2nd Engrossment - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am
1.1 A bill for an act 1.2 relating to state government; appropriating money for 1.3 prekindergarten through grade 12 education, including 1.4 general education, education excellence, special 1.5 programs, and facilities and technology; early 1.6 childhood and family education, including early 1.7 childhood family support, prevention, and 1.8 self-sufficiency and lifelong learning; libraries; and 1.9 health and human services; setting priorities for use 1.10 of additional revenues; modifying certain bonding, 1.11 loan, and financial provisions of the public 1.12 facilities authority; amending Minnesota Statutes 1.13 2002, sections 446A.12, subdivision 1; 446A.14; 1.14 446A.17; 446A.19; Minnesota Statutes 2003 Supplement, 1.15 sections 16A.152, subdivision 2; 123B.54; Laws 2003, 1.16 First Special Session chapter 9, article 1, section 1.17 53, subdivisions 2, 3, 5, 6, 11, 12; Laws 2003, First 1.18 Special Session chapter 9, article 2, section 55, 1.19 subdivisions 2, 3, 4, 5, 7, 9, 12; Laws 2003, First 1.20 Special Session chapter 9, article 3, section 20, 1.21 subdivisions 4, 5, 6, 7, 8, 9; Laws 2003, First 1.22 Special Session chapter 9, article 4, section 31, 1.23 subdivisions 2, 3; Laws 2003, First Special Session 1.24 chapter 9, article 5, section 35, subdivisions 2, 3; 1.25 Laws 2003, First Special Session chapter 9, article 6, 1.26 section 4; Laws 2003, First Special Session chapter 9, 1.27 article 7, section 11, subdivision 3; Laws 2003, First 1.28 Special Session chapter 9, article 8, section 7, 1.29 subdivisions 2, 5; Laws 2003, First Special Session 1.30 chapter 9, article 9, section 9, subdivision 2; Laws 1.31 2003, First Special Session chapter 14, article 13C, 1.32 sections 1; 2, subdivisions 1, 3, 6, 7, 9, 11; 10, 1.33 subdivisions 1, 2. 1.34 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.35 ARTICLE 1 1.36 PREKINDERGARTEN THROUGH GRADE 12 EDUCATION 1.37 A. GENERAL EDUCATION 1.38 Section 1. Laws 2003, First Special Session chapter 9, 1.39 article 1, section 53, subdivision 2, is amended to read: 2.1 Subd. 2. [GENERAL EDUCATION AID.] For general education 2.2 aid under Minnesota Statutes, section 126C.13, subdivision 4: 2.3$4,764,384,000$4,726,466,000 ..... 2004 2.4$5,090,303,000$5,026,983,000 ..... 2005 2.5 The 2004 appropriation includes$857,432,000$860,552,000 2.6 for 2003 and$3,906,952,000$3,865,914,000 for 2004. 2.7 The 2005 appropriation includes 2.8$1,009,856,000$1,009,822,000 for 2004 2.9 and$4,080,447,000$4,017,161,000 for 2005. 2.10 Sec. 2. Laws 2003, First Special Session chapter 9, 2.11 article 1, section 53, subdivision 3, is amended to read: 2.12 Subd. 3. [REFERENDUM TAX BASE REPLACEMENT AID.] For 2.13 referendum tax base replacement aid under Minnesota Statutes, 2.14 section 126C.17, subdivision 7a: 2.15$ 7,841,000$8,096,000 ..... 2004 2.16$ 8,543,000$8,596,000 ..... 2005 2.17 The 2004 appropriation includes $1,419,000 for 2003 and 2.18$6,422,000$6,677,000 for 2004. 2.19 The 2005 appropriation includes$1,605,000$1,669,000 for 2.20 2004 and$6,938,000$6,927,000 for 2005. 2.21 Sec. 3. Laws 2003, First Special Session chapter 9, 2.22 article 1, section 53, subdivision 5, is amended to read: 2.23 Subd. 5. [ABATEMENT REVENUE.] For abatement aid under 2.24 Minnesota Statutes, section 127A.49: 2.25$2,680,000$2,436,000 ..... 2004 2.26$2,937,000$1,559,000 ..... 2005 2.27 The 2004 appropriation includes $472,000 for 2003 and 2.28$2,208,000$1,964,000 for 2004. 2.29 The 2005 appropriation includes$551,000$491,000 for 2004 2.30 and$2,386,000$1,068,000 for 2005. 2.31 Sec. 4. Laws 2003, First Special Session chapter 9, 2.32 article 1, section 53, subdivision 6, is amended to read: 2.33 Subd. 6. [CONSOLIDATION TRANSITION.] For districts 2.34 consolidating under Minnesota Statutes, section 123A.485: 2.35$207,000$ 35,000 ..... 2004 2.36$607,000$145,000 ..... 2005 3.1 The 2004 appropriation includes $35,000 for 2003 and 3.2$172,000$0 for 2004. 3.3 The 2005 appropriation includes$42,000$0 for 2004 and 3.4$565,000$145,000 for 2005. 3.5 Sec. 5. Laws 2003, First Special Session chapter 9, 3.6 article 1, section 53, subdivision 11, is amended to read: 3.7 Subd. 11. [NONPUBLIC PUPIL AID.] For nonpublic pupil 3.8 education aid under Minnesota Statutes, sections 123B.40 to 3.9 123B.43 and 123B.87: 3.10$14,626,000$14,411,000 ..... 2004 3.11$15,594,000$15,072,000 ..... 2005 3.12 The 2004 appropriation includes $2,715,000 for 2003 and 3.13$11,911,000$11,696,000 for 2004. 3.14 The 2005 appropriation includes$2,977,000$2,923,000 for 3.15 2004 and$12,617,000$12,149,000 for 2005. 3.16 Sec. 6. Laws 2003, First Special Session chapter 9, 3.17 article 1, section 53, subdivision 12, is amended to read: 3.18 Subd. 12. [NONPUBLIC PUPIL TRANSPORTATION.] For nonpublic 3.19 pupil transportation aid under Minnesota Statutes, section 3.20 123B.92, subdivision 9: 3.21$21,477,000$20,471,000 ..... 2004 3.22$21,982,000$21,421,000 ..... 2005 3.23 The 2004 appropriation includes $3,990,000 for 2003 and 3.24$17,487,000$16,481,000 for 2004. 3.25 The 2005 appropriation includes$4,371,000$4,120,000 for 3.26 2004 and$17,611,000$17,301,000 for 2005. 3.27 B. EDUCATION EXCELLENCE 3.28 Sec. 7. Laws 2003, First Special Session chapter 9, 3.29 article 2, section 55, subdivision 2, is amended to read: 3.30 Subd. 2. [CHARTER SCHOOL BUILDING LEASE AID.] For building 3.31 lease aid under Minnesota Statutes, section 124D.11, subdivision 3.32 4: 3.33$17,140,000$16,753,000 ..... 2004 3.34$21,018,000$21,347,000 ..... 2005 3.35 The 2004 appropriation includes $2,524,000 for 2003 and 3.36$14,616,000$14,229,000 for 2004. 4.1 The 2005 appropriation includes$3,654,000$3,557,000 for 4.2 2004 and$17,364,000$17,790,000 for 2005. 4.3 Sec. 8. Laws 2003, First Special Session chapter 9, 4.4 article 2, section 55, subdivision 3, is amended to read: 4.5 Subd. 3. [CHARTER SCHOOL STARTUP AID.] For charter school 4.6 startup cost aid under Minnesota Statutes, section 124D.11: 4.7$824,000$844,000 ..... 2004 4.8$151,000$156,000 ..... 2005 4.9 The 2004 appropriation includes $220,000 for 2003 and 4.10$604,000$624,000 for 2004. 4.11 The 2005 appropriation includes$151,000$156,000 for 2004 4.12 and $0 for 2005. 4.13 Sec. 9. Laws 2003, First Special Session chapter 9, 4.14 article 2, section 55, subdivision 4, is amended to read: 4.15 Subd. 4. [CHARTER SCHOOL INTEGRATION GRANTS.] For grants 4.16 to charter schools to promote integration and desegregation 4.17 under Minnesota Statutes, section 124D.11, subdivision 6, 4.18 paragraph (e): 4.19$8,000$7,000 ..... 2004 4.20 This appropriation includes$8,000$7,000 for 2003 and $0 4.21 for 2004. 4.22 Sec. 10. Laws 2003, First Special Session chapter 9, 4.23 article 2, section 55, subdivision 5, is amended to read: 4.24 Subd. 5. [INTEGRATION AID.] For integration aid under 4.25 Minnesota Statutes, section 124D.86, subdivision 5: 4.26$56,869,000$55,911,000 ..... 2004 4.27$56,092,000$55,893,000 ..... 2005 4.28 The 2004 appropriation includes $8,428,000 for 2003 and 4.29$48,441,000$47,483,000 for 2004. 4.30 The 2005 appropriation includes$12,110,000$11,870,000 for 4.31 2004 and$43,982,000$44,023,000 for 2005. 4.32 Sec. 11. Laws 2003, First Special Session chapter 9, 4.33 article 2, section 55, subdivision 7, is amended to read: 4.34 Subd. 7. [MAGNET SCHOOL STARTUP AID.] For magnet school 4.35 startup aid under Minnesota Statutes, section 124D.88: 4.36 $ 37,000 ..... 2004 5.1$454,000$ 40,000 ..... 2005 5.2 The 2004 appropriation includes $37,000 for 2003 and $0 for 5.3 2004. 5.4 The 2005 appropriation includes $0 for 2004 and$437,0005.5 $40,000 for 2005. 5.6 Sec. 12. Laws 2003, First Special Session chapter 9, 5.7 article 2, section 55, subdivision 9, is amended to read: 5.8 Subd. 9. [SUCCESS FOR THE FUTURE.] For American Indian 5.9 success for the future grants under Minnesota Statutes, section 5.10 124D.81: 5.11$2,073,000$2,061,000 ..... 2004 5.12 $2,137,000 ..... 2005 5.13 The 2004 appropriation includes$363,000$351,000 for 2003 5.14 and $1,710,000 for 2004. 5.15 The 2005 appropriation includes $427,000 for 2004 and 5.16 $1,710,000 for 2005. 5.17 Sec. 13. Laws 2003, First Special Session chapter 9, 5.18 article 2, section 55, subdivision 12, is amended to read: 5.19 Subd. 12. [TRIBAL CONTRACT SCHOOLS.] For tribal contract 5.20 school aid under Minnesota Statutes, section 124D.83: 5.21$2,135,000$1,617,000 ..... 2004 5.22$2,336,000$2,185,000 ..... 2005 5.23 The 2004 appropriation includes $285,000 for 2003 and 5.24$1,850,000$1,332,000 for 2004. 5.25 The 2005 appropriation includes$462,000$333,000 for 2004 5.26 and$1,874,000$1,852,000 for 2005. 5.27 C. SPECIAL PROGRAMS 5.28 Sec. 14. Laws 2003, First Special Session chapter 9, 5.29 article 3, section 20, subdivision 4, is amended to read: 5.30 Subd. 4. [AID FOR CHILDREN WITH DISABILITIES.] For aid 5.31 under Minnesota Statutes, section 125A.75, subdivision 3, for 5.32 children with disabilities placed in residential facilities 5.33 within the district boundaries for whom no district of residence 5.34 can be determined: 5.35$2,177,000$2,311,000 ..... 2004 5.36$2,244,000$2,550,000 ..... 2005 6.1 If the appropriation for either year is insufficient, the 6.2 appropriation for the other year is available. 6.3 Sec. 15. Laws 2003, First Special Session chapter 9, 6.4 article 3, section 20, subdivision 5, is amended to read: 6.5 Subd. 5. [TRAVEL FOR HOME-BASED SERVICES.] For aid for 6.6 teacher travel for home-based services under Minnesota Statutes, 6.7 section 125A.75, subdivision 1: 6.8$220,000$173,000 ..... 2004 6.9$261,000$178,000 ..... 2005 6.10 The 2004 appropriation includes $34,000 for 2003 and 6.11$186,000$139,000 for 2004. 6.12 The 2005 appropriation includes$46,000$34,000 for 2004 6.13 and$215,000$144,000 for 2005. 6.14 Sec. 16. Laws 2003, First Special Session chapter 9, 6.15 article 3, section 20, subdivision 6, is amended to read: 6.16 Subd. 6. [SPECIAL EDUCATION; EXCESS COSTS.] For excess 6.17 cost aid under Minnesota Statutes, section 125A.79, subdivision 6.18 7: 6.19$92,606,000$92,605,000 ..... 2004 6.20$92,984,000$92,799,000 ..... 2005 6.21 The 2004 appropriation includes $41,754,000 for 2003 and 6.22$50,852,000$50,851,000 for 2004. 6.23 The 2005 appropriation includes$41,215,000$41,216,000 for 6.24 2004 and$51,769,000$51,583,000 for 2005. 6.25 Sec. 17. Laws 2003, First Special Session chapter 9, 6.26 article 3, section 20, subdivision 7, is amended to read: 6.27 Subd. 7. [LITIGATION COSTS FOR SPECIAL EDUCATION.] For 6.28 paying the costs a district incurs under Minnesota Statutes, 6.29 section 125A.75, subdivision 8: 6.30$346,000$201,000 ..... 2004 6.31$ 17,000$150,000 ..... 2005 6.32 Sec. 18. Laws 2003, First Special Session chapter 9, 6.33 article 3, section 20, subdivision 8, is amended to read: 6.34 Subd. 8. [TRANSITION FOR DISABLED STUDENTS.] For aid for 6.35 transition programs for children with disabilities under 6.36 Minnesota Statutes, section 124D.454: 7.1$8,625,000$8,570,000 ..... 2004 7.2$8,867,000$8,760,000 ..... 2005 7.3 The 2004 appropriation includes $1,516,000 for 2003 and 7.4$7,109,000$7,054,000 for 2004. 7.5 The 2005 appropriation includes$1,777,000$1,763,000 for 7.6 2004 and$7,090,000$6,997,000 for 2005. 7.7 Sec. 19. Laws 2003, First Special Session chapter 9, 7.8 article 3, section 20, subdivision 9, is amended to read: 7.9 Subd. 9. [COURT-PLACED SPECIAL EDUCATION REVENUE.] For 7.10 reimbursing serving school districts for unreimbursed eligible 7.11 expenditures attributable to children placed in the serving 7.12 school district by court action under Minnesota Statutes, 7.13 section 125A.79, subdivision 4: 7.14$152,000$36,000 ..... 2004 7.15$160,000$61,000 ..... 2005 7.16 D. FACILITIES AND TECHNOLOGY 7.17 Sec. 20. Minnesota Statutes 2003 Supplement, section 7.18 123B.54, is amended to read: 7.19 123B.54 [DEBT SERVICE APPROPRIATION.] 7.20 (a)$25,987,000$28,367,000 in fiscal year2002,7.21$29,941,0002006 and $25,560,000 in fiscal year2003,7.22$40,075,000 in fiscal year 2004, and $39,774,000 in fiscal years7.2320052007 and later are appropriated from the general fund to 7.24 the commissioner of education for payment of debt service 7.25 equalization aid under section 123B.53. 7.26 (b) The appropriations in paragraph (a) must be reduced by 7.27 the amount of any money specifically appropriated for the same 7.28 purpose in any year from any state fund. 7.29 Sec. 21. Laws 2003, First Special Session chapter 9, 7.30 article 4, section 31, subdivision 2, is amended to read: 7.31 Subd. 2. [HEALTH AND SAFETY REVENUE.] For health and 7.32 safety aid according to Minnesota Statutes, section 123B.57, 7.33 subdivision 5: 7.34$7,839,000$5,356,000 ..... 2004 7.35$6,068,000$1,920,000 ..... 2005 7.36 The 2004 appropriation includes $1,516,000 for 2003 and 8.1$6,323,000$3,840,000 for 2004. 8.2 The 2005 appropriation includes$1,580,000$960,000 for 8.3 2004 and$4,488,000$960,000 for 2005. 8.4 Sec. 22. Laws 2003, First Special Session chapter 9, 8.5 article 4, section 31, subdivision 3, is amended to read: 8.6 Subd. 3. [DEBT SERVICE EQUALIZATION.] For debt service aid 8.7 according to Minnesota Statutes, section 123B.53, subdivision 6: 8.8$34,500,000$35,598,000 ..... 2004 8.9$37,575,000$31,220,000 ..... 2005 8.10 The 2004 appropriation includes $5,586,000 for 2003 and 8.11$28,914,000$30,012,000 for 2004. 8.12 The 2005 appropriation includes$7,228,000$7,503,000 for 8.13 2004 and$30,347,000$23,717,000 for 2005. 8.14 E. NUTRITION, SCHOOL ACCOUNTING, OTHER PROGRAMS 8.15 Sec. 23. Laws 2003, First Special Session chapter 9, 8.16 article 5, section 35, subdivision 2, is amended to read: 8.17 Subd. 2. [SCHOOL LUNCH.](a)For school lunch aid 8.18 according to Minnesota Statutes, section 124D.111, and Code of 8.19 Federal Regulations, title 7, section 210.17: 8.20$7,800,000$7,650,000 ..... 2004 8.21$7,950,000$7,760,000 ..... 2005 8.22 Sec. 24. Laws 2003, First Special Session chapter 9, 8.23 article 5, section 35, subdivision 3, is amended to read: 8.24 Subd. 3. [TRADITIONAL SCHOOL BREAKFAST; KINDERGARTEN 8.25 MILK.] For traditional school breakfast aid and kindergarten 8.26 milk under Minnesota Statutes, sections 124D.1158 and 124D.118: 8.27$3,088,000$4,382,000 ..... 2004 8.28$3,217,000$4,460,000 ..... 2005 8.29 F. LIBRARIES 8.30 Sec. 25. Laws 2003, First Special Session chapter 9, 8.31 article 6, section 4, is amended to read: 8.32 Sec. 4. [APPROPRIATIONS.] 8.33 Subdivision 1. [DEPARTMENT OF EDUCATION.] The sums 8.34 indicated in this section are appropriated from the general fund 8.35 to the department of education for the fiscal years designated. 8.36 Subd. 2. [BASIC SYSTEM SUPPORT.] For basic system support 9.1 grants under Minnesota Statutes, section 134.355: 9.2$8,072,000$8,312,000 ..... 2004 9.3 $8,570,000 ..... 2005 9.4 The 2004 appropriation includes $1,456,000 for 2003 and 9.5$6,616,000$6,856,000 for 2004. 9.6 The 2005 appropriation includes$1,654,000$1,714,000 for 9.7 2004 and$6,916,000$6,856,000 for 2005. 9.8 Subd. 3. [REGIONAL LIBRARY TELECOMMUNICATIONS AID.] For 9.9 regional library telecommunications aid under Minnesota 9.10 Statutes, section 134.355: 9.11$1,200,000$960,000 ..... 2004 9.12 $1,200,000 ..... 2005 9.13 The 2004 appropriation includes $960,000 for 2004. 9.14 The 2005 appropriation includes $240,000 for 2004 and 9.15 $960,000 for 2005. 9.16 Subd. 4. [MULTICOUNTY, MULTITYPE LIBRARY SYSTEMS.] For 9.17 grants according to Minnesota Statutes, sections 134.353 and 9.18 134.354, to multicounty, multitype library systems: 9.19 $876,000 ..... 2004 9.20 $903,000 ..... 2005 9.21 The 2004 appropriation includes $153,000 for 2003 and 9.22 $723,000 for 2004. 9.23 The 2005 appropriation includes $180,000 for 2004 and 9.24 $723,000 for 2005. 9.25 Subd. 5. [ELECTRONIC LIBRARY FOR MINNESOTA.] For statewide 9.26 licenses to on-line databases selected in cooperation with the 9.27 higher education services office for school media centers, 9.28 public libraries, state government agency libraries, and public 9.29 or private college or university libraries: 9.30 $400,000 ..... 2004 9.31 $400,000 ..... 2005 9.32 Any balance in the first year does not cancel but is 9.33 available in the second year. 9.34 G. EARLY CHILDHOOD FAMILY SUPPORT 9.35 Sec. 26. Laws 2003, First Special Session chapter 9, 9.36 article 7, section 11, subdivision 3, is amended to read: 10.1 Subd. 3. [EARLY CHILDHOOD FAMILY EDUCATION AID.] For early 10.2 childhood family education aid under Minnesota Statutes, section 10.3 124D.135: 10.4$19,675,000$19,079,000 ..... 2004 10.5$15,129,000$14,407,000 ..... 2005 10.6 The 2004 appropriation includes $3,239,000 for 2003 and 10.7$16,436,000$15,840,000 for 2004. 10.8 The 2005 appropriation includes$4,109,000$3,959,000 for 10.9 2004 and$11,020,000$10,448,000 for 2005. 10.10 H. PREVENTION 10.11 Sec. 27. Laws 2003, First Special Session chapter 9, 10.12 article 8, section 7, subdivision 2, is amended to read: 10.13 Subd. 2. [COMMUNITY EDUCATION AID.] For community 10.14 education aid under Minnesota Statutes, section 124D.20: 10.15$5,495,000$5,351,000 ..... 2004 10.16$3,406,000$3,137,000 ..... 2005 10.17 The 2004 appropriation includes $956,000 for 2003 and 10.18$4,539,000$4,395,000 for 2004. 10.19 The 2005 appropriation includes$1,134,000$1,098,000 for 10.20 2004 and$2,272,000$2,039,000 for 2005. 10.21 Sec. 28. Laws 2003, First Special Session chapter 9, 10.22 article 8, section 7, subdivision 5, is amended to read: 10.23 Subd. 5. [SCHOOL-AGE CARE REVENUE.] For extended day care 10.24 aid under Minnesota Statutes, section 124D.22: 10.25$41,000$40,000 ..... 2004 10.26$22,000$24,000 ..... 2005 10.27 The 2004 appropriation includes $14,000 for 2003 and 10.28$27,000$26,000 for 2004. 10.29 The 2005 appropriation includes $6,000 for 2004 and$16,00010.30 $18,000 for 2005. 10.31 I. SELF-SUFFICIENCY AND LIFELONG LEARNING 10.32 Sec. 29. Laws 2003, First Special Session chapter 9, 10.33 article 9, section 9, subdivision 2, is amended to read: 10.34 Subd. 2. [ADULT BASIC EDUCATION AID.] For adult basic 10.35 education aid under Minnesota Statutes, section 124D.52, in 10.36 fiscal year 2004 and Minnesota Statutes, section 124D.531, in 11.1 fiscal year 2005: 11.2$33,153,000$33,014,000 ..... 2004 11.3$35,823,000$35,808,000 ..... 2005 11.4 The 2004 appropriation includes$5,905,000$5,827,000 for 11.5 2003 and$27,248,000$27,187,000 for 2004. 11.6 The 2005 appropriation includes$6,811,000$6,796,000 for 11.7 2004 and $29,012,000 for 2005. 11.8 Sec. 30. [EFFECTIVE DATE.] 11.9 Sections 1 to 29 are effective the day following final 11.10 enactment. 11.11 ARTICLE 2 11.12 A. HEALTH AND HUMAN SERVICES FORECAST ADJUSTMENTS 11.13 Section 1. Laws 2003, First Special Session chapter 14, 11.14 article 13C, section 1, is amended to read: 11.15 Section 1. [HEALTH AND HUMAN SERVICESAPPROPRIATIONSFORECAST 11.16 ADJUSTMENTS.] 11.17 The sums shown in the columns marked "APPROPRIATIONS" are 11.18 appropriated from the general fund, or any other fund named, to 11.19 the agencies and for the purposes specified in the sections of 11.20 this article, to be available for the fiscal years indicated for 11.21 each purpose. The figures "2004" and "2005" where used in this 11.22 article, mean that the appropriation or appropriations listed 11.23 under them are available for the fiscal year ending June 30, 11.24 2004, or June 30, 2005, respectively. Where a dollar amount 11.25 appears in parentheses, it means a reduction of an appropriation. 11.26 SUMMARY BY FUND 11.27 BIENNIAL 11.28 2004 2005 TOTAL 11.29 General$3,765,212,000$3,727,319,000$7,492,531,00011.30 $3,500,860,000 $3,746,520,000 $7,247,380,000 11.31 State Government 11.32 Special Revenue 45,337,000 45,104,000 90,441,000 11.33 Health Care 11.34 Access294,090,000308,525,000602,615,00011.35 280,060,000 308,609,000 588,669,000 11.36 Federal TANF261,552,000270,364,000531,916,00011.37 276,425,000 276,363,000 552,788,000 11.38 Lottery Prize 12.1 Fund 1,556,000 1,556,000 3,112,000 12.2 Special Revenue 3,340,000 3,340,000 6,680,000 12.3 TOTAL$4,371,087,000$4,356,208,000$8,727,295,00012.4 $4,107,578,000 $4,381,492,000 $8,489,070,000 12.5 APPROPRIATIONS 12.6 Available for the Year 12.7 Ending June 30 12.8 2004 2005 12.9 Sec. 2. Laws 2003, First Special Session chapter 14, 12.10 article 13C, section 2, subdivision 1, is amended to read: 12.11 Subdivision 1. Total 12.12 Appropriation$4,111,558,000$4,110,496,00012.13 $3,848,049,000 $4,135,780,000 12.14 Summary by Fund 12.15 General3,566,163,0003,541,854,00012.16 3,301,811,000 3,561,055,000 12.17 State Government 12.18 Special Revenue 534,000 534,000 12.19 Health Care 12.20 Access287,753,000302,188,00012.21 273,723,000 302,272,000 12.22 Federal TANF255,552,000264,364,00012.23 270,425,000 270,363,000 12.24 Lottery Cash 12.25 Flow 1,556,000 1,556,000 12.26 [FEDERAL CONTINGENCY APPROPRIATION.] 12.27 (a)Any additionalFederal Medicaid 12.28 funds made available under title IV of 12.29 the federal Jobs and Growth Tax Relief 12.30 Reconciliation Act of 2003 are 12.31 appropriated to the commissioner of 12.32 human services for use in the state's 12.33 medical assistance and MinnesotaCare 12.34 programs. The commissioners of human 12.35 services and finance shall report to 12.36 the legislative advisory committee on 12.37 the additional federal Medicaid 12.38 matching funds that will be available 12.39 to the state. 12.40 (b)Contingent uponBecause of the 12.41 availability of these funds, the 12.42 following policies shall become 12.43 effectiveand necessary funds are12.44appropriated for those purposes: 12.45 (1) medical assistance and 12.46 MinnesotaCare eligibility and local 12.47 financial participation changes 12.48 provided for in this act may be 12.49 implemented prior to September 2, 2003, 12.50 or may be delayed as necessary to 12.51 maximize the use of federal funds 13.1 received under title IV of the Jobs and 13.2 Growth Tax Relief Reconciliation Act of 13.3 2003; 13.4 (2) the aggregate cap on the services 13.5 identified in Minnesota Statutes, 13.6 section 256L.035, paragraph (a), clause 13.7 (3), shall be increased from $2,000 to 13.8 $5,000. This increase shall expire at 13.9 the end of fiscal year 2007. Funds may 13.10 be transferred from the general fund to 13.11 the health care access fund as 13.12 necessary to implement this provision; 13.13 and 13.14 (3) the following payment shifts shall 13.15 not be implemented: 13.16 (i) MFIP payment shift found in 13.17 subdivision 11; 13.18 (ii) the county payment shift found in 13.19 subdivision 1; and 13.20 (iii) the delay in medical assistance 13.21 and general assistance medical care 13.22 fee-for-service payments found in 13.23 subdivision 6. 13.24 (c) Notwithstanding section 14, 13.25 paragraphs (a) and (b) shall expire 13.26 June 30, 2007. 13.27 [RECEIPTS FOR SYSTEMS PROJECTS.] 13.28 Appropriations and federal receipts for 13.29 information system projects for MAXIS, 13.30 PRISM, MMIS, and SSIS must be deposited 13.31 in the state system account authorized 13.32 in Minnesota Statutes, section 13.33 256.014. Money appropriated for 13.34 computer projects approved by the 13.35 Minnesota office of technology, funded 13.36 by the legislature, and approved by the 13.37 commissioner of finance may be 13.38 transferred from one project to another 13.39 and from development to operations as 13.40 the commissioner of human services 13.41 considers necessary. Any unexpended 13.42 balance in the appropriation for these 13.43 projects does not cancel but is 13.44 available for ongoing development and 13.45 operations. 13.46 [GIFTS.] Notwithstanding Minnesota 13.47 Statutes, chapter 7, the commissioner 13.48 may accept on behalf of the state 13.49 additional funding from sources other 13.50 than state funds for the purpose of 13.51 financing the cost of assistance 13.52 program grants or nongrant 13.53 administration. All additional funding 13.54 is appropriated to the commissioner for 13.55 use as designated by the grantor of 13.56 funding. 13.57 [SYSTEMS CONTINUITY.] In the event of 13.58 disruption of technical systems or 13.59 computer operations, the commissioner 13.60 may use available grant appropriations 13.61 to ensure continuity of payments for 13.62 maintaining the health, safety, and 14.1 well-being of clients served by 14.2 programs administered by the department 14.3 of human services. Grant funds must be 14.4 used in a manner consistent with the 14.5 original intent of the appropriation. 14.6 [NONFEDERAL SHARE TRANSFERS.] The 14.7 nonfederal share of activities for 14.8 which federal administrative 14.9 reimbursement is appropriated to the 14.10 commissioner may be transferred to the 14.11 special revenue fund. 14.12 [TANF FUNDS APPROPRIATED TO OTHER 14.13 ENTITIES.] Any expenditures from the 14.14 TANF block grant shall be expended in 14.15 accordance with the requirements and 14.16 limitations of part A of title IV of 14.17 the Social Security Act, as amended, 14.18 and any other applicable federal 14.19 requirement or limitation. Prior to 14.20 any expenditure of these funds, the 14.21 commissioner shall assure that funds 14.22 are expended in compliance with the 14.23 requirements and limitations of federal 14.24 law and that any reporting requirements 14.25 of federal law are met. It shall be 14.26 the responsibility of any entity to 14.27 which these funds are appropriated to 14.28 implement a memorandum of understanding 14.29 with the commissioner that provides the 14.30 necessary assurance of compliance prior 14.31 to any expenditure of funds. The 14.32 commissioner shall receipt TANF funds 14.33 appropriated to other state agencies 14.34 and coordinate all related interagency 14.35 accounting transactions necessary to 14.36 implement these appropriations. 14.37 Unexpended TANF funds appropriated to 14.38 any state, local, or nonprofit entity 14.39 cancel at the end of the state fiscal 14.40 year unless appropriating language 14.41 permits otherwise. 14.42 [TANF FUNDS TRANSFERRED TO OTHER 14.43 FEDERAL GRANTS.] The commissioner must 14.44 authorize transfers from TANF to other 14.45 federal block grants so that funds are 14.46 available to meet the annual 14.47 expenditure needs as appropriated. 14.48 Transfers may be authorized prior to 14.49 the expenditure year with the agreement 14.50 of the receiving entity. Transferred 14.51 funds must be expended in the year for 14.52 which the funds were appropriated 14.53 unless appropriation language permits 14.54 otherwise. In accelerating transfer 14.55 authorizations, the commissioner must 14.56 aim to preserve the future potential 14.57 transfer capacity from TANF to other 14.58 block grants. 14.59 [TANF MAINTENANCE OF EFFORT.] (a) In 14.60 order to meet the basic maintenance of 14.61 effort (MOE) requirements of the TANF 14.62 block grant specified under Code of 14.63 Federal Regulations, title 45, section 14.64 263.1, the commissioner may only report 14.65 nonfederal money expended for allowable 14.66 activities listed in the following 14.67 clauses as TANF/MOE expenditures: 15.1 (1) MFIP cash, diversionary work 15.2 program, and food assistance benefits 15.3 under Minnesota Statutes, chapter 256J; 15.4 (2) the child care assistance programs 15.5 under Minnesota Statutes, sections 15.6 119B.03 and 119B.05, and county child 15.7 care administrative costs under 15.8 Minnesota Statutes, section 119B.15; 15.9 (3) state and county MFIP 15.10 administrative costs under Minnesota 15.11 Statutes, chapters 256J and 256K; 15.12 (4) state, county, and tribal MFIP 15.13 employment services under Minnesota 15.14 Statutes, chapters 256J and 256K; 15.15 (5) expenditures made on behalf of 15.16 noncitizen MFIP recipients who qualify 15.17 for the medical assistance without 15.18 federal financial participation program 15.19 under Minnesota Statutes, section 15.20 256B.06, subdivision 4, paragraphs (d), 15.21 (e), and (j); and 15.22 (6) qualifying working family credit 15.23 expenditures under Minnesota Statutes, 15.24 section 290.0671. 15.25 (b) The commissioner shall ensure that 15.26 sufficient qualified nonfederal 15.27 expenditures are made each year to meet 15.28 the state's TANF/MOE requirements. For 15.29 the activities listed in paragraph (a), 15.30 clauses (2) to (6), the commissioner 15.31 may only report expenditures that are 15.32 excluded from the definition of 15.33 assistance under Code of Federal 15.34 Regulations, title 45, section 260.31. 15.35 (c) By August 31 of each year, the 15.36 commissioner shall make a preliminary 15.37 calculation to determine the likelihood 15.38 that the state will meet its annual 15.39 federal work participation requirement 15.40 under Code of Federal Regulations, 15.41 title 45, sections 261.21 and 261.23, 15.42 after adjustment for any caseload 15.43 reduction credit under Code of Federal 15.44 Regulations, title 45, section 261.41. 15.45 If the commissioner determines that the 15.46 state will meet its federal work 15.47 participation rate for the federal 15.48 fiscal year ending that September, the 15.49 commissioner may reduce the expenditure 15.50 under paragraph (a), clause (1), to the 15.51 extent allowed under Code of Federal 15.52 Regulations, title 45, section 15.53 263.1(a)(2). 15.54 (d) For fiscal years beginning with 15.55 state fiscal year 2003, the 15.56 commissioner shall assure that the 15.57 maintenance of effort used by the 15.58 commissioner of finance for the 15.59 February and November forecasts 15.60 required under Minnesota Statutes, 15.61 section 16A.103, contains expenditures 15.62 under paragraph (a), clause (1), equal 15.63 to at least 25 percent of the total 16.1 required under Code of Federal 16.2 Regulations, title 45, section 263.1. 16.3 (e) If nonfederal expenditures for the 16.4 programs and purposes listed in 16.5 paragraph (a) are insufficient to meet 16.6 the state's TANF/MOE requirements, the 16.7 commissioner shall recommend additional 16.8 allowable sources of nonfederal 16.9 expenditures to the legislature, if the 16.10 legislature is or will be in session to 16.11 take action to specify additional 16.12 sources of nonfederal expenditures for 16.13 TANF/MOE before a federal penalty is 16.14 imposed. The commissioner shall 16.15 otherwise provide notice to the 16.16 legislative commission on planning and 16.17 fiscal policy under paragraph (g). 16.18 (f) If the commissioner uses authority 16.19 granted under section 11, or similar 16.20 authority granted by a subsequent 16.21 legislature, to meet the state's 16.22 TANF/MOE requirement in a reporting 16.23 period, the commissioner shall inform 16.24 the chairs of the appropriate 16.25 legislative committees about all 16.26 transfers made under that authority for 16.27 this purpose. 16.28 (g) If the commissioner determines that 16.29 nonfederal expenditures under paragraph 16.30 (a) are insufficient to meet TANF/MOE 16.31 expenditure requirements, and if the 16.32 legislature is not or will not be in 16.33 session to take timely action to avoid 16.34 a federal penalty, the commissioner may 16.35 report nonfederal expenditures from 16.36 other allowable sources as TANF/MOE 16.37 expenditures after the requirements of 16.38 this paragraph are met. The 16.39 commissioner may report nonfederal 16.40 expenditures in addition to those 16.41 specified under paragraph (a) as 16.42 nonfederal TANF/MOE expenditures, but 16.43 only ten days after the commissioner of 16.44 finance has first submitted the 16.45 commissioner's recommendations for 16.46 additional allowable sources of 16.47 nonfederal TANF/MOE expenditures to the 16.48 members of the legislative commission 16.49 on planning and fiscal policy for their 16.50 review. 16.51 (h) The commissioner of finance shall 16.52 not incorporate any changes in federal 16.53 TANF expenditures or nonfederal 16.54 expenditures for TANF/MOE that may 16.55 result from reporting additional 16.56 allowable sources of nonfederal 16.57 TANF/MOE expenditures under the interim 16.58 procedures in paragraph (g) into the 16.59 February or November forecasts required 16.60 under Minnesota Statutes, section 16.61 16A.103, unless the commissioner of 16.62 finance has approved the additional 16.63 sources of expenditures under paragraph 16.64 (g). 16.65 (i) Minnesota Statutes, section 16.66 256.011, subdivision 3, which requires 17.1 that federal grants or aids secured or 17.2 obtained under that subdivision be used 17.3 to reduce any direct appropriations 17.4 provided by law, do not apply if the 17.5 grants or aids are federal TANF funds. 17.6 (j) Notwithstanding section 14, 17.7 paragraph (a), clauses (1) to (6), and 17.8 paragraphs (b) to (j) expire June 30, 17.9 2007. 17.10 [WORKING FAMILY CREDIT EXPENDITURES AS 17.11 TANF MOE.] The commissioner may claim 17.12 as TANF maintenance of effort up to the 17.13 following amounts of working family 17.14 credit expenditures for the following 17.15 fiscal years: 17.16 (1) fiscal year 2004, $7,013,000; 17.17 (2) fiscal year 2005, $25,133,000; 17.18 (3) fiscal year 2006, $6,942,000; and 17.19 (4) fiscal year 2007, $6,707,000. 17.20 [FISCAL YEAR 2003 APPROPRIATIONS 17.21 CARRYFORWARD.] Effective the day 17.22 following final enactment, 17.23 notwithstanding Minnesota Statutes, 17.24 section 16A.28, or any other law to the 17.25 contrary, state agencies and 17.26 constitutional offices may carry 17.27 forward unexpended and unencumbered 17.28 nongrant operating balances from fiscal 17.29 year 2003 general fund appropriations 17.30 into fiscal year 2004 to offset general 17.31 budget reductions. 17.32 [TRANSFER OF GRANT BALANCES.] Effective 17.33 the day following final enactment, the 17.34 commissioner of human services, with 17.35 the approval of the commissioner of 17.36 finance and after notification of the 17.37 chair of the senate health, human 17.38 services and corrections budget 17.39 division and the chair of the house of 17.40 representatives health and human 17.41 services finance committee, may 17.42 transfer unencumbered appropriation 17.43 balances for the biennium ending June 17.44 30, 2003, in fiscal year 2003 among the 17.45 MFIP, MFIP child care assistance under 17.46 Minnesota Statutes, section 119B.05, 17.47 general assistance, general assistance 17.48 medical care, medical assistance, 17.49 Minnesota supplemental aid, and group 17.50 residential housing programs, and the 17.51 entitlement portion of the chemical 17.52 dependency consolidated treatment fund, 17.53 and between fiscal years of the 17.54 biennium. 17.55 [TANF APPROPRIATION CANCELLATION.] 17.56 Notwithstanding the provisions of Laws 17.57 2000, chapter 488, article 1, section 17.58 16, any prior appropriations of TANF 17.59 funds to the department of trade and 17.60 economic development or to the job 17.61 skills partnership board or any 17.62 transfers of TANF funds from another 18.1 agency to the department of trade and 18.2 economic development or to the job 18.3 skills partnership board are not 18.4 available until expended, and if 18.5 unobligated as of June 30, 2003, these 18.6 appropriations or transfers shall 18.7 cancel to the TANF fund. 18.8 [SHIFT COUNTY PAYMENT.] The 18.9 commissioner shall make up to 100 18.10 percent of the calendar year 2005 18.11 payments to counties for developmental 18.12 disabilities semi-independent living 18.13 services grants, developmental 18.14 disabilities family support grants, and 18.15 adult mental health grants from fiscal 18.16 year 2006 appropriations. This is a 18.17 onetime payment shift. Calendar year 18.18 2006 and future payments for these 18.19 grants are not affected by this shift. 18.20 This provision expires June 30, 2006. 18.21 [CAPITATION RATE INCREASE.] Of the 18.22 health care access fund appropriations 18.23 to the University of Minnesota in the 18.24 higher education omnibus appropriation 18.25 bill, $2,157,000 in fiscal year 2004 18.26 and $2,157,000 in fiscal year 2005 are 18.27 to be used to increase the capitation 18.28 payments under Minnesota Statutes, 18.29 section 256B.69. Notwithstanding the 18.30 provisions of section 14, this 18.31 provision shall not expire. 18.32 Sec. 3. Laws 2003, First Special Session chapter 14, 18.33 article 13C, section 2, subdivision 3, is amended to read: 18.34 Subd. 3. Revenue and Pass-Through 18.35 Federal TANF55,855,00053,315,00018.36 56,643,000 57,275,000 18.37 [TANF TRANSFER TO SOCIAL SERVICES BLOCK 18.38 GRANT.] $3,137,000 in fiscal year 2005 18.39 is appropriated to the commissioner for 18.40 the purposes of providing services for 18.41 families with children whose incomes 18.42 are at or below 200 percent of the 18.43 federal poverty guidelines. The 18.44 commissioner shall authorize a 18.45 sufficient transfer of funds from the 18.46 state's federal TANF block grant to the 18.47 state's federal social services block 18.48 grant to meet this appropriation. The 18.49 funds shall be distributed to counties 18.50 for the children and community services 18.51 grant according to the formula for the 18.52 state appropriations in Minnesota 18.53 Statutes, chapter 256M. 18.54 [TANF FUNDS FOR FISCAL YEAR 2006 AND 18.55 FISCAL YEAR 2007 REFINANCING.] 18.56$12,692,000$6,692,000 in fiscal year 18.57 2006 and$9,192,000$3,192,000 in 18.58 fiscal year 2007 in TANF funds are 18.59 available to the commissioner to 18.60 replace general funds in the amount 18.61 of$12,692,000$6,692,000 in fiscal 18.62 year 2006 and$9,192,000$3,192,000 in 19.1 fiscal year 2007 in expenditures that 19.2 may be counted toward TANF maintenance 19.3 of effort requirements or as an 19.4 allowable TANF expenditure. 19.5 [ADJUSTMENTS IN TANF TRANSFER TO CHILD 19.6 CARE AND DEVELOPMENT FUND.] Transfers 19.7 of TANF to the child care development 19.8 fund for the purposes of MFIP child 19.9 care assistance shall be reduced by 19.10 $116,000 in fiscal year 2004 and shall 19.11 be increased by $1,976,000 in fiscal 19.12 year 2005. 19.13 Sec. 4. Laws 2003, First Special Session chapter 14, 19.14 article 13C, section 2, subdivision 6, is amended to read: 19.15 Subd. 6. Basic Health Care Grants 19.16 Summary by Fund 19.17 General1,499,941,0001,533,016,00019.18 1,290,454,000 1,475,996,000 19.19 Health Care Access268,151,000282,605,00019.20 254,121,000 282,689,000 19.21 [UPDATING FEDERAL POVERTY GUIDELINES.] 19.22 Annual updates to the federal poverty 19.23 guidelines are effective each July 1, 19.24 following publication by the United 19.25 States Department of Health and Human 19.26 Services for health care programs under 19.27 Minnesota Statutes, chapters 256, 256B, 19.28 256D, and 256L. 19.29 The amounts that may be spent from this 19.30 appropriation for each purpose are as 19.31 follows: 19.32 (a) MinnesotaCare Grants 19.33 Health Care Access267,401,000281,855,00019.34 253,371,000 281,939,000 19.35 [MINNESOTACARE FEDERAL RECEIPTS.] 19.36 Receipts received as a result of 19.37 federal participation pertaining to 19.38 administrative costs of the Minnesota 19.39 health care reform waiver shall be 19.40 deposited as nondedicated revenue in 19.41 the health care access fund. Receipts 19.42 received as a result of federal 19.43 participation pertaining to grants 19.44 shall be deposited in the federal fund 19.45 and shall offset health care access 19.46 funds for payments to providers. 19.47 [MINNESOTACARE FUNDING.] The 19.48 commissioner may expend money 19.49 appropriated from the health care 19.50 access fund for MinnesotaCare in either 19.51 fiscal year of the biennium. 19.52 (b) MA Basic Health Care Grants - 19.53 Families and Children 20.1 General568,254,000582,161,00020.2 427,769,000 489,545,000 20.3 [SERVICES TO PREGNANT WOMEN.] The 20.4 commissioner shall use available 20.5 federal money for the State-Children's 20.6 Health Insurance Program for medical 20.7 assistance services provided to 20.8 pregnant women who are not otherwise 20.9 eligible for federal financial 20.10 participation beginning in fiscal year 20.11 2003. This federal money shall be 20.12 deposited in the federal fund and shall 20.13 offset general funds for payments to 20.14 providers. Notwithstanding section 14, 20.15 this paragraph shall not expire. 20.16 [MANAGED CARE RATE INCREASE.] (a) 20.17 Effective January 1, 2004, the 20.18 commissioner of human services shall 20.19 increase the total payments to managed 20.20 care plans under Minnesota Statutes, 20.21 section 256B.69, by an amount equal to 20.22 the cost increases to the managed care 20.23 plans from by the elimination of: (1) 20.24 the exemption from the taxes imposed 20.25 under Minnesota Statutes, section 20.26 297I.05, subdivision 5, for premiums 20.27 paid by the state for medical 20.28 assistance, general assistance medical 20.29 care, and the MinnesotaCare program; 20.30 and (2) the exemption of gross revenues 20.31 subject to the taxes imposed under 20.32 Minnesota Statutes, sections 295.50 to 20.33 295.57, for payments paid by the state 20.34 for services provided under medical 20.35 assistance, general assistance medical 20.36 care, and the MinnesotaCare program. 20.37 Any increase based on clause (2) must 20.38 be reflected in provider rates paid by 20.39 the managed care plan unless the 20.40 managed care plan is a staff model 20.41 health plan company. 20.42 (b) The commissioner of human services 20.43 shall increase by two percent the 20.44 fee-for-service payments under medical 20.45 assistance, general assistance medical 20.46 care, and the MinnesotaCare program for 20.47 services subject to the hospital, 20.48 surgical center, or health care 20.49 provider taxes under Minnesota 20.50 Statutes, sections 295.50 to 295.57, 20.51 effective for services rendered on or 20.52 after January 1, 2004. 20.53 (c) The commissioner of finance shall 20.54 transfer from the health care access 20.55 fund to the general fund the following 20.56 amounts in the fiscal years indicated: 20.57 2004, $16,587,000; 2005, $46,322,000; 20.58 2006, $49,413,000; and 2007, 20.59 $52,659,000. 20.60 (d) For fiscal years after 2007, the 20.61 commissioner of finance shall transfer 20.62 from the health care access fund to the 20.63 general fund an amount equal to the 20.64 revenue collected by the commissioner 20.65 of revenue on the following: 21.1 (1) gross revenues received by 21.2 hospitals, surgical centers, and health 21.3 care providers as payments for services 21.4 provided under medical assistance, 21.5 general assistance medical care, and 21.6 the MinnesotaCare program, including 21.7 payments received directly from the 21.8 state or from a prepaid plan, under 21.9 Minnesota Statutes, sections 295.50 to 21.10 295.57; and 21.11 (2) premiums paid by the state under 21.12 medical assistance, general assistance 21.13 medical care, and the MinnesotaCare 21.14 program under Minnesota Statutes, 21.15 section 297I.05, subdivision 5. 21.16 The commissioner of finance shall 21.17 monitor and adjust if necessary the 21.18 amount transferred each fiscal year 21.19 from the health care access fund to the 21.20 general fund to ensure that the amount 21.21 transferred equals the tax revenue 21.22 collected for the items described in 21.23 clauses (1) and (2) for that fiscal 21.24 year. 21.25 (e) Notwithstanding section 14, these 21.26 provisions shall not expire. 21.27 (c) MA Basic Health Care Grants - Elderly 21.28 and Disabled 21.29 General695,421,000741,605,00021.30 610,518,000 743,858,000 21.31 [DELAY MEDICAL ASSISTANCE 21.32 FEE-FOR-SERVICE - ACUTE CARE.] The 21.33 following payments in fiscal year 2005 21.34 from the Medicaid Management 21.35 Information System that would otherwise 21.36 have been made to providers for medical 21.37 assistance and general assistance 21.38 medical care services shall be delayed 21.39 and included in the first payment in 21.40 fiscal year 2006: 21.41 (1) for hospitals, the last two 21.42 payments; and 21.43 (2) for nonhospital providers, the last 21.44 payment. 21.45 This payment delay shall not include 21.46 payments to skilled nursing facilities, 21.47 intermediate care facilities for mental 21.48 retardation, prepaid health plans, home 21.49 health agencies, personal care nursing 21.50 providers, and providers of only waiver 21.51 services. The provisions of Minnesota 21.52 Statutes, section 16A.124, shall not 21.53 apply to these delayed payments. 21.54 Notwithstanding section 14, this 21.55 provision shall not expire. 21.56 [DEAF AND HARD-OF-HEARING SERVICES.] 21.57 If, after making reasonable efforts, 21.58 the service provider for mental health 21.59 services to persons who are deaf or 21.60 hearing impaired is not able to earn 22.1 $227,000 through participation in 22.2 medical assistance intensive 22.3 rehabilitation services in fiscal year 22.4 2005, the commissioner shall transfer 22.5 $227,000 minus medical assistance 22.6 earnings achieved by the grantee to 22.7 deaf and hard-of-hearing grants to 22.8 enable the provider to continue 22.9 providing services to eligible persons. 22.10 (d) General Assistance Medical Care 22.11 Grants 22.12 General223,960,000196,617,00022.13 239,861,000 229,960,000 22.14 (e) Health Care Grants - Other 22.15 Assistance 22.16 General 3,067,000 3,407,000 22.17 Health Care Access 750,000 750,000 22.18 [MINNESOTA PRESCRIPTION DRUG DEDICATED 22.19 FUND.] Of the general fund 22.20 appropriation, $284,000 in fiscal year 22.21 2005 is appropriated to the 22.22 commissioner for the prescription drug 22.23 dedicated fund established under the 22.24 prescription drug discount program. 22.25 [DENTAL ACCESS GRANTS CARRYOVER 22.26 AUTHORITY.] Any unspent portion of the 22.27 appropriation from the health care 22.28 access fund in fiscal years 2002 and 22.29 2003 for dental access grants under 22.30 Minnesota Statutes, section 256B.53, 22.31 shall not cancel but shall be allowed 22.32 to carry forward to be spent in the 22.33 biennium beginning July 1, 2003, for 22.34 these purposes. 22.35 [STOP-LOSS FUND ACCOUNT.] The 22.36 appropriation to the purchasing 22.37 alliance stop-loss fund account 22.38 established under Minnesota Statutes, 22.39 section 256.956, subdivision 2, for 22.40 fiscal years 2004 and 2005 shall only 22.41 be available for claim reimbursements 22.42 for qualifying enrollees who are 22.43 members of purchasing alliances that 22.44 meet the requirements described under 22.45 Minnesota Statutes, section 256.956, 22.46 subdivision 1, paragraph (f), clauses 22.47 (1), (2), and (3). 22.48 (f) Prescription Drug Program 22.49 General 9,239,000 9,226,000 22.50 [PRESCRIPTION DRUG ASSISTANCE PROGRAM.] 22.51 Of the general fund appropriation, 22.52 $702,000 in fiscal year 2004 and 22.53 $887,000 in fiscal year 2005 are for 22.54 the commissioner to establish and 22.55 administer the prescription drug 22.56 assistance program through the 22.57 Minnesota board on aging. 22.58 [REBATE REVENUE RECAPTURE.] Any funds 23.1 received by the state from a drug 23.2 manufacturer due to errors in the 23.3 pharmaceutical pricing used by the 23.4 manufacturer in determining the 23.5 prescription drug rebate are 23.6 appropriated to the commissioner to 23.7 augment funding of the prescription 23.8 drug program established in Minnesota 23.9 Statutes, section 256.955. 23.10 Sec. 5. Laws 2003, First Special Session chapter 14, 23.11 article 13C, section 2, subdivision 7, is amended to read: 23.12 Subd. 7. Health Care Management 23.13 Summary by Fund 23.14 General24,845,00026,199,000 23.15 24,834,000 23.16 Health Care Access 14,522,000 14,533,000 23.17 The amounts that may be spent from this 23.18 appropriation for each purpose are as 23.19 follows: 23.20 (a) Health Care Policy Administration 23.21 General 5,523,000 7,223,000 23.22 Health Care Access 1,066,000 1,200,000 23.23 [PAYMENT CODE STUDY.] Of this 23.24 appropriation, $345,000 each year is 23.25 for a study to determine the 23.26 appropriateness of eliminating 23.27 reimbursement for certain payment codes 23.28 under medical assistance, general 23.29 assistance medical care, or 23.30 MinnesotaCare. As part of the study, 23.31 the commissioner shall also examine 23.32 covered services under the Minnesota 23.33 health care programs and make 23.34 recommendations on possible 23.35 modification of the services covered 23.36 under the program. The commissioner 23.37 shall report to the legislature by 23.38 January 15, 2005, with an analysis of 23.39 the feasibility of this approach, a 23.40 list of codes, if any, to be eliminated 23.41 from the payment system, and estimates 23.42 of savings to be obtained from this 23.43 approach. 23.44 [TRANSFERS FROM HEALTH CARE ACCESS 23.45 FUND.] (a) Notwithstanding Minnesota 23.46 Statutes, section 295.581, to the 23.47 extent available resources in the 23.48 health care access fund exceed 23.49 expenditures in that fund during fiscal 23.50 years 2005 to 2007, the excess annual 23.51 funds shall be transferred from the 23.52 health care access fund to the general 23.53 fund on June 30 of fiscal years 2005, 23.54 2006, and 2007. These transfers shall 23.55 not be reduced to accommodate 23.56 MinnesotaCare expansions. The 23.57 estimated amounts to be transferred are: 24.1 (1) in fiscal year 2005, $192,442,000; 24.2 (2) in fiscal year 2006, $52,943,000; 24.3 and 24.4 (3) in fiscal year 2007, $59,105,000. 24.5 These estimates shall be updated with 24.6 each forecast, but in no case shall the 24.7 transfers exceed the amounts listed in 24.8 clauses (1) to (3). 24.9 (b) The commissioner shall limit 24.10 transfers under paragraph (a) in order 24.11 to avoid implementation of Minnesota 24.12 Statutes, section 256L.02, subdivision 24.13 3, paragraph (b). 24.14 (c) For fiscal years 2004 to 2007, 24.15 MinnesotaCare shall be a forecasted 24.16 program and, if necessary, the 24.17 commissioner shall reduce transfers 24.18 under paragraph (a) to meet forecasted 24.19 expenditures. 24.20 (d) The department of human services in 24.21 recommending its 2007-2008 budget shall 24.22 consider the repayment of the amount 24.23 transferred in fiscal years 2006 and 24.24 2007 from the health care access fund 24.25 to the general fund to the health care 24.26 access fund. 24.27 (e) Notwithstanding section 14, this 24.28 section is in effect until June 30, 24.29 2007. 24.30 [MINNESOTACARE OUTREACH REIMBURSEMENT.] 24.31 Federal administrative reimbursement 24.32 resulting from MinnesotaCare outreach 24.33 is appropriated to the commissioner for 24.34 this activity. 24.35 [MINNESOTA SENIOR HEALTH OPTIONS 24.36 REIMBURSEMENT.] Federal administrative 24.37 reimbursement resulting from the 24.38 Minnesota senior health options project 24.39 is appropriated to the commissioner for 24.40 this activity. 24.41 [UTILIZATION REVIEW.] Federal 24.42 administrative reimbursement resulting 24.43 from prior authorization and inpatient 24.44 admission certification by a 24.45 professional review organization shall 24.46 be dedicated to the commissioner for 24.47 these purposes. A portion of these 24.48 funds must be used for activities to 24.49 decrease unnecessary pharmaceutical 24.50 costs in medical assistance. 24.51 (b) Health Care Operations 24.52 General19,322,00018,976,000 24.53 19,311,000 24.54 Health Care Access 13,456,000 13,333,000 24.55 [PREPAID MEDICAL PROGRAMS.] For all 24.56 counties in which the PMAP program has 25.1 been operating for 12 or more months, 25.2 state funding for the nonfederal share 25.3 of prepaid medical assistance program 25.4 administration costs for county managed 25.5 care advocacy and enrollment operations 25.6 is eliminated. State funding will 25.7 continue for these activities for 25.8 counties and tribes establishing new 25.9 PMAP programs for a maximum of 16 25.10 months (four months prior to beginning 25.11 PMAP enrollment and through the first 25.12 12 months of their PMAP program 25.13 operation). Those counties operating 25.14 PMAP programs for less than 12 months 25.15 can continue to receive state funding 25.16 for advocacy and enrollment activities 25.17 through their first year of operation. 25.18 Sec. 6. Laws 2003, First Special Session chapter 14, 25.19 article 13C, section 2, subdivision 9, is amended to read: 25.20 Subd. 9. Continuing Care Grants 25.21 Summary by Fund 25.22 General1,504,933,0001,490,958,00025.23 1,448,029,000 1,567,392,000 25.24 Lottery Prize Fund 1,408,000 1,408,000 25.25 The amounts that may be spent from this 25.26 appropriation for each purpose are as 25.27 follows: 25.28 (a) Community Social Services 25.29 General 496,000 371,000 25.30 (b) Aging and Adult Service Grant 25.31 General 12,998,000 13,951,000 25.32 [LONG-TERM CARE PROGRAM REDUCTIONS.] 25.33 For the biennium ending June 30, 2005, 25.34 state funding for the following state 25.35 long-term care programs is reduced by 25.36 15 percent from the level of state 25.37 funding provided on June 30, 2003: 25.38 SAIL project grants under Minnesota 25.39 Statutes, section 256B.0917; senior 25.40 nutrition programs under Minnesota 25.41 Statutes, section 256.9752; foster 25.42 grandparents program under Minnesota 25.43 Statutes, section 256.976; retired 25.44 senior volunteer program under 25.45 Minnesota Statutes, section 256.9753; 25.46 and the senior companion program under 25.47 Minnesota Statutes, section 256.977. 25.48 (c) Deaf and Hard-of-hearing 25.49 Service Grants 25.50 General 1,719,000 1,490,000 25.51 (d) Mental Health Grants 25.52 General 53,479,00034,690,00025.53 46,551,000 26.1 Lottery Prize Fund 1,408,000 1,408,000 26.2 [RESTRUCTURING OF ADULT MENTAL HEALTH 26.3 SERVICES.] The commissioner may make 26.4 transfers that do not increase the 26.5 state share of costs to effectively 26.6 implement the restructuring of adult 26.7 mental health services. 26.8 [COMPULSIVE GAMBLING.] Of the 26.9 appropriation from the lottery prize 26.10 fund, $250,000 each year is for the 26.11 following purposes: 26.12 (1) $100,000 each year is for a grant 26.13 to the Southeast Asian Problem Gambling 26.14 Consortium. The consortium must 26.15 provide statewide compulsive gambling 26.16 prevention and treatment services for 26.17 Lao, Hmong, Vietnamese, and Cambodian 26.18 families, adults, and adolescents. The 26.19 appropriation in this clause shall not 26.20 become part of base level funding for 26.21 the biennium beginning July 1, 2005. 26.22 Any unencumbered balance of the 26.23 appropriation in the first year does 26.24 not cancel but is available for the 26.25 second year; and 26.26 (2) $150,000 each year is for a grant 26.27 to a compulsive gambling council 26.28 located in St. Louis county. The 26.29 gambling council must provide a 26.30 statewide compulsive gambling 26.31 prevention and education project for 26.32 adolescents. Any unencumbered balance 26.33 of the appropriation in the first year 26.34 of the biennium does not cancel but is 26.35 available for the second year. 26.36 (e) Community Support Grants 26.37 12,523,0009,093,00026.38 12,024,000 26.39 [CENTERS FOR INDEPENDENT LIVING STUDY.] 26.40 The commissioner of human services, in 26.41 consultation with the commissioner of 26.42 economic security, the centers for 26.43 independent living, and consumer 26.44 representatives, shall study the 26.45 financing of the centers for 26.46 independent living authorized under 26.47 Minnesota Statutes, section 268A.11, 26.48 and make recommendations on options to 26.49 maximize federal financial 26.50 participation. Study components shall 26.51 include: 26.52 (1) the demographics of individuals 26.53 served by the centers for independent 26.54 living; 26.55 (2) the range of services the centers 26.56 for independent living provide to these 26.57 individuals; 26.58 (3) other publicly funded services 26.59 received by individuals supported by 26.60 the centers; and 27.1 (4) strategies for maximizing federal 27.2 financial participation for eligible 27.3 activities carried out by centers for 27.4 independent living. 27.5 The commissioner shall report with 27.6 fiscal and programmatic recommendations 27.7 to the chairs of the appropriate house 27.8 of representatives and senate finance 27.9 and policy committees by January 15, 27.10 2004. 27.11 (f) Medical Assistance Long-Term 27.12 Care Waivers and Home Care Grants 27.13 General659,211,000718,665,00027.14 624,631,000 748,189,000 27.15 [RATE AND ALLOCATION DECREASES FOR 27.16 CONTINUING CARE PROGRAMS.] 27.17 Notwithstanding any law or rule to the 27.18 contrary, the commissioner of human 27.19 services shall decrease reimbursement 27.20 rates or reduce allocations to assure 27.21 the necessary reductions in state 27.22 spending for the providers or programs 27.23 listed in paragraphs (a) to (d). The 27.24 decreases are effective for services 27.25 rendered on or after July 1, 2003. 27.26 (a) Effective July 1, 2003, the 27.27 commissioner shall reduce payment rates 27.28 for services and individual or service 27.29 limits by one percent. The rate 27.30 decreases described in this section 27.31 must be applied to: 27.32 (1) home and community-based waivered 27.33 services for the elderly under 27.34 Minnesota Statutes, section 256B.0915; 27.35 (2) day training and habilitation 27.36 services for adults with mental 27.37 retardation or related conditions under 27.38 Minnesota Statutes, sections 252.40 to 27.39 252.46; 27.40 (3) the group residential housing 27.41 supplementary service rate under 27.42 Minnesota Statutes, section 256I.05, 27.43 subdivision 1a; 27.44 (4) chemical dependency residential and 27.45 nonresidential service rates under 27.46 Minnesota Statutes, section 245B.03; 27.47 (5) consumer support grants under 27.48 Minnesota Statutes, section 256.476; 27.49 and 27.50 (6) home and community-based services 27.51 for alternative care services under 27.52 Minnesota Statutes, section 256B.0913. 27.53 (b) The commissioner shall reduce 27.54 allocations made available to county 27.55 agencies for home and community-based 27.56 waivered services to assure a 27.57 one-percent reduction in state spending 27.58 for services rendered on or after July 28.1 1, 2003. The commissioner shall apply 28.2 the allocation decreases described in 28.3 this section to: 28.4 (1) persons with mental retardation or 28.5 related conditions under Minnesota 28.6 Statutes, section 256B.501; 28.7 (2) waivered services under community 28.8 alternatives for disabled individuals 28.9 under Minnesota Statutes, section 28.10 256B.49; 28.11 (3) community alternative care waivered 28.12 services under Minnesota Statutes, 28.13 section 256B.49; and 28.14 (4) traumatic brain injury waivered 28.15 services under Minnesota Statutes, 28.16 section 256B.49. 28.17 County agencies will be responsible for 28.18 100 percent of any spending in excess 28.19 of the allocation made by the 28.20 commissioner. Nothing in this section 28.21 shall be construed as reducing the 28.22 county's responsibility to offer and 28.23 make available feasible home and 28.24 community-based options to eligible 28.25 waiver recipients within the resources 28.26 allocated to them for that purpose. 28.27 (c) The commissioner shall reduce deaf 28.28 and hard-of-hearing grants by one 28.29 percent on July 1, 2003. 28.30 (d) Effective July 1, 2003, the 28.31 commissioner shall reduce payment rates 28.32 for each facility reimbursed under 28.33 Minnesota Statutes, section 256B.5012, 28.34 by decreasing the total operating 28.35 payment rate for intermediate care 28.36 facilities for the mentally retarded by 28.37 one percent. For each facility, the 28.38 commissioner shall multiply the 28.39 adjustment by the total payment rate, 28.40 excluding the property-related payment 28.41 rate, in effect on June 30, 2003. A 28.42 facility whose payment rates are 28.43 governed by closure agreements, 28.44 receivership agreements, or Minnesota 28.45 Rules, part 9553.0075, is not subject 28.46 to an adjustment otherwise taken under 28.47 this subdivision. 28.48 Notwithstanding section 14, these 28.49 adjustments shall not expire. 28.50 [REDUCE GROWTH IN MR/RC WAIVER.] The 28.51 commissioner shall reduce the growth in 28.52 the MR/RC waiver by not allocating the 28.53 300 additional diversion allocations 28.54 that are included in the February 2003 28.55 forecast for the fiscal years that 28.56 begin on July 1, 2003, and July 1, 2004. 28.57 [MANAGE THE GROWTH IN THE TBI WAIVER.] 28.58 During the fiscal years beginning on 28.59 July 1, 2003, and July 1, 2004, the 28.60 commissioner shall allocate money for 28.61 home and community-based programs 29.1 covered under Minnesota Statutes, 29.2 section 256B.49, to assure a reduction 29.3 in state spending that is equivalent to 29.4 limiting the caseload growth of the TBI 29.5 waiver to 150 in each year of the 29.6 biennium. Priorities for the 29.7 allocation of funds shall be for 29.8 individuals anticipated to be 29.9 discharged from institutional settings 29.10 or who are at imminent risk of a 29.11 placement in an institutional setting. 29.12 [TARGETED CASE MANAGEMENT FOR HOME CARE 29.13 RECIPIENTS.] Implementation of the 29.14 targeted case management benefit for 29.15 home care recipients, according to 29.16 Minnesota Statutes, section 256B.0621, 29.17 subdivisions 2, 3, 5, 6, 7, 9, and 10, 29.18 will be delayed until July 1, 2005. 29.19 [COMMON SERVICE MENU.] Implementation 29.20 of the common service menu option 29.21 within the home and community-based 29.22 waivers, according to Minnesota 29.23 Statutes, section 256B.49, subdivision 29.24 16, will be delayed until July 1, 2005. 29.25 [LIMITATION ON COMMUNITY ALTERNATIVES 29.26 FOR DISABLED INDIVIDUALS CASELOAD 29.27 GROWTH.] For the biennium ending June 29.28 30, 2005, the commissioner shall limit 29.29 the allocations made available in the 29.30 community alternatives for disabled 29.31 individuals waiver program in order not 29.32 to exceed average caseload growth of 95 29.33 per month from June 2003 program 29.34 levels, plus any additional 29.35 legislatively authorized program 29.36 growth. The commissioner shall 29.37 allocate available resources to achieve 29.38 the following outcomes: 29.39 (1) the establishment of feasible and 29.40 viable alternatives for persons in 29.41 institutional or hospital settings to 29.42 relocate to home and community-based 29.43 settings; 29.44 (2) the availability of timely 29.45 assistance to persons at imminent risk 29.46 of institutional or hospital placement 29.47 or whose health and safety is at 29.48 immediate risk; and 29.49 (3) the maximum provision of essential 29.50 community supports to eligible persons 29.51 in need of and waiting for home and 29.52 community-based service alternatives. 29.53 The commissioner may reallocate 29.54 resources from one county or region to 29.55 another if available funding in that 29.56 county or region is not likely to be 29.57 spent and the reallocation is necessary 29.58 to achieve the outcomes specified in 29.59 this paragraph. 29.60 (g) Medical Assistance Long-term 29.61 Care Facilities Grants 29.62 General543,999,000514,483,00030.1 513,763,000 536,321,000 30.2 (h) Alternative Care Grants 30.3 General 75,206,000 66,351,000 30.4 [ALTERNATIVE CARE TRANSFER.] Any money 30.5 allocated to the alternative care 30.6 program that is not spent for the 30.7 purposes indicated does not cancel but 30.8 shall be transferred to the medical 30.9 assistance account. 30.10 [ALTERNATIVE CARE APPROPRIATION.] The 30.11 commissioner may expend the money 30.12 appropriated for the alternative care 30.13 program for that purpose in either year 30.14 of the biennium. 30.15 [ALTERNATIVE CARE IMPLEMENTATION OF 30.16 CHANGES TO FEES AND ELIGIBILITY.] 30.17 Changes to Minnesota Statutes, section 30.18 256B.0913, subdivision 4, paragraph 30.19 (d), and subdivision 12, are effective 30.20 July 1, 2003, for all persons found 30.21 eligible for the alternative care 30.22 program on or after July 1, 2003. All 30.23 recipients of alternative care funding 30.24 as of June 30, 2003, shall be subject 30.25 to Minnesota Statutes, section 30.26 256B.0913, subdivision 4, paragraph 30.27 (d), and subdivision 12, on the annual 30.28 reassessment and review of their 30.29 eligibility after July 1, 2003, but no 30.30 later than January 1, 2004. 30.31 (i) Group Residential Housing Grants 30.32 General94,996,00080,472,00030.33 94,547,000 81,055,000 30.34 [GROUP RESIDENTIAL HOUSING COSTS 30.35 REFINANCED.] (1) Effective July 1, 30.36 2004, the commissioner shall increase 30.37 the home and community-based service 30.38 rates and county allocations provided 30.39 to programs for persons with 30.40 disabilities established under section 30.41 1915(c) of the Social Security Act to 30.42 the extent that these programs will be 30.43 paying for the costs above the rate 30.44 established in Minnesota Statutes, 30.45 section 256I.05, subdivision 1. 30.46 (2) For persons in receipt of services 30.47 under Minnesota Statutes, section 30.48 256B.0915, who reside in licensed adult 30.49 foster care beds for which a 30.50 supplemental room and board payment was 30.51 being made under Minnesota Statutes, 30.52 section 256I.05, subdivision 1, 30.53 counties may request an exception to 30.54 the individual caps specified in 30.55 Minnesota Statutes, section 256B.0915, 30.56 subdivision 3, paragraph (b), not to 30.57 exceed the difference between the 30.58 individual cap and the client's monthly 30.59 service expenditures plus the amount of 30.60 the supplemental room and board rate. 30.61 The county must submit a request to 31.1 exceed the individual cap to the 31.2 commissioner for approval. 31.3 (j) Chemical Dependency 31.4 Entitlement Grants 31.5 General49,251,00050,337,00031.6 57,612,000 60,034,000 31.7 (k) Chemical Dependency Nonentitlement 31.8 Grants 31.9 General 1,055,000 1,055,000 31.10 Sec. 7. Laws 2003, First Special Session chapter 14, 31.11 article 13C, section 2, subdivision 11, is amended to read: 31.12 Subd. 11. Economic Support Grants 31.13 Summary by Fund 31.14 General122,647,000117,198,00031.15 124,697,000 116,985,000 31.16 Federal TANF199,009,000207,224,00031.17 212,844,000 209,264,000 31.18 The amounts that may be spent from this 31.19 appropriation for each purpose are as 31.20 follows: 31.21 (a) Minnesota Family Investment Program 31.22 General59,922,00039,375,00031.23 53,818,000 43,942,000 31.24 Federal TANF106,535,000110,543,00031.25 114,370,000 106,583,000 31.26 (b) Work Grants 31.27 General666,00014,678,00031.28 8,666,000 8,678,000 31.29 Federal TANF92,474,00096,681,00031.30 98,474,000 102,681,000 31.31 [MFIP SUPPORT SERVICES COUNTY AND 31.32 TRIBAL ALLOCATION.] When determining 31.33 the funds available for the 31.34 consolidated MFIP support services 31.35 grant in the 18-month period ending 31.36 December 31, 2004, the commissioner 31.37 shall apportion the funds appropriated 31.38 for fiscal year 2005 in such manner as 31.39 necessary to provide $14,000,000 more 31.40 to counties and tribes for the period 31.41 ending December 31, 2004, than would 31.42 have been available had the funds been 31.43 evenly divided within the fiscal year 31.44 between the period before December 31, 31.45 2004, and the period after December 31, 31.46 2004. 32.1 For allocations for the calendar years 32.2 starting January 1, 2005, the 32.3 commissioner shall apportion the funds 32.4 appropriated for each fiscal year in 32.5 such manner as necessary to provide 32.6 $14,000,000 more to counties and tribes 32.7 for the period ending December 31 of 32.8 that year than would have been 32.9 available had the funds been evenly 32.10 divided within the fiscal year between 32.11 the period before December 31 and the 32.12 period after December 31. 32.13 (c) Economic Support Grants - Other 32.14 Assistance 32.15 General 3,358,000 3,463,000 32.16 [SUPPORTIVE HOUSING.] Of the general 32.17 fund appropriation, $500,000 each year 32.18 is to provide services to families who 32.19 are participating in the supportive 32.20 housing and managed care pilot project 32.21 under Minnesota Statutes, section 32.22 256K.25. This appropriation shall not 32.23 become part of base level funding for 32.24 the biennium beginning July 1, 2007. 32.25 (d) Child Support Enforcement Grants 32.26 General 3,571,000 3,503,000 32.27 (e) General Assistance Grants 32.28 General24,901,00024,732,00032.29 26,329,000 26,909,000 32.30 [GENERAL ASSISTANCE STANDARD.] The 32.31 commissioner shall set the monthly 32.32 standard of assistance for general 32.33 assistance units consisting of an adult 32.34 recipient who is childless and 32.35 unmarried or living apart from parents 32.36 or a legal guardian at $203. The 32.37 commissioner may reduce this amount 32.38 according to Laws 1997, chapter 85, 32.39 article 3, section 54. 32.40 [EMERGENCY GENERAL ASSISTANCE.] The 32.41 amount appropriated for emergency 32.42 general assistance funds is limited to 32.43 no more than $7,889,812 in each fiscal 32.44 year of 2004 and 2005. Funds to 32.45 counties shall be allocated by the 32.46 commissioner using the allocation 32.47 method specified in Minnesota Statutes, 32.48 section 256D.06. 32.49 (f) Minnesota Supplemental Aid Grants 32.50 General30,229,00031,447,00032.51 28,955,000 30,490,000 32.52 [EMERGENCY MINNESOTA SUPPLEMENTAL AID 32.53 FUNDS.] The amount appropriated for 32.54 emergency Minnesota supplemental aid 32.55 funds is limited to no more than 32.56 $1,138,707 in fiscal year 2004 and 32.57 $1,017,000 in fiscal year 2005. Funds 33.1 to counties shall be allocated by the 33.2 commissioner using the allocation 33.3 method specified in Minnesota Statutes, 33.4 section 256D.46. 33.5 Sec. 8. Laws 2003, First Special Session chapter 14, 33.6 article 13C, section 10, subdivision 1, is amended to read: 33.7 Subdivision 1. Total 33.8 Appropriation $107,829,000$92,649,00033.9 106,221,000 97,564,000 33.10 Summary by Fund 33.11 General104,489,00089,309,00033.12 102,881,000 92,224,000 33.13 State Special 33.14 Revenue 3,340,000 3,340,000 33.15 Sec. 9. Laws 2003, First Special Session chapter 14, 33.16 article 13C, section 10, subdivision 2, is amended to read: 33.17 Subd. 2. Child Care 33.18 [BASIC SLIDING FEE CHILD CARE.] Of this 33.19 appropriation, $27,628,000 in fiscal 33.20 year 2004 and $18,771,000 in fiscal 33.21 year 2005 are for child care assistance 33.22 according to Minnesota Statutes, 33.23 section 119B.03. These appropriations 33.24 are available to be spent either year. 33.25 The fiscal years 2006 and 2007 general 33.26 fund base for basic sliding fee child 33.27 care is $30,312,000 each year. 33.28 [MFIP CHILD CARE.] Of this 33.29 appropriation,$69,543,000$67,935,000 33.30 in fiscal year 2004 33.31 and$63,720,000$68,635,000 in fiscal 33.32 year 2005 are for MFIP child care. 33.33 [CHILD CARE PROGRAM INTEGRITY.] Of this 33.34 appropriation, $425,000 in fiscal year 33.35 2004, and $376,000 in fiscal year 2005 33.36 are for the administrative costs of 33.37 program integrity and fraud prevention 33.38 for child care assistance under 33.39 Minnesota Statutes, chapter 119B. 33.40 [CHILD CARE DEVELOPMENT.] Of this 33.41 appropriation, $1,115,000 in fiscal 33.42 year 2004, and $1,164,000 in fiscal 33.43 year 2005 are for child care 33.44 development grants according to 33.45 Minnesota Statutes, section 119B.21. 33.46 Sec. 10. [EFFECTIVE DATE.] 33.47 Sections 1 to 9 are effective the day following final 33.48 enactment, unless a different effective date is specified. 33.49 ARTICLE 3 33.50 ADDITIONAL REVENUES 33.51 Section 1. Minnesota Statutes 2003 Supplement, section 34.1 16A.152, subdivision 2, is amended to read: 34.2 Subd. 2. [ADDITIONAL REVENUES; PRIORITY.] (a) If on the 34.3 basis of a forecast of general fund revenues and expenditures, 34.4 the commissioner of finance determines that there will be a 34.5 positive unrestricted budgetary general fund balance at the 34.6 close of the biennium, the commissioner of finance must allocate 34.7 money to the following accounts and purposes in priority order: 34.8 (1) the cash flow account established in subdivision 1 34.9 until that account reaches $350,000,000;and34.10 (2) the budget reserve account established in subdivision 34.11 1a until that account reaches $653,000,000; 34.12 (3) the amount necessary to increase the aid payment 34.13 schedule for school district aids and credits payments in 34.14 section 127A.45 to not more than 90 percent; and 34.15 (4) the amount necessary to restore all or a portion of the 34.16 net aid reductions under section 127A.441 and to reduce the 34.17 property tax revenue recognition shift under section 123B.75, 34.18 subdivision 5, paragraph (c), and Laws 2003, First Special 34.19 Session chapter 9, article 5, section 34, as amended by Laws 34.20 2003, First Special Session chapter 23, section 20, by the same 34.21 amount. 34.22 (b) The amounts necessary to meet the requirements of this 34.23 section are appropriated from the general fund within two weeks 34.24 after the forecast is released or, in the case of transfers 34.25 under paragraph (a), clauses (3) and (4), as necessary to meet 34.26 the appropriations schedules otherwise established in statute. 34.27 (c) To the extent that a positive unrestricted budgetary 34.28 general fund balance is projected, appropriations under this 34.29 section must be made before any transfer is made under section 34.30 16A.1522. 34.31 (d) The commissioner of finance shall certify the total 34.32 dollar amount of the reductions under paragraph (a), clauses (3) 34.33 and (4), to the commissioner of education. The commissioner of 34.34 education shall increase the aid payment percentage and reduce 34.35 the property tax shift percentage by these amounts and apply 34.36 those reductions to the current fiscal year and thereafter. 35.1 [EFFECTIVE DATE.] This section is effective the day 35.2 following final enactment. 35.3 ARTICLE 4 35.4 PUBLIC FACILITIES AUTHORITY 35.5 Section 1. Minnesota Statutes 2002, section 446A.12, 35.6 subdivision 1, is amended to read: 35.7 Subdivision 1. [BONDING AUTHORITY.] The authority may 35.8 issue negotiable bonds in a principal amount that the authority 35.9 determines necessary to provide sufficient funds for achieving 35.10 its purposes, including the making of loans and purchase of 35.11 securities, the payment of interest on bonds of the authority, 35.12 the establishment of reserves to secure its bonds, the payment 35.13 of fees to a third party providing credit enhancement, and the 35.14 payment of all other expenditures of the authority incident to 35.15 and necessary or convenient to carry out its corporate purposes 35.16 and powers, but not including the making of grants. Bonds of 35.17 the authority may be issued as bonds or notes or in any other 35.18 form authorized by law. The principal amount of bonds issued 35.19 and outstanding under this section at any time may not exceed 35.20$1,000,000,000$1,250,000,000, excluding bonds for which 35.21 refunding bonds or crossover refunding bonds have been issued. 35.22 Sec. 2. Minnesota Statutes 2002, section 446A.14, is 35.23 amended to read: 35.24 446A.14 [INTERESTEXCHANGESRATE SWAPS AND OTHER 35.25 AGREEMENTS.] 35.26The authority may enter into an agreement with a third35.27party for an exchange of interest rates under this subdivision.35.28With respect to outstanding obligations bearing interest at a35.29variable rate, the authority may agree to pay sums equal to35.30interest at a fixed rate or at a different variable rate35.31determined in accordance with a formula set out in the agreement35.32on an amount not exceeding the outstanding principal amount of35.33the obligations, in exchange for an agreement by the third party35.34to pay sums equal to interest on a similar amount at a variable35.35rate determined according to a formula set out in the agreement.35.36With respect to outstanding obligations bearing interest at a36.1fixed rate or rates, the authority may agree to pay sums equal36.2to interest at a variable rate determined according to a formula36.3set out in the agreement on an amount not exceeding the36.4outstanding principal amount of the obligations in exchange for36.5an agreement by the third party to pay sums equal to interest on36.6a similar amount at a fixed rate or rates set out in the36.7agreement. Subject to any applicable bonds covenants, payments36.8required to be made by the municipality under the swap agreement36.9may be made from amounts secured to pay debt service on the36.10obligations with respect to which the swap agreement was made36.11from any other available source of the authority.Subdivision 1. 36.12 [AGREEMENTS.] (a) The authority may enter into interest rate 36.13 exchange or swap agreements, hedges, forward purchase or sale 36.14 agreements, loan sale or pooling agreements or trusts, or other 36.15 similar agreements in connection with: 36.16 (1) the issuance or proposed issuance of bonds; 36.17 (2) the making, proposed making, or sale of loans or other 36.18 financial assistance or investments; 36.19 (3) outstanding bonds, loans, or other financial 36.20 assistance; or 36.21 (4) existing similar agreements. 36.22 (b) The agreements authorized by this subdivision include, 36.23 without limitation, master agreements, options or contracts to 36.24 enter into those agreements in the future and related 36.25 agreements, including, without limitation, agreements to provide 36.26 credit enhancement, liquidity, or remarketing; valuation; 36.27 monitoring; or administrative services currently or in the 36.28 future. However, the term of an option to enter into an 36.29 interest rate swap, exchange, hedge, or other similar agreement 36.30 and the term of a contract to sell, buy, or refund bonds in the 36.31 future must not exceed five years and the authorization of the 36.32 authority to enter into option agreements with respect to 36.33 interest rate swap agreements expires on December 31, 2008; 36.34 provided that the option agreements entered into prior to that 36.35 date remain valid agreements of the authority after that date. 36.36 (c) The agreements authorized by this subdivision or 37.1 supplements to master agreements may be entered into on the 37.2 basis of negotiation with a qualified third party or through a 37.3 competitive proposal process on terms and conditions and with 37.4 covenants and provisions approved by the authority and may 37.5 include, without limitation: 37.6 (1) provisions establishing reserves; 37.7 (2) pledging assets or revenues of the authority for 37.8 current or other payments or termination payments; 37.9 (3) contracting with the other parties to the agreements to 37.10 provide for the custody, collection, securing, investment, and 37.11 payment of money of the authority or money held in trust; or 37.12 (4) requiring the issuance of bonds or entering into loans 37.13 or other agreements authorized by this subdivision in the future. 37.14 (d) Subject to the terms of the agreement and other 37.15 agreements of the authority with bondholders or other third 37.16 parties, the agreements authorized by this subdivision may be 37.17 general or limited obligations of the authority payable from all 37.18 available or certain specified funds appropriated to the 37.19 authority. The agreements authorized by this subdivision do not 37.20 constitute debt of the authority for the purposes of the limits 37.21 on bonds or notes of the authority set forth in section 446A.12, 37.22 subdivision 1. 37.23 (e) The authority may issue bonds to provide funds to make 37.24 payments, including, without limitation, termination payments 37.25 pursuant to an agreement authorized by this subdivision. 37.26 (f) The aggregate notional amount of interest rate swap or 37.27 exchange agreements in effect at any time must not exceed an 37.28 amount equal to ten percent of the aggregate principal amount of 37.29 bonds the authority is authorized to have outstanding pursuant 37.30 to section 446A.12, subdivision 1, including the notional amount 37.31 of interest rate swap or exchange agreements with respect to 37.32 which a reversing agreement has been entered into, the effect of 37.33 which is to terminate the original agreement or a portion 37.34 thereof, and reversing agreements with respect to all or a 37.35 portion of existing agreements. 37.36 Subd. 2. [POWERS OF AUTHORITY.] For the purposes of this 38.1 section, the authority may exercise all powers provided in this 38.2 chapter. The authority may consent, whenever it considers it 38.3 necessary or desirable in connection with agreements entered 38.4 into under this subdivision, to modifications, amendments, or 38.5 waivers of the terms of the agreements. The proceeds of any 38.6 agreements entered into pursuant to this subdivision are 38.7 appropriated to the authority pursuant to section 446A.11, 38.8 subdivision 13. The agreements entered into pursuant to this 38.9 subdivision are not subject to sections 16C.03, subdivision 4, 38.10 and 16C.05. 38.11 Sec. 3. Minnesota Statutes 2002, section 446A.17, is 38.12 amended to read: 38.13 446A.17 [NONLIABILITY.] 38.14 Subdivision 1. [NONLIABILITY OF INDIVIDUALS.] No member of 38.15 the authority or other person executing the bonds, loans, 38.16 interest rate swaps, or other agreements or contracts of the 38.17 authority is liable personally on the bonds, loans, interest 38.18 rate swaps, or other agreements or contracts of the authority or 38.19 is subject to any personal liability or accountability by reason 38.20 of their issuance, execution, delivery, or performance. 38.21 Subd. 2. [NONLIABILITY OF STATE.] The state is not liable 38.22 on bonds, loans, interest rate swaps, or other agreements or 38.23 contracts of the authority issued or entered into under this 38.24 chapter andthose bondsthe bonds, loans, interest rate swaps, 38.25 or other agreements or contracts of the authority are not a debt 38.26 of the state. The bonds, loans, interest rate swaps, or other 38.27 agreements or contracts of the authority must contain on their 38.28 face a statement to that effect. 38.29 Sec. 4. Minnesota Statutes 2002, section 446A.19, is 38.30 amended to read: 38.31 446A.19 [STATE PLEDGE AGAINST IMPAIRMENT OF CONTRACTS.] 38.32 The state pledges and agrees with the holders of bonds 38.33 issued under sections 446A.051, and 446A.12 to 446A.20 or other 38.34 parties to any loans, interest rate swaps, or other agreements 38.35 or contracts of the authority that the state will not limit or 38.36 alter the rights vested in the authority to fulfill the terms of 39.1 any agreements made with the bondholders or parties to any 39.2 loans, interest rate swaps, or other agreements or contracts of 39.3 the authority or in any way impair the rights and remedies of 39.4 the holders until the bonds, together with interest on them, 39.5 with interest on any unpaid installments of interest, and all 39.6 costs and expenses in connection with any action or proceeding 39.7 by or on behalf of the bondholders, are fully met and discharged 39.8 or, with respect to any loans, interest rate swaps, or other 39.9 agreements or contracts of the authority, the agreements have 39.10 been fully performed by the authority or otherwise terminated or 39.11 discharged. The authority may include this pledge and agreement 39.12 of the state in any agreement with the holders of bonds issued 39.13 under sections 446A.051, and 446A.12 to 446A.20 or in any loans, 39.14 interest rate swaps, or other agreements or contracts of the 39.15 authority.