significant time periods on separate days where the child is in the parent's
384.8physical custody and under the direct care of the parent but does not stay overnight. The
384.9court may consider the age of the child in determining whether a child is with a parent
384.10for a significant period of time.
384.11(b) If there is not a court order awarding parenting time, the court shall determine
384.12the child support award without consideration of the parenting expense adjustment. If a
384.13parenting time order is subsequently issued or is issued in the same proceeding, then the
384.14child support order shall include application of the parenting expense adjustment.
384.15    Subd. 2. Calculation of parenting expense adjustment. (a) For the purposes of
384.16this section, the following terms have the meanings given:
384.17(1) "parent A" means the parent with whom the child or children will spend the least
384.18number of overnights under the court order; and
384.19(2) "parent B" means the parent with whom the child or children will spend the
384.20greatest number of overnights under the court order.
384.21The obligor is entitled to a parenting expense adjustment calculated as provided in
384.22this subdivision. (b) The court shall apply the following formula to determine which
384.23parent is the obligor and calculate the basic support obligation:
384.24    (1) find the adjustment percentage corresponding to the percentage of parenting
384.25time allowed to the obligor below:

384.26 384.27		Percentage Range of Parenting Time	Adjustment Percentage
384.28	(i)	less than 10 percent	no adjustment
384.29	(ii)	10 percent to 45 percent	12 percent
384.30	(iii)	45.1 percent to 50 percent	presume parenting time is equal

384.31    (2) multiply the adjustment percentage by the obligor's basic child support obligation
384.32to arrive at the parenting expense adjustment; and
384.33    (3) subtract the parenting expense adjustment from the obligor's basic child support
384.34obligation. The result is the obligor's basic support obligation after parenting expense
384.35adjustment.
384.36(1) raise to the power of three the approximate number of annual overnights the child
384.37or children will likely spend with parent A;
385.1(2) raise to the power of three the approximate number of annual overnights the child
385.2or children will likely spend with parent B;
385.3(3) multiply the result of clause (1) times parent B's share of the combined basic
385.4support obligation as determined in section 518A.34, paragraph (b), clause (5);
385.5(4) multiply the result of clause (2) times parent A's share of the combined basic
385.6support obligation as determined in section 518A.34, paragraph (b), clause (5);
385.7(5) subtract the result of clause (4) from the result of clause (3); and
385.8(6) divide the result of clause (5) by the sum of clauses (1) and (2).
385.9(c) If the result is a negative number, parent A is the obligor, the negative number
385.10becomes its positive equivalent, and the result is the basic support obligation. If the result
385.11is a positive number, parent B is the obligor and the result is the basic support obligation.
385.12    Subd. 3. Calculation of basic support when parenting time presumed is equal.
385.13(a) If the parenting time is equal and the parental incomes for determining child support of
385.14the parents also are equal, no basic support shall be paid unless the court determines that
385.15the expenses for the child are not equally shared.
385.16    (b) If the parenting time is equal but the parents' parental incomes for determining
385.17child support are not equal, the parent having the greater parental income for determining
385.18child support shall be obligated for basic child support, calculated as follows:
385.19    (1) multiply the combined basic support calculated under section 518A.34 by 0.75;
385.20    (2) prorate the amount under clause (1) between the parents based on each parent's
385.21proportionate share of the combined PICS; and
385.22(3) subtract the lower amount from the higher amount.
385.23    The resulting figure is the obligation after parenting expense adjustment for the
385.24parent with the greater parental income for determining child support.
385.25EFFECTIVE DATE.This section is effective August 1, 2018.

385.26    Sec. 34. Minnesota Statutes 2015 Supplement, section 518A.39, subdivision 2, is
385.27amended to read:
385.28    Subd. 2. Modification. (a) The terms of an order respecting maintenance or support
385.29may be modified upon a showing of one or more of the following, any of which makes
385.30the terms unreasonable and unfair: (1) substantially increased or decreased gross income
385.31of an obligor or obligee; (2) substantially increased or decreased need of an obligor or
385.32obligee or the child or children that are the subject of these proceedings; (3) receipt of
385.33assistance under the AFDC program formerly codified under sections 256.72 to 256.87
385.34or 256B.01 to 256B.40, or chapter 256J or 256K; (4) a change in the cost of living for
385.35either party as measured by the Federal Bureau of Labor Statistics; (5) extraordinary
386.1medical expenses of the child not provided for under section 518A.41; (6) a change in
386.2the availability of appropriate health care coverage or a substantial increase or decrease
386.3in health care coverage costs; (7) the addition of work-related or education-related child
386.4care expenses of the obligee or a substantial increase or decrease in existing work-related
386.5or education-related child care expenses; or (8) upon the emancipation of the child, as
386.6provided in subdivision 5.
386.7    (b) It is presumed that there has been a substantial change in circumstances under
386.8paragraph (a) and the terms of a current support order shall be rebuttably presumed to be
386.9unreasonable and unfair if:
386.10    (1) the application of the child support guidelines in section 518A.35, to the current
386.11circumstances of the parties results in a calculated court order that is at least 20 percent
386.12and at least $75 per month higher or lower than the current support order or, if the current
386.13support order is less than $75, it results in a calculated court order that is at least 20
386.14percent per month higher or lower;
386.15    (2) the medical support provisions of the order established under section 518A.41
386.16are not enforceable by the public authority or the obligee;
386.17    (3) health coverage ordered under section 518A.41 is not available to the child for
386.18whom the order is established by the parent ordered to provide;
386.19    (4) the existing support obligation is in the form of a statement of percentage and not
386.20a specific dollar amount;
386.21    (5) the gross income of an obligor or obligee has decreased by at least 20 percent
386.22through no fault or choice of the party; or
386.23    (6) a deviation was granted based on the factor in section 518A.43, subdivision 1,
386.24clause (4), and the child no longer resides in a foreign country or the factor is otherwise no
386.25longer applicable.
386.26    (c) A child support order is not presumptively modifiable solely because an obligor
386.27or obligee becomes responsible for the support of an additional nonjoint child, which is
386.28born after an existing order. Section 518A.33 shall be considered if other grounds are
386.29alleged which allow a modification of support.
386.30    (d) If child support was established by applying a parenting expense adjustment
386.31or presumed equal parenting time calculation under previously existing child support
386.32guidelines and there is no parenting plan or order from which overnights or overnight
386.33equivalents can be determined, there is a rebuttable presumption that the established
386.34adjustment or calculation will continue after modification so long as the modification is
386.35not based on a change in parenting time. In determining an obligation under previously
386.36existing child support guidelines, it is presumed that the court shall:
387.1(1) if a 12 percent parenting expense adjustment was applied, multiply the obligor's
387.2share of the combined basic support obligation calculated under section 518A.34,
387.3paragraph (b), clause (5), by .88; or
387.4(2) if the parenting time was presumed equal but the parents' parental incomes for
387.5determining child support were not equal:
387.6(i) multiply the combined basic support obligation under section 518A.34, paragraph
387.7(b), clause (5), by .075;
387.8(ii) prorate the amount under item (i) between the parents based on each parent's
387.9proportionate share of the combined PICS; and
387.10(iii) subtract the lower amount from the higher amount.
387.11    (e) On a motion for modification of maintenance, including a motion for the
387.12extension of the duration of a maintenance award, the court shall apply, in addition to all
387.13other relevant factors, the factors for an award of maintenance under section 518.552 that
387.14exist at the time of the motion. On a motion for modification of support, the court:
387.15    (1) shall apply section 518A.35, and shall not consider the financial circumstances of
387.16each party's spouse, if any; and
387.17    (2) shall not consider compensation received by a party for employment in excess of
387.18a 40-hour work week, provided that the party demonstrates, and the court finds, that:
387.19    (i) the excess employment began after entry of the existing support order;
387.20    (ii) the excess employment is voluntary and not a condition of employment;
387.21    (iii) the excess employment is in the nature of additional, part-time employment, or
387.22overtime employment compensable by the hour or fractions of an hour;
387.23    (iv) the party's compensation structure has not been changed for the purpose of
387.24affecting a support or maintenance obligation;
387.25    (v) in the case of an obligor, current child support payments are at least equal to the
387.26guidelines amount based on income not excluded under this clause; and
387.27    (vi) in the case of an obligor who is in arrears in child support payments to the
387.28obligee, any net income from excess employment must be used to pay the arrearages
387.29until the arrearages are paid in full.
387.30    (e) (f) A modification of support or maintenance, including interest that accrued
387.31pursuant to section 548.091, may be made retroactive only with respect to any period
387.32during which the petitioning party has pending a motion for modification but only from
387.33the date of service of notice of the motion on the responding party and on the public
387.34authority if public assistance is being furnished or the county attorney is the attorney of
387.35record, unless the court adopts an alternative effective date under paragraph (l). The
388.1court's adoption of an alternative effective date under paragraph (l) shall not be considered
388.2a retroactive modification of maintenance or support.
388.3    (f) (g) Except for an award of the right of occupancy of the homestead, provided
388.4in section 518.63, all divisions of real and personal property provided by section 518.58
388.5shall be final, and may be revoked or modified only where the court finds the existence
388.6of conditions that justify reopening a judgment under the laws of this state, including
388.7motions under section 518.145, subdivision 2. The court may impose a lien or charge on
388.8the divided property at any time while the property, or subsequently acquired property, is
388.9owned by the parties or either of them, for the payment of maintenance or support money,
388.10or may sequester the property as is provided by section 518A.71.
388.11    (g) (h) The court need not hold an evidentiary hearing on a motion for modification
388.12of maintenance or support.
388.13    (h) (i) Sections 518.14 and 518A.735 shall govern the award of attorney fees for
388.14motions brought under this subdivision.
388.15    (i) (j) Except as expressly provided, an enactment, amendment, or repeal of law does
388.16not constitute a substantial change in the circumstances for purposes of modifying a
388.17child support order.
388.18    (j) MS 2006 [Expired]
388.19    (k) On the first modification under the income shares method of calculation
388.20following implementation of amended child support guidelines, the modification of
388.21basic support may be limited if the amount of the full variance would create hardship
388.22for either the obligor or the obligee. Hardship includes, but is not limited to, eligibility
388.23for assistance under chapter 256J.
388.24    (l) The court may select an alternative effective date for a maintenance or support
388.25order if the parties enter into a binding agreement for an alternative effective date.
388.26EFFECTIVE DATE.This section is effective August 1, 2018.

388.27    Sec. 35. Minnesota Statutes 2014, section 609.3241, is amended to read:
388.28609.3241 PENALTY ASSESSMENT AUTHORIZED.
388.29(a) When a court sentences an adult convicted of violating section 609.322 or
388.30609.324 , while acting other than as a prostitute, the court shall impose an assessment of
388.31not less than $500 and not more than $750 for a violation of section 609.324, subdivision
388.322 , or a misdemeanor violation of section 609.324, subdivision 3; otherwise the court shall
388.33impose an assessment of not less than $750 and not more than $1,000. The assessment
389.1shall be distributed as provided in paragraph (c) and is in addition to the surcharge
389.2required by section 357.021, subdivision 6.
389.3(b) The court may not waive payment of the minimum assessment required by
389.4this section. If the defendant qualifies for the services of a public defender or the court
389.5finds on the record that the convicted person is indigent or that immediate payment of
389.6the assessment would create undue hardship for the convicted person or that person's
389.7immediate family, the court may reduce the amount of the minimum assessment to not
389.8less than $100. The court also may authorize payment of the assessment in installments.
389.9(c) The assessment collected under paragraph (a) must be distributed as follows:
389.10(1) 40 percent of the assessment shall be forwarded to the political subdivision that
389.11employs the arresting officer for use in enforcement, training, and education activities
389.12related to combating sexual exploitation of youth, or if the arresting officer is an employee
389.13of the state, this portion shall be forwarded to the commissioner of public safety for those
389.14purposes identified in clause (3);
389.15(2) 20 percent of the assessment shall be forwarded to the prosecuting agency that
389.16handled the case for use in training and education activities relating to combating sexual
389.17exploitation activities of youth; and
389.18(3) 40 percent of the assessment must be forwarded to the commissioner of public
389.19safety health to be deposited in the safe harbor for youth account in the special revenue
389.20fund and are appropriated to the commissioner for distribution to crime victims services
389.21organizations that provide services to sexually exploited youth, as defined in section
389.22260C.007, subdivision 31 .
389.23(d) A safe harbor for youth account is established as a special account in the state
389.24treasury.

389.25    Sec. 36. Minnesota Statutes 2015 Supplement, section 626.556, subdivision 2, is
389.26amended to read:
389.27    Subd. 2. Definitions. As used in this section, the following terms have the meanings
389.28given them unless the specific content indicates otherwise:
389.29    (a) "Accidental" means a sudden, not reasonably foreseeable, and unexpected
389.30occurrence or event which:
389.31    (1) is not likely to occur and could not have been prevented by exercise of due
389.32care; and
389.33    (2) if occurring while a child is receiving services from a facility, happens when the
389.34facility and the employee or person providing services in the facility are in compliance
389.35with the laws and rules relevant to the occurrence or event.
390.1    (b) "Commissioner" means the commissioner of human services.
390.2    (c) "Facility" means:
390.3    (1) a licensed or unlicensed day care facility, residential facility, agency, hospital,
390.4sanitarium, or other facility or institution required to be licensed under sections 144.50 to
390.5144.58 , 241.021, or 245A.01 to 245A.16, or chapter 245D;
390.6    (2) a school as defined in section 120A.05, subdivisions 9, 11, and 13; and chapter
390.7124E; or
390.8    (3) a nonlicensed personal care provider organization as defined in section
390.9256B.0625, subdivision 19a .
390.10    (d) "Family assessment" means a comprehensive assessment of child safety, risk of
390.11subsequent child maltreatment, and family strengths and needs that is applied to a child
390.12maltreatment report that does not allege sexual abuse or substantial child endangerment.
390.13Family assessment does not include a determination as to whether child maltreatment
390.14occurred but does determine the need for services to address the safety of family members
390.15and the risk of subsequent maltreatment.
390.16    (e) "Investigation" means fact gathering related to the current safety of a child
390.17and the risk of subsequent maltreatment that determines whether child maltreatment
390.18occurred and whether child protective services are needed. An investigation must be used
390.19when reports involve sexual abuse or substantial child endangerment, and for reports of
390.20maltreatment in facilities required to be licensed under chapter 245A or 245D; under
390.21sections 144.50 to 144.58 and 241.021; in a school as defined in section 120A.05,
390.22subdivisions 9 , 11, and 13, and chapter 124E; or in a nonlicensed personal care provider
390.23association as defined in section 256B.0625, subdivision 19a.
390.24    (f) "Mental injury" means an injury to the psychological capacity or emotional
390.25stability of a child as evidenced by an observable or substantial impairment in the child's
390.26ability to function within a normal range of performance and behavior with due regard to
390.27the child's culture.
390.28    (g) "Neglect" means the commission or omission of any of the acts specified under
390.29clauses (1) to (9), other than by accidental means:
390.30    (1) failure by a person responsible for a child's care to supply a child with necessary
390.31food, clothing, shelter, health, medical, or other care required for the child's physical or
390.32mental health when reasonably able to do so;
390.33    (2) failure to protect a child from conditions or actions that seriously endanger the
390.34child's physical or mental health when reasonably able to do so, including a growth delay,
390.35which may be referred to as a failure to thrive, that has been diagnosed by a physician and
390.36is due to parental neglect;
391.1    (3) failure to provide for necessary supervision or child care arrangements
391.2appropriate for a child after considering factors as the child's age, mental ability, physical
391.3condition, length of absence, or environment, when the child is unable to care for the
391.4child's own basic needs or safety, or the basic needs or safety of another child in their care;
391.5    (4) failure to ensure that the child is educated as defined in sections 120A.22 and
391.6260C.163, subdivision 11 , which does not include a parent's refusal to provide the parent's
391.7child with sympathomimetic medications, consistent with section 125A.091, subdivision 5;
391.8    (5) nothing in this section shall be construed to mean that a child is neglected solely
391.9because the child's parent, guardian, or other person responsible for the child's care in
391.10good faith selects and depends upon spiritual means or prayer for treatment or care of
391.11disease or remedial care of the child in lieu of medical care; except that a parent, guardian,
391.12or caretaker, or a person mandated to report pursuant to subdivision 3, has a duty to report
391.13if a lack of medical care may cause serious danger to the child's health. This section does
391.14not impose upon persons, not otherwise legally responsible for providing a child with
391.15necessary food, clothing, shelter, education, or medical care, a duty to provide that care;
391.16    (6) prenatal exposure to a controlled substance, as defined in section 253B.02,
391.17subdivision 2, used by the mother for a nonmedical purpose, as evidenced by withdrawal
391.18symptoms in the child at birth, results of a toxicology test performed on the mother at
391.19delivery or the child at birth, medical effects or developmental delays during the child's
391.20first year of life that medically indicate prenatal exposure to a controlled substance, or the
391.21presence of a fetal alcohol spectrum disorder;
391.22    (7) "medical neglect" as defined in section 260C.007, subdivision 6, clause (5);
391.23    (8) chronic and severe use of alcohol or a controlled substance by a parent or
391.24person responsible for the care of the child that adversely affects the child's basic needs
391.25and safety; or
391.26    (9) emotional harm from a pattern of behavior which contributes to impaired
391.27emotional functioning of the child which may be demonstrated by a substantial and
391.28observable effect in the child's behavior, emotional response, or cognition that is not
391.29within the normal range for the child's age and stage of development, with due regard to
391.30the child's culture.
391.31(h) "Nonmaltreatment mistake" means:
391.32(1) at the time of the incident, the individual was performing duties identified in the
391.33center's child care program plan required under Minnesota Rules, part 9503.0045;
391.34(2) the individual has not been determined responsible for a similar incident that
391.35resulted in a finding of maltreatment for at least seven years;
392.1(3) the individual has not been determined to have committed a similar
392.2nonmaltreatment mistake under this paragraph for at least four years;
392.3(4) any injury to a child resulting from the incident, if treated, is treated only with
392.4remedies that are available over the counter, whether ordered by a medical professional or
392.5not; and
392.6(5) except for the period when the incident occurred, the facility and the individual
392.7providing services were both in compliance with all licensing requirements relevant to the
392.8incident.
392.9This definition only applies to child care centers licensed under Minnesota
392.10Rules, chapter 9503. If clauses (1) to (5) apply, rather than making a determination of
392.11substantiated maltreatment by the individual, the commissioner of human services shall
392.12determine that a nonmaltreatment mistake was made by the individual.
392.13    (i) "Operator" means an operator or agency as defined in section 245A.02.
392.14    (j) "Person responsible for the child's care" means (1) an individual functioning
392.15within the family unit and having responsibilities for the care of the child such as a
392.16parent, guardian, or other person having similar care responsibilities, or (2) an individual
392.17functioning outside the family unit and having responsibilities for the care of the child
392.18such as a teacher, school administrator, other school employees or agents, or other lawful
392.19custodian of a child having either full-time or short-term care responsibilities including,
392.20but not limited to, day care, babysitting whether paid or unpaid, counseling, teaching,
392.21and coaching.
392.22    (k) "Physical abuse" means any physical injury, mental injury, or threatened injury,
392.23inflicted by a person responsible for the child's care on a child other than by accidental
392.24means, or any physical or mental injury that cannot reasonably be explained by the child's
392.25history of injuries, or any aversive or deprivation procedures, or regulated interventions,
392.26that have not been authorized under section 125A.0942 or 245.825.
392.27    Abuse does not include reasonable and moderate physical discipline of a child
392.28administered by a parent or legal guardian which does not result in an injury. Abuse does
392.29not include the use of reasonable force by a teacher, principal, or school employee as
392.30allowed by section 121A.582. Actions which are not reasonable and moderate include, but
392.31are not limited to, any of the following:
392.32    (1) throwing, kicking, burning, biting, or cutting a child;
392.33    (2) striking a child with a closed fist;
392.34    (3) shaking a child under age three;
392.35    (4) striking or other actions which result in any nonaccidental injury to a child
392.36under 18 months of age;
393.1    (5) unreasonable interference with a child's breathing;
393.2    (6) threatening a child with a weapon, as defined in section 609.02, subdivision 6;
393.3    (7) striking a child under age one on the face or head;
393.4    (8) striking a child who is at least age one but under age four on the face or head,
393.5which results in an injury;
393.6    (9) purposely giving a child poison, alcohol, or dangerous, harmful, or controlled
393.7substances which were not prescribed for the child by a practitioner, in order to control or
393.8punish the child; or other substances that substantially affect the child's behavior, motor
393.9coordination, or judgment or that results in sickness or internal injury, or subjects the
393.10child to medical procedures that would be unnecessary if the child were not exposed
393.11to the substances;
393.12    (10) unreasonable physical confinement or restraint not permitted under section
393.13609.379 , including but not limited to tying, caging, or chaining; or
393.14    (11) in a school facility or school zone, an act by a person responsible for the child's
393.15care that is a violation under section 121A.58.
393.16    (l) "Practice of social services," for the purposes of subdivision 3, includes but is
393.17not limited to employee assistance counseling and the provision of guardian ad litem and
393.18parenting time expeditor services.
393.19    (m) "Report" means any communication received by the local welfare agency,
393.20police department, county sheriff, or agency responsible for child protection pursuant to
393.21this section that describes neglect or physical or sexual abuse of a child and contains
393.22sufficient content to identify the child and any person believed to be responsible for the
393.23neglect or abuse, if known.
393.24    (n) "Sexual abuse" means the subjection of a child by a person responsible for the
393.25child's care, by a person who has a significant relationship to the child, as defined in section
393.26609.341 , or by a person in a position of authority, as defined in section 609.341, subdivision
393.2710, to any act which constitutes a violation of section 609.342 (criminal sexual conduct in
393.28the first degree), 609.343 (criminal sexual conduct in the second degree), 609.344 (criminal
393.29sexual conduct in the third degree), 609.345 (criminal sexual conduct in the fourth degree),
393.30or 609.3451 (criminal sexual conduct in the fifth degree). Sexual abuse also includes any
393.31act which involves a minor which constitutes a violation of prostitution offenses under
393.32sections 609.321 to 609.324 or 617.246. Effective May 29, 2017, sexual abuse includes all
393.33reports of known or suspected child sex trafficking involving a child who is identified as a
393.34victim of sex trafficking. Sexual abuse includes child sex trafficking as defined in section
393.35609.321, subdivisions 7a and 7b. Sexual abuse includes threatened sexual abuse which
393.36includes the status of a parent or household member who has committed a violation which
394.1requires registration as an offender under section 243.166, subdivision 1b, paragraph (a)
394.2or (b), or required registration under section 243.166, subdivision 1b, paragraph (a) or (b).
394.3    (o) "Substantial child endangerment" means a person responsible for a child's care,
394.4by act or omission, commits or attempts to commit an act against a child under their
394.5care that constitutes any of the following:
394.6    (1) egregious harm as defined in section 260C.007, subdivision 14;
394.7    (2) abandonment under section 260C.301, subdivision 2;
394.8    (3) neglect as defined in paragraph (g), clause (2), that substantially endangers the
394.9child's physical or mental health, including a growth delay, which may be referred to as
394.10failure to thrive, that has been diagnosed by a physician and is due to parental neglect;
394.11    (4) murder in the first, second, or third degree under section 609.185, 609.19, or
394.12609.195 ;
394.13    (5) manslaughter in the first or second degree under section 609.20 or 609.205;
394.14    (6) assault in the first, second, or third degree under section 609.221, 609.222, or
394.15609.223 ;
394.16    (7) solicitation, inducement, and promotion of prostitution under section 609.322;
394.17    (8) criminal sexual conduct under sections 609.342 to 609.3451;
394.18    (9) solicitation of children to engage in sexual conduct under section 609.352;
394.19    (10) malicious punishment or neglect or endangerment of a child under section
394.20609.377 or 609.378;
394.21    (11) use of a minor in sexual performance under section 617.246; or
394.22    (12) parental behavior, status, or condition which mandates that the county attorney
394.23file a termination of parental rights petition under section 260C.503, subdivision 2.
394.24    (p) "Threatened injury" means a statement, overt act, condition, or status that
394.25represents a substantial risk of physical or sexual abuse or mental injury. Threatened
394.26injury includes, but is not limited to, exposing a child to a person responsible for the
394.27child's care, as defined in paragraph (j), clause (1), who has:
394.28    (1) subjected a child to, or failed to protect a child from, an overt act or condition
394.29that constitutes egregious harm, as defined in section 260C.007, subdivision 14, or a
394.30similar law of another jurisdiction;
394.31    (2) been found to be palpably unfit under section 260C.301, subdivision 1, paragraph
394.32(b), clause (4), or a similar law of another jurisdiction;
394.33    (3) committed an act that has resulted in an involuntary termination of parental rights
394.34under section 260C.301, or a similar law of another jurisdiction; or
394.35    (4) committed an act that has resulted in the involuntary transfer of permanent
394.36legal and physical custody of a child to a relative under Minnesota Statutes 2010, section
395.1260C.201, subdivision 11 , paragraph (d), clause (1), section 260C.515, subdivision 4, or a
395.2similar law of another jurisdiction.
395.3A child is the subject of a report of threatened injury when the responsible social
395.4services agency receives birth match data under paragraph (q) from the Department of
395.5Human Services.
395.6(q) Upon receiving data under section 144.225, subdivision 2b, contained in a
395.7birth record or recognition of parentage identifying a child who is subject to threatened
395.8injury under paragraph (p), the Department of Human Services shall send the data to the
395.9responsible social services agency. The data is known as "birth match" data. Unless the
395.10responsible social services agency has already begun an investigation or assessment of the
395.11report due to the birth of the child or execution of the recognition of parentage and the
395.12parent's previous history with child protection, the agency shall accept the birth match
395.13data as a report under this section. The agency may use either a family assessment or
395.14investigation to determine whether the child is safe. All of the provisions of this section
395.15apply. If the child is determined to be safe, the agency shall consult with the county
395.16attorney to determine the appropriateness of filing a petition alleging the child is in need
395.17of protection or services under section 260C.007, subdivision 6, clause (16), in order to
395.18deliver needed services. If the child is determined not to be safe, the agency and the county
395.19attorney shall take appropriate action as required under section 260C.503, subdivision 2.
395.20    (r) Persons who conduct assessments or investigations under this section shall take
395.21into account accepted child-rearing practices of the culture in which a child participates
395.22and accepted teacher discipline practices, which are not injurious to the child's health,
395.23welfare, and safety.

395.24    Sec. 37. Minnesota Statutes 2015 Supplement, section 626.556, subdivision 3c,
395.25is amended to read:
395.26    Subd. 3c. Local welfare agency, Department of Human Services or Department
395.27of Health responsible for assessing or investigating reports of maltreatment or death.
395.28(a) Except as provided in paragraph (b), the county local welfare agency is the agency
395.29responsible for assessing or investigating allegations of maltreatment in child foster care
395.30that do not involve the death of a foster child, family child care, legally unlicensed
395.31child care, juvenile correctional facilities licensed under section 241.021 located in the
395.32local welfare agency's county, and reports involving children served by an unlicensed
395.33personal care provider organization under section 256B.0659. Copies of findings related
395.34to personal care provider organizations under section 256B.0659 must be forwarded to
395.35the Department of Human Services provider enrollment.
396.1(b) The Department of Human Services is the agency responsible for assessing or
396.2investigating allegations of maltreatment in:
396.3(1) facilities licensed under chapters 245A and 245D, except for in child foster care
396.4and family child care homes that are monitored by county agencies according to section
396.5245A.16, subdivision 1;
396.6(2) child foster care homes that are monitored by private agencies that have been
396.7licensed by the commissioner to perform licensing functions and activities according to
396.8section 245A.16, subdivision 1; and
396.9(3) child foster care and family child care homes that are monitored by county
396.10agencies according to section 245A.16, subdivision 1, upon agreement by the county and
396.11Department of Human Services for a specific case.
396.12(c) The Department of Human Services is responsible for investigating the death
396.13of a child placed in a foster care program.
396.14(d) The Department of Health is the agency responsible for assessing or investigating
396.15allegations of child maltreatment in facilities licensed under sections 144.50 to 144.58
396.16and 144A.46.

396.17    Sec. 38. Minnesota Statutes 2014, section 626.556, subdivision 3e, is amended to read:
396.18    Subd. 3e. Agency responsible for assessing or investigating reports of sexual
396.19abuse. The local welfare agency is the agency responsible for investigating allegations
396.20of sexual abuse if the alleged offender is the parent, guardian, sibling, or an individual
396.21functioning within the family unit as a person responsible for the child's care, or a person
396.22with a significant relationship to the child if that person resides in the child's household.
396.23Effective May 29, 2017, the local welfare agency is also responsible for investigating
396.24when a child is identified as a victim of sex trafficking.

396.25    Sec. 39. Minnesota Statutes 2015 Supplement, section 626.556, subdivision 10b,
396.26is amended to read:
396.27    Subd. 10b. Duties of commissioner; neglect or, abuse, or death in a facility. (a)
396.28This section applies to the commissioners of human services, health, and education. The
396.29commissioner of the agency responsible for assessing or investigating the report shall
396.30immediately assess or investigate if the report alleges that:
396.31(1) a child who is in the care of a facility as defined in subdivision 2 is neglected,
396.32physically abused, sexually abused, or is the victim of maltreatment in a facility by an
396.33individual in that facility, or has been so neglected or abused, or been the victim of
397.1maltreatment in a facility by an individual in that facility within the three years preceding
397.2the report; or
397.3(2) a child was neglected, physically abused, sexually abused, or is the victim of
397.4maltreatment in a facility by an individual in a facility defined in subdivision 2, while in
397.5the care of that facility within the three years preceding the report.
397.6The commissioner of the agency responsible for assessing or investigating the
397.7report shall arrange for the transmittal to the commissioner of reports received by local
397.8agencies and may delegate to a local welfare agency the duty to investigate reports. In
397.9conducting an investigation under this section, the commissioner has the powers and
397.10duties specified for local welfare agencies under this section. The commissioner of the
397.11agency responsible for assessing or investigating the report or local welfare agency may
397.12interview any children who are or have been in the care of a facility under investigation
397.13and their parents, guardians, or legal custodians.
397.14(b) Prior to any interview, the commissioner of the agency responsible for assessing
397.15or investigating the report or local welfare agency shall notify the parent, guardian, or legal
397.16custodian of a child who will be interviewed in the manner provided for in subdivision
397.1710d, paragraph (a). If reasonable efforts to reach the parent, guardian, or legal custodian
397.18of a child in an out-of-home placement have failed, the child may be interviewed if there
397.19is reason to believe the interview is necessary to protect the child or other children in the
397.20facility. The commissioner of the agency responsible for assessing or investigating the
397.21report or local agency must provide the information required in this subdivision to the
397.22parent, guardian, or legal custodian of a child interviewed without parental notification
397.23as soon as possible after the interview. When the investigation is completed, any parent,
397.24guardian, or legal custodian notified under this subdivision shall receive the written
397.25memorandum provided for in subdivision 10d, paragraph (c).
397.26(c) In conducting investigations under this subdivision the commissioner or local
397.27welfare agency shall obtain access to information consistent with subdivision 10,
397.28paragraphs (h), (i), and (j). In conducting assessments or investigations under this
397.29subdivision, the commissioner of education shall obtain access to reports and investigative
397.30data that are relevant to a report of maltreatment and are in the possession of a school
397.31facility as defined in subdivision 2, paragraph (c), notwithstanding the classification of the
397.32data as educational or personnel data under chapter 13. This includes, but is not limited
397.33to, school investigative reports, information concerning the conduct of school personnel
397.34alleged to have committed maltreatment of students, information about witnesses, and any
397.35protective or corrective action taken by the school facility regarding the school personnel
397.36alleged to have committed maltreatment.
398.1(d) The commissioner may request assistance from the local social services agency.
398.2(e) The commissioner of human services shall investigate every incident involving
398.3the death of a child during placement in a child foster care home licensed under chapter
398.4245A and Minnesota Rules, chapter 2960. The investigation, notifications, and data
398.5classifications are governed by this section, even if abuse or neglect is not alleged or
398.6determined in the report.

398.7    Sec. 40. Minnesota Statutes 2014, section 626.556, subdivision 10f, is amended to read:
398.8    Subd. 10f. Notice of determinations. Within ten working days of the conclusion
398.9of a family assessment, the local welfare agency shall notify the parent or guardian of
398.10the child of the need for services to address child safety concerns or significant risk of
398.11subsequent child maltreatment. The local welfare agency and the family may also jointly
398.12agree that family support and family preservation services are needed. Within ten working
398.13days of the conclusion of an investigation, the local welfare agency or agency responsible
398.14for investigating the report shall notify the parent or guardian of the child, the person
398.15determined to be maltreating the child, and, if applicable, the director of the facility, of
398.16the determination and a summary of the specific reasons for the determination. When the
398.17investigation involves a child foster care setting that is monitored by a private licensing
398.18agency under section 245A.16, the local welfare agency responsible for investigating the
398.19report Department of Human Services shall notify the private licensing agency of the
398.20determination and shall provide a summary of the specific reasons for the determination.
398.21The notice to the private licensing agency must include identifying private data, but not the
398.22identity of the reporter of maltreatment. The notice must also include a certification that the
398.23information collection procedures under subdivision 10, paragraphs (h), (i), and (j), were
398.24followed and a notice of the right of a data subject to obtain access to other private data
398.25on the subject collected, created, or maintained under this section. In addition, the notice
398.26shall include the length of time that the records will be kept under subdivision 11c. The
398.27investigating agency shall notify the parent or guardian of the child who is the subject of
398.28the report, and any person or facility determined to have maltreated a child, of their appeal
398.29or review rights under this section. The notice must also state that a finding of maltreatment
398.30may result in denial of a license application or background study disqualification under
398.31chapter 245C related to employment or services that are licensed by the Department of
398.32Human Services under chapter 245A, the Department of Health under chapter 144 or
398.33144A, the Department of Corrections under section 241.021, and from providing services
398.34related to an unlicensed personal care provider organization under chapter 256B.

399.1    Sec. 41. CHILD CARE IS AN ALLOWABLE SERVICE FOR PURPOSES OF
399.2CHILD PROTECTION.
399.3The commissioner shall change the brass code related to allowable child protection
399.4services to include child care.

399.5    Sec. 42. DIRECTION TO COMMISSIONERS; INCOME AND ASSET
399.6EXCLUSION.
399.7(a) The commissioner of human services shall not count payments made to families
399.8by the income and child development in the first three years of life demonstration
399.9project as income or assets for purposes of determining or redetermining eligibility for
399.10child care assistance programs under Minnesota Statutes, chapter 119B; the Minnesota
399.11family investment program, work benefit program, or diversionary work program under
399.12Minnesota Statutes, chapter 256J, during the duration of the demonstration.
399.13(b) The commissioner of human services shall not count payments made to families
399.14by the income and child development in the first three years of life demonstration project
399.15as income for purposes of determining or redetermining eligibility for medical assistance
399.16under Minnesota Statutes, chapter 256B, and MinnesotaCare under Minnesota Statutes,
399.17chapter 256L.
399.18(c) For the purposes of this section, "income and child development in the first
399.19three years of life demonstration project" means a demonstration project funded by the
399.20United States Department of Health and Human Services National Institutes of Health to
399.21evaluate whether the unconditional cash payments have a causal effect on the cognitive,
399.22socioemotional, and brain development of infants and toddlers.
399.23(d) This section shall only be implemented if Minnesota is chosen as a site for the child
399.24development in the first three years of life demonstration site, and expires January 1, 2022.
399.25(e) The commissioner of human services shall provide a report to the legislative
399.26committees having jurisdiction over human services issues by January 1, 2023, informing
399.27the legislature on the progress and outcomes of the demonstration under this section.
399.28EFFECTIVE DATE.Paragraph (b) is effective August 16, 2016, or upon federal
399.29approval, whichever is later.

399.30    Sec. 43. REVIEW OF CHILD FOSTER CARE PRIVATE AGENCIES.
399.31The commissioner of human services shall convene a working group to review the
399.32impact of removing the licensing responsibilities from private agencies (previously "Rule
399.334"), and replacing those duties with responsibilities to provide technical assistance for
399.34prospective foster care providers, care coordination for children in foster care, and training
400.1support for foster parents. The commissioner shall submit a report to the 2017 legislative
400.2committees with jurisdiction over foster care issues by January 15, 2017, with language
400.3and an analysis of costs associated with these changes.

400.4    Sec. 44. CHILD CARE LIABILITY INSURANCE REPORT.
400.5The commissioner of human services shall conduct a survey and report on existing
400.6liability insurance and the availability of coverage for family child care license holders.
400.7The survey shall be conducted from a representative sample of county licensors or current
400.8license holders. At a minimum, the report must address the following:
400.9(1) the number of currently licensed family child care providers surveyed who
400.10have liability insurance;
400.11(2) the availability, accessibility, and levels and cost of coverage provided for
400.12personal injury, death, or property damage resulting from the negligent acts or omissions
400.13related to the provision of services under a family child care license under Minnesota
400.14Rules, chapter 9502; and
400.15(3) the regulatory or legislative actions necessary to require that insurance coverage
400.16is maintained throughout the term of the license.
400.17The report must be submitted to the chairs and ranking minority members of the
400.18senate and house of representatives committees with jurisdiction over child care licensing
400.19policy and finance no later than January 16, 2017.
400.20EFFECTIVE DATE.This section is effective the day following final enactment.

400.21ARTICLE 22

400.22MENTAL HEALTH

400.23    Section 1. Minnesota Statutes 2015 Supplement, section 245.735, subdivision 3,
400.24is amended to read:
400.25    Subd. 3. Reform projects Certified community behavioral health clinics. (a) The
400.26commissioner shall establish standards for a state certification of clinics as process for
400.27certified community behavioral health clinics, in accordance (CCBHCs) to be eligible for
400.28the prospective payment system in paragraph (f). Entities that choose to be CCBHCs must:
400.29(1) comply with the CCBHC criteria published on or before September 1, 2015, by
400.30the United States Department of Health and Human Services. Certification standards
400.31established by the commissioner shall require that:;
401.1(1) (2) employ or contract for clinic staff who have backgrounds in diverse
401.2disciplines, include including licensed mental health professionals, and staff who are
401.3culturally and linguistically trained to serve the needs of the clinic's patient population;
401.4(2) (3) ensure that clinic services are available and accessible to patients of all ages
401.5and genders and that crisis management services are available 24 hours per day;
401.6(3) (4) establish fees for clinic services are established for non-medical assistance
401.7patients using a sliding fee scale and that ensures that services to patients are not denied
401.8or limited due to a patient's inability to pay for services;
401.9(4) clinics provide coordination of care across settings and providers to ensure
401.10seamless transitions for patients across the full spectrum of health services, including
401.11acute, chronic, and behavioral needs. Care coordination may be accomplished through
401.12partnerships or formal contracts with federally qualified health centers, inpatient
401.13psychiatric facilities, substance use and detoxification facilities, community-based mental
401.14health providers, and other community services, supports, and providers including
401.15schools, child welfare agencies, juvenile and criminal justice agencies, Indian Health
401.16Services clinics, tribally licensed health care and mental health facilities, urban Indian
401.17health clinics, Department of Veterans Affairs medical centers, outpatient clinics, drop-in
401.18centers, acute care hospitals, and hospital outpatient clinics; (5) comply with quality
401.19assurance reporting requirements and other reporting requirements, including any required
401.20reporting of encounter data, clinical outcomes data, and quality data;
401.21(5) services provided by clinics include (6) provide crisis mental health services,
401.22withdrawal management services, emergency crisis intervention services, and stabilization
401.23services; screening, assessment, and diagnosis services, including risk assessments and
401.24level of care determinations; patient-centered treatment planning; outpatient mental
401.25health and substance use services; targeted case management; psychiatric rehabilitation
401.26services; peer support and counselor services and family support services; and intensive
401.27community-based mental health services, including mental health services for members of
401.28the armed forces and veterans; and
401.29(6) clinics comply with quality assurance reporting requirements and other reporting
401.30requirements, including any required reporting of encounter data, clinical outcomes data,
401.31and quality data. (7) provide coordination of care across settings and providers to ensure
401.32seamless transitions for patients across the full spectrum of health services, including
401.33acute, chronic, and behavioral needs. Care coordination may be accomplished through
401.34partnerships or formal contracts with:
402.1(i) counties, health plans, pharmacists, pharmacies, rural health clinics, federally
402.2qualified health centers, inpatient psychiatric facilities, substance use and detoxification
402.3facilities, community-based mental health providers; and
402.4(ii) other community services, supports, and providers, including schools, child
402.5welfare agencies, juvenile and criminal justice agencies, Indian health services clinics,
402.6tribally licensed health care and mental health facilities, urban Indian health clinics,
402.7Department of Veterans Affairs medical centers, outpatient clinics, drop-in centers, acute
402.8care hospitals, and hospital outpatient clinics;
402.9(8) be certified as mental health clinics under section 245.69, subdivision 2;
402.10(9) comply with standards relating to integrated treatment for co-occurring mental
402.11illness and substance use disorders in adults or children under Minnesota Rules, chapter
402.129533;
402.13(10) comply with standards relating to mental health services in Minnesota Rules,
402.14parts 9505.0370 to 9505.0372;
402.15(11) be licensed to provide chemical dependency treatment under Minnesota Rules,
402.16parts 9530.6405 to 9530.6505;
402.17(12) be certified to provide children's therapeutic services and supports under
402.18section 256B.0943;
402.19(13) be certified to provide adult rehabilitative mental health services under section
402.20256B.0623;
402.21(14) be enrolled to provide mental health crisis response services under section
402.22256B.0624;
402.23(15) be enrolled to provide mental health targeted case management under section
402.24256B.0625, subdivision 20;
402.25(16) comply with standards relating to mental health case management in Minnesota
402.26Rules, parts 9520.0900 to 9520.0926; and
402.27(17) provide services that comply with the evidence-based practices described in
402.28paragraph (e).
402.29(b) If an entity is unable to provide one or more of the services listed in paragraph
402.30(a), clauses (6) to (17), the commissioner may certify the entity as a CCBHC if it has a
402.31current contract with another entity that has the required authority to provide that service
402.32and that meets federal CCBHC criteria as a designated collaborating organization; or, to
402.33the extent allowed by the federal CCBHC criteria, the commissioner may approve a
402.34referral arrangement. The CCBHC must meet federal requirements regarding the type and
402.35scope of services to be provided directly by the CCBHC.
403.1(c) Notwithstanding other law that requires a county contract or other form of county
403.2approval for certain services listed in paragraph (a), clause (6), a clinic that otherwise
403.3meets CCBHC requirements may receive the prospective payment under paragraph (f)
403.4for those services without a county contract or county approval. There is no county
403.5share when medical assistance pays the CCBHC prospective payment. As part of the
403.6certification process in paragraph (a), the commissioner shall require a letter of support
403.7from the CCBHC's host county confirming that the CCBHC and the county or counties it
403.8serves have an ongoing relationship to facilitate access and continuity of care, especially
403.9for individuals who are uninsured or who may go on and off medical assistance.
403.10(d) When the standards listed in paragraph (a) or other applicable standards
403.11conflict or address similar issues in duplicative or incompatible ways, the commissioner
403.12may grant variances to state requirements if the variances do not conflict with federal
403.13requirements. If standards overlap, the commissioner may substitute all or a part of a
403.14licensure or certification that is substantially the same as another licensure or certification.
403.15The commissioner shall consult with stakeholders, as described in subdivision 4, before
403.16granting variances under this provision.
403.17(e) The commissioner shall issue a list of required evidence-based practices to be
403.18delivered by certified community behavioral health clinics, and may also provide a list
403.19of recommended evidence-based practices. The commissioner may update the list to
403.20reflect advances in outcomes research and medical services for persons living with mental
403.21illnesses or substance use disorders. The commissioner shall take into consideration the
403.22adequacy of evidence to support the efficacy of the practice, the quality of workforce
403.23available, and the current availability of the practice in the state. At least 30 days before
403.24issuing the initial list and any revisions, the commissioner shall provide stakeholders
403.25with an opportunity to comment.
403.26(b) (f) The commissioner shall establish standards and methodologies for a
403.27prospective payment system for medical assistance payments for mental health services
403.28delivered by certified community behavioral health clinics, in accordance with guidance
403.29issued on or before September 1, 2015, by the Centers for Medicare and Medicaid
403.30Services. During the operation of the demonstration project, payments shall comply with
403.31federal requirements for a 90 percent an enhanced federal medical assistance percentage.
403.32The commissioner may include quality bonus payments in the prospective payment
403.33system based on federal criteria and on a clinic's provision of the evidence-based practices
403.34in paragraph (e). The prospective payments system does not apply to MinnesotaCare.
403.35Implementation of the prospective payment system is effective July 1, 2017, or upon
403.36federal approval, whichever is later.
404.1(g) The commissioner shall seek federal approval to continue federal financial
404.2participation in payment for CCBHC services after the federal demonstration period
404.3ends for clinics that were certified as CCBHCs during the demonstration period and
404.4that continue to meet the CCBHC certification standards in paragraph (a). Payment
404.5for CCBHC services shall cease effective July 1, 2019, if continued federal financial
404.6participation for the payment of CCBHC services cannot be obtained.
404.7(h) To the extent allowed by federal law, the commissioner may limit the number of
404.8certified clinics so that the projected claims for certified clinics will not exceed the funds
404.9budgeted for this purpose. The commissioner shall give preference to clinics that:
404.10(1) are located in both rural and urban areas, with at least one in each area, as
404.11defined by federal criteria;
404.12(2) provide a comprehensive range of services and evidence-based practices for all
404.13age groups, with services being fully coordinated and integrated; and
404.14(3) enhance the state's ability to meet the federal priorities to be selected as a
404.15CCBHC demonstration state.
404.16(i) The commissioner shall recertify CCBHCs at least every three years. The
404.17commissioner shall establish a process for decertification and shall require corrective
404.18action, medical assistance repayment, or decertification of a CCBHC that no longer
404.19meets the requirements in this section or that fails to meet the standards provided by the
404.20commissioner in the application and certification process.
404.21EFFECTIVE DATE.This section is effective the day following final enactment.

404.22    Sec. 2. Minnesota Statutes 2015 Supplement, section 245.735, subdivision 4, is
404.23amended to read:
404.24    Subd. 4. Public participation. In developing the projects and implementing
404.25certified community behavioral health clinics under subdivision 3, the commissioner shall
404.26consult, collaborate, and partner with stakeholders, including but not limited to mental
404.27health providers, substance use disorder treatment providers, advocacy organizations,
404.28licensed mental health professionals, counties, tribes, hospitals, other health care
404.29providers, and Minnesota public health care program enrollees who receive mental health
404.30services and their families.
404.31EFFECTIVE DATE.This section is effective the day following final enactment.

404.32    Sec. 3. Minnesota Statutes 2014, section 245.99, subdivision 2, is amended to read:
405.1    Subd. 2. Rental assistance. The program shall pay up to 90 days of housing
405.2assistance for persons with a serious and persistent mental illness who require inpatient or
405.3residential care for stabilization. The commissioner of human services may extend the
405.4length of assistance on a case-by-case basis.
405.5EFFECTIVE DATE.This section is effective the day following final enactment.

405.6    Sec. 4. Minnesota Statutes 2014, section 254B.01, subdivision 4a, is amended to read:
405.7    Subd. 4a. Culturally specific program. (a) "Culturally specific program" means a
405.8substance use disorder treatment service program or subprogram that is recovery-focused
405.9and culturally specific when the program:
405.10(1) improves service quality to and outcomes of a specific population by advancing
405.11health equity to help eliminate health disparities; and
405.12(2) ensures effective, equitable, comprehensive, and respectful quality care services
405.13that are responsive to an individual within a specific population's values, beliefs and
405.14practices, health literacy, preferred language, and other communication needs.
405.15(b) A tribally licensed substance use disorder program that is designated as serving
405.16a culturally specific population by the applicable tribal government is deemed to satisfy
405.17this subdivision.
405.18EFFECTIVE DATE.This section is effective the day following final enactment.

405.19    Sec. 5. Minnesota Statutes 2014, section 254B.03, subdivision 4, is amended to read:
405.20    Subd. 4. Division of costs. (a) Except for services provided by a county under
405.21section 254B.09, subdivision 1, or services provided under section 256B.69 or 256D.03,
405.22subdivision 4 , paragraph (b), the county shall, out of local money, pay the state for 22.95
405.23percent of the cost of chemical dependency services, including those services provided to
405.24persons eligible for medical assistance under chapter 256B and general assistance medical
405.25care under chapter 256D. Counties may use the indigent hospitalization levy for treatment
405.26and hospital payments made under this section.
405.27(b) 22.95 percent of any state collections from private or third-party pay, less 15
405.28percent for the cost of payment and collections, must be distributed to the county that paid
405.29for a portion of the treatment under this section.
405.30(c) For fiscal year 2017 only, the 22.95 percentages under paragraphs (a) and (b)
405.31are equal to 15 percent.

405.32    Sec. 6. Minnesota Statutes 2014, section 254B.04, subdivision 2a, is amended to read:
406.1    Subd. 2a. Eligibility for treatment in residential settings. Notwithstanding
406.2provisions of Minnesota Rules, part 9530.6622, subparts 5 and 6, related to an assessor's
406.3discretion in making placements to residential treatment settings, a person eligible for
406.4services under this section must score at level 4 on assessment dimensions related to
406.5relapse, continued use, or recovery environment in order to be assigned to services with a
406.6room and board component reimbursed under this section. Whether a treatment facility
406.7has been designated an institution for mental diseases under United States Code, title 42,
406.8section 1396d, shall not be a factor in making placements.

406.9    Sec. 7. Minnesota Statutes 2015 Supplement, section 254B.05, subdivision 5, is
406.10amended to read:
406.11    Subd. 5. Rate requirements. (a) The commissioner shall establish rates for
406.12chemical dependency services and service enhancements funded under this chapter.
406.13(b) Eligible chemical dependency treatment services include:
406.14(1) outpatient treatment services that are licensed according to Minnesota Rules,
406.15parts 9530.6405 to 9530.6480, or applicable tribal license;
406.16(2) medication-assisted therapy services that are licensed according to Minnesota
406.17Rules, parts 9530.6405 to 9530.6480 and 9530.6500, or applicable tribal license;
406.18(3) medication-assisted therapy plus enhanced treatment services that meet the
406.19requirements of clause (2) and provide nine hours of clinical services each week;
406.20(4) high, medium, and low intensity residential treatment services that are licensed
406.21according to Minnesota Rules, parts 9530.6405 to 9530.6480 and 9530.6505, or applicable
406.22tribal license which provide, respectively, 30, 15, and five hours of clinical services each
406.23week;
406.24(5) hospital-based treatment services that are licensed according to Minnesota Rules,
406.25parts 9530.6405 to 9530.6480, or applicable tribal license and licensed as a hospital under
406.26sections 144.50 to 144.56;
406.27(6) adolescent treatment programs that are licensed as outpatient treatment programs
406.28according to Minnesota Rules, parts 9530.6405 to 9530.6485, or as residential treatment
406.29programs according to Minnesota Rules, parts 2960.0010 to 2960.0220, and 2960.0430
406.30to 2960.0490, or applicable tribal license;
406.31(7) high-intensity residential treatment services that are licensed according to
406.32Minnesota Rules, parts 9530.6405 to 9530.6480 and 9530.6505, or applicable tribal
406.33license, which provide 30 hours of clinical services each week provided by a state-operated
406.34vendor or to clients who have been civilly committed to the commissioner, present the
406.35most complex and difficult care needs, and are a potential threat to the community; and
407.1(8) room and board facilities that meet the requirements of subdivision 1a.
407.2(c) The commissioner shall establish higher rates for programs that meet the
407.3requirements of paragraph (b) and one of the following additional requirements:
407.4(1) programs that serve parents with their children if the program:
407.5(i) provides on-site child care during the hours of treatment activity that:
407.6(A) is licensed under chapter 245A as a child care center under Minnesota Rules,
407.7chapter 9503; or
407.8(B) meets the licensure exclusion criteria of section 245A.03, subdivision 2,
407.9paragraph (a), clause (6), and meets the requirements under Minnesota Rules, part
407.109530.6490, subpart 4; or
407.11(ii) arranges for off-site child care during hours of treatment activity at a facility that
407.12is licensed under chapter 245A as:
407.13(A) a child care center under Minnesota Rules, chapter 9503; or
407.14(B) a family child care home under Minnesota Rules, chapter 9502;
407.15(2) culturally specific programs as defined in section 254B.01, subdivision 4a, or
407.16programs or subprograms serving special populations, if the program or subprogram meets
407.17the following requirements in Minnesota Rules, part 9530.6605, subpart 13;:
407.18(i) is designed to address the unique needs of individuals who share a common
407.19language, racial, ethnic, or social background;
407.20(ii) is governed with significant input from individuals of that specific background;
407.21and
407.22(iii) employs individuals to provide individual or group therapy, at least 50 percent
407.23of whom are of that specific background, except when the common social background of
407.24the individuals served is a traumatic brain injury or cognitive disability and the program
407.25employs treatment staff who have the necessary professional training, as approved by the
407.26commissioner, to serve clients with the specific disabilities that the program is designed
407.27to serve;
407.28(3) programs that offer medical services delivered by appropriately credentialed
407.29health care staff in an amount equal to two hours per client per week if the medical
407.30needs of the client and the nature and provision of any medical services provided are
407.31documented in the client file; and
407.32(4) programs that offer services to individuals with co-occurring mental health and
407.33chemical dependency problems if:
407.34(i) the program meets the co-occurring requirements in Minnesota Rules, part
407.359530.6495;
408.1(ii) 25 percent of the counseling staff are licensed mental health professionals, as
408.2defined in section 245.462, subdivision 18, clauses (1) to (6), or are students or licensing
408.3candidates under the supervision of a licensed alcohol and drug counselor supervisor and
408.4licensed mental health professional, except that no more than 50 percent of the mental
408.5health staff may be students or licensing candidates with time documented to be directly
408.6related to provisions of co-occurring services;
408.7(iii) clients scoring positive on a standardized mental health screen receive a mental
408.8health diagnostic assessment within ten days of admission;
408.9(iv) the program has standards for multidisciplinary case review that include a
408.10monthly review for each client that, at a minimum, includes a licensed mental health
408.11professional and licensed alcohol and drug counselor, and their involvement in the review
408.12is documented;
408.13(v) family education is offered that addresses mental health and substance abuse
408.14disorders and the interaction between the two; and
408.15(vi) co-occurring counseling staff will shall receive eight hours of co-occurring
408.16disorder training annually.
408.17(d) In order to be eligible for a higher rate under paragraph (c), clause (1), a program
408.18that provides arrangements for off-site child care must maintain current documentation at
408.19the chemical dependency facility of the child care provider's current licensure to provide
408.20child care services. Programs that provide child care according to paragraph (c), clause
408.21(1), must be deemed in compliance with the licensing requirements in Minnesota Rules,
408.22part 9530.6490.
408.23(e) Adolescent residential programs that meet the requirements of Minnesota
408.24Rules, parts 2960.0430 to 2960.0490 and 2960.0580 to 2960.0690, are exempt from the
408.25requirements in paragraph (c), clause (4), items (i) to (iv).
408.26(f) Subject to federal approval, chemical dependency services that are otherwise
408.27covered as direct face-to-face services may be provided via two-way interactive video.
408.28The use of two-way interactive video must be medically appropriate to the condition and
408.29needs of the person being served. Reimbursement shall be at the same rates and under the
408.30same conditions that would otherwise apply to direct face-to-face services. The interactive
408.31video equipment and connection must comply with Medicare standards in effect at the
408.32time the service is provided.
408.33EFFECTIVE DATE.This section is effective the day following final enactment.

408.34    Sec. 8. Minnesota Statutes 2014, section 254B.06, subdivision 2, is amended to read:
409.1    Subd. 2. Allocation of collections. (a) The commissioner shall allocate all federal
409.2financial participation collections to a special revenue account. The commissioner shall
409.3allocate 77.05 percent of patient payments and third-party payments to the special revenue
409.4account and 22.95 percent to the county financially responsible for the patient.
409.5(b) For fiscal year 2017 only, the percentage under paragraph (a) that the
409.6commissioner shall pay is 85 percent, and the percentage the county shall pay is 15 percent.

409.7    Sec. 9. Minnesota Statutes 2014, section 254B.06, is amended by adding a subdivision
409.8to read:
409.9    Subd. 4. Reimbursement for institutions for mental diseases. The commissioner
409.10shall not deny reimbursement to a program designated as an institution for mental diseases
409.11under United States Code, title 42, section 1396d, due to a reduction in federal financial
409.12participation and the addition of new residential beds.

409.13    Sec. 10. Minnesota Statutes 2014, section 256B.0621, subdivision 10, is amended to
409.14read:
409.15    Subd. 10. Payment rates. The commissioner shall set payment rates for targeted
409.16case management under this subdivision. Case managers may bill according to the
409.17following criteria:
409.18    (1) for relocation targeted case management, case managers may bill for direct case
409.19management activities, including face-to-face and, telephone contacts, and interactive
409.20video contact in accordance with section 256B.0924, subdivision 4a, in the lesser of:
409.21    (i) 180 days preceding an eligible recipient's discharge from an institution; or
409.22    (ii) the limits and conditions which apply to federal Medicaid funding for this service;
409.23    (2) for home care targeted case management, case managers may bill for direct case
409.24management activities, including face-to-face and telephone contacts; and
409.25    (3) billings for targeted case management services under this subdivision shall not
409.26duplicate payments made under other program authorities for the same purpose.

409.27    Sec. 11. Minnesota Statutes 2014, section 256B.0622, is amended by adding a
409.28subdivision to read:
409.29    Subd. 12. Start-up grants. The commissioner may, within available appropriations,
409.30disburse grant funding to counties, Indian tribes, or mental health service providers to
409.31establish additional assertive community treatment teams, intensive residential treatment
409.32services, or crisis residential services.
409.33EFFECTIVE DATE.This section is effective the day following final enactment.

410.1    Sec. 12. Minnesota Statutes 2015 Supplement, section 256B.0625, subdivision 20,
410.2is amended to read:
410.3    Subd. 20. Mental health case management. (a) To the extent authorized by rule
410.4of the state agency, medical assistance covers case management services to persons with
410.5serious and persistent mental illness and children with severe emotional disturbance.
410.6Services provided under this section must meet the relevant standards in sections 245.461
410.7to 245.4887, the Comprehensive Adult and Children's Mental Health Acts, Minnesota
410.8Rules, parts 9520.0900 to 9520.0926, and 9505.0322, excluding subpart 10.
410.9    (b) Entities meeting program standards set out in rules governing family community
410.10support services as defined in section 245.4871, subdivision 17, are eligible for medical
410.11assistance reimbursement for case management services for children with severe
410.12emotional disturbance when these services meet the program standards in Minnesota
410.13Rules, parts 9520.0900 to 9520.0926 and 9505.0322, excluding subparts 6 and 10.
410.14    (c) Medical assistance and MinnesotaCare payment for mental health case
410.15management shall be made on a monthly basis. In order to receive payment for an eligible
410.16child, the provider must document at least a face-to-face contact with the child, the child's
410.17parents, or the child's legal representative. To receive payment for an eligible adult, the
410.18provider must document:
410.19    (1) at least a face-to-face contact with the adult or the adult's legal representative or a
410.20contact by interactive video that meets the requirements of subdivision 20b; or
410.21    (2) at least a telephone contact with the adult or the adult's legal representative
410.22and document a face-to-face contact or a contact by interactive video that meets the
410.23requirements of subdivision 20b with the adult or the adult's legal representative within
410.24the preceding two months.
410.25    (d) Payment for mental health case management provided by county or state staff
410.26shall be based on the monthly rate methodology under section 256B.094, subdivision 6,
410.27paragraph (b), with separate rates calculated for child welfare and mental health, and
410.28within mental health, separate rates for children and adults.
410.29    (e) Payment for mental health case management provided by Indian health services
410.30or by agencies operated by Indian tribes may be made according to this section or other
410.31relevant federally approved rate setting methodology.
410.32    (f) Payment for mental health case management provided by vendors who contract
410.33with a county or Indian tribe shall be based on a monthly rate negotiated by the host county
410.34or tribe. The negotiated rate must not exceed the rate charged by the vendor for the same
410.35service to other payers. If the service is provided by a team of contracted vendors, the
410.36county or tribe may negotiate a team rate with a vendor who is a member of the team. The
411.1team shall determine how to distribute the rate among its members. No reimbursement
411.2received by contracted vendors shall be returned to the county or tribe, except to reimburse
411.3the county or tribe for advance funding provided by the county or tribe to the vendor.
411.4    (g) If the service is provided by a team which includes contracted vendors, tribal
411.5staff, and county or state staff, the costs for county or state staff participation in the team
411.6shall be included in the rate for county-provided services. In this case, the contracted
411.7vendor, the tribal agency, and the county may each receive separate payment for services
411.8provided by each entity in the same month. In order to prevent duplication of services,
411.9each entity must document, in the recipient's file, the need for team case management and
411.10a description of the roles of the team members.
411.11    (h) Notwithstanding section 256B.19, subdivision 1, the nonfederal share of costs
411.12for mental health case management shall be provided by the recipient's county of
411.13responsibility, as defined in sections 256G.01 to 256G.12, from sources other than federal
411.14funds or funds used to match other federal funds. If the service is provided by a tribal
411.15agency, the nonfederal share, if any, shall be provided by the recipient's tribe. When this
411.16service is paid by the state without a federal share through fee-for-service, 50 percent of
411.17the cost shall be provided by the recipient's county of responsibility.
411.18    (i) Notwithstanding any administrative rule to the contrary, prepaid medical
411.19assistance, general assistance medical care, and MinnesotaCare include mental health case
411.20management. When the service is provided through prepaid capitation, the nonfederal
411.21share is paid by the state and the county pays no share.
411.22    (j) The commissioner may suspend, reduce, or terminate the reimbursement to a
411.23provider that does not meet the reporting or other requirements of this section. The county
411.24of responsibility, as defined in sections 256G.01 to 256G.12, or, if applicable, the tribal
411.25agency, is responsible for any federal disallowances. The county or tribe may share this
411.26responsibility with its contracted vendors.
411.27    (k) The commissioner shall set aside a portion of the federal funds earned for county
411.28expenditures under this section to repay the special revenue maximization account under
411.29section 256.01, subdivision 2, paragraph (o). The repayment is limited to:
411.30    (1) the costs of developing and implementing this section; and
411.31    (2) programming the information systems.
411.32    (l) Payments to counties and tribal agencies for case management expenditures
411.33under this section shall only be made from federal earnings from services provided
411.34under this section. When this service is paid by the state without a federal share through
411.35fee-for-service, 50 percent of the cost shall be provided by the state. Payments to
412.1county-contracted vendors shall include the federal earnings, the state share, and the
412.2county share.
412.3    (m) Case management services under this subdivision do not include therapy,
412.4treatment, legal, or outreach services.
412.5    (n) If the recipient is a resident of a nursing facility, intermediate care facility, or
412.6hospital, and the recipient's institutional care is paid by medical assistance, payment for
412.7case management services under this subdivision is limited to the lesser of:
412.8    (1) the last 180 days of the recipient's residency in that facility and may not exceed
412.9more than six months in a calendar year; or
412.10    (2) the limits and conditions which apply to federal Medicaid funding for this service.
412.11    (o) Payment for case management services under this subdivision shall not duplicate
412.12payments made under other program authorities for the same purpose.
412.13(p) If the recipient is receiving care in a hospital, nursing facility, or residential
412.14setting licensed under chapter 245A or 245D that is staffed 24 hours per day, seven days
412.15per week, mental health targeted case management services are expected to actively
412.16support identification of community alternatives for the recipient and discharge planning.

412.17    Sec. 13. Minnesota Statutes 2014, section 256B.0625, is amended by adding a
412.18subdivision to read:
412.19    Subd. 20b. Mental health targeted case management through interactive video.
412.20(a) Subject to federal approval, contact made for targeted case management by interactive
412.21video shall be eligible for payment if:
412.22(1) the person receiving targeted case management services is residing in:
412.23(i) a hospital;
412.24(ii) a nursing facility; or
412.25(iii) a residential setting licensed under chapter 245A or 245D, or a boarding and
412.26lodging establishment or lodging establishment that provides supportive services or health
412.27supervision services according to section 157.17, which is staffed 24 hours per day, seven
412.28days per week;
412.29(2) interactive video is in the best interests of the person and is deemed appropriate
412.30by the person receiving targeted case management or their legal guardian, the case
412.31management provider, and the provider operating the setting where the person is residing;
412.32(3) the use of interactive video is approved as part of the person's written personal
412.33service or case plan taking into consideration the person's vulnerability and active personal
412.34relationships; and
413.1(4) interactive video is used for up to, but not more than, 50 percent of the minimum
413.2required face-to-face contacts.
413.3(b) The person receiving targeted case management or their legal guardian has the
413.4right to choose and consent to the use of interactive video under this subdivision, and has
413.5the right to refuse the use of interactive video at any time.
413.6(c) The commissioner shall establish criteria that a targeted case management
413.7provider must attest to in order to demonstrate the safety or efficacy of delivering the service
413.8via interactive video. The attestation may include that the case management provider:
413.9(1) has written policies and procedures specific to interactive video services that are
413.10regularly reviewed and updated;
413.11(2) has polices and procedures that adequately address client safety before, during,
413.12and after the interactive video service is rendered;
413.13(3) has established protocols addressing how and when to discontinue interactive
413.14video services; and
413.15(4) has an established quality assurance process related to interactive video services.
413.16(d) As a condition of payment, the targeted case management provider must
413.17document each occurrence of targeted case management provided by interactive video
413.18and must document:
413.19(1) the time the service began and the time the service ended, including an a.m. and
413.20p.m. designation;
413.21(2) the basis for determining that interactive video is an appropriate and effective
413.22means for delivering the service to the enrollees;
413.23(3) the mode of transmission of the interactive video service and records evidencing
413.24that a particular mode of transmission was utilized;
413.25(4) the location of the originating site and the distant site; and
413.26(5) compliance with the criteria attested to by the health care provider in accordance
413.27with paragraph (c).

413.28    Sec. 14. Minnesota Statutes 2014, section 256B.0924, is amended by adding a
413.29subdivision to read:
413.30    Subd. 4a. Targeted case management through interactive video. (a) Subject to
413.31federal approval, contact made for targeted case management by interactive video shall be
413.32eligible for payment if:
413.33(1) the person receiving targeted case management services is residing in:
413.34(i) a hospital;
413.35(ii) a nursing facility; or
414.1(iii) a residential setting licensed under chapter 245A or 245D, or a boarding and
414.2lodging establishment or lodging establishment that provides supportive services or
414.3health supervision services according to section 157.17, and that is staffed 24 hours per
414.4day, seven days per week;
414.5(2) interactive video is in the best interests of the person and is deemed appropriate
414.6by the person receiving targeted case management or their legal guardian, the case
414.7management provider, and the provider operating the setting where the person is residing;
414.8(3) the use of interactive video is approved as part of the person's written personal
414.9service or case plan; and
414.10(4) interactive video is used for up to, but not more than, 50 percent of the minimum
414.11required face-to-face contacts.
414.12(b) The person receiving targeted case management or their legal guardian has the
414.13right to choose and consent to the use of interactive video under this subdivision, and has
414.14the right to refuse the use of interactive video at any time.
414.15(c) The commissioner shall establish criteria that a targeted case management
414.16provider must attest to in order to demonstrate the safety or efficacy of delivering the service
414.17via interactive video. The attestation may include that the case management provider:
414.18(1) has written policies and procedures specific to interactive video services that are
414.19regularly reviewed and updated;
414.20(2) has polices and procedures that adequately address client safety before, during,
414.21and after the interactive video service is rendered;
414.22(3) has established protocols addressing how and when to discontinue interactive
414.23video services; and
414.24(4) has an established quality assurance process related to interactive video services.
414.25(d) As a condition of payment, the targeted case management provider must
414.26document each occurrence of targeted case management provided by interactive video
414.27and must document:
414.28(1) the time the service began and the time the service ended, including an a.m. and
414.29p.m. designation;
414.30(2) the basis for determining that interactive video is an appropriate and effective
414.31means for delivering the service to the enrollees;
414.32(3) the mode of transmission of the interactive video service and records evidencing
414.33that a particular mode of transmission was utilized;
414.34(4) the location of the originating site and the distant site; and
414.35(5) compliance with the criteria attested to by the health care provider in accordance
414.36with paragraph (c).

415.1    Sec. 15. CHILDREN'S MENTAL HEALTH COLLABORATIVE; YOUTH AND
415.2YOUNG ADULT MENTAL HEALTH DEMONSTRATION PROJECT.
415.3(a) The commissioner of human services shall grant funds to a children's mental
415.4health collaborative for a rural demonstration project to assist transition-aged youth and
415.5young adults with emotional behavioral disturbance (EBD) or mental illnesses in making
415.6a successful transition into adulthood.
415.7(b) The demonstration project must:
415.8(1) build on and streamline transition services by identifying rural youth ages 15 to
415.925 currently in the mental health system or with emerging mental health conditions;
415.10(2) support youth to achieve, within their potential, their personal goals in
415.11employment, education, housing, and community life functioning;
415.12(3) provide individualized motivational coaching;
415.13(4) build on needed social supports;
415.14(5) demonstrate how services can be enhanced for youth to successfully navigate the
415.15complexities associated with their unique needs;
415.16(6) utilize all available funding streams;
415.17(7) demonstrate collaboration with the local children's mental health collaborative in
415.18designing and implementing the demonstration project;
415.19(8) evaluate the effectiveness of the project by specifying and measuring outcomes
415.20showing the level of progress for involved youth; and
415.21(9) compare differences in outcomes and costs to youth without previous access
415.22to this project.
415.23(c) The commissioner shall report to the committee members of the senate and house
415.24of representatives committees with jurisdiction over mental health issues on the status and
415.25outcomes of the demonstration project by January 15, 2019. The children's mental health
415.26collaborative administering the demonstration project shall collect and report outcome
415.27data, as outlined by the commissioner, to support the development of this report.

415.28    Sec. 16. COMMISSIONER DUTY TO SEEK FEDERAL APPROVAL FOR
415.29INTERACTIVE VIDEO CONTACT.
415.30The commissioner of human services shall seek federal approval that is necessary to
415.31implement the sections of this article related to reimbursement for interactive video contact.

416.1ARTICLE 23

416.2DIRECT CARE AND TREATMENT

416.3    Section 1. Minnesota Statutes 2015 Supplement, section 245.4889, subdivision 1,
416.4is amended to read:
416.5    Subdivision 1. Establishment and authority. (a) The commissioner is authorized
416.6to make grants from available appropriations to assist:
416.7    (1) counties;
416.8    (2) Indian tribes;
416.9    (3) children's collaboratives under section 124D.23 or 245.493; or
416.10    (4) mental health service providers.
416.11    (b) The following services are eligible for grants under this section:
416.12    (1) services to children with emotional disturbances as defined in section 245.4871,
416.13subdivision 15, and their families;
416.14    (2) transition services under section 245.4875, subdivision 8, for young adults under
416.15age 21 and their families;
416.16    (3) respite care services for children with severe emotional disturbances who are at
416.17risk of out-of-home placement;
416.18    (4) children's mental health crisis services;
416.19    (5) mental health services for people from cultural and ethnic minorities;
416.20    (6) children's mental health screening and follow-up diagnostic assessment and
416.21treatment;
416.22    (7) services to promote and develop the capacity of providers to use evidence-based
416.23practices in providing children's mental health services;
416.24    (8) school-linked mental health services;
416.25    (9) building evidence-based mental health intervention capacity for children birth to
416.26age five;
416.27    (10) suicide prevention and counseling services that use text messaging statewide;
416.28    (11) mental health first aid training;
416.29    (12) training for parents, collaborative partners, and mental health providers on the
416.30impact of adverse childhood experiences and trauma and development of an interactive
416.31Web site to share information and strategies to promote resilience and prevent trauma;
416.32    (13) transition age services to develop or expand mental health treatment and
416.33supports for adolescents and young adults 26 years of age or younger;
416.34    (14) early childhood mental health consultation;
417.1    (15) evidence-based interventions for youth at risk of developing or experiencing a
417.2first episode of psychosis, and a public awareness campaign on the signs and symptoms of
417.3psychosis; and
417.4    (16) psychiatric consultation for primary care practitioners.; and
417.5    (17) sustaining extended-stay inpatient psychiatric hospital services for children
417.6and adolescents.
417.7    (c) Services under paragraph (b) must be designed to help each child to function and
417.8remain with the child's family in the community and delivered consistent with the child's
417.9treatment plan. Transition services to eligible young adults under paragraph (b) must be
417.10designed to foster independent living in the community.

417.11    Sec. 2. Minnesota Statutes 2014, section 246.50, subdivision 7, is amended to read:
417.12    Subd. 7. Client's county. "Client's county" means the county of the client's legal
417.13settlement for poor relief purposes at the time of commitment or voluntary admission to a
417.14state facility, or if the client has no such legal settlement in this state, it means the county
417.15of commitment financial responsibility under chapter 256G, except that where a client
417.16with no such legal settlement residence in this state is committed while serving a sentence
417.17at a penal institution, it means the county from which the client was sentenced.

417.18    Sec. 3. Minnesota Statutes 2014, section 246.54, as amended by Laws 2015, chapter
417.1971, article 4, section 2, is amended to read:
417.20246.54 LIABILITY OF COUNTY; REIMBURSEMENT.
417.21    Subdivision 1. County portion for cost of care Generally. (a) Except for chemical
417.22dependency services provided under sections 254B.01 to 254B.09, the client's county
417.23shall pay to the state of Minnesota a portion of the cost of care provided in a regional
417.24treatment center or a state nursing facility to a client legally settled in that county. A
417.25county's payment shall be made from the county's own sources of revenue and payments
417.26shall equal a percentage of the cost of care, as determined by the commissioner, for each
417.27day, or the portion thereof, that the client spends at a regional treatment center or a state
417.28nursing facility according to the following schedule:.
417.29    Subd. 1a. Anoka Metro Regional Treatment Center. (a) A county's payment of
417.30the cost of care provided at Anoka Metro Regional Treatment Center shall be according to
417.31the following schedule:
417.32    (1) zero percent for the first 30 days;
417.33    (2) 20 percent for days 31 and over if the stay is determined to be clinically
417.34appropriate for the client; and
418.1    (3) 100 percent for each day during the stay, including the day of admission, when
418.2the facility determines that it is clinically appropriate for the client to be discharged.
418.3    (b) If payments received by the state under sections 246.50 to 246.53 exceed 80
418.4percent of the cost of care for days over 31 for clients who meet the criteria in paragraph
418.5(a), clause (2), the county shall be responsible for paying the state only the remaining
418.6amount. The county shall not be entitled to reimbursement from the client, the client's
418.7estate, or from the client's relatives, except as provided in section 246.53.
418.8    Subd. 1b. Community behavioral health hospitals. A county's payment of the
418.9cost of care provided at state-operated community-based behavioral health hospitals shall
418.10be according to the following schedule:
418.11(1) 100 percent for each day during the stay, including the day of admission, when
418.12the facility determines that it is clinically appropriate for the client to be discharged; and
418.13(2) the county shall not be entitled to reimbursement from the client, the client's
418.14estate, or from the client's relatives, except as provided in section 246.53.
418.15    Subd. 1c. State-operated forensic services. A county's payment of the cost of care
418.16provided at state-operated forensic services shall be according to the following schedule:
418.17(1) Minnesota Security Hospital: ten percent for each day, or portion thereof, that the
418.18client spends in a Minnesota Security Hospital program. If payments received by the state
418.19under sections 246.50 to 246.53 for services provided at the Minnesota Security Hospital
418.20exceed 90 percent of the cost of care, the county shall be responsible for paying the state
418.21only the remaining amount. The county shall not be entitled to reimbursement from the
418.22client, the client's estate, or the client's relatives except as provided in section 246.53;
418.23(2) forensic nursing home: ten percent for each day, or portion thereof, that the client
418.24spends in a forensic nursing home program. If payments received by the state under
418.25sections 246.50 to 246.53 for services provided at the forensic nursing home exceed 90
418.26percent of the cost of care, the county shall be responsible for paying the state only the
418.27remaining amount. The county shall not be entitled to reimbursement from the client, the
418.28client's estate, or the client's relatives except as provided in section 246.53;
418.29(3) forensic transition services: 50 percent for each day, or portion thereof, that the
418.30client spends in the forensic transition services program. If payments received by the state
418.31under sections 246.50 to 246.53 for services provided in the forensic transition services
418.32exceed 50 percent of the cost of care, the county shall be responsible for paying the state
418.33only the remaining amount. The county shall not be entitled to reimbursement from the
418.34client, the client's estate, or the client's relatives except as provided in section 246.53; and
418.35(4) residential competency restoration program:
419.1(i) 20 percent for each day, or portion thereof, that the client spends in a residential
419.2competency restoration program while the client is in need of restoration services;
419.3(ii) 50 percent for each day, or portion thereof, that the client spends in a residential
419.4competency restoration program once the examiner opines that the client no longer needs
419.5restoration services; and
419.6(iii) 100 percent for each day, or portion thereof, once charges against a client have
419.7been resolved or dropped.
419.8    Subd. 2. Exceptions. (a) Subdivision 1 does not apply to services provided at the
419.9Minnesota Security Hospital. For services at the Minnesota Security Hospital, a county's
419.10payment shall be made from the county's own sources of revenue and payments. Excluding
419.11the state-operated forensic transition service, payments to the state from the county shall
419.12equal ten percent of the cost of care, as determined by the commissioner, for each day, or
419.13the portion thereof, that the client spends at the facility. For the state-operated forensic
419.14transition service, payments to the state from the county shall equal 50 percent of the cost of
419.15care, as determined by the commissioner, for each day, or the portion thereof, that the client
419.16spends in the program. If payments received by the state under sections 246.50 to 246.53
419.17for services provided at the Minnesota Security Hospital, excluding the state-operated
419.18forensic transition service, exceed 90 percent of the cost of care, the county shall be
419.19responsible for paying the state only the remaining amount. If payments received by the
419.20state under sections 246.50 to 246.53 for the state-operated forensic transition service
419.21exceed 50 percent of the cost of care, the county shall be responsible for paying the state
419.22only the remaining amount. The county shall not be entitled to reimbursement from the
419.23client, the client's estate, or from the client's relatives, except as provided in section 246.53.
419.24    (b) Regardless of the facility to which the client is committed, subdivision 1 does
419.25subdivisions 1, 1a, 1b, and 1c, do not apply to the following individuals:
419.26    (1) clients who are committed as sexual psychopathic personalities under section
419.27253D.02, subdivision 15 ; and
419.28    (2) clients who are committed as sexually dangerous persons under section 253D.02,
419.29subdivision 16 .

419.30    Sec. 4. Minnesota Statutes 2014, section 246B.01, subdivision 1b, is amended to read:
419.31    Subd. 1b. Civilly committed sex offender's county. "Civilly committed sex
419.32offender's county" means the county of the civilly committed sex offender's legal
419.33settlement for poor relief purposes at the time of commitment. If the civilly committed
419.34sex offender has no legal settlement for poor relief in this state, it means the county of
419.35commitment financial responsibility under chapter 256G, except that when a civilly
420.1committed sex offender with no legal settlement for poor relief residence in this state is
420.2committed while serving a sentence at a penal institution, it means the county from which
420.3the civilly committed sex offender was sentenced.

420.4    Sec. 5. Minnesota Statutes 2014, section 246B.01, subdivision 2b, is amended to read:
420.5    Subd. 2b. Cost of care. "Cost of care" means the commissioner's charge for housing
420.6and, treatment, aftercare services, and supervision provided to any person admitted to or
420.7on provisional discharge from the Minnesota sex offender program.
420.8For purposes of this subdivision, "charge for housing and, treatment, aftercare
420.9services, and supervision" means the cost of services, treatment, maintenance, bonds issued
420.10for capital improvements, depreciation of buildings and equipment, and indirect costs
420.11related to the operation of state facilities. The commissioner may determine the charge for
420.12services on an anticipated average per diem basis as an all-inclusive charge per facility.

420.13    Sec. 6. Minnesota Statutes 2014, section 246B.035, is amended to read:
420.14246B.035 ANNUAL PERFORMANCE REPORT REQUIRED.
420.15The executive director of the Minnesota sex offender program shall submit
420.16electronically a performance report to the chairs and ranking minority members of the
420.17legislative committees and divisions with jurisdiction over funding for the program by
420.18January February 15 of each year beginning in 2010 2017. The report must include the
420.19following:
420.20(1) a description of the program, including the strategic mission, goals, objectives,
420.21and outcomes;
420.22(2) the programwide per diem reported in a standard calculated method as outlined
420.23in the program policies and procedures;
420.24(3) program annual statistics as outlined in the departmental policies and procedures;
420.25and
420.26(4) the sex offender program evaluation report required under section 246B.03. The
420.27executive director shall submit a printed copy upon request.

420.28    Sec. 7. Minnesota Statutes 2014, section 246B.10, is amended to read:
420.29246B.10 LIABILITY OF COUNTY; REIMBURSEMENT.
420.30    (a) The civilly committed sex offender's county shall pay to the state a portion of the
420.31cost of care provided in by the Minnesota sex offender program to a civilly committed sex
420.32offender who has legally settled in that county. A county's payment must be made from
420.33the county's own sources of revenue and payments must equal 25 percent of the cost of
421.1care, as determined by the commissioner, for each day or portion of a day, that the civilly
421.2committed sex offender spends at the facility receives services, either within a Department
421.3of Human Services operated facility or while on provisional discharge.
421.4    (b) If payments received by the state under this chapter exceed 75 percent of the cost
421.5of care, the county is responsible for paying the state the remaining amount.
421.6    (c) The county is not entitled to reimbursement from the civilly committed sex
421.7offender, the civilly committed sex offender's estate, or from the civilly committed sex
421.8offender's relatives, except as provided in section 246B.07.
421.9EFFECTIVE DATE.This section is effective the day following final enactment.

421.10    Sec. 8. REPORT ON ANOKA-METRO REGIONAL TREATMENT CENTER
421.11(AMRTC), MINNESOTA SECURITY HOSPITAL (MSH), AND COMMUNITY
421.12BEHAVIORAL HEALTH HOSPITALS (CBHH).
421.13The commissioner of human services shall issue a public quarterly report to the
421.14chairs and minority leaders on the senate and house of representatives committees having
421.15jurisdiction over health and human services issues on the AMRTC, MSH, and the CBHH.
421.16The report shall contain information on the number of licensed beds, budgeted capacity,
421.17occupancy rate, number of OSHA recordable injuries and the number of OSHA recordable
421.18injuries due to patient aggression or restraint, number of clinical positions budgeted, the
421.19percentage of those positions that are filled, the number of direct care positions budgeted,
421.20and the percentage of those positions that are filled.

421.21ARTICLE 24

421.22CONTINUING CARE

421.23    Section 1. Minnesota Statutes 2014, section 245A.10, subdivision 4, is amended to read:
421.24    Subd. 4. License or certification fee for certain programs. (a) Child care centers
421.25shall pay an annual nonrefundable license fee based on the following schedule:

421.26 421.27		Licensed Capacity	Child Care Center License Fee
421.28		1 to 24 persons	$200
421.29		25 to 49 persons	$300
421.30		50 to 74 persons	$400
421.31		75 to 99 persons	$500
421.32		100 to 124 persons	$600
421.33		125 to 149 persons	$700
421.34		150 to 174 persons	$800
421.35		175 to 199 persons	$900
422.1		200 to 224 persons	$1,000
422.2		225 or more persons	$1,100

422.3(b)(1) A program licensed to provide one or more of the home and community-based
422.4services and supports identified under chapter 245D to persons with disabilities or age
422.565 and older, shall pay an annual nonrefundable license fee based on revenues derived
422.6from the provision of services that would require licensure under chapter 245D during the
422.7calendar year immediately preceding the year in which the license fee is paid, according to
422.8the following schedule:

422.9	License Holder Annual Revenue		License Fee
422.10	less than or equal to $10,000		$200
422.11 422.12	greater than $10,000 but less than or equal to $25,000		$300
422.13 422.14	greater than $25,000 but less than or equal to $50,000		$400
422.15 422.16	greater than $50,000 but less than or equal to $100,000		$500
422.17 422.18	greater than $100,000 but less than or equal to $150,000		$600
422.19 422.20	greater than $150,000 but less than or equal to $200,000		$800
422.21 422.22	greater than $200,000 but less than or equal to $250,000		$1,000
422.23 422.24	greater than $250,000 but less than or equal to $300,000		$1,200
422.25 422.26	greater than $300,000 but less than or equal to $350,000		$1,400
422.27 422.28	greater than $350,000 but less than or equal to $400,000		$1,600
422.29 422.30	greater than $400,000 but less than or equal to $450,000		$1,800
422.31 422.32	greater than $450,000 but less than or equal to $500,000		$2,000
422.33 422.34	greater than $500,000 but less than or equal to $600,000		$2,250
422.35 422.36	greater than $600,000 but less than or equal to $700,000		$2,500
422.37 422.38	greater than $700,000 but less than or equal to $800,000		$2,750
422.39 422.40	greater than $800,000 but less than or equal to $900,000		$3,000
422.41 422.42	greater than $900,000 but less than or equal to $1,000,000		$3,250
422.43 422.44	greater than $1,000,000 but less than or equal to $1,250,000		$3,500
422.45 422.46	greater than $1,250,000 but less than or equal to $1,500,000		$3,750
423.1 423.2	greater than $1,500,000 but less than or equal to $1,750,000		$4,000
423.3 423.4	greater than $1,750,000 but less than or equal to $2,000,000		$4,250
423.5 423.6	greater than $2,000,000 but less than or equal to $2,500,000		$4,500
423.7 423.8	greater than $2,500,000 but less than or equal to $3,000,000		$4,750
423.9 423.10	greater than $3,000,000 but less than or equal to $3,500,000		$5,000
423.11 423.12	greater than $3,500,000 but less than or equal to $4,000,000		$5,500
423.13 423.14	greater than $4,000,000 but less than or equal to $4,500,000		$6,000
423.15 423.16	greater than $4,500,000 but less than or equal to $5,000,000		$6,500
423.17 423.18	greater than $5,000,000 but less than or equal to $7,500,000		$7,000
423.19 423.20	greater than $7,500,000 but less than or equal to $10,000,000		$8,500
423.21 423.22	greater than $10,000,000 but less than or equal to $12,500,000		$10,000
423.23 423.24	greater than $12,500,000 but less than or equal to $15,000,000		$14,000
423.25	greater than $15,000,000		$18,000

423.26(2) If requested, the license holder shall provide the commissioner information to
423.27verify the license holder's annual revenues or other information as needed, including
423.28copies of documents submitted to the Department of Revenue.
423.29(3) At each annual renewal, a license holder may elect to pay the highest renewal
423.30fee, and not provide annual revenue information to the commissioner.
423.31(4) A license holder that knowingly provides the commissioner incorrect revenue
423.32amounts for the purpose of paying a lower license fee shall be subject to a civil penalty in
423.33the amount of double the fee the provider should have paid.
423.34(5) Notwithstanding clause (1), a license holder providing services under one or
423.35more licenses under chapter 245B that are in effect on May 15, 2013, shall pay an annual
423.36license fee for calendar years 2014, 2015, and 2016, and 2017, equal to the total license
423.37fees paid by the license holder for all licenses held under chapter 245B for calendar year
423.382013. For calendar year 2017 2018 and thereafter, the license holder shall pay an annual
423.39license fee according to clause (1) paragraph (m).
423.40(c) A chemical dependency treatment program licensed under Minnesota Rules,
423.41parts 9530.6405 to 9530.6505, to provide chemical dependency treatment shall pay an
423.42annual nonrefundable license fee based on the following schedule:

424.1		Licensed Capacity	License Fee
424.2		1 to 24 persons	$600
424.3		25 to 49 persons	$800
424.4		50 to 74 persons	$1,000
424.5		75 to 99 persons	$1,200
424.6		100 or more persons	$1,400

424.7(d) A chemical dependency program licensed under Minnesota Rules, parts
424.89530.6510 to 9530.6590, to provide detoxification services shall pay an annual
424.9nonrefundable license fee based on the following schedule:

424.10		Licensed Capacity	License Fee
424.11		1 to 24 persons	$760
424.12		25 to 49 persons	$960
424.13		50 or more persons	$1,160

424.14(e) Except for child foster care, a residential facility licensed under Minnesota Rules,
424.15chapter 2960, to serve children shall pay an annual nonrefundable license fee based on
424.16the following schedule:

424.17		Licensed Capacity	License Fee
424.18		1 to 24 persons	$1,000
424.19		25 to 49 persons	$1,100
424.20		50 to 74 persons	$1,200
424.21		75 to 99 persons	$1,300
424.22		100 or more persons	$1,400

424.23(f) A residential facility licensed under Minnesota Rules, parts 9520.0500 to
424.249520.0670, to serve persons with mental illness shall pay an annual nonrefundable license
424.25fee based on the following schedule:

424.26		Licensed Capacity	License Fee
424.27		1 to 24 persons	$2,525
424.28		25 or more persons	$2,725

424.29(g) A residential facility licensed under Minnesota Rules, parts 9570.2000 to
424.309570.3400, to serve persons with physical disabilities shall pay an annual nonrefundable
424.31license fee based on the following schedule:

424.32		Licensed Capacity	License Fee
424.33		1 to 24 persons	$450
424.34		25 to 49 persons	$650
424.35		50 to 74 persons	$850
424.36		75 to 99 persons	$1,050
424.37		100 or more persons	$1,250

425.1(h) A program licensed to provide independent living assistance for youth under
425.2section 245A.22 shall pay an annual nonrefundable license fee of $1,500.
425.3(i) A private agency licensed to provide foster care and adoption services under
425.4Minnesota Rules, parts 9545.0755 to 9545.0845, shall pay an annual nonrefundable
425.5license fee of $875.
425.6(j) A program licensed as an adult day care center licensed under Minnesota Rules,
425.7parts 9555.9600 to 9555.9730, shall pay an annual nonrefundable license fee based on
425.8the following schedule:

425.9		Licensed Capacity	License Fee
425.10		1 to 24 persons	$500
425.11		25 to 49 persons	$700
425.12		50 to 74 persons	$900
425.13		75 to 99 persons	$1,100
425.14		100 or more persons	$1,300

425.15(k) A program licensed to provide treatment services to persons with sexual
425.16psychopathic personalities or sexually dangerous persons under Minnesota Rules, parts
425.179515.3000 to 9515.3110, shall pay an annual nonrefundable license fee of $20,000.
425.18(l) A mental health center or mental health clinic requesting certification for
425.19purposes of insurance and subscriber contract reimbursement under Minnesota Rules,
425.20parts 9520.0750 to 9520.0870, shall pay a certification fee of $1,550 per year. If the
425.21mental health center or mental health clinic provides services at a primary location with
425.22satellite facilities, the satellite facilities shall be certified with the primary location without
425.23an additional charge.
425.24(m)(1) Effective for fees paid after July 1, 2017, a program licensed to provide one
425.25or more of the home and community-based services and supports identified under chapter
425.26245D to persons with disabilities or age 65 and older, shall pay an annual nonrefundable
425.27license fee of 0.27 percent of revenues derived from the provision of services that
425.28would require licensure under this chapter and that are specified under section 245D.03,
425.29subdivision 1, during the calendar year immediately preceding the year in which the
425.30license fee is paid. If the calculated fee is less than $450, the fee shall be $450.
425.31(2) The commissioner shall calculate the licensing fee for providers of home and
425.32community-based services and supports under this paragraph and invoice the license
425.33holder annually. Upon challenge of the invoiced fee amount by the license holder, the
425.34commissioner shall provide the license holder with a report identifying the medical
425.35assistance claims paid by the commissioner to the license holder that formed the basis
425.36for the licensing fee calculation.

426.1    Sec. 2. Minnesota Statutes 2014, section 245A.10, subdivision 8, is amended to read:
426.2    Subd. 8. Deposit of license fees. A human services licensing account is created in
426.3the state government special revenue fund. Fees collected under subdivisions 3 and 4 must
426.4be deposited in the human services licensing account and are annually appropriated to the
426.5commissioner for licensing activities authorized under this chapter.
426.6EFFECTIVE DATE.This section is effective July 1, 2017.

426.7    Sec. 3. Minnesota Statutes 2015 Supplement, section 245D.03, subdivision 1, is
426.8amended to read:
426.9    Subdivision 1. Applicability. (a) The commissioner shall regulate the provision of
426.10home and community-based services to persons with disabilities and persons age 65 and
426.11older pursuant to this chapter. The licensing standards in this chapter govern the provision
426.12of basic support services and intensive support services.
426.13(b) Basic support services provide the level of assistance, supervision, and care that
426.14is necessary to ensure the health and welfare of the person and do not include services that
426.15are specifically directed toward the training, treatment, habilitation, or rehabilitation of
426.16the person. Basic support services include:
426.17(1) in-home and out-of-home respite care services as defined in section 245A.02,
426.18subdivision 15, and under the brain injury, community alternative care, community access
426.19for disability inclusion, developmental disability, and elderly waiver plans, excluding
426.20out-of-home respite care provided to children in a family child foster care home licensed
426.21under Minnesota Rules, parts 2960.3000 to 2960.3100, when the child foster care license
426.22holder complies with the requirements under section 245D.06, subdivisions 5, 6, 7, and
426.238, or successor provisions; and section 245D.061 or successor provisions, which must
426.24be stipulated in the statement of intended use required under Minnesota Rules, part
426.252960.3000, subpart 4;
426.26(2) adult companion services as defined under the brain injury, community access
426.27for disability inclusion, and elderly waiver plans, excluding adult companion services
426.28provided under the Corporation for National and Community Services Service, Senior
426.29Companion Program established under the Domestic Volunteer Service Act of 1973, Public
426.30Law 98-288 Code of Federal Regulations, title 45, subpart B, chapter 25, part 2551 et seq.;
426.31(3) personal support as defined under the developmental disability waiver plan;
426.32(4) 24-hour emergency assistance, personal emergency response as defined under
426.33the community access for disability inclusion and developmental disability waiver plans;
426.34(5) night supervision services as defined under the brain injury waiver plan; and
427.1(6) homemaker services as defined under the community access for disability
427.2inclusion, brain injury, community alternative care, developmental disability, and elderly
427.3waiver plans, excluding providers licensed by the Department of Health under chapter
427.4144A and those providers providing cleaning services only.; and
427.5(7) individual community living support under section 256B.0915, subdivision 3j.
427.6(c) Intensive support services provide assistance, supervision, and care that is
427.7necessary to ensure the health and welfare of the person and services specifically directed
427.8toward the training, habilitation, or rehabilitation of the person. Intensive support services
427.9include:
427.10(1) intervention services, including:
427.11(i) behavioral support services as defined under the brain injury and community
427.12access for disability inclusion waiver plans;
427.13(ii) in-home or out-of-home crisis respite services as defined under the developmental
427.14disability waiver plan; and
427.15(iii) specialist services as defined under the current developmental disability waiver
427.16plan;
427.17(2) in-home support services, including:
427.18(i) in-home family support and supported living services as defined under the
427.19developmental disability waiver plan;
427.20(ii) independent living services training as defined under the brain injury and
427.21community access for disability inclusion waiver plans; and
427.22(iii) semi-independent living services;
427.23(3) residential supports and services, including:
427.24(i) supported living services as defined under the developmental disability waiver
427.25plan provided in a family or corporate child foster care residence, a family adult foster
427.26care residence, a community residential setting, or a supervised living facility;
427.27(ii) foster care services as defined in the brain injury, community alternative care,
427.28and community access for disability inclusion waiver plans provided in a family or
427.29corporate child foster care residence, a family adult foster care residence, or a community
427.30residential setting; and
427.31(iii) residential services provided to more than four persons with developmental
427.32disabilities in a supervised living facility, including ICFs/DD;
427.33(4) day services, including:
427.34(i) structured day services as defined under the brain injury waiver plan;
427.35(ii) day training and habilitation services under sections 252.41 to 252.46, and as
427.36defined under the developmental disability waiver plan; and
428.1(iii) prevocational services as defined under the brain injury and community access
428.2for disability inclusion waiver plans; and
428.3(5) supported employment as defined under the brain injury, developmental
428.4disability, and community access for disability inclusion waiver plans.
428.5EFFECTIVE DATE.Paragraph (b), clause (2), of this section is effective the day
428.6following final enactment. Paragraph (b), clause (7), of this section is effective July 1, 2017.

428.7    Sec. 4. Minnesota Statutes 2014, section 256B.0949, is amended to read:
428.8256B.0949 AUTISM EARLY INTENSIVE DEVELOPMENTAL AND
428.9BEHAVIORAL INTERVENTION BENEFIT.
428.10    Subdivision 1. Purpose. This section creates a new the early intensive
428.11developmental and behavioral intervention (EIDBI) benefit to provide early intensive
428.12intervention to a child with an autism spectrum disorder diagnosis or related condition.
428.13This benefit must provide coverage for diagnosis a comprehensive, multidisciplinary
428.14assessment, ongoing progress evaluation, and medically necessary early intensive
428.15treatment of autism spectrum disorder or related conditions.
428.16    Subd. 2. Definitions. (a) For the purposes of this section, the terms defined in
428.17this subdivision have the meanings given.
428.18    (b) "Agency" means the legal entity that is enrolled with Minnesota health care
428.19programs as a medical assistance provider according to Minnesota Rules, part 9505.0195,
428.20to provide EIDBI and that has the legal responsibility to ensure that its employees or
428.21contractors carry out the responsibilities defined in this section. The definition of "agency"
428.22includes licensed individual professionals who practice independently and act as an agency.
428.23    (b) (c) "Autism spectrum disorder diagnosis" is defined by diagnostic code 299 or
428.24"ASD" has the meaning given in the current version of the Diagnostic and Statistical
428.25Manual of Mental Disorders (DSM).
428.26    (d) "ASD and related conditions" means a condition that is found to be closely
428.27related to autism spectrum disorder and may include but is not limited to autism,
428.28Asperger's syndrome, pervasive developmental disorder-not otherwise specified, fetal
428.29alcohol spectrum disorder, Rhett's syndrome, and autism-related diagnosis as identified
428.30under the current version of the DSM and meets all of the following criteria:
428.31    (1) is severe and chronic;
428.32    (2) results in impairment of adaptive behavior and function similar to that of persons
428.33with ASD;
428.34    (3) requires treatment or services similar to those required for persons with ASD; and
429.1    (4) results in substantial functional limitations in three core developmental deficits
429.2of ASD: social interaction; nonverbal or social communication; and restrictive, repetitive
429.3behaviors or hyperreactivity or hyporeactivity to sensory input; and may include deficits
429.4in one or more of the following related developmental domains:
429.5    (i) self-regulation;
429.6    (ii) self-care;
429.7    (iii) behavioral challenges;
429.8    (iv) expressive communication;
429.9    (v) receptive communication;
429.10    (vi) cognitive functioning;
429.11    (vii) safety; and
429.12    (viii) level of support needed.
429.13    (c) (e) "Child" means a person under the age of 18 21.
429.14(f) "Clinical supervision" means the overall responsibility for the control and direction
429.15of EIDBI service delivery, including individual treatment planning, staff supervision,
429.16progress monitoring, and treatment review for each client. Clinical supervision is provided
429.17by a qualified supervising professional who takes full professional responsibility for the
429.18services provided by each of the supervisees. All EIDBI services must be billed by and
429.19either provided by or under the clinical supervision of a qualified supervising professional.
429.20    (d) (g) "Commissioner" means the commissioner of human services, unless
429.21otherwise specified.
429.22    (h) "Comprehensive multidisciplinary evaluation" or "CMDE" means a
429.23comprehensive evaluation of a child's developmental status to determine medical necessity
429.24for EIDBI based on the requirements in subdivision 5.
429.25    (e) (i) "Early intensive developmental and behavioral intervention benefit" or
429.26"EIDBI" means autism treatment options intensive treatment interventions based in
429.27behavioral and developmental science, which may include modalities such as applied
429.28behavior analysis, developmental treatment approaches, and naturalistic and parent
429.29training models that include the services covered under subdivision 13.
429.30    (f) (j) "Generalizable goals" means results or gains that are observed during a variety
429.31of activities over time with different people, such as providers, family members, other
429.32adults, and children, and in different environments including, but not limited to, clinics,
429.33homes, schools, and the community.
429.34    (k) "Individual treatment plan" or "ITP" means the person-centered, individualized
429.35written plan of care that integrates and coordinates child and family information from the
429.36comprehensive multidisciplinary evaluation for a child who meets medical necessity for
430.1the early intensive developmental and behavioral intervention benefit. An individual
430.2treatment plan must meet the standards in subdivision 6.
430.3    (l) "Legal representative" means the parent of a person who is under 18 years of age,
430.4a court-appointed guardian, or other representative with legal authority to make decisions
430.5about services for a person. Other representatives with legal authority to make decisions
430.6include but are not limited to a health care agent or an attorney-in-fact authorized through
430.7a health care directive or power of attorney.
430.8(m) "Level I treatment provider" means a person who meets the EIDBI provider
430.9qualifications under subdivision 15, paragraph (a).
430.10(n) "Level II treatment provider" means a person who meets the EIDBI provider
430.11qualifications under subdivision 15, paragraph (b).
430.12(o) "Level III treatment provider" means a person who meets the EIDBI provider
430.13qualifications under subdivision 15, paragraph (c).
430.14    (g) (p) "Mental health professional" has the meaning given in section 245.4871,
430.15subdivision 27, clauses (1) to (6).
430.16(q) "Person-centered" means services that respond to the identified needs, interests,
430.17values, preferences, and desired outcomes of the child and the child's legal representative.
430.18Person-centered planning identifies what is important to the child and the child's legal
430.19representative, respects each child's history, dignity, and cultural background, and allows
430.20inclusion and participation in the child's community.
430.21(r) "Qualified CMDE provider" means a person meeting the CMDE provider
430.22qualification requirements under subdivision 5a.
430.23(s) "Qualified EIDBI professional" means a person who is a QSP or a level I, level
430.24II, or level III treatment provider.
430.25(t) "Qualified supervising professional" or "QSP" means a person who meets the
430.26EIDBI provider qualifications under subdivision 15, paragraph (d).
430.27    Subd. 3. Initial EIDBI eligibility. This benefit is available to a child enrolled in
430.28medical assistance who:
430.29    (1) has an autism spectrum disorder a diagnosis of ASD or a related condition that
430.30meets the criteria of subdivision 4; and
430.31    (2) has had a diagnostic assessment described in subdivision 5, which recommends
430.32early intensive intervention services; and
430.33    (3) meets the criteria for medically necessary autism early intensive intervention
430.34services.
430.35    Subd. 3a. Culturally and linguistically appropriate requirement. The child's and
430.36family's primary spoken language, culture, preferences, goals, and values must be reflected
431.1throughout the process of diagnosis, CMDE, ITP development, ITP progress evaluation
431.2monitoring, family or caregiver training and counseling services, and coordination of care.
431.3The qualified CMDE provider and QSP must determine how to adapt the evaluation,
431.4treatment recommendations, and ITP to the culture, language, and values of the child and
431.5family. A language interpreter must be provided consistent with section 256B.0625,
431.6subdivision 18a. Providers must have a limited English proficiency (LEP) plan in
431.7compliance with title VI of the Civil Rights Act of 1964, United States Code, title 42,
431.8section 2000d et seq. Communication and language assistance must comply with national
431.9standards for culturally and linguistically appropriate services (CLAS), as published by
431.10the United States Department of Health and Human Services.
431.11    Subd. 4. Diagnosis. (a) A diagnosis of ASD or a related condition must:
431.12    (1) be based upon current DSM criteria including direct observations of the child and
431.13reports information from parents the child's legal representative or primary caregivers; and
431.14    (2) be completed by either (i) a licensed physician or advanced practice registered
431.15nurse or (ii) a mental health professional; and
431.16    (3) meet the requirements of Minnesota Rules, part 9505.0372, subpart 1, items
431.17B and C.
431.18    (b) Additional diagnostic assessment information may be considered to complete
431.19a diagnostic assessment including from specialized tests administered through special
431.20education evaluations and licensed school personnel, and from professionals licensed
431.21in the fields of medicine, speech and language, psychology, occupational therapy, and
431.22physical therapy. A diagnostic assessment may include treatment recommendations.
431.23    Subd. 5. Diagnostic assessment Comprehensive multidisciplinary evaluation
431.24(CMDE). (a) The following information and assessments must be performed, reviewed,
431.25and relied upon for the eligibility determination, treatment and services recommendations,
431.26and treatment plan development for the child:
431.27    (1) an assessment of the child's developmental skills, functional behavior, needs,
431.28and capacities based on direct observation of the child, which must be administered by
431.29a licensed mental health professional, must include medical or assessment information
431.30from the child's physician or advanced practice registered nurse, and may also include
431.31observations from family members, school personnel, child care providers, or other
431.32caregivers, as well as any medical or assessment information from other licensed
431.33professionals such as rehabilitation therapists, licensed school personnel, or mental health
431.34professionals; and
431.35    (2) an assessment of parental or caregiver capacity to participate in therapy including
431.36the type and level of parental or caregiver involvement and training recommended.
432.1A CMDE must be completed to determine the medical necessity of EIDBI services.
432.2(b) The CMDE must include and document the child's legal representative's or
432.3caregiver's preferences for involvement in the child's treatment that is culturally and
432.4linguistically appropriate as required under subdivision 3a.
432.5    Subd. 5a. CMDE provider qualification requirements. A qualified CMDE
432.6provider must:
432.7(1) be a licensed physician or advanced practice registered nurse or a mental health
432.8professional or a mental health practitioner who meets the requirements of a clinical
432.9trainee as defined in Minnesota Rules, part 9505.0371, subpart 5, item C;
432.10(2) have at least 2,000 hours of clinical experience in the evaluation and treatment
432.11of children with ASD or equivalent documented coursework at the graduate level by an
432.12accredited university in the following content areas: ASD diagnosis, ASD treatment
432.13strategies, and child development;
432.14(3) be able to diagnose, evaluate, or provide treatment within the provider's scope
432.15of practice and professional license; and
432.16(4) have knowledge and provide information about the range of current EIDBI
432.17treatment modalities recognized by the commissioner.
432.18    Subd. 6. Individual treatment plan (ITP). (a) The qualified EIDBI professional
432.19who integrates and coordinates child and family information from the CMDE and ITP
432.20progress evaluation monitoring process to develop the ITP must develop and monitor
432.21the ITP.
432.22    (b) The ITP must be individualized, person-centered, and culturally and linguistically
432.23appropriate, as required under subdivision 3a. The ITP must specify the medically
432.24necessary treatment and services, including baseline data, primary goals and target
432.25objectives, ITP progress evaluation results and goal mastery data, and any significant
432.26changes in the child's condition or family circumstances. Each child's treatment plan
432.27ITP must be:
432.28    (1) based on the diagnostic assessment and CMDE summary information specified
432.29in subdivisions 4 and 5;
432.30    (2) coordinated with medically necessary occupational, physical, and speech and
432.31language therapies, special education, and other services the child and family are receiving;
432.32    (3) family-centered;
432.33    (4) culturally sensitive; and
432.34    (5) individualized based on the child's developmental status and the child's and
432.35family's identified needs.
433.1    (b) (c) The treatment plan ITP must specify the primary treatment goals and target
433.2objectives, including baseline measures and projected dates of accomplishment. The
433.3ITP must include:
433.4    (1) child's goals which are developmentally appropriate, functional, and
433.5generalizable;
433.6    (2) treatment modality;
433.7    (3) treatment intensity;
433.8    (4) setting; and
433.9    (5) level and type of parental or caregiver involvement.
433.10    (1) the treatment method that shall be used to meet the goals and objectives, including:
433.11    (i) the frequency, intensity, location, and duration of each service provided;
433.12    (ii) the level of parent or caregiver training and counseling;
433.13    (iii) any changes or modifications to the physical and social environments necessary
433.14when the services are provided;
433.15    (iv) any specialized equipment and materials required;
433.16    (v) techniques that support and are consistent with the child's communication mode
433.17and learning style; and
433.18    (vi) the name of the QSP; and
433.19    (2) the discharge criteria that shall be used and a defined transition plan to assist
433.20the child and the child's legal representative to transition to other services. The transition
433.21plan shall include:
433.22    (i) protocols for changing service when medically necessary;
433.23    (ii) how the transition will occur;
433.24    (iii) the time allowed to make the transition. Up to 30 days of continued service
433.25is allowed while the transition plan is being developed. Services during this plan
433.26development period shall be consistent with the ITP. The plan development period begins
433.27when the child or the child's legal representative receives notice of termination of EIDBI
433.28and ends when EIDBI is terminated; and
433.29    (iv) a description of how the parent or guardian will be informed of and involved in
433.30the transition.
433.31    (c) (d) Implementation of the treatment ITP must be supervised by a QSP
433.32professional with expertise and training in autism and child development who is a licensed
433.33physician, advanced practice registered nurse, or mental health professional .
433.34    (d) (e) The treatment plan ITP must be submitted to the commissioner for approval
433.35in a manner determined by the commissioner for this purpose.
433.36    (e) Services authorized must be consistent with the child's approved treatment plan.
434.1(f) Services included in the treatment plan ITP must meet all applicable requirements
434.2for medical necessity and coverage.
434.3    Subd. 6a. Coordination with other benefits. (a) Services provided under this
434.4section are not intended to replace services provided in school or other settings. Each
434.5child's CMDE must document that EIDBI services coordinate with, but do not include
434.6or replace, special education and related services defined in the child's individualized
434.7education plan (IEP), or individualized family service plan (IFSP), when the service is
434.8available under the Individuals with Disabilities Education Improvement Act of 2004
434.9(IDEA), United States Code, title 20, chapter 33, through a local education agency. This
434.10provision does not preclude EIDBI treatment during school hours.
434.11(b) The commissioner shall integrate medical authorization procedures for this
434.12benefit with authorization procedures for other health and mental health services and home
434.13and community-based services to ensure that the child receives services that are the most
434.14appropriate and effective in meeting the child's needs. Programs for birth to three years of
434.15age and additional resources shall also coordinate with EIDBI services. Resources for
434.16individuals over 18 years of age must also be coordinated with the services in this section.
434.17    Subd. 7. Ongoing eligibility ITP progress evaluation monitoring. (a) An
434.18independent ITP progress evaluation conducted by a licensed mental health professional
434.19with expertise and training in autism spectrum disorder and child development must
434.20be completed after each six months of treatment, or more frequently as determined by
434.21the commissioner qualified CMDE provider, to determine if progress is being made
434.22toward achieving targeted functional and generalizable goals and meeting functional
434.23goals contained specified in the treatment plan ITP. Based on the results of ITP progress
434.24evaluation, the ITP must be adjusted as needed and must document that the child continues
434.25to meet medical necessity for EIDBI or is referred to other services.
434.26    (b) The ITP progress evaluation must include:
434.27    (1) the treating provider's report;
434.28    (2) parental or caregiver input from the child's caregiver or the child's legal
434.29representative;
434.30    (3) (2) an independent observation of the child which can be that is performed by
434.31the child's a QSP or a level I or level II treatment provider and may include observation
434.32information from licensed special education staff or other licensed health care providers;
434.33(3) documentation of current level of performance on primary treatment goal
434.34domains including when goals and objectives are achieved, changed, or discontinued;
434.35(4) any significant changes in the child's condition or family circumstances;
435.1    (4) (5) any treatment plan modifications and the rationale for any changes made
435.2including treatment modality, intensity, frequency, and duration; and
435.3    (5) (6) recommendations for continued treatment services.
435.4    (c) ITP progress evaluations evaluation must be submitted to the commissioner and
435.5the child or legal representative in a manner determined by the commissioner for this
435.6purpose the reauthorization of EIDBI services.
435.7    (d) A child who continues to achieve generalizable goals and make reasonable
435.8progress toward treatment goals as specified in the treatment plan ITP is eligible to
435.9continue receiving this benefit EIDBI services.
435.10    (e) A child's treatment shall continue during the ITP progress evaluation using
435.11the process determined under subdivision 8, clause (8) this subdivision. Treatment may
435.12continue during an appeal pursuant to section 256.045.
435.13    Subd. 8. Refining the benefit with stakeholders. The commissioner must develop
435.14the implementation refine the details of the benefit in consultation with stakeholders and
435.15consider recommendations from the Health Services Advisory Council, the Department
435.16of Human Services Autism Spectrum Disorder Early Intensive Developmental and
435.17Behavioral Intervention Benefit Advisory Council, the Legislative Autism Spectrum
435.18Disorder Task Force, the EIDBI learning collaborative, and the ASD Interagency Task
435.19Force of the Departments of Health, Education, Employment and Economic Development,
435.20and Human Services. The commissioner must release these details for a 30-day public
435.21comment period prior to submission to the federal government for approval. The
435.22implementation details must include, but are not limited to, the following components:
435.23    (1) a definition of the qualifications, standards, and roles of the treatment team,
435.24including recommendations after stakeholder consultation on whether board-certified
435.25behavior analysts and other types of professionals certified in other treatment approaches
435.26recognized by the Department of Human Services or trained in autism spectrum disorder
435.27and child development should be added as mental health or other professionals for qualified
435.28to provide EIDBI treatment supervision or other functions under medical assistance;
435.29    (2) development of initial, refinement of uniform parameters for comprehensive
435.30multidisciplinary diagnostic assessment information evaluation and progress evaluation
435.31ongoing ITP progress evaluation monitoring standards;
435.32    (3) the design of an effective and consistent process for assessing parent the child's
435.33legal representative's and caregiver capacity caregiver's preferences and options to
435.34participate in the child's early intervention treatment and efficacy of methods of involving
435.35the parents to involve and educate the child's legal representative and caregivers in the
435.36treatment of the child;
436.1    (4) formulation of a collaborative process in which professionals have
436.2opportunities to collectively inform provider standards and qualifications; standards for a
436.3comprehensive, multidisciplinary diagnostic assessment evaluation; medical necessity
436.4determination; efficacy of treatment apparatus, including modality, intensity, frequency,
436.5and duration; and progress evaluation progress-monitoring processes and standards to
436.6support quality improvement of early intensive intervention EIDBI services;
436.7    (5) coordination of this benefit and its interaction with other services provided by
436.8the Departments of Human Services, Health, Employment and Economic Development,
436.9and Education;
436.10    (6) evaluation, on an ongoing basis, of research regarding the program EIDBI
436.11outcomes and efficacy of treatment modalities methods provided to children under this
436.12benefit; and
436.13    (7) as provided under subdivision 18, determination of the availability of licensed
436.14physicians, nurse practitioners, and mental health professionals qualified EIDBI
436.15professionals with necessary expertise and training in autism spectrum disorder and
436.16related conditions throughout the state to assess whether there are sufficient professionals
436.17to require involvement of both a physician or nurse practitioner and a mental health
436.18professional to provide timely access and prevent delay in the diagnosis and CMDE and
436.19treatment of young children, so as to implement subdivision 4, and to ensure treatment is
436.20effective, timely, and accessible; and ASD and related conditions.
436.21(8) development of the process for the progress evaluation that will be used to
436.22determine the ongoing eligibility, including necessary documentation, timelines, and
436.23responsibilities of all parties.
436.24    Subd. 9. Revision of treatment options. (a) The commissioner may revise covered
436.25treatment options as needed based on outcome data and other evidence. EIDBI treatment
436.26methods approved by the Department of Human Services must:
436.27    (1) cause no harm to the individual child or family;
436.28    (2) be provided in an individualized manner to meet the varied needs of each child
436.29and family;
436.30    (3) be developmentally appropriate and highly structured, with well-defined goals
436.31and objectives that provide a strategic direction for treatment;
436.32    (4) be regularly evaluated and adjusted as needed;
436.33    (5) be based in recognized principles of developmental and behavioral science;
436.34    (6) utilize sound practices that are replicable across providers and maintain the
436.35fidelity of the specific approach;
436.36    (7) demonstrate an evidentiary basis;
437.1    (8) have goals and objectives that are measurable, achievable, and regularly
437.2evaluated to ensure that adequate progress is being made;
437.3    (9) be provided intensively with a high adult-to-child ratio; and
437.4    (10) include active child and legal representative participation in decision-making,
437.5knowledge- and capacity-building, and developing and implementing the child's ITP.
437.6    (b) Before the changes revisions in Department of Human Services recognized
437.7treatment modalities become effective, the commissioner must provide public notice of
437.8the changes, the reasons for the change, and a 30-day public comment period to those
437.9who request notice through an electronic list accessible to the public on the department's
437.10Web site.
437.11    Subd. 10. Coordination between agencies. The commissioners of human services
437.12and education must develop the capacity to coordinate services and information including
437.13diagnostic, functional, developmental, medical, and educational assessments; service
437.14delivery; and progress evaluations across health and education sectors.
437.15    Subd. 11. Federal approval of the autism benefit. (a) This section shall apply
437.16to state plan services under title XIX of the Social Security Act when federal approval
437.17is granted under a 1915(i) waiver or other authority which allows children eligible for
437.18medical assistance through the TEFRA option under section 256B.055, subdivision 12, to
437.19qualify and includes children eligible for medical assistance in families over 150 percent
437.20of the federal poverty guidelines.
437.21(b) The commissioner may use the federal authority for a Medicaid state plan
437.22amendment under Early and Periodic Screening Diagnosis and Treatment (EPSDT),
437.23United States Code, title 42, section 1396D(R)(5), or other Medicaid provision for any
437.24aspect or type of treatment covered in this section if new federal guidance is helpful
437.25in achieving one or more of the purposes of this section in a cost-effective manner.
437.26Notwithstanding subdivisions 2 and 3, any treatment services submitted for federal
437.27approval under EPSDT shall include appropriate medical criteria to qualify for the service
437.28and shall cover children through age 20.
437.29    Subd. 12. Autism benefit; training provided. After approval of the autism early
437.30intensive intervention benefit under this section by the Centers for Medicare and Medicaid
437.31Services, the commissioner shall provide statewide training on the benefit for culturally
437.32and linguistically diverse communities. Training for autism service providers on culturally
437.33appropriate practices must be online, accessible, and available in multiple languages. The
437.34training for families, lead agencies, advocates, and other interested parties must provide
437.35information about the benefit and how to access it.
438.1    Subd. 13. Covered services. (a) The services described in paragraphs (b) to (i) are
438.2eligible for reimbursement by medical assistance under this section.
438.3(b) EIDBI interventions are a variety of individualized, intensive treatment methods
438.4approved by the department that are based in behavioral and developmental science
438.5consistent with best practices on effectiveness. Services must address the participant's
438.6medically necessary treatment goals and be provided by a qualified supervising
438.7professional or a level I, level II, or level III treatment provider. Services are targeted to
438.8develop, enhance, or maintain the individual developmental skills of a child with ASD and
438.9related conditions to improve functional communication, social or interpersonal interaction,
438.10behavioral challenges and self-regulation, cognition, learning and play, self-care, safety,
438.11and level of support needed. EIDBI interventions include, but are not limited to:
438.12(1) applied behavioral analysis (ABA);
438.13(2) developmental individual-difference relationship-based model (DIR/Floortime);
438.14(3) early start Denver model (ESDM);
438.15(4) PLAY project; or
438.16(5) relationship development intervention (RDI).
438.17A provider may use one or more of the treatment interventions in clauses (1) to (5) as the
438.18primary modality for treatment as a covered service, or several treatment interventions
438.19in combination as the primary modality of treatment, as approved by the commissioner.
438.20Additional treatment interventions may be used upon approval by the commissioner.
438.21A provider that identifies and provides assurance of qualifications for a single specific
438.22treatment modality must document the required qualifications to meet fidelity to the
438.23specific model.
438.24(c) EIDBI intervention observation and direction is the clinical direction and oversight
438.25by a QSP or a level I or level II treatment provider regarding provision of EIDBI services
438.26to a child, including developmental and behavioral techniques, progress measurement, data
438.27collection, function of behaviors, and generalization of acquired skills for the direct benefit
438.28of a child. EIDBI intervention observation and direction informs any modifications of the
438.29methods to support the accomplishment of outcomes in the ITP. Observation and direction
438.30provides a real-time response to EIDBI interventions to maximize the benefit to the child.
438.31(d) CMDE is a comprehensive evaluation of the child's developmental status to
438.32determine medical necessity for EIDBI services and meets the requirements of subdivision
438.335. The services must be provided by a qualified CMDE provider.
438.34(e) ITP development and monitoring is development of the initial, annual, and
438.35progress monitoring of ITPs. This service documents, provides oversight and on-going
438.36evaluation of child treatment and progress on targeted goals and objectives, and integrates
439.1and coordinates child and family information from the CMDE and progress monitoring
439.2evaluations. The ITP must meet the requirements of subdivision 6. ITP progress evaluation
439.3monitoring must meet the requirements of subdivision 7. This service must be reviewed
439.4and completed by a QSP, and may include input from a level I or level II treatment provider.
439.5(f) Family caregiver training and counseling is specialized training and education a
439.6family or primary caregiver receives to understand the child's developmental status and
439.7help with the child's needs and development. This service must be provided by a QSP
439.8or a level I or level II treatment provider.
439.9(g) A coordinated care conference is a voluntary face-to-face meeting with the
439.10child and family to review the CMDE or progress monitoring results and to coordinate
439.11and integrate services across providers and service-delivery systems to develop the ITP.
439.12This service must be provided by a QSP and may include the CMDE provider or the level
439.13I or level II treatment provider.
439.14(h) Travel time is allowable billing for traveling to and from the recipient's home,
439.15school, a community setting, or place of service outside of an EIDBI center, clinic, or
439.16office from a specified location to provide face-to-face EIDBI intervention, observation
439.17and direction, or family caregiver training and counseling. EIDBI recipients must have an
439.18ITP specifying the reasons the provider must travel to the recipient's home, a community
439.19setting, or place of service outside of an EIDBI center, clinic, or office.
439.20(i) Medical assistance covers medically necessary EIDBI services and consultations
439.21delivered by a licensed health care provider via telemedicine in the same manner as if the
439.22service or consultation was delivered in person. Coverage is limited to three telemedicine
439.23services per enrollee per calendar week.
439.24    Subd. 14. Service recipient rights. A child or the child's legal representative
439.25has the right to:
439.26(1) protection as defined under the health care bill of rights under section 144.651;
439.27(2) designate an advocate of the child's or the child's legal representative's choice to
439.28be present in all aspects of the child's and family's services at the request of the child or
439.29the child's legal representative;
439.30(3) be informed of the agency policy on assigning staff to a child;
439.31(4) receive the opportunity to observe the child while receiving services;
439.32(5) receive services in a manner that respects and takes into consideration the child's
439.33and the legal representative's culture, values, religion, and preferences in accordance
439.34with subdivision 3a;
439.35(6) be free from mechanical restraint or seclusion using locked doors except in
439.36emergencies as defined in section 245D.02, subdivision 8a;
440.1(7) be under the supervision of a responsible adult at all times;
440.2(8) receive notification from the agency within 24 hours if the child is injured while
440.3receiving services, including what occurred and how agency staff responded to the injury;
440.4(9) request a voluntary coordinated care conference; and
440.5(10) request an independent CMDE provider of the child's or legal representative's
440.6choice.
440.7    Subd. 15. EIDBI provider qualifications. (a) A level I treatment provider must be
440.8employed by an EIDBI agency and:
440.9(1) have at least 2,000 hours of supervised clinical experience or training in
440.10examining or treating children with ASD or equivalent documented coursework at the
440.11graduate level by an accredited university in ASD diagnostics, ASD developmental
440.12and behavioral treatment strategies, and typical child development or an equivalent
440.13combination of documented coursework or hours of experience; and
440.14(2) have or be at least one of the following:
440.15(i) a master's degree in behavioral health or child development or allied fields,
440.16including but not limited to mental health, special education, social work, psychology,
440.17speech pathology, or occupational therapy from an accredited college or university;
440.18(ii) a bachelor's degree in a behavioral health or child development field from
440.19an accredited college or university and advanced certification in a treatment method
440.20recognized by the Department of Human Services; or
440.21(iii) a board-certified assistant behavior analyst with 4,000 hours of supervised
440.22clinical experience including meeting all registration, supervision, and continuing
440.23education requirements of the certification.
440.24(b) A level II treatment provider must be employed by an EIDBI provider agency
440.25and be either:
440.26(1) a person who has a bachelor's degree from an accredited college or university
440.27in a behavioral or child development science or allied field including but not limited
440.28to mental health, special education, social work, psychology, speech pathology, or
440.29occupational therapy; and
440.30(i) has at least 1,000 hours of clinical experience or training in examining or
440.31treating children with ASD or equivalent documented coursework at the graduate level
440.32by an accredited university in ASD diagnostics, ASD developmental and behavioral
440.33treatment strategies, and typical child development or a combination of coursework or
440.34hours of experience;
440.35(ii) certification as a board-certified assistant behavior analyst from the Behavior
440.36Analyst Certification Board; or
441.1(iii) is a registered behavior technician as defined by the Behavior Analyst
441.2Certification Board or is certified in one of the other treatment modalities recognized by
441.3the Department of Human Services;
441.4(2) a person who:
441.5(i) has an associate's degree in a behavioral or child development science or allied
441.6field including but not limited to mental health, special education, social work, psychology,
441.7speech pathology, or occupational therapy from an accredited college or university; and
441.8(ii) has at least 2,000 hours of supervised clinical experience in delivering treatment
441.9to children with ASD. Hours worked as a behavioral aide or level III treatment provider
441.10may be included in the required hours of experience;
441.11(3) a person who has at least 4,000 hours of supervised clinical experience in
441.12delivering treatment to children with ASD. Hours worked as a mental health behavioral
441.13aide or developmental or level III treatment provider may be included in the required
441.14hours of experience;
441.15(4) a person who is a graduate student in a behavioral science, child development
441.16science, or allied field and is receiving clinical supervision by a qualified supervising
441.17professional affiliated with an agency to meet the clinical training requirements for
441.18experience and training with children with ASD; or
441.19(5) a person who is at least 18 years old and who:
441.20(i) is fluent in the non-English language spoken in the child's home or works with a
441.21tribal entity that represents the child's culture;
441.22(ii) meets level III EIDBI training requirements; and
441.23(iii) receives observation and direction from a QSP or qualified level I treatment
441.24provider at least once a week until 1,000 hours of supervised clinical experience are met.
441.25(c) A level III treatment provider must be employed by an EIDBI provider agency,
441.26have completed the level III training requirement, be at least 18 years old, and have at
441.27least one of the following:
441.28(1) a high school diploma or general equivalency diploma (GED);
441.29(2) fluency in the non-English language spoken in the child's home or works with a
441.30tribal entity that represents the child's culture; or
441.31(3) one year of experience as a primary PCA, community health worker, waiver
441.32service provider, or special education assistant to a child with ASD within the previous
441.33five years.
441.34(d) A qualified supervising professional must be employed by an EIDBI agency
441.35and be:
442.1(1) a licensed mental health professional who has at least 2,000 hours of supervised
442.2clinical experience or training in examining or treating children with ASD or equivalent
442.3documented coursework at the graduate level by an accredited university in ASD
442.4diagnostics, ASD developmental and behavioral treatment strategies, and typical child
442.5development; or
442.6(2) a developmental or behavioral pediatrician who has at least 2,000 hours of
442.7supervised clinical experience or training in the examining or treating of children with
442.8ASD or related conditions or equivalent documented coursework at the graduate level
442.9by an accredited university in the areas of ASD diagnostics, ASD developmental and
442.10behavioral treatment strategies, and typical child development.
442.11    Subd. 16. Agency responsibilities. (a) The agency must:
442.12(1) exercise and protect the service recipient's rights;
442.13(2) offer services that are person-centered and culturally and linguistically
442.14appropriate as required under subdivision 3a;
442.15(3) allow people to make informed decisions concerning CMDE, treatment
442.16recommendations, alternatives considered, and possible risks of services;
442.17(4) have a written policy that identifies steps to resolve issues collaboratively when
442.18possible;
442.19(5) except for emergency situations, provide adequate notice of transition, subject
442.20to staff availability, of transition from EIDBI services prior to implementing a transition
442.21plan with the family;
442.22(6) provide notice as soon as possible when issues arise about provision of EIDBI
442.23services;
442.24(7) provide the legal representative with prompt notification if the child is injured
442.25while being served by the agency. An incident report must be completed by the agency
442.26staff member in charge of the child. Copies of all incident and injury reports must remain
442.27on file at the agency for at least one year. An incident is when any of the following occur:
442.28(i) an illness, accident, or injury which requires first aid treatment;
442.29(ii) a bump or blow to the head; or
442.30(iii) an unusual or unexpected event that jeopardizes the safety of children or staff,
442.31including a child leaving the agency unattended; and
442.32(8) prior to starting services, provide the child or the child's legal representative a
442.33plain-spoken description of the treatment method or methods that the child shall receive,
442.34including the staffing certification levels and training of the staff who shall provide the
442.35treatment or treatments.
443.1(b) When delivering the ITP, and annually thereafter, agencies must provide the
443.2child or the child's legal representative with:
443.3(1) a written copy of the child's rights and agency responsibilities;
443.4(2) a verbal explanation of rights and responsibilities;
443.5(3) reasonable accommodations to provide the information in other formats or
443.6languages as needed to facilitate understanding of the rights and responsibilities; and
443.7(4) documentation in the child's file of the date that the child or the child's
443.8legal representative received a copy and explanation of the client's rights and agency
443.9responsibilities.
443.10    Subd. 17. EIDBI agency qualifications, general requirements, and duties. (a)
443.11EIDBI agencies delivering services under this section shall:
443.12(1) enroll as a medical assistance Minnesota health care program provider according
443.13to Minnesota Rules, part 9505.0195, and meet all applicable provider standards and
443.14requirements;
443.15(2) demonstrate compliance with federal and state laws for EIDBI;
443.16(3) verify and maintain records of all services provided to the child or the child's
443.17legal representative as required under Minnesota Rules, parts 9505.2175 and 9505.2197;
443.18(4) not have had a lead agency contract or provider agreement discontinued due to
443.19a conviction of fraud, or not have had an owner, board member, or manager fail a state
443.20or FBI-based criminal background check or appear on the list of excluded individuals or
443.21entities maintained by the federal Department of Human Services Office of Inspector
443.22General while enrolled or seeking enrollment as a Minnesota health care program provider;
443.23(5) have established business practices that include written policies and procedures,
443.24internal controls, and a system that demonstrates the organization's ability to deliver
443.25quality EIDBI services;
443.26(6) have an office located in Minnesota; and
443.27(7) conduct a criminal background check on an individual who has direct contact
443.28with the child or the child's legal representative.
443.29(b) an EIDBI agency shall:
443.30(1) report maltreatment as required under sections 626.556 and 626.557;
443.31(2) provide the child or the child's legal representative with a copy of the
443.32service-related rights under subdivision 14 at the start of services;
443.33(3) comply with any data requests from the department consistent with the Minnesota
443.34Government Data Practices Act, sections 256B.064 and 256B.27; and
443.35(4) provide training for all agency staff on the Maltreatment of Minors Act and the
443.36Vulnerable Adult Protection Act requirements and responsibilities, including mandated
444.1and voluntary reporting, nonretaliation, and the agency's policy for all staff on how to
444.2report suspected abuse and neglect.
444.3    Subd. 18. Provider shortage; authority for exceptions. (a) In consultation with the
444.4Early Intensive Developmental and Behavioral Intervention Advisory Council, including
444.5agencies, professionals, parents of children with ASD, and advocacy organizations, the
444.6commissioner shall determine if a shortage of qualified EIDBI providers exists. For the
444.7purposes of this subdivision, "shortage of qualified EIDBI providers" means a lack of
444.8availability of providers who meet the EIDBI provider qualification requirements under
444.9subdivision 15 that results in the delay of access to timely services under this section, or
444.10that significantly impairs the ability of a provider agency to have sufficient qualified
444.11providers to meet the requirements of this section. The commissioner shall consider
444.12geographic factors when determining the prevalence of a shortage. The commissioner
444.13may determine that a shortage exists only in a specific region of the state, multiple regions
444.14of the state, or statewide. The commissioner shall also consider the availability of various
444.15types of treatment methods covered under this section.
444.16(b) If the commissioner determines that a shortage of qualified providers exists
444.17under paragraph (a), the commissioner, in consultation with the EIDBI Advisory Council
444.18and stakeholders, must establish processes and criteria for granting an exception. The
444.19commissioner may grant an exception to any of the following requirements, but only if an
444.20exception would not compromise child safety nor diminish the quality and effectiveness
444.21of the treatment provided:
444.22(1) EIDBI provider qualifications under this section;
444.23(2) medical assistance provider enrollment requirements under Minnesota Rules,
444.24part 9505.0195; or
444.25(3) applicable provider or agency standards or requirements.
444.26(c) If the commissioner, in consultation with the EIDBI Advisory Council and
444.27stakeholders, determines that a shortage no longer exists, the commissioner must submit a
444.28notice that a shortage no longer exists to the chairs and ranking minority members of the
444.29senate and the house of representatives committees with jurisdiction over health and human
444.30services. The commissioner must post the notice for public comment for 30 days. The
444.31commissioner shall consider all public comments before the commissioner makes a final
444.32determination regarding the termination and timeline for termination of the commissioner's
444.33authority to grant exceptions under this subdivision. Until the shortage ends, the
444.34commissioner shall provide an update annually to the chairs and ranking minority members
444.35of the committees in the house of representatives and the senate with jurisdiction over
444.36health and human services on the status of the provider shortage and exception process.
445.1EFFECTIVE DATE.Subdivisions 1, 5a, 13, and 18 are effective the day following
445.2final enactment. Subdivisions 2 to 3a, 5, 6 to 9, and 14 to 17 are effective August 1, 2016.
445.3Subdivision 4 is effective January 1, 2017.

445.4    Sec. 5. Minnesota Statutes 2015 Supplement, section 256B.441, subdivision 30,
445.5is amended to read:
445.6    Subd. 30. Median total care-related cost per diem and other operating per diem
445.7determined. (a) The commissioner shall determine the median total care-related per
445.8diem to be used in subdivision 50 and the median other operating per diem to be used in
445.9subdivision 51 using the cost reports from nursing facilities in Anoka, Carver, Dakota,
445.10Hennepin, Ramsey, Scott, and Washington Counties.
445.11(b) The median total care-related per diem shall be equal to the median direct care
445.12cost total care-related per diem for a RUG's weight of 1.00 for facilities located in the
445.13counties listed in paragraph (a).
445.14(c) The median other operating per diem shall be equal to the median other
445.15operating per diem for facilities located in the counties listed in paragraph (a). The other
445.16operating per diem shall be the sum of each facility's administrative costs, dietary costs,
445.17housekeeping costs, laundry costs, and maintenance and plant operations costs divided
445.18by each facility's resident days.
445.19EFFECTIVE DATE.This section is effective retroactively from January 1, 2016.

445.20    Sec. 6. Minnesota Statutes 2015 Supplement, section 256B.441, subdivision 66,
445.21is amended to read:
445.22    Subd. 66. Nursing facilities in border cities. (a) Rate increases under this section
445.23for a facility located in Breckenridge are effective for the rate year beginning January 1,
445.242016, and annually thereafter,. Rate increases under this section for a facility located in
445.25Moorhead are effective for the rate year beginning January 1, 2020, and annually thereafter.
445.26    (b) Operating payment rates of a nonprofit nursing facility that exists on January 1,
445.272015, is located anywhere within the boundaries of the city of Breckenridge or Moorhead,
445.28and is reimbursed under this section, section 256B.431, or section 256B.434, shall be
445.29adjusted to be equal to the median RUG's rates, including comparable rate components as
445.30determined by the commissioner, for the equivalent RUG's weight of the nonprofit nursing
445.31facility or facilities located in an adjacent city in another state and in cities contiguous
445.32to the adjacent city. The commissioner must make the comparison required under this
445.33subdivision on October 1 of each year. The adjustment under this subdivision applies to
445.34the rates effective on the following January 1.
446.1    (c) The Minnesota facility's operating payment rate with a weight of 1.0 shall be
446.2computed by dividing the adjacent city's nursing facilities median operating payment rate
446.3with a weight of 1.02 by 1.02. If the adjustments under this subdivision result in a rate that
446.4exceeds the limits in subdivisions 50 and 51 in a given rate year, the facility's rate shall
446.5not be subject to those limits for that rate year. If a facility's rate is increased under this
446.6subdivision, the facility is not subject to the total care-related limit in subdivision 50 and is
446.7not limited to the other operating price established in subdivision 51. This subdivision
446.8shall apply only if it results in a higher operating payment rate than would otherwise be
446.9determined under this section, section 256B.431, or section 256B.434.

446.10    Sec. 7. Minnesota Statutes 2014, section 256B.4912, is amended by adding a
446.11subdivision to read:
446.12    Subd. 11. Annual data submission. (a) In a manner determined by the
446.13commissioner, home and community-based services waiver providers enrolled under this
446.14section shall submit data to the commissioner on the following:
446.15    (1) wages of workers;
446.16(2) benefits paid;
446.17(3) staff retention rates;
446.18(4) amount of overtime paid;
446.19(5) amount of travel time paid;
446.20(6) vacancy rates; and
446.21(7) other data elements determined by the commissioner.
446.22(b) The commissioner may adjust reporting requirements for an individual
446.23self-employed worker.
446.24(c) This subdivision also applies to a provider of personal care assistance services
446.25under section 256B.0625, subdivision 19a; community first services and supports under
446.26section 256B.85; consumer support grants under section 256.476; nursing services and
446.27home health services under section 256B.0625, subdivision 6a; home care nursing
446.28services under section 256B.0625, subdivision 7; intermediate care facilities for persons
446.29with developmental disabilities under section 256B.501; and day training and habilitation
446.30providers serving residents of intermediate care facilities for persons with developmental
446.31disabilities under section 256B.501.
446.32(d) This data shall be submitted annually each calendar year on a date specified by
446.33the commissioner. The commissioner shall give a provider at least 30 calendar days to
446.34submit the data. Failure to submit the data requested may result in delays to medical
446.35assistance reimbursement.
447.1(e) Individually identifiable data submitted to the commissioner in this section are
447.2considered private data on an individual, as defined by section 13.02, subdivision 12.
447.3(f) The commissioner shall analyze data annually for workforce assessments and its
447.4impact on service access.
447.5EFFECTIVE DATE.This section is effective the day following final enactment.

447.6    Sec. 8. Minnesota Statutes 2015 Supplement, section 256B.4913, subdivision 4a,
447.7is amended to read:
447.8    Subd. 4a. Rate stabilization adjustment. (a) For purposes of this subdivision,
447.9"implementation period" means the period beginning January 1, 2014, and ending on
447.10the last day of the month in which the rate management system is populated with the
447.11data necessary to calculate rates for substantially all individuals receiving home and
447.12community-based waiver services under sections 256B.092 and 256B.49. "Banding
447.13period" means the time period beginning on January 1, 2014, and ending upon the
447.14expiration of the 12-month period defined in paragraph (c), clause (5).
447.15(b) For purposes of this subdivision, the historical rate for all service recipients means
447.16the individual reimbursement rate for a recipient in effect on December 1, 2013, except that:
447.17(1) for a day service recipient who was not authorized to receive these waiver
447.18services prior to January 1, 2014; added a new service or services on or after January 1,
447.192014; or changed providers on or after January 1, 2014, the historical rate must be the
447.20weighted average authorized rate for the each provider number in the county of service,
447.21effective December 1, 2013; or
447.22(2) for a unit-based service with programming or a unit-based service without
447.23programming recipient who was not authorized to receive these waiver services prior to
447.24January 1, 2014; added a new service or services on or after January 1, 2014; or changed
447.25providers on or after January 1, 2014, the historical rate must be the weighted average
447.26authorized rate for each provider number in the county of service, effective December 1,
447.272013; or
447.28(3) for residential service recipients who change providers on or after January 1,
447.292014, the historical rate must be set by each lead agency within their county aggregate
447.30budget using their respective methodology for residential services effective December 1,
447.312013, for determining the provider rate for a similarly situated recipient being served by
447.32that provider.
447.33(c) The commissioner shall adjust individual reimbursement rates determined under
447.34this section so that the unit rate is no higher or lower than:
447.35(1) 0.5 percent from the historical rate for the implementation period;
448.1(2) 0.5 percent from the rate in effect in clause (1), for the 12-month period
448.2immediately following the time period of clause (1);
448.3(3) 0.5 percent from the rate in effect in clause (2), for the 12-month period
448.4immediately following the time period of clause (2);
448.5(4) 1.0 percent from the rate in effect in clause (3), for the 12-month period
448.6immediately following the time period of clause (3);
448.7(5) 1.0 percent from the rate in effect in clause (4), for the 12-month period
448.8immediately following the time period of clause (4); and
448.9(6) no adjustment to the rate in effect in clause (5) for the 12-month period
448.10immediately following the time period of clause (5). During this banding rate period, the
448.11commissioner shall not enforce any rate decrease or increase that would otherwise result
448.12from the end of the banding period. The commissioner shall, upon enactment, seek federal
448.13approval for the addition of this banding period.
448.14(d) The commissioner shall review all changes to rates that were in effect on
448.15December 1, 2013, to verify that the rates in effect produce the equivalent level of spending
448.16and service unit utilization on an annual basis as those in effect on October 31, 2013.
448.17(e) By December 31, 2014, the commissioner shall complete the review in paragraph
448.18(d), adjust rates to provide equivalent annual spending, and make appropriate adjustments.
448.19(f) During the banding period, the Medicaid Management Information System
448.20(MMIS) service agreement rate must be adjusted to account for change in an individual's
448.21need. The commissioner shall adjust the Medicaid Management Information System
448.22(MMIS) service agreement rate by:
448.23(1) calculating a service rate under section 256B.4914, subdivision 6, 7, 8, or 9, for
448.24the individual with variables reflecting the level of service in effect on December 1, 2013;
448.25(2) calculating a service rate under section 256B.4914, subdivision 6, 7, 8, or
448.269, for the individual with variables reflecting the updated level of service at the time
448.27of application; and
448.28(3) adding to or subtracting from the Medicaid Management Information System
448.29(MMIS) service agreement rate, the difference between the values in clauses (1) and (2).
448.30(g) This subdivision must not apply to rates for recipients served by providers new
448.31to a given county after January 1, 2014. Providers of personal supports services who also
448.32acted as fiscal support entities must be treated as new providers as of January 1, 2014.

448.33    Sec. 9. Minnesota Statutes 2014, section 256B.4914, subdivision 5, is amended to read:
448.34    Subd. 5. Base wage index and standard component values. (a) The base wage
448.35index is established to determine staffing costs associated with providing services to
449.1individuals receiving home and community-based services. For purposes of developing
449.2and calculating the proposed base wage, Minnesota-specific wages taken from job
449.3descriptions and standard occupational classification (SOC) codes from the Bureau of
449.4Labor Statistics as defined in the most recent edition of the Occupational Handbook must
449.5be used. The base wage index must be calculated as follows:
449.6(1) for residential direct care staff, the sum of:
449.7(i) 15 percent of the subtotal of 50 percent of the median wage for personal and
449.8home health aide (SOC code 39-9021); 30 percent of the median wage for nursing aide
449.9(SOC code 31-1012); and 20 percent of the median wage for social and human services
449.10aide (SOC code 21-1093); and
449.11(ii) 85 percent of the subtotal of 20 percent of the median wage for home health aide
449.12(SOC code 31-1011); 20 percent of the median wage for personal and home health aide
449.13(SOC code 39-9021); 20 percent of the median wage for nursing aide (SOC code 31-1012);
449.1420 percent of the median wage for psychiatric technician (SOC code 29-2053); and 20
449.15percent of the median wage for social and human services aide (SOC code 21-1093);
449.16(2) for day services, 20 percent of the median wage for nursing aide (SOC code
449.1731-1012); 20 percent of the median wage for psychiatric technician (SOC code 29-2053);
449.18and 60 percent of the median wage for social and human services aide (SOC code 21-1093);
449.19(3) for residential asleep-overnight staff, the wage will be $7.66 per hour, except in
449.20a family foster care setting, the wage is $2.80 per hour;
449.21(4) for behavior program analyst staff, 100 percent of the median wage for mental
449.22health counselors (SOC code 21-1014);
449.23(5) for behavior program professional staff, 100 percent of the median wage for
449.24clinical counseling and school psychologist (SOC code 19-3031);
449.25(6) for behavior program specialist staff, 100 percent of the median wage for
449.26psychiatric technicians (SOC code 29-2053);
449.27(7) for supportive living services staff, 20 percent of the median wage for nursing
449.28aide (SOC code 31-1012); 20 percent of the median wage for psychiatric technician (SOC
449.29code 29-2053); and 60 percent of the median wage for social and human services aide
449.30(SOC code 21-1093);
449.31(8) for housing access coordination staff, 50 percent of the median wage for
449.32community and social services specialist (SOC code 21-1099); and 50 percent of the
449.33median wage for social and human services aide (SOC code 21-1093);
449.34(9) for in-home family support staff, 20 percent of the median wage for nursing
449.35aide (SOC code 31-1012); 30 percent of the median wage for community social service
449.36specialist (SOC code 21-1099); 40 percent of the median wage for social and human
450.1services aide (SOC code 21-1093); and ten percent of the median wage for psychiatric
450.2technician (SOC code 29-2053);
450.3(10) for independent living skills staff, 40 percent of the median wage for community
450.4social service specialist (SOC code 21-1099); 50 percent of the median wage for social
450.5and human services aide (SOC code 21-1093); and ten percent of the median wage for
450.6psychiatric technician (SOC code 29-2053);
450.7(11) for supported employment staff, 20 percent of the median wage for nursing aide
450.8(SOC code 31-1012); 20 percent of the median wage for psychiatric technician (SOC
450.9code 29-2053); and 60 percent of the median wage for social and human services aide
450.10(SOC code 21-1093);
450.11(12) for adult companion staff, 50 percent of the median wage for personal and home
450.12care aide (SOC code 39-9021); and 50 percent of the median wage for nursing aides,
450.13orderlies, and attendants (SOC code 31-1012);
450.14(13) for night supervision staff, 20 percent of the median wage for home health aide
450.15(SOC code 31-1011); 20 percent of the median wage for personal and home health aide
450.16(SOC code 39-9021); 20 percent of the median wage for nursing aide (SOC code 31-1012);
450.1720 percent of the median wage for psychiatric technician (SOC code 29-2053); and 20
450.18percent of the median wage for social and human services aide (SOC code 21-1093);
450.19(14) for respite staff, 50 percent of the median wage for personal and home care aide
450.20(SOC code 39-9021); and 50 percent of the median wage for nursing aides, orderlies, and
450.21attendants (SOC code 31-1012);
450.22(15) for personal support staff, 50 percent of the median wage for personal and home
450.23care aide (SOC code 39-9021); and 50 percent of the median wage for nursing aides,
450.24orderlies, and attendants (SOC code 31-1012);
450.25(16) for supervisory staff, the basic wage is $17.43 per hour with exception of the
450.26supervisor of behavior analyst and behavior specialists, which must be $30.75 per hour;
450.27(17) for registered nurse, the basic wage is $30.82 per hour; and
450.28(18) for licensed practical nurse, the basic wage is $18.64 per hour.
450.29(b) Component values for residential support services are:
450.30(1) supervisory span of control ratio: 11 percent;
450.31(2) employee vacation, sick, and training allowance ratio: 8.71 percent;
450.32(3) employee-related cost ratio: 23.6 percent;
450.33(4) general administrative support ratio: 13.25 percent;
450.34(5) program-related expense ratio: 1.3 percent; and
450.35(6) absence and utilization factor ratio: 3.9 percent.
450.36(c) Component values for family foster care are:
451.1(1) supervisory span of control ratio: 11 percent;
451.2(2) employee vacation, sick, and training allowance ratio: 8.71 percent;
451.3(3) employee-related cost ratio: 23.6 percent;
451.4(4) general administrative support ratio: 3.3 percent;
451.5(5) program-related expense ratio: 1.3 percent; and
451.6(6) absence factor: 1.7 percent.
451.7(d) Component values for day services for all services are:
451.8(1) supervisory span of control ratio: 11 percent;
451.9(2) employee vacation, sick, and training allowance ratio: 8.71 percent;
451.10(3) employee-related cost ratio: 23.6 percent;
451.11(4) program plan support ratio: 5.6 percent;
451.12(5) client programming and support ratio: ten percent;
451.13(6) general administrative support ratio: 13.25 percent;
451.14(7) program-related expense ratio: 1.8 percent; and
451.15(8) absence and utilization factor ratio: 3.9 percent.
451.16(e) Component values for unit-based services with programming are:
451.17(1) supervisory span of control ratio: 11 percent;
451.18(2) employee vacation, sick, and training allowance ratio: 8.71 percent;
451.19(3) employee-related cost ratio: 23.6 percent;
451.20(4) program plan supports ratio: 3.1 percent;
451.21(5) client programming and supports ratio: 8.6 percent;
451.22(6) general administrative support ratio: 13.25 percent;
451.23(7) program-related expense ratio: 6.1 percent; and
451.24(8) absence and utilization factor ratio: 3.9 percent.
451.25(f) Component values for unit-based services without programming except respite
451.26are:
451.27(1) supervisory span of control ratio: 11 percent;
451.28(2) employee vacation, sick, and training allowance ratio: 8.71 percent;
451.29(3) employee-related cost ratio: 23.6 percent;
451.30(4) program plan support ratio: 3.1 percent;
451.31(5) client programming and support ratio: 8.6 percent;
451.32(6) general administrative support ratio: 13.25 percent;
451.33(7) program-related expense ratio: 6.1 percent; and
451.34(8) absence and utilization factor ratio: 3.9 percent.
451.35(g) Component values for unit-based services without programming for respite are:
451.36(1) supervisory span of control ratio: 11 percent;
452.1(2) employee vacation, sick, and training allowance ratio: 8.71 percent;
452.2(3) employee-related cost ratio: 23.6 percent;
452.3(4) general administrative support ratio: 13.25 percent;
452.4(5) program-related expense ratio: 6.1 percent; and
452.5(6) absence and utilization factor ratio: 3.9 percent.
452.6(h) On July 1, 2017, the commissioner shall update the base wage index in paragraph
452.7(a) based on the wage data by standard occupational code (SOC) from the Bureau of
452.8Labor Statistics available on December 31, 2016. The commissioner shall publish these
452.9updated values and load them into the rate management system. This adjustment occurs
452.10every five years. For adjustments in 2021 and beyond, the commissioner shall use the data
452.11available on December 31 of the calendar year five years prior.
452.12(i) On July 1, 2017, the commissioner shall update the framework components in
452.13paragraphs (b) to (g); subdivision 6, clauses (8) and (9); and subdivision 7, clauses (16) and
452.14(17), for changes in the Consumer Price Index. The commissioner will adjust these values
452.15higher or lower by the percentage change in the Consumer Price Index-All Items, United
452.16States city average (CPI-U) from January 1, 2014, to January 1, 2017. The commissioner
452.17shall publish these updated values and load them into the rate management system. This
452.18adjustment occurs every five years. For adjustments in 2021 and beyond, the commissioner
452.19shall use the data available on January 1 of the calendar year four years prior and January
452.201 of the current calendar year. No later than January 15, 2017, the commissioner shall
452.21make recommendations for the incorporation of the cost of licensing fees as specified
452.22under section 245A.10, subdivision 4, paragraph (m), into the rate framework.

452.23    Sec. 10. Minnesota Statutes 2015 Supplement, section 256B.4914, subdivision 10,
452.24is amended to read:
452.25    Subd. 10. Updating payment values and additional information. (a) From
452.26January 1, 2014, through December 31, 2017, the commissioner shall develop and
452.27implement uniform procedures to refine terms and adjust values used to calculate payment
452.28rates in this section.
452.29(b) No later than July 1, 2014, the commissioner shall, within available resources,
452.30begin to conduct research and gather data and information from existing state systems or
452.31other outside sources on the following items:
452.32(1) differences in the underlying cost to provide services and care across the state; and
452.33(2) mileage, vehicle type, lift requirements, incidents of individual and shared rides,
452.34and units of transportation for all day services, which must be collected from providers
452.35using the rate management worksheet and entered into the rates management system; and
453.1(3) the distinct underlying costs for services provided by a license holder under
453.2sections 245D.05, 245D.06, 245D.07, 245D.071, 245D.081, and 245D.09, and for services
453.3provided by a license holder certified under section 245D.33.
453.4(c) Using a statistically valid set of rates management system data, the commissioner,
453.5in consultation with stakeholders, shall analyze for each service the average difference
453.6in the rate on December 31, 2013, and the framework rate at the individual, provider,
453.7lead agency, and state levels. The commissioner shall issue semiannual reports to the
453.8stakeholders on the difference in rates by service and by county lead agency during the
453.9banding period under section 256B.4913, subdivision 4a. The commissioner shall issue
453.10the first report by October 1, 2014.
453.11(d) No later than July 1, 2014, the commissioner, in consultation with stakeholders,
453.12shall begin the review and evaluation of the following values already in subdivisions 6 to
453.139, or issues that impact all services, including, but not limited to:
453.14(1) values for transportation rates for day services;
453.15(2) values for transportation rates in residential services;
453.16(3) values for services where monitoring technology replaces staff time;
453.17(4) values for indirect services;
453.18(5) values for nursing;
453.19(6) component values for independent living skills;
453.20(7) component values for family foster care that reflect licensing requirements;
453.21(8) adjustments to other components to replace the budget neutrality factor;
453.22(9) remote monitoring technology for nonresidential services;
453.23(10) values for basic and intensive services in residential services;
453.24(11) values for the facility use rate in day services, and the weightings used in the
453.25day service ratios and adjustments to those weightings;
453.26(12) values for workers' compensation as part of employee-related expenses;
453.27(13) values for unemployment insurance as part of employee-related expenses;
453.28(14) a component value to reflect costs for individuals with rates previously adjusted
453.29for the inclusion of group residential housing rate 3 costs, only for any individual enrolled
453.30as of December 31, 2013; and
453.31(15) any changes in state or federal law with an impact on the underlying cost of
453.32providing home and community-based services.
453.33(e) The commissioner shall report to the chairs and the ranking minority members of
453.34the legislative committees and divisions with jurisdiction over health and human services
453.35policy and finance with the information and data gathered under paragraphs (b) to (d)
453.36on the following dates:
454.1(1) January 15, 2015, with preliminary results and data;
454.2(2) January 15, 2016, with a status implementation update, and additional data
454.3and summary information;
454.4(3) January 15, 2017, with the full report; and
454.5(4) January 15, 2019, with another full report, and a full report once every four
454.6years thereafter.
454.7(f) Based on the commissioner's evaluation of the information and data collected in
454.8paragraphs (b) to (d), the commissioner shall make recommendations to the legislature by
454.9January 15, 2015, to address any issues identified during the first year of implementation.
454.10After January 15, 2015, the commissioner may make recommendations to the legislature
454.11to address potential issues.
454.12(g) The commissioner shall implement a regional adjustment factor to all rate
454.13calculations in subdivisions 6 to 9, effective no later than January 1, 2015. Prior to
454.14implementation, the commissioner shall consult with stakeholders on the methodology to
454.15calculate the adjustment.
454.16(h) The commissioner shall provide a public notice via LISTSERV in October of
454.17each year beginning October 1, 2014, containing information detailing legislatively
454.18approved changes in:
454.19(1) calculation values including derived wage rates and related employee and
454.20administrative factors;
454.21(2) service utilization;
454.22(3) county and tribal lead agency allocation changes; and
454.23(4) information on adjustments made to calculation values and the timing of those
454.24adjustments.
454.25The information in this notice must be effective January 1 of the following year.
454.26(i) No later than July 1, 2016, the commissioner shall develop and implement, in
454.27consultation with stakeholders, a methodology sufficient to determine the shared staffing
454.28levels necessary to meet, at a minimum, health and welfare needs of individuals who
454.29will be living together in shared residential settings, and the required shared staffing
454.30activities described in subdivision 2, paragraph (l). This determination methodology must
454.31ensure staffing levels are adaptable to meet the needs and desired outcomes for current and
454.32prospective residents in shared residential settings.
454.33(j) When the available shared staffing hours in a residential setting are insufficient to
454.34meet the needs of an individual who enrolled in residential services after January 1, 2014,
454.35or insufficient to meet the needs of an individual with a service agreement adjustment
455.1described in section 256B.4913, subdivision 4a, paragraph (f), then individual staffing
455.2hours shall be used.

455.3    Sec. 11. Minnesota Statutes 2014, section 256B.4914, subdivision 11, is amended to
455.4read:
455.5    Subd. 11. Payment implementation. Upon implementation of the payment
455.6methodologies under this section, those payment rates supersede rates established in
455.7county lead agency contracts for recipients receiving waiver services under section
455.8256B.092 or 256B.49.

455.9    Sec. 12. Minnesota Statutes 2015 Supplement, section 256B.4914, subdivision 14,
455.10is amended to read:
455.11    Subd. 14. Exceptions. (a) In a format prescribed by the commissioner, lead
455.12agencies must identify individuals with exceptional needs that cannot be met under the
455.13disability waiver rate system. The commissioner shall use that information to evaluate
455.14and, if necessary, approve an alternative payment rate for those individuals. Whether
455.15granted, denied, or modified, the commissioner shall respond to all exception requests in
455.16writing. The commissioner shall include in the written response the basis for the action
455.17and provide notification of the right to appeal under paragraph (h).
455.18(b) Lead agencies must act on an exception request within 30 days and notify the
455.19initiator of the request of their recommendation in writing. A lead agency shall submit all
455.20exception requests along with its recommendation to the commissioner.
455.21(c) An application for a rate exception may be submitted for the following criteria:
455.22(1) an individual has service needs that cannot be met through additional units
455.23of service;
455.24(2) an individual's rate determined under subdivisions 6, 7, 8, and 9 is so insufficient
455.25that it has resulted in an individual receiving a notice of discharge from the individual's
455.26provider; or
455.27(3) an individual's service needs, including behavioral changes, require a level of
455.28service which necessitates a change in provider or which requires the current provider to
455.29propose service changes beyond those currently authorized.; or
455.30(4) an individual's service needs cannot be met through a weighted county average
455.31rate as defined in section 256B.4913, subdivision 4a.
455.32(d) Exception requests must include the following information:
455.33(1) the service needs required by each individual that are not accounted for in
455.34subdivisions 6, 7, 8, and 9;
456.1(2) the service rate requested and the difference from the rate determined in
456.2subdivisions 6, 7, 8, and 9;
456.3(3) a basis for the underlying costs used for the rate exception and any accompanying
456.4documentation; and
456.5(4) any contingencies for approval.
456.6(e) Approved rate exceptions shall be managed within lead agency allocations under
456.7sections 256B.092 and 256B.49.
456.8(f) Individual disability waiver recipients, an interested party, or the license holder
456.9that would receive the rate exception increase may request that a lead agency submit an
456.10exception request. A lead agency that denies such a request shall notify the individual
456.11waiver recipient, interested party, or license holder of its decision and the reasons for
456.12denying the request in writing no later than 30 days after the request has been made and
456.13shall submit its denial to the commissioner in accordance with paragraph (b). The reasons
456.14for the denial must be based on the failure to meet the criteria in paragraph (c).
456.15(g) The commissioner shall determine whether to approve or deny an exception
456.16request no more than 30 days after receiving the request. If the commissioner denies the
456.17request, the commissioner shall notify the lead agency and the individual disability waiver
456.18recipient, the interested party, and the license holder in writing of the reasons for the denial.
456.19(h) The individual disability waiver recipient may appeal any denial of an exception
456.20request by either the lead agency or the commissioner, pursuant to sections 256.045 and
456.21256.0451 . When the denial of an exception request results in the proposed demission of a
456.22waiver recipient from a residential or day habilitation program, the commissioner shall
456.23issue a temporary stay of demission, when requested by the disability waiver recipient,
456.24consistent with the provisions of section 256.045, subdivisions 4a and 6, paragraph (c).
456.25The temporary stay shall remain in effect until the lead agency can provide an informed
456.26choice of appropriate, alternative services to the disability waiver.
456.27(i) Providers may petition lead agencies to update values that were entered
456.28incorrectly or erroneously into the rate management system, based on past service level
456.29discussions and determination in subdivision 4, without applying for a rate exception.
456.30(j) The starting date for the rate exception will be the later of the date of the
456.31recipient's change in support or the date of the request to the lead agency for an exception.
456.32(k) The commissioner shall track all exception requests received and their
456.33dispositions. The commissioner shall issue quarterly public exceptions statistical reports,
456.34including the number of exception requests received and the numbers granted, denied,
456.35withdrawn, and pending. The report shall include the average amount of time required to
456.36process exceptions.
457.1(l) No later than January 15, 2016, the commissioner shall provide research
457.2findings on the estimated fiscal impact, the primary cost drivers, and common population
457.3characteristics of recipients with needs that cannot be met by the framework rates.
457.4(m) No later than July 1, 2016, the commissioner shall develop and implement,
457.5in consultation with stakeholders, a process to determine eligibility for rate exceptions
457.6for individuals with rates determined under the methodology in section 256B.4913,
457.7subdivision 4a. Determination of eligibility for an exception will occur as annual service
457.8renewals are completed.
457.9(n) Approved rate exceptions will be implemented at such time that the individual's
457.10rate is no longer banded and remain in effect in all cases until an individual's needs change
457.11as defined in paragraph (c).

457.12    Sec. 13. Minnesota Statutes 2015 Supplement, section 256B.4914, subdivision 15,
457.13is amended to read:
457.14    Subd. 15. County or tribal Lead agency allocations. (a) Upon implementation of
457.15the disability waiver rates management system on January 1, 2014, the commissioner shall
457.16establish a method of tracking and reporting the fiscal impact of the disability waiver rates
457.17management system on individual lead agencies.
457.18(b) Beginning January 1, 2014, the commissioner shall make annual adjustments to
457.19lead agencies' home and community-based waivered service budget allocations to adjust
457.20for rate differences and the resulting impact on county lead agency allocations upon
457.21implementation of the disability waiver rates system.
457.22(c) Lead agencies exceeding their allocations shall be subject to the provisions under
457.23sections 256B.0916, subdivision 11, and 256B.49, subdivision 26.

457.24    Sec. 14. PROVIDER RATE AND GRANT INCREASES EFFECTIVE JULY
457.251, 2016.
457.26(a) The commissioner of human services shall increase reimbursement rates, grants,
457.27allocations, individual limits, and rate limits, as applicable, by 2.72 percent for the rate
457.28period beginning July 1, 2016, for services rendered on or after that date. County or tribal
457.29contracts for services specified in this section must be amended to pass through with these
457.30rate increases within 60 days of the effective date.
457.31(b) The rate changes described in this section must be provided to:
457.32(1) the following services within the home and community-based waiver for persons
457.33with developmental disabilities under Minnesota Statutes, section 256B.092: extended
457.34personal care, personal support, chore, respite care services except for crisis respite
458.1services, homemaker cleaning services, and consumer-directed community supports
458.2budgets;
458.3(2) the following services within the community access for disability inclusion
458.4waiver under Minnesota Statutes, section 256B.49: extended personal care, chore, respite
458.5care services, homemaker cleaning services, and consumer-directed community supports
458.6budgets;
458.7(3) the following services within the community alternative care waiver under
458.8Minnesota Statutes, section 256B.49: extended personal care, chore, respite care services,
458.9homemaker cleaning services, and consumer-directed community supports budgets;
458.10(4) the following services within the brain injury waiver under Minnesota Statutes,
458.11section 256B.49: extended personal care, chore, respite care services, homemaker
458.12cleaning services, and consumer-directed community supports budgets;
458.13(5) the following services within the elderly waiver under Minnesota Statutes,
458.14section 256B.0915: extended personal care, companion, chore, respite care services,
458.15homemaker cleaning services, and consumer-directed community supports budgets;
458.16(6) the following services within the alternative care program under Minnesota
458.17Statutes, section 256B.0913: personal care, companion, chore, respite care services,
458.18homemaker cleaning services, and consumer-directed community supports budgets;
458.19(7) personal care services and qualified professional supervision of personal care
458.20services under Minnesota Statutes, section 256B.0625, subdivision 6a or 19a; and
458.21(8) consumer support grants under Minnesota Statutes, section 256.476.
458.22(c) A managed care plan or county-based purchasing plan receiving state payments
458.23for the services in paragraph (b) must include the increases in paragraph (a) in payments
458.24to providers. To implement the rate increase in this section, capitation rates paid by the
458.25commissioner to managed care organizations under Minnesota Statutes, section 256B.69,
458.26shall reflect a 2.72 percent increase for the specified services provided on or after July
458.271, 2016.
458.28(d) Counties and tribes shall increase the budget for each recipient of
458.29consumer-directed community supports by the amounts in paragraph (a) on the effective
458.30dates in paragraph (a).
458.31(e) To implement the provisions of this section, the commissioner shall increase
458.32applicable service rates in the disability waiver payment system authorized in Minnesota
458.33Statutes, sections 256B.4913 and 256B.4914.
458.34(f) A provider that receives a rate adjustment under paragraph (a) shall use 90
458.35percent of the additional revenue to increase compensation-related costs for employees
458.36directly employed by the program on or after July 1, 2016, except:
459.1(1) persons employed in the central office of a corporation or entity that has an
459.2ownership interest in the provider or exercises control over the provider; and
459.3(2) persons paid by the provider under a management contract.
459.4(g) Compensation-related costs include:
459.5(1) wages and salaries, including overtime and travel time;
459.6(2) the employer's share of FICA taxes, Medicare taxes, state and federal
459.7unemployment taxes, workers' compensation, and mileage reimbursement;
459.8(3) the employer's share of health and dental insurance, life insurance, disability
459.9insurance, long-term care insurance, uniform allowance, pensions, and contributions to
459.10employee retirement accounts; and
459.11(4) other employee benefits provided, such as training of employees, as specified in
459.12the distribution plan and required under paragraph (i) and approved by the commissioner.
459.13(h) Nothing in this subdivision prevents a provider as an employer from allocating the
459.14increase in revenues across the eligible compensation-related costs listed in paragraph (g).
459.15(i) For a provider that has employees who are represented by an exclusive bargaining
459.16representative, the provider shall obtain a letter of acceptance of the distribution plan
459.17required under paragraph (j) for the members of the bargaining unit, signed by the
459.18exclusive bargaining agent. Upon receipt of the letter of acceptance, the provider shall be
459.19deemed to have met all the requirements of this section for the members of the bargaining
459.20unit. Upon request, the provider shall produce a letter of acceptance for the commissioner.
459.21(j) A provider that receives a rate adjustment under paragraph (a) that is subject to
459.22paragraph (f) shall prepare and, upon request, submit to the commissioner a distribution
459.23plan that specifies the amount of money that is subject to the requirements of paragraph (f)
459.24the provider expects to receive, including the amount of money that will be distributed
459.25to increase compensation for employees. The distribution plan must also include the
459.26provider's policy for scheduling overtime. The provider's policy must not limit the
459.27scheduling of overtime hours where an individual's service needs are unmet without a
459.28worker exceeding 40 hours per week of work, consistent with the monthly work-hour limit
459.29under Minnesota Statutes, section 256B.0659, subdivision 11, paragraph (a), clause (10),
459.30and the service recipient's authorized hours. The provider's overtime scheduling policy
459.31must provide for a process that reliably and expeditiously provides services to recipients.
459.32(k) Within six months of the effective date of the rate adjustment, the provider shall
459.33post the distribution plan required under paragraph (j) for a period of at least six weeks in
459.34an area of the provider's operation to which all eligible employees have access and shall
459.35provide instructions for employees who do not believe they received the wage and other
459.36compensation-related increases specified in the distribution plan. The instructions must
460.1include a mailing address, e-mail address, and telephone number that the employees may
460.2use to contact the commissioner or the commissioner's representative.
460.3EFFECTIVE DATE.This section is effective July 1, 2016.

460.4    Sec. 15. INSTRUCTION TO THE COMMISSIONER.
460.5The commissioner shall amend the medical assistance state plan for the EIDBI
460.6benefit, authorized under Minnesota Statutes, section 256B.0949, to reference relevant
460.7statutory sections. When duplicative of statutory language, the commissioner shall remove
460.8the language from the state plan.

460.9    Sec. 16. REVISOR'S INSTRUCTION.
460.10The revisor of statutes shall codify Laws 2015, chapter 71, article 7, section 55, as
460.11Minnesota Statutes, section 256B.0921.

460.12ARTICLE 25

460.13HEALTH CARE

460.14    Section 1. Minnesota Statutes 2015 Supplement, section 16A.724, subdivision 2,
460.15is amended to read:
460.16    Subd. 2. Transfers. (a) Notwithstanding section 295.581, to the extent available
460.17resources in the health care access fund exceed expenditures in that fund, effective for
460.18the biennium beginning July 1, 2007, the commissioner of management and budget
460.19shall transfer the excess funds from the health care access fund to the general fund on
460.20June 30 of each year, provided that the amount transferred in fiscal year 2016 shall not
460.21exceed $48,000,000, the amount in fiscal year 2017 shall not exceed $122,000,000, and
460.22the amount in any fiscal biennium thereafter shall not exceed $96,000,000 $244,000,000.
460.23The purpose of this transfer is to meet the rate increase required under Laws 2003, First
460.24Special Session chapter 14, article 13C, section 2, subdivision 6.
460.25    (b) For fiscal years 2006 to 2011, MinnesotaCare shall be a forecasted program, and,
460.26if necessary, the commissioner shall reduce these transfers from the health care access
460.27fund to the general fund to meet annual MinnesotaCare expenditures or, if necessary,
460.28transfer sufficient funds from the general fund to the health care access fund to meet
460.29annual MinnesotaCare expenditures.

460.30    Sec. 2. Minnesota Statutes 2014, section 62J.497, subdivision 1, is amended to read:
461.1    Subdivision 1. Definitions. For the purposes of this section, the following terms
461.2have the meanings given.
461.3(a) "Backward compatible" means that the newer version of a data transmission
461.4standard would retain, at a minimum, the full functionality of the versions previously
461.5adopted, and would permit the successful completion of the applicable transactions with
461.6entities that continue to use the older versions.
461.7    (b) "Dispense" or "dispensing" has the meaning given in section 151.01, subdivision
461.830 . Dispensing does not include the direct administering of a controlled substance to a
461.9patient by a licensed health care professional.
461.10    (c) "Dispenser" means a person authorized by law to dispense a controlled substance,
461.11pursuant to a valid prescription.
461.12    (d) "Electronic media" has the meaning given under Code of Federal Regulations,
461.13title 45, part 160.103.
461.14    (e) "E-prescribing" means the transmission using electronic media of prescription
461.15or prescription-related information between a prescriber, dispenser, pharmacy benefit
461.16manager, or group purchaser, either directly or through an intermediary, including
461.17an e-prescribing network. E-prescribing includes, but is not limited to, two-way
461.18transmissions between the point of care and the dispenser and two-way transmissions
461.19related to eligibility, formulary, and medication history information.
461.20    (f) "Electronic prescription drug program" means a program that provides for
461.21e-prescribing.
461.22    (g) "Group purchaser" has the meaning given in section 62J.03, subdivision 6.
461.23    (h) "HL7 messages" means a standard approved by the standards development
461.24organization known as Health Level Seven.
461.25    (i) "National Provider Identifier" or "NPI" means the identifier described under Code
461.26of Federal Regulations, title 45, part 162.406.
461.27    (j) "NCPDP" means the National Council for Prescription Drug Programs, Inc.
461.28    (k) "NCPDP Formulary and Benefits Standard" means the National Council for
461.29Prescription Drug Programs Formulary and Benefits Standard, Implementation Guide,
461.30Version 1, Release 0, October 2005.
461.31    (l) "NCPDP SCRIPT Standard" means the National Council for Prescription Drug
461.32Programs Prescriber/Pharmacist Interface SCRIPT Standard, Implementation Guide
461.33Version 8, Release 1 (Version 8.1), October 2005, or the most recent standard adopted by
461.34the Centers for Medicare and Medicaid Services for e-prescribing under Medicare Part
461.35D as required by section 1860D-4(e)(4)(D) of the Social Security Act, and regulations
461.36adopted under it. The standards shall be implemented according to the Centers for
462.1Medicare and Medicaid Services schedule for compliance. Subsequently released
462.2versions of the NCPDP SCRIPT Standard may be used, provided that the new version
462.3of the standard is backward compatible to the current version adopted by the Centers for
462.4Medicare and Medicaid Services.
462.5    (m) "Pharmacy" has the meaning given in section 151.01, subdivision 2.
462.6    (n) "Prescriber" means a licensed health care practitioner, other than a veterinarian,
462.7as defined in section 151.01, subdivision 23.
462.8    (o) "Prescription-related information" means information regarding eligibility for
462.9drug benefits, medication history, or related health or drug information.
462.10    (p) "Provider" or "health care provider" has the meaning given in section 62J.03,
462.11subdivision 8.
462.12(q) "Utilization review organization" has the meaning given in section 62M.02,
462.13subdivision 21.

462.14    Sec. 3. Minnesota Statutes 2014, section 62J.497, subdivision 3, is amended to read:
462.15    Subd. 3. Standards for electronic prescribing. (a) Prescribers and dispensers
462.16must use the NCPDP SCRIPT Standard for the communication of a prescription or
462.17prescription-related information. The NCPDP SCRIPT Standard shall be used to conduct
462.18the following transactions:
462.19    (1) get message transaction;
462.20    (2) status response transaction;
462.21    (3) error response transaction;
462.22    (4) new prescription transaction;
462.23    (5) prescription change request transaction;
462.24    (6) prescription change response transaction;
462.25    (7) refill prescription request transaction;
462.26    (8) refill prescription response transaction;
462.27    (9) verification transaction;
462.28    (10) password change transaction;
462.29    (11) cancel prescription request transaction; and
462.30    (12) cancel prescription response transaction.
462.31    (b) Providers, group purchasers, prescribers, and dispensers must use the NCPDP
462.32SCRIPT Standard for communicating and transmitting medication history information.
462.33    (c) Providers, group purchasers, prescribers, and dispensers must use the NCPDP
462.34Formulary and Benefits Standard for communicating and transmitting formulary and
462.35benefit information.
463.1(d) Group purchaser, other than workers' compensation plans and the medical
463.2component of automobile insurance coverage, and utilization review organizations must
463.3develop processes to ensure that prescribers can obtain information about covered drugs
463.4from the same class or classes as a drug originally prescribed but denied. This process
463.5must allow communication to the prescriber via telephone, or for the medical assistance
463.6fee-for-service program under chapter 256B via a public Web site.
463.7    (d) (e) Providers, group purchasers, prescribers, and dispensers must use the national
463.8provider identifier to identify a health care provider in e-prescribing or prescription-related
463.9transactions when a health care provider's identifier is required.
463.10    (e) (f) Providers, group purchasers, prescribers, and dispensers must communicate
463.11eligibility information and conduct health care eligibility benefit inquiry and response
463.12transactions according to the requirements of section 62J.536.

463.13    Sec. 4. Minnesota Statutes 2014, section 62M.02, is amended by adding a subdivision
463.14to read:
463.15    Subd. 10a. Drug. "Drug" has the meaning given in section 151.01, subdivision 5.

463.16    Sec. 5. Minnesota Statutes 2014, section 62M.02, is amended by adding a subdivision
463.17to read:
463.18    Subd. 11a. Formulary. "Formulary" has the meaning given in section 62Q.83,
463.19subdivision 1.

463.20    Sec. 6. Minnesota Statutes 2014, section 62M.02, subdivision 12, is amended to read:
463.21    Subd. 12. Health benefit plan. "Health benefit plan" means a policy, contract, or
463.22certificate issued by a health plan company for the coverage of medical, dental, prescription
463.23drug, or hospital benefits. A health benefit plan does not include coverage that is:
463.24(1) limited to disability or income protection coverage;
463.25(2) automobile medical payment coverage;
463.26(3) supplemental to liability insurance;
463.27(4) designed solely to provide payments on a per diem, fixed indemnity, or
463.28nonexpense incurred basis;
463.29(5) credit accident and health insurance issued under chapter 62B;
463.30(6) blanket accident and sickness insurance as defined in section 62A.11;
463.31(7) accident only coverage issued by a licensed and tested insurance agent; or
463.32(8) workers' compensation.

464.1    Sec. 7. Minnesota Statutes 2014, section 62M.02, subdivision 14, is amended to read:
464.2    Subd. 14. Outpatient services. "Outpatient services" means procedures or services
464.3performed on a basis other than as an inpatient, and includes obstetrical, psychiatric,
464.4chemical dependency, dental, prescription drug, and chiropractic services.

464.5    Sec. 8. Minnesota Statutes 2014, section 62M.02, is amended by adding a subdivision
464.6to read:
464.7    Subd. 14a. Prescription. "Prescription" has the meaning given in section 151.01,
464.8subdivision 16a.

464.9    Sec. 9. Minnesota Statutes 2014, section 62M.02, is amended by adding a subdivision
464.10to read:
464.11    Subd. 14b. Prescription drug order. "Prescription drug order" has the meaning
464.12given in section 151.01, subdivision 16.

464.13    Sec. 10. Minnesota Statutes 2014, section 62M.02, subdivision 15, is amended to read:
464.14    Subd. 15. Prior authorization. "Prior authorization" means utilization review
464.15conducted prior to the delivery of a service, including an outpatient service. Prior
464.16authorization includes, but is not limited to, preadmission review, pretreatment review,
464.17quantity limits, step therapy, utilization, and case management. Prior authorization also
464.18includes any utilization review organization's requirement that an enrollee or provider
464.19notify the utilization review organization prior to providing a service, including an
464.20outpatient service. Reviews performed for emergency medical assistance benefits, medical
464.21assistance waivered services, or the Minnesota restricted recipient program are not prior
464.22authorization.

464.23    Sec. 11. Minnesota Statutes 2014, section 62M.02, subdivision 17, is amended to read:
464.24    Subd. 17. Provider. "Provider" means a licensed health care facility, physician,
464.25pharmacist, or other health care professional that delivers health care services to an enrollee.

464.26    Sec. 12. Minnesota Statutes 2014, section 62M.02, is amended by adding a subdivision
464.27to read:
464.28    Subd. 18a. Quantity limit. "Quantity limit" means a limit on the number of doses
464.29of a prescription drug that are covered during a specific time period.

465.1    Sec. 13. Minnesota Statutes 2014, section 62M.02, is amended by adding a subdivision
465.2to read:
465.3    Subd. 19a. Step therapy. "Step therapy" means clinical practice or other
465.4evidence-based protocols or requirements that specify the sequence in which different
465.5prescription drugs for a given medical condition are to be used by an enrollee before a
465.6drug prescribed by a provider is covered. Step therapy does not include a requirement
465.7for an enrollee to use a generic or biosimilar product considered by the Food and Drug
465.8Administration to be therapeutically equivalent and interchangeable to a branded product,
465.9provided the generic or biosimilar product has not previously been tried by the patient.

465.10    Sec. 14. Minnesota Statutes 2014, section 62M.05, subdivision 3a, is amended to read:
465.11    Subd. 3a. Standard review determination. (a) Notwithstanding subdivision 3b, an
465.12initial determination on all requests for utilization review, except a determination related
465.13to prescription drugs, must be communicated to the provider and enrollee in accordance
465.14with this subdivision within ten business days of the request, provided that all information
465.15reasonably necessary to make a determination on the request has been made available to
465.16the utilization review organization.
465.17(b) An initial determination for utilization review on all prescription drug requests
465.18must be communicated to the provider and enrollee in accordance with this subdivision
465.19within five business days of the request, provided that all information reasonably necessary
465.20to make a determination on the request has been made available to the utilization review
465.21organization.
465.22(b) (c) When an initial determination is made to certify, notification must be
465.23provided promptly by telephone to the provider. The utilization review organization
465.24shall send written notification to the provider or shall maintain an audit trail of the
465.25determination and telephone notification. For purposes of this subdivision, "audit trail"
465.26includes documentation of the telephone notification, including the date; the name of the
465.27person spoken to; the enrollee; the service, procedure, or admission certified; and the date
465.28of the service, procedure, or admission. If the utilization review organization indicates
465.29certification by use of a number, the number must be called the "certification number."
465.30For purposes of this subdivision, notification may also be made by facsimile to a verified
465.31number or by electronic mail to a secure electronic mailbox. These electronic forms of
465.32notification satisfy the "audit trail" requirement of this paragraph.
465.33(c) (d) When an initial determination is made not to certify, notification must be
465.34provided by telephone, by facsimile to a verified number, or by electronic mail to a secure
465.35electronic mailbox within one working day after making the determination to the attending
466.1health care professional and hospital as applicable. Written notification must also be sent
466.2to the hospital as applicable and attending health care professional if notification occurred
466.3by telephone. For purposes of this subdivision, notification may be made by facsimile to a
466.4verified number or by electronic mail to a secure electronic mailbox. Written notification
466.5must be sent to the enrollee and may be sent by United States mail, facsimile to a verified
466.6number, or by electronic mail to a secure mailbox. The written notification must include
466.7the principal reason or reasons for the determination and the process for initiating an appeal
466.8of the determination. Upon request, the utilization review organization shall provide the
466.9provider or enrollee with the criteria used to determine the necessity, appropriateness,
466.10and efficacy of the health care service and identify the database, professional treatment
466.11parameter, or other basis for the criteria. Reasons for a determination not to certify may
466.12include, among other things, the lack of adequate information to certify after a reasonable
466.13attempt has been made to contact the provider or enrollee.
466.14(d) (e) When an initial determination is made not to certify, the written notification
466.15must inform the enrollee and the attending health care professional of the right to submit
466.16an appeal to the internal appeal process described in section 62M.06 and the procedure
466.17for initiating the internal appeal. The written notice shall be provided in a culturally and
466.18linguistically appropriate manner consistent with the provisions of the Affordable Care
466.19Act as defined under section 62A.011, subdivision 1a.

466.20    Sec. 15. Minnesota Statutes 2014, section 62M.05, subdivision 3b, is amended to read:
466.21    Subd. 3b. Expedited review determination. (a) An expedited initial determination
466.22must be utilized if the attending health care professional believes that an expedited
466.23determination is warranted.
466.24(b) Notification of an expedited initial determination to either certify or not to
466.25certify, except a determination related to prescription drugs, must be provided to the
466.26hospital, the attending health care professional, and the enrollee as expeditiously as the
466.27enrollee's medical condition requires, but no later than 72 hours from the initial request.
466.28When an expedited initial determination is made not to certify, the utilization review
466.29organization must also notify the enrollee and the attending health care professional of the
466.30right to submit an appeal to the expedited internal appeal as described in section 62M.06
466.31and the procedure for initiating an internal expedited appeal.
466.32(c) Notification of an expedited initial determination to either certify or not to
466.33certify on all prescription drug requests must be provided to the hospital, the attending
466.34health care professional, and the enrollee as expeditiously as the enrollee's medical
466.35condition requires, but no later than 36 hours from the initial request, provided that all the
467.1information reasonably necessary to make a determination has been made available to the
467.2utilization review organization. For state public health care programs administered under
467.3section 256B.69 and chapter 256L, notification must be provided to the hospital, attending
467.4health care provider, or the enrollee as expeditiously as the enrollee's condition requires,
467.5but no later than 36 hours from the initial request, provided that all the information
467.6reasonably necessary to make a determination has been made available to the utilization
467.7review organization. When an expedited initial determination is made not to certify, the
467.8utilization review organization must also notify the enrollee and the attending health care
467.9professional of the right to submit an appeal to the expedited internal appeal as described
467.10in section 62M.06, and the procedure for initiating an internal expedited appeal.

467.11    Sec. 16. Minnesota Statutes 2014, section 62M.06, subdivision 2, is amended to read:
467.12    Subd. 2. Expedited appeal. (a) When an initial determination not to certify a
467.13health care service is made prior to or during an ongoing service requiring review
467.14and the attending health care professional believes that the determination warrants an
467.15expedited appeal, the utilization review organization must ensure that the enrollee and the
467.16attending health care professional have an opportunity to appeal the determination over
467.17the telephone on an expedited basis. In such an appeal, the utilization review organization
467.18must ensure reasonable access to its consulting physician or health care provider.
467.19(b) The utilization review organization shall notify the enrollee and attending
467.20health care professional by telephone of its determination, except for determinations
467.21related to prescription drugs, on the expedited appeal as expeditiously as the enrollee's
467.22medical condition requires, but no later than 72 hours after receiving the expedited appeal.
467.23The utilization review organization shall notify the enrollee and attending health care
467.24professional by telephone of its determination on the expedited appeal of a prescription
467.25drug request as expeditiously as the enrollee's medical condition requires, but no later than
467.2636 hours after receiving the expedited appeal.
467.27(c) If the determination not to certify is not reversed through the expedited appeal,
467.28the utilization review organization must include in its notification the right to submit the
467.29appeal to the external appeal process described in section 62Q.73 and the procedure for
467.30initiating the process. This information must be provided in writing to the enrollee and
467.31the attending health care professional as soon as practical.

467.32    Sec. 17. Minnesota Statutes 2014, section 62M.06, subdivision 3, is amended to read:
467.33    Subd. 3. Standard appeal. The utilization review organization must establish
467.34procedures for appeals to be made either in writing or by telephone.
468.1(a) A utilization review organization shall notify in writing the enrollee, attending
468.2health care professional, and claims administrator of its determination on the appeal,
468.3except for determinations related to prescription drugs, within 30 days upon receipt of the
468.4notice of appeal. If the utilization review organization cannot make a determination within
468.530 days due to circumstances outside the control of the utilization review organization, the
468.6utilization review organization may take up to 14 additional days to notify the enrollee,
468.7attending health care professional, and claims administrator of its determination. If the
468.8utilization review organization takes any additional days beyond the initial 30-day period
468.9to make its determination, it must inform the enrollee, attending health care professional,
468.10and claims administrator, in advance, of the extension and the reasons for the extension.
468.11(b) A utilization review organization shall notify in writing the enrollee, attending
468.12health care professional, and claims administrator of its determination on the appeal on a
468.13prescription drug within 15 days upon receipt of the notice of appeal. If the utilization
468.14review organization cannot make a determination on a prescription drug within 15 days
468.15due to circumstances outside the control of the utilization review organization, the
468.16utilization review organization may take up to ten additional days to notify the enrollee,
468.17attending health care professional, and claims administrator of its determination. If the
468.18utilization review organization takes any additional days beyond the initial 15-day period
468.19to make its determination, it must inform the enrollee, attending health care professional,
468.20and claims administrator, in advance, of the extension and the reasons for the extension.
468.21(b) (c) The documentation required by the utilization review organization may
468.22include copies of part or all of the medical record and a written statement from the
468.23attending health care professional.
468.24(c) (d) Prior to upholding the initial determination not to certify for clinical reasons,
468.25the utilization review organization shall conduct a review of the documentation by a
468.26physician who did not make the initial determination not to certify.
468.27(d) (e) The process established by a utilization review organization may include
468.28defining a period within which an appeal must be filed to be considered. The time period
468.29must be communicated to the enrollee and attending health care professional when the
468.30initial determination is made.
468.31(e) (f) An attending health care professional or enrollee who has been unsuccessful
468.32in an attempt to reverse a determination not to certify shall, consistent with section
468.3372A.285 , be provided the following:
468.34(1) a complete summary of the review findings;
468.35(2) qualifications of the reviewers, including any license, certification, or specialty
468.36designation; and
469.1(3) the relationship between the enrollee's diagnosis and the review criteria used as
469.2the basis for the decision, including the specific rationale for the reviewer's decision.
469.3(f) (g) In cases of appeal to reverse a determination not to certify for clinical reasons,
469.4the utilization review organization must ensure that a physician of the utilization review
469.5organization's choice in the same or a similar specialty as typically manages the medical
469.6condition, procedure, or treatment under discussion is reasonably available to review
469.7the case.
469.8(g) (h) If the initial determination is not reversed on appeal, the utilization review
469.9organization must include in its notification the right to submit the appeal to the external
469.10review process described in section 62Q.73 and the procedure for initiating the external
469.11process.

469.12    Sec. 18. Minnesota Statutes 2014, section 62M.07, is amended to read:
469.1362M.07 PRIOR AUTHORIZATION OF SERVICES.
469.14(a) Utilization review organizations conducting prior authorization of services must
469.15have written standards that meet at a minimum the following requirements:
469.16(1) written procedures and criteria used to determine whether care is appropriate,
469.17reasonable, or medically necessary;
469.18(2) a system for providing prompt notification of its determinations to enrollees
469.19and providers and for notifying the provider, enrollee, or enrollee's designee of appeal
469.20procedures under clause (4);
469.21(3) compliance with section 62M.05, subdivisions 3a and 3b, regarding time frames
469.22for approving and disapproving prior authorization requests;
469.23(4) written procedures for appeals of denials of prior authorization which specify the
469.24responsibilities of the enrollee and provider, and which meet the requirements of sections
469.2562M.06 and 72A.285, regarding release of summary review findings; and
469.26(5) procedures to ensure confidentiality of patient-specific information, consistent
469.27with applicable law.
469.28(b) No utilization review organization, health plan company, or claims administrator
469.29may conduct or require prior authorization of emergency confinement or emergency
469.30treatment. The enrollee or the enrollee's authorized representative may be required to
469.31notify the health plan company, claims administrator, or utilization review organization
469.32as soon after the beginning of the emergency confinement or emergency treatment as
469.33reasonably possible.
469.34(c) If prior authorization for a health care service is required, the utilization review
469.35organization, health plan company, or claim administrator must allow providers to submit
470.1requests for prior authorization of the health care services without unreasonable delay
470.2by telephone, facsimile, or voice mail or through an electronic mechanism 24 hours a
470.3day, seven days a week. This paragraph does not apply to dental service covered under
470.4MinnesotaCare, general assistance medical care, or medical assistance.
470.5(d) Any authorization for a prescription drug must remain valid for the duration of
470.6an enrollee's contract term, or for the benefits offered under section 256B.69 or chapter
470.7256L, for the duration of the enrollee's enrollment or one year, whichever is shorter,
470.8provided: the drug continues to be prescribed for a patient with a condition that requires
470.9ongoing medication therapy; the drug has not otherwise been deemed unsafe by the Food
470.10and Drug Administration; the drug has not been withdrawn by the manufacturer or the
470.11Food and Drug Administration; there is no evidence of the enrollee's abuse or misuse
470.12of the prescription drug; or no independent source of research, clinical guidelines, or
470.13evidence-based standards has issued drug-specific warnings or recommended changes
470.14in drug usage. This paragraph does not apply to individuals assigned to the restricted
470.15recipient program under Minnesota Rules, parts 9505.2160 to 9505.2245.
470.16(e) No utilization review organization, health plan company, or claims administrator
470.17may impose step therapy requirements for the following drug classes:
470.18(1) immunosuppressants;
470.19(2) antidepressants;
470.20(3) antipsychotics;
470.21(4) anticonvulsants;
470.22(5) antiretrovirals; or
470.23(6) antineoplastics.
470.24(f) No utilization review organization, health plan company, or claims administrator
470.25may impose step therapy requirements for enrollees currently taking a prescription drug
470.26for which the patient satisfied a previous step therapy requirement, as substantiated from
470.27available claims data or provider documentation. This provision does not apply to a
470.28patient who has initiated treatment for a condition with samples provided by a prescriber
470.29and provided that any step therapy requirements subsequently applied are consistent
470.30with evidence-based prescribing practices.

470.31    Sec. 19. Minnesota Statutes 2014, section 62M.09, subdivision 3, is amended to read:
470.32    Subd. 3. Physician reviewer involvement. (a) A physician must review all cases
470.33in which the utilization review organization has concluded that a determination not to
470.34certify for clinical reasons is appropriate.
471.1(b) The physician conducting the review must be licensed in this state. This
471.2paragraph does not apply to reviews conducted in connection with policies issued by a
471.3health plan company that is assessed less than three percent of the total amount assessed
471.4by the Minnesota Comprehensive Health Association.
471.5(c) The physician should be reasonably available by telephone to discuss the
471.6determination with the attending health care professional.
471.7(d) This subdivision does not apply to outpatient mental health or substance abuse
471.8services governed by subdivision 3a.

471.9    Sec. 20. Minnesota Statutes 2014, section 62M.11, is amended to read:
471.1062M.11 COMPLAINTS TO COMMERCE OR HEALTH.
471.11Notwithstanding the provisions of sections 62M.01 to 62M.16, an enrollee or
471.12provider may file a complaint regarding compliance with the requirements of this chapter
471.13or regarding a determination not to certify directly to the commissioner responsible for
471.14regulating the utilization review organization.

471.15    Sec. 21. Minnesota Statutes 2014, section 62Q.81, subdivision 4, is amended to read:
471.16    Subd. 4. Essential health benefits; definition. For purposes of this section,
471.17"essential health benefits" has the meaning given under section 1302(b) of the Affordable
471.18Care Act and includes:
471.19    (1) ambulatory patient services;
471.20    (2) emergency services;
471.21    (3) hospitalization;
471.22    (4) laboratory services;
471.23    (5) maternity and newborn care;
471.24    (6) mental health and substance use disorder services, including behavioral health
471.25treatment;
471.26    (7) pediatric services, including oral and vision care;
471.27    (8) prescription drugs;
471.28    (9) preventive and wellness services and chronic disease management;
471.29    (10) rehabilitative and habilitative services and devices, including services for
471.30autism spectrum disorder treatment specified pursuant to section 62A.3094; and
471.31    (11) additional essential health benefits included in the EHB-benchmark plan, as
471.32defined under the Affordable Care Act.
472.1EFFECTIVE DATE.This section is effective upon a formal determination from
472.2the Centers of Medicare and Medicaid Services that the inclusion of the autism spectrum
472.3disorder treatment services under Minnesota Statutes, section 62Q.81, subdivision 4,
472.4clause (10), as a rehabilitative and habilitative service is not a new state mandate and the
472.5state is not required to cover the cost for the services described under Minnesota Statutes,
472.6section 62A.3094. Upon a formal determination, this section is effective for health plans
472.7issued or renewed on or after January 1 of the next coverage year.

472.8    Sec. 22. [62Q.83] PRESCRIPTION DRUG BENEFIT TRANSPARENCY AND
472.9MANAGEMENT.
472.10    Subdivision 1. Definitions. (a) For purposes of this section, the following terms
472.11have the meanings given them.
472.12(b) "Drug" has the meaning given in section 151.01, subdivision 5.
472.13(c) "Enrollee contract year" means the 12-month term during which benefits
472.14associated with health plan company products are in effect. For managed care plans
472.15and county-based purchasing plans under section 256B.69 and chapter 256L, it means a
472.16calendar year beginning January through December.
472.17(d) "Formulary" means a list of prescription drugs that have been developed by
472.18clinical and pharmacy experts and represents the health plan company's medically
472.19appropriate and cost-effective prescription drugs approved for use.
472.20(e) "Health plan company" has the meaning given in section 62Q.01, subdivision 4,
472.21and includes an entity that performs pharmacy benefits management for the health plan
472.22company. For purposes of this definition, "pharmacy benefits management" means the
472.23administration or management of prescription drug benefits provided by the health plan
472.24company for the benefit of its enrollees and may include, but is not limited to, procurement
472.25of prescription drugs, clinical formulary development and management services, claims
472.26processing, and rebate contracting and administration.
472.27(f) "Prescription" has the meaning given in section 151.01, subdivision 16a.
472.28    Subd. 2. Prescription drug benefit disclosure. (a) A health plan company that
472.29provides prescription drug benefit coverage and uses a formulary must make its formulary
472.30and related benefit information available by electronic means and, upon request, in
472.31writing, at least 30 days prior to annual renewal dates.
472.32(b) Formularies must be organized and disclosed consistent with the most recent
472.33version of the United States Pharmacopeia's (USP) Model Guidelines.
472.34(c) For each item or category of items on the formulary, the specific enrollee benefit
472.35terms must be identified, including enrollee cost-sharing and expected out-of-pocket costs.
473.1    Subd. 3. Formulary changes. (a) Once a formulary has been established, a health
473.2plan company may, at any time during the enrollee's contract year:
473.3(1) expand its formulary by adding drugs to the formulary;
473.4(2) reduce co-payments or coinsurance; or
473.5(3) move a drug to a benefit category that reduces an enrollee's cost.
473.6(b) A health plan company may remove a brand name drug from its formulary
473.7or place a brand name drug in a benefit category that increases an enrollee's cost only
473.8upon the addition to the formulary of a generic or multisource brand name drug rated as
473.9therapeutically equivalent according to the FDA Orange Book or a biologic drug rated as
473.10interchangeable according to the FDA Purple Book, at a lower cost to the enrollee, and
473.11upon at least a 60-day notice to prescribers, pharmacists, and affected enrollees.
473.12(c) A health plan company may change utilization review requirements or move
473.13drugs to a benefit category that increases an enrollee's cost during the enrollee's contract
473.14year upon at least a 60-day notice to prescribers, pharmacists, and affected enrollees,
473.15provided that these changes do not apply to enrollees who are currently taking the drugs
473.16affected by these changes for the duration of the enrollee's contract year.
473.17(d) A health plan company may remove any drugs from its formulary that have
473.18been deemed unsafe by the Food and Drug Administration, that have been withdrawn
473.19by either the Food and Drug Administration or the product manufacturer, or where an
473.20independent source of research, clinical guidelines, or evidence-based standards has issued
473.21drug-specific warnings or recommended changes in drug usage.
473.22    Subd. 4. Transition process. (a) A health plan company must establish and
473.23maintain a transition process to prevent gaps in prescription drug coverage for both
473.24new and continuing enrollees with ongoing prescription drug needs who are affected
473.25by changes in formulary drug availability.
473.26(b) The transition process must provide coverage for at least 60 days.
473.27(c) Any enrollee cost-sharing applied must be based on the defined prescription drug
473.28benefit terms and must be consistent with any cost-sharing that the health plan company
473.29would charge for nonformulary drugs approved under a medication exceptions process.
473.30(d) A health plan company must ensure that written notice is provided to each
473.31affected enrollee and prescriber within three business days after adjudication of the
473.32transition coverage.
473.33    Subd. 5. Medication exceptions process. (a) Each health plan company must
473.34establish and maintain a medication exceptions process that allows enrollees, providers,
473.35or an enrollee's authorized representative to request and obtain coverage approval in
473.36the following situations:
474.1(1) there is no acceptable clinical alternative listed on the formulary to treat the
474.2enrollee's disease or medical condition;
474.3(2) the prescription listed on the formulary has been ineffective in the treatment of
474.4an enrollee's disease or medical condition or, based on clinical and scientific evidence and
474.5the relevant physical or mental characteristics of the enrollee, is likely to be ineffective or
474.6adversely affect the drug's effectiveness or the enrollee's medication compliance; or
474.7(3) the number of doses that are available under a dose restriction has been
474.8ineffective in the treatment of the enrollee's disease or medical condition or, based on
474.9clinical and scientific evidence and the relevant physical or mental characteristics of
474.10the enrollee, is likely to be ineffective or adversely affect the drug's effectiveness or the
474.11enrollee's medication compliance.
474.12(b) An approved medication exceptions request must remain valid for the duration of
474.13an enrollee's contract term, provided the medication continues to be prescribed for the
474.14same condition, and provided the medication has not otherwise been withdrawn by the
474.15manufacturer or the Food and Drug Administration.
474.16(c) The medication exceptions process must comply with the requirements of
474.17chapter 62M.

474.18    Sec. 23. [62V.041] GOVERNANCE OF THE SHARED ELIGIBILITY SYSTEM.
474.19    Subdivision 1. Definition; shared eligibility system. "Shared eligibility system"
474.20means the system that supports eligibility determinations using a modified adjusted gross
474.21income methodology for medical assistance under section 256B.056, subdivision 1a,
474.22paragraph (b), clause (1); MinnesotaCare under chapter 256L; and qualified health plan
474.23enrollment under section 62V.05, subdivision 5, paragraph (c).
474.24    Subd. 2. Executive steering committee. The shared eligibility system shall be
474.25governed and administered by a seven-member executive steering committee. The steering
474.26committee shall consist of two members appointed by the commissioner of human services,
474.27two members appointed by the board, two members appointed by the commissioner of
474.28MN.IT, and one county representative appointed by the commissioner of human services.
474.29The commissioner of human services shall designate one of the members appointed by the
474.30commissioner of human services to serve as chair of the steering committee.
474.31    Subd. 3. Duties. (a) The steering committee shall establish an overall governance
474.32structure for the shared eligibility system, and shall be responsible for the overall
474.33governance of the system, including setting goals and priorities, allocating the system's
474.34resources, and making major system decisions.
475.1(b) The steering committee shall adopt bylaws, policies, and interagency agreements
475.2necessary to administer the shared eligibility system.
475.3    Subd. 4. Decision making. The steering committee, to the extent feasible, shall
475.4operate under a consensus model. The steering committee shall make decisions that give
475.5particular attention to parts of the system with the largest enrollments and the greatest risks.
475.6    Subd. 5. Administrative structure. MN.IT services shall be responsible for the
475.7design, build, maintenance, operation, and upgrade of the information technology for the
475.8shared eligibility system. MN.IT services shall carry out its responsibilities under the
475.9governance of the executive steering committee and this section.
475.10EFFECTIVE DATE.This section is effective the day following final enactment.

475.11    Sec. 24. Minnesota Statutes 2014, section 62V.05, subdivision 2, is amended to read:
475.12    Subd. 2. Operations funding. (a) Prior to January 1, 2015, MNsure shall retain or
475.13collect up to 1.5 percent of total premiums for individual and small group market health
475.14plans and dental plans sold through MNsure to fund the cash reserves of MNsure, but
475.15the amount collected shall not exceed a dollar amount equal to 25 percent of the funds
475.16collected under section 62E.11, subdivision 6, for calendar year 2012.
475.17(b) Beginning January 1, 2015, through December 31, 2015, MNsure shall retain
475.18or collect up to 3.5 percent of total premiums for individual and small group market
475.19health plans and dental plans sold through MNsure to fund the operations of MNsure, but
475.20the amount collected shall not exceed a dollar amount equal to 50 percent of the funds
475.21collected under section 62E.11, subdivision 6, for calendar year 2012.
475.22(c) Beginning January 1, 2016, through December 31, 2017, MNsure shall retain or
475.23collect up to 3.5 percent of total premiums for individual and small group market health
475.24plans and dental plans sold through MNsure to fund the operations of MNsure, but the
475.25amount collected may never exceed a dollar amount greater than 100 percent of the funds
475.26collected under section 62E.11, subdivision 6, for calendar year 2012.
475.27(d) Beginning January 1, 2018, MNsure shall retain or collect up to 1.5 percent of
475.28total premiums for individual health plans and dental plans sold to Minnesota residents
475.29through MNsure and outside of MNsure to fund the operations of MNsure. The amount
475.30collected shall not exceed a dollar amount greater than 100 percent of the funds collected
475.31under section 62E.11, subdivision 6, for calendar year 2012.
475.32(d) (e) For fiscal years 2014 and 2015, the commissioner of management and
475.33budget is authorized to provide cash flow assistance of up to $20,000,000 from the
475.34special revenue fund or the statutory general fund under section 16A.671, subdivision 3,
476.1paragraph (a), to MNsure. Any funds provided under this paragraph shall be repaid,
476.2with interest, by June 30, 2015.
476.3(e) (f) Funding for the operations of MNsure shall cover any compensation provided
476.4to navigators participating in the navigator program.

476.5    Sec. 25. Minnesota Statutes 2014, section 256.01, is amended by adding a subdivision
476.6to read:
476.7    Subd. 41. Plan and timetable for processing qualifying life events and changes
476.8in circumstances. The commissioner and the board of MNsure shall jointly develop
476.9a plan and timetable for implementation to ensure qualifying life events and changes
476.10in circumstances, reported by persons enrolled through the MNsure system in a public
476.11health care program or a qualified health plan, are processed within 30 days of receiving a
476.12report of a qualifying life event or change in circumstances. The plan and timetable for
476.13implementation must be developed no later than January 15, 2017.

476.14    Sec. 26. Minnesota Statutes 2014, section 256B.04, subdivision 14, is amended to read:
476.15    Subd. 14. Competitive bidding. (a) When determined to be effective, economical,
476.16and feasible, the commissioner may utilize volume purchase through competitive bidding
476.17and negotiation under the provisions of chapter 16C, to provide items under the medical
476.18assistance program including but not limited to the following:
476.19    (1) eyeglasses;
476.20    (2) oxygen. The commissioner shall provide for oxygen needed in an emergency
476.21situation on a short-term basis, until the vendor can obtain the necessary supply from
476.22the contract dealer;
476.23    (3) hearing aids and supplies; and
476.24    (4) durable medical equipment, including but not limited to:
476.25    (i) hospital beds;
476.26    (ii) commodes;
476.27    (iii) glide-about chairs;
476.28    (iv) patient lift apparatus;
476.29    (v) wheelchairs and accessories;
476.30    (vi) oxygen administration equipment;
476.31    (vii) respiratory therapy equipment;
476.32    (viii) electronic diagnostic, therapeutic and life-support systems; and
476.33    (ix) allergen-reducing products as described in section 256B.0625, subdivision 65,
476.34paragraph (b), clause (3);
477.1    (5) nonemergency medical transportation level of need determinations, disbursement
477.2of public transportation passes and tokens, and volunteer and recipient mileage and
477.3parking reimbursements; and
477.4    (6) drugs.
477.5    (b) Rate changes and recipient cost-sharing under this chapter and chapters 256D and
477.6256L do not affect contract payments under this subdivision unless specifically identified.
477.7    (c) The commissioner may not utilize volume purchase through competitive bidding
477.8and negotiation for special transportation services under the provisions of chapter 16C.

477.9    Sec. 27. Minnesota Statutes 2014, section 256B.057, is amended by adding a
477.10subdivision to read:
477.11    Subd. 13. Presumptive eligibility determinations made by federally qualified
477.12health centers. The commissioner shall establish a process to qualify federally qualified
477.13health centers, as defined in section 145.9269, subdivision 1, that are participating
477.14providers under the medical assistance program to determine presumptive eligibility for
477.15medical assistance for an applicant who is a pregnant woman or child under the age of
477.16two, and has a basis of eligibility using the modified adjusted gross income methodology
477.17as defined in section 256B.056, subdivision 1a, paragraph (b), clause (1).
477.18EFFECTIVE DATE.This section is effective January 1, 2017.

477.19    Sec. 28. Minnesota Statutes 2014, section 256B.059, subdivision 1, is amended to read:
477.20    Subdivision 1. Definitions. (a) For purposes of this section and sections 256B.058
477.21and 256B.0595, the terms defined in this subdivision have the meanings given them.
477.22    (b) "Community spouse" means the spouse of an institutionalized spouse.
477.23    (c) "Spousal share" means one-half of the total value of all assets, to the extent that
477.24either the institutionalized spouse or the community spouse had an ownership interest at
477.25the time of the first continuous period of institutionalization.
477.26    (d) (c) "Assets otherwise available to the community spouse" means assets
477.27individually or jointly owned by the community spouse, other than assets excluded by
477.28subdivision 5, paragraph (c).
477.29    (e) (d) "Community spouse asset allowance" is the value of assets that can be
477.30transferred under subdivision 3.
477.31    (f) (e) "Institutionalized spouse" means a person who is:
477.32    (1) in a hospital, nursing facility, or intermediate care facility for persons with
477.33developmental disabilities, or receiving home and community-based services under
478.1section 256B.0915, and is expected to remain in the facility or institution or receive the
478.2home and community-based services for at least 30 consecutive days; and
478.3    (2) married to a person who is not in a hospital, nursing facility, or intermediate
478.4care facility for persons with developmental disabilities, and is not receiving home and
478.5community-based services under section 256B.0915, 256B.092, or 256B.49.
478.6    (g) (f) "For the sole benefit of" means no other individual or entity can benefit in any
478.7way from the assets or income at the time of a transfer or at any time in the future.
478.8    (h) (g) "Continuous period of institutionalization" means a 30-consecutive-day
478.9period of time in which a person is expected to stay in a medical or long-term care facility,
478.10or receive home and community-based services that would qualify for coverage under
478.11the elderly waiver (EW) or alternative care (AC) programs. For a stay in a facility, the
478.1230-consecutive-day period begins on the date of entry into a medical or long-term care
478.13facility. For receipt of home and community-based services, the 30-consecutive-day
478.14period begins on the date that the following conditions are met:
478.15    (1) the person is receiving services that meet the nursing facility level of care
478.16determined by a long-term care consultation;
478.17    (2) the person has received the long-term care consultation within the past 60 days;
478.18    (3) the services are paid by the EW program under section 256B.0915 or the AC
478.19program under section 256B.0913 or would qualify for payment under the EW or AC
478.20programs if the person were otherwise eligible for either program, and but for the receipt
478.21of such services the person would have resided in a nursing facility; and
478.22    (4) the services are provided by a licensed provider qualified to provide home and
478.23community-based services.
478.24EFFECTIVE DATE.This section is effective June 1, 2016.

478.25    Sec. 29. Minnesota Statutes 2014, section 256B.059, subdivision 2, is amended to read:
478.26    Subd. 2. Assessment of spousal share marital assets. At the beginning of the
478.27first continuous period of institutionalization of a person beginning on or after October
478.281, 1989, at the request of either the institutionalized spouse or the community spouse, or
478.29Upon application for medical assistance benefits for an institutionalized spouse, the total
478.30value of assets in which either the institutionalized spouse or the community spouse had
478.31have an interest at the time of the first period of institutionalization of 30 days or more
478.32shall be assessed and documented and the spousal share shall be assessed and documented
478.33the community spouse asset allowance calculated as required in subdivision 3.
478.34EFFECTIVE DATE.This section is effective June 1, 2016.

479.1    Sec. 30. Minnesota Statutes 2014, section 256B.059, subdivision 3, is amended to read:
479.2    Subd. 3. Community spouse asset allowance. An institutionalized spouse may
479.3transfer assets to the community spouse for the sole benefit of the community spouse.
479.4Except for increased amounts allowable under subdivision 4, the maximum amount of
479.5assets allowed to be transferred is the amount which, when added to the assets otherwise
479.6available to the community spouse, is as follows the greater of:
479.7(1) prior to July 1, 1994, the greater of:
479.8(i) $14,148;
479.9(ii) the lesser of the spousal share or $70,740; or
479.10(iii) the amount required by court order to be paid to the community spouse; and
479.11(2) for persons whose date of initial determination of eligibility for medical
479.12assistance following their first continuous period of institutionalization occurs on or after
479.13July 1, 1994, the greater of:
479.14(i) $20,000;
479.15(ii) the lesser of the spousal share or $70,740; or
479.16(iii) the amount required by court order to be paid to the community spouse.
479.17(1) $119,220 subject to an annual adjustment on January 1, 2017, and every January
479.181 thereafter, equal to the percentage increase in the Consumer Price Index for All Urban
479.19Consumers (all items; United States city average) between the two previous Septembers; or
479.20(2) the amount required by court order to be paid to the community spouse.
479.21If the assets available to the community spouse are already at the limit permissible
479.22under this section, or the higher limit attributable to increases under subdivision 4, no assets
479.23may be transferred from the institutionalized spouse to the community spouse. The transfer
479.24must be made as soon as practicable after the date the institutionalized spouse is determined
479.25eligible for medical assistance, or within the amount of time needed for any court order
479.26required for the transfer. On January 1, 1994, and every January 1 thereafter, the limits in
479.27this subdivision shall be adjusted by the same percentage change in the Consumer Price
479.28Index for All Urban Consumers (all items; United States city average) between the two
479.29previous Septembers. These adjustments shall also be applied to the limits in subdivision 5.
479.30EFFECTIVE DATE.This section is effective June 1, 2016.

479.31    Sec. 31. Minnesota Statutes 2015 Supplement, section 256B.059, subdivision 5,
479.32is amended to read:
479.33    Subd. 5. Asset availability. (a) At the time of initial determination of eligibility for
479.34medical assistance benefits following the first continuous period of institutionalization
479.35on or after October 1, 1989 for an institutionalized spouse, assets considered available
480.1to the institutionalized spouse shall be the total value of all assets in which either spouse
480.2has an ownership interest, reduced by the following amount for the community spouse:
480.3available to the community spouse under subdivision 3.
480.4(1) prior to July 1, 1994, the greater of:
480.5(i) $14,148;
480.6(ii) the lesser of the spousal share or $70,740; or
480.7(iii) the amount required by court order to be paid to the community spouse;
480.8(2) for persons whose date of initial determination of eligibility for medical
480.9assistance following their first continuous period of institutionalization occurs on or after
480.10July 1, 1994, the greater of:
480.11(i) $20,000;
480.12(ii) the lesser of the spousal share or $70,740; or
480.13(iii) the amount required by court order to be paid to the community spouse.
480.14The value of assets transferred for the sole benefit of the community spouse under section
480.15256B.0595, subdivision 4 , in combination with other assets available to the community
480.16spouse under this section, cannot exceed the limit for the community spouse asset
480.17allowance determined under subdivision 3 or 4. Assets that exceed this allowance shall
480.18be considered available to the institutionalized spouse. If the community spouse asset
480.19allowance has been increased under subdivision 4, then the assets considered available to
480.20the institutionalized spouse under this subdivision shall be further reduced by the value of
480.21additional amounts allowed under subdivision 4.
480.22(b) An institutionalized spouse may be found eligible for medical assistance even
480.23though assets in excess of the allowable amount are found to be available under paragraph
480.24(a) if the assets are owned jointly or individually by the community spouse, and the
480.25institutionalized spouse cannot use those assets to pay for the cost of care without the
480.26consent of the community spouse, and if: (i) the institutionalized spouse assigns to the
480.27commissioner the right to support from the community spouse under section 256B.14,
480.28subdivision 3 ; (ii) the institutionalized spouse lacks the ability to execute an assignment
480.29due to a physical or mental impairment; or (iii) the denial of eligibility would cause an
480.30imminent threat to the institutionalized spouse's health and well-being.
480.31(c) After the month in which the institutionalized spouse is determined eligible for
480.32medical assistance, and during the continuous period of institutionalization enrollment, no
480.33assets of the community spouse are considered available to the institutionalized spouse,
480.34unless the institutionalized spouse has been found eligible under paragraph (b).
480.35(d) Assets determined to be available to the institutionalized spouse under this
480.36section must be used for the health care or personal needs of the institutionalized spouse.
481.1(e) For purposes of this section, assets do not include assets excluded under the
481.2Supplemental Security Income program.
481.3EFFECTIVE DATE.This section is effective June 1, 2016.

481.4    Sec. 32. Minnesota Statutes 2014, section 256B.059, is amended by adding a
481.5subdivision to read:
481.6    Subd. 6. Temporary application. (a) During the period in which rules against
481.7spousal impoverishment are temporarily applied according to section 2404 of the Patient
481.8Protection Affordable Care Act, Public Law 111-148, as amended by the Health Care and
481.9Education Reconciliation Act of 2010, Public Law 111-152, this section applies to an
481.10institutionalized spouse:
481.11(1) applying for home and community-based waivers under sections 256B.092,
481.12256B.093, and 256B.49 on or after June 1, 2016;
481.13(2) enrolled in home and community-based waivers under sections 256B.092,
481.14256B.093, and 256B.49 before June 1, 2016; or
481.15(3) applying for services under section 256B.85 upon the effective date of that section.
481.16(b) During the applicable period of paragraph (a), the definition of "institutionalized
481.17spouse" in subdivision 1, paragraph (f), also includes an institutionalized spouse
481.18referenced in paragraph (a).
481.19EFFECTIVE DATE.(a) Minnesota Statutes, section 256B.059, subdivision 6,
481.20paragraphs (a), clauses (1) and (3), and (b) are effective June 1, 2016. Minnesota Statutes,
481.21section 256B.059, subdivision 6, paragraph (a), clause (2), is effective March 1, 2017.
481.22(b) Minnesota Statutes, section 256B.059, subdivision 6, paragraph (a), clauses (1)
481.23and (2), expire upon notification to the commissioner of human services that the Center for
481.24Medicare and Medicaid Services approved the continuation of the deeming rules in effect
481.25on May 31, 2016, for the treatment of the assets of a community spouse. The commissioner
481.26of human services shall notify the revisor of statutes when notice is received.

481.27    Sec. 33. Minnesota Statutes 2014, section 256B.06, subdivision 4, is amended to read:
481.28    Subd. 4. Citizenship requirements. (a) Eligibility for medical assistance is limited
481.29to citizens of the United States, qualified noncitizens as defined in this subdivision, and
481.30other persons residing lawfully in the United States. Citizens or nationals of the United
481.31States must cooperate in obtaining satisfactory documentary evidence of citizenship or
481.32nationality according to the requirements of the federal Deficit Reduction Act of 2005,
481.33Public Law 109-171.
482.1(b) "Qualified noncitizen" means a person who meets one of the following
482.2immigration criteria:
482.3(1) admitted for lawful permanent residence according to United States Code, title 8;
482.4(2) admitted to the United States as a refugee according to United States Code,
482.5title 8, section 1157;
482.6(3) granted asylum according to United States Code, title 8, section 1158;
482.7(4) granted withholding of deportation according to United States Code, title 8,
482.8section 1253(h);
482.9(5) paroled for a period of at least one year according to United States Code, title 8,
482.10section 1182(d)(5);
482.11(6) granted conditional entrant status according to United States Code, title 8,
482.12section 1153(a)(7);
482.13(7) determined to be a battered noncitizen by the United States Attorney General
482.14according to the Illegal Immigration Reform and Immigrant Responsibility Act of 1996,
482.15title V of the Omnibus Consolidated Appropriations Bill, Public Law 104-200;
482.16(8) is a child of a noncitizen determined to be a battered noncitizen by the United
482.17States Attorney General according to the Illegal Immigration Reform and Immigrant
482.18Responsibility Act of 1996, title V, of the Omnibus Consolidated Appropriations Bill,
482.19Public Law 104-200; or
482.20(9) determined to be a Cuban or Haitian entrant as defined in section 501(e) of Public
482.21Law 96-422, the Refugee Education Assistance Act of 1980.
482.22(c) All qualified noncitizens who were residing in the United States before August
482.2322, 1996, who otherwise meet the eligibility requirements of this chapter, are eligible for
482.24medical assistance with federal financial participation.
482.25(d) Beginning December 1, 1996, qualified noncitizens who entered the United
482.26States on or after August 22, 1996, and who otherwise meet the eligibility requirements
482.27of this chapter are eligible for medical assistance with federal participation for five years
482.28if they meet one of the following criteria:
482.29(1) refugees admitted to the United States according to United States Code, title 8,
482.30section 1157;
482.31(2) persons granted asylum according to United States Code, title 8, section 1158;
482.32(3) persons granted withholding of deportation according to United States Code,
482.33title 8, section 1253(h);
482.34(4) veterans of the United States armed forces with an honorable discharge for
482.35a reason other than noncitizen status, their spouses and unmarried minor dependent
482.36children; or
483.1(5) persons on active duty in the United States armed forces, other than for training,
483.2their spouses and unmarried minor dependent children.
483.3Beginning July 1, 2010, children and pregnant women who are noncitizens
483.4described in paragraph (b) or who are lawfully present in the United States as defined
483.5in Code of Federal Regulations, title 8, section 103.12, and who otherwise meet
483.6eligibility requirements of this chapter, are eligible for medical assistance with federal
483.7financial participation as provided by the federal Children's Health Insurance Program
483.8Reauthorization Act of 2009, Public Law 111-3.
483.9(e) Nonimmigrants who otherwise meet the eligibility requirements of this chapter
483.10are eligible for the benefits as provided in paragraphs (f) to (h). For purposes of this
483.11subdivision, a "nonimmigrant" is a person in one of the classes listed in United States
483.12Code, title 8, section 1101(a)(15).
483.13(f) Payment shall also be made for care and services that are furnished to noncitizens,
483.14regardless of immigration status, who otherwise meet the eligibility requirements of
483.15this chapter, if such care and services are necessary for the treatment of an emergency
483.16medical condition.
483.17(g) For purposes of this subdivision, the term "emergency medical condition" means
483.18a medical condition that meets the requirements of United States Code, title 42, section
483.191396b(v).
483.20(h)(1) Notwithstanding paragraph (g), services that are necessary for the treatment
483.21of an emergency medical condition are limited to the following:
483.22(i) services delivered in an emergency room or by an ambulance service licensed
483.23under chapter 144E that are directly related to the treatment of an emergency medical
483.24condition;
483.25(ii) services delivered in an inpatient hospital setting following admission from an
483.26emergency room or clinic for an acute emergency condition; and
483.27(iii) follow-up services that are directly related to the original service provided
483.28to treat the emergency medical condition and are covered by the global payment made
483.29to the provider.
483.30    (2) Services for the treatment of emergency medical conditions do not include:
483.31(i) services delivered in an emergency room or inpatient setting to treat a
483.32nonemergency condition;
483.33(ii) organ transplants, stem cell transplants, and related care;
483.34(iii) services for routine prenatal care;
483.35(iv) continuing care, including long-term care, nursing facility services, home health
483.36care, adult day care, day training, or supportive living services;
484.1(v) elective surgery;
484.2(vi) outpatient prescription drugs, unless the drugs are administered or dispensed as
484.3part of an emergency room visit;
484.4(vii) preventative health care and family planning services;
484.5(viii) rehabilitation services;
484.6(ix) physical, occupational, or speech therapy;
484.7(x) transportation services;
484.8(xi) case management;
484.9(xii) prosthetics, orthotics, durable medical equipment, or medical supplies;
484.10(xiii) dental services;
484.11(xiv) hospice care;
484.12(xv) audiology services and hearing aids;
484.13(xvi) podiatry services;
484.14(xvii) chiropractic services;
484.15(xviii) immunizations;
484.16(xix) vision services and eyeglasses;
484.17(xx) waiver services;
484.18(xxi) individualized education programs; or
484.19(xxii) chemical dependency treatment.
484.20(i) Pregnant noncitizens who are ineligible for federally funded medical assistance
484.21because of immigration status, are not covered by a group health plan or health insurance
484.22coverage according to Code of Federal Regulations, title 42, section 457.310, and who
484.23otherwise meet the eligibility requirements of this chapter, are eligible for medical
484.24assistance through the period of pregnancy, including labor and delivery, and 60 days
484.25postpartum, to the extent federal funds are available under title XXI of the Social Security
484.26Act, and the state children's health insurance program.
484.27(j) Beginning October 1, 2003, persons who are receiving care and rehabilitation
484.28services from a nonprofit center established to serve victims of torture and are otherwise
484.29ineligible for medical assistance under this chapter are eligible for medical assistance
484.30without federal financial participation. These individuals are eligible only for the period
484.31during which they are receiving services from the center. Individuals eligible under this
484.32paragraph shall not be required to participate in prepaid medical assistance. The nonprofit
484.33center referenced under this paragraph may establish itself as a provider of mental health
484.34targeted case management services through a county contract under section 256.0112,
484.35subdivision 6 . If the nonprofit center is unable to secure a contract with a lead county in its
484.36service area, then, notwithstanding the requirements of section 256B.0625, subdivision
485.120 , the commissioner may negotiate a contract with the nonprofit center for provision of
485.2mental health targeted case management services. When serving clients who are not the
485.3financial responsibility of their contracted lead county, the nonprofit center must gain the
485.4concurrence of the county of financial responsibility prior to providing mental health
485.5targeted case management services for those clients.
485.6(k) Notwithstanding paragraph (h), clause (2), the following services are covered as
485.7emergency medical conditions under paragraph (f) except where coverage is prohibited
485.8under federal law:
485.9(1) dialysis services provided in a hospital or freestanding dialysis facility; and
485.10(2) surgery and the administration of chemotherapy, radiation, and related services
485.11necessary to treat cancer if the recipient has a cancer diagnosis that is not in remission and
485.12requires surgery, chemotherapy, or radiation treatment; and
485.13(3) kidney transplant if the person has been diagnosed with end stage renal disease,
485.14is currently receiving dialysis services, and is a potential candidate for a kidney transplant.
485.15(l) Effective July 1, 2013, recipients of emergency medical assistance under this
485.16subdivision are eligible for coverage of the elderly waiver services provided under section
485.17256B.0915 , and coverage of rehabilitative services provided in a nursing facility. The
485.18age limit for elderly waiver services does not apply. In order to qualify for coverage, a
485.19recipient of emergency medical assistance is subject to the assessment and reassessment
485.20requirements of section 256B.0911. Initial and continued enrollment under this paragraph
485.21is subject to the limits of available funding.

485.22    Sec. 34. Minnesota Statutes 2014, section 256B.0625, is amended by adding a
485.23subdivision to read:
485.24    Subd. 9c. Oral health assessments. Medical assistance covers oral health
485.25assessments that meet the requirements of this subdivision. An oral health assessment must
485.26use the risk factors established by the commissioner of human services and be conducted
485.27by a licensed dental provider in collaborative practice under section 150A.10, subdivision
485.281a; 150A.105; or 150A.106, to identify possible signs of oral or systemic disease,
485.29malformation, or injury and the need for referral for diagnosis and treatment. Oral health
485.30assessments are limited to once per patient per year and must be conducted in a community
485.31setting. The provider performing the assessment must document that a formal arrangement
485.32with a licensed dentist for patient referral and follow-up is in place and is being utilized.
485.33The patient referral and follow-up arrangement must allow patients receiving an assessment
485.34under this subdivision to receive follow-up services in a timely manner and establish an
485.35ongoing relationship with a dental provider that is available to serve as the patient's dental
486.1home. If the commissioner determines from an analysis of claims or other information
486.2that the referral and follow-up arrangement is not reasonably effective in ensuring that
486.3patients receive follow-up services, the commissioner may disqualify the treating provider
486.4or the pay-to provider from receiving payment for assessments under this subdivision.

486.5    Sec. 35. Minnesota Statutes 2015 Supplement, section 256B.0625, subdivision 17a,
486.6is amended to read:
486.7    Subd. 17a. Payment for ambulance services. (a) Medical assistance covers
486.8ambulance services. Providers shall bill ambulance services according to Medicare
486.9criteria. Nonemergency ambulance services shall not be paid as emergencies. Effective
486.10for services rendered on or after July 1, 2001, medical assistance payments for ambulance
486.11services shall be paid at the Medicare reimbursement rate or at the medical assistance
486.12payment rate in effect on July 1, 2000, whichever is greater.
486.13(b) Effective for services provided on or after July 1, 2016, medical assistance
486.14payment rates for ambulance services identified in this paragraph are increased by five
486.15percent. Capitation payments made to managed care plans and county-based purchasing
486.16plans for ambulance services provided on or after January 1, 2017, shall be increased to
486.17reflect this rate increase, and shall require the plans to pass on the full amount of the increase
486.18in the form of higher reimbursement rates to the ambulance service providers identified
486.19in this paragraph. The increased rate described in this paragraph applies to ambulance
486.20service providers whose base of operations as defined in section 144E.10 is located:
486.21(1) outside the metropolitan counties listed in section 473.121, subdivision 4, and
486.22outside the cities of Duluth, Mankato, Moorhead, St. Cloud, and Rochester; or
486.23(2) within a municipality with a population of less than 1,000.

486.24    Sec. 36. Minnesota Statutes 2014, section 256B.0625, subdivision 30, is amended to
486.25read:
486.26    Subd. 30. Other clinic services. (a) Medical assistance covers rural health clinic
486.27services, federally qualified health center services, nonprofit community health clinic
486.28services, and public health clinic services. Rural health clinic services and federally
486.29qualified health center services mean services defined in United States Code, title 42,
486.30section 1396d(a)(2)(B) and (C). Payment for rural health clinic and federally qualified
486.31health center services shall be made according to applicable federal law and regulation.
486.32(b) A federally qualified health center that is beginning initial operation shall submit
486.33an estimate of budgeted costs and visits for the initial reporting period in the form and
486.34detail required by the commissioner. A federally qualified health center that is already in
487.1operation shall submit an initial report using actual costs and visits for the initial reporting
487.2period. Within 90 days of the end of its reporting period, a federally qualified health
487.3center shall submit, in the form and detail required by the commissioner, a report of
487.4its operations, including allowable costs actually incurred for the period and the actual
487.5number of visits for services furnished during the period, and other information required
487.6by the commissioner. Federally qualified health centers that file Medicare cost reports
487.7shall provide the commissioner with a copy of the most recent Medicare cost report filed
487.8with the Medicare program intermediary for the reporting year which support the costs
487.9claimed on their cost report to the state.
487.10(c) In order to continue cost-based payment under the medical assistance program
487.11according to paragraphs (a) and (b), a federally qualified health center or rural health clinic
487.12must apply for designation as an essential community provider within six months of final
487.13adoption of rules by the Department of Health according to section 62Q.19, subdivision
487.147 . For those federally qualified health centers and rural health clinics that have applied
487.15for essential community provider status within the six-month time prescribed, medical
487.16assistance payments will continue to be made according to paragraphs (a) and (b) for the
487.17first three years after application. For federally qualified health centers and rural health
487.18clinics that either do not apply within the time specified above or who have had essential
487.19community provider status for three years, medical assistance payments for health services
487.20provided by these entities shall be according to the same rates and conditions applicable
487.21to the same service provided by health care providers that are not federally qualified
487.22health centers or rural health clinics.
487.23(d) Effective July 1, 1999, the provisions of paragraph (c) requiring a federally
487.24qualified health center or a rural health clinic to make application for an essential
487.25community provider designation in order to have cost-based payments made according
487.26to paragraphs (a) and (b) no longer apply.
487.27(e) Effective January 1, 2000, payments made according to paragraphs (a) and (b)
487.28shall be limited to the cost phase-out schedule of the Balanced Budget Act of 1997.
487.29(f) Effective January 1, 2001, each federally qualified health center and rural health
487.30clinic may elect to be paid either under the prospective payment system established
487.31in United States Code, title 42, section 1396a(aa), or under an alternative payment
487.32methodology consistent with the requirements of United States Code, title 42, section
487.331396a(aa), and approved by the Centers for Medicare and Medicaid Services. The
487.34alternative payment methodology shall be 100 percent of cost as determined according to
487.35Medicare cost principles.
487.36(g) For purposes of this section, "nonprofit community clinic" is a clinic that:
488.1(1) has nonprofit status as specified in chapter 317A;
488.2(2) has tax exempt status as provided in Internal Revenue Code, section 501(c)(3);
488.3(3) is established to provide health services to low-income population groups,
488.4uninsured, high-risk and special needs populations, underserved and other special needs
488.5populations;
488.6(4) employs professional staff at least one-half of which are familiar with the
488.7cultural background of their clients;
488.8(5) charges for services on a sliding fee scale designed to provide assistance to
488.9low-income clients based on current poverty income guidelines and family size; and
488.10(6) does not restrict access or services because of a client's financial limitations or
488.11public assistance status and provides no-cost care as needed.
488.12(h) Effective for services provided on or after January 1, 2015, all claims for
488.13payment of clinic services provided by federally qualified health centers and rural health
488.14clinics shall be paid by the commissioner. The commissioner shall determine the most
488.15feasible method for paying claims from the following options:
488.16(1) federally qualified health centers and rural health clinics submit claims directly
488.17to the commissioner for payment, and the commissioner provides claims information for
488.18recipients enrolled in a managed care or county-based purchasing plan to the plan, on
488.19a regular basis; or
488.20(2) federally qualified health centers and rural health clinics submit claims for
488.21recipients enrolled in a managed care or county-based purchasing plan to the plan, and
488.22those claims are submitted by the plan to the commissioner for payment to the clinic.
488.23(i) For clinic services provided prior to January 1, 2015, the commissioner shall
488.24calculate and pay monthly the proposed managed care supplemental payments to clinics,
488.25and clinics shall conduct a timely review of the payment calculation data in order to
488.26finalize all supplemental payments in accordance with federal law. Any issues arising
488.27from a clinic's review must be reported to the commissioner by January 1, 2017. Upon
488.28final agreement between the commissioner and a clinic on issues identified under this
488.29subdivision, and in accordance with United States Code, title 42, section 1396a(bb), no
488.30supplemental payments for managed care plan or county-based purchasing plan claims
488.31for services provided prior to January 1, 2015, shall be made after June 30, 2017. If the
488.32commissioner and clinics are unable to resolve issues under this subdivision, the parties
488.33shall submit the dispute to the arbitration process under section 14.57.
488.34(j) The commissioner shall seek a federal waiver, authorized under section 1115
488.35of the Social Security Act, in order to obtain federal financial participation at the 100
488.36percent federal matching percentage available to facilities of the Indian Health Service
489.1or tribal organization in accordance with section 1905(b) of the Social Security Act for
489.2expenditures made to organizations dually certified under Title V of the Indian Health
489.3Care Improvement Act, PL-437, and as a federally qualified health center under paragraph
489.4(a) that provides services to American Indian and Alaskan Native individuals eligible for
489.5services under this subdivision.

489.6    Sec. 37. Minnesota Statutes 2015 Supplement, section 256B.0625, subdivision 31,
489.7is amended to read:
489.8    Subd. 31. Medical supplies and equipment. (a) Medical assistance covers medical
489.9supplies and equipment. Separate payment outside of the facility's payment rate shall
489.10be made for wheelchairs and wheelchair accessories for recipients who are residents
489.11of intermediate care facilities for the developmentally disabled. Reimbursement for
489.12wheelchairs and wheelchair accessories for ICF/DD recipients shall be subject to the same
489.13conditions and limitations as coverage for recipients who do not reside in institutions. A
489.14wheelchair purchased outside of the facility's payment rate is the property of the recipient.
489.15(b) Vendors of durable medical equipment, prosthetics, orthotics, or medical supplies
489.16must enroll as a Medicare provider.
489.17(c) When necessary to ensure access to durable medical equipment, prosthetics,
489.18orthotics, or medical supplies, the commissioner may exempt a vendor from the Medicare
489.19enrollment requirement if:
489.20(1) the vendor supplies only one type of durable medical equipment, prosthetic,
489.21orthotic, or medical supply;
489.22(2) the vendor serves ten or fewer medical assistance recipients per year;
489.23(3) the commissioner finds that other vendors are not available to provide same or
489.24similar durable medical equipment, prosthetics, orthotics, or medical supplies; and
489.25(4) the vendor complies with all screening requirements in this chapter and Code of
489.26Federal Regulations, title 42, part 455. The commissioner may also exempt a vendor from
489.27the Medicare enrollment requirement if the vendor is accredited by a Centers for Medicare
489.28and Medicaid Services approved national accreditation organization as complying with
489.29the Medicare program's supplier and quality standards and the vendor serves primarily
489.30pediatric patients.
489.31(d) Durable medical equipment means a device or equipment that:
489.32(1) can withstand repeated use;
489.33(2) is generally not useful in the absence of an illness, injury, or disability; and
489.34(3) is provided to correct or accommodate a physiological disorder or physical
489.35condition or is generally used primarily for a medical purpose.
490.1(e) Electronic tablets may be considered durable medical equipment if the electronic
490.2tablet will be used as an augmentative and alternative communication system as defined
490.3under subdivision 31a, paragraph (a). To be covered by medical assistance, the device
490.4must be locked in order to prevent use not related to communication.
490.5(f) Notwithstanding the requirement in paragraph (e) that an electronic tablet must
490.6be locked to prevent use not as an augmentative communication device, a recipient of
490.7waiver services may use an electronic tablet for a use not related to communication when
490.8the recipient has been authorized under the waiver to receive one or more additional
490.9applications that can be loaded onto the electronic tablet, such that allowing the additional
490.10use prevents the purchase of a separate electronic tablet with waiver funds.
490.11(g) Allergen-reducing products provided according to subdivision 65, paragraph (b),
490.12clause (3), shall be considered durable medical equipment.
490.13EFFECTIVE DATE.This section is effective upon federal approval, but not before
490.14January 1, 2017. The commissioner of human services shall notify the revisor of statutes
490.15when federal approval is obtained.

490.16    Sec. 38. Minnesota Statutes 2014, section 256B.0625, subdivision 34, is amended to
490.17read:
490.18    Subd. 34. Indian health services facilities. (a) Medical assistance payments and
490.19MinnesotaCare payments to facilities of the Indian health service and facilities operated
490.20by a tribe or tribal organization under funding authorized by United States Code, title
490.2125, sections 450f to 450n, or title III of the Indian Self-Determination and Education
490.22Assistance Act, Public Law 93-638, for enrollees who are eligible for federal financial
490.23participation, shall be at the option of the facility in accordance with the rate published by
490.24the United States Assistant Secretary for Health under the authority of United States Code,
490.25title 42, sections 248(a) and 249(b). General assistance medical care payments to facilities
490.26of the Indian health services and facilities operated by a tribe or tribal organization for
490.27the provision of outpatient medical care services billed after June 30, 1990, must be in
490.28accordance with the general assistance medical care rates paid for the same services
490.29when provided in a facility other than a facility of the Indian health service or a facility
490.30operated by a tribe or tribal organization. MinnesotaCare payments for enrollees who are
490.31not eligible for federal financial participation at facilities of the Indian health service and
490.32facilities operated by a tribe or tribal organization for the provision of outpatient medical
490.33services must be in accordance with the medical assistance rates paid for the same services
490.34when provided in a facility other than a facility of the Indian health service or a facility
490.35operated by a tribe or tribal organization.
491.1(b) Effective upon federal approval, the medical assistance payments to a dually
491.2certified facility as defined in subdivision 30, paragraph (j), shall be the encounter rate
491.3described in paragraph (a) or a rate that is substantially equivalent for services provided
491.4to American Indians and Alaskan Native populations. The rate established under this
491.5paragraph for dually certified facilities shall not apply to MinnesotaCare payments.

491.6    Sec. 39. Minnesota Statutes 2015 Supplement, section 256B.0625, subdivision 58,
491.7is amended to read:
491.8    Subd. 58. Early and periodic screening, diagnosis, and treatment services. (a)
491.9Medical assistance covers early and periodic screening, diagnosis, and treatment services
491.10(EPSDT). The payment amount for a complete EPSDT screening shall not include charges
491.11for health care services and products that are available at no cost to the provider and shall
491.12not exceed the rate established per Minnesota Rules, part 9505.0445, item M, effective
491.13October 1, 2010.
491.14(b) Effective for services provided on or after July 1, 2016, payment for a complete
491.15EPSDT screening shall be increased by five percent. Effective January 1, 2017, capitation
491.16payments made to managed care plans and county-based purchasing plans shall be
491.17increased to reflect this increase and the commissioner shall require the plans to pass
491.18on the full amount of the increase in the form of higher payment rates to the providers.
491.19This increase does not apply to federally qualified health centers, rural health centers,
491.20and Indian health services.

491.21    Sec. 40. Minnesota Statutes 2014, section 256B.0625, is amended by adding a
491.22subdivision to read:
491.23    Subd. 60a. Community emergency medical technician services. (a) Medical
491.24assistance covers services provided by a community emergency medical technician
491.25(CEMT) who is certified under section 144E.275, subdivision 7, when the services are
491.26provided in accordance with this subdivision.
491.27(b) A CEMT may provide a posthospital discharge visit when ordered by a treating
491.28physician. The posthospital discharge visit includes:
491.29(1) verbal or visual reminders of discharge orders;
491.30(2) recording and reporting of vital signs to the patient's primary care provider;
491.31(3) medication access confirmation;
491.32(4) food access confirmation; and
491.33(5) identification of home hazards.
492.1(c) An individual who has repeat ambulance calls due to falls, has been discharged
492.2from a nursing home, or identified by the individual's primary care provider as at risk
492.3for nursing home placement, may receive a safety evaluation visit from a CEMT when
492.4ordered by a primary care provider in accordance with the individual's care plan. A safety
492.5evaluation visit includes:
492.6(1) medication access confirmation;
492.7(2) food access confirmation; and
492.8(3) identification of home hazards.
492.9(d) A CEMT shall be paid at $9.75 per 15-minute increment. A safety evaluation visit
492.10may not be billed for the same day as a posthospital discharge visit for the same individual.
492.11EFFECTIVE DATE.This section is effective January 1, 2017, or upon federal
492.12approval, whichever is later. The commissioner of human services shall notify the revisor
492.13of statutes when federal approval is obtained.

492.14    Sec. 41. Minnesota Statutes 2014, section 256B.0625, is amended by adding a
492.15subdivision to read:
492.16    Subd. 65. Enhanced asthma care services. (a) Medical assistance covers enhanced
492.17asthma care services and related products for children with poorly controlled asthma
492.18to be provided in the child's home. To be eligible for services and products under this
492.19subdivision, a child must:
492.20(1) be under 21 years of age;
492.21(2) have poorly controlled asthma;
492.22(3) have, at least one time in the past year, received health care for the child's asthma
492.23from a hospital emergency department or been hospitalized for the treatment of asthma; and
492.24(4) receive a referral for asthma care services and products covered under this
492.25subdivision from a treating health care provider.
492.26(b) Covered asthma care services and products include:
492.27(1) a home assessment for asthma triggers provided by an enrolled healthy homes
492.28specialist currently credentialed by the National Environmental Health Association;
492.29(2) targeted asthma education services in the child's home by an enrolled asthma
492.30educator certified by the National Asthma Educator Certification Board. Asthma
492.31education services provided under this clause include education on self-management,
492.32avoiding asthma triggers, identifying worsening asthma symptoms, and medication uses
492.33and techniques; and
493.1(3) allergen-reducing products recommended for the child by the healthy homes
493.2specialist or the certified asthma educator based on the documented allergies for that child
493.3and proven to reduce asthma triggers identified in the child's home assessment, including:
493.4(i) encasements for mattresses, box springs, and pillows;
493.5(ii) a HEPA vacuum cleaner, filters, and bags;
493.6(iii) a dehumidifier and filters;
493.7(iv) single-room air cleaners and filters;
493.8(v) nontoxic pest control systems, including traps and starter packages of food
493.9storage containers;
493.10(vi) a damp mopping system;
493.11(vii) if the child does not have access to a bed, a waterproof hospital-grade mattress;
493.12and
493.13(viii) furnace filters, for homeowners only.
493.14(c) A child is limited to one home assessment and one visit by a certified asthma
493.15educator to provide education on the use and maintenance of the products listed in
493.16paragraph (b), clause (3). A child may receive an additional home assessment if the child
493.17moves to a new home: (1) develops a new asthma trigger, including tobacco smoke; or
493.18(2) the child's health care provider documents a new allergy for the child, including an
493.19allergy to mold, pests, pets, or dust mites.
493.20(d) The commissioner shall determine the frequency that a child may receive a
493.21product listed in paragraph (b), clause (3), based on the reasonable expected lifetime
493.22of the product.
493.23EFFECTIVE DATE.This section is effective upon federal approval, but not before
493.24January 1, 2017. The commissioner of human services shall notify the revisor of statutes
493.25when federal approval is obtained.

493.26    Sec. 42. Minnesota Statutes 2014, section 256B.15, subdivision 1, is amended to read:
493.27    Subdivision 1. Policy and applicability. (a) It is the policy of this state that
493.28individuals or couples, either or both of whom participate in the medical assistance
493.29program, use their own assets to pay their share of the total cost of their care during or
493.30after their enrollment in the program according to applicable federal law and the laws of
493.31this state. The following provisions apply:
493.32    (1) subdivisions 1c to 1k shall not apply to claims arising under this section which
493.33are presented under section 525.313;
493.34    (2) the provisions of subdivisions 1c to 1k expanding the interests included in an
493.35estate for purposes of recovery under this section give effect to the provisions of United
494.1States Code, title 42, section 1396p, governing recoveries, but do not give rise to any
494.2express or implied liens in favor of any other parties not named in these provisions;
494.3    (3) the continuation of a recipient's life estate or joint tenancy interest in real
494.4property after the recipient's death for the purpose of recovering medical assistance under
494.5this section modifies common law principles holding that these interests terminate on
494.6the death of the holder;
494.7    (4) all laws, rules, and regulations governing or involved with a recovery of medical
494.8assistance shall be liberally construed to accomplish their intended purposes;
494.9    (5) a deceased recipient's life estate and joint tenancy interests continued under
494.10this section shall be owned by the remainderpersons or surviving joint tenants as their
494.11interests may appear on the date of the recipient's death. They shall not be merged into the
494.12remainder interest or the interests of the surviving joint tenants by reason of ownership.
494.13They shall be subject to the provisions of this section. Any conveyance, transfer, sale,
494.14assignment, or encumbrance by a remainderperson, a surviving joint tenant, or their heirs,
494.15successors, and assigns shall be deemed to include all of their interest in the deceased
494.16recipient's life estate or joint tenancy interest continued under this section; and
494.17    (6) the provisions of subdivisions 1c to 1k continuing a recipient's joint tenancy
494.18interests in real property after the recipient's death do not apply to a homestead owned of
494.19record, on the date the recipient dies, by the recipient and the recipient's spouse as joint
494.20tenants with a right of survivorship. Homestead means the real property occupied by the
494.21surviving joint tenant spouse as their sole residence on the date the recipient dies and
494.22classified and taxed to the recipient and surviving joint tenant spouse as homestead property
494.23for property tax purposes in the calendar year in which the recipient dies. For purposes of
494.24this exemption, real property the recipient and their surviving joint tenant spouse purchase
494.25solely with the proceeds from the sale of their prior homestead, own of record as joint
494.26tenants, and qualify as homestead property under section 273.124 in the calendar year
494.27in which the recipient dies and prior to the recipient's death shall be deemed to be real
494.28property classified and taxed to the recipient and their surviving joint tenant spouse as
494.29homestead property in the calendar year in which the recipient dies. The surviving spouse,
494.30or any person with personal knowledge of the facts, may provide an affidavit describing
494.31the homestead property affected by this clause and stating facts showing compliance with
494.32this clause. The affidavit shall be prima facie evidence of the facts it states.
494.33    (b) For purposes of this section, "medical assistance" includes the medical assistance
494.34program under this chapter and the general assistance medical care program under chapter
494.35256D and alternative care for nonmedical assistance recipients under section 256B.0913.
495.1    (c) For purposes of this section, beginning January 1, 2010, "medical assistance"
495.2does not include Medicare cost-sharing benefits in accordance with United States Code,
495.3title 42, section 1396p.
495.4    (d) All provisions in this subdivision, and subdivisions 1d, 1f, 1g, 1h, 1i, and 1j,
495.5related to the continuation of a recipient's life estate or joint tenancy interests in real
495.6property after the recipient's death for the purpose of recovering medical assistance, are
495.7effective only for life estates and joint tenancy interests established on or after August 1,
495.82003. For purposes of this paragraph, medical assistance does not include alternative care.

495.9    Sec. 43. Minnesota Statutes 2014, section 256B.15, subdivision 1a, is amended to read:
495.10    Subd. 1a. Estates subject to claims. (a) If a person receives any medical assistance
495.11hereunder, on the person's death, if single, or on the death of the survivor of a married
495.12couple, either or both of whom received medical assistance, or as otherwise provided for
495.13in this section, the total amount paid for medical assistance rendered as limited under
495.14subdivision 2 for the person and spouse shall be filed as a claim against the estate of the
495.15person or the estate of the surviving spouse in the court having jurisdiction to probate the
495.16estate or to issue a decree of descent according to sections 525.31 to 525.313.
495.17(b) For the purposes of this section, the person's estate must consist of:
495.18(1) the person's probate estate;
495.19(2) all of the person's interests or proceeds of those interests in real property the
495.20person owned as a life tenant or as a joint tenant with a right of survivorship at the time of
495.21the person's death;
495.22(3) all of the person's interests or proceeds of those interests in securities the person
495.23owned in beneficiary form as provided under sections 524.6-301 to 524.6-311 at the time
495.24of the person's death, to the extent the interests or proceeds of those interests become part
495.25of the probate estate under section 524.6-307;
495.26(4) all of the person's interests in joint accounts, multiple-party accounts, and
495.27pay-on-death accounts, brokerage accounts, investment accounts, or the proceeds of
495.28those accounts, as provided under sections 524.6-201 to 524.6-214 at the time of the
495.29person's death to the extent the interests become part of the probate estate under section
495.30524.6-207 ; and
495.31(5) assets conveyed to a survivor, heir, or assign of the person through survivorship,
495.32living trust, or other arrangements.
495.33(c) For the purpose of this section and recovery in a surviving spouse's estate for
495.34medical assistance paid for a predeceased spouse, the estate must consist of all of the legal
495.35title and interests the deceased individual's predeceased spouse had in jointly owned or
496.1marital property at the time of the spouse's death, as defined in subdivision 2b, and the
496.2proceeds of those interests, that passed to the deceased individual or another individual, a
496.3survivor, an heir, or an assign of the predeceased spouse through a joint tenancy, tenancy
496.4in common, survivorship, life estate, living trust, or other arrangement. A deceased
496.5recipient who, at death, owned the property jointly with the surviving spouse shall have
496.6an interest in the entire property.
496.7(d) For the purpose of recovery in a single person's estate or the estate of a survivor
496.8of a married couple, "other arrangement" includes any other means by which title to all or
496.9any part of the jointly owned or marital property or interest passed from the predeceased
496.10spouse to another including, but not limited to, transfers between spouses which are
496.11permitted, prohibited, or penalized for purposes of medical assistance.
496.12(e) A claim shall be filed if medical assistance was rendered for either or both
496.13persons under one of the following circumstances:
496.14(1) the person was over 55 years of age, and received services under this chapter
496.15prior to January 1, 2014;
496.16(2) the person resided in a medical institution for six months or longer, received
496.17services under this chapter, and, at the time of institutionalization or application for
496.18medical assistance, whichever is later, the person could not have reasonably been expected
496.19to be discharged and returned home, as certified in writing by the person's treating
496.20physician. For purposes of this section only, a "medical institution" means a skilled
496.21nursing facility, intermediate care facility, intermediate care facility for persons with
496.22developmental disabilities, nursing facility, or inpatient hospital; or
496.23(3) the person received general assistance medical care services under chapter
496.24256D.; or
496.25(4) the person was 55 years of age or older and received medical assistance
496.26services on or after January 1, 2014, that consisted of nursing facility services, home and
496.27community-based services, or related hospital and prescription drug benefits.
496.28(f) The claim shall be considered an expense of the last illness of the decedent for
496.29the purpose of section 524.3-805. Notwithstanding any law or rule to the contrary, a
496.30state or county agency with a claim under this section must be a creditor under section
496.31524.6-307 . Any statute of limitations that purports to limit any county agency or the state
496.32agency, or both, to recover for medical assistance granted hereunder shall not apply to any
496.33claim made hereunder for reimbursement for any medical assistance granted hereunder.
496.34Notice of the claim shall be given to all heirs and devisees of the decedent, and to other
496.35persons with an ownership interest in the real property owned by the decedent at the time
496.36of the decedent's death, whose identity can be ascertained with reasonable diligence. The
497.1notice must include procedures and instructions for making an application for a hardship
497.2waiver under subdivision 5; time frames for submitting an application and determination;
497.3and information regarding appeal rights and procedures. Counties are entitled to one-half
497.4of the nonfederal share of medical assistance collections from estates that are directly
497.5attributable to county effort. Counties are entitled to ten percent of the collections for
497.6alternative care directly attributable to county effort.
497.7EFFECTIVE DATE.This section is effective upon federal approval and applies to
497.8services rendered on or after January 1, 2014, and to claims not paid prior to July 1, 2016.

497.9    Sec. 44. Minnesota Statutes 2014, section 256B.15, subdivision 2, is amended to read:
497.10    Subd. 2. Limitations on claims. (a) For services rendered prior to January 1, 2014,
497.11the claim shall include only the total amount of medical assistance rendered after age 55 or
497.12during a period of institutionalization described in subdivision 1a, paragraph (e), and the
497.13total amount of general assistance medical care rendered, and shall not include interest.
497.14(b) For services rendered on or after January 1, 2014, the claim shall include only:
497.15(1) the amount of medical assistance rendered to recipients 55 years of age or older
497.16and that consisted of nursing facility services, home and community-based services, and
497.17related hospital and prescription drug services; and
497.18(2) the total amount of medical assistance rendered during a period of
497.19institutionalization described in subdivision 1a, paragraph (e), clause (2).
497.20The claim shall not include interest. For the purposes of this section, "home and
497.21community-based services" has the same meaning it has when used in United States
497.22Code, title 42, section 1396p(b)(1)(B)(i).
497.23(c) Claims that have been allowed but not paid shall bear interest according to
497.24section 524.3-806, paragraph (d). A claim against the estate of a surviving spouse who did
497.25not receive medical assistance, for medical assistance rendered for the predeceased spouse,
497.26shall be payable from the full value of all of the predeceased spouse's assets and interests
497.27which are part of the surviving spouse's estate under subdivisions 1a and 2b. Recovery of
497.28medical assistance expenses in the nonrecipient surviving spouse's estate is limited to the
497.29value of the assets of the estate that were marital property or jointly owned property at any
497.30time during the marriage. The claim is not payable from the value of assets or proceeds of
497.31assets in the estate attributable to a predeceased spouse whom the individual married after
497.32the death of the predeceased recipient spouse for whom the claim is filed or from assets
497.33and the proceeds of assets in the estate which the nonrecipient decedent spouse acquired
497.34with assets which were not marital property or jointly owned property after the death of
498.1the predeceased recipient spouse. Claims for alternative care shall be net of all premiums
498.2paid under section 256B.0913, subdivision 12, on or after July 1, 2003, and shall be
498.3limited to services provided on or after July 1, 2003. Claims against marital property shall
498.4be limited to claims against recipients who died on or after July 1, 2009.
498.5EFFECTIVE DATE.This section is effective upon federal approval and applies to
498.6services rendered on or after January 1, 2014, and to claims not paid prior to July 1, 2016.

498.7    Sec. 45. Minnesota Statutes 2014, section 256B.69, subdivision 6, is amended to read:
498.8    Subd. 6. Service delivery. (a) Each demonstration provider shall be responsible for
498.9the health care coordination for eligible individuals. Demonstration providers:
498.10    (1) shall authorize and arrange for the provision of all needed health services
498.11including but not limited to the full range of services listed in sections 256B.02,
498.12subdivision 8 , and 256B.0625 in order to ensure appropriate health care is delivered to
498.13enrollees. Notwithstanding section 256B.0621, demonstration providers that provide
498.14nursing home and community-based services under this section shall provide relocation
498.15service coordination to enrolled persons age 65 and over;
498.16    (2) shall accept the prospective, per capita payment from the commissioner in return
498.17for the provision of comprehensive and coordinated health care services for eligible
498.18individuals enrolled in the program;
498.19    (3) may contract with other health care and social service practitioners to provide
498.20services to enrollees; and
498.21    (4) shall institute recipient grievance procedures according to the method established
498.22by the project, utilizing applicable requirements of chapter 62D. Disputes not resolved
498.23through this process shall be appealable to the commissioner as provided in subdivision 11.
498.24    (b) Demonstration providers must comply with the standards for claims settlement
498.25under section 72A.201, subdivisions 4, 5, 7, and 8, when contracting with other health
498.26care and social service practitioners to provide services to enrollees. A demonstration
498.27provider must pay a clean claim, as defined in Code of Federal Regulations, title 42,
498.28section 447.45(b), within 30 business days of the date of acceptance of the claim.
498.29(c) Managed care plans and county-based purchasing plans must comply with
498.30chapter 62M and section 62Q.83.

498.31    Sec. 46. Minnesota Statutes 2015 Supplement, section 256B.76, subdivision 1, is
498.32amended to read:
499.1    Subdivision 1. Physician reimbursement. (a) Effective for services rendered on
499.2or after October 1, 1992, the commissioner shall make payments for physician services
499.3as follows:
499.4    (1) payment for level one Centers for Medicare and Medicaid Services' common
499.5procedural coding system codes titled "office and other outpatient services," "preventive
499.6medicine new and established patient," "delivery, antepartum, and postpartum care,"
499.7"critical care," cesarean delivery and pharmacologic management provided to psychiatric
499.8patients, and level three codes for enhanced services for prenatal high risk, shall be paid
499.9at the lower of (i) submitted charges, or (ii) 25 percent above the rate in effect on June
499.1030, 1992. If the rate on any procedure code within these categories is different than the
499.11rate that would have been paid under the methodology in section 256B.74, subdivision 2,
499.12then the larger rate shall be paid;
499.13    (2) payments for all other services shall be paid at the lower of (i) submitted charges,
499.14or (ii) 15.4 percent above the rate in effect on June 30, 1992; and
499.15    (3) all physician rates shall be converted from the 50th percentile of 1982 to the 50th
499.16percentile of 1989, less the percent in aggregate necessary to equal the above increases
499.17except that payment rates for home health agency services shall be the rates in effect
499.18on September 30, 1992.
499.19    (b) Effective for services rendered on or after January 1, 2000, payment rates for
499.20physician and professional services shall be increased by three percent over the rates
499.21in effect on December 31, 1999, except for home health agency and family planning
499.22agency services. The increases in this paragraph shall be implemented January 1, 2000,
499.23for managed care.
499.24(c) Effective for services rendered on or after July 1, 2009, payment rates for
499.25physician and professional services shall be reduced by five percent, except that for the
499.26period July 1, 2009, through June 30, 2010, payment rates shall be reduced by 6.5 percent
499.27for the medical assistance and general assistance medical care programs, over the rates in
499.28effect on June 30, 2009. This reduction and the reductions in paragraph (d) do not apply
499.29to office or other outpatient visits, preventive medicine visits and family planning visits
499.30billed by physicians, advanced practice nurses, or physician assistants in a family planning
499.31agency or in one of the following primary care practices: general practice, general internal
499.32medicine, general pediatrics, general geriatrics, and family medicine. This reduction
499.33and the reductions in paragraph (d) do not apply to federally qualified health centers,
499.34rural health centers, and Indian health services. Effective October 1, 2009, payments
499.35made to managed care plans and county-based purchasing plans under sections 256B.69,
499.36256B.692 , and 256L.12 shall reflect the payment reduction described in this paragraph.
500.1(d) Effective for services rendered on or after July 1, 2010, payment rates for
500.2physician and professional services shall be reduced an additional seven percent over
500.3the five percent reduction in rates described in paragraph (c). This additional reduction
500.4does not apply to physical therapy services, occupational therapy services, and speech
500.5pathology and related services provided on or after July 1, 2010. This additional reduction
500.6does not apply to physician services billed by a psychiatrist or an advanced practice nurse
500.7with a specialty in mental health. Effective October 1, 2010, payments made to managed
500.8care plans and county-based purchasing plans under sections 256B.69, 256B.692, and
500.9256L.12 shall reflect the payment reduction described in this paragraph.
500.10(e) Effective for services rendered on or after September 1, 2011, through June 30,
500.112013, payment rates for physician and professional services shall be reduced three percent
500.12from the rates in effect on August 31, 2011. This reduction does not apply to physical
500.13therapy services, occupational therapy services, and speech pathology and related services.
500.14(f) Effective for services rendered on or after September 1, 2014, payment rates for
500.15physician and professional services, including physical therapy, occupational therapy,
500.16speech pathology, and mental health services shall be increased by five percent from the
500.17rates in effect on August 31, 2014. In calculating this rate increase, the commissioner
500.18shall not include in the base rate for August 31, 2014, the rate increase provided under
500.19section 256B.76, subdivision 7. This increase does not apply to federally qualified health
500.20centers, rural health centers, and Indian health services. Payments made to managed
500.21care plans and county-based purchasing plans shall not be adjusted to reflect payments
500.22under this paragraph.
500.23(g) Effective for services rendered on or after July 1, 2015, payment rates for
500.24physical therapy, occupational therapy, and speech pathology and related services provided
500.25by a hospital meeting the criteria specified in section 62Q.19, subdivision 1, paragraph
500.26(a), clause (4), shall be increased by 90 percent from the rates in effect on June 30, 2015.
500.27Payments made to managed care plans and county-based purchasing plans shall not be
500.28adjusted to reflect payments under this paragraph.
500.29(h) Effective for services provided on or after July 1, 2016, payment rates for
500.30primary care services that were eligible for the rate increase in 2013 and 2014 under
500.31section 1902(a)(13)(c) of the Social Security Act shall be increased by five percent when
500.32that service is provided by a provider meeting one of the following criteria:
500.33(1) a physician certified in the specialties of family medicine, general internal
500.34medicine, pediatric medicine, or obstetric and gynecological medicine; or
500.35(2) a physician assistant, advanced practice registered nurse, or physician other
500.36than a psychiatrist, for whom at least 60 percent of the services for which the provider
501.1received payment under medical assistance and MinnesotaCare were for primary care
501.2evaluation and management services or vaccine administration services under the Vaccines
501.3for Children program. The commissioner shall periodically validate the eligibility of
501.4providers who attest to meeting the criteria established under this clause.
501.5Effective January 1, 2017, capitation payments made to managed care plans
501.6and county-based purchasing plans shall be increased to reflect this increase, and the
501.7commissioner shall require the plans to pass on the full amount of the increase in the form
501.8of higher payment rates to eligible providers. This increase does not apply to federally
501.9qualified health centers, rural health centers, and Indian health services.

501.10    Sec. 47. Minnesota Statutes 2015 Supplement, section 256B.76, subdivision 2, is
501.11amended to read:
501.12    Subd. 2. Dental reimbursement. (a) Effective for services rendered on or after
501.13October 1, 1992, the commissioner shall make payments for dental services as follows:
501.14    (1) dental services shall be paid at the lower of (i) submitted charges, or (ii) 25
501.15percent above the rate in effect on June 30, 1992; and
501.16    (2) dental rates shall be converted from the 50th percentile of 1982 to the 50th
501.17percentile of 1989, less the percent in aggregate necessary to equal the above increases.
501.18    (b) Beginning October 1, 1999, the payment for tooth sealants and fluoride treatments
501.19shall be the lower of (1) submitted charge, or (2) 80 percent of median 1997 charges.
501.20    (c) Effective for services rendered on or after January 1, 2000, payment rates for
501.21dental services shall be increased by three percent over the rates in effect on December
501.2231, 1999.
501.23    (d) Effective for services provided on or after January 1, 2002, payment for
501.24diagnostic examinations and dental x-rays provided to children under age 21 shall be the
501.25lower of (1) the submitted charge, or (2) 85 percent of median 1999 charges.
501.26    (e) The increases listed in paragraphs (b) and (c) shall be implemented January 1,
501.272000, for managed care.
501.28(f) Effective for dental services rendered on or after October 1, 2010, by a
501.29state-operated dental clinic, payment shall be paid on a reasonable cost basis that is based
501.30on the Medicare principles of reimbursement. This payment shall be effective for services
501.31rendered on or after January 1, 2011, to recipients enrolled in managed care plans or
501.32county-based purchasing plans.
501.33(g) Beginning in fiscal year 2011, if the payments to state-operated dental clinics
501.34in paragraph (f), including state and federal shares, are less than $1,850,000 per fiscal
501.35year, a supplemental state payment equal to the difference between the total payments
502.1in paragraph (f) and $1,850,000 shall be paid from the general fund to state-operated
502.2services for the operation of the dental clinics.
502.3(h) If the cost-based payment system for state-operated dental clinics described in
502.4paragraph (f) does not receive federal approval, then state-operated dental clinics shall be
502.5designated as critical access dental providers under subdivision 4, paragraph (b), and shall
502.6receive the critical access dental reimbursement rate as described under subdivision 4,
502.7paragraph (a).
502.8(i) Effective for services rendered on or after September 1, 2011, through June 30,
502.92013, payment rates for dental services shall be reduced by three percent. This reduction
502.10does not apply to state-operated dental clinics in paragraph (f).
502.11(j) Effective for services rendered on or after January 1, 2014, payment rates for
502.12dental services shall be increased by five percent from the rates in effect on December
502.1331, 2013. This increase does not apply to state-operated dental clinics in paragraph (f),
502.14federally qualified health centers, rural health centers, and Indian health services. Effective
502.15January 1, 2014, payments made to managed care plans and county-based purchasing
502.16plans under sections 256B.69, 256B.692, and 256L.12 shall reflect the payment increase
502.17described in this paragraph.
502.18(k) Effective for services rendered on or after July 1, 2015, through December
502.1931, 2016, the commissioner shall increase payment rates for services furnished by
502.20dental providers located outside of the seven-county metropolitan area by the maximum
502.21percentage possible above the rates in effect on June 30, 2015, while remaining within
502.22the limits of funding appropriated for this purpose. This increase does not apply to
502.23state-operated dental clinics in paragraph (f), federally qualified health centers, rural health
502.24centers, and Indian health services. Effective January 1, 2016, through December 31,
502.252016, payments to managed care plans and county-based purchasing plans under sections
502.26256B.69 and 256B.692 shall reflect the payment increase described in this paragraph. The
502.27commissioner shall require managed care and county-based purchasing plans to pass on
502.28the full amount of the increase, in the form of higher payment rates to dental providers
502.29located outside of the seven-county metropolitan area.
502.30(l) Effective for services provided on or after January 1, 2017, the commissioner
502.31shall increase payment rates by 9.65 percent for dental services provided outside of
502.32the seven-county metropolitan area. This increase does not apply to state-operated
502.33dental clinics in paragraph (f), federally qualified health centers, rural health centers, or
502.34Indian health services. Effective January 1, 2017, payments to managed care plans and
502.35county-based purchasing plans under sections 256B.69 and 256B.692 shall reflect the
502.36payment increase described in this paragraph. The commissioner shall require managed
503.1care and county-based purchasing plans to pass on the full amount of the increase in the
503.2form of higher payment rates to dental providers for the dental services that are identified
503.3for the rate increase in this paragraph.
503.4(m) Effective for services provided on or after July 1, 2016, payment rates for
503.5preventive dental services shall be increased by five percent. Effective January 1, 2017,
503.6capitation payments made to managed care plans and county-based purchasing plans shall
503.7be increased to reflect this increase, and the commissioner shall require the plans to pass
503.8on the full amount of the increase in the form of higher payment rates for these services.
503.9This increase does not apply to state-operated dental clinics in paragraph (f), federally
503.10qualified health centers, rural health centers, and Indian health services.

503.11    Sec. 48. Minnesota Statutes 2015 Supplement, section 256B.76, subdivision 4, is
503.12amended to read:
503.13    Subd. 4. Critical access dental providers. (a) Effective for dental services rendered
503.14on or after January 1, 2002, The commissioner shall increase reimbursements to dentists
503.15and dental clinics deemed by the commissioner to be critical access dental providers. For
503.16dental services rendered on or after July 1, 2007 2016, the commissioner shall increase
503.17reimbursement by 35 37.5 percent above the reimbursement rate that would otherwise be
503.18paid to the critical access dental provider, except as specified under paragraph (b). The
503.19commissioner shall pay the managed care plans and county-based purchasing plans in
503.20amounts sufficient to reflect increased reimbursements to critical access dental providers
503.21as approved by the commissioner.
503.22(b) For dental services rendered on or after July 1, 2016, by a dental clinic or dental
503.23group that meets the critical access dental provider designation under paragraph (d),
503.24clause (4), and is owned and operated by a health maintenance organization licensed under
503.25chapter 62D, the commissioner shall increase reimbursement by 35 percent above the
503.26reimbursement rate that would otherwise be paid to the critical access provider.
503.27(b) (c) Critical access dental payments made under paragraph (a) or (b) for dental
503.28services provided by a critical access dental provider to an enrollee of a managed care plan
503.29or county-based purchasing plan must not reflect any capitated payments or cost-based
503.30payments from the managed care plan or county-based purchasing plan. The managed
503.31care plan or county-based purchasing plan must base the additional critical access dental
503.32payment on the amount that would have been paid for that service had the dental provider
503.33been paid according to the managed care plan or county-based purchasing plan's fee
503.34schedule that applies to dental providers that are not paid under a capitated payment
503.35or cost-based payment.
504.1(d) The commissioner shall designate the following dentists and dental clinics as
504.2critical access dental providers:
504.3    (1) nonprofit community clinics that:
504.4(i) have nonprofit status in accordance with chapter 317A;
504.5(ii) have tax exempt status in accordance with the Internal Revenue Code, section
504.6501(c)(3);
504.7(iii) are established to provide oral health services to patients who are low income,
504.8uninsured, have special needs, and are underserved;
504.9(iv) have professional staff familiar with the cultural background of the clinic's
504.10patients;
504.11(v) charge for services on a sliding fee scale designed to provide assistance to
504.12low-income patients based on current poverty income guidelines and family size;
504.13(vi) do not restrict access or services because of a patient's financial limitations
504.14or public assistance status; and
504.15(vii) have free care available as needed;
504.16    (2) federally qualified health centers, rural health clinics, and public health clinics;
504.17    (3) city or county hospital-based dental clinics owned and operated hospital-based
504.18dental clinics by a city, county, or former state hospital as defined in section 62Q.19,
504.19subdivision 1, paragraph (a), clause (4);
504.20(4) a dental clinic or dental group owned and operated by a nonprofit corporation in
504.21accordance with chapter 317A with more than 10,000 patient encounters per year with
504.22patients who are uninsured or covered by medical assistance or MinnesotaCare;
504.23(5) a dental clinic owned and operated by the University of Minnesota or the
504.24Minnesota State Colleges and Universities system; and
504.25(6) private practicing dentists if:
504.26(i) the dentist's office is located within a health professional shortage area as defined
504.27under Code of Federal Regulations, title 42, part 5, and United States Code, title 42,
504.28section 254E;
504.29(ii) more the seven-county metropolitan area and more than 50 percent of the
504.30dentist's patient encounters per year are with patients who are uninsured or covered by
504.31medical assistance or MinnesotaCare; and or
504.32(iii) the level of service provided by the dentist is critical to maintaining adequate
504.33levels of patient access within the service area in which the dentist operates.
504.34(ii) the dentist's office is located outside the seven-county metropolitan area and
504.35more than 25 percent of the dentist's patient encounters per year are with patients who are
504.36uninsured or covered by medical assistance or MinnesotaCare.

505.1    Sec. 49. Minnesota Statutes 2014, section 256B.761, is amended to read:
505.2256B.761 REIMBURSEMENT FOR MENTAL HEALTH SERVICES.
505.3(a) Effective for services rendered on or after July 1, 2001, payment for medication
505.4management provided to psychiatric patients, outpatient mental health services, day
505.5treatment services, home-based mental health services, and family community support
505.6services shall be paid at the lower of (1) submitted charges, or (2) 75.6 percent of the
505.750th percentile of 1999 charges.
505.8(b) Effective July 1, 2001, the medical assistance rates for outpatient mental health
505.9services provided by an entity that operates: (1) a Medicare-certified comprehensive
505.10outpatient rehabilitation facility; and (2) a facility that was certified prior to January 1,
505.111993, with at least 33 percent of the clients receiving rehabilitation services in the most
505.12recent calendar year who are medical assistance recipients, will be increased by 38 percent,
505.13when those services are provided within the comprehensive outpatient rehabilitation
505.14facility and provided to residents of nursing facilities owned by the entity.
505.15(c) The commissioner shall establish three levels of payment for mental health
505.16diagnostic assessment, based on three levels of complexity. The aggregate payment under
505.17the tiered rates must not exceed the projected aggregate payments for mental health
505.18diagnostic assessment under the previous single rate. The new rate structure is effective
505.19January 1, 2011, or upon federal approval, whichever is later.
505.20(d) In addition to rate increases otherwise provided, the commissioner may
505.21restructure coverage policy and rates to improve access to adult rehabilitative mental
505.22health services under section 256B.0623 and related mental health support services under
505.23section 256B.021, subdivision 4, paragraph (f), clause (2). For state fiscal years 2015 and
505.242016, the projected state share of increased costs due to this paragraph is transferred
505.25from adult mental health grants under sections 245.4661 and 256E.12. The transfer for
505.26fiscal year 2016 is a permanent base adjustment for subsequent fiscal years. Payments
505.27made to managed care plans and county-based purchasing plans under sections 256B.69,
505.28256B.692 , and 256L.12 shall reflect the rate changes described in this paragraph.
505.29(e) Effective for services provided on or after July 1, 2016, payments for outpatient
505.30mental health services shall be increased by five percent. Effective January 1, 2017,
505.31capitation payments made to managed care plans and county-based purchasing plans shall
505.32be increased to reflect this increase, and the commissioner shall require the plans to pass
505.33on the full amount of the increase in the form of higher payment rates for these services.
505.34This increase is not applicable to federally qualified health centers, rural health centers,
505.35Indian health services, other cost-based rates, rates that are negotiated with the county, or
505.36rates that are established by the federal government.

506.1    Sec. 50. [256B.7625] REIMBURSEMENT FOR EVIDENCE-BASED PUBLIC
506.2HEALTH NURSE HOME VISITS.
506.3Effective for services provided on or after January 1, 2017, prenatal and postpartum
506.4follow-up home visits provided by public health nurses using evidence-based models
506.5shall be paid $140 per visit. Evidence-based postpartum follow-up home visits must
506.6be administered by home visiting programs that meet the United States Department
506.7of Health and Human Services criteria for evidence-based models and identified by
506.8the commissioner of health as eligible services under the Maternal, Infant, and Early
506.9Childhood Home Visiting program. Home visits shall be targeted toward pregnant women
506.10and mothers with children up to three years of age. Effective January 1, 2017, capitation
506.11payments made to managed care plans and county-based purchasing plans shall be
506.12increased to reflect this increase and the commissioner shall require the plans to pass on
506.13the full amount of the increase in the form of higher payment rates to the providers.

506.14    Sec. 51. Minnesota Statutes 2015 Supplement, section 256B.766, is amended to read:
506.15256B.766 REIMBURSEMENT FOR BASIC CARE SERVICES.
506.16(a) Effective for services provided on or after July 1, 2009, total payments for basic
506.17care services, shall be reduced by three percent, except that for the period July 1, 2009,
506.18through June 30, 2011, total payments shall be reduced by 4.5 percent for the medical
506.19assistance and general assistance medical care programs, prior to third-party liability and
506.20spenddown calculation. Effective July 1, 2010, the commissioner shall classify physical
506.21therapy services, occupational therapy services, and speech-language pathology and
506.22related services as basic care services. The reduction in this paragraph shall apply to
506.23physical therapy services, occupational therapy services, and speech-language pathology
506.24and related services provided on or after July 1, 2010.
506.25(b) Payments made to managed care plans and county-based purchasing plans shall
506.26be reduced for services provided on or after October 1, 2009, to reflect the reduction
506.27effective July 1, 2009, and payments made to the plans shall be reduced effective October
506.281, 2010, to reflect the reduction effective July 1, 2010.
506.29(c) Effective for services provided on or after September 1, 2011, through June 30,
506.302013, total payments for outpatient hospital facility fees shall be reduced by five percent
506.31from the rates in effect on August 31, 2011.
506.32(d) Effective for services provided on or after September 1, 2011, through June
506.3330, 2013, total payments for ambulatory surgery centers facility fees, medical supplies
506.34and durable medical equipment not subject to a volume purchase contract, prosthetics
506.35and orthotics, renal dialysis services, laboratory services, public health nursing services,
507.1physical therapy services, occupational therapy services, speech therapy services,
507.2eyeglasses not subject to a volume purchase contract, hearing aids not subject to a volume
507.3purchase contract, and anesthesia services shall be reduced by three percent from the
507.4rates in effect on August 31, 2011.
507.5(e) Effective for services provided on or after September 1, 2014, payments
507.6for ambulatory surgery centers facility fees, hospice services, renal dialysis services,
507.7laboratory services, public health nursing services, eyeglasses not subject to a volume
507.8purchase contract, and hearing aids not subject to a volume purchase contract shall be
507.9increased by three percent and payments for outpatient hospital facility fees shall be
507.10increased by three percent. Payments made to managed care plans and county-based
507.11purchasing plans shall not be adjusted to reflect payments under this paragraph.
507.12(f) Payments for medical supplies and durable medical equipment not subject to a
507.13volume purchase contract, and prosthetics and orthotics, provided on or after July 1, 2014,
507.14through June 30, 2015, shall be decreased by .33 percent. Payments for medical supplies
507.15and durable medical equipment not subject to a volume purchase contract, and prosthetics
507.16and orthotics, provided on or after July 1, 2015, shall be increased by three percent from
507.17the rates as determined under paragraph (i).
507.18(g) Effective for services provided on or after July 1, 2015, payments for outpatient
507.19hospital facility fees, medical supplies and durable medical equipment not subject to a
507.20volume purchase contract, prosthetics and orthotics, and laboratory services to a hospital
507.21meeting the criteria specified in section 62Q.19, subdivision 1, paragraph (a), clause (4),
507.22shall be increased by 90 percent from the rates in effect on June 30, 2015. Payments made
507.23to managed care plans and county-based purchasing plans shall not be adjusted to reflect
507.24payments under this paragraph.
507.25(h) This section does not apply to physician and professional services, inpatient
507.26hospital services, family planning services, mental health services, dental services,
507.27prescription drugs, medical transportation, federally qualified health centers, rural health
507.28centers, Indian health services, and Medicare cost-sharing.
507.29(i) Effective July 1, 2015, the medical assistance payment rate for durable medical
507.30equipment, prosthetics, orthotics, or supplies shall be restored to the January 1, 2008,
507.31medical assistance fee schedule, updated to include subsequent rate increases in the
507.32Medicare and medical assistance fee schedules, and including following categories of
507.33durable medical equipment shall be individually priced items for the following categories:
507.34enteral nutrition and supplies, customized and other specialized tracheostomy tubes and
507.35supplies, electric patient lifts, and durable medical equipment repair and service. This
507.36paragraph does not apply to medical supplies and durable medical equipment subject to
508.1a volume purchase contract, products subject to the preferred diabetic testing supply
508.2program, and items provided to dually eligible recipients when Medicare is the primary
508.3payer for the item. The commissioner shall not apply any medical assistance rate
508.4reductions to durable medical equipment as a result of Medicare competitive bidding.
508.5(j) Effective July 1, 2015, medical assistance payment rates for durable medical
508.6equipment, prosthetics, orthotics, or supplies shall be increased as follows:
508.7(1) payment rates for durable medical equipment, prosthetics, orthotics, or supplies
508.8that were subject to the Medicare 2008 competitive bid shall be increased by 9.5 percent;
508.9and
508.10(2) payment rates for durable medical equipment, prosthetics, orthotics, or supplies
508.11on the medical assistance fee schedule, whether or not subject to the Medicare 2008
508.12competitive bid, shall be increased by 2.94 percent, with this increase being applied after
508.13calculation of any increased payment rate under clause (1).
508.14This paragraph does not apply to medical supplies and durable medical equipment subject
508.15to a volume purchase contract, products subject to the preferred diabetic testing supply
508.16program, items provided to dually eligible recipients when Medicare is the primary payer
508.17for the item, and individually priced items identified in paragraph (i). Payments made to
508.18managed care plans and county-based purchasing plans shall not be adjusted to reflect the
508.19rate increases in this paragraph.

508.20    Sec. 52. Minnesota Statutes 2014, section 256L.01, subdivision 1a, is amended to read:
508.21    Subd. 1a. Child. "Child" means an individual under 21 years of age, including the
508.22unborn child of a pregnant woman, an emancipated minor, and an emancipated minor's
508.23spouse.
508.24EFFECTIVE DATE.This section is effective the day following final enactment.

508.25    Sec. 53. Minnesota Statutes 2015 Supplement, section 256L.01, subdivision 5, is
508.26amended to read:
508.27    Subd. 5. Income. "Income" has the meaning given for modified adjusted gross
508.28income, as defined in Code of Federal Regulations, title 26, section 1.36B-1, and means
508.29a household's projected annual income for the applicable tax year current income, or if
508.30income fluctuates month to month, the income for the 12-month eligibility period.
508.31EFFECTIVE DATE.This section is effective July 1, 2017.

509.1    Sec. 54. Minnesota Statutes 2015 Supplement, section 256L.03, subdivision 5, is
509.2amended to read:
509.3    Subd. 5. Cost-sharing. (a) Except as otherwise provided in this subdivision, the
509.4MinnesotaCare benefit plan shall include the following cost-sharing requirements for all
509.5enrollees:
509.6    (1) $3 per prescription for adult enrollees;
509.7    (2) $25 for eyeglasses for adult enrollees;
509.8    (3) $3 per nonpreventive visit. For purposes of this subdivision, a "visit" means an
509.9episode of service which is required because of a recipient's symptoms, diagnosis, or
509.10established illness, and which is delivered in an ambulatory setting by a physician or
509.11physician ancillary, chiropractor, podiatrist, nurse midwife, advanced practice nurse,
509.12audiologist, optician, or optometrist;
509.13    (4) $6 for nonemergency visits to a hospital-based emergency room for services
509.14provided through December 31, 2010, and $3.50 effective January 1, 2011; and
509.15(5) a family deductible equal to $2.75 per month per family and adjusted annually
509.16by the percentage increase in the medical care component of the CPI-U for the period
509.17of September to September of the preceding calendar year, rounded to the next-higher
509.18five cent increment.
509.19    (b) Paragraph (a) does not apply to children under the age of 21 and to American
509.20Indians as defined in Code of Federal Regulations, title 42, section 447.51.
509.21    (c) Paragraph (a), clause (3), does not apply to mental health services.
509.22(d) MinnesotaCare reimbursements to fee-for-service providers and payments to
509.23managed care plans or county-based purchasing plans shall not be increased as a result of
509.24the reduction of the co-payments in paragraph (a), clause (4), effective January 1, 2011.
509.25(e) The commissioner, through the contracting process under section 256L.12,
509.26may allow managed care plans and county-based purchasing plans to waive the family
509.27deductible under paragraph (a), clause (5). The value of the family deductible shall not be
509.28included in the capitation payment to managed care plans and county-based purchasing
509.29plans. Managed care plans and county-based purchasing plans shall certify annually to the
509.30commissioner the dollar value of the family deductible.
509.31(f) The commissioner shall increase co-payments for covered services in a manner
509.32sufficient to reduce the actuarial value of the benefit to 94 percent for recipients with
509.33incomes not exceeding 200 percent of the federal poverty guidelines. The commissioner
509.34shall increase co-payments for covered services in a manner sufficient to reduce the
509.35actuarial value of the benefit to 87 percent for recipients with incomes greater than
509.36200 percent but not exceeding 250 percent of the federal poverty guidelines. The
510.1commissioner shall increase co-payments for covered services in a manner sufficient to
510.2reduce the actuarial value of the benefit to 80 percent for recipients with incomes greater
510.3than 250 percent but not exceeding 275 percent of the federal poverty guidelines. The
510.4cost-sharing changes described in this paragraph do not apply to eligible recipients or
510.5services exempt from cost-sharing under state law. The cost-sharing changes described in
510.6this paragraph shall not be implemented prior to January 1, 2016.
510.7(g) The cost-sharing changes authorized under paragraph (f) must satisfy the
510.8requirements for cost-sharing under the Basic Health Program as set forth in Code of
510.9Federal Regulations, title 42, sections 600.510 and 600.520.
510.10EFFECTIVE DATE.This section is effective January 1, 2018, or upon federal
510.11approval, whichever is later. The commissioner of human services shall notify the revisor
510.12of statutes when federal approval is obtained.

510.13    Sec. 55. Minnesota Statutes 2014, section 256L.04, subdivision 1, is amended to read:
510.14    Subdivision 1. Families with children. Families with children with family income
510.15above 133 percent of the federal poverty guidelines and equal to or less than 200 275
510.16percent of the federal poverty guidelines for the applicable family size shall be eligible
510.17for MinnesotaCare according to this section. All other provisions of sections 256L.01 to
510.18256L.18 shall apply unless otherwise specified. Children under age 19 with family income
510.19at or below 200 275 percent of the federal poverty guidelines and who are ineligible for
510.20medical assistance by sole reason of the application of federal household composition
510.21rules for medical assistance are eligible for MinnesotaCare.
510.22EFFECTIVE DATE.This section is effective January 1, 2018, or upon federal
510.23approval, whichever is later. The commissioner of human services shall notify the revisor
510.24of statutes when federal approval is obtained.

510.25    Sec. 56. Minnesota Statutes 2014, section 256L.04, subdivision 1a, is amended to read:
510.26    Subd. 1a. Social Security number required. (a) Individuals and families applying
510.27for MinnesotaCare coverage must provide a Social Security number if required by Code
510.28of Federal Regulations, title 45, section 155.310(a)(3).
510.29(b) The commissioner shall not deny eligibility to an otherwise eligible applicant
510.30who has applied for a Social Security number and is awaiting issuance of that Social
510.31Security number.
510.32(c) Newborns enrolled under section 256L.05, subdivision 3, are exempt from the
510.33requirements of this subdivision.
511.1(d) Individuals who refuse to provide a Social Security number because of
511.2well-established religious objections are exempt from the requirements of this subdivision.
511.3The term "well-established religious objections" has the meaning given in Code of Federal
511.4Regulations, title 42, section 435.910.
511.5EFFECTIVE DATE.This section is effective the day following final enactment.

511.6    Sec. 57. Minnesota Statutes 2014, section 256L.04, subdivision 2, is amended to read:
511.7    Subd. 2. Third-party liability, paternity, and other medical support. (a) To be
511.8eligible for MinnesotaCare, Individuals and families must may cooperate with the state
511.9agency to identify potentially liable third-party payers and assist the state in obtaining
511.10third-party payments. "Cooperation" includes, but is not limited to, complying with
511.11the notice requirements in section 256B.056, subdivision 9, identifying any third party
511.12who may be liable for care and services provided under MinnesotaCare to the enrollee,
511.13providing relevant information to assist the state in pursuing a potentially liable third
511.14party, and completing forms necessary to recover third-party payments.
511.15(b) A parent, guardian, relative caretaker, or child enrolled in the MinnesotaCare
511.16program must cooperate with the Department of Human Services and the local agency in
511.17establishing the paternity of an enrolled child and in obtaining medical care support and
511.18payments for the child and any other person for whom the person can legally assign rights,
511.19in accordance with applicable laws and rules governing the medical assistance program. A
511.20child shall not be ineligible for or disenrolled from the MinnesotaCare program solely
511.21because the child's parent, relative caretaker, or guardian fails to cooperate in establishing
511.22paternity or obtaining medical support.
511.23EFFECTIVE DATE.This section is effective the day following final enactment.

511.24    Sec. 58. Minnesota Statutes 2014, section 256L.04, subdivision 7, is amended to read:
511.25    Subd. 7. Single adults and households with no children. The definition of eligible
511.26persons includes all individuals and families with no children who have incomes that
511.27are above 133 percent and equal to or less than 200 275 percent of the federal poverty
511.28guidelines for the applicable family size.
511.29EFFECTIVE DATE.This section is effective January 1, 2018, or upon federal
511.30approval, whichever is later. The commissioner of human services shall notify the revisor
511.31of statutes when federal approval is obtained.

512.1    Sec. 59. Minnesota Statutes 2015 Supplement, section 256L.04, subdivision 7b,
512.2is amended to read:
512.3    Subd. 7b. Annual income limits adjustment. The commissioner shall adjust the
512.4income limits under this section annually on January each July 1 as provided described in
512.5Code of Federal Regulations, title 26, section 1.36B-1(h) section 256B.056, subdivision 1c.
512.6EFFECTIVE DATE.This section is effective July 1, 2017.

512.7    Sec. 60. Minnesota Statutes 2015 Supplement, section 256L.05, subdivision 3a,
512.8is amended to read:
512.9    Subd. 3a. Redetermination of eligibility. (a) An enrollee's eligibility must be
512.10redetermined on an annual basis, in accordance with Code of Federal Regulations, title
512.1142, section 435.916(a). The period of eligibility is the entire calendar year following the
512.12year in which eligibility is redetermined. Beginning in calendar year 2015, eligibility
512.13redeterminations shall occur during the open enrollment period for qualified health plans as
512.14specified in Code of Federal Regulations, title 45, section 155.410. The 12-month eligibility
512.15period begins the month of application. Beginning July 1, 2017, the commissioner shall
512.16adjust the eligibility period for enrollees to implement renewals throughout the year
512.17according to guidance from the Centers for Medicare and Medicaid Services.
512.18    (b) Each new period of eligibility must take into account any changes in
512.19circumstances that impact eligibility and premium amount. Coverage begins as provided
512.20in section 256L.06.
512.21EFFECTIVE DATE.This section is effective July 1, 2017.

512.22    Sec. 61. Minnesota Statutes 2015 Supplement, section 256L.06, subdivision 3, is
512.23amended to read:
512.24    Subd. 3. Commissioner's duties and payment. (a) Premiums are dedicated to the
512.25commissioner for MinnesotaCare.
512.26    (b) The commissioner shall develop and implement procedures to: (1) require
512.27enrollees to report changes in income; (2) adjust sliding scale premium payments, based
512.28upon both increases and decreases in enrollee income, at the time the change in income
512.29is reported; and (3) disenroll enrollees from MinnesotaCare for failure to pay required
512.30premiums. Failure to pay includes payment with a dishonored check, a returned automatic
512.31bank withdrawal, or a refused credit card or debit card payment. The commissioner may
512.32demand a guaranteed form of payment, including a cashier's check or a money order, as
512.33the only means to replace a dishonored, returned, or refused payment.
513.1    (c) Premiums are calculated on a calendar month basis and may be paid on a
513.2monthly, quarterly, or semiannual basis, with the first payment due upon notice from the
513.3commissioner of the premium amount required. The commissioner shall inform applicants
513.4and enrollees of these premium payment options. Premium payment is required before
513.5enrollment is complete and to maintain eligibility in MinnesotaCare. Premium payments
513.6received before noon are credited the same day. Premium payments received after noon
513.7are credited on the next working day.
513.8    (d) Nonpayment of the premium will result in disenrollment from the plan effective
513.9for the calendar month following the month for which the premium was due. Persons
513.10disenrolled for nonpayment may not reenroll prior to the first day of the month following
513.11the payment of an amount equal to two months' premiums.
513.12    (e) The commissioner shall forgive the past-due premium for persons disenrolled
513.13under paragraph (d) prior to issuing a premium invoice for the fourth month following
513.14disenrollment.
513.15EFFECTIVE DATE.This section is effective the day following final enactment.

513.16    Sec. 62. Minnesota Statutes 2014, section 256L.07, subdivision 1, is amended to read:
513.17    Subdivision 1. General requirements. Individuals enrolled in MinnesotaCare
513.18under section 256L.04, subdivision 1, and individuals enrolled in MinnesotaCare under
513.19section 256L.04, subdivision 7, whose income increases above 200 percent of the federal
513.20poverty guidelines the maximum income eligibility limit in section 256L.04, subdivision 1
513.21or 7, are no longer eligible for the program and shall be disenrolled by the commissioner.
513.22For persons disenrolled under this subdivision, MinnesotaCare coverage terminates the
513.23last day of the calendar month following the month in which the commissioner determines
513.24that sends advance notice in accordance with Code of Federal Regulations, title 42, section
513.25431.211, that indicates the income of a family or individual exceeds program income limits.
513.26EFFECTIVE DATE.This section is effective the day following final enactment.

513.27    Sec. 63. Minnesota Statutes 2014, section 256L.11, subdivision 7, is amended to read:
513.28    Subd. 7. Critical access dental providers. Effective for dental services provided to
513.29MinnesotaCare enrollees on or after January 1, 2007, through August 31, 2011 July 1,
513.302016, the commissioner shall increase payment rates to dentists and dental clinics deemed
513.31by the commissioner to be critical access providers under section 256B.76, subdivision
513.324, by 50 percent above the payment rate that would otherwise be paid to the provider.
513.33Effective for dental services provided on or after September 1, 2011, the commissioner
514.1shall increase the payment rate by 30 32.5 percent above the payment rate that would
514.2otherwise be paid to the provider, except for a dental clinic or dental group described in
514.3section 256B.76, subdivision 4, paragraph (b), in which the commissioner shall increase
514.4the payment rate by 30 percent above the payment rate that would otherwise be paid to
514.5the provider. The commissioner shall pay the prepaid health plans under contract with
514.6the commissioner amounts sufficient to reflect this rate increase. The prepaid health plan
514.7must pass this rate increase to providers who have been identified by the commissioner as
514.8critical access dental providers under section 256B.76, subdivision 4.

514.9    Sec. 64. Minnesota Statutes 2015 Supplement, section 256L.15, subdivision 1, is
514.10amended to read:
514.11    Subdivision 1. Premium determination for MinnesotaCare. (a) Families with
514.12children and individuals shall pay a premium determined according to subdivision 2.
514.13    (b) Members of the military and their families who meet the eligibility criteria
514.14for MinnesotaCare upon eligibility approval made within 24 months following the end
514.15of the member's tour of active duty shall have their premiums paid by the commissioner.
514.16The effective date of coverage for an individual or family who meets the criteria of this
514.17paragraph shall be the first day of the month following the month in which eligibility is
514.18approved. This exemption applies for 12 months.
514.19(c) Beginning July 1, 2009, American Indians enrolled in MinnesotaCare and their
514.20families shall have their premiums waived by the commissioner in accordance with section
514.215006 of the American Recovery and Reinvestment Act of 2009, Public Law 111-5. An
514.22individual must document indicate status as an American Indian, as defined under Code of
514.23Federal Regulations, title 42, section 447.50, to qualify for the waiver of premiums. The
514.24commissioner shall accept attestation of an individual's status as an American Indian as
514.25verification until the United States Department of Health and Human Services approves
514.26an electronic data source for this purpose.
514.27(d) For premiums effective August 1, 2015, and after, the commissioner, after
514.28consulting with the chairs and ranking minority members of the legislative committees
514.29with jurisdiction over human services, shall increase premiums under subdivision 2
514.30for recipients based on June 2015 program enrollment. Premium increases shall be
514.31sufficient to increase projected revenue to the fund described in section 16A.724 by at
514.32least $27,800,000 for the biennium ending June 30, 2017. The commissioner shall publish
514.33the revised premium scale on the Department of Human Services Web site and in the State
514.34Register no later than June 15, 2015. The revised premium scale applies to all premiums
514.35on or after August 1, 2015, in place of the scale under subdivision 2.
515.1(e) By July 1, 2015, the commissioner shall provide the chairs and ranking minority
515.2members of the legislative committees with jurisdiction over human services the revised
515.3premium scale effective August 1, 2015, and statutory language to codify the revised
515.4premium schedule.
515.5(f) Premium changes authorized under paragraph (d) must only apply to enrollees
515.6not otherwise excluded from paying premiums under state or federal law. Premium
515.7changes authorized under paragraph (d) must satisfy the requirements for premiums for
515.8the Basic Health Program under title 42 of Code of Federal Regulations, section 600.505.
515.9EFFECTIVE DATE.This section is effective the day following final enactment.

515.10    Sec. 65. Minnesota Statutes 2015 Supplement, section 256L.15, subdivision 2, is
515.11amended to read:
515.12    Subd. 2. Sliding fee scale; monthly individual or family income. (a) The
515.13commissioner shall establish a sliding fee scale to determine the percentage of monthly
515.14individual or family income that households at different income levels must pay to obtain
515.15coverage through the MinnesotaCare program. The sliding fee scale must be based on the
515.16enrollee's monthly individual or family income.
515.17    (b) Beginning January 1, 2014, MinnesotaCare enrollees shall pay premiums
515.18according to the premium scale specified in paragraph (d).
515.19(c) Paragraph (b) does not apply to:
515.20(1) children 20 years of age or younger; and
515.21(2) individuals with household incomes below 35 percent of the federal poverty
515.22guidelines.
515.23    (d) The following premium scale is established for each individual in the household
515.24who is 21 years of age or older and enrolled in MinnesotaCare:

515.25 515.26	Federal Poverty Guideline Greater than or Equal to	Less than	Individual Premium Amount
515.27	35%	55%	$4
515.28	55%	80%	$6
515.29	80%	90%	$8
515.30	90%	100%	$10
515.31	100%	110%	$12
515.32	110%	120%	$14
515.33	120%	130%	$15
515.34	130%	140%	$16
515.35	140%	150%	$25
515.36	150%	160%	$29
515.37	160%	170%	$33
516.1	170%	180%	$38
516.2	180%	190%	$43
516.3	190%		$50

516.4(e) The commissioner shall extend the premium scale specified in paragraph (d) to
516.5include individuals with incomes greater than 200 percent but not exceeding 275 percent
516.6of the federal poverty guidelines, such that individuals with incomes at 201 percent of
516.7the federal poverty guidelines shall pay 4.09 percent of income, individuals with incomes
516.8at 251 percent of the federal poverty guidelines shall pay 7.26 percent of income, and
516.9individuals with incomes at 275 percent of the federal poverty guidelines shall pay 8.83
516.10percent of income. The commissioner shall set other premium amounts in a proportional
516.11manner using evenly spaced income steps.
516.12EFFECTIVE DATE.This section is effective January 1, 2018, or upon federal
516.13approval, whichever is later. The commissioner of human services shall notify the revisor
516.14of statutes when federal approval is obtained.

516.15    Sec. 66. FEDERAL WAIVER.
516.16    Subdivision 1. Waiver goals. (a) The commissioner of human services, in
516.17consultation with the commissioners of health and commerce, and the executive director
516.18of MNsure, shall seek the necessary federal waiver authority from the United States
516.19Department of Health and Human Services to design and operate a seamless and
516.20sustainable health coverage continuum that reduces barriers to care, eases the transition
516.21across the continuum for consumers, and ensures access to comprehensive and affordable
516.22health care coverage. The waiver request shall include all proposals described in this
516.23section and the commissioner shall seek authority to secure all federal funding available
516.24to meet the proposals as described under this section. This includes available Medicaid
516.25funding and all premium tax credits and cost-sharing subsidies available under United
516.26States Code, title 26, section 36B, and United States Code, title 42, section 18071, as
516.27applicable to each proposal.
516.28(b) The waiver request must incorporate:
516.29(1) the alignment of eligibility, benefits, and enrollment requirements across
516.30insurance affordability programs, including a common income methodology, 12 months of
516.31continuous eligibility for families and children enrolled in medical assistance, consistent
516.32household composition rules, and a common definition of "American Indian";
516.33(2) multipayer alignment across the health care coverage continuum that promotes
516.34health equity, including consistent payment methodologies across payers and products and
517.1similar coverage and contracting requirements across insurance affordability programs
517.2or product options; and
517.3(3) innovative reforms to promote cost neutrality and sustainability, including
517.4prospective and outcome-based payment for collaborative organizations and primary
517.5care providers.
517.6(c) In developing this federal waiver request, the commissioner shall coordinate with
517.7the appropriate state agencies and consult with stakeholder groups and consumers. The
517.8commissioner shall work with the commissioner of health for the purpose of analyzing the
517.9differences in the utilization of services and provider payment rates across markets. The
517.10commissioner may prioritize through separate waiver submissions the proposals described
517.11in paragraph (b) and subdivisions 3, 4, and 5 to the extent necessary to ensure conformity
517.12with the federal waiver application requirements.
517.13(d) The commissioner is authorized to seek any available waivers or federal
517.14approvals to accomplish the goals and proposals under this section prior to January 1, 2018.
517.15    Subd. 2. Expansion of the MinnesotaCare program. (a) As part of the waiver
517.16request under subdivision 1, the commissioner shall seek authority to:
517.17(1) expand MinnesotaCare to include persons with incomes up to 275 percent of
517.18federal poverty guidelines under section 1332 of the Affordable Care Act;
517.19(2) modify MinnesotaCare premiums and cost-sharing to smooth affordability cliffs
517.20between insurance affordability programs; and
517.21(3) receive for all MinnesotaCare enrollees, including but not limited to those with
517.22incomes at or below 275 percent of the federal poverty guidelines, the full amount of
517.23advanced premium tax credits, and cost-sharing reductions that these individuals would
517.24have otherwise received if they obtained qualified health plan coverage through MNsure.
517.25(b) The commissioner shall notify the chairs and ranking minority members of the
517.26legislative committees with jurisdiction over health care finances when federal approval is
517.27obtained for this proposal.
517.28(c) Upon federal approval, the commissioner is authorized to accept and expend
517.29federal funds that support the purpose of this subdivision.
517.30    Subd. 3. Access to employer health coverage. The commissioner shall include
517.31in the waiver request under subdivision 1 the ability for individuals who have access to
517.32health coverage through a spouse's or parent's employer that is deemed minimum essential
517.33coverage under Code of Federal Regulations, title 26, section 1.36B-2, and the portion of
517.34the annual premium the employee pays for employee and dependent coverage exceeds
517.35the required contribution percentage as described in Code of Federal Regulations, title
517.3626, section 1.36B-2, to:
518.1(1) enroll in the MinnesotaCare program if all eligibility requirements are met,
518.2except for the eligibility requirements in Minnesota Statutes, section 256L.07, subdivision
518.32, paragraph (a); and
518.4(2) be eligible for advanced premium tax credits and cost-sharing credits under Code
518.5of Federal Regulations, title 26, section 1.36B-2, as applicable to their household income
518.6when purchasing a qualified health plan through MNsure, for individuals whose income is
518.7above the maximum income eligibility limit under Minnesota Statutes, section 256L.04,
518.8subdivision 1 or 7, but less than 400 percent of federal poverty guidelines.
518.9    Subd. 4. MinnesotaCare public option. (a) The commissioner shall include as
518.10part of the waiver request under subdivision 1, the authority to establish a public option
518.11that allows individuals with income above the maximum income eligibility limit under
518.12Minnesota Statutes, section 256L.04, subdivision 1 or 7, and who otherwise meet the
518.13MinnesotaCare eligibility requirements to purchase coverage through MinnesotaCare
518.14instead of purchasing a qualified health plan through MNsure, or an individual health
518.15plan offered outside of MNsure. The MinnesotaCare public option shall coordinate
518.16the administration of the public option with the MinnesotaCare program to maximize
518.17efficiency and improve the continuity of care. The commissioner shall seek to implement
518.18mechanisms to ensure the long-term financial sustainability of MinnesotaCare and
518.19mitigate any adverse financial impacts to MNsure. These mechanisms must address issues
518.20related to minimizing adverse selection; the state's financial risk and contribution; and
518.21impacts to premiums in the individual and group insurance market both inside and outside
518.22of MNsure, to health care provider payment rates, and to the financial stability of urban,
518.23rural, and safety net providers.
518.24(b) The commissioner shall also seek federal authority for individuals who qualify
518.25for the purchase option to use advanced tax credits and cost-sharing credits, if eligible, to
518.26purchase the public option and to permit the public option to be offered through MNsure
518.27to be compared with qualified health plans.
518.28(c) The public option shall include, at a minimum, the following:
518.29(1) establishment of an annual per enrollee premium rate similar to the average rate
518.30paid by the state to managed care plan contractors under Minnesota Statutes, section
518.31256L.12;
518.32(2) establishment of a benefit set equal to the benefits covered under MinnesotaCare
518.33under Minnesota Statutes, section 256L.03;
518.34(3) limiting annual enrollment to the same annual open enrollment periods
518.35established for MNsure;
519.1(4) ability of the commissioner to adjust the purchase option's actuarial value to a
519.2value no lower than 87 percent;
519.3(5) reimbursement mechanisms for addressing potential reductions in funding for
519.4MNsure operations; and
519.5(6) reimbursement mechanisms for addressing potential increased cost to the
519.6MinnesotaCare program under Minnesota Statutes, chapter 256L.
519.7(d) In preparing the actuarial analysis necessary for this portion of the waiver
519.8request, the commissioner may coordinate with the University of Minnesota School of
519.9Public Health.
519.10    Subd. 5. Alternative open enrollment. (a) The commissioner, in consultation with
519.11the commissioners of commerce and health, shall include in the waiver request under
519.12subdivision 1 the necessary approval to replace the annual open enrollment period in
519.13the individual health market required under the Affordable Care Act with an alternative
519.14open enrollment period for qualified health plans offered through MNsure and individual
519.15health plans offered outside of MNsure. The alternative open enrollment period must be
519.16of equal length as the existing annual open enrollment period and must not begin before
519.17the federal individual tax filing deadline.
519.18(b) The enrollment period described in paragraph (a) shall be limited to a specific
519.19period of time. Special open enrollment periods as defined under the Affordable Care Act
519.20shall continue to apply.
519.21    Subd. 6. Report. On March 1, 2017, the commissioner shall report to the chairs
519.22and ranking minority members of the legislative committees with jurisdiction over health
519.23care policy and finance on the progress of receiving a federal waiver, including the results
519.24of actuarial analyses on the broader impact to the health insurance market required for
519.25waiver submission and recommendations on necessary statutory changes, including the
519.26expected fiscal impact to the state.
519.27    Subd. 7. Implementation. Implementation of the proposals contained in the waiver
519.28request under this section shall be contingent upon necessary federal approval, and
519.29subsequent statutory changes and state financial contributions, except for subdivision 2,
519.30which shall be effective January 1, 2018, or upon federal approval, whichever is later.
519.31EFFECTIVE DATE.This section is effective the day following final enactment.

519.32    Sec. 67. DIRECTION TO COMMISSIONER OF HUMAN SERVICES; NOTICE.
519.33For all individuals that received medical assistance non-long term care services on
519.34or after July 1, 2014, the commissioner of human services must provide notice of the 2016
520.1amendments to Minnesota Statutes, section 256B.15, subdivisions 1a and 2. The notice
520.2must be provided within 90 days from the date of enactment.

520.3    Sec. 68. REQUEST FOR INFORMATION ON A PRIVATIZED STATE-BASED
520.4MARKETPLACE MODEL.
520.5(a) The commissioner of management and budget, in consultation with the
520.6commissioners of human services, commerce, health, MN.IT, the executive director of
520.7MNsure, and interested stakeholders, shall develop a request for information to consider
520.8the feasibility for a private vendor to provide the technology functionality for the
520.9individual market and small business health options program (SHOP) market currently
520.10provided by MNsure. The request shall seek options for a privately run automated system
520.11and may involve existing "off-the-shelf" products or customized solutions, or both. The
520.12system must provide certain core functions including eligibility and enrollment functions,
520.13plan management, consumer outreach and assistance, and the ability for consumers to
520.14compare and choose different qualified health plans or group health plans. The system
520.15must have account transfer functionality to accept application handoffs compatible with
520.16the Medicaid and MinnesotaCare eligibility and enrollment system maintained by the
520.17Department of Human Services.
520.18(b) The commissioner shall report to the governor and legislature the results of
520.19the request for information and an analysis of the option for a privatized marketplace,
520.20including estimated costs by December 15, 2016.

520.21    Sec. 69. REPEALER.
520.22(a) Minnesota Statutes 2014, section 256B.059, subdivision 1a, is repealed.
520.23(b) Minnesota Statutes 2014, sections 256L.04, subdivisions 2a and 8; 256L.22;
520.24256L.24; 256L.26; and 256L.28, are repealed.
520.25EFFECTIVE DATE.Paragraph (a) is effective June 1, 2016. Paragraph (b) is
520.26effective the day following final enactment.

520.27ARTICLE 26

520.28HEALTH DEPARTMENT

520.29    Section 1. Minnesota Statutes 2014, section 13.3805, is amended by adding a
520.30subdivision to read:
520.31    Subd. 5. Radon testing and mitigation data. Data maintained by the Department
520.32of Health that identify the address of a radon testing or mitigation site, and the name,
521.1address, e-mail address, and telephone number of residents and residential property owners
521.2of a radon testing or mitigation site, are private data on individuals or nonpublic data.
521.3EFFECTIVE DATE.This section is effective the day following final enactment.

521.4    Sec. 2. Minnesota Statutes 2014, section 13.3806, subdivision 22, is amended to read:
521.5    Subd. 22. Medical use of cannabis data. Data collected under the registry program
521.6authorized under sections 152.22 to 152.37 are governed by sections 152.25, subdivision
521.71; 152.27, subdivision 8; 152.28, subdivision 2; and 152.37, subdivision 3.

521.8    Sec. 3. Minnesota Statutes 2014, section 62D.04, subdivision 1, is amended to read:
521.9    Subdivision 1. Application review. Upon receipt of an application for a certificate
521.10of authority, the commissioner of health shall determine whether the applicant for a
521.11certificate of authority has:
521.12(a) demonstrated the willingness and potential ability to assure that health care
521.13services will be provided in such a manner as to enhance and assure both the availability
521.14and accessibility of adequate personnel and facilities;
521.15(b) arrangements for an ongoing evaluation of the quality of health care, including a
521.16peer review process;
521.17(c) a procedure to develop, compile, evaluate, and report statistics relating to the
521.18cost of its operations, the pattern of utilization of its services, the quality, availability and
521.19accessibility of its services, and such other matters as may be reasonably required by
521.20regulation of the commissioner of health;
521.21(d) reasonable provisions for emergency and out of area health care services;
521.22(e) demonstrated that it is financially responsible and may reasonably be expected to
521.23meet its obligations to enrollees and prospective enrollees. In making this determination,
521.24the commissioner of health shall require the amount of initial net worth required in section
521.2562D.042 , compliance with the risk-based capital standards under sections 60A.50 to
521.2660A.592 , the deposit required in section 62D.041, and in addition shall consider:
521.27(1) the financial soundness of its arrangements for health care services and the
521.28proposed schedule of charges used in connection therewith;
521.29(2) arrangements which will guarantee for a reasonable period of time the continued
521.30availability or payment of the cost of health care services in the event of discontinuance of
521.31the health maintenance organization; and
521.32(3) agreements with providers for the provision of health care services;
522.1(f) demonstrated that it will assume full financial risk on a prospective basis for
522.2the provision of comprehensive health maintenance services, including hospital care;
522.3provided, however, that the requirement in this paragraph shall not prohibit the following:
522.4(1) a health maintenance organization from obtaining insurance or making
522.5other arrangements (i) for the cost of providing to any enrollee comprehensive health
522.6maintenance services, the aggregate value of which exceeds $5,000 in any year, (ii) for
522.7the cost of providing comprehensive health care services to its members on a nonelective
522.8emergency basis, or while they are outside the area served by the organization, or (iii) for
522.9not more than 95 percent of the amount by which the health maintenance organization's
522.10costs for any of its fiscal years exceed 105 percent of its income for such fiscal years; and
522.11(2) a health maintenance organization from having a provision in a group health
522.12maintenance contract allowing an adjustment of premiums paid based upon the actual
522.13health services utilization of the enrollees covered under the contract, except that at no
522.14time during the life of the contract shall the contract holder fully self-insure the financial
522.15risk of health care services delivered under the contract. Risk sharing arrangements shall
522.16be subject to the requirements of sections 62D.01 to 62D.30;
522.17(g) demonstrated that it has made provisions for and adopted a conflict of interest
522.18policy applicable to all members of the board of directors and the principal officers of the
522.19health maintenance organization. The conflict of interest policy shall include the procedures
522.20described in section 317A.255, subdivisions 1 and 2. However, the commissioner is
522.21not precluded from finding that a particular transaction is an unreasonable expense as
522.22described in section 62D.19 even if the directors follow the required procedures; and
522.23(h) otherwise met the requirements of sections 62D.01 to 62D.30.

522.24    Sec. 4. Minnesota Statutes 2014, section 62D.08, subdivision 3, is amended to read:
522.25    Subd. 3. Report requirements. Such report shall be on forms prescribed by the
522.26commissioner of health, and shall include:
522.27(a) a financial statement of the organization, including its balance sheet and receipts
522.28and disbursements for the preceding year certified by an independent certified public
522.29accountant, reflecting at least (1) all prepayment and other payments received for health
522.30care services rendered, (2) expenditures to all providers, by classes or groups of providers,
522.31and insurance companies or nonprofit health service plan corporations engaged to fulfill
522.32obligations arising out of the health maintenance contract, (3) expenditures for capital
522.33improvements, or additions thereto, including but not limited to construction, renovation
522.34or purchase of facilities and capital equipment, and (4) a supplementary statement of
523.1assets, liabilities, premium revenue, and expenditures for risk sharing business under
523.2section 62D.04, subdivision 1, on forms prescribed by the commissioner;
523.3(b) the number of new enrollees enrolled during the year, the number of group
523.4enrollees and the number of individual enrollees as of the end of the year and the number
523.5of enrollees terminated during the year;
523.6(c) a summary of information compiled pursuant to section 62D.04, subdivision 1,
523.7clause (c), in such form as may be required by the commissioner of health;
523.8(d) a report of the names and addresses of all persons set forth in section 62D.03,
523.9subdivision 4 , clause (c), who were associated with the health maintenance organization
523.10or the major participating entity during the preceding year, and the amount of wages,
523.11expense reimbursements, or other payments to such individuals for services to the health
523.12maintenance organization or the major participating entity, as those services relate to the
523.13health maintenance organization, including a full disclosure of all financial arrangements
523.14during the preceding year required to be disclosed pursuant to section 62D.03, subdivision
523.154 , clause (d);
523.16(e) a separate report addressing health maintenance contracts sold to individuals
523.17covered by Medicare, title XVIII of the Social Security Act, as amended, including the
523.18information required under section 62D.30, subdivision 6; and
523.19(f) data on the number of complaints received and the category of each complaint as
523.20defined by the commissioner. The categories must include but are not limited to access,
523.21communication and behavior, health plan administration, facilities and environment,
523.22coordination of care, and technical competence and appropriateness. The commissioner
523.23must define complaint categories to be used by each health maintenance organization by
523.24July 1, 2017, and the categories must be used by each health maintenance organization
523.25beginning calendar year 2018; and
523.26(f) (g) such other information relating to the performance of the health maintenance
523.27organization as is reasonably necessary to enable the commissioner of health to carry out
523.28the duties under sections 62D.01 to 62D.30.

523.29    Sec. 5. [62D.115] QUALITY OF CARE COMPLAINTS.
523.30    Subdivision 1. Quality of care complaint. For purposes of this section, "quality of
523.31care complaint" means an expressed dissatisfaction regarding health care services resulting
523.32in potential or actual harm to an enrollee. Quality of care complaints may include but are
523.33not limited to concerns related to provider and staff competence, clinical appropriateness
523.34of services, communications, behavior, facility and environmental considerations, or other
523.35factors that could impact the quality of health care services.
524.1    Subd. 2. Quality of care complaint investigation. Each health maintenance
524.2organization shall develop and implement policies and procedures for the receipt,
524.3investigation, and resolution of quality of care complaints. The policy and procedures
524.4must be in writing and must meet the requirements in paragraphs (a) to (g).
524.5(a) A health maintenance organization's definition for quality of care complaints
524.6must include the concerns identified in subdivision 1.
524.7(b) A health maintenance organization must classify each quality of care complaint
524.8received by severity level as defined by the commissioner and must have investigation
524.9procedures for each level of severity.
524.10(c) Any complaint with an allegation regarding quality of care or service must
524.11be investigated by the health maintenance organization and the health maintenance
524.12organization must document the investigation process, including documentation that the
524.13complaint was received and investigated, and that each allegation was addressed. The
524.14investigation record must include all related documents, correspondence, summaries,
524.15discussions, consultations, and conferences held in relation to the investigation of the
524.16quality of care complaint in accordance with subdivision 4.
524.17(d) The resolution of a complaint must be supported by evidence and may include
524.18a corrective action plan or a formal response from a provider to the health maintenance
524.19organization if a formal response was submitted to the health maintenance organization.
524.20(e) A medical director review shall be conducted as part of the investigation process
524.21when there is potential for patient harm.
524.22(f) Each quality of care complaint received by a health maintenance organization
524.23must be tracked and trended by the health maintenance organization according to provider
524.24type and the following type of quality of care issue: behavior, facility, environmental,
524.25or technical competence.
524.26(g) The commissioner shall define the quality of care complaints severity levels by
524.27July 1, 2017.
524.28    Subd. 3. Reporting. (a) Quality of care complaints must be reported as part of the
524.29requirements under section 62D.08, subdivision 3.
524.30(b) All quality of care complaints received by a health maintenance organization
524.31that meet the highest level of severity as defined by the commissioner under subdivision 2
524.32must be reported to the commissioner within ten calendar days of receipt of the complaint.
524.33The commissioner shall investigate each quality of care complaint received under this
524.34paragraph and may contract with experts in health care or medical practice to assist with
524.35the investigation. The commissioner's investigative process shall include the notification
524.36and investigation requirements described in section 214.103 to the extent applicable. The
525.1commissioner shall furnish to the person who made the complaint a written description
525.2of the commissioner's investigative process and any action taken by the commissioner
525.3relating to the complaint, including whether the complaint was referred to the Office of
525.4Health Facility Complaints or a health-related licensing board. If the commissioner takes
525.5corrective action or requires the health maintenance organization to make any corrective
525.6measures of any kind, the nature of the complaint and the action or measures required to
525.7be taken are public data.
525.8(c) The commissioner shall forward any quality of care complaint received by a
525.9health maintenance organization under this subdivision or received directly from an
525.10enrollee of a health maintenance organization that involves the delivery of health care
525.11services by a health care provider or facility to the relevant health-related licensing board
525.12or state agency for further investigation. Prior to forwarding a complaint to the appropriate
525.13board or agency, the commissioner shall obtain the enrollee's consent.
525.14    Subd. 4. Right to external quality of care review. (a) An enrollee or an individual
525.15acting on behalf of an enrollee who files with the commissioner a quality of care complaint
525.16that involves a health maintenance organization may submit a written request to the
525.17commissioner for an external quality of care review. The enrollee must request an external
525.18review within six months from the date of the adverse event that led to the quality of
525.19care complaint.
525.20(b) If the enrollee requests an external quality of care review, the health maintenance
525.21organization must participate in the external review. The cost of the external quality of
525.22care review shall be borne by the health maintenance organization.
525.23    Subd. 5. Contract. (a) Pursuant to a request for proposal, the commissioner shall
525.24contract with at least three organizations or business entities to provide independent
525.25external quality of care reviews submitted for external review.
525.26(b) The request for proposal must require that the entity demonstrate:
525.27(1) no conflicts of interest in that it is not owned by, a subsidiary of, or affiliated with
525.28a health maintenance organization, utilization review organization, or a trade organization
525.29of health care providers;
525.30(2) an expertise in dispute resolution;
525.31(3) an expertise in health-related law;
525.32(4) an ability to conduct reviews using a variety of alternative dispute resolution
525.33procedures depending upon the nature of the dispute;
525.34(5) an ability to maintain written records, for at least three years, regarding reviews
525.35conducted and provide data to the commissioners of health and commerce upon request on
525.36reviews conducted;
526.1(6) an ability to ensure confidentiality of medical records and other enrollee
526.2information;
526.3(7) accreditation by a nationally recognized private accrediting organization;
526.4(8) the ability to provide an expedited external review process; and
526.5(9) expertise in clinical medical care and the provision of clinically appropriate
526.6medical care to patients.
526.7(c) The contract shall ensure that the fees for the services rendered by the entity in
526.8connection with the review are reasonable.
526.9    Subd. 6. Process. (a) Upon receiving a request for an external quality of care
526.10review, the commissioner shall randomly assign the review to one of the external review
526.11entities under contract in accordance with subdivision 5. The assigned external review
526.12entity must provide immediate notice of the review to the enrollee and to the health
526.13maintenance organization. Within ten business days of receiving notice of the review, the
526.14health maintenance organization and the enrollee must provide the assigned external
526.15review entity with any information that the enrollee wishes to be considered. Each party
526.16shall be provided an opportunity to present its version of the facts and arguments. The
526.17assigned external review entity must furnish to the health maintenance organization any
526.18additional information submitted by the enrollee within one business day of receipt. An
526.19enrollee may be assisted or represented by a person of the enrollee's choice.
526.20(b) As part of the external quality of care review process, any aspect of an external
526.21review involving the quality of clinical care must be performed by a health care
526.22professional with expertise in the medical issue being reviewed.
526.23(c) An external quality of care review shall be made as soon as practical but in no
526.24case later than 45 days after receiving the request for an external quality of care review
526.25and must promptly send written notice of the decision and the reasons for it to the enrollee,
526.26the health maintenance organization, and the commissioner.
526.27(d) The external review entity and the clinical reviewer assigned must not have a
526.28material professional, familial, or financial conflict of interest with:
526.29(1) the health maintenance organization that is the subject of the external quality
526.30of care review;
526.31(2) the enrollee, or any parties related to the enrollee, whose treatment is the subject
526.32of the external quality of care review;
526.33(3) any officer, director, or management employee of the health maintenance
526.34organization;
526.35(4) a plan administrator, plan fiduciaries, or plan employees;
527.1(5) the health care provider, the health care provider's group, or practice association
527.2recommending treatment that is the subject of the external quality of care review;
527.3(6) the facility at which the recommended treatment would be provided; or
527.4(7) the developer or manufacturer of the principal drug, device, procedure, or other
527.5therapy being recommended.
527.6(e) An expedited external review must be provided upon the enrollee's request
527.7after receiving:
527.8(1) clinical care that involves a medical condition for which the time frame for
527.9completion of an expedited internal appeal would seriously jeopardize the life or health of
527.10the enrollee or would jeopardize the enrollee's ability to regain maximum function and the
527.11enrollee has simultaneously requested an expedited internal appeal; or
527.12(2) clinical care that concerns an admission, availability of care, continued stay, or
527.13health care service for which the enrollee received emergency services but has not been
527.14discharged from a facility.
527.15(f) The external review entity must make its expedited determination and any
527.16recommendations for actions to ameliorate the effects of adverse clinical care as
527.17expeditiously as possible but within no more than 72 hours after the receipt of the request
527.18for expedited review and notify the enrollee, the health maintenance organization, and the
527.19commissioner of health of the determination.
527.20(g) If the external review entity's notification is not in writing, the external quality
527.21of care review entity must provide written confirmation of the determination within 48
527.22hours of the notification.
527.23    Subd. 7. Records; data practices. Each health maintenance organization shall
527.24maintain records of all quality of care complaints and their resolution and retain those
527.25records for five years. Notwithstanding section 145.64, the records must be made available
527.26to the commissioner upon request. Records provided to the commissioner under this
527.27subdivision are confidential data on individuals or protected nonpublic data as defined in
527.28section 13.02, subdivision 3 or 13.
527.29    Subd. 8. Exception. This section does not apply to quality of care complaints
527.30received by a health maintenance organization from an enrollee who is covered under a
527.31public health care program administered by the commissioner of human services under
527.32chapter 256B or 256L.

527.33    Sec. 6. Minnesota Statutes 2014, section 62J.495, subdivision 4, is amended to read:
527.34    Subd. 4. Coordination with national HIT activities. (a) The commissioner,
527.35in consultation with the e-Health Advisory Committee, shall update the statewide
528.1implementation plan required under subdivision 2 and released June 2008, to be consistent
528.2with the updated Federal HIT Strategic Plan released by the Office of the National
528.3Coordinator in accordance with section 3001 of the HITECH Act. The statewide plan
528.4shall meet the requirements for a plan required under section 3013 of the HITECH Act.
528.5(b) The commissioner, in consultation with the e-Health Advisory Committee,
528.6shall work to ensure coordination between state, regional, and national efforts to support
528.7and accelerate efforts to effectively use health information technology to improve the
528.8quality and coordination of health care and the continuity of patient care among health
528.9care providers, to reduce medical errors, to improve population health, to reduce health
528.10disparities, and to reduce chronic disease. The commissioner's coordination efforts shall
528.11include but not be limited to:
528.12(1) assisting in the development and support of health information technology
528.13regional extension centers established under section 3012(c) of the HITECH Act to
528.14provide technical assistance and disseminate best practices; and
528.15(2) providing supplemental information to the best practices gathered by regional
528.16centers to ensure that the information is relayed in a meaningful way to the Minnesota
528.17health care community.;
528.18(3) providing financial and technical support to Minnesota health care providers to
528.19encourage implementation of admission, discharge and transfer alerts, and care summary
528.20document exchange transactions and to evaluate the impact of health information
528.21technology on cost and quality of care;
528.22(4) providing educational resources and technical assistance to health care providers
528.23and patients related to state and national privacy, security, and consent laws governing
528.24clinical health information. In carrying out these activities, the commissioner's technical
528.25assistance does not constitute legal advice;
528.26(5) assessing Minnesota's legal, financial, and regulatory framework for health
528.27information exchange, and making recommendations for modifications that would
528.28strengthen the ability of Minnesota health care providers to securely exchange data
528.29in compliance with patient preferences and in a way that is efficient and financially
528.30sustainable; and
528.31(6) seeking public input on both patient impact and costs associated with
528.32requirements related to patient consent for release of health records for the purposes of
528.33treatment, payment, and health care operations, as required in section 144.293, subdivision
528.342. The commissioner shall provide a report to the legislature on the findings of this public
528.35input process no later than February 1, 2017.
529.1(c) The commissioner, in consultation with the e-Health Advisory Committee, shall
529.2monitor national activity related to health information technology and shall coordinate
529.3statewide input on policy development. The commissioner shall coordinate statewide
529.4responses to proposed federal health information technology regulations in order to ensure
529.5that the needs of the Minnesota health care community are adequately and efficiently
529.6addressed in the proposed regulations. The commissioner's responses may include, but
529.7are not limited to:
529.8(1) reviewing and evaluating any standard, implementation specification, or
529.9certification criteria proposed by the national HIT standards committee;
529.10(2) reviewing and evaluating policy proposed by the national HIT policy committee
529.11relating to the implementation of a nationwide health information technology infrastructure;
529.12(3) monitoring and responding to activity related to the development of quality
529.13measures and other measures as required by section 4101 of the HITECH Act. Any
529.14response related to quality measures shall consider and address the quality efforts required
529.15under chapter 62U; and
529.16(4) monitoring and responding to national activity related to privacy, security, and
529.17data stewardship of electronic health information and individually identifiable health
529.18information.
529.19(d) To the extent that the state is either required or allowed to apply, or designate an
529.20entity to apply for or carry out activities and programs under section 3013 of the HITECH
529.21Act, the commissioner of health, in consultation with the e-Health Advisory Committee
529.22and the commissioner of human services, shall be the lead applicant or sole designating
529.23authority. The commissioner shall make such designations consistent with the goals and
529.24objectives of sections 62J.495 to 62J.497 and 62J.50 to 62J.61.
529.25(e) The commissioner of human services shall apply for funding necessary to
529.26administer the incentive payments to providers authorized under title IV of the American
529.27Recovery and Reinvestment Act.
529.28(f) The commissioner shall include in the report to the legislature information on the
529.29activities of this subdivision and provide recommendations on any relevant policy changes
529.30that should be considered in Minnesota.

529.31    Sec. 7. Minnesota Statutes 2014, section 62J.496, subdivision 1, is amended to read:
529.32    Subdivision 1. Account establishment. (a) An account is established to:
529.33(1) finance the purchase of certified electronic health records or qualified electronic
529.34health records as defined in section 62J.495, subdivision 1a;
530.1(2) enhance the utilization of electronic health record technology, which may include
530.2costs associated with upgrading the technology to meet the criteria necessary to be a
530.3certified electronic health record or a qualified electronic health record;
530.4(3) train personnel in the use of electronic health record technology; and
530.5(4) improve the secure electronic exchange of health information.
530.6(b) Amounts deposited in the account, including any grant funds obtained through
530.7federal or other sources, loan repayments, and interest earned on the amounts shall
530.8be used only for awarding loans or loan guarantees, as a source of reserve and security
530.9for leveraged loans, for activities authorized in section 62J.495, subdivision 4, or for
530.10the administration of the account.
530.11(c) The commissioner may accept contributions to the account from private sector
530.12entities subject to the following provisions:
530.13(1) the contributing entity may not specify the recipient or recipients of any loan
530.14issued under this subdivision;
530.15(2) the commissioner shall make public the identity of any private contributor to the
530.16loan fund, as well as the amount of the contribution provided;
530.17(3) the commissioner may issue letters of commendation or make other awards that
530.18have no financial value to any such entity; and
530.19(4) a contributing entity may not specify that the recipient or recipients of any loan
530.20use specific products or services, nor may the contributing entity imply that a contribution
530.21is an endorsement of any specific product or service.
530.22(d) The commissioner may use the loan funds to reimburse private sector entities
530.23for any contribution made to the loan fund. Reimbursement to private entities may not
530.24exceed the principle amount contributed to the loan fund.
530.25(e) The commissioner may use funds deposited in the account to guarantee, or
530.26purchase insurance for, a local obligation if the guarantee or purchase would improve
530.27credit market access or reduce the interest rate applicable to the obligation involved.
530.28(f) The commissioner may use funds deposited in the account as a source of revenue
530.29or security for the payment of principal and interest on revenue or general obligation
530.30bonds issued by the state if the proceeds of the sale of the bonds will be deposited into
530.31the loan fund.

530.32    Sec. 8. Minnesota Statutes 2015 Supplement, section 62U.04, subdivision 11, is
530.33amended to read:
530.34    Subd. 11. Restricted uses of the all-payer claims data. (a) Notwithstanding
530.35subdivision 4, paragraph (b), and subdivision 5, paragraph (b), the commissioner or the
531.1commissioner's designee shall only use the data submitted under subdivisions 4 and 5 for
531.2the following purposes:
531.3(1) to evaluate the performance of the health care home program as authorized under
531.4sections 256B.0751, subdivision 6, and 256B.0752, subdivision 2;
531.5(2) to study, in collaboration with the reducing avoidable readmissions effectively
531.6(RARE) campaign, hospital readmission trends and rates;
531.7(3) to analyze variations in health care costs, quality, utilization, and illness burden
531.8based on geographical areas or populations;
531.9(4) to evaluate the state innovation model (SIM) testing grant received by the
531.10Departments of Health and Human Services, including the analysis of health care cost,
531.11quality, and utilization baseline and trend information for targeted populations and
531.12communities; and
531.13(5) to compile one or more public use files of summary data or tables that must:
531.14(i) be available to the public for no or minimal cost by March 1, 2016, and available
531.15by Web-based electronic data download by June 30, 2019;
531.16(ii) not identify individual patients, payers, or providers;
531.17(iii) be updated by the commissioner, at least annually, with the most current data
531.18available;
531.19(iv) contain clear and conspicuous explanations of the characteristics of the data,
531.20such as the dates of the data contained in the files, the absence of costs of care for uninsured
531.21patients or nonresidents, and other disclaimers that provide appropriate context; and
531.22(v) not lead to the collection of additional data elements beyond what is authorized
531.23under this section as of June 30, 2015.
531.24(b) The commissioner may publish the results of the authorized uses identified
531.25in paragraph (a) so long as the data released publicly do not contain information or
531.26descriptions in which the identity of individual hospitals, clinics, or other providers may
531.27be discerned.
531.28(c) Nothing in this subdivision shall be construed to prohibit the commissioner from
531.29using the data collected under subdivision 4 to complete the state-based risk adjustment
531.30system assessment due to the legislature on October 1, 2015.
531.31(d) The commissioner or the commissioner's designee may use the data submitted
531.32under subdivisions 4 and 5 for the purpose described in paragraph (a), clause (3), until
531.33July 1, 2016 2019.
531.34(e) The commissioner shall consult with the all-payer claims database work group
531.35established under subdivision 12 regarding the technical considerations necessary to create
531.36the public use files of summary data described in paragraph (a), clause (5).
532.1(f) The commissioner shall develop a community input process to advise the
532.2commissioner in the identification of high priority analyses to be conducted pursuant to
532.3paragraph (a), clause (3), and in the creation of additional public use files of summary
532.4data described in paragraph (a), clause (5).

532.5    Sec. 9. Minnesota Statutes 2015 Supplement, section 144.061, is amended to read:
532.6144.061 EARLY DENTAL PREVENTION INITIATIVE.
532.7    Subdivision 1. Prevention initiative. (a) The commissioner of health, in
532.8collaboration with the commissioner of human services, shall implement a statewide
532.9initiative to increase awareness among communities of color and recent immigrants on
532.10the importance of early preventive dental intervention for infants and toddlers before
532.11and after primary teeth appear.
532.12(b) The commissioner shall develop educational materials and information for
532.13expectant and new parents within the targeted communities that include the importance
532.14of early dental care to prevent early cavities, including proper cleaning techniques and
532.15feeding habits, before and after primary teeth appear.
532.16(c) The commissioner shall develop a distribution plan to ensure that the materials
532.17are distributed to expectant and new parents within the targeted communities, including,
532.18but not limited to, making the materials available to health care providers, community
532.19clinics, WIC sites, and other relevant sites within the targeted communities.
532.20(d) In developing these materials and distribution plan, the commissioner shall work
532.21collaboratively with members of the targeted communities, dental providers, pediatricians,
532.22child care providers, and home visiting nurses.
532.23(e) The commissioner shall, with input from stakeholders listed in paragraph (d),
532.24develop and pilot incentives to encourage early dental care within one year of an infant's
532.25teeth erupting. Effective July 1, 2017, for the incentives required under this paragraph
532.26for fiscal year 2018, the commissioner shall implement the incentive pilot described in
532.27subdivision 2.
532.28    Subd. 2. Incentive pilot. (a) For the purpose of determining the effectiveness of
532.29this initiative, the commissioner shall designate up to three communities of color or of
532.30recent immigrants, with at least one of the designated communities located outside the
532.31seven-county metropolitan area, and work with each designated community to ensure that
532.32the educational materials and information are distributed in accordance with subdivision
532.331. The commissioner shall assist the designated community with developing strategies
532.34to encourage early dental care within one year of an infant's teeth erupting, including
533.1outreach through ethnic radio, Web casts, and local cable programs, and incentives that are
533.2geared toward the ethnic groups residing in the designated communities.
533.3(b) The commissioner shall develop measurable outcomes, including a baseline
533.4measurement in order to evaluate whether the educational materials, information,
533.5strategies, and incentives increased the numbers of infants and toddlers receiving early
533.6preventive dental intervention and care. The evaluation of this incentive pilot shall assist
533.7the commissioner with the continued development of community incentives to encourage
533.8early dental care within targeted communities required under subdivision 1, paragraph (e).

533.9    Sec. 10. [144.0615] STATEWIDE SCHOOL-BASED SEALANT GRANT
533.10PROGRAM.
533.11(a) The commissioner of health shall develop a statewide coordinated dental sealant
533.12program to improve access to preventive dental services for school-aged children. The
533.13program shall focus on developing the data tools necessary to identify the public schools
533.14in the state with students ages six to nine who are in the greatest need of preventive dental
533.15care based on the percentage of students who are low income and who are either enrolled
533.16in a public health care program or uninsured, and have no access to a school-based sealant
533.17program. In creating this program, the commissioner shall develop an implementation
533.18plan that identifies statewide needs, establishes outcome measures, and provides an
533.19evaluation process based on the outcome measures established.
533.20(b) The commissioner shall award grants to nonprofit organizations to provide
533.21school-based sealant programs. The grants shall be available to expand existing
533.22school-based sealant programs and to create new programs in schools that have been
533.23identified as underserved high-risk schools.
533.24(c) By March 15, 2018, the commissioner shall submit a report to the chairs and
533.25ranking minority members of the legislative committees with jurisdiction over health care,
533.26describing the implementation plan, including the data tools developed; the outcome
533.27measures; the number of grants awarded; and the location of the schools participating in
533.28the grants and the results of the evaluation of the program in terms of improving access to
533.29sealants for school-aged children ages six to nine.

533.30    Sec. 11. [144.1912] GREATER MINNESOTA FAMILY MEDICINE RESIDENCY
533.31GRANT PROGRAM.
533.32    Subdivision 1. Definitions. (a) For purposes of this section, the following terms
533.33have the meanings given.
533.34(b) "Commissioner" means the commissioner of health.
534.1(c) "Eligible family medicine residency program" means a program that meets the
534.2following criteria:
534.3(1) is located in Minnesota outside the seven-county metropolitan area, as defined in
534.4section 473.121, subdivision 4;
534.5(2) is accredited as a family medicine residency program or is a candidate for
534.6accreditation;
534.7(3) is focused on the education and training of family medicine physicians to serve
534.8communities outside the metropolitan area; and
534.9(4) demonstrates that over the most recent three years, at least 25 percent of its
534.10graduates practice in Minnesota communities outside the metropolitan area.
534.11    Subd. 2. Program administration. (a) The commissioner shall award family
534.12medicine residency grants to existing, eligible, not-for-profit family medicine residency
534.13programs to support current and new residency positions. Funds shall be allocated first to
534.14proposed new family medicine residency positions, and remaining funds shall be allocated
534.15proportionally based on the number of existing residents in eligible programs. The
534.16commissioner may fund a new residency position for up to three years.
534.17(b) Grant funds awarded may only be spent to cover the costs of:
534.18(1) establishing, maintaining, or expanding training for family medicine residents;
534.19(2) recruitment, training, and retention of residents and faculty;
534.20(3) travel and lodging for residents; and
534.21(4) faculty, resident, and preceptor salaries.
534.22(c) Grant funds shall not be used to supplant any other government or private funds
534.23available for these purposes.
534.24    Subd. 3. Applications. Eligible family medicine residency programs seeking a
534.25grant must apply to the commissioner. The application must include objectives, a related
534.26work plan and budget, a description of the number of new and existing residency positions
534.27that will be supported using grant funds, and additional information the commissioner
534.28determines to be necessary. The commissioner shall determine whether applications are
534.29complete and responsive and may require revisions or additional information before
534.30awarding a grant.
534.31    Subd. 4. Program oversight. The commissioner shall require and collect from
534.32family medicine residency programs receiving grants, information necessary to administer
534.33and evaluate the program. The evaluation shall include the scope of expansion of new
534.34residency positions and information describing specific programs to enhance current
534.35residency positions, which may include facility improvements. The commissioner shall
534.36continue to collect data on greater Minnesota family residency shortages.

535.1    Sec. 12. Minnesota Statutes 2015 Supplement, section 144.4961, subdivision 3,
535.2is amended to read:
535.3    Subd. 3. Rulemaking. The commissioner of health shall adopt rules for establishing
535.4licensure requirements and enforcement of applicable laws and rules work standards
535.5relating to indoor radon in dwellings and other buildings, with the exception of newly
535.6constructed Minnesota homes according to section 326B.106, subdivision 6. The
535.7commissioner shall coordinate, oversee, and implement all state functions in matters
535.8concerning the presence, effects, measurement, and mitigation of risks of radon in
535.9dwellings and other buildings.
535.10EFFECTIVE DATE.This section is effective the day following final enactment.

535.11    Sec. 13. Minnesota Statutes 2015 Supplement, section 144.4961, subdivision 4,
535.12is amended to read:
535.13    Subd. 4. System tag. All radon mitigation systems installed in Minnesota on or
535.14after October 1, 2017 January 1, 2018, must have a radon mitigation system tag provided
535.15by the commissioner. A radon mitigation professional must attach the tag to the radon
535.16mitigation system in a visible location.

535.17    Sec. 14. Minnesota Statutes 2015 Supplement, section 144.4961, subdivision 5,
535.18is amended to read:
535.19    Subd. 5. License required annually. Effective January 1, 2018, a license is required
535.20annually for every person, firm, or corporation that sells a device or performs a service
535.21for compensation to detect the presence of radon in the indoor atmosphere, performs
535.22laboratory analysis, or performs a service to mitigate radon in the indoor atmosphere. This
535.23section does not apply to retail stores that only sell or distribute radon sampling but are not
535.24engaged in the manufacture of radon sampling devices.

535.25    Sec. 15. Minnesota Statutes 2015 Supplement, section 144.4961, subdivision 6,
535.26is amended to read:
535.27    Subd. 6. Exemptions. This section does not apply to:
535.28(1) radon control systems installed in newly constructed Minnesota homes according
535.29to section 326B.106, subdivision 6, prior to the issuance of a certificate of occupancy are
535.30not required to follow the requirements of this section.;
535.31(2) employees of a firm or corporation that installs radon control systems in newly
535.32constructed Minnesota homes specified in clause (1);
536.1(3) a person authorized as a building official under Minnesota Rules, part 1300.0070,
536.2or that person's designee; or
536.3(4) any person, firm, corporation, or entity that distributes radon testing devices or
536.4information for general educational purposes.
536.5EFFECTIVE DATE.This section is effective the day following final enactment.

536.6    Sec. 16. Minnesota Statutes 2015 Supplement, section 144.4961, subdivision 8,
536.7is amended to read:
536.8    Subd. 8. Licensing fees. (a) All radon license applications submitted to the
536.9commissioner of health must be accompanied by the required fees. If the commissioner
536.10determines that insufficient fees were paid, the necessary additional fees must be paid
536.11before the commissioner approves the application. The commissioner shall charge the
536.12following fees for each radon license:
536.13(1) Each measurement professional license, $300 $150 per year. "Measurement
536.14professional" means any person who performs a test to determine the presence and
536.15concentration of radon in a building they do the person does not own or lease; provides
536.16professional or expert advice on radon testing, radon exposure, or health risks related to
536.17radon exposure; or makes representations of doing any of these activities.
536.18(2) Each mitigation professional license, $500 $250 per year. "Mitigation
536.19professional" means an individual who performs installs or designs a radon mitigation
536.20system in a building they do the individual does not own or lease; provides professional or
536.21expert advice on radon mitigation or radon entry routes; or provides on-site supervision
536.22of radon mitigation and mitigation technicians; or makes representations of doing any of
536.23these activities. "On-site supervision" means a review at the property of mitigation work
536.24upon completion of the work and attachment of a system tag. Employees or subcontractors
536.25who are supervised by a licensed mitigation professional are not required to be licensed
536.26under this clause. This license also permits the licensee to perform the activities of a
536.27measurement professional described in clause (1).
536.28(3) Each mitigation company license, $500 $100 per year. "Mitigation company"
536.29means any business or government entity that performs or authorizes employees to
536.30perform radon mitigation. This fee is waived if the mitigation company is a sole
536.31proprietorship employs only one licensed mitigation professional.
536.32(4) Each radon analysis laboratory license, $500 per year. "Radon analysis
536.33laboratory" means a business entity or government entity that analyzes passive radon
536.34detection devices to determine the presence and concentration of radon in the devices.
537.1This fee is waived if the laboratory is a government entity and is only distributing test kits
537.2for the general public to use in Minnesota.
537.3(5) Each Minnesota Department of Health radon mitigation system tag, $75 per tag.
537.4"Minnesota Department of Health radon mitigation system tag" or "system tag" means a
537.5unique identifiable radon system label provided by the commissioner of health.
537.6(b) Fees collected under this section shall be deposited in the state treasury and
537.7credited to the state government special revenue fund.
537.8EFFECTIVE DATE.This section is effective the day following final enactment.

537.9    Sec. 17. Minnesota Statutes 2015 Supplement, section 144.4961, is amended by adding
537.10a subdivision to read:
537.11    Subd. 10. Local inspections or permits. This section does not preclude local units
537.12of government from requiring additional permits or inspections for radon control systems,
537.13and does not supersede any local inspection or permit requirements.
537.14EFFECTIVE DATE.This section is effective the day following final enactment.

537.15    Sec. 18. Minnesota Statutes 2014, section 144A.75, subdivision 5, is amended to read:
537.16    Subd. 5. Hospice provider. "Hospice provider" means an individual, organization,
537.17association, corporation, unit of government, or other entity that is regularly engaged
537.18in the delivery, directly or by contractual arrangement, of hospice services for a fee to
537.19terminally ill hospice patients. A hospice must provide all core services.

537.20    Sec. 19. Minnesota Statutes 2014, section 144A.75, subdivision 6, is amended to read:
537.21    Subd. 6. Hospice patient. "Hospice patient" means an individual who has been
537.22diagnosed as terminally ill, with a probable life expectancy of under one year, as whose
537.23illness has been documented by the individual's attending physician and hospice medical
537.24director, who alone or, when unable, through the individual's family has voluntarily
537.25consented to and received admission to a hospice provider, and who:
537.26(1) has been diagnosed as terminally ill, with a probable life expectancy of under
537.27one year; or
537.28(2) is 21 years of age or younger and has been diagnosed with a life-threatening
537.29illness contributing to a shortened life expectancy.

537.30    Sec. 20. Minnesota Statutes 2014, section 144A.75, subdivision 8, is amended to read:
538.1    Subd. 8. Hospice services; hospice care. "Hospice services" or "hospice care"
538.2means palliative and supportive care and other services provided by an interdisciplinary
538.3team under the direction of an identifiable hospice administration to terminally ill hospice
538.4patients and their families to meet the physical, nutritional, emotional, social, spiritual,
538.5and special needs experienced during the final stages of illness, dying, and bereavement,
538.6or during a life-threatening illness contributing to a shortened life expectancy. These
538.7services are provided through a centrally coordinated program that ensures continuity and
538.8consistency of home and inpatient care that is provided directly or through an agreement.

538.9    Sec. 21. Minnesota Statutes 2015 Supplement, section 144A.75, subdivision 13,
538.10is amended to read:
538.11    Subd. 13. Residential hospice facility. (a) "Residential hospice facility" means a
538.12facility that resembles a single-family home modified to address life safety, accessibility,
538.13and care needs, located in a residential area that directly provides 24-hour residential
538.14and support services in a home-like setting for hospice patients as an integral part of the
538.15continuum of home care provided by a hospice and that houses:
538.16(1) no more than eight hospice patients; or
538.17(2) at least nine and no more than 12 hospice patients with the approval of the local
538.18governing authority, notwithstanding section 462.357, subdivision 8.
538.19(b) Residential hospice facility also means a facility that directly provides 24-hour
538.20residential and support services for hospice patients and that:
538.21(1) houses no more than 21 hospice patients;
538.22(2) meets hospice certification regulations adopted pursuant to title XVIII of the
538.23federal Social Security Act, United States Code, title 42, section 1395, et seq.; and
538.24(3) is located on St. Anthony Avenue in St. Paul, Minnesota, and was licensed as a
538.2540-bed non-Medicare certified nursing home as of January 1, 2015.

538.26    Sec. 22. Minnesota Statutes 2014, section 144A.75, is amended by adding a
538.27subdivision to read:
538.28    Subd. 13a. Respite care. "Respite care" means short-term care in an inpatient facility
538.29such as a residential hospice facility, when necessary to relieve the hospice patient's family
538.30or other persons caring for the patient. Respite care may be provided on an occasional basis.

538.31    Sec. 23. Minnesota Statutes 2014, section 152.27, subdivision 2, is amended to read:
538.32    Subd. 2. Commissioner duties. (a) The commissioner shall:
539.1(1) give notice of the program to health care practitioners in the state who are
539.2eligible to serve as health care practitioners and explain the purposes and requirements
539.3of the program;
539.4(2) allow each health care practitioner who meets or agrees to meet the program's
539.5requirements and who requests to participate, to be included in the registry program to
539.6collect data for the patient registry;
539.7(3) allow each health care practitioner who meets the requirements of subdivision 8,
539.8and who requests access for a permissible purpose, to have limited access to a patient's
539.9registry information;
539.10(3) (4) provide explanatory information and assistance to each health care
539.11practitioner in understanding the nature of therapeutic use of medical cannabis within
539.12program requirements;
539.13(4) (5) create and provide a certification to be used by a health care practitioner
539.14for the practitioner to certify whether a patient has been diagnosed with a qualifying
539.15medical condition and include in the certification an option for the practitioner to certify
539.16whether the patient, in the health care practitioner's medical opinion, is developmentally or
539.17physically disabled and, as a result of that disability, the patient is unable to self-administer
539.18medication or acquire medical cannabis from a distribution facility;
539.19(5) (6) supervise the participation of the health care practitioner in conducting
539.20patient treatment and health records reporting in a manner that ensures stringent security
539.21and record-keeping requirements and that prevents the unauthorized release of private
539.22data on individuals as defined by section 13.02;
539.23(6) (7) develop safety criteria for patients with a qualifying medical condition as a
539.24requirement of the patient's participation in the program, to prevent the patient from
539.25undertaking any task under the influence of medical cannabis that would constitute
539.26negligence or professional malpractice on the part of the patient; and
539.27(7) (8) conduct research and studies based on data from health records submitted to
539.28the registry program and submit reports on intermediate or final research results to the
539.29legislature and major scientific journals. The commissioner may contract with a third
539.30party to complete the requirements of this clause. Any reports submitted must comply
539.31with section 152.28, subdivision 2.
539.32(b) If the commissioner wishes to add a delivery method under section 152.22,
539.33subdivision 6, or a qualifying medical condition under section 152.22, subdivision 14, the
539.34commissioner must notify the chairs and ranking minority members of the legislative policy
539.35committees having jurisdiction over health and public safety of the addition and the reasons
539.36for its addition, including any written comments received by the commissioner from the
540.1public and any guidance received from the task force on medical cannabis research, by
540.2January 15 of the year in which the commissioner wishes to make the change. The change
540.3shall be effective on August 1 of that year, unless the legislature by law provides otherwise.

540.4    Sec. 24. Minnesota Statutes 2014, section 152.27, is amended by adding a subdivision
540.5to read:
540.6    Subd. 8. Access to registry data. (a) Notwithstanding section 152.31, a health
540.7care practitioner may access a patient's registry information to the extent the information
540.8relates specifically to a current patient, to whom the health care practitioner is:
540.9(1) prescribing or considering prescribing any controlled substance;
540.10(2) providing emergency medical treatment for which access to the data may be
540.11necessary; or
540.12(3) providing other medical treatment for which access to the data may be necessary
540.13and the patient has consented to access to the registry account information, and with the
540.14provision that the health care practitioner remains responsible for the use or misuse of data
540.15accessed by a delegated agent or employee.
540.16(b) A health care practitioner who is authorized to access the patient registry under
540.17this subdivision may be registered to electronically access limited data in the medical
540.18cannabis patient registry. If the data is accessed electronically, the health care practitioner
540.19shall implement and maintain a comprehensive information security program that contains
540.20administrative, technical, and physical safeguards that are appropriate to the user's size
540.21and complexity, and the sensitivity of the personal information obtained. The health care
540.22practitioner shall identify reasonably foreseeable internal and external risks to the security,
540.23confidentiality, and integrity of personal information that could result in the unauthorized
540.24disclosure, misuse, or other compromise of the information and assess the sufficiency of
540.25any safeguards in place to control the risks.
540.26(c) When requesting access based on patient consent, a health care practitioner shall
540.27warrant that the request:
540.28(1) contains no information known to the provider to be false;
540.29(2) accurately states the patient's desire to have health records disclosed or that
540.30there is specific authorization in law; and
540.31(3) does not exceed any limits imposed by the patient in the consent.
540.32(d) Before a health care practitioner may access the data, the commissioner shall
540.33ensure that the health care practitioner agrees to comply with paragraph (b).
540.34(e) The commissioner shall maintain a log of all persons who access the data for
540.35a period of three years.

541.1    Sec. 25. Minnesota Statutes 2014, section 152.33, is amended by adding a subdivision
541.2to read:
541.3    Subd. 7. Improper access to registry; criminal penalty. In addition to any
541.4other applicable penalty in law, a person who intentionally makes a false statement or
541.5misrepresentation to gain access to the patient registry under section 152.27, subdivision 8,
541.6or otherwise accesses the patient registry under false pretenses, is guilty of a misdemeanor
541.7punishable by imprisonment for not more than 90 days or by payment of a fine of not more
541.8than $1,000, or both. The penalty is in addition to any other penalties that may apply for
541.9making a false statement, misrepresentation, or unauthorized acquisition of not public data.

541.10    Sec. 26. Minnesota Statutes 2014, section 327.14, subdivision 8, is amended to read:
541.11    Subd. 8. Recreational camping area. "Recreational camping area" means any area,
541.12whether privately or publicly owned, used on a daily, nightly, weekly, or longer basis for
541.13the accommodation of five or more tents or recreational camping vehicles free of charge
541.14or for compensation. "Recreational camping area" excludes:
541.15(1) children's camps;
541.16(2) industrial camps;
541.17(3) migrant labor camps, as defined in Minnesota Statutes and state commissioner
541.18of health rules;
541.19(4) United States Forest Service camps;
541.20(5) state forest service camps;
541.21(6) state wildlife management areas or state-owned public access areas which are
541.22restricted in use to picnicking and boat landing; and
541.23(7) temporary holding areas for self-contained recreational camping vehicles
541.24created by and adjacent to motor sports facilities, if the chief law enforcement officer of
541.25an affected jurisdiction determines that it is in the interest of public safety to provide a
541.26temporary holding area; and
541.27(8) a privately owned area used for camping no more than once a year and for no
541.28longer than seven consecutive days by members of a private club where the members pay
541.29annual dues to belong to the club.
541.30EFFECTIVE DATE.This section is effective the day following final enactment.

541.31    Sec. 27. Laws 2015, chapter 71, article 8, section 24, the effective date, is amended to
541.32read:
542.1EFFECTIVE DATE.This section is effective July 1, 2015, except subdivisions 4
542.2and 5, which are effective October 1, 2017 July 1, 2016.

542.3    Sec. 28. CONTAMINATED PRIVATE WELLS.
542.4Ten priority points must be assigned by the Department of Health pursuant to
542.5Minnesota Rules, part 4720.9020, if a drinking water advisory has been issued or a special
542.6well construction area has been established by the Department of Health.
542.7EFFECTIVE DATE.This section is effective the day following final enactment
542.8and applies to Minnesota Rules, part 4720.9020, until the Department of Health modifies
542.9part 4720.9020.

542.10    Sec. 29. HEALTH RISK LIMITS.
542.11Fifteen points must be assigned by the Department of Health pursuant to Minnesota
542.12Rules, part 4720.9020, if the department has confirmed an exceedance of a health risk limit
542.13under Minnesota Rules, parts 4717.7500 to 4717.7900, within the past 36 calendar months.
542.14EFFECTIVE DATE.This section is effective the day following final enactment
542.15and applies to Minnesota Rules, part 4720.9020, until the Department of Health modifies
542.16part 4720.9020.

542.17    Sec. 30. MEDICALLY NECESSARY CARE DEFINITION FOR HEALTH
542.18MAINTENANCE ORGANIZATIONS.
542.19The commissioner of health shall convene a public meeting with interested
542.20stakeholders to discuss the need for a uniform definition of medically necessary care for
542.21health maintenance organizations to utilize when determining the medical necessity,
542.22appropriateness, or efficacy of a health care service or procedure, and a uniform process for
542.23each health maintenance organization to follow when making such an initial determination
542.24or utilization review. This discussion shall exclude determinations or reviews involving
542.25enrollees covered under a public health care program administered by the commissioner
542.26of human services under Minnesota Statutes, chapter 256B or 256L.
542.27By January 15, 2017, the commissioner shall report results of the public input and
542.28any recommendations, including draft legislation, to the chairs and ranking minority
542.29members of the legislative committees with jurisdiction over health care on the proposed
542.30uniform definition and determination process, and a process in which the commissioner
542.31may periodically review the medically necessary care determinations to ensure that
543.1the determinations made by a health maintenance organization adhere to the uniform
543.2definition and process.

543.3    Sec. 31. PEER REVIEW DISCLOSURE.
543.4The commissioner of health shall consult with interested stakeholders
543.5including members of the public and family members of facility residents and make
543.6recommendations regarding when quality of care complaint investigations under
543.7Minnesota Statutes, section 62D.115, should be subject to peer review confidentiality
543.8and identifying circumstances in which peer review final determinations may be
543.9disclosed or made available to the public, notwithstanding Minnesota Statutes, section
543.10145.64, including, but not limited to, patient safety and the parameters surrounding such
543.11disclosure. The commissioner shall submit these recommendations, including draft
543.12legislation to the chairs and ranking minority members of the legislative committees with
543.13jurisdiction over health care and data privacy by January 15, 2017.

543.14    Sec. 32. COST AND BENEFIT ANALYSIS; HEALTH CARE SYSTEM
543.15PROPOSALS.
543.16    Subdivision 1. Contract for analysis of proposals. The commissioner of health
543.17shall contract with the University of Minnesota School of Public Health to conduct an
543.18analysis of the costs and benefits of three specific proposals that seek to create a health
543.19care system with increased access, greater affordability, lower costs, and improved quality
543.20of care in comparison to the current system.
543.21    Subd. 2. Plans. The commissioner of health, with input from the commissioners
543.22of human services and commerce, legislators, and other stakeholders, shall submit to the
543.23University of Minnesota the following proposals:
543.24(1) a free-market insurance-based competition approach;
543.25(2) a universal health care plan designed to meet the following principles:
543.26(i) ensure all Minnesotans receive quality health care;
543.27(ii) cover all necessary care, including all coverage currently required by law,
543.28complete mental health services, chemical dependency treatment, prescription drugs,
543.29medical equipment and supplies, dental care, long-term care, and home care services;
543.30(iii) allow patients to choose their own providers; and
543.31(iv) use premiums based on ability to pay; and
543.32(3) a MinnesotaCare public option that would allow individuals with income above
543.33the maximum income eligibility limit established for the MinnesotaCare program the
543.34option of purchasing this public option instead of purchasing a qualified health plan
544.1through MNsure or an individual health plan offered outside of MNsure. For purposes of
544.2conducting the analysis, the MinnesotaCare public option shall include the following:
544.3(i) individuals who qualify for advanced tax credits and cost-sharing credits under
544.4the Affordable Care Act may use the credits to purchase the MinnesotaCare public option;
544.5(ii) enrollee premium rates shall be established at rates that are similar to the average
544.6rate paid by the state to managed care plan contractors for MinnesotaCare;
544.7(iii) the covered benefit set shall be equal to the benefits covered under
544.8MinnesotaCare;
544.9(iv) the same annual open enrollment period established for MNsure shall apply
544.10for this public option; and
544.11(v) cost-sharing shall be established that maintains an actuarial value no lower
544.12than 87 percent.
544.13The analysis of this option must include potential financial impacts on MNsure; the
544.14long-term financial stability of the MinnesotaCare program; impacts to premiums in
544.15the individual and small group insurance market; and impacts to health care provider
544.16reimbursement rates and to the financial stability of urban, rural, and safety net providers.
544.17    Subd. 3. Proposal analysis. (a) The analysis of each proposal must measure the
544.18impact on total public and private health care spending in Minnesota that would result
544.19from each proposal, including spending by individuals. "Total public and private health
544.20care spending" means spending on all medical care, including dental care, prescription
544.21drugs, medical equipment and supplies, complete mental health services, chemical
544.22dependency treatment, long-term care, and home care services as well as all of the costs
544.23for administering, delivering, and paying for the care. The analysis of total health care
544.24spending shall include whether there are savings or additional costs compared to the
544.25existing system due to:
544.26(1) increased or reduced insurance, billing, underwriting, marketing, and other
544.27administrative functions;
544.28(2) changes in access to and timely and appropriate use of medical care;
544.29(3) availability and take-up of health insurance coverage;
544.30(4) market-driven or negotiated prices on medical services and products, including
544.31pharmaceuticals;
544.32(5) shortages or excess capacity of medical facilities and equipment;
544.33(6) increased or decreased utilization; better health outcomes; and increased wellness
544.34due to prevention, early intervention, and health-promoting activities;
544.35(7) payment reforms;
544.36(8) coordination of care; and
545.1(9) to the extent possible given available data and resources, non-health care impacts
545.2on state and local expenditures such as reduced out-of-home placement or crime costs
545.3due to mental health or chemical dependency coverage.
545.4(b) To the extent possible given available data and resources, the analysis must also
545.5estimate for each proposal job losses or gains in health care and elsewhere in the economy
545.6due to implementation of the reforms.
545.7(c) The analysis shall assume that the provisions in each proposal are not preempted
545.8by federal law or that the federal government gives a waiver to the preemption.
545.9    Subd. 4. Report. The commissioner shall provide a preliminary report to the chairs
545.10and ranking minority members of the legislative committees with jurisdiction over health
545.11and human services policy and finance by March 15, 2017, and a final report by October
545.121, 2017. For the analyses described in subdivision 3, paragraphs (a), clause (9), and (b),
545.13a final report is due by March 15, 2018.

545.14ARTICLE 27

545.15HEALTH-RELATED OCCUPATIONAL LICENSING

545.16SPOKEN LANGUAGE HEALTH CARE INTERPRETERS

545.17    Section 1. [146C.01] DEFINITIONS.
545.18    Subdivision 1. Applicability. The definitions in this section apply to this chapter.
545.19    Subd. 2. Advisory council. "Advisory council" means the Spoken Language Health
545.20Care Interpreter Advisory Council established in section 146C.11.
545.21    Subd. 3. Code of ethics. "Code of ethics" means the National Code of Ethics for
545.22Interpreters in Health Care, as published by the National Council on Interpreting in Health
545.23Care or its successor, or the International Medical Interpreters Association or its successor.
545.24    Subd. 4. Commissioner. "Commissioner" means the commissioner of health.
545.25    Subd. 5. Common languages. "Common languages" mean the ten most frequent
545.26languages without regard to dialect in Minnesota for which interpreters are listed on
545.27the registry.
545.28    Subd. 6. Interpreting standards of practice. "Interpreting standards of practice"
545.29means the interpreting standards of practice in health care as published by the National
545.30Council on Interpreting in Health Care or its successor, or the International Medical
545.31Interpreters Association or its successor.
545.32    Subd. 7. Registry. "Registry" means a database of spoken language health care
545.33interpreters in Minnesota who have met the qualifications described under section 146C.03,
545.34subdivision 2, 3, 4, or 5, which shall be maintained by the commissioner of health.
546.1    Subd. 8. Remote interpretation. "Remote interpretation" means providing spoken
546.2language interpreting services via a telephone or by video conferencing.
546.3    Subd. 9. Spoken language health care interpreter or interpreter. "Spoken
546.4language health care interpreter" or "interpreter" means an individual who receives
546.5compensation or other remuneration for providing spoken language interpreter services for
546.6patients with limited English proficiency within a medical setting either by face-to-face
546.7interpretation or remote interpretation.
546.8    Subd. 10. Spoken language interpreting services. "Spoken language interpreting
546.9services" means the conversion of one spoken language into another by an interpreter for
546.10the purpose of facilitating communication between a patient and a health care provider
546.11who do not share a common spoken language.

546.12    Sec. 2. [146C.03] REGISTRY.
546.13    Subdivision 1. Establishment. (a) By July 1, 2017, the commissioner of health
546.14shall establish and maintain a registry for spoken language health care interpreters. The
546.15registry shall contain four separate tiers based on different qualification standards for
546.16education and training.
546.17(b) An individual who wants to be listed on the registry must submit an application
546.18to the commissioner on a form provided by the commissioner along with all applicable
546.19fees required under section 146C.13. The form must include the applicant's name; Social
546.20Security number; business address and telephone number, or home address and telephone
546.21number if the applicant has a home office; the applicant's employer or the agencies with
546.22which the applicant is affiliated; the employer's or agencies' addresses and telephone
546.23numbers; and the languages the applicant is qualified to interpret.
546.24(c) Upon receipt of the application, the commissioner shall determine if the applicant
546.25meets the requirements for the applicable registry tier. The commissioner may request
546.26further information from the applicant if the information provided is not complete or
546.27accurate. The commissioner shall notify the applicant of action taken on the application,
546.28and if the application is denied, the grounds for denying the application.
546.29(d) If the commissioner denies an application, the applicant may apply for a lower
546.30tier or may reapply for the same tier at a later date. If an applicant applies for a different
546.31tier or reapplies for the same tier, the applicant must submit with the new application
546.32the applicable fees under section 146C.13.
546.33(e) Applicants who qualify for different tiers for different languages shall only be
546.34required to complete one application and submit with the application the fee associated
546.35with the highest tier for which the applicant is applying.
547.1(f) The commissioner may request, as deemed necessary, additional information
547.2from an applicant to determine or verify qualifications or collect information to manage
547.3the registry or monitor the field of health care interpreting.
547.4    Subd. 2. Tier 1 requirements. The commissioner shall include on the tier 1 registry
547.5an applicant who meets the following requirements:
547.6(1) is at least 18 years of age;
547.7(2) passes an examination approved by the commissioner on basic medical
547.8terminology in English;
547.9(3) passes an examination approved by the commissioner on interpreter ethics and
547.10standards of practice; and
547.11(4) affirms by signature, including electronic signature, that the applicant has read
547.12the code of ethics and interpreting standards of practice identified on the registry Web
547.13site and agrees to abide by them.
547.14    Subd. 3. Tier 2 requirements. The commissioner shall include on the tier 2 registry
547.15an applicant who meets the requirements for tier 1 described under subdivision 2 and who:
547.16(1) effective July 1, 2017, to June 30, 2018, provides proof of successfully
547.17completing a training program for medical interpreters approved by the commissioner that
547.18is, at a minimum, 40 hours in length; or
547.19(2) effective July 1, 2018, provides proof of successfully completing a training
547.20program for medical interpreters approved by the commissioner that is equal in length to
547.21the number of hours required by the Certification Commission for Healthcare Interpreters
547.22(CCHI) or National Board of Certification for Medical Interpreters (NBCMI) or their
547.23successors. If the number of hours required by CCHI or its successor and the number of
547.24hours required by NBCMI or its successor differ, the number of hours required to qualify
547.25for the registry shall be the greater of the two. A training program of 40 hours or more
547.26approved by the commissioner and completed prior to July 1, 2017, may count toward the
547.27number of hours required.
547.28    Subd. 4. Tier 3 requirements. The commissioner shall include on the tier 3 registry
547.29an applicant who meets the requirements for tier 1 described under subdivision 2 and who:
547.30(1) has a national certification in health care interpreting that does not include a
547.31performance examination from a certifying organization approved by the commissioner; or
547.32(2) provides proof of successfully completing an interpreting certification program
547.33from an accredited United States academic institution approved by the commissioner
547.34that is, at a minimum, 18 semester credits.
548.1    Subd. 5. Tier 4 requirements. (a) The commissioner shall include on the tier 4
548.2registry an applicant who meets the requirements for tier 1 described under subdivision 2
548.3and who:
548.4(1) has a national certification from a certifying organization approved by the
548.5commissioner in health care interpreting that includes a performance examination in the
548.6non-English language in which the interpreter is registering to interpret; or
548.7(2)(i) has an associate's degree or higher in interpreting from an accredited United
548.8States academic institution. The degree and institution must be approved by the
548.9commissioner and the degree must include a minimum of three semester credits in medical
548.10terminology or medical interpreting; and
548.11(ii) has achieved a score of "advanced mid" or higher on the American Council on
548.12the Teaching of Foreign Languages Oral Proficiency Interview in a non-English language
548.13in which the interpreter is registering to interpret.
548.14(b) The commissioner, in consultation with the advisory council, may approve
548.15alternative means of meeting oral proficiency requirements for tier 4 for languages
548.16in which the American Council of Teaching of Foreign Languages Oral Proficiency
548.17Interview is not available.
548.18(c) The commissioner, in consultation with the advisory council, may approve a
548.19degree from an educational institution from a foreign country as meeting the associate's
548.20degree requirement in paragraph (a), clause (2). The commissioner may assess the
548.21applicant a fee to cover the cost of foreign credential evaluation services approved by
548.22the commissioner, in consultation with the advisory council, and any additional steps
548.23necessary to process the application. Any assessed fee must be paid by the interpreter
548.24before the interpreter will be registered.
548.25    Subd. 6. Change of name and address. Registered spoken language health
548.26care interpreters who change their name, address, or e-mail address must inform the
548.27commissioner in writing of the change within 30 days. All notices or other correspondence
548.28mailed to the interpreter's address or e-mail address on file with the commissioner shall
548.29be considered as having been received by the interpreter.
548.30    Subd. 7. Data. Section 13.41 applies to government data of the commissioner
548.31on applicants and registered interpreters.

548.32    Sec. 3. [146C.05] RENEWAL.
548.33    Subdivision 1. Registry period. Listing on the registry is valid for a one-year
548.34period. To renew inclusion on the registry, an interpreter must submit:
548.35(1) a renewal application on a form provided by the commissioner;
549.1(2) a continuing education report on a form provided by the commissioner as
549.2specified under section 146C.09; and
549.3(3) the required fees under section 146C.13.
549.4    Subd. 2. Notice. (a) Sixty days before the registry expiration date, the commissioner
549.5shall send out a renewal notice to the spoken language health care interpreter's last known
549.6address or e-mail address on file with the commissioner. The notice must include an
549.7application for renewal and the amount of the fee required for renewal. If the interpreter
549.8does not receive the renewal notice, the interpreter is still required to meet the deadline for
549.9renewal to qualify for continuous inclusion on the registry.
549.10(b) An application for renewal must be received by the commissioner or postmarked
549.11at least 30 calendar days before the registry expiration date.
549.12    Subd. 3. Late fee. A renewal application submitted after the renewal deadline
549.13date must include the late fee specified in section 146C.13. Fees for late renewal shall
549.14not be prorated.
549.15    Subd. 4. Lapse in renewal. An interpreter whose registry listing has been expired
549.16for a period of one year or longer must submit a new application to be listed on the registry
549.17instead of a renewal application.

549.18    Sec. 4. [146C.07] DISCIPLINARY ACTIONS; OVERSIGHT OF COMPLAINTS.
549.19    Subdivision 1. Prohibited conduct. (a) The following conduct is prohibited and is
549.20grounds for disciplinary or corrective action:
549.21(1) failure to provide spoken language interpreting services consistent with the
549.22code of ethics and interpreting standards of practice, or performance of the interpretation
549.23in an incompetent or negligent manner;
549.24(2) conviction of a crime, including a finding or verdict of guilt, an admission of
549.25guilt, or a no-contest plea, in any court in Minnesota or any other jurisdiction in the United
549.26States, demonstrably related to engaging in spoken language health care interpreter
549.27services. Conviction includes a conviction for an offense which, if committed in this
549.28state, would be deemed a felony;
549.29(3) conviction of violating any state or federal law, rule, or regulation that directly
549.30relates to the practice of spoken language health care interpreters;
549.31(4) adjudication as mentally incompetent or as a person who is dangerous to self
549.32or adjudication pursuant to chapter 253B as chemically dependent, developmentally
549.33disabled, mentally ill and dangerous to the public, or as a sexual psychopathic personality
549.34or sexually dangerous person;
549.35(5) violation or failure to comply with an order issued by the commissioner;
550.1(6) obtaining money, property, services, or business from a client through the use of
550.2undue influence, excessive pressure, harassment, duress, deception, or fraud;
550.3(7) revocation of the interpreter's national certification as a result of disciplinary
550.4action brought by the national certifying body;
550.5(8) failure to perform services with reasonable judgment, skill, or safety due to the
550.6use of alcohol or drugs or other physical or mental impairment;
550.7(9) engaging in conduct likely to deceive, defraud, or harm the public;
550.8(10) demonstrating a willful or careless disregard for the health, welfare, or safety
550.9of a client;
550.10(11) failure to cooperate with the commissioner or advisory council in an
550.11investigation or to provide information in response to a request from the commissioner
550.12or advisory council;
550.13(12) aiding or abetting another person in violating any provision of this chapter; and
550.14(13) release or disclosure of a health record in violation of sections 144.291 to
550.15144.298.
550.16(b) In disciplinary actions alleging a violation of paragraph (a), clause (2), (3), or
550.17(4), a copy of the judgment or proceeding under seal of the court administrator, or of the
550.18administrative agency that entered the same, is admissible into evidence without further
550.19authentication and constitutes prima facie evidence of its contents.
550.20    Subd. 2. Complaints. The commissioner may initiate an investigation upon
550.21receiving a complaint or other oral or written communication that alleges or implies
550.22a violation of subdivision 1. In the receipt, investigation, and hearing of a complaint
550.23that alleges or implies a violation of subdivision 1, the commissioner shall follow the
550.24procedures in section 214.10.
550.25    Subd. 3. Disciplinary actions. If the commissioner finds that an interpreter who is
550.26listed on the registry has violated any provision of this chapter, the commissioner may
550.27take any one or more of the following actions:
550.28(1) remove the interpreter from the registry;
550.29(2) impose limitations or conditions on the interpreter's practice, impose
550.30rehabilitation requirements, or require practice under supervision; or
550.31(3) censure or reprimand the interpreter.
550.32    Subd. 4. Reinstatement requirements after disciplinary action. Interpreters
550.33who have been removed from the registry may request and provide justification for
550.34reinstatement. The requirements of this chapter for registry renewal and any other
550.35conditions imposed by the commissioner must be met before the interpreter may be
550.36reinstated on the registry.

551.1    Sec. 5. [146C.09] CONTINUING EDUCATION.
551.2    Subdivision 1. Course approval. The advisory council shall approve continuing
551.3education courses and training. A course that has not been approved by the advisory
551.4council may be submitted, but may be disapproved by the commissioner. If the course
551.5is disapproved, it shall not count toward the continuing education requirement. The
551.6interpreter must complete the following hours of continuing education during each
551.7one-year registry period:
551.8(1) for tier 2 interpreters, a minimum of four contact hours of continuing education;
551.9(2) for tier 3 interpreters, a minimum of six contact hours of continuing education; and
551.10(3) for tier 4 interpreters, a minimum of eight contact hours of continuing education.
551.11Contact hours shall be prorated for interpreters who are assigned a registry cycle of
551.12less than one year.
551.13    Subd. 2. Continuing education verification. Each spoken language health care
551.14interpreter shall submit with a renewal application a continuing education report on a form
551.15provided by the commissioner that indicates that the interpreter has met the continuing
551.16education requirements of this section. The form shall include the following information:
551.17(1) the title of the continuing education activity;
551.18(2) a brief description of the activity;
551.19(3) the sponsor, presenter, or author;
551.20(4) the location and attendance dates;
551.21(5) the number of contact hours; and
551.22(6) the interpreter's notarized affirmation that the information is true and correct.
551.23    Subd. 3. Audit. The commissioner or advisory council may audit a percentage of
551.24the continuing education reports based on a random selection.

551.25    Sec. 6. [146C.11] SPOKEN LANGUAGE HEALTH CARE INTERPRETER
551.26ADVISORY COUNCIL.
551.27    Subdivision 1. Establishment. The commissioner shall appoint 12 members to a
551.28Spoken Language Health Care Interpreter Advisory Council consisting of the following
551.29members:
551.30(1) three members who are interpreters listed on the roster prior to July 1, 2017, or
551.31on the registry after July 1, 2017, and who are Minnesota residents. Of these members,
551.32each must be an interpreter for a different language; at least one must have a national
551.33certification credential; and at least one must have been listed on the roster prior to July 1,
551.342017, or on the registry after July 1, 2017, as an interpreter in a language other than the
552.1common languages and must have completed a training program for medical interpreters
552.2approved by the commissioner that is, at a minimum, 40 hours in length;
552.3(2) three members representing limited English proficient (LEP) individuals, of
552.4these members, two must represent LEP individuals who are proficient in a common
552.5language and one must represent LEP individuals who are proficient in a language that is
552.6not one of the common languages;
552.7(3) one member representing a health plan company;
552.8(4) one member representing a Minnesota health system who is not an interpreter;
552.9(5) one member representing an interpreter agency;
552.10(6) one member representing an interpreter training program or postsecondary
552.11educational institution program providing interpreter courses or skills assessment;
552.12(7) one member who is affiliated with a Minnesota-based or Minnesota chapter of a
552.13national or international organization representing interpreters; and
552.14(8) one member who is a licensed direct care health provider.
552.15    Subd. 2. Organization. The advisory council shall be organized and administered
552.16under section 15.059.
552.17    Subd. 3. Duties. The advisory council shall:
552.18(1) advise the commissioner on issues relating to interpreting skills, ethics, and
552.19standards of practice, including reviewing and recommending changes to the examinations
552.20identified in section 146C.03, subdivision 2, on basic medical terminology in English and
552.21interpreter ethics and interpreter standards of practice;
552.22(2) advise the commissioner on recommended changes to accepted spoken language
552.23health care interpreter qualifications, including degree and training programs and
552.24performance examinations;
552.25(3) address barriers for interpreters to gain access to the registry, including barriers
552.26to interpreters of uncommon languages and interpreters in rural areas;
552.27(4) advise the commissioner on methods for identifying gaps in interpreter services in
552.28rural areas and make recommendations to address interpreter training and funding needs;
552.29(5) inform the commissioner on emerging issues in the spoken language health
552.30care interpreter field;
552.31(6) advise the commissioner on training and continuing education programs;
552.32(7) provide for distribution of information regarding interpreter standards and
552.33resources to help interpreters qualify for higher registry tier levels;
552.34(8) make recommendations for necessary statutory changes to Minnesota interpreter
552.35law;
553.1(9) compare the annual cost of administering the registry and the annual total
553.2collection of registration fees and advise the commissioner, if necessary, to recommend an
553.3adjustment to the registration fees;
553.4(10) identify barriers to meeting tier requirements and make recommendations to the
553.5commissioner for addressing these barriers;
553.6(11) identify and make recommendations to the commissioner for Web distribution
553.7of patient and provider education materials on working with an interpreter and on reporting
553.8interpreter behavior as identified in section 146C.07; and
553.9(12) review and update as necessary the process for determining common languages.

553.10    Sec. 7. [146C.13] FEES.
553.11    Subdivision 1. Fees. (a) The initial and renewal application fees for interpreters
553.12listed on the registry shall be established by the commissioner not to exceed $90.
553.13(b) The renewal late fee for the registry shall be established by the commissioner
553.14not to exceed $30.
553.15(c) If the commissioner must translate a document to verify whether a foreign degree
553.16qualifies for registration for tier 4, the commissioner may assess a fee equal to the actual
553.17cost of translation and additional effort necessary to process the application.
553.18    Subd. 2. Nonrefundable fees. The fees in this section are nonrefundable.
553.19    Subd. 3. Deposit. Fees received under this chapter shall be deposited in the state
553.20government special revenue fund.

553.21GENETIC COUNSELORS

553.22    Sec. 8. [147F.01] DEFINITIONS.
553.23    Subdivision 1. Applicability. For purposes of this chapter, the terms defined in
553.24this section have the meanings given them.
553.25    Subd. 2. ABGC. "ABGC" means the American Board of Genetic Counseling, a
553.26national agency for certification and recertification of genetic counselors, or its successor
553.27organization or equivalent.
553.28    Subd. 3. ABMG. "ABMG" means the American Board of Medical Genetics,
553.29a national agency for certification and recertification of genetic counselors, medical
553.30geneticists, and Ph.D. geneticists, or its successor organization.
553.31    Subd. 4. ACGC. "ACGC" means the Accreditation Council for Genetic Counseling,
553.32a specialized program accreditation board for educational training programs granting
553.33master's degrees or higher in genetic counseling, or its successor organization.
553.34    Subd. 5. Board. "Board" means the Board of Medical Practice.
554.1    Subd. 6. Eligible status. "Eligible status" means an applicant who has met the
554.2requirements and received approval from the ABGC to sit for the certification examination.
554.3    Subd. 7. Genetic counseling. "Genetic counseling" means the provision of services
554.4described in section 147F.03 to help clients and their families understand the medical,
554.5psychological, and familial implications of genetic contributions to a disease or medical
554.6condition.
554.7    Subd. 8. Genetic counselor. "Genetic counselor" means an individual licensed
554.8under this chapter to engage in the practice of genetic counseling.
554.9    Subd. 9. Licensed physician. "Licensed physician" means an individual who is
554.10licensed to practice medicine under chapter 147.
554.11    Subd. 10. NSGC. "NSGC" means the National Society of Genetic Counselors, a
554.12professional membership association for genetic counselors that approves continuing
554.13education programs.
554.14    Subd. 11. Qualified supervisor. "Qualified supervisor" means any person who is
554.15licensed under this chapter as a genetic counselor or a physician licensed under chapter
554.16147 to practice medicine in Minnesota.
554.17    Subd. 12. Supervisee. "Supervisee" means a genetic counselor with a provisional
554.18license.
554.19    Subd. 13. Supervision. "Supervision" means an assessment of the work of the
554.20supervisee, including regular meetings and file review, by a qualified supervisor according
554.21to the supervision contract. Supervision does not require the qualified supervisor to be
554.22present while the supervisee provides services.

554.23    Sec. 9. [147F.03] SCOPE OF PRACTICE.
554.24The practice of genetic counseling by a licensed genetic counselor includes the
554.25following services:
554.26(1) obtaining and interpreting individual and family medical and developmental
554.27histories;
554.28(2) determining the mode of inheritance and the risk of transmitting genetic
554.29conditions and birth defects;
554.30(3) discussing the inheritance, features, natural history, means of diagnosis, and
554.31management of conditions with clients;
554.32(4) identifying, coordinating, ordering, and explaining the clinical implications of
554.33genetic laboratory tests and other laboratory studies;
554.34(5) assessing psychosocial factors, including social, educational, and cultural issues;
555.1(6) providing client-centered counseling and anticipatory guidance to the client or
555.2family based on their responses to the condition, risk of occurrence, or risk of recurrence;
555.3(7) facilitating informed decision-making about testing and management;
555.4(8) identifying and using community resources that provide medical, educational,
555.5financial, and psychosocial support and advocacy; and
555.6(9) providing accurate written medical, genetic, and counseling information for
555.7families and health care professionals.

555.8    Sec. 10. [147F.05] UNLICENSED PRACTICE PROHIBITED; PROTECTED
555.9TITLES AND RESTRICTIONS ON USE.
555.10    Subdivision 1. Protected titles. No individual may use the title "genetic counselor,"
555.11"licensed genetic counselor," "gene counselor," "genetic consultant,""genetic assistant,"
555.12"genetic associate," or any words, letters, abbreviations, or insignia indicating or implying
555.13that the individual is eligible for licensure by the state as a genetic counselor unless the
555.14individual has been licensed as a genetic counselor according to this chapter.
555.15    Subd. 2. Unlicensed practice prohibited. Effective January 1, 2018, no individual
555.16may practice genetic counseling unless the individual is licensed as a genetic counselor
555.17under this chapter except as otherwise provided under this chapter.
555.18    Subd. 3. Other practitioners. (a) Nothing in this chapter shall be construed to
555.19prohibit or restrict the practice of any profession or occupation licensed or registered by the
555.20state by an individual duly licensed or registered to practice the profession or occupation
555.21or to perform any act that falls within the scope of practice of the profession or occupation.
555.22(b) Nothing in this chapter shall be construed to require a license under this chapter
555.23for:
555.24(1) an individual employed as a genetic counselor by the federal government or a
555.25federal agency if the individual is providing services under the direction and control of
555.26the employer;
555.27(2) a student or intern, having graduated within the past six months, or currently
555.28enrolled in an ACGC-accredited genetic counseling educational program providing
555.29genetic counseling services that are an integral part of the student's or intern's course
555.30of study, are performed under the direct supervision of a licensed genetic counselor or
555.31physician who is on duty in the assigned patient care area, and the student is identified by
555.32the title "genetic counseling intern";
555.33(3) a visiting ABGC- or ABMG-certified genetic counselor working as a consultant
555.34in this state who permanently resides outside of the state, or the occasional use of services
555.35from organizations from outside of the state that employ ABGC- or ABMG-certified
556.1genetic counselors. This is limited to practicing for 30 days total within one calendar year.
556.2Certified genetic counselors from outside of the state working as a consultant in this state
556.3must be licensed in their state of residence if that credential is available; or
556.4    (4) an individual who is licensed to practice medicine under chapter 147.
556.5    Subd. 4. Sanctions. An individual who violates this section is guilty of a
556.6misdemeanor and shall be subject to sanctions or actions according to section 214.11.

556.7    Sec. 11. [147F.07] LICENSURE REQUIREMENTS.
556.8    Subdivision 1. General requirements for licensure. To be eligible for licensure, an
556.9applicant, with the exception of those seeking licensure by reciprocity under subdivision
556.102, must submit to the board:
556.11(1) a completed application on forms provided by the board along with all fees
556.12required under section 147F.17. The applicant must include:
556.13(i) the applicant's name, Social Security number, home address and telephone
556.14number, and business address and telephone number if currently employed;
556.15(ii) the name and location of the genetic counseling or medical program the applicant
556.16completed;
556.17(iii) a list of degrees received from other educational institutions;
556.18(iv) a description of the applicant's professional training;
556.19(v) a list of registrations, certifications, and licenses held in other jurisdictions;
556.20(vi) a description of any other jurisdiction's refusal to credential the applicant;
556.21(vii) a description of all professional disciplinary actions initiated against the
556.22applicant in any jurisdiction; and
556.23(viii) any history of drug or alcohol abuse, and any misdemeanor, gross
556.24misdemeanor, or felony conviction;
556.25(2) evidence of graduation from an education program accredited by the ACGC or
556.26its predecessor or successor organization;
556.27(3) a verified copy of a valid and current certification issued by the ABGC or ABMG
556.28as a certified genetic counselor, or by the ABMG as a certified medical geneticist;
556.29(4) additional information as requested by the board, including any additional
556.30information necessary to ensure that the applicant is able to practice with reasonable skill
556.31and safety to the public;
556.32(5) a signed statement verifying that the information in the application is true and
556.33correct to the best of the applicant's knowledge and belief; and
557.1(6) a signed waiver authorizing the board to obtain access to the applicant's records
557.2in this or any other state in which the applicant completed an educational program or
557.3engaged in the practice of genetic counseling.
557.4    Subd. 2. Licensure by reciprocity. To be eligible for licensure by reciprocity,
557.5the applicant must hold a current genetic counselor or medical geneticist registration
557.6or license in another state, the District of Columbia, or a territory of the United States,
557.7whose standards for registration or licensure are at least equivalent to those of Minnesota,
557.8and must:
557.9(1) submit the application materials and fees as required by subdivision 1, clauses
557.10(1), (2), and (4) to (6);
557.11(2) provide a verified copy from the appropriate government body of a current
557.12registration or license for the practice of genetic counseling in another jurisdiction that has
557.13initial registration or licensing requirements equivalent to or higher than the requirements
557.14in subdivision 1; and
557.15(3) provide letters of verification from the appropriate government body in each
557.16jurisdiction in which the applicant holds a registration or license. Each letter must state
557.17the applicant's name, date of birth, registration or license number, date of issuance, a
557.18statement regarding disciplinary actions, if any, taken against the applicant, and the terms
557.19under which the registration or license was issued.
557.20    Subd. 3. Licensure by equivalency. (a) The board may grant a license to an
557.21individual who does not meet the certification requirements in subdivision 1 but who
557.22has been employed as a genetic counselor for a minimum of ten years and provides the
557.23following documentation to the board no later than January 1, 2018:
557.24(1) proof of a master's or higher degree in genetics or related field of study from an
557.25accredited educational institution;
557.26(2) proof that the individual has never failed the ABGC or ABMG certification
557.27examination;
557.28(3) three letters of recommendation, with at least one from an individual eligible
557.29for licensure under this chapter, and at least one from an individual certified as a genetic
557.30counselor by the ABGC or ABMG or an individual certified as a medical geneticist by
557.31the ABMG. An individual who submits a letter of recommendation must have worked
557.32with the applicant in an employment setting during the past ten years and must attest to
557.33the applicant's competency; and
557.34(4) documentation of the completion of 100 hours of NSGC-approved continuing
557.35education credits within the past five years.
557.36(b) This subdivision expires January 1, 2018.
558.1    Subd. 4. License expiration. A genetic counselor license shall be valid for one
558.2year from the date of issuance.
558.3    Subd. 5. License renewal. To be eligible for license renewal, a licensed genetic
558.4counselor must submit to the board:
558.5(1) a renewal application on a form provided by the board;
558.6(2) the renewal fee required under section 147F.17;
558.7(3) evidence of compliance with the continuing education requirements in section
558.8147F.11; and
558.9(4) any additional information requested by the board.

558.10    Sec. 12. [147F.09] BOARD ACTION ON APPLICATIONS FOR LICENSURE.
558.11(a) The board shall act on each application for licensure according to paragraphs
558.12(b) to (d).
558.13(b) The board shall determine if the applicant meets the requirements for licensure
558.14under section 147F.07. The board may investigate information provided by an applicant to
558.15determine whether the information is accurate and complete.
558.16(c) The board shall notify each applicant in writing of action taken on the application,
558.17the grounds for denying licensure if a license is denied, and the applicant's right to review
558.18the board's decision under paragraph (d).
558.19(d) Applicants denied licensure may make a written request to the board, within 30
558.20days of the board's notice, to appear before the advisory council and for the advisory
558.21council to review the board's decision to deny the applicant's license. After reviewing the
558.22denial, the advisory council shall make a recommendation to the board as to whether
558.23the denial shall be affirmed. Each applicant is allowed only one request for review per
558.24licensure period.

558.25    Sec. 13. [147F.11] CONTINUING EDUCATION REQUIREMENTS.
558.26(a) A licensed genetic counselor must complete a minimum of 25 hours of NSGC-
558.27or ABMG-approved continuing education units every two years. If a licensee's renewal
558.28term is prorated to be more or less than one year, the required number of continuing
558.29education units is prorated proportionately.
558.30(b) The board may grant a variance to the continuing education requirements
558.31specified in this section if a licensee demonstrates to the satisfaction of the board that the
558.32licensee is unable to complete the required number of educational units during the renewal
558.33term. The board may allow the licensee to complete the required number of continuing
559.1education units within a time frame specified by the board. In no case shall the board
559.2allow the licensee to complete less than the required number of continuing education units.

559.3    Sec. 14. [147F.13] DISCIPLINE; REPORTING.
559.4For purposes of this chapter, licensed genetic counselors and applicants are subject
559.5to sections 147.091 to 147.162.

559.6    Sec. 15. [147F.15] LICENSED GENETIC COUNSELOR ADVISORY COUNCIL.
559.7    Subdivision 1. Membership. The board shall appoint a five-member Licensed
559.8Genetic Counselor Advisory Council. One member must be a licensed physician with
559.9experience in genetics, three members must be licensed genetic counselors, and one
559.10member must be a public member.
559.11    Subd. 2. Organization. The advisory council shall be organized and administered
559.12under section 15.059, except that section 15.059, subdivision 2, does not apply to this
559.13section. Members shall serve two-year terms, and shall serve until their successors have
559.14been appointed. The council shall select a chair from its membership.
559.15    Subd. 3. Duties. The advisory council shall:
559.16(1) advise the board regarding standards for licensed genetic counselors;
559.17(2) provide for distribution of information regarding licensed genetic counselor
559.18practice standards;
559.19(3) advise the board on enforcement of this chapter;
559.20(4) review applications and recommend granting or denying licensure or license
559.21renewal;
559.22(5) advise the board on issues related to receiving and investigating complaints,
559.23conducting hearings, and imposing disciplinary action in relation to complaints against
559.24licensed genetic counselors; and
559.25(6) perform other duties authorized for advisory councils under chapter 214, as
559.26directed by the board.
559.27    Subd. 4. Expiration. Notwithstanding section 15.059, the advisory council does
559.28not expire.

559.29    Sec. 16. [147F.17] FEES.
559.30    Subdivision 1. Fees. Fees are as follows:
559.31(1) license application fee, $200;
559.32(2) initial licensure and annual renewal, $150; and
559.33(3) late fee, $75.
560.1    Subd. 2. Proration of fees. The board may prorate the initial license fee. All
560.2licensees are required to pay the full fee upon license renewal.
560.3    Subd. 3. Penalty for late renewals. An application for registration renewal
560.4submitted after the deadline must be accompanied by a late fee in addition to the required
560.5fees.
560.6    Subd. 4. Nonrefundable fees. All fees are nonrefundable.
560.7    Subd. 5. Deposit. Fees collected by the board under this section shall be deposited
560.8in the state government special revenue fund.

560.9LACTATION CARE PROVIDERS

560.10    Sec. 17. [148.9801] SCOPE AND APPLICATION.
560.11    Subdivision 1. Scope. Sections 148.9801 to 148.9812 apply to persons who are
560.12applicants for licensure, who are licensed, who use protected titles, or who represent that
560.13they are licensed under sections 148.9801 to 148.9812.
560.14    Subd. 2. Application. Nothing in sections 148.9801 to 148.9812 shall prohibit any
560.15person from providing breastfeeding education and support services, whether or not that
560.16person is licensed under sections 148.9801 to 148.9812.

560.17    Sec. 18. [148.9802] DEFINITIONS.
560.18    Subdivision 1. Application. For purposes of sections 148.9801 to 148.9812, the
560.19following terms have the meanings given.
560.20    Subd. 2. Biennial licensure period. "Biennial licensure period" means the two-year
560.21period for which licensure is effective.
560.22    Subd. 3. Breastfeeding education and support services. "Breastfeeding
560.23education and support services" refers to services such as educating women, families,
560.24health professionals, and the community about the impact of breastfeeding and human
560.25lactation on health and what to expect in the normal course of breastfeeding; facilitating
560.26the development of policies that protect, promote, and support breastfeeding; acting as
560.27an advocate for breastfeeding as the child-feeding norm; providing holistic breastfeeding
560.28support, encouragement, and care from preconception to weaning in order to help women
560.29and their families meet their breastfeeding goals; using principles of adult education when
560.30teaching clients, health care providers, and others in the community; and identifying and
560.31referring high-risk mothers and babies and those requiring clinical treatment to licensed
560.32providers. Any individual, with or without a license, may provide breastfeeding education
560.33and support services.
561.1    Subd. 4. Certified lactation counselor, advanced lactation consultant, or
561.2advanced nurse lactation consultant. "Certified lactation counselor, advanced lactation
561.3consultant, or advanced nurse lactation consultant" means an individual who possesses
561.4certification from the Academy of Lactation Policy and Practice of the Healthy Children
561.5Project, Inc.
561.6    Subd. 5. Clinical lactation services. "Clinical lactation services" refers to the
561.7clinical application of evidence-based practices for evaluation, problem identification,
561.8treatment, education, and consultation in providing lactation care and services to
561.9childbearing families. Clinical lactation services involves one or more of the following
561.10activities: lactation assessment through the systematic collection of data; analysis of data;
561.11creation of lactation care plans; implementation of lactation care plans, including but not
561.12limited to providing demonstration and instruction to parents and communicating with
561.13the primary health care provider; evaluation of outcomes; and recommending the use of
561.14assistive devices when appropriate. Individuals who provide one or more of the services
561.15listed in this subdivision are providing clinical lactation services.
561.16    Subd. 6. Commissioner. "Commissioner" means the commissioner of health or a
561.17designee.
561.18    Subd. 7. Credential. "Credential" means a license, permit, certification, registration,
561.19or other evidence of qualification or authorization to engage in the practice of clinical
561.20lactation care services issued by any authority.
561.21    Subd. 8. International Board-Certified Lactation Consultant. "International
561.22Board-Certified Lactation Consultant" means an individual who possesses certification
561.23from the International Board of Lactation Consultant Examiners as accredited by the
561.24National Commission for Certifying Agencies.
561.25    Subd. 9. License or licensed. "License" or "licensed" means the act or status of a
561.26natural person who meets the requirements of sections 148.9801 to 148.9812.
561.27    Subd. 10. Licensed lactation care provider. "Licensed lactation care provider"
561.28means an individual who meets the requirements of sections 148.9801 to 148.9812, is
561.29licensed by the commissioner, and is permitted to provide clinical lactation services and
561.30use the titles authorized in this section and section 148.9803.
561.31    Subd. 11. Licensee. "Licensee" means a person who meets the requirements of
561.32sections 148.9801 to 148.9812.
561.33    Subd. 12. Licensure by equivalency. "Licensure by equivalency" means a method
561.34of licensure described in section 148.9806, subdivision 2, by which an individual who
561.35possesses a credential from the International Board of Lactation Consultant Examiners
561.36as accredited by the National Commission for Certifying Agencies, from the Academy
562.1of Lactation Policy and Practice of the Healthy Children Project, Inc., or from another
562.2nationally recognized credentialing agency may qualify for licensure.
562.3    Subd. 13. Licensure by reciprocity. "Licensure by reciprocity" means a method
562.4of licensure described in section 148.9806, subdivision 3, by which an individual who
562.5possesses a credential from another jurisdiction may qualify for Minnesota licensure.
562.6    Subd. 14. Protected title. "Protected title" means the title of licensed lactation
562.7consultant, licensed certified lactation counselor, licensed advanced lactation consultant,
562.8licensed advanced nurse lactation consultant, or licensed International Board-Certified
562.9Lactation Consultant.

562.10    Sec. 19. [148.9803] LICENSURE; PROTECTED TITLES AND RESTRICTIONS
562.11ON USE; EXEMPT PERSONS; SANCTIONS.
562.12    Subdivision 1. Unlicensed practice prohibited. Effective July 1, 2017, no person
562.13shall engage in the practice of clinical lactation services unless the person is licensed as a
562.14lactation care provider in accordance with sections 148.9801 to 148.9812.
562.15    Subd. 2. Protected titles and restrictions on use. (a) The terms or phrases "licensed
562.16International Board-Certified Lactation Consultant" or "licensed lactation consultant"
562.17alone or in combination can only be used by an individual licensed under sections 148.9801
562.18to 148.9812 and who possesses a credential from the International Board of Lactation
562.19Consultant Examiners as accredited by the National Commission for Certifying Agencies.
562.20(b) The terms or phrases "licensed certified lactation counselor," "certified lactation
562.21counselor," "licensed advanced lactation consultant," "advanced lactation consultant,"
562.22"licensed advanced nurse lactation consultant," "advanced nurse lactation consultant,"
562.23"licensed lactation counselor," or "licensed lactation consultant" alone or in combination
562.24can only be used by an individual licensed under sections 148.9801 to 148.9812 and who
562.25possesses a credential from the Academy of Lactation Policy and Practice of the Healthy
562.26Children Project, Inc.
562.27    Subd. 3. Exempt persons. This section does not apply to:
562.28(1) a person employed as a lactation consultant or lactation counselor by the
562.29government of the United States or any agency of it. However, use of the protected titles
562.30under those circumstances is allowed only in connection with performance of official
562.31duties for the federal government;
562.32(2) a student participating in supervised fieldwork or supervised coursework that
562.33is necessary to meet the requirements of sections 148.9801 to 148.9812 if the student is
562.34designated by a title which clearly indicates the student's status as a student trainee. Any
563.1use of the protected titles under these circumstances is allowed only while the person is
563.2performing the duties of the supervised fieldwork or supervised coursework;
563.3(3) a person visiting and then leaving the state and performing clinical lactation
563.4services while in the state if the services are performed no more than 30 days in a calendar
563.5year as part of a professional activity that is limited in scope and duration and is in
563.6association with a licensed lactation care provider licensed under sections 148.9801 to
563.7148.9812, and:
563.8(i) the person is credentialed under the law of another state which has credentialing
563.9requirements at least as stringent as the requirements of sections 148.9801 to 148.9812;
563.10(ii) the person meets the requirements for certification as an International
563.11Board-Certified Lactation Consultant established by the International Board of Lactation
563.12Consultant Examiners as accredited by the National Commission for Certifying Agencies;
563.13or
563.14(iii) the person is certified as a certified lactation counselor, advanced lactation
563.15consultant, or advanced nurse lactation consultant by the Academy of Lactation Policy
563.16and Practice of the Healthy Children Project, Inc.;
563.17(4) a person licensed to practice as a dentist under chapter 150A, physician or
563.18osteopath under chapter 147, nurse under sections 148.171 to 148.285, physician assistant
563.19under chapter 147A, dietitian under sections 148.621 to 148.634, or midwife under chapter
563.20147D, when providing clinical lactation services incidental to the practice of the person's
563.21profession, except the person shall not use the protected titles;
563.22(5) an employee of a department, agency, or division of state, county, or local
563.23government, when providing clinical lactation services within the discharge of the
563.24employee's official duties including, but not limited to, peer counselors in the Special
563.25Supplemental Nutrition Program for Women, Infants, and Children; or
563.26(6) a volunteer providing clinical lactation services, if:
563.27(i) the volunteer does not use the protected titles or represent that the volunteer is
563.28licensed or has the clinical skills and abilities associated with licensure;
563.29(ii) the volunteer service is performed at no cost, with no fee charged to or payment,
563.30monetary or otherwise, provided by the individual or group served; and
563.31(iii) the volunteer receives no compensation, monetary or otherwise, except for
563.32administrative expenses including, but not limited to, mileage.
563.33    Subd. 4. Sanctions. A person who practices clinical lactation services or represents
563.34that they are a licensed lactation care provider by or through the use of any title described
563.35in subdivision 2 without prior licensure according to sections 148.9801 to 148.9812
564.1is subject to sanctions or action against continuing the activity according to section
564.2148.9804, chapter 214, or other statutory authority.
564.3    Subd. 5. Exemption. Nothing in sections 148.9801 to 148.9812 shall prohibit the
564.4practice of any profession or occupation, licensed or registered by the state, by any person
564.5duly licensed or registered to practice the profession or occupation or to perform any act
564.6that falls within the scope of practice of the profession or occupation.

564.7    Sec. 20. [148.9804] PENALTY.
564.8If the commissioner finds that a licensed lactation care provider has violated
564.9the provisions of sections 148.9801 to 148.9812 or rules adopted under those sections,
564.10the commissioner may impose a civil penalty not exceeding $10,000 for each separate
564.11violation. The amount of the civil penalty shall be fixed so as to deprive the licensed
564.12lactation care provider of any economic advantage gained by reason of the violation
564.13charged, to discourage similar violations, and to reimburse the commissioner for the cost
564.14of the investigation and proceeding, including, but not limited to: fees paid for services
564.15provided by the Office of Administrative Hearings, legal and investigative services
564.16provided by the Office of the Attorney General, services of court reporters, witnesses, and
564.17reproduction of records.

564.18    Sec. 21. [148.9806] APPLICATION REQUIREMENTS; PROCEDURE.
564.19    Subdivision 1. Application for licensure. An applicant for licensure must:
564.20(1) have a current certification from the International Board of Lactation Consultant
564.21Examiners as accredited by the National Commission for Certifying Agencies, the
564.22Academy of Lactation Policy and Practice of the Healthy Children Project, Inc., or another
564.23jurisdiction whose standards for credentialing are determined by the commissioner to be
564.24equivalent to or exceed the requirements for licensure under subdivision 2;
564.25(2) submit a completed application for licensure on forms provided by the
564.26commissioner and supply the information requested on the application, including:
564.27(i) the applicant's name, business address, business telephone number, business
564.28setting, and daytime telephone number;
564.29(ii) a description of the applicant's education and training, including a list of degrees
564.30received from educational institutions;
564.31(iii) the applicant's work history for the six years preceding the application, including
564.32the number of hours worked;
564.33(iv) a list of all lactation consulting credentials currently and previously held in
564.34Minnesota and other jurisdictions;
565.1(v) a description of any jurisdiction's refusal to credential the applicant;
565.2(vi) a description of all professional disciplinary actions initiated against the
565.3applicant in any jurisdiction;
565.4(vii) information on any physical or mental condition or chemical dependency
565.5that impairs the applicant's ability to provide clinical lactation services with reasonable
565.6judgment or safety;
565.7(viii) a description of any misdemeanor, gross misdemeanor, or felony conviction
565.8that is reasonably related to the practice of clinical lactation services; and
565.9(ix) a description of any state or federal court order, including a conciliation court
565.10order or a disciplinary order, related to the individual's clinical lactation services practice;
565.11(3) submit with the application all fees required by section 148.9811;
565.12(4) sign a statement that the information in the application is true and correct to the
565.13best of the applicant's knowledge and belief;
565.14(5) sign a waiver authorizing the commissioner to obtain access to the applicant's
565.15records in this or any other state in which the applicant holds or previously held a
565.16credential for the practice of an occupation, completed a clinical lactation services
565.17education program, or engaged in the practice of clinical lactation services;
565.18(6) within 30 days of a request, submit additional information as requested by the
565.19commissioner to clarify information in the application, including information to determine
565.20whether the individual has engaged in conduct warranting disciplinary action under
565.21section 148.9812; and
565.22(7) submit the additional information required for licensure by equivalency or
565.23licensure by reciprocity.
565.24    Subd. 2. Credentialed applicants. An applicant who is credentialed by the
565.25International Board of Lactation Consultant Examiners as accredited by the National
565.26Commission for Certifying Agencies as an International Board-Certified Lactation
565.27Consultant or an applicant who is credentialed by the Academy of Lactation Policy and
565.28Practice of the Healthy Children Project, Inc. may be eligible for licensure by equivalency
565.29as a licensed lactation care provider. Nothing in this section limits the commissioner's
565.30authority to deny licensure based upon the grounds for discipline in section 148.9812.
565.31Applicants under this subdivision must provide the materials required in subdivision
565.321 and must also provide:
565.33(1) verified documentation from the International Board of Lactation Consultant
565.34Examiners stating that the applicant is credentialed as an International Board-Certified
565.35Lactation Consultant, or verified documentation from the Academy of Lactation Policy
565.36and Practice of the Healthy Children Project, Inc., that the applicant is credentialed as a
566.1certified lactation counselor, advanced lactation consultant, or advanced nurse lactation
566.2consultant. The applicant is responsible for obtaining this documentation; and
566.3(2) a waiver authorizing the commissioner to obtain access to the applicant's records
566.4maintained by the International Board of Lactation Consultant Examiners or the Academy
566.5of Lactation Policy and Practice of the Healthy Children Project, Inc.
566.6    Subd. 3. Applicants credentialed in another jurisdiction. (a) An applicant
566.7who holds a current credential as a licensed lactation consultant, licensed lactation care
566.8provider, or licensed lactation counselor in the District of Columbia or a state or territory
566.9of the United States whose standards for credentialing are determined by the commissioner
566.10to be equivalent to or exceed the requirements for licensure under subdivision 2, may be
566.11eligible for licensure by reciprocity as a licensed lactation care provider. Nothing in this
566.12section limits the commissioner's authority to deny licensure based upon the grounds for
566.13discipline in section 148.9812.
566.14(b) Applicants under this subdivision must provide the materials required in
566.15subdivision 1 and must also request that the appropriate government body in each
566.16jurisdiction in which the applicant holds or held credentials as a licensed lactation care
566.17provider or substantially similar title send a letter to the commissioner verifying the
566.18applicant's credentials. A license shall not be issued until the commissioner receives a
566.19letter verifying each of the applicant's credentials. Each letter must include the applicant's
566.20name and date of birth, credential number and date of issuance, a statement regarding
566.21investigations pending and disciplinary actions taken or pending against the applicant,
566.22current status of the credential, and the terms under which the credential was issued.
566.23    Subd. 4. Action on applications for licensure. (a) The commissioner shall
566.24approve, approve with conditions, or deny licensure. The commissioner shall act on an
566.25application for licensure according to paragraphs (b) to (d).
566.26(b) The commissioner shall determine if the applicant meets the requirements for
566.27licensure. The commissioner may investigate information provided by an applicant to
566.28determine whether the information is accurate and complete.
566.29(c) The commissioner shall notify an applicant of action taken on the application
566.30and, if licensure is denied or approved with conditions, the grounds for the commissioner's
566.31determination.
566.32(d) An applicant denied licensure or granted licensure with conditions may make
566.33a written request to the commissioner, within 30 days of the date of the commissioner's
566.34determination, for reconsideration of the commissioner's determination. Individuals
566.35requesting reconsideration may submit information which the applicant wants considered
566.36in the reconsideration. After reconsideration of the commissioner's determination to deny
567.1licensure or grant licensure with conditions, the commissioner shall determine whether
567.2the original determination should be affirmed or modified. An applicant is allowed no
567.3more than one request in any one biennial licensure period for reconsideration of the
567.4commissioner's determination to deny licensure or approve licensure with conditions.

567.5    Sec. 22. [148.9807] LICENSURE RENEWAL.
567.6    Subdivision 1. Renewal requirements. To be eligible for licensure renewal, a
567.7licensee must:
567.8(1) submit a completed and signed application for licensure renewal on forms
567.9provided by the commissioner;
567.10(2) submit the renewal fee required under section 148.9811;
567.11(3) submit proof that the licensee is currently credentialed by the International
567.12Board of Lactation Consultant Examiners as accredited by the National Commission
567.13for Certifying Agencies, the Academy of Lactation Policy and Practice of the Healthy
567.14Children Project, Inc., or another jurisdiction as described in section 148.9806; and
567.15(4) submit additional information as requested by the commissioner to clarify
567.16information presented in the renewal application. The information must be submitted
567.17within 30 days after the commissioner's request.
567.18    Subd. 2. Renewal deadline. (a) Except as provided in paragraph (c), licenses must
567.19be renewed every two years. Licensees must comply with the procedures in paragraphs
567.20(b) to (e).
567.21(b) Each license must state an expiration date. An application for licensure renewal
567.22must be received by the Department of Health at least 30 calendar days before the
567.23expiration date.
567.24(c) If the commissioner changes the renewal schedule and the new expiration date is
567.25less than two years in the future, the fee to be reported at the next renewal must be prorated.
567.26(d) An application for licensure renewal not received within the time required under
567.27paragraph (b), but received on or before the expiration date, must be accompanied by a
567.28late fee in addition to the renewal fee specified in section 148.9811.
567.29(e) Licensure renewals received after the expiration date shall not be accepted and
567.30persons seeking licensed status must comply with the requirements of section 148.9808.
567.31    Subd. 3. Licensure renewal notice. At least 60 calendar days before the expiration
567.32date in subdivision 2, the commissioner shall notify the licensee. The notice must include
567.33an application for licensure renewal and notice of fees required for renewal. The licensee's
567.34failure to receive notice does not relieve the licensee of the obligation to meet the renewal
567.35deadline and other requirements for licensure renewal.

568.1    Sec. 23. [148.9808] LICENSURE RENEWAL; AFTER EXPIRATION DATE.
568.2An individual whose application for licensure renewal is received after the licensure
568.3expiration date must submit the following:
568.4(1) a completed and signed application for licensure following lapse in licensed
568.5status on forms provided by the commissioner;
568.6(2) the renewal fee and the late fee required under section 148.9811;
568.7(3) proof that the licensee is currently credentialed by the International Board of
568.8Lactation Consultant Examiners, the Academy of Lactation Policy and Practice of the
568.9Healthy Children Project, Inc., or another jurisdiction as described in section 148.9806; and
568.10(4) additional information as requested by the commissioner to clarify information in
568.11the application, including information to determine whether the individual has engaged in
568.12conduct warranting disciplinary action as set forth in section 148.9812. This information
568.13must be submitted within 30 days after the commissioner's request.

568.14    Sec. 24. [148.9809] CHANGE OF NAME, ADDRESS, OR EMPLOYMENT.
568.15A licensee who changes a name, address, or employment must inform the
568.16commissioner, in writing, of the change of name, address, employment, business address,
568.17or business telephone number within 30 days. A change in name must be accompanied by
568.18a copy of a marriage certificate or court order. All notices or other correspondence mailed
568.19to or served on a licensee by the commissioner at the licensee's address on file with the
568.20commissioner shall be considered as having been received by the licensee.

568.21    Sec. 25. [148.9810] RECIPIENT NOTIFICATION.
568.22    Subdivision 1. Required notification. In the absence of a physician referral or
568.23prior authorization, and before providing clinical lactation services for remuneration or
568.24expectation of payment from the client, a licensed lactation care provider must provide the
568.25following written notification in all capital letters of 12-point or larger boldface type to the
568.26client, parent, or guardian: "YOUR HEALTH CARE PROVIDER, INSURER, OR PLAN
568.27MAY REQUIRE A PHYSICIAN REFERRAL OR PRIOR AUTHORIZATION AND
568.28YOU MAY BE OBLIGATED FOR PARTIAL OR FULL PAYMENT FOR CLINICAL
568.29LACTATION SERVICES RENDERED." Information other than this notification may be
568.30included as long as the notification remains conspicuous on the face of the document. A
568.31nonwritten disclosure format may be used to satisfy the recipient notification requirement
568.32when necessary to accommodate the physical condition of a client or client's guardian.
569.1    Subd. 2. Evidence of recipient notification. The licensed lactation care provider
569.2is responsible for providing evidence of compliance with the recipient notification
569.3requirement of this section.

569.4    Sec. 26. [148.9811] FEES.
569.5    Subdivision 1. Initial licensure fee. The initial licensure fee for licensed lactation
569.6care providers is $80. The commissioner shall prorate fees based on the number of
569.7quarters remaining in the biennial licensure period.
569.8    Subd. 2. Licensure renewal fee. The biennial licensure renewal fee for licensed
569.9lactation care providers is $80.
569.10    Subd. 3. Duplicate license fee. The fee for a duplicate license is $25.
569.11    Subd. 4. Late fee. The fee for late submission of a renewal application is $25.
569.12    Subd. 5. Verification to other states. The fee for verification of licensure to other
569.13states is $25.
569.14    Subd. 6. Use of fees. All fees are nonrefundable. Fees collected under this section
569.15shall be deposited in the state treasury and credited to the state government special revenue
569.16fund for the purposes of administering sections 148.9801 to 148.9812.
569.17    Subd. 7. Penalty fee. (a) The penalty for using one of the protected titles without a
569.18current license after the credential has expired and before it is renewed is the amount of
569.19the license renewal fee for any part of the first month, plus the license renewal fee for any
569.20part of any subsequent month up to 36 months.
569.21(b) The penalty for applicants who use the protected title of licensed lactation care
569.22provider before being issued a license is the amount of the license application fee for any
569.23part of the first month, plus the license application fee for any part of any subsequent
569.24month up to 36 months.
569.25(c) For conduct described in paragraph (a) or (b) exceeding six months, payment of a
569.26penalty does not preclude any disciplinary action reasonably justified by the individual case.

569.27    Sec. 27. [148.9812] GROUNDS FOR DISCIPLINE OR DENIAL OF
569.28LICENSURE; INVESTIGATION PROCEDURES; DISCIPLINARY ACTIONS.
569.29    Subdivision 1. Grounds for discipline or denial of licensure. The commissioner
569.30may deny an application for licensure, may approve licensure with conditions, or may
569.31discipline a licensee using any disciplinary action listed in subdivision 3 on proof that
569.32the individual has:
569.33(1) intentionally submitted false or misleading information to the commissioner;
570.1(2) failed, within 30 days, to provide information in response to a written request by
570.2the commissioner;
570.3(3) performed services of a licensed lactation care provider in an incompetent
570.4manner, in a manner that is outside of the provider's scope of practice, or in a manner that
570.5falls below the community standard of care;
570.6(4) violated a provision of sections 148.9801 to 148.9812;
570.7(5) aided or abetted another person in violating a provision of sections 148.9801 to
570.8148.9812;
570.9(6) failed to perform services with reasonable judgment, skill, or safety due to the
570.10use of alcohol or drugs, or other physical or mental impairment;
570.11(7) been convicted of violating any state or federal law, rule, or regulation which
570.12directly relates to the practice of clinical lactation services;
570.13(8) been disciplined for conduct in the practice of an occupation by the state of
570.14Minnesota, another jurisdiction, or a national professional association, if any of the
570.15grounds for discipline are the same or substantially equivalent to those in sections
570.16148.9801 to 148.9812;
570.17(9) not cooperated with the commissioner in an investigation conducted according to
570.18subdivision 2;
570.19(10) advertised in a manner that is false or misleading;
570.20(11) engaged in dishonest, unethical, or unprofessional conduct in connection with the
570.21practice of clinical lactation services that is likely to deceive, defraud, or harm the public;
570.22(12) demonstrated a willful or careless disregard for the health, welfare, or safety
570.23of a client;
570.24(13) performed medical diagnosis or provided treatment without being licensed to
570.25do so under the laws of this state;
570.26(14) paid or promised to pay a commission or part of a fee to any person who
570.27contacts the licensed lactation care provider for consultation or sends patients to the
570.28licensed lactation care provider for treatment;
570.29(15) engaged in abusive or fraudulent billing practices, including violations of
570.30federal Medicare and Medicaid laws, Food and Drug Administration regulations, or state
570.31medical assistance laws;
570.32(16) obtained money, property, or services from a consumer through the use of
570.33undue influence, high-pressure sales tactics, harassment, duress, deception, or fraud;
570.34(17) performed services for a client who had no possibility of benefiting from the
570.35services;
571.1(18) failed to refer a client for medical evaluation when appropriate or when a client
571.2indicated symptoms associated with diseases that could be medically or surgically treated;
571.3(19) engaged in conduct with a client that is sexual, or may reasonably be interpreted
571.4by the client as sexual, or in any verbal behavior that is seductive or sexually demeaning
571.5to a client;
571.6(20) violated a federal or state court order, including a conciliation court judgment,
571.7or a disciplinary order issued by the commissioner, related to the person's clinical lactation
571.8services practice; or
571.9(21) any other just cause related to the practice of clinical lactation services.
571.10    Subd. 2. Investigation of complaints. The commissioner may initiate an
571.11investigation upon receiving a complaint or other oral or written communication that
571.12alleges or implies that a person has violated sections 148.9801 to 148.9812. In the
571.13receipt, investigation, and hearing of a complaint that alleges or implies that a person has
571.14violated sections 148.9801 to 148.9812, the commissioner shall follow the procedures
571.15in section 214.10.
571.16    Subd. 3. Disciplinary action. If the commissioner finds that a licensed lactation
571.17care provider should be disciplined according to subdivision 1, the commissioner may
571.18take any one or more of the following actions:
571.19(1) refuse to grant or renew licensure;
571.20(2) approve licensure with conditions;
571.21(3) revoke licensure;
571.22(4) suspend licensure;
571.23(5) any reasonable lesser action including, but not limited to, reprimand or restriction
571.24on licensure; or
571.25(6) any action authorized by statute.
571.26    Subd. 4. Effect of specific disciplinary action on use of title. Upon notice from
571.27the commissioner denying licensure renewal or upon notice that disciplinary actions have
571.28been imposed and the person is no longer entitled to provide clinical lactation services and
571.29use one of the protected titles, the person shall cease to provide clinical lactation services,
571.30to use the title protected by sections 148.9801 to 148.9812, and to represent to the public
571.31that the person is licensed by the commissioner.
571.32    Subd. 5. Reinstatement requirements after disciplinary action. A person who
571.33has had licensure suspended may request and provide justification for reinstatement
571.34following the period of suspension specified by the commissioner. The requirements
571.35of section 148.9808 for renewing licensure and any other conditions imposed with the
571.36suspension must be met before licensure may be reinstated.
572.1    Subd. 6. Authority to contract. The commissioner shall contract with the health
572.2professionals services program as authorized by sections 214.31 to 214.37 to provide these
572.3services to practitioners under sections 148.9801 to 148.9812. The health professionals
572.4services program does not affect the commissioner's authority to discipline violations of
572.5sections 148.9801 to 148.9812.

572.6MASSAGE AND BODYWORK THERAPY

572.7    Sec. 28. [148.982] DEFINITIONS.
572.8    Subdivision 1. Applicability. The definitions in this section apply to sections
572.9148.982 to 148.9885.
572.10    Subd. 2. Advertise. "Advertise" means to publish, display, broadcast, or disseminate
572.11information by any means that can be reasonably construed as an advertisement.
572.12    Subd. 3. Advisory council. "Advisory council" means the Registered Massage and
572.13Bodywork Therapist Advisory Council established under section 148.9861.
572.14    Subd. 4. Applicant. "Applicant" means an individual applying for registration or
572.15renewal according to sections 148.982 to 148.9885.
572.16    Subd. 5. Board. "Board" means the Minnesota Board of Nursing.
572.17    Subd. 6. Client. "Client" means a recipient of massage and bodywork therapy
572.18services.
572.19    Subd. 7. Competency exam. "Competency exam" means a massage and bodywork
572.20therapy competency assessment that is approved by the board and is psychometrically
572.21valid, based on a job task analysis, and administered by a national testing organization.
572.22    Subd. 8. Contact hour. "Contact hour" means an instructional session of at least
572.2350 consecutive minutes, excluding coffee breaks, registration, meals without a speaker,
572.24and social activities.
572.25    Subd. 9. Credential. "Credential" means a license, registration, or certification.
572.26    Subd. 10. Health care provider. "Health care provider" means a person who has a
572.27state credential to provide one or more of the following services: medical as defined in
572.28section 147.081, chiropractic as defined in section 148.01, podiatry as defined in section
572.29153.01, dentistry as defined in section 150A.01, physical therapy as defined in section
572.30148.65, or other state-credentialed providers.
572.31    Subd. 11. Massage and bodywork therapy. "Massage and bodywork therapy"
572.32means a health care service involving systematic and structured touch and palpation, and
572.33pressure and movement of the muscles, tendons, ligaments, and fascia, in order to reduce
572.34muscle tension, relieve soft tissue pain, improve circulation, increase flexibility, increase
573.1activity of the parasympathetic branch of the autonomic nervous system, or to promote
573.2general wellness, by use of the techniques and applications described in section 148.983.
573.3    Subd. 12. Municipality. "Municipality" means a county, town, or home rule
573.4charter or statutory city.
573.5    Subd. 13. Physical agent modality. "Physical agent modality" means modalities
573.6that use the properties of light, water, temperature, sound, and electricity to produce
573.7a response in soft tissue.
573.8    Subd. 14. Practice of massage and bodywork therapy. "Practice of massage and
573.9bodywork therapy" means to engage professionally for compensation or as a volunteer in
573.10massage and bodywork therapy or the instruction of professional technique coursework.
573.11    Subd. 15. Professional organization. "Professional organization" means an
573.12organization that represents massage and bodywork therapists, was established before
573.13the year 2005, offers professional liability insurance as a benefit of membership, has an
573.14established code of professional ethics, and is board approved.
573.15    Subd. 16. Registered massage and bodywork therapist or registrant. "Registered
573.16massage and bodywork therapist" or "registrant" means a health care provider registered
573.17according to sections 148.982 to 148.9885, for the practice of massage and bodywork
573.18therapy.
573.19    Subd. 17. State. "State" means any state in the United States, the District of
573.20Columbia, Puerto Rico, the United States Virgin Islands, or Guam; or any Canadian
573.21province or similar political subdivision of a foreign country; except "this state" means the
573.22state of Minnesota.

573.23    Sec. 29. [148.983] MASSAGE AND BODYWORK THERAPY.
573.24(a) The practice of massage and bodywork therapy by a registered massage and
573.25bodywork therapist includes the following:
573.26(1) use of any or all of the following techniques using the hands, forearms, elbows,
573.27knees, or feet, or handheld, nonpuncturing, mechanical, or electrical devices that
573.28mimic or enhance the actions of the human hands: effleurage or gliding; petrissage or
573.29kneading; vibration and jostling; friction; tapotement or percussion; compression; fascial
573.30manipulation; passive stretching within the normal anatomical range of motion; and
573.31(2) application and use of any of the following: oils, lotions, gels, rubbing alcohol, or
573.32powders for the purpose of lubricating the skin to be massaged; creams, with the exception
573.33of prescription medicinal creams; hot or cold stones; essential oils as used in aromatherapy
573.34for inhalation or diluted for topical application; salt glows and wraps; or heat or ice.
574.1(b) The practice of massage and bodywork therapy does not include any of the
574.2following:
574.3(1) diagnosing any illness or disease;
574.4(2) altering a course of recommended massage and bodywork therapy when
574.5recommended by a state-credentialed health care provider without first consulting that
574.6health care provider;
574.7(3) prescription of drugs or medicines;
574.8    (4) intentional adjustment, manipulation, or mobilization of abnormal articulations,
574.9neurological disturbances, structural alterations, biomechanical alterations as described in
574.10section 148.01, including by means of a high-velocity, low-amplitude thrusting force or by
574.11means of manual therapy or mechanical therapy for the manipulation or adjustment of
574.12joint articulation as defined in section 146.23; or
574.13(5) application of physical agent modalities, needles that puncture the skin, or
574.14injection therapy.

574.15    Sec. 30. [148.984] LIMITATIONS ON PRACTICE.
574.16If a massage and bodywork therapist has reason to believe a client's medical
574.17condition is beyond the scope of practice established by sections 148.982 to 148.9885, or
574.18by rules of the board for a registered massage and bodywork therapist, the massage and
574.19bodywork therapist must refer the client to a health care provider as defined in sections
574.20148.982 to 148.9885, but is not prohibited from comanaging the client.

574.21    Sec. 31. [148.985] PROTECTED TITLES AND RESTRICTIONS ON USE.
574.22    Subdivision 1. Designation. An individual regulated by sections 148.982 to
574.23148.9885, is designated as a "registered massage and bodywork therapist" or "RMBT."
574.24    Subd. 2. Title protection. Effective July 1, 2017, no individual may use the title
574.25"registered massage and bodywork therapist," or use, in connection with the individual's
574.26name, the letters "RMBT," or any other titles, words, letters, abbreviations, or insignia
574.27indicating or implying that the individual is registered or eligible for registration by this
574.28state as a registered massage therapist unless the individual has been registered under
574.29sections 148.982 to 148.9885.
574.30    Subd. 3. Identification of registrants. (a) A massage and bodywork therapist
574.31registered according to sections 148.982 to 148.9885 shall be identified as a "registered
574.32massage and bodywork therapist." If not written in full, this must be designated as "RMBT."
575.1(b) The board may adopt rules for the implementation of this section, including the
575.2identification of terms or references that may be used only by registered massage and
575.3bodywork therapists as necessary to protect the public.
575.4(c) A massage and bodywork therapist who is credentialed by another state, or who
575.5holds a certification from organizations, agencies, or educational providers may advertise
575.6using those terms or letters to indicate that credential, provided that the credentialing
575.7body is clearly identified.
575.8    Subd. 4. Other health care providers. Nothing in sections 148.982 to 148.9885
575.9may be construed to prohibit, restrict the practice of, or require massage and bodywork
575.10therapy registration of any of the following:
575.11(1) a health care provider credentialed by this state, using massage and bodywork
575.12therapy techniques within the scope of the provider's credential, provided the provider
575.13does not advertise or imply that the provider is registered according to sections 148.982
575.14to 148.9885; or
575.15(2) the natural health procedures, practices, and treatments in section 146A.01,
575.16subdivision 4, provided that the provider does not advertise or imply that the provider is
575.17registered according to sections 148.982 to 148.9885.

575.18    Sec. 32. [148.986] POWERS OF BOARD.
575.19The board, acting with the advice of the advisory council, shall issue registrations to
575.20duly qualified applicants and shall exercise the following powers and duties:
575.21(1) adopt rules, including standards of practice and a professional code of ethics,
575.22consistent with the law, as may be necessary to enable the board to implement the
575.23provisions of sections 148.982 to 148.9885;
575.24(2) assign duties to the advisory council that are necessary to implement the
575.25provisions of sections 148.982 to 148.9885;
575.26(3) approve or conduct a competency exam;
575.27(4) appoint members to the advisory council according to section 148.9861 and
575.28chapter 214;
575.29(5) enforce sections 148.982 to 148.9885; investigate violations of section 148.9882
575.30by a registrant or applicant; impose discipline as described in section 148.9882, and incur
575.31any necessary expense;
575.32(6) maintain a record of names and addresses of registrants;
575.33(7) keep a permanent record of all its proceedings;
576.1(8) distribute information regarding massage and bodywork therapy standards,
576.2including applications and forms necessary to carry into effect the provisions of sections
576.3148.982 to 148.9885;
576.4(9) take action on applications according to section 148.9881; and
576.5(10) employ and establish the duties of necessary personnel.

576.6    Sec. 33. [148.9861] REGISTERED MASSAGE AND BODYWORK THERAPIST
576.7ADVISORY COUNCIL.
576.8    Subdivision 1. Creation; membership. (a) The Registered Massage and Bodywork
576.9Therapist Advisory Council is created and is composed of five members appointed by
576.10the board. All members must have resided in this state for at least three years prior to
576.11appointment. The advisory council consists of:
576.12(1) two public members, as defined in section 214.02;
576.13(2) three members who, except for initial appointees, are registered massage and
576.14bodywork therapists. Initial appointees must practice massage and bodywork therapy.
576.15An initial appointee shall be removed from the council if the appointee does not obtain
576.16registration under section 148.987 within a reasonable time after registration procedures
576.17are established.
576.18(b) A person may not be appointed to serve more than two consecutive full terms.
576.19(c) No more than one member of the advisory council may be an owner or
576.20administrator of a massage and bodywork therapy education provider.
576.21    Subd. 2. Vacancies. When a vacancy occurs for a member who is a registered
576.22massage and bodywork therapist, the board may appoint a member from among qualified
576.23candidates or from a list of nominees submitted by professional organizations that contains
576.24twice the number of nominees as vacancies. The board may fill vacancies occurring on
576.25the advisory council for unexpired terms according to this section. Members shall retain
576.26membership until a qualified successor is appointed.
576.27    Subd. 3. Terms; compensation; removal. Membership terms shall be as provided
576.28in section 15.059, subdivision 2. The members appointed under subdivision 1, clause (2),
576.29shall serve terms that are coterminous with the governor. Members shall be compensated
576.30as provided in section 15.059, subdivision 3. Members may be removed and vacancies
576.31filled as provided in section 15.059, subdivision 4, except as provided in subdivision 2.
576.32    Subd. 4. Chair. The council must elect a chair from among its members.
576.33    Subd. 5. Staffing. The Minnesota Board of Nursing shall provide meeting space
576.34and administrative support for the advisory council.
576.35    Subd. 6. Duties. The advisory council shall advise the board regarding:
577.1(1) establishment of standards of practice and a code of ethics for registered massage
577.2and bodywork therapists;
577.3(2) distribution of information regarding massage and bodywork standards;
577.4(3) enforcement of sections 148.982 to 148.9885;
577.5(4) applications and recommendations of applicants for registration or registration
577.6renewal;
577.7(5) complaints and recommendations regarding disciplinary matters and proceedings
577.8according to sections 214.10; 214.103; and 214.13, subdivisions 6 and 7;
577.9(6) approval or creation of a competency exam granting status as an approved
577.10education provider; and
577.11(7) performance of other duties of advisory councils under chapter 214, or as
577.12directed by the board.
577.13    Subd. 7. Sunset. The advisory council shall not expire.

577.14    Sec. 34. [148.987] REGISTRATION REQUIREMENTS.
577.15    Subdivision 1. Registration. To be eligible for registration according to sections
577.16148.982 to 148.9885, an applicant must:
577.17(1) pay applicable fees;
577.18(2) submit to a criminal background check and pay the fees associated with obtaining
577.19the criminal background check. The background check shall be conducted in accordance
577.20with section 214.075; and
577.21(3) file a written application on a form provided by the board that includes:
577.22(i) the applicant's name, Social Security number, home address and telephone
577.23number, business address and telephone number, and business setting;
577.24(ii) provide proof, as required by the board, of:
577.25(A) having obtained a high school diploma or its equivalent;
577.26(B) being 18 years of age or older;
577.27(C) current cardiopulmonary resuscitation and first aid certification;
577.28(D) current professional liability insurance coverage, with a minimum of $1,000,000
577.29of coverage per occurrence; and
577.30    (E) proof, as required by the board, that the applicant has completed a postsecondary
577.31course of study that includes:
577.32    (aa) science, including anatomy and physiology, kinesiology, pathology, hygiene,
577.33and standard precautions; and
577.34    (bb) clinical practice in massage and bodywork therapy techniques; supervised
577.35practice; professional ethics and standards of practice; business and legal practices related
578.1to massage and bodywork therapy; and history, theory, and research related to massage
578.2and bodywork therapy;
578.3(iii) unless registered under subdivision 3 or 4, successful completion of a
578.4competency exam;
578.5(iv) a list of credentials or memberships held in this state or other states or from
578.6private credentialing or professional organizations;
578.7(v) a description of any other state or municipality's refusal to credential the applicant;
578.8(vi) a description of all professional disciplinary actions initiated against the
578.9applicant in any jurisdiction;
578.10(vii) any history of drug or alcohol abuse;
578.11(viii) any misdemeanor, gross misdemeanor, or felony conviction;
578.12(ix) additional information as requested by the board;
578.13(x) the applicant's signature on a statement that the information in the application is
578.14true and correct to the best of the applicant's knowledge; and
578.15(xi) the applicant's signature on a waiver authorizing the board to obtain access to
578.16the applicant's records in this state or any other state in which the applicant has engaged in
578.17the practice of massage and bodywork therapy.
578.18    Subd. 2. Registration prohibited. The board may deny an application for
578.19registration if an applicant:
578.20(1) has been convicted in this state of any of the following crimes, or of equivalent
578.21crimes in another state:
578.22(i) prostitution as defined under section 609.321, 609.324, or 609.3242;
578.23(ii) criminal sexual conduct under sections 609.342 to 609.3451, or 609.3453; or
578.24    (iii) a violent crime as defined under section 611A.08, subdivision 6;
578.25    (2) is a registered sex offender under section 243.166;
578.26(3) has been subjected to disciplinary action under section 146A.09, if the board
578.27determines such denial is necessary to protect the public; or
578.28(4) if an applicant is charged with or under investigation for complaints in this state or
578.29any state that would constitute a violation of the statutes or rules established for the practice
578.30of massage and bodywork therapy in this state, the applicant shall not be registered until
578.31the complaints have been resolved in the applicant's favor. Should a complaint be resolved
578.32in favor of the complainant, the application for registration in this state may be denied.
578.33    Subd. 3. Registration by endorsement. (a) To be eligible for registration by
578.34endorsement, an applicant shall:
578.35(1) meet the requirements for registration in subdivision 1, clauses (1), (2), and
578.36(3), items (v) to (xi); and
579.1(2) provide proof of a current and unrestricted equivalent credential in another
579.2state that has qualifications at least equivalent to the requirements of sections 148.982 to
579.3148.9885. The proof shall include records as required by rules of the board.
579.4(b) Registrations issued by endorsement shall expire on the same schedule and be
579.5renewed by the same procedures as registrations issued under subdivision 1.
579.6    Subd. 4. Registration by grandfathering. (a) To be eligible for registration by
579.7grandfathering, an applicant shall:
579.8(1) meet the requirements for registration in subdivision 1, clauses (1), (2), and
579.9(3), items (v) to (xi); and
579.10(2) provide documentation as specified by the board demonstrating the applicant has
579.11met at least one of the following qualifications:
579.12(i) successful completion of at least 500 hours of supervised classroom and hands-on
579.13instruction relating to massage and bodywork therapy;
579.14(ii) successful completion of a competency exam;
579.15(iii) evidence of experience in the practice of massage and bodywork therapy for at
579.16least two of the previous five years immediately preceding application; or
579.17(iv) active membership in a professional organization for at least two of the previous
579.18five years immediately preceding application.
579.19(b) Registrations issued by grandfathering shall expire and be renewed on the same
579.20schedule and by the same procedures as registrations issued under subdivision 1.
579.21(c) This subdivision is effective for two years after the first date the board has made
579.22applications available.
579.23    Subd. 5. Temporary permit. A temporary permit to practice as a registered
579.24massage and bodywork therapist may be issued to an applicant eligible for registration
579.25under subdivision 1, 3, or 4, if the application for registration is complete, all applicable
579.26requirements in this section have been met, and applicable fees have been paid. The
579.27temporary permit remains valid until the board takes action on the applicant's application.

579.28    Sec. 35. [148.9871] EXPIRATION AND RENEWAL.
579.29    Subdivision 1. Registration expiration. Registrations issued according to this
579.30chapter expire annually.
579.31    Subd. 2. Renewal. To be eligible for registration renewal, a registrant must
579.32annually, or as determined by the board:
579.33(1) complete a renewal application on a form provided by the board;
579.34(2) submit applicable fees; and
580.1(3) submit any additional information requested by the board to clarify information
580.2presented in the renewal application. The information must be submitted within 30 days
580.3after the board's request, or the renewal request is canceled.
580.4    Subd. 3. Change of address. A registrant who changes addresses must inform
580.5the board within 30 days, in writing, of the change of address. Notices or other
580.6correspondence mailed to or served on a registrant at the registrant's current address on
580.7file shall be considered as having been received by the registrant.
580.8    Subd. 4. Registration renewal notice. At least 60 days before the registration
580.9renewal date, the board shall send out a renewal notice to the last known address of the
580.10registrant on file. The notice must include a renewal application and a notice of fees
580.11required for renewal. It must also inform the registrant that registration will expire without
580.12further action by the board if an application for registration renewal is not received before
580.13the deadline for renewal. The registrant's failure to receive this notice shall not relieve the
580.14registrant of the obligation to meet the deadline and other requirements for registration
580.15renewal. Failure to receive this notice is not grounds for challenging expiration of
580.16registered status.
580.17    Subd. 5. Renewal deadline. The renewal application and fee must be postmarked
580.18on or before October 1 of the year of renewal or as determined by the board. If the
580.19postmark is illegible, the application shall be considered timely if received by the third
580.20working day after the deadline.
580.21    Subd. 6. Inactive status and return to active status. (a) A registration may be
580.22placed in inactive status upon application to the board by the registrant and upon payment
580.23of an inactive status fee.
580.24(b) A registrant seeking restoration to active status from inactive status must pay
580.25the current renewal fees and all unpaid back inactive fees. The registrant must meet
580.26the criteria for renewal under subdivision 7 prior to submitting an application to regain
580.27registered status. If the registrant has been in inactive status for more than five years, a
580.28qualifying score on a competency exam is required.
580.29    Subd. 7. Registration following lapse of registration status for two years or less.
580.30In order for an individual whose registration status has lapsed for two years or less, to
580.31regain registration status, the individual must:
580.32(1) apply for registration renewal according to subdivision 2; and
580.33(2) submit applicable fees for the period not registered, including the fee for late
580.34renewal.
580.35    Subd. 8. Cancellation due to nonrenewal. The board shall not renew, reissue,
580.36reinstate, or restore a registration that has lapsed and has not been renewed within two
581.1years. A registrant whose registration is canceled for nonrenewal must obtain a new
581.2registration by applying for initial registration and fulfilling all requirements then in
581.3existence for initial registration as a massage and bodywork therapist.
581.4    Subd. 9. Cancellation of registration in good standing. (a) A registrant holding
581.5active registration as a massage and bodywork therapist in this state may, upon approval
581.6of the board, be granted registration cancellation if the board is not investigating the
581.7person as a result of a complaint or information received or if the board has not begun
581.8disciplinary proceedings against the registrant. Such action by the board shall be reported
581.9as a cancellation of registration in good standing.
581.10(b) A registrant who receives board approval for registration cancellation is not
581.11entitled to a refund of any registration fees paid for the registration period in which
581.12cancellation of the registration occurred.
581.13(c) To obtain registration after cancellation, an applicant must obtain a new
581.14registration by applying for initial registration and fulfilling the requirements then in
581.15existence for obtaining initial registration according to sections 148.982 to 148.9885.

581.16    Sec. 36. [148.9881] BOARD ACTION ON APPLICATIONS; DATA PRACTICES.
581.17(a) The board shall act on each application for registration or renewal according
581.18to paragraphs (b) and (d).
581.19(b) The board or advisory council shall determine if the applicant meets the
581.20requirements for registration or renewal under section 148.987 or 148.9871. The board
581.21or advisory council may investigate information provided by an applicant to determine
581.22whether the information is accurate and complete, and may request additional information
581.23or documentation.
581.24(c) The board shall notify each applicant, in writing, of action taken on the
581.25application, the grounds for denying registration if registration is denied, and the
581.26applicant's right to review under paragraph (d).
581.27(d) An applicant denied registration may make a written request to the board, within
581.2830 days of the board's notice, to appear before the advisory council and for the advisory
581.29council to review the board's decision to deny the applicant's registration. After reviewing
581.30the denial, the advisory council shall make a recommendation to the board as to whether
581.31the denial shall be affirmed. Each applicant is allowed only one request for review per
581.32registration period.
581.33(e) Section 13.41 applies to government data of the board on applicants and
581.34registrants.

582.1    Sec. 37. [148.9882] GROUNDS FOR DISCIPLINARY ACTION.
582.2    Subdivision 1. Grounds listed. (a) The board may deny, revoke, suspend, limit, or
582.3condition the registration of a registrant or registered massage and bodywork therapist, or
582.4may otherwise discipline a registrant. The fact that massage and bodywork therapy may
582.5be considered a less customary approach to health care shall not constitute the basis for
582.6disciplinary action per se.
582.7(b) The following are grounds for disciplinary action, regardless of whether injury
582.8to a client is established:
582.9(1) failing to demonstrate the qualifications or to satisfy the requirements for
582.10registration contained in sections 148.982 to 148.9885, or rules of the board. In the case of
582.11an applicant, the burden of proof is on the applicant to demonstrate the qualifications or
582.12satisfy the requirements;
582.13(2) advertising in a false, fraudulent, deceptive, or misleading manner, including,
582.14but not limited to:
582.15(i) advertising or holding oneself out as a "registered massage and bodywork
582.16therapist" or any abbreviation or derivative thereof to indicate such a title, when such
582.17registration is not valid or current for any reason;
582.18(ii) advertising or holding oneself out as a "licensed massage and bodywork
582.19therapist" or any abbreviation or derivative thereof to indicate such a title, unless the
582.20registrant currently holds a valid state license in another state and provided that the state
582.21is clearly identified;
582.22(iii) advertising a service, the provision of which would constitute a violation of this
582.23chapter or rules established by the board; and
582.24(iv) using fraud, deceit, or misrepresentation when communicating with the general
582.25public, health care providers, or other business professionals;
582.26(3) falsifying information in a massage and bodywork therapy registration or renewal
582.27application or attempting to obtain registration, registration renewal, or reinstatement by
582.28fraud, deception, or misrepresentation, or aiding and abetting any of these acts;
582.29(4) engaging in conduct with a client that is sexual or may reasonably be interpreted
582.30by the client as sexual, or in any verbal behavior that is seductive or sexually demeaning
582.31to a client, or engaging in sexual exploitation of a client, without regard to who initiates
582.32such behaviors;
582.33(5) committing an act of gross malpractice, negligence, or incompetency, or failing
582.34to practice massage and bodywork therapy with the level of care, skill, and treatment
582.35that is recognized by a reasonably prudent massage and bodywork therapist as being
582.36acceptable under similar conditions and circumstances;
583.1(6) having an actual or potential inability to practice massage and bodywork therapy
583.2with reasonable skill and safety to clients by reason of illness, as a result of any mental
583.3or physical condition, or use of alcohol, drugs, chemicals, or any other material. Being
583.4adjudicated as mentally incompetent, mentally ill, a chemically dependent person, or a
583.5person dangerous to the public by a court of competent jurisdiction, inside or outside
583.6of this state, may be considered as evidence of an inability to practice massage and
583.7bodywork therapy;
583.8(7) being the subject of disciplinary action as a massage and bodywork therapist by
583.9another state or jurisdiction where the board or advisory council determines that the cause
583.10of the disciplinary action would be a violation under this state's statutes or rules of the
583.11board if the violation had occurred in this state;
583.12(8) failing to notify the board of revocation or suspension of a credential, or any
583.13other disciplinary action taken by this or any other state, territory, or country, including
583.14any restrictions on the right to practice; or the surrender or voluntary termination of a
583.15credential during a board investigation of a complaint, as part of a disciplinary order, or
583.16while under a disciplinary order;
583.17(9) conviction of a crime, including a finding or verdict of guilt, an admission of
583.18guilt, or a no-contest plea, in this state or elsewhere, reasonably related to engaging in
583.19massage and bodywork therapy practices. Conviction, as used in this clause, includes a
583.20conviction of an offense that, if committed in this state, would be deemed a felony, gross
583.21misdemeanor, or misdemeanor, without regard to its designation elsewhere, or a criminal
583.22proceeding where a finding or verdict of guilt is made or returned but the adjudication
583.23of guilt is either withheld or not entered;
583.24(10) if a registrant is on probation, failing to abide by terms of that probation;
583.25(11) practicing or offering to practice beyond the scope of the practice of massage
583.26and bodywork therapy;
583.27(12) managing client records and information improperly, including but not limited to
583.28failing to maintain adequate client records, comply with a client's request made according
583.29to sections 144.291 to 144.298, or furnish a client record or report required by law;
583.30(13) revealing a privileged communication from or relating to a client except when
583.31otherwise required or permitted by law;
583.32(14) providing massage and bodywork therapy services that are linked to the
583.33financial gain of a referral source;
583.34(15) obtaining money, property, or services from a client, other than reasonable
583.35fees for services provided to the client, through the use of undue influence, harassment,
583.36duress, deception, or fraud;
584.1(16) engaging in abusive or fraudulent billing practices, including violations of
584.2federal Medicare and Medicaid laws or state medical assistance laws;
584.3(17) failing to consult with a client's health care provider who prescribed a course of
584.4massage and bodywork therapy treatment if the treatment needs to be altered from the
584.5original written order to conform with standards in the massage and bodywork therapy
584.6field or the registrant's level of training or experience;
584.7(18) failing to cooperate with an investigation of the board or its representatives,
584.8including failing to respond fully and promptly to any question raised by or on behalf
584.9of the board relating to the subject of the investigation, failing to execute all releases
584.10requested by the board, failing to provide copies of client records, as reasonably requested
584.11by the board to assist in its investigation, and failing to appear at conferences or hearings
584.12scheduled by the board or its staff;
584.13(19) interfering with an investigation or disciplinary proceeding, including by willful
584.14misrepresentation of facts or by the use of threats or harassment to prevent a person from
584.15providing evidence in a disciplinary proceeding or any legal action;
584.16(20) violating a statute, rule, order, or agreement for corrective action that the board
584.17issued or is otherwise authorized or empowered to enforce;
584.18(21) aiding or abetting a person in violating sections 148.982 to 148.9885;
584.19(22) failing to report to the board other massage and bodywork therapists who
584.20commit violations of sections 148.982 to 148.9885; and
584.21(23) failing to notify the board, in writing, of the entry of a final judgment by a
584.22court of competent jurisdiction against the registrant for malpractice of massage and
584.23bodywork therapy, or any settlement by the registrant in response to charges or allegations
584.24of malpractice of massage and bodywork therapy. The notice must be provided to the
584.25board within 60 days after the entry of a judgment, and must contain the name of the
584.26court, case number, and the names of all parties to the action.
584.27    Subd. 2. Evidence. In disciplinary actions alleging a violation of subdivision 1,
584.28a copy of the judgment or proceeding under the seal of the court administrator or of the
584.29administrative agency that entered the same shall be admissible into evidence without
584.30further authentication and shall constitute prima facie evidence of the violation.
584.31    Subd. 3. Examination; access to medical data. The board may take the actions
584.32described in section 148.261, subdivision 5, if it has probable cause to believe that grounds
584.33for disciplinary action exist under subdivision 1. The requirements and limitations
584.34described in section 148.261, subdivision 5, shall apply.

584.35    Sec. 38. [148.9883] DISCIPLINE; REPORTING.
585.1For purposes of sections 148.982 to 148.9885, registered massage and bodywork
585.2therapists and applicants are subject to sections 148.262 to 148.266.

585.3    Sec. 39. [148.9884] EFFECT ON MUNICIPAL ORDINANCES.
585.4    Subdivision 1. License authority. The provisions of sections 148.982 to 148.9885
585.5preempt the licensure and regulation of registered massage and bodywork therapists
585.6by a municipality, including, without limitation, conducting a criminal background
585.7investigation and examination of a massage and bodywork therapist or applicant for a
585.8municipality's credential to practice massage and bodywork therapy.
585.9    Subd. 2. Municipal regulation. Nothing in sections 148.982 to 148.9885 shall
585.10be construed to limit a municipality from:
585.11    (1) requiring a massage business establishment to obtain a business license or permit
585.12in order to transact business in the jurisdiction regardless of whether the massage business
585.13establishment is operated by a registered or unregistered massage and bodywork therapist;
585.14    (2) enforcing the provisions of health codes related to communicable diseases;
585.15    (3) requiring a criminal background check of any unregistered massage and
585.16bodywork therapist applying for a license to conduct massage and bodywork therapy
585.17in the municipality; and
585.18    (4) otherwise regulating massage business establishments by ordinance regardless of
585.19whether the massage business establishment is operated by a registered or unregistered
585.20massage and bodywork therapist.
585.21    Subd. 3. Prosecuting authority. A municipality may prosecute violations of
585.22sections 148.982 to 148.9885, a local ordinance, or any other law by a registered or
585.23unregistered massage and bodywork therapist in its jurisdiction.

585.24    Sec. 40. [148.9885] FEES.
585.25    Subdivision 1. Fees. Fees are as follows:
585.26(1) initial registration with application fee must not exceed $285;
585.27(2) annual registration renewal fee must not exceed $185;
585.28(3) duplicate registration certificate, $15;
585.29(4) late fee, $50;
585.30(5) inactive status and inactive to active status reactivation, $50;
585.31(6) temporary permit, $50; and
585.32(7) returned check, $35.
586.1    Subd. 2. Penalty fee for late renewals. An application for registration renewal
586.2submitted after the deadline must be accompanied by a late fee in addition to the required
586.3fees.
586.4    Subd. 3. Nonrefundable fees. All of the fees in subdivision 1 are nonrefundable.
586.5    Subd. 4. Deposit. Fees collected by the board under this section shall be deposited
586.6into the state government special revenue fund.
586.7    Subd. 5. Special assessment fee. A special assessment fee not to exceed $85 shall
586.8be assessed annually upon registration renewal until the fee revenue equals the board's
586.9expenditures for registration activities under sections 148.982 to 148.9885.

586.10ORTHODICS, PEDORTHICS, AND PROSTHETICS

586.11    Sec. 41. [153B.10] SHORT TITLE.
586.12Chapter 153B may be cited as the "Minnesota Orthotist, Prosthetist, and Pedorthist
586.13Practice Act."

586.14    Sec. 42. [153B.15] DEFINITIONS.
586.15    Subdivision 1. Application. For purposes of this chapter, the following words
586.16have the meanings given.
586.17    Subd. 2. Advisory council. "Advisory council" means the Orthotics, Prosthetics,
586.18and Pedorthics Advisory Council established under section 153B.25.
586.19    Subd. 3. Board. "Board" means the Board of Podiatric Medicine.
586.20    Subd. 4. Custom-fabricated device. "Custom-fabricated device" means an orthosis,
586.21prosthesis, or pedorthic device for use by a patient that is fabricated to comprehensive
586.22measurements or a mold or patient model in accordance with a prescription and which
586.23requires on-site or in-person clinical and technical judgment in its design, fabrication,
586.24and fitting.
586.25    Subd. 5. Licensed orthotic-prosthetic assistant. "Licensed orthotic-prosthetic
586.26assistant" or "assistant" means a person, licensed by the board, who is educated and
586.27trained to participate in comprehensive orthotic and prosthetic care while under the
586.28supervision of a licensed orthotist or licensed prosthetist. Assistants may perform orthotic
586.29and prosthetic procedures and related tasks in the management of patient care. The
586.30assistant may fabricate, repair, and maintain orthoses and prostheses. The use of the title
586.31"orthotic-prosthetic assistant" or representations to the public is limited to a person who is
586.32licensed under this chapter as an orthotic-prosthetic assistant.
586.33    Subd. 6. Licensed orthotic fitter. "Licensed orthotic fitter" or "fitter" means a
586.34person licensed by the board who is educated and trained in providing certain orthoses,
587.1and is trained to conduct patient assessments, formulate treatment plans, implement
587.2treatment plans, perform follow-up, and practice management pursuant to a prescription.
587.3An orthotic fitter must be competent to fit certain custom-fitted, prefabricated, and
587.4off-the-shelf orthoses as follows:
587.5(1) cervical orthoses, except those used to treat an unstable cervical condition;
587.6(2) prefabricated orthoses for the upper and lower extremities, except those used in:
587.7    (i) the initial or acute treatment of long bone fractures and dislocations;
587.8    (ii) therapeutic shoes and inserts needed as a result of diabetes; and
587.9    (iii) functional electrical stimulation orthoses;
587.10(3) prefabricated spinal orthoses, except those used in the treatment of scoliosis or
587.11unstable spinal conditions, including halo cervical orthoses; and
587.12(4) trusses.
587.13The use of the title "orthotic fitter" or representations to the public is limited to a person
587.14who is licensed under this chapter as an orthotic fitter.
587.15    Subd. 7. Licensed orthotist. "Licensed orthotist" means a person licensed by
587.16the board who is educated and trained to practice orthotics, which includes managing
587.17comprehensive orthotic patient care pursuant to a prescription. The use of the title
587.18"orthotist" or representations to the public is limited to a person who is licensed under
587.19this chapter as an orthotist.
587.20    Subd. 8. Licensed pedorthist. "Licensed pedorthist" means a person licensed by
587.21the board who is educated and trained to manage comprehensive pedorthic patient care
587.22and who performs patient assessments, formulates and implements treatment plans, and
587.23performs follow-up and practice management pursuant to a prescription. A pedorthist may
587.24fit, fabricate, adjust, or modify devices within the scope of the pedorthist's education and
587.25training. Use of the title "pedorthist" or representations to the public is limited to a person
587.26who is licensed under this chapter as a pedorthist.
587.27    Subd. 9. Licensed prosthetist. "Licensed prosthetist" means a person licensed by
587.28the board who is educated and trained to manage comprehensive prosthetic patient care,
587.29and who performs patient assessments, formulates and implements treatment plans, and
587.30performs follow-up and practice management pursuant to a prescription. Use of the title
587.31"prosthetist" or representations to the public is limited to a person who is licensed under
587.32this chapter as a prosthetist.
587.33    Subd. 10. Licensed prosthetist orthotist. "Licensed prosthetist orthotist" means a
587.34person licensed by the board who is educated and trained to manage comprehensive
587.35prosthetic and orthotic patient care, and who performs patient assessments, formulates and
587.36implements treatment plans, and performs follow-up and practice management pursuant to
588.1a prescription. Use of the title "prosthetist orthotist" or representations to the public is
588.2limited to a person who is licensed under this chapter as a prosthetist orthotist.
588.3    Subd. 11. NCOPE. "NCOPE" means National Commission on Orthotic and
588.4Prosthetic Education, an accreditation program that ensures educational institutions and
588.5residency programs meet the minimum standards of quality to prepare individuals to enter
588.6the orthotic, prosthetic, and pedorthic professions.
588.7    Subd. 12. Orthosis. "Orthosis" means an external device that is custom-fabricated
588.8or custom-fitted to a specific patient based on the patient's unique physical condition and
588.9is applied to a part of the body to help correct a deformity, provide support and protection,
588.10restrict motion, improve function, or relieve symptoms of a disease, syndrome, injury, or
588.11postoperative condition.
588.12    Subd. 13. Orthotics. "Orthotics" means the science and practice of evaluating,
588.13measuring, designing, fabricating, assembling, fitting, adjusting, or servicing an orthosis
588.14pursuant to a prescription. The practice of orthotics includes providing the initial training
588.15necessary for fitting an orthotic device for the support, correction, or alleviation of
588.16neuromuscular or musculoskeletal dysfunction, disease, injury, or deformity.
588.17    Subd. 14. Over-the-counter. "Over-the-counter" means a prefabricated,
588.18mass-produced item that is prepackaged, requires no professional advice or judgment in
588.19size selection or use, and is currently available at retail stores without a prescription.
588.20Over-the-counter items are not regulated by this chapter.
588.21    Subd. 15. Off-the-shelf. "Off-the-shelf" means a prefabricated device sized or
588.22modified for the patient's use pursuant to a prescription and that requires changes to be
588.23made by a qualified practitioner to achieve an individual fit, such as requiring the item
588.24to be trimmed, bent, or molded with or without heat, or requiring any other alterations
588.25beyond self adjustment.
588.26    Subd. 16. Pedorthic device. "Pedorthic device" means below-the-ankle partial
588.27foot prostheses for transmetatarsal and more distal amputations, foot orthoses, and
588.28subtalar-control foot orthoses to control the range of motion of the subtalar joint.
588.29A prescription is required for any pedorthic device, modification, or prefabricated
588.30below-the-knee orthosis addressing a medical condition that originates at the ankle or
588.31below. Pedorthic devices do not include nontherapeutic inlays or footwear regardless
588.32of method of manufacture; unmodified, nontherapeutic over-the-counter shoes; or
588.33prefabricated foot care products.
588.34    Subd. 17. Pedorthics. "Pedorthics" means the science and practice of evaluating,
588.35measuring, designing, fabricating, assembling, fitting, adjusting, or servicing a pedorthic
588.36device pursuant to a prescription for the correction or alleviation of neuromuscular or
589.1musculoskeletal dysfunction, disease, injury, or deformity. The practice of pedorthics
589.2includes providing patient care and services pursuant to a prescription to prevent or
589.3ameliorate painful or disabling conditions of the foot and ankle.
589.4    Subd. 18. Prescription. "Prescription" means an order deemed medically necessary
589.5by a physician, podiatric physician, osteopathic physician, or a licensed health care
589.6provider who has authority in this state to prescribe orthotic and prosthetic devices,
589.7supplies, and services.
589.8    Subd. 19. Prosthesis. "Prosthesis" means a custom-designed, fabricated, fitted, or
589.9modified device to treat partial or total limb loss for purposes of restoring physiological
589.10function or cosmesis. Prosthesis does not include artificial eyes, ears, fingers, or toes;
589.11dental appliances; external breast prosthesis; or cosmetic devices that do not have a
589.12significant impact on the musculoskeletal functions of the body.
589.13    Subd. 20. Prosthetics. "Prosthetics" means the science and practice of evaluating,
589.14measuring, designing, fabricating, assembling, fitting, adjusting, or servicing a prosthesis
589.15pursuant to a prescription. It includes providing the initial training necessary to fit a
589.16prosthesis in order to replace external parts of a human body lost due to amputation,
589.17congenital deformities, or absence.
589.18    Subd. 21. Resident. "Resident" means a person who has completed a
589.19NCOPE-approved education program in orthotics or prosthetics and is receiving clinical
589.20training in a residency accredited by NCOPE.
589.21    Subd. 22. Residency. "Residency" means a minimum of an NCOPE-approved
589.22program to acquire practical clinical training in orthotics and prosthetics in a patient
589.23care setting.
589.24    Subd. 23. Supervisor. "Supervisor" means the licensed orthotist, prosthetist, or
589.25pedorthist who oversees and is responsible for the delivery of appropriate, effective,
589.26ethical, and safe orthotic, prosthetic, or pedorthic patient care.

589.27    Sec. 43. [153B.20] EXCEPTIONS.
589.28Nothing in this chapter shall prohibit:
589.29(1) a physician or podiatric physician licensed by the state of Minnesota from
589.30providing services within the physician's scope of practice;
589.31(2) a health care professional licensed by the state of Minnesota, including, but not
589.32limited to, chiropractors, physical therapists, and occupational therapy practitioners from
589.33providing services within the professional's scope of practice, or an individual working
589.34under the supervision of a licensed physician or podiatric physician;
590.1(3) the practice of orthotics, prosthetics, or pedorthics by a person who is employed
590.2by the federal government or any bureau, division, or agency of the federal government
590.3while in the discharge of the employee's official duties;
590.4(4) the practice of orthotics, prosthetics, or pedorthics by:
590.5(i) a student enrolled in an accredited or approved orthotics, prosthetics, or
590.6pedorthics education program who is performing activities required by the program;
590.7(ii) a resident enrolled in an NCOPE-accredited residency program; or
590.8(iii) a person working in a qualified, supervised work experience or internship who
590.9is obtaining the clinical experience necessary for licensure under this chapter; or
590.10(5) an orthotist, prosthetist, prosthetist orthotist, pedorthist, assistant, or fitter who is
590.11licensed in another state or territory of the United States or in another country that has
590.12equivalent licensure requirements as approved by the board from providing services within
590.13the professional's scope of practice subject to this chapter, if the individual is qualified and
590.14has applied for licensure under this chapter. The individual shall be allowed to practice for
590.15no longer than six months following the filing of the application for licensure, unless the
590.16individual withdraws the application for licensure or the board denies the license.

590.17    Sec. 44. [153B.25] ORTHOTICS, PROSTHETICS, AND PEDORTHICS
590.18ADVISORY COUNCIL.
590.19    Subdivision 1. Creation; membership. (a) There is established an Orthotics,
590.20Prosthetics, and Pedorthics Advisory Council that shall consist of seven voting members
590.21appointed by the board. Five members shall be licensed and practicing orthotists,
590.22prosthetists, or pedorthists. Each profession shall be represented on the advisory council.
590.23One member shall be a Minnesota-licensed doctor of podiatric medicine who is also a
590.24member of the Board of Podiatric Medicine, and one member shall be a public member.
590.25(b) The council shall be organized and administered under section 15.059.
590.26    Subd. 2. Duties. The advisory council shall:
590.27(1) advise the board on enforcement of the provisions contained in this chapter;
590.28(2) review reports of investigations or complaints relating to individuals and make
590.29recommendations to the board as to whether a license should be denied or disciplinary
590.30action taken against an individual;
590.31(3) advise the board regarding standards for licensure of professionals under this
590.32chapter; and
590.33(4) perform other duties authorized for advisory councils by chapter 214, as directed
590.34by the board.
590.35    Subd. 3. Chair. The council must elect a chair from among its members.
591.1    Subd. 4. Administrative provisions. The Board of Podiatric Medicine must
591.2provide meeting space and administrative services for the council.

591.3    Sec. 45. [153B.30] LICENSURE.
591.4    Subdivision 1. Application. An application for a license shall be submitted to the
591.5board in the format required by the board and shall be accompanied by the required fee,
591.6which is nonrefundable.
591.7    Subd. 2. Qualifications. (a) To be eligible for licensure as an orthotist, prosthetist,
591.8or prosthetist orthotist, an applicant shall meet orthotist, prosthetist, or prosthetist orthotist
591.9certification requirements of either the American Board for Certification in Orthotics,
591.10Prosthetics, and Pedorthics or the Board of Certification/Accreditation requirements in
591.11effect at the time of the individual's application for licensure and be in good standing
591.12with the certifying board.
591.13(b) To be eligible for licensure as a pedorthist, an applicant shall meet the pedorthist
591.14certification requirements of either the American Board for Certification in Orthotics,
591.15Prosthetics, and Pedorthics or the Board of Certification/Accreditation that are in effect
591.16at the time of the individual's application for licensure and be in good standing with
591.17the certifying board.
591.18(c) To be eligible for licensure as an orthotic or prosthetic assistant, an applicant shall
591.19meet the orthotic or prosthetic assistant certification requirements of the American Board
591.20for Certification in Orthotics, Prosthetics, and Pedorthics that are in effect at the time of
591.21the individual's application for licensure and be in good standing with the certifying board.
591.22(d) To be eligible for licensure as an orthotic fitter, an applicant shall meet the
591.23orthotic fitter certification requirements of either the American Board for Certification in
591.24Orthotics, Prosthetics, and Pedorthics or the Board of Certification/Accreditation that are
591.25in effect at the time of the individual's application for licensure and be in good standing
591.26with the certifying board.
591.27    Subd. 3. License term. A license to practice is valid for a term of up to 24 months
591.28beginning on January 1 or commencing after initially fulfilling the license requirements
591.29and ending on December 31 of the following year.

591.30    Sec. 46. [153B.35] EMPLOYMENT BY AN ACCREDITED FACILITY; SCOPE
591.31OF PRACTICE.
591.32A licensed orthotist, prosthetist, pedorthist, assistant, or orthotic fitter may provide
591.33limited, supervised orthotic or prosthetic patient care services beyond their licensed scope
591.34of practice if all of the following conditions are met:
592.1(1) the licensee is employed by a patient care facility that is accredited by a national
592.2accrediting organization in orthotics, prosthetics, and pedorthics;
592.3(2) written objective criteria are documented by the accredited facility to describe
592.4the knowledge and skills required by the licensee to demonstrate competency to provide
592.5additional specific and limited orthotic or prosthetic patient care services that are outside
592.6the licensee's scope of practice;
592.7(3) the licensee provides orthotic or prosthetic patient care only at the direction of a
592.8supervisor who is licensed as an orthotist, pedorthist, or prosthetist who is employed by
592.9the facility to provide the specific orthotic or prosthetic patient care or services that are
592.10outside the licensee's scope of practice; and
592.11(4) the supervised orthotic or prosthetic patient care occurs in compliance with
592.12facility accreditation standards.

592.13    Sec. 47. [153B.40] CONTINUING EDUCATION.
592.14    Subdivision 1. Requirement. Each licensee shall obtain the number of continuing
592.15education hours required by the certifying board to maintain certification status pursuant
592.16to the specific license category.
592.17    Subd. 2. Proof of attendance. A licensee must submit to the board proof of
592.18attendance at approved continuing education programs during the license renewal period
592.19in which it was attended in the form of a certificate, statement of continuing education
592.20credits from the American Board for Certification in Orthotics, Prosthetics, and Pedorthics
592.21or the Board of Certification/Accreditation, descriptive receipt, or affidavit. The board
592.22may conduct random audits.
592.23    Subd. 3. Extension of continuing education requirements. For good cause, a
592.24licensee may apply to the board for a six-month extension of the deadline for obtaining
592.25the required number of continuing education credits. No more than two consecutive
592.26extensions may be granted. For purposes of this subdivision, "good cause" includes
592.27unforeseen hardships such as illness, family emergency, or military call-up.

592.28    Sec. 48. [153B.45] LICENSE RENEWAL.
592.29    Subdivision 1. Submission of license renewal application. A licensee must submit
592.30to the board a license renewal application on a form provided by the board together with
592.31the license renewal fee. The completed form must be postmarked no later than January 1
592.32in the year of renewal. The form must be signed by the licensee in the place provided for
592.33the renewal applicant's signature, include evidence of participation in approved continuing
592.34education programs, and any other information as the board may reasonably require.
593.1    Subd. 2. Renewal application postmarked after January 1. A renewal application
593.2postmarked after January 1 in the renewal year shall be returned to the licensee for addition
593.3of the late renewal fee. A license renewal application postmarked after January 1 in the
593.4renewal year is not complete until the late renewal fee has been received by the board.
593.5    Subd. 3. Failure to submit renewal application. (a) At any time after January 1 of
593.6the applicable renewal year, the board shall send notice to a licensee who has failed to
593.7apply for license renewal. The notice shall be mailed to the licensee at the last address on
593.8file with the board and shall include the following information:
593.9(1) that the licensee has failed to submit application for license renewal;
593.10(2) the amount of renewal and late fees;
593.11(3) information about continuing education that must be submitted in order for
593.12the license to be renewed;
593.13(4) that the licensee must respond within 30 calendar days after the notice was sent
593.14by the board; and
593.15(5) that the licensee may voluntarily terminate the license by notifying the board
593.16or may apply for license renewal by sending the board a completed renewal application,
593.17license renewal and late fees, and evidence of compliance with continuing education
593.18requirements.
593.19(b) Failure by the licensee to notify the board of the licensee's intent to voluntarily
593.20terminate the license or to submit a license renewal application shall result in expiration
593.21of the license and termination of the right to practice. The expiration of the license and
593.22termination of the right to practice shall not be considered disciplinary action against the
593.23licensee.
593.24(c) A license that has been expired under this subdivision may be reinstated.

593.25    Sec. 49. [153B.50] NAME AND ADDRESS CHANGE.
593.26(a) A licensee who has changed names must notify the board in writing within 90
593.27days and request a revised license. The board may require official documentation of the
593.28legal name change.
593.29(b) A licensee must maintain with the board a correct mailing address to receive
593.30board communications and notices. A licensee who has changed addresses must notify the
593.31board in writing within 90 days. Mailing a notice by United States mail to a licensee's last
593.32known mailing address constitutes valid mailing.

593.33    Sec. 50. [153B.55] INACTIVE STATUS.
594.1(a) A licensee who notifies the board in the format required by the board may elect
594.2to place the licensee's credential on inactive status and shall be excused from payment
594.3of renewal fees until the licensee notifies the board in the format required by the board
594.4of the licensee's plan to return to practice.
594.5(b) A person requesting restoration from inactive status shall be required to pay the
594.6current renewal fee and comply with section 153B.45.
594.7(c) A person whose license has been placed on inactive status shall not practice in
594.8this state.

594.9    Sec. 51. [153B.60] LICENSE LAPSE DUE TO MILITARY SERVICE.
594.10A licensee whose license has expired while on active duty in the armed forces of the
594.11United States, with the National Guard while called into service or training, or while in
594.12training or education preliminary to induction into military service may have the licensee's
594.13license renewed or restored without paying a late fee or license restoration fee if the licensee
594.14provides verification to the board within two years of the termination of service obligation.

594.15    Sec. 52. [153B.65] ENDORSEMENT.
594.16The board may license, without examination and on payment of the required fee,
594.17an applicant who is an orthotist, prosthetist, prosthetist orthotist, pedorthist, assistant, or
594.18fitter who is certified by the American Board for Certification in Orthotics, Prosthetics,
594.19and Pedorthics or a national certification organization with educational, experiential, and
594.20testing standards equal to or higher than the licensing requirements in Minnesota.

594.21    Sec. 53. [153B.70] GROUNDS FOR DISCIPLINARY ACTION.
594.22(a) The board may refuse to issue or renew a license, revoke or suspend a license, or
594.23place on probation or reprimand a licensee for one or any combination of the following:
594.24(1) making a material misstatement in furnishing information to the board;
594.25(2) violating or intentionally disregarding the requirements of this chapter;
594.26(3) conviction of a crime, including a finding or verdict of guilt, an admission of
594.27guilt, or a no-contest plea, in this state or elsewhere, reasonably related to the practice
594.28of the profession. Conviction, as used in this clause, includes a conviction of an offense
594.29which, if committed in this state, would be deemed a felony, gross misdemeanor, or
594.30misdemeanor, without regard to its designation elsewhere, or a criminal proceeding where
594.31a finding or verdict of guilty is made or returned but the adjudication of guilt is either
594.32withheld or not entered;
594.33(4) making a misrepresentation in order to obtain or renew a license;
595.1(5) displaying a pattern of practice or other behavior that demonstrates incapacity or
595.2incompetence to practice;
595.3(6) aiding or assisting another person in violating the provisions of this chapter;
595.4(7) failing to provide information within 60 days in response to a written request from
595.5the board, including documentation of completion of continuing education requirements;
595.6(8) engaging in dishonorable, unethical, or unprofessional conduct;
595.7(9) engaging in conduct of a character likely to deceive, defraud, or harm the public;
595.8(10) inability to practice due to habitual intoxication, addiction to drugs, or mental
595.9or physical illness;
595.10(11) being disciplined by another state or territory of the United States, the federal
595.11government, a national certification organization, or foreign nation, if at least one of the
595.12grounds for the discipline is the same or substantially equivalent to one of the grounds
595.13in this section;
595.14(12) directly or indirectly giving to or receiving from a person, firm, corporation,
595.15partnership, or association a fee, commission, rebate, or other form of compensation for
595.16professional services not actually or personally rendered;
595.17(13) incurring a finding by the board that the licensee, after the licensee has been
595.18placed on probationary status, has violated the conditions of the probation;
595.19(14) abandoning a patient or client;
595.20(15) willfully making or filing false records or reports in the course of the licensee's
595.21practice including, but not limited to, false records or reports filed with state or federal
595.22agencies;
595.23(16) willfully failing to report child maltreatment as required under the Maltreatment
595.24of Minors Act, section 626.556; or
595.25(17) soliciting professional services using false or misleading advertising.
595.26(b) A license to practice is automatically suspended if (1) a guardian of a licensee is
595.27appointed by order of a court pursuant to sections 524.5-101 to 524.5-502, for reasons
595.28other than the minority of the licensee, or (2) the licensee is committed by order of a court
595.29pursuant to chapter 253B. The license remains suspended until the licensee is restored to
595.30capacity by a court and, upon petition by the licensee, the suspension is terminated by the
595.31board after a hearing. The licensee may be reinstated to practice, either with or without
595.32restrictions, by demonstrating clear and convincing evidence of rehabilitation. The
595.33regulated person is not required to prove rehabilitation if the subsequent court decision
595.34overturns previous court findings of public risk.
595.35(c) If the board has probable cause to believe that a licensee or applicant has violated
595.36paragraph (a), clause (10), it may direct the person to submit to a mental or physical
596.1examination. For the purpose of this section, every person is deemed to have consented to
596.2submit to a mental or physical examination when directed in writing by the board and to
596.3have waived all objections to the admissibility of the examining physician's testimony or
596.4examination report on the grounds that the testimony or report constitutes a privileged
596.5communication. Failure of a regulated person to submit to an examination when directed
596.6constitutes an admission of the allegations against the person, unless the failure was due to
596.7circumstances beyond the person's control, in which case a default and final order may be
596.8entered without the taking of testimony or presentation of evidence. A regulated person
596.9affected under this paragraph shall at reasonable intervals be given an opportunity to
596.10demonstrate that the person can resume the competent practice of the regulated profession
596.11with reasonable skill and safety to the public. In any proceeding under this paragraph,
596.12neither the record of proceedings nor the orders entered by the board shall be used against
596.13a regulated person in any other proceeding.
596.14(d) In addition to ordering a physical or mental examination, the board may,
596.15notwithstanding section 13.384 or 144.293, or any other law limiting access to medical or
596.16other health data, obtain medical data and health records relating to a licensee or applicant
596.17without the person's or applicant's consent if the board has probable cause to believe that a
596.18licensee is subject to paragraph (a), clause (10). The medical data may be requested
596.19from a provider as defined in section 144.291, subdivision 2, paragraph (i), an insurance
596.20company, or a government agency, including the Department of Human Services. A
596.21provider, insurance company, or government agency shall comply with any written request
596.22of the board under this section and is not liable in any action for damages for releasing the
596.23data requested by the board if the data are released pursuant to a written request under this
596.24section, unless the information is false and the provider giving the information knew, or
596.25had reason to know, the information was false. Information obtained under this section
596.26is private data on individuals as defined in section 13.02.
596.27(e) If the board issues an order of immediate suspension of a license, a hearing must
596.28be held within 30 days of the suspension and completed without delay.

596.29    Sec. 54. [153B.75] INVESTIGATION; NOTICE AND HEARINGS.
596.30The board has the authority to investigate alleged violations of this chapter, conduct
596.31hearings, and impose corrective or disciplinary action as provided in section 214.103.

596.32    Sec. 55. [153B.80] UNLICENSED PRACTICE.
596.33    Subdivision 1. License required. Effective January 1, 2018, no individual shall
596.34practice as an orthotist, prosthetist, prosthetist orthotist, pedorthist, orthotic or prosthetic
597.1assistant, or orthotic fitter, unless the individual holds a valid license issued by the board
597.2under this chapter, except as permitted under section 153B.20 or 153B.35.
597.3    Subd. 2. Designation. No individual shall represent themselves to the public as
597.4a licensed orthotist, prosthetist, prosthetist orthotist, pedorthist, orthotic or prosthetic
597.5assistant, or an orthotic fitter, unless the individual is licensed under this chapter.
597.6    Subd. 3. Penalties. Any individual who violates this section is guilty of a
597.7misdemeanor. The board shall have the authority to seek a cease and desist order against
597.8any individual who is engaged in the unlicensed practice of a profession regulated by the
597.9board under this chapter.

597.10    Sec. 56. [153B.85] FEES.
597.11    Subdivision 1. Fees. (a) The application fee for initial licensure shall not exceed
597.12$600.
597.13(b) The biennial renewal fee for a license to practice as an orthotist, prosthetist,
597.14prosthetist orthotist, or pedorthist shall not exceed $600.
597.15(c) The biennial renewal fee for a license to practice as an assistant or a fitter shall
597.16not exceed $300.
597.17(d) The fee for license restoration shall not exceed $600.
597.18(e) The fee for license verification shall not exceed $30.
597.19(f) The fee to obtain a list of licensees shall not exceed $25.
597.20    Subd. 2. Proration of fees. For the first renewal period following initial licensure,
597.21the renewal fee is the fee specified in subdivision 1, paragraph (b) or (c), prorated to the
597.22nearest dollar that is represented by the ratio of the number of days the license is held
597.23in the initial licensure period to 730 days.
597.24    Subd. 3. Late fee. The fee for late license renewal is the license renewal fee in
597.25effect at the time of renewal plus $100.
597.26    Subd. 4. Nonrefundable fees. All fees are nonrefundable.
597.27    Subd. 5. Deposit. Fees collected by the board under this section shall be deposited
597.28in the state government special revenue fund.

597.29    Sec. 57. Minnesota Statutes 2014, section 214.075, subdivision 3, is amended to read:
597.30    Subd. 3. Consent form; fees; fingerprints. (a) In order to effectuate the federal
597.31and state level, fingerprint-based criminal background check, the applicant or licensee
597.32must submit a completed criminal history records check consent form and a full set of
597.33fingerprints to the respective health-related licensing board or a designee in the manner
597.34and form specified by the board.
598.1(b) The applicant or licensee is responsible for all fees associated with preparation of
598.2the fingerprints, the criminal records check consent form, and the criminal background
598.3check. The fees for the criminal records background check shall be set by the BCA and
598.4the FBI and are not refundable. The fees shall be submitted to the respective health-related
598.5licensing board by the applicant or licensee as prescribed by the respective board.
598.6    (c) All fees received by the health-related licensing boards under this subdivision
598.7shall be deposited in a dedicated account accounts in the special revenue fund and are
598.8appropriated to the Board of Nursing Home Administrators for the administrative services
598.9unit health-related licensing boards to pay for the criminal background checks conducted
598.10by the Bureau of Criminal Apprehension and Federal Bureau of Investigation.

598.11    Sec. 58. Minnesota Statutes 2015 Supplement, section 256B.0625, subdivision 18a,
598.12is amended to read:
598.13    Subd. 18a. Access to medical services. (a) Medical assistance reimbursement for
598.14meals for persons traveling to receive medical care may not exceed $5.50 for breakfast,
598.15$6.50 for lunch, or $8 for dinner.
598.16    (b) Medical assistance reimbursement for lodging for persons traveling to receive
598.17medical care may not exceed $50 per day unless prior authorized by the local agency.
598.18    (c) Regardless of the number of employees that an enrolled health care provider may
598.19have, medical assistance covers sign and oral spoken language health care interpreter
598.20services when provided by an enrolled health care provider during the course of providing
598.21a direct, person-to-person covered health care service to an enrolled recipient with limited
598.22English proficiency or who has a hearing loss and uses interpreting services. Coverage
598.23for face-to-face oral language spoken language health care interpreter services shall be
598.24provided only if the oral language spoken language health care interpreter used by the
598.25enrolled health care provider is listed in on the registry or roster established under section
598.26144.058 or the registry established under chapter 146C. Beginning July 1, 2018, coverage
598.27for spoken language health care interpreter services shall be provided only if the spoken
598.28language health care interpreter used by the enrolled health care provider is listed on the
598.29registry established under chapter 146C.

598.30    Sec. 59. [325F.816] MUNICIPAL OR CITY BUSINESS LICENSE; MASSAGE.
598.31An individual who is issued a municipal or city business license to practice massage
598.32is prohibited from advertising as a licensed massage and bodywork therapist unless the
598.33individual has received a professional credential from another state, is current in licensure,
598.34and remains in good standing under the credentialing state's requirements.

599.1    Sec. 60. FIRST APPOINTMENTS, FIRST MEETING, AND FIRST CHAIR OF
599.2THE ORTHOTICS, PROSTHETICS, AND PEDORTHICS ADVISORY COUNCIL.
599.3The Board of Podiatric Medicine shall make its first appointments authorized
599.4under Minnesota Statutes, section 153B.25, to the Orthotics, Prosthetics, and Pedorthics
599.5Advisory Council, by September 1, 2016. The board shall designate four of its first
599.6appointees to serve terms that are coterminous with the governor. The chair of the Board
599.7of Podiatric Medicine or the chair's designee shall convene the first meeting of the council
599.8by November 1, 2016. The council must elect a chair from among its members at the first
599.9meeting of the council.

599.10    Sec. 61. INITIAL APPOINTMENTS, TERMS, AND MEETING.
599.11The Minnesota Board of Nursing shall make initial appointments to the Registered
599.12Massage and Bodywork Therapist Advisory Council under Minnesota Statutes, section
599.13148.9861, by October 1, 2016, and shall designate one member to call the first meeting of
599.14the advisory council by November 15, 2016. The terms of the initial members appointed
599.15under Minnesota Statutes, section 148.9861, subdivision 1, clause (1), shall end the first
599.16Monday in January 2019. The terms of the initial members appointed under Minnesota
599.17Statutes, section 148.9861, subdivision 1, clause (2), shall end the first Monday in January
599.182020.

599.19    Sec. 62. STAKEHOLDER ENGAGEMENT.
599.20The commissioner of health shall work with community stakeholders in Minnesota
599.21including, but not limited to, the Minnesota Breastfeeding Coalition; the women,
599.22infants, and children program; hospitals and clinics; local public health professionals
599.23and organizations; community-based organizations; and representatives of populations
599.24with low breastfeeding rates to carry out a study identifying barriers, challenges, and
599.25successes affecting initiation, duration, and exclusivity of breastfeeding. The study
599.26shall address policy, systemic, and environmental factors that both support and create
599.27barriers to breastfeeding. These factors include, but are not limited to, issues such as
599.28levels of practice and barriers such as education, clinical experience, and cost to those
599.29seeking certification as an International Board-Certified Lactation Consultant. The study
599.30shall identify and make recommendations regarding culturally appropriate practices that
599.31have been shown to increase breastfeeding rates in populations that have the greatest
599.32breastfeeding disparity rates. A report on the study must be completed and submitted to
599.33the chairs and ranking minority members of the legislative committees with jurisdiction
599.34over health care policy and finance on or before September 15, 2017.

600.1    Sec. 63. INITIAL SPOKEN LANGUAGE HEALTH CARE ADVISORY
600.2COUNCIL MEETING.
600.3The commissioner of health shall convene the first meeting of the Spoken Language
600.4Health Care Advisory Council by October 1, 2016.

600.5    Sec. 64. SPOKEN LANGUAGE HEALTH CARE INTERPRETER REGISTRY
600.6FEES.
600.7Notwithstanding Minnesota Statutes, section 146C.13, paragraph (a), the initial and
600.8renewal fees for interpreters listed on the spoken language health care registry shall be $50
600.9between the period of July 1, 2017, through June 30, 2018, and shall be $70 between the
600.10period of July 1, 2018, through June 30, 2019. Beginning July 1, 2019, the fees shall be
600.11in accordance with Minnesota Statutes, section 146C.13.

600.12    Sec. 65. STRATIFIED MEDICAL ASSISTANCE REIMBURSEMENT SYSTEM
600.13FOR SPOKEN LANGUAGE HEALTH CARE INTERPRETERS.
600.14(a) The commissioner of human services, in consultation with the commissioner
600.15of health, the Spoken Language Health Care Interpreter Advisory Council established
600.16under Minnesota Statutes, section 146C.11, and representatives from the interpreting
600.17stakeholder community at large, shall study and make recommendations for creating a
600.18tiered reimbursement system for the Minnesota public health care programs for spoken
600.19language health care interpreters based on the different tiers of the spoken language health
600.20care interpreters registry established by the commissioner of health under Minnesota
600.21Statutes, chapter 146C.
600.22(b) The commissioner of human services shall submit the proposed reimbursement
600.23system, including the fiscal costs for the proposed system to the chairs and ranking
600.24minority members of the house of representatives and senate committees with jurisdiction
600.25over health and human services policy and finance by January 15, 2017.
600.26(c) The commissioner of health, in consultation with the Spoken Language Health
600.27Care Interpreter Advisory Council, shall review the fees established under Minnesota
600.28Statutes, section 146C.13, and make recommendations based on the results of the
600.29study and recommendations under paragraph (a) whether the fees are established at an
600.30appropriate level, including whether specific fees should be established for each tier of the
600.31registry instead of one uniform fee for all tiers. The total fees collected must be sufficient
600.32to recover the costs of the spoken language health care registry. If the commissioner
600.33recommends different fees for the tiers, the commissioner shall submit the proposed fees
601.1to the chairs and ranking minority members of the legislative committees with jurisdiction
601.2over health and human services policy and finance by January 15, 2018.

601.3    Sec. 66. REPEALER.
601.4Minnesota Statutes 2014, section 144.058, is repealed effective July 1, 2018.

601.5ARTICLE 28

601.6HUMAN SERVICES FORECAST ADJUSTMENTS

601.7

Section 1. HUMAN SERVICES APPROPRIATION.

601.8The sums shown in the columns marked "Appropriations" are added to or, if shown
601.9in parentheses, are subtracted from the appropriations in Laws 2015, chapter 71, article
601.1013, from the general fund or any fund named to the Department of Human Services for
601.11the purposes specified in this article, to be available for the fiscal year indicated for each
601.12purpose. The figures "2016" and "2017" used in this article mean that the appropriations
601.13listed under them are available for the fiscal years ending June 30, 2016, or June 30, 2017,
601.14respectively. "The first year" is fiscal year 2016. "The second year" is fiscal year 2017.
601.15"The biennium" is fiscal years 2016 and 2017.

601.16				APPROPRIATIONS
601.17				Available for the Year
601.18				Ending June 30
601.19					2016		2017

601.20 601.21

Sec. 2. COMMISSIONER OF HUMAN SERVICES

601.22

Subdivision 1.Total Appropriation

$

(615,912,000)

$

(518,891,000)

601.23	Appropriations by Fund
601.24	General Fund	(307,806,000)	(246,029,000)
601.25 601.26	Health Care Access Fund	(289,770,000)	(277,101,000)
601.27	Federal TANF	(18,336,000)	4,239,000

601.28

Subd. 2.Forecasted Programs

601.29

(a) MFIP/DWP

601.30	Appropriations by Fund
601.31	General Fund	9,833,000	(8,799,000)
601.32	Federal TANF	(20,225,000)	4,212,000

601.33

(b) MFIP Child Care Assistance

(23,094,000)

(7,760,000)

602.1

(c) General Assistance

(2,120,000)

(1,078,000)

602.2

(d) Minnesota Supplemental Aid

(1,613,000)

(1,650,000)

602.3

(e) Group Residential Housing

(8,101,000)

(7,954,000)

602.4

(f) Northstar Care for Children

2,231,000

4,496,000

602.5

(g) MinnesotaCare

(227,821,000)

(230,027,000)

602.6These appropriations are from the health care
602.7access fund.

602.8

(h) Medical Assistance

602.9	Appropriations by Fund
602.10	General Fund	(294,773,000)	(243,700,000)
602.11 602.12	Health Care Access Fund	(61,949,000)	(47,074,000)

602.13

(i) Alternative Care Program

-0-

-0-

602.14

(j) CCDTF Entitlements

9,831,000

20,416,000

602.15

Subd. 3.Technical Activities

1,889,000

27,000

602.16These appropriations are from the federal
602.17TANF fund.
602.18EFFECTIVE DATE.This section is effective the day following final enactment.

602.19ARTICLE 29

602.20HEALTH AND HUMAN SERVICES APPROPRIATIONS

602.21

Section 1. HEALTH AND HUMAN SERVICES APPROPRIATIONS.

602.22The sums shown in the columns marked "Appropriations" are added to or, if shown
602.23in parentheses, subtracted from the appropriations in Laws 2015, chapter 71, article 14, to
602.24the agencies and for the purposes specified in this act. The appropriations are from the
602.25general fund or other named fund and are available for the fiscal years indicated for each
602.26purpose. The figures "2016" and "2017" used in this act mean that the addition to or
602.27subtraction from the appropriation listed under them is available for the fiscal year ending
602.28June 30, 2016, or June 30, 2017, respectively. Supplemental appropriations and reductions
602.29to appropriations for the fiscal year ending June 30, 2016, are effective the day following
602.30final enactment unless a different effective date is explicit.

603.1				APPROPRIATIONS
603.2				Available for the Year
603.3				Ending June 30
603.4					2016		2017

603.5 603.6

Sec. 2. COMMISSIONER OF HUMAN SERVICES

603.7

Subdivision 1.Total Appropriation

$

-0-

$

128,627,000

603.8	Appropriations by Fund
603.9		2016	2017
603.10	General	-0-	125,235,000
603.11 603.12	State Government Special Revenue	-0-	25,000
603.13	Health Care Access	-0-	3,367,000

603.14

Subd. 2.Central Office Operations

603.15

(a) Operations

603.16	Appropriations by Fund
603.17	General	-0-	3,459,000
603.18 603.19	State Government Special Revenue	-0-	25,000
603.20	Health Care Access	-0-	982,000

603.21Payments for Timely Administration of
603.22Criminal Proceedings. $200,000 in fiscal
603.23year 2017 is for the timely administration
603.24of criminal proceedings involving clients
603.25and patients in the Minnesota sex offender
603.26program and the state-operated forensic
603.27services. In fiscal year 2017 and each fiscal
603.28year thereafter, up to $50,000 shall be paid
603.29to Carlton County, up to $50,000 shall be
603.30paid to Nicollet County, up to $50,000
603.31shall be paid to the Sixth Judicial District
603.32Public Defender's Office, and up to $50,000
603.33shall be paid to the Fifth District Public
603.34Defender's Office. The commissioner shall
603.35monitor the payments at least quarterly. If
603.36the commissioner determines that an entity
603.37will not spend all of its allocation before
604.1the end of the fiscal year, the commissioner
604.2shall reallocate any unspent dollars to an
604.3entity or entities that had an insufficient
604.4allocation. By January 15 of each year, the
604.5commissioner shall report to the chairs and
604.6ranking minority members of the house of
604.7representatives and senate health and human
604.8services finance committees the amount of
604.9unspent funds during the previous fiscal
604.10year. The commissioner shall not use funds
604.11appropriated for administrative costs.
604.12Request for Information. $165,000 in fiscal
604.13year 2017 is for transfer to the commissioner
604.14of management and budget to develop a
604.15request for information on a privatized
604.16state-based marketplace model. This is a
604.17onetime transfer.
604.18Base Adjustment. The general fund base is
604.19decreased by $2,206,000 in fiscal year 2018
604.20and $2,287,000 in fiscal year 2019. The state
604.21government special revenue fund base is
604.22decreased by $3,709,000 in fiscal year 2018
604.23and $3,709,000 in fiscal year 2019. The
604.24health care access fund base is increased by
604.25$905,000 in fiscal year 2018 and $468,000 in
604.26fiscal year 2019.

604.27

(b) Children and Families

-0-

132,000

604.28Base Adjustment. The general fund base is
604.29decreased by $132,000 in fiscal years 2018
604.30and 2019.

604.31

(c) Health Care

604.32	Appropriations by Fund
604.33	General	-0-	1,186,000
605.1 605.2	State Government Special Revenue	-0-	25,000
605.3	Health Care Access	-0-	550,000

605.4Spoken Language Health Care
605.5Interpreters Reimbursement System
605.6Study. $25,000 is from the state government
605.7special revenue fund to study and submit
605.8a proposed stratified medical assistance
605.9reimbursement system for spoken language
605.10health care interpreters. This is a onetime
605.11appropriation.
605.12Base Adjustment. The general fund base is
605.13decreased by $187,000 in fiscal year 2018
605.14and $187,000 in fiscal year 2019. The state
605.15government special revenue fund base is
605.16decreased by $25,000 in fiscal year 2018 and
605.17$25,000 in fiscal year 2019. The health care
605.18access fund base is increased by $2,948,000
605.19in fiscal year 2018 and $2,991,000 in fiscal
605.20year 2019.

605.21

(d) Continuing Care

-0-

534,000

605.22Study of Home and Community-Based
605.23Services Workforce. $414,000 in fiscal
605.24year 2017 is to complete a study of home
605.25and community-based services workforce
605.26and its impact on service access. In addition
605.27to the data collected under Minnesota
605.28Statutes, section 256B.4912, subdivision 11,
605.29the commissioner may also use surveys or
605.30other methods to complete this study. On
605.31January 1, 2018, the commissioner shall
605.32report the findings of the study, including
605.33recommendations on how to address access
605.34to services, and recommendations on a
605.35higher reimbursement rate for staff providing
606.1services to individuals with higher home care
606.2ratings, case mixes, or levels of care, to the
606.3chairs and ranking minority members of the
606.4legislative committees with jurisdiction over
606.5health and human services policy and finance
606.6and labor and industry. The general fund
606.7base for this appropriation is $621,000 in
606.8fiscal year 2018 and zero in fiscal year 2019.
606.9Base Adjustment. The general fund base is
606.10increased by $447,000 in fiscal year 2018 and
606.11decreased by $174,000 in fiscal year 2019.

606.12

(e) Community Supports

-0-

134,000

606.13Base Adjustment. The general fund base
606.14is increased by $469,000 in fiscal year 2018
606.15and $429,000 in fiscal year 2019.

606.16

Subd. 3.Forecasted Programs

606.17

(a) MFIP Child Care Assistance

-0-

4,973,000

606.18

(b) Northstar Care for Children

-0-

8,802,000

606.19

(c) MinnesotaCare

-0-

2,108,000

606.20This appropriation is from the health care
606.21access fund.

606.22

(d) Medical Assistance

606.23	Appropriations by Fund
606.24	General	-0-	34,004,000
606.25	Health Care Access	-0-	277,000

606.26 606.27

(e) Consolidated Chemical Dependency Treatment Fund

-0-

5,897,000

606.28CCDTF Transfer. In fiscal year 2017,
606.29the commissioner shall transfer $2,000,000
606.30from the consolidated chemical dependency
606.31treatment fund administrative account in the
606.32special revenue fund to the general fund.
606.33This is a onetime transfer.

607.1

Subd. 4.Grant Programs

607.2

(a) BSF Child Care Assistance Grants

-0-

3,137,000

607.3Base Adjustment. The general fund base is
607.4increased by $4,258,000 in fiscal year 2018
607.5and $4,258,000 in fiscal year 2019.

607.6

(b) Child Care Development Grants

-0-

1,500,000

607.7Increased Access to Affordable Child
607.8Care in Greater Minnesota. $1,500,000
607.9in fiscal year 2017 is from the general fund
607.10for grants of $250,000 to each of the six
607.11Minnesota Initiative Foundations to increase
607.12access to affordable child care in greater
607.13Minnesota. Grant funds may be used to
607.14increase child care provider training and
607.15professional development; support legal
607.16nonlicensed family, friend, and neighbor
607.17child care providers; provide potential and
607.18current child care providers with licensing,
607.19financial, and technical assistance; help child
607.20care providers become rated under the Parent
607.21Aware quality rating system; and strengthen
607.22local capacity and increase the availability
607.23of affordable high-quality child care in each
607.24region. This is a onetime appropriation and
607.25is available until June 30, 2019.
607.26Base Adjustment. The general fund base is
607.27decreased by $1,500,000 in fiscal year 2018
607.28and $1,500,000 in fiscal year 2019.

607.29

(c) Children's Services Grants

-0-

1,860,000

607.30American Indian Child Welfare Initiative.
607.31$800,000 in fiscal year 2017 is for planning
607.32efforts to expand the American Indian
607.33Child Welfare Initiative authorized under
607.34Minnesota Statutes, section 256.01,
608.1subdivision 14b. Of this appropriation,
608.2$400,000 is for grants to the Mille Lacs
608.3Band of Ojibwe and $400,000 is for grants
608.4to the Red Lake Nation. This is a onetime
608.5appropriation.
608.6Crisis Nursery Services. $60,000 in fiscal
608.7year 2017 is for a grant to an organization
608.8in Minneapolis that provides free, voluntary
608.9crisis nursery services for families in crisis
608.1024 hours per day, 365 days per year; crisis
608.11counseling; overnight residential child care;
608.12a 24-hour crisis hotline; and parent education
608.13to provide a trauma-informed continuum
608.14of care for families living in poverty, to
608.15continue efforts to prevent child abuse and
608.16neglect, and to develop practices that can be
608.17shared with organizations around the state
608.18to reduce child abuse and neglect. This is a
608.19onetime appropriation and is available until
608.20June 30, 2019.
608.21Base Adjustment. The general fund base is
608.22decreased by $860,000 in fiscal year 2018
608.23and $860,000 in fiscal year 2019.

608.24

(d) Child and Community Service Grants

-0-

1,900,000

608.25White Earth Band of Ojibwe Human
608.26Services Initiative Project. $1,400,000
608.27in fiscal year 2017 is for a grant to the
608.28White Earth Band of Ojibwe for the direct
608.29implementation and administrative costs of
608.30the White Earth Human Service Initiative
608.31Project authorized under Laws 2011, First
608.32Special Session chapter 9, article 9, section
608.3318.
608.34Red Lake Nation Human Services
608.35Initiative Project. $500,000 in fiscal year
609.12017 is for a grant to the Red Lake Nation for
609.2the direct implementation and administrative
609.3costs of the Red Lake Human Service
609.4Initiative Project authorized under Minnesota
609.5Statutes, section 256.01, subdivision 2,
609.6paragraph (a), clause (7).

609.7

(e) Child and Economic Support Grants

-0-

1,500,000

609.8Safe Harbor for Sexually Exploited Youth.
609.9$500,000 in fiscal year 2017 is for emergency
609.10shelter and transitional and long-term
609.11housing beds for sexually exploited youth
609.12and youth at risk of sexual exploitation. The
609.13base for this appropriation is $625,000 in
609.14fiscal year 2018 and $625,000 in fiscal year
609.152019. The commissioner shall not use any
609.16portion of this appropriation nor of the base
609.17amounts in fiscal year 2018 and fiscal year
609.182019 for administrative costs.
609.19Base Level Adjustment. The general fund
609.20base is increased by $375,000 in fiscal year
609.212018 and $375,000 in fiscal year 2019.

609.22

(f) Adult Mental Health Grants

-0-

200,000

609.23Adult Mental Illness Crisis Housing
609.24Assistance Program. The general fund
609.25appropriation for the adult mental illness
609.26crisis housing assistance program is
609.27decreased by $300,000 in fiscal year 2017.
609.28The general fund appropriation is increased
609.29by $300,000 in fiscal year 2017 for expanding
609.30eligibility to include persons with serious
609.31mental illness under Minnesota Statutes,
609.32section 245.99, subdivision 2.
609.33Integrated Behavioral Health Care
609.34Coordination Demonstration Project.
609.35$200,000 in fiscal year 2017 is for a grant
610.1to the Zumbro Valley Health Center. The
610.2grant shall be used to continue a pilot
610.3project to test an integrated behavioral
610.4health care coordination model. The grant
610.5recipient must report measurable outcomes
610.6to the commissioner of human services
610.7by December 1, 2018. This is a onetime
610.8appropriation and is available until June 30,
610.92018.
610.10Base Adjustment. The general fund base is
610.11decreased by $200,000 in fiscal year 2018 and
610.12is decreased by $200,000 in fiscal year 2019.

610.13

(g) Child Mental Health Grants

-0-

2,500,000

610.14Child and Adolescent Behavioral Health
610.15Services Grant. The child mental health
610.16grants base includes $1,500,000 in fiscal
610.17year 2018 and $1,500,000 in fiscal year
610.182019 for children's mental health grants to
610.19sustain extended-stay inpatient psychiatric
610.20hospital services for children and adolescents
610.21under Minnesota Statutes, section 245.4889,
610.22subdivision 1, paragraph (a), clause (17).
610.23School-Linked Mental Health Grants.
610.24$1,500,000 in fiscal year 2017 is for children's
610.25mental health grants under Minnesota
610.26Statutes, section 245.4889, subdivision 1,
610.27paragraph (b), clause (8), for current grantees
610.28to expand services to school buildings,
610.29school districts, or counties that do not have
610.30school-linked mental health available, and
610.31to provide training to grantees on the use of
610.32evidence-based practices. The general fund
610.33base for this appropriation is $2,250,000 in
610.34fiscal year 2018 and $2,250,000 in fiscal year
610.352019. The amount in fiscal year 2019 shall
611.1be awarded through a competitive process
611.2open to all eligible grantees as part of a new
611.3grant cycle. This appropriation does not
611.4include additional administrative money.
611.5Children's Mental Health Collaboratives;
611.6Youth and Young Adult Mental Health
611.7Demonstration Project. $1,000,000
611.8in fiscal year 2017 is for a grant to a
611.9children's mental health collaborative
611.10under Minnesota Statutes, section 245.493,
611.11that serves Kandiyohi, McLeod, Meeker,
611.12Renville, and Yellow Medicine Counties
611.13for a rural demonstration project to assist
611.14transition-aged youth and young adults with
611.15emotional behavioral disturbance (EBD)
611.16or mental illnesses in making a successful
611.17transition into adulthood. This is a onetime
611.18appropriation and is available until June 30,
611.192019.
611.20Base Adjustment. The general fund base is
611.21increased by $1,250,000 in fiscal years 2018
611.22and 2019.

611.23

Subd. 5.DCT State-Operated Services

611.24 611.25

(a) DCT State-Operated Services Mental Health

-0-

30,942,000

611.26Restore Funds Transferred to Minnesota
611.27State-Operated Community Services.
611.28$14,000,000 in fiscal year 2017 is to restore
611.29funds transferred to the enterprise fund for
611.30state-operated community services in fiscal
611.31year 2016. This is a onetime appropriation.
611.32Community Behavioral Health Hospitals
611.33Full Capacity Staffing. $19,678,000 in
611.34fiscal year 2017 is to increase staffing to a
611.35level sufficient to operate the community
612.1behavioral health hospitals at full licensed
612.2capacity. The base for this appropriation
612.3is $25,879,000 in fiscal year 2018 and
612.4$25,879,000 in fiscal year 2019.
612.5Anoka Metro Regional Treatment Center
612.6Nursing Float Pool. $788,000 in fiscal
612.7year 2017 is for a nursing float pool for
612.8weekend coverage at the Anoka Metro
612.9Regional Treatment Center. The base for this
612.10appropriation is $1,526,000 in fiscal year
612.112018 and $1,526,000 in fiscal year 2019.
612.12Anoka Metro Regional Treatment Center
612.13Increased Clinical Oversight. $336,000
612.14in fiscal year 2017 is for increased clinical
612.15oversight at the Anoka Metro Regional
612.16Treatment Center. The base for this
612.17appropriation is $632,000 in fiscal year 2018
612.18and $632,000 in fiscal year 2019.
612.19Child and Adolescent Behavioral Health
612.20Services Closure. The child and adolescent
612.21behavioral health services program in
612.22Willmar shall discontinue operations no later
612.23than June 30, 2017.
612.24Base Adjustment. The general fund base is
612.25decreased by $12,852,000 in fiscal year 2018
612.26and $13,715,000 in fiscal year 2019.

612.27 612.28

(b) DCT State-Operated Services Enterprise Services

-0-

3,000,000

612.29State-Operated Community Services.
612.30$3,000,000 in fiscal year 2017 is for the
612.31Minnesota state-operated community
612.32services program. This is a onetime
612.33appropriation. The commissioner must
612.34transfer $3,000,000 in fiscal year 2017 to the
612.35enterprise fund for Minnesota state-operated
613.1community services. This is a onetime
613.2transfer.
613.3Base Adjustment. The general fund base is
613.4decreased by $3,000,000 in fiscal year 2018
613.5and $3,000,000 in fiscal year 2019.

613.6 613.7

(c) DCT State-Operated Services Minnesota Security Hospital

-0-

17,754,000

613.8Competency Restoration Program.
613.9$6,754,000 in fiscal year 2017 is for the
613.10development of a new residential competency
613.11restoration program to be operated by
613.12state-operated forensic services. The
613.13commissioner shall use this appropriation to
613.14make available 20 hospital beds at Anoka
613.15Metro Regional Treatment Center and
613.1612 secure beds at the Minnesota Security
613.17Hospital. The base for this appropriation
613.18is $8,423,000 in fiscal year 2018 and
613.19$8,423,000 in fiscal year 2019.
613.20Base Adjustment. The general fund base is
613.21increased by $3,169,000 in fiscal year 2018
613.22and $3,169,000 in fiscal year 2019.

613.23 613.24

Subd. 6.DCT Minnesota Sex Offender Program

-0-

3,807,000

613.25Base Adjustment. The general fund base is
613.26decreased by $1,306,000 in fiscal year 2018
613.27and $1,306,000 in fiscal year 2019.

613.28

Sec. 3. COMMISSIONER OF HEALTH

613.29

Subdivision 1.Total Appropriation

$

-0-

$

4,709,000

613.30	Appropriations by Fund
613.31		2016	2017
613.32	General	-0-	1,291,000
613.33 613.34	State Government Special Revenue	-0-	873,000
613.35	Health Care Access	-0-	2,545,000

614.1The appropriations for each purpose are
614.2shown in the following subdivisions.

614.3

Subd. 2.Health Improvement

614.4	Appropriations by Fund
614.5	General	-0-	1,067,000
614.6	Health Care Access	-0-	2,545,000

614.7Medical Cannabis Patient Registry.
614.8$50,000 in fiscal year 2017 is from the
614.9general fund for updates to the medical
614.10cannabis patient registry. This is a onetime
614.11appropriation.
614.12Health Care System Study. $500,000 in
614.13fiscal year 2017 is from the health care access
614.14fund for a health care system study. This is a
614.15onetime appropriation and is available until
614.16June 30, 2018.
614.17Safe Harbor for Sexually Exploited Youth.
614.18$500,000 in fiscal year 2017 is from the
614.19general fund for trauma-informed, culturally
614.20specific services for exploited youth. The
614.21base for this appropriation is $625,000
614.22in fiscal year 2018 and $625,000 in fiscal
614.23year 2019. Neither the appropriation in
614.24fiscal year 2017 nor the base amounts in
614.25fiscal years 2018 and 2019 may be used for
614.26administration.
614.27Greater Minnesota Family Medicine
614.28Residency. $1,035,000 in fiscal year 2017
614.29is from the health care access fund for the
614.30greater Minnesota family medicine residency
614.31grant program under Minnesota Statutes,
614.32section 144.1912. The commissioner may
614.33use up to $35,000 for administration.
614.34Health Care Grants for Uninsured
614.35Individuals. (a) $50,000 in fiscal year
615.12017 is from the health care access fund for
615.2dental provider grants in Minnesota Statutes,
615.3section 145.929, subdivision 1.
615.4(b) $175,000 in fiscal year 2017 is from
615.5the health care access fund for community
615.6mental health program grants in Minnesota
615.7Statutes, section 145.929, subdivision 2.
615.8(c) $600,000 in fiscal year 2017 is from the
615.9health care access fund for the emergency
615.10medical assistance outlier grant program
615.11in Minnesota Statutes, section 145.929,
615.12subdivision 3 .
615.13(d) $175,000 in fiscal year 2017 is from the
615.14health care access fund for community health
615.15center grants under Minnesota Statutes,
615.16section 145.9269. A community health center
615.17that receives a grant from this appropriation
615.18is not eligible for a grant under paragraph (b).
615.19Statewide School-Based Sealant Grant
615.20Program. $517,000 in fiscal year 2017
615.21is from the general fund to implement the
615.22statewide school-based sealant program
615.23under Minnesota Statutes, section 144.0615.
615.24The base for this appropriation is $615,000
615.25in fiscal year 2018 and $717,000 in fiscal
615.26year 2019.
615.27Base Adjustment for Early Dental
615.28Prevention Initiative. The general fund
615.29base for the early dental prevention initiative
615.30is increased by $64,000 in fiscal year 2018
615.31and $64,000 in fiscal year 2019. The
615.32commissioner shall not use any portion of
615.33this base increase for administration. This
615.34paragraph does not expire.
616.1Base-Level Adjustments. The general fund
616.2base is increased by $237,000 in fiscal year
616.32018 and $339,000 in fiscal year 2019. The
616.4health care access fund base is decreased by
616.5$510,000 in fiscal year 2018 and $510,000 in
616.6fiscal year 2019.

616.7

Subd. 3.Health Protection

616.8	Appropriations by Fund
616.9	General	-0-	224,000
616.10 616.11	State Government Special Revenue	-0-	873,000

616.12Drinking Water Revolving Fund. $230,000
616.13in fiscal year 2017 is from the general fund
616.14for administration of the drinking water
616.15revolving fund.
616.16Quality of Care Complaints. $180,000
616.17in fiscal year 2017 is from the state
616.18government special revenue fund for
616.19managed care organization quality of care
616.20complaint investigations. This is a onetime
616.21appropriation.
616.22Spoken Language Health Care Interpreter
616.23Registry. $358,000 is from the state
616.24government special revenue fund for the
616.25spoken language health care interpreter
616.26registry and registration activities under
616.27Minnesota Statutes, chapter 146C. Of this
616.28amount, $280,000 is for onetime start-up
616.29costs for the registry and is available
616.30until June 30, 2019. The base for this
616.31appropriation is $241,000 in fiscal year 2018
616.32and $156,000 in fiscal year 2019.
616.33Clinical Lactation Services Licensing.
616.34$174,000 in fiscal year 2017 is from the state
616.35government special revenue fund for clinical
617.1lactation services licensure activities under
617.2Minnesota Statutes, sections 148.9801 to
617.3148.9812. The base for this appropriation is
617.4$54,000 in fiscal year 2018 and $54,000 in
617.5fiscal year 2019.
617.6Base Level Adjustment. The state
617.7government special revenue fund base is
617.8decreased by $636,000 in fiscal year 2018
617.9and $658,000 in fiscal year 2019.

617.10

Sec. 4. HEALTH-RELATED BOARDS

617.11

Subdivision 1.Total Appropriation

$

195,000

$

609,000

617.12This appropriation is from the state
617.13government special revenue fund.

617.14

Subd. 2.Board of Dentistry

(850,000)

(864,000)

617.15 617.16

Subd. 3.Board of Marriage and Family Therapy

40,000

50,000

617.17

Subd. 4.Board of Medical Practice

-0-

22,000

617.18Genetic Counselor Licensing. $22,000 in
617.19fiscal year 2017 is from the state government
617.20special revenue fund for genetic counselor
617.21licensure activities under Minnesota Statutes,
617.22chapter 147F.

617.23

Subd. 5.Board of Nursing

-0-

257,000

617.24Massage and Bodywork Therapist
617.25Registration. $257,000 in fiscal year 2017
617.26is from the state government special revenue
617.27fund for massage and bodywork therapist
617.28registration activities under Minnesota
617.29Statutes, sections 148.982 to 148.9885. The
617.30base appropriation in fiscal year 2018 is
617.31$275,000 and $276,000 in fiscal year 2019.
617.32Base Level Adjustment. The state
617.33government special revenue fund base is
618.1increased by $18,000 in fiscal year 2018 and
618.2$19,000 in fiscal year 2019.

618.3

Subd. 6.Board of Pharmacy

115,000

145,000

618.4

Subd. 7.Board of Physical Therapy

890,000

924,000

618.5Health Professional Services Program. Of
618.6this appropriation, $850,000 in fiscal year
618.72016 and $864,000 in fiscal year 2017 are
618.8from the state government special revenue
618.9fund for the health professional services
618.10program.

618.11

Subd. 8.Board of Podiatric Medicine

-0-

75,000

618.12Orthotist, Prosthetist, and Pedorthist
618.13Licensing. $75,000 in fiscal year 2017 is
618.14from the state government special revenue
618.15fund for licensure activities under the
618.16Minnesota Orthotists, Prosthetist, and
618.17Pedorthist Practice Act, Minnesota Statutes,
618.18chapter 153B. The base appropriation is
618.19$112,000 in fiscal year 2018 and $112,000 in
618.20fiscal year 2019.
618.21Base Level Adjustment. The state
618.22government special revenue fund base is
618.23increased by $37,000 in fiscal year 2018 and
618.24$37,000 in fiscal year 2019.

618.25 618.26 618.27

Sec. 5. OMBUDSMAN FOR MENTAL HEALTH AND DEVELOPMENTAL DISABILITIES

$

100,000

$

209,000

618.28Base Level Adjustment. The general fund
618.29base is increased by $41,000 in fiscal year
618.302018 and $41,000 in fiscal year 2019.

618.31

Sec. 6. DEPARTMENT OF COMMERCE

$

(210,000)

$

(190,000)

618.32    Sec. 7. Laws 2015, chapter 71, article 14, section 4, subdivision 3, is amended to read:

619.1

Subd. 3.Board of Dentistry

2,192,000

2,206,000

619.2This appropriation includes $864,000 in fiscal
619.3year 2016 and $878,000 in fiscal year 2017
619.4for the health professional services program.

619.5    Sec. 8. Laws 2015, chapter 71, article 14, section 9, is amended to read:

619.6

Sec. 9. COMMISSIONER OF COMMERCE

$

210,000

$

213,000

619.7The commissioner of commerce shall
619.8develop a proposal to allow individuals
619.9to purchase qualified health plans outside
619.10of MNsure directly from health plan
619.11companies and to allow eligible individuals
619.12to receive advanced premium tax credits and
619.13cost-sharing reductions when purchasing
619.14qualified health plans outside of MNsure.

619.15    Sec. 9. EXPIRATION OF UNCODIFIED LANGUAGE.
619.16All uncodified language contained in this article expires on June 30, 2017, unless a
619.17different expiration date is explicit.

619.18    Sec. 10. EFFECTIVE DATE.
619.19This article is effective the day following final enactment.