HF 3172

1st Unofficial Engrossment - 88th Legislature (2013 - 2014) Posted on 04/07/2014 12:15pm

1.1A bill for an act

1.2relating to state government; making supplemental appropriations and reductions
1.3in appropriations for higher education, jobs and economic development,
1.4public safety, corrections, transportation, environment, natural resources, and
1.5agriculture, early childhood through grade 12 and adult education, health and
1.6human services; making forecast adjustments; modifying prior appropriations;
1.7modifying disposition of certain revenues; creating accounts; requiring reports;
1.8providing penalties; authorizing rulemaking;amending Minnesota Statutes
1.92012, sections 3.099, subdivision 3; 13.43, subdivision 16; 13.46, subdivision 4;
1.1015A.082, subdivision 4; 16A.125, subdivision 5; 16C.16, subdivision 6a; 16C.19;
1.1118B.01, by adding subdivisions; 18B.03, by adding a subdivision; 18B.04; 85.34,
1.12subdivision 7; 85A.02, subdivision 2; 93.22, subdivision 1; 93.2236; 103G.251;
1.13103G.271, subdivisions 5, 6; 103G.281, by adding a subdivision; 115E.08, by
1.14adding a subdivision; 116J.8731, subdivision 5; 116L.98; 122A.18, by adding
1.15a subdivision; 122A.414, subdivision 2; 122A.415, subdivision 1; 123A.05,
1.16subdivision 2; 123A.485; 123A.64; 123B.71, subdivisions 8, 9; 124D.09,
1.17subdivisions 9, 13; 124D.111, by adding subdivisions; 124D.1158, subdivisions
1.183, 4; 124D.13, subdivisions 2, 4, 9, 13, by adding subdivisions; 124D.135,
1.19subdivisions 1, 3; 124D.522; 124D.531, subdivision 3; 124D.59, subdivision 2;
1.20125A.08; 126C.10, subdivisions 25, 26, 28; 127A.45, subdivision 2; 127A.49,
1.21subdivisions 2, 3; 129C.10, subdivision 3, by adding a subdivision; 136A.01,
1.22subdivision 2; 136A.1702; 136A.1785; 144.1501, subdivision 1; 144.551,
1.23subdivision 1; 144A.073, by adding a subdivision; 144A.33, subdivision 2;
1.24148.624, by adding a subdivision; 148B.53, subdivision 3; 150A.091, by
1.25adding a subdivision; 153.16, by adding a subdivision; 154.11, as amended;
1.26155A.27, by adding a subdivision; 165.15, subdivision 2; 169.011, by adding a
1.27subdivision; 169.06, subdivision 4, by adding a subdivision; 169.14, subdivision
1.285d, by adding a subdivision; 169.305, subdivision 1; 169.826, by adding a
1.29subdivision; 169.8261, by adding a subdivision; 169.86, subdivision 5; 169.863,
1.30by adding a subdivision; 169.865, subdivisions 1, 2, by adding a subdivision;
1.31169.866, subdivision 3, by adding a subdivision; 171.02, subdivision 3; 171.06,
1.32subdivision 2; 174.02, by adding a subdivision; 181.940, subdivision 2; 181A.07,
1.33by adding a subdivision; 216B.16, by adding a subdivision; 216B.1611,
1.34by adding a subdivision; 216B.241, subdivision 1d; 216C.145; 216C.146;
1.35219.015, subdivisions 1, 2; 245.466, by adding a subdivision; 245A.04, by
1.36adding a subdivision; 245C.03, by adding a subdivision; 245C.04, by adding
1.37a subdivision; 245C.05, subdivision 5; 245C.10, by adding a subdivision;
1.38245C.33, subdivisions 1, 4; 252.451, subdivision 2; 253B.066, subdivision 1;
1.39254B.04, subdivision 3; 254B.12; 256.01, by adding a subdivision; 256.9685,
2.1subdivisions 1, 1a; 256.9686, subdivision 2; 256.969, subdivisions 1, 2, 2b, 3a,
2.23b, 3c, 6a, 8, 8a, 9, 10, 12, 14, 17, 18, 25, 30, by adding subdivisions; 256.9752,
2.3subdivision 2; 256B.04, by adding a subdivision; 256B.0615, subdivision 3;
2.4256B.0624, subdivisions 2, 5, 6, 10; 256B.0625, subdivisions 18b, 18c, 18d, 18g,
2.530, by adding subdivisions; 256B.199; 256B.35, subdivision 1; 256B.5012,
2.6by adding a subdivision; 256D.02, subdivisions 8, 12; 256D.05, subdivision
2.75; 256D.06, subdivision 1; 256D.08, subdivision 1, by adding a subdivision;
2.8256D.10; 256D.405, subdivisions 1, 3; 256D.425, subdivision 2; 256I.03, by
2.9adding a subdivision; 256I.04, subdivision 1; 256I.05, subdivision 2; 256J.08,
2.10subdivisions 47, 57, 83, by adding a subdivision; 256J.10; 256J.21, subdivision
2.114; 256J.30, subdivision 4; 256J.32, subdivision 1; 256J.33, subdivision 2;
2.12256J.37, as amended; 256J.425, subdivisions 1, 7; 256J.49, subdivision 13;
2.13256J.53, subdivisions 1, 2, 5; 256J.531; 256J.95, subdivisions 8, 9, 10; 257.85,
2.14subdivision 11; 260B.198, subdivision 7; 260C.212, subdivision 1; 260C.515,
2.15subdivision 4; 260C.611; 268A.01, subdivision 14; 298.28, subdivisions 2, 7a, as
2.16added; 299F.012, subdivisions 1, 2; 326.04, by adding a subdivision; 326.10, by
2.17adding a subdivision; 326.3382, by adding a subdivision; 326A.04, by adding a
2.18subdivision; 645.241; Minnesota Statutes 2013 Supplement, sections 15A.082,
2.19subdivisions 1, 3; 116V.03; 122A.40, subdivision 8; 122A.41, subdivision 5;
2.20123B.53, subdivision 1; 123B.54; 123B.75, subdivision 5; 124D.10, subdivision
2.218; 124D.11, subdivision 1; 124D.111, subdivision 1; 124D.165, subdivisions
2.223, 4, 5; 124D.531, subdivision 1; 124D.862, subdivisions 1, 2; 125A.11,
2.23subdivision 1; 125A.76, subdivisions 1, 2a, 2b, 2c; 125A.79, subdivisions 1, 5, 8;
2.24126C.05, subdivision 15; 126C.10, subdivisions 2a, 2d, 13a, 24, 31; 126C.17,
2.25subdivisions 6, 7b, 9, 9a; 126C.40, subdivision 1; 126C.44; 126C.48, subdivision
2.268; 127A.47, subdivision 7; 127A.70, subdivision 2; 145.4716, subdivision 2;
2.27148B.17, subdivision 2; 174.12, subdivision 2; 174.42, subdivision 2; 245.8251;
2.28245A.03, subdivision 7; 245A.042, subdivision 3; 245A.16, subdivision 1;
2.29245C.08, subdivision 1; 245D.02, subdivisions 3, 4b, 8b, 11, 15b, 29, 34, 34a, by
2.30adding a subdivision; 245D.03, subdivisions 1, 2, 3, by adding a subdivision;
2.31245D.04, subdivision 3; 245D.05, subdivisions 1, 1a, 1b, 2, 4, 5; 245D.051;
2.32245D.06, subdivisions 1, 2, 4, 6, 7, 8; 245D.071, subdivisions 3, 4, 5; 245D.081,
2.33subdivision 2; 245D.09, subdivisions 3, 4a; 245D.091, subdivisions 2, 3, 4;
2.34245D.10, subdivisions 3, 4; 245D.11, subdivision 2; 256B.04, subdivision 21;
2.35256B.055, subdivision 1; 256B.06, subdivision 4; 256B.0625, subdivisions
2.3617, 18e; 256B.0949, subdivision 11; 256B.439, subdivisions 1, 7; 256B.441,
2.37subdivisions 53, 63; 256B.4912, subdivision 1; 256B.4913, subdivision 4a;
2.38256B.4914, subdivisions 2, 4, 5, 6, 7, 9, 10, 15; 256B.492; 256B.69, subdivision
2.3934; 256B.85, subdivisions 2, 3, 5, 6, 7, 8, 9, 10, 11, 12, 13, 15, 16, 17, 18,
2.4023, 24, by adding subdivisions; 256J.21, subdivision 3; 256J.30, subdivision
2.419; 256N.02, by adding a subdivision; 256N.21, subdivision 2, by adding a
2.42subdivision; 256N.22, subdivisions 1, 2, 4, 6; 256N.23, subdivisions 1, 4;
2.43256N.24, subdivisions 9, 10; 256N.25, subdivisions 2, 3; 256N.26, subdivision 1;
2.44256N.27, subdivision 4; 326A.04, subdivision 5; Laws 2008, chapter 363, article
2.455, section 4, subdivision 7, as amended; Laws 2009, chapter 83, article 1, section
2.4610, subdivision 7; Laws 2010, chapter 189, sections 15, subdivision 12; 26,
2.47subdivision 4; Laws 2012, chapter 247, article 4, section 47; Laws 2012, chapter
2.48287, article 2, sections 1; 3; Laws 2012, First Special Session chapter 1, article 1,
2.49section 28; Laws 2013, chapter 1, section 6, as amended; Laws 2013, chapter 85,
2.50article 1, section 3, subdivisions 2, 6; Laws 2013, chapter 86, article 1, sections
2.5112, subdivisions 1, 3, 4, 6, 7; 13; Laws 2013, chapter 99, article 3, section 3;
2.52Laws 2013, chapter 108, article 1, section 24; article 7, section 49; article 14,
2.53sections 2, subdivisions 1, 3, 4, 5, 6; 3, subdivisions 1, 4; 4, subdivision 8; 12;
2.54Laws 2013, chapter 114, article 3, section 3, subdivision 6; article 4, section
2.5547; Laws 2013, chapter 116, article 1, section 58, subdivisions 2, 3, 4, 5, 6, 7,
2.5611; article 3, section 37, subdivisions 3, 4, 5, 6, 8, 15, 20; article 4, section 9,
2.57subdivision 2; article 5, section 31, subdivisions 2, 3, 4, 5, 8; article 6, section 12,
2.58subdivisions 2, 3, 4, 6; article 7, section 21, subdivisions 2, 3, 4, 6, 7, 9; article 8,
3.1section 5, subdivisions 2, 3, 4, 8, 9, 10, 11, 14; article 9, section 2; Laws 2013,
3.2chapter 117, article 1, sections 3, subdivisions 2, 3, 6; 4; 5, subdivisions 2, 3, 4;
3.3Laws 2013, chapter 143, article 11, section 10; proposing coding for new law in
3.4Minnesota Statutes, chapters 3; 18B; 87A; 92; 103G; 123A; 123B; 129C; 135A;
3.5136A; 144; 144A; 148; 168; 171; 197; 219; 256L; 268A; 299A; 473; proposing
3.6coding for new law as Minnesota Statutes, chapter 256P; repealing Minnesota
3.7Statutes 2012, sections 116J.997; 123B.71, subdivision 1; 256.969, subdivisions
3.82c, 8b, 9a, 9b, 11, 13, 20, 21, 22, 26, 27, 28; 256.9695, subdivisions 3, 4;
3.9256D.06, subdivision 1b; 256D.08, subdivision 2; 256D.405, subdivisions 1a, 2;
3.10256J.08, subdivisions 42, 55a, 82a; 256J.20; 256J.24, subdivision 9; 256J.32,
3.11subdivisions 2, 3, 4, 5a, 6, 7, 7a, 8; Minnesota Statutes 2013 Supplement, sections
3.12256B.0625, subdivision 18f; 256J.08, subdivision 24; 256N.26, subdivision 7;
3.13Laws 2010, chapter 215, article 3, section 3, subdivision 6, as amended.
3.14BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

3.15ARTICLE 1

3.16HIGHER EDUCATION

3.17	Section 1. APPROPRIATIONS.

3.18The sums shown in the columns marked "Appropriations" are added to the
3.19appropriations in Laws 2013, chapter 99, article 1, unless otherwise specified, to the
3.20agencies and for the purposes specified in this article. The appropriations are from the
3.21general fund, or another named fund, and are available for the fiscal year indicated for
3.22each purpose. The figure "2015" used in this article mean that the appropriation listed
3.23under them are available for the fiscal year ending June 30, 2015.

3.24				APPROPRIATIONS
3.25				Available for the Year
3.26				Ending June 30
3.27					2014		2015

3.28

Sec. 2. OFFICE OF HIGHER EDUCATION

$

1,000,000

3.29This appropriation is for immediate transfer
3.30to College Possible for the purpose of
3.31expanding College Possible coaching and
3.32mentoring programs in Minnesota schools.
3.33The appropriation shall be used for:
3.34(1) increasing the number of low-income
3.35high school students served by College
3.36Possible by adding at least 150 students and
3.37partnering with at least three additional high
3.38schools in 2015;
4.1(2) expenses related to direct support
4.2for low-income high school students in
4.3after-school programming led by College
4.4Possible; and
4.5(3) coaching and support of low-income
4.6college students through the completion of
4.7their college degree.
4.8College Possible must, by February 1, 2015,
4.9report to the chairs and ranking minority
4.10members of the legislative committees
4.11and divisions with jurisdiction over higher
4.12education on activities funded by this
4.13appropriation. The report must include,
4.14but is not limited to, information about the
4.15expansion of College Possible in Minnesota,
4.16the number of College Possible coaches
4.17hired, the expansion within existing partner
4.18high schools, the expansion of high school
4.19partnerships, the number of high school
4.20and college students served, the total hours
4.21of community service by high school and
4.22college students, and a list of communities
4.23and organizations benefitting from student
4.24service hours.
4.25This appropriation must not be used for the
4.26expansion and support of College Possible
4.27outside of Minnesota.
4.28This is a onetime appropriation.

4.29 4.30 4.31

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

$

17,000,000

4.32This is a onetime appropriation.

4.33 4.34

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

5.1

Subdivision 1.Total Appropriation

$

7,500,000

5.2

Subd. 2.Operations and Maintenance

2,500,000

5.3This is a onetime appropriation for fiscal
5.4year 2015 only and is to address immediate
5.5and critical financial challenges in order to
5.6preserve academic programs and student
5.7service levels. The Board of Regents is
5.8requested to allocate this appropriation to
5.9meet financial challenges at the University of
5.10Minnesota-Duluth campus.

5.11

Subd. 3.Health Sciences Special

5,000,000

5.12This appropriation is for the purpose of
5.13research related to regenerative medicine.
5.14The university is requested to constitute an
5.15advisory group on regenerative medicine
5.16composed of at least five members with
5.17experience in regenerative medicine,
5.18including one member each from:
5.19(1) the Mayo Clinic;
5.20(2) the University of Minnesota;
5.21(3) private industry; and
5.22(4) at least two others with expertise in
5.23regenerative medicine.
5.24Prior to expending the appropriation, the
5.25university must receive and consider the
5.26advice of the advisory group.
5.27The appropriation may be used entirely for
5.28University of Minnesota research or may
5.29be allocated in whole or in part to research
5.30conducted by others including the Mayo
5.31Clinic.

5.32 5.33

Sec. 5. DEPARTMENT OF LABOR AND INDUSTRY

$

250,000

6.1For the purpose of the competency standard
6.2program in section 19. This is a onetime
6.3appropriation.

6.4 6.5

Sec. 6. DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT

$

232,000

6.6This appropriation is for the purpose of the
6.7commissioner's duties under section 116L.98
6.8and the accountability plan under section 22.
6.9This is a onetime appropriation.

6.10    Sec. 7. Minnesota Statutes 2012, section 116L.98, is amended to read:
6.11116L.98 WORKFORCE PROGRAM OUTCOMES.
6.12    Subdivision 1. Requirements. The commissioner shall develop and implement a
6.13set of standard approaches for assessing the outcomes of workforce programs under this
6.14chapter. The outcomes assessed must include, but are not limited to, periodic comparisons
6.15of workforce program participants and nonparticipants uniform outcome measurement
6.16and reporting system for adult workforce-related programs under chapters 116J and 116L.
6.17The commissioner shall also monitor the activities and outcomes of programs and
6.18services funded by legislative appropriations and administered by the department on a
6.19pass-through basis and develop a consistent and equitable method of assessing recipients
6.20for the costs of its monitoring activities.
6.21    Subd. 2. Definitions. (a) For the purposes of this section, the terms defined in
6.22this subdivision have the meanings given.
6.23(b) "Credential" means postsecondary degrees, diplomas, licenses, and certificates
6.24awarded in recognition of an individual's attainment of measurable technical or
6.25occupational skills necessary to obtain employment or advance within an occupation.
6.26"Credential" does not include certificates awarded by workforce investment boards or
6.27work-readiness certificates.
6.28(c) "Exit" means to have not received service under a workforce program for 90
6.29consecutive calendar days. The exit date is the last date of service.
6.30(d) "Net impact" means the use of matched control groups and regression analysis to
6.31estimate the impacts attributable to program participation net of other factors, including
6.32observable personal characteristics and economic conditions.
6.33(e) "Preenrollment" means the period of time before an individual was enrolled
6.34in a workforce program.
7.1    Subd. 3. Uniform outcome report card; reporting by the commissioner. (a) By
7.2December 31 of each even-numbered year, the commissioner must report to the chairs
7.3and ranking minority members of the committees of the house of representatives and the
7.4senate having jurisdiction over economic development and workforce policy and finance
7.5the following information separately for each of the previous two fiscal or calendar years,
7.6for each program subject to the requirements of subdivision 1:
7.7(1) the total number of participants enrolled;
7.8(2) the median preenrollment wages based on participant wages for the second
7.9through the fifth calendar quarters immediately preceding the quarter of enrollment
7.10excluding those with zero income;
7.11(3) the total number of participants with zero income in the second through fifth
7.12calendar quarters immediately preceding the quarter of enrollment;
7.13(4) the total number of participants enrolled in training;
7.14(5) the total number of participants enrolled in training by occupational group;
7.15(6) the total number of participants that exited the program and the average
7.16enrollment duration of participants that have exited the program during the year;
7.17(7) the total number of exited participants who completed training;
7.18(8) the total number of exited participants who attained a credential;
7.19(9) the total number of participants employed during three consecutive quarters
7.20immediately following the quarter of exit, by industry;
7.21(10) the median wages of participants employed during three consecutive quarters
7.22immediately following the quarter of exit;
7.23(11) the total number of participants employed during eight consecutive quarters
7.24immediately following the quarter of exit, by industry; and
7.25(12) the median wages of participants employed during eight consecutive quarters
7.26immediately following the quarter of exit.
7.27(b) The report to the legislature must contain participant information by education
7.28level, race and ethnicity, gender, and geography, and a comparison of exited participants
7.29who completed training and those who did not.
7.30(c) The requirements of this section apply to programs administered directly by the
7.31commissioner or administered by other organizations under a grant made by the department.
7.32    Subd. 4. Data to commissioner; uniform report card. (a) A recipient of a
7.33direct appropriation or grant made by or through the department must report data to the
7.34commissioner by September 1 of each even-numbered year on each of the items in
7.35subdivision 3 for each program it administers except wages and number employed which
7.36the department shall provide. The data must be in a format prescribed by the commissioner.
8.1(b) Beginning July 1, 2014, the commissioner shall provide notice to grant applicants
8.2and recipients regarding the data collection and reporting requirements under this
8.3subdivision and must provide technical assistance to applicants and recipients to assist
8.4in complying with the requirements of this subdivision.
8.5    Subd. 5. Information. The information collected and reported under subdivisions 3
8.6and 4 shall be made available on the department's Web site.

8.7    Sec. 8. [135A.0431] MILITARY VETERANS; RESIDENT TUITION.
8.8(a) A person who is honorably discharged from the armed forces of the United States
8.9is entitled to the resident tuition rate at Minnesota public postsecondary institutions.
8.10(b) This section is in addition to any other statute, rule, or higher education
8.11institution regulation or policy providing eligibility for a resident tuition rate or its
8.12equivalent to a student.
8.13EFFECTIVE DATE.This section is effective for academic terms beginning after
8.14August 1, 2014.

8.15    Sec. 9. Minnesota Statutes 2012, section 136A.01, subdivision 2, is amended to read:
8.16    Subd. 2. Responsibilities. (a) The Minnesota Office of Higher Education is
8.17responsible for:
8.18(1) necessary state level administration of financial aid programs, including
8.19accounting, auditing, and disbursing state and federal financial aid funds, and reporting on
8.20financial aid programs to the governor and the legislature;
8.21(2) approval, registration, licensing, and financial aid eligibility of private collegiate
8.22and career schools, under sections 136A.61 to 136A.71 and chapter 141;
8.23(3) determining whether to enter into an interstate reciprocity agreement regarding
8.24postsecondary distance education;
8.25(3) (4) negotiating and administering reciprocity agreements;
8.26(4) (5) publishing and distributing financial aid information and materials, and other
8.27information and materials under section 136A.87, to students and parents;
8.28(5) (6) collecting and maintaining student enrollment and financial aid data and
8.29reporting data on students and postsecondary institutions to develop and implement a
8.30process to measure and report on the effectiveness of postsecondary institutions;
8.31(6) (7) administering the federal programs that affect students and institutions on a
8.32statewide basis; and
8.33(7) (8) prescribing policies, procedures, and rules under chapter 14 necessary to
8.34administer the programs under its supervision.
9.1(b) The office may match individual student data from the student record enrollment
9.2database with individual student financial aid data collected and maintained by the office
9.3in order to audit or evaluate federal or state supported education programs as permitted by
9.4United States Code, title 20, section 1232g(b)(3), and Code of Federal Regulations, title
9.534, section 99.35. The office shall not release data that personally identifies parents or
9.6students other than to employees and contractors of the office.

9.7    Sec. 10. Minnesota Statutes 2012, section 136A.1702, is amended to read:
9.8136A.1702 LEGISLATIVE OVERSIGHT.
9.9    The office shall notify the chairs of the legislative committees with primary
9.10jurisdiction over higher education finance of any proposed material change to any of its
9.11student loan programs, including loan refinancing under section 136A.1704, prior to
9.12making the change.

9.13    Sec. 11. [136A.1704] STUDENT LOAN REFINANCING.
9.14The office may refinance student and parent loans as provided by this section and
9.15on other terms and conditions the office prescribes. The office may establish credit
9.16requirements for borrowers and determine what types of student and parent loans will be
9.17eligible for refinancing. The refinanced loan need not have been made through a loan
9.18program administered by the office. Loans shall be made with available funds in the
9.19loan capital fund under section 136A.1785. The maximum amount of outstanding loans
9.20refinanced under this section may not exceed $100,000,000. The maximum loan under
9.21this section may not exceed $70,000.
9.22EFFECTIVE DATE.This section is effective the day following final enactment,
9.23provided no loans may be refinanced prior to June 1, 2015.

9.24    Sec. 12. Minnesota Statutes 2012, section 136A.1785, is amended to read:
9.25136A.1785 LOAN CAPITAL FUND.
9.26The office may deposit and hold assets derived from the operation of its student loan
9.27programs and refinanced education loans authorized by this chapter in a fund known as
9.28the loan capital fund. Assets in the loan capital fund are available to the office solely
9.29for carrying out the purposes and terms of sections 136A.15 to 136A.1703 136A.1704,
9.30including, but not limited to, making student loans authorized by this chapter, refinancing
9.31education loans authorized by this chapter, paying administrative expenses associated with
9.32the operation of its student loan programs, repurchasing defaulted student loans, and
10.1paying expenses in connection with the issuance of revenue bonds authorized under this
10.2chapter. Assets in the loan capital fund may be invested as provided in sections 11A.24
10.3and 136A.16, subdivision 8. All interest and earnings from the investment of the loan
10.4capital fund inure to the benefit of the fund and are deposited into the fund.

10.5    Sec. 13. [136A.221] RESEARCH DOGS AND CATS.
10.6(a) A higher education research facility that receives public money or a facility that
10.7provides research in collaboration with a higher education facility that confines dogs or
10.8cats for science, education, or research purposes and plans on euthanizing a dog or cat
10.9for other than science, education, or research purposes must first offer the dog or cat
10.10to an animal rescue organization. A facility that is required to offer dogs or cats to an
10.11animal rescue organization under this section may enter into an agreement with the animal
10.12rescue organization to protect the facility. A facility that provides a dog or cat to a rescue
10.13organization under this section is immune from any civil liability that otherwise might
10.14result from its actions, provided that the facility is acting in good faith.
10.15(b) For the purposes of this section, "animal rescue organization" means any
10.16nonprofit organization incorporated for the purpose of rescuing animals in need and
10.17finding permanent, adoptive homes for the animals.

10.18    Sec. 14. [136A.658] EXEMPTION; STATE AUTHORIZATION RECIPROCITY
10.19AGREEMENT SCHOOLS.
10.20(a) The office may participate in an interstate reciprocity agreement regarding
10.21postsecondary distance education if it determines that participation is in the best interest of
10.22Minnesota postsecondary students.
10.23(b) If the office decides to participate in an interstate reciprocity agreement, an
10.24institution that meets the following requirements is exempt from the provisions of sections
10.25136A.61 to 136A.71:
10.26(1) the institution is situated in a state which is also participating in the interstate
10.27reciprocity agreement;
10.28(2) the institution has been approved to participate in the interstate reciprocity
10.29agreement by the institution's home state and other entities with oversight of the interstate
10.30reciprocity agreement; and
10.31(3) the institution has elected to participate in and operate in compliance with the
10.32terms of the interstate reciprocity agreement.

10.33    Sec. 15. [136A.89] STUDY ABROAD PROGRAMS.
11.1    Subdivision 1. Definitions. (a) For purposes of this section, the terms defined in this
11.2subdivision have the meanings given them.
11.3(b) "Postsecondary institution" means an institution that meets the eligibility
11.4requirements under section 136A.103 to participate in state financial aid programs.
11.5(c) "Program" means a study abroad program offered or approved for credit by a
11.6postsecondary institution in which program participants travel outside of the United States
11.7in connection with an educational experience.
11.8    Subd. 2. Report. (a) A postsecondary institution, must file by November 1 of
11.9each year a report on its programs with the office. The report must contain the following
11.10information from the previous academic year, including summer terms:
11.11(1) deaths of program participants that occurred during program participation as a
11.12result of program participation; and
11.13(2) accidents and illnesses that occurred during program participation as a result of
11.14program participation and that required hospitalization.
11.15Information reported under clause (1) may be supplemented by a brief explanatory
11.16statement.
11.17(b) A postsecondary institution must report to the office annually by November
11.181 whether its program complies with health and safety standards set by the Forum on
11.19Education Abroad or similar study abroad program standard setting agency.
11.20    Subd. 3. Office of Higher Education; publication of program information. (a)
11.21The office must publish the reports required by subdivision 2, on its Web site in a format
11.22that facilitates identifying information related to a particular postsecondary institution.
11.23(b) The office shall publish on its Web site the best available information by country
11.24on sexual assaults and other criminal acts affecting study abroad program participants
11.25during program participation. This information shall not be limited to programs subject
11.26to this section.
11.27    Subd. 4. Program material. A postsecondary institution must include in its written
11.28materials provided to prospective program participants a link to the office Web site stating
11.29that program health and safety information is available at the Web site.
11.30EFFECTIVE DATE.This section is effective August 1, 2014, provided that the
11.31initial reports under subdivision 2 are due November 1, 2015.

11.32    Sec. 16. Minnesota Statutes 2012, section 181A.07, is amended by adding a
11.33subdivision to read:
12.1    Subd. 7. Approved training programs. The commissioner may grant exemptions
12.2from any provisions of sections 181A.01 to 181A.12 for minors participating in training
12.3programs approved by the commissioner; or students in a valid apprenticeship program
12.4taught by or required by a trade union, the commissioner of education, the commissioner
12.5of employment and economic development, the Board of Trustees of the Minnesota State
12.6Colleges and Universities, or the Board of Regents of the University of Minnesota.

12.7    Sec. 17. Laws 2013, chapter 99, article 3, section 3, is amended to read:
12.8    Sec. 3. STATE GRANT TUITION CAPS; LIVING AND MISCELLANEOUS
12.9EXPENSE ALLOWANCE.
12.10(a) For the purposes of the state grant program under Minnesota Statutes, section
12.11136A.121 , for the biennium ending June 30, 2015, the tuition maximum is $13,000
12.12each fiscal year of the biennium for fiscal year 2014 and $13,620 for fiscal year 2015
12.13 for students in four-year programs, and $5,808 in each fiscal year of the biennium for
12.14students in two-year programs.
12.15(b) The living and miscellaneous expense allowance for the state grant program under
12.16Minnesota Statutes, section 136A.121, for the biennium ending June 30, 2015, is set at
12.17$7,900 for each fiscal year of the biennium fiscal year 2014 and $8,300 for fiscal year 2015.
12.18EFFECTIVE DATE.This section is effective the day following final enactment.

12.19    Sec. 18. MINNESOTA STATE COLLEGES AND UNIVERSITIES
12.20BACCALAUREATE DEGREE COMPLETION PLAN.
12.21The Board of Trustees of the Minnesota State Colleges and Universities shall develop
12.22a plan to implement multi-campus articulation agreements that lead to baccalaureate degree
12.23completion upon earning the number of credits required for the degree minus 60 credits at
12.24a system university after transfer to the system university by a student with an associate in
12.25arts degree, associate of science degree, or an associate of fine arts (AFA) degree from
12.26a system college. The board shall report on this plan to the legislative committees with
12.27primary jurisdiction over higher education finance and policy by March 15, 2015.

12.28    Sec. 19. COMPETENCY STANDARDS: ADVANCED MANUFACTURING,
12.29HEALTH CARE SERVICES, INFORMATION TECHNOLOGY, AND
12.30AGRICULTURE.
12.31(a) The commissioner of labor and industry, in collaboration with the commissioner
12.32of employment and economic development, shall establish competency standards for
12.33programs in advanced manufacturing, health care services, information technology,
13.1and agriculture. This initiative shall be administered by the Department of Labor and
13.2Industry. In establishing the competency standards, the commissioner shall convene
13.3recognized industry experts, representative employers, higher education institutions, and
13.4representatives of labor to assist in defining credible competency standards acceptable to
13.5the advanced manufacturing, health care services, information technology, and agriculture
13.6industries.
13.7(b) The outcomes expected from the initiatives in this section include:
13.8(1) establishment of competency standards for entry level and at least two additional
13.9higher skill levels in each industry;
13.10(2) verification of competency standards and skill levels and their transferability by
13.11representatives of each respective industry;
13.12(3) models of ways for Minnesota educational institutions to engage in providing
13.13education and training to meet the competency standards established; and
13.14(4) participation from the identified industry sectors.
13.15(c) By January 15, 2015, the commissioner of labor and industry shall report to the
13.16legislative committees with jurisdiction over jobs on the progress and success, including
13.17outcomes, of the initiatives in this section and recommendations on occupations in which
13.18similar competency standards should be developed and implemented.

13.19    Sec. 20. STUDY OF NORTH DAKOTA OIL PRODUCTION; IMPACT ON
13.20MINNESOTA.
13.21(a) The commissioner of employment and economic development, in consultation
13.22with the commissioner of revenue, shall study and analyze the effects of current and
13.23projected oil production in North Dakota on the Minnesota economy with special focus on
13.24the northwestern region of Minnesota and area border cities as provided in paragraph (b).
13.25(b) The study and analysis must address:
13.26(1) current and projected economic, fiscal, and demographic effects and issues;
13.27(2) direct and indirect costs and benefits;
13.28(3) positive and negative effects; and
13.29(4) economic challenges and opportunities for economic growth or diversification.
13.30(c) The study must be objective, evidence-based, and designed to produce empirical
13.31data. Study data must be utilized to formulate policy recommendations on how the state,
13.32the northwestern region of the state, and border cities may respond to the challenges and
13.33opportunities for economic growth and financial investment that may be derived from the
13.34regional economic changes that are the result of oil production in North Dakota.
14.1(d) For the purposes of this section, "border cities" has the meaning given in
14.2Minnesota Statutes, section 469.1731.
14.3(e) The study and analysis must be conducted by an independent entity with
14.4demonstrated knowledge in the following areas:
14.5(1) the economy and demography of Minnesota;
14.6(2) the domestic and foreign oil industry; and
14.7(3) technologies, markets, and geopolitical factors that have an impact on current
14.8and future oil production in the region.
14.9(f) The commissioner shall report on the findings and recommendations of the study
14.10to the committees of the house of representatives and senate having jurisdiction over
14.11economic development and workforce issues by February 15, 2015.
14.12EFFECTIVE DATE.This section is effective the day following final enactment.

14.13    Sec. 21. REPORT; OFFICE OF HIGHER EDUCATION.
14.14The Office of Higher Education shall, by February 1, 2015, report to the committees
14.15of the legislature with primary jurisdiction over higher education policy and finance, its
14.16plans and proposed terms and conditions for operating a student loan refinancing program
14.17under section 136A.1704, along with any recommended legislation.

14.18    Sec. 22. COMMISSIONER OF EMPLOYMENT AND ECONOMIC
14.19DEVELOPMENT ACCOUNTABILITY PLAN.
14.20By December 1, 2014, the commissioner of employment and economic development
14.21shall report to the committees of the house of representatives and senate having
14.22jurisdiction over workforce development and economic development policy and finance
14.23issues, on the department's plan, and any request for funding, to design and implement
14.24a performance accountability outcome measurement system, including a net impact
14.25analysis, for programs under Minnesota Statutes, chapter 116J and 116L.

14.26    Sec. 23. WORKFORCE PROGRAM NET IMPACT ANALYSIS.
14.27By December 1, 2014, the commissioner of employment and economic development,
14.28in partnership with the Governor's Workforce Development Council, must report to the
14.29chairs and ranking minority members of the committees of the house of representatives
14.30and the senate having jurisdiction over economic development and workforce policy and
14.31finance the results of the net impact pilot project already underway.

15.1    Sec. 24. STUDY ABROAD PROGRAM; ASSESSMENT OF APPROPRIATE
15.2REGULATION.
15.3The Office of Higher Education shall, using existing staff and budget, assess the
15.4appropriate state regulation of postsecondary study abroad programs. The assessment
15.5must be based on a balanced approach of protecting the health and safety of program
15.6participants and maintaining the opportunity of students to study abroad. The office shall
15.7report the results of its assessment with any legislative recommendation by February 1,
15.82015, to the committees of the legislature with primary jurisdiction over higher education.

15.9    Sec. 25. REPEALER.
15.10Minnesota Statutes 2012, section 116J.997, is repealed.

15.11ARTICLE 2

15.12TRANSPORTATION AND PUBLIC SAFETY APPROPRIATIONS

15.13    Section 1. Laws 2009, chapter 83, article 1, section 10, subdivision 7, is amended to
15.14read:

15.15

Subd. 7.Emergency Communication Networks

66,470,000

70,233,000

15.16This appropriation is from the state
15.17government special revenue fund for 911
15.18emergency telecommunications services.
15.19(a) Public Safety Answering Points.
15.20$13,664,000 each year is to be distributed
15.21as provided in Minnesota Statutes, section
15.22403.113, subdivision 2 .
15.23(b) Medical Resource Communication
15.24Centers. $683,000 each year is for grants
15.25to the Minnesota Emergency Medical
15.26Services Regulatory Board for the Metro
15.27East and Metro West Medical Resource
15.28Communication Centers that were in
15.29operation before January 1, 2000.
15.30(c) ARMER Debt Service. $17,557,000 the
15.31first year and $23,261,000 the second year
15.32are to the commissioner of finance to pay
16.1debt service on revenue bonds issued under
16.2Minnesota Statutes, section 403.275.
16.3Any portion of this appropriation not needed
16.4to pay debt service in a fiscal year may be
16.5used by the commissioner of public safety to
16.6pay cash for any of the capital improvements
16.7for which bond proceeds were appropriated
16.8by Laws 2005, chapter 136, article 1, section
16.99, subdivision 8, or Laws 2007, chapter 54,
16.10article 1, section 10, subdivision 8.
16.11(d) Metropolitan Council Debt Service.
16.12$1,410,000 each year is to the commissioner
16.13of finance for payment to the Metropolitan
16.14Council for debt service on bonds issued
16.15under Minnesota Statutes, section 403.27.
16.16(e) ARMER State Backbone Operating
16.17Costs. $5,060,000 each year is to the
16.18commissioner of transportation for costs
16.19of maintaining and operating the statewide
16.20radio system backbone.
16.21(f) ARMER Improvements. $1,000,000
16.22each year is for the Statewide Radio Board for
16.23costs of design, construction, maintenance
16.24of, and improvements to those elements
16.25of the statewide public safety radio and
16.26communication system that support mutual
16.27aid communications and emergency medical
16.28services or provide enhancement of public
16.29safety communication interoperability.
16.30(g) Next Generation 911. $3,431,000 the
16.31first year and $6,490,000 the second year
16.32are to replace the current system with the
16.33Next Generation Internet Protocol (IP) based
16.34network. This appropriation is available until
17.1expended. The base level of funding for
17.2fiscal year 2012 shall be $2,965,000.
17.3(h) Grants to Local Government.
17.4$5,000,000 the first year is for grants to
17.5local units of government to assist with
17.6the transition to the ARMER system. This
17.7appropriation is available until June 30, 2012.

17.8    Sec. 2. Laws 2010, chapter 189, section 15, subdivision 12, is amended to read:

17.9 17.10

Subd. 12.Rochester Maintenance Facility

26,430,000 24,937,000

17.11This appropriation is from the bond proceeds
17.12account in the trunk highway fund.
17.13To prepare a site for and design, construct,
17.14furnish, and equip a new maintenance facility
17.15in Rochester.
17.16EFFECTIVE DATE.This section is effective the day following final enactment.

17.17    Sec. 3. Laws 2010, chapter 189, section 26, subdivision 4, is amended to read:
17.18    Subd. 4. Trunk highway fund bond proceeds account. To provide the money
17.19appropriated in this act from the bond proceeds account in the trunk highway fund, the
17.20commissioner of management and budget shall sell and issue bonds of the state in an
17.21amount up to $32,945,000 $31,452,000 in the manner, upon the terms, and with the effect
17.22prescribed by Minnesota Statutes, sections 167.50 to 167.52, and by the Minnesota
17.23Constitution, article XIV, section 11, at the times and in the amounts requested by the
17.24commissioner of transportation. The proceeds of the bonds, except accrued interest and
17.25any premium received from the sale of the bonds, must be credited to the bond proceeds
17.26account in the trunk highway fund.
17.27EFFECTIVE DATE.This section is effective the day following final enactment.

17.28    Sec. 4. Laws 2012, chapter 287, article 2, section 1, is amended to read:
17.29    Section 1. ROCHESTER MAINTENANCE FACILITY.
17.30$16,100,000 $17,593,000 is appropriated to the commissioner of transportation
17.31to design, construct, furnish, and equip the maintenance facility in Rochester and
18.1corresponding remodeling of the existing district headquarters building. This appropriation
18.2is from the bond proceeds account in the trunk highway fund.
18.3EFFECTIVE DATE.This section is effective the day following final enactment.

18.4    Sec. 5. Laws 2012, chapter 287, article 2, section 3, is amended to read:
18.5    Sec. 3. TRUNK HIGHWAY FUND BOND PROCEEDS ACCOUNT.
18.6To provide the money appropriated in this article from the bond proceeds account in
18.7the trunk highway fund, the commissioner of management and budget shall sell and issue
18.8bonds of the state in an amount up to $16,120,000 $17,613,000 in the manner, upon the
18.9terms, and with the effect prescribed by Minnesota Statutes, sections 167.50 to 167.52,
18.10and by the Minnesota Constitution, article XIV, section 11, at the times and in the amounts
18.11requested by the commissioner of transportation. The proceeds of the bonds, except
18.12accrued interest and any premium received from the sale of the bonds, must be credited
18.13to the bond proceeds account in the trunk highway fund.
18.14EFFECTIVE DATE.This section is effective the day following final enactment.

18.15    Sec. 6. Laws 2012, First Special Session chapter 1, article 1, section 28, is amended to
18.16read:
18.17    Sec. 28. TRANSFERS, REDUCTIONS, CANCELLATIONS, AND BOND
18.18SALE AUTHORIZATIONS REDUCED.
18.19(a) The remaining balance of the appropriation in Laws 2010, Second Special
18.20Session chapter 1, article 1, section 7, for the economic development and housing
18.21challenge program, estimated to be $450,000, is transferred to the general fund.
18.22(b) The appropriation in Laws 2010, Second Special Session chapter 1, article 1,
18.23section 5, for Minnesota investment fund grants pursuant to Minnesota Statutes, section
18.2412A.07 , is reduced by $1,358,000.
18.25(c) The appropriation in Laws 2010, Second Special Session chapter 1, article 1,
18.26section 12, subdivision 2, for disaster enrollment impact aid pursuant to Minnesota
18.27Statutes, section 12A.06, is reduced by $30,000.
18.28(d) The appropriation in Laws 2010, Second Special Session chapter 1, article
18.291, section 12, subdivision 3, for disaster relief facilities grants pursuant to Minnesota
18.30Statutes, section 12A.06, is reduced by $392,000.
18.31(e) The appropriation in Laws 2010, Second Special Session chapter 1, article 1,
18.32section 12, subdivision 4, for disaster relief operating grants pursuant to Minnesota
18.33Statutes, section 12A.06, is reduced by $2,000.
19.1(f) The appropriation in Laws 2010, Second Special Session chapter 1, article 1,
19.2section 12, subdivision 5, for pupil transportation aid pursuant to Minnesota Statutes,
19.3section 12A.06, is reduced by $5,000.
19.4(g) The appropriation in Laws 2010, Second Special Session chapter 1, article 2,
19.5section 5, subdivision 3, for pupil transportation aid pursuant to Minnesota Statutes,
19.6section 12A.06, is reduced by $271,000.
19.7(h) The appropriation in Laws 2010, Second Special Session chapter 1, article 1,
19.8section 13, for public health activities pursuant to Minnesota Statutes, section 12A.08,
19.9is reduced by $103,000.
19.10(i) $1,428,000 $534,000 of the appropriation in Laws 2007, First Special Session
19.11chapter 2, article 1, section 4, subdivision 3, for reconstruction and repair of trunk
19.12highways and trunk highway bridges is canceled. The bond sale authorization in Laws
19.132007, First Special Session chapter 2, article 1, section 15, subdivision 2, is reduced
19.14by $1,428,000 $534,000.
19.15(j) $5,680,000 of the appropriation in Laws 2007, First Special Session chapter 2,
19.16article 1, section 4, subdivision 4, as amended by Laws 2008, chapter 289, section 2, for
19.17grants to local governments for capital costs related to rehabilitation and replacement of
19.18local roads and bridges damaged or destroyed by flooding pursuant to Minnesota Statutes,
19.19section 174.50, is canceled. The bond sale authorization in Laws 2007, First Special
19.20Session chapter 2, article 1, section 15, subdivision 3, is reduced by $5,680,000.
19.21(k) $2,133,000 of the appropriation in Laws 2010, Second Special Session chapter 1,
19.22article 1, section 4, subdivision 3, for local road and bridge rehabilitation and replacement
19.23pursuant to Minnesota Statutes, section 12A.16, subdivision 3, is canceled. The bond
19.24sale authorization in Laws 2010, Second Special Session chapter 1, article 1, section 17,
19.25subdivision 2, is reduced by $2,133,000.
19.26(l) The appropriation in Laws 2010, Second Special Session chapter 1, article 1,
19.27section 4, subdivision 2, for state road infrastructure operations and maintenance pursuant
19.28to Minnesota Statutes, section 12A.16, subdivision 1, is reduced by $819,000.
19.29EFFECTIVE DATE.This section is effective the day following final enactment.

19.30    Sec. 7. Laws 2013, chapter 86, article 1, section 12, subdivision 1, is amended to read:

19.31 19.32

Subdivision 1.Total Appropriation

$

157,851,000

$

161,191,000 161,911,000

19.33	Appropriations by Fund
19.34		2014	2015
19.35	General	82,213,000	82,772,000
20.1	Special Revenue	14,062,000	13,062,000
20.2 20.3	State Government Special Revenue	59,241,000	63,742,000
20.4	Environmental	69,000	69,000
20.5	Trunk Highway	2,266,000	2,266,000

20.6The amounts that may be spent for each
20.7purpose are specified in the following
20.8subdivisions.

20.9    Sec. 8. Laws 2013, chapter 86, article 1, section 12, subdivision 3, is amended to read:

20.10

Subd. 3.Criminal Apprehension

47,588,000

47,197,000

20.11	Appropriations by Fund
20.12	General	42,315,000	42,924,000
20.13	Special Revenue	3,000,000	2,000,000
20.14 20.15	State Government Special Revenue	7,000	7,000
20.16	Trunk Highway	2,266,000	2,266,000

20.17

(a) DWI Lab Analysis; Trunk Highway Fund

20.18Notwithstanding Minnesota Statutes, section
20.19161.20, subdivision 3 , $1,941,000 each year
20.20is from the trunk highway fund for laboratory
20.21analysis related to driving-while-impaired
20.22cases.

20.23

(b) Criminal History System

20.24$50,000 the first year and $580,000 the
20.25second year from the general fund and,
20.26notwithstanding Minnesota Statutes, section
20.27299A.705, subdivision 4 , $3,000,000 the
20.28first year and $2,000,000 the second year
20.29from the vehicle services account in the
20.30special revenue fund are to replace the
20.31state criminal history system. This is a
20.32onetime appropriation and is available until
20.33expended. Of this amount, $2,980,000 the
20.34first year and $2,580,000 the second year
20.35are for a onetime transfer to the Office of
21.1Enterprise Technology for start-up costs.
21.2Service level agreements must document all
21.3project-related transfers under this paragraph.
21.4Ongoing operating and support costs for this
21.5system shall be identified and incorporated
21.6into future service level agreements.
21.7The commissioner is authorized to use funds
21.8appropriated under this paragraph for the
21.9purposes specified in paragraph (c).

21.10

(c) Criminal Reporting System

21.11$1,360,000 the first year and $1,360,000 the
21.12second year from the general fund are to
21.13replace the state's crime reporting system
21.14 and include one full-time equivalent business
21.15analyst. This is a onetime appropriation
21.16and is available until expended. Of these
21.17amounts, $1,360,000 the first year and
21.18$1,360,000 $1,290,000 the second year
21.19are for a onetime transfer to the Office of
21.20Enterprise Technology for start-up costs.
21.21Service level agreements must document all
21.22project-related transfers under this paragraph.
21.23Ongoing operating and support costs for this
21.24system shall be identified and incorporated
21.25into future service level agreements.
21.26The commissioner is authorized to use funds
21.27appropriated under this paragraph for the
21.28purposes specified in paragraph (b).

21.29

(d) Forensic Laboratory

21.30$125,000 the first year and $125,000 the
21.31second year from the general fund and,
21.32notwithstanding Minnesota Statutes, section
21.33161.20, subdivision 3 , $125,000 the first
21.34year and $125,000 the second year from the
21.35trunk highway fund are to replace forensic
22.1laboratory equipment at the Bureau of
22.2Criminal Apprehension.
22.3$200,000 the first year and $200,000 the
22.4second year from the general fund and,
22.5notwithstanding Minnesota Statutes, section
22.6161.20, subdivision 3 , $200,000 the first
22.7year and $200,000 the second year from the
22.8trunk highway fund are to improve forensic
22.9laboratory staffing at the Bureau of Criminal
22.10Apprehension.

22.11

(e) Livescan Fingerprinting

22.12$310,000 the first year and $389,000 the
22.13second year from the general fund are to
22.14maintain Livescan fingerprinting machines.
22.15This is a onetime appropriation.

22.16

(f) General Fund Base

22.17The Bureau of Criminal Apprehension's
22.18general fund base is reduced by $1,720,000
22.19in fiscal year 2014 and $2,329,000 in fiscal
22.20year 2015 to reflect onetime appropriations.

22.21

(g) Report

22.22If the vehicle services special revenue account
22.23accrues an unallocated balance in excess
22.24of 50 percent of the previous fiscal year's
22.25expenditures, the commissioner of public
22.26safety shall submit a report to the chairs
22.27and ranking minority members of the house
22.28of representatives and senate committees
22.29with jurisdiction over transportation and
22.30public safety policy and finance. The report
22.31must contain specific policy and legislative
22.32recommendations for reducing the fund
22.33balance and avoiding future excessive fund
22.34balances. The report is due within three
23.1months of the fund balance exceeding the
23.2threshold established in this paragraph.

23.3    Sec. 9. Laws 2013, chapter 86, article 1, section 12, subdivision 4, is amended to read:

23.4 23.5

Subd. 4.Fire Marshal

9,555,000 10,855,000

9,555,000

23.6This appropriation is from the fire safety
23.7account in the special revenue fund and is for
23.8activities under Minnesota Statutes, section
23.9299F.012 .
23.10Of this amount: (1) $7,187,000 each year
23.11is for activities under Minnesota Statutes,
23.12section 299F.012; and (2) $2,368,000 the first
23.13year and $2,368,000 the second year are for
23.14transfers to the general fund under Minnesota
23.15Statutes, section 297I.06, subdivision 3.
23.16$1,300,000 in fiscal year 2014 is appropriated
23.17for activities and programs under Minnesota
23.18Statutes, section 299F.012. This is a onetime
23.19appropriation. By January 1, 2015, the
23.20commissioner of public safety shall report to
23.21the chairs and ranking minority members of
23.22the legislative committees with jurisdiction
23.23over the fire safety account regarding the
23.24balances and uses of the account.

23.25    Sec. 10. Laws 2013, chapter 86, article 1, section 12, subdivision 6, is amended to read:

23.26 23.27

Subd. 6.Office of Justice Programs

36,106,000

36,106,000 37,206,000

23.28	Appropriations by Fund
23.29 23.30	General	36,010,000	36,010,000 37,110,000
23.31 23.32	State Government Special Revenue	96,000	96,000

23.33

(a) OJP Administration Costs

24.1Up to 2.5 percent of the grant funds
24.2appropriated in this subdivision may be used
24.3by the commissioner to administer the grant
24.4program.

24.5

(b) Crime Victim Programs

24.6$1,500,000 each year must be distributed
24.7through an open and competitive grant
24.8process for existing crime victim programs.
24.9The funds must be used to meet the needs
24.10of underserved and unserved areas and
24.11populations.

24.12

(c) Community Offender Reentry Program

24.13$100,000 each year is for a grant to the
24.14community offender reentry program for
24.15assisting individuals to transition from
24.16incarceration to the communities in and
24.17around Duluth, including assistance in
24.18finding housing, employment, educational
24.19opportunities, counseling, and other
24.20resources. This is a onetime appropriation.

24.21

(d) Youth Intervention Programs

24.22$1,000,000 each year in fiscal year 2014
24.23and $1,750,000 in fiscal year 2015 is
24.24for youth intervention programs under
24.25Minnesota Statutes, section 299A.73. The
24.26appropriations must be used to create new
24.27programs statewide in underserved areas
24.28and to help existing programs serve unmet
24.29needs in program communities. Of this
24.30amount, $100,000 in fiscal year 2015 is for a
24.31youth intervention program targeted toward
24.32East African youth. These appropriations
24.33are available until expended. This amount
24.34 $2,000,000 must be added to the department's
25.1base budget in 2016 and 2017 for grants to
25.2youth intervention programs.
25.3(e) Sexually Exploited Youth; Law
25.4Enforcement and Prosecution Training
25.5$350,000 each year is for a grant to Ramsey
25.6County to be used by the Ramsey County
25.7Attorney's Office to:
25.8(1) develop a statewide model protocol for
25.9law enforcement, prosecutors, and others,
25.10who in their professional capacity encounter
25.11sexually exploited and trafficked youth, on
25.12identifying and intervening with sexually
25.13exploited and trafficked youth;
25.14(2) conduct statewide training for law
25.15enforcement and prosecutors on the model
25.16protocol and the Safe Harbor Law described
25.17in Laws 2011, First Special Session chapter
25.181, article 4, as modified by Senate File No.
25.19384, article 2, if enacted; and
25.20(3) develop and disseminate to law
25.21enforcement, prosecutors, and others, who
25.22in their professional capacity encounter
25.23sexually exploited and trafficked youth, on
25.24investigative best practices to identify sex
25.25trafficked victims and traffickers.
25.26The Ramsey County attorney may use the
25.27money appropriated in this paragraph to
25.28partner with other entities to implement
25.29clauses (1) to (3).
25.30By January 15, 2015, the Ramsey County
25.31Attorney's Office shall report to the chairs
25.32and ranking minority members of the senate
25.33and house of representatives committees and
25.34divisions having jurisdiction over criminal
26.1justice policy and funding on how this
26.2appropriation was spent.
26.3These appropriations are onetime.
26.4(f) Returning Veterans in Crisis
26.5$50,000 each year is for a grant to the Upper
26.6Midwest Community Policing Institute for
26.7use in training community safety personnel
26.8about the use of de-escalation strategies
26.9for handling returning veterans in crisis.
26.10This is a onetime appropriation, and the
26.11unencumbered balance in the first year does
26.12not cancel but is available for the second
26.13year. The commissioner shall consult with
26.14the Peace Officers Standards and Training
26.15(POST) Board regarding the design and
26.16content of the course, and must also ensure
26.17that the training opportunities are reasonably
26.18distributed throughout the state.
26.19(g) Juvenile Detention Alternative
26.20Initiative
26.21$50,000 each year is for a grant to the
26.22Juvenile Detention Alternative Initiative.
26.23This is a onetime appropriation, and funds
26.24unexpended in the first year are available in
26.25the second year.
26.26(h) Emergency Shelters
26.27$300,000 in fiscal year 2015 is for a grant to
26.28provide emergency shelter programming for
26.29victims of domestic abuse and trafficking.
26.30The program shall provide shelter to East
26.31African women and children and other
26.32victims of domestic violence in Minnesota.
26.33The appropriations must be used for the
26.34operating expenses of a shelter.
27.1This is a onetime appropriation.
27.2(i) De-escalation Training
27.3$50,000 in fiscal year 2015 is appropriated to
27.4the commissioner of public safety for training
27.5state and local community safety personnel
27.6in the use of crisis de-escalation techniques.
27.7The commissioner must consult with the
27.8director of the Minnesota Peace Officers and
27.9Training Board, and may consult with any
27.10other state or local governmental official or
27.11nongovernmental authority the commissioner
27.12determines to be relevant, to include
27.13postsecondary institutions, when selecting a
27.14service provider for this training. Among any
27.15other criteria the commissioner may establish
27.16for the selection, the training provider must
27.17have a demonstrated understanding of the
27.18transitions and challenges that veterans may
27.19experience during their re-entry into society
27.20following combat service. The commissioner
27.21must ensure that training opportunities
27.22provided are reasonably distributed
27.23statewide. This is a onetime appropriation.

27.24    Sec. 11. Laws 2013, chapter 86, article 1, section 12, subdivision 7, is amended to read:

27.25 27.26

Subd. 7.Emergency Communication Networks

59,138,000 64,197,000

63,639,000 70,504,000

27.27This appropriation is from the state
27.28government special revenue fund for 911
27.29emergency telecommunications services.
27.30 The base appropriation is $63,639,000 in
27.31each of fiscal years 2016 and 2017.

27.32

(a) Public Safety Answering Points

28.1$13,664,000 each year is to be distributed
28.2as provided in Minnesota Statutes, section
28.3403.113, subdivision 2 .

28.4

(b) Medical Resource Communication Centers

28.5$683,000 each year is for grants to the
28.6Minnesota Emergency Medical Services
28.7Regulatory Board for the Metro East
28.8and Metro West Medical Resource
28.9Communication Centers that were in
28.10operation before January 1, 2000.

28.11

(c) ARMER Debt Service

28.12$23,261,000 each year is to the commissioner
28.13of management and budget to pay debt
28.14service on revenue bonds issued under
28.15Minnesota Statutes, section 403.275.
28.16Any portion of this appropriation not needed
28.17to pay debt service in a fiscal year may be
28.18used by the commissioner of public safety to
28.19pay cash for any of the capital improvements
28.20for which bond proceeds were appropriated
28.21by Laws 2005, chapter 136, article 1, section
28.229, subdivision 8; or Laws 2007, chapter 54,
28.23article 1, section 10, subdivision 8.

28.24

(d) ARMER State Backbone Operating Costs

28.25$9,250,000 the first year and $9,650,000
28.26the second year are to the commissioner of
28.27transportation for costs of maintaining and
28.28operating the first and third phases of the
28.29statewide radio system backbone.

28.30

(e) ARMER Improvements

28.31$1,000,000 each year is to the Statewide
28.32Radio Board for costs of design, construction,
28.33and maintenance of, and improvements
28.34to, those elements of the statewide public
29.1safety radio and communication system
29.2that support mutual aid communications
29.3and emergency medical services or provide
29.4interim enhancement of public safety
29.5communication interoperability in those
29.6areas of the state where the statewide public
29.7safety radio and communication system is
29.8not yet implemented.

29.9    Sec. 12. Laws 2013, chapter 117, article 1, section 3, subdivision 2, is amended to read:

29.10

Subd. 2.Multimodal Systems

29.11(a) Aeronautics

29.12 29.13

(1) Airport Development and Assistance

13,648,000 14,648,000

13,648,000 16,648,000

29.14This appropriation is from the state
29.15airports fund and must be spent according
29.16to Minnesota Statutes, section 360.305,
29.17subdivision 4 .
29.18The base appropriation for fiscal years 2016
29.19and 2017 is $14,298,000 for each year.
29.20Notwithstanding Minnesota Statutes, section
29.2116A.28, subdivision 6 , this appropriation is
29.22available for five years after appropriation.
29.23If the appropriation for either year is
29.24insufficient, the appropriation for the other
29.25year is available for it.
29.26For the current biennium, the commissioner
29.27of transportation may establish different
29.28local contribution rates for airport projects
29.29than those established in Minnesota Statutes,
29.30section 360.305, subdivision 4.

29.31

(2) Aviation Support and Services

6,386,000

6,386,000

30.1	Appropriations by Fund
30.2	Airports	5,286,000	5,286,000
30.3	Trunk Highway	1,100,000	1,100,000

30.4$65,000 in each year is from the state airports
30.5fund for the Civil Air Patrol.

30.6 30.7

(b) Transit

17,226,000

17,245,000 25,245,000

30.8	Appropriations by Fund
30.9 30.10	General	16,451,000	16,470,000 24,470,000
30.11	Trunk Highway	775,000	775,000

30.12$100,000 in each year is from the general
30.13fund for the administrative expenses of the
30.14Minnesota Council on Transportation Access
30.15under Minnesota Statutes, section 174.285.
30.16$78,000 in each year is from the general
30.17fund for grants to greater Minnesota transit
30.18providers as reimbursement for the costs of
30.19providing fixed route public transit rides free
30.20of charge under Minnesota Statutes, section
30.21174.24, subdivision 7 , for veterans certified
30.22as disabled.
30.23The base appropriation from the general fund
30.24for fiscal years 2016 and 2017 is $20,470,000
30.25for each year.

30.26

(c) Passenger Rail

500,000

500,000

30.27This appropriation is from the general
30.28fund for passenger rail system planning,
30.29alternatives analysis, environmental analysis,
30.30design, and preliminary engineering under
30.31Minnesota Statutes, sections 174.632 to
30.32174.636 .

30.33

(d) Freight

5,653,000

5,153,000

31.1	Appropriations by Fund
31.2	General	756,000	256,000
31.3	Trunk Highway	4,897,000	4,897,000

31.4$500,000 in the first year is from the general
31.5fund to pay for the department's share of costs
31.6associated with the cleanup of contaminated
31.7state rail bank property. This appropriation is
31.8available until expended.

31.9 31.10

(e) Safe Routes to School

250,000

250,000 500,000

31.11This appropriation $250,000 in the first
31.12year and $500,000 in the second year is
31.13from the general fund for non-infrastructure
31.14activities in the safe routes to school program
31.15under Minnesota Statutes, section 174.40,
31.16subdivision 7a .
31.17EFFECTIVE DATE.This section is effective the day following final enactment.

31.18    Sec. 13. Laws 2013, chapter 117, article 1, section 3, subdivision 3, is amended to read:

31.19

Subd. 3.State Roads

31.20 31.21

(a) Operations and Maintenance

262,395,000 267,395,000

262,395,000 300,395,000

31.22$5,000,000 in each year is from the trunk
31.23highway fund for accelerated replacement of
31.24snow plowing equipment.
31.25The base appropriation for operations and
31.26maintenance for fiscal years 2016 and 2017
31.27is $267,395,000 in each year.

31.28 31.29

(b) Program Planning and Delivery

206,795,000

206,720,000 209,720,000

31.30	Appropriations by Fund
31.31		2014	2015
31.32	H.U.T.D.	75,000	0
31.33 31.34	Trunk Highway	206,720,000	206,720,000 209,720,000

32.1The base appropriation for program planning
32.2and delivery for fiscal years 2016 and 2017
32.3is $206,720,000 in each year.
32.4$250,000 in each year is for the department's
32.5administrative costs for creation and
32.6operation of the Joint Program Office for
32.7Economic Development and Alternative
32.8Finance, including costs of hiring a
32.9consultant and preparing required reports.
32.10$130,000 in each year is available for
32.11administrative costs of the targeted group
32.12business program.
32.13$266,000 in each year is available for grants
32.14to metropolitan planning organizations
32.15outside the seven-county metropolitan area.
32.16$75,000 in each year is available for a
32.17transportation research contingent account
32.18to finance research projects that are
32.19reimbursable from the federal government or
32.20from other sources. If the appropriation for
32.21either year is insufficient, the appropriation
32.22for the other year is available for it.
32.23$900,000 in each year is available for
32.24grants for transportation studies outside
32.25the metropolitan area to identify critical
32.26concerns, problems, and issues. These
32.27grants are available: (1) to regional
32.28development commissions; (2) in regions
32.29where no regional development commission
32.30is functioning, to joint powers boards
32.31established under agreement of two or
32.32more political subdivisions in the region to
32.33exercise the planning functions of a regional
32.34development commission; and (3) in regions
32.35where no regional development commission
33.1or joint powers board is functioning, to the
33.2department's district office for that region.
33.3$75,000 in the first year is from the highway
33.4user tax distribution fund to the commissioner
33.5for a grant to the Humphrey School of Public
33.6Affairs at the University of Minnesota for
33.7WorkPlace Telework program congestion
33.8relief efforts consisting of maintenance of
33.9Web site tools and content. This is a onetime
33.10appropriation and is available in the second
33.11year.

33.12

(c) State Road Construction Activity

33.13 33.14

(1) Economic Recovery Funds - Federal Highway Aid

1,000,000

1,000,000

33.15This appropriation is to complete projects
33.16using funds made available to the
33.17commissioner of transportation under
33.18title XII of the American Recovery and
33.19Reinvestment Act of 2009, Public Law
33.20111-5, and implemented under Minnesota
33.21Statutes, section 161.36, subdivision 7. The
33.22base appropriation is $1,000,000 in fiscal
33.23year 2016 and $0 in fiscal year 2017.

33.24 33.25

(2) State Road Construction

909,400,000 923,400,000

815,600,000 816,425,000

33.26It is estimated that these appropriations will
33.27be funded as follows:

33.28	Appropriations by Fund
33.29 33.30	Federal Highway Aid	489,200,000	482,200,000
33.31 33.32	Highway User Taxes	420,200,000 434,200,000	333,400,000 334,225,000

33.33The commissioner of transportation shall
33.34notify the chairs and ranking minority
33.35members of the legislative committees with
33.36jurisdiction over transportation finance of
34.1any significant events that should cause these
34.2estimates to change.
34.3This appropriation is for the actual
34.4construction, reconstruction, and
34.5improvement of trunk highways, including
34.6design-build contracts and consultant usage
34.7to support these activities. This includes the
34.8cost of actual payment to landowners for
34.9lands acquired for highway rights-of-way,
34.10payment to lessees, interest subsidies, and
34.11relocation expenses.
34.12The base appropriation for state road
34.13construction for fiscal years 2016 and 2017
34.14is $645,000,000 $645,567,000 in each year.
34.15$10,000,000 in each year is from the
34.16trunk highway fund for the transportation
34.17economic development program under
34.18Minnesota Statutes, section 174.12.
34.19The commissioner may expend up to one-half
34.20of one percent of the federal appropriations
34.21under this clause as grants to opportunity
34.22industrialization centers and other nonprofit
34.23job training centers for job training programs
34.24related to highway construction.
34.25The commissioner may transfer up to
34.26$15,000,000 each year from the trunk
34.27highway fund to the transportation revolving
34.28loan fund.
34.29The commissioner may receive money
34.30covering other shares of the cost of
34.31partnership projects. These receipts are
34.32appropriated to the commissioner for these
34.33projects.
35.1$14,000,000 in the first year is from the trunk
35.2highway fund for the specific improvements
35.3to "Old Highway 14" described in the
35.4settlement agreement and release executed
35.5January 7, 2014, between the state and Steele
35.6and Waseca Counties.
35.7$825,000 in the second year is from the trunk
35.8highway fund for costs of implementing
35.9highway work zone safety initiatives.
35.10The base appropriation for this purpose is
35.11$567,000 in each of fiscal years 2016 and
35.122017.

35.13

(d) Highway Debt Service

158,417,000

189,821,000

35.14$148,917,000 in the first year and
35.15$180,321,000 in the second year are for
35.16transfer to the state bond fund. If an
35.17appropriation is insufficient to make all
35.18transfers required in the year for which it is
35.19made, the commissioner of management and
35.20budget shall notify the senate Committee
35.21on Finance and the house of representatives
35.22Committee on Ways and Means of the
35.23amount of the deficiency and shall then
35.24transfer that amount under the statutory open
35.25appropriation. Any excess appropriation
35.26cancels to the trunk highway fund.

35.27

(e) Electronic Communications

5,171,000

5,171,000

35.28	Appropriations by Fund
35.29	General	3,000	3,000
35.30	Trunk Highway	5,168,000	5,168,000

35.31The general fund appropriation is to equip
35.32and operate the Roosevelt signal tower for
35.33Lake of the Woods weather broadcasting.
35.34EFFECTIVE DATE.This section is effective the day following final enactment.

36.1    Sec. 14. Laws 2013, chapter 117, article 1, section 3, subdivision 6, is amended to read:

36.2

Subd. 6.Transfers

36.3(a) With the approval of the commissioner of
36.4management and budget, the commissioner
36.5of transportation may transfer unencumbered
36.6balances among the appropriations from the
36.7trunk highway fund and the state airports
36.8fund made in this section. No transfer
36.9may be made from the appropriations for
36.10state road construction or for debt service.
36.11Transfers under this paragraph may not be
36.12made between funds. Transfers under this
36.13paragraph must be reported immediately to
36.14the chairs and ranking minority members of
36.15the legislative committees with jurisdiction
36.16over transportation finance.
36.17(b) The commissioner shall transfer from
36.18the flexible highway account in the county
36.19state-aid highway fund: (1) $5,700,000 in the
36.20first year and $21,000,000 in the second year
36.21to the trunk highway fund; (2) $13,000,000
36.22in the first year to the municipal turnback
36.23account in the municipal state-aid street fund;
36.24(3) $10,000,000 in the second year to the
36.25municipal turnback account in the municipal
36.26state-aid street fund; and (4) the remainder
36.27in each year to the county turnback account
36.28in the county state-aid highway fund. The
36.29funds transferred are for highway turnback
36.30purposes as provided under Minnesota
36.31Statutes, section 161.081, subdivision 3.

36.32    Sec. 15. Laws 2013, chapter 117, article 1, section 4, is amended to read:

36.33 36.34

Sec. 4. METROPOLITAN COUNCIL

$

107,889,000

$

76,970,000 76,910,000

37.1This appropriation is from the general fund
37.2for transit system operations under Minnesota
37.3Statutes, sections 473.371 to 473.449.
37.4The base appropriation for fiscal years 2016
37.5and 2017 is $76,686,000 $76,626,000 in
37.6each year.
37.7$37,000,000 in the first year is for the
37.8Southwest Corridor light rail transit line
37.9from the Hiawatha light rail transit line in
37.10downtown Minneapolis to Eden Prairie, to be
37.11used for environmental studies, preliminary
37.12engineering, acquisition of real property, or
37.13interests in real property, and design. This
37.14is a onetime appropriation and is available
37.15until expended.

37.16    Sec. 16. Laws 2013, chapter 117, article 1, section 5, subdivision 2, is amended to read:

37.17

Subd. 2.Administration and Related Services

37.18

(a) Office of Communications

504,000

504,000

37.19	Appropriations by Fund
37.20	General	111,000	111,000
37.21	Trunk Highway	393,000	393,000

37.22 37.23

(b) Public Safety Support

8,439,000

8,439,000 8,499,000

37.24	Appropriations by Fund
37.25 37.26	General	3,467,000	3,467,000 3,527,000
37.27	H.U.T.D.	1,366,000	1,366,000
37.28	Trunk Highway	3,606,000	3,606,000

37.29$380,000 in each year is from the general
37.30fund for payment of public safety officer
37.31survivor benefits under Minnesota Statutes,
37.32section 299A.44. If the appropriation for
37.33either year is insufficient, the appropriation
37.34for the other year is available for it.
38.1$1,367,000 in each year is from the general
38.2fund to be deposited in the public safety
38.3officer's benefit account. This money
38.4is available for reimbursements under
38.5Minnesota Statutes, section 299A.465.
38.6$600,000 in each year is from the general
38.7fund and $100,000 in each year is from the
38.8trunk highway fund for soft body armor
38.9reimbursements under Minnesota Statutes,
38.10section 299A.38.
38.11$792,000 in each year is from the general
38.12fund for transfer by the commissioner of
38.13management and budget to the trunk highway
38.14fund on December 31, 2013, and December
38.1531, 2014, respectively, in order to reimburse
38.16the trunk highway fund for expenses not
38.17related to the fund. These represent amounts
38.18appropriated out of the trunk highway
38.19fund for general fund purposes in the
38.20administration and related services program.
38.21$610,000 in each year is from the highway
38.22user tax distribution fund for transfer by the
38.23commissioner of management and budget
38.24to the trunk highway fund on December 31,
38.252013, and December 31, 2014, respectively,
38.26in order to reimburse the trunk highway
38.27fund for expenses not related to the fund.
38.28These represent amounts appropriated out
38.29of the trunk highway fund for highway
38.30user tax distribution fund purposes in the
38.31administration and related services program.
38.32$716,000 in each year is from the highway
38.33user tax distribution fund for transfer by the
38.34commissioner of management and budget to
38.35the general fund on December 31, 2013, and
39.1December 31, 2014, respectively, in order to
39.2reimburse the general fund for expenses not
39.3related to the fund. These represent amounts
39.4appropriated out of the general fund for
39.5operation of the criminal justice data network
39.6related to driver and motor vehicle licensing.
39.7Before January 15, 2015, the commissioner
39.8of public safety shall review the amounts and
39.9purposes of the transfers under this paragraph
39.10and shall recommend necessary changes to
39.11the legislative committees with jurisdiction
39.12over transportation finance.
39.13$60,000 in the second year is appropriated
39.14from the general fund for light rail safety
39.15oversight. The base appropriation from the
39.16general fund for this purpose in fiscal years
39.172016 and 2017 is $60,000 each year.

39.18

(c) Technology and Support Service

3,685,000

3,685,000

39.19	Appropriations by Fund
39.20	General	1,322,000	1,322,000
39.21	H.U.T.D.	19,000	19,000
39.22	Trunk Highway	2,344,000	2,344,000

39.23    Sec. 17. Laws 2013, chapter 117, article 1, section 5, subdivision 3, is amended to read:

39.24

Subd. 3.State Patrol

39.25

(a) Patrolling Highways

72,522,000

72,522,000

39.26	Appropriations by Fund
39.27	General	37,000	37,000
39.28	H.U.T.D.	92,000	92,000
39.29	Trunk Highway	72,393,000	72,393,000

39.30

(b) Commercial Vehicle Enforcement

7,796,000

7,796,000

39.31 39.32

(c) Capitol Security

4,355,000

4,355,000 5,355,000

39.33This appropriation is from the general fund.
40.1$1,250,000 in each year 2014 and $2,250,000
40.2in 2015 and each subsequent year is to
40.3implement the recommendations of the
40.4advisory committee on Capitol Area Security
40.5under Minnesota Statutes, section 299E.04,
40.6including the creation of an emergency
40.7manager position under Minnesota Statutes,
40.8section 299E.01, subdivision 2, and an
40.9increase in the number of State Patrol
40.10troopers and other security officers assigned
40.11to the Capitol complex.
40.12The commissioner may not: (1) spend
40.13any money from the trunk highway fund
40.14for capitol security; or (2) permanently
40.15transfer any state trooper from the patrolling
40.16highways activity to capitol security.
40.17The commissioner may not transfer any
40.18money appropriated to the commissioner
40.19under this section: (1) to capitol security; or
40.20(2) from capitol security.

40.21

(d) Vehicle Crimes Unit

693,000

693,000

40.22This appropriation is from the highway user
40.23tax distribution fund.
40.24This appropriation is to investigate: (1)
40.25registration tax and motor vehicle sales tax
40.26liabilities from individuals and businesses
40.27that currently do not pay all taxes owed;
40.28and (2) illegal or improper activity related
40.29to sale, transfer, titling, and registration of
40.30motor vehicles.

40.31    Sec. 18. Laws 2013, chapter 117, article 1, section 5, subdivision 4, is amended to read:

40.32

Subd. 4.Driver and Vehicle Services

40.33 40.34

(a) Vehicle Services

27,909,000

28,430,000 28,453,000

41.1	Appropriations by Fund
41.2 41.3	Special Revenue	19,673,000	19,771,000 20,217,000
41.4	H.U.T.D.	8,236,000	8,236,000

41.5The special revenue fund appropriation is
41.6from the vehicle services operating account.
41.7$650,000 in each year is from the special
41.8revenue fund for seven additional positions
41.9to enhance customer service related to
41.10vehicle title issuance.
41.11$521,000 in the second year is from
41.12the special revenue fund for the vehicle
41.13services portion of a new telephone
41.14system and is for transfer to the Office of
41.15Enterprise Technology for construction and
41.16development of the system. This is a onetime
41.17appropriation and is available until expended.
41.18$23,000 in the second year is from the special
41.19revenue fund for expenses related to the task
41.20force on motor vehicle insurance coverage
41.21verification.
41.22The base appropriation from the special
41.23revenue fund is $27,909,000 $19,673,000
41.24for fiscal year 2016 and $27,909,000
41.25 $19,673,000 for fiscal year 2017.

41.26 41.27

(b) Driver Services

28,749,000

29,162,000 29,185,000

41.28	Appropriations by Fund
41.29 41.30	Special Revenue	28,748,000	29,161,000 29,184,000
41.31	Trunk Highway	1,000	1,000

41.32The special revenue fund appropriation is
41.33from the driver services operating account.
42.1$71,000 in the second year is from the special
42.2revenue fund for one additional position
42.3related to facial recognition.
42.4$279,000 in the second year is from
42.5the special revenue fund for the driver
42.6services portion of a new telephone
42.7system and is for transfer to the Office of
42.8Enterprise Technology for construction and
42.9development of the system. This is a onetime
42.10appropriation and is available until expended.
42.11$37,000 in the first year and $33,000 in the
42.12second year are from the special revenue
42.13fund for one half-time position to assist with
42.14the Novice Driver Improvement Task Force
42.15under Minnesota Statutes, section 171.0701,
42.16subdivision 1a . The base appropriation for
42.17this position is $6,000 in fiscal year 2016 and
42.18$0 in fiscal year 2017.
42.19$67,000 in the second year is from the
42.20special revenue fund for one new position to
42.21administer changes to the ignition interlock
42.22program. The base appropriation for this
42.23position in fiscal years 2016 and 2017 is
42.24$62,000 in each year.
42.25$23,000 in the second year is from the special
42.26revenue fund for expenses related to the task
42.27force on motor vehicle insurance coverage
42.28verification.
42.29The base appropriation from the special
42.30revenue fund is $28,851,000 $28,850,000
42.31for fiscal year 2016 and $28,845,000
42.32 $28,844,000 for fiscal year 2017.

42.33    Sec. 19. TRANSFER; EMERGENCY MANAGEMENT.
43.1On July 1, 2014, the commissioner of management and budget shall transfer
43.2$3,000,000 from the general fund to the disaster assistance contingency account created
43.3in 2014 Senate File No. 2601, if enacted.

43.4ARTICLE 3

43.5RAILROAD SAFETY

43.6    Section 1. Minnesota Statutes 2012, section 115E.08, is amended by adding a
43.7subdivision to read:
43.8    Subd. 3a. Railroad preparedness; public safety. The commissioner of public
43.9safety shall carry out public safety protection activities related to railroad spill and
43.10discharge preparedness. Duties under this subdivision include, but are not limited to:
43.11(1) assisting local emergency managers and fire officials to understand the hazards
43.12of oil and hazardous substances, as well as general strategies for hazard identification,
43.13initial isolation, and other actions necessary to ensure public safety;
43.14(2) assisting railroad companies to develop suggested protocols and practices for
43.15local first responder use in protecting the public's safety;
43.16(3) facilitating cooperation between railroads, county and city emergency managers,
43.17and other public safety organizations;
43.18(4) participating in major exercises and training sessions;
43.19(5) assisting local units of government to incorporate railroad hazard and response
43.20information into local emergency operations plans;
43.21(6) monitoring the public safety-related training and planning requirements of
43.22section 115E.03; and
43.23(7) referring noncompliance with section 115E.03 to the Pollution Control Agency.
43.24EFFECTIVE DATE.This section is effective the day following final enactment.

43.25    Sec. 2. Minnesota Statutes 2012, section 219.015, subdivision 1, is amended to read:
43.26    Subdivision 1. Position Positions established; duties. (a) The commissioner of
43.27transportation shall establish a position of three state rail safety inspector positions in
43.28the Office of Freight and Commercial Vehicle Operations of the Minnesota Department
43.29of Transportation. On or after July 1, 2015, the commissioner may establish a fourth
43.30state rail safety inspector position following consultation with railroad companies.
43.31 The commissioner shall apply to and enter into agreements with the Federal Railroad
43.32Administration (FRA) of the United States Department of Transportation to participate
43.33in the federal State Rail Safety Partnership Participation Program for training and
44.1certification of an inspector under authority of United States Code, title 49, sections 20103,
44.220105, 20106, and 20113, and Code of Federal Regulations, title 49, part 212.
44.3     The(b) A state rail safety inspector shall inspect mainline track, secondary track, and
44.4yard and industry track; inspect railroad right-of-way, including adjacent or intersecting
44.5drainage, culverts, bridges, overhead structures, and traffic and other public crossings;
44.6inspect yards and physical plants; review and enforce safety requirements; review
44.7maintenance and repair records; and review railroad security measures.
44.8(c) A state rail safety inspector may perform, but is not limited to, the duties
44.9described in the federal State Rail Safety Participation Program. An inspector may train,
44.10be certified, and participate in any of the federal State Rail Safety Participation Program
44.11disciplines, including: track, signal and train control, motive power and equipment,
44.12operating practices compliance, hazardous materials, and highway-rail grade crossings.
44.13    (d) To the extent delegated by the Federal Railroad Administration and authorized
44.14 by the commissioner, the an inspector may issue citations for violations of this chapter, or
44.15to ensure railroad employee and public safety and welfare.
44.16EFFECTIVE DATE.This section is effective the day following final enactment.

44.17    Sec. 3. Minnesota Statutes 2012, section 219.015, subdivision 2, is amended to read:
44.18    Subd. 2. Railroad company assessment; account; appropriation. (a) As provided
44.19in this subdivision, the commissioner shall annually assess railroad companies that are
44.20(1) defined as common carriers under section 218.011,; (2) classified by federal law or
44.21regulation as Class I Railroads, or Class I Rail Carriers, Class II Railroads, or Class II
44.22Carriers; and (3) operating in this state,.
44.23    (b) The assessment must be by a division of state rail safety inspector program costs
44.24in equal proportion between carriers based on route miles operated in Minnesota, assessed
44.25in equal amounts for 365 days of the calendar year. The commissioner shall assess all
44.26start-up or re-establishment costs, and all related costs of initiating the state rail safety
44.27inspector program beginning July 1, 2008. The, and ongoing state rail inspector duties
44.28must begin and be assessed on January 1, 2009.
44.29    (c) The assessments must be deposited in a special account in the special revenue
44.30fund, to be known as the state rail safety inspection account. Money in the account is
44.31appropriated to the commissioner and may be expended to cover the costs incurred for the
44.32establishment and ongoing responsibilities of the state rail safety inspector program.
44.33EFFECTIVE DATE.This section is effective the day following final enactment.

45.1    Sec. 4. [299A.55] RAILROAD SAFETY; OIL AND OTHER HAZARDOUS
45.2MATERIALS.
45.3    Subdivision 1. Definitions. (a) For purposes of this section, the following terms
45.4have the meanings given.
45.5(b) "Applicable rail carrier" means a railroad company that is subject to an
45.6assessment under section 219.015, subdivision 2.
45.7(c) "Hazardous substance" has the meaning given in section 115B.02, subdivision 8.
45.8(d) "Oil" has the meaning given in section 115E.01, subdivision 8.
45.9    Subd. 2. Railroad safety account. (a) A railroad safety account is created in the
45.10special revenue fund. The account consists of funds collected under subdivision 4 and
45.11funds donated, allotted, transferred, or otherwise provided to the account.
45.12(b) Money in the account is annually appropriated to the commissioner of public
45.13safety for the purposes specified in subdivision 3.
45.14    Subd. 3. Allocation of railroad safety funds. (a) Subject to funding appropriated
45.15for this subdivision, the commissioner shall provide funds for training and response
45.16preparedness related to derailments, discharge incidents, or spills involving trains carrying
45.17oil or other hazardous substances.
45.18(b) The commissioner shall allocate available funds to the Board of Firefighter
45.19Training and Education under section 299N.02 and the Division of Homeland Security
45.20and Emergency Management.
45.21(c) Prior to making allocations under paragraph (b), the commissioner shall consult
45.22with the Fire Service Advisory Committee under section 299F.012, subdivision 2.
45.23(d) The commissioner and the entities identified in paragraph (b) shall prioritize
45.24uses of funds based on:
45.25(1) firefighter training needs;
45.26(2) community risk from discharge incidents or spills;
45.27(3) geographic balance; and
45.28(4) recommendations of the Fire Service Advisory Committee.
45.29(e) The following are permissible uses of funds provided under this subdivision:
45.30(1) training costs, which may include, but are not limited to, training curriculum,
45.31trainers, trainee overtime salary, other personnel overtime salary, and tuition;
45.32(2) costs of gear and equipment related to hazardous materials readiness, response,
45.33and management, which may include, but are not limited to, original purchase,
45.34maintenance, and replacement;
45.35(3) supplies related to the uses under clauses (1) and (2); and
45.36(4) emergency preparedness planning and coordination.
46.1(f) Notwithstanding paragraph (b), from funds in the railroad safety account
46.2provided for the purposes under this subdivision, the commissioner may retain a balance
46.3in the account for budgeting in subsequent fiscal years.
46.4    Subd. 4. Assessment; oil and hazardous substances. (a) The commissioner of
46.5public safety shall annually assess $1,250,000 to railroad companies based on the formula
46.6specified in paragraph (b). The commissioner shall deposit funds collected under this
46.7subdivision in the railroad safety account under subdivision 2.
46.8(b) The assessment for each railroad is the total annual assessment amount, divided
46.9in equal proportion between applicable rail carriers based on route miles operated in
46.10Minnesota.
46.11(c) This subdivision expires on July 1, 2016.

46.12    Sec. 5. LEGISLATIVE REPORT ON INCIDENT PREPAREDNESS FOR OIL
46.13AND OTHER HAZARDOUS MATERIALS TRANSPORTATION BY RAIL.
46.14By January 15, 2015, the commissioner of public safety shall submit a report on
46.15incident and emergency response preparedness for oil and other hazardous materials
46.16transported by rail to the chairs and ranking minority members of the legislative
46.17committees with jurisdiction over transportation and public safety policy and finance.
46.18At a minimum, the report must:
46.19(1) summarize the preparedness and emergency response framework in the state;
46.20(2) provide an assessment of costs and needs of fire departments and other
46.21emergency first responders for training and equipment to respond to discharge or spill
46.22incidents involving oil and other hazardous materials transported by rail;
46.23(3) summarize the allocation and uses of funds under Minnesota Statutes, section
46.24299A.55; and
46.25(4) provide recommendations for any legislative changes.

46.26    Sec. 6. IMPROVEMENTS STUDY ON GRADE CROSSINGS AND
46.27RAIL SAFETY FOR OIL AND OTHER HAZARDOUS MATERIALS
46.28TRANSPORTATION.
46.29(a) The commissioner of transportation shall conduct a study on highway-rail grade
46.30crossing improvements for oil and other hazardous materials transported by rail, and on
46.31rail safety. At a minimum, the study must:
46.32(1) provide information that assists in risk management associated with
46.33transportation of oil and other hazardous materials by rail;
47.1(2) develop criteria to prioritize needs and improvements at highway-rail grade
47.2crossings;
47.3(3) consider alternatives for safety improvements including, but not limited to, active
47.4warning devices such as gates and signals, closings, and grade separation;
47.5(4) provide findings and recommendations that serve to direct accelerated
47.6investments in highway-rail grade crossing safety improvements; and
47.7(5) analyze state inspection activities and staffing for track and hazardous materials
47.8under Minnesota Statutes, section 219.015.
47.9(b) The commissioner shall submit an interim update on the study by August 31,
47.102014, and a final report by October 31, 2014, to the chairs and ranking minority members
47.11of the legislative committees with jurisdiction over transportation policy and finance.
47.12EFFECTIVE DATE.This section is effective the day following final enactment.

47.13ARTICLE 4

47.14TRANSPORTATION FINANCE PROVISIONS

47.15    Section 1. Minnesota Statutes 2012, section 165.15, subdivision 2, is amended to read:
47.16    Subd. 2. Use of funds. (a) Income derived from the investment of principal in the
47.17account may be used by the commissioner of transportation for operations and routine
47.18maintenance of the Stillwater lift bridge, including bridge safety inspections and reactive
47.19repairs. No money from this account may be used for any purposes except those described
47.20in this section, and no money from this account may be transferred to any other account
47.21in the state treasury without specific legislative authorization. Any money transferred
47.22from the trunk highway fund may only be used for trunk highway purposes. For the
47.23purposes of this section:
47.24(1) "Income" is the amount of interest on debt securities and dividends on equity
47.25securities. Any gains or losses from the sale of securities must be added to the principal
47.26of the account.
47.27(2) "Routine maintenance" means activities that are predictable and repetitive, but
47.28not activities that would constitute major repairs or rehabilitation.
47.29(b) Investment management fees incurred by the State Board of Investment are
47.30eligible expenses for reimbursement from the account.
47.31(c) The commissioner of transportation has authority to approve or deny expenditures
47.32of funds in the account.

47.33    Sec. 2. [168.1299] MINNESOTA GOLF PLATES.
48.1    Subdivision 1. Issuance and design. Notwithstanding section 168.1293, the
48.2commissioner shall issue special Minnesota golf plates or a single motorcycle plate to
48.3an applicant who:
48.4(1) is a registered owner of a passenger automobile, one-ton pickup truck,
48.5motorcycle, or recreational vehicle;
48.6(2) pays a fee of $10 and any other fees required by this chapter;
48.7(3) contributes a minimum of $30 annually after January 1, 2017, to the Minnesota
48.8Section PGA Foundation account; and
48.9(4) complies with this chapter and rules governing registration of motor vehicles
48.10and licensing of drivers.
48.11    Subd. 2. Design. After consultation with the Minnesota Section PGA and the
48.12Minnesota Golf Association, the commissioner shall design the special plate.
48.13    Subd. 3. Plates transfer. On payment of a fee of $5, plates issued under this section
48.14may be transferred to another passenger automobile, one-ton pickup truck, motorcycle,
48.15or other recreational vehicle registered to the individual to whom the special plates were
48.16issued.
48.17    Subd. 4. Fees. Fees collected under subdivision 1, clause (2), and subdivision 3 are
48.18credited to the vehicle services operating account in the special revenue fund.
48.19    Subd. 5. Contributions. Contributions collected under subdivision 1, clause (3),
48.20are credited first to the commissioner of public safety for the cost of administering the
48.21Minnesota Section PGA Foundation account, which is established in the special revenue
48.22fund. After the commissioner's administration costs are paid each year, remaining
48.23contributions are credited to the Minnesota Section PGA Foundation account. Money in
48.24the account is appropriated to the commissioner of public safety for distribution to the
48.25Minnesota Section PGA Foundation, to be used to enhance and promote the game of
48.26golf throughout Minnesota.
48.27EFFECTIVE DATE.Subdivisions 1 to 4 are effective January 1, 2015, for special
48.28Minnesota golf plates issued on or after that date. Subdivision 5 is effective January 1, 2017.

48.29    Sec. 3. Minnesota Statutes 2012, section 169.011, is amended by adding a subdivision
48.30to read:
48.31    Subd. 95. Work zone. "Work zone" means a segment of street or highway for which:
48.32(1) a road authority or its agent is constructing, reconstructing, or maintaining the
48.33physical structure of the roadway, which may include, but is not limited to, shoulders,
48.34features adjacent to the roadway, and utilities and highway appurtenances, whether
48.35underground or overhead; and
49.1(2) any of the following applies:
49.2(i) official traffic-control devices that indicate the segment of street or highway under
49.3construction, reconstruction, or maintenance, are erected;
49.4(ii) one or more lanes of traffic are closed;
49.5(iii) a flagger under section 169.06, subdivision 4a, is present;
49.6(iv) a construction zone speed limit under section 169.14, subdivision 4, is
49.7established; or
49.8(v) a workers present speed limit under section 169.14, subdivision 5d, is in effect.
49.9EFFECTIVE DATE.This section is effective August 1, 2014.

49.10    Sec. 4. Minnesota Statutes 2012, section 169.06, subdivision 4, is amended to read:
49.11    Subd. 4. Obedience to traffic-control signal or flagger authorized persons;
49.12presumptions. (a) The driver of any vehicle shall obey the instructions of any official
49.13traffic-control device applicable thereto placed in accordance with the provisions of this
49.14chapter, unless otherwise directed by a police officer or by a flagger authorized under this
49.15subdivision, subject to the exceptions granted the driver of an authorized emergency
49.16vehicle in this chapter.
49.17(b) No provision of this chapter for which official traffic-control devices are required
49.18shall be enforced against an alleged violator if at the time and place of the alleged
49.19violation an official device is not in proper position and sufficiently legible to be seen by
49.20an ordinarily observant person. Whenever a particular section does not state that official
49.21traffic-control devices are required, such section shall be effective even though no devices
49.22are erected or in place.
49.23(c) Whenever official traffic-control devices are placed in position approximately
49.24conforming to the requirements of this chapter, such devices shall be presumed to have
49.25been so placed by the official act or direction of lawful authority, unless the contrary
49.26shall be established by competent evidence.
49.27(d) Any official traffic-control device placed pursuant to the provisions of this
49.28chapter and purporting to conform to the lawful requirements pertaining to such devices
49.29shall be presumed to comply with the requirements of this chapter, unless the contrary
49.30shall be established by competent evidence.
49.31(e) A flagger in a designated work zone may stop vehicles and hold vehicles in place
49.32until it is safe for the vehicles to proceed. A person operating a motor vehicle that has
49.33been stopped by a flagger in a designated work zone may proceed after stopping only on
49.34instruction by the flagger.
50.1(f) An overdimensional load escort driver with a certificate issued under section
50.2299D.085 , while acting as a flagger escorting a legal overdimensional load, may stop
50.3vehicles and hold vehicles in place until it is safe for the vehicles to proceed. A person
50.4operating a motor vehicle that has been stopped by an escort driver acting as a flagger may
50.5proceed only on instruction by the flagger or a police officer.
50.6(g) (f) A person may stop and hold vehicles in place until it is safe for the vehicles to
50.7proceed, if the person: (1) holds a motorcycle road guard certificate issued under section
50.8171.60 ; (2) meets the safety and equipment standards for operating under the certificate;
50.9(3) is acting as a flagger escorting a motorcycle group ride; (4) has notified each statutory
50.10or home rule charter city through which the motorcycle group is proceeding; and (5)
50.11has obtained consent from the chief of police, or the chief's designee, of any city of the
50.12first class through which the group is proceeding. A flagger operating as provided under
50.13this paragraph may direct operators of motorcycles within a motorcycle group ride or
50.14other vehicle traffic, notwithstanding any contrary indication of a traffic-control device,
50.15including stop signs or traffic-control signals. A person operating a vehicle that has been
50.16stopped by a flagger under this paragraph may proceed only on instruction by the flagger
50.17or a police officer.
50.18EFFECTIVE DATE.This section is effective August 1, 2014.

50.19    Sec. 5. Minnesota Statutes 2012, section 169.06, is amended by adding a subdivision
50.20to read:
50.21    Subd. 4a. Obedience to work zone flagger; violation, penalty. (a) A flagger in a
50.22work zone may stop vehicles and hold vehicles in place until it is safe for the vehicles to
50.23proceed. A person operating a motor vehicle that has been stopped by a flagger in a work
50.24zone may proceed after stopping only on instruction by the flagger or a police officer.
50.25(b) A person convicted of operating a motor vehicle in violation of a speed limit
50.26in a work zone, or any other provision of this section while in a work zone, shall be
50.27required to pay a fine of $300. This fine is in addition to the surcharge under section
50.28357.021, subdivision 6.
50.29(c) If a motor vehicle is operated in violation of paragraph (a), the owner of the
50.30vehicle, or for a leased motor vehicle the lessee of the vehicle, is guilty of a petty
50.31misdemeanor and is subject to a fine as provided in paragraph (b). The owner or lessee may
50.32not be fined under this paragraph if (1) another person is convicted for that violation, or (2)
50.33the motor vehicle was stolen at the time of the violation. This paragraph does not apply to a
50.34lessor of a motor vehicle if the lessor keeps a record of the name and address of the lessee.
51.1(d) Paragraph (c) does not prohibit or limit the prosecution of a motor vehicle
51.2operator for violating paragraph (a).
51.3(e) A violation under paragraph (c) does not constitute grounds for revocation or
51.4suspension of a driver's license.
51.5EFFECTIVE DATE.This section is effective August 1, 2014, and applies to
51.6violations committed on or after that date.

51.7    Sec. 6. Minnesota Statutes 2012, section 169.14, subdivision 5d, is amended to read:
51.8    Subd. 5d. Speed zoning limit in work zone; surcharge when workers present.
51.9(a) Notwithstanding subdivision 2 and subject to subdivision 3, the speed limit on a
51.10road having an established speed limit of 50 miles per hour or greater is adjusted to 45
51.11miles per hour in a work zone when (1) at least one lane or portion of a lane of traffic is
51.12closed in either direction, and (2) workers are present. A speed in excess of the adjusted
51.13speed limit is unlawful.
51.14(b) Paragraph (a) does not apply to a segment of road in which:
51.15(1) positive barriers are placed between workers and the traveled portion of the
51.16highway;
51.17(2) the work zone is in place for less than 24 hours;
51.18(3) a different speed limit for the work zone is determined by the road authority
51.19following an engineering and traffic investigation and based on accepted engineering
51.20practice; or
51.21(4) a different speed limit for the work zone is established by the road authority
51.22under paragraph (c).
51.23(c) The commissioner, on trunk highways and temporary trunk highways, and
51.24local authorities, on streets and highways under their jurisdiction, may authorize the use
51.25of reduced maximum speed limits in highway work zones. The commissioner or local
51.26authority is not required to conduct when workers are present, without an engineering and
51.27traffic investigation before authorizing a reduced speed limit in a highway work zone
51.28 required. The work zone speed limit must not reduce the speed limit on the affected
51.29street or highway by more than:
51.30(b) The minimum highway work zone speed limit is 20 miles per hour. The work
51.31zone speed limit must not reduce the established speed limit on the affected street or
51.32highway by more than 15 miles per hour, except that the highway work zone speed limit
51.33must not exceed 40 miles per hour. The commissioner or local authority shall post the limits
51.34of the work zone. Highway work zone speed limits are effective on erection of appropriate
52.1regulatory speed limit signs. The signs must be removed or covered when they are not
52.2required. A speed greater than the posted highway work zone speed limit is unlawful.
52.3(c) Notwithstanding paragraph (b), on divided highways the commissioner or local
52.4authority may establish a highway work zone speed limit that does not exceed 55 miles
52.5per hour.
52.6(d) Notwithstanding paragraph (b), on two-lane highways having one lane for
52.7each direction of travel with a posted speed limit of 60 miles per hour or greater, the
52.8commissioner or local authority may establish a highway work zone speed limit that
52.9does not exceed 40 miles per hour.
52.10(e) For purposes of this subdivision, "highway work zone" means a segment of
52.11highway or street where a road authority or its agent is constructing, reconstructing, or
52.12maintaining the physical structure of the roadway, its shoulders, or features adjacent to
52.13the roadway, including underground and overhead utilities and highway appurtenances,
52.14when workers are present.
52.15(f) Notwithstanding section 609.0331 or 609.101 or other law to the contrary, a person
52.16who violates a speed limit established under this subdivision, or who violates any other
52.17provision of this section while in a highway work zone, is assessed an additional surcharge
52.18equal to the amount of the fine imposed for the speed violation, but not less than $25.
52.19(1) 20 miles per hour on a street or highway having an established speed limit of
52.2055 miles per hour or greater; and
52.21(2) 15 miles per hour on a street or highway having an established speed limit of
52.2250 miles per hour or less.
52.23(d) A work zone speed limit under paragraph (c) is effective on erection of
52.24appropriate regulatory speed limit signs. The signs must be removed or covered when
52.25they are not required. A speed in excess of the posted work zone speed limit is unlawful.
52.26(e) For any speed limit under this subdivision, a road authority shall erect signs
52.27identifying the speed limit and indicating the beginning and end of the speed limit zone.
52.28EFFECTIVE DATE.This section is effective August 1, 2014, and applies to
52.29violations committed on or after that date.

52.30    Sec. 7. Minnesota Statutes 2012, section 169.14, is amended by adding a subdivision
52.31to read:
52.32    Subd. 6a. Work zone speed limit violations. A person convicted of operating a
52.33motor vehicle in violation of a speed limit in a work zone, or any other provision of
52.34this section while in a work zone, shall be required to pay a fine of $300. This fine is in
52.35addition to the surcharge under section 357.021, subdivision 6.
53.1EFFECTIVE DATE.This section is effective August 1, 2014, and applies to
53.2violations committed on or after that date.

53.3    Sec. 8. Minnesota Statutes 2012, section 169.305, subdivision 1, is amended to read:
53.4    Subdivision 1. Entrance and exit; crossover; use regulations; signs; rules. (a) No
53.5person shall drive a vehicle onto or from any controlled-access highway except at such
53.6entrances and exits as are established by public authority.
53.7(b) When special crossovers between the main roadways of a controlled-access
53.8highway are provided for emergency vehicles or maintenance equipment and such
53.9crossovers are signed to prohibit "U" turns, it shall be unlawful for any vehicle, except
53.10an emergency vehicle, maintenance equipment, or construction equipment including
53.11contractor's and state-owned equipment when operating within a marked construction
53.12zone, or a vehicle operated by a commercial vehicle inspector of the Department of
53.13Public Safety or certified under section 169.781, to use such crossover. Vehicles owned
53.14and operated by elderly and needy persons under contract with the commissioner of
53.15transportation pursuant to section 160.282 for maintenance services on highway rest
53.16stop and tourist centers outside the seven-county metropolitan area as defined in section
53.17473.121 , may also use these crossovers while those persons are proceeding to or from
53.18work in the rest area or tourist center if authorized by the commissioner, and the vehicle
53.19carries on its roof a distinctive flag designed and issued by the commissioner. For the
53.20purposes of this clause "emergency vehicle" includes a tow truck or towing vehicle if it is
53.21on the way to the location of an accident or a disabled vehicle.
53.22(c) The commissioner of transportation may by order, and any public authority may
53.23by ordinance, with respect to any controlled-access highway under their jurisdictions
53.24prohibit or regulate the use of any such highway by pedestrians, bicycles, or other
53.25nonmotorized traffic, or by motorized bicycles, or by any class or kind of traffic which is
53.26found to be incompatible with the normal and safe flow of traffic.
53.27(d) The commissioner of transportation or the public authority adopting any such
53.28prohibitory rules shall erect and maintain official signs on the controlled-access highway
53.29on which such rules are applicable and when so erected no person shall disobey the
53.30restrictions stated on such signs.

53.31    Sec. 9. Minnesota Statutes 2012, section 169.826, is amended by adding a subdivision
53.32to read:
54.1    Subd. 7. Expiration date. Upon request of the permit applicant the expiration
54.2date for a permit issued under this section must be the same as the expiration date of the
54.3permitted vehicle's registration.
54.4EFFECTIVE DATE.This section is effective November 30, 2016, and applies
54.5to permits issued on and after that date.

54.6    Sec. 10. Minnesota Statutes 2012, section 169.8261, is amended by adding a
54.7subdivision to read:
54.8    Subd. 3. Expiration date. Upon request of the permit applicant the expiration
54.9date for a permit issued under this section must be the same as the expiration date of the
54.10permitted vehicle's registration.
54.11EFFECTIVE DATE.This section is effective November 30, 2016, and applies
54.12to permits issued on and after that date.

54.13    Sec. 11. Minnesota Statutes 2012, section 169.86, subdivision 5, is amended to read:
54.14    Subd. 5. Fees; proceeds deposited; appropriation. The commissioner, with
54.15respect to highways under the commissioner's jurisdiction, may charge a fee for each
54.16permit issued. The fee for an annual permit that expires by law on the date of the
54.17vehicle registration expiration must be based on the proportion of the year that remains
54.18until the expiration date. Unless otherwise specified, all fees for permits issued by the
54.19commissioner of transportation must be deposited in the state treasury and credited to
54.20the trunk highway fund. Except for those annual permits for which the permit fees are
54.21specified elsewhere in this chapter, the fees are:
54.22    (a) $15 for each single trip permit.
54.23    (b) $36 for each job permit. A job permit may be issued for like loads carried on
54.24a specific route for a period not to exceed two months. "Like loads" means loads of the
54.25same product, weight, and dimension.
54.26    (c) $60 for an annual permit to be issued for a period not to exceed 12 consecutive
54.27months. Annual permits may be issued for:
54.28    (1) motor vehicles used to alleviate a temporary crisis adversely affecting the safety
54.29or well-being of the public;
54.30    (2) motor vehicles that travel on interstate highways and carry loads authorized
54.31under subdivision 1a;
54.32    (3) motor vehicles operating with gross weights authorized under section 169.826,
54.33subdivision 1a ;
55.1    (4) special pulpwood vehicles described in section 169.863;
55.2    (5) motor vehicles bearing snowplow blades not exceeding ten feet in width;
55.3    (6) noncommercial transportation of a boat by the owner or user of the boat;
55.4    (7) motor vehicles carrying bales of agricultural products authorized under section
55.5169.862 ; and
55.6(8) special milk-hauling vehicles authorized under section 169.867.
55.7    (d) $120 for an oversize annual permit to be issued for a period not to exceed 12
55.8consecutive months. Annual permits may be issued for:
55.9    (1) mobile cranes;
55.10    (2) construction equipment, machinery, and supplies;
55.11    (3) manufactured homes and manufactured storage buildings;
55.12    (4) implements of husbandry;
55.13    (5) double-deck buses;
55.14    (6) commercial boat hauling and transporting waterfront structures, including, but
55.15not limited to, portable boat docks and boat lifts;
55.16    (7) three-vehicle combinations consisting of two empty, newly manufactured trailers
55.17for cargo, horses, or livestock, not to exceed 28-1/2 feet per trailer; provided, however,
55.18the permit allows the vehicles to be moved from a trailer manufacturer to a trailer dealer
55.19only while operating on twin-trailer routes designated under section 169.81, subdivision 3,
55.20paragraph (c); and
55.21(8) vehicles operating on that portion of marked Trunk Highway 36 described in
55.22section 169.81, subdivision 3, paragraph (e).
55.23    (e) For vehicles that have axle weights exceeding the weight limitations of sections
55.24169.823 to 169.829, an additional cost added to the fees listed above. However, this
55.25paragraph applies to any vehicle described in section 168.013, subdivision 3, paragraph
55.26(b), but only when the vehicle exceeds its gross weight allowance set forth in that
55.27paragraph, and then the additional cost is for all weight, including the allowance weight,
55.28in excess of the permitted maximum axle weight. The additional cost is equal to the
55.29product of the distance traveled times the sum of the overweight axle group cost factors
55.30shown in the following chart:

55.31		Overweight Axle Group Cost Factors
55.32	Weight (pounds)		Cost Per Mile For Each Group Of:
55.33 55.34 55.35 55.36 55.37	exceeding weight limitations on axles		Two consecutive axles spaced within 8 feet or less		Three consecutive axles spaced within 9 feet or less		Four consecutive axles spaced within 14 feet or less
55.38	0-2,000		.12		.05		.04
56.1	2,001-4,000		.14		.06		.05
56.2	4,001-6,000		.18		.07		.06
56.3	6,001-8,000		.21		.09		.07
56.4	8,001-10,000		.26		.10		.08
56.5	10,001-12,000		.30		.12		.09
56.6 56.7	12,001-14,000		Not permitted		.14		.11
56.8 56.9	14,001-16,000		Not permitted		.17		.12
56.10 56.11	16,001-18,000		Not permitted		.19		.15
56.12 56.13	18,001-20,000		Not permitted		Not permitted		.16
56.14 56.15	20,001-22,000		Not permitted		Not permitted		.20

56.16The amounts added are rounded to the nearest cent for each axle or axle group. The
56.17additional cost does not apply to paragraph (c), clauses (1) and (3).
56.18For a vehicle found to exceed the appropriate maximum permitted weight, a cost-per-mile
56.19fee of 22 cents per ton, or fraction of a ton, over the permitted maximum weight is imposed
56.20in addition to the normal permit fee. Miles must be calculated based on the distance
56.21already traveled in the state plus the distance from the point of detection to a transportation
56.22loading site or unloading site within the state or to the point of exit from the state.
56.23    (f) As an alternative to paragraph (e), an annual permit may be issued for overweight,
56.24or oversize and overweight, mobile cranes; construction equipment, machinery, and
56.25supplies; implements of husbandry; and commercial boat hauling. The fees for the permit
56.26are as follows:

56.27	Gross Weight (pounds) of Vehicle		Annual Permit Fee
56.28	90,000	or less	$200
56.29	90,001	- 100,000	$300
56.30	100,001	- 110,000	$400
56.31	110,001	- 120,000	$500
56.32	120,001	- 130,000	$600
56.33	130,001	- 140,000	$700
56.34	140,001	- 145,000	$800
56.35	145,001	- 155,000	$900

56.36If the gross weight of the vehicle is more than 155,000 pounds the permit fee is determined
56.37under paragraph (e).
56.38    (g) For vehicles which exceed the width limitations set forth in section 169.80 by
56.39more than 72 inches, an additional cost equal to $120 added to the amount in paragraph (a)
56.40when the permit is issued while seasonal load restrictions pursuant to section 169.87 are
56.41in effect.
57.1    (h) $85 for an annual permit to be issued for a period not to exceed 12 months, for
57.2refuse-compactor vehicles that carry a gross weight of not more than: 22,000 pounds on
57.3a single rear axle; 38,000 pounds on a tandem rear axle; or, subject to section 169.828,
57.4subdivision 2 , 46,000 pounds on a tridem rear axle. A permit issued for up to 46,000 pounds
57.5on a tridem rear axle must limit the gross vehicle weight to not more than 62,000 pounds.
57.6    (i) $300 for a motor vehicle described in section 169.8261. The fee under this
57.7paragraph must be deposited as follows:
57.8    (1) the first $50,000 in each fiscal year must be deposited in the trunk highway fund for
57.9costs related to administering the permit program and inspecting and posting bridges; and
57.10    (2) all remaining money in each fiscal year must be deposited in the bridge
57.11inspection and signing account as provided under subdivision 5b.
57.12    (j) Beginning August 1, 2006, $200 for an annual permit for a vehicle operating
57.13under authority of section 169.824, subdivision 2, paragraph (a), clause (2).
57.14EFFECTIVE DATE.This section is effective November 30, 2016, and applies
57.15to permits issued on and after that date.

57.16    Sec. 12. Minnesota Statutes 2012, section 169.863, is amended by adding a subdivision
57.17to read:
57.18    Subd. 3. Expiration date. Upon request of the permit applicant the expiration
57.19date for a permit issued under this section must be the same as the expiration date of the
57.20permitted vehicle's registration.
57.21EFFECTIVE DATE.This section is effective November 30, 2016, and applies
57.22to permits issued on and after that date.

57.23    Sec. 13. Minnesota Statutes 2012, section 169.865, subdivision 1, is amended to read:
57.24    Subdivision 1. Six-axle vehicles. (a) A road authority may issue an annual permit
57.25authorizing a vehicle or combination of vehicles with a total of six or more axles to haul raw
57.26or unprocessed agricultural products and be operated with a gross vehicle weight of up to:
57.27    (1) 90,000 pounds; and
57.28    (2) 99,000 pounds during the period set by the commissioner under section 169.826,
57.29subdivision 1 .
57.30    (b) Notwithstanding subdivision 3, paragraph (a), clause (4), a vehicle or
57.31combination of vehicles operated under this subdivision and transporting only sealed
57.32intermodal containers may be operated on an interstate highway if allowed by the United
57.33States Department of Transportation.
58.1    (c) The fee for a permit issued under this subdivision is $300, or a proportional
58.2amount as provided in section 169.86, subdivision 5.
58.3EFFECTIVE DATE.This section is effective November 30, 2016, and applies
58.4to permits issued on and after that date.

58.5    Sec. 14. Minnesota Statutes 2012, section 169.865, subdivision 2, is amended to read:
58.6    Subd. 2. Seven-axle vehicles. (a) A road authority may issue an annual permit
58.7authorizing a vehicle or combination of vehicles with a total of seven or more axles to
58.8haul raw or unprocessed agricultural products and be operated with a gross vehicle weight
58.9of up to:
58.10    (1) 97,000 pounds; and
58.11    (2) 99,000 pounds during the period set by the commissioner under section 169.826,
58.12subdivision 1 .
58.13    (b) Drivers of vehicles operating under this subdivision must comply with driver
58.14qualification requirements adopted under section 221.0314, subdivisions 2 to 5, and Code
58.15of Federal Regulations, title 49, parts 40 and 382.
58.16    (c) The fee for a permit issued under this subdivision is $500, or a proportional
58.17amount as provided in section 169.86, subdivision 5.
58.18EFFECTIVE DATE.This section is effective November 30, 2016, and applies
58.19to permits issued on and after that date.

58.20    Sec. 15. Minnesota Statutes 2012, section 169.865, is amended by adding a subdivision
58.21to read:
58.22    Subd. 5. Expiration date. Upon request of the permit applicant the expiration
58.23date for a permit issued under this section must be the same as the expiration date of the
58.24permitted vehicle's registration.
58.25EFFECTIVE DATE.This section is effective November 30, 2016, and applies
58.26to permits issued on and after that date.

58.27    Sec. 16. Minnesota Statutes 2012, section 169.866, subdivision 3, is amended to read:
58.28    Subd. 3. Permit fee; appropriation. Vehicle permits issued under subdivision 1
58.29must be annual permits. The fee is $850 for each vehicle, or a proportional amount as
58.30provided in section 169.86, subdivision 5, and must be deposited in the trunk highway
58.31fund. An amount sufficient to administer the permit program is appropriated from the
58.32trunk highway fund to the commissioner for the costs of administering the permit program.
59.1EFFECTIVE DATE.This section is effective November 30, 2016, and applies
59.2to permits issued on and after that date.

59.3    Sec. 17. Minnesota Statutes 2012, section 169.866, is amended by adding a subdivision
59.4to read:
59.5    Subd. 4. Expiration date. Upon request of the permit applicant the expiration
59.6date for a permit issued under this section must be the same as the expiration date of the
59.7permitted vehicle's registration.
59.8EFFECTIVE DATE.This section is effective November 30, 2016, and applies
59.9to permits issued on and after that date.

59.10    Sec. 18. Minnesota Statutes 2012, section 171.02, subdivision 3, is amended to read:
59.11    Subd. 3. Motorized bicycle. (a) A motorized bicycle may not be operated on any
59.12public roadway by any person who does not possess a valid driver's license, unless the
59.13person has obtained a motorized bicycle operator's permit or motorized bicycle instruction
59.14permit from the commissioner of public safety. The operator's permit may be issued to
59.15any person who has attained the age of 15 years and who has passed the examination
59.16prescribed by the commissioner. The instruction permit may be issued to any person who
59.17has attained the age of 15 years and who has successfully completed an approved safety
59.18course and passed the written portion of the examination prescribed by the commissioner.
59.19    (b) This course must consist of, but is not limited to, a basic understanding of:
59.20    (1) motorized bicycles and their limitations;
59.21    (2) motorized bicycle laws and rules;
59.22    (3) safe operating practices and basic operating techniques;
59.23    (4) helmets and protective clothing;
59.24    (5) motorized bicycle traffic strategies; and
59.25    (6) effects of alcohol and drugs on motorized bicycle operators.
59.26    (c) The commissioner may adopt rules prescribing the content of the safety course,
59.27examination, and the information to be contained on the permits. A person operating a
59.28motorized bicycle under a motorized bicycle permit is subject to the restrictions imposed
59.29by section 169.974, subdivision 2, on operation of a motorcycle under a two-wheel
59.30instruction permit.
59.31    (d) The fees for motorized bicycle operator's permits are as follows:

59.32	(1)	Examination and operator's permit, valid for one year	$	6.75
59.33	(2)	Duplicate	$	3.75
59.34 59.35	(3) (1)	Renewal Motorized bicycle operator's permit before age 21 and valid until age 21	$	9.75
60.1	(4) (2)	Renewal permit age 21 or older and valid for four years	$	15.75
60.2	(5) (3)	Duplicate of any renewal permit	$	5.25
60.3	(6) (4)	Written examination and instruction permit, valid for 30 days	$	6.75

60.4    Sec. 19. Minnesota Statutes 2012, section 171.06, subdivision 2, is amended to read:
60.5    Subd. 2. Fees. (a) The fees for a license and Minnesota identification card are
60.6as follows:

60.7	Classified Driver's License		D-$17.25	C-$21.25	B-$28.25	A-$36.25
60.8	Classified Under-21 D.L.		D-$17.25	C-$21.25	B-$28.25	A-$16.25
60.9	Enhanced Driver's License		D-$32.25	C-$36.25	B-$43.25	A-$51.25
60.10	Instruction Permit					$5.25
60.11 60.12	Enhanced Instruction Permit					$20.25
60.13 60.14	Commercial Learner's Permit					$2.50
60.15	Provisional License					$8.25
60.16 60.17	Enhanced Provisional License					$23.25
60.18 60.19 60.20	Duplicate License or duplicate identification card					$6.75
60.21 60.22 60.23 60.24	Enhanced Duplicate License or enhanced duplicate identification card					$21.75
60.25 60.26 60.27 60.28 60.29 60.30 60.31	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
60.32 60.33	Enhanced Minnesota identification card					$26.25

60.34In addition to each fee required in this paragraph, the commissioner shall collect a
60.35surcharge of: (1) $1.75 until June 30, 2012; and (2) $1.00 from July 1, 2012, to June 30,
60.362016. Surcharges collected under this paragraph must be credited to the driver and vehicle
60.37services technology account in the special revenue fund under section 299A.705.
60.38    (b) Notwithstanding paragraph (a), an individual who holds a provisional license and
60.39has a driving record free of (1) convictions for a violation of section 169A.20, 169A.33,
60.40169A.35 , or sections 169A.50 to 169A.53, (2) convictions for crash-related moving
60.41violations, and (3) convictions for moving violations that are not crash related, shall have a
60.42$3.50 credit toward the fee for any classified under-21 driver's license. "Moving violation"
60.43has the meaning given it in section 171.04, subdivision 1.
61.1    (c) In addition to the driver's license fee required under paragraph (a), the
61.2commissioner shall collect an additional $4 processing fee from each new applicant
61.3or individual renewing a license with a school bus endorsement to cover the costs for
61.4processing an applicant's initial and biennial physical examination certificate. The
61.5department shall not charge these applicants any other fee to receive or renew the
61.6endorsement.
61.7(d) In addition to the fee required under paragraph (a), a driver's license agent may
61.8charge and retain a filing fee as provided under section 171.061, subdivision 4.
61.9(e) In addition to the fee required under paragraph (a), the commissioner shall
61.10charge a filing fee at the same amount as a driver's license agent under section 171.061,
61.11subdivision 4. Revenue collected under this paragraph must be deposited in the driver
61.12services operating account.
61.13(f) An application for a Minnesota identification card, instruction permit, provisional
61.14license, or driver's license, including an application for renewal, must contain a provision
61.15that allows the applicant to add to the fee under paragraph (a), a $2 donation for the
61.16purposes of public information and education on anatomical gifts under section 171.075.

61.17    Sec. 20. [171.161] COMMERCIAL DRIVER'S LICENSE; FEDERAL
61.18CONFORMITY.
61.19    Subdivision 1. Conformity with federal law. The commissioner of public safety
61.20shall ensure the programs and policies related to commercial drivers' licensure and the
61.21operation of commercial motor vehicles in Minnesota conform with the requirements of
61.22Code of Federal Regulations, title 49, part 383.
61.23    Subd. 2. Conflicts. To the extent a requirement of sections 171.162 to 171.169, or
61.24any other state or local law, conflicts with a provision of Code of Federal Regulations, title
61.2549, part 383, the federal provision prevails.

61.26    Sec. 21. Minnesota Statutes 2012, section 174.02, is amended by adding a subdivision
61.27to read:
61.28    Subd. 10. Products and services; billing. The commissioner of transportation may
61.29bill operations units of the department for costs of centrally managed products or services
61.30that benefit multiple operations units. These costs may include equipment acquisition and
61.31rental, labor, materials, and other costs determined by the commissioner. Receipts must be
61.32credited to the special products and services account, which is established in the trunk
61.33highway fund, and are appropriated to the commissioner to pay the costs for which the
61.34billings are made.

62.1    Sec. 22. Minnesota Statutes 2013 Supplement, section 174.12, subdivision 2, is
62.2amended to read:
62.3    Subd. 2. Transportation economic development accounts. (a) A transportation
62.4economic development account is established in the special revenue fund under the
62.5budgetary jurisdiction of the legislative committees having jurisdiction over transportation
62.6finance. Money in the account may be expended only as appropriated by law. The account
62.7may not contain money transferred or otherwise provided from the trunk highway fund.
62.8(b) A transportation economic development account is established in the trunk
62.9highway fund. The account consists of funds donated, allotted, transferred, or otherwise
62.10provided to the account. Money in the account may be used only for trunk highway
62.11purposes. All funds in the account available prior to August 1, 2013, are available until
62.12expended.

62.13    Sec. 23. Minnesota Statutes 2013 Supplement, section 174.42, subdivision 2, is
62.14amended to read:
62.15    Subd. 2. Funding requirement. In each federal fiscal year, the commissioner
62.16shall obtain a total amount in federal authorizations for reimbursement on transportation
62.17alternatives projects that is equal to or greater than the annual average of federal
62.18authorizations on transportation alternatives projects calculated over the preceding four
62.19 federal fiscal years 2010 to 2012.
62.20EFFECTIVE DATE.This section is effective the day following final enactment and
62.21applies to authorizations for federal fiscal year 2015 and subsequent federal fiscal years.

62.22    Sec. 24. [219.375] RAILROAD YARD LIGHTING.
62.23    Subdivision 1. General requirements. (a) All railroad common carriers, and their
62.24officers, agents, and employees, operating a railroad in this state are required to maintain
62.25lighting between sunset and sunrise above switches in railroad yards where from one
62.26half-hour before sunset to one half-hour after sunrise:
62.27(1) cars or locomotives are switched or inspected; or
62.28(2) cars are switched to assemble or disassemble trains.
62.29Railroad common carriers shall provide lighting immediately adjacent to those portions
62.30of railroad yard tracks where railroad common carrier employees frequently work on
62.31the ground performing switching, inspection, and repair activities. For purposes of this
62.32section, "frequently work" means at least five days per week.
62.33(b) Railroad yard lighting over switches and inspection areas must:
63.1(1) conform with the guidelines set forth by the American Railway Engineering
63.2and Manufacturing Association (AREMA);
63.3(2) be displayed only at times when activities related to switching, inspection,
63.4assembly, and disassembly of trains are taking place;
63.5(3) include at least one lighting source for each two-yard track switch segment; and
63.6(4) be displayed from a height of at least 30 feet above the railroad yard lead-track
63.7area.
63.8(c) Lighting over switches and other light sources within railroad yards or at other
63.9railroad locations must be:
63.10(1) maintained to illuminate as designed by the railroad or licensed contractor;
63.11(2) compliant with the Minnesota Electrical Code;
63.12(3) kept clear of obstructions; and
63.13(4) focused on the railroad common carrier property designed to be illuminated.
63.14(d) The energy source for lighting is permitted, though not required, to:
63.15(1) be direct wired from a carrier facility power source, have solar panel power with
63.16a battery storage source, or have another constant energy source; or
63.17(2) be designed to have standard or light-emitting diode fixtures or electrical circuits
63.18that include power saving or ambient atmosphere actuating switches.
63.19(e) Railroad common carriers must replace damaged or nonoperative lighting within
63.2048 hours after light source damage has been reported to the carrier.
63.21    Subd. 2. Allowances for unusual conditions. Railroad common carriers are not
63.22required to comply with the requirements of this section during:
63.23(1) maintenance activities;
63.24(2) derailments;
63.25(3) any period of heavy rain or snow, washouts, or similar weather or seismic
63.26conditions; or
63.27(4) a reasonable period after any occurrence identified in clauses (1) to (3), but no
63.28longer than is necessary to achieve compliance with this section.
63.29    Subd. 3. Lighting orders; commissioner authority. (a) When the commissioner
63.30finds that railroad common carrier employees who frequently work immediately adjacent
63.31to a portion of track performing switching, inspection, maintenance, repair, or fueling
63.32activities are exposed to hazard resulting from the lack of lighting, or to the condition of
63.33lighting constructed before July 1, 2014, the commissioner may order a railroad common
63.34carrier to construct lighting adjacent to a portion of track where employees are performing
63.35switching, inspection, maintenance, repair or fueling activities, or require a railroad
64.1common carrier to modify existing lighting to conform with the standards set forth by
64.2AREMA lighting standards, within a reasonable period of time.
64.3(b) A railroad common carrier, person, or corporation may appeal an order under this
64.4subdivision. An appeal under this paragraph is subject to the processes and requirements
64.5of chapter 14.
64.6    Subd. 4. Failure to correct. If a railroad common carrier, person, or corporation
64.7fails to correct a violation of this section within the time provided in an order issued by
64.8the commissioner of transportation under subdivision 3, and the railroad common carrier,
64.9person, or corporation does not appeal the order, the failure to correct the violation as
64.10ordered by the commissioner constitutes a new and separate offense distinct from the
64.11original violation of this section.
64.12    Subd. 5. Complaints. No formal complaint of an alleged violation of this section
64.13may be filed until the filing party has attempted to address the alleged violations with the
64.14railroad common carrier. Any complaint of an alleged violation must contain a written
64.15statement that the filing party has made a reasonable, good faith attempt to address the
64.16alleged violation.
64.17    Subd. 6. Waiver. Upon written request of a railroad common carrier, the
64.18commissioner of transportation may waive any portion of this section if conditions do not
64.19reasonably permit compliance. The commissioner's decision is subject to the requirements
64.20under section 218.041 and shall include an on-site inspection of the area for which the
64.21waiver has been requested. The inspection shall occur between sunset and sunrise, and all
64.22parties of interest shall be permitted to attend.
64.23    Subd. 7. Violations and penalties. A railroad common carrier, corporation, or
64.24person who violates this section is liable to a penalty not to exceed $500 for each violation.
64.25    Subd. 8. Exceptions; applicability. (a) This section establishes minimum standards
64.26for railroad yard lighting. Nothing in this section shall be construed to preclude design of
64.27railroad yard towers with multiple lighting sources, a brighter lighting design, or other
64.28features that exceed the requirements of this section.
64.29(b) This section applies to all Class One and Class Two railroad common carrier
64.30railroad yards. This section does not apply to an entity that owns or operates track in
64.31Minnesota that is not a Class One or Class Two railroad common carrier as classified
64.32by the Federal Railroad Administration.
64.33(c) Railroad yards and other locations where lighting exists on July 1, 2014, are
64.34compliant with subdivision 1, paragraphs (b) and (c).
64.35EFFECTIVE DATE.This section is effective November 1, 2016.

65.1    Sec. 25. [299A.017] STATE SAFETY OVERSIGHT.
65.2    Subdivision 1. Office created. The commissioner of public safety shall establish an
65.3Office of State Safety Oversight in the Department of Public Safety for safety oversight of
65.4rail fixed guideway public transportation systems within the state. The commissioner shall
65.5designate a director of the office.
65.6    Subd. 2. Authority. The director shall implement and has regulatory authority to
65.7enforce the requirements for the state set forth in United States Code, title 49, sections
65.85329 and 5330, federal regulations adopted pursuant to those sections, and successor or
65.9supplemental requirements.

65.10    Sec. 26. Minnesota Statutes 2012, section 299F.012, subdivision 1, is amended to read:
65.11    Subdivision 1. Authorized programs within department. From the revenues
65.12appropriated from the fire safety account, established under section 297I.06, subdivision
65.133, the commissioner of public safety may expend funds for the activities and programs
65.14identified by the advisory committee established under subdivision 2 and recommended
65.15to the commissioner of public safety. The commissioner shall not expend funds without
65.16the recommendation of the advisory committee established under subdivision 2. The
65.17commissioner shall not expend funds without the recommendation of the advisory
65.18committee established under subdivision 2. These funds are to be used to provide
65.19resources needed for identified activities and programs of the Minnesota fire service and to
65.20ensure the State Fire Marshal Division responsibilities are fulfilled.

65.21    Sec. 27. Minnesota Statutes 2012, section 299F.012, subdivision 2, is amended to read:
65.22    Subd. 2. Fire Service Advisory Committee. (a) The Fire Service Advisory
65.23Committee shall provide recommendations to the commissioner of public safety on
65.24fire service-related issues and shall consist of representatives of each of the following
65.25organizations: two appointed by the president of the Minnesota State Fire Chiefs
65.26Association, two appointed by the president of the Minnesota State Fire Department
65.27Association, two appointed by the president of the Minnesota Professional Fire Fighters,
65.28two appointed by the president of the League of Minnesota Cities, one appointed by the
65.29president of the Minnesota Association of Townships, one appointed by the president
65.30of the Insurance Federation of Minnesota, one appointed jointly by the presidents of
65.31the Minnesota Chapter of the International Association of Arson Investigators and the
65.32Fire Marshals Association of Minnesota, and the commissioner of public safety or the
65.33commissioner's designee. The commissioner of public safety must ensure that at least
65.34three of the members of the advisory committee work and reside in counties outside of the
66.1seven-county metropolitan area. The committee shall provide funding recommendations
66.2to the commissioner of public safety from the fire safety fund for the following purposes:
66.3(1) for the Minnesota Board of Firefighter Training and Education;
66.4(2) for programs and staffing for the State Fire Marshal Division; and
66.5(3) for fire-related regional response team programs and any other fire service
66.6programs that have the potential for statewide impact.
66.7    (b) The committee under paragraph (a) does not expire.

66.8    Sec. 28. [473.4056] LIGHT RAIL TRANSIT VEHICLE DESIGN.
66.9    Subdivision 1. Adoption of standards. (a) By January 1, 2015, the Metropolitan
66.10Council shall adopt and may thereafter amend standards for the design of light rail
66.11vehicles that are reasonably necessary to provide access for, and to protect the health and
66.12safety of, persons who use the service. All light rail transit vehicles procured on and after
66.13January 1, 2015, must conform to the standards then in effect.
66.14(b) The Transportation Accessibility Advisory Committee must review the standards
66.15and all subsequent amendments before the Metropolitan Council adopts them.
66.16(c) The Metropolitan Council shall post adopted standards, including amendments,
66.17on its Web site.
66.18    Subd. 2. Minimum standards. Standards adopted under this section must include,
66.19but are not limited to:
66.20(1) two dedicated spaces for wheelchair users in each car;
66.21(2) seating for a companion adjacent to at least two wheelchair-dedicated spaces; and
66.22(3) further specifications that meet or exceed the standards established in the
66.23Americans with Disabilities Act.

66.24    Sec. 29. HIGHWAY 14 TURNBACK.
66.25Notwithstanding Minnesota Statutes, sections 161.081, subdivision 3, and 161.16, or
66.26any other law to the contrary, the commissioner of transportation may:
66.27(1) by temporary order, take over the road described as "Old Highway 14" in the
66.28settlement agreement and release executed January 7, 2014, between the state and Waseca
66.29and Steele Counties;
66.30(2) expend $35,000,000 or the amount necessary to complete the work required
66.31under the settlement agreement; and
66.32(3) upon completion of the work described in the settlement agreement, release "Old
66.33Highway 14" back to Steele and Waseca Counties.
67.1Upon completion of the work described in the settlement agreement between the
67.2state and Waseca and Steele Counties, the counties shall accept responsibility for the road
67.3described in the agreement as "Old Highway 14."

67.4    Sec. 30. EVALUATION OF CERTAIN TRUNK HIGHWAY SPEED LIMITS.
67.5    Subdivision 1. Engineering and traffic investigations. The commissioner of
67.6transportation shall perform engineering and traffic investigations on trunk highway
67.7segments that are two-lane, two-way roadways with a posted speed limit of 55 miles per
67.8hour. On determining upon the basis of the investigation that the 55 miles per hour speed
67.9limit can be reasonably and safely increased under the conditions found to exist on any
67.10of the trunk highway segments examined, the commissioner may designate an increased
67.11limit applicable to those segments and erect appropriate signs designating the speed limit.
67.12The new speed limit shall be effective when the signs are erected. Of all the roadways
67.13to be studied under this section, approximately one-fifth must be subject to investigation
67.14each year until the statewide study is complete in 2019.
67.15    Subd. 2. Report. By January 15 annually, the commissioner shall provide to
67.16the chairs and ranking minority members of the senate and house of representatives
67.17committees with jurisdiction over transportation policy and finance a list of trunk
67.18highways or segments of trunk highways that were subject to an engineering and safety
67.19investigation in the previous calendar year, specifying in each case the applicable speed
67.20limits before and after the investigation.
67.21EFFECTIVE DATE.This section is effective the day following final enactment
67.22and expires on the earlier of January 15, 2019, or the date the final report is submitted to
67.23the legislative committees under this section.

67.24    Sec. 31. TASK FORCE ON MOTOR VEHICLE INSURANCE COVERAGE
67.25VERIFICATION.
67.26    Subdivision 1. Establishment. The task force on motor vehicle insurance coverage
67.27verification is established to review and evaluate approaches to insurance coverage
67.28verification and recommend legislation to create and fund a program in this state.
67.29    Subd. 2. Membership; meetings; staff. (a) The task force shall be composed of
67.3013 members, who must be appointed by July 1, 2014, and who serve at the pleasure of
67.31their appointing authorities:
67.32(1) the commissioner of public safety or a designee;
67.33(2) the commissioner of commerce or a designee;
68.1(3) two members of the house of representatives, one appointed by the speaker of the
68.2house and one appointed by the minority leader;
68.3(4) two members of the senate, one appointed by the Subcommittee on Committees
68.4of the Committee on Rules and Administration and one appointed by the minority leader;
68.5(5) a representative of Minnesota Deputy Registrars Association;
68.6(6) a representative of AAA Minnesota;
68.7(7) a representative of AARP Minnesota;
68.8(8) a representative of the Insurance Federation of Minnesota;
68.9(9) a representative of the Minnesota Bankers Association;
68.10(10) a representative of the Minnesota Bar Association; and
68.11(11) a representative of the Minnesota Police and Peace Officers Association.
68.12(b) Compensation and expense reimbursement must be as provided under Minnesota
68.13Statutes, section 15.059, subdivision 3, to members of the task force.
68.14(c) The commissioner of public safety shall convene the task force by August
68.151, 2014, and shall appoint a chair from the membership of the task force. Staffing and
68.16technical assistance must be provided by the Department of Public Safety.
68.17    Subd. 3. Duties. The task force shall review and evaluate programs established in
68.18other states as well as programs proposed by third parties, identify one or more programs
68.19recommended for implementation in this state, and, as to the recommended programs,
68.20adopt findings concerning:
68.21(1) comparative costs of programs;
68.22(2) implementation considerations, and in particular, identifying the appropriate
68.23supervising agency and assessing compatibility with existing and planned computer
68.24systems;
68.25(3) effectiveness in verifying existence of motor vehicle insurance coverage;
68.26(4) identification of categories of authorized users;
68.27(5) simplicity of access and use for authorized users;
68.28(6) data privacy considerations;
68.29(7) data retention policies; and
68.30(8) statutory changes necessary for implementation.
68.31    Subd. 4. Report. By February 1, 2015, the task force must submit to the
68.32chairs and ranking minority members of the house of representatives and senate
68.33committees and divisions with primary jurisdiction over commerce and transportation its
68.34written recommendations, including any draft legislation necessary to implement the
68.35recommendations.
69.1    Subd. 5. Sunset. The task force shall sunset the day after submitting the report
69.2under subdivision 4, or February 2, 2015, whichever is earlier.
69.3EFFECTIVE DATE.This section is effective the day following final enactment.

69.4    Sec. 32. COMMUNITY DESTINATION SIGN PILOT PROGRAM.
69.5    Subdivision 1. Definition. (a) For purposes of this section, the following terms
69.6have the meanings given.
69.7(b) "City" means the city of Two Harbors.
69.8(c) "General retail services" means a business that sells goods or services at retail
69.9and directly to an end-use consumer. General retail services includes but is not limited to:
69.10(1) personal services;
69.11(2) repair services;
69.12(3) hardware stores;
69.13(4) lumber or building supply stores; and
69.14(5) automotive parts sellers.
69.15    Subd. 2. Pilot program established. In consultation with the city of Two Harbors,
69.16the commissioner of transportation shall establish a community destination sign pilot
69.17program for wayfinding within the city to destinations or attractions of interest to the
69.18traveling public.
69.19For purposes of Minnesota Statutes, chapter 173, signs under the pilot program are
69.20official signs.
69.21    Subd. 3. Signage, design. (a) The pilot program must include as eligible attractions
69.22and destinations:
69.23(1) minor traffic generators; and
69.24(2) general retail services, specified by business name, that are identified in a
69.25community wayfinding program established by the city.
69.26(b) The commissioner of transportation, in coordination with the city, may establish
69.27sign design specifications for signs under the pilot program. Design specifications must
69.28allow for placement of:
69.29(1) a city name and city logo or symbol; and
69.30(2) up to five attractions or destinations on a community destination sign assembly.
69.31    Subd. 4. Program costs. The city shall pay costs of design, construction,
69.32erection, and maintenance of the signs and sign assemblies under the pilot program. The
69.33commissioner shall not impose fees for the pilot program.
69.34    Subd. 5. Expiration. The pilot program under this section expires on January
69.351, 2022.
70.1EFFECTIVE DATE.This section is effective the day after the governing body of
70.2the city of Two Harbors and its chief clerical officer timely complete their compliance
70.3with Minnesota Statutes, section 645.021, subdivisions 2 and 3.

70.4ARTICLE 5

70.5CRIMINAL JUSTICE

70.6	Section 1. SUMMARY OF APPROPRIATIONS.

70.7The amounts shown in this section summarize direct appropriations, by fund, made
70.8in this article.

70.9			2014		2015		Total
70.10	General	$	-0-	$	30,787,000	$	30,787,000
70.11	Total	$	-0-	$	30,787,000	$	30,787,000

70.12

Sec. 2. APPROPRIATIONS.

70.13The sums shown in the columns marked "Appropriations" are added to the
70.14appropriations in Laws 2013, chapter 86, article 1, to the agencies and for the purposes
70.15specified in this article. The appropriations are from the general fund, or another named
70.16fund, and are available for the fiscal years indicated for each purpose. The figures "2014"
70.17and "2015" used in this article mean that the addition to the appropriation listed under
70.18them is available for the fiscal year ending June 30, 2014, or June 30, 2015, respectively.
70.19Supplemental appropriations for the fiscal year ending June 30, 2014, are effective the
70.20day following final enactment.

70.21				APPROPRIATIONS
70.22				Available for the Year
70.23				Ending June 30
70.24					2014		2015

70.25

Sec. 3. CORRECTIONS

70.26

Subdivision 1.Total Appropriation

$

-0-

$

30,089,000

70.27The amounts that may be spent for each
70.28purpose are specified in the following
70.29subdivisions.
70.30This includes a onetime appropriation of
70.31$11,089,000.

70.32

Subd. 2.Correctional Institutions

-0-

27,289,000

71.1

Subd. 3.Community Services

-0-

1,900,000

71.2

Subd. 4.Operations Support

-0-

900,000

71.3

Sec. 4. PUBLIC SAFETY

$

-0-

$

600,000

71.4Expungement
71.5To implement the expungement law changes
71.6in 2014 S.F. No. 2214, if enacted.

71.7

Sec. 5. HUMAN SERVICES

$

-0-

$

98,000

71.8Expungement
71.9To implement the expungement law changes
71.10in 2014 S.F. No. 2214, if enacted.

71.11ARTICLE 6

71.12CRIMINAL JUSTICE-RELATED PROVISIONS

71.13    Section 1. Minnesota Statutes 2012, section 260B.198, subdivision 7, is amended to
71.14read:
71.15    Subd. 7. Continuance. (a) When it is in the best interests of the child to do so and
71.16not inimical to public safety and when the child has admitted the allegations contained in
71.17the petition before the judge or referee, or when a hearing has been held as provided for in
71.18section 260B.163 and the allegations contained in the petition have been duly proven but,
71.19in either case, before a finding of delinquency has been entered, the court may continue
71.20the case for a period not to exceed 90 180 days on any one order. Such a continuance may
71.21be extended for one additional successive period not to exceed 90 days and only after the
71.22court has reviewed the case and entered its order for an additional continuance without a
71.23finding of delinquency. The continuance may be extended for one additional successive
71.24period not to exceed 180 days, but only with the consent of the prosecutor and only after
71.25the court has reviewed the case and entered its order for the additional continuance
71.26without a finding of delinquency. During this a continuance the court may enter an order
71.27in accordance with the provisions of subdivision 1, clause (1) or (2) except clause (4), or
71.28enter an order to hold the child in detention for a period not to exceed 15 days on any one
71.29order for the purpose of completing any consideration, or any investigation or examination
71.30ordered in accordance with the provisions of section 260B.157.
72.1(b) A prosecutor may appeal a continuance ordered in contravention of this
72.2subdivision. This subdivision does not extend the court's jurisdiction under section
72.3260B.193 and does not apply to an extended jurisdiction juvenile proceeding.
72.4EFFECTIVE DATE.This section is effective August 1, 2014, and applies to
72.5offenses committed on or after that date.

72.6    Sec. 2. Minnesota Statutes 2012, section 645.241, is amended to read:
72.7645.241 PUNISHMENT FOR PROHIBITED ACTS.
72.8(a) Except as provided in paragraph (b), when the performance of any act is
72.9prohibited by a statute, and no penalty for the violation of the same shall be imposed in
72.10any statute, the doing of such act shall be a misdemeanor.
72.11(b) When the performance of any act is prohibited by a statute enacted or amended
72.12after September 1, 2014, and no penalty for the violation of the same shall be imposed in
72.13any statute, the doing of such act shall be a petty misdemeanor.

72.14    Sec. 3. Laws 2013, chapter 86, article 1, section 13, is amended to read:

72.15 72.16

Sec. 13. PEACE OFFICER STANDARDS AND TRAINING (POST) BOARD

$

3,870,000

$

3,870,000

72.17(a) Excess Amounts Transferred
72.18This appropriation is from the peace officer
72.19training account in the special revenue fund.
72.20Any new receipts credited to that account in
72.21the first year in excess of $3,870,000 must be
72.22transferred and credited to the general fund.
72.23Any new receipts credited to that account in
72.24the second year in excess of $3,870,000 must
72.25be transferred and credited to the general
72.26fund.
72.27(b) Peace Officer Training
72.28Reimbursements
72.29$2,734,000 each year is for reimbursements
72.30to local governments for peace officer
72.31training costs.
73.1(c) Training; Sexually Exploited and
73.2Trafficked Youth
73.3Of the appropriation in paragraph (b),
73.4$100,000 the first year is for reimbursements
73.5to local governments for peace officer
73.6training costs on sexually exploited and
73.7trafficked youth, including effectively
73.8identifying sex trafficked victims and
73.9traffickers, investigation techniques, and
73.10assisting sexually exploited youth. These
73.11funds are available until June 30, 2016.
73.12Reimbursement shall be provided on a flat
73.13fee basis of $100 per diem per officer.
73.14EFFECTIVE DATE.This section is effective the day following final enactment.

73.15ARTICLE 7

73.16STATE DEPARTMENTS AND VETERANS

73.17

Section 1. STATE DEPARTMENTS AND VETERANS APPROPRIATIONS.

73.18    The sums shown in the columns marked "Appropriations" are added to the
73.19appropriations in Laws 2013, chapter 142, article 1, to the agencies and for the purposes
73.20specified in this article. The appropriations are from the general fund, or another named
73.21fund, and are available for the fiscal years indicated for each purpose. The figures "2014"
73.22and "2015" used in this article mean that the addition to the appropriation listed under
73.23them is available for the fiscal year ending June 30, 2014, or June 30, 2015, respectively.
73.24Supplemental appropriations for the fiscal year ending June 30, 2014, are effective the
73.25day following final enactment.

73.26				APPROPRIATIONS
73.27				Available for the Year
73.28				Ending June 30
73.29					2014		2015

73.30 73.31

Sec. 2. STATE DEPARTMENTS AND VETERANS APPROPRIATIONS

73.32 73.33

Subdivision 1.Legislative Coordinating Commission

-0-

455,000

74.1$300,000 is for operating costs of the joint
74.2legislative offices.
74.3$155,000 is for the Legislative Water
74.4Commission established in section 4.
74.5$145,000 each fiscal year is added to the base
74.6through fiscal year 2019.

74.7

Subd. 2.Administration

-0-

400,000

74.8$150,000 is for developing and implementing
74.9a certification program for veteran-owned
74.10small businesses in accordance with
74.11Minnesota Statutes, section 16C.19.
74.12$112,000 each year is added to the base.
74.13$250,000 is appropriated for up to five
74.14grants of up to $50,000 each to conduct
74.15a housing needs assessment for veterans.
74.16Up to five percent may be used by the
74.17commissioner to administer these grants. The
74.18grants may be awarded to any government
74.19or nongovernmental organization. The
74.20assessment, which may be a study or
74.21a survey, may examine the need for
74.22scattered site housing for veterans and their
74.23families who are homeless or in danger of
74.24homelessness or for housing that addresses
74.25the health care needs of disabled or aging
74.26veterans. The assessment must be started by
74.27July 30, 2015, and completed by July 30,
74.282016. The commissioner of administration
74.29must provide copies of any completed
74.30assessment to the chairs and ranking minority
74.31members of the legislative committees with
74.32jurisdiction over housing and veterans affairs
74.33no later than January 1, 2017. This is a
74.34onetime appropriation.

74.35

Subd. 3.Racing Commission

100,000

85,000

75.1These appropriations are from the racing
75.2and card playing regulation accounts in the
75.3special revenue fund. These appropriations
75.4are onetime and are available in either year
75.5of the biennium.

75.6

Subd. 4. Amateur Sports Commission

-0-

50,000

75.7$50,000 is to develop a pilot program to
75.8prevent and reduce childhood obesity. This
75.9appropriation is onetime and is available
75.10until June 30, 2017.

75.11

Subd. 5.Minnesota Historical Society

-0-

22,000

75.12$22,000 is for a grant to Farm America for
75.13repairs and maintenance of the Minnesota
75.14Agricultural Interpretive Center and for audit
75.15expenses. This is a onetime appropriation
75.16and is available until June 30, 2017.

75.17

Subd. 6.Board of the Arts

-0-

600,000

75.18For arts education in partnership with the
75.19President's Turnaround Arts Initiative. This
75.20appropriation is canceled if the federal grant
75.21under the initiative is not awarded. This
75.22appropriation is available until June 30,
75.232015. This is a onetime appropriation.

75.24

Subd. 7. Minnesota Humanities Center

-0-

225,000

75.25$125,000 is for the Veterans' Voices
75.26program to educate and engage the
75.27community regarding veterans' contributions,
75.28knowledge, skills, and experiences. Of
75.29this amount, $25,000 is for transfer to the
75.30Association of Minnesota Public Education
75.31Radio Stations for statewide programming to
75.32promote the Veterans' Voices program. This
75.33is a onetime appropriation.
76.1$100,000 is from the arts and cultural
76.2heritage fund for professional development
76.3for kindergarten through grade 12 educators
76.4to better culturally engage their work with
76.5at-risk student populations. This may include
76.6new and original literature that addresses
76.7literacy of emerging cultural communities.
76.8This is a onetime appropriation.

76.9

Subd. 8. Department of Education

-0-

44,000

76.10This appropriation is to implement expedited
76.11and temporary licensing provisions of
76.12Minnesota Statutes, section 197.4552. This
76.13is a onetime appropriation.

76.14

Subd. 9.Board of Accountancy

-0-

44,000

76.15This appropriation is to implement expedited
76.16and temporary licensing provisions of
76.17Minnesota Statutes, section 197.4552. This
76.18is a onetime appropriation.

76.19 76.20 76.21

Subd. 10.Board of Architecture, Engineering, Land Surveying, Landscape, Architecture, Geoscience, and Interior Design

-0-

44,000

76.22This appropriation is to implement expedited
76.23and temporary licensing provisions of
76.24Minnesota Statutes, section 197.4552. This
76.25is a onetime appropriation.

76.26

Subd. 11.Board of Cosmetologist Examiners

-0-

20,000

76.27This appropriation is to implement expedited
76.28and temporary licensing provisions of
76.29Minnesota Statutes, section 197.4552. This
76.30is a onetime appropriation.

76.31

Subd. 12.Board of Barber Examiners

-0-

10,000

76.32This appropriation is to implement expedited
76.33and temporary licensing provisions of
77.1Minnesota Statutes, section 197.4552. This
77.2is a onetime appropriation.

77.3

Subd. 13.Board of Private Detectives

-0-

44,000

77.4This appropriation is to implement expedited
77.5and temporary licensing provisions of
77.6Minnesota Statutes, section 197.4552. This
77.7is a onetime appropriation.

77.8 77.9

Subd. 14.Board of Behavioral Health and Therapy

-0-

15,000

77.10This appropriation is from the state
77.11government special revenue fund to
77.12implement expedited and temporary licensing
77.13provisions of Minnesota Statutes, section
77.14197.4552. This is a onetime appropriation.

77.15

Subd. 15.Board of Dentistry

-0-

10,000

77.16This appropriation is from the state
77.17government special revenue fund to
77.18implement expedited and temporary licensing
77.19provisions of Minnesota Statutes, section
77.20197.4552. This is a onetime appropriation.

77.21 77.22

Subd. 16.Board of Dietetics and Nutrition Practice

-0-

10,000

77.23This appropriation is from the state
77.24government special revenue fund to
77.25implement expedited and temporary licensing
77.26provisions of Minnesota Statutes, section
77.27197.4552. This is a onetime appropriation.

77.28 77.29

Subd. 17.Board of Marriage and Family Therapy

-0-

14,000

77.30This appropriation is from the state
77.31government special revenue fund to
77.32implement expedited and temporary licensing
77.33provisions of Minnesota Statutes, section
77.34197.4552. This is a onetime appropriation.

78.1 78.2

Subd. 18.Board of Nursing Home Administrators

-0-

1,000

78.3This appropriation is from the state
78.4government special revenue fund to
78.5implement expedited and temporary licensing
78.6provisions of Minnesota Statutes, section
78.7197.4552. This is a onetime appropriation.

78.8

Subd. 19.Board of Optometry

-0-

10,000

78.9This appropriation is from the state
78.10government special revenue fund to
78.11implement expedited and temporary licensing
78.12provisions of Minnesota Statutes, section
78.13197.4552. This is a onetime appropriation.

78.14

Subd. 20.Board of Podiatric Medicine

-0-

10,000

78.15This appropriation is from the state
78.16government special revenue fund to
78.17implement expedited and temporary licensing
78.18provisions of Minnesota Statutes, section
78.19197.4552. This is a onetime appropriation.

78.20

Subd. 21.Board of Social Work

-0-

3,000

78.21This appropriation is from the state
78.22government special revenue fund to
78.23implement expedited and temporary licensing
78.24provisions of Minnesota Statutes, section
78.25197.4552. This is a onetime appropriation.

78.26    Sec. 3. Minnesota Statutes 2012, section 3.099, subdivision 3, is amended to read:
78.27    Subd. 3. Leaders. The senate Committee on Rules and Administration for the senate
78.28and the house of representatives Committee on Rules and Legislative Administration for
78.29the house of representatives may each designate for their respective body up to three four
78.30 leadership positions to receive up to 140 percent of the compensation of other members.
78.31At the commencement of each biennial legislative session, each house of the
78.32legislature shall adopt a resolution designating its majority and minority leader.
79.1The majority leader is the person elected by the caucus of members in each house
79.2which is its largest political affiliation. The minority leader is the person elected by the
79.3caucus which is its second largest political affiliation.
79.4EFFECTIVE DATE.This section is effective January 6, 2015.

79.5    Sec. 4. [3.886] LEGISLATIVE WATER COMMISSION.
79.6    Subdivision 1. Establishment. A Legislative Water Commission is established.
79.7    Subd. 2. Membership. (a) The Legislative Water Commission consists of 12
79.8members appointed as follows:
79.9(1) six members of the senate, including three majority party members appointed by
79.10the majority leader and three minority party members appointed by the minority leader; and
79.11(2) six members of the house of representatives, including three majority party
79.12members appointed by the speaker of the house and three minority party members
79.13appointed by the minority leader.
79.14(b) Members serve at the pleasure of the appointing authority and continue to serve
79.15until their successors are appointed or until a member is no longer a member of the
79.16legislative body that appointed the member to the commission. Vacancies shall be filled in
79.17the same manner as the original positions. Vacancies occurring on the commission do not
79.18affect the authority of the remaining members of the Legislative Water Commission to
79.19carry out the function of the commission.
79.20(c) Members shall elect a chair, vice chair, and other officers as determined by
79.21the commission. The chair may convene meetings as necessary to conduct the duties
79.22prescribed by this section.
79.23    Subd. 3. Commission staffing. The Legislative Coordinating Commission must
79.24employ staff and contract with consultants as necessary to enable the Legislative Water
79.25Commission to carry out its duties and functions.
79.26    Subd. 4. Powers and duties. (a) The Legislative Water Commission shall review
79.27water policy reports and recommendations of the Environmental Quality Board, the Board
79.28of Water and Soil Resources, the Pollution Control Agency, the Department of Natural
79.29Resources, the Metropolitan Council, and other water-related reports as may be required
79.30by law or the legislature.
79.31(b) The commission may conduct public hearings and otherwise secure data and
79.32comments.
79.33(c) The commission shall make recommendations as it deems proper to assist the
79.34legislature in formulating legislation.
80.1(d) Data or information compiled by the Legislative Water Commission or its
80.2subcommittees shall be made available to the Legislative-Citizen Commission on
80.3Minnesota Resources, the Clean Water Council, and standing and interim committees of
80.4the legislature on request of the chair of the respective commission, council, or committee.
80.5(e) The commission shall coordinate with the Clean Water Council.
80.6    Subd. 5. Compensation. Members may receive per diem under section 3.099 for
80.7attending commission meetings, and may be reimbursed for expenses incurred doing
80.8the work of the commission, but shall not receive any other compensation for serving
80.9on the commission.
80.10    Subd. 6. Expiration. This section expires July 1, 2019.

80.11    Sec. 5. Minnesota Statutes 2013 Supplement, section 15A.082, subdivision 1, is
80.12amended to read:
80.13    Subdivision 1. Creation. A Compensation Council is created each odd-numbered
80.14year to assist the legislature in establishing the compensation of constitutional officers,
80.15members of the legislature, justices of the Supreme Court, judges of the Court of Appeals
80.16and district court, and the heads of state and metropolitan agencies included in section
80.1715A.0815 .
80.18EFFECTIVE DATE.This section is effective the day following final enactment.

80.19    Sec. 6. Minnesota Statutes 2013 Supplement, section 15A.082, subdivision 3, is
80.20amended to read:
80.21    Subd. 3. Submission of recommendations. (a) By March April 15 in each
80.22odd-numbered year, the Compensation Council shall submit to the speaker of the house
80.23and the president of the senate salary recommendations for constitutional officers,
80.24legislators, justices of the Supreme Court, and judges of the Court of Appeals and district
80.25court. The recommended salary for each other office must take effect on the first Monday
80.26in January of the next odd-numbered year, with no more than one adjustment, to take
80.27effect on January 1 of the year after that. The salary recommendations for legislators,
80.28 judges, and constitutional officers take effect if an appropriation of money to pay the
80.29recommended salaries is enacted after the recommendations are submitted and before
80.30their effective date. Recommendations may be expressly modified or rejected. The salary
80.31recommendations for legislators are subject to additional terms that may be adopted
80.32according to section 3.099, subdivisions 1 and 3.
80.33(b) The council shall also submit to the speaker of the house and the president of
80.34the senate recommendations for the salary ranges of the heads of state and metropolitan
81.1agencies, to be effective retroactively from January 1 of that year if enacted into law. The
81.2recommendations shall include the appropriate group in section 15A.0815 to which each
81.3agency head should be assigned and the appropriate limitation on the maximum range of
81.4the salaries of the agency heads in each group, expressed as a percentage of the salary of
81.5the governor.
81.6EFFECTIVE DATE.This section is effective the day following final enactment.

81.7    Sec. 7. Minnesota Statutes 2012, section 15A.082, subdivision 4, is amended to read:
81.8    Subd. 4. Criteria. In making compensation recommendations, the council shall
81.9consider the amount of compensation paid in government service and the private sector
81.10to persons with similar qualifications, the amount of compensation needed to attract
81.11and retain experienced and competent persons, and the ability of the state to pay the
81.12recommended compensation. In making recommendations for legislative compensation,
81.13the council shall also consider the average length of a legislative session, the amount of
81.14work required of legislators during interim periods, and opportunities to earn income from
81.15other sources without neglecting legislative duties.
81.16EFFECTIVE DATE.This section is effective the day following final enactment.

81.17    Sec. 8. Minnesota Statutes 2012, section 16C.16, subdivision 6a, is amended to read:
81.18    Subd. 6a. Veteran-owned small businesses. (a) Except when mandated by the
81.19federal government as a condition of receiving federal funds, the commissioner shall
81.20award up to a six percent preference, but no less than the percentage awarded to any
81.21other group under this section, in the amount bid on state procurement to certified small
81.22businesses that are majority-owned and operated by: veterans.
81.23(1) recently separated veterans who have served in active military service, at any
81.24time on or after September 11, 2001, and who have been discharged under honorable
81.25conditions from active service, as indicated by the person's United States Department of
81.26Defense form DD-214 or by the commissioner of veterans affairs;
81.27(2) veterans with service-connected disabilities, as determined at any time by the
81.28United States Department of Veterans Affairs; or
81.29(3) any other veteran-owned small businesses certified under section 16C.19,
81.30paragraph (d).
81.31(b) The purpose of this designation is to facilitate the transition of veterans from
81.32military to civilian life, and to help compensate veterans for their sacrifices, including but
82.1not limited to their sacrifice of health and time, to the state and nation during their military
82.2service, as well as to enhance economic development within Minnesota.

82.3    Sec. 9. Minnesota Statutes 2012, section 16C.19, is amended to read:
82.416C.19 ELIGIBILITY; RULES.
82.5(a) A small business wishing to participate in the programs under section 16C.16,
82.6subdivisions 4 to 7, must be certified by the commissioner. The commissioner shall adopt
82.7by rule standards and procedures for certifying that small businesses, small targeted
82.8group businesses, and small businesses located in economically disadvantaged areas,
82.9and veteran-owned small businesses are eligible to participate under the requirements
82.10of sections 16C.16 to 16C.21. The commissioner shall adopt by rule standards and
82.11procedures for hearing appeals and grievances and other rules necessary to carry out the
82.12duties set forth in sections 16C.16 to 16C.21.
82.13(b) The commissioner may make rules which exclude or limit the participation of
82.14nonmanufacturing business, including third-party lessors, brokers, franchises, jobbers,
82.15manufacturers' representatives, and others from eligibility under sections 16C.16 to 16C.21.
82.16(c) The commissioner may make rules that set time limits and other eligibility limits
82.17on business participation in programs under sections 16C.16 to 16C.21.
82.18(d) Notwithstanding paragraph (c), for purposes of sections 16C.16 to 16C.21, a
82.19veteran-owned small business, the principal place of business of which is in Minnesota,
82.20is certified if it has been verified by the United States Department of Veterans Affairs as
82.21being either a veteran-owned small business or a service-disabled veteran-owned small
82.22business, in accordance with Public Law 109-461 and Code of Federal Regulations,
82.23title 38, part 74 Until rules are adopted pursuant to paragraph (a) for the purpose of
82.24certifying veteran-owned small businesses, the provisions of Minnesota Rules, part
82.251230.1700, may be read to include veteran-owned small businesses. In addition to the
82.26documentation required in Minnesota Rules, part 1230.1700, the veteran owner must
82.27have been discharged under honorable conditions from active service, as indicated by the
82.28veteran owner's most current United States Department of Defense form DD-214.

82.29    Sec. 10. Minnesota Statutes 2012, section 122A.18, is amended by adding a
82.30subdivision to read:
82.31    Subd. 7c. Temporary military license. The Board of Teaching shall establish
82.32a temporary license in accordance with section 197.4552 for teaching. The fee for a
82.33temporary license under this subdivision shall be $87.90 for an on-line application or
82.34$86.40 for a paper application.

83.1    Sec. 11. [148.595] TEMPORARY MILITARY PERMIT; FEE.
83.2The Board of Optometry shall establish a temporary permit in accordance with
83.3section 197.4552. The fee for the temporary military permit is $250.

83.4    Sec. 12. Minnesota Statutes 2012, section 148.624, is amended by adding a subdivision
83.5to read:
83.6    Subd. 5. Temporary military permit. The board shall issue a temporary permit to
83.7members of the military in accordance with section 197.4552. The fee for the temporary
83.8permit is $250.

83.9    Sec. 13. Minnesota Statutes 2013 Supplement, section 148B.17, subdivision 2, is
83.10amended to read:
83.11    Subd. 2. Licensure and application fees. Nonrefundable licensure and application
83.12fees established by the board shall not exceed the following amounts:
83.13(1) application fee for national examination is $110;
83.14(2) application fee for Licensed Marriage and Family Therapist (LMFT) state
83.15examination is $110;
83.16(3) initial LMFT license fee is prorated, but cannot exceed $125;
83.17(4) annual renewal fee for LMFT license is $125;
83.18(5) late fee for LMFT license renewal is $50;
83.19(6) application fee for LMFT licensure by reciprocity is $220;
83.20(7) fee for initial Licensed Associate Marriage and Family Therapist (LAMFT)
83.21license is $75;
83.22(8) annual renewal fee for LAMFT license is $75;
83.23(9) late fee for LAMFT renewal is $25;
83.24(10) fee for reinstatement of license is $150; and
83.25(11) fee for emeritus status is $125; and
83.26(12) fee for temporary license for members of the military is $100.

83.27    Sec. 14. Minnesota Statutes 2012, section 148B.53, subdivision 3, is amended to read:
83.28    Subd. 3. Fee. Nonrefundable fees are as follows:
83.29    (1) initial license application fee for licensed professional counseling (LPC) - $150;
83.30    (2) initial license fee for LPC - $250;
83.31    (3) annual active license renewal fee for LPC - $250 or equivalent;
83.32    (4) annual inactive license renewal fee for LPC - $125;
84.1    (5) initial license application fee for licensed professional clinical counseling
84.2(LPCC) - $150;
84.3    (6) initial license fee for LPCC - $250;
84.4    (7) annual active license renewal fee for LPCC - $250 or equivalent;
84.5    (8) annual inactive license renewal fee for LPCC - $125;
84.6    (9) license renewal late fee - $100 per month or portion thereof;
84.7    (10) copy of board order or stipulation - $10;
84.8    (11) certificate of good standing or license verification - $25;
84.9    (12) duplicate certificate fee - $25;
84.10    (13) professional firm renewal fee - $25;
84.11    (14) sponsor application for approval of a continuing education course - $60;
84.12    (15) initial registration fee - $50;
84.13    (16) annual registration renewal fee - $25; and
84.14    (17) approved supervisor application processing fee - $30; and
84.15    (18) temporary license for members of the military - $250.

84.16    Sec. 15. Minnesota Statutes 2012, section 150A.091, is amended by adding a
84.17subdivision to read:
84.18    Subd. 9c. Temporary permit. Applications for a temporary military permit in
84.19accordance with section 197.4552 shall submit a fee not to exceed the amount of $250.

84.20    Sec. 16. Minnesota Statutes 2012, section 153.16, is amended by adding a subdivision
84.21to read:
84.22    Subd. 4. Temporary military permit. The board shall establish a temporary permit
84.23in accordance with section 197.4552. The fee for the temporary military permit is $250.

84.24    Sec. 17. Minnesota Statutes 2012, section 154.11, as amended by Laws 2013, chapter
84.2585, article 5, section 12, is amended to read:
84.26154.11 EXAMINATION OF NONRESIDENT BARBERS AND
84.27INSTRUCTORS OF BARBERING; TEMPORARY APPRENTICE PERMITS;
84.28TEMPORARY MILITARY LICENSE AND APPRENTICE PERMITS.
84.29    Subdivision 1. Examination of nonresidents. A person who meets all of the
84.30requirements for barber registration in sections 154.001, 154.002, 154.003, 154.01 to
84.31154.161 , 154.19 to 154.21, and 154.24 to 154.26 and either has a license, certificate of
84.32registration, or an equivalent as a practicing barber or instructor of barbering from another
84.33state or country which in the discretion of the board has substantially the same requirements
85.1for registering barbers and instructors of barbering as required by sections 154.001,
85.2154.002 , 154.003, 154.01 to 154.161, 154.19 to 154.21, and 154.24 to 154.26 or can prove
85.3by sworn affidavits practice as a barber or instructor of barbering in another state or country
85.4for at least five years immediately prior to making application in this state, shall, upon
85.5payment of the required fee, be issued a certificate of registration without examination.
85.6    Subd. 2. Temporary apprentice permits for nonresidents. Any person who
85.7qualifies for examination as a registered barber under this section may apply for a
85.8temporary apprentice permit which is effective no longer than six months. All persons
85.9holding a temporary apprentice permit are subject to all provisions of sections 154.001,
85.10154.002 , 154.003, 154.01 to 154.161, 154.19 to 154.21, and 154.24 to 154.26 and the
85.11rules adopted by the board under those sections concerning the conduct and obligations
85.12of registered apprentices.
85.13    Subd. 3. Temporary military license. The board shall establish a temporary license
85.14for barbers and master barbers and a temporary permit for apprentices in accordance with
85.15section 197.4552. The fee for a temporary license under this subdivision for a master
85.16barber is $85. The fee for a temporary license under this subdivision for a barber is $180.
85.17The fee for a temporary permit under this subdivision for an apprentice is $80.

85.18    Sec. 18. Minnesota Statutes 2012, section 155A.27, is amended by adding a
85.19subdivision to read:
85.20    Subd. 5a. Temporary military license. The board shall establish temporary
85.21licenses for a cosmetologist, nail technician, and esthetician, in accordance with section
85.22197.4552. The fee for a temporary license under this subdivision for a cosmetologist, nail
85.23technician, or esthetician is $100.

85.24    Sec. 19. Minnesota Statutes 2012, section 181.940, subdivision 2, is amended to read:
85.25    Subd. 2. Employee. "Employee" means a person who performs services for hire
85.26for has been employed by an employer from whom a leave is requested under sections
85.27181.940 to 181.944 for:
85.28(1) at least 12 consecutive months immediately preceding the request or, if the
85.29employer is an educational institution, at least 12 months preceding the request; and
85.30(2) for an average number of hours per week equal to one-half the full-time
85.31equivalent position in the employee's job classification as defined by the employer's
85.32personnel policies or practices or pursuant to the provisions of a collective bargaining
85.33agreement, during those 12 months.
86.1For the purpose of this subdivision, "educational institution" means an elementary or
86.2secondary school.
86.3Employee includes all individuals employed at any site owned or operated by the
86.4employer but does not include an independent contractor.
86.5EFFECTIVE DATE.This section is effective the day following final enactment.

86.6    Sec. 20. [197.4552] EXPEDITED AND TEMPORARY LICENSING FOR
86.7FORMER AND CURRENT MEMBERS OF THE MILITARY.
86.8    Subdivision 1. Expedited licensing processing. Notwithstanding any other law to
86.9the contrary, each professional licensing board defined in section 214.01, subdivisions 2
86.10and 3, shall establish a procedure to expedite the issuance of a license or certification to
86.11perform professional services regulated by each board to a qualified individual who is:
86.12(1) an active duty military member;
86.13(2) the spouse of an active duty military member; or
86.14(3) a veteran who has left service in the two years preceding the date of license or
86.15certification application, and has confirmation of an honorable or general discharge status.
86.16    Subd. 2. Temporary licenses. (a) Notwithstanding any other law to the contrary,
86.17each professional licensing board defined in section 214.01, subdivisions 2 and 3, shall
86.18establish a procedure to issue a temporary license or certification to perform professional
86.19services regulated by each board to a qualified individual who is:
86.20(1) an active duty military member;
86.21(2) the spouse of an active duty military member; or
86.22(3) a veteran who has left service in the two years preceding the date of license or
86.23certification application, and has confirmation of an honorable or general discharge status.
86.24(b) A qualified individual under paragraph (a) must provide evidence of:
86.25(1) a current, valid license, certificate, or permit in another state without history of
86.26disciplinary action by a regulatory authority in the other state; and
86.27(2) a current criminal background study without a criminal conviction that is
86.28determined by the board to adversely affect the applicants' ability to become licensed.
86.29(c) A temporary license or certificate issued under this subdivision shall allow a
86.30qualified individual to perform regulated professional services for a limited length of time
86.31as determined by the licensing board. During the temporary license period, the individual
86.32shall complete the full application procedure as required by applicable law.
86.33    Subd. 3. Rulemaking. Each licensing board may adopt rules to carry out the
86.34provisions of this section.

87.1    Sec. 21. Minnesota Statutes 2012, section 326.04, is amended by adding a subdivision
87.2to read:
87.3    Subd. 1a. Temporary military certificate. The board shall establish a temporary
87.4certificate in accordance with section 197.4552.

87.5    Sec. 22. Minnesota Statutes 2012, section 326.10, is amended by adding a subdivision
87.6to read:
87.7    Subd. 10. Temporary military license. The board shall establish a temporary
87.8license in accordance with section 197.4552 for the practice of architecture, professional
87.9engineering, geosciences, land surveying, landscape architecture, and interior design.
87.10The fee for the temporary license under this subdivision for the practice of architecture,
87.11professional engineering, geosciences, land surveying, landscape architecture, or interior
87.12design is $132.

87.13    Sec. 23. Minnesota Statutes 2012, section 326.3382, is amended by adding a
87.14subdivision to read:
87.15    Subd. 6. Temporary military license. The board shall establish a temporary
87.16license to engage in the business of private detective or protective agent in accordance
87.17with section 197.4552. The fee for the temporary license under this subdivision for a
87.18private detective is $1,000. The fee for a temporary license under this subdivision for a
87.19protective agent is $800.

87.20    Sec. 24. Minnesota Statutes 2012, section 326A.04, is amended by adding a
87.21subdivision to read:
87.22    Subd. 1a. Temporary military certificate. The board shall establish a temporary
87.23military certificate in accordance with section 197.4552.

87.24    Sec. 25. Minnesota Statutes 2013 Supplement, section 326A.04, subdivision 5, is
87.25amended to read:
87.26    Subd. 5. Fee. (a) The board shall charge a fee for each application for initial
87.27issuance or renewal of a certificate or temporary military certificate under this section as
87.28provided in paragraph (b). The fee for the temporary military certificate is $100.
87.29    (b) The board shall charge the following fees:
87.30    (1) initial issuance of certificate, $150;
87.31    (2) renewal of certificate with an active status, $100 per year;
87.32    (3) initial CPA firm permits, except for sole practitioners, $100;
88.1    (4) renewal of CPA firm permits, except for sole practitioners and those firms
88.2specified in clause (17), $35 per year;
88.3    (5) initial issuance and renewal of CPA firm permits for sole practitioners, except for
88.4those firms specified in clause (17), $35 per year;
88.5    (6) annual late processing delinquency fee for permit, certificate, or registration
88.6renewal applications not received prior to expiration date, $50;
88.7    (7) copies of records, per page, 25 cents;
88.8    (8) registration of noncertificate holders, nonlicensees, and nonregistrants in
88.9connection with renewal of firm permits, $45 per year;
88.10    (9) applications for reinstatement, $20;
88.11    (10) initial registration of a registered accounting practitioner, $50;
88.12    (11) initial registered accounting practitioner firm permits, $100;
88.13    (12) renewal of registered accounting practitioner firm permits, except for sole
88.14practitioners, $100 per year;
88.15    (13) renewal of registered accounting practitioner firm permits for sole practitioners,
88.16$35 per year;
88.17    (14) CPA examination application, $40;
88.18    (15) CPA examination, fee determined by third-party examination administrator;
88.19    (16) renewal of certificates with an inactive status, $25 per year; and
88.20    (17) renewal of CPA firm permits for firms that have one or more offices located in
88.21another state, $68 per year.

88.22    Sec. 26. LEGISLATIVE WATER COMMISSION INITIAL APPOINTMENTS
88.23AND FIRST MEETING.
88.24Initial appointments to the Legislative Water Commission established in section
88.254 must be made by September 1, 2014. The first meeting of the commission shall be
88.26convened by the chair of the commission by October 15, 2014. The commission shall
88.27select a chair from its membership at its first meeting.

88.28    Sec. 27. STUDY OF SPECIAL REVENUE ACCOUNT FOR CENTRAL
88.29ACCOMMODATION.
88.30The commissioner of management and budget, in consultation with the Commission
88.31of Deaf, DeafBlind and Hard-of-Hearing Minnesotans, must report to the chairs
88.32and ranking minority members of the senate Finance Committee and the house of
88.33representatives Ways and Means Committee and the governor by January 5, 2015, on
88.34advantages and disadvantages of creating an account for the special revenue fund in the
89.1state treasury to pay for costs of providing accommodations to executive branch state
89.2employees with disabilities. The report must include:
89.3(1) a summary of money spent by executive branch state agencies in fiscal years
89.42012 and 2013 for providing accommodations to executive branch state employees, to
89.5the extent that such expenditures can be determined; and
89.6(2) recommendations for laws and policies needed to implement an account in the
89.7special revenue fund, if one is recommended under this section; or other recommendations
89.8related to best practices in provision of accommodations for employees with disabilities
89.9in the executive branch.

89.10ARTICLE 8

89.11ENVIRONMENT AND AGRICULTURE

89.12

Section 1. SUMMARY OF APPROPRIATIONS.

89.13The amounts shown in this section summarize direct appropriations, by fund, made
89.14in this article.

89.15			2014		2015		Total
89.16	General	$	-0-	$	3,321,000	$	3,321,000
89.17	Environmental		-0-		750,000		750,000
89.18	Remediation		-0-		650,000		650,000
89.19	Natural Resources		-0-		(1,450,000)		(1,450,000)
89.20	Game and Fish		-0-		2,400,000		2,400,000
89.21	Clean Water		-0-		2,500,000		2,500,000
89.22 89.23	Environment and Natural Resources Trust		-0-		490,000		490,000
89.24	Total	$	-0-	$	8,661,000	$	8,661,000

89.25

Sec. 2. APPROPRIATIONS.

89.26The sums shown in the columns marked "Appropriations" are added to or, if shown
89.27in parentheses, subtracted from the appropriations in Laws 2013, chapter 114, to the
89.28agencies and for the purposes specified in this article. The appropriations are from the
89.29general fund, or another named fund, and are available for the fiscal years indicated for
89.30each purpose. The figures "2014" and "2015" used in this article mean that the addition to
89.31the appropriation listed under them is available for the fiscal year ending June 30, 2014, or
89.32June 30, 2015, respectively. Supplemental appropriations for the fiscal year ending June
89.3330, 2014, are effective the day following final enactment.

89.34				APPROPRIATIONS
89.35				Available for the Year
90.1				Ending June 30
90.2					2014		2015

90.3

Sec. 3. POLLUTION CONTROL AGENCY

$

-0-

$

1,600,000

90.4$750,000 in 2015 is from the environmental
90.5fund for SCORE block grants to counties.
90.6$200,000 in 2015 is from the clean water
90.7fund for coordination with the state of
90.8Wisconsin and the National Park Service
90.9on comprehensive phosphorus reduction
90.10activities in the Lake St. Croix portion
90.11of the St. Croix River. The agency shall
90.12work with the St. Croix Basin Water
90.13Resources Planning Team and the St. Croix
90.14River Association in implementing the
90.15water monitoring and phosphorus reduction
90.16activities. This is a onetime appropriation and
90.17is subject to the availability of appropriations
90.18in Laws 2013, chapter 137, article 2, section
90.192, subdivision 2.
90.20$650,000 in 2015 from the remediation
90.21fund for additional staff and administrative
90.22expenses to manage and oversee investigation
90.23and mitigation efforts at superfund sites.
90.24This is a onetime appropriation.

90.25

Sec. 4. NATURAL RESOURCES

90.26

Subdivision 1.Total Appropriation

$

-0-

$

3,421,000

90.27	Appropriations by Fund
90.28	General	-0-	2,471,000
90.29	Natural Resources	-0-	(1,450,000)
90.30	Game and Fish	-0-	2,400,000

90.31The amounts that may be spent for each
90.32purpose are specified in the following
90.33subdivisions.
91.1    Subd. 2. Land and Minerals Management

91.2	Appropriations by Fund
91.3	General	-0-	2,450,000
91.4	Natural Resources	-0-	(1,450,000)

91.5$1,450,000 in 2015 is a reduction to the
91.6appropriation from the minerals management
91.7account in the natural resources fund for
91.8minerals resource management.
91.9$1,450,000 in 2015 is for minerals resource
91.10management.
91.11$1,000,000 in 2015 is to extinguish the
91.12school trust interest in the school trust lands
91.13identified in Minnesota Statutes, section
91.1484.027, subdivision 18, paragraph (c). This
91.15is a onetime appropriation.

91.16

Subd. 3.Ecological and Water Resources

-0-

(1,679,000)

91.17$1,700,000 in 2015 is a reduction to surface
91.18and groundwater management. This is a
91.19onetime reduction.
91.20$21,000 in 2015 for a grant to the
91.21Mississippi Headwaters Board for the cost
91.22of implementing the comprehensive plan for
91.23the upper Mississippi within the areas under
91.24the board's jurisdiction.

91.25

Subd. 4.Parks and Trails Management

-0-

1,700,000

91.26$1,700,000 in 2015 is for parks and
91.27trails management. This is a onetime
91.28appropriation.

91.29

Subd. 5.Fish and Wildlife Management

-0-

2,400,000

91.30$2,000,000 in 2015 is from the game and fish
91.31fund for shooting sports facility grants under
91.32Minnesota Statutes, section 87A.10. This is
91.33a onetime appropriation and is available until
91.34June 30, 2017.
92.1$400,000 in 2015 is from the heritage
92.2enhancement account in the game and fish
92.3fund for a grant to Let's Go Fishing of
92.4Minnesota to provide community outreach
92.5to senior citizens, youth, and veterans and
92.6for the costs associated with establishing
92.7and recruiting new chapters. The grants
92.8must be matched with cash or in-kind
92.9contributions from nonstate sources. Of
92.10this amount, $25,000 is for Asian Outdoor
92.11Heritage for youth fishing recruitment efforts
92.12and outreach in the metropolitan area. The
92.13commissioner may spend up to three percent
92.14of the appropriation to administer the grant.
92.15This is a onetime appropriation and is
92.16available until June 30, 2016.

92.17 92.18

Sec. 5. BOARD OF WATER AND SOIL RESOURCES

$

-0-

$

1,150,000

92.19$1,150,000 in 2015 from the clean water
92.20fund is added to the appropriation to the
92.21Board of Water and Soil Resources for
92.22grants in Laws 2013, chapter 137, article 2,
92.23section 7, paragraph (b). This is a onetime
92.24appropriation.

92.25

Sec. 6. ADMINISTRATION

$

-0-

$

185,000

92.26$185,000 in 2015 is for activities and the
92.27administrative expenses of the school trust
92.28lands director and additional staff, under
92.29Minnesota Statutes, section 127A.353.

92.30 92.31

Sec. 7. LEGISLATIVE COORDINATING COMMISSION

$

-0-

$

15,000

92.32$15,000 in 2015 is for the administrative
92.33expenses of the Permanent School Fund
92.34Commission under Minnesota Statutes,
93.1section 127A.30, and for compensation
93.2and expense reimbursement of commission
93.3members.

93.4

Sec. 8. UNIVERSITY OF MINNESOTA

$

-0-

$

1,640,000

93.5$490,000 in 2015 is from the environment
93.6and natural resources trust fund to develop
93.7and support a terrestrial invasive species
93.8research center at the University of
93.9Minnesota that will develop new techniques
93.10to control terrestrial invasive species. This
93.11is a onetime appropriation and is available
93.12until June 30, 2019.
93.13$170,000 from the environment and natural
93.14resources trust fund appropriated in Laws
93.152011, First Special Session, chapter 2, article
93.163, section 2, subdivision 9, paragraph (d),
93.17Reinvest in Minnesota Wetlands Reserve
93.18Acquisition and Restoration Program
93.19Partnership, is transferred to the Board of
93.20Regents to develop and support a terrestrial
93.21invasive species research center at the
93.22University of Minnesota that will develop
93.23new techniques to control terrestrial invasive
93.24species and is available until June 30, 2019.
93.25$1,150,000 in 2015 from the clean water
93.26fund is for the Forever Green Agricultural
93.27Initiative and to protect the state's natural
93.28resources while increasing efficiency,
93.29profitability, and productivity of Minnesota
93.30farmers by incorporating perennial and
93.31winter annual crops into existing agricultural
93.32practices. This is a onetime appropriation and
93.33is subject to the availability of appropriations
93.34in Laws 2013, chapter 137, article 2, section
93.352, subdivision 2.

94.1

Sec. 9. AGRICULTURE

$

-0-

$

550,000

94.2$350,000 in 2015 is for an increase in retail
94.3food handler inspections.
94.4$1,500,000 in 2015 is a reduction to the
94.5agricultural growth, research, and innovation
94.6program. This is a onetime reduction and
94.7none of this reduction may be allocated to
94.8the county fair arts access grants.
94.9$1,500,000 in 2015 is for a grant to Second
94.10Harvest Heartland to compensate Minnesota
94.11agricultural producers and processors for
94.12costs incurred to harvest and package
94.13for transfer surplus fruits, vegetables, or
94.14other agricultural commodities that would
94.15otherwise go unharvested or be discarded.
94.16Surplus commodities must be distributed
94.17statewide to food shelves and other charitable
94.18organizations that are eligible to receive
94.19food from the food banks. Second Harvest
94.20Heartland may use up to five percent of the
94.21grant for administrative expenses. This is a
94.22onetime appropriation.
94.23$200,000 in 2015 is added to the
94.24appropriation in Laws 2013, chapter 114,
94.25article 1, section 3, subdivision 5, for
94.26distribution to the state's county fairs.

94.27

Sec. 10. METROPOLITAN COUNCIL

$

-0-

$

100,000

94.28$800,000 from the environment and natural
94.29resources trust fund appropriated in Laws
94.302011, First Special Session, chapter 2, article
94.313, section 2, subdivision 9, paragraph (d),
94.32Reinvest in Minnesota Wetland Reserve
94.33Acquisition and Restoration Program
94.34Partnership is transferred to the Metropolitan
95.1Council for a grant to the White Bear Lake
95.2Conservation District to contract with an
95.3engineering firm for a detailed feasibility
95.4study of the lake augmentation option for
95.5White Bear Lake and is available until
95.6June 30, 2016. The detailed feasibility
95.7study must, at a minimum, provide for an
95.8evaluation of alternative routes; preliminary
95.9design; identify regulatory issues; provide
95.10preliminary cost estimates; and identify
95.11any other considerations that would affect
95.12the project's feasibility. The White Bear
95.13Lake Conservation District must choose
95.14an engineering firm that has demonstrated
95.15significant experience working with issues
95.16concerning water resources, watershed
95.17management and water supply management,
95.18and has demonstrated knowledge of the
95.19characterization of groundwater and surface
95.20water interaction in White Bear Lake and
95.21the effect of withdrawals from groundwater
95.22under White Bear Lake.
95.23$100,000 in 2015 is for a grant to the city of
95.24Shoreview for a feasibility study regarding
95.25the lowering of the water level of Turtle Lake
95.26and the possible effects of an augmentation
95.27of the lake.

95.28    Sec. 11. Laws 2013, chapter 114, article 3, section 3, subdivision 6, is amended to read:

95.29

Subd. 6.Remediation Fund

95.30The commissioner shall transfer up
95.31to $46,000,000 $47,150,000 from the
95.32environmental fund to the remediation fund
95.33for the purposes of the remediation fund
96.1under Minnesota Statutes, section 116.155,
96.2subdivision 2 .

96.3    Sec. 12. REPEALER.
96.4Laws 2010, chapter 215, article 3, section 3, subdivision 6, as amended by Laws
96.52010, First Special Session chapter 1, article 6, section 6, and Laws 2013, chapter 114,
96.6article 3, section 9, is repealed.

96.7ARTICLE 9

96.8ENVIRONMENT AND AGRICULTURE FISCAL IMPLEMENTATION
96.9PROVISIONS

96.10    Section 1. Minnesota Statutes 2012, section 16A.125, subdivision 5, is amended to read:
96.11    Subd. 5. Forest trust lands. (a) The term "state forest trust fund lands" as used
96.12in this subdivision, means public land in trust under the Constitution set apart as "forest
96.13lands under the authority of the commissioner" of natural resources as defined by section
96.1489.001, subdivision 13 .
96.15(b) The commissioner of management and budget shall credit the revenue from the
96.16forest trust fund lands to the forest suspense account. The account must specify the trust
96.17funds interested in the lands and the respective receipts of the lands.
96.18(c) After a fiscal year, the commissioner of management and budget shall certify
96.19the costs incurred for forestry during that year under appropriations for the improvement,
96.20administration, and management of state forest trust fund lands and construction and
96.21improvement of forest roads to enhance the forest value of the lands. The certificate
96.22must specify the trust funds interested in the lands. After presentation to the Legislative
96.23Permanent School Fund Commission, the commissioner of natural resources shall
96.24supply the commissioner of management and budget with the information needed for the
96.25certificate. The certificate shall include an analysis that compares costs certified under this
96.26section with costs incurred on other public and private lands with similar land assets.
96.27(d) After a fiscal year, the commissioner shall distribute the receipts credited to the
96.28suspense account during that fiscal year as follows:
96.29(1) the amount of the certified costs incurred by the state for forest management,
96.30forest improvement, and road improvement during the fiscal year shall be transferred to
96.31the forest management investment account established under section 89.039;
96.32(2) the amount of costs incurred by the Legislative Permanent School Fund
96.33Commission under section 127A.30, and by the school trust lands director under section
96.34127A.353, shall be transferred to the general fund;
97.1(3) the balance of the certified costs incurred by the state during the fiscal year
97.2shall be transferred to the general fund; and
97.3(3) (4) the balance of the receipts shall then be returned prorated to the trust funds in
97.4proportion to their respective interests in the lands which produced the receipts.

97.5    Sec. 2. Minnesota Statutes 2012, section 18B.01, is amended by adding a subdivision
97.6to read:
97.7    Subd. 1c. Apiary. "Apiary" means a place where a collection of one or more hives
97.8or colonies of bees or the nuclei of bees are kept.

97.9    Sec. 3. Minnesota Statutes 2012, section 18B.01, is amended by adding a subdivision
97.10to read:
97.11    Subd. 2a. Bee. "Bee" means any stage of the common honeybee, Apis mellifera (L).

97.12    Sec. 4. Minnesota Statutes 2012, section 18B.01, is amended by adding a subdivision
97.13to read:
97.14    Subd. 2b. Bee owner. "Bee owner" means a person who owns an apiary.

97.15    Sec. 5. Minnesota Statutes 2012, section 18B.01, is amended by adding a subdivision
97.16to read:
97.17    Subd. 4c. Colony. "Colony" means the aggregate of worker bees, drones, the queen,
97.18and developing young bees living together as a family unit in a hive or other dwelling.

97.19    Sec. 6. Minnesota Statutes 2012, section 18B.01, is amended by adding a subdivision
97.20to read:
97.21    Subd. 11a. Hive. "Hive" means a frame hive, box hive, box, barrel, log gum, skep,
97.22or any other receptacle or container, natural or artificial, or any part of one, which is
97.23used as domicile for bees.

97.24    Sec. 7. Minnesota Statutes 2012, section 18B.01, is amended by adding a subdivision
97.25to read:
97.26    Subd. 20a. Pollinator. "Pollinator" means an insect that pollinates flowers.

97.27    Sec. 8. Minnesota Statutes 2012, section 18B.03, is amended by adding a subdivision
97.28to read:
98.1    Subd. 4. Pollinators. The commissioner may take enforcement action under
98.2chapter 18D for a violation of this chapter, or any rule adopted under this chapter,
98.3that results in harm to pollinators, including but not limited to applying a product in
98.4a manner inconsistent with the product's label or labeling and resulting in pollinator
98.5death or willfully applying pesticide in a manner inconsistent with the product label or
98.6labeling. The commissioner must deposit any penalty collected under this subdivision in
98.7the pesticide regulatory account in section 18B.05.

98.8    Sec. 9. Minnesota Statutes 2012, section 18B.04, is amended to read:
98.918B.04 PESTICIDE IMPACT ON ENVIRONMENT.
98.10(a) The commissioner shall:
98.11(1) determine the impact of pesticides on the environment, including the impacts on
98.12surface water and groundwater in this state;
98.13(2) develop best management practices involving pesticide distribution, storage,
98.14handling, use, and disposal; and
98.15(3) cooperate with and assist other state agencies and local governments to protect
98.16public health, pollinators, and the environment from harmful exposure to pesticides.
98.17(b) The commissioner may assemble a pollinator emergency response team of
98.18experts under section 16C.10, subdivision 2, to consult in the investigation of pollinator
98.19deaths or illnesses. The pollinator emergency response team may include representatives
98.20from local, state, and federal agencies; academia, including the University of Minnesota;
98.21or other professionals as deemed necessary by the commissioner.

98.22    Sec. 10. [18B.055] COMPENSATION FOR BEES KILLED BY PESTICIDE;
98.23APPROPRIATION.
98.24    Subdivision 1. Compensation required. (a) The commissioner of agriculture must
98.25compensate a person for an acute pesticide poisoning resulting in the death of bees or loss
98.26of bee colonies owned by the person, provided:
98.27(1) the person who applied the pesticide cannot be determined;
98.28(2) the person who applied the pesticide did so in a manner consistent with the
98.29pesticide product's label or labeling; or
98.30(3) the person who applied the pesticide did so in a manner inconsistent with the
98.31pesticide product's label or labeling.
98.32(b) Except as provided in this section, the bee owner is entitled to the fair market
98.33value of the dead bees and bee colonies losses as determined by the commissioner upon
98.34recommendation by academic experts and bee keepers. In any fiscal year, a bee owner
99.1must not be compensated for a claim that is less than $100 or compensated more than
99.2$20,000 for all eligible claims.
99.3(c) To be eligible for compensation under this section, the bee owner must be
99.4registered with a commonly utilized pesticide registry program, as designated by the
99.5commissioner of agriculture.
99.6    Subd. 2. Applicator responsible. In the event a person applies a pesticide in a
99.7manner inconsistent with the pesticide product's label or labeling requirements as approved
99.8by the commissioner and is determined to have caused the acute pesticide poisoning of bees,
99.9resulting in death or loss of a bee colony kept for commercial purposes, then the person so
99.10identified must bear the responsibility of restitution for the value of the bees to the owner.
99.11In these cases the commissioner must not provide compensation as provided in this section.
99.12    Subd. 3. Claim form. The bee owner must file a claim on forms provided by the
99.13commissioner and available on the Department of Agriculture's Web site.
99.14    Subd. 4. Determination. The commissioner must determine whether the death of
99.15the bees or loss of bee colonies was caused by an acute pesticide poisoning, whether the
99.16pesticide applicator can be determined, and whether the pesticide applicator applied the
99.17pesticide product in a manner consistent with the pesticide product's label or labeling.
99.18    Subd. 5. Payments; denial of compensation. (a) If the commissioner determines
99.19the bee death or loss of bee colony was caused by an acute pesticide poisoning and
99.20either the pesticide applicator cannot be determined or the pesticide applicator applied
99.21the pesticide product in a manner consistent with the pesticide product's label or labeling,
99.22the commissioner may award compensation from the pesticide regulatory account. If the
99.23pesticide applicator can be determined and the applicator applied the pesticide product
99.24in a manner inconsistent with the product's label or labeling, the commissioner may
99.25collect a penalty from the pesticide applicator sufficient to compensate the bee owner
99.26for the fair market value of the dead bees and bee colonies losses, and must award the
99.27money to the bee owner.
99.28(b) If the commissioner denies compensation claimed by a bee owner under this
99.29section, the commissioner must issue a written decision based upon the available evidence.
99.30The decision must include specification of the facts upon which the decision is based and
99.31the conclusions on the material issues of the claim. The commissioner must mail a copy
99.32of the decision to the bee owner.
99.33(c) A decision to deny compensation claimed under this section is not subject to the
99.34contested case review procedures of chapter 14, but may be reviewed upon a trial de
99.35novo in a court in the county where the loss occurred. The decision of the court may be
99.36appealed as in other civil cases. Review in court may be obtained by filing a petition for
100.1review with the administrator of the court within 60 days following receipt of a decision
100.2under this section. Upon the filing of a petition, the administrator must mail a copy to the
100.3commissioner and set a time for hearing within 90 days of the filing.
100.4    Subd. 6. Deduction from payment. The commissioner must reduce payments
100.5made under this section by any compensation received by the bee owner for dead bees and
100.6bee colonies losses as proceeds from an insurance policy or from another source.
100.7    Subd. 7. Appropriation. The amount necessary to pay claims under this section,
100.8not to exceed $150,000 per fiscal year, is appropriated from the pesticide regulatory
100.9account in section 18B.05.

100.10    Sec. 11. Minnesota Statutes 2012, section 85.34, subdivision 7, is amended to read:
100.11    Subd. 7. Disposition of proceeds. (a) All revenue derived from the lease of the Fort
100.12Snelling upper bluff, with the exception of payment for costs of the water line as described
100.13in subdivision 6, shall be deposited in the natural resources fund and credited to a state
100.14park account. Interest earned on the money in the account accrues to the account.
100.15(b) Revenue and expenses from the upper bluff shall be tracked separately within
100.16the account. Money in the account derived from the leasing or operation of the property
100.17described in subdivision 1 may be is appropriated annually to the commissioner for
100.18the payment of expenses attributable to the leasing, development, and operation of the
100.19property described in subdivision 1, including, but not limited to, the maintenance, repair,
100.20and rehabilitation of historic buildings and landscapes.

100.21    Sec. 12. Minnesota Statutes 2012, section 85A.02, subdivision 2, is amended to read:
100.22    Subd. 2. Zoological Garden. The board shall acquire, construct, equip, operate
100.23and maintain the Minnesota Zoological Garden at a site in Dakota County legally
100.24described in Laws 1975, chapter 382, section 12. The Zoological Garden shall consist
100.25of adequate facilities and structures for the collection, habitation, preservation, care,
100.26exhibition, examination or study of wild and domestic animals, including, but not limited
100.27to mammals, birds, fish, amphibians, reptiles, crustaceans and mollusks. The board
100.28may provide such lands, buildings and equipment as it deems necessary for parking,
100.29transportation, entertainment, education or instruction of the public in connection with
100.30such Zoological Garden. The Zoological Garden is the official pollinator bank for the state
100.31of Minnesota. For purposes of this subdivision, "pollinator bank" means a program to
100.32avert the extinction of pollinator species by cultivating insurance breeding populations.

100.33    Sec. 13. [87A.10] SHOOTING SPORTS FACILITY GRANTS.
101.1The commissioner of natural resources shall administer a program to provide
101.2cost-share grants to local recreational shooting clubs for up to 50 percent of the costs
101.3of developing or rehabilitating shooting sports facilities for public use. A facility
101.4rehabilitated or developed with a grant under this section must be open to the general
101.5public at reasonable times and for a reasonable fee on a walk-in basis. The commissioner
101.6shall give preference to projects that will provide the most opportunities for youth.

101.7    Sec. 14. [92.83] CONDEMNATION OF SCHOOL TRUST LAND.
101.8    Subdivision 1. Purpose. The purpose of this section is to extinguish the school trust
101.9interest in school trust lands where long-term economic return is prohibited by designation
101.10or policy while producing economic benefits for Minnesota's public schools. For the
101.11purposes of satisfying the Minnesota Constitution, article XI, section 8, which limits the
101.12sale of school trust lands to a public sale, the commissioner of natural resources shall
101.13acquire school trust lands through condemnation, as provided in subdivision 2.
101.14    Subd. 2. Commencement of condemnation proceedings. When the commissioner
101.15of natural resources has determined sufficient money is available to acquire any of the
101.16lands identified under section 84.027, subdivision 18, paragraph (c), the commissioner
101.17shall proceed to extinguish the school trust interest by condemnation action. When
101.18requested by the commissioner, the attorney general shall commence condemnation of
101.19the identified school trust lands.
101.20    Subd. 3. Payment. The portion of the payment of the award and judgment that
101.21is for the value of the land shall be deposited into the permanent school fund. The
101.22remainder of the award and judgment payment shall first be remitted for reimbursement
101.23to the accounts from which expenses were paid, with any remainder deposited into the
101.24permanent school fund.

101.25    Sec. 15. Minnesota Statutes 2012, section 93.22, subdivision 1, is amended to read:
101.26    Subdivision 1. Generally. (a) All payments under sections 93.14 to 93.285 shall be
101.27made to the Department of Natural Resources and shall be credited according to this section.
101.28    (b) Twenty Ten percent of all payments under sections 93.14 to 93.285 shall be
101.29credited to the minerals management account in the natural resources fund as costs for
101.30the administration and management of state mineral resources by the commissioner of
101.31natural resources.
101.32    (c) The remainder of the payments shall be credited as follows:
102.1    (1) if the lands or minerals and mineral rights covered by a lease are held by the state
102.2by virtue of an act of Congress, payments made under the lease shall be credited to the
102.3permanent fund of the class of land to which the leased premises belong;
102.4    (2) if a lease covers the bed of navigable waters, payments made under the lease
102.5shall be credited to the permanent school fund of the state;
102.6    (3) if the lands or minerals and mineral rights covered by a lease are held by the state
102.7in trust for the taxing districts, payments made under the lease shall be distributed annually
102.8on the first day of September to the respective counties in which the lands lie, to be
102.9apportioned among the taxing districts interested therein as follows: county, three-ninths;
102.10town or city, two-ninths; and school district, four-ninths;
102.11    (4) if the lands or mineral rights covered by a lease became the absolute property of
102.12the state under the provisions of chapter 84A, payments made under the lease shall be
102.13distributed as follows: county containing the land from which the income was derived,
102.14five-eighths; and general fund of the state, three-eighths; and
102.15    (5) except as provided under this section and except where the disposition of
102.16payments may be otherwise directed by law, payments made under a lease shall be paid
102.17into the general fund of the state.

102.18    Sec. 16. Minnesota Statutes 2012, section 93.2236, is amended to read:
102.1993.2236 MINERALS MANAGEMENT ACCOUNT.
102.20(a) The minerals management account is created as an account in the natural
102.21resources fund. Interest earned on money in the account accrues to the account. Money in
102.22the account may be spent or distributed only as provided in paragraphs (b) and (c).
102.23(b) If the balance in the minerals management account exceeds $3,000,000
102.24 $1,500,000 on June 30, the amount exceeding $3,000,000 $1,500,000 must be distributed
102.25to the permanent school fund, the permanent university fund, and taxing districts as
102.26provided in section 93.22, subdivision 1, paragraph (c). The amount distributed to each
102.27fund must be in the same proportion as the total mineral lease revenue received in the
102.28previous biennium from school trust lands, university lands, and lands held by the state in
102.29trust for taxing districts.
102.30(c) Subject to appropriation by the legislature, money in the minerals management
102.31account may be spent by the commissioner of natural resources for mineral resource
102.32management and projects to enhance future mineral income and promote new mineral
102.33resource opportunities.

103.1    Sec. 17. Minnesota Statutes 2012, section 103G.251, is amended to read:
103.2103G.251 INVESTIGATION OF ACTIVITIES WITHOUT PERMIT
103.3 AFFECTING WATERS OF THE STATE.
103.4    Subdivision 1. Investigations. If the commissioner determines that an investigation
103.5is in the public interest, the commissioner may investigate and monitor activities being
103.6conducted with or without a permit that may affect waters of the state.
103.7    Subd. 2. Findings and order. (a) With or without a public hearing, the
103.8commissioner may make findings and issue orders related to activities being conducted
103.9without a permit that affect waters of the state as otherwise authorized under this chapter.
103.10(b) A copy of the findings and order must be served on the person to whom the
103.11order is issued.
103.12(c) If the commissioner issues the findings and order without a hearing, the person to
103.13whom the order is issued may file a demand for a hearing with the commissioner. The
103.14demand for a hearing must be accompanied by the bond as provided in section 103G.311,
103.15subdivision 6 , and the hearing must be held in the same manner and with the same
103.16requirements as a hearing held under section 103G.311, subdivision 5. The demand for
103.17a hearing and bond must be filed by 30 days after the person is served with a copy of
103.18the commissioner's order.
103.19(d) The hearing must be conducted as a contested case hearing under chapter 14.
103.20(e) If the person to whom the order is addressed does not demand a hearing or
103.21demands a hearing but fails to file the required bond:
103.22(1) the commissioner's order becomes final at the end of 30 days after the person is
103.23served with the order; and
103.24(2) the person may not appeal the order.
103.25(f) An order of the commissioner may be recorded or filed by the commissioner in
103.26the office of the county recorder or registrar of titles, as appropriate, in the county where
103.27the real property is located as a deed restriction on the property that runs with the land
103.28and is binding on the owners, successors, and assigns until the conditions of the order
103.29are met or the order is rescinded.

103.30    Sec. 18. Minnesota Statutes 2012, section 103G.271, subdivision 5, is amended to read:
103.31    Subd. 5. Prohibition on once-through water use permits. (a) Except as provided
103.32in paragraph (c), the commissioner may not, after December 31, 1990, issue a water
103.33use permit to increase the volume of appropriation from a groundwater source for a
103.34once-through cooling system using in excess of 5,000,000 gallons annually.
104.1(b) Except as provided in paragraph (c), once-through system water use permits
104.2using in excess of 5,000,000 gallons annually, must be terminated by the commissioner
104.3by the end of their design life but not later than December 31, 2010, unless the discharge
104.4is into a public water basin within a nature preserve approved by the commissioner and
104.5established prior to January 1, 2001. Existing once-through systems must not be expanded
104.6and are required to convert to water efficient alternatives within the design life of existing
104.7equipment.
104.8(c) Notwithstanding paragraphs (a) and (b), the commissioner, with the approval of
104.9the commissioners of health and the Pollution Control Agency, may issue once-through
104.10system water use permits on an annual basis for aquifer storage and recovery systems that
104.11return all once-through system water to the source aquifer. Water use permit processing
104.12fees in subdivision 6, paragraph (a), apply to all water withdrawals under this paragraph,
104.13including any reuse of water returned to the source aquifer.
104.14EFFECTIVE DATE.This section is effective January 1, 2015.

104.15    Sec. 19. Minnesota Statutes 2012, section 103G.271, subdivision 6, is amended to read:
104.16    Subd. 6. Water use permit processing fee. (a) Except as described in paragraphs
104.17(b) to (f) (g), a water use permit processing fee must be prescribed by the commissioner in
104.18accordance with the schedule of fees in this subdivision for each water use permit in force
104.19at any time during the year. Fees collected under this paragraph are credited to the water
104.20management account in the natural resources fund. The schedule is as follows, with the
104.21stated fee in each clause applied to the total amount appropriated:
104.22    (1) $140 for amounts not exceeding 50,000,000 gallons per year;
104.23    (2) $3.50 per 1,000,000 gallons for amounts greater than 50,000,000 gallons but less
104.24than 100,000,000 gallons per year;
104.25    (3) $4 per 1,000,000 gallons for amounts greater than 100,000,000 gallons but less
104.26than 150,000,000 gallons per year;
104.27    (4) $4.50 per 1,000,000 gallons for amounts greater than 150,000,000 gallons but
104.28less than 200,000,000 gallons per year;
104.29    (5) $5 per 1,000,000 gallons for amounts greater than 200,000,000 gallons but less
104.30than 250,000,000 gallons per year;
104.31    (6) $5.50 per 1,000,000 gallons for amounts greater than 250,000,000 gallons but
104.32less than 300,000,000 gallons per year;
104.33    (7) $6 per 1,000,000 gallons for amounts greater than 300,000,000 gallons but less
104.34than 350,000,000 gallons per year;
105.1    (8) $6.50 per 1,000,000 gallons for amounts greater than 350,000,000 gallons but
105.2less than 400,000,000 gallons per year;
105.3    (9) $7 per 1,000,000 gallons for amounts greater than 400,000,000 gallons but less
105.4than 450,000,000 gallons per year;
105.5    (10) $7.50 per 1,000,000 gallons for amounts greater than 450,000,000 gallons but
105.6less than 500,000,000 gallons per year; and
105.7    (11) $8 per 1,000,000 gallons for amounts greater than 500,000,000 gallons per year.
105.8    (b) For once-through cooling systems, a water use processing fee must be prescribed
105.9by the commissioner in accordance with the following schedule of fees for each water use
105.10permit in force at any time during the year:
105.11    (1) for nonprofit corporations and school districts, $200 per 1,000,000 gallons; and
105.12    (2) for all other users, $420 per 1,000,000 gallons.
105.13    (c) The fee is payable based on the amount of water appropriated during the year
105.14and, except as provided in paragraph (f), the minimum fee is $100.
105.15    (d) For water use processing fees other than once-through cooling systems:
105.16    (1) the fee for a city of the first class may not exceed $250,000 per year;
105.17    (2) the fee for other entities for any permitted use may not exceed:
105.18    (i) $60,000 per year for an entity holding three or fewer permits;
105.19    (ii) $90,000 per year for an entity holding four or five permits; or
105.20    (iii) $300,000 per year for an entity holding more than five permits;
105.21    (3) the fee for agricultural irrigation may not exceed $750 per year;
105.22    (4) the fee for a municipality that furnishes electric service and cogenerates steam
105.23for home heating may not exceed $10,000 for its permit for water use related to the
105.24cogeneration of electricity and steam; and
105.25    (5) no fee is required for a project involving the appropriation of surface water to
105.26prevent flood damage or to remove flood waters during a period of flooding, as determined
105.27by the commissioner.
105.28    (e) Failure to pay the fee is sufficient cause for revoking a permit. A penalty of two
105.29 ten percent per month calculated from the original due date must be imposed on the unpaid
105.30balance of fees remaining 30 days after the sending of a second notice of fees due. A fee
105.31may not be imposed on an agency, as defined in section 16B.01, subdivision 2, or federal
105.32governmental agency holding a water appropriation permit.
105.33    (f) The minimum water use processing fee for a permit issued for irrigation of
105.34agricultural land is $20 for years in which:
105.35    (1) there is no appropriation of water under the permit; or
106.1    (2) the permit is suspended for more than seven consecutive days between May 1
106.2and October 1.
106.3(g) The commissioner shall waive the water use permit fee for installations and
106.4projects that use storm water runoff or where public entities are diverting water to treat a
106.5water quality issue and returning the water to its source without using the water for any
106.6other purpose, unless the commissioner determines that the proposed use adversely affects
106.7surface water or groundwater to a significant extent.
106.8    (g) (h) A surcharge of $30 per million gallons in addition to the fee prescribed in
106.9paragraph (a) shall be applied to the volume of water used in each of the months of June,
106.10July, and August that exceeds the volume of water used in January for municipal water
106.11use, irrigation of golf courses, and landscape irrigation. The surcharge for municipalities
106.12with more than one permit shall be determined based on the total appropriations from all
106.13permits that supply a common distribution system.

106.14    Sec. 20. Minnesota Statutes 2012, section 103G.281, is amended by adding a
106.15subdivision to read:
106.16    Subd. 4. Penalty for noncompliant reporting. The commissioner may assess
106.17penalties for noncompliant reporting of water use information as provided in this section.
106.18The penalty is ten percent of the annual water use permit processing fee.

106.19    Sec. 21. [103G.299] ADMINISTRATIVE PENALTIES.
106.20    Subdivision 1. Authority to issue penalty orders. (a) As provided in paragraph
106.21(b), the commissioner may issue an order requiring violations to be corrected and
106.22administratively assessing monetary penalties for violations of sections 103G.271 and
106.23103G.275, and any rules adopted under those sections.
106.24(b) An order under this section may be issued to a person for water appropriation
106.25activities without a required permit.
106.26(c) The order must be issued as provided in this section and in accordance with
106.27the plan prepared under subdivision 12.
106.28    Subd. 2. Amount of penalty; considerations. (a) The commissioner may issue
106.29orders assessing administrative penalties based on potential for harm and deviation from
106.30compliance. For a violation that presents: (1) a minor potential for harm and deviation
106.31from compliance, the penalty will be no more than $1,000; (2) a moderate potential for
106.32harm and deviation from compliance, the penalty will be no more than $10,000; and (3)
106.33a severe potential for harm and deviation from compliance, the penalty will be no more
106.34than $20,000.
107.1(b) In determining the amount of a penalty the commissioner may consider:
107.2(1) the gravity of the violation, including potential for, or real, damage to the public
107.3interest or natural resources of the state;
107.4(2) the history of past violations;
107.5(3) the number of violations;
107.6(4) the economic benefit gained by the person by allowing or committing the
107.7violation based on data from local or state bureaus or educational institutions; and
107.8(5) other factors as justice may require, if the commissioner specifically identifies
107.9the additional factors in the commissioner's order.
107.10(c) For a violation after an initial violation, including a continuation of the initial
107.11violation, the commissioner must, in determining the amount of a penalty, consider the
107.12factors in paragraph (b) and the:
107.13(1) similarity of the most recent previous violation and the violation to be penalized;
107.14(2) time elapsed since the last violation;
107.15(3) number of previous violations; and
107.16(4) response of the person to the most recent previous violation identified.
107.17    Subd. 3. Contents of order. An order assessing an administrative penalty under
107.18this section must include:
107.19(1) a concise statement of the facts alleged to constitute a violation;
107.20(2) a reference to the section of the statute, rule, order, or term or condition of
107.21a permit that has been violated;
107.22(3) a statement of the amount of the administrative penalty to be imposed and the
107.23factors upon which the penalty is based; and
107.24(4) a statement of the person's right to review of the order.
107.25    Subd. 4. Corrective order. (a) The commissioner may issue an order assessing a
107.26penalty and requiring the violations cited in the order to be corrected within a time period
107.27specified by the commissioner.
107.28(b) The person to whom the order was issued must provide information to the
107.29commissioner before the 31st day after the order was received demonstrating that the
107.30violation has been corrected or that appropriate steps toward correcting the violation
107.31have been taken.
107.32(c) The commissioner must determine whether the violation has been corrected and
107.33notify the person subject to the order of the commissioner's determination.
107.34    Subd. 5. Penalty. (a) Unless the person requests review of the order under
107.35subdivision 6 or 7 before the penalty is due, the penalty in the order is due and payable:
108.1(1) on the 31st day after the order was received, if the person subject to the order
108.2fails to provide information to the commissioner showing that the violation has been
108.3corrected or that appropriate steps have been taken toward correcting the violation; or
108.4(2) on the 20th day after the person receives the commissioner's determination under
108.5subdivision 4, paragraph (c), if the person subject to the order has provided information
108.6to the commissioner that the commissioner determines is not sufficient to show that the
108.7violation has been corrected or that appropriate steps have been taken toward correcting
108.8the violation.
108.9(b) The penalty is due by 31 days after the order was received, unless review of the
108.10order under subdivision 6 or 7 has been sought.
108.11(c) Interest at the rate established in section 549.09 begins to accrue on penalties
108.12under this subdivision on the 31st day after the order with the penalty was received.
108.13    Subd. 6. Expedited administrative hearing. (a) Within 30 days after receiving
108.14an order or within 20 days after receiving notice that the commissioner has determined
108.15that a violation has not been corrected or appropriate steps have not been taken, the
108.16person subject to an order under this section may request an expedited hearing, using
108.17the procedures under Minnesota Rules, parts 1400.8510 to 1400.8612, to review the
108.18commissioner's determination. The hearing request must specifically state the reasons
108.19for seeking review of the order. The person to whom the order is directed and the
108.20commissioner are the parties to the expedited hearing. The commissioner must notify the
108.21person to whom the order is directed of the time and place of the hearing at least 20 days
108.22before the hearing. The expedited hearing must be held within 30 days after a request for
108.23hearing has been filed with the commissioner unless the parties agree to a later date.
108.24(b) All written arguments must be submitted within ten days following the close of
108.25the hearing. The hearing must be conducted under Minnesota Rules, parts 1400.8510 to
108.261400.8612, as modified by this subdivision.
108.27(c) The administrative law judge must issue a report making recommendations about
108.28the commissioner's action to the commissioner within 30 days following the close of the
108.29record. The administrative law judge may not recommend a change in the amount of the
108.30proposed penalty unless the administrative law judge determines that, based on the factors
108.31in subdivision 2, the amount of the penalty is unreasonable.
108.32(d) If the administrative law judge makes a finding that the hearing was requested
108.33solely for purposes of delay or that the hearing request was frivolous, the commissioner
108.34may add to the amount of the penalty the costs charged to the department by the Office of
108.35Administrative Hearings for the hearing.
109.1(e) If a hearing has been held, the commissioner may not issue a final order until at
109.2least five days after receipt of the report of the administrative law judge. The person to
109.3whom an order is issued may, within those five days, comment to the commissioner on the
109.4recommendations, and the commissioner must consider the comments. The final order
109.5may be appealed in the manner provided in sections 14.63 to 14.69.
109.6(f) If a hearing has been held and a final order issued by the commissioner, the
109.7penalty must be paid by 30 days after the date the final order is received unless review of
109.8the final order is requested under sections 14.63 to 14.69. If review is not requested or the
109.9order is reviewed and upheld, the amount due is the penalty, together with interest accruing
109.10from 31 days after the original order was received at the rate established in section 549.09.
109.11    Subd. 7. Mediation. In addition to review under subdivision 6, the commissioner
109.12may enter into mediation concerning an order issued under this section if the commissioner
109.13and the person to whom the order is issued both agree to mediation.
109.14    Subd. 8. Penalties due and payable. The commissioner may enforce penalties that
109.15are due and payable under this section in any manner provided by law for the collection
109.16of debts.
109.17    Subd. 9. Revocation and suspension of permit. If a person fails to pay a penalty
109.18owed under this section, the commissioner has grounds to revoke a permit or to refuse
109.19to amend a permit or issue a new permit.
109.20    Subd. 10. Cumulative remedy. The authority of the commissioner to issue a
109.21corrective order assessing penalties is in addition to other remedies available under statutory
109.22or common law, except that the state may not seek civil penalties under any other provision
109.23of law for the violations covered by the administrative penalty order. The payment of a
109.24penalty does not preclude the use of other enforcement provisions, under which penalties
109.25are not assessed, in connection with the violation for which the penalty was assessed.
109.26    Subd. 11. Deposit of fees. Fees collected under this section must be credited to the
109.27water management account in the natural resources fund.
109.28    Subd. 12. Plan for use of administrative penalties. The commissioner must
109.29prepare a plan for using the administrative penalty authority in this section. The plan must
109.30include explanations for how the commissioner will determine whether violations are
109.31minor, moderate, or severe. The commissioner must provide a 30-day period for public
109.32comment on the plan. The plan must be finalized within six months after the effective
109.33date of this section.

109.34    Sec. 22. Minnesota Statutes 2013 Supplement, section 116V.03, is amended to read:
109.35116V.03 APPROPRIATION.
110.1$1,000,000 in fiscal year 2014 and each year thereafter is appropriated from the
110.2general fund to the commissioner of revenue for transfer to the agricultural project
110.3utilization account in the special revenue fund for the Agricultural Utilization Research
110.4Institute established under section 116V.01.

110.5    Sec. 23. Laws 2008, chapter 363, article 5, section 4, subdivision 7, as amended by
110.6Laws 2009, chapter 37, article 1, section 61, is amended to read:

110.7

Subd. 7.Fish and Wildlife Management

123,000

119,000

110.8	Appropriations by Fund
110.9	General	-0-	(427,000)
110.10	Game and Fish	123,000	546,000

110.11$329,000 in 2009 is a reduction for fish and
110.12wildlife management.
110.13$46,000 in 2009 is a reduction in the
110.14appropriation for the Minnesota Shooting
110.15Sports Education Center.
110.16$52,000 in 2009 is a reduction for licensing.
110.17$123,000 in 2008 and $246,000 in 2009 are
110.18from the game and fish fund to implement
110.19fish virus surveillance, prepare infrastructure
110.20to handle possible outbreaks, and implement
110.21control procedures for highest risk waters
110.22and fish production operations. This is a
110.23onetime appropriation.
110.24Notwithstanding Minnesota Statutes, section
110.25297A.94 , paragraph (e), $300,000 in 2009
110.26is from the second year appropriation
110.27in Laws 2007, chapter 57, article 1,
110.28section 4, subdivision 7, from the heritage
110.29enhancement account in the game and fish
110.30fund for shooting sports facilities and hunter
110.31education. Of this amount, $200,000 is to
110.32study, predesign, and design a shooting sports
110.33facility in the seven-county metropolitan
110.34area and to establish basic hunter education,
111.1firearms safety, and archery ranges on public
111.2land, and $100,000 is for a grant to the Itasca
111.3County Gun Club for shooting sports facility
111.4improvements. This is available onetime
111.5only and is available until expended.
111.6$300,000 in 2009 is appropriated from the
111.7game and fish fund for only activities that
111.8improve, enhance, or protect fish and wildlife
111.9resources. This is a onetime appropriation.

111.10    Sec. 24. Laws 2013, chapter 114, article 4, section 47, is amended by adding an
111.11effective date to read:
111.12EFFECTIVE DATE.This section is effective June 1, 2013.
111.13EFFECTIVE DATE.This section is effective retroactively from June 1, 2013.

111.14    Sec. 25. BEE VALUATION PROTOCOL REQUIRED.
111.15No later than January 1, 2015, the commissioner of agriculture must report to
111.16the house of representatives and senate committees with jurisdiction over agriculture
111.17finance the protocol that the commissioner developed, in consultation with experts, for
111.18determining the fair market value of bees, hives, colonies, apiaries, and queen apiaries for
111.19purposes of compensation under Minnesota Statutes, section 18B.055.

111.20ARTICLE 10

111.21ECONOMIC DEVELOPMENT AND COMMERCE

111.22

Section 1. SUMMARY OF APPROPRIATIONS.

111.23The amounts shown in this section summarize direct appropriations, by fund, made
111.24in this article.

111.25			2014		2015		Total
111.26	General	$	(350,000)	$	17,192,000	$	16,842,000
111.27	Workforce Development		-0-		2,392,000		2,392,000
111.28	Total	$	(350,000)	$	19,584,000	$	19,234,000

111.29

Sec. 2. APPROPRIATIONS.

111.30The sums shown in the columns marked "Appropriations" are added to or, if shown
111.31in parentheses, subtracted from the appropriations in Laws 2013, chapter 85, to the
112.1agencies and for the purposes specified in this article. The appropriations are from the
112.2general fund, or another named fund, and are available for the fiscal years indicated for
112.3each purpose. The figures "2014" and "2015" used in this article mean that the addition to
112.4the appropriation listed under them is available for the fiscal year ending June 30, 2014, or
112.5June 30, 2015, respectively. Supplemental appropriations for the fiscal year ending June
112.630, 2014, are effective the day following final enactment.

112.7				APPROPRIATIONS
112.8				Available for the Year
112.9				Ending June 30
112.10					2014		2015

112.11 112.12

Sec. 3. DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT

112.13

Subdivision 1.Total Appropriation

$

-0-

$

16,259,000

112.14	Appropriations by Fund
112.15	General	-0-	13,867,000
112.16 112.17	Workforce Development	-0-	2,392,000

112.18The amounts that may be spent for each
112.19purpose are specified in the following
112.20subdivisions.

112.21 112.22

Subd. 2.Business and Community Development

-0-

12,950,000

112.23$2,400,000 in 2015 is for grants to the six
112.24Minnesota regional initiative foundations for
112.25business revolving loans or other lending
112.26programs. This is a onetime appropriation
112.27and is available until expended.
112.28$4,500,000 in 2015 is for the greater
112.29Minnesota business development public
112.30infrastructure grant program under Minnesota
112.31Statutes, section 116J.431, for grants to
112.32design, construct, prepare, and improve
112.33infrastructure for economic development
112.34for the cities of Thief River Falls, Eveleth,
112.35Alexandria, Virginia, and Hibbing. This is a
113.1onetime appropriation and is available until
113.2expended.
113.3$450,000 in 2015 is for grants to small
113.4business development centers under
113.5Minnesota Statutes, section 116J.68. This is
113.6a onetime appropriation and is available until
113.7expended.
113.8$450,000 in 2015 is for a grant to the
113.9neighborhood development center for
113.10the small business incubators program.
113.11Of this amount, $200,000 is for capital
113.12improvements to existing small businesses;
113.13$150,000 is for technical assistance to
113.14business entities operating within a small
113.15business incubator; and $100,000 is for the
113.16creation and operation of a small business
113.17incubator revolving loan fund. This is a
113.18onetime appropriation and is available until
113.19expended.
113.20$150,000 in 2015 is for a grant to the city
113.21of Proctor to design and construct a sand
113.22and salt storage facility to prevent runoff
113.23into surface water. This appropriation is not
113.24available until the commissioner determines
113.25that at least an equal amount is committed to
113.26the project from nonstate sources.
113.27$5,000,000 in 2015 is for the Minnesota
113.28minerals 21st century fund under Minnesota
113.29Statutes, section 116J.423. This is a onetime
113.30appropriation.

113.31

Subd. 3.Workforce Development

-0-

1,200,000

113.32$350,000 in 2015 is from the workforce
113.33development fund for a grant to the Northwest
113.34Indian Opportunities Industrialization
113.35Center and may be used for a green jobs
114.1deconstruction pilot program. This is a
114.2onetime appropriation and is available until
114.3expended.
114.4$250,000 in 2015 is from the workforce
114.5development fund for a grant to the Northeast
114.6Minnesota Office of Job Training. This is a
114.7onetime appropriation and is available until
114.8expended.
114.9$600,000 in 2015 is from the workforce
114.10development fund for a grant to the Twin
114.11Cities RISE! to provide job training. This is
114.12a onetime appropriation and is available until
114.13expended.

114.14

Subd. 4.General Support Services

-0-

500,000

114.15$500,000 in 2015 is for establishing
114.16and operating the interagency Olmstead
114.17Implementation Office. The base
114.18appropriation for the interagency office in
114.19fiscal year 2016 and later is $1,000,000 each
114.20year.

114.21

Subd. 5.Vocational Rehabilitation

-0-

1,609,000

114.22	Appropriations by Fund
114.23	General	-0-	417,000
114.24 114.25	Workforce Development	-0-	1,192,000

114.26$417,000 in 2015 from the general fund
114.27and $500,000 in 2015 from the workforce
114.28development fund are for rate increases to
114.29providers of extended employment services
114.30for persons with severe disabilities under
114.31Minnesota Statutes, section 268A.15. This
114.32is a onetime appropriation and is available
114.33until expended.
114.34$692,000 in 2015 from the workforce
114.35development fund is for grants to the eight
115.1Minnesota Centers for Independent Living
115.2for employment and job training support
115.3services. This is a onetime appropriation and
115.4is available until expended.

115.5

Sec. 4. HOUSING FINANCE AGENCY

$

-0-

$

3,100,000

115.6$3,100,000 in 2015 is for the economic
115.7development and housing challenge program
115.8under Minnesota Statutes, section 462A.33,
115.9for targeted housing for rural comprehensive
115.10or technical colleges that offer natural
115.11resources or aviation maintenance programs
115.12and are located in communities or regions
115.13with low housing vacancy rates. This is a
115.14onetime appropriation and is available until
115.15expended.

115.16 115.17

Sec. 5. BUREAU OF MEDIATION SERVICES

$

-0-

$

125,000

115.18$125,000 in 2015 is for the Public
115.19Employment Relations Board.

115.20

Sec. 6. EXPLORE MINNESOTA TOURISM

$

-0-

$

100,000

115.21$100,000 in 2015 is for a grant to the Mille
115.22Lacs Tourism Council to enhance marketing
115.23activities related to tourism promotion in
115.24the Mille Lacs Lake area. This is a onetime
115.25appropriation.

115.26

Sec. 7. DEPARTMENT OF COMMERCE

$

(350,000)

$

-0-

115.27$350,000 in 2014 is a onetime reduction to
115.28the appropriation for the gold bullion dealer
115.29registration program.

115.30    Sec. 8. TRANSFER.
116.1By June 30, 2015, the commissioner of management and budget shall transfer
116.2$9,000,000 in assets of the workers' compensation assigned risk plan created under
116.3Minnesota Statutes, section 79.252, to the general fund.

116.4    Sec. 9. Laws 2013, chapter 85, article 1, section 3, subdivision 2, is amended to read:

116.5 116.6

Subd. 2.Business and Community Development

53,642,000

45,407,000

116.7	Appropriations by Fund
116.8	General	52,942,000	44,707,000
116.9	Remediation	700,000	700,000

116.10(a)(1) $15,000,000 each year is for
116.11the Minnesota investment fund under
116.12Minnesota Statutes, section 116J.8731. This
116.13appropriation is available until spent.
116.14(2) Of the amount available under clause
116.15(1), up to $3,000,000 in fiscal year 2014
116.16is for a loan to facilitate initial investment
116.17in the purchase and operation of a
116.18biopharmaceutical manufacturing facility.
116.19This loan is not subject to the loan limitations
116.20under Minnesota Statutes, section 116J.8731,
116.21and shall be forgiven by the commissioner
116.22of employment and economic development
116.23upon verification of meeting performance
116.24goals. Purchases related to and for the
116.25purposes of this loan award must be made
116.26between January 1, 2013, and June 30, 2015.
116.27The amount under this clause is available
116.28until expended.
116.29(3) Of the amount available under clause (1),
116.30up to $2,000,000 is available for subsequent
116.31investment in the biopharmaceutical facility
116.32project in clause (2). The amount under this
116.33clause is available until expended. Loan
116.34thresholds under clause (2) must be achieved
116.35and maintained to receive funding. Loans
117.1are not subject to the loan limitations under
117.2Minnesota Statutes, section 116J.8731, and
117.3shall be forgiven by the commissioner of
117.4employment and economic development
117.5upon verification of meeting performance
117.6goals. Purchases related to and for the
117.7purposes of loan awards must be made during
117.8the biennium the loan was received.
117.9(4) Notwithstanding any law to the contrary,
117.10the biopharmaceutical manufacturing facility
117.11in this paragraph shall be deemed eligible
117.12for the Minnesota job creation fund under
117.13Minnesota Statutes, section 116J.8748,
117.14by having at least $25,000,000 in capital
117.15investment and 190 retained employees.
117.16(5) For purposes of clauses (1) to (4),
117.17"biopharmaceutical" and "biologics" are
117.18interchangeable and mean medical drugs
117.19or medicinal preparations produced using
117.20technology that uses biological systems,
117.21living organisms, or derivatives of living
117.22organisms, to make or modify products or
117.23processes for specific use. The medical drugs
117.24or medicinal preparations include but are not
117.25limited to proteins, antibodies, nucleic acids,
117.26and vaccines.
117.27(b) $12,000,000 each year is for the
117.28Minnesota job creation fund under Minnesota
117.29Statutes, section 116J.8748. Of this amount,
117.30the commissioner of employment and
117.31economic development may use up to three
117.32percent for administrative expenses. This
117.33appropriation is available until spent. The
117.34base funding for this program shall be
118.1$12,500,000 each year in the fiscal year
118.22016-2017 biennium.
118.3(c) $1,272,000 each year is from the
118.4general fund for contaminated site cleanup
118.5and development grants under Minnesota
118.6Statutes, sections 116J.551 to 116J.558. This
118.7appropriation is available until expended.
118.8(d) $700,000 each year is from the
118.9remediation fund for contaminated site
118.10cleanup and development grants under
118.11Minnesota Statutes, sections 116J.551 to
118.12116J.558 . This appropriation is available
118.13until expended.
118.14(e) $1,425,000 the first year and $1,425,000
118.15the second year are from the general fund for
118.16the business development competitive grant
118.17program. Of this amount, up to five percent
118.18is for administration and monitoring of the
118.19business development competitive grant
118.20program. All grant awards shall be for two
118.21consecutive years. Grants shall be awarded
118.22in the first year.
118.23(f) $4,195,000 each year is from the general
118.24fund for the Minnesota job skills partnership
118.25program under Minnesota Statutes, sections
118.26116L.01 to 116L.17. If the appropriation for
118.27either year is insufficient, the appropriation
118.28for the other year is available. This
118.29appropriation is available until spent.
118.30(g) $6,000,000 the first year is from the
118.31general fund for the redevelopment program
118.32under Minnesota Statutes, section 116J.571.
118.33This is a onetime appropriation and is
118.34available until spent.
119.1(h) $12,000 each year is from the general
119.2fund for a grant to the Upper Minnesota Film
119.3Office.
119.4(i) $325,000 each year is from the general
119.5fund for the Minnesota Film and TV Board.
119.6The appropriation in each year is available
119.7only upon receipt by the board of $1 in
119.8matching contributions of money or in-kind
119.9contributions from nonstate sources for every
119.10$3 provided by this appropriation, except that
119.11each year up to $50,000 is available on July
119.121 even if the required matching contribution
119.13has not been received by that date.
119.14(j) $100,000 each year is for a grant to the
119.15Northern Lights International Music Festival.
119.16(k) $5,000,000 each year is from the general
119.17fund for a grant to the Minnesota Film
119.18and TV Board for the film production jobs
119.19program under Minnesota Statutes, section
119.20116U.26 . This appropriation is available
119.21until expended. The base funding for this
119.22program shall be $1,500,000 each year in the
119.23fiscal year 2016-2017 biennium.
119.24(l) $375,000 each year is from the general
119.25fund for a grant to Enterprise Minnesota, Inc.,
119.26for the small business growth acceleration
119.27program under Minnesota Statutes, section
119.28116O.115 . This is a onetime appropriation.
119.29(m) $160,000 each year is from the general
119.30fund for a grant to develop and implement
119.31a southern and southwestern Minnesota
119.32initiative foundation collaborative pilot
119.33project. Funds available under this paragraph
119.34must be used to support and develop
119.35entrepreneurs in diverse populations in
120.1southern and southwestern Minnesota. This
120.2is a onetime appropriation and is available
120.3until expended.
120.4(n) $100,000 each year is from the general
120.5fund for the Center for Rural Policy
120.6and Development. This is a onetime
120.7appropriation.
120.8(o) $250,000 each year is from the general
120.9fund for the Broadband Development Office.
120.10(p) $250,000 the first year is from the
120.11general fund for a onetime grant to the St.
120.12Paul Planning and Economic Development
120.13Department for neighborhood stabilization
120.14use in NSP3.
120.15(q) $1,235,000 the first year is from the
120.16general fund for a onetime grant to a city
120.17of the second class that is designated as an
120.18economically depressed area by the United
120.19States Department of Commerce. The
120.20appropriation is for economic development,
120.21redevelopment, and job creation programs
120.22and projects. This appropriation is available
120.23until expended.
120.24(r) $875,000 each year is from the general
120.25fund for the Host Community Economic
120.26Development Program established in
120.27Minnesota Statutes, section 116J.548.
120.28(s) $750,000 the first year is from the general
120.29fund for a onetime grant to the city of Morris
120.30for loans or grants to agricultural processing
120.31facilities for energy efficiency improvements.
120.32Funds available under this section shall be
120.33used to increase conservation and promote
120.34energy efficiency through retrofitting existing
120.35systems and installing new systems to
121.1recover waste heat from industrial processes
121.2and reuse energy. This appropriation is not
121.3available until the commissioner determines
121.4that at least $1,250,000 a match of $750,000
121.5 is committed to the project from nonpublic
121.6sources. This appropriation is available until
121.7expended.
121.8EFFECTIVE DATE.This section is effective retroactively from July 1, 2013.

121.9    Sec. 10. Laws 2013, chapter 85, article 1, section 3, subdivision 6, is amended to read:

121.10

Subd. 6.Vocational Rehabilitation

27,691,000

27,691,000

121.11	Appropriations by Fund
121.12	General	20,861,000	20,861,000
121.13 121.14	Workforce Development	6,830,000	6,830,000

121.15(a) $10,800,000 each year is from the general
121.16fund for the state's vocational rehabilitation
121.17program under Minnesota Statutes, chapter
121.18268A.
121.19(b) $2,261,000 each year is from the general
121.20fund for grants to centers for independent
121.21living under Minnesota Statutes, section
121.22268A.11 .
121.23(c) $5,745,000 each year from the general
121.24fund and $6,830,000 each year from the
121.25workforce development fund is for extended
121.26employment services for persons with
121.27severe disabilities under Minnesota Statutes,
121.28section 268A.15. The allocation of extended
121.29employment funds to Courage Center from
121.30July 1, 2012 to June 30, 2013 must be
121.31contracted to Allina Health systems from
121.32July 1, 2013 to June 30, 2014 2015 to provide
121.33extended employment services in accordance
122.1with Minnesota Rules, parts 3300.2005 to
122.23300.2055.
122.3(d) $2,055,000 each year is from the general
122.4fund for grants to programs that provide
122.5employment support services to persons with
122.6mental illness under Minnesota Statutes,
122.7sections 268A.13 and 268A.14. The base
122.8appropriation for this program is $1,555,000
122.9each year in the fiscal year 2016-2017
122.10biennium.

122.11    Sec. 11. ALTERNATIVE ENERGY PROJECTS.
122.12The amounts appropriated under Laws 2009, chapter 78, article 1, section 3,
122.13subdivision 2, as amended, may be used for grants or loans to manufacturers of bio-based
122.14products.

122.15    Sec. 12. MINNESOTA MINERALS 21ST CENTURY FUND TRANSFER.
122.16(a) If, on the basis of a November forecast of general fund revenues and
122.17expenditures, the commissioner of management and budget determines that there will be
122.18a positive unrestricted general fund balance at the close of the biennium and that the
122.19provisions of Minnesota Statutes, section 16A.152, subdivision 1b, paragraph (b), and
122.20subdivision 2, clauses (1), (2), (3), and (4), are satisfied, the commissioner shall transfer
122.21from the general fund to the Minnesota minerals 21st century fund under Minnesota
122.22Statutes, section 116J.423, an amount not to exceed 20 percent of the positive unrestricted
122.23general fund balance determined in the forecast. The total amount authorized under this
122.24section, for all transfers, must not exceed $19,100,000.
122.25(b) This section is repealed the day following the transfer in which the total amount
122.26transferred under this section to the Minnesota minerals 21st century fund is $19,100,000.
122.27EFFECTIVE DATE.This section is effective for November forecasts issued
122.28following final enactment.

122.29ARTICLE 11

122.30ECONOMIC DEVELOPMENT AND COMMERCE
123.1 FISCAL IMPLEMENTATION PROVISIONS

123.2    Section 1. Minnesota Statutes 2012, section 116J.8731, subdivision 5, is amended to
123.3read:
123.4    Subd. 5. Grant limits. A Minnesota investment fund grant may not be approved
123.5for an amount in excess of $1,000,000. This limit covers all money paid to complete the
123.6same project, whether paid to one or more grant recipients and whether paid in one or
123.7more fiscal years. A local community or recognized Indian tribal government may retain
123.820 percent, but not more than $100,000 The portion of a Minnesota investment fund
123.9grant that exceeds $100,000 must be repaid to the state when it is repaid to the local
123.10community or recognized Indian tribal government by the person or entity to which it
123.11was loaned by the local community or Indian tribal government. Money repaid to the
123.12state must be credited to a Minnesota investment revolving loan account in the state
123.13treasury. Funds in the account are appropriated to the commissioner and must be used
123.14in the same manner as are funds appropriated to the Minnesota investment fund. Funds
123.15repaid to the state through existing Minnesota investment fund agreements must be
123.16credited to the Minnesota investment revolving loan account effective July 1, 2005. A
123.17grant or loan may not be made to a person or entity for the operation or expansion of a
123.18casino or a store which is used solely or principally for retail sales. Persons or entities
123.19receiving grants or loans must pay each employee total compensation, including benefits
123.20not mandated by law, that on an annualized basis is equal to at least 110 percent of the
123.21federal poverty level for a family of four.

123.22    Sec. 2. Minnesota Statutes 2012, section 216B.16, is amended by adding a subdivision
123.23to read:
123.24    Subd. 6e. Revenue allocation among customer classes. (a) This subdivision
123.25applies only to investor-owned electric utilities that have at least 50,000 retail electric
123.26customers, but no more than 200,000 retail electric customers.
123.27(b) For all rate change notification filings made prior to January 1, 2019, cost of
123.28service shall be the primary consideration in the commission's determination of revenue
123.29allocation among customer classes. The commission's discretion to deviate from cost
123.30of service and consider factors other than cost of service when it determines revenue
123.31allocation among customer classes is limited to the following parameters:
123.32(1) no deviations of more than four percent for all filings made after January 1,
123.332015; and
124.1(2) no deviations of more than two percent for all filings made after January 1, 2017.
124.2Revenue allocation among customer classes that deviates from the cost of service must be
124.3supported by a preponderance of the evidence.
124.4(c) For all filings made on or after January 1, 2019, cost of service shall be the only
124.5consideration in the commission's determination of revenue allocation among customer
124.6classes.
124.7(d) At least 60 days prior to its next general rate proceeding, a utility subject to this
124.8subdivision shall meet with interested stakeholders to explore the possibility of expanding
124.9or increasing access to electric affordability programs for low-income customers.
124.10(e) Upon the filing of a general rate case by a utility subject to this subdivision in
124.11which the filing utility seeks to impose rates based on cost of service, the filing utility
124.12must deposit $10,000 into an account devoted to funding a program approved by the
124.13commission under section 216B.16, subdivision 15. The funds shall be used to expand the
124.14outreach of the commission-approved affordability program.
124.15EFFECTIVE DATE.This section is effective the day following final enactment
124.16and applies to a general rate change filed on or after that date.

124.17    Sec. 3. Minnesota Statutes 2012, section 216B.1611, is amended by adding a
124.18subdivision to read:
124.19    Subd. 3a. Project information. (a) Beginning July 1, 2014, each electric utility
124.20shall request an applicant for interconnection of distributed renewable energy generation
124.21to provide the following information, in a format prescribed by the commissioner:
124.22(1) the nameplate capacity of the facility in the application;
124.23(2) the total preincentive installed cost of the generation system at the facility;
124.24(3) the energy source of the facility; and
124.25(4) the zip code in which the facility is to be located.
124.26(b) The commissioner shall develop or identify a system to collect and process
124.27the information under this subdivision from each utility, and make nonproject-specific
124.28data available to the public on a periodic basis as determined by the commissioner, and
124.29in a format determined by the commissioner. The commissioner may solicit proposals
124.30from outside parties to develop the system.
124.31(c) Electric utilities collecting and transferring data under this subdivision are not
124.32responsible for the accuracy, completeness, or quality of the information under this
124.33subdivision.
124.34(d) Any information under this subdivision is nonpublic, until it is made public by
124.35the commissioner as provided under paragraph (b) of this subdivision.
125.1EFFECTIVE DATE.This section is effective the day following final enactment.

125.2    Sec. 4. Minnesota Statutes 2012, section 216B.241, subdivision 1d, is amended to read:
125.3    Subd. 1d. Technical assistance. (a) The commissioner shall evaluate energy
125.4conservation improvement programs on the basis of cost-effectiveness and the reliability
125.5of the technologies employed. The commissioner shall, by order, establish, maintain, and
125.6update energy-savings assumptions that must be used when filing energy conservation
125.7improvement programs. The commissioner shall establish an inventory of the most
125.8effective energy conservation programs, techniques, and technologies, and encourage all
125.9Minnesota utilities to implement them, where appropriate, in their service territories.
125.10The commissioner shall describe these programs in sufficient detail to provide a utility
125.11reasonable guidance concerning implementation. The commissioner shall prioritize the
125.12opportunities in order of potential energy savings and in order of cost-effectiveness. The
125.13commissioner may contract with a third party to carry out any of the commissioner's duties
125.14under this subdivision, and to obtain technical assistance to evaluate the effectiveness of
125.15any conservation improvement program. The commissioner may assess up to $800,000
125.16annually until June 30, 2009, and $450,000 $850,000 annually thereafter for the purposes
125.17of this subdivision. The assessments must be deposited in the state treasury and credited
125.18to the energy and conservation account created under subdivision 2a. An assessment
125.19made under this subdivision is not subject to the cap on assessments provided by section
125.20216B.62 , or any other law.
125.21    (b) Of the assessment authorized under paragraph (a), the commissioner may expend
125.22up to $400,000 annually for the purpose of developing, operating, maintaining, and
125.23providing technical support for a uniform electronic data reporting and tracking system
125.24available to all utilities subject to this section, in order to enable accurate measurement of
125.25the cost and energy savings of the energy conservation improvements required by this
125.26section. This paragraph expires June 30, 2017, and may be used for no more than three
125.27annual assessments occurring prior to that date.
125.28EFFECTIVE DATE.This section is effective the day following final enactment
125.29and applies to assessments made after June 30, 2014.

125.30    Sec. 5. Minnesota Statutes 2012, section 216C.145, is amended to read:
125.31216C.145 MICROENERGY COMMUNITY ENERGY EFFICIENCY AND
125.32RENEWABLE ENERGY LOAN PROGRAM.
126.1    Subdivision 1. Definitions. (a) The definitions in this subdivision apply to this
126.2section.
126.3    (b) "Small-scale Renewable Community energy efficiency and renewable energy"
126.4projects include solar thermal water heating, solar electric or photovoltaic equipment,
126.5small wind energy conversion systems of less than 250 kW, anaerobic digester gas
126.6systems, microhydro systems up to 100 kW, and heating and cooling applications using
126.7geothermal energy solar thermal or ground source technology, and industrial, commercial,
126.8or public energy efficiency projects.
126.9    (c) "Unit of local government" means any home rule charter or statutory city, county,
126.10commission, district, authority, or other political subdivision or instrumentality of this
126.11state, including a sanitary district, park district, the Metropolitan Council, a port authority,
126.12an economic development authority, or a housing and redevelopment authority.
126.13    Subd. 2. Program established. The commissioner of commerce shall develop,
126.14implement, and administer a microenergy community energy efficiency and renewable
126.15energy loan program under this section.
126.16    Subd. 3. Loan purposes. (a) The commissioner may issue low-interest, long-term
126.17loans to units of local government to (1) finance community-owned or publicly owned
126.18small scale renewable energy systems or to cost-effective energy efficiency improvements
126.19to public buildings, (2) provide loans or other aids to small businesses to install small-scale
126.20 renewable energy systems, or (3) provide loans or other aids to industrial or commercial
126.21businesses, including health care facilities, for cost-effective energy efficiency projects or
126.22to install renewable energy systems.
126.23    (b) The commissioner may participate in loans made by the Housing Finance
126.24Agency to residential property owners, private developers, nonprofit organizations,
126.25or units of local government under sections 462A.05, subdivisions 14 and 18; and
126.26462A.33 for the construction, purchase, or rehabilitation of residential housing to facilitate
126.27the installation of small-scale renewable energy systems in residential housing and
126.28cost-effective energy conservation improvements identified in an energy efficiency audit.
126.29The commissioner shall assist the Housing Finance Agency in assessing the technical
126.30qualifications of loan applicants.
126.31(c) A local unit of government shall not require an industrial customer to release
126.32its energy usage data as part of a community energy efficiency project or loan under this
126.33section. Industrial energy usage data may only be released upon the express, written
126.34consent of the industrial customer.
126.35    Subd. 4. Technical standards. The commissioner shall determine technical
126.36standards for small-scale renewable energy systems community energy efficiency and
127.1renewable energy projects to qualify for loans under this section. The commissioner shall
127.2not condition qualification of a community energy efficiency project for a loan under this
127.3section on the production of industrial energy usage data or aggregation of energy usage
127.4data that includes an industrial customer.
127.5    Subd. 5. Loan proposals. (a) At least once a year, the commissioner shall publish in
127.6the State Register a request for proposals from units of local government for a loan under
127.7this section. Within 45 days after the deadline for receipt of proposals, the commissioner
127.8shall select proposals based on the following criteria:
127.9    (1) the reliability and cost-effectiveness of the renewable or energy efficiency
127.10technology to be installed under the proposal;
127.11    (2) the extent to which the proposal effectively integrates with the conservation and
127.12energy efficiency programs or goals of the energy utilities serving the proposer;
127.13    (3) the total life cycle energy use and greenhouse gas emissions reductions per
127.14dollar of installed cost;
127.15    (4) the diversity of the renewable energy or energy efficiency technology installed
127.16under the proposal;
127.17    (5) the geographic distribution of projects throughout the state;
127.18    (6) the percentage of total project cost requested;
127.19    (7) the proposed security for payback of the loan; and
127.20    (8) other criteria the commissioner may determine to be necessary and appropriate.
127.21    Subd. 6. Loan terms. A loan under this section must be issued at the lowest interest
127.22rate required to recover principal and interest plus the costs of issuing the loan, and must
127.23be for a minimum of 15 years, unless the commissioner determines that a shorter loan
127.24period of no less than ten five years is necessary and feasible.
127.25    Subd. 7. Account. A microenergy community energy efficiency and renewable
127.26energy loan account is established in the state treasury. Money in the account consists of
127.27the proceeds of revenue bonds issued under section 216C.146, interest and other earnings
127.28on money in the account, money received in repayment of loans from the account,
127.29legislative appropriations, and money from any other source credited to the account.
127.30    Subd. 8. Appropriation. Money in the account is appropriated to the commissioner
127.31of commerce to make microenergy community energy efficiency and renewable energy
127.32 loans under this section and to the commissioner of management and budget to pay debt
127.33service and other costs under section 216C.146. Payment of debt service costs and funding
127.34reserves take priority over use of money in the account for any other purpose.

128.1    Sec. 6. Minnesota Statutes 2012, section 216C.146, is amended to read:
128.2216C.146 MICROENERGY COMMUNITY ENERGY EFFICIENCY AND
128.3RENEWABLE ENERGY LOAN REVENUE BONDS.
128.4    Subdivision 1. Bonding authority; definition. (a) The commissioner of
128.5management and budget, if requested by the commissioner of commerce, shall sell and
128.6issue state revenue bonds for the following purposes:
128.7    (1) to make microenergy community energy efficiency and renewable energy loans
128.8under section 216C.145;
128.9    (2) to pay the costs of issuance, debt service, and bond insurance or other credit
128.10enhancements, and to fund reserves; and
128.11    (3) to refund bonds issued under this section.
128.12    (b) The aggregate principal amount of bonds for the purposes of paragraph (a),
128.13clause (1), that may be outstanding at any time may not exceed $100,000,000, of which
128.14up to $20,000,000 shall be reserved for business and public entity projects; the principal
128.15amount of bonds that may be issued for the purposes of paragraph (a), clauses (2) and
128.16(3), is not limited.
128.17    (c) For the purpose of this section, "commissioner" means the commissioner of
128.18management and budget.
128.19    Subd. 2. Procedure. The commissioner may sell and issue the bonds on the terms
128.20and conditions the commissioner determines to be in the best interests of the state. The
128.21bonds may be sold at public or private sale. The commissioner may enter into any
128.22agreements or pledges the commissioner determines necessary or useful to sell the bonds
128.23that are not inconsistent with section 216C.145. Sections 16A.672 to 16A.675 apply to
128.24the bonds. The proceeds of the bonds issued under this section must be credited to the
128.25microenergy community energy efficiency and renewable energy loan account created
128.26under section 216C.145.
128.27    Subd. 3. Revenue sources. The debt service on the bonds is payable only from the
128.28following sources:
128.29    (1) revenue credited to the microenergy community energy efficiency and renewable
128.30energy loan account from the sources identified in section 216C.145 or from any other
128.31source; and
128.32    (2) other revenues pledged to the payment of the bonds, including reserves
128.33established by a local government unit.
128.34    Subd. 4. Refunding bonds. The commissioner may issue bonds to refund
128.35outstanding bonds issued under subdivision 1, including the payment of any redemption
128.36premiums on the bonds and any interest accrued or to accrue to the first redemption date
129.1after delivery of the refunding bonds. The proceeds of the refunding bonds may, at the
129.2discretion of the commissioner, be applied to the purchases or payment at maturity of the
129.3bonds to be refunded, or the redemption of the outstanding bonds on the first redemption
129.4date after delivery of the refunding bonds and may, until so used, be placed in escrow to
129.5be applied to the purchase, retirement, or redemption. Refunding bonds issued under this
129.6subdivision must be issued and secured in the manner provided by the commissioner.
129.7    Subd. 5. Not a general or moral obligation. Bonds issued under this section are
129.8not public debt, and the full faith, credit, and taxing powers of the state are not pledged
129.9for their payment. The bonds may not be paid, directly in whole or in part from a tax of
129.10statewide application on any class of property, income, transaction, or privilege. Payment
129.11of the bonds is limited to the revenues explicitly authorized to be pledged under this
129.12section. The state neither makes nor has a moral obligation to pay the bonds if the pledged
129.13revenues and other legal security for them is insufficient.
129.14    Subd. 6. Trustee. The commissioner may contract with and appoint a trustee for
129.15bondholders. The trustee has the powers and authority vested in it by the commissioner
129.16under the bond and trust indentures.
129.17    Subd. 7. Pledges. A pledge made by the commissioner is valid and binding from
129.18the time the pledge is made. The money or property pledged and later received by the
129.19commissioner is immediately subject to the lien of the pledge without any physical
129.20delivery of the property or money or further act, and the lien of the pledge is valid and
129.21binding as against all parties having claims of any kind in tort, contract, or otherwise
129.22against the commissioner, whether or not those parties have notice of the lien or pledge.
129.23Neither the order nor any other instrument by which a pledge is created need be recorded.
129.24    Subd. 8. Bonds; purchase and cancellation. The commissioner, subject to
129.25agreements with bondholders that may then exist, may, out of any money available for the
129.26purpose, purchase bonds of the commissioner at a price not exceeding (1) if the bonds are
129.27then redeemable, the redemption price then applicable plus accrued interest to the next
129.28interest payment date thereon, or (2) if the bonds are not redeemable, the redemption price
129.29applicable on the first date after the purchase upon which the bonds become subject to
129.30redemption plus accrued interest to that date.
129.31    Subd. 9. State pledge against impairment of contracts. The state pledges and
129.32agrees with the holders of any bonds that the state will not limit or alter the rights vested in
129.33the commissioner to fulfill the terms of any agreements made with the bondholders, or
129.34in any way impair the rights and remedies of the holders until the bonds, together with
129.35interest on them, with interest on any unpaid installments of interest, and all costs and
129.36expenses in connection with any action or proceeding by or on behalf of the bondholders,
130.1are fully met and discharged. The commissioner may include this pledge and agreement
130.2of the state in any agreement with the holders of bonds issued under this section.

130.3    Sec. 7. Minnesota Statutes 2012, section 268A.01, subdivision 14, is amended to read:
130.4    Subd. 14. Affirmative business enterprise employment. "Affirmative business
130.5enterprise employment" means employment which provides paid work on the premises of
130.6an affirmative business enterprise as certified by the commissioner.
130.7    Affirmative business enterprise employment is considered community supported
130.8employment for purposes of funding under Minnesota Rules, parts 3300.1000 to
130.93300.2055, provided that the wages for individuals reported must be at or above customary
130.10wages for the same employer. The employer must also provide one benefit package that is
130.11available to all employees at the specific site certified as an affirmative business enterprise.

130.12    Sec. 8. [268A.16] EMPLOYMENT SERVICES FOR PERSONS WHO ARE
130.13DEAF, DEAFBLIND, OR HARD-OF-HEARING.
130.14    Subdivision 1. Deaf, deafblind, and hard-of-hearing grants. (a) The
130.15commissioner shall develop and implement a specialized statewide grant program to
130.16provide long-term supported employment services for persons who are deaf, deafblind,
130.17and hard-of-hearing. Programs and services eligible for grants under this section must:
130.18(1) assist persons who are deaf, deafblind, and hard-of-hearing in retaining and
130.19advancing in employment;
130.20(2) provide services with staff who must possess fluency in all forms of manual
130.21communication, including American Sign Language; knowledge of hearing loss and
130.22psychosocial implications; sensitivity to cultural issues; familiarity with community
130.23services and communication strategies for people who are hard-of-hearing and do not sign;
130.24and awareness of adaptive technology options;
130.25(3) provide specialized employment support services for individuals who have
130.26a combined hearing and vision loss that address the individual's unique ongoing visual
130.27and auditory communication needs; and
130.28(4) involve clients in the planning, development, oversight, and delivery of
130.29long-term ongoing support services.
130.30(b) Priority for funding shall be given to organizations with experience in developing
130.31innovative employment support services for persons who are deaf, deafblind, and
130.32hard-of-hearing. Each applicant for funds under this section shall submit an evaluation
130.33protocol as part of the grant application.
131.1    Subd. 2. Employment services for transition-aged youth who are deaf,
131.2deafblind, and hard-of-hearing. (a) The commissioner shall develop statewide or
131.3regional grant programs to provide school-based communication, access, and employment
131.4services for youth who are deaf, deafblind, and hard-of-hearing. Services must include
131.5staff who have the skills addressed in subdivision 1, clauses (2) and (3), and expertise
131.6in serving transition-aged youth.
131.7(b) Priority for funding shall be given to organizations with experience in providing
131.8innovative employment support services and readiness for postsecondary training for
131.9transition-aged youths who are deaf, deafblind, and hard-of-hearing. Each applicant for
131.10funds under this section shall submit an evaluation protocol as part of the grant application.
131.11    Subd. 3. Administration. Up to five percent of the biennial appropriation for the
131.12purpose of this section is available to the commissioner for administration of the program.
131.13EFFECTIVE DATE.This section is effective July 1, 2015.

131.14    Sec. 9. Minnesota Statutes 2012, section 298.28, subdivision 2, is amended to read:
131.15    Subd. 2. City or town where quarried or produced. (a) 4.5 cents per gross ton of
131.16merchantable iron ore concentrate, hereinafter referred to as "taxable ton," plus the amount
131.17provided in paragraph (c), must be allocated to the city or town in the county in which
131.18the lands from which taconite was mined or quarried were located or within which the
131.19concentrate was produced. If the mining, quarrying, and concentration, or different steps
131.20in either thereof are carried on in more than one taxing district, the commissioner shall
131.21apportion equitably the proceeds of the part of the tax going to cities and towns among
131.22such subdivisions upon the basis of attributing 50 percent of the proceeds of the tax to
131.23the operation of mining or quarrying the taconite, and the remainder to the concentrating
131.24plant and to the processes of concentration, and with respect to each thereof giving due
131.25consideration to the relative extent of such operations performed in each such taxing
131.26district. The commissioner's order making such apportionment shall be subject to review
131.27by the Tax Court at the instance of any of the interested taxing districts, in the same
131.28manner as other orders of the commissioner.
131.29(b) Four cents per taxable ton shall be allocated to cities and organized townships
131.30affected by mining because their boundaries are within three miles of a taconite mine pit
131.31that has been actively mined in at least one of the prior three years. If a city or town is
131.32located near more than one mine meeting these criteria, the city or town is eligible to
131.33receive aid calculated from only the mine producing the largest taxable tonnage. When
131.34more than one municipality qualifies for aid based on one company's production, the aid
131.35must be apportioned among the municipalities in proportion to their populations. Of The
132.1amounts distributed under this paragraph to each municipality, one-half must be used for
132.2infrastructure improvement projects, and one-half must be used for projects in which two
132.3or more municipalities cooperate. Each municipality that receives a distribution under this
132.4paragraph must report annually to the Iron Range Resources and Rehabilitation Board and
132.5the commissioner of Iron Range resources and rehabilitation on the projects involving
132.6cooperation with other municipalities.
132.7(c) The amount that would have been computed for the current year under Minnesota
132.8Statutes 2008, section 126C.21, subdivision 4, for a school district shall be distributed to
132.9the cities and townships within the school district in the proportion that their taxable net
132.10tax capacity within the school district bears to the taxable net tax capacity of the school
132.11district for property taxes payable in the year prior to distribution.

132.12    Sec. 10. Laws 2013, chapter 143, article 11, section 10, is amended to read:
132.13    Sec. 10. 2013 DISTRIBUTION ONLY.
132.14For the 2013 distribution, a special fund is established to receive 38.7 cents per ton of
132.15any excess of the balance remaining after distribution of amounts required under Minnesota
132.16Statutes, section 298.28, subdivision 6. The following amounts are allocated to St. Louis
132.17County acting as the fiscal agent for the recipients for the following specific purposes:
132.18(1) 5.1 cents per ton to the city of Hibbing for improvements to the city's water
132.19supply system;
132.20(2) 4.3 cents per ton to the city of Mountain Iron for the cost of moving utilities
132.21required as a result of actions undertaken by United States Steel Corporation;
132.22(3) 2.5 cents per ton to the city of Biwabik for improvements to the city's water
132.23supply system, payable upon agreement with ArcelorMittal to satisfy water permit
132.24conditions system to further the established collaborative efforts between the city of
132.25Biwabik, the city of Aurora, and surrounding communities;
132.26(4) 2 cents per ton to the city of Tower for the Tower Marina;
132.27(5) 2.4 cents per ton to the city of Grand Rapids for an eco-friendly heat transfer
132.28system to replace aging effluent lines and for parking lot repaving;
132.29(6) 2.4 cents per ton to the city of Two Harbors for wastewater treatment plant
132.30improvements;
132.31(7) 0.9 cents per ton to the city of Ely for the sanitary sewer replacement project;
132.32(8) 0.6 cents per ton to the town of Crystal Bay for debt service of the Claire Nelson
132.33Intermodal Transportation Center;
132.34(9) 0.5 cents per ton to the Greenway Joint Recreation Board for the Coleraine
132.35hockey arena renovations;
133.1(10) 1.2 cents per ton for the West Range Regional Fire Hall and Training Center
133.2to merge the existing fire services of Coleraine, Bovey, Taconite Marble, Calumet, and
133.3Greenway Township;
133.4(11) 2.5 cents per ton to the city of Hibbing for the Memorial Building;
133.5(12) 0.7 cents per ton to the city of Chisholm for public works infrastructure;
133.6(13) 1.8 cents per ton to the Crane Lake Water and Sanitary District for sanitary
133.7sewer extension;
133.8(14) 2.5 cents per ton for the city of Buhl for the roof on the Mesabi Academy;
133.9(15) 1.2 cents per ton to the city of Gilbert for the New Jersey/Ohio Avenue project;
133.10(16) 1.5 2.0 cents per ton to the city of Cook for street improvements, business park
133.11infrastructure, and a maintenance garage;
133.12(17) 0.5 cents per ton to the city of Cook for a water line project;
133.13(18) (17) 1.8 cents per ton to the city of Eveleth to be used for Jones Street
133.14reconstruction and the city auditorium;
133.15(19) (18) 0.5 cents per ton for the city of Keewatin for an electrical substation and
133.16water line replacements;
133.17(20) (19) 3.3 cents per ton for the city of Virginia for Fourth Street North
133.18infrastructure and Franklin Park improvement; and
133.19(21) (20) 0.5 cents per ton to the city of Grand Rapids for an economic development
133.20project.
133.21EFFECTIVE DATE.This section is effective for the 2014 distribution, and all
133.22payments must be made separately and within ten days of the date of the August 2014
133.23payment.

133.24    Sec. 11. 2014 DISTRIBUTION ONLY.
133.25For the 2014 distribution, a special fund is established to receive 18.37 cents per ton of
133.26any excess of the balance remaining after distribution of amounts required under Minnesota
133.27Statutes, section 298.28, subdivision 6. The following amounts are allocated to St. Louis
133.28County acting as the fiscal agent for the recipients for the following specific purposes:
133.29(1) 1.3 cents per ton to the city of Silver Bay for a water project under Highway 61;
133.30(2) 0.5 cents per ton to the city of Grand Rapids for soil and landscape remediation
133.31at the Reif Center;
133.32(3) 0.65 cents per ton to the city of LaPrairie for sewer, water, and road improvements
133.33to accommodate business expansion in the city;
133.34(4) 0.78 cents per ton to the city of Cohasset for an infrastructure project;
134.1(5) 0.39 cents per ton to Balkan Township for a salt storage building and
134.2energy-efficient cold storage building;
134.3(6) 3.0 cents per ton to the city of McKinley to construct a water line from the city
134.4of Gilbert or the city of Biwabik to the city of McKinley's distribution center in order to
134.5secure a potable water source for the city, provided that the city of McKinley secures
134.6the remainder of the project costs from other sources, and expires three years following
134.7the date of distribution;
134.8(7) 6.5 cents per ton to the Iron Range Resources and Rehabilitation Board for
134.9township block grants to be distributed by the board;
134.10(8) 0.5 cents per ton to the city of Marble for a water main and looping project;
134.11(9) 0.65 cents per ton to the city of Nashwauk for an infrastructure project;
134.12(10) 0.65 cents per ton to the city of Babbitt for demolition of a public building;
134.13(11) 0.65 cents per ton to the city of Hoyt Lakes for a storm water project;
134.14(12) 0.65 cents per ton to the city of Aurora for an infrastructure project;
134.15(13) 0.65 cents per ton to the town of Silver Creek for an infrastructure project;
134.16(14) 0.5 cents per ton to the city of Calumet for an infrastructure project;
134.17(15) 0.5 cents per ton to Nashwauk Township for the Nashwauk town hall; and
134.18(16) 0.5 cents per ton to the city of Biwabik for emergency repair of a wastewater
134.19treatment project.
134.20EFFECTIVE DATE.This section is effective for the 2014 distribution, and all
134.21payments must be made separately and within ten days of the date of the August 2014
134.22payment.

134.23    Sec. 12. CIP ELECTRONIC DATA REPORTING AND TRACKING SYSTEM;
134.24EVALUATION.
134.25The commissioner of commerce may utilize a stakeholder group to annually monitor
134.26the usability and product development of systems for electronic data reporting and
134.27tracking for the use of utilities under the conservation improvement plan program under
134.28Minnesota Statutes, section 216B.241. The initial group may be convened by November
134.291, 2014, and must, among others, include representatives from all sectors of the gas and
134.30electric utility industry and providers of energy conservation.

134.31    Sec. 13. REALLOCATION OF BOND PAYMENTS.
134.32In each year subsequent to the year in which the following appropriations terminate
134.33under their terms, an amount equal to the amount of the last year of the school bond
134.34payments from the 2012 production year, payable in 2013, is appropriated from the same
135.1sources listed in this section to the Iron Range school consolidation and cooperatively
135.2operated school account under Minnesota Statutes, section 298.28, subdivision 7a:
135.3(1) Laws 1996, chapter 412, article 5, section 21, subdivision 3, appropriation for
135.4bonds of Independent School District No. 166, Cook County;
135.5(2) Laws 1996, chapter 412, article 5, section 20, subdivision 2, appropriation for
135.6bonds of Independent School District No. 696, Ely;
135.7(3) Laws 1996, chapter 412, article 5, section 20, subdivision 2, appropriation for
135.8bonds of Independent School District No. 706, Virginia:
135.9(4) Laws 1996, chapter 412, article 5, section 20, subdivision 2, appropriation for
135.10bonds of Independent School District No. 2154, Eveleth-Gilbert;
135.11(5) Laws 1998, chapter 398, article 4, section 17, subdivision 2, appropriation for
135.12bonds of Independent School District No. 712, Mountain Iron-Buhl; and
135.13(6) Laws 2008, chapter 154, article 8, section 18, appropriation for bonds of
135.14Independent School District No. 2711, Mesabi East.
135.15EFFECTIVE DATE.This section is effective beginning with the distribution
135.16in 2015.

135.17ARTICLE 12

135.18EARLY CHILDHOOD THROUGH GRADE 12 EDUCATION

135.19    Section 1. Minnesota Statutes 2012, section 13.43, subdivision 16, is amended to read:
135.20    Subd. 16. School district or charter school disclosure of violence or inappropriate
135.21sexual contact. The superintendent of a school district or the superintendent's designee,
135.22or a person having administrative control of a charter school, must release to a requesting
135.23school district or charter school private personnel data on a current or former employee
135.24related to acts of violence toward or sexual contact with a student, if:
135.25(1) an investigation conducted by or on behalf of the school district or law
135.26enforcement affirmed the allegations in writing prior to release and the investigation
135.27resulted in the resignation of the subject of the data; or
135.28(2) the employee resigned while a complaint or charge involving the allegations was
135.29pending and the allegations involved acts of sexual contact with a student.
135.30Data that are released under this subdivision must not include data on the student.

135.31    Sec. 2. Minnesota Statutes 2013 Supplement, section 122A.40, subdivision 8, is
135.32amended to read:
136.1    Subd. 8. Development, evaluation, and peer coaching for continuing contract
136.2teachers. (a) To improve student learning and success, a school board and an exclusive
136.3representative of the teachers in the district, consistent with paragraph (b), may develop
136.4a teacher evaluation and peer review process for probationary and continuing contract
136.5teachers through joint agreement. If a school board and the exclusive representative of the
136.6teachers do not agree to an annual teacher evaluation and peer review process, then the
136.7school board and the exclusive representative of the teachers must implement the state
136.8teacher evaluation plan for evaluation and review under paragraph (c). The process must
136.9include having trained observers serve as peer coaches or having teachers participate in
136.10professional learning communities, consistent with paragraph (b).
136.11    (b) To develop, improve, and support qualified teachers and effective teaching
136.12practices and improve student learning and success, the annual evaluation process for
136.13teachers:
136.14    (1) must, for probationary teachers, provide for all evaluations required under
136.15subdivision 5;
136.16    (2) must establish a three-year professional review cycle for each teacher that
136.17includes an individual growth and development plan, a peer review process, the
136.18opportunity to participate in a professional learning community under paragraph (a), and
136.19at least one summative evaluation performed by a qualified and trained evaluator such as a
136.20school administrator. For the years when a tenured teacher is not evaluated by a qualified
136.21and trained evaluator, the teacher must be evaluated by a peer review;
136.22    (3) must be based on professional teaching standards established in rule;
136.23    (4) must coordinate staff development activities under sections 122A.60 and
136.24122A.61 with this evaluation process and teachers' evaluation outcomes;
136.25    (5) may provide time during the school day and school year for peer coaching and
136.26teacher collaboration;
136.27    (6) may include job-embedded learning opportunities such as professional learning
136.28communities;
136.29    (7) may include mentoring and induction programs;
136.30    (7) (8) must include an option for teachers to develop and present a portfolio
136.31demonstrating evidence of reflection and professional growth, consistent with section
136.32122A.18, subdivision 4 , paragraph (b), and include teachers' own performance assessment
136.33based on student work samples and examples of teachers' work, which may include video
136.34among other activities for the summative evaluation;
136.35    (8) (9) must use data from valid and reliable assessments aligned to state and local
136.36academic standards and must use state and local measures of student growth that may
137.1include value-added models or student learning goals to determine 35 percent of teacher
137.2evaluation results;
137.3    (9) (10) must use longitudinal data on student engagement and connection, and
137.4other student outcome measures explicitly aligned with the elements of curriculum for
137.5which teachers are responsible;
137.6    (10) (11) must require qualified and trained evaluators such as school administrators
137.7to perform summative evaluations and ensure school districts and charter schools provide
137.8for effective evaluator training specific to teacher development and evaluation;
137.9    (11) (12) must give teachers not meeting professional teaching standards under
137.10clauses (3) through (10) (11) support to improve through a teacher improvement process
137.11that includes established goals and timelines; and
137.12    (12) (13) must discipline a teacher for not making adequate progress in the teacher
137.13improvement process under clause (11) (12) that may include a last chance warning,
137.14termination, discharge, nonrenewal, transfer to a different position, a leave of absence, or
137.15other discipline a school administrator determines is appropriate.
137.16    Data on individual teachers generated under this subdivision are personnel data
137.17under section 13.43. The observation and interview notes of peer coaches may only be
137.18disclosed to other school officials with the consent of the teacher being coached.
137.19    (c) The department, in consultation with parents who may represent parent
137.20organizations and teacher and administrator representatives appointed by their respective
137.21organizations, representing the Board of Teaching, the Minnesota Association of School
137.22Administrators, the Minnesota School Boards Association, the Minnesota Elementary
137.23and Secondary Principals Associations, Education Minnesota, and representatives of
137.24the Minnesota Assessment Group, the Minnesota Business Partnership, the Minnesota
137.25Chamber of Commerce, and Minnesota postsecondary institutions with research expertise
137.26in teacher evaluation, must create and publish a teacher evaluation process that complies
137.27with the requirements in paragraph (b) and applies to all teachers under this section and
137.28section 122A.41 for whom no agreement exists under paragraph (a) for an annual teacher
137.29evaluation and peer review process. The teacher evaluation process created under this
137.30subdivision does not create additional due process rights for probationary teachers under
137.31subdivision 5.
137.32EFFECTIVE DATE.This section is effective for the 2014-2015 school year.

137.33    Sec. 3. Minnesota Statutes 2013 Supplement, section 122A.41, subdivision 5, is
137.34amended to read:
138.1    Subd. 5. Development, evaluation, and peer coaching for continuing contract
138.2teachers. (a) To improve student learning and success, a school board and an exclusive
138.3representative of the teachers in the district, consistent with paragraph (b), may develop an
138.4annual teacher evaluation and peer review process for probationary and nonprobationary
138.5teachers through joint agreement. If a school board and the exclusive representative of the
138.6teachers in the district do not agree to an annual teacher evaluation and peer review process,
138.7then the school board and the exclusive representative of the teachers must implement
138.8the state teacher evaluation plan for evaluation and review developed under paragraph
138.9(c). The process must include having trained observers serve as peer coaches or having
138.10teachers participate in professional learning communities, consistent with paragraph (b).
138.11    (b) To develop, improve, and support qualified teachers and effective teaching
138.12practices and improve student learning and success, the annual evaluation process for
138.13teachers:
138.14    (1) must, for probationary teachers, provide for all evaluations required under
138.15subdivision 2;
138.16    (2) must establish a three-year professional review cycle for each teacher that
138.17includes an individual growth and development plan, a peer review process, the
138.18opportunity to participate in a professional learning community under paragraph (a), and
138.19at least one summative evaluation performed by a qualified and trained evaluator such
138.20as a school administrator;
138.21    (3) must be based on professional teaching standards established in rule;
138.22    (4) must coordinate staff development activities under sections 122A.60 and
138.23122A.61 with this evaluation process and teachers' evaluation outcomes;
138.24    (5) may provide time during the school day and school year for peer coaching and
138.25teacher collaboration;
138.26    (6) may include job-embedded learning opportunities such as professional learning
138.27communities;
138.28    (7) may include mentoring and induction programs;
138.29    (7) (8) must include an option for teachers to develop and present a portfolio
138.30demonstrating evidence of reflection and professional growth, consistent with section
138.31122A.18, subdivision 4 , paragraph (b), and include teachers' own performance assessment
138.32based on student work samples and examples of teachers' work, which may include video
138.33among other activities for the summative evaluation;
138.34    (8) (9) must use data from valid and reliable assessments aligned to state and local
138.35academic standards and must use state and local measures of student growth that may
139.1include value-added models or student learning goals to determine 35 percent of teacher
139.2evaluation results;
139.3    (9) (10) must use longitudinal data on student engagement and connection and
139.4other student outcome measures explicitly aligned with the elements of curriculum for
139.5which teachers are responsible;
139.6    (10) (11) must require qualified and trained evaluators such as school administrators
139.7to perform summative evaluations and ensure school districts and charter schools provide
139.8for effective evaluator training specific to teacher development and evaluation;
139.9    (11) (12) must give teachers not meeting professional teaching standards under
139.10clauses (3) through (10) (11) support to improve through a teacher improvement process
139.11that includes established goals and timelines; and
139.12    (12) (13) must discipline a teacher for not making adequate progress in the teacher
139.13improvement process under clause (11) (12) that may include a last chance warning,
139.14termination, discharge, nonrenewal, transfer to a different position, a leave of absence, or
139.15other discipline a school administrator determines is appropriate.
139.16    Data on individual teachers generated under this subdivision are personnel data
139.17under section 13.43. The observation and interview notes of peer coaches may only be
139.18disclosed to other school officials with the consent of the teacher being coached.
139.19    (c) The department, in consultation with parents who may represent parent
139.20organizations and teacher and administrator representatives appointed by their respective
139.21organizations, representing the Board of Teaching, the Minnesota Association of School
139.22Administrators, the Minnesota School Boards Association, the Minnesota Elementary
139.23and Secondary Principals Associations, Education Minnesota, and representatives of
139.24the Minnesota Assessment Group, the Minnesota Business Partnership, the Minnesota
139.25Chamber of Commerce, and Minnesota postsecondary institutions with research expertise
139.26in teacher evaluation, must create and publish a teacher evaluation process that complies
139.27with the requirements in paragraph (b) and applies to all teachers under this section and
139.28section 122A.40 for whom no agreement exists under paragraph (a) for an annual teacher
139.29evaluation and peer review process. The teacher evaluation process created under this
139.30subdivision does not create additional due process rights for probationary teachers under
139.31subdivision 2.
139.32EFFECTIVE DATE.This section is effective for the 2014-2015 school year.

139.33    Sec. 4. Minnesota Statutes 2012, section 122A.414, subdivision 2, is amended to read:
139.34    Subd. 2. Alternative teacher professional pay system. (a) To participate in this
139.35program, a school district, intermediate school district, school site, or charter school must
140.1have an educational improvement plan under section 122A.413 and an alternative teacher
140.2professional pay system agreement under paragraph (b). A charter school participant also
140.3must comply with subdivision 2a.
140.4    (b) The alternative teacher professional pay system agreement must:
140.5    (1) describe how teachers can achieve career advancement and additional
140.6compensation;
140.7    (2) describe how the school district, intermediate school district, school site, or
140.8charter school will provide teachers with career advancement options that allow teachers
140.9to retain primary roles in student instruction and facilitate site-focused professional
140.10development that helps other teachers improve their skills;
140.11    (3) reform the "steps and lanes" salary schedule, prevent any teacher's compensation
140.12paid before implementing the pay system from being reduced as a result of participating
140.13in this system, and base at least 60 percent of any compensation increase on teacher
140.14performance using:
140.15    (i) schoolwide student achievement gains under section 120B.35 or locally selected
140.16standardized assessment outcomes, or both;
140.17    (ii) measures of student achievement growth that may include value-added models
140.18or student learning goals, consistent with section 122A.40, subdivision 8, clause (9), or
140.19122A.41, subdivision 5, clause (9); and
140.20    (iii) an objective evaluation program that includes: under section 122A.40,
140.21subdivision 8, paragraph (b), clause (2), or 122A.41, subdivision 5, paragraph (b), clause (2)
140.22    (A) individual teacher evaluations aligned with the educational improvement plan
140.23under section 122A.413 and the staff development plan under section 122A.60; and
140.24    (B) objective evaluations using multiple criteria conducted by a locally selected and
140.25periodically trained evaluation team that understands teaching and learning;
140.26    (4) provide integrated ongoing site-based professional development activities for
140.27participation in job-embedded learning opportunities such as professional learning
140.28communities to improve instructional skills and learning that are aligned with student needs
140.29under section 122A.413, consistent with the staff development plan under section 122A.60
140.30and led during the school day by trained teacher leaders such as master or mentor teachers;
140.31    (5) allow any teacher in a participating school district, intermediate school district,
140.32school site, or charter school that implements an alternative pay system to participate in
140.33that system without any quota or other limit; and
140.34    (6) encourage collaboration rather than competition among teachers.
141.1EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015 and
141.2later. Paragraph (b), clause (3), is effective for agreements under this section approved
141.3after August 1, 2015.

141.4    Sec. 5. Minnesota Statutes 2012, section 122A.415, subdivision 1, is amended to read:
141.5    Subdivision 1. Revenue amount. (a) A school district, intermediate school district,
141.6school site, or charter school that meets the conditions of section 122A.414 and submits an
141.7application approved by the commissioner is eligible for alternative teacher compensation
141.8revenue.
141.9(b) For school district and intermediate school district applications, the commissioner
141.10must consider only those applications to participate that are submitted jointly by a
141.11district and the exclusive representative of the teachers. The application must contain an
141.12alternative teacher professional pay system agreement that:
141.13(1) implements an alternative teacher professional pay system consistent with
141.14section 122A.414; and
141.15(2) is negotiated and adopted according to the Public Employment Labor Relations
141.16Act under chapter 179A, except that notwithstanding section 179A.20, subdivision 3, a
141.17district may enter into a contract for a term of two or four years.
141.18Alternative teacher compensation revenue for a qualifying school district or site in
141.19which the school board and the exclusive representative of the teachers agree to place
141.20teachers in the district or at the site on the alternative teacher professional pay system
141.21equals $260 times the number of pupils enrolled at the district or site on October 1 of
141.22the previous fiscal year. Alternative teacher compensation revenue for a qualifying
141.23intermediate school district must be calculated under section 126C.10, subdivision 34
141.24 subdivision 4, paragraphs (a) and (b).
141.25(c) For a newly combined or consolidated district, the revenue shall be computed
141.26using the sum of pupils enrolled on October 1 of the previous year in the districts entering
141.27into the combination or consolidation. The commissioner may adjust the revenue computed
141.28for a site using prior year data to reflect changes attributable to school closings, school
141.29openings, or grade level reconfigurations between the prior year and the current year.
141.30(d) The revenue is available only to school districts, intermediate school districts,
141.31school sites, and charter schools that fully implement an alternative teacher professional
141.32pay system by October 1 of the current school year.
141.33EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
141.34and later.

142.1    Sec. 6. Minnesota Statutes 2012, section 123A.05, subdivision 2, is amended to read:
142.2    Subd. 2. Reserve revenue. Each district that is a member of an area learning center
142.3or alternative learning program must reserve revenue in an amount equal to the sum of
142.4(1) at least between 90 and 100 percent of the district average general education revenue
142.5per adjusted pupil unit minus an amount equal to the product of the formula allowance
142.6according to section 126C.10, subdivision 2, times .0485 .0466, calculated without
142.7basic skills revenue and transportation sparsity revenue, times the number of pupil units
142.8attending an area learning center or alternative learning program under this section, plus
142.9(2) the amount of basic skills revenue generated by pupils attending the area learning
142.10center or alternative learning program. The amount of reserved revenue under this
142.11subdivision may only be spent on program costs associated with the area learning center
142.12or alternative learning program.
142.13EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
142.14and later.

142.15    Sec. 7. [123A.482] JOINT POWERS COOPERATIVE FACILITY.
142.16    Subdivision 1. Schools may be jointly operated. Two or more school districts may
142.17agree to jointly operate a secondary facility. The districts may choose to operate the
142.18facility according to a joint powers agreement under section 123A.78 or 471.59.
142.19    Subd. 2. Expanded program offerings. A jointly operated secondary program
142.20seeking funding under section 123A.485 must demonstrate to the commissioner's
142.21satisfaction that the jointly operated program provides enhanced learning opportunities and
142.22broader curriculum offerings to the students attending that program. The commissioner
142.23must approve or disapprove a cooperative secondary program within 60 days of receipt of
142.24an application.
142.25    Subd. 2a. Transfer of employees. An employee transferred between members of a
142.26joint powers agreement under this section is not required to serve a statutory or contractual
142.27probationary period. The employee shall receive credit on the receiving district's salary
142.28schedule for the employee's educational attainment and years of continuous service in
142.29the sending district, or shall receive a comparable salary, whichever is greater. The
142.30employee shall receive credit for accrued sick leave and rights to severance benefits as if
142.31the employee had been employed by the receiving district during the employee's years of
142.32employment in the sending district.
142.33    Subd. 3. Revenue. An approved program that is jointly operated under this section
142.34is eligible for aid under section 123A.485 and qualifies for a facilities grant under sections
142.35123A.44 to 123A.446.
143.1    Subd. 4. Duty to maintain elementary and secondary schools met. A school
143.2district operating a joint facility under this section meets the requirements of section
143.3123A.64.
143.4    Subd. 5. Estimated market value limit exclusion. Bonds for a cooperative facility
143.5operated under this section issued by a member school district are not subject to the net
143.6debt limit under section 475.53, subdivision 4.
143.7    Subd. 6. Allocation of levy authority for joint facility. For purposes of determining
143.8each member district's school levy, a jointly operated secondary program may allocate
143.9program costs to each member district according to the joint powers agreement and each
143.10member district may include those costs in its tax levy. The joint powers agreement may
143.11choose to allocate costs on any basis adopted as part of the joint powers agreement.
143.12    Subd. 7. Effect of consolidation. The joint powers agreement may allow member
143.13school districts that choose to consolidate to continue to certify levies separately based on
143.14each component district's characteristics.
143.15    Subd. 8. Bonds. A joint powers district formed under this section may issue bonds
143.16according to section 123A.78 or its member districts may issue bonds individually after
143.17complying with this subdivision. The joint powers board must submit the project for
143.18review and comment under section 123B.71. The joint powers board must hold a hearing
143.19on the proposal. If the bonds are not issued under section 123A.78, each member district
143.20of the joint powers district must submit the question of authorizing borrowing of funds for
143.21the project to the voters of the district at a special election. The question submitted shall
143.22state the total amount of funding needed from that district. The member district may issue
143.23the bonds according to chapter 475 and certify the levy required by section 475.61 only if
143.24a majority of those voting on the question in that district vote in the affirmative and only
143.25after the board has adopted a resolution pledging the full faith and credit of that unit. The
143.26resolution must irrevocably commit that unit to pay an agreed-upon share of any debt levy
143.27shortages that, together with other funds available, would allow the member school board
143.28to pay the principal and interest on the obligations. The clerk of the joint powers board
143.29must certify the vote of any bond elections to the commissioner. Bonds issued under this
143.30section first qualify for debt service equalization aid in fiscal year 2018.
143.31    Subd. 9. Election. A district entering into a joint powers agreement under this
143.32section may conduct a referendum seeking approval for a new facility. This election may
143.33be held separately or at the same time as a bond election under subdivision 8. If the
143.34election is held at the same time, the questions may be asked separately or as a conjunctive
143.35question. The question must be approved by a majority of those voting on the question.
144.1If asked separately and the question fails, a district may not proceed with the sale of
144.2bonds according to subdivision 8.
144.3EFFECTIVE DATE.This section is effective the day following final enactment.

144.4    Sec. 8. Minnesota Statutes 2012, section 123A.485, is amended to read:
144.5123A.485 CONSOLIDATION TRANSITION REVENUE AID.
144.6    Subdivision 1. Eligibility and use. A district that operates a cooperative facility
144.7under section 123A.482 or that has been reorganized after June 30, 1994, under section
144.8123A.48 is eligible for consolidation transition revenue. Revenue is equal to the sum of
144.9 aid under subdivision 2 and levy under subdivision 3. Consolidation transition revenue
144.10 aid may only be used according to this section. Revenue must be used for the following
144.11purposes and may be distributed among these purposes at the discretion of the district or
144.12the governing board of the cooperative facility:
144.13(1) to offer early retirement incentives as provided by section 123A.48, subdivision
144.1423 ;
144.15(2) to reduce operating debt as defined in section 123B.82;
144.16(3) to enhance learning opportunities for students in the reorganized district; and
144.17(4) to repay building debt; or
144.18(5) for other costs incurred in the reorganization.
144.19Revenue received and utilized under clause (3) or (4) (5) may be expended for
144.20operating, facilities, and/or equipment.
144.21    Subd. 2. Aid. (a) Consolidation transition aid is equal to $200 $300 times the
144.22number of resident adjusted pupil units in the newly created cooperative facility under
144.23section 123A.482 or the consolidated district in the year of consolidation and $100 times
144.24the number of resident pupil units in the first year following the year of consolidation
144.25 under section 123A.48. The number of pupil units used to calculate aid in either year
144.26shall not exceed 1,000 for districts consolidating July 1, 1994, and 1,500 for districts
144.27consolidating July 1, 1995, and thereafter A district may receive aid under this section for
144.28not more than five years except as provided in subdivision 4.
144.29(b) If the total appropriation for consolidation transition aid for any fiscal year, plus
144.30any amount transferred under section 127A.41, subdivision 8, is insufficient to pay all
144.31districts the full amount of aid earned, the department must first pay the districts in the first
144.32year following the year of consolidation the full amount of aid earned and distribute any
144.33remaining funds to the newly created districts in the first year of consolidation.
145.1    Subd. 3. Levy. If the aid available in subdivision 2 is insufficient to cover the costs
145.2of the district under section 123A.48, subdivision 23, the district may levy the difference
145.3over a period of time not to exceed three years.
145.4    Subd. 4. New districts. If a district enters into a cooperative secondary facilities
145.5program or consolidates with another district that has received aid under section 123A.39,
145.6subdivision 3 , or 123A.485 for a combination or consolidation taking effect within
145.7six years of the effective date of the new consolidation or the start of the cooperative
145.8secondary facilities program, only the pupil units in the district or districts not previously
145.9 cooperating or reorganized must be counted for aid purposes under subdivision 2. If
145.10two or more districts consolidate and all districts received aid under subdivision 2 for a
145.11consolidation taking effect within six years of the effective date of the new consolidation,
145.12only one quarter of the pupil units in the newly created district must be used to determine
145.13aid under subdivision 2.
145.14EFFECTIVE DATE.This section is effective for state aid for fiscal year 2017
145.15and later.

145.16    Sec. 9. Minnesota Statutes 2012, section 123A.64, is amended to read:
145.17123A.64 DUTY TO MAINTAIN ELEMENTARY AND SECONDARY
145.18SCHOOLS.
145.19Each district must maintain classified elementary and secondary schools, grades 1
145.20through 12, unless the district is exempt according to section 123A.61 or 123A.62, has
145.21made an agreement with another district or districts as provided in sections 123A.30,
145.22123A.32 , or sections 123A.35 to 123A.43, or 123A.17, subdivision 7, or has received a
145.23grant under sections 123A.441 to 123A.446, or has formed a cooperative under section
145.24123A.482. A district that has an agreement according to sections 123A.35 to 123A.43 or
145.25123A.32 must operate a school with the number of grades required by those sections. A
145.26district that has an agreement according to section 123A.30 or 123A.17, subdivision 7, or
145.27has received a grant under sections 123A.441 to 123A.446 must operate a school for the
145.28grades not included in the agreement, but not fewer than three grades.

145.29    Sec. 10. Minnesota Statutes 2013 Supplement, section 123B.53, subdivision 1, is
145.30amended to read:
145.31    Subdivision 1. Definitions. (a) For purposes of this section, the eligible debt service
145.32revenue of a district is defined as follows:
146.1    (1) the amount needed to produce between five and six percent in excess of the
146.2amount needed to meet when due the principal and interest payments on the obligations
146.3of the district for eligible projects according to subdivision 2, including the amounts
146.4necessary for repayment of energy loans according to section 216C.37 or sections 298.292
146.5to 298.298, debt service loans and capital loans, lease purchase payments under section
146.6126C.40, subdivision 2 , alternative facilities levies under section 123B.59, subdivision
146.75 , paragraph (a), minus
146.8    (2) the amount of debt service excess levy reduction for that school year calculated
146.9according to the procedure established by the commissioner.
146.10    (b) The obligations in this paragraph are excluded from eligible debt service revenue:
146.11    (1) obligations under section 123B.61;
146.12    (2) the part of debt service principal and interest paid from the taconite environmental
146.13protection fund or Douglas J. Johnson economic protection trust, excluding both the
146.14portion of taconite payments from the Iron Range school consolidation and cooperatively
146.15operated school account under section 298.28, subdivision 7a, and any payments made
146.16from the Douglas J. Johnson economic protection trust fund under section 298.292,
146.17subdivision 2, clause (6);
146.18    (3) obligations issued under Laws 1991, chapter 265, article 5, section 18, as
146.19amended by Laws 1992, chapter 499, article 5, section 24; and
146.20    (4) obligations under section 123B.62.; and
146.21    (5) obligations under section 123B.535.
146.22    (c) For purposes of this section, if a preexisting school district reorganized under
146.23sections 123A.35 to 123A.43, 123A.46, and 123A.48 is solely responsible for retirement
146.24of the preexisting district's bonded indebtedness, capital loans or debt service loans, debt
146.25service equalization aid must be computed separately for each of the preexisting districts.
146.26    (d) For purposes of this section, the adjusted net tax capacity determined according
146.27to sections 127A.48 and 273.1325 shall be adjusted to include the tax capacity of property
146.28generally exempted from ad valorem taxes under section 272.02, subdivision 64.

146.29    Sec. 11. [123B.535] NATURAL DISASTER DEBT SERVICE EQUALIZATION.
146.30    Subdivision 1. Definitions. (a) For purposes of this section, the eligible natural
146.31disaster debt service revenue of a district is defined as the amount needed to produce
146.32between five and six percent in excess of the amount needed to meet when due the
146.33principal and interest payments on the obligations of the district that would otherwise
146.34qualify under section 123B.53 under the following conditions:
147.1    (1) the district was impacted by a natural disaster event or area occurring January
147.21, 2005, or later, as declared by the President of the United States of America, which is
147.3eligible for Federal Emergency Management Agency payments;
147.4    (2) the natural disaster caused $500,000 or more in damages to school district
147.5buildings; and
147.6    (3) the repair and replacement costs are not covered by insurance payments or
147.7Federal Emergency Management Agency payments.
147.8    (b) For purposes of this section, the adjusted net tax capacity equalizing factor
147.9equals the quotient derived by dividing the total adjusted net tax capacity of all school
147.10districts in the state for the year before the year the levy is certified by the total number of
147.11adjusted pupil units in the state for the current school year.
147.12    (c) For purposes of this section, the adjusted net tax capacity determined according
147.13to sections 127A.48 and 273.1325 shall be adjusted to include the tax capacity of property
147.14generally exempted from ad valorem taxes under section 272.02, subdivision 64.
147.15    Subd. 2. Notification. A district eligible for natural disaster debt service
147.16equalization revenue under subdivision 1 must notify the commissioner of the amount of
147.17its intended natural disaster debt service revenue calculated under subdivision 1 for all
147.18bonds sold prior to the notification by July 1 of the calendar year the levy is certified.
147.19    Subd. 3. Natural disaster debt service equalization revenue. The debt service
147.20equalization revenue of a district equals the greater of zero or the eligible debt service
147.21revenue, minus the greater of zero or the difference between:
147.22    (1) the amount raised by a levy of ten percent times the adjusted net tax capacity
147.23of the district; and
147.24    (2) the district's eligible debt service revenue under section 123B.53.
147.25    Subd. 4. Equalized natural disaster debt service levy. A district's equalized
147.26natural disaster debt service levy equals the district's natural disaster debt service
147.27equalization revenue times the lesser of one or the ratio of:
147.28    (1) the quotient derived by dividing the adjusted net tax capacity of the district for
147.29the year before the year the levy is certified by the adjusted pupil units in the district for
147.30the school year ending in the year prior to the year the levy is certified; to
147.31    (2) 300 percent of the statewide adjusted net tax capacity equalizing factor.
147.32    Subd. 5. Natural disaster debt service equalization aid. A district's natural
147.33disaster debt service equalization aid equals the difference between the district's natural
147.34disaster debt service equalization revenue and the district's equalized natural disaster
147.35debt service levy.
148.1    Subd. 6. Natural disaster debt service equalization aid payment schedule. Debt
148.2service equalization aid must be paid according to section 127A.45, subdivision 10.
148.3EFFECTIVE DATE.This section is effective for levies certified for taxable year
148.42015 and revenue for fiscal year 2016 and later.

148.5    Sec. 12. Minnesota Statutes 2013 Supplement, section 123B.54, is amended to read:
148.6123B.54 DEBT SERVICE APPROPRIATION.
148.7    (a) The amount necessary to make debt service equalization aid payments under
148.8section sections 123B.53 and 123B.535 is annually appropriated from the general fund to
148.9the commissioner of education.
148.10    (b) The appropriations in paragraph (a) must be reduced by the amount of any
148.11money specifically appropriated for the same purpose in any year from any state fund.
148.12EFFECTIVE DATE.This section is effective for revenue for fiscal year 2016
148.13and later.

148.14    Sec. 13. Minnesota Statutes 2012, section 123B.71, subdivision 8, is amended to read:
148.15    Subd. 8. Review and comment. A school district, a special education cooperative,
148.16or a cooperative unit of government, as defined in section 123A.24, subdivision 2, must not
148.17initiate an installment contract for purchase or a lease agreement, hold a referendum for
148.18bonds, nor solicit bids for new construction, expansion, or remodeling of an educational
148.19facility that requires an expenditure in excess of $500,000 per school site if it has a capital
148.20loan outstanding, or $1,400,000 $2,000,000 per school site if it does not have a capital
148.21loan outstanding, prior to review and comment by the commissioner. The commissioner
148.22may exempt A facility addition, maintenance project, or remodeling project funded only
148.23with general education aid and levy revenue, deferred maintenance revenue, alternative
148.24facilities bonding and levy program revenue, lease levy proceeds, capital facilities bond
148.25proceeds, or health and safety revenue is exempt from this provision after reviewing a
148.26written request from a school district describing the scope of work. A capital project under
148.27section 123B.63 addressing only technology is exempt from this provision if the district
148.28submits a school board resolution stating that funds approved by the voters will be used
148.29only as authorized in section 126C.10, subdivision 14. A school board shall not separate
148.30portions of a single project into components to avoid the requirements of this subdivision.

148.31    Sec. 14. Minnesota Statutes 2012, section 123B.71, subdivision 9, is amended to read:
149.1    Subd. 9. Information required. A school board proposing to construct, expand,
149.2or remodel a facility described in that requires a review and comment under subdivision
149.38 shall submit to the commissioner a proposal containing information including at least
149.4the following:
149.5(1) the geographic area and population to be served, preschool through grade 12
149.6student enrollments for the past five years, and student enrollment projections for the
149.7next five years;
149.8(2) a list of existing facilities by year constructed, their uses, and an assessment of
149.9the extent to which alternate facilities are available within the school district boundaries
149.10and in adjacent school districts;
149.11(3) a list of the specific deficiencies of the facility that demonstrate the need for a
149.12new or renovated facility to be provided, the process used to determine the deficiencies, a
149.13list of those deficiencies that will and will not be addressed by the proposed project, and a
149.14list of the specific benefits that the new or renovated facility will provide to the students,
149.15teachers, and community users served by the facility;
149.16(4) the relationship of the project to any priorities established by the school district,
149.17educational cooperatives that provide support services, or other public bodies in the
149.18service area;
149.19(5) a description of the pedestrian, bicycle, and transit connections between the
149.20school and nearby residential areas that make it easier for children, teachers, and parents
149.21to get to the school by walking, bicycling, and taking transit;
149.22(6) a specification of how the project maximizes the opportunity for cooperative use
149.23of existing park, recreation, and other public facilities and whether and how the project
149.24will increase collaboration with other governmental or nonprofit entities;
149.25(7) (4) a description of the project, including the specification of site and outdoor
149.26space acreage and square footage allocations for classrooms, laboratories, and support
149.27spaces; estimated expenditures for the major portions of the project; and the dates the
149.28project will begin and be completed;
149.29(8) (5) a specification of the source of financing the project, including applicable
149.30statutory citations; the scheduled date for a bond issue or school board action; a schedule
149.31of payments, including debt service equalization aid; and the effect of a bond issue on
149.32local property taxes by the property class and valuation;
149.33(9) an analysis of how the proposed new or remodeled facility will affect school
149.34district operational or administrative staffing costs, and how the district's operating budget
149.35will cover any increased operational or administrative staffing costs;
150.1(10) a description of the consultation with local or state transportation officials
150.2on multimodal school site access and safety issues, and the ways that the project will
150.3address those issues;
150.4(11) a description of how indoor air quality issues have been considered and a
150.5certification that the architects and engineers designing the facility will have professional
150.6liability insurance;
150.7(12) as required under section 123B.72, for buildings coming into service after July 1,
150.82002, a certification that the plans and designs for the extensively renovated or new facility's
150.9heating, ventilation, and air conditioning systems will meet or exceed code standards; will
150.10provide for the monitoring of outdoor airflow and total airflow of ventilation systems; and
150.11will provide an indoor air quality filtration system that meets ASHRAE standard 52.1;
150.12(13) a specification of any desegregation requirements that cannot be met by any
150.13other reasonable means;
150.14(14) a specification of how the facility will utilize environmentally sustainable
150.15school facility design concepts;
150.16(15) a description of how the architects and engineers have considered the American
150.17National Standards Institute Acoustical Performance Criteria, Design Requirements
150.18and Guidelines for Schools of the maximum background noise level and reverberation
150.19times; and
150.20    (16) any existing information from the relevant local unit of government about the
150.21cumulative costs to provide infrastructure to serve the school, such as utilities, sewer,
150.22roads, and sidewalks.
150.23    (6) confirmations of the district and contracted professionals that the project is
150.24planned and will be executed to consider and comply with the following:
150.25    (i) uniform municipal contracting law under section 471.345;
150.26    (ii) sustainable design;
150.27    (iii) school facility commissioning under section 123B.72 requiring certification that
150.28plans and designs for an extensively renovated or new facility's heating, ventilation, and
150.29air conditioning systems will meet or exceed current code standards; and will provide an
150.30air quality filtration system that meets ASHRAE standard 52.1;
150.31    (iv) American National Standards Institute Acoustical Performance Criteria, Design
150.32Requirements and Guidelines for Schools of the maximum background noise level and
150.33reverberation times;
150.34    (v) State Fire Code;
150.35    (vi) applicable building code under chapter 326B;
151.1    (vii) consultation with appropriate governmental units regarding utilities, roads,
151.2sewers, sidewalks, retention ponds, school bus and automobile traffic, and safe access
151.3for walkers and bicyclists.

151.4    Sec. 15. Minnesota Statutes 2013 Supplement, section 123B.75, subdivision 5, is
151.5amended to read:
151.6    Subd. 5. Levy recognition. For fiscal year 2011 2014 and later years, in June of
151.7each year, the school district must recognize as revenue, in the fund for which the levy
151.8was made, the lesser of:
151.9(1) the sum of May, June, and July school district tax settlement revenue received in
151.10that calendar year, plus general education aid according to section 126C.13, subdivision
151.114 , received in July and August of that calendar year; or
151.12(2) the sum of:
151.13(i) the greater of 48.6 percent of the referendum levy certified according to section
151.14126C.17 in the prior calendar year, or 31 percent of the referendum levy certified
151.15according to section 126C.17 in calendar year 2000; plus
151.16(ii) the entire amount of the levy certified in the prior calendar year according
151.17to section 124D.4531, 124D.86, subdivision 4, for school districts receiving revenue
151.18under sections 124D.86, subdivision 3, clauses (1), (2), and (3); 124D.862, for Special
151.19School District No. 1, Minneapolis, Independent School District No. 625, St. Paul, and
151.20Independent School District No. 709, Duluth; 126C.41, subdivisions 1, 2, paragraph (a),
151.21and 3, paragraphs (b), (c), and (d); 126C.43, subdivision 2; and 126C.48, subdivision 6; plus
151.22(iii) 48.6 percent of the amount of the levy certified in the prior calendar year for the
151.23school district's general and community service funds, plus or minus auditor's adjustments,
151.24that remains after subtracting the referendum levy certified according to section 126C.17
151.25and the amount recognized according to item (ii).

151.26    Sec. 16. Minnesota Statutes 2012, section 124D.09, subdivision 9, is amended to read:
151.27    Subd. 9. Enrollment priority. A postsecondary institution shall give priority to its
151.28postsecondary students when enrolling 10th, 11th, and 12th grade pupils in its courses.
151.29A postsecondary institution may provide information about its programs to a secondary
151.30school or to a pupil or parent and it may advertise or otherwise recruit or solicit a
151.31secondary pupil to enroll in its programs on educational and programmatic grounds only.
151.32An institution must not enroll secondary pupils, for postsecondary enrollment options
151.33purposes, in remedial, developmental, or other courses that are not college level, except
151.34when a student eligible to participate in the graduation incentives program under section
152.1124D.68 enrolls full-time in a middle or early college program specifically designed to
152.2allow the student to earn dual high school and college credit. In this case, the student shall
152.3receive developmental college credit and not college credit for completing remedial or
152.4developmental courses. Once a pupil has been enrolled in a postsecondary course under
152.5this section, the pupil shall not be displaced by another student.
152.6EFFECTIVE DATE.This section is effective July 1, 2014.

152.7    Sec. 17. Minnesota Statutes 2012, section 124D.09, subdivision 13, is amended to read:
152.8    Subd. 13. Financial arrangements. For a pupil enrolled in a course under this
152.9section, the department must make payments according to this subdivision for courses that
152.10were taken for secondary credit.
152.11The department must not make payments to a school district or postsecondary
152.12institution for a course taken for postsecondary credit only. The department must not
152.13make payments to a postsecondary institution for a course from which a student officially
152.14withdraws during the first 14 days of the quarter or semester or who has been absent from
152.15the postsecondary institution for the first 15 consecutive school days of the quarter or
152.16semester and is not receiving instruction in the home or hospital.
152.17A postsecondary institution shall receive the following:
152.18(1) for an institution granting quarter credit, the reimbursement per credit hour shall
152.19be an amount equal to 88 percent of the product of the formula allowance minus $415
152.20 $425, multiplied by 1.3 1.2, and divided by 45; or
152.21(2) for an institution granting semester credit, the reimbursement per credit hour
152.22shall be an amount equal to 88 percent of the product of the general revenue formula
152.23allowance minus $415 $425, multiplied by 1.3 1.2, and divided by 30.
152.24The department must pay to each postsecondary institution 100 percent of the
152.25amount in clause (1) or (2) within 30 days of receiving initial enrollment information
152.26each quarter or semester. If changes in enrollment occur during a quarter or semester,
152.27the change shall be reported by the postsecondary institution at the time the enrollment
152.28information for the succeeding quarter or semester is submitted. At any time the
152.29department notifies a postsecondary institution that an overpayment has been made, the
152.30institution shall promptly remit the amount due.

152.31    Sec. 18. Minnesota Statutes 2013 Supplement, section 124D.10, subdivision 8, is
152.32amended to read:
152.33    Subd. 8. Federal, state, and local requirements. (a) A charter school shall meet all
152.34federal, state, and local health and safety requirements applicable to school districts.
153.1    (b) A school must comply with statewide accountability requirements governing
153.2standards and assessments in chapter 120B.
153.3    (c) A school authorized by a school board may be located in any district, unless the
153.4school board of the district of the proposed location disapproves by written resolution.
153.5    (d) A charter school must be nonsectarian in its programs, admission policies,
153.6employment practices, and all other operations. An authorizer may not authorize a charter
153.7school or program that is affiliated with a nonpublic sectarian school or a religious
153.8institution. A charter school student must be released for religious instruction, consistent
153.9with section 120A.22, subdivision 12, clause (3).
153.10    (e) Charter schools must not be used as a method of providing education or
153.11generating revenue for students who are being home-schooled. This paragraph does not
153.12apply to shared time aid under section 126C.19.
153.13    (f) The primary focus of a charter school must be to provide a comprehensive
153.14program of instruction for at least one grade or age group from five through 18 years
153.15of age. Instruction may be provided to people younger than five years and older than
153.1618 years of age.
153.17    (g) A charter school may not charge tuition.
153.18    (h) A charter school is subject to and must comply with chapter 363A and section
153.19121A.04 .
153.20    (i) A charter school is subject to and must comply with the Pupil Fair Dismissal
153.21Act, sections 121A.40 to 121A.56, and the Minnesota Public School Fee Law, sections
153.22123B.34 to 123B.39.
153.23    (j) A charter school is subject to the same financial audits, audit procedures, and
153.24audit requirements as a district, except as required under subdivision 6a. Audits must be
153.25conducted in compliance with generally accepted governmental auditing standards, the
153.26federal Single Audit Act, if applicable, and section 6.65. A charter school is subject
153.27to and must comply with sections 15.054; 118A.01; 118A.02; 118A.03; 118A.04;
153.28118A.05 ; 118A.06; 471.38; 471.391; 471.392; and 471.425. The audit must comply with
153.29the requirements of sections 123B.75 to 123B.83, except to the extent deviations are
153.30necessary because of the program at the school. Deviations must be approved by the
153.31commissioner and authorizer. The Department of Education, state auditor, legislative
153.32auditor, or authorizer may conduct financial, program, or compliance audits. A charter
153.33school determined to be in statutory operating debt under sections 123B.81 to 123B.83
153.34must submit a plan under section 123B.81, subdivision 4.
153.35    (k) A charter school is a district for the purposes of tort liability under chapter 466.
154.1    (l) A charter school must comply with chapters 13 and 13D; and sections 120A.22,
154.2subdivision 7 ; 121A.75; and 260B.171, subdivisions 3 and 5.
154.3    (m) A charter school is subject to the Pledge of Allegiance requirement under
154.4section 121A.11, subdivision 3.
154.5    (n) A charter school offering online courses or programs must comply with section
154.6124D.095 .
154.7    (o) A charter school and charter school board of directors are subject to chapter 181.
154.8    (p) A charter school must comply with section 120A.22, subdivision 7, governing
154.9the transfer of students' educational records and sections 138.163 and 138.17 governing
154.10the management of local records.
154.11    (q) A charter school that provides early childhood health and developmental
154.12screening must comply with sections 121A.16 to 121A.19.
154.13    (r) A charter school that provides school-sponsored youth athletic activities must
154.14comply with section 121A.38.
154.15    (s) A charter school is subject to and must comply with continuing truant notification
154.16under section 260A.03.
154.17    (t) A charter school must develop and implement a teacher evaluation and peer review
154.18process under section 122A.40, subdivision 8, paragraph (b), clauses (2) to (12) (13) .
154.19    (u) A charter school must adopt a policy, plan, budget, and process, consistent with
154.20section 120B.11, to review curriculum, instruction, and student achievement and strive
154.21for the world's best workforce.
154.22EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
154.23and later.

154.24    Sec. 19. Minnesota Statutes 2013 Supplement, section 124D.11, subdivision 1, is
154.25amended to read:
154.26    Subdivision 1. General education revenue. General education revenue must be
154.27paid to a charter school as though it were a district. The general education revenue
154.28for each adjusted pupil unit is the state average general education revenue per pupil
154.29unit, plus the referendum equalization aid allowance in the pupil's district of residence,
154.30minus an amount equal to the product of the formula allowance according to section
154.31126C.10, subdivision 2 , times .0466, calculated without declining enrollment revenue,
154.32local optional revenue, basic skills revenue, extended time revenue, pension adjustment
154.33revenue, transition revenue, and transportation sparsity revenue, plus declining enrollment
154.34revenue, basic skills revenue, extended time revenue, pension adjustment revenue, and
155.1transition revenue as though the school were a school district. The general education
155.2revenue for each extended time pupil unit equals $4,794.
155.3EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
155.4and later.

155.5    Sec. 20. Minnesota Statutes 2013 Supplement, section 124D.111, subdivision 1,
155.6is amended to read:
155.7    Subdivision 1. School lunch aid computation. Each school year, the state must
155.8pay participants in the national school lunch program the amount of 12.5 cents for each
155.9full paid, reduced-price, and free student lunch and 52.5 cents for each reduced-price
155.10student lunch served to students.
155.11EFFECTIVE DATE.This section is effective for fiscal years 2015 and later.

155.12    Sec. 21. Minnesota Statutes 2012, section 124D.111, is amended by adding a
155.13subdivision to read:
155.14    Subd. 4. No fees. A participant that receives school lunch aid under this section
155.15must make lunch available without charge to all participating students who qualify for
155.16free or reduced-price meals. The participant must also ensure that any reminders for
155.17payment of outstanding student meal balances do not demean or stigmatize any child
155.18participating in the school lunch program.
155.19EFFECTIVE DATE.This section is effective for fiscal years 2015 and later.

155.20    Sec. 22. Minnesota Statutes 2012, section 124D.111, is amended by adding a
155.21subdivision to read:
155.22    Subd. 5. Inability to pay. A participant that receives school lunch aid under this
155.23section is encouraged to provide a student who is unable to pay with the same lunch
155.24that is served to other students.

155.25    Sec. 23. Minnesota Statutes 2012, section 124D.1158, subdivision 3, is amended to read:
155.26    Subd. 3. Program reimbursement. Each school year, the state must reimburse
155.27each participating school 30 cents for each reduced-price breakfast and, 55 cents for each
155.28fully paid breakfast served to students in grades 1 to 12, and $1.30 for each fully paid
155.29breakfast served to a kindergarten student.

155.30    Sec. 24. Minnesota Statutes 2012, section 124D.1158, subdivision 4, is amended to read:
156.1    Subd. 4. No fees. A school that receives school breakfast aid under this section must
156.2make breakfast available without charge to all participating students in grades 1 to 12 who
156.3qualify for free or reduced price meals and to all kindergarten students.

156.4    Sec. 25. Minnesota Statutes 2012, section 124D.13, subdivision 2, is amended to read:
156.5    Subd. 2. Program requirements. (a) Early childhood family education programs
156.6are programs for children in the period of life from birth to kindergarten, for the parents
156.7and other relatives of these children, and for expectant parents. To the extent that funds
156.8are insufficient to provide programs for all children, early childhood family education
156.9programs should emphasize programming for a child from birth to age three and
156.10encourage parents and other relatives to involve four- and five-year-old children in school
156.11readiness programs, and other public and nonpublic early learning programs. A district
156.12may not limit participation to school district residents. Early childhood family education
156.13programs must provide:
156.14    (1) programs to educate parents and other relatives about the physical, mental
156.15 cognitive, social, and emotional development of children and to enhance the skills of
156.16parents and other relatives in providing for their children's learning and development;
156.17    (2) structured learning activities requiring interaction between children and their
156.18parents or relatives;
156.19    (3) structured learning activities for children that promote children's development
156.20and positive interaction with peers, which are held while parents or relatives attend parent
156.21education classes;
156.22    (4) information on related community resources;
156.23    (5) information, materials, and activities that support the safety of children, including
156.24prevention of child abuse and neglect; and
156.25    (6) a community outreach plan to ensure participation by families who reflect
156.26the racial, cultural, and economic diversity of the school district needs assessment that
156.27identifies new and underserved populations, identifies child and family risk factors,
156.28particularly those that impact children's learning and development, and assesses family
156.29and parenting education needs in the community;
156.30    (7) programming and services that are tailored to the needs of families and parents
156.31prioritized in the community needs assessment; and
156.32    (8) provide information about and, if needed, assist in making arrangements for an
156.33early childhood health and developmental screening under sections 121A.16 and 121A.17,
156.34when the child nears their third birthday.
157.1Early childhood family education programs should prioritize programming and
157.2services for families and parents identified in the community needs assessment, particularly
157.3those families and parents with children with the most risk factors birth to age three.
157.4    The programs must include learning experiences for children, parents, and other
157.5relatives that promote children's early literacy skills. The program must not include
157.6activities for children that do not require substantial involvement of the children's parents
157.7or other relatives. The program may provide parenting education programming or services
157.8to anyone identified in the community needs assessment. The program must be reviewed
157.9periodically to assure the instruction and materials are not racially, culturally, or sexually
157.10biased. The programs must encourage parents to be aware of practices that may affect
157.11equitable development of children.
157.12    (b) For the purposes of this section, "relative" or "relatives" means noncustodial
157.13grandparents or other persons related to a child by blood, marriage, adoption, or foster
157.14placement, excluding parents.

157.15    Sec. 26. Minnesota Statutes 2012, section 124D.13, subdivision 4, is amended to read:
157.16    Subd. 4. Home visiting program. A district that levies for home visiting under
157.17section 124D.135, subdivision 6, shall use this revenue to include as part of the early
157.18childhood family education programs a parent education component that is designed to
157.19reach isolated or at-risk families.
157.20The home visiting program must use:
157.21(1) an established risk assessment tool to determine the family's level of risk
157.22 incorporate evidence-informed parenting education practices designed to support the
157.23healthy growth and development of children, with a priority focus on those children
157.24who have high needs;
157.25(2) establish clear objectives and protocols for home visits;
157.26(3) encourage families to make a transition from home visits to site-based parenting
157.27programs;
157.28(4) provide program services that are community-based, accessible, and culturally
157.29relevant; and
157.30(5) foster collaboration among existing agencies and community-based organizations
157.31that serve young children and their families, such as public health evidence-based models
157.32of home visiting and Head Start home visiting; and
157.33(6) provide information about and assist in making arrangements for an early
157.34childhood health and developmental screening when the child nears his or her third
157.35birthday.
158.1Home visitors The home visiting program should be provided by licensed parenting
158.2educators, certified family life educators, or professionals with an equivalent license that
158.3reflect the demographic composition of the community to the extent possible.

158.4    Sec. 27. Minnesota Statutes 2012, section 124D.13, subdivision 9, is amended to read:
158.5    Subd. 9. District advisory councils. The board must appoint an advisory council
158.6from the area in which the program is provided. A majority of the council must be
158.7parents participating in the program, who represent the demographics of the community.
158.8The district must ensure, to the extent possible, that the council includes representation
158.9of families who are racially, culturally, linguistically, and economically diverse. The
158.10council must assist the board in developing, planning, and monitoring the early childhood
158.11family education program. The council must report to the board and the community
158.12education advisory council.

158.13    Sec. 28. Minnesota Statutes 2012, section 124D.13, subdivision 13, is amended to read:
158.14    Subd. 13. Program data submission requirements. Districts receiving early
158.15childhood family education revenue under section 124D.135 must submit annual program
158.16data, including data that demonstrates the program response to the community needs
158.17assessment, to the department by July 15 in the form and manner prescribed by the
158.18commissioner.

158.19    Sec. 29. Minnesota Statutes 2012, section 124D.13, is amended by adding a
158.20subdivision to read:
158.21    Subd. 14. Supervision. A program provided by a board must be supervised by a
158.22licensed early childhood teacher or a licensed parent educator.

158.23    Sec. 30. Minnesota Statutes 2012, section 124D.13, is amended by adding a
158.24subdivision to read:
158.25    Subd. 15. Parenting education transition program. To the extent that funds are
158.26sufficient, early childhood family education may provide parenting education transition
158.27programming for parents of children birth to grade three in districts in which there is a
158.28prekindergarten-grade three initiative in order to facilitate continued parent engagement
158.29in children's learning and development. Early childhood family education programs are
158.30encouraged to develop partnerships to provide a parenting education liaison to providers
158.31of other public and nonpublic early learning programs, such as Head Start, school
159.1readiness, child care, early childhood special education, local public health programs,
159.2and health care providers.

159.3    Sec. 31. Minnesota Statutes 2012, section 124D.135, subdivision 1, is amended to read:
159.4    Subdivision 1. Revenue. The revenue for early childhood family education
159.5programs for a school district equals $112 for fiscal year 2007 and $120 for fiscal year
159.62008 $120 for fiscal year 2014 and the formula allowance for the year times 0.0253 for
159.7fiscal year 2015 and later, times the greater of:
159.8    (1) 150; or
159.9    (2) the number of people under five years of age residing in the district on October 1
159.10of the previous school year.

159.11    Sec. 32. Minnesota Statutes 2012, section 124D.135, subdivision 3, is amended to read:
159.12    Subd. 3. Early childhood family education levy. (a) By September 30 of each year,
159.13the commissioner shall establish a tax rate for early childhood family education revenue
159.14that raises $22,135,000 in each fiscal year. If the amount of the early childhood family
159.15education levy would exceed the early childhood family education revenue, the early
159.16childhood family education levy must equal the early childhood family education revenue.
159.17A district may not certify an early childhood family education levy unless it has met the
159.18annual program data reporting requirements under section 124D.13, subdivision 13.
159.19    (b) Notwithstanding paragraph (a), for fiscal year 2009 only, the commissioner shall
159.20establish a tax rate for early education revenue that raises $13,565,000.

159.21    Sec. 33. Minnesota Statutes 2013 Supplement, section 124D.165, subdivision 3,
159.22is amended to read:
159.23    Subd. 3. Administration. (a) The commissioner shall establish application
159.24timelines and determine the schedule for awarding scholarships that meets operational
159.25needs of eligible families and programs. The commissioner may prioritize applications on
159.26factors including family income, geographic location, and whether the child's family is on a
159.27waiting list for a publicly funded program providing early education or child care services.
159.28(b) Scholarships may be awarded up to $5,000 for each eligible child. The
159.29commissioner shall establish a target for the average scholarship amount per child
159.30based on the results of the rate survey conducted under section 119B.13, subdivision 1,
159.31paragraph (b), per year.
159.32(c) A four-star rated program that has children eligible for a scholarship enrolled
159.33in or on a waiting list for a program beginning in July, August, or September may notify
160.1the commissioner, in the form and manner prescribed by the commissioner, each year
160.2of the program's desire to enhance program services or to serve more children than
160.3current funding provides. The commissioner may designate a predetermined number of
160.4scholarship slots for that program and notify the program of that number. A school district
160.5or Head Start program qualifying under this paragraph may use its established registration
160.6process to enroll scholarship recipients and may verify a scholarship recipient's family
160.7income in the same manner as for other program participants.
160.8(d) A scholarship is awarded for a 12-month period. If the scholarship recipient has
160.9not been accepted and subsequently enrolled in a rated program within ten months of the
160.10awarding of the scholarship, the scholarship cancels and the recipient must reapply in
160.11order to be eligible for another scholarship. A child may not be awarded more than one
160.12scholarship in a 12-month period.
160.13(e) A child who receives a scholarship who has not completed development
160.14screening under sections 121A.16 to 121A.19 must complete that screening within 90
160.15days of first attending an eligible program.
160.16(f) A school district or Head Start program enrolling scholarship recipients under
160.17paragraph (c) may apply to the commissioner, in the form and manner prescribed by
160.18the commissioner, for direct payment of state aid. Upon receipt of the application, the
160.19commissioner must pay each program directly for each approved scholarship recipient
160.20enrolled under paragraph (c) according to the metered payment system or another schedule
160.21established by the commissioner.
160.22EFFECTIVE DATE.This section is effective July 1, 2016.

160.23    Sec. 34. Minnesota Statutes 2013 Supplement, section 124D.165, subdivision 4,
160.24is amended to read:
160.25    Subd. 4. Early childhood program eligibility. (a) In order to be eligible to accept
160.26an early childhood education scholarship, a program must:
160.27(1) participate in the quality rating and improvement system under section
160.28124D.142 ; and
160.29(2) beginning July 1, 2016, have a three- or four-star rating in the quality rating
160.30and improvement system.
160.31(b) Any program accepting scholarships must use the revenue to supplement and not
160.32supplant federal funding.
160.33(c) Notwithstanding paragraph (a), all Minnesota early learning foundation
160.34scholarship program pilot sites are eligible to accept an early learning scholarship under
160.35this section.

161.1    Sec. 35. Minnesota Statutes 2013 Supplement, section 124D.165, subdivision 5,
161.2is amended to read:
161.3    Subd. 5. Report required. The commissioner shall contract with an independent
161.4contractor to evaluate the early learning scholarship program. The evaluation must
161.5include recommendations regarding the appropriate scholarship amount, efficiency, and
161.6effectiveness of the administration, and impact on kindergarten readiness and student
161.7outcomes by program setting, including Head Start programs, school-based prekindergarten
161.8and preschool programs, and other early education and child care programs. The report
161.9must also include the number of scholarship recipients in school-based, home-based,
161.10and center-based programs as well as a geographic summary of scholarship recipients
161.11by county. By January 15, 2016, the commissioner shall submit a written copy of the
161.12evaluation to the chairs and ranking minority members of the legislative committees and
161.13divisions with primary jurisdiction over kindergarten through grade 12 education.

161.14    Sec. 36. Minnesota Statutes 2012, section 124D.522, is amended to read:
161.15124D.522 ADULT BASIC EDUCATION SUPPLEMENTAL SERVICE
161.16GRANTS.
161.17(a) The commissioner, in consultation with the policy review task force under
161.18section 124D.521, may make grants to nonprofit organizations to provide services that
161.19are not offered by a district adult basic education program or that are supplemental to
161.20either the statewide adult basic education program, or a district's adult basic education
161.21program. The commissioner may make grants for: staff development for adult basic
161.22education teachers and administrators; training for volunteer tutors; training, services, and
161.23materials for serving disabled students through adult basic education programs; statewide
161.24promotion of adult basic education services and programs; development and dissemination
161.25of instructional and administrative technology for adult basic education programs;
161.26programs which primarily serve communities of color; adult basic education distance
161.27learning projects, including television instruction programs; and other supplemental
161.28services to support the mission of adult basic education and innovative delivery of adult
161.29basic education services.
161.30(b) The commissioner must establish eligibility criteria and grant application
161.31procedures. Grants under this section must support services throughout the state, focus on
161.32educational results for adult learners, and promote outcome-based achievement through
161.33adult basic education programs. Beginning in fiscal year 2002, the commissioner may
161.34make grants under this section from the state total adult basic education aid set aside for
161.35supplemental service grants under section 124D.531. Up to one-fourth of the appropriation
162.1for supplemental service grants must be used for grants for adult basic education programs
162.2to encourage and support innovations in adult basic education instruction and service
162.3delivery. A grant to a single organization cannot exceed 20 40 percent of the total
162.4supplemental services aid. Nothing in this section prevents an approved adult basic
162.5education program from using state or federal aid to purchase supplemental services.

162.6    Sec. 37. Minnesota Statutes 2013 Supplement, section 124D.531, subdivision 1,
162.7is amended to read:
162.8    Subdivision 1. State total adult basic education aid. (a) The state total adult basic
162.9education aid for fiscal year 2011 equals $44,419,000, plus any amount that is not paid
162.10during the previous fiscal year as a result of adjustments under subdivision 4, paragraph
162.11(a), or section 124D.52, subdivision 3. The state total adult basic education aid for later
162.12fiscal years equals:
162.13    (1) the state total adult basic education aid for the preceding fiscal year plus any
162.14amount that is not paid for during the previous fiscal year, as a result of adjustments under
162.15subdivision 4, paragraph (a), or section 124D.52, subdivision 3; times
162.16    (2) the lesser of:
162.17    (i) 1.025 1.03; or
162.18    (ii) the average growth in state total contact hours over the prior ten program years.
162.19    Beginning in fiscal year 2002, two Three percent of the state total adult basic
162.20education aid must be set aside for adult basic education supplemental service grants
162.21under section 124D.522.
162.22    (b) The state total adult basic education aid, excluding basic population aid, equals
162.23the difference between the amount computed in paragraph (a), and the state total basic
162.24population aid under subdivision 2.
162.25EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
162.26and later.

162.27    Sec. 38. Minnesota Statutes 2012, section 124D.531, subdivision 3, is amended to read:
162.28    Subd. 3. Program revenue. Adult basic education programs established under
162.29section 124D.52 and approved by the commissioner are eligible for revenue under this
162.30subdivision. For fiscal year 2001 and later, adult basic education revenue for each
162.31approved program equals the sum of:
162.32(1) the basic population aid under subdivision 2 for districts participating in the
162.33program during the current program year; plus
163.1(2) 84 percent times the amount computed in subdivision 1, paragraph (b), times the
163.2ratio of the contact hours for students participating in the program during the first prior
163.3program year to the state total contact hours during the first prior program year; plus
163.4(3) eight percent times the amount computed in subdivision 1, paragraph (b), times
163.5the ratio of the enrollment of English learners during the second prior school year in
163.6districts participating in the program during the current program year to the state total
163.7enrollment of English learners during the second prior school year in districts participating
163.8in adult basic education programs during the current program year; plus
163.9(4) eight percent times the amount computed in subdivision 1, paragraph (b), times
163.10the ratio of the latest federal census count of the number of adults aged 20 25 or older
163.11with no diploma residing in the districts participating in the program during the current
163.12program year to the latest federal census count of the state total number of adults aged 20
163.13 25 or older with no diploma residing in the districts participating in adult basic education
163.14programs during the current program year.

163.15    Sec. 39. Minnesota Statutes 2012, section 124D.59, subdivision 2, is amended to read:
163.16    Subd. 2. English learner. (a) "English learner" means a pupil in kindergarten
163.17through grade 12 who meets the following requirements:
163.18(1) the pupil, as declared by a parent or guardian first learned a language other than
163.19English, comes from a home where the language usually spoken is other than English, or
163.20usually speaks a language other than English; and
163.21(2) the pupil is determined by a valid assessment measuring the pupil's English
163.22language proficiency and by developmentally appropriate measures, which might include
163.23observations, teacher judgment, parent recommendations, or developmentally appropriate
163.24assessment instruments, to lack the necessary English skills to participate fully in
163.25academic classes taught in English.
163.26(b) Notwithstanding paragraph (a), A pupil enrolled in a Minnesota public school
163.27in grades any grade 4 through 12 who was enrolled in a Minnesota public school on
163.28the dates during in the previous school year when a commissioner provided took a
163.29commissioner-provided assessment that measures measuring the pupil's emerging
163.30academic English was administered, shall not be counted as an English learner in
163.31calculating English learner pupil units under section 126C.05, subdivision 17, and shall not
163.32 generate state English learner aid under section 124D.65, subdivision 5, unless if the pupil
163.33scored below the state cutoff score or is otherwise counted as a nonproficient participant
163.34on an the assessment measuring the pupil's emerging academic English provided by the
163.35commissioner during the previous school year or in the judgment of the pupil's classroom
164.1teachers, consistent with section 124D.61, clause (1), the pupil is unable to demonstrate
164.2academic language proficiency in English, including oral academic language, sufficient to
164.3successfully and fully participate in the general core curriculum in the regular classroom.
164.4(c) Notwithstanding paragraphs (a) and (b), a pupil in kindergarten through grade
164.512 shall not be counted as an English learner in calculating English learner pupil units
164.6under section 126C.05, subdivision 17, and shall not generate state English learner aid
164.7under section 124D.65, subdivision 5, if:
164.8(1) the pupil is not enrolled during the current fiscal year in an educational program
164.9for English learners in accordance with under sections 124D.58 to 124D.64; or
164.10(2) the pupil has generated five six or more years of average daily membership in
164.11Minnesota public schools since July 1, 1996.
164.12EFFECTIVE DATE.This section is effective for revenue in fiscal year 2015 and
164.13later.

164.14    Sec. 40. Minnesota Statutes 2013 Supplement, section 124D.862, subdivision 1,
164.15is amended to read:
164.16    Subdivision 1. Initial achievement and integration revenue. (a) An eligible
164.17district's initial achievement and integration revenue equals the lesser of 100.3 percent of
164.18the district's expenditures under the budget approved by the commissioner under section
164.19124D.861, subdivision 3, paragraph (c), excluding expenditures used to generate incentive
164.20revenue under subdivision 2, or the sum of (1) $350 times the district's adjusted pupil
164.21units for that year times the ratio of the district's enrollment of protected students for the
164.22previous school year to total enrollment for the previous school year and (2) the greater of
164.23zero or 66 percent of the difference between the district's integration revenue for fiscal
164.24year 2013 and the district's integration revenue for fiscal year 2014 under clause (1).
164.25(b) In each year, 0.3 percent of each district's initial achievement and integration
164.26revenue is transferred to the department for the oversight and accountability activities
164.27required under this section and section 124D.861.
164.28EFFECTIVE DATE.This section is effective the day following final enactment
164.29and applies to revenue for fiscal year 2014 and later.

164.30    Sec. 41. Minnesota Statutes 2013 Supplement, section 124D.862, subdivision 2,
164.31is amended to read:
164.32    Subd. 2. Incentive revenue. An eligible school district's maximum incentive
164.33revenue equals $10 per adjusted pupil unit. In order to receive this revenue, a district must
165.1be A district's incentive revenue equals the lesser of the maximum incentive revenue
165.2or the district's expenditures for implementing a voluntary plan to reduce racial and
165.3economic enrollment disparities through intradistrict and interdistrict activities that have
165.4been approved as a part of the district's achievement and integration plan under the budget
165.5approved by the commissioner under section 124D.861, subdivision 3, paragraph (c).
165.6EFFECTIVE DATE.This section is effective the day following final enactment
165.7and applies to revenue for fiscal year 2014 and later.

165.8    Sec. 42. Minnesota Statutes 2012, section 125A.08, is amended to read:
165.9125A.08 INDIVIDUALIZED EDUCATION PROGRAMS; DATA
165.10REPORTING REQUIREMENTS.
165.11    Subdivision 1. Requirements for individualized education programs. (a) At the
165.12beginning of each school year, each school district shall have in effect, for each child with
165.13a disability, an individualized education program.
165.14(b) As defined in this section, every district must ensure the following:
165.15(1) all students with disabilities are provided the special instruction and services
165.16which are appropriate to their needs. Where the individualized education program team
165.17has determined appropriate goals and objectives based on the student's needs, including
165.18the extent to which the student can be included in the least restrictive environment,
165.19and where there are essentially equivalent and effective instruction, related services, or
165.20assistive technology devices available to meet the student's needs, cost to the district may
165.21be among the factors considered by the team in choosing how to provide the appropriate
165.22services, instruction, or devices that are to be made part of the student's individualized
165.23education program. The individualized education program team shall consider and
165.24may authorize services covered by medical assistance according to section 256B.0625,
165.25subdivision 26 . The student's needs and the special education instruction and services to
165.26be provided must be agreed upon through the development of an individualized education
165.27program. The program must address the student's need to develop skills to live and work
165.28as independently as possible within the community. The individualized education program
165.29team must consider positive behavioral interventions, strategies, and supports that address
165.30behavior for children with attention deficit disorder or attention deficit hyperactivity
165.31disorder. During grade 9, the program must address the student's needs for transition from
165.32secondary services to postsecondary education and training, employment, community
165.33participation, recreation, and leisure and home living. In developing the program, districts
165.34must inform parents of the full range of transitional goals and related services that should
166.1be considered. The program must include a statement of the needed transition services,
166.2including a statement of the interagency responsibilities or linkages or both before
166.3secondary services are concluded;
166.4(2) children with a disability under age five and their families are provided special
166.5instruction and services appropriate to the child's level of functioning and needs;
166.6(3) children with a disability and their parents or guardians are guaranteed procedural
166.7safeguards and the right to participate in decisions involving identification, assessment
166.8including assistive technology assessment, and educational placement of children with a
166.9disability;
166.10(4) eligibility and needs of children with a disability are determined by an initial
166.11assessment or reassessment, which may be completed using existing data under United
166.12States Code, title 20, section 33, et seq.;
166.13(5) to the maximum extent appropriate, children with a disability, including those
166.14in public or private institutions or other care facilities, are educated with children who
166.15are not disabled, and that special classes, separate schooling, or other removal of children
166.16with a disability from the regular educational environment occurs only when and to the
166.17extent that the nature or severity of the disability is such that education in regular classes
166.18with the use of supplementary services cannot be achieved satisfactorily;
166.19(6) in accordance with recognized professional standards, testing and evaluation
166.20materials, and procedures used for the purposes of classification and placement of children
166.21with a disability are selected and administered so as not to be racially or culturally
166.22discriminatory; and
166.23(7) the rights of the child are protected when the parents or guardians are not known
166.24or not available, or the child is a ward of the state.
166.25(c) For paraprofessionals employed to work in programs for students with
166.26disabilities, the school board in each district shall ensure that:
166.27(1) before or immediately upon employment, each paraprofessional develops
166.28sufficient knowledge and skills in emergency procedures, building orientation, roles and
166.29responsibilities, confidentiality, vulnerability, and reportability, among other things, to
166.30begin meeting the needs of the students with whom the paraprofessional works;
166.31(2) annual training opportunities are available to enable the paraprofessional to
166.32continue to further develop the knowledge and skills that are specific to the students with
166.33whom the paraprofessional works, including understanding disabilities, following lesson
166.34plans, and implementing follow-up instructional procedures and activities; and
167.1(3) a districtwide process obligates each paraprofessional to work under the ongoing
167.2direction of a licensed teacher and, where appropriate and possible, the supervision of a
167.3school nurse.
167.4    Subd. 2. Online reporting of required data. (a) To ensure a strong focus
167.5on outcomes for children with disabilities informs federal and state compliance and
167.6accountability requirements and to increase opportunities for special educators and
167.7related-services providers to focus on teaching children with disabilities, the commissioner
167.8must integrate, customize, and sustain a streamlined, user-friendly statewide online system,
167.9with a single, integrated model online form, for effectively and efficiently collecting
167.10and reporting required special education–related data to individuals with a legitimate
167.11educational interest and who are authorized by law to access the data. Among other
167.12data-related requirements, the online system must successfully interface with existing state
167.13reporting systems such as MARSS and Child Count and with districts' local data systems.
167.14(b) The commissioner must consult with qualified experts, including information
167.15technology specialists, licensed special education teachers and directors of special
167.16education, related-services providers, third-party vendors, a designee of the commissioner
167.17of human services, parents of children with disabilities, representatives of advocacy groups
167.18representing children with disabilities, and representatives of school districts and special
167.19education cooperatives on integrating, field testing, customizing, and sustaining this simple,
167.20easily accessible, efficient, and effective online data system for uniform statewide reporting
167.21of required due process compliance data. Among other outcomes, the system must:
167.22    (1) reduce special education teachers' paperwork burden and thereby increase the
167.23teachers' opportunities to focus on teaching children;
167.24(2) to the extent authorized by chapter 13 or other applicable state or federal law
167.25governing access to and dissemination of educational records, provide for efficiently and
167.26effectively transmitting the records of all transferring children with disabilities, including
167.27highly mobile and homeless children with disabilities, among others, to give an enrolling
167.28school, school district, facility, or other institution immediate access to information about
167.29the transferring child and to avoid fragmented service delivery;
167.30(3) address language and other barriers and disparities that prevent parents from
167.31understanding and communicating information about the needs of their children with
167.32disabilities;
167.33(4) facilitate school districts' ability to bill medical assistance, MinnesotaCare,
167.34and other third-party payers for the costs of providing individualized education program
167.35health-related services to an eligible child with disabilities;
168.1(5) help continuously improve the interface among the online systems serving
168.2children with disabilities in order to maintain and reinforce the children's ability to learn;
168.3and
168.4(6) have readily accessible expert technical assistance to maintain, sustain, and
168.5improve the online system.
168.6(c) The commissioner must use the federal Office of Special Education Programs
168.7model forms for the (1) individualized education program, (2) notice of procedural
168.8safeguards, and (3) prior written notice that are consistent with Part B of IDEA to integrate
168.9and customize a state-sponsored universal special education online case management
168.10system, consistent with the requirements of state law and this subdivision for integrating,
168.11customizing, and sustaining a statewide online reporting system. The commissioner must
168.12use a request for proposal process to contract for the technology and software needed
168.13for integrating and customizing the online system in order for the system to be fully
168.14functional, consistent with the requirements of this subdivision. This online system must
168.15be made available to school districts without charge beginning in the 2015-2016 school
168.16year. All actions in which data in the system are entered, updated, accessed, or shared or
168.17disseminated outside of the system, must be recorded in a data audit trail. The audit trail
168.18must identify the user responsible for the action, and the date and time the action occurred.
168.19Data contained in the audit trail maintain the same classification as the underlying data
168.20that was affected by the action, and may be accessed by the responsible authority at any
168.21time for purposes of auditing the system's user activity and security safeguards. For the
168.222015-2016 through 2017-2018 school years, school districts may use this online system or
168.23may contract with an outside vendor for compliance reporting. Beginning in the 2018-2019
168.24school year and later, school districts must use this online system for compliance reporting.
168.25(d) Consistent with this subdivision, the commissioner must establish a public
168.26Internet Web interface to provide information to educators, parents, and the public about
168.27the form and content of required special education reports, to respond to queries from
168.28educators, parents, and the public about specific aspects of special education reports and
168.29reporting, and to use the information garnered from the interface to streamline and revise
168.30special education reporting on the online system under this subdivision. The public Internet
168.31Web interface must not provide access to the educational records of any individual child.
168.32(e) The commissioner annually by February 1 must submit to the legislature a report
168.33on the status, recent changes, and sustainability of the online system under this subdivision.

168.34    Sec. 43. Minnesota Statutes 2013 Supplement, section 125A.11, subdivision 1, is
168.35amended to read:
169.1    Subdivision 1. Nonresident tuition rate; other costs. (a) For fiscal year 2015 and
169.2later, when a school district provides special instruction and services for a pupil with
169.3a disability as defined in section 125A.02 outside the district of residence, excluding
169.4a pupil for whom an adjustment to special education aid is calculated according to
169.5section 127A.47, subdivision 7, paragraphs (b) to (d), special education aid paid to the
169.6resident district must be reduced by an amount equal to (1) the actual cost of providing
169.7special instruction and services to the pupil, including a proportionate amount for special
169.8transportation and unreimbursed building lease and debt service costs for facilities used
169.9primarily for special education, plus (2) the amount of general education revenue and
169.10referendum equalization aid attributable to that pupil, calculated using the resident district's
169.11average general education revenue and referendum equalization aid per adjusted pupil
169.12unit excluding basic skills revenue, elementary sparsity revenue and secondary sparsity
169.13revenue, minus (3) the amount of special education aid for children with a disability
169.14under section 125A.76 received on behalf of that child, minus (4) if the pupil receives
169.15special instruction and services outside the regular classroom for more than 60 percent
169.16of the school day, the amount of general education revenue and referendum equalization
169.17aid, excluding portions attributable to district and school administration, district support
169.18services, operations and maintenance, capital expenditures, and pupil transportation,
169.19attributable to that pupil for the portion of time the pupil receives special instruction
169.20and services outside of the regular classroom, calculated using the resident district's
169.21average general education revenue and referendum equalization aid per adjusted pupil unit
169.22excluding basic skills revenue, elementary sparsity revenue and secondary sparsity revenue
169.23and the serving district's basic skills revenue, elementary sparsity revenue and secondary
169.24sparsity revenue per adjusted pupil unit. Notwithstanding clauses (1) and (4), for pupils
169.25served by a cooperative unit without a fiscal agent school district, the general education
169.26revenue and referendum equalization aid attributable to a pupil must be calculated using
169.27the resident district's average general education revenue and referendum equalization aid
169.28excluding compensatory revenue, elementary sparsity revenue, and secondary sparsity
169.29revenue. Special education aid paid to the district or cooperative providing special
169.30instruction and services for the pupil must be increased by the amount of the reduction in
169.31the aid paid to the resident district. Amounts paid to cooperatives under this subdivision
169.32and section 127A.47, subdivision 7, shall be recognized and reported as revenues and
169.33expenditures on the resident school district's books of account under sections 123B.75
169.34and 123B.76. If the resident district's special education aid is insufficient to make the full
169.35adjustment, the remaining adjustment shall be made to other state aid due to the district.
170.1    (b) Notwithstanding paragraph (a) and section 127A.47, subdivision 7, paragraphs
170.2(b) to (d), a charter school where more than 30 percent of enrolled students receive special
170.3education and related services, a site approved under section 125A.515, an intermediate
170.4district, a special education cooperative, or a school district that served as the applicant
170.5agency for a group of school districts for federal special education aids for fiscal year
170.62006 may apply to the commissioner for authority to charge the resident district an
170.7additional amount to recover any remaining unreimbursed costs of serving pupils with
170.8a disability. The application must include a description of the costs and the calculations
170.9used to determine the unreimbursed portion to be charged to the resident district. Amounts
170.10approved by the commissioner under this paragraph must be included in the tuition billings
170.11or aid adjustments under paragraph (a), or section 127A.47, subdivision 7, paragraphs
170.12(b) to (d), as applicable.
170.13    (c) For purposes of this subdivision and section 127A.47, subdivision 7, paragraphs
170.14(d) and (e) paragraph (b), "general education revenue and referendum equalization aid"
170.15means the sum of the general education revenue according to section 126C.10, subdivision
170.161, excluding the local optional levy according to section 126C.10, subdivision 2e, paragraph
170.17(c), plus the referendum equalization aid according to section 126C.17, subdivision 7.
170.18EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
170.19and later.

170.20    Sec. 44. Minnesota Statutes 2013 Supplement, section 125A.76, subdivision 1, is
170.21amended to read:
170.22    Subdivision 1. Definitions. (a) For the purposes of this section and section 125A.79,
170.23the definitions in this subdivision apply.
170.24    (b) "Basic revenue" has the meaning given it in section 126C.10, subdivision 2.
170.25For the purposes of computing basic revenue pursuant to this section, each child with a
170.26disability shall be counted as prescribed in section 126C.05, subdivision 1.
170.27    (c) "Essential personnel" means teachers, cultural liaisons, related services, and
170.28support services staff providing services to students. Essential personnel may also include
170.29special education paraprofessionals or clericals providing support to teachers and students
170.30by preparing paperwork and making arrangements related to special education compliance
170.31requirements, including parent meetings and individualized education programs. Essential
170.32personnel does not include administrators and supervisors.
170.33    (d) "Average daily membership" has the meaning given it in section 126C.05.
171.1    (e) "Program growth factor" means 1.046 for fiscal years 2012 though through 2015,
171.21.0 for fiscal year 2016, 1.046 for fiscal year 2017, and the product of 1.046 and the
171.3program growth factor for the previous year for fiscal year 2018 and later.
171.4(f) "Nonfederal special education expenditure" means all direct expenditures that
171.5are necessary and essential to meet the district's obligation to provide special instruction
171.6and services to children with a disability according to sections 124D.454, 125A.03 to
171.7125A.24 , 125A.259 to 125A.48, and 125A.65 as submitted by the district and approved by
171.8the department under section 125A.75, subdivision 4, excluding expenditures:
171.9(1) reimbursed with federal funds;
171.10(2) reimbursed with other state aids under this chapter;
171.11(3) for general education costs of serving students with a disability;
171.12(4) for facilities;
171.13(5) for pupil transportation; and
171.14(6) for postemployment benefits.
171.15(g) "Old formula special education expenditures" means expenditures eligible for
171.16revenue under Minnesota Statutes 2012, section 125A.76, subdivision 2.
171.17    (h) For the Minnesota State Academy for the Deaf and the Minnesota State Academy
171.18for the Blind, expenditures are limited to the salary and fringe benefits of one-to-one
171.19instructional and behavior management aides assigned to a child attending the academy, if
171.20the aides are required by the child's individualized education program.
171.21(h) (i) "Cross subsidy reduction aid percentage" means 1.0 percent for fiscal year
171.222014 and 2.27 percent for fiscal year 2015.
171.23(i) (j) "Cross subsidy reduction aid limit" means $20 for fiscal year 2014 and $48
171.24for fiscal year 2015.
171.25(j) (k) "Special education aid increase limit" means $80 for fiscal year 2016, $100
171.26for fiscal year 2017, and, for fiscal year 2018 and later, the sum of the special education
171.27aid increase limit for the previous fiscal year and $40.

171.28    Sec. 45. Minnesota Statutes 2013 Supplement, section 125A.76, subdivision 2a,
171.29is amended to read:
171.30    Subd. 2a. Special education initial aid. For fiscal year 2016 and later, a district's
171.31special education initial aid equals the sum of:
171.32(1) the lesser least of 62 percent of the district's old formula special education
171.33expenditures for the prior fiscal year, excluding pupil transportation expenditures, 50
171.34percent of the district's nonfederal special education expenditures for the prior year,
172.1excluding pupil transportation expenditures, or 56 percent of the product of the sum of the
172.2following amounts, computed using prior fiscal year data, and the program growth factor:
172.3(i) the product of the district's average daily membership served and the sum of:
172.4(A) $450; plus
172.5(B) $400 times the ratio of the sum of the number of pupils enrolled on October 1
172.6who are eligible to receive free lunch plus one-half of the pupils enrolled on October 1
172.7who are eligible to receive reduced-price lunch to the total October 1 enrollment; plus
172.8(C) .008 times the district's average daily membership served; plus
172.9(ii) $10,400 times the December 1 child count for the primary disability areas of
172.10autism spectrum disorders, developmental delay, and severely multiply impaired; plus
172.11(iii) $18,000 times the December 1 child count for the primary disability areas of
172.12deaf and hard-of-hearing and emotional or behavioral disorders; plus
172.13(iv) $27,000 times the December 1 child count for the primary disability areas of
172.14developmentally cognitive mild-moderate, developmentally cognitive severe-profound,
172.15physically impaired, visually impaired, and deafblind; plus
172.16(2) the cost of providing transportation services for children with disabilities under
172.17section 123B.92, subdivision 1, paragraph (b), clause (4).
172.18EFFECTIVE DATE.This section is effective for revenue for fiscal year 2016
172.19and later.

172.20    Sec. 46. Minnesota Statutes 2013 Supplement, section 125A.76, subdivision 2b,
172.21is amended to read:
172.22    Subd. 2b. Cross subsidy reduction aid. For fiscal years 2014 and 2015, the cross
172.23subsidy reduction aid for a school district, not including a charter school, equals the
172.24lesser of (a) the product of the cross subsidy reduction aid limit and the district's average
172.25daily membership served or (b) the sum of the product of the cross subsidy reduction aid
172.26percentage, the district's average daily membership served, and the sum of:
172.27(1) $450; plus
172.28(2) $400 times the ratio of the sum of the number of pupils enrolled on October 1
172.29who are eligible to receive free lunch plus one-half of the pupils enrolled on October 1
172.30who are eligible to receive reduced-price lunch to the total October 1 enrollment; plus
172.31(3) .008 times the district's average daily membership served; plus the product of the
172.32cross subsidy aid percentage and the sum of:
172.33(i) $10,100 times the December 1 child count for the primary disability areas of
172.34autism spectrum disorders, developmental delay, and severely multiply impaired; plus
173.1(ii) $17,500 times the December 1 child count for the primary disability areas of
173.2deaf and hard-of-hearing and emotional or behavioral disorders; plus
173.3(iii) $26,000 times the December 1 child count for the primary disability areas of
173.4developmentally cognitive mild-moderate, developmentally cognitive severe-profound,
173.5physically impaired, visually impaired, and deafblind.
173.6EFFECTIVE DATE.This section is effective the day following final enactment
173.7and applies to revenue for fiscal year 2014 and later.

173.8    Sec. 47. Minnesota Statutes 2013 Supplement, section 125A.76, subdivision 2c,
173.9is amended to read:
173.10    Subd. 2c. Special education aid. (a) For fiscal year 2014 and fiscal year 2015, a
173.11district's special education aid equals the sum of the district's special education initial aid
173.12under subdivision 5, the district's cross subsidy reduction aid under subdivision 2b, and
173.13the district's excess cost aid under section 125A.79, subdivision 7.
173.14(b) For fiscal year 2016 and later, a district's special education aid equals the sum of
173.15the district's special education initial aid under subdivision 2a and the district's excess cost
173.16aid under section 125A.79, subdivision 5.
173.17(c) Notwithstanding paragraph (b), for fiscal year 2016, the special education aid for
173.18a school district must not exceed the sum of the special education aid the district would
173.19have received for fiscal year 2016 under Minnesota Statutes 2012, sections 125A.76
173.20and 125A.79, as adjusted according to Minnesota Statutes 2012, sections 125A.11 and
173.21127A.47, subdivision 7 , and the product of the district's average daily membership served
173.22and the special education aid increase limit.
173.23(d) Notwithstanding paragraph (b), for fiscal year 2017 and later, the special education
173.24aid for a school district must not exceed the sum of: (i) the product of the district's average
173.25daily membership served and the special education aid increase limit and (ii) the product
173.26of the sum of the special education aid the district would have received for fiscal year 2016
173.27under Minnesota Statutes 2012, sections 125A.76 and 125A.79, as adjusted according
173.28to Minnesota Statutes 2012, sections 125A.11 and 127A.47, subdivision 7, the ratio of
173.29the district's average daily membership served for the current fiscal year to the district's
173.30average daily membership served for fiscal year 2016, and the program growth factor.
173.31(e) Notwithstanding paragraph (b), for fiscal year 2016 and later the special education
173.32aid for a school district, not including a charter school, must not be less than the lesser of
173.33(1) the district's nonfederal special education expenditures for that fiscal year or (2) the
173.34product of the sum of the special education aid the district would have received for fiscal
173.35year 2016 under Minnesota Statutes 2012, sections 125A.76 and 125A.79, as adjusted
174.1according to Minnesota Statutes 2012, sections 125A.11 and 127A.47, subdivision 7, the
174.2ratio of the district's adjusted daily membership for the current fiscal year to the district's
174.3average daily membership for fiscal year 2016, and the program growth factor.
174.4EFFECTIVE DATE.This section is effective the day following final enactment
174.5and applies to revenue for fiscal year 2014 and later.

174.6    Sec. 48. Minnesota Statutes 2013 Supplement, section 125A.79, subdivision 1, is
174.7amended to read:
174.8    Subdivision 1. Definitions. For the purposes of this section, the definitions in this
174.9subdivision apply.
174.10    (a) "Unreimbursed old formula special education expenditures" means:
174.11    (1) old formula special education expenditures for the prior fiscal year; minus
174.12    (2) for fiscal years 2014 and 2015, the sum of the special education aid under section
174.13125A.76, subdivision 5, for the prior fiscal year and the cross subsidy reduction aid under
174.14section 125A.76, subdivision 2b, and for fiscal year 2016 and later, the special education
174.15initial aid under section 125A.76, subdivision 2a; minus
174.16(3) for fiscal year 2016 and later, the amount of general education revenue, excluding
174.17local optional revenue, plus local optional aid and referendum equalization aid for the
174.18prior fiscal year attributable to pupils receiving special instruction and services outside the
174.19regular classroom for more than 60 percent of the school day for the portion of time the
174.20pupils receive special instruction and services outside the regular classroom, excluding
174.21portions attributable to district and school administration, district support services,
174.22operations and maintenance, capital expenditures, and pupil transportation.
174.23(b) "Unreimbursed nonfederal special education expenditures" means:
174.24(1) nonfederal special education expenditures for the prior fiscal year; minus
174.25(2) special education initial aid under section 125A.76, subdivision 2a; minus
174.26(3) the amount of general education revenue and referendum equalization aid for the
174.27prior fiscal year attributable to pupils receiving special instruction and services outside the
174.28regular classroom for more than 60 percent of the school day for the portion of time the
174.29pupils receive special instruction and services outside of the regular classroom, excluding
174.30portions attributable to district and school administration, district support services,
174.31operations and maintenance, capital expenditures, and pupil transportation.
174.32    (c) "General revenue" for a school district means the sum of the general education
174.33revenue according to section 126C.10, subdivision 1, excluding alternative teacher
174.34compensation revenue, minus transportation sparsity revenue minus, local optional
174.35revenue, and total operating capital revenue. "General revenue" for a charter school means
175.1the sum of the general education revenue according to section 124D.11, subdivision 1, and
175.2transportation revenue according to section 124D.11, subdivision 2, excluding alternative
175.3teacher compensation revenue, minus referendum equalization aid minus, transportation
175.4sparsity revenue minus, and operating capital revenue.
175.5EFFECTIVE DATE.This section is effective the day following final enactment
175.6and applies to revenue for fiscal year 2014 and later.

175.7    Sec. 49. Minnesota Statutes 2013 Supplement, section 125A.79, subdivision 5, is
175.8amended to read:
175.9    Subd. 5. Initial Excess cost aid. For fiscal year 2016 and later, a district's initial
175.10 excess cost aid equals the greater of:
175.11    (1) 56 percent of the difference between (i) the district's unreimbursed nonfederal
175.12special education expenditures and (ii) 7.0 percent of the district's general revenue;
175.13    (2) 62 percent of the difference between (i) the district's unreimbursed old formula
175.14special education expenditures and (ii) 2.5 percent of the district's general revenue; or
175.15    (3) zero.
175.16EFFECTIVE DATE.This section is effective for revenue for fiscal year 2016
175.17and later.

175.18    Sec. 50. Minnesota Statutes 2013 Supplement, section 125A.79, subdivision 8, is
175.19amended to read:
175.20    Subd. 8. Out-of-state tuition. For children who are residents of the state, receive
175.21services under section 125A.76, subdivisions 1 and 2, and are placed in a care and
175.22treatment facility by court action in a state that does not have a reciprocity agreement with
175.23the commissioner under section 125A.155, the resident school district shall submit the
175.24balance receive special education out-of-state tuition aid equal to the amount of the tuition
175.25bills, minus (1) the general education revenue, excluding basic skills revenue and the local
175.26optional levy attributable to the pupil, calculated using the resident district's average
175.27general education revenue per adjusted pupil unit, and (2) the referendum equalization aid
175.28attributable to the pupil, calculated using the resident district's average general education
175.29revenue and referendum equalization aid per adjusted pupil unit minus, and (3) the special
175.30education contracted services initial revenue aid attributable to the pupil.
175.31EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
175.32and later.

176.1    Sec. 51. Minnesota Statutes 2013 Supplement, section 126C.05, subdivision 15,
176.2is amended to read:
176.3    Subd. 15. Learning year pupil units. (a) When a pupil is enrolled in a learning
176.4year program under section 124D.128, an area learning center or an alternative learning
176.5program approved by the commissioner under sections 123A.05 and 123A.06, or a
176.6contract alternative program under section 124D.68, subdivision 3, paragraph (d), or
176.7subdivision 4, for more than 1,020 hours in a school year for a secondary student, more
176.8than 935 hours in a school year for an elementary student, more than 850 hours in a school
176.9year for a kindergarten student without a disability in an all-day kindergarten program,
176.10or more than 425 hours in a school year for a half-day kindergarten student without a
176.11disability, that pupil may be counted as more than one pupil in average daily membership
176.12for purposes of section 126C.10, subdivision 2a. The amount in excess of one pupil must
176.13be determined by the ratio of the number of hours of instruction provided to that pupil in
176.14excess of: (i) the greater of 1,020 hours or the number of hours required for a full-time
176.15secondary pupil in the district to 1,020 for a secondary pupil; (ii) the greater of 935 hours
176.16or the number of hours required for a full-time elementary pupil in the district to 935 for
176.17an elementary pupil in grades 1 through 6; and (iii) the greater of 425 850 hours or the
176.18number of hours required for a full-time kindergarten student without a disability in the
176.19district to 425 850 for a kindergarten student without a disability; and (iv) the greater of
176.20425 hours or the number of hours required for a half-time kindergarten student without a
176.21disability in the district to 425 for a half-day kindergarten student without a disability.
176.22Hours that occur after the close of the instructional year in June shall be attributable to
176.23the following fiscal year. A student in kindergarten or grades 1 through 12 must not be
176.24counted as more than 1.2 pupils in average daily membership under this subdivision.
176.25(b)(i) To receive general education revenue for a pupil in an area learning center
176.26or alternative learning program that has an independent study component, a district
176.27must meet the requirements in this paragraph. The district must develop, for the pupil,
176.28a continual learning plan consistent with section 124D.128, subdivision 3. Each school
176.29district that has an area learning center or alternative learning program must reserve
176.30revenue in an amount equal to at least 90 percent of the district average general education
176.31revenue per pupil unit, minus an amount equal to the product of the formula allowance
176.32according to section 126C.10, subdivision 2, times .0466, calculated without basic skills
176.33and transportation sparsity revenue, times the number of pupil units generated by students
176.34attending an area learning center or alternative learning program. The amount of reserved
176.35revenue available under this subdivision may only be spent for program costs associated
176.36with the area learning center or alternative learning program. Basic skills revenue
177.1generated according to section 126C.10, subdivision 4, by pupils attending the eligible
177.2program must be allocated to the program.
177.3(ii) General education revenue for a pupil in a state-approved alternative program
177.4without an independent study component must be prorated for a pupil participating for less
177.5than a full year, or its equivalent. The district must develop a continual learning plan for the
177.6pupil, consistent with section 124D.128, subdivision 3. Each school district that has an area
177.7learning center or alternative learning program must reserve revenue in an amount equal to
177.8at least 90 percent of the district average general education revenue per pupil unit, minus
177.9an amount equal to the product of the formula allowance according to section 126C.10,
177.10subdivision 2 , times .0466, calculated without basic skills and transportation sparsity
177.11revenue, times the number of pupil units generated by students attending an area learning
177.12center or alternative learning program. The amount of reserved revenue available under this
177.13subdivision may only be spent for program costs associated with the area learning center or
177.14alternative learning program. Basic skills revenue generated according to section 126C.10,
177.15subdivision 4 , by pupils attending the eligible program must be allocated to the program.
177.16(iii) General education revenue for a pupil in a state-approved alternative program
177.17that has an independent study component must be paid for each hour of teacher contact
177.18time and each hour of independent study time completed toward a credit or graduation
177.19standards necessary for graduation. Average daily membership for a pupil shall equal the
177.20number of hours of teacher contact time and independent study time divided by 1,020.
177.21(iv) For a state-approved alternative program having an independent study
177.22component, the commissioner shall require a description of the courses in the program, the
177.23kinds of independent study involved, the expected learning outcomes of the courses, and
177.24the means of measuring student performance against the expected outcomes.

177.25    Sec. 52. Minnesota Statutes 2013 Supplement, section 126C.10, subdivision 2a,
177.26is amended to read:
177.27    Subd. 2a. Extended time revenue. (a) A school district's extended time revenue for
177.28fiscal year 2014 is equal to the product of $4,601 and the sum of the adjusted marginal
177.29cost pupil units of the district for each pupil in average daily membership in excess of 1.0
177.30and less than 1.2 according to section 126C.05, subdivision 8. A school district's extended
177.31time revenue for fiscal year 2015 and later is equal to the product of $5,017 and the sum
177.32of the adjusted pupil units of the district for each pupil in average daily membership in
177.33excess of 1.0 and less than 1.2 according to section 126C.05, subdivision 8.
178.1(b) A school district's extended time revenue may be used for extended day
178.2programs, extended week programs, summer school, and other programming authorized
178.3under the learning year program.
178.4EFFECTIVE DATE.This section is effective the day following final enactment
178.5and applies to revenue for fiscal year 2014 and later.

178.6    Sec. 53. Minnesota Statutes 2013 Supplement, section 126C.10, subdivision 2d,
178.7is amended to read:
178.8    Subd. 2d. Declining enrollment revenue. (a) A school district's declining
178.9enrollment revenue equals the greater of zero or the product of: (1) 28 percent of the
178.10formula allowance for that year and (2) the difference between the adjusted pupil units for
178.11the preceding year and the adjusted pupil units for the current year.
178.12(b) Notwithstanding paragraph (a), for fiscal years 2015, 2016, and 2017 only, a pupil
178.13enrolled at the Crosswinds school shall not generate declining enrollment revenue for the
178.14district or charter school in which the pupil was last counted in average daily membership.

178.15    Sec. 54. Minnesota Statutes 2013 Supplement, section 126C.10, subdivision 13a,
178.16is amended to read:
178.17    Subd. 13a. Operating capital levy. To obtain operating capital revenue for fiscal
178.18year 2015 and later, a district may levy an amount not more than the product of its
178.19operating capital revenue for the fiscal year times the lesser of one or the ratio of its
178.20adjusted net tax capacity per adjusted marginal cost pupil unit to the operating capital
178.21equalizing factor. The operating capital equalizing factor equals $14,500 $14,500 for
178.22fiscal year 2015, $15,315 for fiscal year 2016, and $15,043 for fiscal year 2017 and later.

178.23    Sec. 55. Minnesota Statutes 2013 Supplement, section 126C.10, subdivision 24,
178.24is amended to read:
178.25    Subd. 24. Equity revenue. (a) A school district qualifies for equity revenue if:
178.26    (1) the school district's adjusted pupil unit amount of basic revenue, transition
178.27revenue, and referendum revenue is less than the value of the school district at or
178.28immediately above the 95th percentile of school districts in its equity region for those
178.29revenue categories; and
178.30    (2) the school district's administrative offices are not located in a city of the first
178.31class on July 1, 1999.
178.32    (b) Equity revenue for a qualifying district that receives referendum revenue under
178.33section 126C.17, subdivision 4, equals the product of (1) the district's adjusted pupil
179.1units for that year; times (2) the sum of (i) $14, plus (ii) $80, times the school district's
179.2equity index computed under subdivision 27.
179.3    (c) Equity revenue for a qualifying district that does not receive referendum revenue
179.4under section 126C.17, subdivision 4, equals the product of the district's adjusted pupil
179.5units for that year times $14.
179.6    (d) A school district's equity revenue is increased by the greater of zero or an amount
179.7equal to the district's resident adjusted pupil units times the difference between ten percent
179.8of the statewide average amount of referendum revenue per resident adjusted pupil unit for
179.9that year and the district's referendum revenue per resident adjusted pupil unit. A school
179.10district's revenue under this paragraph must not exceed $100,000 for that year.
179.11    (e) A school district's equity revenue for a school district located in the metro equity
179.12region equals the amount computed in paragraphs (b), (c), and (d) multiplied by 1.25.
179.13    (f) A school district's additional equity revenue equals $50 times its adjusted pupil
179.14units.
179.15EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
179.16and later.

179.17    Sec. 56. Minnesota Statutes 2012, section 126C.10, subdivision 25, is amended to read:
179.18    Subd. 25. Regional equity gap. The regional equity gap equals the difference
179.19between the value of the school district at or immediately above the fifth percentile of
179.20adjusted general revenue per adjusted marginal cost pupil unit and the value of the school
179.21district at or immediately above the 95th percentile of adjusted general revenue per
179.22adjusted marginal cost pupil unit.
179.23EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
179.24and later.

179.25    Sec. 57. Minnesota Statutes 2012, section 126C.10, subdivision 26, is amended to read:
179.26    Subd. 26. District equity gap. A district's equity gap equals the greater of zero
179.27or the difference between the district's adjusted general revenue and the value of the
179.28school district at or immediately above the regional 95th percentile of adjusted general
179.29revenue per adjusted marginal cost pupil unit.
179.30EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
179.31and later.

179.32    Sec. 58. Minnesota Statutes 2012, section 126C.10, subdivision 28, is amended to read:
180.1    Subd. 28. Equity region. For the purposes of computing equity revenue under
180.2subdivision 24, a district with its administrative office located in Anoka, Carver, Dakota,
180.3Hennepin, Ramsey, Scott, or Washington County on January 1, 2012, with any of its area
180.4located within the seven-county metropolitan area is part of the metro equity region. All
180.5other districts are part of the rural equity region.
180.6EFFECTIVE DATE.This section is effective for fiscal year 2015 and later.

180.7    Sec. 59. Minnesota Statutes 2013 Supplement, section 126C.10, subdivision 31,
180.8is amended to read:
180.9    Subd. 31. Transition revenue. (a) A district's transition allowance equals the
180.10sum of the transition revenue the district would have received for fiscal year 2015 under
180.11Minnesota Statutes 2012, section 126C.10, subdivisions 31, 31a, and 31c, and the greater
180.12of zero or the difference between:
180.13    (1) the sum of:
180.14    (i) the general education revenue the district would have received for fiscal year
180.152015 according to Minnesota Statutes 2012, section 126C.10;
180.16(ii) the integration revenue the district received for fiscal year 2013 under Minnesota
180.17Statutes 2012, section 124D.86;
180.18(iii) the pension adjustment the district would have received for fiscal year 2015
180.19under Minnesota Statutes 2012, section 127A.50;
180.20(iv) the special education aid the district would have received for fiscal year 2015
180.21under Minnesota Statutes 2012, section 125A.76; and
180.22(v) the special education excess cost aid the district would have received for fiscal
180.23year 2015 under Minnesota Statutes 2012, section 125A.79; and
180.24(2) the sum of the district's:
180.25(i) general education revenue for fiscal year 2015 excluding transition revenue
180.26under this section;
180.27(ii) achievement and integration revenue for fiscal year 2015 under section
180.28124D.862 ; and
180.29(iii) special education aid for fiscal year 2015 under section 125A.76; and
180.30(iv) alternative teacher compensation revenue for fiscal year 2015 under section
180.31122A.415,
180.32divided by the number of adjusted pupil units for fiscal year 2015.
180.33    (b) A district's transition revenue for fiscal year 2015 and later equals the product of
180.34the district's transition allowance times the district's adjusted pupil units.
181.1EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
181.2and later.

181.3    Sec. 60. Minnesota Statutes 2013 Supplement, section 126C.17, subdivision 6, is
181.4amended to read:
181.5    Subd. 6. Referendum equalization levy. (a) For fiscal year 2003 and later,
181.6 A district's referendum equalization levy equals the sum of the first tier referendum
181.7equalization levy, the second tier referendum equalization levy, and the third tier
181.8referendum equalization levy.
181.9(b) A district's first tier referendum equalization levy equals the district's first tier
181.10referendum equalization revenue times the lesser of one or the ratio of the district's
181.11referendum market value per resident pupil unit to $880,000.
181.12(c) A district's second tier referendum equalization levy equals the district's second
181.13tier referendum equalization revenue times the lesser of one or the ratio of the district's
181.14referendum market value per resident pupil unit to $510,000.
181.15(d) A district's third tier referendum equalization levy equals the district's third
181.16tier referendum equalization revenue times the lesser of one or the ratio of the district's
181.17referendum market value per resident pupil unit to $290,000.

181.18    Sec. 61. Minnesota Statutes 2013 Supplement, section 126C.17, subdivision 7b,
181.19is amended to read:
181.20    Subd. 7b. Referendum aid guarantee. (a) Notwithstanding subdivision 7, the sum
181.21of a district's referendum equalization aid and local optional aid under section 126C.10,
181.22subdivision 2e, for fiscal year 2015 must not be less than the sum of the referendum
181.23equalization aid the district would have received for fiscal year 2015 under Minnesota
181.24Statutes 2012, section 126C.17, subdivision 7, and the adjustment the district would have
181.25received under Minnesota Statutes 2012, section 127A.47, subdivision 7, paragraphs
181.26(a), (b), and (c).
181.27(b) Notwithstanding subdivision 7, the sum of referendum equalization aid and local
181.28optional aid under section 126C.10, subdivision 2e, for fiscal year 2016 and later, for a
181.29district qualifying for additional aid under paragraph (a) for fiscal year 2015, must not
181.30be less than the product of (1) the district's referendum equalization aid for fiscal year
181.312015, times (2) the lesser of one or the ratio of the district's referendum revenue for that
181.32school year to the district's referendum revenue for fiscal year 2015, times (3) the lesser
181.33of one or the ratio of the district's referendum market value used for fiscal year 2015
182.1referendum equalization calculations to the district's referendum market value used for
182.2that year's referendum equalization calculations.
182.3EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
182.4and later.

182.5    Sec. 62. Minnesota Statutes 2013 Supplement, section 126C.17, subdivision 9, is
182.6amended to read:
182.7    Subd. 9. Referendum revenue. (a) The revenue authorized by section 126C.10,
182.8subdivision 1 , may be increased in the amount approved by the voters of the district
182.9at a referendum called for the purpose. The referendum may be called by the board.
182.10The referendum must be conducted one or two calendar years before the increased levy
182.11authority, if approved, first becomes payable. Only one election to approve an increase
182.12may be held in a calendar year. Unless the referendum is conducted by mail under
182.13subdivision 11, paragraph (a), the referendum must be held on the first Tuesday after the
182.14first Monday in November. The ballot must state the maximum amount of the increased
182.15revenue per adjusted pupil unit. The ballot may state a schedule, determined by the board,
182.16of increased revenue per adjusted pupil unit that differs from year to year over the number
182.17of years for which the increased revenue is authorized or may state that the amount shall
182.18increase annually by the rate of inflation. For this purpose, the rate of inflation shall be the
182.19annual inflationary increase calculated under subdivision 2, paragraph (b). The ballot may
182.20state that existing referendum levy authority is expiring. In this case, the ballot may also
182.21compare the proposed levy authority to the existing expiring levy authority, and express
182.22the proposed increase as the amount, if any, over the expiring referendum levy authority.
182.23The ballot must designate the specific number of years, not to exceed ten, for which the
182.24referendum authorization applies. The ballot, including a ballot on the question to revoke
182.25or reduce the increased revenue amount under paragraph (c), must abbreviate the term
182.26"per adjusted pupil unit" as "per pupil." The notice required under section 275.60 may
182.27be modified to read, in cases of renewing existing levies at the same amount per pupil
182.28as in the previous year:
182.29"BY VOTING "YES" ON THIS BALLOT QUESTION, YOU ARE VOTING
182.30TO EXTEND AN EXISTING PROPERTY TAX REFERENDUM THAT IS
182.31SCHEDULED TO EXPIRE."
182.32    The ballot may contain a textual portion with the information required in this
182.33subdivision and a question stating substantially the following:
182.34    "Shall the increase in the revenue proposed by (petition to) the board of .........,
182.35School District No. .., be approved?"
183.1    If approved, an amount equal to the approved revenue per adjusted pupil unit times
183.2the adjusted pupil units for the school year beginning in the year after the levy is certified
183.3shall be authorized for certification for the number of years approved, if applicable, or
183.4until revoked or reduced by the voters of the district at a subsequent referendum.
183.5    (b) The board must prepare and deliver by first class mail at least 15 days but no more
183.6than 30 days before the day of the referendum to each taxpayer a notice of the referendum
183.7and the proposed revenue increase. The board need not mail more than one notice to any
183.8taxpayer. For the purpose of giving mailed notice under this subdivision, owners must be
183.9those shown to be owners on the records of the county auditor or, in any county where
183.10tax statements are mailed by the county treasurer, on the records of the county treasurer.
183.11Every property owner whose name does not appear on the records of the county auditor
183.12or the county treasurer is deemed to have waived this mailed notice unless the owner
183.13has requested in writing that the county auditor or county treasurer, as the case may be,
183.14include the name on the records for this purpose. The notice must project the anticipated
183.15amount of tax increase in annual dollars for typical residential homesteads, agricultural
183.16homesteads, apartments, and commercial-industrial property within the school district.
183.17    The notice for a referendum may state that an existing referendum levy is expiring
183.18and project the anticipated amount of increase over the existing referendum levy in
183.19the first year, if any, in annual dollars for typical residential homesteads, agricultural
183.20homesteads, apartments, and commercial-industrial property within the district.
183.21    The notice must include the following statement: "Passage of this referendum will
183.22result in an increase in your property taxes." However, in cases of renewing existing levies,
183.23the notice may include the following statement: "Passage of this referendum extends an
183.24existing operating referendum at the same amount per pupil as in the previous year."
183.25    (c) A referendum on the question of revoking or reducing the increased revenue
183.26amount authorized pursuant to paragraph (a) may be called by the board. A referendum to
183.27revoke or reduce the revenue amount must state the amount per resident marginal cost
183.28 adjusted pupil unit by which the authority is to be reduced. Revenue authority approved
183.29by the voters of the district pursuant to paragraph (a) must be available to the school
183.30district at least once before it is subject to a referendum on its revocation or reduction for
183.31subsequent years. Only one revocation or reduction referendum may be held to revoke or
183.32reduce referendum revenue for any specific year and for years thereafter.
183.33    (d) The approval of 50 percent plus one of those voting on the question is required to
183.34pass a referendum authorized by this subdivision.
183.35    (e) At least 15 days before the day of the referendum, the district must submit a
183.36copy of the notice required under paragraph (b) to the commissioner and to the county
184.1auditor of each county in which the district is located. Within 15 days after the results
184.2of the referendum have been certified by the board, or in the case of a recount, the
184.3certification of the results of the recount by the canvassing board, the district must notify
184.4the commissioner of the results of the referendum.
184.5EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
184.6and later.

184.7    Sec. 63. Minnesota Statutes 2013 Supplement, section 126C.17, subdivision 9a,
184.8is amended to read:
184.9    Subd. 9a. Board-approved referendum allowance. Notwithstanding subdivision
184.109, a school district may convert up to $300 per adjusted pupil unit of referendum authority
184.11from voter approved to board approved by a board vote. A district with less than $300 per
184.12adjusted pupil unit of referendum authority after the local optional revenue subtraction
184.13under subdivision 1 may authorize new referendum authority up to the difference between
184.14$300 per adjusted pupil unit and the district's referendum authority. The board may
184.15authorize this levy for up to five years and may subsequently reauthorize that authority
184.16in increments of up to five years.
184.17EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
184.18and later.

184.19    Sec. 64. Minnesota Statutes 2013 Supplement, section 126C.40, subdivision 1, is
184.20amended to read:
184.21    Subdivision 1. To lease building or land. (a) When an independent or a special
184.22school district or a group of independent or special school districts finds it economically
184.23advantageous to rent or lease a building or land for any instructional purposes or for
184.24school storage or furniture repair, and it determines that the operating capital revenue
184.25authorized under section 126C.10, subdivision 13, is insufficient for this purpose, it may
184.26apply to the commissioner for permission to make an additional capital expenditure levy
184.27for this purpose. An application for permission to levy under this subdivision must contain
184.28financial justification for the proposed levy, the terms and conditions of the proposed
184.29lease, and a description of the space to be leased and its proposed use.
184.30    (b) The criteria for approval of applications to levy under this subdivision must
184.31include: the reasonableness of the price, the appropriateness of the space to the proposed
184.32activity, the feasibility of transporting pupils to the leased building or land, conformity
184.33of the lease to the laws and rules of the state of Minnesota, and the appropriateness of
185.1the proposed lease to the space needs and the financial condition of the district. The
185.2commissioner must not authorize a levy under this subdivision in an amount greater than
185.3the cost to the district of renting or leasing a building or land for approved purposes.
185.4The proceeds of this levy must not be used for custodial or other maintenance services.
185.5A district may not levy under this subdivision for the purpose of leasing or renting a
185.6district-owned building or site to itself.
185.7    (c) For agreements finalized after July 1, 1997, a district may not levy under this
185.8subdivision for the purpose of leasing: (1) a newly constructed building used primarily
185.9for regular kindergarten, elementary, or secondary instruction; or (2) a newly constructed
185.10building addition or additions used primarily for regular kindergarten, elementary, or
185.11secondary instruction that contains more than 20 percent of the square footage of the
185.12previously existing building.
185.13    (d) Notwithstanding paragraph (b), a district may levy under this subdivision for the
185.14purpose of leasing or renting a district-owned building or site to itself only if the amount
185.15is needed by the district to make payments required by a lease purchase agreement,
185.16installment purchase agreement, or other deferred payments agreement authorized by law,
185.17and the levy meets the requirements of paragraph (c). A levy authorized for a district by
185.18the commissioner under this paragraph may be in the amount needed by the district to
185.19make payments required by a lease purchase agreement, installment purchase agreement,
185.20or other deferred payments agreement authorized by law, provided that any agreement
185.21include a provision giving the school districts the right to terminate the agreement
185.22annually without penalty.
185.23    (e) The total levy under this subdivision for a district for any year must not exceed
185.24$162 $212 times the adjusted pupil units for the fiscal year to which the levy is attributable.
185.25    (f) For agreements for which a review and comment have been submitted to the
185.26Department of Education after April 1, 1998, the term "instructional purpose" as used in
185.27this subdivision excludes expenditures on stadiums.
185.28    (g) The commissioner of education may authorize a school district to exceed the
185.29limit in paragraph (e) if the school district petitions the commissioner for approval. The
185.30commissioner shall grant approval to a school district to exceed the limit in paragraph (e)
185.31for not more than five years if the district meets the following criteria:
185.32    (1) the school district has been experiencing pupil enrollment growth in the
185.33preceding five years;
185.34    (2) the purpose of the increased levy is in the long-term public interest;
185.35    (3) the purpose of the increased levy promotes colocation of government services; and
186.1    (4) the purpose of the increased levy is in the long-term interest of the district by
186.2avoiding over construction of school facilities.
186.3    (h) A school district that is a member of an intermediate school district may include
186.4in its authority under this section the costs associated with leases of administrative and
186.5classroom space for intermediate school district programs. This authority must not exceed
186.6$46 $65 times the adjusted pupil units of the member districts. This authority is in addition
186.7to any other authority authorized under this section.
186.8    (i) In addition to the allowable capital levies in paragraph (a), for taxes payable in
186.92012 to 2023, a district that is a member of the "Technology and Information Education
186.10Systems" data processing joint board, that finds it economically advantageous to enter into
186.11a lease agreement to finance improvements to a building and land for a group of school
186.12districts or special school districts for staff development purposes, may levy for its portion
186.13of lease costs attributed to the district within the total levy limit in paragraph (e). The total
186.14levy authority under this paragraph shall not exceed $632,000.
186.15(j) Notwithstanding paragraph (a), a district may levy under this subdivision for the
186.16purpose of leasing administrative space if the district can demonstrate to the satisfaction of
186.17the commissioner that the lease cost for the administrative space is no greater than the
186.18lease cost for instructional space that the district would otherwise lease. The commissioner
186.19must deny this levy authority unless the district passes a resolution stating its intent to
186.20lease instructional space under this section if the commissioner does not grant authority
186.21under this paragraph. The resolution must also certify that the lease cost for administrative
186.22space under this paragraph is no greater than the lease cost for the district's proposed
186.23instructional lease.
186.24EFFECTIVE DATE.This section is effective for taxes payable in 2015 and later.

186.25    Sec. 65. Minnesota Statutes 2013 Supplement, section 126C.44, is amended to read:
186.26126C.44 SAFE SCHOOLS LEVY.
186.27    (a) Each district may make a levy on all taxable property located within the district
186.28for the purposes specified in this section. The maximum amount which may be levied for
186.29all costs under this section shall be equal to $36 multiplied by the district's adjusted pupil
186.30units for the school year. The proceeds of the levy must be reserved and used for directly
186.31funding the following purposes or for reimbursing the cities and counties who contract
186.32with the district for the following purposes:
186.33    (1) to pay the costs incurred for the salaries, benefits, and transportation costs of
186.34peace officers and sheriffs for liaison in services in the district's schools;
187.1    (2) to pay the costs for a drug abuse prevention program as defined in section
187.2609.101, subdivision 3 , paragraph (e), in the elementary schools;
187.3    (3) to pay the costs for a gang resistance education training curriculum in the
187.4district's schools;
187.5    (4) to pay the costs for security in the district's schools and on school property;
187.6    (5) to pay the costs for other crime prevention, drug abuse, student and staff safety,
187.7voluntary opt-in suicide prevention tools, and violence prevention measures taken by
187.8the school district;
187.9    (6) to pay costs for licensed school counselors, licensed school nurses, licensed
187.10school social workers, licensed school psychologists, and licensed alcohol and chemical
187.11dependency counselors to help provide early responses to problems;
187.12    (7) to pay for facility security enhancements including laminated glass, public
187.13announcement systems, emergency communications devices, and equipment and facility
187.14modifications related to violence prevention and facility security;
187.15    (8) to pay for costs associated with improving the school climate; or
187.16    (9) to pay costs for colocating and collaborating with mental health professionals
187.17who are not district employees or contractors.
187.18    (b) For expenditures under paragraph (a), clause (1), the district must initially
187.19attempt to contract for services to be provided by peace officers or sheriffs with the
187.20police department of each city or the sheriff's department of the county within the district
187.21containing the school receiving the services. If a local police department or a county
187.22sheriff's department does not wish to provide the necessary services, the district may
187.23contract for these services with any other police or sheriff's department located entirely or
187.24partially within the school district's boundaries.
187.25    (c) A school district that is a member of an intermediate school district may
187.26include in its authority under this section the costs associated with safe schools activities
187.27authorized under paragraph (a) for intermediate school district programs. This authority
187.28must not exceed $10 $15 times the adjusted marginal cost pupil units of the member
187.29districts. This authority is in addition to any other authority authorized under this section.
187.30Revenue raised under this paragraph must be transferred to the intermediate school district.
187.31EFFECTIVE DATE.This section is effective for taxes payable in fiscal year 2015
187.32and later.

187.33    Sec. 66. Minnesota Statutes 2013 Supplement, section 126C.48, subdivision 8, is
187.34amended to read:
188.1    Subd. 8. Taconite payment and other reductions. (1) Reductions in levies
188.2pursuant to subdivision 1 must be made prior to the reductions in clause (2).
188.3(2) Notwithstanding any other law to the contrary, districts that have revenue
188.4pursuant to sections 298.018; 298.225; 298.24 to 298.28, except an amount distributed
188.5under sections 298.26; 298.28, subdivision 4, paragraphs (c), clause (ii), and (d); 298.34
188.6to 298.39; 298.391 to 298.396; 298.405; 477A.15; and any law imposing a tax upon
188.7severed mineral values must reduce the levies authorized by this chapter and chapters
188.8120B, 122A, 123A, 123B, 124A, 124D, 125A, and 127A by 95 percent of the sum of the
188.9previous year's revenue specified under this clause and the amount attributable to the same
188.10production year distributed to the cities and townships within the school district under
188.11section 298.28, subdivision 2, paragraph (c).
188.12(3) The amount of any voter approved referendum, facilities down payment, and
188.13debt levies shall not be reduced by more than 50 percent under this subdivision, except that
188.14payments under sections 298.28, subdivision 7a, and 298.292, subdivision 2, clause (6),
188.15may reduce the debt service levy by more than 50 percent. In administering this paragraph,
188.16the commissioner shall first reduce the nonvoter approved levies of a district; then, if any
188.17payments, severed mineral value tax revenue or recognized revenue under paragraph (2)
188.18remains, the commissioner shall reduce any voter approved referendum levies authorized
188.19under section 126C.17; then, if any payments, severed mineral value tax revenue or
188.20recognized revenue under paragraph (2) remains, the commissioner shall reduce any voter
188.21approved facilities down payment levies authorized under section 123B.63 and then, if
188.22any payments, severed mineral value tax revenue or recognized revenue under paragraph
188.23(2) remains, the commissioner shall reduce any voter approved debt levies.
188.24(4) Before computing the reduction pursuant to this subdivision of the health and
188.25safety levy authorized by sections 123B.57 and 126C.40, subdivision 5, the commissioner
188.26shall ascertain from each affected school district the amount it proposes to levy under
188.27each section or subdivision. The reduction shall be computed on the basis of the amount
188.28so ascertained.
188.29(5) To the extent the levy reduction calculated under paragraph (2) exceeds the
188.30limitation in paragraph (3), an amount equal to the excess must be distributed from the
188.31school district's distribution under sections 298.225, 298.28, and 477A.15 in the following
188.32year to the cities and townships within the school district in the proportion that their
188.33taxable net tax capacity within the school district bears to the taxable net tax capacity of
188.34the school district for property taxes payable in the year prior to distribution. No city or
188.35township shall receive a distribution greater than its levy for taxes payable in the year prior
188.36to distribution. The commissioner of revenue shall certify the distributions of cities and
189.1towns under this paragraph to the county auditor by September 30 of the year preceding
189.2distribution. The county auditor shall reduce the proposed and final levies of cities and
189.3towns receiving distributions by the amount of their distribution. Distributions to the cities
189.4and towns shall be made at the times provided under section 298.27.

189.5    Sec. 67. Minnesota Statutes 2012, section 127A.45, subdivision 2, is amended to read:
189.6    Subd. 2. Definitions. (a) "Other district receipts" means payments by county
189.7treasurers pursuant to section 276.10, apportionments from the school endowment fund
189.8pursuant to section 127A.33, apportionments by the county auditor pursuant to section
189.9127A.34, subdivision 2 , and payments to school districts by the commissioner of revenue
189.10pursuant to chapter 298.
189.11(b) "Cumulative amount guaranteed" means the product of
189.12(1) the cumulative disbursement percentage shown in subdivision 3; times
189.13(2) the sum of
189.14(i) the current year aid payment percentage of the estimated aid and credit
189.15entitlements paid according to subdivision 13; plus
189.16(ii) 100 percent of the entitlements paid according to subdivisions 11 and 12; plus
189.17(iii) the other district receipts.
189.18(c) "Payment date" means the date on which state payments to districts are made
189.19by the electronic funds transfer method. If a payment date falls on a Saturday, a Sunday,
189.20or a weekday which is a legal holiday, the payment shall be made on the immediately
189.21preceding business day. The commissioner may make payments on dates other than
189.22those listed in subdivision 3, but only for portions of payments from any preceding
189.23payment dates which could not be processed by the electronic funds transfer method due
189.24to documented extenuating circumstances.
189.25(d) The current year aid payment percentage equals 73 in fiscal year 2010 and 70 in
189.26fiscal year 2011, and 60 in fiscal years 2012 and later 90.

189.27    Sec. 68. Minnesota Statutes 2013 Supplement, section 127A.47, subdivision 7, is
189.28amended to read:
189.29    Subd. 7. Alternative attendance programs. (a) The general education aid and
189.30special education aid for districts must be adjusted for each pupil attending a nonresident
189.31district under sections 123A.05 to 123A.08, 124D.03, 124D.08, and 124D.68. The
189.32adjustments must be made according to this subdivision.
189.33    (b) For purposes of this subdivision, the "unreimbursed cost of providing special
189.34education and services" means the difference between: (1) the actual cost of providing
190.1special instruction and services, including special transportation and unreimbursed
190.2building lease and debt service costs for facilities used primarily for special education, for
190.3a pupil with a disability, as defined in section 125A.02, or a pupil, as defined in section
190.4125A.51 , who is enrolled in a program listed in this subdivision, minus (2) if the pupil
190.5receives special instruction and services outside the regular classroom for more than
190.660 percent of the school day, the amount of general education revenue and referendum
190.7equalization aid as defined in section 125A.11, subdivision 1, paragraph (c), attributable
190.8to that pupil for the portion of time the pupil receives special instruction and services
190.9outside of the regular classroom, excluding portions attributable to district and school
190.10administration, district support services, operations and maintenance, capital expenditures,
190.11and pupil transportation, minus (3) special education aid under section 125A.76
190.12attributable to that pupil, that is received by the district providing special instruction and
190.13services. For purposes of this paragraph, general education revenue and referendum
190.14equalization aid attributable to a pupil must be calculated using the serving district's
190.15average general education revenue and referendum equalization aid per adjusted pupil unit.
190.16(c) For fiscal year 2015 and later, special education aid paid to a resident district
190.17must be reduced by an amount equal to 90 percent of the unreimbursed cost of providing
190.18special education and services.
190.19(d) Notwithstanding paragraph (c), special education aid paid to a resident district
190.20must be reduced by an amount equal to 100 percent of the unreimbursed cost of special
190.21education and services provided to students at an intermediate district, cooperative, or
190.22charter school where the percent of students eligible for special education services is at
190.23least 70 percent of the charter school's total enrollment.
190.24    (e) Special education aid paid to the district or cooperative providing special
190.25instruction and services for the pupil, or to the fiscal agent district for a cooperative,
190.26must be increased by the amount of the reduction in the aid paid to the resident district
190.27under paragraphs (c) and (d). If the resident district's special education aid is insufficient
190.28to make the full adjustment, the remaining adjustment shall be made to other state aids
190.29due to the district.
190.30    (f) An area learning center operated by a service cooperative, intermediate district,
190.31education district, or a joint powers cooperative may elect through the action of the
190.32constituent boards to charge the resident district tuition for pupils rather than to have the
190.33general education revenue paid to a fiscal agent school district. Except as provided in
190.34paragraph (e), the district of residence must pay tuition equal to at least between 90 and 100
190.35percent of the district average general education revenue per pupil unit minus an amount
190.36equal to the product of the formula allowance according to section 126C.10, subdivision
191.12 , times .0466, calculated without compensatory revenue and transportation sparsity
191.2revenue, times the number of pupil units for pupils attending the area learning center.
191.3EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
191.4and later.

191.5    Sec. 69. Minnesota Statutes 2012, section 127A.49, subdivision 2, is amended to read:
191.6    Subd. 2. Abatements. Whenever by virtue of chapter 278, sections 270C.86,
191.7375.192 , or otherwise, the net tax capacity or referendum market value of any district for
191.8any taxable year is changed after the taxes for that year have been spread by the county
191.9auditor and the local tax rate as determined by the county auditor based upon the original
191.10net tax capacity is applied upon the changed net tax capacities, the county auditor shall,
191.11prior to February 1 of each year, certify to the commissioner of education the amount of
191.12any resulting net revenue loss that accrued to the district during the preceding year. Each
191.13year, the commissioner shall pay an abatement adjustment to the district in an amount
191.14calculated according to the provisions of this subdivision. This amount shall be deducted
191.15from the amount of the levy authorized by section 126C.46. The amount of the abatement
191.16adjustment must be the product of:
191.17    (1) the net revenue loss as certified by the county auditor, times
191.18    (2) the ratio of:
191.19    (i) the sum of the amounts of the district's certified levy in the third preceding year
191.20according to the following:
191.21    (A) section 123B.57, if the district received health and safety aid according to that
191.22section for the second preceding year;
191.23    (B) section 124D.20, if the district received aid for community education programs
191.24according to that section for the second preceding year;
191.25    (C) section 124D.135, subdivision 3, if the district received early childhood family
191.26education aid according to section 124D.135 for the second preceding year;
191.27    (D) section 126C.17, subdivision 6, if the district received referendum equalization
191.28aid according to that section for the second preceding year;
191.29    (E) section 126C.10, subdivision 13a, if the district received operating capital aid
191.30according to section 126C.10, subdivision 13b, in the second preceding year;
191.31    (F) section 126C.10, subdivision 29, if the district received equity aid according to
191.32section 126C.10, subdivision 30, in the second preceding year;
191.33    (G) section 126C.10, subdivision 32, if the district received transition aid according
191.34to section 126C.10, subdivision 33, in the second preceding year;
192.1    (H) section 123B.53, subdivision 5, if the district received debt service equalization
192.2aid according to section 123B.53, subdivision 6, in the second preceding year;
192.3    (I) section 123B.535, subdivision 4, if the district received natural disaster debt
192.4service equalization aid according to section 123B.535, subdivision 5, in the second
192.5preceding year;
192.6    (I) (J) section 124D.22, subdivision 3, if the district received school-age care aid
192.7according to section 124D.22, subdivision 4, in the second preceding year;
192.8    (J) (K) section 123B.591, subdivision 3, if the district received deferred maintenance
192.9aid according to section 123B.591, subdivision 4, in the second preceding year; and
192.10    (K) (L) section 126C.10, subdivision 35, if the district received alternative teacher
192.11compensation equalization aid according to section 126C.10, subdivision 36, paragraph
192.12(a), in the second preceding year; to
192.13    (ii) the total amount of the district's certified levy in the third preceding December,
192.14plus or minus auditor's adjustments.
192.15EFFECTIVE DATE.This section is effective for revenue for fiscal year 2016
192.16and later.

192.17    Sec. 70. Minnesota Statutes 2012, section 127A.49, subdivision 3, is amended to read:
192.18    Subd. 3. Excess tax increment. (a) If a return of excess tax increment is made to a
192.19district pursuant to sections 469.176, subdivision 2, and 469.177, subdivision 9, or upon
192.20decertification of a tax increment district, the school district's aid and levy limitations
192.21must be adjusted for the fiscal year in which the excess tax increment is paid under the
192.22provisions of this subdivision.
192.23    (b) An amount must be subtracted from the district's aid for the current fiscal year
192.24equal to the product of:
192.25    (1) the amount of the payment of excess tax increment to the district, times
192.26    (2) the ratio of:
192.27    (i) the sum of the amounts of the district's certified levy for the fiscal year in which
192.28the excess tax increment is paid according to the following:
192.29    (A) section 123B.57, if the district received health and safety aid according to that
192.30section for the second preceding year;
192.31    (B) section 124D.20, if the district received aid for community education programs
192.32according to that section for the second preceding year;
192.33    (C) section 124D.135, subdivision 3, if the district received early childhood family
192.34education aid according to section 124D.135 for the second preceding year;
193.1    (D) section 126C.17, subdivision 6, if the district received referendum equalization
193.2aid according to that section for the second preceding year;
193.3    (E) section 126C.10, subdivision 13a, if the district received operating capital aid
193.4according to section 126C.10, subdivision 13b, in the second preceding year;
193.5    (F) section 126C.10, subdivision 29, if the district received equity aid according to
193.6section 126C.10, subdivision 30, in the second preceding year;
193.7    (G) section 126C.10, subdivision 32, if the district received transition aid according
193.8to section 126C.10, subdivision 33, in the second preceding year;
193.9    (H) section 123B.53, subdivision 5, if the district received debt service equalization
193.10aid according to section 123B.53, subdivision 6, in the second preceding year;
193.11    (I) section 123B.535, subdivision 4, if the district received natural disaster debt
193.12service equalization aid according to section 123B.535, subdivision 5, in the second
193.13preceding year;
193.14    (I) (J) section 124D.22, subdivision 3, if the district received school-age care aid
193.15according to section 124D.22, subdivision 4, in the second preceding year;
193.16    (J) (K) section 123B.591, subdivision 3, if the district received deferred maintenance
193.17aid according to section 123B.591, subdivision 4, in the second preceding year; and
193.18    (K) (L) section 126C.10, subdivision 35, if the district received alternative teacher
193.19compensation equalization aid according to section 126C.10, subdivision 36, paragraph
193.20(a), in the second preceding year; to
193.21    (ii) the total amount of the district's certified levy for the fiscal year, plus or minus
193.22auditor's adjustments.
193.23    (c) An amount must be subtracted from the school district's levy limitation for the
193.24next levy certified equal to the difference between:
193.25    (1) the amount of the distribution of excess increment; and
193.26    (2) the amount subtracted from aid pursuant to clause (a).
193.27    If the aid and levy reductions required by this subdivision cannot be made to the aid
193.28for the fiscal year specified or to the levy specified, the reductions must be made from
193.29aid for subsequent fiscal years, and from subsequent levies. The school district must use
193.30the payment of excess tax increment to replace the aid and levy revenue reduced under
193.31this subdivision.
193.32    (d) This subdivision applies only to the total amount of excess increments received
193.33by a district for a calendar year that exceeds $25,000.
193.34EFFECTIVE DATE.This section is effective for revenue for fiscal year 2016
193.35and later.

194.1    Sec. 71. Minnesota Statutes 2013 Supplement, section 127A.70, subdivision 2, is
194.2amended to read:
194.3    Subd. 2. Powers and duties; report. (a) The partnership shall develop
194.4recommendations to the governor and the legislature designed to maximize the achievement
194.5of all P-20 students while promoting the efficient use of state resources, thereby helping
194.6the state realize the maximum value for its investment. These recommendations may
194.7include, but are not limited to, strategies, policies, or other actions focused on:
194.8    (1) improving the quality of and access to education at all points from preschool
194.9through graduate education;
194.10    (2) improving preparation for, and transitions to, postsecondary education and
194.11work; and
194.12    (3) ensuring educator quality by creating rigorous standards for teacher recruitment,
194.13teacher preparation, induction and mentoring of beginning teachers, and continuous
194.14professional development for career teachers; and
194.15    (4) realigning the governance and administrative structures of early education,
194.16kindergarten through grade 12, and postsecondary systems in Minnesota.
194.17    (b) Under the direction of the P-20 Education Partnership Statewide Longitudinal
194.18Education Data System Governance Committee, the Office of Higher Education and the
194.19Departments of Education and Employment and Economic Development shall improve
194.20and expand the Statewide Longitudinal Education Data System (SLEDS) to provide
194.21policymakers, education and workforce leaders, researchers, and members of the public
194.22with data, research, and reports to:
194.23(1) expand reporting on students' educational outcomes;
194.24(2) evaluate the effectiveness of educational and workforce programs; and
194.25(3) evaluate the relationship between education and workforce outcomes.
194.26To the extent possible under federal and state law, research and reports should be
194.27accessible to the public on the Internet, and disaggregated by demographic characteristics,
194.28organization or organization characteristics, and geography.
194.29It is the intent of the legislature that the Statewide Longitudinal Education Data
194.30System inform public policy and decision-making. The SLEDS governance committee,
194.31with assistance from staff of the Office of Higher Education, the Department of Education,
194.32and the Department of Employment and Economic Development, shall respond to
194.33legislative committee and agency requests on topics utilizing data made available through
194.34the Statewide Longitudinal Education Data System as resources permit. Any analysis of
194.35or report on the data must contain only summary data.
195.1    (c) By January 15 of each year, the partnership shall submit a report to the governor
195.2and to the chairs and ranking minority members of the legislative committees and
195.3divisions with jurisdiction over P-20 education policy and finance that summarizes the
195.4partnership's progress in meeting its goals and identifies the need for any draft legislation
195.5when necessary to further the goals of the partnership to maximize student achievement
195.6while promoting efficient use of resources.

195.7    Sec. 72. Minnesota Statutes 2012, section 129C.10, subdivision 3, is amended to read:
195.8    Subd. 3. Powers and duties of board. (a) The board has the powers necessary for
195.9the care, management, and control of the Perpich Center for Arts Education and any other
195.10school authorized in this chapter, and all its their real and personal property. The powers
195.11shall include, but are not limited to, those listed in this subdivision.
195.12(b) The board may employ and discharge necessary employees, and contract for
195.13other services to ensure the efficient operation of the Center for Arts Education and any
195.14other school authorized in this chapter.
195.15(c) The board may receive and award grants. The board may establish a charitable
195.16foundation and accept, in trust or otherwise, any gift, grant, bequest, or devise for
195.17educational purposes and hold, manage, invest, and dispose of them and the proceeds
195.18and income of them according to the terms and conditions of the gift, grant, bequest, or
195.19devise and its acceptance. The board must adopt internal procedures to administer and
195.20monitor aids and grants.
195.21(d) The board may establish or coordinate evening, continuing education, extension,
195.22and summer programs for teachers and pupils.
195.23(e) The board may identify pupils who have artistic talent, either demonstrated or
195.24potential, in dance, literary arts, media arts, music, theater, and visual arts, or in more
195.25than one art form.
195.26(f) The board must educate pupils with artistic talent by providing:
195.27(1) an interdisciplinary academic and arts program for pupils in the 11th and 12th
195.28grades. The total number of pupils accepted under this clause and clause (2) shall not
195.29exceed 310;
195.30(2) additional instruction to pupils for a 13th grade. Pupils eligible for this
195.31instruction are those enrolled in 12th grade who need extra instruction and who apply
195.32to the board, or pupils enrolled in the 12th grade who do not meet learner outcomes
195.33established by the board;
195.34(3) intensive arts seminars for one or two weeks for pupils in grades 9 to 12;
195.35(4) summer arts institutes for pupils in grades 9 to 12;
196.1(5) artist mentor and extension programs in regional sites; and
196.2(6) teacher education programs for indirect curriculum delivery.
196.3(g) The board may determine the location for the Perpich Center for Arts Education
196.4and any additional facilities related to the center, including the authority to lease a
196.5temporary facility.
196.6(h) The board must plan for the enrollment of pupils on an equal basis from each
196.7congressional district.
196.8(i) The board may establish task forces as needed to advise the board on policies and
196.9issues. The task forces expire as provided in section 15.059, subdivision 6.
196.10(j) The board may request the commissioner of education for assistance and services.
196.11(k) The board may enter into contracts with other public and private agencies
196.12and institutions for residential and building maintenance services if it determines that
196.13these services could be provided more efficiently and less expensively by a contractor
196.14than by the board itself. The board may also enter into contracts with public or private
196.15agencies and institutions, school districts or combinations of school districts, or service
196.16cooperatives to provide supplemental educational instruction and services.
196.17(l) The board may provide or contract for services and programs by and for the
196.18Center for Arts Education, including a store, operating in connection with the center;
196.19theatrical events; and other programs and services that, in the determination of the board,
196.20serve the purposes of the center.
196.21(m) The board may provide for transportation of pupils to and from the Center for
196.22Arts Education for all or part of the school year, as the board considers advisable and
196.23subject to its rules. Notwithstanding any other law to the contrary, the board may charge a
196.24reasonable fee for transportation of pupils. Every driver providing transportation of pupils
196.25under this paragraph must possess all qualifications required by the commissioner of
196.26education. The board may contract for furnishing authorized transportation under rules
196.27established by the commissioner of education and may purchase and furnish gasoline to a
196.28contract carrier for use in the performance of a contract with the board for transportation
196.29of pupils to and from the Center for Arts Education. When transportation is provided,
196.30scheduling of routes, establishment of the location of bus stops, the manner and method of
196.31transportation, the control and discipline of pupils, and any other related matter is within
196.32the sole discretion, control, and management of the board.
196.33(n) The board may provide room and board for its pupils. If the board provides room
196.34and board, it shall charge a reasonable fee for the room and board. The fee is not subject
196.35to chapter 14 and is not a prohibited fee according to sections 123B.34 to 123B.39.
197.1(o) The board may establish and set fees for services and programs. If the board sets
197.2fees not authorized or prohibited by the Minnesota public school fee law, it may do so
197.3without complying with the requirements of section 123B.38.
197.4(p) The board may apply for all competitive grants administered by agencies of the
197.5state and other government or nongovernment sources.
197.6EFFECTIVE DATE.This section is effective the day following final enactment.

197.7    Sec. 73. Minnesota Statutes 2012, section 129C.10, is amended by adding a
197.8subdivision to read:
197.9    Subd. 5a. Interdistrict voluntary integration magnet program. Notwithstanding
197.10Minnesota Rules, parts 3535.0110 and 3535.0150, the board may establish and operate
197.11an interdistrict integration magnet program according to section 129C.30. For fiscal year
197.122016 and later, the board must have an approved achievement and integration plan and
197.13budget under section 124D.861.
197.14EFFECTIVE DATE.This section is effective the day following final enactment.

197.15    Sec. 74. [129C.30] CROSSWINDS INTEGRATION MAGNET SCHOOL.
197.16    Subdivision 1. Definitions. (a) The following terms having the meanings given
197.17them for this chapter.
197.18(b) "Board" means the board of directors of the Perpich Center for Arts Education.
197.19(c) "Crosswinds school" means the Crosswinds school in Woodbury operated during
197.20the 2012-2013 school year by Joint Powers District No. 6067, East Metro Integration
197.21District.
197.22    Subd. 2. Board to operate the Crosswinds school. The board may operate the
197.23Crosswinds school with the powers and duties granted to it under this chapter. A student
197.24may apply to the Crosswinds school under section 124D.03 and the Crosswinds school
197.25may accept students under that section.
197.26    Subd. 3. General education funding. (a) General education revenue must be paid
197.27to the Crosswinds school as though it were a district. The general education revenue for
197.28each adjusted pupil unit is the state average general education revenue per pupil unit, plus
197.29the referendum equalization aid allowance in the pupil's district of residence, minus an
197.30amount equal to the product of the formula allowance according to section 126C.10,
197.31subdivision 2, times .0466, calculated without declining enrollment, basic skills revenue,
197.32extended time revenue, pension adjustment revenue, transition revenue, and transportation
197.33sparsity revenue, plus declining enrollment, basic skills revenue, extended time revenue,
198.1pension adjustment revenue, and transition revenue as though the school were a school
198.2district. The general education revenue for each extended time pupil unit equals $4,794.
198.3    (b) General education revenue under paragraph (a) must be reduced by an amount
198.4equal to 75 percent of the school's equity revenue for that year.
198.5    Subd. 4. Special education funding. Special education aid must be paid to the
198.6Crosswinds school according to sections 125A.76 and 125A.79, as though it were a
198.7school district. The special education aid paid to the Crosswinds school shall be adjusted
198.8as follows:
198.9(1) if the Crosswinds school does not receive general education revenue on behalf of
198.10the student according to subdivision 3, the aid shall be adjusted as provided in section
198.11125A.11; or
198.12(2) if the Crosswinds school receives general education revenue on behalf of the
198.13student according to subdivision 3, the aid shall be adjusted as provided in section
198.14127A.47, subdivision 7, paragraphs (b) to (d).
198.15    Subd. 5. Pupil transportation. For fiscal year 2015 only, a member district of Joint
198.16Powers District No. 6067, East Metro Integration District must transport pupils enrolled at
198.17the Crosswinds school in the same manner as they were transported in fiscal year 2014.
198.18Pupil transportation expenses under this section are reimbursable under section 124D.87.
198.19    Subd. 6. Achievement and integration aid. For fiscal year 2016 and later, the
198.20Crosswinds school is eligible for achievement and integration aid under section 124D.862
198.21as if it were a school district.
198.22    Subd. 7. Other aids, grants, revenue. (a) The Crosswinds school is eligible to
198.23receive other aids, grants, and revenue according to chapters 120A to 129C as though it
198.24were a district.
198.25(b) Notwithstanding paragraph (a), the Crosswinds school may not receive aid, a
198.26grant, or revenue if a levy is required to obtain the money, or if the aid, grant, or revenue
198.27replaces levy revenue that is not general education revenue, except as otherwise provided
198.28in this section.
198.29(c) Federal aid received by the state must be paid to the school, if it qualifies for
198.30the aid as though it were a school district.
198.31(d) In the year-end report to the commissioner of education, the Crosswinds school
198.32shall report the total amount of funds received from grants and other outside sources.
198.33    Subd. 8. Year-round programming. The Crosswinds school may operate as a
198.34flexible learning year program under sections 124D.12 to 124D.127.
198.35    Subd. 9. Data requirements. The commissioner of education shall require the
198.36Crosswinds school to follow the budget and accounting procedures required for school
199.1districts and the Crosswinds school shall report all data to the Department of Education in
199.2the form and manner required by the commissioner.

199.3    Sec. 75. Minnesota Statutes 2013, section 298.28, subdivision 7a, as added by Laws
199.42014, chapter 150, article 6, section 13, is amended to read:
199.5    Subd. 7a. Iron Range school consolidation and cooperatively operated school
199.6account. The following amounts must be allocated to the Iron Range Resources and
199.7Rehabilitation Board to be deposited in the Iron Range school consolidation and
199.8cooperatively operated school account that is hereby created:
199.9(1) ten cents per taxable ton of the tax imposed under section 298.24;
199.10(2) the amount as determined under section 298.17, paragraph (b), clause (3); and
199.11(3) for distributions in 2015 through 2017, an amount equal to two-thirds of the
199.12increased tax proceeds attributable to the increase in the implicit price deflator as provided
199.13in section 298.24, subdivision 1.
199.14Expenditures from this account shall be made only to provide disbursements to
199.15assist school districts with the payment of bonds that were issued for qualified school
199.16projects, or for any other disbursement as approved by the Iron Range Resources and
199.17Rehabilitation Board. For purposes of this section, "qualified school projects" means
199.18school projects within the taconite assistance area as defined in section 273.1341, that
199.19were (1) approved, by referendum, after December 7, 2009; and (2) approved by the
199.20commissioner of education pursuant to section 123B.71.
199.21Beginning in fiscal year 2019, the disbursement to school districts for payments for
199.22bonds issued under section 123A.482, subdivision 9, must be increased each year to
199.23offset any reduction in debt service equalization aid that the school district qualifies for in
199.24that year, under section 123B.53, subdivision 6, compared with the amount the school
199.25district qualified for in fiscal year 2018.
199.26No expenditure under this section shall be made unless approved by seven members
199.27of the Iron Range Resources and Rehabilitation Board.
199.28EFFECTIVE DATE.This section is effective for production year 2014 and
199.29thereafter.

199.30    Sec. 76. Laws 2013, chapter 116, article 1, section 58, subdivision 2, is amended to read:
199.31    Subd. 2. General education aid. For general education aid under Minnesota
199.32Statutes, section 126C.13, subdivision 4:

200.1 200.2		$	6,051,766,000 6,851,419,000	.....	2014
200.3 200.4		$	6,370,640,000 6,440,407,000	.....	2015

200.5The 2014 appropriation includes $781,842,000 $780,156,000 for 2013 and
200.6$5,269,924,000 $6,071,263,000 for 2014.
200.7The 2015 appropriation includes $823,040,000 $589,095,000 for 2014 and
200.8$5,547,600,000 $5,851,312,000 for 2015.

200.9    Sec. 77. Laws 2013, chapter 116, article 3, section 37, subdivision 15, is amended to
200.10read:
200.11    Subd. 15. Early childhood literacy programs. For early childhood literacy
200.12programs under Minnesota Statutes, section 119A.50, subdivision 3:

200.13		$	4,125,000	.....	2014
200.14 200.15		$	4,125,000 6,125,000	.....	2015

200.16Up to $4,125,000 each in the first year and $6,125,000 in the second year is for
200.17leveraging federal and private funding to support AmeriCorps members serving in the
200.18Minnesota Reading Corps program established by ServeMinnesota, including costs
200.19associated with the training and teaching of early literacy skills to children age three to
200.20grade 3 and the evaluation of the impact of the program under Minnesota Statutes, sections
200.21124D.38, subdivision 2 , and 124D.42, subdivision 6. Up to $2,000,000 in fiscal year
200.222015 must be used to support priority and focus schools as defined by the Department
200.23of Education and to expand kindergarten programming.
200.24Any balance in the first year does not cancel but is available in the second year.
200.25The base for fiscal year 2016 and later is $4,125,000.

200.26    Sec. 78. Laws 2013, chapter 116, article 5, section 31, subdivision 8, is amended to read:
200.27    Subd. 8. Special education paperwork cost savings. For the contract to effect
200.28 special education paperwork cost savings under Minnesota Statutes, section 125A.08,
200.29subdivision 2, paragraph (c):

200.30

$

1,763,000

.....

2014

200.31For a transfer to MNIT. This appropriation is available in fiscal year 2015 if not
200.32expended.
200.33EFFECTIVE DATE.This section is effective the day following final enactment.

201.1    Sec. 79. Laws 2013, chapter 116, article 7, section 21, subdivision 2, is amended to read:
201.2    Subd. 2. School lunch. For school lunch aid according to Minnesota Statutes,
201.3section 124D.111, and Code of Federal Regulations, title 7, section 210.17:

201.4		$	13,032,000	.....	2014
201.5 201.6		$	13,293,000 16,185,000	.....	2015

201.7    Sec. 80. Laws 2013, chapter 116, article 7, section 21, subdivision 3, is amended to read:
201.8    Subd. 3. School breakfast. For traditional school breakfast aid under Minnesota
201.9Statutes, section 124D.1158:

201.10 201.11		$	5,711,000 5,308,000	.....	2014
201.12 201.13		$	6,022,000 6,176,000	.....	2015

201.14    Sec. 81. Laws 2013, chapter 116, article 8, section 5, subdivision 2, is amended to read:
201.15    Subd. 2. School readiness. For revenue for school readiness programs under
201.16Minnesota Statutes, sections 124D.15 and 124D.16:

201.17 201.18		$	10,095,000 10,458,000	.....	2014
201.19 201.20		$	10,159,000 13,529,000	.....	2015

201.21The 2014 appropriation includes $1,372,000 for 2013 and $8,723,000 $9,086,000
201.22 for 2014.
201.23The 2015 appropriation includes $1,372,000 $1,009,000 for 2014 and $8,787,000
201.24 $12,520,000 for 2015.

201.25    Sec. 82. Laws 2013, chapter 116, article 8, section 5, subdivision 3, is amended to read:
201.26    Subd. 3. Early childhood family education aid. For early childhood family
201.27education aid under Minnesota Statutes, section 124D.135:

201.28 201.29		$	22,078,000 22,797,000	.....	2014
201.30 201.31		$	22,425,000 30,905,000	.....	2015

201.32    The 2014 appropriation includes $3,008,000 for 2013 and $19,070,000 $19,789,000
201.33 for 2014.
201.34    The 2015 appropriation includes $3,001,000 $2,198,000 for 2014 and $19,424,000
201.35 $28,707,000 for 2015.

202.1    Sec. 83. Laws 2013, chapter 116, article 8, section 5, subdivision 8, is amended to read:
202.2    Subd. 8. Early childhood education scholarships. For transfer to the Office of
202.3Early Learning for early learning scholarships under Minnesota Statutes, section 124D.165:

202.4		$	23,000,000	.....	2014
202.5 202.6		$	23,000,000 31,800,000	.....	2015

202.7Up to $950,000 each year is for administration of this program.
202.8Any balance in the first year does not cancel but is available in the second year.
202.9The base for fiscal year 2016 and later is $29,650,000.
202.10EFFECTIVE DATE.This section is effective July 1, 2014.

202.11    Sec. 84. Laws 2013, chapter 116, article 8, section 5, subdivision 9, is amended to read:
202.12    Subd. 9. Parent-child home program. For a grant to the parent-child home
202.13program:

202.14		$	250,000	.....	2014
202.15		$	250,000 350,000	.....	2015

202.16The grant must be used for an evidence-based and research-validated early childhood
202.17literacy and school readiness program for children ages 16 months to four years at its
202.18existing suburban program location. The program must expand to one additional urban
202.19and one additional rural program location for fiscal years 2014 and 2015. The base for
202.20fiscal year 2016 and later is $250,000.

202.21    Sec. 85. Laws 2013, chapter 116, article 8, section 5, subdivision 14, is amended to read:
202.22    Subd. 14. Adult basic education aid. For adult basic education aid under
202.23Minnesota Statutes, section 124D.531:

202.24 202.25		$	47,005,000 48,776,000	.....	2014
202.26 202.27		$	48,145,000 48,415,000	.....	2015

202.28The 2014 appropriation includes $6,284,000 $6,278,000 for 2013 and $40,721,000
202.29 $42,498,000 for 2014.
202.30The 2015 appropriation includes $6,409,000 $4,722,000 for 2014 and $41,736,000
202.31 $43,693,000 for 2015.

202.32    Sec. 86. Laws 2013, chapter 116, article 9, section 2, is amended to read:
202.33    Sec. 2. APPROPRIATIONS; MINNESOTA STATE ACADEMIES.
203.1The sums indicated in this section are appropriated from the general fund to the
203.2Minnesota State Academies for the Deaf and the Blind for the fiscal years designated:

203.3		$	11,749,000	.....	2014
203.4 203.5		$	11,664,000 11,964,000	.....	2015

203.6$85,000 of the fiscal year 2014 appropriation is for costs associated with upgrading
203.7kitchen facilities. Any balance in the first year does not cancel but is available in the
203.8second year.

203.9    Sec. 87. FISCAL YEAR 2015 LEASE LEVY AUTHORITY.
203.10(a) Notwithstanding Minnesota Statutes, section 126C.40, subdivision 1, paragraph
203.11(e), for taxes payable in 2015, a district may apply to the commissioner in a manner
203.12consistent with Minnesota Statutes, section 126C.40, subdivision 1, paragraph (a), to levy
203.13an amount not to exceed $50 times the adjusted pupil units for fiscal year 2015.
203.14(b) Notwithstanding Minnesota Statutes, section 126C.40, subdivision 1, paragraph
203.15(h), for taxes payable in 2015, a school district that is a member of an intermediate school
203.16district may include in its authority under this section the costs associated with leases of
203.17administrative and classroom space for intermediate school district programs. Authority
203.18under this paragraph must not exceed $19 times the adjusted pupil units of the member
203.19districts and is in addition to any other authority authorized under this section.
203.20(c) A levy made under this section must be used for purposes consistent with
203.21Minnesota Statutes, section 126C.40, subdivision 1, and be recognized as revenue in
203.22fiscal year 2015.

203.23    Sec. 88. HARAMBEE COMMUNITY SCHOOL TRANSITION.
203.24    Subdivision 1. Student enrollment. A student enrolled in the Harambee community
203.25school during the 2013-2014 school year may continue to enroll in the Harambee
203.26community school in any subsequent year. For the 2014-2015 school year and later, other
203.27students may apply for enrollment under Minnesota Statutes, section 124D.03.
203.28    Subd. 2. Compensatory revenue, literacy aid, and alternative compensation
203.29revenue. For the 2014-2015 school year only, the Department of Education must calculate
203.30compensatory revenue, literacy aid, and alternative compensation revenue for the
203.31Harambee community school based on the fall 2013 enrollment counts.
203.32    Subd. 3. Year-round programming. Harambee community school may operate as
203.33a flexible learning year program under Minnesota Statutes, sections 124D.12 to 124D.127.
204.1    Subd. 4. Pupil transportation. The board may transport pupils enrolled in the
204.22013-2014 school year to and from the Harambee community school in succeeding school
204.3years regardless of the students' districts of residence. Pupil transportation expenses under
204.4this section are reimbursable under Minnesota Statutes, section 124D.87.
204.5EFFECTIVE DATE.This section is effective the day following final enactment.

204.6    Sec. 89. INFORMATION TECHNOLOGY CERTIFICATION PARTNERSHIPS;
204.7REQUEST FOR PROPOSAL; PROGRAM REQUIREMENTS.
204.8(a) The commissioner shall contract with at least one provider to provide information
204.9technology education opportunities to students in grades 9 through 12. This partnership
204.10must allow participating students and teachers to secure broad-based information
204.11technology certifications.
204.12(b) The commissioner shall issue a competitive request for proposals, award the
204.13contract, and make available, through participating school districts, charter schools, and
204.14intermediate districts, instruction on information technology skills and competencies
204.15that are essential for career and college readiness. The request for proposals shall at
204.16least include the following components:
204.17(1) a research-based curriculum;
204.18(2) online access to the curriculum;
204.19(3) instructional software for classroom and student use;
204.20(4) certification of skills and competencies in a broad array of information
204.21technology-related skill areas;
204.22(5) professional development for teachers; and
204.23(6) deployment and program support, including, but not limited to, integration with
204.24academic standards under Minnesota Statutes, section 120B.021 or 120B.022.
204.25(c) If the contract awarded under this section does not allow for the service to be
204.26delivered in every eligible school, the commissioner shall make the contracted service
204.27available on a first-come, first-served basis to an equal number of schools in each of the
204.28regions represented by a regional development commission under Minnesota Statutes,
204.29section 462.387, and in the region consisting of counties not represented by a regional
204.30development commission. If participating schools in any region do not exhaust the services
204.31allocated to that region, the commissioner may reallocate unused services to other regions.

204.32    Sec. 90. LEASE LEVY; SATELLITE TRANSPORTATION HUB FOR
204.33ROSEMOUNT-APPLE VALLEY-EAGAN SCHOOL DISTRICT.
205.1Notwithstanding Minnesota Statutes, section 126C.40, subdivision 1, Independent
205.2School District No. 196, Rosemount-Apple Valley-Eagan, may lease a satellite
205.3transportation hub under Minnesota Statutes, section 126C.40, subdivision 1, if the district
205.4can demonstrate to the satisfaction of the commissioner of education that the satellite
205.5transportation hub will result in a significant financial savings. Levy authority under
205.6this section shall not exceed the total levy authority under Minnesota Statutes, section
205.7126C.40, subdivision 1, paragraph (e).
205.8EFFECTIVE DATE.This section is effective for taxes payable in 2015 and later.

205.9    Sec. 91. LEGISLATIVE REPORT ON K-12 STUDENTS' EXPERIENCE WITH
205.10PHYSICAL EDUCATION.
205.11(a) The commissioner of education must prepare and submit to the education policy
205.12and finance committees of the legislature by January 15, 2015, a written report on K-12
205.13students' experience with physical education, consistent with this section. Among other
205.14physical education-related issues, the report must include:
205.15(1) the number of minutes per day and frequency per week students in each grade
205.16level, kindergarten through grade 8, receive physical education, identify the requirements in
205.17high school physical education in terms of semesters, trimesters, quarters, or school years;
205.18(2) the measures and data used to assess students' level of fitness and the uses made
205.19of the fitness data;
205.20(3) the educational preparation of physical education instructors and the proportion
205.21of time certified physical education teachers provide physical education instruction;
205.22(4) the amount of time and number of days per week each grade level, kindergarten
205.23through grade 6, receives recess;
205.24(5) whether high school students are allowed to substitute other activities for
205.25required physical education, and, if so, which activities qualify;
205.26(6) identify the number or percentage of high school students who earn required
205.27physical education credits online;
205.28(7) whether schools offer before or after school physical activities opportunities in
205.29each grade level, kindergarten through grade 8, and in high school, and, if so, what are the
205.30opportunities; and
205.31(8) the extent to which schools coordinate with developmentally adaptive physical
205.32education specialists when needed.
205.33(b) Any costs of preparing this report must be paid for out of the Department of
205.34Education's current operating budget.
206.1EFFECTIVE DATE.This section is effective the day following final enactment.

206.2    Sec. 92. RECIPROCITY AGREEMENT EXEMPTION; HENDRICKS.
206.3Notwithstanding Minnesota Statutes, sections 124D.04, subdivision 6, paragraph
206.4(b); 124D.041, subdivision 3, paragraph (b); and 124D.05, subdivision 2a, the provisions
206.5of Minnesota Statutes, section 124D.041 and the agreement shall not apply to Independent
206.6School District No. 402, Hendricks.
206.7EFFECTIVE DATE.This section is effective for the 2014-2015 school year and
206.8later.

206.9    Sec. 93. TEACHER DEVELOPMENT AND EVALUATION REVENUE.
206.10    (a) For fiscal year 2015 only, teacher development and evaluation revenue for a school
206.11district, intermediate school district, or charter school that does not have an alternative
206.12professional pay system agreement under Minnesota Statutes, section 122A.414,
206.13subdivision 2, equals $302 times the number of full-time equivalent teachers employed on
206.14October 1 of the previous school year. Revenue under this section must be reserved for
206.15teacher development and evaluation activities consistent with Minnesota Statutes, section
206.16122A.40, subdivision 8, or Minnesota Statutes, section 122A.41, subdivision 5. For the
206.17purposes of this section, "teacher" has the meaning given it in Minnesota Statutes, section
206.18122A.40, subdivision 1, or Minnesota Statutes, section 122A.41, subdivision 1.
206.19    (b) Notwithstanding paragraph (a), the state total teacher development and evaluation
206.20revenue entitlement must not exceed $10,000,000 for fiscal year 2015. The commissioner
206.21must limit the amount of revenue under this section so as not to exceed this limit.

206.22    Sec. 94. TRANSITION REQUIREMENTS; CROSSWINDS SCHOOL.
206.23    Subdivision 1. Student enrollment. Any student enrolled in the Crosswinds school
206.24during the 2013-2014 school year may continue to enroll in the Crosswinds school in
206.25any subsequent year. For the 2014-2015 school year and later, a student may apply for
206.26enrollment to the school under Minnesota Statutes, section 124D.03.
206.27    Subd. 2. Compensatory revenue, literacy aid, and alternative compensation
206.28revenue. For the 2014-2015 school year only, the Department of Education must calculate
206.29compensatory revenue, literacy aid, and alternative compensation revenue for the
206.30Crosswinds school based on the October 1, 2013, enrollment counts at that site.
206.31    Subd. 3. Title 1 funding. To the extent possible, the Department of Education
206.32must qualify the Crosswinds school for Title 1, and if applicable, other federal funding,
207.1as if the program were still operated by Joint Powers District No. 6067, East Metro
207.2Integration District.
207.3EFFECTIVE DATE.This section is effective the day following final enactment.

207.4    Sec. 95. VISION THERAPY PILOT PROJECT.
207.5    Subdivision 1. Establishment. A three-year grant program is established to fund
207.6vision therapy pilot projects in up to two school districts.
207.7    Subd. 2. Pilot project. In each year of the pilot project, second and third grade
207.8students identified by a set of criteria by the pilot school shall be admitted into the pilot
207.9study. Identified students shall have a comprehensive eye examination with written
207.10standard requirements of testing. Students identified with a diagnosis of convergence
207.11insufficiency must undergo a vision efficiency evaluation by a licensed optometrist or
207.12ophthalmologist trained in the evaluation of learning-related vision problems. The results
207.13of this examination shall determine whether a student will qualify for neuro-optometric
207.14vision therapy funded by the grant. The parent or guardian of a student who qualifies for
207.15the pilot program under this paragraph may submit a written notification to the school
207.16opting the student out of the program. Guidelines must be established to provide quality
207.17standards and measures to ensure an appropriate diagnosis and treatment plan that is
207.18consistent with the convergence insufficiency treatment trial study.
207.19    Subd. 3. Application. The applicant school district must submit a plan to the
207.20commissioner of education in the form and manner the commissioner determines. A
207.21charter school is not eligible to apply. The application must include:
207.22(1) the school that will implement the pilot project;
207.23(2) who will provide the comprehensive eye exam, visual efficiency evaluation, and
207.24the neuro-optometric vision therapy treatment along with appropriate licensure;
207.25(3) how the vision and reading skills of students participating in the program will be
207.26evaluated before and after vision therapy;
207.27(4) how students' progress will be monitored during and after receiving
207.28neuro-optometric vision therapy; and
207.29(5) what additional reading interventions will be available to students after
207.30completion of the neuro-optometric vision therapy program.
207.31    Subd. 4. Application review; grant awards. (a) Grant money must be paid to the
207.32recipient districts in the 2014-2015, 2015-2016, and 2016-2017 school years.
207.33(b) The grant is awarded for a three-year time period.
207.34(c) The commissioner shall oversee the grant distribution.
208.1(d) A grant shall be awarded to Independent School District No. 12, Centennial,
208.2provided the district meets the application requirements in subdivision 3.
208.3(e) A grant shall be awarded to an applicant district with its administrative offices
208.4not located in Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington County,
208.5or a city of the first class.
208.6    Subd. 5. Evaluation. The commissioner of education must provide for an evaluation
208.7of the pilot project and must report to the legislative committees with jurisdiction over
208.8kindergarten through grade 12 education policy and finance by January 15, 2018.

208.9    Sec. 96. APPROPRIATION; RESPONSES TO HEALTH INSURANCE
208.10TRANSPARENCY ACT BID REQUESTS.
208.11    (a) $294,000 is appropriated for fiscal year 2015 from the general fund to the
208.12commissioner of management and budget to comply with the requirements relating to
208.13health insurance transparency similar to those proposed in Senate File 1835, if enacted in
208.14the 2014 regular legislative session. This is a onetime appropriation.
208.15    (b) If a bill meeting the requirements of paragraph (a) is enacted, the commissioner
208.16of management and budget shall report by January 15, 2015, to the legislative chairs
208.17and ranking minority members with jurisdiction over state government finance on the
208.18ongoing costs incurred by the public employees insurance program in compliance with
208.19the requirements of the Health Insurance Transparency Act and may request additional
208.20appropriations, if necessary.

208.21    Sec. 97. APPROPRIATIONS.
208.22    Subdivision 1. Department of Education. The sums indicated in this section
208.23are appropriated from the general fund to the Department of Education for the fiscal
208.24year designated.
208.25    Subd. 2. Headwaters Science Center. For a grant to the Headwaters Science
208.26Center for hands-on science, technology, engineering, and math (STEM) education.

208.27

$

50,000

.....

2015

208.28The base for fiscal year 2016 and later is $0.
208.29    Subd. 3. The Works Museum. For a grant to the Works Museum for hands-on
208.30science, technology, engineering, and math (STEM) education.

208.31

$

75,000

.....

2015

208.32The base for fiscal year 2016 and later is $0.
209.1    Subd. 4. Northwestern Online College in the High School program. For the
209.2Northwestern Online College in the High School program:

209.3

$

160,000

.....

2015

209.4The base for fiscal year 2016 and later is $0.
209.5    Subd. 5. Information technology certification partnership. For an information
209.6technology certification partnership.

209.7

$

340,000

.....

2015

209.8The base for 2016 and later is $0.
209.9    Subd. 6. Grants for vision therapy pilot project. For grants to implement a
209.10neuro-optometric vision therapy pilot project:

209.11

$

500,000

.......

2015

209.12This appropriation is available until expended.
209.13The base for fiscal year 2016 and later is $0.
209.14    Subd. 7. Legislative report on K-12 students' experience with physical
209.15education. For the preparation of the legislative report on K-12 students' experience
209.16with physical education.

209.17

$

73,000

.....

2015

209.18    The base for fiscal year 2016 and later is $0.
209.19    Subd. 8. Teacher development and evaluation. For teacher development and
209.20evaluation revenue.

209.21

$

9,000,000

.....

2015

209.22The 2015 appropriation includes $0 for 2014 and $9,000,000 for 2015. This is a
209.23onetime appropriation and is available until expended.
209.24    Subd. 9. Saint Paul Promise Neighborhood. For a grant to the Saint Paul Promise
209.25Neighborhood.

209.26

$

600,000

.....

2015

209.27(a) Funds appropriated in this section are to reduce multigenerational poverty and
209.28the educational achievement gap through increased enrollment of families within the
209.29zone, and may be used for Saint Paul Promise Neighborhood programming and services
209.30consistent with federal Promise Neighborhood program agreements and requirements.
209.31(b) The Saint Paul Promise Neighborhood shall submit a report on January 15, 2016,
209.32to the chairs of the legislative committees with jurisdiction over early childhood through
210.1grade 12 education policy and finance. The report, at a minimum, must summarize
210.2program activities, specify performance measures, and analyze program outcomes.
210.3(c) The base appropriation for fiscal year 2016 is $0.
210.4    Subd. 10. Northside Achievement Zone. For a grant to the Northside Achievement
210.5Zone.

210.6

$

600,000

.....

2015

210.7(a) Funds appropriated in this section are to reduce multigenerational poverty and
210.8the educational achievement gap through increased enrollment of families within the zone,
210.9and may be used for Northside Achievement Zone programming and services consistent
210.10with federal Promise Neighborhood program agreements and requirements. The base
210.11appropriation for fiscal year 2016 is $0.
210.12(b) The Northside Achievement Zone shall submit a report to the chairs of the
210.13legislative committees with jurisdiction over early childhood through grade 12 education
210.14policy and finance that, at a minimum, summarizes program activities, specifies
210.15performance measures, and analyzes program outcomes. The report must be submitted by
210.16January 15, 2016.

210.17    Sec. 98. REVISOR'S INSTRUCTION.
210.18In Minnesota Statutes, the revisor of statutes shall change the term "location equity"
210.19to "local optional."

210.20    Sec. 99. REPEALER.
210.21Minnesota Statutes 2012, section 123B.71, subdivision 1, is repealed.

210.22ARTICLE 13

210.23FORECAST ADJUSTMENTS

210.24A. GENERAL EDUCATION

210.25    Section 1. Laws 2013, chapter 116, article 1, section 58, subdivision 3, is amended to
210.26read:
210.27    Subd. 3. Enrollment options transportation. For transportation of pupils attending
210.28postsecondary institutions under Minnesota Statutes, section 124D.09, or for transportation
210.29of pupils attending nonresident districts under Minnesota Statutes, section 124D.03:

211.1 211.2		$	44,000 37,000	.....	2014
211.3 211.4		$	48,000 40,000	.....	2015

211.5    Sec. 2. Laws 2013, chapter 116, article 1, section 58, subdivision 4, is amended to read:
211.6    Subd. 4. Abatement revenue. For abatement aid under Minnesota Statutes, section
211.7127A.49 :

211.8 211.9		$	2,747,000 2,876,000	.....	2014
211.10 211.11		$	3,136,000 3,103,000	.....	2015

211.12The 2014 appropriation includes $301,000 for 2013 and $2,446,000 $2,575,000
211.13 for 2014.
211.14The 2015 appropriation includes $385,000 $286,000 for 2014 and $2,751,000
211.15 $2,817,000 for 2015.

211.16    Sec. 3. Laws 2013, chapter 116, article 1, section 58, subdivision 5, is amended to read:
211.17    Subd. 5. Consolidation transition. For districts consolidating under Minnesota
211.18Statutes, section 123A.485:

211.19 211.20		$	472,000 585,000	.....	2014
211.21 211.22		$	480,000 254,000	.....	2015

211.23The 2014 appropriation includes $40,000 for 2013 and $432,000 $545,000 for 2014.
211.24The 2015 appropriation includes $68,000 $60,000 for 2014 and $412,000 $194,000
211.25 for 2015.

211.26    Sec. 4. Laws 2013, chapter 116, article 1, section 58, subdivision 6, is amended to read:
211.27    Subd. 6. Nonpublic pupil education aid. For nonpublic pupil education aid under
211.28Minnesota Statutes, sections 123B.40 to 123B.43 and 123B.87:

211.29 211.30		$	15,582,000 16,068,000	.....	2014
211.31 211.32		$	16,169,000 16,074,000	.....	2015

211.33The 2014 appropriation includes $2,099,000 for 2013 and $13,483,000 $13,969,000
211.34 for 2014.
211.35The 2015 appropriation includes $2,122,000 $1,552,000 for 2014 and $14,047,000
211.36 $14,522,000 for 2015.

212.1    Sec. 5. Laws 2013, chapter 116, article 1, section 58, subdivision 7, is amended to read:
212.2    Subd. 7. Nonpublic pupil transportation. For nonpublic pupil transportation aid
212.3under Minnesota Statutes, section 123B.92, subdivision 9:

212.4 212.5		$	18,565,000 18,566,000	.....	2014
212.6 212.7		$	18,946,000 17,646,000	.....	2015

212.8The 2014 appropriation includes $2,668,000 for 2013 and $15,897,000 $15,898,000
212.9 for 2014.
212.10The 2015 appropriation includes $2,502,000 $1,766,000 for 2014 and $16,444,000
212.11 $15,880,000 for 2015.

212.12    Sec. 6. Laws 2013, chapter 116, article 1, section 58, subdivision 11, is amended to read:
212.13    Subd. 11. Career and technical aid. For career and technical aid under Minnesota
212.14Statutes, section 124D.4531, subdivision 1b:

212.15 212.16		$	4,320,000 3,959,000	.....	2014
212.17 212.18		$	5,680,000 5,172,000	.....	2015

212.19The 2014 appropriation includes $0 for 2014 and $4,320,000 $3,959,000 for 2015.
212.20The 2015 appropriation includes $680,000 $439,000 for 2014 and $5,000,000
212.21 $4,733,000 for 2015.

212.22B. EDUCATION EXCELLENCE

212.23    Sec. 7. Laws 2013, chapter 116, article 3, section 37, subdivision 3, is amended to read:
212.24    Subd. 3. Achievement and integration aid. For achievement and integration aid
212.25under Minnesota Statutes, section 124D.862:

212.26 212.27		$	58,911,000 55,609,000	.....	2014
212.28 212.29		$	68,623,000 62,692,000	.....	2015

212.30The 2014 appropriation includes $0 for 2013 and $58,911,000 $55,609,000 for 2014.
212.31The 2015 appropriation includes $9,273,000 $6,178,000 for 2014 and $59,350,000
212.32 $56,514,000 for 2015.

212.33    Sec. 8. Laws 2013, chapter 116, article 3, section 37, subdivision 4, is amended to read:
212.34    Subd. 4. Literacy incentive aid. For literacy incentive aid under Minnesota
212.35Statutes, section 124D.98:

213.1 213.2		$	52,514,000 50,998,000	.....	2014
213.3 213.4		$	53,818,000 47,458,000	.....	2015

213.5The 2014 appropriation includes $6,607,000 for 2013 and $45,907,000 $44,391,000
213.6 for 2014.
213.7The 2015 appropriation includes $7,225,000 $4,932,000 for 2014 and $46,593,000
213.8 $42,526,000 for 2015.

213.9    Sec. 9. Laws 2013, chapter 116, article 3, section 37, subdivision 5, is amended to read:
213.10    Subd. 5. Interdistrict desegregation or integration transportation grants. For
213.11interdistrict desegregation or integration transportation grants under Minnesota Statutes,
213.12section 124D.87:

213.13 213.14		$	13,968,000 13,521,000	.....	2014
213.15 213.16		$	14,712,000 14,248,000	.....	2015

213.17    Sec. 10. Laws 2013, chapter 116, article 3, section 37, subdivision 6, is amended to read:
213.18    Subd. 6. Success for the future. For American Indian success for the future grants
213.19under Minnesota Statutes, section 124D.81:

213.20 213.21		$	2,137,000 2,214,000	.....	2014
213.22		$	2,137,000	.....	2015

213.23The 2014 appropriation includes $290,000 for 2013 and $1,847,000 $1,924,000
213.24 for 2014.
213.25The 2015 appropriation includes $290,000 $213,000 for 2014 and $1,847,000
213.26 $1,924,000 for 2015.

213.27    Sec. 11. Laws 2013, chapter 116, article 3, section 37, subdivision 8, is amended to read:
213.28    Subd. 8. Tribal contract schools. For tribal contract school aid under Minnesota
213.29Statutes, section 124D.83:

213.30 213.31		$	2,080,000 2,144,000	.....	2014
213.32 213.33		$	2,230,000 2,152,000	.....	2015

213.34The 2014 appropriation includes $266,000 for 2013 and $1,814,000 $1,878,000
213.35 for 2014.
214.1The 2015 appropriation includes $285,000 $208,000 for 2014 and $1,945,000
214.2 $1,944,000 for 2015.

214.3    Sec. 12. Laws 2013, chapter 116, article 3, section 37, subdivision 20, is amended to
214.4read:
214.5    Subd. 20. Alternative compensation. For alternative teacher compensation aid
214.6under Minnesota Statutes, section 122A.415, subdivision 4:

214.7 214.8

$

60,340,000 71,599,000

.....

2015

214.9The 2015 appropriation includes $0 for 2014 and $59,711,000 $71,599,000 for 2015.

214.10C. CHARTER SCHOOLS

214.11    Sec. 13. Laws 2013, chapter 116, article 4, section 9, subdivision 2, is amended to read:
214.12    Subd. 2. Charter school building lease aid. For building lease aid under Minnesota
214.13Statutes, section 124D.11, subdivision 4:

214.14 214.15		$	54,484,000 54,763,000	.....	2014
214.16 214.17		$	59,533,000 58,294,000	.....	2015

214.18The 2014 appropriation includes $6,819,000 for 2013 and $47,665,000 $47,944,000
214.19 for 2014.
214.20The 2015 appropriation includes $7,502,000 $5,327,000 for 2014 and $52,031,000
214.21 $52,967,000 for 2015.

214.22D. SPECIAL PROGRAMS

214.23    Sec. 14. Laws 2013, chapter 116, article 5, section 31, subdivision 2, is amended to read:
214.24    Subd. 2. Special education; regular. For special education aid under Minnesota
214.25Statutes, section 125A.75:

214.26 214.27		$	997,725,000 1,038,514,000	.....	2014
214.28 214.29		$	1,108,211,000 1,111,641,000	.....	2015

214.30The 2014 appropriation includes $118,232,000 for 2013 and $802,884,000
214.31 $920,282,000 for 2014.
214.32The 2015 appropriation includes $169,929,000 $129,549,000 for 2014 and
214.33$938,282,000 $982,092,000 for 2015.

215.1    Sec. 15. Laws 2013, chapter 116, article 5, section 31, subdivision 3, is amended to read:
215.2    Subd. 3. Aid for children with disabilities. For aid under Minnesota Statutes,
215.3section 125A.75, subdivision 3, for children with disabilities placed in residential facilities
215.4within the district boundaries for whom no district of residence can be determined:

215.5 215.6		$	1,655,000 1,548,000	.....	2014
215.7 215.8		$	1,752,000 1,674,000	.....	2015

215.9If the appropriation for either year is insufficient, the appropriation for the other
215.10year is available.

215.11    Sec. 16. Laws 2013, chapter 116, article 5, section 31, subdivision 4, is amended to read:
215.12    Subd. 4. Travel for home-based services. For aid for teacher travel for home-based
215.13services under Minnesota Statutes, section 125A.75, subdivision 1:

215.14 215.15		$	345,000 351,000	.....	2014
215.16 215.17		$	355,000 346,000	.....	2015

215.18The 2014 appropriation includes $45,000 for 2013 and $300,000 $306,000 for 2014.
215.19The 2015 appropriation includes $47,000 $33,000 for 2014 and $308,000 $313,000
215.20 for 2015.

215.21    Sec. 17. Laws 2013, chapter 116, article 5, section 31, subdivision 5, is amended to read:
215.22    Subd. 5. Special education; excess costs. For excess cost aid under Minnesota
215.23Statutes, section 125A.79, subdivision 7:

215.24 215.25

$

42,030,000 42,016,000

.....

2014

215.26The 2014 appropriation includes $42,030,000 $42,016,000 for 2013 and $0 for 2014.

215.27E. FACILITIES AND TECHNOLOGY

215.28    Sec. 18. Laws 2013, chapter 116, article 6, section 12, subdivision 2, is amended to read:
215.29    Subd. 2. Health and safety revenue. For health and safety aid according to
215.30Minnesota Statutes, section 123B.57, subdivision 5:

215.31 215.32		$	463,000 473,000	.....	2014
215.33 215.34		$	434,000 651,000	.....	2015

215.35The 2014 appropriation includes $26,000 for 2013 and $437,000 $447,000 for 2014.
216.1The 2015 appropriation includes $68,000 $49,000 for 2014 and $366,000 $602,000
216.2 for 2015.

216.3    Sec. 19. Laws 2013, chapter 116, article 6, section 12, subdivision 3, is amended to read:
216.4    Subd. 3. Debt service equalization. For debt service aid according to Minnesota
216.5Statutes, section 123B.53, subdivision 6:

216.6 216.7		$	19,083,000 19,778,000	.....	2014
216.8 216.9		$	25,060,000 22,591,000	.....	2015

216.10The 2014 appropriation includes $2,397,000 for 2013 and $16,686,000 $17,381,000
216.11 for 2014.
216.12The 2015 appropriation includes $2,626,000 $1,931,000 for 2014 and $22,434,000
216.13 $20,660,000 for 2015.

216.14    Sec. 20. Laws 2013, chapter 116, article 6, section 12, subdivision 4, is amended to read:
216.15    Subd. 4. Alternative facilities bonding aid. For alternative facilities bonding aid,
216.16according to Minnesota Statutes, section 123B.59, subdivision 1:

216.17 216.18		$	19,287,000 19,982,000	.....	2014
216.19		$	19,287,000	.....	2015

216.20The 2014 appropriation includes $2,623,000 for 2013 and $16,664,000 $17,359,000
216.21 for 2014.
216.22The 2015 appropriation includes $2,623,000 $1,928,000 for 2014 and $16,664,000
216.23 $17,359,000 for 2015.

216.24    Sec. 21. Laws 2013, chapter 116, article 6, section 12, subdivision 6, is amended to read:
216.25    Subd. 6. Deferred maintenance aid. For deferred maintenance aid, according to
216.26Minnesota Statutes, section 123B.591, subdivision 4:

216.27 216.28		$	3,564,000 3,858,000	.....	2014
216.29 216.30		$	3,730,000 4,024,000	.....	2015

216.31The 2014 appropriation includes $456,000 for 2013 and $3,108,000 $3,402,000
216.32 for 2014.
216.33The 2015 appropriation includes $489,000 $378,000 for 2014 and $3,241,000
216.34 $3,646,000 for 2015.

217.1F. NUTRITION AND LIBRARIES

217.2    Sec. 22. Laws 2013, chapter 116, article 7, section 21, subdivision 4, is amended to read:
217.3    Subd. 4. Kindergarten milk. For kindergarten milk aid under Minnesota Statutes,
217.4section 124D.118:

217.5 217.6		$	1,039,000 992,000	.....	2014
217.7 217.8		$	1,049,000 1,002,000	.....	2015

217.9    Sec. 23. Laws 2013, chapter 116, article 7, section 21, subdivision 6, is amended to read:
217.10    Subd. 6. Basic system support. For basic system support grants under Minnesota
217.11Statutes, section 134.355:

217.12 217.13		$	13,570,000 14,058,000	.....	2014
217.14 217.15		$	13,570,000 13,570,000	.....	2015

217.16The 2014 appropriation includes $1,845,000 for 2013 and $11,725,000 $12,213,000
217.17 for 2014.
217.18The 2015 appropriation includes $1,845,000 $1,357,000 for 2014 and $11,725,000
217.19 $12,213,000 for 2015.

217.20    Sec. 24. Laws 2013, chapter 116, article 7, section 21, subdivision 7, is amended to read:
217.21    Subd. 7. Multicounty, multitype library systems. For grants under Minnesota
217.22Statutes, sections 134.353 and 134.354, to multicounty, multitype library systems:

217.23 217.24		$	1,300,000 1,346,000	.....	2014
217.25		$	1,300,000	.....	2015

217.26The 2014 appropriation includes $176,000 for 2013 and $1,124,000 $1,170,000
217.27 for 2014.
217.28The 2015 appropriation includes $176,000 $130,000 for 2014 and $1,124,000
217.29 $1,170,000 for 2015.

217.30    Sec. 25. Laws 2013, chapter 116, article 7, section 21, subdivision 9, is amended to read:
217.31    Subd. 9. Regional library telecommunications aid. For regional library
217.32telecommunications aid under Minnesota Statutes, section 134.355:

218.1 218.2		$	2,300,000 2,382,000	.....	2014
218.3		$	2,300,000	.....	2015

218.4The 2014 appropriation includes $312,000 for 2013 and $1,988,000 $2,070,000
218.5 for 2014.
218.6The 2015 appropriation includes $312,000 $230,000 for 2014 and $1,988,000
218.7 $2,070,000 for 2015.

218.8G. EARLY CHILDHOOD EDUCATION, SELF-SUFFICIENCY,
218.9AND LIFELONG LEARNING

218.10    Sec. 26. Laws 2013, chapter 116, article 8, section 5, subdivision 4, is amended to read:
218.11    Subd. 4. Health and developmental screening aid. For health and developmental
218.12screening aid under Minnesota Statutes, sections 121A.17 and 121A.19:

218.13 218.14		$	3,421,000 3,527,000	.....	2014
218.15 218.16		$	3,344,000 3,330,000	.....	2015

218.17The 2014 appropriation includes $474,000 for 2013 and $2,947,000 $3,053,000
218.18 for 2014.
218.19The 2015 appropriation includes $463,000 $339,000 for 2014 and $2,881,000
218.20 $2,991,000 for 2015.

218.21    Sec. 27. Laws 2013, chapter 116, article 8, section 5, subdivision 10, is amended to read:
218.22    Subd. 10. Community education aid. For community education aid under
218.23Minnesota Statutes, section 124D.20:

218.24 218.25		$	935,000 955,000	.....	2014
218.26 218.27		$	1,056,000 1,060,000	.....	2015

218.28The 2014 appropriation includes $118,000 for 2013 and $817,000 $837,000 for 2014.
218.29The 2015 appropriation includes $128,000 $93,000 for 2014 and $928,000 $967,000
218.30 for 2015.

218.31    Sec. 28. Laws 2013, chapter 116, article 8, section 5, subdivision 11, is amended to read:
218.32    Subd. 11. Adults with disabilities program aid. For adults with disabilities
218.33programs under Minnesota Statutes, section 124D.56:

219.1 219.2		$	710,000 735,000	.....	2014
219.3		$	710,000	.....	2015

219.4The 2014 appropriation includes $96,000 for 2013 and $614,000 $639,000 for 2014.
219.5The 2015 appropriation includes $96,000 $71,000 for 2014 and $614,000 $639,000
219.6 for 2015.

219.7ARTICLE 14

219.8HEALTH AND HUMAN SERVICES APPROPRIATIONS

219.9

Section 1. HEALTH AND HUMAN SERVICES APPROPRIATIONS.

219.10The sums shown in the columns marked "Appropriations" are added to or, if shown
219.11in parentheses, subtracted from the appropriations in Laws 2013, chapter 108, articles 14
219.12and 15, to the agencies and for the purposes specified in this article. The appropriations
219.13are from the general fund and are available for the fiscal years indicated for each purpose.
219.14The figures "2014" and "2015" used in this article mean that the addition to or subtraction
219.15from the appropriation listed under them is available for the fiscal year ending June 30,
219.162014, or June 30, 2015, respectively. Supplemental appropriations and reductions to
219.17appropriations for the fiscal year ending June 30, 2014, are effective the day following
219.18final enactment unless a different effective date is explicit.

219.19				APPROPRIATIONS
219.20				Available for the Year
219.21				Ending June 30
219.22					2014		2015

219.23 219.24

Sec. 2. COMMISSIONER OF HUMAN SERVICES

219.25

Subdivision 1.Total Appropriation

(1,873,000)

93,149,000

219.26The appropriation modifications for
219.27each purpose are shown in the following
219.28subdivisions.

219.29	Appropriations by Fund
219.30		2014	2015
219.31	General	(1,873,000)	92,247,000
219.32	Federal TANF	-0-	902,000

219.33

Subd. 2.Central Office Operations

219.34

(a) Operations

-0-

99,000

220.1Base adjustment. The general fund base is
220.2increased by $222,000 in fiscal year 2016
220.3and decreased by $26,000 in fiscal year 2017.

220.4

(b) Health Care

-0-

113,000

220.5Base adjustment. The general fund base is
220.6increased by $112,000 in fiscal years 2016
220.7and 2017.

220.8

(c) Continuing Care

-0-

108,000

220.9Base adjustment. The general fund base is
220.10decreased by $83,000 in fiscal year 2016 and
220.11$108,000 in fiscal year 2017.

220.12

(d) Chemical and Mental Health

-0-

150,000

220.13$35,000 in fiscal year 2015 is to develop
220.14an online training program to promote
220.15better clarity and interpretation of the civil
220.16commitment laws for interested individuals
220.17and personnel, specifically county and
220.18hospital staff and mental health providers,
220.19to understand, clarify, and interpret the
220.20Civil Commitment Act under Minnesota
220.21Statutes, chapter 253B, as it pertains to
220.22persons with mental illnesses. The training
220.23must be developed in collaboration with
220.24the ombudsman for mental health and
220.25developmental disabilities, Minnesota
220.26County Attorneys Association, National
220.27Alliance on Mental Illness of Minnesota,
220.28Mental Health Consumer/Survivor Network
220.29of Minnesota, Mental Health Association,
220.30Minnesota Psychiatric Society, Hennepin
220.31Commitment Defense Panel, Minnesota
220.32Disability Law Center, Minnesota
220.33Association of Community Mental Health
220.34Programs, Minnesota Hospital Association,
221.1and Minnesota Board of Public Defense.
221.2This is a onetime appropriation.
221.3Base adjustment. The general fund base is
221.4decreased by $150,000 in fiscal years 2016
221.5and 2017.

221.6

Subd. 3.Forecasted Programs

221.7

(a) MFIP/DWP

221.8	Appropriations by Fund
221.9	General	-0-	122,000
221.10	Federal TANF	-0-	550,000

221.11

(b) General Assistance

-0-

21,000

221.12

(c) Group Residential Housing

-0-

681,000

221.13

(d) MinnesotaCare

-0-

-0-

221.14The forecast amounts in fiscal years 2016
221.15and 2017 for the low-income uninsured
221.16children's health program under Minnesota
221.17Statutes, section 256L.30, must be from the
221.18general fund.

221.19

(e) Medical Assistance

(1,858,000)

83,258,000

221.20

(f) Alternative Care

-0-

965,000

221.21

Subd. 4.Grant Programs

221.22

(a) Children's Services Grants

-0-

(3,000)

221.23Base adjustment. The general fund base is
221.24increased by $9,000 in fiscal year 2017.

221.25

(b) Child and Economic Support Grants

-0-

1,500,000

221.26$500,000 is for the safe harbor shelter and
221.27housing fund for housing and supportive
221.28services for youth who are sexually exploited.
221.29$1,000,000 is for purposes of the Homeless
221.30Youth Act under Minnesota Statutes, section
221.31256K.45. This appropriation is available
221.32until expended.

222.1

(c) Aging and Adult Services Grants

(15,000)

1,212,000

222.2$250,000 in fiscal year 2015 is for the
222.3Minnesota Board on Aging for congregate
222.4dining services under Minnesota Statutes,
222.5section 256.9752. This is a onetime
222.6appropriation and is available until expended.
222.7Base adjustment. The general fund base is
222.8decreased by $5,000 in fiscal year 2016 and
222.9increased by $8,000 in fiscal year 2017.

222.10

(d) Deaf and Hard-of-Hearing Grants

-0-

81,000

222.11Base adjustment. The general fund base is
222.12increased by $9,000 in fiscal years 2016 and
222.132017.

222.14

(e) Disabilities Grants

-0-

1,267,000

222.15Base adjustment. The general fund base is
222.16increased by $281,000 in fiscal year 2016
222.17and $292,000 in fiscal year 2017.

222.18

(f) Adult Mental Health Grants

-0-

1,000,000

222.19This appropriation is for intensive community
222.20rehabilitation services through April 30,
222.212016.
222.22Base adjustment. The general fund base is
222.23decreased by $247,000 in fiscal year 2016
222.24and $1,000,000 in fiscal year 2017.

222.25

Subd. 5.State-Operated Services

222.26

(a) SOS Mental Health

-0-

423,000

222.27Base adjustment. The general fund base is
222.28increased by $107,000 in fiscal years 2016
222.29and 2017.

222.30

(b) SOS Enterprise Services

-0-

-0-

222.31Community Addiction Recovery
222.32Enterprise deficiency funding.
223.1Notwithstanding Minnesota Statutes, section
223.2254B.06, subdivision 1, $4,000,000 is
223.3transferred in fiscal years 2014 and 2015 only
223.4from the consolidated chemical dependency
223.5treatment fund administrative account in the
223.6special revenue fund and deposited into the
223.7enterprise fund for the Community Addiction
223.8Recovery Enterprise. This paragraph is
223.9effective the day following final enactment.

223.10

Subd. 6.Sex Offender Program

-0-

1,250,000

223.11Court-ordered experts. $1,250,000 in
223.12fiscal year 2014 is for the commissioner to
223.13comply with the United States District Court
223.14order of February 20, 2014, in the matter of
223.15Karsjens et al. v. Jesson et al. For purposes
223.16of Minnesota Statutes, section 246B.10,
223.17activities funded by this appropriation are
223.18not considered part of the cost of care. This
223.19appropriation is onetime and is available
223.20until June 30, 2017. This paragraph expires
223.21June 30, 2017.
223.22Base adjustment. The general fund base is
223.23decreased by $1,250,000 in fiscal years 2016
223.24and 2017.

223.25

Subd. 7.Technical Activities

-0-

352,000

223.26This appropriation is from the federal TANF
223.27fund.
223.28Base adjustment. The federal TANF fund
223.29base is increased by $684,000 in fiscal year
223.302016 and $1,207,000 in fiscal year 2017.

223.31

Sec. 3. COMMISSIONER OF HEALTH.

223.32

Subdivision 1.Total Appropriation

$

767,000

$

3,757,000

223.33	Appropriations by Fund
223.34		2014	2015
224.1	General	950,000	4,035,000
224.2 224.3	State Government Special Revenue	817,000	722,000
224.4	Health Care Access	(1,000,000)	(1,000,000)

224.5

Subd. 2.Health Improvement

224.6	Appropriations by Fund
224.7	General	(25,000)	2,025,000
224.8 224.9	State Government Special Revenue	-0-	14,000

224.10$1,000,000 of the general fund appropriation
224.11is for grants for comprehensive services,
224.12including trauma-informed, culturally
224.13specific services, for youth who are sexually
224.14exploited. The commissioner may use up
224.15to 6.5 percent of these funds, not to exceed
224.16$100,000, for the administration of these
224.17grants.
224.18$100,000 of the general fund appropriation
224.19in fiscal year 2015 is for a grant to a
224.20Somali-based health care organization
224.21located in Minnesota. The grant must be
224.22used to address health inequities experienced
224.23by first generation Somali women by
224.24creating cultural awareness and education
224.25for health care professionals and the Somali
224.26community. The information developed
224.27must be culturally specific in order to
224.28improve Somali women's access to maternal
224.29health and preventive care; reduce infant
224.30mortality; and increase health literacy. The
224.31grant recipient must use community-based
224.32participatory research focusing on Somali
224.33women centered programs, and must develop
224.34a culturally appropriate methodology
224.35to measure program effectiveness in
224.36achieving better health outcomes for Somali
225.1women. The grant recipient must report
225.2the organization's outcomes in terms of
225.3developing best practices for providing
225.4culturally appropriate health care to the
225.5commissioner by September 1, 2016. This is
225.6a onetime appropriation.
225.7Healthy Housing Grants. (a) $100,000 of
225.8the general fund appropriation in fiscal year
225.92015 is for education and training grants
225.10under Minnesota Statutes, section 144.9513,
225.11subdivision 3.
225.12(b) $300,000 of the general fund
225.13appropriation in fiscal year 2015 is for
225.14healthy homes implementation grants under
225.15Minnesota Statutes, section 144.9513,
225.16subdivision 4.
225.17(c) $100,000 of the general fund
225.18appropriation in fiscal year 2015 is for
225.19lead poisoning prevention activities under
225.20Minnesota Statutes, sections 144.9501 to
225.21144.9512.
225.22(d) No more than one full-time employee
225.23may be hired to administer the grants under
225.24Minnesota Statutes, section 144.9513.
225.25Home Visiting Pilot Project for Highest
225.26Risk Families. $400,000 in fiscal year
225.272015 is for a pilot project to expand
225.28evidence-based high-quality home visiting,
225.29focusing on the youngest children living in
225.30the highest risk families receiving assistance
225.31through the Minnesota family investment
225.32program under Minnesota Statutes, chapter
225.33256J, in communities served by two
225.34counties, one county in the seven-county
225.35metropolitan area and one nonmetropolitan
226.1county. The commissioner of health shall
226.2consult with the commissioner of human
226.3services and the commissioner of education
226.4on the administration of the pilot program.
226.5The commissioner of health shall provide a
226.6formative evaluation of the pilot project to
226.7the chairs and ranking minority members of
226.8the legislative committees with jurisdiction
226.9over health and human services policy and
226.10finance by January 1, 2016. The evaluation
226.11must include the identification of populations
226.12being served, including geographic area, risk
226.13factors, and demographics; and strategies
226.14being used to coordinate health, social
226.15services, and other community resources.
226.16This is a onetime appropriation and is
226.17available until expended.
226.18Base Level Adjustment. The general fund
226.19base is decreased by $550,000 in fiscal year
226.202016 and $500,000 in fiscal year 2017. The
226.21state government special revenue fund base
226.22is decreased by $11,000 in fiscal years 2016
226.23and 2017.

226.24

Subd. 3.Policy Quality and Compliance

226.25	Appropriations by Fund
226.26	General	-0-	2,010,000
226.27 226.28	State Government Special Revenue	-0-	48,000
226.29	Health Care Access	(1,000,000)	(1,000,000)

226.30Health Care Grants for Uninsured
226.31Individuals. (a) $100,000 of the general
226.32fund appropriation in fiscal year 2015 is
226.33for dental provider grants in article 20,
226.34section 7, subdivision 1. This is a onetime
226.35appropriation and is available until expended.
227.1(b) $350,000 of the general fund
227.2appropriation in fiscal year 2015 is for
227.3community mental health program grants in
227.4article 20, section 7, subdivision 2. This is a
227.5onetime appropriation and is available until
227.6expended.
227.7(c) $1,200,000 of the general fund
227.8appropriation in fiscal year 2015 is for the
227.9emergency medical assistance outlier grant
227.10program in article 20, section 7, subdivision
227.113. This is a onetime appropriation and is
227.12available until expended.
227.13(d) $350,000 of the general fund
227.14appropriation in fiscal year 2015 is for
227.15community health center grants under
227.16Minnesota Statutes, section 145.9269. A
227.17community health center that receives a grant
227.18from this appropriation is not eligible for a
227.19grant under paragraph (b). This is a onetime
227.20appropriation and is available until expended.
227.21(e) The commissioner may use up to one
227.22percent of the appropriations for health care
227.23grants for uninsured individuals in fiscal year
227.242015 only for grant administration.
227.25Base level adjustment. The general fund
227.26base is decreased by $2,000,000 in fiscal
227.27years 2016 and 2017.

227.28

Subd. 4.Health Protection

817,000

648,000

227.29This appropriation is from the state
227.30government special revenue fund.

227.31

Subd. 5.Administrative Support Services

227.32	Appropriations by Fund
227.33	General	975,000	-0-
227.34 227.35	State Government Special Revenue	-0-	12,000

228.1Lawsuit settlement. The general fund
228.2appropriation in fiscal year 2014 is a onetime
228.3appropriation for the cost of settling the
228.4lawsuit Bearder v. State of Minnesota.
228.5Base adjustment. The state government
228.6special revenue fund base is increased by
228.7$19,000 in fiscal years 2016 and 2017.

228.8 228.9 228.10

Sec. 4. OMBUDSMAN FOR MENTAL HEALTH AND DEVELOPMENTAL DISABILITIES.

$

-0-

$

150,000

228.11    Sec. 5. Laws 2013, chapter 1, section 6, as amended by Laws 2013, chapter 108,
228.12article 6, section 32, is amended to read:
228.13    Sec. 6. TRANSFER.
228.14(a) The commissioner of management and budget shall transfer from the health care
228.15access fund to the general fund up to $21,319,000 in fiscal year 2014; up to $42,314,000
228.16in fiscal year 2015; up to $56,147,000 in fiscal year 2016; and up to $64,683,000 in fiscal
228.17year 2017.
228.18(b) The commissioner of human services shall determine the difference between the
228.19actual or forecasted cost to the medical assistance program of adding 19- and 20-year-olds
228.20and parents and relative caretaker populations with income between 100 and 138 percent of
228.21the federal poverty guidelines and the cost of adding those populations that was estimated
228.22during the 2013 legislative session based on the data from the February 2013 forecast.
228.23(c) For each fiscal year from 2014 to 2017, the commissioner of human services shall
228.24certify and report to the commissioner of management and budget the actual or forecasted
228.25 estimated cost difference of adding 19- and 20-year-olds and parents and relative caretaker
228.26populations with income between 100 and 138 percent of the federal poverty guidelines,
228.27as determined under paragraph (b), to the commissioner of management and budget at
228.28least four weeks prior to the release of a forecast under Minnesota Statutes, section
228.2916A.103 , of each fiscal year.
228.30(d) No later than three weeks before the release of the forecast For fiscal years 2014 to
228.312017, forecasts under Minnesota Statutes, section 16A.103, prepared by the commissioner
228.32of management and budget shall reduce the include actual or estimated adjustments to
228.33health care access fund transfer transfers in paragraph (a), by the cumulative differences in
228.34costs reported by the commissioner of human services under according to paragraph (c)
228.35 (e). If, for any fiscal year, the amount of the cumulative cost differences determined under
229.1paragraph (b) is positive, no change is made to the appropriation. If, for any fiscal year,
229.2the amount of the cumulative cost differences determined under paragraph (b) is less than
229.3the amount of the original appropriation, the appropriation for that year must be zero.
229.4(e) For each fiscal year from 2014 to 2017, the commissioner of management and
229.5budget must adjust the transfer amounts in paragraph (a) by the cumulative difference in
229.6costs reported by the commissioner of human services under paragraph (c). If, for any
229.7fiscal year, the amount of the cumulative difference in costs reported under paragraph (c)
229.8is positive, no adjustment shall be made.
229.9EFFECTIVE DATE.This section is effective retroactively from July 1, 2013.

229.10    Sec. 6. Laws 2013, chapter 108, article 14, section 2, subdivision 3, is amended to read:

229.11 229.12

Subd. 3.TANF Transfer to Federal Child Care and Development Fund

229.13(a) The following TANF fund amounts
229.14are appropriated to the commissioner for
229.15purposes of MFIP/transition year child care
229.16assistance under Minnesota Statutes, section
229.17119B.05 :
229.18(1) fiscal year 2014; $14,020,000; and
229.19(2) fiscal year 2015, $14,020,000;
229.20$14,372,000;
229.21(3) fiscal year 2016; $1,378,000; and
229.22(4) fiscal year 2017; $3,378,000.
229.23(b) The commissioner shall authorize the
229.24transfer of sufficient TANF funds to the
229.25federal child care and development fund to
229.26meet this appropriation and shall ensure that
229.27all transferred funds are expended according
229.28to federal child care and development fund
229.29regulations.

229.30    Sec. 7. Laws 2013, chapter 108, article 14, section 2, subdivision 5, is amended to read:

229.31

Subd. 5.Forecasted Programs

230.1The amounts that may be spent from this
230.2appropriation for each purpose are as follows:

230.3

(a) MFIP/DWP

230.4	Appropriations by Fund
230.5	General	72,583,000	76,927,000
230.6	Federal TANF	80,342,000	76,851,000

230.7

(b) MFIP Child Care Assistance

61,701,000

69,294,000

230.8

(c) General Assistance

54,787,000

56,068,000

230.9General Assistance Standard. The
230.10commissioner shall set the monthly standard
230.11of assistance for general assistance units
230.12consisting of an adult recipient who is
230.13childless and unmarried or living apart
230.14from parents or a legal guardian at $203.
230.15The commissioner may reduce this amount
230.16according to Laws 1997, chapter 85, article
230.173, section 54.
230.18Emergency General Assistance. The
230.19amount appropriated for emergency general
230.20assistance funds is limited to no more
230.21than $6,729,812 in fiscal year 2014 and
230.22$6,729,812 in fiscal year 2015. Funds
230.23to counties shall be allocated by the
230.24commissioner using the allocation method in
230.25Minnesota Statutes, section 256D.06.

230.26

(d) MN Supplemental Assistance

38,646,000

39,821,000

230.27

(e) Group Residential Housing

141,138,000

150,988,000

230.28

(f) MinnesotaCare

297,707,000

247,284,000

230.29This appropriation is from the health care
230.30access fund.

230.31

(g) Medical Assistance

231.1	Appropriations by Fund
231.2	General	4,443,768,000	4,431,612,000
231.3	Health Care Access	179,550,000	226,081,000

231.4Spending to be apportioned. The
231.5commissioner shall apportion expenditures
231.6under this paragraph consistent with the
231.7requirements of section 12.
231.8Support Services for Deaf and
231.9Hard-of-Hearing. $121,000 in fiscal
231.10year 2014 and $141,000 in fiscal year 2015;
231.11and $10,000 in fiscal year 2014 and $13,000
231.12in fiscal year 2015 are from the health care
231.13access fund for the hospital reimbursement
231.14increase in Minnesota Statutes, section
231.15256.969, subdivision 29 , paragraph (b).
231.16Disproportionate Share Payments.
231.17Effective for services provided on or after
231.18July 1, 2011, through June 30, 2015, the
231.19commissioner of human services shall
231.20deposit, in the health care access fund,
231.21additional federal matching funds received
231.22under Minnesota Statutes, section 256B.199,
231.23paragraph (e), as disproportionate share
231.24hospital payments for inpatient hospital
231.25services provided under MinnesotaCare to
231.26lawfully present noncitizens who are not
231.27eligible for MinnesotaCare with federal
231.28financial participation due to immigration
231.29status. The amount deposited shall not exceed
231.30$2,200,000 for the time period specified.
231.31Funding for Services Provided to EMA
231.32Recipients. $2,200,000 in fiscal year 2014 is
231.33from the health care access fund to provide
231.34services to emergency medical assistance
231.35recipients under Minnesota Statutes, section
232.1256B.06, subdivision 4 , paragraph (l). This
232.2is a onetime appropriation and is available in
232.3either year of the biennium.
232.4Base level adjustment. For fiscal years 2016
232.5and 2017 only, the health care access fund
232.6base for medical assistance is $221,035,000
232.7in fiscal year 2016 and $221,035,000 in fiscal
232.8year 2017.

232.9

(h) Alternative Care

50,776,000

54,922,000

232.10Alternative Care Transfer. Any money
232.11allocated to the alternative care program that
232.12is not spent for the purposes indicated does
232.13not cancel but shall be transferred to the
232.14medical assistance account.

232.15

(i) CD Treatment Fund

81,440,000

74,875,000

232.16Balance Transfer. The commissioner must
232.17transfer $18,188,000 from the consolidated
232.18chemical dependency treatment fund to the
232.19general fund by September 30, 2013.

232.20    Sec. 8. Laws 2013, chapter 108, article 14, section 2, subdivision 6, as amended by
232.21Laws 2013, chapter 144, section 25, is amended to read:

232.22

Subd. 6.Grant Programs

232.23The amounts that may be spent from this
232.24appropriation for each purpose are as follows:

232.25

(a) Support Services Grants

232.26	Appropriations by Fund
232.27	General	8,915,000	13,333,000
232.28	Federal TANF	94,611,000	94,611,000

232.29Paid Work Experience. $2,168,000
232.30each year in fiscal years 2015 and 2016
232.31is from the general fund for paid work
232.32experience for long-term MFIP recipients.
232.33Paid work includes full and partial wage
233.1subsidies and other related services such as
233.2job development, marketing, preworksite
233.3training, job coaching, and postplacement
233.4services. These are onetime appropriations.
233.5Unexpended funds for fiscal year 2015 do not
233.6cancel, but are available to the commissioner
233.7for this purpose in fiscal year 2016.
233.8Work Study Funding for MFIP
233.9Participants. $250,000 each year in fiscal
233.10years 2015 and 2016 is from the general fund
233.11to pilot work study jobs for MFIP recipients
233.12in approved postsecondary education
233.13programs. This is a onetime appropriation.
233.14Unexpended funds for fiscal year 2015 do
233.15not cancel, but are available for this purpose
233.16in fiscal year 2016.
233.17Local Strategies to Reduce Disparities.
233.18$2,000,000 each year in fiscal years 2015
233.19and 2016 is from the general fund for
233.20local projects that focus on services for
233.21subgroups within the MFIP caseload
233.22who are experiencing poor employment
233.23outcomes. These are onetime appropriations.
233.24Unexpended funds for fiscal year 2015 do not
233.25cancel, but are available to the commissioner
233.26for this purpose in fiscal year 2016.
233.27Home Visiting Collaborations for MFIP
233.28Teen Parents. $200,000 per year in fiscal
233.29years 2014 and 2015 is from the general fund
233.30and $200,000 in fiscal year 2016 is from the
233.31federal TANF fund for technical assistance
233.32and training to support local collaborations
233.33that provide home visiting services for
233.34MFIP teen parents. The general fund
234.1appropriation is onetime. The federal TANF
234.2fund appropriation is added to the base.
234.3Performance Bonus Funds for Counties.
234.4The TANF fund base is increased by
234.5$1,500,000 each year in fiscal years 2016
234.6and 2017. The commissioner must allocate
234.7this amount each year to counties that exceed
234.8their expected range of performance on the
234.9annualized three-year self-support index
234.10as defined in Minnesota Statutes, section
234.11256J.751, subdivision 2 , clause (6). This is a
234.12permanent base adjustment. Notwithstanding
234.13any contrary provisions in this article, this
234.14provision expires June 30, 2016.
234.15Base Adjustment. The general fund base is
234.16decreased by $200,000 in fiscal year 2016
234.17and $4,618,000 in fiscal year 2017. The
234.18TANF fund base is increased by $1,700,000
234.19in fiscal years 2016 and 2017.

234.20 234.21

(b) Basic Sliding Fee Child Care Assistance Grants

36,836,000

42,318,000

234.22Base Adjustment. The general fund base is
234.23increased by $3,778,000 in fiscal year 2016
234.24and by $3,849,000 in fiscal year 2017.

234.25

(c) Child Care Development Grants

1,612,000

1,737,000

234.26

(d) Child Support Enforcement Grants

50,000

50,000

234.27Federal Child Support Demonstration
234.28Grants. Federal administrative
234.29reimbursement resulting from the federal
234.30child support grant expenditures authorized
234.31under United States Code, title 42, section
234.321315, is appropriated to the commissioner
234.33for this activity.

234.34

(e) Children's Services Grants

235.1	Appropriations by Fund
235.2	General	49,760,000	52,961,000
235.3	Federal TANF	140,000	140,000

235.4Adoption Assistance and Relative Custody
235.5Assistance. $37,453,000 $36,456,000
235.6 in fiscal year 2014 and $37,453,000
235.7 $36,855,000 in fiscal year 2015 is for the
235.8adoption assistance and relative custody
235.9assistance programs. The commissioner
235.10shall determine with the commissioner of
235.11Minnesota Management and Budget the
235.12appropriation for Northstar Care for Children
235.13effective January 1, 2015. The commissioner
235.14may transfer appropriations for adoption
235.15assistance, relative custody assistance, and
235.16Northstar Care for Children between fiscal
235.17years and among programs to adjust for
235.18transfers across the programs.
235.19Title IV-E Adoption Assistance. Additional
235.20federal reimbursements to the state as a result
235.21of the Fostering Connections to Success
235.22and Increasing Adoptions Act's expanded
235.23eligibility for Title IV-E adoption assistance
235.24are appropriated for postadoption services,
235.25including a parent-to-parent support network.
235.26Privatized Adoption Grants. Federal
235.27reimbursement for privatized adoption grant
235.28and foster care recruitment grant expenditures
235.29is appropriated to the commissioner for
235.30adoption grants and foster care and adoption
235.31administrative purposes.
235.32Adoption Assistance Incentive Grants.
235.33Federal funds available during fiscal years
235.342014 and 2015 for adoption incentive grants
236.1are appropriated for postadoption services,
236.2including a parent-to-parent support network.
236.3Base Adjustment. The general fund base is
236.4increased by $5,913,000 in fiscal year 2016
236.5and by $10,297,000 in fiscal year 2017.

236.6

(f) Child and Community Service Grants

53,301,000

53,301,000

236.7

(g) Child and Economic Support Grants

21,047,000

20,848,000

236.8Minnesota Food Assistance Program.
236.9Unexpended funds for the Minnesota food
236.10assistance program for fiscal year 2014 do
236.11not cancel but are available for this purpose
236.12in fiscal year 2015.
236.13Transitional Housing. $250,000 each year
236.14is for the transitional housing programs under
236.15Minnesota Statutes, section 256E.33.
236.16Emergency Services. $250,000 each year
236.17is for emergency services grants under
236.18Minnesota Statutes, section 256E.36.
236.19Family Assets for Independence. $250,000
236.20each year is for the Family Assets for
236.21Independence Minnesota program. This
236.22appropriation is available in either year of the
236.23biennium and may be transferred between
236.24fiscal years.
236.25Food Shelf Programs. $375,000 in fiscal
236.26year 2014 and $375,000 in fiscal year
236.272015 are for food shelf programs under
236.28Minnesota Statutes, section 256E.34. If the
236.29appropriation for either year is insufficient,
236.30the appropriation for the other year is
236.31available for it. Notwithstanding Minnesota
236.32Statutes, section 256E.34, subdivision 4, no
236.33portion of this appropriation may be used
236.34by Hunger Solutions for its administrative
237.1expenses, including but not limited to rent
237.2and salaries.
237.3Homeless Youth Act. $2,000,000 in fiscal
237.4year 2014 and $2,000,000 in fiscal year 2015
237.5is for purposes of Minnesota Statutes, section
237.6256K.45 .
237.7Safe Harbor Shelter and Housing.
237.8$500,000 in fiscal year 2014 and $500,000 in
237.9fiscal year 2015 is for a safe harbor shelter
237.10and housing fund for housing and supportive
237.11services for youth who are sexually exploited.
237.12High-risk adults. $200,000 in fiscal
237.13year 2014 is for a grant to the nonprofit
237.14organization selected to administer the
237.15demonstration project for high-risk adults
237.16under Laws 2007, chapter 54, article 1,
237.17section 19, in order to complete the project.
237.18This is a onetime appropriation.

237.19

(h) Health Care Grants

237.20	Appropriations by Fund
237.21	General	190,000	190,000
237.22	Health Care Access	190,000	190,000

237.23Emergency Medical Assistance Referral
237.24and Assistance Grants. (a) The
237.25commissioner of human services shall
237.26award grants to nonprofit programs that
237.27provide immigration legal services based
237.28on indigency to provide legal services for
237.29immigration assistance to individuals with
237.30emergency medical conditions or complex
237.31and chronic health conditions who are not
237.32currently eligible for medical assistance
237.33or other public health care programs, but
237.34who may meet eligibility requirements with
237.35immigration assistance.
238.1(b) The grantees, in collaboration with
238.2hospitals and safety net providers, shall
238.3provide referral assistance to connect
238.4individuals identified in paragraph (a) with
238.5alternative resources and services to assist in
238.6meeting their health care needs. $100,000
238.7is appropriated in fiscal year 2014 and
238.8$100,000 in fiscal year 2015. This is a
238.9onetime appropriation.
238.10Base Adjustment. The general fund is
238.11decreased by $100,000 in fiscal year 2016
238.12and $100,000 in fiscal year 2017.

238.13

(i) Aging and Adult Services Grants

14,827,000

15,010,000

238.14Base Adjustment. The general fund is
238.15increased by $1,150,000 in fiscal year 2016
238.16and $1,151,000 in fiscal year 2017.
238.17Community Service Development
238.18Grants and Community Services Grants.
238.19Community service development grants and
238.20community services grants are reduced by
238.21$1,150,000 each year. This is a onetime
238.22reduction.

238.23

(j) Deaf and Hard-of-Hearing Grants

1,771,000

1,785,000

238.24

(k) Disabilities Grants

18,605,000

18,823,000

238.25Advocating Change Together. $310,000 in
238.26fiscal year 2014 is for a grant to Advocating
238.27Change Together (ACT) to maintain and
238.28promote services for persons with intellectual
238.29and developmental disabilities throughout
238.30the state. This appropriation is onetime. Of
238.31this appropriation:
238.32(1) $120,000 is for direct costs associated
238.33with the delivery and evaluation of
238.34peer-to-peer training programs administered
239.1throughout the state, focusing on education,
239.2employment, housing, transportation, and
239.3voting;
239.4(2) $100,000 is for delivery of statewide
239.5conferences focusing on leadership and
239.6skill development within the disability
239.7community; and
239.8(3) $90,000 is for administrative and general
239.9operating costs associated with managing
239.10or maintaining facilities, program delivery,
239.11staff, and technology.
239.12Base Adjustment. The general fund base
239.13is increased by $535,000 in fiscal year 2016
239.14and by $709,000 in fiscal year 2017.

239.15

(l) Adult Mental Health Grants

239.16	Appropriations by Fund
239.17	General	71,199,000	69,530,000
239.18	Health Care Access	750,000	750,000
239.19	Lottery Prize	1,733,000	1,733,000

239.20Compulsive Gambling Treatment. Of the
239.21general fund appropriation, $602,000 in
239.22fiscal year 2014 and $747,000 in fiscal year
239.232015 are for compulsive gambling treatment
239.24under Minnesota Statutes, section 297E.02,
239.25subdivision 3 , paragraph (c).
239.26Problem Gambling. $225,000 in fiscal year
239.272014 and $225,000 in fiscal year 2015 is
239.28appropriated from the lottery prize fund for a
239.29grant to the state affiliate recognized by the
239.30National Council on Problem Gambling. The
239.31affiliate must provide services to increase
239.32public awareness of problem gambling,
239.33education and training for individuals and
239.34organizations providing effective treatment
239.35services to problem gamblers and their
240.1families, and research relating to problem
240.2gambling.
240.3Funding Usage. Up to 75 percent of a fiscal
240.4year's appropriations for adult mental health
240.5grants may be used to fund allocations in that
240.6portion of the fiscal year ending December
240.731.
240.8Base Adjustment. The general fund base is
240.9decreased by $4,427,000 in fiscal years 2016
240.10and 2017.
240.11Mental Health Pilot Project. $230,000
240.12each year is for a grant to the Zumbro
240.13Valley Mental Health Center. The grant
240.14shall be used to implement a pilot project
240.15to test an integrated behavioral health care
240.16coordination model. The grant recipient must
240.17report measurable outcomes and savings
240.18to the commissioner of human services
240.19by January 15, 2016. This is a onetime
240.20appropriation.
240.21High-risk adults. $200,000 in fiscal
240.22year 2014 is for a grant to the nonprofit
240.23organization selected to administer the
240.24demonstration project for high-risk adults
240.25under Laws 2007, chapter 54, article 1,
240.26section 19, in order to complete the project.
240.27This is a onetime appropriation.

240.28

(m) Child Mental Health Grants

18,246,000

20,636,000

240.29Text Message Suicide Prevention
240.30Program. $625,000 in fiscal year 2014 and
240.31$625,000 in fiscal year 2015 is for a grant
240.32to a nonprofit organization to establish and
240.33implement a statewide text message suicide
240.34prevention program. The program shall
240.35implement a suicide prevention counseling
241.1text line designed to use text messaging to
241.2connect with crisis counselors and to obtain
241.3emergency information and referrals to
241.4local resources in the local community. The
241.5program shall include training within schools
241.6and communities to encourage the use of the
241.7program.
241.8Mental Health First Aid Training. $22,000
241.9in fiscal year 2014 and $23,000 in fiscal
241.10year 2015 is to train teachers, social service
241.11personnel, law enforcement, and others who
241.12come into contact with children with mental
241.13illnesses, in children and adolescents mental
241.14health first aid training.
241.15Funding Usage. Up to 75 percent of a fiscal
241.16year's appropriation for child mental health
241.17grants may be used to fund allocations in that
241.18portion of the fiscal year ending December
241.1931.

241.20

(n) CD Treatment Support Grants

1,816,000

1,816,000

241.21SBIRT Training. (1) $300,000 each year is
241.22for grants to train primary care clinicians to
241.23provide substance abuse brief intervention
241.24and referral to treatment (SBIRT). This is a
241.25onetime appropriation. The commissioner of
241.26human services shall apply to SAMHSA for
241.27an SBIRT professional training grant.
241.28(2) If the commissioner of human services
241.29receives a grant under clause (1) funds
241.30appropriated under this clause, equal to
241.31the grant amount, up to the available
241.32appropriation, shall be transferred to the
241.33Minnesota Organization on Fetal Alcohol
241.34Syndrome (MOFAS). MOFAS must use
241.35the funds for grants. Grant recipients must
242.1be selected from communities that are
242.2not currently served by federal Substance
242.3Abuse Prevention and Treatment Block
242.4Grant funds. Grant money must be used to
242.5reduce the rates of fetal alcohol syndrome
242.6and fetal alcohol effects, and the number of
242.7drug-exposed infants. Grant money may be
242.8used for prevention and intervention services
242.9and programs, including, but not limited to,
242.10community grants, professional eduction,
242.11public awareness, and diagnosis.
242.12Fetal Alcohol Syndrome Grant. $180,000
242.13each year from the general fund is for a
242.14grant to the Minnesota Organization on Fetal
242.15Alcohol Syndrome (MOFAS) to support
242.16nonprofit Fetal Alcohol Spectrum Disorders
242.17(FASD) outreach prevention programs
242.18in Olmsted County. This is a onetime
242.19appropriation.
242.20Base Adjustment. The general fund base is
242.21decreased by $480,000 in fiscal year 2016
242.22and $480,000 in fiscal year 2017.
242.23EFFECTIVE DATE.This section is effective retroactively from July 1, 2013.

242.24    Sec. 9. Laws 2013, chapter 108, article 14, section 3, subdivision 1, is amended to read:

242.25 242.26

Subdivision 1.Total Appropriation

$

169,326,000 169,026,000

$

165,531,000 165,231,000

242.27	Appropriations by Fund
242.28		2014	2015
242.29	General	79,476,000	74,256,000
242.30 242.31	State Government Special Revenue	48,094,000	50,119,000
242.32	Health Care Access	29,743,000	29,143,000
242.33	Federal TANF	11,713,000	11,713,000
242.34	Special Revenue	300,000	300,000

243.1The amounts that may be spent for each
243.2purpose are specified in the following
243.3subdivisions.

243.4    Sec. 10. Laws 2013, chapter 108, article 14, section 3, subdivision 4, is amended to read:

243.5

Subd. 4.Health Protection

243.6	Appropriations by Fund
243.7	General	9,201,000	9,201,000
243.8 243.9	State Government Special Revenue	32,633,000	32,636,000
243.10	Special Revenue	300,000	300,000

243.11Infectious Disease Laboratory. Of the
243.12general fund appropriation, $200,000 in
243.13fiscal year 2014 and $200,000 in fiscal year
243.142015 are to monitor infectious disease trends
243.15and investigate infectious disease outbreaks.
243.16Surveillance for Elevated Blood Lead
243.17Levels. Of the general fund appropriation,
243.18$100,000 in fiscal year 2014 and $100,000
243.19in fiscal year 2015 are for the blood lead
243.20surveillance system under Minnesota
243.21Statutes, section 144.9502.
243.22Base Level Adjustment. The state
243.23government special revenue base is increased
243.24by $6,000 in fiscal year 2016 and by $13,000
243.25in fiscal year 2017.

243.26    Sec. 11. Laws 2013, chapter 108, article 14, section 4, subdivision 8, is amended to read:

243.27 243.28

Subd. 8.Board of Nursing Home Administrators

3,742,000

2,252,000

243.29Administrative Services Unit - Operating
243.30Costs. Of this appropriation, $676,000
243.31in fiscal year 2014 and $626,000 in
243.32fiscal year 2015 are for operating costs
243.33of the administrative services unit. The
243.34administrative services unit may receive
244.1and expend reimbursements for services
244.2performed by other agencies.
244.3Administrative Services Unit - Volunteer
244.4Health Care Provider Program. Of this
244.5appropriation, $150,000 in fiscal year 2014
244.6and $150,000 in fiscal year 2015 are to pay
244.7for medical professional liability coverage
244.8required under Minnesota Statutes, section
244.9214.40 .
244.10Administrative Services Unit - Contested
244.11Cases and Other Legal Proceedings. Of
244.12this appropriation, $200,000 in fiscal year
244.132014 and $200,000 in fiscal year 2015 are
244.14for costs of contested case hearings and other
244.15unanticipated costs of legal proceedings
244.16involving health-related boards funded
244.17under this section. Upon certification of a
244.18health-related board to the administrative
244.19services unit that the costs will be incurred
244.20and that there is insufficient money available
244.21to pay for the costs out of money currently
244.22available to that board, the administrative
244.23services unit is authorized to transfer money
244.24from this appropriation to the board for
244.25payment of those costs with the approval
244.26of the commissioner of management and
244.27budget. This appropriation does not cancel
244.28and is available until expended.
244.29This appropriation includes $44,000 in
244.30fiscal year 2014 for rulemaking. This is
244.31a onetime appropriation. $1,441,000 in
244.32fiscal year 2014 and $420,000 in fiscal year
244.332015 are for the development of a shared
244.34disciplinary, regulatory, licensing, and
244.35information management system. $391,000
245.1in fiscal year 2014 is a onetime appropriation
245.2for retirement costs in the health-related
245.3boards. This funding may be transferred to
245.4the health boards incurring retirement costs.
245.5These funds are available either year of the
245.6biennium.
245.7This appropriation includes $16,000 in fiscal
245.8years 2014 and 2015 for evening security,
245.9$2,000 in fiscal years 2014 and 2015 for a
245.10state vehicle lease, and $18,000 in fiscal
245.11years 2014 and 2015 for shared office space
245.12and administrative support. $205,000 in
245.13fiscal year 2014 and $221,000 in fiscal year
245.142015 are for shared information technology
245.15services, equipment, and maintenance.
245.16The remaining balance of the state
245.17government special revenue fund
245.18appropriation in Laws 2011, First Special
245.19Session chapter 9, article 10, section 8,
245.20subdivision 8, for Board of Nursing Home
245.21Administrators rulemaking, estimated to
245.22be $44,000, is canceled, and the remaining
245.23balance of the state government special
245.24revenue fund appropriation in Laws 2011,
245.25First Special Session chapter 9, article 10,
245.26section 8, subdivision 8, for electronic
245.27licensing system adaptors, estimated to be
245.28$761,000, and for the development and
245.29implementation of a disciplinary, regulatory,
245.30licensing, and information management
245.31system, estimated to be $1,100,000, are
245.32canceled. This paragraph is effective the day
245.33following final enactment.
245.34Base Adjustment. The base is decreased by
245.35$370,000 in fiscal years 2016 and 2017.
246.1EFFECTIVE DATE.This section is effective retroactively from July 1, 2013.

246.2    Sec. 12. Laws 2013, chapter 108, article 14, section 12, is amended to read:
246.3    Sec. 12. APPROPRIATION ADJUSTMENTS.
246.4(a) The general fund appropriation in section 2, subdivision 5, paragraph (g),
246.5includes up to $53,391,000 in fiscal year 2014; $216,637,000 in fiscal year 2015;
246.6$261,660,000 in fiscal year 2016; and $279,984,000 in fiscal year 2017, for medical
246.7assistance eligibility and administration changes related to:
246.8(1) eligibility for children age two to 18 with income up to 275 percent of the federal
246.9poverty guidelines;
246.10(2) eligibility for pregnant women with income up to 275 percent of the federal
246.11poverty guidelines;
246.12(3) Affordable Care Act enrollment and renewal processes, including elimination
246.13of six-month renewals, ex parte eligibility reviews, preprinted renewal forms, changes
246.14in verification requirements, and other changes in the eligibility determination and
246.15enrollment and renewal process;
246.16(4) automatic eligibility for children who turn 18 in foster care until they reach age 26;
246.17(5) eligibility related to spousal impoverishment provisions for waiver recipients; and
246.18(6) presumptive eligibility determinations by hospitals.
246.19(b) the commissioner of human services shall determine the difference between the
246.20actual or forecasted estimated costs to the medical assistance program attributable to
246.21the program changes in paragraph (a), clauses (1) to (6), and the costs of paragraph (a),
246.22clauses (1) to (6), that were estimated during the 2013 legislative session based on data
246.23from the 2013 February forecast. The costs in this paragraph must be calculated between
246.24January 1, 2014, and June 30, 2017.
246.25(c) For each fiscal year from 2014 to 2017, the commissioner of human services
246.26shall certify the actual or forecasted estimated cost differences to the medical assistance
246.27program determined under paragraph (b), and report the difference in costs to the
246.28commissioner of management and budget at least four weeks prior to a forecast under
246.29Minnesota Statutes, section 16A.103. No later than three weeks before the release of
246.30the forecast For fiscal years 2014 to 2017, forecasts under Minnesota Statutes, section
246.3116A.103 , prepared by the commissioner of management and budget shall reduce include
246.32actual or estimated adjustments to the health care access fund appropriation in section
246.332, subdivision 5, paragraph (g), by the cumulative difference in costs determined in
246.34 according to paragraph (b) (d). If for any fiscal year, the amount of the cumulative cost
246.35differences determined under paragraph (b) is positive, no adjustment shall be made to the
247.1health care access fund appropriation. If for any fiscal year, the amount of the cumulative
247.2cost differences determined under paragraph (b) is less than the original appropriation, the
247.3appropriation for that fiscal year is zero.
247.4(d) For each fiscal year from 2014 to 2017, the commissioner of management and
247.5budget must adjust the health care access fund appropriation by the cumulative difference
247.6in costs reported by the commissioner of human services under paragraph (b). If, for any
247.7fiscal year, the amount of the cumulative difference in costs determined under paragraph
247.8(b) is positive, no adjustment shall be made to the health care access fund appropriation.
247.9(e) This section expires on January 1, 2018.
247.10EFFECTIVE DATE.This section is effective retroactively from July 1, 2013.

247.11    Sec. 13. DEDICATED FUNDS REPORT.
247.12By October 1, 2014, and with each February forecast thereafter, the commissioner of
247.13human services must provide to the chairs and ranking minority members of the house of
247.14representatives and senate committees with jurisdiction over health and human services
247.15finance a report of all dedicated funds and accounts. The report must include the name
247.16of the dedicated fund or account; a description of its purpose, and the legal citation for
247.17its creation; the beginning balance, projected receipts, and expenditures; and the ending
247.18balance for each fund and account.

247.19    Sec. 14. EXPIRATION OF UNCODIFIED LANGUAGE.
247.20All uncodified language in this article expires on June 30, 2015, unless a different
247.21expiration date is specified.

247.22ARTICLE 15

247.23CHEMICAL AND MENTAL HEALTH

247.24    Section 1. Minnesota Statutes 2012, section 245.466, is amended by adding a
247.25subdivision to read:
247.26    Subd. 3a. Transition plan related to termination of contract. Counties must
247.27prepare a transition plan that provides for continuity of care in the event of contract
247.28termination with a community mental health center under section 245.715, or a community
247.29support services program under section 245.462, subdivision 6. The county shall provide
247.30at least 90 days' notice of the termination to the contracted agency and the commissioner
247.31of human services. The transition plan must provide information to clients on how to
247.32access medical records and how to transfer to other providers.

248.1    Sec. 2. Minnesota Statutes 2012, section 245A.04, is amended by adding a subdivision
248.2to read:
248.3    Subd. 15a. Plan for transfer of clients and records upon closure. (a) Except for
248.4child care providers, an applicant for initial or continuing licensure must submit a written
248.5plan indicating how the agency will provide for the transfer of clients and records for both
248.6open and closed cases if the agency closes. The plan must provide for managing private
248.7and confidential information concerning agency clients. The plan must also provide
248.8for notifying affected clients of the closure at least 25 days prior to closure, including
248.9information on how to access their medical records. A controlling individual of the agency
248.10must annually review and sign the plan.
248.11(b) Plans for the transfer of open cases and case records must specify arrangements
248.12the agency will make to transfer clients to another agency or county agency for
248.13continuation of services and to transfer the case record with the client.
248.14(c) Plans for the transfer of closed case records must be accompanied by a signed
248.15agreement or other documentation indicating that a county or a similarly licensed agency
248.16has agreed to accept and maintain the agency's closed case records and to provide
248.17follow-up services as necessary to affected clients.

248.18    Sec. 3. Minnesota Statutes 2012, section 253B.066, subdivision 1, is amended to read:
248.19    Subdivision 1. Treatment alternatives. If the court orders early intervention
248.20under section 253B.065, subdivision 5, the court may include in its order a variety of
248.21treatment alternatives including, but not limited to, day treatment, medication compliance
248.22monitoring, assertive community treatment, crisis assessment and stabilization, partial
248.23hospitalization, and short-term hospitalization not to exceed 21 days.
248.24If the court orders short-term hospitalization and the proposed patient will not go
248.25voluntarily, the court may direct a health officer, peace officer, or other person to take the
248.26person into custody and transport the person to the hospital.

248.27    Sec. 4. Minnesota Statutes 2012, section 254B.12, is amended to read:
248.28254B.12 RATE METHODOLOGY.
248.29    Subdivision 1. CCDTF rate methodology established. The commissioner shall
248.30establish a new rate methodology for the consolidated chemical dependency treatment
248.31fund. The new methodology must replace county-negotiated rates with a uniform
248.32statewide methodology that must include a graduated reimbursement scale based on the
248.33patients' level of acuity and complexity. At least biennially, the commissioner shall review
248.34the financial information provided by vendors to determine the need for rate adjustments.
249.1    Subd. 2. Payment methodology for state-operated vendors. (a) Notwithstanding
249.2subdivision 1, the commissioner shall seek federal authority to develop a separate
249.3payment methodology for chemical dependency treatment services provided under the
249.4consolidated chemical dependency treatment fund by a state-operated vendor. This
249.5payment methodology is effective for services provided on or after October 1, 2015, or on
249.6or after the receipt of federal approval, whichever is later.
249.7(b) Before implementing an approved payment methodology under paragraph
249.8(a), the commissioner must also receive any necessary legislative approval of required
249.9changes to state law or funding.

249.10    Sec. 5. Minnesota Statutes 2013 Supplement, section 256B.06, subdivision 4, is
249.11amended to read:
249.12    Subd. 4. Citizenship requirements. (a) Eligibility for medical assistance is limited
249.13to citizens of the United States, qualified noncitizens as defined in this subdivision, and
249.14other persons residing lawfully in the United States. Citizens or nationals of the United
249.15States must cooperate in obtaining satisfactory documentary evidence of citizenship or
249.16nationality according to the requirements of the federal Deficit Reduction Act of 2005,
249.17Public Law 109-171.
249.18(b) "Qualified noncitizen" means a person who meets one of the following
249.19immigration criteria:
249.20(1) admitted for lawful permanent residence according to United States Code, title 8;
249.21(2) admitted to the United States as a refugee according to United States Code,
249.22title 8, section 1157;
249.23(3) granted asylum according to United States Code, title 8, section 1158;
249.24(4) granted withholding of deportation according to United States Code, title 8,
249.25section 1253(h);
249.26(5) paroled for a period of at least one year according to United States Code, title 8,
249.27section 1182(d)(5);
249.28(6) granted conditional entrant status according to United States Code, title 8,
249.29section 1153(a)(7);
249.30(7) determined to be a battered noncitizen by the United States Attorney General
249.31according to the Illegal Immigration Reform and Immigrant Responsibility Act of 1996,
249.32title V of the Omnibus Consolidated Appropriations Bill, Public Law 104-200;
249.33(8) is a child of a noncitizen determined to be a battered noncitizen by the United
249.34States Attorney General according to the Illegal Immigration Reform and Immigrant
250.1Responsibility Act of 1996, title V, of the Omnibus Consolidated Appropriations Bill,
250.2Public Law 104-200; or
250.3(9) determined to be a Cuban or Haitian entrant as defined in section 501(e) of Public
250.4Law 96-422, the Refugee Education Assistance Act of 1980.
250.5(c) All qualified noncitizens who were residing in the United States before August
250.622, 1996, who otherwise meet the eligibility requirements of this chapter, are eligible for
250.7medical assistance with federal financial participation.
250.8(d) Beginning December 1, 1996, qualified noncitizens who entered the United
250.9States on or after August 22, 1996, and who otherwise meet the eligibility requirements
250.10of this chapter are eligible for medical assistance with federal participation for five years
250.11if they meet one of the following criteria:
250.12(1) refugees admitted to the United States according to United States Code, title 8,
250.13section 1157;
250.14(2) persons granted asylum according to United States Code, title 8, section 1158;
250.15(3) persons granted withholding of deportation according to United States Code,
250.16title 8, section 1253(h);
250.17(4) veterans of the United States armed forces with an honorable discharge for
250.18a reason other than noncitizen status, their spouses and unmarried minor dependent
250.19children; or
250.20(5) persons on active duty in the United States armed forces, other than for training,
250.21their spouses and unmarried minor dependent children.
250.22 Beginning July 1, 2010, children and pregnant women who are noncitizens
250.23described in paragraph (b) or who are lawfully present in the United States as defined
250.24in Code of Federal Regulations, title 8, section 103.12, and who otherwise meet
250.25eligibility requirements of this chapter, are eligible for medical assistance with federal
250.26financial participation as provided by the federal Children's Health Insurance Program
250.27Reauthorization Act of 2009, Public Law 111-3.
250.28(e) Nonimmigrants who otherwise meet the eligibility requirements of this chapter
250.29are eligible for the benefits as provided in paragraphs (f) to (h). For purposes of this
250.30subdivision, a "nonimmigrant" is a person in one of the classes listed in United States
250.31Code, title 8, section 1101(a)(15).
250.32(f) Payment shall also be made for care and services that are furnished to noncitizens,
250.33regardless of immigration status, who otherwise meet the eligibility requirements of
250.34this chapter, if such care and services are necessary for the treatment of an emergency
250.35medical condition.
251.1(g) For purposes of this subdivision, the term "emergency medical condition" means
251.2a medical condition that meets the requirements of United States Code, title 42, section
251.31396b(v).
251.4(h)(1) Notwithstanding paragraph (g), services that are necessary for the treatment
251.5of an emergency medical condition are limited to the following:
251.6(i) services delivered in an emergency room or by an ambulance service licensed
251.7under chapter 144E that are directly related to the treatment of an emergency medical
251.8condition;
251.9(ii) services delivered in an inpatient hospital setting following admission from an
251.10emergency room or clinic for an acute emergency condition; and
251.11(iii) follow-up services that are directly related to the original service provided
251.12to treat the emergency medical condition and are covered by the global payment made
251.13to the provider.
251.14    (2) Services for the treatment of emergency medical conditions do not include:
251.15(i) services delivered in an emergency room or inpatient setting to treat a
251.16nonemergency condition;
251.17(ii) organ transplants, stem cell transplants, and related care;
251.18(iii) services for routine prenatal care;
251.19(iv) continuing care, including long-term care, nursing facility services, home health
251.20care, adult day care, day training, or supportive living services;
251.21(v) elective surgery;
251.22(vi) outpatient prescription drugs, unless the drugs are administered or dispensed as
251.23part of an emergency room visit;
251.24(vii) preventative health care and family planning services;
251.25(viii) rehabilitation services;
251.26(ix) physical, occupational, or speech therapy;
251.27(x) transportation services;
251.28(xi) case management;
251.29(xii) prosthetics, orthotics, durable medical equipment, or medical supplies;
251.30(xiii) dental services;
251.31(xiv) hospice care;
251.32(xv) audiology services and hearing aids;
251.33(xvi) podiatry services;
251.34(xvii) chiropractic services;
251.35(xviii) immunizations;
251.36(xix) vision services and eyeglasses;
252.1(xx) waiver services;
252.2(xxi) individualized education programs; or
252.3(xxii) chemical dependency treatment.
252.4(i) Pregnant noncitizens who are ineligible for federally funded medical assistance
252.5because of immigration status, are not covered by a group health plan or health insurance
252.6coverage according to Code of Federal Regulations, title 42, section 457.310, and who
252.7otherwise meet the eligibility requirements of this chapter, are eligible for medical
252.8assistance through the period of pregnancy, including labor and delivery, and 60 days
252.9postpartum, to the extent federal funds are available under title XXI of the Social Security
252.10Act, and the state children's health insurance program.
252.11(j) Beginning October 1, 2003, persons who are receiving care and rehabilitation
252.12services from a nonprofit center established to serve victims of torture and are otherwise
252.13ineligible for medical assistance under this chapter are eligible for medical assistance
252.14without federal financial participation. These individuals are eligible only for the period
252.15during which they are receiving services from the center. Individuals eligible under this
252.16paragraph shall not be required to participate in prepaid medical assistance. Beginning
252.17July 1, 2014, the commissioner shall pay claims in full and subsequently bill counties
252.18for the nonfederal share of costs associated with adult mental health targeted case
252.19management services provided under this paragraph.
252.20(k) Notwithstanding paragraph (h), clause (2), the following services are covered as
252.21emergency medical conditions under paragraph (f) except where coverage is prohibited
252.22under federal law:
252.23(1) dialysis services provided in a hospital or freestanding dialysis facility; and
252.24(2) surgery and the administration of chemotherapy, radiation, and related services
252.25necessary to treat cancer if the recipient has a cancer diagnosis that is not in remission
252.26and requires surgery, chemotherapy, or radiation treatment.
252.27(l) Effective July 1, 2013, recipients of emergency medical assistance under this
252.28subdivision are eligible for coverage of the elderly waiver services provided under section
252.29256B.0915 , and coverage of rehabilitative services provided in a nursing facility. The
252.30age limit for elderly waiver services does not apply. In order to qualify for coverage, a
252.31recipient of emergency medical assistance is subject to the assessment and reassessment
252.32requirements of section 256B.0911. Initial and continued enrollment under this paragraph
252.33is subject to the limits of available funding.

252.34    Sec. 6. Minnesota Statutes 2012, section 256B.0615, subdivision 3, is amended to read:
253.1    Subd. 3. Eligibility. Peer support services may be made available to consumers of
253.2(1) the intensive rehabilitative mental health services under section 256B.0622; (2) adult
253.3rehabilitative mental health services under section 256B.0623; and (3) crisis stabilization
253.4and mental health mobile crisis intervention services under section 256B.0624.

253.5    Sec. 7. Minnesota Statutes 2012, section 256B.0624, subdivision 2, is amended to read:
253.6    Subd. 2. Definitions. For purposes of this section, the following terms have the
253.7meanings given them.
253.8(a) "Mental health crisis" is an adult behavioral, emotional, or psychiatric situation
253.9which, but for the provision of crisis response services, would likely result in significantly
253.10reduced levels of functioning in primary activities of daily living, or in an emergency
253.11situation, or in the placement of the recipient in a more restrictive setting, including, but
253.12not limited to, inpatient hospitalization.
253.13(b) "Mental health emergency" is an adult behavioral, emotional, or psychiatric
253.14situation which causes an immediate need for mental health services and is consistent
253.15with section 62Q.55.
253.16A mental health crisis or emergency is determined for medical assistance service
253.17reimbursement by a physician, a mental health professional, or crisis mental health
253.18practitioner with input from the recipient whenever possible.
253.19(c) "Mental health crisis assessment" means an immediate face-to-face assessment
253.20by a physician, a mental health professional, or mental health practitioner under the
253.21clinical supervision of a mental health professional, following a screening that suggests
253.22that the adult may be experiencing a mental health crisis or mental health emergency
253.23situation. It includes, when feasible, assessing whether the person might be willing to
253.24voluntarily accept treatment, determining whether the person has an advance directive,
253.25and obtaining information and history from involved family members or caretakers.
253.26(d) "Mental health mobile crisis intervention services" means face-to-face,
253.27short-term intensive mental health services initiated during a mental health crisis or mental
253.28health emergency to help the recipient cope with immediate stressors, identify and utilize
253.29available resources and strengths, engage in voluntary treatment, and begin to return to the
253.30recipient's baseline level of functioning.
253.31(1) This service is provided on site by a mobile crisis intervention team outside of
253.32an inpatient hospital setting. Mental health mobile crisis intervention services must be
253.33available 24 hours a day, seven days a week.
253.34(2) The initial screening must consider other available services to determine which
253.35service intervention would best address the recipient's needs and circumstances.
254.1(3) The mobile crisis intervention team must be available to meet promptly
254.2face-to-face with a person in mental health crisis or emergency in a community setting or
254.3hospital emergency room.
254.4(4) The intervention must consist of a mental health crisis assessment and a crisis
254.5treatment plan.
254.6(5) The team must be available to individuals who are experiencing a co-occurring
254.7substance use disorder, who do not need the level of care provided in a detoxification
254.8facility.
254.9(5) (6) The treatment plan must include recommendations for any needed crisis
254.10stabilization services for the recipient, including engagement in treatment planning and
254.11family psychoeducation.
254.12(e) "Mental health crisis stabilization services" means individualized mental
254.13health services provided to a recipient following crisis intervention services which are
254.14designed to restore the recipient to the recipient's prior functional level. Mental health
254.15crisis stabilization services may be provided in the recipient's home, the home of a family
254.16member or friend of the recipient, another community setting, or a short-term supervised,
254.17licensed residential program. Mental health crisis stabilization does not include partial
254.18hospitalization or day treatment. Mental health crisis stabilization services includes
254.19family psychoeducation.

254.20    Sec. 8. Minnesota Statutes 2012, section 256B.0624, subdivision 5, is amended to read:
254.21    Subd. 5. Mobile crisis intervention staff qualifications. For provision of adult
254.22mental health mobile crisis intervention services, a mobile crisis intervention team is
254.23comprised of at least two mental health professionals as defined in section 245.462,
254.24subdivision 18 , clauses (1) to (6), or a combination of at least one mental health
254.25professional and one mental health practitioner as defined in section 245.462, subdivision
254.2617 , with the required mental health crisis training and under the clinical supervision of
254.27a mental health professional on the team. The team must have at least two people with
254.28at least one member providing on-site crisis intervention services when needed. Team
254.29members must be experienced in mental health assessment, crisis intervention techniques,
254.30treatment engagement strategies, working with families, and clinical decision-making
254.31under emergency conditions and have knowledge of local services and resources.
254.32The team must recommend and coordinate the team's services with appropriate local
254.33resources such as the county social services agency, mental health services, and local
254.34law enforcement when necessary.

255.1    Sec. 9. Minnesota Statutes 2012, section 256B.0624, subdivision 6, is amended to read:
255.2    Subd. 6. Crisis assessment and mobile intervention treatment planning. (a)
255.3Prior to initiating mobile crisis intervention services, a screening of the potential crisis
255.4situation must be conducted. The screening may use the resources of crisis assistance
255.5and emergency services as defined in sections 245.462, subdivision 6, and 245.469,
255.6subdivisions 1 and 2. The screening must gather information, determine whether a crisis
255.7situation exists, identify parties involved, and determine an appropriate response.
255.8(b) If a crisis exists, a crisis assessment must be completed. A crisis assessment
255.9evaluates any immediate needs for which emergency services are needed and, as time
255.10permits, the recipient's current life situation, sources of stress, mental health problems
255.11and symptoms, strengths, cultural considerations, support network, vulnerabilities, current
255.12functioning, and the recipient's preferences as communicated directly by the recipient,
255.13or as communicated in a health care directive as described in chapters 145C and 253B,
255.14the treatment plan described under paragraph (d), a crisis prevention plan, or a wellness
255.15recovery action plan.
255.16(c) If the crisis assessment determines mobile crisis intervention services are needed,
255.17the intervention services must be provided promptly. As opportunity presents during the
255.18intervention, at least two members of the mobile crisis intervention team must confer
255.19directly or by telephone about the assessment, treatment plan, and actions taken and
255.20needed. At least one of the team members must be on site providing crisis intervention
255.21services. If providing on-site crisis intervention services, a mental health practitioner must
255.22seek clinical supervision as required in subdivision 9.
255.23(d) The mobile crisis intervention team must develop an initial, brief crisis treatment
255.24plan as soon as appropriate but no later than 24 hours after the initial face-to-face
255.25intervention. The plan must address the needs and problems noted in the crisis assessment
255.26and include measurable short-term goals, cultural considerations, and frequency and type
255.27of services to be provided to achieve the goals and reduce or eliminate the crisis. The
255.28treatment plan must be updated as needed to reflect current goals and services.
255.29(e) The team must document which short-term goals have been met and when no
255.30further crisis intervention services are required.
255.31(f) If the recipient's crisis is stabilized, but the recipient needs a referral to other
255.32services, the team must provide referrals to these services. If the recipient has a case
255.33manager, planning for other services must be coordinated with the case manager. If the
255.34recipient is unable to follow up on the referral, the team must link the recipient to the
255.35service and follow up to ensure the recipient is receiving the service.
256.1(g) If the recipient's crisis is stabilized and the recipient does not have an advance
256.2directive, the case manager or crisis team shall offer to work with the recipient to develop
256.3one.

256.4    Sec. 10. Minnesota Statutes 2012, section 256B.0624, subdivision 10, is amended to
256.5read:
256.6    Subd. 10. Recipient file. Providers of mobile crisis intervention or crisis stabilization
256.7services must maintain a file for each recipient containing the following information:
256.8(1) individual crisis treatment plans signed by the recipient, mental health
256.9professional, and mental health practitioner who developed the crisis treatment plan, or
256.10if the recipient refused to sign the plan, the date and reason stated by the recipient as to
256.11why the recipient would not sign the plan;
256.12(2) signed release forms;
256.13(3) recipient health information and current medications;
256.14(4) emergency contacts for the recipient;
256.15(5) case records which document the date of service, place of service delivery,
256.16signature of the person providing the service, and the nature, extent, and units of service.
256.17Direct or telephone contact with the recipient's family or others should be documented;
256.18(6) required clinical supervision by mental health professionals;
256.19(7) summary of the recipient's case reviews by staff; and
256.20(8) any written information by the recipient that the recipient wants in the file; and
256.21(9) an advance directive, if there is one available.
256.22Documentation in the file must comply with all requirements of the commissioner.

256.23    Sec. 11. Minnesota Statutes 2012, section 256B.0625, is amended by adding a
256.24subdivision to read:
256.25    Subd. 64. Medical assistance. Medical assistance, subject to federal approval,
256.26covers mental health intensive community rehabilitation services. This subdivision is
256.27effective no later than 120 days after federal approval.

256.28    Sec. 12. Minnesota Statutes 2012, section 256I.05, subdivision 2, is amended to read:
256.29    Subd. 2. Monthly rates; exemptions. The maximum group residential housing rate
256.30does not apply This subdivision applies to a residence that on August 1, 1984, was licensed
256.31by the commissioner of health only as a boarding care home, certified by the commissioner
256.32of health as an intermediate care facility, and licensed by the commissioner of human
256.33services under Minnesota Rules, parts 9520.0500 to 9520.0690. Notwithstanding the
257.1provisions of subdivision 1c, the rate paid to a facility reimbursed under this subdivision
257.2shall be determined under section 256B.431, or under section 256B.434 if the facility is
257.3accepted by the commissioner for participation in the alternative payment demonstration
257.4project. The rate paid to this facility shall also include adjustments to the group residential
257.5housing rate according to subdivision 1, and any adjustments applicable to supplemental
257.6service rates statewide.

257.7    Sec. 13. DETOXIFICATION SERVICES PLAN.
257.8The commissioner shall develop a plan to include detoxification services as a
257.9covered medical assistance benefit and present the plan to the members of the legislative
257.10committees having jurisdiction over health and human services provisions and funding
257.11by December 15, 2014.

257.12    Sec. 14. MENTALLY ILL OFFENDERS ARRESTED OR SUBJECT TO
257.13ARREST; WORKING GROUP.
257.14    Subdivision 1. Working group established; study and draft legislation required.
257.15The commissioner of human services may convene a working group to address issues
257.16related to offenders with mental illness who are arrested or subject to arrest. The working
257.17group shall consider the special needs of these offenders and determine how best to
257.18provide for these needs. Specifically, the group shall consider the efficacy of a facility
257.19that would serve as a central point for accepting, assessing, and addressing the needs of
257.20offenders with mental illness brought in by law enforcement as an alternative to arrest or
257.21following arrest. The facility would consolidate and coordinate existing resources as well
257.22as offer new resources that would provide a continuum of care addressing the immediate,
257.23short-term, and long-term needs of these offenders. The facility would do the following for
257.24these offenders: perform timely, credible, and useful mental health assessments; identify
257.25community placement opportunities; coordinate community care; make recommendations
257.26concerning pretrial release when appropriate; and, in some cases, provide direct services
257.27to offenders at the facility or in nearby jails. The working group shall establish criteria
257.28to determine which offenders may be admitted to the facility. The facility would be
257.29located in the metropolitan region and serve the needs of nearby counties. The facility
257.30would represent a partnership between the state, local units of government, and the private
257.31sector. In addition, the working group may consider how similar facilities could function
257.32in outstate areas. When studying this issue, the working group shall examine what other
257.33states have done in this area to determine what programs have been successful and use
257.34those programs as models in developing the program in Minnesota. The working group
258.1may also study and make recommendations on other ways to improve the process for
258.2addressing and assisting these offenders. The commissioner shall enter into an agreement
258.3with NAMI Minnesota to carry out the work of the working group.
258.4    Subd. 2. Membership. The commissioner shall ensure that the working group
258.5has expertise and a broad range of interests represented, including, but not limited to:
258.6prosecutors; law enforcement, including jail staff; correctional officials; community
258.7corrections staff; probation officials; criminal defense attorneys; judges; county and city
258.8officials; mental health advocates; mental health professionals; and hospital and health
258.9care officials.
258.10    Subd. 3. Administrative issues. (a) The commissioner shall convene the first
258.11meeting of the working group by September 1, 2014. NAMI Minnesota shall provide
258.12meeting space and administrative support to the working group. The working group shall
258.13select a chair from among its members.
258.14(b) The commissioner may solicit in-kind support from work group member
258.15agencies to accomplish its assigned duties.
258.16    Subd. 4. Report required. By January 1, 2015, the working group shall submit a
258.17report to the chairs and ranking minority members of the senate and house of representatives
258.18committees and divisions having jurisdiction over human services and public safety. The
258.19report must summarize the working group's activities and include its recommendations
258.20and draft legislation. The recommendations must be specific and include estimates of the
258.21costs involved in implementing the recommendations, including the funding sources that
258.22might be used to pay for it. The working group shall explore potential funding sources
258.23at the federal, local, and private levels, and provide this information in the report. In
258.24addition, the report must include draft legislation to implement the recommendations.
258.25EFFECTIVE DATE.This section is effective the day following final enactment.

258.26    Sec. 15. REPORT ON RATE SETTING METHODOLOGY FOR MENTAL
258.27HEALTH SERVICES.
258.28The commissioner of human services shall provide a report to the chairs of the
258.29Health and Human Services Finance Division by February 1, 2015, that assesses the
258.30current rate setting methodology for intensive residential treatment services (IRTS), adult
258.31crisis, and assertive community treatment (ACT). The report will include an assessment
258.32of alternative payment structures consistent with the intent and direction of the federal
258.33centers for Medicare and Medicaid services which could provide adequate reimbursement
258.34to sustain community-based mental health services regardless of geographic location.
258.35Stakeholders will be included in the development of the report and the report will also
259.1include concerns regarding payment rates for other mental health services that may
259.2require further analysis in the future.

259.3ARTICLE 16

259.4CHILDREN, FAMILIES, AND NORTHSTAR CARE

259.5    Section 1. Minnesota Statutes 2012, section 245C.05, subdivision 5, is amended to read:
259.6    Subd. 5. Fingerprints. (a) Except as provided in paragraph (c), for any background
259.7study completed under this chapter, when the commissioner has reasonable cause to
259.8believe that further pertinent information may exist on the subject of the background
259.9study, the subject shall provide the commissioner with a set of classifiable fingerprints
259.10obtained from an authorized agency.
259.11    (b) For purposes of requiring fingerprints, the commissioner has reasonable cause
259.12when, but not limited to, the:
259.13    (1) information from the Bureau of Criminal Apprehension indicates that the subject
259.14is a multistate offender;
259.15    (2) information from the Bureau of Criminal Apprehension indicates that multistate
259.16offender status is undetermined; or
259.17    (3) commissioner has received a report from the subject or a third party indicating
259.18that the subject has a criminal history in a jurisdiction other than Minnesota.
259.19    (c) Except as specified under section 245C.04, subdivision 1, paragraph (d), for
259.20background studies conducted by the commissioner for child foster care or, adoptions, or a
259.21transfer of permanent legal and physical custody of a child, the subject of the background
259.22study, who is 18 years of age or older, shall provide the commissioner with a set of
259.23classifiable fingerprints obtained from an authorized agency.

259.24    Sec. 2. Minnesota Statutes 2013 Supplement, section 245C.08, subdivision 1, is
259.25amended to read:
259.26    Subdivision 1. Background studies conducted by Department of Human
259.27Services. (a) For a background study conducted by the Department of Human Services,
259.28the commissioner shall review:
259.29    (1) information related to names of substantiated perpetrators of maltreatment of
259.30vulnerable adults that has been received by the commissioner as required under section
259.31626.557, subdivision 9c , paragraph (j);
259.32    (2) the commissioner's records relating to the maltreatment of minors in licensed
259.33programs, and from findings of maltreatment of minors as indicated through the social
259.34service information system;
260.1    (3) information from juvenile courts as required in subdivision 4 for individuals
260.2listed in section 245C.03, subdivision 1, paragraph (a), when there is reasonable cause;
260.3    (4) information from the Bureau of Criminal Apprehension, including information
260.4regarding a background study subject's registration in Minnesota as a predatory offender
260.5under section 243.166;
260.6    (5) except as provided in clause (6), information from the national crime information
260.7system when the commissioner has reasonable cause as defined under section 245C.05,
260.8subdivision 5; and
260.9    (6) for a background study related to a child foster care application for licensure, a
260.10transfer of permanent legal and physical custody of a child under sections 260C.503 to
260.11260C.515, or adoptions, the commissioner shall also review:
260.12    (i) information from the child abuse and neglect registry for any state in which the
260.13background study subject has resided for the past five years; and
260.14    (ii) information from national crime information databases, when the background
260.15study subject is 18 years of age or older.
260.16    (b) Notwithstanding expungement by a court, the commissioner may consider
260.17information obtained under paragraph (a), clauses (3) and (4), unless the commissioner
260.18received notice of the petition for expungement and the court order for expungement is
260.19directed specifically to the commissioner.
260.20    (c) The commissioner shall also review criminal case information received according
260.21to section 245C.04, subdivision 4a, from the Minnesota court information system that
260.22relates to individuals who have already been studied under this chapter and who remain
260.23affiliated with the agency that initiated the background study.

260.24    Sec. 3. Minnesota Statutes 2012, section 245C.33, subdivision 1, is amended to read:
260.25    Subdivision 1. Adoption and transfer of permanent legal and physical custody;
260.26 Background studies conducted by commissioner study requirements. (a) Before
260.27placement of a child for purposes of adoption, the commissioner shall conduct a
260.28background study on individuals listed in section sections 259.41, subdivision 3, and
260.29260C.611, for county agencies and private agencies licensed to place children for adoption.
260.30 When a prospective adoptive parent is seeking to adopt a child who is currently placed in
260.31the prospective adoptive parent's home and is under the guardianship of the commissioner
260.32according to section 260C.325, subdivision 1, paragraph (b), and the prospective adoptive
260.33parent holds a child foster care license, a new background study is not required when:
260.34(1) a background study was completed on persons required to be studied under section
260.35245C.03 in connection with the application for child foster care licensure after July 1, 2007;
261.1(2) the background study included a review of the information in section 245C.08,
261.2subdivisions 1, 3, and 4; and
261.3(3) as a result of the background study, the individual was either not disqualified
261.4or, if disqualified, the disqualification was set aside under section 245C.22, or a variance
261.5was issued under section 245C.30.
261.6(b) Before the kinship placement agreement is signed for the purpose of transferring
261.7permanent legal and physical custody to a relative under sections 260C.503 to 260C.515,
261.8the commissioner shall conduct a background study on each person age 13 or older living
261.9in the home. When a prospective relative custodian has a child foster care license, a new
261.10background study is not required when:
261.11(1) a background study was completed on persons required to be studied under section
261.12245C.03 in connection with the application for child foster care licensure after July 1, 2007;
261.13(2) the background study included a review of the information in section 245C.08,
261.14subdivisions 1, 3, and 4; and
261.15(3) as a result of the background study, the individual was either not disqualified or,
261.16if disqualified, the disqualification was set aside under section 245C.22, or a variance was
261.17issued under section 245C.30. The commissioner and the county agency shall expedite any
261.18request for a set aside or variance for a background study required under chapter 256N.

261.19    Sec. 4. Minnesota Statutes 2012, section 245C.33, subdivision 4, is amended to read:
261.20    Subd. 4. Information commissioner reviews. (a) The commissioner shall review
261.21the following information regarding the background study subject:
261.22    (1) the information under section 245C.08, subdivisions 1, 3, and 4;
261.23    (2) information from the child abuse and neglect registry for any state in which the
261.24subject has resided for the past five years; and
261.25    (3) information from national crime information databases, when required under
261.26section 245C.08.
261.27    (b) The commissioner shall provide any information collected under this subdivision
261.28to the county or private agency that initiated the background study. The commissioner
261.29shall also provide the agency:
261.30(1) notice whether the information collected shows that the subject of the background
261.31study has a conviction listed in United States Code, title 42, section 671(a)(20)(A); and
261.32(2) for background studies conducted under subdivision 1, paragraph (a), the date of
261.33all adoption-related background studies completed on the subject by the commissioner
261.34after June 30, 2007, and the name of the county or private agency that initiated the
261.35adoption-related background study.

262.1    Sec. 5. Minnesota Statutes 2013 Supplement, section 256B.055, subdivision 1, is
262.2amended to read:
262.3    Subdivision 1. Children eligible for subsidized adoption assistance. Medical
262.4assistance may be paid for a child eligible for or receiving adoption assistance payments
262.5under title IV-E of the Social Security Act, United States Code, title 42, sections 670 to
262.6676, and to any child who is not title IV-E eligible but who was determined eligible for
262.7adoption assistance under chapter 256N or section 259A.10, subdivision 2, and has a
262.8special need for medical or rehabilitative care.

262.9    Sec. 6. Minnesota Statutes 2012, section 256J.49, subdivision 13, is amended to read:
262.10    Subd. 13. Work activity. (a) "Work activity" means any activity in a participant's
262.11approved employment plan that leads to employment. For purposes of the MFIP program,
262.12this includes activities that meet the definition of work activity under the participation
262.13requirements of TANF. Work activity includes:
262.14    (1) unsubsidized employment, including work study and paid apprenticeships or
262.15internships;
262.16    (2) subsidized private sector or public sector employment, including grant diversion
262.17as specified in section 256J.69, on-the-job training as specified in section 256J.66, paid
262.18work experience, and supported work when a wage subsidy is provided;
262.19    (3) unpaid work experience, including community service, volunteer work,
262.20the community work experience program as specified in section 256J.67, unpaid
262.21apprenticeships or internships, and supported work when a wage subsidy is not provided.
262.22Unpaid work experience is only an option if the participant has been unable to obtain or
262.23maintain paid employment in the competitive labor market, and no paid work experience
262.24programs are available to the participant. Prior to placing a participant in unpaid work,
262.25the county must inform the participant that the participant will be notified if a paid work
262.26experience or supported work position becomes available. Unless a participant consents in
262.27writing to participate in unpaid work experience, the participant's employment plan may
262.28only include unpaid work experience if including the unpaid work experience in the plan
262.29will meet the following criteria:
262.30    (i) the unpaid work experience will provide the participant specific skills or
262.31experience that cannot be obtained through other work activity options where the
262.32participant resides or is willing to reside; and
262.33    (ii) the skills or experience gained through the unpaid work experience will result
262.34in higher wages for the participant than the participant could earn without the unpaid
262.35work experience;
263.1    (4) job search including job readiness assistance, job clubs, job placement,
263.2job-related counseling, and job retention services;
263.3    (5) job readiness education, including English as a second language (ESL) or
263.4functional work literacy classes as limited by the provisions of section 256J.531,
263.5subdivision 2 , general educational development (GED) or adult high school diploma
263.6course work, high school completion, and adult basic education as limited by the
263.7provisions of section 256J.531, subdivision 1;
263.8    (6) job skills training directly related to employment, including postsecondary
263.9education and training that can reasonably be expected to lead to employment, as limited
263.10by the provisions of section 256J.53;
263.11    (7) providing child care services to a participant who is working in a community
263.12service program;
263.13    (8) activities included in the employment plan that is developed under section
263.14256J.521, subdivision 3 ; and
263.15    (9) preemployment activities including chemical and mental health assessments,
263.16treatment, and services; learning disabilities services; child protective services; family
263.17stabilization services; or other programs designed to enhance employability.
263.18(b) "Work activity" does not include activities done for political purposes as defined
263.19in section 211B.01, subdivision 6.

263.20    Sec. 7. Minnesota Statutes 2012, section 256J.53, subdivision 1, is amended to read:
263.21    Subdivision 1. Length of program. (a) In order for a postsecondary education
263.22or training program to be an approved work activity as defined in section 256J.49,
263.23subdivision 13 , clause (6), it must be a program lasting 24 months four years or less, and
263.24the participant must meet the requirements of subdivisions 2, 3, and 5.
263.25(b) Participants with a high school diploma, general educational development
263.26(GED) credential, or an adult high school diploma must be informed of the opportunity
263.27to participate in postsecondary education or training while in the Minnesota family
263.28investment program.

263.29    Sec. 8. Minnesota Statutes 2012, section 256J.53, subdivision 2, is amended to read:
263.30    Subd. 2. Approval of Postsecondary education or training. (a) In order for a
263.31postsecondary education or training program to be an approved activity in an employment
263.32plan, the plan must include additional work activities if the education and training
263.33activities do not meet the minimum hours required to meet the federal work participation
263.34rate under Code of Federal Regulations, title 45, sections 261.31 and 261.35.
264.1    (b) Participants seeking approval of a postsecondary education or training plan
264.2must provide documentation that:
264.3    (1) the employment goal can only be met with the additional education or training;
264.4 Participants who are interested in participating in postsecondary education or training as
264.5part of their employment plan must discuss their education plans with their job counselor.
264.6Job counselors will work with participants to evaluate the options by:
264.7    (2) (1) advising whether there are suitable employment opportunities that require
264.8the specific education or training in the area in which the participant resides or is willing
264.9to reside;
264.10    (3) the education or training will result in significantly higher wages for the
264.11participant than the participant could earn without the education or training;
264.12    (4) (2) assisting the participant in exploring whether the participant can meet the
264.13requirements for admission into the program; and
264.14    (5) there is a reasonable expectation that the participant will complete the training
264.15program based on such factors as (3) discussing the participant's strengths and challenges
264.16based on the participant's MFIP assessment, previous education, training, and work
264.17history; current motivation; and changes in previous circumstances.
264.18(b) The requirements of this subdivision do not apply to participants who are in:
264.19(1) a recognized career pathway program that leads to stackable credentials;
264.20(2) a training program lasting 12 weeks or fewer; or
264.21(3) the final year of a multiyear postsecondary education or training program.

264.22    Sec. 9. Minnesota Statutes 2012, section 256J.53, subdivision 5, is amended to read:
264.23    Subd. 5. Requirements after postsecondary education or training. Upon
264.24completion of an approved education or training program, a participant who does not meet
264.25the participation requirements in section 256J.55, subdivision 1, through unsubsidized
264.26employment must participate in job search. If, after six 12 weeks of job search, the
264.27participant does not find a full-time job consistent with the employment goal, the
264.28participant must accept any offer of full-time suitable employment, or meet with the job
264.29counselor to revise the employment plan to include additional work activities necessary to
264.30meet hourly requirements.

264.31    Sec. 10. Minnesota Statutes 2012, section 256J.531, is amended to read:
264.32256J.531 BASIC EDUCATION; ENGLISH AS A SECOND LANGUAGE.
264.33    Subdivision 1. Approval of adult basic education. With the exception of classes
264.34related to obtaining a general educational development credential (GED), a participant
265.1must have reading or mathematics proficiency below a ninth grade level in order for
265.2adult basic education classes to be an A participant who lacks a high school diploma,
265.3general educational development (GED) credential, or an adult high school diploma
265.4must be allowed to pursue these credentials as an approved work activity, provided
265.5that the participant is making satisfactory progress. Participants eligible to pursue
265.6a general educational development (GED) credential or adult high school diploma
265.7under this subdivision must be informed of the opportunity to participate while in the
265.8Minnesota family investment program. The employment plan must also specify that
265.9the participant fulfill no more than one-half of the participation requirements in section
265.10256J.55, subdivision 1, through attending adult basic education or general educational
265.11development classes.
265.12    Subd. 2. Approval of English as a second language. In order for English as a
265.13second language (ESL) classes to be an approved work activity in an employment plan, a
265.14participant must be below a spoken language proficiency level of SPL6 or its equivalent,
265.15as measured by a nationally recognized test. In approving ESL as a work activity, the job
265.16counselor must give preference to enrollment in a functional work literacy program,
265.17if one is available, over a regular ESL program. A participant may not be approved
265.18for more than a combined total of 24 months of ESL classes while participating in the
265.19diversionary work program and the employment and training services component of
265.20MFIP. The employment plan must also specify that the participant fulfill no more than
265.21one-half of the participation requirements in section 256J.55, subdivision 1, through
265.22attending ESL classes. For participants enrolled in functional work literacy classes, no
265.23more than two-thirds of the participation requirements in section 256J.55, subdivision 1,
265.24may be met through attending functional work literacy classes.

265.25    Sec. 11. Minnesota Statutes 2013 Supplement, section 256N.02, is amended by adding
265.26a subdivision to read:
265.27    Subd. 14a. Licensed child foster parent. "Licensed child foster parent" means a
265.28person who is licensed for child foster care under Minnesota Rules, parts 2960.3000 to
265.292960.3340, or licensed by a Minnesota tribe in accordance with tribal standards.

265.30    Sec. 12. Minnesota Statutes 2013 Supplement, section 256N.21, subdivision 2, is
265.31amended to read:
265.32    Subd. 2. Placement in foster care. To be eligible for foster care benefits under this
265.33section, the child must be in placement away from the child's legal parent or, guardian, or
266.1Indian custodian as defined in section 260.755, subdivision 10, and all of the following
266.2criteria must be met must meet one of the criteria in clause (1) and either clause (2) or (3):
266.3(1) the legally responsible agency must have placement authority and care
266.4responsibility, including for a child 18 years old or older and under age 21, who maintains
266.5eligibility for foster care consistent with section 260C.451;
266.6(2) (1) the legally responsible agency must have placement authority to place the
266.7child with: (i) a voluntary placement agreement or a court order, consistent with sections
266.8260B.198 , 260C.001, and 260D.01, or continued eligibility consistent with section
266.9260C.451 for a child 18 years old or older and under age 21 who maintains eligibility for
266.10foster care; or (ii) a voluntary placement agreement or court order by a Minnesota tribe
266.11that is consistent with United States Code, title 42, section 672(a)(2); and
266.12(3) (2) the child must be is placed in an emergency relative placement under section
266.13245A.035, with a licensed foster family setting, foster residence setting, or treatment
266.14foster care setting licensed under Minnesota Rules, parts 2960.3000 to 2960.3340, a
266.15family foster home licensed or approved by a tribal agency or, for a child 18 years old or
266.16older and under age 21, child foster parent; or
266.17(3) the child is placed in one of the following unlicensed child foster care settings:
266.18(i) an emergency relative placement under tribal licensing regulations or section
266.19245A.035, with the legally responsible agency ensuring the relative completes the required
266.20child foster care application process;
266.21(ii) a licensed adult foster home with an approved age variance under section
266.22245A.16 for no more than six months;
266.23(iii) for a child 18 years old or older and under age 21 who is eligible for extended
266.24foster care under section 260C.451, an unlicensed supervised independent living setting
266.25approved by the agency responsible for the youth's child's care.; or
266.26(iv) a preadoptive placement in a home specified in section 245A.03, subdivision
266.272, paragraph (a), clause (9), with an approved adoption home study and signed adoption
266.28placement agreement.

266.29    Sec. 13. Minnesota Statutes 2013 Supplement, section 256N.21, is amended by adding
266.30a subdivision to read:
266.31    Subd. 7. Background study. (a) A county or private agency conducting a
266.32background study for purposes of child foster care licensing or approval must conduct
266.33the study in accordance with chapter 245C and must meet the requirements in United
266.34States Code, title 42, section 671(a)(20).
267.1(b) A Minnesota tribe conducting a background study for purposes of child foster
267.2care licensing or approval must conduct the study in accordance with the requirements in
267.3United States Code, title 42, section 671(a)(20), when applicable.

267.4    Sec. 14. Minnesota Statutes 2013 Supplement, section 256N.22, subdivision 1, is
267.5amended to read:
267.6    Subdivision 1. General eligibility requirements. (a) To be eligible for guardianship
267.7assistance under this section, there must be a judicial determination under section
267.8260C.515, subdivision 4 , that a transfer of permanent legal and physical custody to a
267.9relative is in the child's best interest. For a child under jurisdiction of a tribal court, a
267.10judicial determination under a similar provision in tribal code indicating that a relative
267.11will assume the duty and authority to provide care, control, and protection of a child who
267.12is residing in foster care, and to make decisions regarding the child's education, health
267.13care, and general welfare until adulthood, and that this is in the child's best interest is
267.14considered equivalent. Additionally, a child must:
267.15(1) have been removed from the child's home pursuant to a voluntary placement
267.16agreement or court order;
267.17(2)(i) have resided in with the prospective relative custodian who has been a
267.18licensed child foster care parent for at least six consecutive months in the home of the
267.19prospective relative custodian; or
267.20(ii) have received from the commissioner an exemption from the requirement in item
267.21(i) from the court that the prospective relative custodian has been a licensed child foster
267.22parent for at least six consecutive months, based on a determination that:
267.23(A) an expedited move to permanency is in the child's best interest;
267.24(B) expedited permanency cannot be completed without provision of guardianship
267.25assistance; and
267.26(C) the prospective relative custodian is uniquely qualified to meet the child's needs,
267.27as defined in section 260C.212, subdivision 2, on a permanent basis;
267.28(D) the child and prospective relative custodian meet the eligibility requirements
267.29of this section; and
267.30(E) efforts were made by the legally responsible agency to place the child with the
267.31prospective relative custodian as a licensed child foster parent for six consecutive months
267.32before permanency, or an explanation why these efforts were not in the child's best interests;
267.33(3) meet the agency determinations regarding permanency requirements in
267.34subdivision 2;
267.35(4) meet the applicable citizenship and immigration requirements in subdivision 3;
268.1(5) have been consulted regarding the proposed transfer of permanent legal and
268.2physical custody to a relative, if the child is at least 14 years of age or is expected to attain
268.314 years of age prior to the transfer of permanent legal and physical custody; and
268.4(6) have a written, binding agreement under section 256N.25 among the caregiver or
268.5caregivers, the financially responsible agency, and the commissioner established prior to
268.6transfer of permanent legal and physical custody.
268.7(b) In addition to the requirements in paragraph (a), the child's prospective relative
268.8custodian or custodians must meet the applicable background study requirements in
268.9subdivision 4.
268.10(c) To be eligible for title IV-E guardianship assistance, a child must also meet any
268.11additional criteria in section 473(d) of the Social Security Act. The sibling of a child
268.12who meets the criteria for title IV-E guardianship assistance in section 473(d) of the
268.13Social Security Act is eligible for title IV-E guardianship assistance if the child and
268.14sibling are placed with the same prospective relative custodian or custodians, and the
268.15legally responsible agency, relatives, and commissioner agree on the appropriateness of
268.16the arrangement for the sibling. A child who meets all eligibility criteria except those
268.17specific to title IV-E guardianship assistance is entitled to guardianship assistance paid
268.18through funds other than title IV-E.

268.19    Sec. 15. Minnesota Statutes 2013 Supplement, section 256N.22, subdivision 2, is
268.20amended to read:
268.21    Subd. 2. Agency determinations regarding permanency. (a) To be eligible for
268.22guardianship assistance, the legally responsible agency must complete the following
268.23determinations regarding permanency for the child prior to the transfer of permanent
268.24legal and physical custody:
268.25(1) a determination that reunification and adoption are not appropriate permanency
268.26options for the child; and
268.27(2) a determination that the child demonstrates a strong attachment to the prospective
268.28relative custodian and the prospective relative custodian has a strong commitment to
268.29caring permanently for the child.
268.30(b) The legally responsible agency shall document the determinations in paragraph
268.31(a) and the eligibility requirements in this section that comply with United States Code,
268.32title 42, sections 673(d) and 675(1)(F). These determinations must be documented in a
268.33kinship placement agreement, which must be in the format prescribed by the commissioner
268.34and must be signed by the prospective relative custodian and the legally responsible
268.35agency. In the case of a Minnesota tribe, the determinations and eligibility requirements
269.1in this section may be provided in an alternative format approved by the commissioner.
269.2 Supporting information for completing each determination must be documented in the
269.3legally responsible agency's case file and make them available for review as requested
269.4by the financially responsible agency and the commissioner during the guardianship
269.5assistance eligibility determination process.

269.6    Sec. 16. Minnesota Statutes 2013 Supplement, section 256N.22, subdivision 4, is
269.7amended to read:
269.8    Subd. 4. Background study. (a) A background study under section 245C.33 must be
269.9completed on each prospective relative custodian and any other adult residing in the home
269.10of the prospective relative custodian. The background study must meet the requirements of
269.11United States Code, title 42, section 671(a)(20). A study completed under section 245C.33
269.12meets this requirement. A background study on the prospective relative custodian or adult
269.13residing in the household previously completed under section 245C.04 chapter 245C for the
269.14purposes of child foster care licensure may under chapter 245A or licensure by a Minnesota
269.15tribe, shall be used for the purposes of this section, provided that the background study is
269.16current meets the requirements of this subdivision and the prospective relative custodian is
269.17a licensed child foster parent at the time of the application for guardianship assistance.
269.18(b) If the background study reveals:
269.19(1) a felony conviction at any time for:
269.20(i) child abuse or neglect;
269.21(ii) spousal abuse;
269.22(iii) a crime against a child, including child pornography; or
269.23(iv) a crime involving violence, including rape, sexual assault, or homicide, but not
269.24including other physical assault or battery; or
269.25(2) a felony conviction within the past five years for:
269.26(i) physical assault;
269.27(ii) battery; or
269.28(iii) a drug-related offense;
269.29the prospective relative custodian is prohibited from receiving guardianship assistance
269.30on behalf of an otherwise eligible child.

269.31    Sec. 17. Minnesota Statutes 2013 Supplement, section 256N.22, subdivision 6, is
269.32amended to read:
270.1    Subd. 6. Exclusions. (a) A child with a guardianship assistance agreement under
270.2Northstar Care for Children is not eligible for the Minnesota family investment program
270.3child-only grant under chapter 256J.
270.4(b) The commissioner shall not enter into a guardianship assistance agreement with:
270.5(1) a child's biological parent or stepparent;
270.6(2) an individual assuming permanent legal and physical custody of a child or the
270.7equivalent under tribal code without involvement of the child welfare system; or
270.8(3) an individual assuming permanent legal and physical custody of a child who was
270.9placed in Minnesota by another state or a tribe outside of Minnesota.

270.10    Sec. 18. Minnesota Statutes 2013 Supplement, section 256N.23, subdivision 1, is
270.11amended to read:
270.12    Subdivision 1. General eligibility requirements. (a) To be eligible for Northstar
270.13adoption assistance under this section, a child must:
270.14(1) be determined to be a child with special needs under subdivision 2;
270.15(2) meet the applicable citizenship and immigration requirements in subdivision 3;
270.16(3)(i) meet the criteria in section 473 of the Social Security Act; or
270.17(ii) have had foster care payments paid on the child's behalf while in out-of-home
270.18placement through the county social service agency or tribe and be either under the
270.19 tribal social service agency prior to the issuance of a court order transferring the child's
270.20 guardianship of to the commissioner or under the jurisdiction of a Minnesota tribe and
270.21adoption, according to tribal law, is in the child's documented permanency plan making
270.22the child a ward of the tribe; and
270.23(4) have a written, binding agreement under section 256N.25 among the adoptive
270.24parent, the financially responsible agency, or, if there is no financially responsible agency,
270.25the agency designated by the commissioner, and the commissioner established prior to
270.26finalization of the adoption.
270.27(b) In addition to the requirements in paragraph (a), an eligible child's adoptive parent
270.28or parents must meet the applicable background study requirements in subdivision 4.
270.29(c) A child who meets all eligibility criteria except those specific to title IV-E adoption
270.30assistance shall receive adoption assistance paid through funds other than title IV-E.
270.31(d) A child receiving Northstar kinship assistance payments under section 256N.22
270.32is eligible for Northstar adoption assistance when the criteria in paragraph (a) are met and
270.33the child's legal custodian is adopting the child.

271.1    Sec. 19. Minnesota Statutes 2013 Supplement, section 256N.23, subdivision 4, is
271.2amended to read:
271.3    Subd. 4. Background study. (a) A background study under section 259.41 must be
271.4completed on each prospective adoptive parent. and all other adults residing in the home.
271.5A background study must meet the requirements of United States Code, title 42, section
271.6671(a)(20). A study completed under section 245C.33 meets this requirement. If the
271.7prospective adoptive parent is a licensed child foster parent licensed under chapter 245A
271.8or by a Minnesota tribe, the background study previously completed for the purposes of
271.9child foster care licensure shall be used for the purpose of this section, provided that the
271.10background study meets all other requirements of this subdivision and the prospective
271.11adoptive parent is a licensed child foster parent at the time of the application for adoption
271.12assistance.
271.13(b) If the background study reveals:
271.14(1) a felony conviction at any time for:
271.15(i) child abuse or neglect;
271.16(ii) spousal abuse;
271.17(iii) a crime against a child, including child pornography; or
271.18(iv) a crime involving violence, including rape, sexual assault, or homicide, but not
271.19including other physical assault or battery; or
271.20(2) a felony conviction within the past five years for:
271.21(i) physical assault;
271.22(ii) battery; or
271.23(iii) a drug-related offense;
271.24the adoptive parent is prohibited from receiving adoption assistance on behalf of an
271.25otherwise eligible child.

271.26    Sec. 20. Minnesota Statutes 2013 Supplement, section 256N.24, subdivision 9, is
271.27amended to read:
271.28    Subd. 9. Timing of and requests for reassessments. Reassessments for an eligible
271.29child must be completed within 30 days of any of the following events:
271.30(1) for a child in continuous foster care, when six months have elapsed since
271.31completion of the last assessment the initial assessment, and annually thereafter;
271.32(2) for a child in continuous foster care, change of placement location;
271.33(3) for a child in foster care, at the request of the financially responsible agency or
271.34legally responsible agency;
271.35(4) at the request of the commissioner; or
272.1(5) at the request of the caregiver under subdivision 9 10.

272.2    Sec. 21. Minnesota Statutes 2013 Supplement, section 256N.24, subdivision 10,
272.3is amended to read:
272.4    Subd. 10. Caregiver requests for reassessments. (a) A caregiver may initiate
272.5a reassessment request for an eligible child in writing to the financially responsible
272.6agency or, if there is no financially responsible agency, the agency designated by the
272.7commissioner. The written request must include the reason for the request and the
272.8name, address, and contact information of the caregivers. For an eligible child with a
272.9guardianship assistance or adoption assistance agreement, The caregiver may request a
272.10reassessment if at least six months have elapsed since any previously requested review
272.11 previous assessment or reassessment. For an eligible foster child, a foster parent may
272.12request reassessment in less than six months with written documentation that there have
272.13been significant changes in the child's needs that necessitate an earlier reassessment.
272.14(b) A caregiver may request a reassessment of an at-risk child for whom a
272.15guardianship assistance or an adoption assistance agreement has been executed if the
272.16caregiver has satisfied the commissioner with written documentation from a qualified
272.17expert that the potential disability upon which eligibility for the agreement was based has
272.18manifested itself, consistent with section 256N.25, subdivision 3, paragraph (b).
272.19(c) If the reassessment cannot be completed within 30 days of the caregiver's request,
272.20the agency responsible for reassessment must notify the caregiver of the reason for the
272.21delay and a reasonable estimate of when the reassessment can be completed.
272.22(d) Notwithstanding any provision to the contrary in paragraph (a) or subdivision 9,
272.23when a Northstar kinship assistance agreement or adoption assistance agreement under
272.24section 256N.25 has been signed by all parties, no reassessment may be requested or
272.25conducted until the court finalizes the transfer of permanent legal and physical custody or
272.26finalizes the adoption, or the assistance agreement expires according to section 256N.25,
272.27subdivision 1.

272.28    Sec. 22. Minnesota Statutes 2013 Supplement, section 256N.25, subdivision 2, is
272.29amended to read:
272.30    Subd. 2. Negotiation of agreement. (a) When a child is determined to be eligible
272.31for guardianship assistance or adoption assistance, the financially responsible agency, or,
272.32if there is no financially responsible agency, the agency designated by the commissioner,
272.33must negotiate with the caregiver to develop an agreement under subdivision 1. If and when
272.34the caregiver and agency reach concurrence as to the terms of the agreement, both parties
273.1shall sign the agreement. The agency must submit the agreement, along with the eligibility
273.2determination outlined in sections 256N.22, subdivision 7, and 256N.23, subdivision 7, to
273.3the commissioner for final review, approval, and signature according to subdivision 1.
273.4(b) A monthly payment is provided as part of the adoption assistance or guardianship
273.5assistance agreement to support the care of children unless the child is eligible for adoption
273.6assistance and determined to be an at-risk child, in which case the special at-risk monthly
273.7payment under section 256N.26, subdivision 7, must no payment will be made unless and
273.8until the caregiver obtains written documentation from a qualified expert that the potential
273.9disability upon which eligibility for the agreement was based has manifested itself.
273.10(1) The amount of the payment made on behalf of a child eligible for guardianship
273.11assistance or adoption assistance is determined through agreement between the prospective
273.12relative custodian or the adoptive parent and the financially responsible agency, or, if there
273.13is no financially responsible agency, the agency designated by the commissioner, using
273.14the assessment tool established by the commissioner in section 256N.24, subdivision 2,
273.15and the associated benefit and payments outlined in section 256N.26. Except as provided
273.16under section 256N.24, subdivision 1, paragraph (c), the assessment tool establishes
273.17the monthly benefit level for a child under foster care. The monthly payment under a
273.18guardianship assistance agreement or adoption assistance agreement may be negotiated up
273.19to the monthly benefit level under foster care. In no case may the amount of the payment
273.20under a guardianship assistance agreement or adoption assistance agreement exceed the
273.21foster care maintenance payment which would have been paid during the month if the
273.22child with respect to whom the guardianship assistance or adoption assistance payment is
273.23made had been in a foster family home in the state.
273.24(2) The rate schedule for the agreement is determined based on the age of the
273.25child on the date that the prospective adoptive parent or parents or relative custodian or
273.26custodians sign the agreement.
273.27(3) The income of the relative custodian or custodians or adoptive parent or parents
273.28must not be taken into consideration when determining eligibility for guardianship
273.29assistance or adoption assistance or the amount of the payments under section 256N.26.
273.30(4) With the concurrence of the relative custodian or adoptive parent, the amount of
273.31the payment may be adjusted periodically using the assessment tool established by the
273.32commissioner in section 256N.24, subdivision 2, and the agreement renegotiated under
273.33subdivision 3 when there is a change in the child's needs or the family's circumstances.
273.34(5) The guardianship assistance or adoption assistance agreement of a child who is
273.35identified as at-risk receives the special at-risk monthly payment under section 256N.26,
273.36subdivision 7, unless and until the potential disability manifests itself, as documented by
274.1an appropriate professional, and the commissioner authorizes commencement of payment
274.2by modifying the agreement accordingly. A relative custodian or An adoptive parent
274.3of an at-risk child with a guardianship assistance or an adoption assistance agreement
274.4may request a reassessment of the child under section 256N.24, subdivision 9 10, and
274.5renegotiation of the guardianship assistance or adoption assistance agreement under
274.6subdivision 3 to include a monthly payment, if the caregiver has written documentation
274.7from a qualified expert that the potential disability upon which eligibility for the agreement
274.8was based has manifested itself. Documentation of the disability must be limited to
274.9evidence deemed appropriate by the commissioner.
274.10(c) For guardianship assistance agreements:
274.11(1) the initial amount of the monthly guardianship assistance payment must be
274.12equivalent to the foster care rate in effect at the time that the agreement is signed less any
274.13offsets under section 256N.26, subdivision 11, or a lesser negotiated amount if agreed to
274.14by the prospective relative custodian and specified in that agreement, unless the child is
274.15identified as at-risk or the guardianship assistance agreement is entered into when a child
274.16is under the age of six; and
274.17(2) an at-risk child must be assigned level A as outlined in section 256N.26 and
274.18receive the special at-risk monthly payment under section 256N.26, subdivision 7, unless
274.19and until the potential disability manifests itself, as documented by a qualified expert, and
274.20the commissioner authorizes commencement of payment by modifying the agreement
274.21accordingly; and
274.22(3) (2) the amount of the monthly payment for a guardianship assistance agreement
274.23for a child, other than an at-risk child, who is under the age of six must be as specified in
274.24section 256N.26, subdivision 5.
274.25(d) For adoption assistance agreements:
274.26(1) for a child in foster care with the prospective adoptive parent immediately prior
274.27to adoptive placement, the initial amount of the monthly adoption assistance payment
274.28must be equivalent to the foster care rate in effect at the time that the agreement is signed
274.29less any offsets in section 256N.26, subdivision 11, or a lesser negotiated amount if agreed
274.30to by the prospective adoptive parents and specified in that agreement, unless the child is
274.31identified as at-risk or the adoption assistance agreement is entered into when a child is
274.32under the age of six;
274.33(2) for an at-risk child who must be assigned level A as outlined in section
274.34256N.26 and receive the special at-risk monthly payment under section 256N.26,
274.35subdivision 7, no payment will be made unless and until the potential disability manifests
275.1itself, as documented by an appropriate professional, and the commissioner authorizes
275.2commencement of payment by modifying the agreement accordingly;
275.3(3) the amount of the monthly payment for an adoption assistance agreement for
275.4a child under the age of six, other than an at-risk child, must be as specified in section
275.5256N.26, subdivision 5 ;
275.6(4) for a child who is in the guardianship assistance program immediately prior
275.7to adoptive placement, the initial amount of the adoption assistance payment must be
275.8equivalent to the guardianship assistance payment in effect at the time that the adoption
275.9assistance agreement is signed or a lesser amount if agreed to by the prospective adoptive
275.10parent and specified in that agreement, unless the child is identified as an at-risk child; and
275.11(5) for a child who is not in foster care placement or the guardianship assistance
275.12program immediately prior to adoptive placement or negotiation of the adoption assistance
275.13agreement, the initial amount of the adoption assistance agreement must be determined
275.14using the assessment tool and process in this section and the corresponding payment
275.15amount outlined in section 256N.26.

275.16    Sec. 23. Minnesota Statutes 2013 Supplement, section 256N.25, subdivision 3, is
275.17amended to read:
275.18    Subd. 3. Renegotiation of agreement. (a) A relative custodian or adoptive
275.19parent of a child with a guardianship assistance or adoption assistance agreement may
275.20request renegotiation of the agreement when there is a change in the needs of the child
275.21or in the family's circumstances. When a relative custodian or adoptive parent requests
275.22renegotiation of the agreement, a reassessment of the child must be completed consistent
275.23with section 256N.24, subdivisions 9 and 10. If the reassessment indicates that the
275.24child's level has changed, the financially responsible agency or, if there is no financially
275.25responsible agency, the agency designated by the commissioner or the commissioner's
275.26designee, and the caregiver must renegotiate the agreement to include a payment with
275.27the level determined through the reassessment process. The agreement must not be
275.28renegotiated unless the commissioner, the financially responsible agency, and the caregiver
275.29mutually agree to the changes. The effective date of any renegotiated agreement must be
275.30determined by the commissioner.
275.31(b) A relative custodian or An adoptive parent of an at-risk child with a guardianship
275.32assistance or an adoption assistance agreement may request renegotiation of the agreement
275.33to include a monthly payment higher than the special at-risk monthly payment under
275.34section 256N.26, subdivision 7, if the caregiver has written documentation from a
275.35qualified expert that the potential disability upon which eligibility for the agreement
276.1was based has manifested itself. Documentation of the disability must be limited to
276.2evidence deemed appropriate by the commissioner. Prior to renegotiating the agreement, a
276.3reassessment of the child must be conducted as outlined in section 256N.24, subdivision
276.49 . The reassessment must be used to renegotiate the agreement to include an appropriate
276.5monthly payment. The agreement must not be renegotiated unless the commissioner, the
276.6financially responsible agency, and the caregiver mutually agree to the changes. The
276.7effective date of any renegotiated agreement must be determined by the commissioner.
276.8(c) Renegotiation of a guardianship assistance or adoption assistance agreement is
276.9required when one of the circumstances outlined in section 256N.26, subdivision 13,
276.10occurs.

276.11    Sec. 24. Minnesota Statutes 2013 Supplement, section 256N.26, subdivision 1, is
276.12amended to read:
276.13    Subdivision 1. Benefits. (a) There are three benefits under Northstar Care for
276.14Children: medical assistance, basic payment, and supplemental difficulty of care payment.
276.15(b) A child is eligible for medical assistance under subdivision 2.
276.16(c) A child is eligible for the basic payment under subdivision 3, except for a child
276.17assigned level A under section 256N.24, subdivision 1, because the child is determined to
276.18be an at-risk child receiving guardianship assistance or adoption assistance.
276.19(d) A child, including a foster child age 18 to 21, is eligible for an additional
276.20supplemental difficulty of care payment under subdivision 4, as determined by the
276.21assessment under section 256N.24.
276.22(e) An eligible child entering guardianship assistance or adoption assistance under
276.23the age of six receives a basic payment and supplemental difficulty of care payment as
276.24specified in subdivision 5.
276.25(f) A child transitioning in from a pre-Northstar Care for Children program under
276.26section 256N.28, subdivision 7, shall receive basic and difficulty of care supplemental
276.27payments according to those provisions.

276.28    Sec. 25. Minnesota Statutes 2013 Supplement, section 256N.27, subdivision 4, is
276.29amended to read:
276.30    Subd. 4. Nonfederal share. (a) The commissioner shall establish a percentage share
276.31of the maintenance payments, reduced by federal reimbursements under title IV-E of the
276.32Social Security Act, to be paid by the state and to be paid by the financially responsible
276.33agency.
277.1(b) These state and local shares must initially be calculated based on the ratio of the
277.2average appropriate expenditures made by the state and all financially responsible agencies
277.3during calendar years 2011, 2012, 2013, and 2014. For purposes of this calculation,
277.4appropriate expenditures for the financially responsible agencies must include basic and
277.5difficulty of care payments for foster care reduced by federal reimbursements, but not
277.6including any initial clothing allowance, administrative payments to child care agencies
277.7specified in section 317A.907, child care, or other support or ancillary expenditures. For
277.8purposes of this calculation, appropriate expenditures for the state shall include adoption
277.9assistance and relative custody assistance, reduced by federal reimbursements.
277.10(c) For each of the periods January 1, 2015, to June 30, 2016, and fiscal years 2017,
277.112018, and 2019, the commissioner shall adjust this initial percentage of state and local
277.12shares to reflect the relative expenditure trends during calendar years 2011, 2012, 2013, and
277.132014, taking into account appropriations for Northstar Care for Children and the turnover
277.14rates of the components. In making these adjustments, the commissioner's goal shall be to
277.15make these state and local expenditures other than the appropriations for Northstar Care
277.16for Children to be the same as they would have been had Northstar Care for Children not
277.17been implemented, or if that is not possible, proportionally higher or lower, as appropriate.
277.18Except for adjustments so that the costs of the phase-in are borne by the state, the state and
277.19local share percentages for fiscal year 2019 must be used for all subsequent years.

277.20    Sec. 26. Minnesota Statutes 2012, section 257.85, subdivision 11, is amended to read:
277.21    Subd. 11. Financial considerations. (a) Payment of relative custody assistance
277.22under a relative custody assistance agreement is subject to the availability of state funds
277.23and payments may be reduced or suspended on order of the commissioner if insufficient
277.24funds are available.
277.25(b) Upon receipt from a local agency of a claim for reimbursement, the commissioner
277.26shall reimburse the local agency in an amount equal to 100 percent of the relative custody
277.27assistance payments provided to relative custodians. The A local agency may not seek and
277.28the commissioner shall not provide reimbursement for the administrative costs associated
277.29with performing the duties described in subdivision 4.
277.30(c) For the purposes of determining eligibility or payment amounts under MFIP,
277.31relative custody assistance payments shall be excluded in determining the family's
277.32available income.
277.33(d) For expenditures made on or before December 31, 2014, upon receipt from a
277.34local agency of a claim for reimbursement, the commissioner shall reimburse the local
278.1agency in an amount equal to 100 percent of the relative custody assistance payments
278.2provided to relative custodians.
278.3(e) For expenditures made on or after January 1, 2015, upon receipt from a local
278.4agency of a claim for reimbursement, the commissioner shall reimburse the local agency as
278.5part of the Northstar Care for Children fiscal reconciliation process under section 256N.27.

278.6    Sec. 27. Minnesota Statutes 2012, section 260C.212, subdivision 1, is amended to read:
278.7    Subdivision 1. Out-of-home placement; plan. (a) An out-of-home placement plan
278.8shall be prepared within 30 days after any child is placed in foster care by court order or a
278.9voluntary placement agreement between the responsible social services agency and the
278.10child's parent pursuant to section 260C.227 or chapter 260D.
278.11    (b) An out-of-home placement plan means a written document which is prepared
278.12by the responsible social services agency jointly with the parent or parents or guardian
278.13of the child and in consultation with the child's guardian ad litem, the child's tribe, if the
278.14child is an Indian child, the child's foster parent or representative of the foster care facility,
278.15and, where appropriate, the child. For a child in voluntary foster care for treatment under
278.16chapter 260D, preparation of the out-of-home placement plan shall additionally include
278.17the child's mental health treatment provider. As appropriate, the plan shall be:
278.18    (1) submitted to the court for approval under section 260C.178, subdivision 7;
278.19    (2) ordered by the court, either as presented or modified after hearing, under section
278.20260C.178 , subdivision 7, or 260C.201, subdivision 6; and
278.21    (3) signed by the parent or parents or guardian of the child, the child's guardian ad
278.22litem, a representative of the child's tribe, the responsible social services agency, and, if
278.23possible, the child.
278.24    (c) The out-of-home placement plan shall be explained to all persons involved in its
278.25implementation, including the child who has signed the plan, and shall set forth:
278.26    (1) a description of the foster care home or facility selected, including how the
278.27out-of-home placement plan is designed to achieve a safe placement for the child in the
278.28least restrictive, most family-like, setting available which is in close proximity to the home
278.29of the parent or parents or guardian of the child when the case plan goal is reunification,
278.30and how the placement is consistent with the best interests and special needs of the child
278.31according to the factors under subdivision 2, paragraph (b);
278.32    (2) the specific reasons for the placement of the child in foster care, and when
278.33reunification is the plan, a description of the problems or conditions in the home of the
278.34parent or parents which necessitated removal of the child from home and the changes the
278.35parent or parents must make in order for the child to safely return home;
279.1    (3) a description of the services offered and provided to prevent removal of the child
279.2from the home and to reunify the family including:
279.3    (i) the specific actions to be taken by the parent or parents of the child to eliminate
279.4or correct the problems or conditions identified in clause (2), and the time period during
279.5which the actions are to be taken; and
279.6    (ii) the reasonable efforts, or in the case of an Indian child, active efforts to be made
279.7to achieve a safe and stable home for the child including social and other supportive
279.8services to be provided or offered to the parent or parents or guardian of the child, the
279.9child, and the residential facility during the period the child is in the residential facility;
279.10    (4) a description of any services or resources that were requested by the child or the
279.11child's parent, guardian, foster parent, or custodian since the date of the child's placement
279.12in the residential facility, and whether those services or resources were provided and if
279.13not, the basis for the denial of the services or resources;
279.14    (5) the visitation plan for the parent or parents or guardian, other relatives as defined
279.15in section 260C.007, subdivision 27, and siblings of the child if the siblings are not placed
279.16together in foster care, and whether visitation is consistent with the best interest of the
279.17child, during the period the child is in foster care;
279.18    (6) when a child cannot return to or be in the care of either parent, documentation of
279.19steps to finalize the permanency plan for the child, including:
279.20    (i) reasonable efforts to place the child for adoption or legal guardianship of the child
279.21if the court has issued an order terminating the rights of both parents of the child or of the
279.22only known, living parent of the child. At a minimum, the documentation must include
279.23consideration of whether adoption is in the best interests of the child, child-specific
279.24recruitment efforts such as relative search and the use of state, regional, and national
279.25adoption exchanges to facilitate orderly and timely placements in and outside of the state.
279.26A copy of this documentation shall be provided to the court in the review required under
279.27section 260C.317, subdivision 3, paragraph (b); and
279.28    (ii) documentation necessary to support the requirements of the kinship placement
279.29agreement under section 256N.22 when adoption is determined not to be in the child's
279.30best interest;
279.31    (7) efforts to ensure the child's educational stability while in foster care, including:
279.32(i) efforts to ensure that the child remains in the same school in which the child was
279.33enrolled prior to placement or upon the child's move from one placement to another,
279.34including efforts to work with the local education authorities to ensure the child's
279.35educational stability; or
280.1(ii) if it is not in the child's best interest to remain in the same school that the child
280.2was enrolled in prior to placement or move from one placement to another, efforts to
280.3ensure immediate and appropriate enrollment for the child in a new school;
280.4(8) the educational records of the child including the most recent information
280.5available regarding:
280.6    (i) the names and addresses of the child's educational providers;
280.7    (ii) the child's grade level performance;
280.8    (iii) the child's school record;
280.9    (iv) a statement about how the child's placement in foster care takes into account
280.10proximity to the school in which the child is enrolled at the time of placement; and
280.11(v) any other relevant educational information;
280.12    (9) the efforts by the local agency to ensure the oversight and continuity of health
280.13care services for the foster child, including:
280.14(i) the plan to schedule the child's initial health screens;
280.15(ii) how the child's known medical problems and identified needs from the screens,
280.16including any known communicable diseases, as defined in section 144.4172, subdivision
280.172, will be monitored and treated while the child is in foster care;
280.18(iii) how the child's medical information will be updated and shared, including
280.19the child's immunizations;
280.20(iv) who is responsible to coordinate and respond to the child's health care needs,
280.21including the role of the parent, the agency, and the foster parent;
280.22(v) who is responsible for oversight of the child's prescription medications;
280.23(vi) how physicians or other appropriate medical and nonmedical professionals
280.24will be consulted and involved in assessing the health and well-being of the child and
280.25determine the appropriate medical treatment for the child; and
280.26(vii) the responsibility to ensure that the child has access to medical care through
280.27either medical insurance or medical assistance;
280.28(10) the health records of the child including information available regarding:
280.29(i) the names and addresses of the child's health care and dental care providers;
280.30(ii) a record of the child's immunizations;
280.31(iii) the child's known medical problems, including any known communicable
280.32diseases as defined in section 144.4172, subdivision 2;
280.33(iv) the child's medications; and
280.34(v) any other relevant health care information such as the child's eligibility for
280.35medical insurance or medical assistance;
281.1(11) an independent living plan for a child age 16 or older. The plan should include,
281.2but not be limited to, the following objectives:
281.3    (i) educational, vocational, or employment planning;
281.4    (ii) health care planning and medical coverage;
281.5    (iii) transportation including, where appropriate, assisting the child in obtaining a
281.6driver's license;
281.7    (iv) money management, including the responsibility of the agency to ensure that
281.8the youth annually receives, at no cost to the youth, a consumer report as defined under
281.9section 13C.001 and assistance in interpreting and resolving any inaccuracies in the report;
281.10    (v) planning for housing;
281.11    (vi) social and recreational skills; and
281.12    (vii) establishing and maintaining connections with the child's family and
281.13community; and
281.14    (12) for a child in voluntary foster care for treatment under chapter 260D, diagnostic
281.15and assessment information, specific services relating to meeting the mental health care
281.16needs of the child, and treatment outcomes.
281.17    (d) The parent or parents or guardian and the child each shall have the right to legal
281.18counsel in the preparation of the case plan and shall be informed of the right at the time
281.19of placement of the child. The child shall also have the right to a guardian ad litem.
281.20If unable to employ counsel from their own resources, the court shall appoint counsel
281.21upon the request of the parent or parents or the child or the child's legal guardian. The
281.22parent or parents may also receive assistance from any person or social services agency
281.23in preparation of the case plan.
281.24    After the plan has been agreed upon by the parties involved or approved or ordered
281.25by the court, the foster parents shall be fully informed of the provisions of the case plan
281.26and shall be provided a copy of the plan.
281.27    Upon discharge from foster care, the parent, adoptive parent, or permanent legal and
281.28physical custodian, as appropriate, and the child, if appropriate, must be provided with
281.29a current copy of the child's health and education record.

281.30    Sec. 28. Minnesota Statutes 2012, section 260C.515, subdivision 4, is amended to read:
281.31    Subd. 4. Custody to relative. The court may order permanent legal and physical
281.32custody to a fit and willing relative in the best interests of the child according to the
281.33following conditions requirements:
282.1(1) an order for transfer of permanent legal and physical custody to a relative shall
282.2only be made after the court has reviewed the suitability of the prospective legal and
282.3physical custodian;
282.4(2) in transferring permanent legal and physical custody to a relative, the juvenile
282.5court shall follow the standards applicable under this chapter and chapter 260, and the
282.6procedures in the Minnesota Rules of Juvenile Protection Procedure;
282.7(3) a transfer of legal and physical custody includes responsibility for the protection,
282.8education, care, and control of the child and decision making on behalf of the child;
282.9(4) a permanent legal and physical custodian may not return a child to the permanent
282.10care of a parent from whom the court removed custody without the court's approval and
282.11without notice to the responsible social services agency;
282.12(5) the social services agency may file a petition naming a fit and willing relative as
282.13a proposed permanent legal and physical custodian. A petition for transfer of permanent
282.14legal and physical custody to a relative who is not a parent shall be accompanied by a
282.15kinship placement agreement under section 256N.22, subdivision 2, between the agency
282.16and proposed permanent legal and physical custodian;
282.17(6) another party to the permanency proceeding regarding the child may file a
282.18petition to transfer permanent legal and physical custody to a relative, but the. The petition
282.19must include facts upon which the court can make the determination required under clause
282.20(7) and must be filed not later than the date for the required admit-deny hearing under
282.21section 260C.507; or if the agency's petition is filed under section 260C.503, subdivision
282.222 , the petition must be filed not later than 30 days prior to the trial required under section
282.23260C.509 ; and
282.24(7) where a petition is for transfer of permanent legal and physical custody to a
282.25relative who is not a parent, the court must find that:
282.26(i) transfer of permanent legal and physical custody and receipt of Northstar kinship
282.27assistance under chapter 256N, when requested and the child is eligible, is in the child's
282.28best interests;
282.29(ii) adoption is not in the child's best interests based on the determinations in the
282.30kinship placement agreement required under section 256N.22, subdivision 2;
282.31(iii) the agency made efforts to discuss adoption with the child's parent or parents,
282.32or the agency did not make efforts to discuss adoption and the reasons why efforts were
282.33not made; and
282.34(iv) there are reasons to separate siblings during placement, if applicable;
282.35(8) the court may finalize a permanent transfer of physical legal custody to a relative
282.36regardless of eligibility for Northstar kinship assistance under chapter 256N;
283.1(9) the court may defer finalization of an order transferring permanent legal and
283.2physical custody to a relative when deferring finalization is necessary to determine
283.3eligibility for Northstar kinship assistance under chapter 256N; and
283.4(7) (10) the juvenile court may maintain jurisdiction over the responsible social
283.5services agency, the parents or guardian of the child, the child, and the permanent legal
283.6and physical custodian for purposes of ensuring appropriate services are delivered to the
283.7child and permanent legal custodian for the purpose of ensuring conditions ordered by the
283.8court related to the care and custody of the child are met.

283.9    Sec. 29. Minnesota Statutes 2012, section 260C.611, is amended to read:
283.10260C.611 ADOPTION STUDY REQUIRED.
283.11(a) An adoption study under section 259.41 approving placement of the child in the
283.12home of the prospective adoptive parent shall be completed before placing any child under
283.13the guardianship of the commissioner in a home for adoption. If a prospective adoptive
283.14parent has a current child foster care license under chapter 245A and is seeking to adopt
283.15a foster child who is placed in the prospective adoptive parent's home and is under the
283.16guardianship of the commissioner according to section 260C.325, subdivision 1, the child
283.17foster care home study meets the requirements of this section for an approved adoption
283.18home study if:
283.19(1) the written home study on which the foster care license was based is completed
283.20in the commissioner's designated format, consistent with the requirements in sections
283.21260C.215, subdivision 4, clause (5); and 259.41, subdivision 2; and Minnesota Rules,
283.22part 2960.3060, subpart 4;
283.23(2) the background studies on each prospective adoptive parent and all required
283.24household members were completed according to section 245C.33;
283.25(3) the commissioner has not issued, within the last three years, a sanction on the
283.26license under section 245A.07 or an order of a conditional license under section 245A.06;
283.27and
283.28(4) the legally responsible agency determines that the individual needs of the child
283.29are being met by the prospective adoptive parent through an assessment under section
283.30256N.24, subdivision 2, or a documented placement decision consistent with section
283.31260C.212, subdivision 2.
283.32(b) If a prospective adoptive parent has previously held a foster care license or
283.33adoptive home study, any update necessary to the foster care license, or updated or new
283.34adoptive home study, if not completed by the licensing authority responsible for the
284.1previous license or home study, shall include collateral information from the previous
284.2licensing or approving agency, if available.

284.3    Sec. 30. PARENT AWARE QUALITY RATING AND IMPROVEMENT
284.4SYSTEM ACCESSIBILITY REPORT.
284.5    Subdivision 1. Recommendations. The commissioner of human services, in
284.6consultation with representatives from the child care and early childhood advocacy
284.7community, child care provider organizations, child care providers, organizations
284.8administering Parent Aware, the Departments of Education and Health, counties, and
284.9parents, shall make recommendations to the members of the legislative committees having
284.10jurisdiction over health and human services provisions and funding on increasing statewide
284.11accessibility for child care providers to the Parent Aware quality rating and improvement
284.12system and for increasing access to Parent Aware-rated programs for families with
284.13children. The recommendations must address the following factors impacting accessibility:
284.14(1) availability of rated and nonrated programs by child care provider type, within
284.15rural and underserved areas, and for different cultural and non-English-speaking groups;
284.16(2) time and resources necessary for child care providers to participate in Parent
284.17Aware at various rating levels, including cultural and linguistic considerations;
284.18(3) federal child care development fund regulations; and
284.19(4) other factors as determined by the commissioner.
284.20    Subd. 2. Report. By February 15, 2015, the commissioner of human services
284.21shall report to the legislative committees with jurisdiction over the child care
284.22assistance programs and the Parent Aware quality rating and improvement system with
284.23recommendations to increase access for families and child care providers to Parent Aware,
284.24including benchmarks for achieving the maximum participation in Parent Aware-rated
284.25child care programs by families receiving child care assistance.
284.26EFFECTIVE DATE.This section is effective the day following final enactment.

284.27    Sec. 31. REVISOR'S INSTRUCTION.
284.28The revisor of statutes shall change the term "guardianship assistance" to "Northstar
284.29kinship assistance" wherever it appears in Minnesota Statutes and Minnesota Rules to
284.30refer to the program components related to Northstar Care for Children under Minnesota
284.31Statutes, chapter 256N.

284.32    Sec. 32. REPEALER.
284.33Minnesota Statutes 2013 Supplement, section 256N.26, subdivision 7, is repealed.

285.1ARTICLE 17

285.2COMMUNITY FIRST SERVICES AND SUPPORTS

285.3    Section 1. Minnesota Statutes 2012, section 245C.03, is amended by adding a
285.4subdivision to read:
285.5    Subd. 8. Community first services and supports organizations. The
285.6commissioner shall conduct background studies on any individual required under section
285.7256B.85 to have a background study completed under this chapter.

285.8    Sec. 2. Minnesota Statutes 2012, section 245C.04, is amended by adding a subdivision
285.9to read:
285.10    Subd. 7. Community first services and supports organizations. (a) The
285.11commissioner shall conduct a background study of an individual required to be studied
285.12under section 245C.03, subdivision 8, at least upon application for initial enrollment
285.13under section 256B.85.
285.14(b) Before an individual described in section 245C.03, subdivision 8, begins a
285.15position allowing direct contact with a person served by an organization required to initiate
285.16a background study under section 256B.85, the organization must receive a notice from
285.17the commissioner that the support worker is:
285.18(1) not disqualified under section 245C.14; or
285.19(2) disqualified, but the individual has received a set-aside of the disqualification
285.20under section 245C.22.

285.21    Sec. 3. Minnesota Statutes 2012, section 245C.10, is amended by adding a subdivision
285.22to read:
285.23    Subd. 10. Community first services and supports organizations. The
285.24commissioner shall recover the cost of background studies initiated by an agency-provider
285.25delivering services under section 256B.85, subdivision 11, or a financial management
285.26services contractor providing service functions under section 256B.85, subdivision 13,
285.27through a fee of no more than $20 per study, charged to the organization responsible for
285.28submitting the background study form. The fees collected under this subdivision are
285.29appropriated to the commissioner for the purpose of conducting background studies.

285.30    Sec. 4. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 2, is
285.31amended to read:
286.1    Subd. 2. Definitions. (a) For the purposes of this section, the terms defined in
286.2this subdivision have the meanings given.
286.3(b) "Activities of daily living" or "ADLs" means eating, toileting, grooming,
286.4dressing, bathing, mobility, positioning, and transferring.
286.5(c) "Agency-provider model" means a method of CFSS under which a qualified
286.6agency provides services and supports through the agency's own employees and policies.
286.7The agency must allow the participant to have a significant role in the selection and
286.8dismissal of support workers of their choice for the delivery of their specific services
286.9and supports.
286.10(d) "Behavior" means a description of a need for services and supports used to
286.11determine the home care rating and additional service units. The presence of Level I
286.12behavior is used to determine the home care rating. "Level I behavior" means physical
286.13aggression towards self or others or destruction of property that requires the immediate
286.14response of another person. If qualified for a home care rating as described in subdivision
286.158, additional service units can be added as described in subdivision 8, paragraph (f), for
286.16the following behaviors:
286.17(1) Level I behavior;
286.18(2) increased vulnerability due to cognitive deficits or socially inappropriate
286.19behavior; or
286.20(3) increased need for assistance for recipients participants who are verbally
286.21aggressive or resistive to care so that time needed to perform activities of daily living is
286.22increased.
286.23(e) "Budget model" means a service delivery method of CFSS that allows the use of
286.24a service budget and assistance from a financial management services (FMS) contractor
286.25for a participant to directly employ support workers and purchase supports and goods.
286.26(e) (f) "Complex health-related needs" means an intervention listed in clauses (1)
286.27to (8) that has been ordered by a physician, and is specified in a community support
286.28plan, including:
286.29(1) tube feedings requiring:
286.30(i) a gastrojejunostomy tube; or
286.31(ii) continuous tube feeding lasting longer than 12 hours per day;
286.32(2) wounds described as:
286.33(i) stage III or stage IV;
286.34(ii) multiple wounds;
286.35(iii) requiring sterile or clean dressing changes or a wound vac; or
287.1(iv) open lesions such as burns, fistulas, tube sites, or ostomy sites that require
287.2specialized care;
287.3(3) parenteral therapy described as:
287.4(i) IV therapy more than two times per week lasting longer than four hours for
287.5each treatment; or
287.6(ii) total parenteral nutrition (TPN) daily;
287.7(4) respiratory interventions, including:
287.8(i) oxygen required more than eight hours per day;
287.9(ii) respiratory vest more than one time per day;
287.10(iii) bronchial drainage treatments more than two times per day;
287.11(iv) sterile or clean suctioning more than six times per day;
287.12(v) dependence on another to apply respiratory ventilation augmentation devices
287.13such as BiPAP and CPAP; and
287.14(vi) ventilator dependence under section 256B.0652;
287.15(5) insertion and maintenance of catheter, including:
287.16(i) sterile catheter changes more than one time per month;
287.17(ii) clean intermittent catheterization, and including self-catheterization more than
287.18six times per day; or
287.19(iii) bladder irrigations;
287.20(6) bowel program more than two times per week requiring more than 30 minutes to
287.21perform each time;
287.22(7) neurological intervention, including:
287.23(i) seizures more than two times per week and requiring significant physical
287.24assistance to maintain safety; or
287.25(ii) swallowing disorders diagnosed by a physician and requiring specialized
287.26assistance from another on a daily basis; and
287.27(8) other congenital or acquired diseases creating a need for significantly increased
287.28direct hands-on assistance and interventions in six to eight activities of daily living.
287.29(f) (g) "Community first services and supports" or "CFSS" means the assistance and
287.30supports program under this section needed for accomplishing activities of daily living,
287.31instrumental activities of daily living, and health-related tasks through hands-on assistance
287.32to accomplish the task or constant supervision and cueing to accomplish the task, or the
287.33purchase of goods as defined in subdivision 7, paragraph (a), clause (3), that replace
287.34the need for human assistance.
287.35(g) (h) "Community first services and supports service delivery plan" or "service
287.36delivery plan" means a written summary of document detailing the services and supports
288.1chosen by the participant to meet assessed needs that is are within the approved CFSS
288.2service authorization amount. Services and supports are based on the community support
288.3plan identified in section 256B.0911 and coordinated services and support plan and budget
288.4identified in section 256B.0915, subdivision 6, if applicable, that is determined by the
288.5participant to meet the assessed needs, using a person-centered planning process.
288.6(i) "Consultation services" means a Minnesota health care program enrolled provider
288.7organization that is under contract with the department and has the knowledge, skills,
288.8and ability to assist CFSS participants in using either the agency-provider model under
288.9subdivision 11 or the budget model under subdivision 13.
288.10(h) (j) "Critical activities of daily living" means transferring, mobility, eating, and
288.11toileting.
288.12(i) (k) "Dependency" in activities of daily living means a person requires hands-on
288.13assistance or constant supervision and cueing to accomplish one or more of the activities
288.14of daily living every day or on the days during the week that the activity is performed;
288.15however, a child may not be found to be dependent in an activity of daily living if,
288.16because of the child's age, an adult would either perform the activity for the child or assist
288.17the child with the activity and the assistance needed is the assistance appropriate for
288.18a typical child of the same age.
288.19(j) (l) "Extended CFSS" means CFSS services and supports under the
288.20 agency-provider model included in a service plan through one of the home and
288.21community-based services waivers and as approved and authorized under sections
288.22256B.0915 ; 256B.092, subdivision 5; and 256B.49, which exceed the amount, duration,
288.23and frequency of the state plan CFSS services for participants.
288.24(k) (m) "Financial management services contractor or vendor" or "FMS contractor"
288.25 means a qualified organization having required for participants using the budget model
288.26under subdivision 13 that has a written contract with the department to provide vendor
288.27fiscal/employer agent financial management services necessary to use the budget model
288.28under subdivision 13 that (FMS). Services include but are not limited to: participant
288.29education and technical assistance; CFSS service delivery planning and budgeting;
288.30 filing and payment of federal and state payroll taxes on behalf of the participant;
288.31initiating criminal background checks; billing, making payments, and for approved CFSS
288.32services with authorized funds; monitoring of spending expenditures; accounting for
288.33and disbursing CFSS funds; providing assistance in obtaining and filing for liability,
288.34workers' compensation, and unemployment coverage; and assisting providing participant
288.35instruction and technical assistance to the participant in fulfilling employer-related
288.36requirements in accordance with Section 3504 of the Internal Revenue Code and the
289.1Internal Revenue Service Revenue Procedure 70-6 related regulations and interpretations,
289.2including Code of Federal Regulations, title 26, section 31.3504-1.
289.3(l) "Budget model" means a service delivery method of CFSS that allows the use of
289.4an individualized CFSS service delivery plan and service budget and provides assistance
289.5from the financial management services contractor to facilitate participant employment of
289.6support workers and the acquisition of supports and goods.
289.7(m) (n) "Health-related procedures and tasks" means procedures and tasks related
289.8to the specific needs of an individual that can be delegated taught or assigned by a
289.9state-licensed healthcare or mental health professional and performed by a support worker.
289.10(n) (o) "Instrumental activities of daily living" means activities related to
289.11living independently in the community, including but not limited to: meal planning,
289.12preparation, and cooking; shopping for food, clothing, or other essential items; laundry;
289.13housecleaning; assistance with medications; managing finances; communicating needs
289.14and preferences during activities; arranging supports; and assistance with traveling around
289.15and participating in the community.
289.16(o) (p) "Legal representative" means parent of a minor, a court-appointed guardian,
289.17or another representative with legal authority to make decisions about services and
289.18supports for the participant. Other representatives with legal authority to make decisions
289.19include but are not limited to a health care agent or an attorney-in-fact authorized through
289.20a health care directive or power of attorney.
289.21(p) (q) "Medication assistance" means providing verbal or visual reminders to take
289.22regularly scheduled medication, and includes any of the following supports listed in clauses
289.23(1) to (3) and other types of assistance, except that a support worker may not determine
289.24medication dose or time for medication or inject medications into veins, muscles, or skin:
289.25(1) under the direction of the participant or the participant's representative, bringing
289.26medications to the participant including medications given through a nebulizer, opening a
289.27container of previously set-up medications, emptying the container into the participant's
289.28hand, opening and giving the medication in the original container to the participant, or
289.29bringing to the participant liquids or food to accompany the medication;
289.30(2) organizing medications as directed by the participant or the participant's
289.31representative; and
289.32(3) providing verbal or visual reminders to perform regularly scheduled medications.
289.33(q) (r) "Participant's representative" means a parent, family member, advocate,
289.34or other adult authorized by the participant to serve as a representative in connection
289.35with the provision of CFSS. This authorization must be in writing or by another method
289.36that clearly indicates the participant's free choice. The participant's representative must
290.1have no financial interest in the provision of any services included in the participant's
290.2service delivery plan and must be capable of providing the support necessary to assist
290.3the participant in the use of CFSS. If through the assessment process described in
290.4subdivision 5 a participant is determined to be in need of a participant's representative, one
290.5must be selected. If the participant is unable to assist in the selection of a participant's
290.6representative, the legal representative shall appoint one. Two persons may be designated
290.7as a participant's representative for reasons such as divided households and court-ordered
290.8custodies. Duties of a participant's representatives may include:
290.9(1) being available while care is services are provided in a method agreed upon by
290.10the participant or the participant's legal representative and documented in the participant's
290.11CFSS service delivery plan;
290.12(2) monitoring CFSS services to ensure the participant's CFSS service delivery
290.13plan is being followed; and
290.14(3) reviewing and signing CFSS time sheets after services are provided to provide
290.15verification of the CFSS services.
290.16(r) (s) "Person-centered planning process" means a process that is directed by the
290.17participant to plan for services and supports. The person-centered planning process must:
290.18(1) include people chosen by the participant;
290.19(2) provide necessary information and support to ensure that the participant directs
290.20the process to the maximum extent possible, and is enabled to make informed choices
290.21and decisions;
290.22(3) be timely and occur at time and locations of convenience to the participant;
290.23(4) reflect cultural considerations of the participant;
290.24(5) include strategies for solving conflict or disagreement within the process,
290.25including clear conflict-of-interest guidelines for all planning;
290.26(6) provide the participant choices of the services and supports they receive and the
290.27staff providing those services and supports;
290.28(7) include a method for the participant to request updates to the plan; and
290.29(8) record the alternative home and community-based settings that were considered
290.30by the participant.
290.31(s) (t) "Shared services" means the provision of CFSS services by the same CFSS
290.32support worker to two or three participants who voluntarily enter into an agreement to
290.33receive services at the same time and in the same setting by the same provider employer.
290.34(t) "Support specialist" means a professional with the skills and ability to assist the
290.35participant using either the agency-provider model under subdivision 11 or the flexible
291.1spending model under subdivision 13, in services including but not limited to assistance
291.2regarding:
291.3(1) the development, implementation, and evaluation of the CFSS service delivery
291.4plan under subdivision 6;
291.5(2) recruitment, training, or supervision, including supervision of health-related tasks
291.6or behavioral supports appropriately delegated or assigned by a health care professional,
291.7and evaluation of support workers; and
291.8(3) facilitating the use of informal and community supports, goods, or resources.
291.9(u) "Support worker" means an a qualified and trained employee of the agency
291.10provider agency-provider or of the participant employer under the budget model who
291.11has direct contact with the participant and provides services as specified within the
291.12participant's service delivery plan.
291.13(v) "Wages and benefits" means the hourly wages and salaries, the employer's
291.14share of FICA taxes, Medicare taxes, state and federal unemployment taxes, workers'
291.15compensation, mileage reimbursement, health and dental insurance, life insurance,
291.16disability insurance, long-term care insurance, uniform allowance, contributions to
291.17employee retirement accounts, or other forms of employee compensation and benefits.
291.18(w) "Worker training and development" means services for developing workers'
291.19skills as required by the participant's individual CFSS delivery plan that are arranged for
291.20or provided by the agency-provider or purchased by the participant employer. These
291.21services include training, education, direct observation and supervision, and evaluation
291.22and coaching of job skills and tasks, including supervision of health-related tasks or
291.23behavioral supports.

291.24    Sec. 5. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 3, is
291.25amended to read:
291.26    Subd. 3. Eligibility. (a) CFSS is available to a person who meets one of the
291.27following:
291.28(1) is a recipient an enrollee of medical assistance as determined under section
291.29256B.055 , 256B.056, or 256B.057, subdivisions 5 and 9;
291.30(2) is a recipient of participant in the alternative care program under section
291.31256B.0913 ;
291.32(3) is a waiver recipient participant as defined under section 256B.0915, 256B.092,
291.33256B.093 , or 256B.49; or
291.34(4) has medical services identified in a participant's individualized education
291.35program and is eligible for services as determined in section 256B.0625, subdivision 26.
292.1(b) In addition to meeting the eligibility criteria in paragraph (a), a person must also
292.2meet all of the following:
292.3(1) require assistance and be determined dependent in one activity of daily living or
292.4Level I behavior based on assessment under section 256B.0911; and
292.5(2) is not a recipient of participant under a family support grant under section 252.32;.
292.6(3) lives in the person's own apartment or home including a family foster care setting
292.7licensed under chapter 245A, but not in corporate foster care under chapter 245A; or a
292.8noncertified boarding care home or a boarding and lodging establishment under chapter
292.9157.

292.10    Sec. 6. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 5, is
292.11amended to read:
292.12    Subd. 5. Assessment requirements. (a) The assessment of functional need must:
292.13(1) be conducted by a certified assessor according to the criteria established in
292.14section 256B.0911, subdivision 3a;
292.15(2) be conducted face-to-face, initially and at least annually thereafter, or when there
292.16is a significant change in the participant's condition or a change in the need for services
292.17and supports, or at the request of the participant when the participant experiences a change
292.18in condition or needs a change in the services or supports; and
292.19(3) be completed using the format established by the commissioner.
292.20(b) A participant who is residing in a facility may be assessed and choose CFSS for
292.21the purpose of using CFSS to return to the community as described in subdivisions 3
292.22and 7, paragraph (a), clause (5).
292.23(c) (b) The results of the assessment and any recommendations and authorizations
292.24for CFSS must be determined and communicated in writing by the lead agency's certified
292.25assessor as defined in section 256B.0911 to the participant and the agency-provider or
292.26financial management services provider FMS contractor chosen by the participant within
292.2740 calendar days and must include the participant's right to appeal under section 256.045,
292.28subdivision 3 .
292.29(d) (c) The lead agency assessor may request authorize a temporary authorization
292.30for CFSS services to be provided under the agency-provider model. Authorization for
292.31a temporary level of CFSS services under the agency-provider model is limited to the
292.32time specified by the commissioner, but shall not exceed 45 days. The level of services
292.33authorized under this provision paragraph shall have no bearing on a future authorization.
292.34 Upon expiration of the temporary authorization, the participant shall access the
292.35consultation service to complete their initial orientation and selection of a service model.

293.1    Sec. 7. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 6, is
293.2amended to read:
293.3    Subd. 6. Community first services and support service delivery plan. (a) The
293.4CFSS service delivery plan must be developed, implemented, and evaluated through a
293.5person-centered planning process by the participant, or the participant's representative
293.6or legal representative who may be assisted by a support specialist consultation services
293.7provider. The CFSS service delivery plan must reflect the services and supports that
293.8are important to the participant and for the participant to meet the needs assessed
293.9by the certified assessor and identified in the community support plan under section
293.10256B.0911, subdivision 3 , or the coordinated services and support plan identified in
293.11section 256B.0915, subdivision 6, if applicable. The CFSS service delivery plan must be
293.12reviewed by the participant, the consultation services provider, and the agency-provider
293.13or financial management services FMS contractor prior to starting services and at least
293.14annually upon reassessment, or when there is a significant change in the participant's
293.15condition, or a change in the need for services and supports.
293.16(b) The commissioner shall establish the format and criteria for the CFSS service
293.17delivery plan.
293.18(c) The CFSS service delivery plan must be person-centered and:
293.19(1) specify the consultation services provider, agency-provider, or financial
293.20management services FMS contractor selected by the participant;
293.21(2) reflect the setting in which the participant resides that is chosen by the participant;
293.22(3) reflect the participant's strengths and preferences;
293.23(4) include the means to address the clinical and support needs as identified through
293.24an assessment of functional needs;
293.25(5) include individually identified goals and desired outcomes;
293.26(6) reflect the services and supports, paid and unpaid, that will assist the participant
293.27to achieve identified goals, including the costs of the services and supports, and the
293.28providers of those services and supports, including natural supports;
293.29(7) identify the amount and frequency of face-to-face supports and amount and
293.30frequency of remote supports and technology that will be used;
293.31(8) identify risk factors and measures in place to minimize them, including
293.32individualized backup plans;
293.33(9) be understandable to the participant and the individuals providing support;
293.34(10) identify the individual or entity responsible for monitoring the plan;
293.35(11) be finalized and agreed to in writing by the participant and signed by all
293.36individuals and providers responsible for its implementation;
294.1(12) be distributed to the participant and other people involved in the plan; and
294.2(13) prevent the provision of unnecessary or inappropriate care.;
294.3(14) include a detailed budget for expenditures for budget model participants or
294.4participants under the agency-provider model if purchasing goods; and
294.5(15) include a plan for worker training and development detailing what service
294.6components will be used, when the service components will be used, how they will be
294.7provided, and how these service components relate to the participant's individual needs
294.8and CFSS support worker services.
294.9(d) The total units of agency-provider services or the service budget allocation
294.10 amount for the budget model include both annual totals and a monthly average amount
294.11that cover the number of months of the service authorization. The amount used each
294.12month may vary, but additional funds must not be provided above the annual service
294.13authorization amount unless a change in condition is assessed and authorized by the
294.14certified assessor and documented in the community support plan, coordinated services
294.15and supports plan, and CFSS service delivery plan.
294.16(e) In assisting with the development or modification of the plan during the
294.17authorization time period, the consultation services provider shall:
294.18(1) consult with the FMS contractor on the spending budget when applicable; and
294.19(2) consult with the participant or participant's representative, agency-provider, and
294.20case manager/care coordinator.
294.21(f) The service plan must be approved by the consultation services provider for
294.22participants without a case manager/care coordinator. A case manager/care coordinator
294.23must approve the plan for a waiver or alternative care program participant.

294.24    Sec. 8. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 7, is
294.25amended to read:
294.26    Subd. 7. Community first services and supports; covered services. Within the
294.27service unit authorization or service budget allocation amount, services and supports
294.28covered under CFSS include:
294.29(1) assistance to accomplish activities of daily living (ADLs), instrumental activities
294.30of daily living (IADLs), and health-related procedures and tasks through hands-on
294.31assistance to accomplish the task or constant supervision and cueing to accomplish the task;
294.32(2) assistance to acquire, maintain, or enhance the skills necessary for the participant
294.33to accomplish activities of daily living, instrumental activities of daily living, or
294.34health-related tasks;
295.1(3) expenditures for items, services, supports, environmental modifications, or
295.2goods, including assistive technology. These expenditures must:
295.3(i) relate to a need identified in a participant's CFSS service delivery plan;
295.4(ii) increase independence or substitute for human assistance to the extent that
295.5expenditures would otherwise be made for human assistance for the participant's assessed
295.6needs;
295.7(4) observation and redirection for behavior or symptoms where there is a need for
295.8assistance. An assessment of behaviors must meet the criteria in this clause. A recipient
295.9 participant qualifies as having a need for assistance due to behaviors if the recipient's
295.10 participant's behavior requires assistance at least four times per week and shows one or
295.11more of the following behaviors:
295.12(i) physical aggression towards self or others, or destruction of property that requires
295.13the immediate response of another person;
295.14(ii) increased vulnerability due to cognitive deficits or socially inappropriate
295.15behavior; or
295.16(iii) increased need for assistance for recipients participants who are verbally
295.17aggressive or resistive to care so that time needed to perform activities of daily living is
295.18increased;
295.19(5) back-up systems or mechanisms, such as the use of pagers or other electronic
295.20devices, to ensure continuity of the participant's services and supports;
295.21(6) transition costs, including:
295.22(i) deposits for rent and utilities;
295.23(ii) first month's rent and utilities;
295.24(iii) bedding;
295.25(iv) basic kitchen supplies;
295.26(v) other necessities, to the extent that these necessities are not otherwise covered
295.27under any other funding that the participant is eligible to receive; and
295.28(vi) other required necessities for an individual to make the transition from a nursing
295.29facility, institution for mental diseases, or intermediate care facility for persons with
295.30developmental disabilities to a community-based home setting where the participant
295.31resides; and
295.32(7) (6) services provided by a support specialist consultation services provider under
295.33contract with the department and enrolled as a Minnesota health care program provider as
295.34 defined under subdivision 2 that are chosen by the participant. 17;
295.35(7) services provided by an FMS contractor under contract with the department
295.36as defined under subdivision 13;
296.1(8) CFSS services provided by a qualified support worker who is a parent, stepparent,
296.2or legal guardian of a participant under age 18, or who is the participant's spouse. These
296.3support workers shall not provide any medical assistance home and community-based
296.4services in excess of 40 hours per seven-day period regardless of the number of parents,
296.5combination of parents and spouses, or number of children who receive medical assistance
296.6services; and
296.7(9) worker training and development services as defined in subdivision 2, paragraph
296.8(w), and described in subdivision 18a.

296.9    Sec. 9. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 8, is
296.10amended to read:
296.11    Subd. 8. Determination of CFSS service methodology. (a) All community first
296.12services and supports must be authorized by the commissioner or the commissioner's
296.13designee before services begin, except for the assessments established in section
296.14256B.0911 . The authorization for CFSS must be completed as soon as possible following
296.15an assessment but no later than 40 calendar days from the date of the assessment.
296.16(b) The amount of CFSS authorized must be based on the recipient's participant's
296.17 home care rating described in paragraphs (d) and (e) and any additional service units for
296.18which the person participant qualifies as described in paragraph (f).
296.19(c) The home care rating shall be determined by the commissioner or the
296.20commissioner's designee based on information submitted to the commissioner identifying
296.21the following for a recipient participant:
296.22(1) the total number of dependencies of activities of daily living as defined in
296.23subdivision 2, paragraph (b);
296.24(2) the presence of complex health-related needs as defined in subdivision 2,
296.25paragraph (e); and
296.26(3) the presence of Level I behavior as defined in subdivision 2, paragraph (d),
296.27clause (1).
296.28(d) The methodology to determine the total service units for CFSS for each home
296.29care rating is based on the median paid units per day for each home care rating from
296.30fiscal year 2007 data for the PCA program.
296.31(e) Each home care rating is designated by the letters P through Z and EN and has
296.32the following base number of service units assigned:
296.33(1) P home care rating requires Level I behavior or one to three dependencies in
296.34ADLs and qualifies one for five service units;
297.1(2) Q home care rating requires Level I behavior and one to three dependencies in
297.2ADLs and qualifies one for six service units;
297.3(3) R home care rating requires a complex health-related need and one to three
297.4dependencies in ADLs and qualifies one for seven service units;
297.5(4) S home care rating requires four to six dependencies in ADLs and qualifies
297.6one for ten service units;
297.7(5) T home care rating requires four to six dependencies in ADLs and Level I
297.8behavior and qualifies one for 11 service units;
297.9(6) U home care rating requires four to six dependencies in ADLs and a complex
297.10health-related need and qualifies one for 14 service units;
297.11(7) V home care rating requires seven to eight dependencies in ADLs and qualifies
297.12one for 17 service units;
297.13(8) W home care rating requires seven to eight dependencies in ADLs and Level I
297.14behavior and qualifies one for 20 service units;
297.15(9) Z home care rating requires seven to eight dependencies in ADLs and a complex
297.16health-related need and qualifies one for 30 service units; and
297.17(10) EN home care rating includes ventilator dependency as defined in section
297.18256B.0651, subdivision 1 , paragraph (g). Recipients Participants who meet the definition
297.19of ventilator-dependent and the EN home care rating and utilize a combination of CFSS
297.20and other home care home-care services are limited to a total of 96 service units per day
297.21for those services in combination. Additional units may be authorized when a recipient's
297.22 participant's assessment indicates a need for two staff to perform activities. Additional
297.23time is limited to 16 service units per day.
297.24(f) Additional service units are provided through the assessment and identification of
297.25the following:
297.26(1) 30 additional minutes per day for a dependency in each critical activity of daily
297.27living as defined in subdivision 2, paragraph (h) (j);
297.28(2) 30 additional minutes per day for each complex health-related function as
297.29defined in subdivision 2, paragraph (e) (f); and
297.30(3) 30 additional minutes per day for each behavior issue as defined in subdivision 2,
297.31paragraph (d).
297.32(g) The service budget for budget model participants shall be based on:
297.33(1) assessed units as determined by the home care rating; and
297.34(2) an adjustment needed for administrative expenses.

298.1    Sec. 10. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 9, is
298.2amended to read:
298.3    Subd. 9. Noncovered services. (a) Services or supports that are not eligible for
298.4payment under this section include those that:
298.5(1) are not authorized by the certified assessor or included in the written service
298.6delivery plan;
298.7(2) are provided prior to the authorization of services and the approval of the written
298.8CFSS service delivery plan;
298.9(3) are duplicative of other paid services in the written service delivery plan;
298.10(4) supplant natural unpaid supports that appropriately meet a need in the service
298.11plan, are provided voluntarily to the participant, and are selected by the participant in lieu
298.12of other services and supports;
298.13(5) are not effective means to meet the participant's needs; and
298.14(6) are available through other funding sources, including, but not limited to, funding
298.15through title IV-E of the Social Security Act.
298.16(b) Additional services, goods, or supports that are not covered include:
298.17(1) those that are not for the direct benefit of the participant, except that services for
298.18caregivers such as training to improve the ability to provide CFSS are considered to directly
298.19benefit the participant if chosen by the participant and approved in the support plan;
298.20(2) any fees incurred by the participant, such as Minnesota health care programs fees
298.21and co-pays, legal fees, or costs related to advocate agencies;
298.22(3) insurance, except for insurance costs related to employee coverage;
298.23(4) room and board costs for the participant with the exception of allowable
298.24transition costs in subdivision 7, clause (6);
298.25(5) services, supports, or goods that are not related to the assessed needs;
298.26(6) special education and related services provided under the Individuals with
298.27Disabilities Education Act and vocational rehabilitation services provided under the
298.28Rehabilitation Act of 1973;
298.29(7) assistive technology devices and assistive technology services other than those
298.30for back-up systems or mechanisms to ensure continuity of service and supports listed in
298.31subdivision 7;
298.32(8) medical supplies and equipment covered under medical assistance;
298.33(9) environmental modifications, except as specified in subdivision 7;
298.34(10) expenses for travel, lodging, or meals related to training the participant, or the
298.35participant's representative, or legal representative, or paid or unpaid caregivers that
298.36exceed $500 in a 12-month period;
299.1(11) experimental treatments;
299.2(12) any service or good covered by other medical assistance state plan services,
299.3including prescription and over-the-counter medications, compounds, and solutions and
299.4related fees, including premiums and co-payments;
299.5(13) membership dues or costs, except when the service is necessary and appropriate
299.6to treat a physical health condition or to improve or maintain the participant's physical
299.7 health condition. The condition must be identified in the participant's CFSS plan and
299.8monitored by a physician enrolled in a Minnesota health care program Minnesota health
299.9care program enrolled physician;
299.10(14) vacation expenses other than the cost of direct services;
299.11(15) vehicle maintenance or modifications not related to the disability, health
299.12condition, or physical need; and
299.13(16) tickets and related costs to attend sporting or other recreational or entertainment
299.14events.;
299.15(17) services provided and billed by a provider who is not an enrolled CFSS provider;
299.16(18) CFSS provided by a participant's representative or paid legal guardian;
299.17(19) services that are used solely as a child care or babysitting service;
299.18(20) services that are the responsibility or in the daily rate of a residential or program
299.19license holder under the terms of a service agreement and administrative rules;
299.20(21) sterile procedures;
299.21(22) giving of injections into veins, muscles, or skin;
299.22(23) homemaker services that are not an integral part of the assessed CFSS service;
299.23(24) home maintenance or chore services;
299.24(25) home-care services, including hospice services if elected by the participant
299.25covered by Medicare or any other insurance held by the participant;
299.26(26) services to other members of the participant's household;
299.27(27) services not specified as covered under medical assistance as CFSS;
299.28(28) application of restraints or implementation of deprivation procedures;
299.29(29) assessments by CFSS provider organizations or by independently enrolled
299.30registered nurses;
299.31(30) services provided in lieu of legally required staffing in a residential or child
299.32care setting; and
299.33(31) services provided by the residential or program license holder in a residence for
299.34more than four persons.

300.1    Sec. 11. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 10,
300.2is amended to read:
300.3    Subd. 10. Provider Agency-provider and FMS contractor qualifications and,
300.4 general requirements, and duties. (a) Agency-providers delivering services under the
300.5agency-provider model under subdivision 11 or financial management service (FMS)
300.6 FMS contractors under subdivision 13 shall:
300.7(1) enroll as a medical assistance Minnesota health care programs provider and meet
300.8all applicable provider standards and requirements;
300.9(2) comply with medical assistance provider enrollment requirements;
300.10(3) (2) demonstrate compliance with law federal and state laws and policies of for
300.11 CFSS as determined by the commissioner;
300.12(4) (3) comply with background study requirements under chapter 245C and
300.13maintain documentation of background study requests and results;
300.14(5) (4) verify and maintain records of all services and expenditures by the participant,
300.15including hours worked by support workers and support specialists;
300.16(6) (5) not engage in any agency-initiated direct contact or marketing in person, by
300.17telephone, or other electronic means to potential participants, guardians, family members,
300.18or participants' representatives;
300.19(6) directly provide services and not use a subcontractor or reporting agent;
300.20(7) meet the financial requirements established by the commissioner for financial
300.21solvency;
300.22(8) have never had a lead agency contract or provider agreement discontinued due to
300.23fraud, or have never had an owner, board member, or manager fail a state or FBI-based
300.24criminal background check while enrolled or seeking enrollment as a Minnesota health
300.25care programs provider;
300.26(9) have established business practices that include written policies and procedures,
300.27internal controls, and a system that demonstrates the provider's ability to deliver quality
300.28CFSS; and
300.29(10) have an office located in Minnesota.
300.30(b) In conducting general duties, agency-providers and FMS contractors shall:
300.31(7) (1) pay support workers and support specialists based upon actual hours of
300.32services provided;
300.33(2) pay for worker training and development services based upon actual hours of
300.34services provided or the unit cost of the training session purchased;
300.35(8) (3) withhold and pay all applicable federal and state payroll taxes;
301.1(9) (4) make arrangements and pay unemployment insurance, taxes, workers'
301.2compensation, liability insurance, and other benefits, if any;
301.3(10) (5) enter into a written agreement with the participant, participant's
301.4representative, or legal representative that assigns roles and responsibilities to be
301.5performed before services, supports, or goods are provided using a format established by
301.6the commissioner;
301.7(11) (6) report maltreatment as required under sections 626.556 and 626.557; and
301.8(12) (7) provide the participant with a copy of the service-related rights under
301.9subdivision 20 at the start of services and supports.; and
301.10(8) comply with any data requests from the department consistent with the
301.11Minnesota Government Data Practices Act.

301.12    Sec. 12. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 11,
301.13is amended to read:
301.14    Subd. 11. Agency-provider model. (a) The agency-provider model is limited to
301.15the includes services provided by support workers and support specialists staff providing
301.16worker training and development services who are employed by an agency-provider
301.17that is licensed according to chapter 245A or meets other criteria established by the
301.18commissioner, including required training.
301.19(b) The agency-provider shall allow the participant to have a significant role in the
301.20selection and dismissal of the support workers for the delivery of the services and supports
301.21specified in the participant's service delivery plan.
301.22(c) A participant may use authorized units of CFSS services as needed within a
301.23service authorization that is not greater than 12 months. Using authorized units in a
301.24flexible manner in either the agency-provider model or the budget model does not increase
301.25the total amount of services and supports authorized for a participant or included in the
301.26participant's service delivery plan.
301.27(d) A participant may share CFSS services. Two or three CFSS participants may
301.28share services at the same time provided by the same support worker.
301.29(e) The agency-provider must use a minimum of 72.5 percent of the revenue
301.30generated by the medical assistance payment for CFSS for support worker wages and
301.31benefits. The agency-provider must document how this requirement is being met. The
301.32revenue generated by the support specialist worker training and development services
301.33 and the reasonable costs associated with the support specialist worker training and
301.34development services must not be used in making this calculation.
302.1(f) The agency-provider model must be used by individuals who have been restricted
302.2by the Minnesota restricted recipient program under Minnesota Rules, parts 9505.2160
302.3to 9505.2245.
302.4(g) Participants purchasing goods under this model, along with support worker
302.5services, must:
302.6(1) specify the goods in the service delivery plan and detailed budget for
302.7expenditures that must be approved by the consultation services provider or the case
302.8manager/care coordinator; and
302.9(2) use the FMS contractor for the billing and payment of such goods.

302.10    Sec. 13. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 12,
302.11is amended to read:
302.12    Subd. 12. Requirements for enrollment of CFSS provider agency-provider
302.13 agencies. (a) All CFSS provider agencies agency-providers must provide, at the time of
302.14enrollment, reenrollment, and revalidation as a CFSS provider agency agency-provider in
302.15a format determined by the commissioner, information and documentation that includes,
302.16but is not limited to, the following:
302.17(1) the CFSS provider agency's agency-provider's current contact information
302.18including address, telephone number, and e-mail address;
302.19(2) proof of surety bond coverage. Upon new enrollment, or if the provider agency's
302.20 agency-provider's Medicaid revenue in the previous calendar year is less than or equal
302.21to $300,000, the provider agency agency-provider must purchase a performance bond of
302.22$50,000. If the provider agency's agency-provider's Medicaid revenue in the previous
302.23calendar year is greater than $300,000, the provider agency agency-provider must
302.24purchase a performance bond of $100,000. The performance bond must be in a form
302.25approved by the commissioner, must be renewed annually, and must allow for recovery of
302.26costs and fees in pursuing a claim on the bond;
302.27(3) proof of fidelity bond coverage in the amount of $20,000;
302.28(4) proof of workers' compensation insurance coverage;
302.29(5) proof of liability insurance;
302.30(6) a description of the CFSS provider agency's agency-provider's organization
302.31identifying the names of all owners, managing employees, staff, board of directors, and
302.32the affiliations of the directors, and owners, or staff to other service providers;
302.33(7) a copy of the CFSS provider agency's agency-provider's written policies and
302.34procedures including: hiring of employees; training requirements; service delivery;
302.35and employee and consumer safety including process for notification and resolution
303.1of consumer grievances, identification and prevention of communicable diseases, and
303.2employee misconduct;
303.3(8) copies of all other forms the CFSS provider agency agency-provider uses in the
303.4course of daily business including, but not limited to:
303.5(i) a copy of the CFSS provider agency's agency-provider's time sheet if the time
303.6sheet varies from the standard time sheet for CFSS services approved by the commissioner,
303.7and a letter requesting approval of the CFSS provider agency's agency-provider's
303.8 nonstandard time sheet; and
303.9(ii) the a copy of the participant's individual CFSS provider agency's template for the
303.10CFSS care service delivery plan;
303.11(9) a list of all training and classes that the CFSS provider agency agency-provider
303.12 requires of its staff providing CFSS services;
303.13(10) documentation that the CFSS provider agency agency-provider and staff have
303.14successfully completed all the training required by this section;
303.15(11) documentation of the agency's agency-provider's marketing practices;
303.16(12) disclosure of ownership, leasing, or management of all residential properties
303.17that are used or could be used for providing home care home-care services;
303.18(13) documentation that the agency agency-provider will use at least the following
303.19percentages of revenue generated from the medical assistance rate paid for CFSS services
303.20for employee personal care assistant CFSS support worker wages and benefits: 72.5
303.21percent of revenue from CFSS providers. The revenue generated by the support specialist
303.22 worker training and development services and the reasonable costs associated with the
303.23support specialist worker training and development services shall not be used in making
303.24this calculation; and
303.25(14) documentation that the agency agency-provider does not burden recipients'
303.26 participants' free exercise of their right to choose service providers by requiring personal
303.27care assistants CFSS support workers to sign an agreement not to work with any particular
303.28CFSS recipient participant or for another CFSS provider agency agency-provider after
303.29leaving the agency and that the agency is not taking action on any such agreements or
303.30requirements regardless of the date signed.
303.31(b) CFSS provider agencies agency-providers shall provide to the commissioner
303.32the information specified in paragraph (a).
303.33(c) All CFSS provider agencies agency-providers shall require all employees in
303.34management and supervisory positions and owners of the agency who are active in the
303.35day-to-day management and operations of the agency to complete mandatory training as
303.36determined by the commissioner. Employees in management and supervisory positions
304.1and owners who are active in the day-to-day operations of an agency who have completed
304.2the required training as an employee with a CFSS provider agency agency-provider do
304.3not need to repeat the required training if they are hired by another agency, if they have
304.4completed the training within the past three years. CFSS provider agency agency-provider
304.5 billing staff shall complete training about CFSS program financial management. Any new
304.6owners or employees in management and supervisory positions involved in the day-to-day
304.7operations are required to complete mandatory training as a requisite of working for the
304.8agency. CFSS provider agencies certified for participation in Medicare as home health
304.9agencies are exempt from the training required in this subdivision.
304.10(d) The commissioner shall send annual renewal notifications to agency-providers
304.1130 days prior to renewal. The notification must:
304.12(1) list the materials and information the agency-provider is required to submit;
304.13(2) provide instructions on submitting information to the commissioner; and
304.14(3) provide a due date by which the commissioner must receive the requested
304.15information.
304.16Agency-providers shall submit the required documentation for annual review within
304.1730 days of notification from the commissioner. If no documentation is submitted, the
304.18agency-provider enrollment number must be terminated or suspended.

304.19    Sec. 14. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 13,
304.20is amended to read:
304.21    Subd. 13. Budget model. (a) Under the budget model participants can may exercise
304.22more responsibility and control over the services and supports described and budgeted
304.23within the CFSS service delivery plan. Participants must use services provided by an FMS
304.24contractor as defined in subdivision 2, paragraph (m). Under this model, participants may
304.25use their approved service budget allocation to:
304.26(1) directly employ support workers, and pay wages, federal and state payroll taxes,
304.27and premiums for workers' compensation, liability, and health insurance coverage; and
304.28(2) obtain supports and goods as defined in subdivision 7; and.
304.29(3) choose a range of support assistance services from the financial management
304.30services (FMS) contractor related to:
304.31(i) assistance in managing the budget to meet the service delivery plan needs,
304.32consistent with federal and state laws and regulations;
304.33(ii) the employment, training, supervision, and evaluation of workers by the
304.34participant;
304.35(iii) acquisition and payment for supports and goods; and
305.1(iv) evaluation of individual service outcomes as needed for the scope of the
305.2participant's degree of control and responsibility.
305.3(b) Participants who are unable to fulfill any of the functions listed in paragraph (a)
305.4may authorize a legal representative or participant's representative to do so on their behalf.
305.5(c) The commissioner shall disenroll or exclude participants from the budget model
305.6and transfer them to the agency-provider model under, but not limited to, the following
305.7circumstances:
305.8(1) when a participant has been restricted by the Minnesota restricted recipient
305.9program, in which case the participant may be excluded for a specified time period under
305.10Minnesota Rules, parts 9505.2160 to 9505.2245;
305.11(2) when a participant exits the budget model during the participant's service plan
305.12year. Upon transfer, the participant shall not access the budget model for the remainder of
305.13that service plan year; or
305.14(3) when the department determines that the participant or participant's representative
305.15or legal representative cannot manage participant responsibilities under the budget model.
305.16The commissioner must develop policies for determining if a participant is unable to
305.17manage responsibilities under the budget model.
305.18(d) A participant may appeal in writing to the department under section 256.045,
305.19subdivision 3, to contest the department's decision under paragraph (c), clause (3), to
305.20disenroll or exclude the participant from the budget model.
305.21(c) (e) The FMS contractor shall not provide CFSS services and supports under the
305.22agency-provider service model.
305.23(f) The FMS contractor shall provide service functions as determined by the
305.24commissioner for budget model participants that include but are not limited to:
305.25(1) information and consultation about CFSS;
305.26(2) (1) assistance with the development of the detailed budget for expenditures
305.27portion of the service delivery plan and budget model as requested by the consultation
305.28services provider or participant;
305.29(3) (2) billing and making payments for budget model expenditures;
305.30(4) (3) assisting participants in fulfilling employer-related requirements according to
305.31Internal Revenue Service Revenue Procedure 70-6, section 3504, Agency Employer Tax
305.32Liability, regulation 137036-08 section 3504 of the Internal Revenue Code and related
305.33regulations and interpretations, including Code of Federal Regulations, title 26, section
305.3431.3504-1, which includes assistance with filing and paying payroll taxes, and obtaining
305.35worker compensation coverage;
305.36(5) (4) data recording and reporting of participant spending; and
306.1(6) (5) other duties established in the contract with the department, including with
306.2respect to providing assistance to the participant, participant's representative, or legal
306.3representative in performing their employer responsibilities regarding support workers.
306.4The support worker shall not be considered the employee of the financial management
306.5services FMS contractor.; and
306.6(6) billing, payment, and accounting of approved expenditures for goods for
306.7agency-provider participants.
306.8(d) A participant who requests to purchase goods and supports along with support
306.9worker services under the agency-provider model must use the budget model with
306.10a service delivery plan that specifies the amount of services to be authorized to the
306.11agency-provider and the expenditures to be paid by the FMS contractor.
306.12(e) (g) The FMS contractor shall:
306.13(1) not limit or restrict the participant's choice of service or support providers or
306.14service delivery models consistent with any applicable state and federal requirements;
306.15(2) provide the participant, consultation services provider, and the targeted case
306.16manager, if applicable, with a monthly written summary of the spending for services and
306.17supports that were billed against the spending budget;
306.18(3) be knowledgeable of state and federal employment regulations, including those
306.19under the Fair Labor Standards Act of 1938, and comply with the requirements under the
306.20Internal Revenue Service Revenue Procedure 70-6, Section 3504, section 3504 of the
306.21Internal Revenue Code and related regulations and interpretations, including Code of
306.22Federal Regulations, title 26, section 31.3504-1, regarding agency employer tax liability
306.23for vendor or fiscal employer agent, and any requirements necessary to process employer
306.24and employee deductions, provide appropriate and timely submission of employer tax
306.25liabilities, and maintain documentation to support medical assistance claims;
306.26(4) have current and adequate liability insurance and bonding and sufficient cash
306.27flow as determined by the commissioner and have on staff or under contract a certified
306.28public accountant or an individual with a baccalaureate degree in accounting;
306.29(5) assume fiscal accountability for state funds designated for the program and be
306.30held liable for any overpayments or violations of applicable statutes or rules, including but
306.31not limited to the Minnesota False Claims Act, chapter 15C; and
306.32(6) maintain documentation of receipts, invoices, and bills to track all services and
306.33supports expenditures for any goods purchased and maintain time records of support
306.34workers. The documentation and time records must be maintained for a minimum of
306.35five years from the claim date and be available for audit or review upon request by the
306.36commissioner. Claims submitted by the FMS contractor to the commissioner for payment
307.1must correspond with services, amounts, and time periods as authorized in the participant's
307.2spending service budget and service plan and must contain specific identifying information
307.3as determined by the commissioner.
307.4(f) (h) The commissioner of human services shall:
307.5(1) establish rates and payment methodology for the FMS contractor;
307.6(2) identify a process to ensure quality and performance standards for the FMS
307.7contractor and ensure statewide access to FMS contractors; and
307.8(3) establish a uniform protocol for delivering and administering CFSS services
307.9to be used by eligible FMS contractors.
307.10(g) The commissioner of human services shall disenroll or exclude participants from
307.11the budget model and transfer them to the agency-provider model under the following
307.12circumstances that include but are not limited to:
307.13(1) when a participant has been restricted by the Minnesota restricted recipient
307.14program, the participant may be excluded for a specified time period under Minnesota
307.15Rules, parts 9505.2160 to 9505.2245;
307.16(2) when a participant exits the budget model during the participant's service plan
307.17year. Upon transfer, the participant shall not access the budget model for the remainder of
307.18that service plan year; or
307.19(3) when the department determines that the participant or participant's representative
307.20or legal representative cannot manage participant responsibilities under the budget model.
307.21The commissioner must develop policies for determining if a participant is unable to
307.22manage responsibilities under a budget model.
307.23(h) A participant may appeal under section 256.045, subdivision 3, in writing to the
307.24department to contest the department's decision under paragraph (c), clause (3), to remove
307.25or exclude the participant from the budget model.

307.26    Sec. 15. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 15,
307.27is amended to read:
307.28    Subd. 15. Documentation of support services provided. (a) Support services
307.29provided to a participant by a support worker employed by either an agency-provider
307.30or the participant acting as the employer must be documented daily by each support
307.31worker, on a time sheet form approved by the commissioner. All documentation may be
307.32Web-based, electronic, or paper documentation. The completed form must be submitted
307.33on a monthly regular basis to the provider or the participant and the FMS contractor
307.34selected by the participant to provide assistance with meeting the participant's employer
307.35obligations and kept in the recipient's health participant's record.
308.1(b) The activity documentation must correspond to the written service delivery plan
308.2and be reviewed by the agency-provider or the participant and the FMS contractor when
308.3the participant is acting as the employer of the support worker.
308.4(c) The time sheet must be on a form approved by the commissioner documenting
308.5time the support worker provides services in the home to the participant. The following
308.6criteria must be included in the time sheet:
308.7(1) full name of the support worker and individual provider number;
308.8(2) provider agency-provider name and telephone numbers, if an agency-provider is
308.9 responsible for delivery services under the written service plan;
308.10(3) full name of the participant;
308.11(4) consecutive dates, including month, day, and year, and arrival and departure
308.12times with a.m. or p.m. notations;
308.13(5) signatures of the participant or the participant's representative;
308.14(6) personal signature of the support worker;
308.15(7) any shared care provided, if applicable;
308.16(8) a statement that it is a federal crime to provide false information on CFSS
308.17billings for medical assistance payments; and
308.18(9) dates and location of recipient participant stays in a hospital, care facility, or
308.19incarceration.

308.20    Sec. 16. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 16,
308.21is amended to read:
308.22    Subd. 16. Support workers requirements. (a) Support workers shall:
308.23(1) enroll with the department as a support worker after a background study under
308.24chapter 245C has been completed and the support worker has received a notice from the
308.25commissioner that:
308.26(i) the support worker is not disqualified under section 245C.14; or
308.27(ii) is disqualified, but the support worker has received a set-aside of the
308.28disqualification under section 245C.22;
308.29(2) have the ability to effectively communicate with the participant or the
308.30participant's representative;
308.31(3) have the skills and ability to provide the services and supports according to
308.32the person's participant's CFSS service delivery plan and respond appropriately to the
308.33participant's needs;
308.34(4) not be a participant of CFSS, unless the support services provided by the support
308.35worker differ from those provided to the support worker;
309.1(5) complete the basic standardized training as determined by the commissioner
309.2before completing enrollment. The training must be available in languages other than
309.3English and to those who need accommodations due to disabilities. Support worker
309.4training must include successful completion of the following training components: basic
309.5first aid, vulnerable adult, child maltreatment, OSHA universal precautions, basic roles
309.6and responsibilities of support workers including information about basic body mechanics,
309.7emergency preparedness, orientation to positive behavioral practices, orientation to
309.8responding to a mental health crisis, fraud issues, time cards and documentation, and an
309.9overview of person-centered planning and self-direction. Upon completion of the training
309.10components, the support worker must pass the certification test to provide assistance
309.11to participants;
309.12(6) complete training and orientation on the participant's individual needs; and
309.13(7) maintain the privacy and confidentiality of the participant, and not independently
309.14determine the medication dose or time for medications for the participant.
309.15(b) The commissioner may deny or terminate a support worker's provider enrollment
309.16and provider number if the support worker:
309.17(1) lacks the skills, knowledge, or ability to adequately or safely perform the
309.18required work;
309.19(2) fails to provide the authorized services required by the participant employer;
309.20(3) has been intoxicated by alcohol or drugs while providing authorized services to
309.21the participant or while in the participant's home;
309.22(4) has manufactured or distributed drugs while providing authorized services to the
309.23participant or while in the participant's home; or
309.24(5) has been excluded as a provider by the commissioner of human services, or the
309.25United States Department of Health and Human Services, Office of Inspector General,
309.26from participation in Medicaid, Medicare, or any other federal health care program.
309.27(c) A support worker may appeal in writing to the commissioner to contest the
309.28decision to terminate the support worker's provider enrollment and provider number.
309.29(d) A support worker must not provide or be paid for more than 275 hours of
309.30CFSS per month, regardless of the number of participants the support worker serves or
309.31the number of agency-providers or participant employers by which the support worker
309.32is employed. The department shall not disallow the number of hours per day a support
309.33worker works unless it violates other law.

309.34    Sec. 17. Minnesota Statutes 2013 Supplement, section 256B.85, is amended by adding
309.35a subdivision to read:
310.1    Subd. 16a. Exception to support worker requirements for continuity of services.
310.2The support worker for a participant may be allowed to enroll with a different CFSS
310.3agency-provider or FMS contractor upon initiation, rather than completion of a new
310.4background study according to chapter 245C, if the following conditions are met:
310.5(1) the commissioner determines that the support worker's change in enrollment or
310.6affiliation is needed to ensure continuity of services and protect the health and safety
310.7of the participant;
310.8(2) the chosen agency-provider or FMS contractor has been continuously enrolled as
310.9a CFSS agency-provider or FMS contractor for at least two years or since the inception of
310.10the CFSS program, whichever is shorter;
310.11(3) the participant served by the support worker chooses to transfer to the CFSS
310.12agency-provider or the FMS contractor to which the support worker is transferring;
310.13(4) the support worker has been continuously enrolled with the former CFSS
310.14agency-provider or FMS contractor since the support worker's last background study
310.15was completed; and
310.16(5) the support worker continues to meet requirements of subdivision 16, excluding
310.17paragraph (a), clause (1).

310.18    Sec. 18. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 17,
310.19is amended to read:
310.20    Subd. 17. Support specialist requirements and payments Consultation services
310.21description and duties. The commissioner shall develop qualifications, scope of
310.22functions, and payment rates and service limits for a support specialist that may provide
310.23additional or specialized assistance necessary to plan, implement, arrange, augment, or
310.24evaluate services and supports.
310.25(a) Consultation services means providing assistance to the participant in making
310.26informed choices regarding CFSS services in general, and self-directed tasks in particular,
310.27and in developing a person-centered service delivery plan to achieve quality service
310.28outcomes.
310.29(b) Consultation services is a required service that may include but is not limited to:
310.30(1) an initial and annual orientation to CFSS information and policies, including
310.31selecting a service model;
310.32(2) assistance with the development, implementation, management, and evaluation
310.33of the person-centered service delivery plan;
310.34(3) consultation on recruiting, selecting, training, managing, directing, evaluating,
310.35and supervising support workers;
311.1(4) reviewing the use of and access to informal and community supports, goods, or
311.2resources;
311.3(5) assistance with fulfilling responsibilities and requirements of CFSS, including
311.4modifying service delivery plans and changing service models; and
311.5(6) assistance with accessing FMS contractors or agency-providers.
311.6(c) Duties of a consultation services provider shall include but are not limited to:
311.7(1) review and finalization of the CFSS service delivery plan by the consultation
311.8services provider organization;
311.9(2) distribution of copies of the final service delivery plan to the participant and
311.10to the agency-provider or FMS contractor, case manager/care coordinator, and other
311.11designated parties;
311.12(3) an evaluation of services upon receiving information from an FMS contractor
311.13indicating spending or participant employer concerns;
311.14(4) a semiannual review of services if the participant does not have a case
311.15manager/care coordinator and when the support worker is a paid parent of a minor
311.16participant or the participant's spouse;
311.17(5) collection and reporting of data as required by the department; and
311.18(6) providing the participant with a copy of the service-related rights under
311.19subdivision 20 at the start of consultation services.

311.20    Sec. 19. Minnesota Statutes 2013 Supplement, section 256B.85, is amended by adding
311.21a subdivision to read:
311.22    Subd. 17a. Consultation service provider qualifications and requirements.
311.23The commissioner shall develop the qualifications and requirements for providers of
311.24consultation services under subdivision 17. These providers must satisfy at least the
311.25following qualifications and requirements:
311.26(1) are under contract with the department;
311.27(2) are not the FMS contractor as defined in subdivision 2, paragraph (m), the
311.28CFSS or home and community-based services waiver agency-provider or vendor to the
311.29participant, or a lead agency;
311.30(3) meet the service standards as established by the commissioner;
311.31(4) employ lead professional staff with a minimum of three years of experience
311.32in providing support planning, support broker, or consultation services and consumer
311.33education to participants using a self-directed program using FMS under medical
311.34assistance;
312.1(5) are knowledgeable about CFSS roles and responsibilities including those of the
312.2certified assessor, FMS contractor, agency-provider, and case manager/care coordinator;
312.3(6) comply with medical assistance provider requirements;
312.4(7) understand the CFSS program and its policies;
312.5(8) are knowledgeable about self-directed principles and the application of the
312.6person-centered planning process;
312.7(9) have general knowledge of the FMS contractor duties and participant
312.8employment model, including all applicable federal, state, and local laws and regulations
312.9regarding tax, labor, employment, and liability and workers' compensation coverage for
312.10household workers; and
312.11(10) have all employees, including lead professional staff, staff in management
312.12and supervisory positions, and owners of the agency who are active in the day-to-day
312.13management and operations of the agency, complete training as specified in the contract
312.14with the department.

312.15    Sec. 20. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 18,
312.16is amended to read:
312.17    Subd. 18. Service unit and budget allocation requirements and limits. (a) For the
312.18agency-provider model, services will be authorized in units of service. The total service
312.19unit amount must be established based upon the assessed need for CFSS services, and must
312.20not exceed the maximum number of units available as determined under subdivision 8.
312.21(b) For the budget model, the service budget allocation allowed for services and
312.22supports is established by multiplying the number of units authorized under subdivision 8
312.23by the payment rate established by the commissioner defined in subdivision 8, paragraph
312.24(g).

312.25    Sec. 21. Minnesota Statutes 2013 Supplement, section 256B.85, is amended by adding
312.26a subdivision to read:
312.27    Subd. 18a. Worker training and development services. (a) The commissioner
312.28shall develop the scope of tasks and functions, service standards, and service limits for
312.29worker training and development services.
312.30(b) Worker training and development services are in addition to the participant's
312.31assessed service units or service budget. Services provided according to this subdivision
312.32must:
313.1(1) help support workers obtain and expand the skills and knowledge necessary to
313.2ensure competency in providing quality services as needed and defined in the participant's
313.3service delivery plan;
313.4(2) be provided or arranged for by the agency-provider under subdivision 11 or
313.5purchased by the participant employer under the budget model under subdivision 13; and
313.6(3) be described in the participant's CFSS service delivery plan and documented in
313.7the participant's file.
313.8(c) Services covered under worker training and development shall include:
313.9(1) support worker training on the participant's individual assessed needs, condition,
313.10or both, provided individually or in a group setting by a skilled and knowledgeable trainer
313.11beyond any training the participant or participant's representative provides;
313.12(2) tuition for professional classes and workshops for the participant's support
313.13workers that relate to the participant's assessed needs, condition, or both;
313.14(3) direct observation, monitoring, coaching, and documentation of support worker
313.15job skills and tasks, beyond any training the participant or participant's representative
313.16provides, including supervision of health-related tasks or behavioral supports that is
313.17conducted by an appropriate professional based on the participant's assessed needs.
313.18These services must be provided within 14 days of the start of services or the start of a
313.19new support worker except as provided in paragraph (d) and must be specified in the
313.20participant's service delivery plan; and
313.21(4) reporting service and support concerns to the appropriate provider.
313.22(d) The services in paragraph (c), clause (3), are not required to be provided for a
313.23new support worker providing services for a participant due to staffing failures, unless the
313.24support worker is expected to provide ongoing backup staffing coverage.
313.25(e) Worker training and development services shall not include:
313.26(1) general agency training, worker orientation, or training on CFSS self-directed
313.27models;
313.28(2) payment for preparation or development time for the trainer or presenter;
313.29(3) payment of the support worker's salary or compensation during the training;
313.30(4) training or supervision provided by the participant, the participant's support
313.31worker, or the participant's informal supports, including the participant's representative; or
313.32(5) services in excess of 96 units per annual service authorization, unless approved
313.33by the department.

313.34    Sec. 22. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 23,
313.35is amended to read:
314.1    Subd. 23. Commissioner's access. When the commissioner is investigating a
314.2possible overpayment of Medicaid funds, the commissioner must be given immediate
314.3access without prior notice to the agency provider agency-provider or FMS contractor's
314.4office during regular business hours and to documentation and records related to services
314.5provided and submission of claims for services provided. Denying the commissioner
314.6access to records is cause for immediate suspension of payment and terminating the agency
314.7provider's enrollment according to section 256B.064 or terminating the FMS contract.

314.8    Sec. 23. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 24,
314.9is amended to read:
314.10    Subd. 24. CFSS agency-providers; background studies. CFSS agency-providers
314.11enrolled to provide personal care assistance CFSS services under the medical assistance
314.12program shall comply with the following:
314.13(1) owners who have a five percent interest or more and all managing employees
314.14are subject to a background study as provided in chapter 245C. This applies to currently
314.15enrolled CFSS agency-providers and those agencies seeking enrollment as a CFSS
314.16agency-provider. "Managing employee" has the same meaning as Code of Federal
314.17Regulations, title 42, section 455. An organization is barred from enrollment if:
314.18(i) the organization has not initiated background studies on owners managing
314.19employees; or
314.20(ii) the organization has initiated background studies on owners and managing
314.21employees, but the commissioner has sent the organization a notice that an owner or
314.22managing employee of the organization has been disqualified under section 245C.14, and
314.23the owner or managing employee has not received a set-aside of the disqualification
314.24under section 245C.22;
314.25(2) a background study must be initiated and completed for all support specialists
314.26 staff who will have direct contact with the participant to provide worker training and
314.27development; and
314.28(3) a background study must be initiated and completed for all support workers.

314.29    Sec. 24. Laws 2013, chapter 108, article 7, section 49, the effective date, is amended to
314.30read:
314.31EFFECTIVE DATE.This section is effective upon federal approval but no earlier
314.32than April 1, 2014. The service will begin 90 days after federal approval or April 1,
314.332014, whichever is later. The commissioner of human services shall notify the revisor of
314.34statutes when this occurs.

315.1ARTICLE 18

315.2CONTINUING CARE

315.3    Section 1. Minnesota Statutes 2012, section 13.46, subdivision 4, is amended to read:
315.4    Subd. 4. Licensing data. (a) As used in this subdivision:
315.5    (1) "licensing data" are all data collected, maintained, used, or disseminated by the
315.6welfare system pertaining to persons licensed or registered or who apply for licensure
315.7or registration or who formerly were licensed or registered under the authority of the
315.8commissioner of human services;
315.9    (2) "client" means a person who is receiving services from a licensee or from an
315.10applicant for licensure; and
315.11    (3) "personal and personal financial data" are Social Security numbers, identity
315.12of and letters of reference, insurance information, reports from the Bureau of Criminal
315.13Apprehension, health examination reports, and social/home studies.
315.14    (b)(1)(i) Except as provided in paragraph (c), the following data on applicants,
315.15license holders, and former licensees are public: name, address, telephone number of
315.16licensees, date of receipt of a completed application, dates of licensure, licensed capacity,
315.17type of client preferred, variances granted, record of training and education in child care
315.18and child development, type of dwelling, name and relationship of other family members,
315.19previous license history, class of license, the existence and status of complaints, and the
315.20number of serious injuries to or deaths of individuals in the licensed program as reported
315.21to the commissioner of human services, the local social services agency, or any other
315.22county welfare agency. For purposes of this clause, a serious injury is one that is treated
315.23by a physician.
315.24(ii) When a correction order, an order to forfeit a fine, an order of license suspension,
315.25an order of temporary immediate suspension, an order of license revocation, an order
315.26of license denial, or an order of conditional license has been issued, or a complaint is
315.27resolved, the following data on current and former licensees and applicants are public: the
315.28substance and investigative findings of the licensing or maltreatment complaint, licensing
315.29violation, or substantiated maltreatment; the record of informal resolution of a licensing
315.30violation; orders of hearing; findings of fact; conclusions of law; specifications of the final
315.31correction order, fine, suspension, temporary immediate suspension, revocation, denial, or
315.32conditional license contained in the record of licensing action; whether a fine has been
315.33paid; and the status of any appeal of these actions.
315.34(iii) When a license denial under section 245A.05 or a sanction under section
315.35245A.07 is based on a determination that the license holder or applicant is responsible for
316.1maltreatment under section 626.556 or 626.557, the identity of the applicant or license
316.2holder as the individual responsible for maltreatment is public data at the time of the
316.3issuance of the license denial or sanction.
316.4(iv) When a license denial under section 245A.05 or a sanction under section
316.5245A.07 is based on a determination that the license holder or applicant is disqualified
316.6under chapter 245C, the identity of the license holder or applicant as the disqualified
316.7individual and the reason for the disqualification are public data at the time of the
316.8issuance of the licensing sanction or denial. If the applicant or license holder requests
316.9reconsideration of the disqualification and the disqualification is affirmed, the reason for
316.10the disqualification and the reason to not set aside the disqualification are public data.
316.11    (2) Notwithstanding sections 626.556, subdivision 11, and 626.557, subdivision 12b,
316.12when any person subject to disqualification under section 245C.14 in connection with a
316.13license to provide family day care for children, child care center services, foster care for
316.14children in the provider's home, or foster care or day care services for adults in the provider's
316.15home is a substantiated perpetrator of maltreatment, and the substantiated maltreatment is
316.16a reason for a licensing action, the identity of the substantiated perpetrator of maltreatment
316.17is public data. For purposes of this clause, a person is a substantiated perpetrator if the
316.18maltreatment determination has been upheld under section 256.045; 626.556, subdivision
316.1910i ; 626.557, subdivision 9d; or chapter 14, or if an individual or facility has not timely
316.20exercised appeal rights under these sections, except as provided under clause (1).
316.21    (3) For applicants who withdraw their application prior to licensure or denial of a
316.22license, the following data are public: the name of the applicant, the city and county in
316.23which the applicant was seeking licensure, the dates of the commissioner's receipt of the
316.24initial application and completed application, the type of license sought, and the date
316.25of withdrawal of the application.
316.26    (4) For applicants who are denied a license, the following data are public: the name
316.27and address of the applicant, the city and county in which the applicant was seeking
316.28licensure, the dates of the commissioner's receipt of the initial application and completed
316.29application, the type of license sought, the date of denial of the application, the nature of
316.30the basis for the denial, the record of informal resolution of a denial, orders of hearings,
316.31findings of fact, conclusions of law, specifications of the final order of denial, and the
316.32status of any appeal of the denial.
316.33    (5) The following data on persons subject to disqualification under section 245C.14 in
316.34connection with a license to provide family day care for children, child care center services,
316.35foster care for children in the provider's home, or foster care or day care services for adults
316.36in the provider's home, are public: the nature of any disqualification set aside under section
317.1245C.22 , subdivisions 2 and 4, and the reasons for setting aside the disqualification; the
317.2nature of any disqualification for which a variance was granted under sections 245A.04,
317.3subdivision 9 ; and 245C.30, and the reasons for granting any variance under section
317.4245A.04, subdivision 9 ; and, if applicable, the disclosure that any person subject to
317.5a background study under section 245C.03, subdivision 1, has successfully passed a
317.6background study. If a licensing sanction under section 245A.07, or a license denial under
317.7section 245A.05, is based on a determination that an individual subject to disqualification
317.8under chapter 245C is disqualified, the disqualification as a basis for the licensing sanction
317.9or denial is public data. As specified in clause (1), item (iv), if the disqualified individual
317.10is the license holder or applicant, the identity of the license holder or applicant and the
317.11reason for the disqualification are public data; and, if the license holder or applicant
317.12requested reconsideration of the disqualification and the disqualification is affirmed, the
317.13reason for the disqualification and the reason to not set aside the disqualification are
317.14public data. If the disqualified individual is an individual other than the license holder or
317.15applicant, the identity of the disqualified individual shall remain private data.
317.16    (6) When maltreatment is substantiated under section 626.556 or 626.557 and the
317.17victim and the substantiated perpetrator are affiliated with a program licensed under
317.18chapter 245A, the commissioner of human services, local social services agency, or
317.19county welfare agency may inform the license holder where the maltreatment occurred of
317.20the identity of the substantiated perpetrator and the victim.
317.21    (7) Notwithstanding clause (1), for child foster care, only the name of the license
317.22holder and the status of the license are public if the county attorney has requested that data
317.23otherwise classified as public data under clause (1) be considered private data based on the
317.24best interests of a child in placement in a licensed program.
317.25    (c) The following are private data on individuals under section 13.02, subdivision
317.2612 , or nonpublic data under section 13.02, subdivision 9: personal and personal financial
317.27data on family day care program and family foster care program applicants and licensees
317.28and their family members who provide services under the license.
317.29    (d) The following are private data on individuals: the identity of persons who have
317.30made reports concerning licensees or applicants that appear in inactive investigative data,
317.31and the records of clients or employees of the licensee or applicant for licensure whose
317.32records are received by the licensing agency for purposes of review or in anticipation of a
317.33contested matter. The names of reporters of complaints or alleged violations of licensing
317.34standards under chapters 245A, 245B, 245C, and 245D, and applicable rules and alleged
317.35maltreatment under sections 626.556 and 626.557, are confidential data and may be
317.36disclosed only as provided in section 626.556, subdivision 11, or 626.557, subdivision 12b.
318.1    (e) Data classified as private, confidential, nonpublic, or protected nonpublic under
318.2this subdivision become public data if submitted to a court or administrative law judge as
318.3part of a disciplinary proceeding in which there is a public hearing concerning a license
318.4which has been suspended, immediately suspended, revoked, or denied.
318.5    (f) Data generated in the course of licensing investigations that relate to an alleged
318.6violation of law are investigative data under subdivision 3.
318.7    (g) Data that are not public data collected, maintained, used, or disseminated under
318.8this subdivision that relate to or are derived from a report as defined in section 626.556,
318.9subdivision 2 , or 626.5572, subdivision 18, are subject to the destruction provisions of
318.10sections 626.556, subdivision 11c, and 626.557, subdivision 12b.
318.11    (h) Upon request, not public data collected, maintained, used, or disseminated under
318.12this subdivision that relate to or are derived from a report of substantiated maltreatment as
318.13defined in section 626.556 or 626.557 may be exchanged with the Department of Health
318.14for purposes of completing background studies pursuant to section 144.057 and with
318.15the Department of Corrections for purposes of completing background studies pursuant
318.16to section 241.021.
318.17    (i) Data on individuals collected according to licensing activities under chapters
318.18245A and 245C, data on individuals collected by the commissioner of human services
318.19according to investigations under chapters 245A, 245B, and 245C, and 245D, and
318.20sections 626.556 and 626.557 may be shared with the Department of Human Rights, the
318.21Department of Health, the Department of Corrections, the ombudsman for mental health
318.22and developmental disabilities, and the individual's professional regulatory board when
318.23there is reason to believe that laws or standards under the jurisdiction of those agencies may
318.24have been violated or the information may otherwise be relevant to the board's regulatory
318.25jurisdiction. Background study data on an individual who is the subject of a background
318.26study under chapter 245C for a licensed service for which the commissioner of human
318.27services is the license holder may be shared with the commissioner and the commissioner's
318.28delegate by the licensing division. Unless otherwise specified in this chapter, the identity
318.29of a reporter of alleged maltreatment or licensing violations may not be disclosed.
318.30    (j) In addition to the notice of determinations required under section 626.556,
318.31subdivision 10f , if the commissioner or the local social services agency has determined
318.32that an individual is a substantiated perpetrator of maltreatment of a child based on sexual
318.33abuse, as defined in section 626.556, subdivision 2, and the commissioner or local social
318.34services agency knows that the individual is a person responsible for a child's care in
318.35another facility, the commissioner or local social services agency shall notify the head
318.36of that facility of this determination. The notification must include an explanation of the
319.1individual's available appeal rights and the status of any appeal. If a notice is given under
319.2this paragraph, the government entity making the notification shall provide a copy of the
319.3notice to the individual who is the subject of the notice.
319.4    (k) All not public data collected, maintained, used, or disseminated under this
319.5subdivision and subdivision 3 may be exchanged between the Department of Human
319.6Services, Licensing Division, and the Department of Corrections for purposes of
319.7regulating services for which the Department of Human Services and the Department
319.8of Corrections have regulatory authority.

319.9    Sec. 2. Minnesota Statutes 2012, section 144A.073, is amended by adding a
319.10subdivision to read:
319.11    Subd. 14. Moratorium exception funding. In fiscal year 2015, the commissioner
319.12of health may approve moratorium exception projects under this section for which the full
319.13annualized state share of medical assistance costs does not exceed $1,000,000.

319.14    Sec. 3. Minnesota Statutes 2012, section 144A.33, subdivision 2, is amended to read:
319.15    Subd. 2. Providing educational services. The Minnesota Board on Aging shall
319.16provide a grant-in-aid to a statewide, independent, nonprofit, consumer-sponsored agency
319.17to provide educational services to councils.

319.18    Sec. 4. Minnesota Statutes 2013 Supplement, section 245.8251, is amended to read:
319.19245.8251 POSITIVE SUPPORT STRATEGIES AND EMERGENCY
319.20MANUAL RESTRAINT; LICENSED FACILITIES AND PROGRAMS.
319.21    Subdivision 1. Rules governing the use of positive support strategies and
319.22restricting or prohibiting restrictive interventions. The commissioner of human
319.23services shall, within 24 months of May 23, 2013 by August 31, 2015, adopt rules
319.24governing the use of positive support strategies, safety interventions, and emergency use
319.25of manual restraint, and restricting or prohibiting the use of restrictive interventions, in
319.26all facilities and services licensed under chapter 245D. , and in all licensed facilities and
319.27licensed services serving persons with a developmental disability or related condition.
319.28For the purposes of this section, "developmental disability or related condition" has the
319.29meaning given in Minnesota Rules, part 9525.0016, subpart 2, items A to E.
319.30    Subd. 2. Data collection. (a) The commissioner shall, with stakeholder input,
319.31develop identify data collection elements specific to incidents of emergency use of
319.32manual restraint and positive support transition plans for persons receiving services from
319.33providers governed licensed facilities and licensed services under chapter 245D and in
320.1licensed facilities and licensed services serving persons with a developmental disability
320.2or related condition as defined in Minnesota Rules, part 9525.0016, subpart 2, effective
320.3January 1, 2014. Providers Licensed facilities and licensed services shall report the data in
320.4a format and at a frequency determined by the commissioner of human services. Providers
320.5shall submit the data to the commissioner and the Office of the Ombudsman for Mental
320.6Health and Developmental Disabilities.
320.7(b) Beginning July 1, 2013, providers licensed facilities and licensed services
320.8 regulated under Minnesota Rules, parts 9525.2700 to 9525.2810, shall submit data
320.9regarding the use of all controlled procedures identified in Minnesota Rules, part
320.109525.2740, in a format and at a frequency determined by the commissioner. Providers
320.11shall submit the data to the commissioner and the Office of the Ombudsman for Mental
320.12Health and Developmental Disabilities.
320.13    Subd. 3. External program review committee. Rules adopted according to this
320.14section shall establish requirements for an external program review committee appointed by
320.15the commissioner to monitor the implementation of the rules and make recommendations
320.16to the commissioner about any needed policy changes after adoption of the rules.
320.17    Subd. 4. Interim review panel. (a) The commissioner shall establish an interim
320.18review panel by August 15, 2014, for the purpose of reviewing requests for emergency
320.19use of procedures that have been part of an approved positive support transition plan
320.20when necessary to protect a person from imminent risk of serious injury as defined in
320.21section 245.91, subdivision 6, due to self-injurious behavior. The panel must make
320.22recommendations to the commissioner to approve or deny these requests based on criteria
320.23to be established by the interim review panel. The interim review panel shall operate until
320.24the external program review committee is established as required under subdivision 3.
320.25(b) Members of the interim review panel shall be selected based on their expertise
320.26and knowledge related to the use of positive support strategies as alternatives to the use
320.27of restrictive interventions. The commissioner shall seek input and recommendations in
320.28establishing the interim review panel. Members of the interim review panel shall include
320.29the following representatives:
320.30(1) an expert in positive supports;
320.31(2) a mental health professional, as defined in section 245.462;
320.32(3) a licensed health professional as defined in section 245D.02, subdivision 14; and
320.33(4) a representative of the Department of Health.

320.34    Sec. 5. Minnesota Statutes 2013 Supplement, section 245A.03, subdivision 7, is
320.35amended to read:
321.1    Subd. 7. Licensing moratorium. (a) The commissioner shall not issue an initial
321.2license for child foster care licensed under Minnesota Rules, parts 2960.3000 to 2960.3340,
321.3or adult foster care licensed under Minnesota Rules, parts 9555.5105 to 9555.6265, under
321.4this chapter for a physical location that will not be the primary residence of the license
321.5holder for the entire period of licensure. If a license is issued during this moratorium, and
321.6the license holder changes the license holder's primary residence away from the physical
321.7location of the foster care license, the commissioner shall revoke the license according
321.8to section 245A.07. The commissioner shall not issue an initial license for a community
321.9residential setting licensed under chapter 245D. Exceptions to the moratorium include:
321.10(1) foster care settings that are required to be registered under chapter 144D;
321.11(2) foster care licenses replacing foster care licenses in existence on May 15, 2009, or
321.12community residential setting licenses replacing adult foster care licenses in existence on
321.13December 31, 2013, and determined to be needed by the commissioner under paragraph (b);
321.14(3) new foster care licenses or community residential setting licenses determined to
321.15be needed by the commissioner under paragraph (b) for the closure of a nursing facility,
321.16ICF/DD, or regional treatment center; restructuring of state-operated services that limits
321.17the capacity of state-operated facilities; or allowing movement to the community for
321.18people who no longer require the level of care provided in state-operated facilities as
321.19provided under section 256B.092, subdivision 13, or 256B.49, subdivision 24;
321.20(4) new foster care licenses or community residential setting licenses determined
321.21to be needed by the commissioner under paragraph (b) for persons requiring hospital
321.22level care; or
321.23(5) new foster care licenses or community residential setting licenses determined to
321.24be needed by the commissioner for the transition of people from personal care assistance
321.25to the home and community-based services.
321.26(b) The commissioner shall determine the need for newly licensed foster care
321.27homes or community residential settings as defined under this subdivision. As part of the
321.28determination, the commissioner shall consider the availability of foster care capacity in
321.29the area in which the licensee seeks to operate, and the recommendation of the local
321.30county board. The determination by the commissioner must be final. A determination of
321.31need is not required for a change in ownership at the same address.
321.32(c) When an adult resident served by the program moves out of a foster home that is
321.33not the primary residence of the license holder according to section 256B.49, subdivision
321.3415 , paragraph (f), or the adult community residential setting, the county shall immediately
321.35inform the Department of Human Services Licensing Division. The department shall
321.36decrease the statewide licensed capacity for adult foster care settings where the physical
322.1location is not the primary residence of the license holder, or for adult community
322.2residential settings, if the voluntary changes described in paragraph (e) are not sufficient to
322.3meet the savings required by reductions in licensed bed capacity under Laws 2011, First
322.4Special Session chapter 9, article 7, sections 1 and 40, paragraph (f), and maintain statewide
322.5long-term care residential services capacity within budgetary limits. Implementation of
322.6the statewide licensed capacity reduction shall begin on July 1, 2013. The commissioner
322.7shall delicense up to 128 beds by June 30, 2014, using the needs determination process.
322.8Prior to any involuntary reduction of licensed capacity, the commissioner shall consult
322.9with lead agencies and license holders to determine which adult foster care settings, where
322.10the physical location is not the primary residence of the license holder, or community
322.11residential settings, are licensed for up to five beds, but have operated at less than full
322.12capacity for 12 or more months as of March 1, 2014. The settings that meet these criteria
322.13must be the first to be considered for an involuntary decrease in statewide licensed capacity,
322.14up to a maximum of 35 beds. If more than 35 beds are identified that meet these criteria, the
322.15commissioner shall prioritize the selection of those beds to be closed based on the length
322.16of time the beds have been vacant. The longer a bed has been vacant, the higher priority
322.17it must be given for closure. Under this paragraph, the commissioner has the authority
322.18to reduce unused licensed capacity of a current foster care program, or the community
322.19residential settings, to accomplish the consolidation or closure of settings. Under this
322.20paragraph, the commissioner has the authority to manage statewide capacity, including
322.21adjusting the capacity available to each county and adjusting statewide available capacity,
322.22to meet the statewide needs identified through the process in paragraph (e). A decreased
322.23licensed capacity according to this paragraph is not subject to appeal under this chapter.
322.24(d) Residential settings that would otherwise be subject to the decreased license
322.25capacity established in paragraph (c) shall be exempt under the following circumstances:
322.26(1) until August 1, 2013, the license holder's beds occupied by residents whose
322.27primary diagnosis is mental illness and the license holder is:
322.28(i) a provider of assertive community treatment (ACT) or adult rehabilitative mental
322.29health services (ARMHS) as defined in section 256B.0623;
322.30(ii) a mental health center certified under Minnesota Rules, parts 9520.0750 to
322.319520.0870;
322.32(iii) a mental health clinic certified under Minnesota Rules, parts 9520.0750 to
322.339520.0870; or
322.34(iv) a provider of intensive residential treatment services (IRTS) licensed under
322.35Minnesota Rules, parts 9520.0500 to 9520.0670; or
323.1(2) the license holder's beds occupied by residents whose primary diagnosis is
323.2mental illness and the license holder is certified under the requirements in subdivision 6a
323.3or section 245D.33.
323.4(e) A resource need determination process, managed at the state level, using the
323.5available reports required by section 144A.351, and other data and information shall
323.6be used to determine where the reduced capacity required under paragraph (c) will be
323.7implemented. The commissioner shall consult with the stakeholders described in section
323.8144A.351 , and employ a variety of methods to improve the state's capacity to meet
323.9long-term care service needs within budgetary limits, including seeking proposals from
323.10service providers or lead agencies to change service type, capacity, or location to improve
323.11services, increase the independence of residents, and better meet needs identified by the
323.12long-term care services reports and statewide data and information. By February 1, 2013,
323.13and August 1, 2014, and each following year, the commissioner shall provide information
323.14and data on the overall capacity of licensed long-term care services, actions taken under
323.15this subdivision to manage statewide long-term care services and supports resources, and
323.16any recommendations for change to the legislative committees with jurisdiction over
323.17health and human services budget.
323.18    (f) At the time of application and reapplication for licensure, the applicant and the
323.19license holder that are subject to the moratorium or an exclusion established in paragraph
323.20(a) are required to inform the commissioner whether the physical location where the foster
323.21care will be provided is or will be the primary residence of the license holder for the entire
323.22period of licensure. If the primary residence of the applicant or license holder changes, the
323.23applicant or license holder must notify the commissioner immediately. The commissioner
323.24shall print on the foster care license certificate whether or not the physical location is the
323.25primary residence of the license holder.
323.26    (g) License holders of foster care homes identified under paragraph (f) that are not
323.27the primary residence of the license holder and that also provide services in the foster care
323.28home that are covered by a federally approved home and community-based services
323.29waiver, as authorized under section 256B.0915, 256B.092, or 256B.49, must inform the
323.30human services licensing division that the license holder provides or intends to provide
323.31these waiver-funded services.

323.32    Sec. 6. Minnesota Statutes 2013 Supplement, section 245A.042, subdivision 3, is
323.33amended to read:
323.34    Subd. 3. Implementation. (a) The commissioner shall implement the
323.35responsibilities of this chapter according to the timelines in paragraphs (b) and (c)
324.1only within the limits of available appropriations or other administrative cost recovery
324.2methodology.
324.3(b) The licensure of home and community-based services according to this section
324.4shall be implemented January 1, 2014. License applications shall be received and
324.5processed on a phased-in schedule as determined by the commissioner beginning July
324.61, 2013. Licenses will be issued thereafter upon the commissioner's determination that
324.7the application is complete according to section 245A.04.
324.8(c) Within the limits of available appropriations or other administrative cost recovery
324.9methodology, implementation of compliance monitoring must be phased in after January
324.101, 2014.
324.11(1) Applicants who do not currently hold a license issued under chapter 245B must
324.12receive an initial compliance monitoring visit after 12 months of the effective date of the
324.13initial license for the purpose of providing technical assistance on how to achieve and
324.14maintain compliance with the applicable law or rules governing the provision of home and
324.15community-based services under chapter 245D. If during the review the commissioner
324.16finds that the license holder has failed to achieve compliance with an applicable law or
324.17rule and this failure does not imminently endanger the health, safety, or rights of the
324.18persons served by the program, the commissioner may issue a licensing review report with
324.19recommendations for achieving and maintaining compliance.
324.20(2) Applicants who do currently hold a license issued under this chapter must receive
324.21a compliance monitoring visit after 24 months of the effective date of the initial license.
324.22(d) Nothing in this subdivision shall be construed to limit the commissioner's
324.23authority to suspend or revoke a license or issue a fine at any time under section 245A.07,
324.24or issue correction orders and make a license conditional for failure to comply with
324.25applicable laws or rules under section 245A.06, based on the nature, chronicity, or severity
324.26of the violation of law or rule and the effect of the violation on the health, safety, or
324.27rights of persons served by the program.
324.28(e) License holders governed under chapter 245D must ensure compliance with the
324.29following requirements within the stated timelines:
324.30(1) service initiation and service planning requirements must be met at the next
324.31annual meeting of the person's support team or by January 1, 2015, whichever is later,
324.32for the following:
324.33    (i) provision of a written notice that identifies the service recipient rights and an
324.34explanation of those rights as required under section 245D.04, subdivision 1;
324.35(ii) service planning for basic support services as required under section 245D.07,
324.36subdivision 2; and
325.1(iii) service planning for intensive support services under section 245D.071,
325.2subdivisions 3 and 4;
325.3(2) staff orientation to program requirements as required under section 245D.09,
325.4subdivision 4, for staff hired before January 1, 2014, must be met by January 1, 2015.
325.5The license holder may otherwise provide documentation verifying these requirements
325.6were met before January 1, 2014;
325.7(3) development of policy and procedures as required under section 245D.11, must
325.8be completed no later than August 31, 2014;
325.9(4) written or electronic notice and copies of policies and procedures must be
325.10provided to all persons or their legal representatives and case managers as required under
325.11section 245D.10, subdivision 4, paragraphs (b) and (c), by September 15, 2014, or within
325.1230 days of development of the required policies and procedures, whichever is earlier; and
325.13(5) all employees must be informed of the revisions and training must be provided on
325.14implementation of the revised policies and procedures as required under section 245D.10,
325.15subdivision 4, paragraph (d), by September 15, 2014, or within 30 days of development of
325.16the required policies and procedures, whichever is earlier.

325.17    Sec. 7. Minnesota Statutes 2013 Supplement, section 245A.16, subdivision 1, is
325.18amended to read:
325.19    Subdivision 1. Delegation of authority to agencies. (a) County agencies and
325.20private agencies that have been designated or licensed by the commissioner to perform
325.21licensing functions and activities under section 245A.04 and background studies for family
325.22child care under chapter 245C; to recommend denial of applicants under section 245A.05;
325.23to issue correction orders, to issue variances, and recommend a conditional license under
325.24section 245A.06, or to recommend suspending or revoking a license or issuing a fine under
325.25section 245A.07, shall comply with rules and directives of the commissioner governing
325.26those functions and with this section. The following variances are excluded from the
325.27delegation of variance authority and may be issued only by the commissioner:
325.28    (1) dual licensure of family child care and child foster care, dual licensure of child
325.29and adult foster care, and adult foster care and family child care;
325.30    (2) adult foster care maximum capacity;
325.31    (3) adult foster care minimum age requirement;
325.32    (4) child foster care maximum age requirement;
325.33    (5) variances regarding disqualified individuals except that county agencies may
325.34issue variances under section 245C.30 regarding disqualified individuals when the county
325.35is responsible for conducting a consolidated reconsideration according to sections 245C.25
326.1and 245C.27, subdivision 2, clauses (a) and (b), of a county maltreatment determination
326.2and a disqualification based on serious or recurring maltreatment;
326.3    (6) the required presence of a caregiver in the adult foster care residence during
326.4normal sleeping hours; and
326.5    (7) variances for community residential setting licenses under chapter 245D.
326.6Except as provided in section 245A.14, subdivision 4, paragraph (e), a county agency
326.7must not grant a license holder a variance to exceed the maximum allowable family child
326.8care license capacity of 14 children.
326.9    (b) County agencies must report information about disqualification reconsiderations
326.10under sections 245C.25 and 245C.27, subdivision 2, paragraphs (a) and (b), and variances
326.11granted under paragraph (a), clause (5), to the commissioner at least monthly in a format
326.12prescribed by the commissioner.
326.13    (c) For family day care programs, the commissioner may authorize licensing reviews
326.14every two years after a licensee has had at least one annual review.
326.15    (d) For family adult day services programs, the commissioner may authorize
326.16licensing reviews every two years after a licensee has had at least one annual review.
326.17    (e) A license issued under this section may be issued for up to two years.
326.18(f) During implementation of chapter 245D, the commissioner shall consider:
326.19(1) the role of counties in quality assurance;
326.20(2) the duties of county licensing staff; and
326.21(3) the possible use of joint powers agreements, according to section 471.59, with
326.22counties through which some licensing duties under chapter 245D may be delegated by
326.23the commissioner to the counties.
326.24Any consideration related to this paragraph must meet all of the requirements of the
326.25corrective action plan ordered by the federal Centers for Medicare and Medicaid Services.
326.26(g) Licensing authority specific to section 245D.06, subdivisions 5, 6, 7, and 8, or
326.27successor provisions; and section 245D.061 or successor provisions, for family child
326.28foster care programs providing out-of-home respite, as identified in section 245D.03,
326.29subdivision 1, paragraph (b), clause (1), is excluded from the delegation of authority
326.30to county and private agencies.

326.31    Sec. 8. Minnesota Statutes 2013 Supplement, section 245D.02, subdivision 3, is
326.32amended to read:
326.33    Subd. 3. Case manager. "Case manager" means the individual designated
326.34to provide waiver case management services, care coordination, or long-term care
326.35consultation, as specified in sections 256B.0913, 256B.0915, 256B.092, and 256B.49,
327.1or successor provisions. For purposes of this chapter, "case manager" includes case
327.2management services as defined in Minnesota Rules, part 9520.0902, subpart 3.

327.3    Sec. 9. Minnesota Statutes 2013 Supplement, section 245D.02, subdivision 4b, is
327.4amended to read:
327.5    Subd. 4b. Coordinated service and support plan. "Coordinated service and
327.6support plan" has the meaning given in sections 256B.0913, subdivision 8; 256B.0915,
327.7subdivision 6; 256B.092, subdivision 1b; and 256B.49, subdivision 15, or successor
327.8provisions. For purposes of this chapter, "coordinated service and support plan" includes
327.9the individual program plan or individual treatment plan as defined in Minnesota Rules,
327.10part 9520.0510, subpart 12.

327.11    Sec. 10. Minnesota Statutes 2013 Supplement, section 245D.02, subdivision 8b,
327.12is amended to read:
327.13    Subd. 8b. Expanded support team. "Expanded support team" means the members
327.14of the support team defined in subdivision 46 34 and a licensed health or mental health
327.15professional or other licensed, certified, or qualified professionals or consultants working
327.16with the person and included in the team at the request of the person or the person's legal
327.17representative.

327.18    Sec. 11. Minnesota Statutes 2013 Supplement, section 245D.02, subdivision 11,
327.19is amended to read:
327.20    Subd. 11. Incident. "Incident" means an occurrence which involves a person and
327.21requires the program to make a response that is not a part of the program's ordinary
327.22provision of services to that person, and includes:
327.23(1) serious injury of a person as determined by section 245.91, subdivision 6;
327.24(2) a person's death;
327.25(3) any medical emergency, unexpected serious illness, or significant unexpected
327.26change in an illness or medical condition of a person that requires the program to call
327.27911, physician treatment, or hospitalization;
327.28(4) any mental health crisis that requires the program to call 911 or, a mental
327.29health crisis intervention team, or a similar mental health response team or service when
327.30available and appropriate;
327.31(5) an act or situation involving a person that requires the program to call 911,
327.32law enforcement, or the fire department;
327.33(6) a person's unauthorized or unexplained absence from a program;
328.1(7) conduct by a person receiving services against another person receiving services
328.2that:
328.3(i) is so severe, pervasive, or objectively offensive that it substantially interferes with
328.4a person's opportunities to participate in or receive service or support;
328.5(ii) places the person in actual and reasonable fear of harm;
328.6(iii) places the person in actual and reasonable fear of damage to property of the
328.7person; or
328.8(iv) substantially disrupts the orderly operation of the program;
328.9(8) any sexual activity between persons receiving services involving force or
328.10coercion as defined under section 609.341, subdivisions 3 and 14;
328.11(9) any emergency use of manual restraint as identified in section 245D.061or
328.12successor provisions; or
328.13(10) a report of alleged or suspected child or vulnerable adult maltreatment under
328.14section 626.556 or 626.557.

328.15    Sec. 12. Minnesota Statutes 2013 Supplement, section 245D.02, subdivision 15b,
328.16is amended to read:
328.17    Subd. 15b. Mechanical restraint. (a) Except for devices worn by the person that
328.18trigger electronic alarms to warn staff that a person is leaving a room or area, which
328.19do not, in and of themselves, restrict freedom of movement, or the use of adaptive aids
328.20or equipment or orthotic devices ordered by a health care professional used to treat or
328.21manage a medical condition, "Mechanical restraint" means the use of devices, materials,
328.22or equipment attached or adjacent to the person's body, or the use of practices that are
328.23intended to restrict freedom of movement or normal access to one's body or body parts,
328.24or limits a person's voluntary movement or holds a person immobile as an intervention
328.25precipitated by a person's behavior. The term applies to the use of mechanical restraint
328.26used to prevent injury with persons who engage in self-injurious behaviors, such as
328.27head-banging, gouging, or other actions resulting in tissue damage that have caused or
328.28could cause medical problems resulting from the self-injury.
328.29(b) Mechanical restraint does not include the following:
328.30(1) devices worn by the person that trigger electronic alarms to warn staff that a
328.31person is leaving a room or area, which do not, in and of themselves, restrict freedom of
328.32movement; or
328.33(2) the use of adaptive aids or equipment or orthotic devices ordered by a health care
328.34professional used to treat or manage a medical condition.

329.1    Sec. 13. Minnesota Statutes 2013 Supplement, section 245D.02, subdivision 29,
329.2is amended to read:
329.3    Subd. 29. Seclusion. "Seclusion" means the placement of a person alone in: (1)
329.4removing a person involuntarily to a room from which exit is prohibited by a staff person
329.5or a mechanism such as a lock, a device, or an object positioned to hold the door closed
329.6or otherwise prevent the person from leaving the room.; or (2) otherwise involuntarily
329.7removing or separating a person from an area, activity, situation, or social contact with
329.8others and blocking or preventing the person's return.

329.9    Sec. 14. Minnesota Statutes 2013 Supplement, section 245D.02, subdivision 34,
329.10is amended to read:
329.11    Subd. 34. Support team. "Support team" means the service planning team
329.12identified in section 256B.49, subdivision 15, or; the interdisciplinary team identified in
329.13Minnesota Rules, part 9525.0004, subpart 14; or the case management team as defined in
329.14Minnesota Rules, part 9520.0902, subpart 6.

329.15    Sec. 15. Minnesota Statutes 2013 Supplement, section 245D.02, subdivision 34a,
329.16is amended to read:
329.17    Subd. 34a. Time out. "Time out" means removing a person involuntarily from an
329.18ongoing activity to a room, either locked or unlocked, or otherwise separating a person
329.19from others in a way that prevents social contact and prevents the person from leaving the
329.20situation if the person chooses the involuntary removal of a person for a period of time to
329.21a designated area from which the person is not prevented from leaving. For the purpose of
329.22this chapter, "time out" does not mean voluntary removal or self-removal for the purpose
329.23of calming, prevention of escalation, or de-escalation of behavior for a period of up to 15
329.24minutes. "Time out" does not include a person voluntarily moving from an ongoing activity
329.25to an unlocked room or otherwise separating from a situation or social contact with others
329.26if the person chooses. For the purposes of this definition, "voluntarily" means without
329.27being forced, compelled, or coerced.; nor does it mean taking a brief "break" or "rest" from
329.28an activity for the purpose of providing the person an opportunity to regain self-control.

329.29    Sec. 16. Minnesota Statutes 2013 Supplement, section 245D.02, is amended by adding
329.30a subdivision to read:
329.31    Subd. 35b. Unlicensed staff. "Unlicensed staff" means individuals not otherwise
329.32licensed or certified by a governmental health board or agency.

330.1    Sec. 17. Minnesota Statutes 2013 Supplement, section 245D.03, subdivision 1, is
330.2amended to read:
330.3    Subdivision 1. Applicability. (a) The commissioner shall regulate the provision of
330.4home and community-based services to persons with disabilities and persons age 65 and
330.5older pursuant to this chapter. The licensing standards in this chapter govern the provision
330.6of basic support services and intensive support services.
330.7(b) Basic support services provide the level of assistance, supervision, and care that
330.8is necessary to ensure the health and safety of the person and do not include services that
330.9are specifically directed toward the training, treatment, habilitation, or rehabilitation of
330.10the person. Basic support services include:
330.11(1) in-home and out-of-home respite care services as defined in section 245A.02,
330.12subdivision 15, and under the brain injury, community alternative care, community
330.13alternatives for disabled individuals, developmental disability, and elderly waiver plans,
330.14excluding out-of-home respite care provided to children in a family child foster care home
330.15licensed under Minnesota Rules, parts 2960.3000 to 2960.3100, when the child foster care
330.16license holder complies with the requirements under section 245D.06, subdivisions 5, 6,
330.177, and 8, or successor provisions; and section 245D.061 or successor provisions, which
330.18must be stipulated in the statement of intended use required under Minnesota Rules,
330.19part 2960.3000, subpart 4;
330.20(2) adult companion services as defined under the brain injury, community
330.21alternatives for disabled individuals, and elderly waiver plans, excluding adult companion
330.22services provided under the Corporation for National and Community Services Senior
330.23Companion Program established under the Domestic Volunteer Service Act of 1973,
330.24Public Law 98-288;
330.25(3) personal support as defined under the developmental disability waiver plan;
330.26(4) 24-hour emergency assistance, personal emergency response as defined under the
330.27community alternatives for disabled individuals and developmental disability waiver plans;
330.28(5) night supervision services as defined under the brain injury waiver plan; and
330.29(6) homemaker services as defined under the community alternatives for disabled
330.30individuals, brain injury, community alternative care, developmental disability, and elderly
330.31waiver plans, excluding providers licensed by the Department of Health under chapter
330.32144A and those providers providing cleaning services only.
330.33(c) Intensive support services provide assistance, supervision, and care that is
330.34necessary to ensure the health and safety of the person and services specifically directed
330.35toward the training, habilitation, or rehabilitation of the person. Intensive support services
330.36include:
331.1(1) intervention services, including:
331.2(i) behavioral support services as defined under the brain injury and community
331.3alternatives for disabled individuals waiver plans;
331.4(ii) in-home or out-of-home crisis respite services as defined under the developmental
331.5disability waiver plan; and
331.6(iii) specialist services as defined under the current developmental disability waiver
331.7plan;
331.8(2) in-home support services, including:
331.9(i) in-home family support and supported living services as defined under the
331.10developmental disability waiver plan;
331.11(ii) independent living services training as defined under the brain injury and
331.12community alternatives for disabled individuals waiver plans; and
331.13(iii) semi-independent living services;
331.14(3) residential supports and services, including:
331.15(i) supported living services as defined under the developmental disability waiver
331.16plan provided in a family or corporate child foster care residence, a family adult foster
331.17care residence, a community residential setting, or a supervised living facility;
331.18(ii) foster care services as defined in the brain injury, community alternative care,
331.19and community alternatives for disabled individuals waiver plans provided in a family or
331.20corporate child foster care residence, a family adult foster care residence, or a community
331.21residential setting; and
331.22(iii) residential services provided to more than four persons with developmental
331.23disabilities in a supervised living facility that is certified by the Department of Health as
331.24an ICF/DD, including ICFs/DD;
331.25(4) day services, including:
331.26(i) structured day services as defined under the brain injury waiver plan;
331.27(ii) day training and habilitation services under sections 252.40 to 252.46, and as
331.28defined under the developmental disability waiver plan; and
331.29(iii) prevocational services as defined under the brain injury and community
331.30alternatives for disabled individuals waiver plans; and
331.31(5) supported employment as defined under the brain injury, developmental
331.32disability, and community alternatives for disabled individuals waiver plans.

331.33    Sec. 18. Minnesota Statutes 2013 Supplement, section 245D.03, is amended by adding
331.34a subdivision to read:
332.1    Subd. 1a. Effect. The home and community-based services standards establish
332.2health, safety, welfare, and rights protections for persons receiving services governed by
332.3this chapter. The standards recognize the diversity of persons receiving these services and
332.4require that these services are provided in a manner that meets each person's individual
332.5needs and ensures continuity in service planning, care, and coordination between the
332.6license holder and members of each person's support team or expanded support team.

332.7    Sec. 19. Minnesota Statutes 2013 Supplement, section 245D.03, subdivision 2, is
332.8amended to read:
332.9    Subd. 2. Relationship to other standards governing home and community-based
332.10services. (a) A license holder governed by this chapter is also subject to the licensure
332.11requirements under chapter 245A.
332.12(b) A corporate or family child foster care site controlled by a license holder and
332.13providing services governed by this chapter is exempt from compliance with section
332.14245D.04. This exemption applies to foster care homes where at least one resident is
332.15receiving residential supports and services licensed according to this chapter. This chapter
332.16does not apply to corporate or family child foster care homes that do not provide services
332.17licensed under this chapter.
332.18(c) A family adult foster care site controlled by a license holder and providing
332.19services governed by this chapter is exempt from compliance with Minnesota Rules,
332.20parts 9555.6185; 9555.6225, subpart 8; 9555.6245; 9555.6255; and 9555.6265. These
332.21exemptions apply to family adult foster care homes where at least one resident is receiving
332.22residential supports and services licensed according to this chapter. This chapter does
332.23not apply to family adult foster care homes that do not provide services licensed under
332.24this chapter.
332.25(d) A license holder providing services licensed according to this chapter in a
332.26supervised living facility is exempt from compliance with sections section 245D.04;
332.27245D.05, subdivision 2; and 245D.06, subdivision 2, clauses (1), (4), and (5).
332.28(e) A license holder providing residential services to persons in an ICF/DD is exempt
332.29from compliance with sections 245D.04; 245D.05, subdivision 1b; 245D.06, subdivision
332.302 , clauses (4) and (5); 245D.071, subdivisions 4 and 5; 245D.081, subdivision 2; 245D.09,
332.31subdivision 7; 245D.095, subdivision 2; and 245D.11, subdivision 3.
332.32(f) A license holder providing homemaker services licensed according to this chapter
332.33and registered according to chapter 144A is exempt from compliance with section 245D.04.
333.1(g) Nothing in this chapter prohibits a license holder from concurrently serving
333.2persons without disabilities or people who are or are not age 65 and older, provided this
333.3chapter's standards are met as well as other relevant standards.
333.4(h) The documentation required under sections 245D.07 and 245D.071 must meet
333.5the individual program plan requirements identified in section 256B.092 or successor
333.6provisions.

333.7    Sec. 20. Minnesota Statutes 2013 Supplement, section 245D.03, subdivision 3, is
333.8amended to read:
333.9    Subd. 3. Variance. If the conditions in section 245A.04, subdivision 9, are met,
333.10the commissioner may grant a variance to any of the requirements in this chapter, except
333.11sections 245D.04; 245D.06, subdivision 4, paragraph (b), and subdivision 6, or successor
333.12provisions; and 245D.061, subdivision 3, or provisions governing data practices and
333.13information rights of persons.

333.14    Sec. 21. Minnesota Statutes 2013 Supplement, section 245D.04, subdivision 3, is
333.15amended to read:
333.16    Subd. 3. Protection-related rights. (a) A person's protection-related rights include
333.17the right to:
333.18(1) have personal, financial, service, health, and medical information kept private,
333.19and be advised of disclosure of this information by the license holder;
333.20(2) access records and recorded information about the person in accordance with
333.21applicable state and federal law, regulation, or rule;
333.22(3) be free from maltreatment;
333.23(4) be free from restraint, time out, or seclusion, restrictive intervention, or other
333.24prohibited procedure identified in section 245D.06, subdivision 5, or successor provisions
333.25 except for: (i) emergency use of manual restraint to protect the person from imminent
333.26danger to self or others according to the requirements in section 245D.06; 245D.061 or
333.27successor provisions; or (ii) the use of safety interventions as part of a positive support
333.28transition plan under section 245D.06, subdivision 8, or successor provisions;
333.29(5) receive services in a clean and safe environment when the license holder is the
333.30owner, lessor, or tenant of the service site;
333.31(6) be treated with courtesy and respect and receive respectful treatment of the
333.32person's property;
333.33(7) reasonable observance of cultural and ethnic practice and religion;
334.1(8) be free from bias and harassment regarding race, gender, age, disability,
334.2spirituality, and sexual orientation;
334.3(9) be informed of and use the license holder's grievance policy and procedures,
334.4including knowing how to contact persons responsible for addressing problems and to
334.5appeal under section 256.045;
334.6(10) know the name, telephone number, and the Web site, e-mail, and street
334.7addresses of protection and advocacy services, including the appropriate state-appointed
334.8ombudsman, and a brief description of how to file a complaint with these offices;
334.9(11) assert these rights personally, or have them asserted by the person's family,
334.10authorized representative, or legal representative, without retaliation;
334.11(12) give or withhold written informed consent to participate in any research or
334.12experimental treatment;
334.13(13) associate with other persons of the person's choice;
334.14(14) personal privacy; and
334.15(15) engage in chosen activities.
334.16(b) For a person residing in a residential site licensed according to chapter 245A,
334.17or where the license holder is the owner, lessor, or tenant of the residential service site,
334.18protection-related rights also include the right to:
334.19(1) have daily, private access to and use of a non-coin-operated telephone for local
334.20calls and long-distance calls made collect or paid for by the person;
334.21(2) receive and send, without interference, uncensored, unopened mail or electronic
334.22correspondence or communication;
334.23(3) have use of and free access to common areas in the residence; and
334.24(4) privacy for visits with the person's spouse, next of kin, legal counsel, religious
334.25advisor, or others, in accordance with section 363A.09 of the Human Rights Act, including
334.26privacy in the person's bedroom.
334.27(c) Restriction of a person's rights under subdivision 2, clause (10), or paragraph (a),
334.28clauses (13) to (15), or paragraph (b) is allowed only if determined necessary to ensure
334.29the health, safety, and well-being of the person. Any restriction of those rights must be
334.30documented in the person's coordinated service and support plan or coordinated service
334.31and support plan addendum. The restriction must be implemented in the least restrictive
334.32alternative manner necessary to protect the person and provide support to reduce or
334.33eliminate the need for the restriction in the most integrated setting and inclusive manner.
334.34The documentation must include the following information:
334.35(1) the justification for the restriction based on an assessment of the person's
334.36vulnerability related to exercising the right without restriction;
335.1(2) the objective measures set as conditions for ending the restriction;
335.2(3) a schedule for reviewing the need for the restriction based on the conditions
335.3for ending the restriction to occur semiannually from the date of initial approval, at a
335.4minimum, or more frequently if requested by the person, the person's legal representative,
335.5if any, and case manager; and
335.6(4) signed and dated approval for the restriction from the person, or the person's
335.7legal representative, if any. A restriction may be implemented only when the required
335.8approval has been obtained. Approval may be withdrawn at any time. If approval is
335.9withdrawn, the right must be immediately and fully restored.

335.10    Sec. 22. Minnesota Statutes 2013 Supplement, section 245D.05, subdivision 1, is
335.11amended to read:
335.12    Subdivision 1. Health needs. (a) The license holder is responsible for meeting
335.13health service needs assigned in the coordinated service and support plan or the
335.14coordinated service and support plan addendum, consistent with the person's health needs.
335.15The license holder is responsible for promptly notifying the person's legal representative,
335.16if any, and the case manager of changes in a person's physical and mental health needs
335.17affecting health service needs assigned to the license holder in the coordinated service and
335.18support plan or the coordinated service and support plan addendum, when discovered by
335.19the license holder, unless the license holder has reason to know the change has already
335.20been reported. The license holder must document when the notice is provided.
335.21(b) If responsibility for meeting the person's health service needs has been assigned
335.22to the license holder in the coordinated service and support plan or the coordinated service
335.23and support plan addendum, the license holder must maintain documentation on how the
335.24person's health needs will be met, including a description of the procedures the license
335.25holder will follow in order to:
335.26(1) provide medication setup, assistance, or medication administration according
335.27to this chapter. Unlicensed staff responsible for medication setup or medication
335.28administration under this section must complete training according to section 245D.09,
335.29subdivision 4a, paragraph (d);
335.30(2) monitor health conditions according to written instructions from a licensed
335.31health professional;
335.32(3) assist with or coordinate medical, dental, and other health service appointments; or
335.33(4) use medical equipment, devices, or adaptive aides or technology safely and
335.34correctly according to written instructions from a licensed health professional.

336.1    Sec. 23. Minnesota Statutes 2013 Supplement, section 245D.05, subdivision 1a,
336.2is amended to read:
336.3    Subd. 1a. Medication setup. (a) For the purposes of this subdivision, "medication
336.4setup" means the arranging of medications according to instructions from the pharmacy,
336.5the prescriber, or a licensed nurse, for later administration when the license holder
336.6is assigned responsibility for medication assistance or medication administration in
336.7the coordinated service and support plan or the coordinated service and support plan
336.8addendum. A prescription label or the prescriber's written or electronically recorded order
336.9for the prescription is sufficient to constitute written instructions from the prescriber.
336.10(b) If responsibility for medication setup is assigned to the license holder in
336.11the coordinated service and support plan or the coordinated service and support plan
336.12addendum, or if the license holder provides it as part of medication assistance or
336.13medication administration, the license holder must document in the person's medication
336.14administration record: dates of setup, name of medication, quantity of dose, times to be
336.15administered, and route of administration at time of setup; and, when the person will be
336.16away from home, to whom the medications were given.

336.17    Sec. 24. Minnesota Statutes 2013 Supplement, section 245D.05, subdivision 1b,
336.18is amended to read:
336.19    Subd. 1b. Medication assistance. (a) For purposes of this subdivision, "medication
336.20assistance" means any of the following:
336.21(1) bringing to the person and opening a container of previously set up medications,
336.22emptying the container into the person's hand, or opening and giving the medications in
336.23the original container to the person under the direction of the person;
336.24(2) bringing to the person liquids or food to accompany the medication; or
336.25(3) providing reminders to take regularly scheduled medication or perform regularly
336.26scheduled treatments and exercises.
336.27(b) If responsibility for medication assistance is assigned to the license holder
336.28in the coordinated service and support plan or the coordinated service and support
336.29plan addendum, the license holder must ensure that the requirements of subdivision 2,
336.30paragraph (b), have been met when staff provides medication assistance to enable is
336.31provided in a manner that enables a person to self-administer medication or treatment
336.32when the person is capable of directing the person's own care, or when the person's legal
336.33representative is present and able to direct care for the person. For the purposes of this
336.34subdivision, "medication assistance" means any of the following:
337.1(1) bringing to the person and opening a container of previously set up medications,
337.2emptying the container into the person's hand, or opening and giving the medications in
337.3the original container to the person;
337.4(2) bringing to the person liquids or food to accompany the medication; or
337.5(3) providing reminders to take regularly scheduled medication or perform regularly
337.6scheduled treatments and exercises.

337.7    Sec. 25. Minnesota Statutes 2013 Supplement, section 245D.05, subdivision 2, is
337.8amended to read:
337.9    Subd. 2. Medication administration. (a) If responsibility for medication
337.10administration is assigned to the license holder in the coordinated service and support
337.11plan or the coordinated service and support plan addendum, the license holder must
337.12implement the following medication administration procedures to ensure a person takes
337.13medications and treatments as prescribed For purposes of this subdivision, "medication
337.14administration" means:
337.15(1) checking the person's medication record;
337.16(2) preparing the medication as necessary;
337.17(3) administering the medication or treatment to the person;
337.18(4) documenting the administration of the medication or treatment or the reason for
337.19not administering the medication or treatment; and
337.20(5) reporting to the prescriber or a nurse any concerns about the medication or
337.21treatment, including side effects, effectiveness, or a pattern of the person refusing to
337.22take the medication or treatment as prescribed. Adverse reactions must be immediately
337.23reported to the prescriber or a nurse.
337.24(b)(1) If responsibility for medication administration is assigned to the license holder
337.25in the coordinated service and support plan or the coordinated service and support plan
337.26addendum, the license holder must implement medication administration procedures
337.27to ensure a person takes medications and treatments as prescribed. The license holder
337.28must ensure that the requirements in clauses (2) to (4) and (3) have been met before
337.29administering medication or treatment.
337.30(2) The license holder must obtain written authorization from the person or the
337.31person's legal representative to administer medication or treatment and must obtain
337.32reauthorization annually as needed. This authorization shall remain in effect unless it is
337.33withdrawn in writing and may be withdrawn at any time. If the person or the person's
337.34legal representative refuses to authorize the license holder to administer medication, the
338.1medication must not be administered. The refusal to authorize medication administration
338.2must be reported to the prescriber as expediently as possible.
338.3(3) The staff person responsible for administering the medication or treatment must
338.4complete medication administration training according to section 245D.09, subdivision
338.5 4a, paragraphs (a) and (c), and, as applicable to the person, paragraph (d).
338.6(4) (3) For a license holder providing intensive support services, the medication or
338.7treatment must be administered according to the license holder's medication administration
338.8policy and procedures as required under section 245D.11, subdivision 2, clause (3).
338.9(c) The license holder must ensure the following information is documented in the
338.10person's medication administration record:
338.11(1) the information on the current prescription label or the prescriber's current
338.12written or electronically recorded order or prescription that includes the person's name,
338.13description of the medication or treatment to be provided, and the frequency and other
338.14information needed to safely and correctly administer the medication or treatment to
338.15ensure effectiveness;
338.16(2) information on any risks or other side effects that are reasonable to expect, and
338.17any contraindications to its use. This information must be readily available to all staff
338.18administering the medication;
338.19(3) the possible consequences if the medication or treatment is not taken or
338.20administered as directed;
338.21(4) instruction on when and to whom to report the following:
338.22(i) if a dose of medication is not administered or treatment is not performed as
338.23prescribed, whether by error by the staff or the person or by refusal by the person; and
338.24(ii) the occurrence of possible adverse reactions to the medication or treatment;
338.25(5) notation of any occurrence of a dose of medication not being administered or
338.26treatment not performed as prescribed, whether by error by the staff or the person or by
338.27refusal by the person, or of adverse reactions, and when and to whom the report was
338.28made; and
338.29(6) notation of when a medication or treatment is started, administered, changed, or
338.30discontinued.

338.31    Sec. 26. Minnesota Statutes 2013 Supplement, section 245D.05, subdivision 4, is
338.32amended to read:
338.33    Subd. 4. Reviewing and reporting medication and treatment issues. (a) When
338.34assigned responsibility for medication administration, the license holder must ensure
338.35that the information maintained in the medication administration record is current and
339.1is regularly reviewed to identify medication administration errors. At a minimum, the
339.2review must be conducted every three months, or more frequently as directed in the
339.3coordinated service and support plan or coordinated service and support plan addendum
339.4or as requested by the person or the person's legal representative. Based on the review,
339.5the license holder must develop and implement a plan to correct patterns of medication
339.6administration errors when identified.
339.7(b) If assigned responsibility for medication assistance or medication administration,
339.8the license holder must report the following to the person's legal representative and case
339.9manager as they occur or as otherwise directed in the coordinated service and support plan
339.10or the coordinated service and support plan addendum:
339.11(1) any reports made to the person's physician or prescriber required under
339.12subdivision 2, paragraph (c), clause (4);
339.13(2) a person's refusal or failure to take or receive medication or treatment as
339.14prescribed; or
339.15(3) concerns about a person's self-administration of medication or treatment.

339.16    Sec. 27. Minnesota Statutes 2013 Supplement, section 245D.05, subdivision 5, is
339.17amended to read:
339.18    Subd. 5. Injectable medications. Injectable medications may be administered
339.19according to a prescriber's order and written instructions when one of the following
339.20conditions has been met:
339.21(1) a registered nurse or licensed practical nurse will administer the subcutaneous or
339.22intramuscular injection;
339.23(2) a supervising registered nurse with a physician's order has delegated the
339.24administration of subcutaneous injectable medication to an unlicensed staff member
339.25and has provided the necessary training; or
339.26(3) there is an agreement signed by the license holder, the prescriber, and the
339.27person or the person's legal representative specifying what subcutaneous injections may
339.28be given, when, how, and that the prescriber must retain responsibility for the license
339.29holder's giving the injections. A copy of the agreement must be placed in the person's
339.30service recipient record.
339.31Only licensed health professionals are allowed to administer psychotropic
339.32medications by injection.

339.33    Sec. 28. Minnesota Statutes 2013 Supplement, section 245D.051, is amended to read:
339.34245D.051 PSYCHOTROPIC MEDICATION USE AND MONITORING.
340.1    Subdivision 1. Conditions for psychotropic medication administration. (a)
340.2When a person is prescribed a psychotropic medication and the license holder is assigned
340.3responsibility for administration of the medication in the person's coordinated service
340.4and support plan or the coordinated service and support plan addendum, the license
340.5holder must ensure that the requirements in paragraphs (b) to (d) and section 245D.05,
340.6subdivision 2, are met.
340.7(b) Use of the medication must be included in the person's coordinated service and
340.8support plan or in the coordinated service and support plan addendum and based on a
340.9prescriber's current written or electronically recorded prescription.
340.10(c) (b) The license holder must develop, implement, and maintain the following
340.11documentation in the person's coordinated service and support plan addendum according
340.12to the requirements in sections 245D.07 and 245D.071:
340.13(1) a description of the target symptoms that the psychotropic medication is to
340.14alleviate; and
340.15(2) documentation methods the license holder will use to monitor and measure
340.16changes in the target symptoms that are to be alleviated by the psychotropic medication if
340.17required by the prescriber. The license holder must collect and report on medication and
340.18symptom-related data as instructed by the prescriber. The license holder must provide
340.19the monitoring data to the expanded support team for review every three months, or as
340.20otherwise requested by the person or the person's legal representative.
340.21For the purposes of this section, "target symptom" refers to any perceptible
340.22diagnostic criteria for a person's diagnosed mental disorder, as defined by the Diagnostic
340.23and Statistical Manual of Mental Disorders Fourth Edition Text Revision (DSM-IV-TR) or
340.24successive editions, that has been identified for alleviation.
340.25    Subd. 2. Refusal to authorize psychotropic medication. If the person or the
340.26person's legal representative refuses to authorize the administration of a psychotropic
340.27medication as ordered by the prescriber, the license holder must follow the requirement in
340.28section 245D.05, subdivision 2, paragraph (b), clause (2). not administer the medication.
340.29The refusal to authorize medication administration must be reported to the prescriber as
340.30expediently as possible. After reporting the refusal to the prescriber, the license holder
340.31must follow any directives or orders given by the prescriber. A court order must be
340.32obtained to override the refusal. A refusal may not be overridden without a court order.
340.33Refusal to authorize administration of a specific psychotropic medication is not grounds
340.34for service termination and does not constitute an emergency. A decision to terminate
340.35services must be reached in compliance with section 245D.10, subdivision 3.

341.1    Sec. 29. Minnesota Statutes 2013 Supplement, section 245D.06, subdivision 1, is
341.2amended to read:
341.3    Subdivision 1. Incident response and reporting. (a) The license holder must
341.4respond to incidents under section 245D.02, subdivision 11, that occur while providing
341.5services to protect the health and safety of and minimize risk of harm to the person.
341.6(b) The license holder must maintain information about and report incidents to the
341.7person's legal representative or designated emergency contact and case manager within
341.824 hours of an incident occurring while services are being provided, within 24 hours of
341.9discovery or receipt of information that an incident occurred, unless the license holder
341.10has reason to know that the incident has already been reported, or as otherwise directed
341.11in a person's coordinated service and support plan or coordinated service and support
341.12plan addendum. An incident of suspected or alleged maltreatment must be reported as
341.13required under paragraph (d), and an incident of serious injury or death must be reported
341.14as required under paragraph (e).
341.15(c) When the incident involves more than one person, the license holder must not
341.16disclose personally identifiable information about any other person when making the report
341.17to each person and case manager unless the license holder has the consent of the person.
341.18(d) Within 24 hours of reporting maltreatment as required under section 626.556
341.19or 626.557, the license holder must inform the case manager of the report unless there is
341.20reason to believe that the case manager is involved in the suspected maltreatment. The
341.21license holder must disclose the nature of the activity or occurrence reported and the
341.22agency that received the report.
341.23(e) The license holder must report the death or serious injury of the person as
341.24required in paragraph (b) and to the Department of Human Services Licensing Division,
341.25and the Office of Ombudsman for Mental Health and Developmental Disabilities as
341.26required under section 245.94, subdivision 2a, within 24 hours of the death, or receipt of
341.27information that the death occurred, unless the license holder has reason to know that the
341.28death has already been reported.
341.29(f) When a death or serious injury occurs in a facility certified as an intermediate
341.30care facility for persons with developmental disabilities, the death or serious injury must
341.31be reported to the Department of Health, Office of Health Facility Complaints, and the
341.32Office of Ombudsman for Mental Health and Developmental Disabilities, as required
341.33under sections 245.91 and 245.94, subdivision 2a, unless the license holder has reason to
341.34know that the death has already been reported.
341.35(g) The license holder must conduct an internal review of incident reports of deaths
341.36and serious injuries that occurred while services were being provided and that were not
342.1reported by the program as alleged or suspected maltreatment, for identification of incident
342.2patterns, and implementation of corrective action as necessary to reduce occurrences.
342.3The review must include an evaluation of whether related policies and procedures were
342.4followed, whether the policies and procedures were adequate, whether there is a need for
342.5additional staff training, whether the reported event is similar to past events with the
342.6persons or the services involved, and whether there is a need for corrective action by the
342.7license holder to protect the health and safety of persons receiving services. Based on
342.8the results of this review, the license holder must develop, document, and implement a
342.9corrective action plan designed to correct current lapses and prevent future lapses in
342.10performance by staff or the license holder, if any.
342.11(h) The license holder must verbally report the emergency use of manual restraint
342.12of a person as required in paragraph (b) within 24 hours of the occurrence. The license
342.13holder must ensure the written report and internal review of all incident reports of the
342.14emergency use of manual restraints are completed according to the requirements in section
342.15245D.061 or successor provisions .

342.16    Sec. 30. Minnesota Statutes 2013 Supplement, section 245D.06, subdivision 2, is
342.17amended to read:
342.18    Subd. 2. Environment and safety. The license holder must:
342.19(1) ensure the following when the license holder is the owner, lessor, or tenant
342.20of the service site:
342.21(i) the service site is a safe and hazard-free environment;
342.22(ii) that toxic substances or dangerous items are inaccessible to persons served by
342.23the program only to protect the safety of a person receiving services when a known safety
342.24threat exists and not as a substitute for staff supervision or interactions with a person who
342.25is receiving services. If toxic substances or dangerous items are made inaccessible, the
342.26license holder must document an assessment of the physical plant, its environment, and its
342.27population identifying the risk factors which require toxic substances or dangerous items
342.28to be inaccessible and a statement of specific measures to be taken to minimize the safety
342.29risk to persons receiving services and to restore accessibility to all persons receiving
342.30services at the service site;
342.31(iii) doors are locked from the inside to prevent a person from exiting only when
342.32necessary to protect the safety of a person receiving services and not as a substitute for
342.33staff supervision or interactions with the person. If doors are locked from the inside, the
342.34license holder must document an assessment of the physical plant, the environment and
342.35the population served, identifying the risk factors which require the use of locked doors,
343.1and a statement of specific measures to be taken to minimize the safety risk to persons
343.2receiving services at the service site; and
343.3(iv) a staff person is available at the service site who is trained in basic first aid and,
343.4when required in a person's coordinated service and support plan or coordinated service
343.5and support plan addendum, cardiopulmonary resuscitation (CPR) whenever persons are
343.6present and staff are required to be at the site to provide direct support service. The CPR
343.7training must include in-person instruction, hands-on practice, and an observed skills
343.8assessment under the direct supervision of a CPR instructor;
343.9(2) maintain equipment, vehicles, supplies, and materials owned or leased by the
343.10license holder in good condition when used to provide services;
343.11(3) follow procedures to ensure safe transportation, handling, and transfers of the
343.12person and any equipment used by the person, when the license holder is responsible for
343.13transportation of a person or a person's equipment;
343.14(4) be prepared for emergencies and follow emergency response procedures to
343.15ensure the person's safety in an emergency; and
343.16(5) follow universal precautions and sanitary practices, including hand washing, for
343.17infection prevention and control, and to prevent communicable diseases.

343.18    Sec. 31. Minnesota Statutes 2013 Supplement, section 245D.06, subdivision 4, is
343.19amended to read:
343.20    Subd. 4. Funds and property; legal representative restrictions. (a) Whenever the
343.21license holder assists a person with the safekeeping of funds or other property according
343.22to section 245A.04, subdivision 13, the license holder must obtain written authorization
343.23to do so from the person or the person's legal representative and the case manager.
343.24Authorization must be obtained within five working days of service initiation and renewed
343.25annually thereafter. At the time initial authorization is obtained, the license holder must
343.26survey, document, and implement the preferences of the person or the person's legal
343.27representative and the case manager for frequency of receiving a statement that itemizes
343.28receipts and disbursements of funds or other property. The license holder must document
343.29changes to these preferences when they are requested.
343.30(b) A license holder or staff person may not accept powers-of-attorney from a person
343.31receiving services from the license holder for any purpose. This does not apply to license
343.32holders that are Minnesota counties or other units of government or to staff persons
343.33employed by license holders who were acting as attorney-in-fact for specific individuals
343.34prior to implementation of this chapter. The license holder must maintain documentation
343.35of the power-of-attorney in the service recipient record.
344.1(c) A license holder or staff person is restricted from accepting an appointment
344.2as a guardian as follows:
344.3(1) under section 524.5-309 of the Uniform Probate Code, any individual or agency
344.4that provides residence, custodial care, medical care, employment training, or other care
344.5or services for which the individual or agency receives a fee may not be appointed as
344.6guardian unless related to the respondent by blood, marriage, or adoption; and
344.7(2) under section 245A.03, subdivision 2, paragraph (a), clause (1), a related
344.8individual as defined under section 245A.02, subdivision 13, is excluded from licensure.
344.9Services provided by a license holder to a person under the license holder's guardianship
344.10are not licensed services.
344.11(c) (d) Upon the transfer or death of a person, any funds or other property of the
344.12person must be surrendered to the person or the person's legal representative, or given to
344.13the executor or administrator of the estate in exchange for an itemized receipt.

344.14    Sec. 32. Minnesota Statutes 2013 Supplement, section 245D.06, subdivision 6, is
344.15amended to read:
344.16    Subd. 6. Restricted procedures. (a) The following procedures are allowed when
344.17the procedures are implemented in compliance with the standards governing their use as
344.18identified in clauses (1) to (3). Allowed but restricted procedures include:
344.19(1) permitted actions and procedures subject to the requirements in subdivision 7;
344.20(2) procedures identified in a positive support transition plan subject to the
344.21requirements in subdivision 8; or
344.22(3) emergency use of manual restraint subject to the requirements in section
344.23245D.061 .
344.24For purposes of this chapter, this section supersedes the requirements identified in
344.25Minnesota Rules, part 9525.2740.
344.26    (b) A restricted procedure identified in paragraph (a) must not:
344.27    (1) be implemented with a child in a manner that constitutes sexual abuse, neglect,
344.28physical abuse, or mental injury, as defined in section 626.556, subdivision 2;
344.29(2) be implemented with an adult in a manner that constitutes abuse or neglect as
344.30defined in section 626.5572, subdivision 2 or 17;
344.31(3) be implemented in a manner that violates a person's rights identified in section
344.32245D.04;
344.33(4) restrict a person's normal access to a nutritious diet, drinking water, adequate
344.34ventilation, necessary medical care, ordinary hygiene facilities, normal sleeping
345.1conditions, necessary clothing, or any protection required by state licensing standards or
345.2federal regulations governing the program;
345.3(5) deny the person visitation or ordinary contact with legal counsel, a legal
345.4representative, or next of kin;
345.5(6) be used for the convenience of staff, as punishment, as a substitute for adequate
345.6staffing, or as a consequence if the person refuses to participate in the treatment or services
345.7provided by the program;
345.8(7) use prone restraint. For purposes of this section, "prone restraint" means use
345.9of manual restraint that places a person in a face-down position. Prone restraint does
345.10not include brief physical holding of a person who, during an emergency use of manual
345.11restraint, rolls into a prone position, if the person is restored to a standing, sitting, or
345.12side-lying position as quickly as possible;
345.13(8) apply back or chest pressure while a person is in a prone position as identified in
345.14clause (7), supine position, or side-lying position; or
345.15(9) be implemented in a manner that is contraindicated for any of the person's known
345.16medical or psychological limitations.

345.17    Sec. 33. Minnesota Statutes 2013 Supplement, section 245D.06, subdivision 7, is
345.18amended to read:
345.19    Subd. 7. Permitted actions and procedures. (a) Use of the instructional techniques
345.20and intervention procedures as identified in paragraphs (b) and (c) is permitted when used
345.21on an intermittent or continuous basis. When used on a continuous basis, it must be
345.22addressed in a person's coordinated service and support plan addendum as identified in
345.23sections 245D.07 and 245D.071. For purposes of this chapter, the requirements of this
345.24subdivision supersede the requirements identified in Minnesota Rules, part 9525.2720.
345.25(b) Physical contact or instructional techniques must use the least restrictive
345.26alternative possible to meet the needs of the person and may be used:
345.27(1) to calm or comfort a person by holding that person with no resistance from
345.28that person;
345.29(2) to protect a person known to be at risk or of injury due to frequent falls as a result
345.30of a medical condition;
345.31(3) to facilitate the person's completion of a task or response when the person does
345.32not resist or the person's resistance is minimal in intensity and duration; or
345.33(4) to briefly block or redirect a person's limbs or body without holding the person or
345.34limiting the person's movement to interrupt the person's behavior that may result in injury
345.35to self or others. with less than 60 seconds of physical contact by staff; or
346.1(5) to redirect a person's behavior when the behavior does not pose a serious threat
346.2to the person or others and the behavior is effectively redirected with less than 60 seconds
346.3of physical contact by staff.
346.4(c) Restraint may be used as an intervention procedure to:
346.5(1) allow a licensed health care professional to safely conduct a medical examination
346.6or to provide medical treatment ordered by a licensed health care professional to a person
346.7necessary to promote healing or recovery from an acute, meaning short-term, medical
346.8condition;
346.9(2) assist in the safe evacuation or redirection of a person in the event of an
346.10emergency and the person is at imminent risk of harm.; or
346.11Any use of manual restraint as allowed in this paragraph must comply with the restrictions
346.12identified in section 245D.061, subdivision 3; or
346.13(3) position a person with physical disabilities in a manner specified in the person's
346.14coordinated service and support plan addendum.
346.15Any use of manual restraint as allowed in this paragraph must comply with the restrictions
346.16identified in subdivision 6, paragraph (b).
346.17(d) Use of adaptive aids or equipment, orthotic devices, or other medical equipment
346.18ordered by a licensed health professional to treat a diagnosed medical condition do not in
346.19and of themselves constitute the use of mechanical restraint.
346.20(e) Use of an auxiliary device to ensure a person does not unfasten a seat belt when
346.21being transported in a vehicle in accordance with seat belt use requirements in section
346.22169.686 does not constitute the use of mechanical restraint.

346.23    Sec. 34. Minnesota Statutes 2013 Supplement, section 245D.06, subdivision 8, is
346.24amended to read:
346.25    Subd. 8. Positive support transition plan. (a) License holders must develop
346.26a positive support transition plan on the forms and in the manner prescribed by the
346.27commissioner for a person who requires intervention in order to maintain safety when
346.28it is known that the person's behavior poses an immediate risk of physical harm to self
346.29or others. The positive support transition plan forms and instructions will supersede the
346.30requirements in Minnesota Rules, parts 9525.2750; 9525.2760; and 9525.2780. The
346.31positive support transition plan must phase out any existing plans for the emergency
346.32or programmatic use of aversive or deprivation procedures restrictive interventions
346.33 prohibited under this chapter within the following timelines:
347.1(1) for persons receiving services from the license holder before January 1, 2014,
347.2the plan must be developed and implemented by February 1, 2014, and phased out no
347.3later than December 31, 2014; and
347.4(2) for persons admitted to the program on or after January 1, 2014, the plan must be
347.5developed and implemented within 30 calendar days of service initiation and phased out
347.6no later than 11 months from the date of plan implementation.
347.7(b) The commissioner has limited authority to grant approval for the emergency use
347.8of procedures identified in subdivision 6 that had been part of an approved positive support
347.9transition plan when a person is at imminent risk of serious injury as defined in section
347.10245.91, subdivision 6, due to self-injurious behavior and the following conditions are met:
347.11(1) the person's expanded support team approves the emergency use of the
347.12procedures; and
347.13(2) the interim review panel established in section 245.8251, subdivision 4,
347.14recommends commissioner approval of the emergency use of the procedures.
347.15(c) Written requests for the emergency use of the procedures must be developed
347.16and submitted to the commissioner by the designated coordinator with input from the
347.17person's expanded support team in accordance with the requirements set by the interim
347.18review panel, in addition to the following:
347.19(1) a copy of the person's current positive support transition plan and copies of
347.20each positive support transition plan review containing data on the progress of the plan
347.21from the previous year;
347.22(2) documentation of a good faith effort to eliminate the use of the procedures that
347.23had been part of an approved positive support transition plan;
347.24(3) justification for the continued use of the procedures that identifies the imminent
347.25risk of serious injury due to the person's self-injurious behavior if the procedures were
347.26eliminated;
347.27(4) documentation of the clinicians consulted in creating and maintaining the
347.28positive support transition plan; and
347.29(5) documentation of the expanded support team's approval and the recommendation
347.30from the interim panel required under paragraph (b).
347.31(d) A copy of the written request, supporting documentation, and the commissioner's
347.32final determination on the request must be maintained in the person's service recipient
347.33record.

347.34    Sec. 35. Minnesota Statutes 2013 Supplement, section 245D.071, subdivision 3,
347.35is amended to read:
348.1    Subd. 3. Assessment and initial service planning. (a) Within 15 days of service
348.2initiation the license holder must complete a preliminary coordinated service and support
348.3plan addendum based on the coordinated service and support plan.
348.4(b) Within 45 days of service initiation the license holder must meet with the person,
348.5the person's legal representative, the case manager, and other members of the support team
348.6or expanded support team to assess and determine the following based on the person's
348.7coordinated service and support plan and the requirements in subdivision 4 and section
348.8245D.07, subdivision 1a:
348.9(1) the scope of the services to be provided to support the person's daily needs
348.10and activities;
348.11(2) the person's desired outcomes and the supports necessary to accomplish the
348.12person's desired outcomes;
348.13(3) the person's preferences for how services and supports are provided;
348.14(4) whether the current service setting is the most integrated setting available and
348.15appropriate for the person; and
348.16(5) how services must be coordinated across other providers licensed under this
348.17chapter serving the same person to ensure continuity of care for the person.
348.18(c) Within the scope of services, the license holder must, at a minimum, assess
348.19the following areas:
348.20(1) the person's ability to self-manage health and medical needs to maintain or
348.21improve physical, mental, and emotional well-being, including, when applicable, allergies,
348.22seizures, choking, special dietary needs, chronic medical conditions, self-administration
348.23of medication or treatment orders, preventative screening, and medical and dental
348.24appointments;
348.25(2) the person's ability to self-manage personal safety to avoid injury or accident in
348.26the service setting, including, when applicable, risk of falling, mobility, regulating water
348.27temperature, community survival skills, water safety skills, and sensory disabilities; and
348.28(3) the person's ability to self-manage symptoms or behavior that may otherwise
348.29result in an incident as defined in section 245D.02, subdivision 11, clauses (4) to
348.30(7), suspension or termination of services by the license holder, or other symptoms
348.31or behaviors that may jeopardize the health and safety of the person or others. The
348.32assessments must produce information about the person that is descriptive of the person's
348.33overall strengths, functional skills and abilities, and behaviors or symptoms.
348.34(b) Within the scope of services, the license holder must, at a minimum, complete
348.35assessments in the following areas before the 45-day planning meeting:
349.1(1) the person's ability to self-manage health and medical needs to maintain or
349.2improve physical, mental, and emotional well-being, including, when applicable, allergies,
349.3seizures, choking, special dietary needs, chronic medical conditions, self-administration
349.4of medication or treatment orders, preventative screening, and medical and dental
349.5appointments;
349.6(2) the person's ability to self-manage personal safety to avoid injury or accident in
349.7the service setting, including, when applicable, risk of falling, mobility, regulating water
349.8temperature, community survival skills, water safety skills, and sensory disabilities; and
349.9(3) the person's ability to self-manage symptoms or behavior that may otherwise
349.10result in an incident as defined in section 245D.02, subdivision 11, clauses (4) to (7),
349.11suspension or termination of services by the license holder, or other symptoms or
349.12behaviors that may jeopardize the health and safety of the person or others.
349.13Assessments must produce information about the person that describes the person's overall
349.14strengths, functional skills and abilities, and behaviors or symptoms. Assessments must
349.15be based on the person's status within the last 12 months at the time of service initiation.
349.16Assessments based on older information must be documented and justified. Assessments
349.17must be conducted annually at a minimum or within 30 days of a written request from the
349.18person or the person's legal representative or case manager. The results must be reviewed
349.19by the support team or expanded support team as part of a service plan review.
349.20(c) Within 45 days of service initiation, the license holder must meet with the
349.21person, the person's legal representative, the case manager, and other members of the
349.22support team or expanded support team to determine the following based on information
349.23obtained from the assessments identified in paragraph (b), the person's identified needs
349.24in the coordinated service and support plan, and the requirements in subdivision 4 and
349.25section 245D.07, subdivision 1a:
349.26(1) the scope of the services to be provided to support the person's daily needs
349.27and activities;
349.28(2) the person's desired outcomes and the supports necessary to accomplish the
349.29person's desired outcomes;
349.30(3) the person's preferences for how services and supports are provided;
349.31(4) whether the current service setting is the most integrated setting available and
349.32appropriate for the person; and
349.33(5) how services must be coordinated across other providers licensed under this
349.34chapter serving the person and members of the support team or expanded support team to
349.35ensure continuity of care and coordination of services for the person.

350.1    Sec. 36. Minnesota Statutes 2013 Supplement, section 245D.071, subdivision 4,
350.2is amended to read:
350.3    Subd. 4. Service outcomes and supports. (a) Within ten working days of the
350.445-day planning meeting, the license holder must develop and document a service plan that
350.5documents the service outcomes and supports based on the assessments completed under
350.6subdivision 3 and the requirements in section 245D.07, subdivision 1a. The outcomes and
350.7supports must be included in the coordinated service and support plan addendum.
350.8(b) The license holder must document the supports and methods to be implemented
350.9to support the accomplishment of person and accomplish outcomes related to acquiring,
350.10retaining, or improving skills and physical, mental, and emotional health and well-being.
350.11The documentation must include:
350.12(1) the methods or actions that will be used to support the person and to accomplish
350.13the service outcomes, including information about:
350.14(i) any changes or modifications to the physical and social environments necessary
350.15when the service supports are provided;
350.16(ii) any equipment and materials required; and
350.17(iii) techniques that are consistent with the person's communication mode and
350.18learning style;
350.19(2) the measurable and observable criteria for identifying when the desired outcome
350.20has been achieved and how data will be collected;
350.21(3) the projected starting date for implementing the supports and methods and
350.22the date by which progress towards accomplishing the outcomes will be reviewed and
350.23evaluated; and
350.24(4) the names of the staff or position responsible for implementing the supports
350.25and methods.
350.26(c) Within 20 working days of the 45-day meeting, the license holder must obtain
350.27dated signatures from the person or the person's legal representative and case manager
350.28to document completion and approval of the assessment and coordinated service and
350.29support plan addendum.

350.30    Sec. 37. Minnesota Statutes 2013 Supplement, section 245D.071, subdivision 5,
350.31is amended to read:
350.32    Subd. 5. Progress reviews Service plan review and evaluation. (a) The license
350.33holder must give the person or the person's legal representative and case manager an
350.34opportunity to participate in the ongoing review and development of the service plan
350.35and the methods used to support the person and accomplish outcomes identified in
351.1subdivisions 3 and 4. The license holder, in coordination with the person's support team
351.2or expanded support team, must meet with the person, the person's legal representative,
351.3and the case manager, and participate in progress service plan review meetings following
351.4stated timelines established in the person's coordinated service and support plan or
351.5coordinated service and support plan addendum or within 30 days of a written request
351.6by the person, the person's legal representative, or the case manager, at a minimum of
351.7once per year. The purpose of the service plan review is to determine whether changes
351.8are needed to the service plan based on the assessment information, the license holder's
351.9evaluation of progress towards accomplishing outcomes, or other information provided by
351.10the support team or expanded support team.
351.11(b) The license holder must summarize the person's status and progress toward
351.12achieving the identified outcomes and make recommendations and identify the rationale
351.13for changing, continuing, or discontinuing implementation of supports and methods
351.14identified in subdivision 4 in a written report sent to the person or the person's legal
351.15representative and case manager five working days prior to the review meeting, unless
351.16the person, the person's legal representative, or the case manager requests to receive the
351.17report at the time of the meeting.
351.18(c) Within ten working days of the progress review meeting, the license holder
351.19must obtain dated signatures from the person or the person's legal representative and
351.20the case manager to document approval of any changes to the coordinated service and
351.21support plan addendum.

351.22    Sec. 38. Minnesota Statutes 2013 Supplement, section 245D.081, subdivision 2,
351.23is amended to read:
351.24    Subd. 2. Coordination and evaluation of individual service delivery. (a) Delivery
351.25and evaluation of services provided by the license holder must be coordinated by a
351.26designated staff person. The designated coordinator must provide supervision, support,
351.27and evaluation of activities that include:
351.28(1) oversight of the license holder's responsibilities assigned in the person's
351.29coordinated service and support plan and the coordinated service and support plan
351.30addendum;
351.31(2) taking the action necessary to facilitate the accomplishment of the outcomes
351.32according to the requirements in section 245D.07;
351.33(3) instruction and assistance to direct support staff implementing the coordinated
351.34service and support plan and the service outcomes, including direct observation of service
351.35delivery sufficient to assess staff competency; and
352.1(4) evaluation of the effectiveness of service delivery, methodologies, and progress on
352.2the person's outcomes based on the measurable and observable criteria for identifying when
352.3the desired outcome has been achieved according to the requirements in section 245D.07.
352.4(b) The license holder must ensure that the designated coordinator is competent to
352.5perform the required duties identified in paragraph (a) through education and, training
352.6in human services and disability-related fields, and work experience in providing direct
352.7care services and supports to persons with disabilities relevant to the needs of the general
352.8population of persons served by the license holder and the individual persons for whom
352.9the designated coordinator is responsible. The designated coordinator must have the
352.10skills and ability necessary to develop effective plans and to design and use data systems
352.11to measure effectiveness of services and supports. The license holder must verify and
352.12document competence according to the requirements in section 245D.09, subdivision 3.
352.13The designated coordinator must minimally have:
352.14(1) a baccalaureate degree in a field related to human services, and one year of
352.15full-time work experience providing direct care services to persons with disabilities or
352.16persons age 65 and older;
352.17(2) an associate degree in a field related to human services, and two years of
352.18full-time work experience providing direct care services to persons with disabilities or
352.19persons age 65 and older;
352.20(3) a diploma in a field related to human services from an accredited postsecondary
352.21institution and three years of full-time work experience providing direct care services to
352.22persons with disabilities or persons age 65 and older; or
352.23(4) a minimum of 50 hours of education and training related to human services
352.24and disabilities; and
352.25(5) four years of full-time work experience providing direct care services to persons
352.26with disabilities or persons age 65 and older under the supervision of a staff person who
352.27meets the qualifications identified in clauses (1) to (3).

352.28    Sec. 39. Minnesota Statutes 2013 Supplement, section 245D.09, subdivision 3, is
352.29amended to read:
352.30    Subd. 3. Staff qualifications. (a) The license holder must ensure that staff providing
352.31direct support, or staff who have responsibilities related to supervising or managing the
352.32provision of direct support service, are competent as demonstrated through skills and
352.33knowledge training, experience, and education to meet the person's needs and additional
352.34requirements as written in the coordinated service and support plan or coordinated
352.35service and support plan addendum, or when otherwise required by the case manager or
353.1the federal waiver plan. The license holder must verify and maintain evidence of staff
353.2competency, including documentation of:
353.3(1) education and experience qualifications relevant to the job responsibilities
353.4assigned to the staff and to the needs of the general population of persons served by the
353.5program, including a valid degree and transcript, or a current license, registration, or
353.6certification, when a degree or licensure, registration, or certification is required by this
353.7chapter or in the coordinated service and support plan or coordinated service and support
353.8plan addendum;
353.9(2) demonstrated competency in the orientation and training areas required under
353.10this chapter, and when applicable, completion of continuing education required to
353.11maintain professional licensure, registration, or certification requirements. Competency in
353.12these areas is determined by the license holder through knowledge testing and or observed
353.13skill assessment conducted by the trainer or instructor; and
353.14(3) except for a license holder who is the sole direct support staff, periodic
353.15performance evaluations completed by the license holder of the direct support staff
353.16person's ability to perform the job functions based on direct observation.
353.17(b) Staff under 18 years of age may not perform overnight duties or administer
353.18medication.

353.19    Sec. 40. Minnesota Statutes 2013 Supplement, section 245D.09, subdivision 4a,
353.20is amended to read:
353.21    Subd. 4a. Orientation to individual service recipient needs. (a) Before having
353.22unsupervised direct contact with a person served by the program, or for whom the staff
353.23person has not previously provided direct support, or any time the plans or procedures
353.24identified in paragraphs (b) to (f) (g) are revised, the staff person must review and receive
353.25instruction on the requirements in paragraphs (b) to (f) (g) as they relate to the staff
353.26person's job functions for that person.
353.27(b) Training and competency evaluations must include the following:
353.28(1) appropriate and safe techniques in personal hygiene and grooming, including
353.29hair care; bathing; care of teeth, gums, and oral prosthetic devices; and other activities of
353.30daily living (ADLs) as defined under section 256B.0659, subdivision 1;
353.31(2) an understanding of what constitutes a healthy diet according to data from the
353.32Centers for Disease Control and Prevention and the skills necessary to prepare that diet;
353.33(3) skills necessary to provide appropriate support in instrumental activities of daily
353.34living (IADLs) as defined under section 256B.0659, subdivision 1; and
353.35(4) demonstrated competence in providing first aid.
354.1(c) The staff person must review and receive instruction on the person's coordinated
354.2service and support plan or coordinated service and support plan addendum as it relates
354.3to the responsibilities assigned to the license holder, and when applicable, the person's
354.4individual abuse prevention plan, to achieve and demonstrate an understanding of the
354.5person as a unique individual, and how to implement those plans.
354.6(d) The staff person must review and receive instruction on medication setup,
354.7assistance, or administration procedures established for the person when medication
354.8administration is assigned to the license holder according to section 245D.05, subdivision
354.91 , paragraph (b). Unlicensed staff may administer medications perform medication setup
354.10or medication administration only after successful completion of a medication setup or
354.11medication administration training, from a training curriculum developed by a registered
354.12nurse, clinical nurse specialist in psychiatric and mental health nursing, certified nurse
354.13practitioner, physician's assistant, or physician or appropriate licensed health professional.
354.14The training curriculum must incorporate an observed skill assessment conducted by the
354.15trainer to ensure unlicensed staff demonstrate the ability to safely and correctly follow
354.16medication procedures.
354.17Medication administration must be taught by a registered nurse, clinical nurse
354.18specialist, certified nurse practitioner, physician's assistant, or physician if, at the time of
354.19service initiation or any time thereafter, the person has or develops a health care condition
354.20that affects the service options available to the person because the condition requires:
354.21(1) specialized or intensive medical or nursing supervision; and
354.22(2) nonmedical service providers to adapt their services to accommodate the health
354.23and safety needs of the person.
354.24(e) The staff person must review and receive instruction on the safe and correct
354.25operation of medical equipment used by the person to sustain life, including but not
354.26limited to ventilators, feeding tubes, or endotracheal tubes. The training must be provided
354.27by a licensed health care professional or a manufacturer's representative and incorporate
354.28an observed skill assessment to ensure staff demonstrate the ability to safely and correctly
354.29operate the equipment according to the treatment orders and the manufacturer's instructions.
354.30(f) The staff person must review and receive instruction on what constitutes use of
354.31restraints, time out, and seclusion, including chemical restraint, and staff responsibilities
354.32related to the prohibitions of their use according to the requirements in section 245D.06,
354.33subdivision 5, or successor provisions why such procedures are not effective for reducing
354.34or eliminating symptoms or undesired behavior and why they are not safe, and the safe
354.35and correct use of manual restraint on an emergency basis according to the requirements
354.36in section 245D.061 or successor provisions.
355.1(g) The staff person must review and receive instruction on mental health crisis
355.2response, de-escalation techniques, and suicide intervention when providing direct support
355.3to a person with a serious mental illness.
355.4(g) (h) In the event of an emergency service initiation, the license holder must ensure
355.5the training required in this subdivision occurs within 72 hours of the direct support staff
355.6person first having unsupervised contact with the person receiving services. The license
355.7holder must document the reason for the unplanned or emergency service initiation and
355.8maintain the documentation in the person's service recipient record.
355.9(h) (i) License holders who provide direct support services themselves must
355.10complete the orientation required in subdivision 4, clauses (3) to (7).

355.11    Sec. 41. Minnesota Statutes 2013 Supplement, section 245D.091, subdivision 2,
355.12is amended to read:
355.13    Subd. 2. Behavior professional qualifications. A behavior professional providing
355.14behavioral support services as identified in section 245D.03, subdivision 1, paragraph (c),
355.15clause (1), item (i), as defined in the brain injury and community alternatives for disabled
355.16individuals waiver plans or successor plans, must have competencies in the following
355.17areas related to as required under the brain injury and community alternatives for disabled
355.18individuals waiver plans or successor plans:
355.19(1) ethical considerations;
355.20(2) functional assessment;
355.21(3) functional analysis;
355.22(4) measurement of behavior and interpretation of data;
355.23(5) selecting intervention outcomes and strategies;
355.24(6) behavior reduction and elimination strategies that promote least restrictive
355.25approved alternatives;
355.26(7) data collection;
355.27(8) staff and caregiver training;
355.28(9) support plan monitoring;
355.29(10) co-occurring mental disorders or neurocognitive disorder;
355.30(11) demonstrated expertise with populations being served; and
355.31(12) must be a:
355.32(i) psychologist licensed under sections 148.88 to 148.98, who has stated to the
355.33Board of Psychology competencies in the above identified areas;
355.34(ii) clinical social worker licensed as an independent clinical social worker under
355.35chapter 148D, or a person with a master's degree in social work from an accredited college
356.1or university, with at least 4,000 hours of post-master's supervised experience in the
356.2delivery of clinical services in the areas identified in clauses (1) to (11);
356.3(iii) physician licensed under chapter 147 and certified by the American Board
356.4of Psychiatry and Neurology or eligible for board certification in psychiatry with
356.5competencies in the areas identified in clauses (1) to (11);
356.6(iv) licensed professional clinical counselor licensed under sections 148B.29 to
356.7148B.39 with at least 4,000 hours of post-master's supervised experience in the delivery
356.8of clinical services who has demonstrated competencies in the areas identified in clauses
356.9(1) to (11);
356.10(v) person with a master's degree from an accredited college or university in one
356.11of the behavioral sciences or related fields, with at least 4,000 hours of post-master's
356.12supervised experience in the delivery of clinical services with demonstrated competencies
356.13in the areas identified in clauses (1) to (11); or
356.14(vi) registered nurse who is licensed under sections 148.171 to 148.285, and who is
356.15certified as a clinical specialist or as a nurse practitioner in adult or family psychiatric and
356.16mental health nursing by a national nurse certification organization, or who has a master's
356.17degree in nursing or one of the behavioral sciences or related fields from an accredited
356.18college or university or its equivalent, with at least 4,000 hours of post-master's supervised
356.19experience in the delivery of clinical services.

356.20    Sec. 42. Minnesota Statutes 2013 Supplement, section 245D.091, subdivision 3,
356.21is amended to read:
356.22    Subd. 3. Behavior analyst qualifications. (a) A behavior analyst providing
356.23behavioral support services as identified in section 245D.03, subdivision 1, paragraph
356.24(c), clause (1), item (i), as defined in the brain injury and community alternatives for
356.25disabled individuals waiver plans or successor plans, must have competencies in the
356.26following areas as required under the brain injury and community alternatives for disabled
356.27individuals waiver plans or successor plans:
356.28(1) have obtained a baccalaureate degree, master's degree, or PhD in a social services
356.29discipline; or
356.30(2) meet the qualifications of a mental health practitioner as defined in section
356.31245.462, subdivision 17 .
356.32(b) In addition, a behavior analyst must:
356.33(1) have four years of supervised experience working with individuals who exhibit
356.34challenging behaviors as well as co-occurring mental disorders or neurocognitive disorder;
357.1(2) have received ten hours of instruction in functional assessment and functional
357.2analysis;
357.3(3) have received 20 hours of instruction in the understanding of the function of
357.4behavior;
357.5(4) have received ten hours of instruction on design of positive practices behavior
357.6support strategies;
357.7(5) have received 20 hours of instruction on the use of behavior reduction approved
357.8strategies used only in combination with behavior positive practices strategies;
357.9(6) be determined by a behavior professional to have the training and prerequisite
357.10skills required to provide positive practice strategies as well as behavior reduction
357.11approved and permitted intervention to the person who receives behavioral support; and
357.12(7) be under the direct supervision of a behavior professional.

357.13    Sec. 43. Minnesota Statutes 2013 Supplement, section 245D.091, subdivision 4,
357.14is amended to read:
357.15    Subd. 4. Behavior specialist qualifications. (a) A behavior specialist providing
357.16behavioral support services as identified in section 245D.03, subdivision 1, paragraph (c),
357.17clause (1), item (i), as defined in the brain injury and community alternatives for disabled
357.18individuals waiver plans or successor plans, must meet the following qualifications have
357.19competencies in the following areas as required under the brain injury and community
357.20alternatives for disabled individuals waiver plans or successor plans:
357.21(1) have an associate's degree in a social services discipline; or
357.22(2) have two years of supervised experience working with individuals who exhibit
357.23challenging behaviors as well as co-occurring mental disorders or neurocognitive disorder.
357.24(b) In addition, a behavior specialist must:
357.25(1) have received a minimum of four hours of training in functional assessment;
357.26(2) have received 20 hours of instruction in the understanding of the function of
357.27behavior;
357.28(3) have received ten hours of instruction on design of positive practices behavioral
357.29support strategies;
357.30(4) be determined by a behavior professional to have the training and prerequisite
357.31skills required to provide positive practices strategies as well as behavior reduction
357.32approved intervention to the person who receives behavioral support; and
357.33(5) be under the direct supervision of a behavior professional.

358.1    Sec. 44. Minnesota Statutes 2013 Supplement, section 245D.10, subdivision 3, is
358.2amended to read:
358.3    Subd. 3. Service suspension and service termination. (a) The license holder must
358.4establish policies and procedures for temporary service suspension and service termination
358.5that promote continuity of care and service coordination with the person and the case
358.6manager and with other licensed caregivers, if any, who also provide support to the person.
358.7(b) The policy must include the following requirements:
358.8(1) the license holder must notify the person or the person's legal representative and
358.9case manager in writing of the intended termination or temporary service suspension, and
358.10the person's right to seek a temporary order staying the termination of service according to
358.11the procedures in section 256.045, subdivision 4a, or 6, paragraph (c);
358.12(2) notice of the proposed termination of services, including those situations that
358.13began with a temporary service suspension, must be given at least 60 days before the
358.14proposed termination is to become effective when a license holder is providing intensive
358.15supports and services identified in section 245D.03, subdivision 1, paragraph (c), and 30
358.16days prior to termination for all other services licensed under this chapter. This notice
358.17may be given in conjunction with a notice of temporary service suspension;
358.18(3) notice of temporary service suspension must be given on the first day of the
358.19service suspension;
358.20(3) (4) the license holder must provide information requested by the person or case
358.21manager when services are temporarily suspended or upon notice of termination;
358.22(4) (5) prior to giving notice of service termination or temporary service suspension,
358.23the license holder must document actions taken to minimize or eliminate the need for
358.24service suspension or termination;
358.25(5) (6) during the temporary service suspension or service termination notice period,
358.26the license holder will must work with the appropriate county agency support team or
358.27expanded support team to develop reasonable alternatives to protect the person and others;
358.28(6) (7) the license holder must maintain information about the service suspension or
358.29termination, including the written termination notice, in the service recipient record; and
358.30(7) (8) the license holder must restrict temporary service suspension to situations in
358.31which the person's conduct poses an imminent risk of physical harm to self or others and
358.32less restrictive or positive support strategies would not achieve and maintain safety.

358.33    Sec. 45. Minnesota Statutes 2013 Supplement, section 245D.10, subdivision 4, is
358.34amended to read:
359.1    Subd. 4. Availability of current written policies and procedures. (a) The license
359.2holder must review and update, as needed, the written policies and procedures required
359.3under this chapter.
359.4(b) (1) The license holder must inform the person and case manager of the policies
359.5and procedures affecting a person's rights under section 245D.04, and provide copies of
359.6those policies and procedures, within five working days of service initiation.
359.7(2) If a license holder only provides basic services and supports, this includes the:
359.8(i) grievance policy and procedure required under subdivision 2; and
359.9(ii) service suspension and termination policy and procedure required under
359.10subdivision 3.
359.11(3) For all other license holders this includes the:
359.12(i) policies and procedures in clause (2);
359.13(ii) emergency use of manual restraints policy and procedure required under section
359.14245D.061, subdivision 10, or successor provisions ; and
359.15(iii) data privacy requirements under section 245D.11, subdivision 3.
359.16(c) The license holder must provide a written notice to all persons or their legal
359.17representatives and case managers at least 30 days before implementing any procedural
359.18revisions to policies affecting a person's service-related or protection-related rights under
359.19section 245D.04 and maltreatment reporting policies and procedures. The notice must
359.20explain the revision that was made and include a copy of the revised policy and procedure.
359.21The license holder must document the reasonable cause for not providing the notice at
359.22least 30 days before implementing the revisions.
359.23(d) Before implementing revisions to required policies and procedures, the license
359.24holder must inform all employees of the revisions and provide training on implementation
359.25of the revised policies and procedures.
359.26(e) The license holder must annually notify all persons, or their legal representatives,
359.27and case managers of any procedural revisions to policies required under this chapter,
359.28other than those in paragraph (c). Upon request, the license holder must provide the
359.29person, or the person's legal representative, and case manager with copies of the revised
359.30policies and procedures.

359.31    Sec. 46. Minnesota Statutes 2013 Supplement, section 245D.11, subdivision 2, is
359.32amended to read:
359.33    Subd. 2. Health and safety. The license holder must establish policies and
359.34procedures that promote health and safety by ensuring:
360.1(1) use of universal precautions and sanitary practices in compliance with section
360.2245D.06, subdivision 2 , clause (5);
360.3(2) if the license holder operates a residential program, health service coordination
360.4and care according to the requirements in section 245D.05, subdivision 1;
360.5(3) safe medication assistance and administration according to the requirements
360.6in sections 245D.05, subdivisions 1a, 2, and 5, and 245D.051, that are established in
360.7consultation with a registered nurse, nurse practitioner, physician's assistant, or medical
360.8doctor and require completion of medication administration training according to the
360.9requirements in section 245D.09, subdivision 4a, paragraph (d). Medication assistance
360.10and administration includes, but is not limited to:
360.11(i) providing medication-related services for a person;
360.12(ii) medication setup;
360.13(iii) medication administration;
360.14(iv) medication storage and security;
360.15(v) medication documentation and charting;
360.16(vi) verification and monitoring of effectiveness of systems to ensure safe medication
360.17handling and administration;
360.18(vii) coordination of medication refills;
360.19(viii) handling changes to prescriptions and implementation of those changes;
360.20(ix) communicating with the pharmacy; and
360.21(x) coordination and communication with prescriber;
360.22(4) safe transportation, when the license holder is responsible for transportation of
360.23persons, with provisions for handling emergency situations according to the requirements
360.24in section 245D.06, subdivision 2, clauses (2) to (4);
360.25(5) a plan for ensuring the safety of persons served by the program in emergencies as
360.26defined in section 245D.02, subdivision 8, and procedures for staff to report emergencies
360.27to the license holder. A license holder with a community residential setting or a day service
360.28facility license must ensure the policy and procedures comply with the requirements in
360.29section 245D.22, subdivision 4;
360.30(6) a plan for responding to all incidents as defined in section 245D.02, subdivision
360.3111; and reporting all incidents required to be reported according to section 245D.06,
360.32subdivision 1. The plan must:
360.33(i) provide the contact information of a source of emergency medical care and
360.34transportation; and
360.35(ii) require staff to first call 911 when the staff believes a medical emergency may
360.36be life threatening, or to call the mental health crisis intervention team or similar mental
361.1health response team or service when such a team is available and appropriate when the
361.2person is experiencing a mental health crisis; and
361.3(7) a procedure for the review of incidents and emergencies to identify trends or
361.4patterns, and corrective action if needed. The license holder must establish and maintain
361.5a record-keeping system for the incident and emergency reports. Each incident and
361.6emergency report file must contain a written summary of the incident. The license holder
361.7must conduct a review of incident reports for identification of incident patterns, and
361.8implementation of corrective action as necessary to reduce occurrences. Each incident
361.9report must include:
361.10(i) the name of the person or persons involved in the incident. It is not necessary
361.11to identify all persons affected by or involved in an emergency unless the emergency
361.12resulted in an incident;
361.13(ii) the date, time, and location of the incident or emergency;
361.14(iii) a description of the incident or emergency;
361.15(iv) a description of the response to the incident or emergency and whether a person's
361.16coordinated service and support plan addendum or program policies and procedures were
361.17implemented as applicable;
361.18(v) the name of the staff person or persons who responded to the incident or
361.19emergency; and
361.20(vi) the determination of whether corrective action is necessary based on the results
361.21of the review.

361.22    Sec. 47. Minnesota Statutes 2012, section 252.451, subdivision 2, is amended to read:
361.23    Subd. 2. Vendor participation and reimbursement. Notwithstanding requirements
361.24in chapter chapters 245A and 245D, and sections 252.28, 252.40 to 252.46, and 256B.501,
361.25vendors of day training and habilitation services may enter into written agreements with
361.26qualified businesses to provide additional training and supervision needed by individuals
361.27to maintain their employment.

361.28    Sec. 48. Minnesota Statutes 2012, section 256.9752, subdivision 2, is amended to read:
361.29    Subd. 2. Authority. The Minnesota Board on Aging shall allocate to area agencies
361.30on aging the state and federal funds which are received for the senior nutrition programs
361.31of congregate dining and home-delivered meals in a manner consistent with federal
361.32requirements.

362.1    Sec. 49. Minnesota Statutes 2013 Supplement, section 256B.0625, subdivision 17,
362.2is amended to read:
362.3    Subd. 17. Transportation costs. (a) "Nonemergency medical transportation
362.4service" means motor vehicle transportation provided by a public or private person
362.5that serves Minnesota health care program beneficiaries who do not require emergency
362.6ambulance service, as defined in section 144E.001, subdivision 3, to obtain covered
362.7medical services. Nonemergency medical transportation service includes, but is not
362.8limited to, special transportation service, defined in section 174.29, subdivision 1.
362.9(a) (b) Medical assistance covers medical transportation costs incurred solely for
362.10obtaining emergency medical care or transportation costs incurred by eligible persons in
362.11obtaining emergency or nonemergency medical care when paid directly to an ambulance
362.12company, common carrier, or other recognized providers of transportation services.
362.13Medical transportation must be provided by:
362.14(1) an ambulance nonemergency medical transportation providers who meet the
362.15requirements of this subdivision;
362.16(2) ambulances, as defined in section 144E.001, subdivision 2;
362.17(2) special transportation; or
362.18(3) common carrier including, but not limited to, bus, taxicab, other commercial
362.19carrier, or private automobile taxicabs and public transit, as defined in section 174.22,
362.20subdivision 7; or
362.21(4) not-for-hire vehicles, including volunteer drivers.
362.22(b) (c) Medical assistance covers special transportation, as defined in Minnesota
362.23Rules, part 9505.0315, subpart 1, item F, if the recipient has a physical or mental
362.24impairment that would prohibit the recipient from safely accessing and using a bus,
362.25taxi, other commercial transportation, or private automobile. nonemergency medical
362.26transportation provided by nonemergency medical transportation providers enrolled in
362.27the Minnesota health care programs. All nonemergency medical transportation providers
362.28must comply with the operating standards for special transportation service as defined in
362.29sections 174.29 to 174.30 and Minnesota Rules, chapter 8840, and in consultation with
362.30the Minnesota Department of Transportation. All nonemergency medical transportation
362.31providers shall bill for nonemergency medical transportation services in accordance with
362.32Minnesota health care programs criteria. Publicly operated transit systems, volunteers,
362.33and not-for-hire vehicles are exempt from the requirements outlined in this paragraph.
362.34(d) The administrative agency of nonemergency medical transportation must:
362.35(1) adhere to the policies defined by the commissioner in consultation with the
362.36Nonemergency Medical Transportation Advisory Committee;
363.1(2) pay nonemergency medical transportation providers for services provided to
363.2Minnesota health care programs beneficiaries to obtain covered medical services;
363.3(3) provide data monthly to the commissioner on appeals, complaints, no-shows,
363.4canceled trips, and number of trips by mode; and
363.5(4) by July 1, 2016, in accordance with subdivision 18e, utilize a Web-based single
363.6administrative structure assessment tool that meets the technical requirements established
363.7by the commissioner, reconciles trip information with claims being submitted by
363.8providers, and ensures prompt payment for nonemergency medical transportation services.
363.9    (e) Until the commissioner implements the single administrative structure and
363.10delivery system under subdivision 18e, clients shall obtain their level-of-service certificate
363.11from the commissioner or an entity approved by the commissioner that does not dispatch
363.12rides for clients using modes under paragraph (h), clauses (4), (5), (6), and (7).
363.13    (f) The commissioner may use an order by the recipient's attending physician
363.14 or a medical or mental health professional to certify that the recipient requires
363.15special transportation services nonemergency medical transportation services. Special
363.16 Nonemergency medical transportation providers shall perform driver-assisted services for
363.17eligible individuals, when appropriate. Driver-assisted service includes passenger pickup
363.18at and return to the individual's residence or place of business, assistance with admittance of
363.19the individual to the medical facility, and assistance in passenger securement or in securing
363.20of wheelchairs or stretchers in the vehicle. Special Nonemergency medical transportation
363.21providers must obtain written documentation from the health care service provider who
363.22is serving the recipient being transported, identifying the time that the recipient arrived.
363.23Special have trip logs, which include pickup and drop-off times, signed by the medical
363.24provider or client attesting mileage traveled to obtain covered medical services, whichever
363.25is deemed most appropriate. Nonemergency medical transportation providers may not bill
363.26for separate base rates for the continuation of a trip beyond the original destination. Special
363.27 Nonemergency medical transportation providers must take recipients clients to the health
363.28care provider, using the most direct route, and must not exceed 30 miles for a trip to a
363.29primary care provider or 60 miles for a trip to a specialty care provider, unless the recipient
363.30 client receives authorization from the local agency. The minimum medical assistance
363.31reimbursement rates for special transportation nonemergency medical services are:
363.32(1)(i) $17 for the base rate and $1.35 per mile for special transportation
363.33 nonemergency medical services to eligible persons who need a wheelchair-accessible van;
363.34(ii) $11.50 for the base rate and $1.30 per mile for special nonemergency medical
363.35transportation services to eligible persons who do not need a wheelchair-accessible van; and
364.1(iii) $60 for the base rate and $2.40 per mile, and an attendant rate of $9 per trip,
364.2for special nonemergency medical transportation services to eligible persons who need a
364.3stretcher-accessible vehicle;
364.4(2) clients requesting client mileage reimbursement must sign the trip log attesting
364.5mileage traveled to obtain covered medical services.
364.6(g) By July 1, 2015, the commissioner shall determine reimbursement for the modes
364.7under this paragraph and paragraphs (h) and (i), using existing rates in paragraph (f). The
364.8rates must be budget neutral, ensuring that the total aggregate payments are equal to the
364.9total aggregate payments for the same number and types of services in the base year
364.102013. The covered modes of nonemergency medical transportation include transportation
364.11provided directly by clients or family members of clients with their own transportation,
364.12volunteers using their own vehicles, taxicabs, and public transit, or provided to a client
364.13who needs a stretcher-accessible vehicle, a lift/ramp equipped vehicle, a vehicle that is not
364.14stretcher-accessible or lift/ramp equipped designed to transport seven or fewer persons,
364.15and a protected vehicle that is not an ambulance or police car and has safety locks, a
364.16video recorder, and a transparent thermoplastic partition between the passenger and the
364.17vehicle driver.
364.18(h) The administrative agency shall use the level of service process established
364.19by the commissioner in consultation with the Nonemergency Medical Transportation
364.20Advisory Committee to determine the client's most appropriate mode of transportation.
364.21If public transit or a certified transportation provider is not available to provide the
364.22appropriate service mode for the client, the client may receive a onetime service upgrade.
364.23Clients can be found eligible for the most appropriate of the following modes:
364.24(1) client reimbursement, which includes client mileage reimbursement provided
364.25to clients who have their own transportation or family who provides transportation to
364.26the client;
364.27(2) volunteer transport, which includes transportation by volunteers using their
364.28own vehicle;
364.29(3) unassisted transport, which includes transportation provided to a client by a
364.30taxicab or public transit. If a taxicab or publicly operated transit system is not available,
364.31the client can receive transportation from another nonemergency medical transportation
364.32provider;
364.33(4) assisted transport, which includes transport provided to clients who require
364.34assistance by a nonemergency medical transportation provider;
365.1(5) lift-equipped/ramp transport, which includes transport provided to a client who
365.2is dependent on a device and requires a nonemergency medical transportation provider
365.3with a vehicle containing a lift or ramp;
365.4(6) protected transport, which includes transport to a client who has received a
365.5prescreening that has deemed other forms of transportation inappropriate and who requires
365.6a provider certified as a protected transport provider; and
365.7(7) stretcher transport, which includes transport for a client in a prone or supine
365.8position and requires a nonemergency medical transportation provider with a vehicle that
365.9can transport a client in a prone or supine position.
365.10(i) By July 1, 2015, local agencies shall administer and reimburse for modes within
365.11existing appropriations defined in paragraph (h), clauses (1) to (3). The commissioner
365.12shall administer and reimburse for modes within existing appropriations defined in
365.13paragraph (h), clauses (4) to (7). In accordance with subdivision 18e, by July 1, 2016, the
365.14local agency shall be the single administrative agency and shall administer and reimburse
365.15for modes defined in paragraph (h).
365.16(j) The commissioner shall:
365.17(1) in consultation with the Nonemergency Medical Transportation Advisory
365.18Committee, verify that the mode and use of nonemergency medical transportation is
365.19appropriate;
365.20(2) verify that the client is going to an approved medical appointment; and
365.21(3) investigate all complaints and appeals.
365.22(k) The administrative agency shall pay for the services provided in this subdivision
365.23and seek reimbursement from the commissioner if appropriate. As vendors of medical care,
365.24local agencies are subject to the provisions in section 256B.041, the sanctions and monetary
365.25recovery actions in section 256B.064, and Minnesota Rules parts 9505.2160 to 9505.2245.
365.26(l) The base rates for special nonemergency medical transportation services in areas
365.27defined under RUCA to be super rural shall be equal to the reimbursement rate established
365.28in paragraph (f), clause (1), plus 11.3 percent;, and
365.29(3) for special nonemergency medical transportation services in areas defined under
365.30RUCA to be rural or super rural areas:
365.31(i) for a trip equal to 17 miles or less, mileage reimbursement shall be equal to 125
365.32percent of the respective mileage rate in paragraph (f), clause (1); and
365.33(ii) for a trip between 18 and 50 miles, mileage reimbursement shall be equal to
365.34112.5 percent of the respective mileage rate in paragraph (f), clause (1).
366.1(c) (m) For purposes of reimbursement rates for special nonemergency medical
366.2transportation services under paragraph (b), the zip code of the recipient's place of residence
366.3shall determine whether the urban, rural, or super rural reimbursement rate applies.
366.4(d) (n) For purposes of this subdivision, "rural urban commuting area" or "RUCA"
366.5means a census-tract based classification system under which a geographical area is
366.6determined to be urban, rural, or super rural.
366.7(e) (o) Effective for services provided on or after September 1, 2011, nonemergency
366.8transportation rates, including special nonemergency medical transportation, taxi, and
366.9other commercial carriers, are reduced 4.5 percent. Payments made to managed care plans
366.10and county-based purchasing plans must be reduced for services provided on or after
366.11January 1, 2012, to reflect this reduction.
366.12(p) Until July 1, 2016, clients using assisted transportation must continue with
366.13their current administrative agency. For clients newly assessed as needing assisted
366.14transportation, the local agency must continue to administer assisted transport when
366.15assistance requires door-to-door, and the commissioner shall administer assisted transport
366.16when assistance requires door-through-door.

366.17    Sec. 50. Minnesota Statutes 2012, section 256B.0625, subdivision 18b, is amended to
366.18read:
366.19    Subd. 18b. Broker dispatching prohibition. The commissioner shall not use a
366.20broker or coordinator for any purpose related to nonemergency medical transportation
366.21services under subdivision 18.

366.22    Sec. 51. Minnesota Statutes 2012, section 256B.0625, subdivision 18c, is amended to
366.23read:
366.24    Subd. 18c. Nonemergency Medical Transportation Advisory Committee.
366.25(a) The Nonemergency Medical Transportation Advisory Committee shall advise the
366.26commissioner on the administration of nonemergency medical transportation covered
366.27under medical assistance. The advisory committee shall meet at least quarterly the first
366.28year following January 1, 2015, and at least biannually thereafter and may meet more
366.29frequently as required by the commissioner. The advisory committee shall annually
366.30elect a chair from among its members, who shall work with the commissioner or the
366.31commissioner's designee to establish the agenda for each meeting. The commissioner, or
366.32the commissioner's designee, shall attend all advisory committee meetings.
366.33(b) The Nonemergency Medical Transportation Advisory Committee shall advise
366.34and make recommendations to the commissioner on:
367.1(1) the development of, and periodic updates to, a the nonemergency medical
367.2transportation policy manual for nonemergency medical transportation services;
367.3(2) policies and a funding source for reimbursing no-load miles;
367.4(3) policies to prevent waste, fraud, and abuse, and to improve the efficiency of the
367.5nonemergency medical transportation system;
367.6(4) other issues identified in the 2011 evaluation report by the Office of the
367.7Legislative Auditor on medical nonemergency transportation; and
367.8(5) (2) other aspects of the nonemergency medical transportation system, as
367.9requested by the commissioner.; and
367.10(3) other aspects of the nonemergency medical transportation system, as requested by:
367.11(i) a committee member, who may request an item to be placed on the agenda for
367.12a future meeting. The request may be considered by the committee and voted upon.
367.13If the motion carries, the meeting agenda item may be developed for presentation to
367.14the committee; and
367.15(ii) a member of the public, who may approach the committee by letter or e-mail
367.16requesting that an item be placed on a future meeting agenda. The request may be
367.17considered by the committee and voted upon. If the motion carries, the agenda item may
367.18be developed for presentation to the committee.
367.19(c) The Nonemergency Medical Transportation Advisory Committee shall
367.20coordinate its activities with the Minnesota Council on Transportation Access established
367.21under section 174.285. The chair of the advisory committee, or the chair's designee, shall
367.22attend all meetings of the Minnesota Council on Transportation Access.
367.23(d) The Nonemergency Medical Transportation Advisory Committee shall expire
367.24December 1, 2014 2019.

367.25    Sec. 52. Minnesota Statutes 2012, section 256B.0625, subdivision 18d, is amended to
367.26read:
367.27    Subd. 18d. Advisory committee members. (a) The Nonemergency Medical
367.28Transportation Advisory Committee consists of:
367.29(1) two voting members who represent counties, at least one of whom must represent
367.30a county or counties other than Anoka, Carver, Chisago, Dakota, Hennepin, Isanti,
367.31Ramsey, Scott, Sherburne, Washington, and Wright four voting members who represent
367.32counties, utilizing the rural urban commuting area classification system. As defined in
367.33subdivision 17, these members shall be designated as follows:
367.34(i) two counties within the 11-county metropolitan area;
367.35(ii) one county representing the rural area of the state; and
368.1(iii) one county representing the super rural area of the state.
368.2The Association of Minnesota Counties shall appoint one county within the 11-county
368.3metropolitan area and one county representing the super rural area of the state. The
368.4Minnesota Inter-County Association shall appoint one county within the 11-county
368.5metropolitan area and one county representing the rural area of the state;
368.6(2) four three voting members who represent medical assistance recipients, including
368.7persons with physical and developmental disabilities, persons with mental illness, seniors,
368.8children, and low-income individuals;
368.9(3) four voting members who represent providers that deliver nonemergency medical
368.10transportation services to medical assistance enrollees;
368.11(4) two voting members of the house of representatives, one from the majority
368.12party and one from the minority party, appointed by the speaker of the house, and two
368.13voting members from the senate, one from the majority party and one from the minority
368.14party, appointed by the Subcommittee on Committees of the Committee on Rules and
368.15Administration;
368.16(5) one voting member who represents demonstration providers as defined in section
368.17256B.69, subdivision 2 ;
368.18(6) one voting member who represents an organization that contracts with state or
368.19local governments to coordinate transportation services for medical assistance enrollees;
368.20and
368.21(7) one voting member who represents the Minnesota State Council on Disability;
368.22(8) the commissioner of transportation or the commissioner's designee, who shall
368.23serve as a voting member;
368.24(9) one voting member appointed by the Minnesota Ambulance Association; and
368.25(10) one voting member appointed by the Minnesota Hospital Association.
368.26(b) Members of the advisory committee shall not be employed by the Department of
368.27Human Services. Members of the advisory committee shall receive no compensation.

368.28    Sec. 53. Minnesota Statutes 2013 Supplement, section 256B.0625, subdivision 18e,
368.29is amended to read:
368.30    Subd. 18e. Single administrative structure and delivery system. (a) The
368.31commissioner shall implement a single administrative structure and delivery system
368.32for nonemergency medical transportation, beginning the latter of the date the single
368.33administrative assessment tool required in this paragraph is available for use, as
368.34determined by the commissioner or by July 1, 2014 2016. The single administrative
368.35structure and delivery system must:
369.1(1) eliminate the distinction between access transportation services and special
369.2transportation services;
369.3(2) enable all medical assistance recipients to follow the same process to obtain
369.4nonemergency medical transportation, regardless of their level of need;
369.5(3) provide a single oversight framework for all providers of nonemergency medical
369.6transportation; and
369.7(4) provide flexibility in service delivery, recognizing that clients fall along a
369.8continuum of needs and resources.
369.9(b) The commissioner shall present to the legislature, by January 15, 2014,
369.10legislation necessary to implement the single administrative structure and delivery system
369.11for nonemergency medical transportation.
369.12(c) In developing the single administrative structure and delivery system and the draft
369.13legislation, the commissioner shall consult with the Nonemergency Medical Transportation
369.14Advisory Committee. In coordination with the Department of Transportation, the
369.15commissioner shall develop and authorize a Web-based single administrative structure
369.16and assessment tool, which must operate 24 hours a day, seven days a week, to facilitate
369.17the enrollee assessment process for nonemergency medical transportation services.
369.18The Web-based tool shall facilitate the transportation eligibility determination process
369.19initiated by clients and client advocates; shall include an accessible automated intake
369.20and assessment process and real-time identification of level of service eligibility; and
369.21shall authorize an appropriate and auditable mode of transportation authorization. The
369.22tool shall provide a single framework for reconciling trip information with claiming and
369.23collecting complaints regarding inappropriate level of need determinations, inappropriate
369.24transportation modes utilized, and interference with accessing nonemergency medical
369.25transportation. The Web-based single administrative structure shall operate on a trial
369.26basis for one year from implementation and, if approved by the commissioner, shall be
369.27permanent thereafter. The commissioner shall seek input from the Nonemergency Medical
369.28Transportation Advisory Committee to ensure the software is effective and user-friendly
369.29and make recommendations regarding funding of the single administrative system.

369.30    Sec. 54. Minnesota Statutes 2012, section 256B.0625, subdivision 18g, is amended to
369.31read:
369.32    Subd. 18g. Use of standardized measures. The commissioner, in consultation
369.33with the Nonemergency Medical Transportation Advisory Committee, shall establish
369.34performance measures to assess the cost-effectiveness and quality of nonemergency
369.35medical transportation. At a minimum, performance measures should include the number
370.1of unique participants served by type of transportation provider, number of trips provided
370.2by type of transportation provider, and cost per trip by type of transportation provider. The
370.3commissioner must also consider the measures identified in the January 2012 Department
370.4of Human Services report to the legislature on nonemergency medical transportation.
370.5 Beginning in calendar year 2013 2015, the commissioner shall collect, audit, and analyze
370.6performance data on nonemergency medical transportation annually and report this
370.7information on the agency's Web site. The commissioner shall periodically supplement
370.8this information with the results of consumer surveys of the quality of services, and shall
370.9make these survey findings available to the public on the agency Web site.

370.10    Sec. 55. Minnesota Statutes 2012, section 256B.0625, is amended by adding a
370.11subdivision to read:
370.12    Subd. 18h. Managed care. The following subdivisions do not apply to managed
370.13care plans and county-based purchasing plans:
370.14    (1) subdivision 17, paragraphs (d) to (k);
370.15    (2) subdivision 18e; and
370.16    (3) subdivision 18g.

370.17    Sec. 56. Minnesota Statutes 2012, section 256B.35, subdivision 1, is amended to read:
370.18    Subdivision 1. Personal needs allowance. (a) Notwithstanding any law to the
370.19contrary, welfare allowances for clothing and personal needs for individuals receiving
370.20medical assistance while residing in any skilled nursing home, intermediate care facility,
370.21or medical institution including recipients of Supplemental Security Income, in this state
370.22shall not be less than $45 per month from all sources. When benefit amounts for Social
370.23Security or Supplemental Security Income recipients are increased pursuant to United
370.24States Code, title 42, sections 415(i) and 1382f, the commissioner shall, effective in the
370.25month in which the increase takes effect, increase by the same percentage to the nearest
370.26whole dollar the clothing and personal needs allowance for individuals receiving medical
370.27assistance while residing in any skilled nursing home, medical institution, or intermediate
370.28care facility. The commissioner shall provide timely notice to local agencies, providers,
370.29and recipients of increases under this provision.
370.30(b) The personal needs allowance may be paid as part of the Minnesota supplemental
370.31aid program, and payments to recipients of Minnesota supplemental aid may be made once
370.32each three months covering liabilities that accrued during the preceding three months.
370.33(c) The personal needs allowance shall be increased to include income garnished
370.34for child support under a court order, up to a maximum of $250 per month but only to
371.1the extent that the amount garnished is not deducted as a monthly allowance for children
371.2under section 256B.0575, paragraph (a), clause (5).
371.3(d) Solely for the purpose of section 256B.0575, subdivision 1, paragraph (a), clause
371.4(1), the personal needs allowance shall be increased to include income garnished for
371.5spousal maintenance under a judgment and decree for dissolution of marriage, and any
371.6administrative fees garnished for collection efforts.

371.7    Sec. 57. Minnesota Statutes 2013 Supplement, section 256B.439, subdivision 1,
371.8is amended to read:
371.9    Subdivision 1. Development and implementation of quality profiles. (a) The
371.10commissioner of human services, in cooperation with the commissioner of health, shall
371.11develop and implement quality profiles for nursing facilities and, beginning not later than
371.12July 1, 2014, for home and community-based services providers, except when the quality
371.13profile system would duplicate requirements under section 256B.5011, 256B.5012, or
371.14256B.5013 . For purposes of this section, home and community-based services providers
371.15are defined as providers of home and community-based services under sections 256B.0625,
371.16subdivisions 6a, 7, and 19a; 256B.0913 ,; 256B.0915,; 256B.092, and; 256B.49,; and
371.17256B.85, and intermediate care facilities for persons with developmental disabilities
371.18providers under section 256B.5013. To the extent possible, quality profiles must be
371.19developed for providers of services to older adults and people with disabilities, regardless
371.20of payor source, for the purposes of providing information to consumers. The quality
371.21profiles must be developed using existing data sets maintained by the commissioners of
371.22health and human services to the extent possible. The profiles must incorporate or be
371.23coordinated with information on quality maintained by area agencies on aging, long-term
371.24care trade associations, the ombudsman offices, counties, tribes, health plans, and other
371.25entities and the long-term care database maintained under section 256.975, subdivision 7.
371.26The profiles must be designed to provide information on quality to:
371.27(1) consumers and their families to facilitate informed choices of service providers;
371.28(2) providers to enable them to measure the results of their quality improvement
371.29efforts and compare quality achievements with other service providers; and
371.30(3) public and private purchasers of long-term care services to enable them to
371.31purchase high-quality care.
371.32(b) The profiles must be developed in consultation with the long-term care task
371.33force, area agencies on aging, and representatives of consumers, providers, and labor
371.34unions. Within the limits of available appropriations, the commissioners may employ
371.35consultants to assist with this project.
372.1EFFECTIVE DATE.This section is effective retroactively from February 1, 2014.

372.2    Sec. 58. Minnesota Statutes 2013 Supplement, section 256B.439, subdivision 7,
372.3is amended to read:
372.4    Subd. 7. Calculation of home and community-based services quality add-on.
372.5Effective On July 1, 2015, the commissioner shall determine the quality add-on rate
372.6change and adjust payment rates for participating all home and community-based services
372.7providers for services rendered on or after that date. The adjustment to a provider payment
372.8rate determined under this subdivision shall become part of the ongoing rate paid to that
372.9provider. The payment rate for the quality add-on shall be a variable amount based on
372.10each provider's quality score as determined in subdivisions 1 and 2a. All home and
372.11community-based services providers shall receive a minimum rate increase under this
372.12subdivision. In addition to a minimum rate increase, a home and community-based
372.13services provider shall receive a quality add-on payment. The commissioner shall limit
372.14the types of home and community-based services providers that may receive the quality
372.15add-on and based on availability of quality measures and outcome data. The commissioner
372.16shall limit the amount of the minimum rate increase and quality add-on payments to
372.17operate the quality add-on within funds appropriated for this purpose and based on the
372.18availability of the quality measures the equivalent of a one percent rate increase for all
372.19home and community-based services providers.

372.20    Sec. 59. Minnesota Statutes 2013 Supplement, section 256B.441, subdivision 53,
372.21is amended to read:
372.22    Subd. 53. Calculation of payment rate for external fixed costs. The commissioner
372.23shall calculate a payment rate for external fixed costs.
372.24    (a) For a facility licensed as a nursing home, the portion related to section 256.9657
372.25shall be equal to $8.86. For a facility licensed as both a nursing home and a boarding care
372.26home, the portion related to section 256.9657 shall be equal to $8.86 multiplied by the
372.27result of its number of nursing home beds divided by its total number of licensed beds.
372.28    (b) The portion related to the licensure fee under section 144.122, paragraph (d),
372.29shall be the amount of the fee divided by actual resident days.
372.30    (c) The portion related to scholarships shall be determined under section 256B.431,
372.31subdivision 36.
372.32    (d) Until September 30, 2013, the portion related to long-term care consultation shall
372.33be determined according to section 256B.0911, subdivision 6.
373.1    (e) The portion related to development and education of resident and family advisory
373.2councils under section 144A.33 shall be $5 divided by 365.
373.3    (f) The portion related to planned closure rate adjustments shall be as determined
373.4under section 256B.437, subdivision 6, and Minnesota Statutes 2010, section 256B.436.
373.5Planned closure rate adjustments that take effect before October 1, 2014, shall no longer
373.6be included in the payment rate for external fixed costs beginning October 1, 2016.
373.7Planned closure rate adjustments that take effect on or after October 1, 2014, shall no
373.8longer be included in the payment rate for external fixed costs beginning on October 1 of
373.9the first year not less than two years after their effective date.
373.10    (g) The portions related to property insurance, real estate taxes, special assessments,
373.11and payments made in lieu of real estate taxes directly identified or allocated to the nursing
373.12facility shall be the actual amounts divided by actual resident days.
373.13    (h) The portion related to the Public Employees Retirement Association shall be
373.14actual costs divided by resident days.
373.15    (i) The single bed room incentives shall be as determined under section 256B.431,
373.16subdivision 42. Single bed room incentives that take effect before October 1, 2014, shall
373.17no longer be included in the payment rate for external fixed costs beginning October 1,
373.182016. Single bed room incentives that take effect on or after October 1, 2014, shall no
373.19longer be included in the payment rate for external fixed costs beginning on October 1 of
373.20the first year not less than two years after their effective date.
373.21    (j) The portion related to the rate adjustment as provided in section 77, subdivision 3.
373.22    (k) The payment rate for external fixed costs shall be the sum of the amounts in
373.23paragraphs (a) to (i) (j).

373.24    Sec. 60. Minnesota Statutes 2013 Supplement, section 256B.441, subdivision 63,
373.25is amended to read:
373.26    Subd. 63. Critical access nursing facilities. (a) The commissioner, in consultation
373.27with the commissioner of health, may designate certain nursing facilities as critical access
373.28nursing facilities. The designation shall be granted on a competitive basis, within the
373.29limits of funds appropriated for this purpose.
373.30(b) The commissioner shall request proposals from nursing facilities every
373.31two years. Proposals must be submitted in the form and according to the timelines
373.32established by the commissioner. In selecting applicants to designate, the commissioner,
373.33in consultation with the commissioner of health, and with input from stakeholders, shall
373.34develop criteria designed to preserve access to nursing facility services in isolated areas,
373.35rebalance long-term care, and improve quality. Beginning in fiscal year 2015, to the
374.1extent practicable, the commissioner shall ensure an even distribution of designations
374.2across the state.
374.3(c) The commissioner shall allow the benefits in clauses (1) to (5) for nursing
374.4facilities designated as critical access nursing facilities:
374.5(1) partial rebasing, with the commissioner allowing a designated facility operating
374.6payment rates being the sum of up to 60 percent of the operating payment rate determined
374.7in accordance with subdivision 54 and at least 40 percent, with the sum of the two portions
374.8being equal to 100 percent, of the operating payment rate that would have been allowed
374.9had the facility not been designated. The commissioner may adjust these percentages by
374.10up to 20 percent and may approve a request for less than the amount allowed;
374.11(2) enhanced payments for leave days. Notwithstanding section 256B.431,
374.12subdivision 2r, upon designation as a critical access nursing facility, the commissioner
374.13shall limit payment for leave days to 60 percent of that nursing facility's total payment rate
374.14for the involved resident, and shall allow this payment only when the occupancy of the
374.15nursing facility, inclusive of bed hold days, is equal to or greater than 90 percent;
374.16(3) two designated critical access nursing facilities, with up to 100 beds in active
374.17service, may jointly apply to the commissioner of health for a waiver of Minnesota
374.18Rules, part 4658.0500, subpart 2, in order to jointly employ a director of nursing. The
374.19commissioner of health will consider each waiver request independently based on the
374.20criteria under Minnesota Rules, part 4658.0040;
374.21(4) the minimum threshold under section 256B.431, subdivision 15, paragraph (e),
374.22shall be 40 percent of the amount that would otherwise apply; and
374.23(5) notwithstanding subdivision 58, beginning October 1, 2014, the quality-based
374.24rate limits under subdivision 50 shall apply to designated critical access nursing facilities.
374.25(d) Designation of a critical access nursing facility shall be for a period of two
374.26years, after which the benefits allowed under paragraph (c) shall be removed. Designated
374.27facilities may apply for continued designation.

374.28    Sec. 61. Minnesota Statutes 2013 Supplement, section 256B.4912, subdivision 1,
374.29is amended to read:
374.30    Subdivision 1. Provider qualifications. (a) For the home and community-based
374.31waivers providing services to seniors and individuals with disabilities under sections
374.32256B.0913 , 256B.0915, 256B.092, and 256B.49, the commissioner shall establish:
374.33(1) agreements with enrolled waiver service providers to ensure providers meet
374.34Minnesota health care program requirements;
375.1(2) regular reviews of provider qualifications, and including requests of proof of
375.2documentation; and
375.3(3) processes to gather the necessary information to determine provider qualifications.
375.4    (b) Beginning July 1, 2012, staff that provide direct contact, as defined in section
375.5245C.02, subdivision 11 , for services specified in the federally approved waiver plans
375.6must meet the requirements of chapter 245C prior to providing waiver services and as
375.7part of ongoing enrollment. Upon federal approval, this requirement must also apply to
375.8consumer-directed community supports.
375.9    (c) Beginning January 1, 2014, service owners and managerial officials overseeing
375.10the management or policies of services that provide direct contact as specified in the
375.11federally approved waiver plans must meet the requirements of chapter 245C prior to
375.12reenrollment or revalidation or, for new providers, prior to initial enrollment if they have
375.13not already done so as a part of service licensure requirements.

375.14    Sec. 62. Minnesota Statutes 2013 Supplement, section 256B.4913, subdivision 4a,
375.15is amended to read:
375.16    Subd. 4a. Rate stabilization adjustment. (a) For purposes of this subdivision,
375.17"implementation period" shall mean means the period beginning January 1, 2014, and
375.18ending on the last day of the month in which the rate management system is populated
375.19with the data necessary to calculate rates for substantially all individuals receiving home
375.20and community-based waiver services under sections 256B.092 and 256B.49. "Banding
375.21period" means the time period beginning on January 1, 2014, and ending upon the
375.22expiration of the 12-month period defined in paragraph (c), clause (5).
375.23(b) For purposes of this subdivision, the banding value historical rate for all service
375.24recipients shall mean means the individual reimbursement rate for a recipient in effect on
375.25December 1, 2013, except that:
375.26(1)(i) for day training and habilitation pilot program service recipients, the banding
375.27value shall be the authorized rate for the provider in the county of service effective
375.28December 1, 2013, if the for a day service recipient: who was not authorized to receive
375.29these waiver services prior to January 1, 2014; added a new service or services on or after
375.30January 1, 2014; or changed providers on or after January 1, 2014, the historical rate
375.31must be the authorized rate for the provider in the county of service, effective December
375.321, 2013; and or
375.33(ii) for all other unit or day service recipients, the banding value shall be the
375.34weighted average authorized rate for each provider number in the county of service
375.35effective December 1, 2013, if the (2) for a unit-based service with programming or
376.1a unit-based service without programming recipient: who was not authorized to receive
376.2these waiver services prior to January 1, 2014; added a new service or services on or after
376.3January 1, 2014; or changed providers on or after January 1, 2014, the historical rate
376.4must be the weighted average authorized rate for each provider number in the county of
376.5service, effective December 1, 2013; and or
376.6(2) (3) for residential service recipients who change providers on or after January
376.71, 2014, the banding value shall historical rate must be set by each lead agency within
376.8their county aggregate budget using their respective methodology for residential services
376.9effective December 1, 2013, for determining the provider rate for a similarly situated
376.10recipient being served by that provider.
376.11(c) The commissioner shall adjust individual reimbursement rates determined under
376.12this section so that the unit rate is no higher or lower than:
376.13(1) 0.5 percent from the banding value historical rate for the implementation period;
376.14(2) 0.5 percent from the rate in effect in clause (1), for the 12-month period
376.15immediately following the time period of clause (1);
376.16(3) 1.0 percent from the rate in effect in clause (2), for the 12-month period
376.17immediately following the time period of clause (2);
376.18(4) 1.0 percent from the rate in effect in clause (3), for the 12-month period
376.19immediately following the time period of clause (3); and
376.20(5) 1.0 percent from the rate in effect in clause (4), for the 12-month period
376.21immediately following the time period of clause (4).
376.22(d) The commissioner shall review all changes to rates that were in effect on
376.23December 1, 2013, to verify that the rates in effect produce the equivalent level of spending
376.24and service unit utilization on an annual basis as those in effect on October 31, 2013.
376.25(e) By December 31, 2014, the commissioner shall complete the review in paragraph
376.26(d), adjust rates to provide equivalent annual spending and make appropriate adjustments.
376.27(f) During the banding period, the Medicaid Management Information System
376.28(MMIS) service agreement rate must be adjusted to account for change in an individual's
376.29need. The commissioner shall adjust the Medicaid Management Information System
376.30(MMIS) service agreement rate by:
376.31(1) calculating a service rate under section 256B.4914, subdivision 6, 7, 8, or 9, for
376.32the individual with variables reflecting the level of service in effect on December 1, 2013;
376.33(2) calculating a service rate under section 256B.4914, subdivision 6, 7, 8, or
376.349, for the individual with variables reflecting the updated level of service at the time
376.35of application; and
377.1(3) adding to or subtracting from the Medicaid Management Information System
377.2(MMIS) service agreement rate, the difference between the values in clauses (1) and (2).
377.3(g) This subdivision shall must not apply to rates for recipients served by providers
377.4new to a given county after January 1, 2014. Providers of personal supports services who
377.5also acted as fiscal support entities must be treated as new providers as of January 1, 2014.

377.6    Sec. 63. Minnesota Statutes 2013 Supplement, section 256B.4914, subdivision 2,
377.7is amended to read:
377.8    Subd. 2. Definitions. (a) For purposes of this section, the following terms have the
377.9meanings given them, unless the context clearly indicates otherwise.
377.10(b) "Commissioner" means the commissioner of human services.
377.11(c) "Component value" means underlying factors that are part of the cost of providing
377.12services that are built into the waiver rates methodology to calculate service rates.
377.13(d) "Customized living tool" means a methodology for setting service rates that
377.14delineates and documents the amount of each component service included in a recipient's
377.15customized living service plan.
377.16(e) "Disability waiver rates system" means a statewide system that establishes rates
377.17that are based on uniform processes and captures the individualized nature of waiver
377.18services and recipient needs.
377.19(f) "Individual staffing" means the time spent as a one-to-one interaction specific to
377.20an individual recipient by staff brought in solely to provide direct support and assistance
377.21with activities of daily living, instrumental activities of daily living, and training to
377.22participants, and is based on the requirements in each individual's coordinated service and
377.23support plan under section 245D.02, subdivision 4b; any coordinated service and support
377.24plan addendum under section 245D.02, subdivision 4c; an assessment tool; and provider
377.25observation of an individual's needs.
377.26(g) "Lead agency" means a county, partnership of counties, or tribal agency charged
377.27with administering waivered services under sections 256B.092 and 256B.49.
377.28(g) (h) "Median" means the amount that divides distribution into two equal groups,
377.29one-half above the median and one-half below the median.
377.30(h) (i) "Payment or rate" means reimbursement to an eligible provider for services
377.31provided to a qualified individual based on an approved service authorization.
377.32(i) (j) "Rates management system" means a Web-based software application that
377.33uses a framework and component values, as determined by the commissioner, to establish
377.34service rates.
378.1(j) (k) "Recipient" means a person receiving home and community-based services
378.2funded under any of the disability waivers.
378.3(l) "Shared staffing" means time spent by employees, not defined under paragraph (f)
378.4or (i), providing or available to provide more than one individual with direct support and
378.5assistance with activities of daily living as defined under section 256B.0659, subdivision 1,
378.6paragraph (b); instrumental activities of daily living as defined under section 256B.0659,
378.7subdivision 1, paragraph (i); ancillary activities needed to support individual services; and
378.8training to participants, and is based on the requirements in each individual's coordinated
378.9service and support plan under section 245D.02, subdivision 4b; any coordinated service
378.10and support plan addendum under section 245D.02, subdivision 4c; an assessment tool;
378.11and provider observation of an individual's service need. Total shared staffing hours are
378.12divided by the average number of individuals who receive the shared service provisions.
378.13(m) "Staffing ratio" means the number of recipients a service provider employee
378.14supports during a unit of service based on a uniform assessment tool, provider observation,
378.15case history, and the recipient's services of choice, and not based on the staffing ratios
378.16under section 245D.31.
378.17    (n) "Unit of service" means the following:
378.18    (1) for residential support services under subdivision 6, a unit of service is a day.
378.19Any portion of any calendar day, within allowable Medicaid rules, where an individual
378.20spends time in a residential setting is billable as a day;
378.21    (2) for day services under subdivision 7:
378.22    (i) for day training and habilitation services, a unit of service is either:
378.23    (A) a day unit of service is defined as six or more hours of time spent providing
378.24direct services and transportation; or
378.25    (B) a partial day unit of service is defined as fewer than six hours of time spent
378.26providing direct services and transportation; and
378.27    (C) for new day service recipients after January 1, 2014, 15 minute units of
378.28service must be used for fewer than six hours of time spent providing direct services
378.29and transportation;
378.30    (ii) for adult day and structured day services, a unit of service is a day or 15 minutes.
378.31A day unit of service is six or more hours of time spent providing direct services;
378.32    (iii) for prevocational services, a unit of service is a day or an hour. A day unit of
378.33service is six or more hours of time spent providing direct service;
378.34    (3) for unit-based services with programming under subdivision 8:
379.1    (i) for supported living services, a unit of service is a day or 15 minutes. When a
379.2day rate is authorized, any portion of a calendar day where an individual receives services
379.3is billable as a day; and
379.4    (ii) for all other services, a unit of service is 15 minutes; and
379.5    (4) for unit-based services without programming under subdivision 9:
379.6    (i) for respite services, a unit of service is a day or 15 minutes. When a day rate is
379.7authorized, any portion of a calendar day when an individual receives services is billable
379.8as a day; and
379.9    (ii) for all other services, a unit of service is 15 minutes.

379.10    Sec. 64. Minnesota Statutes 2013 Supplement, section 256B.4914, subdivision 4,
379.11is amended to read:
379.12    Subd. 4. Data collection for rate determination. (a) Rates for applicable home
379.13and community-based waivered services, including rate exceptions under subdivision 12,
379.14are set by the rates management system.
379.15(b) Data for services under section 256B.4913, subdivision 4a, shall be collected in a
379.16manner prescribed by the commissioner.
379.17(c) Data and information in the rates management system may be used to calculate
379.18an individual's rate.
379.19(d) Service providers, with information from the community support plan and
379.20oversight by lead agencies, shall provide values and information needed to calculate an
379.21individual's rate into the rates management system. These The determination of service
379.22levels must be part of a discussion with members of the support team as defined in section
379.23245D.02, subdivision 34.This discussion must occur prior to the final establishment of
379.24each individual's rate. The values and information include:
379.25(1) shared staffing hours;
379.26(2) individual staffing hours;
379.27(3) direct RN registered nurse hours;
379.28(4) direct LPN licensed practical nurse hours;
379.29(5) staffing ratios;
379.30(6) information to document variable levels of service qualification for variable
379.31levels of reimbursement in each framework;
379.32(7) shared or individualized arrangements for unit-based services, including the
379.33staffing ratio;
379.34(8) number of trips and miles for transportation services; and
379.35(9) service hours provided through monitoring technology.
380.1(e) Updates to individual data shall must include:
380.2(1) data for each individual that is updated annually when renewing service plans; and
380.3(2) requests by individuals or lead agencies to update a rate whenever there is a
380.4change in an individual's service needs, with accompanying documentation.
380.5(f) Lead agencies shall review and approve all services reflecting each individual's
380.6needs, and the values to calculate the final payment rate for services with variables under
380.7subdivisions 6, 7, 8, and 9 for each individual. Lead agencies must notify the individual
380.8and the service provider of the final agreed-upon values and rate, and provide information
380.9that is identical to what was entered into the rates management system. If a value used
380.10was mistakenly or erroneously entered and used to calculate a rate, a provider may
380.11petition lead agencies to correct it. Lead agencies must respond to these requests. When
380.12responding to the request, the lead agency must consider:
380.13(1) meeting the health and welfare needs of the individual or individuals receiving
380.14services by service site, identified in their coordinated service and support plan under
380.15section 245D.02, subdivision 4b, and any addendum under section 245D.02, subdivision
380.164c;
380.17(2) meeting the requirements for staffing under subdivision 2, paragraphs (f), (i),
380.18and (m); and meeting or exceeding the licensing standards for staffing required under
380.19section 245D.09, subdivision 1; and
380.20(3) meeting the staffing ratio requirements under subdivision 2, paragraph (n), and
380.21meeting or exceeding the licensing standards for staffing required under section 245D.31.

380.22    Sec. 65. Minnesota Statutes 2013 Supplement, section 256B.4914, subdivision 5,
380.23is amended to read:
380.24    Subd. 5. Base wage index and standard component values. (a) The base wage
380.25index is established to determine staffing costs associated with providing services to
380.26individuals receiving home and community-based services. For purposes of developing
380.27and calculating the proposed base wage, Minnesota-specific wages taken from job
380.28descriptions and standard occupational classification (SOC) codes from the Bureau of
380.29Labor Statistics as defined in the most recent edition of the Occupational Handbook shall
380.30 must be used. The base wage index shall must be calculated as follows:
380.31(1) for residential direct care staff, the sum of:
380.32(i) 15 percent of the subtotal of 50 percent of the median wage for personal and
380.33home health aide (SOC code 39-9021); 30 percent of the median wage for nursing aide
380.34(SOC code 31-1012); and 20 percent of the median wage for social and human services
380.35aide (SOC code 21-1093); and
381.1(ii) 85 percent of the subtotal of 20 percent of the median wage for home health aide
381.2(SOC code 31-1011); 20 percent of the median wage for personal and home health aide
381.3(SOC code 39-9021); 20 percent of the median wage for nursing aide (SOC code 31-1012);
381.420 percent of the median wage for psychiatric technician (SOC code 29-2053); and 20
381.5percent of the median wage for social and human services aide (SOC code 21-1093);
381.6(2) for day services, 20 percent of the median wage for nursing aide (SOC code
381.731-1012); 20 percent of the median wage for psychiatric technician (SOC code 29-2053);
381.8and 60 percent of the median wage for social and human services aide (SOC code 21-1093);
381.9(3) for residential asleep-overnight staff, the wage will be $7.66 per hour, except in
381.10a family foster care setting, the wage is $2.80 per hour;
381.11(4) for behavior program analyst staff, 100 percent of the median wage for mental
381.12health counselors (SOC code 21-1014);
381.13(5) for behavior program professional staff, 100 percent of the median wage for
381.14clinical counseling and school psychologist (SOC code 19-3031);
381.15(6) for behavior program specialist staff, 100 percent of the median wage for
381.16psychiatric technicians (SOC code 29-2053);
381.17(7) for supportive living services staff, 20 percent of the median wage for nursing
381.18aide (SOC code 31-1012); 20 percent of the median wage for psychiatric technician (SOC
381.19code 29-2053); and 60 percent of the median wage for social and human services aide
381.20(SOC code 21-1093);
381.21(8) for housing access coordination staff, 50 percent of the median wage for
381.22community and social services specialist (SOC code 21-1099); and 50 percent of the
381.23median wage for social and human services aide (SOC code 21-1093);
381.24(9) for in-home family support staff, 20 percent of the median wage for nursing
381.25aide (SOC code 31-1012); 30 percent of the median wage for community social service
381.26specialist (SOC code 21-1099); 40 percent of the median wage for social and human
381.27services aide (SOC code 21-1093); and ten percent of the median wage for psychiatric
381.28technician (SOC code 29-2053);
381.29(10) for independent living skills staff, 40 percent of the median wage for community
381.30social service specialist (SOC code 21-1099); 50 percent of the median wage for social
381.31and human services aide (SOC code 21-1093); and ten percent of the median wage for
381.32psychiatric technician (SOC code 29-2053);
381.33(11) for supported employment staff, 20 percent of the median wage for nursing aide
381.34(SOC code 31-1012); 20 percent of the median wage for psychiatric technician (SOC
381.35code 29-2053); and 60 percent of the median wage for social and human services aide
381.36(SOC code 21-1093);
382.1(12) for adult companion staff, 50 percent of the median wage for personal and home
382.2care aide (SOC code 39-9021); and 50 percent of the median wage for nursing aides,
382.3orderlies, and attendants (SOC code 31-1012);
382.4(13) for night supervision staff, 20 percent of the median wage for home health aide
382.5(SOC code 31-1011); 20 percent of the median wage for personal and home health aide
382.6(SOC code 39-9021); 20 percent of the median wage for nursing aide (SOC code 31-1012);
382.720 percent of the median wage for psychiatric technician (SOC code 29-2053); and 20
382.8percent of the median wage for social and human services aide (SOC code 21-1093);
382.9(14) for respite staff, 50 percent of the median wage for personal and home care aide
382.10(SOC code 39-9021); and 50 percent of the median wage for nursing aides, orderlies, and
382.11attendants (SOC code 31-1012);
382.12(15) for personal support staff, 50 percent of the median wage for personal and home
382.13care aide (SOC code 39-9021); and 50 percent of the median wage for nursing aides,
382.14orderlies, and attendants (SOC code 31-1012);
382.15(16) for supervisory staff, the basic wage is $17.43 per hour with exception of
382.16the supervisor of behavior analyst and behavior specialists, which shall must be $30.75
382.17per hour;
382.18(17) for RN registered nurse, the basic wage is $30.82 per hour; and
382.19(18) for LPN licensed practical nurse, the basic wage is $18.64 per hour.
382.20(b) Component values for residential support services are:
382.21(1) supervisory span of control ratio: 11 percent;
382.22(2) employee vacation, sick, and training allowance ratio: 8.71 percent;
382.23(3) employee-related cost ratio: 23.6 percent;
382.24(4) general administrative support ratio: 13.25 percent;
382.25(5) program-related expense ratio: 1.3 percent; and
382.26(6) absence and utilization factor ratio: 3.9 percent.
382.27(c) Component values for family foster care are:
382.28(1) supervisory span of control ratio: 11 percent;
382.29(2) employee vacation, sick, and training allowance ratio: 8.71 percent;
382.30(3) employee-related cost ratio: 23.6 percent;
382.31(4) general administrative support ratio: 3.3 percent;
382.32(5) program-related expense ratio: 1.3 percent; and
382.33(6) absence factor: 1.7 percent.
382.34(d) Component values for day services for all services are:
382.35(1) supervisory span of control ratio: 11 percent;
382.36(2) employee vacation, sick, and training allowance ratio: 8.71 percent;
383.1(3) employee-related cost ratio: 23.6 percent;
383.2(4) program plan support ratio: 5.6 percent;
383.3(5) client programming and support ratio: ten percent;
383.4(6) general administrative support ratio: 13.25 percent;
383.5(7) program-related expense ratio: 1.8 percent; and
383.6(8) absence and utilization factor ratio: 3.9 percent.
383.7(e) Component values for unit-based services with programming are:
383.8(1) supervisory span of control ratio: 11 percent;
383.9(2) employee vacation, sick, and training allowance ratio: 8.71 percent;
383.10(3) employee-related cost ratio: 23.6 percent;
383.11(4) program plan supports ratio: 3.1 percent;
383.12(5) client programming and supports ratio: 8.6 percent;
383.13(6) general administrative support ratio: 13.25 percent;
383.14(7) program-related expense ratio: 6.1 percent; and
383.15(8) absence and utilization factor ratio: 3.9 percent.
383.16(f) Component values for unit-based services without programming except respite
383.17are:
383.18(1) supervisory span of control ratio: 11 percent;
383.19(2) employee vacation, sick, and training allowance ratio: 8.71 percent;
383.20(3) employee-related cost ratio: 23.6 percent;
383.21(4) program plan support ratio: 3.1 percent;
383.22(5) client programming and support ratio: 8.6 percent;
383.23(6) general administrative support ratio: 13.25 percent;
383.24(7) program-related expense ratio: 6.1 percent; and
383.25(8) absence and utilization factor ratio: 3.9 percent.
383.26(g) Component values for unit-based services without programming for respite are:
383.27(1) supervisory span of control ratio: 11 percent;
383.28(2) employee vacation, sick, and training allowance ratio: 8.71 percent;
383.29(3) employee-related cost ratio: 23.6 percent;
383.30(4) general administrative support ratio: 13.25 percent;
383.31(5) program-related expense ratio: 6.1 percent; and
383.32(6) absence and utilization factor ratio: 3.9 percent.
383.33(h) On July 1, 2017, the commissioner shall update the base wage index in paragraph
383.34(b) (a) based on the wage data by standard occupational code (SOC) from the Bureau of
383.35Labor Statistics available on December 31, 2016. The commissioner shall publish these
383.36updated values and load them into the rate management system. This adjustment occurs
384.1every five years. For adjustments in 2021 and beyond, the commissioner shall use the data
384.2available on December 31 of the calendar year five years prior.
384.3(i) On July 1, 2017, the commissioner shall update the framework components in
384.4paragraph (c) paragraphs (b) to (g); subdivision 6, clauses (8) and (9); and subdivision
384.57, clauses (16) and (17), for changes in the Consumer Price Index. The commissioner
384.6will adjust these values higher or lower by the percentage change in the Consumer Price
384.7Index-All Items, United States city average (CPI-U) from January 1, 2014, to January 1,
384.82017. The commissioner shall publish these updated values and load them into the rate
384.9management system. This adjustment occurs every five years. For adjustments in 2021
384.10and beyond, the commissioner shall use the data available on January 1 of the calendar
384.11year four years prior and January 1 of the current calendar year.

384.12    Sec. 66. Minnesota Statutes 2013 Supplement, section 256B.4914, subdivision 6,
384.13is amended to read:
384.14    Subd. 6. Payments for residential support services. (a) Payments for residential
384.15support services, as defined in sections 256B.092, subdivision 11, and 256B.49,
384.16subdivision 22, must be calculated as follows:
384.17(1) determine the number of shared staffing and individual direct staff hours to meet
384.18a recipient's needs provided on-site or through monitoring technology;
384.19(2) personnel hourly wage rate must be based on the 2009 Bureau of Labor Statistics
384.20Minnesota-specific rates or rates derived by the commissioner as provided in subdivision
384.215. This is defined as the direct-care rate;
384.22(3) for a recipient requiring customization for deaf and hard-of-hearing language
384.23accessibility under subdivision 12, add the customization rate provided in subdivision 12
384.24to the result of clause (2). This is defined as the customized direct-care rate;
384.25(4) multiply the number of shared and individual direct staff hours provided on-site
384.26or through monitoring technology and direct nursing hours by the appropriate staff wages
384.27in subdivision 5, paragraph (a), or the customized direct-care rate;
384.28(5) multiply the number of shared and individual direct staff hours provided
384.29on-site or through monitoring technology and direct nursing hours by the product of
384.30the supervision span of control ratio in subdivision 5, paragraph (b), clause (1), and the
384.31appropriate supervision wage in subdivision 5, paragraph (a), clause (16);
384.32(6) combine the results of clauses (4) and (5), excluding any shared and individual
384.33direct staff hours provided through monitoring technology, and multiply the result by one
384.34plus the employee vacation, sick, and training allowance ratio in subdivision 5, paragraph
384.35(b), clause (2). This is defined as the direct staffing cost;
385.1(7) for employee-related expenses, multiply the direct staffing cost, excluding any
385.2shared and individual direct staff hours provided through monitoring technology, by one
385.3plus the employee-related cost ratio in subdivision 5, paragraph (b), clause (3);
385.4(8) for client programming and supports, the commissioner shall add $2,179; and
385.5(9) for transportation, if provided, the commissioner shall add $1,680, or $3,000
385.6if customized for adapted transport, per year based on the resident with the highest
385.7assessed need.
385.8(b) The total rate shall must be calculated using the following steps:
385.9(1) subtotal paragraph (a), clauses (7) to (9), and the direct staffing cost of any
385.10shared and individual direct staff hours provided through monitoring technology that
385.11was excluded in clause (7);
385.12(2) sum the standard general and administrative rate, the program-related expense
385.13ratio, and the absence and utilization ratio;
385.14(3) divide the result of clause (1) by one minus the result of clause (2). This is
385.15the total payment amount; and
385.16(4) adjust the result of clause (3) by a factor to be determined by the commissioner
385.17to adjust for regional differences in the cost of providing services.
385.18(c) The payment methodology for customized living, 24-hour customized living,
385.19and residential care services shall must be the customized living tool. Revisions to the
385.20customized living tool shall must be made to reflect the services and activities unique to
385.21disability-related recipient needs.
385.22(d) The commissioner shall establish a Monitoring Technology Review Panel to
385.23annually review and approve the plans, safeguards, and rates that include residential
385.24direct care provided remotely through monitoring technology. Lead agencies shall submit
385.25individual service plans that include supervision using monitoring technology to the
385.26Monitoring Technology Review Panel for approval. Individual service plans that include
385.27supervision using monitoring technology as of December 31, 2013, shall be submitted to
385.28the Monitoring Technology Review Panel, but the plans are not subject to approval.
385.29(e) For individuals enrolled prior to January 1, 2014, the days of service authorized
385.30must meet or exceed the days of service used to convert service agreements in effect on
385.31December 1, 2013, and must not result in a reduction in spending or service utilization due
385.32to conversion during the implementation period under section 256B.4913, subdivision 4a.
385.33If during the implementation period, an individual's historical rate, including adjustments
385.34required under section 256B.4913, subdivision 4a, paragraph (c), is equal to or greater
385.35than the rate determined in this subdivision, the number of days authorized for the
385.36individual is 365.
386.1(f) The number of days authorized for all individuals enrolling after January 1, 2014,
386.2in residential services must include every day that services start and end.

386.3    Sec. 67. Minnesota Statutes 2013 Supplement, section 256B.4914, subdivision 7,
386.4is amended to read:
386.5    Subd. 7. Payments for day programs. Payments for services with day programs
386.6including adult day care, day treatment and habilitation, prevocational services, and
386.7structured day services must be calculated as follows:
386.8(1) determine the number of units of service and staffing ratio to meet a recipient's
386.9needs:
386.10(i) the staffing ratios for the units of service provided to a recipient in a typical week
386.11must be averaged to determine an individual's staffing ratio; and
386.12(ii) the commissioner, in consultation with service providers, shall develop a uniform
386.13staffing ratio worksheet to be used to determine staffing ratios under this subdivision;
386.14(2) personnel hourly wage rates must be based on the 2009 Bureau of Labor Statistics
386.15Minnesota-specific rates or rates derived by the commissioner as provided in subdivision 5;
386.16(3) for a recipient requiring customization for deaf and hard-of-hearing language
386.17accessibility under subdivision 12, add the customization rate provided in subdivision 12
386.18to the result of clause (2). This is defined as the customized direct-care rate;
386.19(4) multiply the number of day program direct staff hours and direct nursing hours
386.20by the appropriate staff wage in subdivision 5, paragraph (a), or the customized direct-care
386.21rate;
386.22(5) multiply the number of day direct staff hours by the product of the supervision
386.23span of control ratio in subdivision 5, paragraph (d), clause (1), and the appropriate
386.24supervision wage in subdivision 5, paragraph (a), clause (16);
386.25(6) combine the results of clauses (4) and (5), and multiply the result by one plus
386.26the employee vacation, sick, and training allowance ratio in subdivision 5, paragraph (d),
386.27clause (2). This is defined as the direct staffing rate;
386.28(7) for program plan support, multiply the result of clause (6) by one plus the
386.29program plan support ratio in subdivision 5, paragraph (d), clause (4);
386.30(8) for employee-related expenses, multiply the result of clause (7) by one plus the
386.31employee-related cost ratio in subdivision 5, paragraph (d), clause (3);
386.32(9) for client programming and supports, multiply the result of clause (8) by one plus
386.33the client programming and support ratio in subdivision 5, paragraph (d), clause (5);
386.34(10) for program facility costs, add $19.30 per week with consideration of staffing
386.35ratios to meet individual needs;
387.1(11) for adult day bath services, add $7.01 per 15 minute unit;
387.2(12) this is the subtotal rate;
387.3(13) sum the standard general and administrative rate, the program-related expense
387.4ratio, and the absence and utilization factor ratio;
387.5(14) divide the result of clause (12) by one minus the result of clause (13). This is
387.6the total payment amount;
387.7(15) adjust the result of clause (14) by a factor to be determined by the commissioner
387.8to adjust for regional differences in the cost of providing services;
387.9(16) for transportation provided as part of day training and habilitation for an
387.10individual who does not require a lift, add:
387.11(i) $10.50 for a trip between zero and ten miles for a nonshared ride in a vehicle
387.12without a lift, $8.83 for a shared ride in a vehicle without a lift, and $9.25 for a shared
387.13ride in a vehicle with a lift;
387.14(ii) $15.75 for a trip between 11 and 20 miles for a nonshared ride in a vehicle
387.15without a lift, $10.58 for a shared ride in a vehicle without a lift, and $11.88 for a shared
387.16ride in a vehicle with a lift;
387.17(iii) $25.75 for a trip between 21 and 50 miles for a nonshared ride in a vehicle
387.18without a lift, $13.92 for a shared ride in a vehicle without a lift, and $16.88 for a shared
387.19ride in a vehicle with a lift; or
387.20(iv) $33.50 for a trip of 51 miles or more for a nonshared ride in a vehicle without a
387.21lift, $16.50 for a shared ride in a vehicle without a lift, and $20.75 for a shared ride in a
387.22vehicle with a lift;
387.23(17) for transportation provided as part of day training and habilitation for an
387.24individual who does require a lift, add:
387.25(i) $19.05 for a trip between zero and ten miles for a nonshared ride in a vehicle with
387.26a lift, and $15.05 for a shared ride in a vehicle with a lift;
387.27(ii) $32.16 for a trip between 11 and 20 miles for a nonshared ride in a vehicle with a
387.28lift, and $28.16 for a shared ride in a vehicle with a lift;
387.29(iii) $58.76 for a trip between 21 and 50 miles for a nonshared ride in a vehicle with
387.30a lift, and $58.76 for a shared ride in a vehicle with a lift; or
387.31(iv) $80.93 for a trip of 51 miles or more for a nonshared ride in a vehicle with a
387.32lift, and $80.93 for a shared ride in a vehicle with a lift.

387.33    Sec. 68. Minnesota Statutes 2013 Supplement, section 256B.4914, subdivision 9,
387.34is amended to read:
388.1    Subd. 9. Payments for unit-based services without programming. Payments
388.2for unit-based without program services, including night supervision, personal support,
388.3respite, and companion care provided to an individual outside of any day or residential
388.4service plan must be calculated as follows unless the services are authorized separately
388.5under subdivision 6 or 7:
388.6(1) for all services except respite, determine the number of units of service to meet
388.7a recipient's needs;
388.8(2) personnel hourly wage rates must be based on the 2009 Bureau of Labor Statistics
388.9Minnesota-specific rate or rates derived by the commissioner as provided in subdivision 5;
388.10(3) for a recipient requiring customization for deaf and hard-of-hearing language
388.11accessibility under subdivision 12, add the customization rate provided in subdivision 12
388.12to the result of clause (2). This is defined as the customized direct care rate;
388.13(4) multiply the number of direct staff hours by the appropriate staff wage in
388.14subdivision 5 or the customized direct care rate;
388.15(5) multiply the number of direct staff hours by the product of the supervision span
388.16of control ratio in subdivision 5, paragraph (f), clause (1), and the appropriate supervision
388.17wage in subdivision 5, paragraph (a), clause (16);
388.18(6) combine the results of clauses (4) and (5), and multiply the result by one plus
388.19the employee vacation, sick, and training allowance ratio in subdivision 5, paragraph (f),
388.20clause (2). This is defined as the direct staffing rate;
388.21(7) for program plan support, multiply the result of clause (6) by one plus the
388.22program plan support ratio in subdivision 5, paragraph (f), clause (4);
388.23(8) for employee-related expenses, multiply the result of clause (7) by one plus the
388.24employee-related cost ratio in subdivision 5, paragraph (f), clause (3);
388.25(9) for client programming and supports, multiply the result of clause (8) by one plus
388.26the client programming and support ratio in subdivision 5, paragraph (f), clause (5);
388.27(10) this is the subtotal rate;
388.28(11) sum the standard general and administrative rate, the program-related expense
388.29ratio, and the absence and utilization factor ratio;
388.30(12) divide the result of clause (10) by one minus the result of clause (11). This is
388.31the total payment amount;
388.32(13) for respite services, determine the number of daily day units of service to meet
388.33an individual's needs;
388.34(14) personnel hourly wage rates must be based on the 2009 Bureau of Labor Statistics
388.35Minnesota-specific rate or rates derived by the commissioner as provided in subdivision 5;
389.1(15) for a recipient requiring deaf and hard-of-hearing customization under
389.2subdivision 12, add the customization rate provided in subdivision 12 to the result of
389.3clause (14). This is defined as the customized direct care rate;
389.4(16) multiply the number of direct staff hours by the appropriate staff wage in
389.5subdivision 5, paragraph (a);
389.6(17) multiply the number of direct staff hours by the product of the supervisory span
389.7of control ratio in subdivision 5, paragraph (g), clause (1), and the appropriate supervision
389.8wage in subdivision 5, paragraph (a), clause (16);
389.9(18) combine the results of clauses (16) and (17), and multiply the result by one plus
389.10the employee vacation, sick, and training allowance ratio in subdivision 5, paragraph (g),
389.11clause (2). This is defined as the direct staffing rate;
389.12(19) for employee-related expenses, multiply the result of clause (18) by one plus
389.13the employee-related cost ratio in subdivision 5, paragraph (g), clause (3);
389.14(20) this is the subtotal rate;
389.15(21) sum the standard general and administrative rate, the program-related expense
389.16ratio, and the absence and utilization factor ratio;
389.17(22) divide the result of clause (20) by one minus the result of clause (21). This is
389.18the total payment amount; and
389.19(23) adjust the result of clauses (12) and (22) by a factor to be determined by the
389.20commissioner to adjust for regional differences in the cost of providing services.

389.21    Sec. 69. Minnesota Statutes 2013 Supplement, section 256B.4914, subdivision 10,
389.22is amended to read:
389.23    Subd. 10. Updating payment values and additional information. (a) From
389.24January 1, 2014, through December 31, 2017, the commissioner shall develop and
389.25implement uniform procedures to refine terms and adjust values used to calculate payment
389.26rates in this section.
389.27(b) No later than July 1, 2014, the commissioner shall, within available resources,
389.28begin to conduct research and gather data and information from existing state systems or
389.29other outside sources on the following items:
389.30(1) differences in the underlying cost to provide services and care across the state; and
389.31(2) mileage and utilization, vehicle type, lift requirements, incidents of individual
389.32and shared rides, and units of transportation for all day and unit-based services, which
389.33must be collected from providers using the rate management worksheet and entered into
389.34the rates management system; and
390.1(3) the distinct underlying costs for services provided by a license holder certified
390.2under section 245D.33.
390.3(c) Using a statistically valid set of rates management system data, the commissioner,
390.4in consultation with stakeholders, shall analyze for each service the average difference
390.5in the rate on December 31, 2013, and the framework rate at the individual, provider,
390.6lead agency, and state levels. The commissioner shall issue semiannual reports to the
390.7stakeholders on the difference in rates by service and by county during the banding period
390.8under section 256B.4913, subdivision 4a. The commissioner shall issue the first report
390.9by October 1, 2014.
390.10(d) No later than July 1, 2014, the commissioner, in consultation with stakeholders,
390.11shall begin the review and evaluate evaluation of the following values already in
390.12subdivisions 6 to 9, or issues that impact all services, including, but not limited to:
390.13(1) values for transportation rates for day services;
390.14(2) values for transportation rates in residential services;
390.15(3) values for services where monitoring technology replaces staff time;
390.16(4) values for indirect services;
390.17(5) values for nursing;
390.18(6) component values for independent living skills;
390.19(7) component values for family foster care that reflect licensing requirements;
390.20(8) adjustments to other components to replace the budget neutrality factor;
390.21(9) remote monitoring technology for nonresidential services;
390.22(10) values for basic and intensive services in residential services;
390.23(11) values for the facility use rate in day services;
390.24(12) values for workers' compensation as part of employee-related expenses;
390.25(13) values for unemployment insurance as part of employee-related expenses;
390.26(14) a component value to reflect costs for individuals with rates previously adjusted
390.27for the inclusion of group residential housing rate 3 costs, only for any individual enrolled
390.28as of December 31, 2013; and
390.29(15) any changes in state or federal law with an impact on the underlying cost of
390.30providing home and community-based services.
390.31(e) The commissioner shall report to the chairs and the ranking minority members of
390.32the legislative committees and divisions with jurisdiction over health and human services
390.33policy and finance with the information and data gathered under paragraphs (b) to (d)
390.34on the following dates:
390.35(1) January 15, 2015, with preliminary results and data;
391.1(2) January 15, 2016, with a status implementation update, and additional data
391.2and summary information;
391.3(3) January 15, 2017, with the full report; and
391.4(4) January 15, 2019, with another full report, and a full report once every four
391.5years thereafter.
391.6(f) Based on the commissioner's evaluation of the information and data collected
391.7in paragraphs (b) to (d), the commissioner may shall make recommendations to
391.8the legislature to address any potential issues by January 15, 2015, to address any
391.9issues identified during the first year of implementation. After January 15, 2015, the
391.10commissioner may make recommendations to the legislature to address potential issues.
391.11(g) The commissioner shall implement a regional adjustment factor to all rate
391.12calculations in subdivisions 6 to 9, effective no later than January 1, 2015. Prior to
391.13implementation, the commissioner shall consult with stakeholders on the methodology to
391.14calculate the adjustment.
391.15(h) The commissioner shall provide a public notice via LISTSERV in October of
391.16each year beginning October 1, 2014, containing information detailing legislatively
391.17approved changes in:
391.18(1) calculation values including derived wage rates and related employee and
391.19administrative factors;
391.20(2) service utilization;
391.21(3) county and tribal allocation changes; and
391.22(4) information on adjustments made to calculation values and the timing of those
391.23adjustments.
391.24The information in this notice shall must be effective January 1 of the following year.

391.25    Sec. 70. Minnesota Statutes 2013 Supplement, section 256B.4914, subdivision 15,
391.26is amended to read:
391.27    Subd. 15. County or tribal allocations. (a) Upon implementation of the disability
391.28waiver rates management system on January 1, 2014, the commissioner shall establish
391.29a method of tracking and reporting the fiscal impact of the disability waiver rates
391.30management system on individual lead agencies.
391.31(b) Beginning January 1, 2014, the commissioner shall make annual adjustments to
391.32lead agencies' home and community-based waivered service budget allocations to adjust
391.33for rate differences and the resulting impact on county allocations upon implementation of
391.34the disability waiver rates system.
392.1(c) During the first two years of implementation under section 256B.4913, lead
392.2agencies exceeding their allocations under sections 256B.092 and 256B.49 shall only be
392.3held liable for spending in excess of their allocations after a reallocation of resources by
392.4the commissioner under paragraph (b). The commissioner shall reallocate resources under
392.5sections 256B.092, subdivision 12, and 256B.49, subdivision 11a. The commissioner
392.6shall notify lead agencies of this process by July 1, 2014.

392.7    Sec. 71. Minnesota Statutes 2013 Supplement, section 256B.492, is amended to read:
392.8256B.492 HOME AND COMMUNITY-BASED SETTINGS FOR PEOPLE
392.9WITH DISABILITIES.
392.10(a) Individuals receiving services under a home and community-based waiver under
392.11section 256B.092 or 256B.49 may receive services in the following settings:
392.12(1) an individual's own home or family home;
392.13(2) a licensed adult foster care or child foster care setting of up to five people; and
392.14(3) community living settings as defined in section 256B.49, subdivision 23, where
392.15individuals with disabilities may reside in all of the units in a building of four or fewer units,
392.16and who receive services under a home and community-based waiver occupy no more
392.17than the greater of four or 25 percent of the units in a multifamily building of more than
392.18four units, unless required by the Housing Opportunities for Persons with AIDS Program.
392.19(b) The settings in paragraph (a) must not:
392.20(1) be located in a building that is a publicly or privately operated facility that
392.21provides institutional treatment or custodial care;
392.22(2) be located in a building on the grounds of or adjacent to a public or private
392.23institution;
392.24(3) be a housing complex designed expressly around an individual's diagnosis or
392.25disability, unless required by the Housing Opportunities for Persons with AIDS Program;
392.26(4) be segregated based on a disability, either physically or because of setting
392.27characteristics, from the larger community; and
392.28(5) have the qualities of an institution which include, but are not limited to:
392.29regimented meal and sleep times, limitations on visitors, and lack of privacy. Restrictions
392.30agreed to and documented in the person's individual service plan shall not result in a
392.31residence having the qualities of an institution as long as the restrictions for the person are
392.32not imposed upon others in the same residence and are the least restrictive alternative,
392.33imposed for the shortest possible time to meet the person's needs.
393.1(c) The provisions of paragraphs (a) and (b) do not apply to any setting in which
393.2individuals receive services under a home and community-based waiver as of July 1,
393.32012, and the setting does not meet the criteria of this section.
393.4(d) Notwithstanding paragraph (c), a program in Hennepin County established as
393.5part of a Hennepin County demonstration project is qualified for the exception allowed
393.6under paragraph (c).
393.7(e) Notwithstanding paragraphs (a) and (b), a program in Hennepin County, located
393.8in the city of Golden Valley, within the city of Golden Valley's Highway 55 West
393.9redevelopment area, that is not a provider-owned or controlled home and community-based
393.10setting, and is scheduled to open by July 1, 2016, is exempt from the restrictions in
393.11paragraphs (a) and (b). If the program fails to comply with the Centers for Medicare and
393.12Medicaid Services rules for home and community-based settings, the exemption is void.
393.13(f) The commissioner shall submit an amendment to the waiver plan no later than
393.14December 31, 2012.

393.15    Sec. 72. Minnesota Statutes 2012, section 256B.5012, is amended by adding a
393.16subdivision to read:
393.17    Subd. 16. ICF/DD rate increases effective July 1, 2014. (a) For the rate period
393.18beginning July 1, 2014, the commissioner shall increase operating payments for each
393.19facility reimbursed under this section equal to five percent of the operating payment
393.20rates in effect on June 30, 2014.
393.21(b) For each facility, the commissioner shall apply the rate increase based on
393.22occupied beds, using the percentage specified in this subdivision multiplied by the total
393.23payment rate, including the variable rate but excluding the property-related payment rate
393.24in effect on June 30, 2014. The total rate increase shall include the adjustment provided in
393.25section 256B.501, subdivision 12.
393.26(c) Facilities that receive a rate increase under this subdivision shall use 80 percent
393.27of the additional revenue to increase compensation-related costs for employees directly
393.28employed by the facility on or after July 1, 2014, except:
393.29(1) persons employed in the central office of a corporation or entity that has an
393.30ownership interest in the facility or exercises control over the facility; and
393.31(2) persons paid by the facility under a management contract.
393.32(d) Compensation-related costs include:
393.33(1) wages and salaries;
393.34(2) the employer's share of FICA taxes, Medicare taxes, state and federal
393.35unemployment taxes, workers' compensation, and mileage reimbursement;
394.1(3) the employer's share of health and dental insurance, life insurance, disability
394.2insurance, long-term care insurance, uniform allowance, pensions, and contributions to
394.3employee retirement accounts; and
394.4(4) other benefits provided and workforce needs, including the recruiting and
394.5training of employees as specified in the distribution plan required under paragraph (f).
394.6(e) For public employees under a collective bargaining agreement, the increase for
394.7wages and benefits is available and pay rates must be increased only to the extent that the
394.8increases comply with laws governing public employees' collective bargaining. Money
394.9received by a facility under paragraph (c) for pay increases for public employees must be
394.10used only for pay increases implemented between July 1, 2014, and August 1, 2014.
394.11(f) For a facility that has employees that are represented by an exclusive bargaining
394.12representative, the provider shall obtain a letter of acceptance of the distribution plan
394.13required under paragraph (g), in regard to the members of the bargaining unit, signed by
394.14the exclusive bargaining agent. Upon receipt of the letter of acceptance, the facility shall
394.15be deemed to have met all the requirements of this subdivision in regard to the members
394.16of the bargaining unit. Upon request, the facility shall produce the letter of acceptance for
394.17the commissioner.
394.18(g) A facility that receives a rate adjustment under paragraph (a) that is subject to
394.19paragraph (c) shall prepare, and upon request submit to the commissioner, a distribution
394.20plan that specifies the amount of money the facility expects to receive that is subject to the
394.21requirements of paragraph (c), including how that money will be distributed to increase
394.22compensation for employees.
394.23(h) Using forms prescribed by the commissioner, facilities must submit to the
394.24commissioner verification that they have complied with paragraph (c).
394.25(i) By January 1, 2015, the facility shall post the distribution plan required under
394.26paragraph (g) for a period of at least six weeks in an area of the facility's operation to
394.27which all eligible employees have access and shall provide instructions for employees
394.28who do not believe they have received the wage and other compensation-related increases
394.29specified in the distribution plan. The instructions must include a mailing address, e-mail
394.30address, and telephone number that an employee may use to contact the commissioner or
394.31the commissioner's representative.

394.32    Sec. 73. Laws 2012, chapter 247, article 4, section 47, is amended to read:
394.33    Sec. 47. COMMISSIONER TO SEEK AMENDMENT FOR EXCEPTION
394.34TO CONSUMER-DIRECTED COMMUNITY SUPPORTS BUDGET
394.35METHODOLOGY.
395.1By July 1, 2012 2014, if necessary, the commissioner shall request an amendment to
395.2the home and community-based services waivers authorized under Minnesota Statutes,
395.3sections 256B.092 and 256B.49, to establish an exception to the consumer-directed
395.4community supports budget methodology to provide up to 20 percent more funds for those
395.5participants who have their 21st birthday and graduate from high school during between
395.6 2013 to 2015 and are authorized for more services under consumer-directed community
395.7supports prior to graduation than what the amount they are eligible to receive under the
395.8current consumer-directed community supports budget methodology. The exception is
395.9limited to those who can demonstrate that they will have to leave consumer-directed
395.10community supports and use other waiver services because their need for day or
395.11employment supports cannot be met within the consumer-directed community supports
395.12budget limits. The commissioner shall consult with the stakeholder group authorized
395.13under Minnesota Statutes, section 256B.0657, subdivision 11, to implement this provision.
395.14The exception process shall be effective upon federal approval for persons eligible during
395.152013 and 2014 through June 30, 2017.

395.16    Sec. 74. HOME AND COMMUNITY-BASED SETTINGS TRANSITION PLAN.
395.17The commissioner of human services shall develop a transition plan to comply
395.18with the Centers for Medicare and Medicaid Services final rule defining home and
395.19community-based settings published on January 16, 2014, Code of Federal Regulations,
395.20title 42, section 441.301(c)(4)-(5). In developing the plan, the commissioner shall consult
395.21with individuals with disabilities, seniors, and other stakeholders, including, but not
395.22limited to advocates, providers, lead agencies, other state agencies, and the Olmstead
395.23subcabinet. The commissioner shall submit the plan to the Centers for Medicare and
395.24Medicaid Services by December 31, 2014.
395.25By January 15, 2015, the commissioner shall provide a report with the plan
395.26submitted to the Centers for Medicare and Medicaid Services, as well as any changes as
395.27a result of negotiations that have occurred with the Centers for Medicare and Medicaid
395.28Services, to the chairs and ranking minority members of the house of representatives and
395.29senate policy and finance committees with jurisdiction over health and human services.
395.30This report must contain any recommended legislation and funding requests necessary
395.31to implement the transition plan.

395.32    Sec. 75. MEDICAL ASSISTANCE SPENDDOWN REQUIREMENTS.
395.33The commissioner of human services, in consultation with interested stakeholders,
395.34shall review medical assistance spenddown requirements and processes, including those
396.1used in other states, for individuals with disabilities and seniors age 65 years of age or
396.2older. Based on this review, the commissioner shall recommend alternative medical
396.3assistance spenddown payment requirements and processes that:
396.4(1) are practical for current and potential medical assistance recipients, providers,
396.5and the Department of Human Services;
396.6(2) improves the medical assistance payment process for providers; and
396.7(3) allows current and potential medical assistance recipients to obtain consistent
396.8and affordable medical coverage.
396.9The commissioner shall report these recommendations, along with the projected cost,
396.10to the chairs and ranking minority members of the legislative committees and divisions
396.11with jurisdiction over health and human services policy and finance by February 15, 2015.

396.12    Sec. 76. PROVIDER RATE AND GRANT INCREASES EFFECTIVE JULY
396.131, 2014.
396.14(a) The commissioner of human services shall increase reimbursement rates, grants,
396.15allocations, individual limits, and rate limits, as applicable, by five percent for the rate
396.16period beginning July 1, 2014, for services rendered on or after July 1, 2014. County or
396.17tribal contracts for services, grants, and programs under paragraph (b) must be amended to
396.18pass through these rate increases by September 1, 2014.
396.19(b) The rate changes described in this section must be provided to:
396.20(1) home and community-based waivered services for persons with developmental
396.21disabilities, including consumer-directed community supports, under Minnesota Statutes,
396.22section 256B.501;
396.23(2) waivered services under community alternatives for disabled individuals,
396.24including consumer-directed community supports, under Minnesota Statutes, section
396.25256B.49;
396.26(3) community alternative care waivered services, including consumer-directed
396.27community supports, under Minnesota Statutes, section 256B.49;
396.28(4) brain injury waivered services, including consumer-directed community
396.29supports, under Minnesota Statutes, section 256B.49;
396.30(5) home and community-based waivered services for the elderly under Minnesota
396.31Statutes, section 256B.0915;
396.32(6) nursing services and home health services under Minnesota Statutes, section
396.33256B.0625, subdivision 6a;
396.34(7) personal care services and qualified professional supervision of personal care
396.35services under Minnesota Statutes, section 256B.0625, subdivisions 6a and 19a;
397.1(8) private duty nursing services under Minnesota Statutes, section 256B.0625,
397.2subdivision 7;
397.3(9) day training and habilitation services for adults with developmental disabilities
397.4under Minnesota Statutes, sections 252.41 to 252.46, including the additional cost to
397.5counties of the rate adjustments on day training and habilitation services, provided as a
397.6social service;
397.7(10) alternative care services under Minnesota Statutes, section 256B.0913;
397.8(11) living skills training programs for persons with intractable epilepsy who need
397.9assistance in the transition to independent living under Laws 1988, chapter 689;
397.10(12) semi-independent living services (SILS) under Minnesota Statutes, section
397.11252.275, including SILS funding under county social services grants formerly funded
397.12under Minnesota Statutes, chapter 256M;
397.13(13) consumer support grants under Minnesota Statutes, section 256.476;
397.14(14) family support grants under Minnesota Statutes, section 252.32;
397.15(15) housing access grants under Minnesota Statutes, section 256B.0658;
397.16(16) self-advocacy grants under Laws 2009, chapter 101; and
397.17(17) technology grants under Laws 2009, chapter 79.
397.18(c) For individual service rates determined under Minnesota Statutes, section
397.19256B.4914, the commissioner shall adjust the calculations in subdivisions 6, 7, 8, and
397.209, after any adjustments under Minnesota Statutes, section 256B.4914, subdivision 16,
397.21to reflect a five percent increase.
397.22(d) The commissioner shall increase the banding values for all service recipients as
397.23defined in Minnesota Statutes, section 256B.4913, subdivision 4a, paragraph (b), by five
397.24percent, effective July 1, 2014.
397.25(e) A managed care plan or county-based purchasing plan receiving state payments
397.26for the services grants and programs in paragraph (b) must include these increases in their
397.27payments to providers. To implement the rate increase in paragraph (a), capitation rates
397.28paid by the commissioner to managed care plans and county-based purchasing plans under
397.29Minnesota Statutes, section 256B.69, shall reflect a five percent increase for the services
397.30and programs specified in paragraph (b) for the period beginning July 1, 2014.
397.31(f) Counties shall increase the budget for each recipient of consumer-directed
397.32community supports by the amount in paragraph (a) on July 1, 2014.
397.33(g) Providers that receive a rate increase under paragraph (a) shall use 80 percent
397.34of the additional revenue to increase compensation-related costs for employees directly
397.35employed by the program on or after July 1, 2014, except:
398.1(1) persons employed in the central office of a corporation or entity that has an
398.2ownership interest in the provider or exercises control over the provider; and
398.3(2) persons paid by the provider under a management contract.
398.4(h) Compensation-related costs include:
398.5(1) wages and salaries;
398.6(2) the employer's share of FICA taxes, Medicare taxes, state and federal
398.7unemployment taxes, workers' compensation, and mileage reimbursement;
398.8(3) the employer's share of health and dental insurance, life insurance, disability
398.9insurance, long-term care insurance, uniform allowance, pensions, and contributions to
398.10employee retirement accounts; and
398.11(4) other benefits provided and workforce needs, including the recruiting and
398.12training of employees as specified in the distribution plan required under paragraph (l).
398.13(i) For public employees under a collective bargaining agreement, the increase for
398.14wages and benefits is available and pay rates must be increased only to the extent that the
398.15increases comply with laws governing public employees' collective bargaining. Money
398.16received by a provider for pay increases for public employees under paragraph (g) must be
398.17used only for pay increases implemented between July 1, 2014, and August 1, 2014.
398.18(j) For a provider that has employees that are represented by an exclusive bargaining
398.19representative, the provider shall obtain a letter of acceptance of the distribution plan
398.20required under paragraph (m), in regard to the members of the bargaining unit, signed by
398.21the exclusive bargaining agent. Upon receipt of the letter of acceptance, the provider shall
398.22be deemed to have met all the requirements of this section in regard to the members of
398.23the bargaining unit. Upon request, the provider shall produce the letter of acceptance for
398.24the commissioner.
398.25(k) The commissioner shall amend state grant contracts that include direct
398.26personnel-related grant expenditures to include the allocation for the portion of the
398.27contract related to employee compensation. Grant contracts for compensation-related
398.28services must be amended to pass through these adjustments by September 1, 2014, and
398.29must be retroactive to July 1, 2014.
398.30(l) The Board on Aging and its area agencies on aging shall amend their grants that
398.31include direct personnel-related grant expenditures to include the rate adjustment for the
398.32portion of the grant related to employee compensation. Grants for compensation-related
398.33services must be amended to pass through these adjustments by September 1, 2014, and
398.34must be retroactive to July 1, 2014.
398.35(m) A provider that receives a rate adjustment under paragraph (a) that is subject to
398.36paragraph (g) shall prepare, and upon request submit to the commissioner, a distribution
399.1plan that specifies the amount of money the provider expects to receive that is subject
399.2to the requirements of paragraph (g), including how that money will be distributed to
399.3increase compensation for employees.
399.4(n) Using forms prescribed by the commissioner, providers must submit to the
399.5commissioner verification that they have complied with paragraph (g).
399.6(o) By January 1, 2015, the provider shall post the distribution plan required under
399.7paragraph (l) for a period of at least six weeks in an area of the provider's operation to
399.8which all eligible employees have access and shall provide instructions for employees
399.9who do not believe they have received the wage and other compensation-related increases
399.10specified in the distribution plan. The instructions must include a mailing address, e-mail
399.11address, and telephone number that the employee may use to contact the commissioner or
399.12the commissioner's representative.
399.13(p) For providers with rates established under Minnesota Statutes, section
399.14256B.4914, and with a banding value established under Minnesota Statutes, section
399.15256B.4913, subdivision 4a, paragraph (b), that is greater than the rate established under
399.16Minnesota Statutes, section 256B.4914, the requirements in paragraph (g) must only apply
399.17to the portion of the rate increase that exceeds the difference between the rate established
399.18under Minnesota Statutes, section 256B.4914, and the banding value established under
399.19Minnesota Statutes, section 256B.4913, subdivision 4a, paragraph (b).

399.20    Sec. 77. NURSING FACILITY RATE ADJUSTMENT.
399.21    Subdivision 1. Application for rate adjustment. (a) To receive a rate adjustment,
399.22nursing facilities must submit an application to the commissioner in a form and manner
399.23determined by the commissioner. The application shall include data for a period beginning
399.24with the first pay period after January 1, 2014, and including at least three months of
399.25employee compensated hours by wage rate, and a spending plan that describes how the
399.26funds from the rate adjustment will be allocated for compensation to employees paid
399.27less than $14 per hour. The application must be submitted by December 31, 2014. The
399.28commissioner may request any additional information needed to determine the rate
399.29adjustment within three weeks of receiving a complete application. The nursing facility
399.30must provide any additional information requested by the commissioner by March 31,
399.312015. The commissioner may waive the deadlines in this subdivision under extraordinary
399.32circumstances.
399.33(b) For nursing facilities in which employees are represented by an exclusive
399.34bargaining representative, the commissioner shall approve the application submitted under
399.35this subdivision only upon receipt of a letter of acceptance of the spending plan in regard
400.1to members of the bargaining unit, signed by the exclusive bargaining agent and dated
400.2after May 31, 2014. Upon receipt of the letter of acceptance, the commissioner shall
400.3deem all requirements of this subdivision as having been met in regard to the members of
400.4the bargaining unit.
400.5    Subd. 2. Rate adjustment calculation. Based on the application in subdivision
400.61, the commissioner shall calculate the annualized compensation costs by adding the
400.7totals of clauses (1), (2), and (3). The result must be divided by the resident days from
400.8the most recently available cost report to determine a per diem amount, which must be
400.9included in the external fixed cost portion of the total payment rate under Minnesota
400.10Statutes, section 256B.441, subdivision 53:
400.11(1) the sum of the difference between $9.50 and any hourly wage rate of less than
400.12$9.50, multiplied by the number of compensated hours at that wage rate;
400.13(2) the sum of items (i) to (viii):
400.14(i) for all compensated hours from $8 to $8.49 per hour, the number of compensated
400.15hours is multiplied by $0.13;
400.16(ii) for all compensated hours from $8.50 to $8.99 per hour, the number of
400.17compensated hours is multiplied by $0.25;
400.18(iii) for all compensated hours from $9 to $9.49 per hour, the number of compensated
400.19hours is multiplied by $0.38;
400.20(iv) for all compensated hours from $9.50 to $10.49 per hour, the number of
400.21compensated hours is multiplied by $0.50;
400.22(v) for all compensated hours from $10.50 to $10.99 per hour, the number of
400.23compensated hours is multiplied by $0.40;
400.24(vi) for all compensated hours from $11 to $11.49 per hour, the number of
400.25compensated hours is multiplied by $0.30;
400.26(vii) for all compensated hours from $11.50 to $11.99 per hour, the number of
400.27compensated hours is multiplied by $0.20; and
400.28(viii) for all compensated hours from $12 to $13.00 per hour, the number of
400.29compensated hours is multiplied by $0.10; and
400.30(3) the sum of the employer's share of FICA taxes, Medicare taxes, state and federal
400.31unemployment taxes, workers' compensation, pensions, and contributions to employee
400.32retirement accounts attributable to the amounts in clauses (1) and (2).
400.33    Subd. 3. Rate adjustment. For the rate year beginning October 1, 2014, nursing
400.34facilities that receive approval of the application in subdivision 1 must receive a rate
400.35adjustment according to subdivision 2. The rate adjustment must be used to pay
401.1compensation costs for nursing facility employees paid less than $14 per hour. The rate
401.2adjustment must continue to be included in the total payment rate in subsequent years.

401.3    Sec. 78. DISABILITY WAIVER REIMBURSEMENT RATE ADJUSTMENTS.
401.4    Subdivision 1. Historical rate. The commissioner of human services shall adjust
401.5the historical rates calculated in Minnesota Statutes, section 256B.4913, subdivision 4a,
401.6paragraph (b), in effect during the banding period under Minnesota Statutes, section
401.7256B.4913, subdivision 4a, paragraph (a), for the reimbursement rate increases effective
401.8April 1, 2014, and any rate modification enacted during the 2014 legislative session.
401.9    Subd. 2. Residential support services. The commissioner of human services
401.10shall adjust the rates calculated in Minnesota Statutes, section 256B.4914, subdivision 6,
401.11paragraphs (b), clause (4), and (c), for the reimbursement rate increases effective April 1,
401.122014, and any rate modification enacted during the 2014 legislative session.
401.13    Subd. 3. Day programs. The commissioner of human services shall adjust the rates
401.14calculated in Minnesota Statutes, section 256B.4914, subdivision 7, paragraph (a), clauses
401.15(15) to (17), for the reimbursement rate increases effective April 1, 2014, and any rate
401.16modification enacted during the 2014 legislative session.
401.17    Subd. 4. Unit-based services with programming. The commissioner of human
401.18services shall adjust the rate calculated in Minnesota Statutes, section 256B.4914,
401.19subdivision 8, paragraph (a), clause (14), for the reimbursement rate increases effective
401.20April 1, 2014, and any rate modification enacted during the 2014 legislative session.
401.21    Subd. 5. Unit-based services without programming. The commissioner of
401.22human services shall adjust the rate calculated in Minnesota Statutes, section 256B.4914,
401.23subdivision 9, paragraph (a), clause (23), for the reimbursement rate increases effective
401.24April 1, 2014, and any rate modification enacted during the 2014 legislative session.

401.25    Sec. 79. WAIVER APPLICATIONS FOR NONEMERGENCY MEDICAL
401.26TRANSPORTATION SERVICE PROVIDERS.
401.27    Subdivision 1. Definitions. For purposes of this section, the following definitions
401.28apply:
401.29(1) "new provider" is a nonemergency medical transportation service provider that
401.30was not required to comply with special transportation service operating standards before
401.31the effective date of this act; and
401.32(2) "commissioner" is the commissioner of human services.
401.33    Subd. 2. Application for and terms of variance. A new provider may apply to the
401.34commissioner, on a form supplied by the commissioner for this purpose, for a variance
402.1from special transportation service operating standards. The commissioner may grant or
402.2deny the variance application. Variances expire on the earlier of, February 1, 2016, or the
402.3date that the commissioner of transportation begins certifying new providers under the
402.4terms of this act and successor legislation.
402.5    Subd. 3. Information concerning variances. The commissioner shall periodically
402.6transmit to the Department of Transportation the number of variance applications received
402.7and the number granted.
402.8    Subd. 4. Report by commissioner of transportation. On or before February
402.91, 2015, the commissioner of transportation shall report to the chairs and ranking
402.10minority members of the senate and house of representatives committees and divisions
402.11with jurisdiction over transportation and human services concerning implementing the
402.12nonemergency medical transportation services provisions. The report must contain
402.13recommendations of the commissioner of transportation concerning statutes, session
402.14laws, and rules that must be amended, repealed, enacted, or adopted to implement the
402.15nonemergency medical transportation services provisions. The recommendations must
402.16include, without limitation, the amount of the fee that would be required to cover the costs
402.17of Department of Transportation supervision of inspection and certification, as well as
402.18any needed statutory rulemaking or other authority to be granted to the commissioner of
402.19transportation.

402.20    Sec. 80. REVISOR'S INSTRUCTION.
402.21(a) In each section of Minnesota Statutes or part of Minnesota Rules referred to
402.22in column A, the revisor of statutes shall delete the word or phrase in column B and
402.23insert the phrase in column C. The revisor shall also make related grammatical changes
402.24and changes in headnotes.

402.25	Column A	Column B	Column C
402.26 402.27	section 158.13	defective persons	persons with developmental disabilities
402.28 402.29	section 158.14	defective persons	persons with developmental disabilities
402.30 402.31	section 158.17	defective persons	persons with developmental disabilities
402.32 402.33	section 158.18	persons not defective	persons without developmental disabilities
402.34 402.35		defective person	person with developmental disabilities
402.36 402.37		defective persons	persons with developmental disabilities
402.38 402.39	section 158.19	defective	person with developmental disabilities
403.1 403.2	section 256.94	defective	children with developmental disabilities and
403.3 403.4	section 257.175	defective	children with developmental disabilities and
403.5	part 2911.1350	retardation	developmental disability

403.6(b) The revisor of statutes shall change the term "health and safety" to "health and
403.7welfare" in the following statutes: Minnesota Statutes, sections 245D.03, 245D.061,
403.8245D.071, 245D.10, 245D.11, 245D.31, 256B.0915, and 256B.092.

403.9    Sec. 81. REPEALER.
403.10Minnesota Statutes 2013 Supplement, section 256B.0625, subdivision 18f, is
403.11repealed.

403.12ARTICLE 19

403.13HEALTH CARE

403.14    Section 1. Minnesota Statutes 2012, section 256.01, is amended by adding a
403.15subdivision to read:
403.16    Subd. 38. Contract to match recipient third-party liability information. The
403.17commissioner may enter into a contract with a national organization to match recipient
403.18third-party liability information and provide coverage and insurance primacy information
403.19to the department at no charge to providers and the clearinghouses.

403.20    Sec. 2. Minnesota Statutes 2012, section 256.9685, subdivision 1, is amended to read:
403.21    Subdivision 1. Authority. (a) The commissioner shall establish procedures for
403.22determining medical assistance and general assistance medical care payment rates under
403.23a prospective payment system for inpatient hospital services in hospitals that qualify as
403.24vendors of medical assistance. The commissioner shall establish, by rule, procedures for
403.25implementing this section and sections 256.9686, 256.969, and 256.9695. Services must
403.26meet the requirements of section 256B.04, subdivision 15, or 256D.03, subdivision 7,
403.27paragraph (b), to be eligible for payment.
403.28(b) The commissioner may reduce the types of inpatient hospital admissions that
403.29are required to be certified as medically necessary after notice in the State Register and a
403.3030-day comment period.

403.31    Sec. 3. Minnesota Statutes 2012, section 256.9685, subdivision 1a, is amended to read:
404.1    Subd. 1a. Administrative reconsideration. Notwithstanding sections section
404.2 256B.04, subdivision 15, and 256D.03, subdivision 7, the commissioner shall establish
404.3an administrative reconsideration process for appeals of inpatient hospital services
404.4determined to be medically unnecessary. A physician or hospital may request a
404.5reconsideration of the decision that inpatient hospital services are not medically necessary
404.6by submitting a written request for review to the commissioner within 30 days after
404.7receiving notice of the decision. The reconsideration process shall take place prior to the
404.8procedures of subdivision 1b and shall be conducted by physicians that are independent
404.9of the case under reconsideration. A majority decision by the physicians is necessary to
404.10make a determination that the services were not medically necessary.

404.11    Sec. 4. Minnesota Statutes 2012, section 256.9686, subdivision 2, is amended to read:
404.12    Subd. 2. Base year. "Base year" means a hospital's fiscal year or years that
404.13is recognized by the Medicare program or a hospital's fiscal year specified by the
404.14commissioner if a hospital is not required to file information by the Medicare program
404.15from which cost and statistical data are used to establish medical assistance and general
404.16assistance medical care payment rates.

404.17    Sec. 5. Minnesota Statutes 2012, section 256.969, subdivision 1, is amended to read:
404.18    Subdivision 1. Hospital cost index. (a) The hospital cost index shall be the change
404.19in the Consumer Price Index-All Items (United States city average) (CPI-U) forecasted
404.20by Data Resources, Inc. The commissioner shall use the indices as forecasted in the
404.21third quarter of the calendar year prior to the rate year. The hospital cost index may be
404.22used to adjust the base year operating payment rate through the rate year on an annually
404.23compounded basis.
404.24(b) For fiscal years beginning on or after July 1, 1993, the commissioner of human
404.25services shall not provide automatic annual inflation adjustments for hospital payment
404.26rates under medical assistance, nor under general assistance medical care, except that
404.27the inflation adjustments under paragraph (a) for medical assistance, excluding general
404.28assistance medical care, shall apply through calendar year 2001. The index for calendar
404.29year 2000 shall be reduced 2.5 percentage points to recover overprojections of the index
404.30from 1994 to 1996. The commissioner of management and budget shall include as a
404.31budget change request in each biennial detailed expenditure budget submitted to the
404.32legislature under section 16A.11 annual adjustments in hospital payment rates under
404.33medical assistance and general assistance medical care, based upon the hospital cost index.

405.1    Sec. 6. Minnesota Statutes 2012, section 256.969, subdivision 2, is amended to read:
405.2    Subd. 2. Diagnostic categories. The commissioner shall use to the extent possible
405.3existing diagnostic classification systems, including such as the system used by the
405.4Medicare program all patient-refined diagnosis-related groups (APR-DRGs) or other
405.5similar classification programs to determine the relative values of inpatient services
405.6and case mix indices. The commissioner may combine diagnostic classifications into
405.7diagnostic categories and may establish separate categories and numbers of categories
405.8based on program eligibility or hospital peer group. Relative values shall be recalculated
405.9 recalibrated when the base year is changed. Relative value determinations shall include
405.10paid claims for admissions during each hospital's base year. The commissioner may
405.11extend the time period forward to obtain sufficiently valid information to establish relative
405.12values supplement the diagnostic classification systems data with national averages.
405.13Relative value determinations shall not include property cost data, Medicare crossover
405.14data, and data on admissions that are paid a per day transfer rate under subdivision 14. The
405.15computation of the base year cost per admission must include identified outlier cases and
405.16their weighted costs up to the point that they become outlier cases, but must exclude costs
405.17recognized in outlier payments beyond that point. The commissioner may recategorize the
405.18diagnostic classifications and recalculate recalibrate relative values and case mix indices
405.19to reflect actual hospital practices, the specific character of specialty hospitals, or to reduce
405.20variances within the diagnostic categories after notice in the State Register and a 30-day
405.21comment period. The commissioner shall recategorize the diagnostic classifications and
405.22recalculate relative values and case mix indices based on the two-year schedule in effect
405.23prior to January 1, 2013, reflected in subdivision 2b. The first recategorization shall occur
405.24January 1, 2013, and shall occur every two years after. When rates are not rebased under
405.25subdivision 2b, the commissioner may establish relative values and case mix indices based
405.26on charge data and may update the base year to the most recent data available.

405.27    Sec. 7. Minnesota Statutes 2012, section 256.969, subdivision 2b, is amended to read:
405.28    Subd. 2b. Operating Hospital payment rates. In determining operating payment
405.29rates for admissions occurring on or after the rate year beginning January 1, 1991,
405.30and every two years after, or more frequently as determined by the commissioner,
405.31the commissioner shall obtain operating data from an updated base year and establish
405.32operating payment rates per admission for each hospital based on the cost-finding methods
405.33and allowable costs of the Medicare program in effect during the base year. Rates under
405.34the general assistance medical care, medical assistance, and MinnesotaCare programs
405.35shall not be rebased to more current data on January 1, 1997, January 1, 2005, for the first
406.124 months of the rebased period beginning January 1, 2009 (a) For discharges occurring
406.2on and after October 1, 2014, hospital inpatient services for hospitals located in Minnesota
406.3shall be paid according to the following:
406.4(1) critical access hospitals as defined by Medicare shall be paid using a cost-based
406.5methodology;
406.6(2) long-term care hospitals as defined by Medicare shall be paid on a per diem
406.7methodology under subdivision 25;
406.8(3) rehabilitation hospitals or units of hospitals that are recognized as rehabilitation
406.9distinct parts as defined by Medicare shall be paid according to the methodology under
406.10subdivision 12; and
406.11(4) all other hospitals shall be paid on a diagnostic-related group (DRG) methodology.
406.12     (b) For the rebased period beginning January 1, 2011, to September 30, 2014, rates
406.13shall not be rebased, except that a Minnesota long-term hospital shall be rebased effective
406.14January 1, 2011, based on its most recent Medicare cost report ending on or before
406.15September 1, 2008, with the provisions under subdivisions 9 and 23, based on the rates
406.16in effect on December 31, 2010. For subsequent rate setting periods after October 1,
406.172014, in which the base years are updated, a Minnesota long-term hospital's base year
406.18shall remain within the same period as other hospitals. Effective January 1, 2013, and
406.19after, rates shall not be rebased.
406.20(c) Effective for discharges occurring on and after October 1, 2014, payment rates
406.21for hospital inpatient services provided by hospitals located in Minnesota or the local trade
406.22area, except for the hospitals paid under the methodologies described in paragraph (a),
406.23clauses (2) and (3), shall be rebased, incorporating cost and payment methodologies in
406.24a manner similar to Medicare. The base year for the rates effective October 1, 2014,
406.25shall be state fiscal year 2012. The rebasing must be budget neutral, ensuring that
406.26the total aggregate payments under the rebased system are equal to the total aggregate
406.27payments made for the same number and types of services in the base year. Separate
406.28budget neutrality calculations must be determined for payments made to critical access
406.29hospitals and payments made to hospitals paid under the DRG system. Any rate increases
406.30or decreases under subdivision 3a that applied to the hospitals being rebased during the
406.31base period must be incorporated into the budget neutrality calculation. Any rate increases
406.32or decreases that did not apply to the base period shall not be considered in the budget
406.33neutrality calculation. The estimated expenditures in fiscal years 2015, 2016, and 2017,
406.34after the rebasing is complete, must equal the estimated expenditures for inpatient hospital
406.35services in the February 2014 forecast.
407.1(d) For discharges occurring October 1, 2014, through and including June 30, 2016,
407.2the rebased rates must include necessary adjustments to the projected rates that result in
407.3no greater than a five percent increase or decrease from the base year payments for any
407.4hospital. In addition to these adjustments, the commissioner may make adjustments to
407.5rates and must consider the impact of changes on at least the following when evaluating
407.6whether additional adjustments should be made:
407.7(1) pediatric services;
407.8(2) behavioral health services;
407.9(3) trauma services as defined by the National Uniform Billing Committee;
407.10(4) transplant services;
407.11(5) obstetric services, newborn services, and behavioral health services provided
407.12by hospitals outside the seven-county metropolitan area;
407.13(6) outlier admissions;
407.14(7) low-volume providers; and
407.15(8) services provided by small rural hospitals that are not critical access hospitals.
407.16(e) Hospital payment rates established under paragraph (c) must incorporate the
407.17following:
407.18    (1) for hospitals paid under the DRG methodology, the base year operating payment
407.19rate per admission is standardized by the case mix index and adjusted by the hospital cost
407.20index, relative values, and disproportionate population adjustment. applicable Medicare
407.21wage index and adjusted by the hospital's disproportionate population adjustment;
407.22    (2) for critical access hospitals, interim per diem payment rate must be based on
407.23the ratio of cost and charges reported on the base year Medicare cost report or reports
407.24and applied to medical assistance utilization data. Final settlement payments for a state
407.25fiscal year must be determined based on a review of the Medicaid cost report for the
407.26applicable state fiscal year;
407.27    (3) the cost and charge data used to establish operating hospital payment rates shall
407.28 must only reflect inpatient services covered by medical assistance and shall not include
407.29property cost information and costs recognized in outlier payments; and
407.30    (4) in determining hospital payment rates for discharges occurring on or after the
407.31rate year beginning January 1, 2011, to December 31, 2012, the hospital payment rate per
407.32discharge must be based on the cost-finding methods and allowable costs of the Medicare
407.33program in effect during the base year or years.

407.34    Sec. 8. Minnesota Statutes 2012, section 256.969, is amended by adding a subdivision
407.35to read:
408.1    Subd. 2d. Budget neutrality factor. For the rebased period effective October 1,
408.22014, when rebasing rates under subdivision 2b, paragraph (c), the commissioner shall
408.3apply a budget neutrality factor (BNF), if applicable, to all hospitals' rebased rates to
408.4ensure that total DRG and critical access hospital payments to hospitals do not exceed
408.5total DRG and critical access hospital payments that would have been made to hospitals
408.6for the same number and types of services if the relative rates and weights had not been
408.7recalibrated and cost-based payments for critical access hospitals had not been established.
408.8For the purposes of this subdivision, BNF equals the percentage change from total
408.9aggregate payments calculated under a new payment system to total aggregate payments
408.10calculated under the old system for the same number and types of services.

408.11    Sec. 9. Minnesota Statutes 2012, section 256.969, is amended by adding a subdivision
408.12to read:
408.13    Subd. 2e. Interim payments. Notwithstanding subdivision 2b, for discharges
408.14occurring on or after October 1, 2014, and no later than June 30, 2015, the commissioner
408.15may implement an interim payment process to pay hospitals, including payments based on
408.16each hospital's average payments per claim for state fiscal years 2011 and 2012. These
408.17interim payments may be used to pay hospitals if the new payment system and rebasing
408.18under subdivision 2b is not complete by October 1, 2014. Claims paid at interim payment
408.19rates shall be reprocessed and paid at the rates established under the new system upon
408.20implementation of the new system.

408.21    Sec. 10. Minnesota Statutes 2012, section 256.969, is amended by adding a subdivision
408.22to read:
408.23    Subd. 2f. Report required. (a) The commissioner shall report to the legislature by
408.24March 1, 2015, and by March 1, 2016, on the financial impacts by hospital and policy
408.25ramifications, if any, resulting from payment methodology changes implemented after
408.26September 30, 2014, and before December 15, 2015.
408.27(b) The commissioner shall report, at a minimum, the following information:
408.28(1) case-mix adjusted calculations of net payment impacts for each hospital resulting
408.29from the difference between the payments each hospital would have received under the
408.30payment methodology for discharges before September 30, 2014, and the payments each
408.31hospital has or is expected to receive for the same number and types of services under the
408.32payment methodology implemented effective October 1, 2014;
408.33(2) any adjustments that the commissioner madeand the impacts of those adjustments
408.34for each hospital; and
409.1(3) recommendations for further refinement or improvement of the hospital inpatient
409.2payment system or methodologies.

409.3    Sec. 11. Minnesota Statutes 2012, section 256.969, subdivision 3a, is amended to read:
409.4    Subd. 3a. Payments. (a) Acute care hospital billings under the medical
409.5assistance program must not be submitted until the recipient is discharged. However,
409.6the commissioner shall establish monthly interim payments for inpatient hospitals that
409.7have individual patient lengths of stay over 30 days regardless of diagnostic category.
409.8Except as provided in section 256.9693, medical assistance reimbursement for treatment
409.9of mental illness shall be reimbursed based on diagnostic classifications. Individual
409.10hospital payments established under this section and sections 256.9685, 256.9686, and
409.11256.9695 , in addition to third-party and recipient liability, for discharges occurring during
409.12the rate year shall not exceed, in aggregate, the charges for the medical assistance covered
409.13inpatient services paid for the same period of time to the hospital. This payment limitation
409.14shall be calculated separately for medical assistance and general assistance medical
409.15care services. The limitation on general assistance medical care shall be effective for
409.16admissions occurring on or after July 1, 1991. Services that have rates established under
409.17subdivision 11 or 12, must be limited separately from other services. After consulting with
409.18the affected hospitals, the commissioner may consider related hospitals one entity and may
409.19merge the payment rates while maintaining separate provider numbers. The operating and
409.20property base rates per admission or per day shall be derived from the best Medicare and
409.21claims data available when rates are established. The commissioner shall determine the
409.22best Medicare and claims data, taking into consideration variables of recency of the data,
409.23audit disposition, settlement status, and the ability to set rates in a timely manner. The
409.24commissioner shall notify hospitals of payment rates by December 1 of the year preceding
409.25the rate year 30 days prior to implementation. The rate setting data must reflect the
409.26admissions data used to establish relative values. Base year changes from 1981 to the base
409.27year established for the rate year beginning January 1, 1991, and for subsequent rate years,
409.28shall not be limited to the limits ending June 30, 1987, on the maximum rate of increase
409.29under subdivision 1. The commissioner may adjust base year cost, relative value, and case
409.30mix index data to exclude the costs of services that have been discontinued by the October
409.311 of the year preceding the rate year or that are paid separately from inpatient services.
409.32Inpatient stays that encompass portions of two or more rate years shall have payments
409.33established based on payment rates in effect at the time of admission unless the date of
409.34admission preceded the rate year in effect by six months or more. In this case, operating
410.1payment rates for services rendered during the rate year in effect and established based on
410.2the date of admission shall be adjusted to the rate year in effect by the hospital cost index.
410.3    (b) For fee-for-service admissions occurring on or after July 1, 2002, the total
410.4payment, before third-party liability and spenddown, made to hospitals for inpatient
410.5services is reduced by .5 percent from the current statutory rates.
410.6    (c) In addition to the reduction in paragraph (b), the total payment for fee-for-service
410.7admissions occurring on or after July 1, 2003, made to hospitals for inpatient services before
410.8third-party liability and spenddown, is reduced five percent from the current statutory
410.9rates. Mental health services within diagnosis related groups 424 to 432 or corresponding
410.10APR-DRGs, and facilities defined under subdivision 16 are excluded from this paragraph.
410.11    (d) In addition to the reduction in paragraphs (b) and (c), the total payment for
410.12fee-for-service admissions occurring on or after August 1, 2005, made to hospitals for
410.13inpatient services before third-party liability and spenddown, is reduced 6.0 percent from
410.14the current statutory rates. Mental health services within diagnosis related groups 424
410.15to 432 or corresponding APR-DRGs, and facilities defined under subdivision 16 are
410.16excluded from this paragraph. Notwithstanding section 256.9686, subdivision 7, for
410.17purposes of this paragraph, medical assistance does not include general assistance medical
410.18care. Payments made to managed care plans shall be reduced for services provided on or
410.19after January 1, 2006, to reflect this reduction.
410.20    (e) In addition to the reductions in paragraphs (b), (c), and (d), the total payment for
410.21fee-for-service admissions occurring on or after July 1, 2008, through June 30, 2009, made
410.22to hospitals for inpatient services before third-party liability and spenddown, is reduced
410.233.46 percent from the current statutory rates. Mental health services with diagnosis
410.24related groups 424 to 432 or corresponding APR-DRGs, and facilities defined under
410.25subdivision 16 are excluded from this paragraph. Payments made to managed care plans
410.26shall be reduced for services provided on or after January 1, 2009, through June 30, 2009,
410.27to reflect this reduction.
410.28    (f) In addition to the reductions in paragraphs (b), (c), and (d), the total payment
410.29for fee-for-service admissions occurring on or after July 1, 2009, through June 30, 2011,
410.30made to hospitals for inpatient services before third-party liability and spenddown, is
410.31reduced 1.9 percent from the current statutory rates. Mental health services with diagnosis
410.32related groups 424 to 432 or corresponding APR-DRGs, and facilities defined under
410.33subdivision 16 are excluded from this paragraph. Payments made to managed care plans
410.34shall be reduced for services provided on or after July 1, 2009, through June 30, 2011,
410.35to reflect this reduction.
411.1    (g) In addition to the reductions in paragraphs (b), (c), and (d), the total payment
411.2for fee-for-service admissions occurring on or after July 1, 2011, made to hospitals for
411.3inpatient services before third-party liability and spenddown, is reduced 1.79 percent from
411.4the current statutory rates. Mental health services with diagnosis related groups 424 to 432
411.5 or corresponding APR-DRGs, and facilities defined under subdivision 16 are excluded
411.6from this paragraph. Payments made to managed care plans shall be reduced for services
411.7provided on or after July 1, 2011, to reflect this reduction.
411.8(h) In addition to the reductions in paragraphs (b), (c), (d), (f), and (g), the total
411.9payment for fee-for-service admissions occurring on or after July 1, 2009, made to
411.10hospitals for inpatient services before third-party liability and spenddown, is reduced
411.11one percent from the current statutory rates. Facilities defined under subdivision 16 are
411.12excluded from this paragraph. Payments made to managed care plans shall be reduced for
411.13services provided on or after October 1, 2009, to reflect this reduction.
411.14(i) In addition to the reductions in paragraphs (b), (c), (d), (g), and (h), the total
411.15payment for fee-for-service admissions occurring on or after July 1, 2011, made to
411.16hospitals for inpatient services before third-party liability and spenddown, is reduced
411.171.96 percent from the current statutory rates. Facilities defined under subdivision 16 are
411.18excluded from this paragraph. Payments made to managed care plans shall be reduced for
411.19services provided on or after January 1, 2011, to reflect this reduction.
411.20(j) Effective for discharges on and after October 1, 2014, from hospitals paid under
411.21subdivision 2b, paragraph (a), clauses (1) and (4), the rate adjustments in this subdivision
411.22must be incorporated into the rebased rates established under subdivision 2b, paragraph
411.23(c), and must not be applied to each claim.

411.24    Sec. 12. Minnesota Statutes 2012, section 256.969, subdivision 3b, is amended to read:
411.25    Subd. 3b. Nonpayment for hospital-acquired conditions and for certain
411.26treatments. (a) The commissioner must not make medical assistance payments to a
411.27hospital for any costs of care that result from a condition listed identified in paragraph
411.28(c), if the condition was hospital acquired.
411.29    (b) For purposes of this subdivision, a condition is hospital acquired if it is not
411.30identified by the hospital as present on admission. For purposes of this subdivision,
411.31medical assistance includes general assistance medical care and MinnesotaCare.
411.32(c) The prohibition in paragraph (a) applies to payment for each hospital-acquired
411.33condition listed in this paragraph that is represented by an ICD-9-CM or ICD-10-CM
411.34diagnosis code and is designated as a complicating condition or a major complicating
411.35condition:
412.1(1) foreign object retained after surgery (ICD-9-CM codes 998.4 or 998.7);
412.2(2) air embolism (ICD-9-CM code 999.1);
412.3(3) blood incompatibility (ICD-9-CM code 999.6);
412.4(4) pressure ulcers stage III or IV (ICD-9-CM codes 707.23 or 707.24);
412.5(5) falls and trauma, including fracture, dislocation, intracranial injury, crushing
412.6injury, burn, and electric shock (ICD-9-CM codes with these ranges on the complicating
412.7condition and major complicating condition list: 800-829; 830-839; 850-854; 925-929;
412.8940-949; and 991-994);
412.9(6) catheter-associated urinary tract infection (ICD-9-CM code 996.64);
412.10(7) vascular catheter-associated infection (ICD-9-CM code 999.31);
412.11(8) manifestations of poor glycemic control (ICD-9-CM codes 249.10; 249.11;
412.12249.20; 249.21; 250.10; 250.11; 250.12; 250.13; 250.20; 250.21; 250.22; 250.23; and
412.13251.0);
412.14(9) surgical site infection (ICD-9-CM codes 996.67 or 998.59) following certain
412.15orthopedic procedures (procedure codes 81.01; 81.02; 81.03; 81.04; 81.05; 81.06; 81.07;
412.1681.08; 81.23; 81.24; 81.31; 81.32; 81.33; 81.34; 81.35; 81.36; 81.37; 81.38; 81.83; and
412.1781.85);
412.18(10) surgical site infection (ICD-9-CM code 998.59) following bariatric surgery
412.19(procedure codes 44.38; 44.39; or 44.95) for a principal diagnosis of morbid obesity
412.20(ICD-9-CM code 278.01);
412.21(11) surgical site infection, mediastinitis (ICD-9-CM code 519.2) following coronary
412.22artery bypass graft (procedure codes 36.10 to 36.19); and
412.23(12) deep vein thrombosis (ICD-9-CM codes 453.40 to 453.42) or pulmonary
412.24embolism (ICD-9-CM codes 415.11 or 415.19) following total knee replacement
412.25(procedure code 81.54) or hip replacement (procedure codes 00.85 to 00.87 or 81.51 to
412.2681.52). The list of conditions shall be the hospital-acquired conditions (HAC) list defined
412.27by the Centers for Medicare and Medicaid Services on an annual basis.
412.28(d) The prohibition in paragraph (a) applies to any additional payments that result
412.29from a hospital-acquired condition listed identified in paragraph (c), including, but not
412.30limited to, additional treatment or procedures, readmission to the facility after discharge,
412.31increased length of stay, change to a higher diagnostic category, or transfer to another
412.32hospital. In the event of a transfer to another hospital, the hospital where the condition
412.33listed identified under paragraph (c) was acquired is responsible for any costs incurred at
412.34the hospital to which the patient is transferred.
412.35(e) A hospital shall not bill a recipient of services for any payment disallowed under
412.36this subdivision.

413.1    Sec. 13. Minnesota Statutes 2012, section 256.969, subdivision 3c, is amended to read:
413.2    Subd. 3c. Rateable reduction and readmissions reduction. (a) The total payment
413.3for fee for service admissions occurring on or after September 1, 2011, through June 30,
413.42015 to October 31, 2014, made to hospitals for inpatient services before third-party
413.5liability and spenddown, is reduced ten percent from the current statutory rates. Facilities
413.6defined under subdivision 16, long-term hospitals as determined under the Medicare
413.7program, children's hospitals whose inpatients are predominantly under 18 years of age,
413.8and payments under managed care are excluded from this paragraph.
413.9(b) Effective for admissions occurring during calendar year 2010 and each year
413.10after, the commissioner shall calculate a regional readmission rate for admissions to all
413.11hospitals occurring within 30 days of a previous discharge. The commissioner may
413.12adjust the readmission rate taking into account factors such as the medical relationship,
413.13complicating conditions, and sequencing of treatment between the initial admission and
413.14subsequent readmissions.
413.15(c) Effective for payments to all hospitals on or after July 1, 2013, through June 30,
413.162015 October 31, 2014, the reduction in paragraph (a) is reduced one percentage point for
413.17every percentage point reduction in the overall readmissions rate between the two previous
413.18calendar years to a maximum of five percent.
413.19(d) The exclusion from the rate reduction in paragraph (a) also applies to admissions
413.20of patients under 18 years of age to a hospital located in Hennepin County with a licensed
413.21capacity of 1,700 beds as of September 1, 2011.
413.22EFFECTIVE DATE.Paragraph (d) is effective retroactively from September 1,
413.232011, and applies to admissions on or after that date.

413.24    Sec. 14. Minnesota Statutes 2012, section 256.969, is amended by adding a subdivision
413.25to read:
413.26    Subd. 4b. Medical assistance cost reports for services. (a) A hospital that meets
413.27one of the following criteria must annually file medical assistance cost reports within six
413.28months of the end of the hospital's fiscal year:
413.29(1) a hospital designated as a critical access hospital that receives medical assistance
413.30payments; or
413.31(2) a Minnesota hospital or out-of-state hospital located within a Minnesota local
413.32trade area that receives a disproportionate population adjustment under subdivision 9.
413.33For purposes of this subdivision, local trade area has the meaning given in
413.34subdivision 17.
414.1(b) The commissioner shall suspend payments to any hospital that fails to file a
414.2report required under this subdivision. Payments must remain suspended until the report
414.3has been filed with and accepted by the Department of Human Services inpatient rates unit.

414.4    Sec. 15. Minnesota Statutes 2012, section 256.969, subdivision 6a, is amended to read:
414.5    Subd. 6a. Special considerations. In determining the payment rates, the
414.6commissioner shall consider whether the circumstances in subdivisions 7 8 to 14 exist.

414.7    Sec. 16. Minnesota Statutes 2012, section 256.969, subdivision 8, is amended to read:
414.8    Subd. 8. Unusual length of stay experience. (a) The commissioner shall establish
414.9day outlier thresholds for each diagnostic category established under subdivision 2 at two
414.10standard deviations beyond the mean length of stay. Payment for the days beyond the outlier
414.11threshold shall be in addition to the operating and property payment rates per admission
414.12established under subdivisions 2, 2b, and 2c. Payment for outliers shall be at 70 percent of
414.13the allowable operating cost, after adjustment by the case mix index, hospital cost index,
414.14relative values and the disproportionate population adjustment. The outlier threshold for
414.15neonatal and burn diagnostic categories shall be established at one standard deviation
414.16beyond the mean length of stay, and payment shall be at 90 percent of allowable operating
414.17cost calculated in the same manner as other outliers. A hospital may choose an alternative
414.18to the 70 percent outlier payment that is at a minimum of 60 percent and a maximum of 80
414.19percent if the commissioner is notified in writing of the request by October 1 of the year
414.20preceding the rate year. The chosen percentage applies to all diagnostic categories except
414.21burns and neonates. The percentage of allowable cost that is unrecognized by the outlier
414.22payment shall be added back to the base year operating payment rate per admission.
414.23(b) Effective for transfers occurring on and after October 1, 2014, the commissioner
414.24shall establish payment rates for acute transfers that are based on Medicare methodologies.

414.25    Sec. 17. Minnesota Statutes 2012, section 256.969, subdivision 8a, is amended to read:
414.26    Subd. 8a. Short length of stay Neonatal admissions. Except as provided in
414.27subdivision 13, for admissions occurring on or after July 1, 1995, payment shall be
414.28determined as follows and shall be included in the base year for rate setting purposes:
414.29(1) for an admission that is categorized to a neonatal diagnostic related group
414.30in which the length of stay is less than 50 percent of the average length of stay for the
414.31category in the base year and the patient at admission is equal to or greater than the age of
414.32one, payments shall be established according to the methods of subdivision 14;
415.1(2) For an admission that is categorized to a diagnostic category that includes
415.2neonatal respiratory distress syndrome, the hospital must have a level II or level III
415.3nursery and the patient must receive treatment in that unit or payment will be made
415.4without regard to the syndrome condition.
415.5EFFECTIVE DATE.This section is effective October 1, 2014.

415.6    Sec. 18. Minnesota Statutes 2012, section 256.969, is amended by adding a subdivision
415.7to read:
415.8    Subd. 8c. Hospital residents. For discharges on or after October 1, 2014, payments
415.9for hospital residents shall be made as follows:
415.10(1) payments for the first 180 days of inpatient care shall be the APR-DRG system
415.11plus any appropriate outliers; and
415.12(2) payment for all medically necessary patient care subsequent to 180 days shall
415.13be reimbursed at a rate computed by multiplying the statewide average cost-to-charge
415.14ratio by the usual and customary charges.

415.15    Sec. 19. Minnesota Statutes 2012, section 256.969, subdivision 9, is amended to read:
415.16    Subd. 9. Disproportionate numbers of low-income patients served. (a) For
415.17admissions occurring on or after October 1, 1992, through December 31, 1992, the
415.18medical assistance disproportionate population adjustment shall comply with federal law
415.19and shall be paid to a hospital, excluding regional treatment centers and facilities of the
415.20federal Indian Health Service, with a medical assistance inpatient utilization rate in excess
415.21of the arithmetic mean. The adjustment must be determined as follows:
415.22    (1) for a hospital with a medical assistance inpatient utilization rate above the
415.23arithmetic mean for all hospitals excluding regional treatment centers and facilities of the
415.24federal Indian Health Service but less than or equal to one standard deviation above the
415.25mean, the adjustment must be determined by multiplying the total of the operating and
415.26property payment rates by the difference between the hospital's actual medical assistance
415.27inpatient utilization rate and the arithmetic mean for all hospitals excluding regional
415.28treatment centers and facilities of the federal Indian Health Service; and
415.29    (2) for a hospital with a medical assistance inpatient utilization rate above one
415.30standard deviation above the mean, the adjustment must be determined by multiplying
415.31the adjustment that would be determined under clause (1) for that hospital by 1.1. If
415.32federal matching funds are not available for all adjustments under this subdivision, the
415.33commissioner shall reduce payments on a pro rata basis so that all adjustments qualify for
415.34federal match. The commissioner may establish a separate disproportionate population
416.1operating payment rate adjustment under the general assistance medical care program.
416.2For purposes of this subdivision medical assistance does not include general assistance
416.3medical care. The commissioner shall report annually on the number of hospitals likely to
416.4receive the adjustment authorized by this paragraph. The commissioner shall specifically
416.5report on the adjustments received by public hospitals and public hospital corporations
416.6located in cities of the first class.
416.7    (b) For admissions occurring on or after July 1, 1993, the medical assistance
416.8disproportionate population adjustment shall comply with federal law and shall be paid to
416.9a hospital, excluding regional treatment centers and facilities of the federal Indian Health
416.10Service, with a medical assistance inpatient utilization rate in excess of the arithmetic
416.11mean. The adjustment must be determined as follows:
416.12    (1) for a hospital with a medical assistance inpatient utilization rate above the
416.13arithmetic mean for all hospitals excluding regional treatment centers and facilities of the
416.14federal Indian Health Service but less than or equal to one standard deviation above the
416.15mean, the adjustment must be determined by multiplying the total of the operating and
416.16property payment rates by the difference between the hospital's actual medical assistance
416.17inpatient utilization rate and the arithmetic mean for all hospitals excluding regional
416.18treatment centers and facilities of the federal Indian Health Service; and
416.19    (2) for a hospital with a medical assistance inpatient utilization rate above one
416.20standard deviation above the mean, the adjustment must be determined by multiplying
416.21the adjustment that would be determined under clause (1) for that hospital by 1.1. The
416.22commissioner may establish a separate disproportionate population operating payment
416.23rate adjustment under the general assistance medical care program. For purposes of
416.24this subdivision, medical assistance does not include general assistance medical care
416.25 for critical access hospitals. The commissioner shall report annually on the number of
416.26hospitals likely to receive the adjustment authorized by this paragraph. The commissioner
416.27shall specifically report on the adjustments received by public hospitals and public hospital
416.28corporations located in cities of the first class;.
416.29    (3) for a hospital that had medical assistance fee-for-service payment volume during
416.30calendar year 1991 in excess of 13 percent of total medical assistance fee-for-service
416.31payment volume, a medical assistance disproportionate population adjustment shall be
416.32paid in addition to any other disproportionate payment due under this subdivision as
416.33follows: $1,515,000 due on the 15th of each month after noon, beginning July 15, 1995.
416.34For a hospital that had medical assistance fee-for-service payment volume during calendar
416.35year 1991 in excess of eight percent of total medical assistance fee-for-service payment
416.36volume and was the primary hospital affiliated with the University of Minnesota, a
417.1medical assistance disproportionate population adjustment shall be paid in addition to any
417.2other disproportionate payment due under this subdivision as follows: $505,000 due on
417.3the 15th of each month after noon, beginning July 15, 1995; and
417.4    (4) effective August 1, 2005, the payments in paragraph (b), clause (3), shall be
417.5reduced to zero.
417.6    (c) The commissioner shall adjust rates paid to a health maintenance organization
417.7under contract with the commissioner to reflect rate increases provided in paragraph (b),
417.8clauses (1) and (2), on a nondiscounted hospital-specific basis but shall not adjust those
417.9rates to reflect payments provided in clause (3).
417.10    (d) If federal matching funds are not available for all adjustments under paragraph
417.11(b), the commissioner shall reduce payments under paragraph (b), clauses (1) and (2), on a
417.12pro rata basis so that all adjustments under paragraph (b) qualify for federal match.
417.13    (e) For purposes of this subdivision, medical assistance does not include general
417.14assistance medical care.
417.15    (f) For hospital services occurring on or after July 1, 2005, to June 30, 2007:
417.16    (1) general assistance medical care expenditures for fee-for-service inpatient and
417.17outpatient hospital payments made by the department shall be considered Medicaid
417.18disproportionate share hospital payments, except as limited below:
417.19     (i) only the portion of Minnesota's disproportionate share hospital allotment under
417.20section 1923(f) of the Social Security Act that is not spent on the disproportionate
417.21population adjustments in paragraph (b), clauses (1) and (2), may be used for general
417.22assistance medical care expenditures;
417.23     (ii) only those general assistance medical care expenditures made to hospitals that
417.24qualify for disproportionate share payments under section 1923 of the Social Security Act
417.25and the Medicaid state plan may be considered disproportionate share hospital payments;
417.26     (iii) only those general assistance medical care expenditures made to an individual
417.27hospital that would not cause the hospital to exceed its individual hospital limits under
417.28section 1923 of the Social Security Act may be considered; and
417.29     (iv) general assistance medical care expenditures may be considered only to the
417.30extent of Minnesota's aggregate allotment under section 1923 of the Social Security Act.
417.31All hospitals and prepaid health plans participating in general assistance medical care
417.32must provide any necessary expenditure, cost, and revenue information required by the
417.33commissioner as necessary for purposes of obtaining federal Medicaid matching funds for
417.34general assistance medical care expenditures; and
417.35    (2) (c) Certified public expenditures made by Hennepin County Medical Center shall
417.36be considered Medicaid disproportionate share hospital payments. Hennepin County
418.1and Hennepin County Medical Center shall report by June 15, 2007, on payments made
418.2beginning July 1, 2005, or another date specified by the commissioner, that may qualify
418.3for reimbursement under federal law. Based on these reports, the commissioner shall
418.4apply for federal matching funds.
418.5    (g) (d) Upon federal approval of the related state plan amendment, paragraph (f) (c)
418.6 is effective retroactively from July 1, 2005, or the earliest effective date approved by the
418.7Centers for Medicare and Medicaid Services.

418.8    Sec. 20. Minnesota Statutes 2012, section 256.969, subdivision 10, is amended to read:
418.9    Subd. 10. Separate billing by certified registered nurse anesthetists. Hospitals
418.10may must exclude certified registered nurse anesthetist costs from the operating payment
418.11rate as allowed by section 256B.0625, subdivision 11. To be eligible, a hospital must
418.12notify the commissioner in writing by October 1 of even-numbered years to exclude
418.13certified registered nurse anesthetist costs. The hospital must agree that all hospital
418.14claims for the cost and charges of certified registered nurse anesthetist services will not
418.15be included as part of the rates for inpatient services provided during the rate year. In
418.16this case, the operating payment rate shall be adjusted to exclude the cost of certified
418.17registered nurse anesthetist services.
418.18For admissions occurring on or after July 1, 1991, and until the expiration date of
418.19section 256.9695, subdivision 3, services of certified registered nurse anesthetists provided
418.20on an inpatient basis may be paid as allowed by section 256B.0625, subdivision 11, when
418.21the hospital's base year did not include the cost of these services. To be eligible, a hospital
418.22must notify the commissioner in writing by July 1, 1991, of the request and must comply
418.23with all other requirements of this subdivision.

418.24    Sec. 21. Minnesota Statutes 2012, section 256.969, subdivision 12, is amended to read:
418.25    Subd. 12. Rehabilitation hospitals and distinct parts. (a) Units of hospitals that
418.26are recognized as rehabilitation distinct parts by the Medicare program shall have separate
418.27provider numbers under the medical assistance program for rate establishment and billing
418.28purposes only. These units shall also have operating and property payment rates and the
418.29disproportionate population adjustment, if allowed by federal law, established separately
418.30from other inpatient hospital services.
418.31(b) The commissioner may shall establish separate relative values under subdivision
418.322 for rehabilitation hospitals and distinct parts as defined by the Medicare program.
418.33Effective for discharges on and after October 1, 2014, the commissioner, to the extent
418.34possible, shall replicate the existing payment rate methodology under the new diagnostic
419.1classification system. The result must be budget neutral, ensuring that the total aggregate
419.2payments under the new system are equal to the total aggregate payments made for the
419.3same number and types of services in the base year state fiscal year 2012.
419.4(c) For individual hospitals that did not have separate medical assistance
419.5rehabilitation provider numbers or rehabilitation distinct parts in the base year, hospitals
419.6shall provide the information needed to separate rehabilitation distinct part cost and claims
419.7data from other inpatient service data.

419.8    Sec. 22. Minnesota Statutes 2012, section 256.969, subdivision 14, is amended to read:
419.9    Subd. 14. Transfers. Except as provided in subdivisions 11 and 13, (a) Operating
419.10and property payment rates for admissions that result in transfers and transfers shall be
419.11established on a per day payment system. The per day payment rate shall be the sum of
419.12the adjusted operating and property payment rates determined under this subdivision and
419.13subdivisions 2, 2b, 2c, 3a, 4a, 5a, and 7 8 to 12, divided by the arithmetic mean length
419.14of stay for the diagnostic category. Each admission that results in a transfer and each
419.15transfer is considered a separate admission to each hospital, and the total of the admission
419.16and transfer payments to each hospital must not exceed the total per admission payment
419.17that would otherwise be made to each hospital under this subdivision and subdivisions
419.182, 2b, 2c, 3a, 4a, 5a, and 7 to 13 8 to 12.
419.19(b) Effective for transfers occurring on and after October 1, 2014, the commissioner
419.20shall establish payment rates for acute transfers that are based on Medicare methodologies.

419.21    Sec. 23. Minnesota Statutes 2012, section 256.969, subdivision 17, is amended to read:
419.22    Subd. 17. Out-of-state hospitals in local trade areas. Out-of-state hospitals that
419.23are located within a Minnesota local trade area and that have more than 20 admissions in
419.24the base year or years shall have rates established using the same procedures and methods
419.25that apply to Minnesota hospitals. For this subdivision and subdivision 18, local trade area
419.26means a county contiguous to Minnesota and located in a metropolitan statistical area as
419.27determined by Medicare for October 1 prior to the most current rebased rate year. Hospitals
419.28that are not required by law to file information in a format necessary to establish rates shall
419.29have rates established based on the commissioner's estimates of the information. Relative
419.30values of the diagnostic categories shall not be redetermined under this subdivision until
419.31required by rule statute. Hospitals affected by this subdivision shall then be included in
419.32determining relative values. However, hospitals that have rates established based upon
419.33the commissioner's estimates of information shall not be included in determining relative
419.34values. This subdivision is effective for hospital fiscal years beginning on or after July
420.11, 1988. A hospital shall provide the information necessary to establish rates under this
420.2subdivision at least 90 days before the start of the hospital's fiscal year.

420.3    Sec. 24. Minnesota Statutes 2012, section 256.969, subdivision 18, is amended to read:
420.4    Subd. 18. Out-of-state hospitals outside local trade areas. Hospitals that are
420.5not located within Minnesota or a Minnesota local trade area shall have operating and
420.6property inpatient hospital rates established at the average of statewide and local trade area
420.7rates or, at the commissioner's discretion, at an amount negotiated by the commissioner.
420.8Relative values shall not include data from hospitals that have rates established under this
420.9subdivision. Payments, including third-party and recipient liability, established under this
420.10subdivision may not exceed the charges on a claim specific basis for inpatient services that
420.11are covered by medical assistance.

420.12    Sec. 25. Minnesota Statutes 2012, section 256.969, subdivision 25, is amended to read:
420.13    Subd. 25. Long-term hospital rates. (a) Long-term hospitals shall be paid a per
420.14diem rate established by the commissioner.
420.15(b) For admissions occurring on or after April 1, 1995, a long-term hospital as
420.16designated by Medicare that does not have admissions in the base year shall have
420.17inpatient rates established at the average of other hospitals with the same designation. For
420.18subsequent rate-setting periods in which base years are updated, the hospital's base year
420.19shall be the first Medicare cost report filed with the long-term hospital designation and
420.20shall remain in effect until it falls within the same period as other hospitals.

420.21    Sec. 26. Minnesota Statutes 2012, section 256.969, subdivision 30, is amended to read:
420.22    Subd. 30. Payment rates for births. (a) For admissions occurring on or after
420.23October 1, 2009 October 1, 2014, the total operating and property payment rate, excluding
420.24disproportionate population adjustment, for the following diagnosis-related groups, as
420.25they fall within the diagnostic APR-DRG categories: (1) 371 cesarean section without
420.26complicating diagnosis 5601, 5602, 5603, 5604 vaginal delivery; and (2) 372 vaginal
420.27delivery with complicating diagnosis; and (3) 373 vaginal delivery without complicating
420.28diagnosis 5401, 5402, 5403, 5404 cesarean section, shall be no greater than $3,528.
420.29(b) The rates described in this subdivision do not include newborn care.
420.30(c) Payments to managed care and county-based purchasing plans under section
420.31256B.69 , 256B.692, or 256L.12 shall be reduced for services provided on or after October
420.321, 2009, to reflect the adjustments in paragraph (a).
421.1(d) Prior authorization shall not be required before reimbursement is paid for a
421.2cesarean section delivery.

421.3    Sec. 27. Minnesota Statutes 2012, section 256B.04, is amended by adding a
421.4subdivision to read:
421.5    Subd. 24. Medicaid waiver requests and state plan amendments. Prior to
421.6submitting any Medicaid waiver request or Medicaid state plan amendment to the federal
421.7government for approval, the commissioner shall publish the text of the waiver request
421.8or state plan amendment, or a Web link to the text, in the State Register, and provide a
421.930-day public comment period. The commissioner shall consider public comments when
421.10preparing the final waiver request or state plan amendment that is to be submitted to
421.11the federal government for approval. The commissioner shall also publish in the State
421.12Register notice of any federal decision related to the state request for approval, within 30
421.13days of the decision. This notice must describe any modifications to the state request that
421.14have been agreed to by the commissioner as a condition of receiving federal approval.

421.15    Sec. 28. Minnesota Statutes 2012, section 256B.0625, subdivision 30, is amended to
421.16read:
421.17    Subd. 30. Other clinic services. (a) Medical assistance covers rural health clinic
421.18services, federally qualified health center services, nonprofit community health clinic
421.19services, and public health clinic services. Rural health clinic services and federally
421.20qualified health center services mean services defined in United States Code, title 42,
421.21section 1396d(a)(2)(B) and (C). Payment for rural health clinic and federally qualified
421.22health center services shall be made according to applicable federal law and regulation.
421.23(b) A federally qualified health center that is beginning initial operation shall submit
421.24an estimate of budgeted costs and visits for the initial reporting period in the form and
421.25detail required by the commissioner. A federally qualified health center that is already in
421.26operation shall submit an initial report using actual costs and visits for the initial reporting
421.27period. Within 90 days of the end of its reporting period, a federally qualified health
421.28center shall submit, in the form and detail required by the commissioner, a report of
421.29its operations, including allowable costs actually incurred for the period and the actual
421.30number of visits for services furnished during the period, and other information required
421.31by the commissioner. Federally qualified health centers that file Medicare cost reports
421.32shall provide the commissioner with a copy of the most recent Medicare cost report filed
421.33with the Medicare program intermediary for the reporting year which support the costs
421.34claimed on their cost report to the state.
422.1(c) In order to continue cost-based payment under the medical assistance program
422.2according to paragraphs (a) and (b), a federally qualified health center or rural health clinic
422.3must apply for designation as an essential community provider within six months of final
422.4adoption of rules by the Department of Health according to section 62Q.19, subdivision
422.57 . For those federally qualified health centers and rural health clinics that have applied
422.6for essential community provider status within the six-month time prescribed, medical
422.7assistance payments will continue to be made according to paragraphs (a) and (b) for the
422.8first three years after application. For federally qualified health centers and rural health
422.9clinics that either do not apply within the time specified above or who have had essential
422.10community provider status for three years, medical assistance payments for health services
422.11provided by these entities shall be according to the same rates and conditions applicable
422.12to the same service provided by health care providers that are not federally qualified
422.13health centers or rural health clinics.
422.14(d) Effective July 1, 1999, the provisions of paragraph (c) requiring a federally
422.15qualified health center or a rural health clinic to make application for an essential
422.16community provider designation in order to have cost-based payments made according
422.17to paragraphs (a) and (b) no longer apply.
422.18(e) Effective January 1, 2000, payments made according to paragraphs (a) and (b)
422.19shall be limited to the cost phase-out schedule of the Balanced Budget Act of 1997.
422.20(f) Effective January 1, 2001, each federally qualified health center and rural health
422.21clinic may elect to be paid either under the prospective payment system established
422.22in United States Code, title 42, section 1396a(aa), or under an alternative payment
422.23methodology consistent with the requirements of United States Code, title 42, section
422.241396a(aa), and approved by the Centers for Medicare and Medicaid Services. The
422.25alternative payment methodology shall be 100 percent of cost as determined according to
422.26Medicare cost principles.
422.27(g) For purposes of this section, "nonprofit community clinic" is a clinic that:
422.28(1) has nonprofit status as specified in chapter 317A;
422.29(2) has tax exempt status as provided in Internal Revenue Code, section 501(c)(3);
422.30(3) is established to provide health services to low-income population groups,
422.31uninsured, high-risk and special needs populations, underserved and other special needs
422.32populations;
422.33(4) employs professional staff at least one-half of which are familiar with the
422.34cultural background of their clients;
422.35(5) charges for services on a sliding fee scale designed to provide assistance to
422.36low-income clients based on current poverty income guidelines and family size; and
423.1(6) does not restrict access or services because of a client's financial limitations or
423.2public assistance status and provides no-cost care as needed.
423.3(h) Effective for services provided on and after January 1, 2015, all claims for
423.4payment of clinic services provided by federally qualified health centers and rural health
423.5clinics shall be submitted to both the commissioner and the managed care or county-based
423.6purchasing plan and shall be paid by the commissioner. The commissioner shall provide
423.7claims payment information to managed care plans and county-based purchasing plans
423.8on a regular basis.
423.9(i) For clinic services provided prior to January 1, 2015, the commissioner shall
423.10require managed care and county-based purchasing plans to provide all necessary claims
423.11information to the commissioner and the commissioner shall calculate and pay monthly
423.12the proposed managed care supplemental payments to clinics, and clinics shall conduct a
423.13timely review of the payment calculation data in order to finalize all supplemental payments
423.14in accordance with federal law. Any issues arising from a clinic's review must be reported
423.15to the commissioner by January 1, 2017. Upon final agreement between the commissioner
423.16and a clinic on issues identified under this subdivision, and in accordance with United
423.17States Code, title 42, section 1396a(bb), no supplemental payments for managed care
423.18claims for services provided prior to January 1, 2015, shall be made after June 30, 2017.
423.19If the commissioner and clinics are unable to resolve issues under this subdivision, the
423.20parties shall submit the dispute to the arbitration process under section 14.57.

423.21    Sec. 29. Minnesota Statutes 2013 Supplement, section 256B.0949, subdivision 11,
423.22is amended to read:
423.23    Subd. 11. Federal approval of the autism benefit. (a) The provisions of
423.24subdivision 9 this section shall apply to state plan services under title XIX of the Social
423.25Security Act when federal approval is granted under a 1915(i) waiver or other authority
423.26which allows children eligible for medical assistance through the TEFRA option under
423.27section 256B.055, subdivision 12, to qualify and includes children eligible for medical
423.28assistance in families over 150 percent of the federal poverty guidelines.
423.29(b) The commissioner may use the federal authority for a Medicaid state plan
423.30amendment under Early Periodic Diagnosis Screening and Treatment (EPSDT), United
423.31States Code, title 42, section 1396D(R)(5), or other Medicaid provision for any aspect or
423.32type of treatment covered in this section if new federal guidance is helpful in achieving
423.33one or more of the purposes of this section in a cost-effective manner. Notwithstanding
423.34subdivisions 2 and 3, any treatment services submitted for federal approval under EPSDT
424.1shall include appropriate medical criteria to qualify for the service and shall cover children
424.2through age 20.

424.3    Sec. 30. Minnesota Statutes 2012, section 256B.199, is amended to read:
424.4256B.199 PAYMENTS REPORTED BY GOVERNMENTAL ENTITIES.
424.5    (a) Effective July 1, 2007, The commissioner shall apply for federal matching
424.6funds for the expenditures in paragraphs (b) and (c). Effective September 1, 2011, the
424.7commissioner shall apply for matching funds for expenditures in paragraph (e).
424.8    (b) The commissioner shall apply for federal matching funds for certified public
424.9expenditures as follows:
424.10    (1) Hennepin County, Hennepin County Medical Center, Ramsey County, and
424.11Regions Hospital, the University of Minnesota, and Fairview-University Medical Center
424.12 shall report quarterly to the commissioner beginning June 1, 2007, payments made during
424.13the second previous quarter that may qualify for reimbursement under federal law;
424.14     (2) based on these reports, the commissioner shall apply for federal matching
424.15funds. These funds are appropriated to the commissioner for the payments under section
424.16256.969, subdivision 27 ; and
424.17     (3) by May 1 of each year, beginning May 1, 2007, the commissioner shall inform
424.18the nonstate entities listed in paragraph (a) of the amount of federal disproportionate share
424.19hospital payment money expected to be available in the current federal fiscal year.
424.20    (c) The commissioner shall apply for federal matching funds for general assistance
424.21medical care expenditures as follows:
424.22    (1) for hospital services occurring on or after July 1, 2007, general assistance medical
424.23care expenditures for fee-for-service inpatient and outpatient hospital payments made by
424.24the department shall be used to apply for federal matching funds, except as limited below:
424.25    (i) only those general assistance medical care expenditures made to an individual
424.26hospital that would not cause the hospital to exceed its individual hospital limits under
424.27section 1923 of the Social Security Act may be considered; and
424.28    (ii) general assistance medical care expenditures may be considered only to the extent
424.29of Minnesota's aggregate allotment under section 1923 of the Social Security Act; and
424.30    (2) all hospitals must provide any necessary expenditure, cost, and revenue
424.31information required by the commissioner as necessary for purposes of obtaining federal
424.32Medicaid matching funds for general assistance medical care expenditures.
424.33(d) (c) For the period from April 1, 2009, to September 30, 2010, the commissioner
424.34shall apply for additional federal matching funds available as disproportionate share
424.35hospital payments under the American Recovery and Reinvestment Act of 2009. These
425.1funds shall be made available as the state share of payments under section 256.969,
425.2subdivision 28 . The entities required to report certified public expenditures under
425.3paragraph (b), clause (1), shall report additional certified public expenditures as necessary
425.4under this paragraph.
425.5(e) (d) For services provided on or after September 1, 2011, the commissioner shall
425.6apply for additional federal matching funds available as disproportionate share hospital
425.7payments under the MinnesotaCare program according to the requirements and conditions
425.8of paragraph (c). A hospital may elect on an annual basis to not be a disproportionate
425.9share hospital for purposes of this paragraph, if the hospital does not qualify for a payment
425.10under section 256.969, subdivision 9, paragraph (b).

425.11    Sec. 31. Minnesota Statutes 2013 Supplement, section 256B.69, subdivision 34,
425.12is amended to read:
425.13    Subd. 34. Supplemental recovery program. The commissioner shall conduct a
425.14supplemental recovery program for third-party liabilities identified through coordination
425.15of benefits not recovered by managed care plans and county-based purchasing plans for
425.16state public health programs. Any third-party liability identified through coordination of
425.17benefits and recovered by the commissioner more than six eight months after the date
425.18a managed care plan or county-based purchasing plan receives adjudicates a health
425.19care claim shall be retained by the commissioner and deposited in the general fund.
425.20The commissioner shall establish a mechanism, including a reconciliation process, for
425.21managed care plans and county-based purchasing plans to coordinate third-party liability
425.22collections efforts resulting from coordination of benefits under this subdivision with the
425.23commissioner to ensure there is no duplication of efforts. The coordination mechanism
425.24must be consistent with the reporting requirements in subdivision 9c. The commissioner
425.25shall share accurate and timely third-party liability data with managed care plans and
425.26county-based purchasing plans.

425.27    Sec. 32. [256L.30] LOW-INCOME UNINSURED CHILDREN'S HEALTH
425.28PROGRAM.
425.29    Subdivision 1. General. (a) Effective January 1, 2016, the commissioner shall
425.30establish a program that provides coverage to low-income uninsured children who are not
425.31eligible for medical assistance or MinnesotaCare.
425.32(b) A child is eligible for the program under this section if the child is under the age
425.33of 21, and meets all other MinnesotaCare eligibility requirements under this chapter,
425.34except as otherwise specified in this section, and:
426.1(1) has been determined eligible for the emergency medical assistance program
426.2under section 256B.06, subdivision 4, paragraph (e) or (f); or
426.3(2) the child's treating health care provider certifies that the child has an emergency
426.4medical condition as defined in United States Code, title 42, section 1396b(v), that is
426.5likely to lead to the child being admitted to a hospital or emergency department unless
426.6intervening outpatient health care treatment is provided.
426.7(c) Eligibility continues under this section for as long as the child continues to have
426.8the underlying medical condition that gave rise to the initial emergency medical condition.
426.9(d) Children eligible for the program under this subdivision are exempt from the
426.10income eligibility limits under section 256L.04 and section 256L.07, and remain eligible
426.11for the program so long as their family income is equal to or less than 275 percent of federal
426.12poverty guidelines, and the citizenship requirements under section 256L.04, subdivision 10.
426.13(e) Children who are eligible for medical assistance under chapter 256B, or
426.14MinnesotaCare under this chapter, are not eligible for the program under this section.
426.15(f) All application, navigation services, eligibility determination, enrollment,
426.16disenrollment, and premium requirements and procedures of the MinnesotaCare program
426.17apply to this program, except as otherwise specified in this section.
426.18    Subd. 2. Covered services. (a) The program covers the services described under
426.19section 256L.03, except as otherwise specified in this subdivision.
426.20(b) The program does not cover services for an emergency medical condition that are
426.21covered by the emergency medical assistance program under section 256B.06, subdivision
426.224, paragraphs (e) to (h). The commissioner shall coordinate the program with the federally
426.23subsidized emergency medical assistance program with the goal of making transitions
426.24between the programs seamless and invisible to the enrollee to the extent possible.
426.25(c) For children who are eligible under subdivision 1, the program covers nursing
426.26facility services described under section 144.0724, subdivision 11, and home and
426.27community-based services described in paragraph (d), if the child's family income is equal
426.28to or less than the medical assistance income eligibility standards described in section
426.29256B.056, subdivision 4, or meets the excess income standards described in section
426.30256B.056, subdivisions 5 and 5c. All requirements of the medical assistance program
426.31under chapter 256B relating to these services apply to the program under this section.
426.32(d) For purposes of this section, home and community-based services include:
426.33(1) home and community-based waivered services for persons with developmental
426.34disabilities, including consumer-directed community supports under section 256B.092;
426.35(2) waivered services under community alternatives for disabled individuals,
426.36including consumer-directed community supports under section 256B.49;
427.1(3) community alternative care waivered services, including consumer-directed
427.2community supports under section 256B.49;
427.3(4) brain injury waivered services, including consumer-directed community supports
427.4under section 256B.49;
427.5(5) home and community-based waivered services for the elderly under section
427.6256B.0915;
427.7(6) nursing services and home health services under section 256B.0625, subdivision
427.86a;
427.9(7) personal care services and qualified professional supervision of personal care
427.10services under section 256B.0625, subdivisions 6a and 19a;
427.11(8) private duty nursing services under section 256B.0625, subdivision 7; and
427.12(9) community first services and supports under section 256B.85.
427.13    Subd. 3. Premiums and cost-sharing. For children who are eligible under
427.14subdivision 1, the premium and cost-sharing provisions of the MinnesotaCare program
427.15apply.
427.16    Subd. 4. Service delivery. (a) The commissioner may contract with managed care
427.17plans, county-based purchasing plans, provider networks, nonprofit coverage programs,
427.18counties, or health care delivery systems established under section 256B.0755 or
427.19256B.0756 to administer the program authorized under this section in order to control the
427.20costs of the program through care coordination, limited provider networks, fee discounts,
427.21and other methods. The commissioner may delegate to a contractor the responsibility
427.22to perform case reviews and authorize payment. The commissioner may contract on
427.23a capitated or fixed budget basis under which the contractor shall be responsible for
427.24providing the covered services to eligible children within the limits of the capitation
427.25or budgeted amount. The commissioner may also contract using gain-sharing and
427.26risk-sharing methods authorized for demonstration projects established under sections
427.27256B.0755 and 256B.0756. If the commissioner contracts with a contractor under
427.28this subdivision, the commissioner may separate nursing facility services, home and
427.29community-based services, and pharmacy services from other covered services and may
427.30provide payment for these services under the commissioner's fee-for-service payment
427.31system instead of payment to the contracted entity.
427.32(b) If no qualified contractors are available and willing to contract on alternative
427.33payment terms in a geographic area of the state, the commissioner shall administer the
427.34program as a fee-for-service program in that area, but may establish additional utilization
427.35review and care management programs and requirements in order to control the costs
427.36of the program.
428.1(c) The commissioner shall ensure that an eligible child is provided the opportunity
428.2to receive covered services from any essential community provider, as defined in section
428.362Q.19, and that the terms of participation of the essential community provider are in
428.4conformance with the requirements of section 62Q.19.

428.5    Sec. 33. Laws 2013, chapter 108, article 1, section 24, the effective date, is amended to
428.6read:
428.7EFFECTIVE DATE.This section is effective January July 1, 2014.

428.8    Sec. 34. FEDERAL AUTHORITY; EMERGENCY MEDICAL ASSISTANCE
428.9PROGRAM.
428.10The commissioner shall seek federal authority to make changes to the emergency
428.11medical assistance program established under Minnesota Statutes, section 256B.06,
428.12subdivision 4, paragraphs (e) to (h), to allow coverage and payment for cost-effective
428.13community-based and outpatient services as an alternative to hospital inpatient and
428.14emergency department services in order to reduce the total cost of care.
428.15EFFECTIVE DATE.This section is effective the day following final enactment.

428.16    Sec. 35. ORAL HEALTH DELIVERY AND REIMBURSEMENT SYSTEM.
428.17(a) The commissioner of human services, in consultation with the commissioner of
428.18health, shall convene a work group to develop a new delivery and reimbursement system
428.19for oral health and dental services that are provided to enrollees of the state public health
428.20care programs. The new system must ensure cost-effective delivery and an increase in
428.21access to services.
428.22(b) The commissioner shall consult with dental providers enrolled in the state public
428.23health programs, including providers who serve substantial numbers of low-income
428.24and uninsured patients and are currently receiving critical access dental payments;
428.25private practicing dentists; nonprofit community clinics; managed care and county-based
428.26purchasing plans; and health plan companies that provide either directly or through
428.27contracts with providers dental services to enrollees of state public health care programs.
428.28(c) The commissioner shall submit a report containing the proposed delivery and
428.29reimbursement system, including draft legislation to the chairs and ranking minority
428.30members of the legislative committees and divisions with jurisdiction over health and
428.31human services policy and finance by January 15, 2015.

429.1    Sec. 36. REPEALER.
429.2Minnesota Statutes 2012, sections 256.969, subdivisions 2c, 8b, 9a, 9b, 11, 13, 20,
429.321, 22, 26, 27, and 28; and 256.9695, subdivisions 3 and 4, are repealed effective October
429.41, 2014.

429.5ARTICLE 20

429.6HEALTH DEPARTMENT

429.7    Section 1. Minnesota Statutes 2012, section 144.1501, subdivision 1, is amended to read:
429.8    Subdivision 1. Definitions. (a) For purposes of this section, the following definitions
429.9apply.
429.10(b) "Dentist" means an individual who is licensed to practice dentistry.
429.11(c) "Designated rural area" means an area defined as a small rural area or
429.12isolated rural area according to the four category classifications of the Rural Urban
429.13Commuting Area system developed for the United States Health Resources and Services
429.14Administration a city or township that is:
429.15(1) outside the seven-county metropolitan area as defined in section 473.121,
429.16subdivision 2; and
429.17(2) has a population under 15,000.
429.18(d) "Emergency circumstances" means those conditions that make it impossible for
429.19the participant to fulfill the service commitment, including death, total and permanent
429.20disability, or temporary disability lasting more than two years.
429.21(e) "Medical resident" means an individual participating in a medical residency in
429.22family practice, internal medicine, obstetrics and gynecology, pediatrics, or psychiatry.
429.23(f) "Midlevel practitioner" means a nurse practitioner, nurse-midwife, nurse
429.24anesthetist, advanced clinical nurse specialist, or physician assistant.
429.25(g) "Nurse" means an individual who has completed training and received all
429.26licensing or certification necessary to perform duties as a licensed practical nurse or
429.27registered nurse.
429.28(h) "Nurse-midwife" means a registered nurse who has graduated from a program of
429.29study designed to prepare registered nurses for advanced practice as nurse-midwives.
429.30(i) "Nurse practitioner" means a registered nurse who has graduated from a program
429.31of study designed to prepare registered nurses for advanced practice as nurse practitioners.
429.32(j) "Pharmacist" means an individual with a valid license issued under chapter 151.
429.33(k) "Physician" means an individual who is licensed to practice medicine in the areas
429.34of family practice, internal medicine, obstetrics and gynecology, pediatrics, or psychiatry.
429.35(l) "Physician assistant" means a person licensed under chapter 147A.
430.1(m) "Qualified educational loan" means a government, commercial, or foundation
430.2loan for actual costs paid for tuition, reasonable education expenses, and reasonable living
430.3expenses related to the graduate or undergraduate education of a health care professional.
430.4(n) "Underserved urban community" means a Minnesota urban area or population
430.5included in the list of designated primary medical care health professional shortage areas
430.6(HPSAs), medically underserved areas (MUAs), or medically underserved populations
430.7(MUPs) maintained and updated by the United States Department of Health and Human
430.8Services.

430.9    Sec. 2. Minnesota Statutes 2012, section 144.551, subdivision 1, is amended to read:
430.10    Subdivision 1. Restricted construction or modification. (a) The following
430.11construction or modification may not be commenced:
430.12(1) any erection, building, alteration, reconstruction, modernization, improvement,
430.13extension, lease, or other acquisition by or on behalf of a hospital that increases the bed
430.14capacity of a hospital, relocates hospital beds from one physical facility, complex, or site
430.15to another, or otherwise results in an increase or redistribution of hospital beds within
430.16the state; and
430.17(2) the establishment of a new hospital.
430.18(b) This section does not apply to:
430.19(1) construction or relocation within a county by a hospital, clinic, or other health
430.20care facility that is a national referral center engaged in substantial programs of patient
430.21care, medical research, and medical education meeting state and national needs that
430.22receives more than 40 percent of its patients from outside the state of Minnesota;
430.23(2) a project for construction or modification for which a health care facility held
430.24an approved certificate of need on May 1, 1984, regardless of the date of expiration of
430.25the certificate;
430.26(3) a project for which a certificate of need was denied before July 1, 1990, if a
430.27timely appeal results in an order reversing the denial;
430.28(4) a project exempted from certificate of need requirements by Laws 1981, chapter
430.29200, section 2;
430.30(5) a project involving consolidation of pediatric specialty hospital services within
430.31the Minneapolis-St. Paul metropolitan area that would not result in a net increase in the
430.32number of pediatric specialty hospital beds among the hospitals being consolidated;
430.33(6) a project involving the temporary relocation of pediatric-orthopedic hospital beds
430.34to an existing licensed hospital that will allow for the reconstruction of a new philanthropic,
430.35pediatric-orthopedic hospital on an existing site and that will not result in a net increase in
431.1the number of hospital beds. Upon completion of the reconstruction, the licenses of both
431.2hospitals must be reinstated at the capacity that existed on each site before the relocation;
431.3(7) the relocation or redistribution of hospital beds within a hospital building or
431.4identifiable complex of buildings provided the relocation or redistribution does not result
431.5in: (i) an increase in the overall bed capacity at that site; (ii) relocation of hospital beds
431.6from one physical site or complex to another; or (iii) redistribution of hospital beds within
431.7the state or a region of the state;
431.8(8) relocation or redistribution of hospital beds within a hospital corporate system
431.9that involves the transfer of beds from a closed facility site or complex to an existing site
431.10or complex provided that: (i) no more than 50 percent of the capacity of the closed facility
431.11is transferred; (ii) the capacity of the site or complex to which the beds are transferred
431.12does not increase by more than 50 percent; (iii) the beds are not transferred outside of a
431.13federal health systems agency boundary in place on July 1, 1983; and (iv) the relocation or
431.14redistribution does not involve the construction of a new hospital building;
431.15(9) a construction project involving up to 35 new beds in a psychiatric hospital in
431.16Rice County that primarily serves adolescents and that receives more than 70 percent of its
431.17patients from outside the state of Minnesota;
431.18(10) a project to replace a hospital or hospitals with a combined licensed capacity
431.19of 130 beds or less if: (i) the new hospital site is located within five miles of the current
431.20site; and (ii) the total licensed capacity of the replacement hospital, either at the time of
431.21construction of the initial building or as the result of future expansion, will not exceed 70
431.22licensed hospital beds, or the combined licensed capacity of the hospitals, whichever is less;
431.23(11) the relocation of licensed hospital beds from an existing state facility operated
431.24by the commissioner of human services to a new or existing facility, building, or complex
431.25operated by the commissioner of human services; from one regional treatment center
431.26site to another; or from one building or site to a new or existing building or site on the
431.27same campus;
431.28(12) the construction or relocation of hospital beds operated by a hospital having a
431.29statutory obligation to provide hospital and medical services for the indigent that does not
431.30result in a net increase in the number of hospital beds, notwithstanding section 144.552, 27
431.31beds, of which 12 serve mental health needs, may be transferred from Hennepin County
431.32Medical Center to Regions Hospital under this clause;
431.33(13) a construction project involving the addition of up to 31 new beds in an existing
431.34nonfederal hospital in Beltrami County;
431.35(14) a construction project involving the addition of up to eight new beds in an
431.36existing nonfederal hospital in Otter Tail County with 100 licensed acute care beds;
432.1(15) a construction project involving the addition of 20 new hospital beds
432.2used for rehabilitation services in an existing hospital in Carver County serving the
432.3southwest suburban metropolitan area. Beds constructed under this clause shall not be
432.4eligible for reimbursement under medical assistance, general assistance medical care,
432.5or MinnesotaCare;
432.6(16) a project for the construction or relocation of up to 20 hospital beds for the
432.7operation of up to two psychiatric facilities or units for children provided that the operation
432.8of the facilities or units have received the approval of the commissioner of human services;
432.9(17) a project involving the addition of 14 new hospital beds to be used for
432.10rehabilitation services in an existing hospital in Itasca County;
432.11(18) a project to add 20 licensed beds in existing space at a hospital in Hennepin
432.12County that closed 20 rehabilitation beds in 2002, provided that the beds are used only
432.13for rehabilitation in the hospital's current rehabilitation building. If the beds are used for
432.14another purpose or moved to another location, the hospital's licensed capacity is reduced
432.15by 20 beds;
432.16(19) a critical access hospital established under section 144.1483, clause (9), and
432.17section 1820 of the federal Social Security Act, United States Code, title 42, section
432.181395i-4, that delicensed beds since enactment of the Balanced Budget Act of 1997, Public
432.19Law 105-33, to the extent that the critical access hospital does not seek to exceed the
432.20maximum number of beds permitted such hospital under federal law;
432.21(20) notwithstanding section 144.552, a project for the construction of a new hospital
432.22in the city of Maple Grove with a licensed capacity of up to 300 beds provided that:
432.23(i) the project, including each hospital or health system that will own or control the
432.24entity that will hold the new hospital license, is approved by a resolution of the Maple
432.25Grove City Council as of March 1, 2006;
432.26(ii) the entity that will hold the new hospital license will be owned or controlled by
432.27one or more not-for-profit hospitals or health systems that have previously submitted a
432.28plan or plans for a project in Maple Grove as required under section 144.552, and the
432.29plan or plans have been found to be in the public interest by the commissioner of health
432.30as of April 1, 2005;
432.31(iii) the new hospital's initial inpatient services must include, but are not limited
432.32to, medical and surgical services, obstetrical and gynecological services, intensive
432.33care services, orthopedic services, pediatric services, noninvasive cardiac diagnostics,
432.34behavioral health services, and emergency room services;
432.35(iv) the new hospital:
433.1(A) will have the ability to provide and staff sufficient new beds to meet the growing
433.2needs of the Maple Grove service area and the surrounding communities currently being
433.3served by the hospital or health system that will own or control the entity that will hold
433.4the new hospital license;
433.5(B) will provide uncompensated care;
433.6(C) will provide mental health services, including inpatient beds;
433.7(D) will be a site for workforce development for a broad spectrum of
433.8health-care-related occupations and have a commitment to providing clinical training
433.9programs for physicians and other health care providers;
433.10(E) will demonstrate a commitment to quality care and patient safety;
433.11(F) will have an electronic medical records system, including physician order entry;
433.12(G) will provide a broad range of senior services;
433.13(H) will provide emergency medical services that will coordinate care with regional
433.14providers of trauma services and licensed emergency ambulance services in order to
433.15enhance the continuity of care for emergency medical patients; and
433.16(I) will be completed by December 31, 2009, unless delayed by circumstances
433.17beyond the control of the entity holding the new hospital license; and
433.18(v) as of 30 days following submission of a written plan, the commissioner of health
433.19has not determined that the hospitals or health systems that will own or control the entity
433.20that will hold the new hospital license are unable to meet the criteria of this clause;
433.21(21) a project approved under section 144.553;
433.22(22) a project for the construction of a hospital with up to 25 beds in Cass County
433.23within a 20-mile radius of the state Ah-Gwah-Ching facility, provided the hospital's
433.24license holder is approved by the Cass County Board;
433.25(23) a project for an acute care hospital in Fergus Falls that will increase the bed
433.26capacity from 108 to 110 beds by increasing the rehabilitation bed capacity from 14 to 16
433.27and closing a separately licensed 13-bed skilled nursing facility; or
433.28(24) notwithstanding section 144.552, a project for the construction and expansion
433.29of a specialty psychiatric hospital in Hennepin County for up to 50 beds, exclusively for
433.30patients who are under 21 years of age on the date of admission. The commissioner
433.31conducted a public interest review of the mental health needs of Minnesota and the Twin
433.32Cities metropolitan area in 2008. No further public interest review shall be conducted for
433.33the construction or expansion project under this clause; or
433.34(25) a project for a 16-bed psychiatric hospital in the city of Thief River Falls, if
433.35the commissioner finds the project is in the public interest after the public interest review
433.36conducted under section 144.552 is complete.
434.1EFFECTIVE DATE.This section is effective the day following final enactment.

434.2    Sec. 3. [144.9513] HEALTHY HOUSING GRANTS.
434.3    Subdivision 1. Definitions. For purposes of this section and sections 144.9501 to
434.4144.9512, the following terms have the meanings given.
434.5(a) "Housing" means a room or group of rooms located within a dwelling forming
434.6a single habitable unit with facilities used or intended to be used for living, sleeping,
434.7cooking, and eating.
434.8(b) "Healthy housing" means housing that is sited, designed, built, renovated, and
434.9maintained in ways that supports the health of residents.
434.10(c) "Housing-based health threat" means a chemical, biologic, or physical agent in
434.11the immediate housing environment which constitutes a potential or actual hazard to
434.12human health at acute or chronic exposure levels.
434.13(d) "Primary prevention" means preventing exposure to housing-based health threats
434.14before seeing clinical symptoms or a diagnosis.
434.15(e) "Secondary prevention" means intervention to mitigate health effects on people
434.16with housing-based health threats.
434.17    Subd. 2. Grants; administration. Grant applicants shall submit applications to
434.18the commissioner as directed by a request for proposals. Grants must be competitively
434.19awarded and recipients of a grant under this section must prepare and submit a quarterly
434.20progress report to the commissioner beginning three months after receipt of the grant. The
434.21commissioner shall provide technical assistance and program support as needed to ensure
434.22that housing-based health threats are effectively identified, mitigated, and evaluated by
434.23grantees.
434.24    Subd. 3. Education and training grant; eligible activities. (a) Within the limits of
434.25available appropriations, the commissioner shall make grants to nonprofit organizations,
434.26community health boards, and community action agencies under section 256E.31 with
434.27expertise in providing outreach, education, and training on healthy homes subjects and in
434.28providing comprehensive healthy homes assessments and interventions to provide healthy
434.29housing education, training, and technical assistance services for persons engaged in
434.30addressing housing-based health threats and other individuals impacted by housing-based
434.31health threats.
434.32(b) The grantee may conduct the following activities:
434.33(1) implement and maintain primary prevention programs to reduce housing-based
434.34health threats that include the following:
435.1(i) providing education materials to the general public and to property owners,
435.2contractors, code officials, health care providers, public health professionals, health
435.3educators, nonprofit organizations, and other persons and organizations engaged in
435.4housing and health issues;
435.5(ii) promoting awareness of community, legal, and housing resources; and
435.6(iii) promoting the use of hazard reduction measures in new housing construction
435.7and housing rehabilitation programs;
435.8(2) provide training on identifying and addressing housing-based health threats;
435.9(3) provide technical assistance on the implementation of mitigation measures;
435.10(4) promote adoption of evidence-based best practices for mitigation of
435.11housing-based health threats; or
435.12(5) develop work practices for addressing specific housing-based health threats.
435.13    Subd. 4. Healthy homes implementation grant; eligible activities. Within the
435.14limits of available appropriations, the commissioner shall make grants to nonprofit
435.15organizations, community health boards, and community action agencies under section
435.16256E.31 to support implementation of healthy housing programs in local jurisdictions for
435.17any of the following activities:
435.18(1) identify, characterize, and mitigate hazards in housing that contribute to adverse
435.19health outcomes;
435.20(2) ensure screening services and other secondary prevention measures are provided
435.21to populations at high risk for housing-based health threats;
435.22(3) promote compliance with Department of Health guidelines and other best
435.23practices, as identified by the commissioner, for preventing or reducing housing-based
435.24health threats;
435.25(4) establish local or regional collaborative groups to ensure that resources for
435.26addressing housing-based health threats are coordinated; or
435.27(5) develop model programs for addressing housing-based health threats.

435.28    Sec. 4. [144A.484] INTEGRATED LICENSURE; HOME AND
435.29COMMUNITY-BASED SERVICES DESIGNATION.
435.30    Subdivision 1. Integrated licensing established. (a) From January 1, 2014, to
435.31June 30, 2015, the commissioner of health shall enforce the home and community-based
435.32services standards under chapter 245D for those providers who also have a home care
435.33license pursuant to this chapter as required under Laws 2013, chapter 108, article 8, section
435.3460, and article 11, section 31. During this period, the commissioner shall provide technical
435.35assistance to achieve and maintain compliance with applicable law or rules governing the
436.1provision of home and community-based services, including complying with the service
436.2recipient rights notice in subdivision 4, clause (4). If during the survey, the commissioner
436.3finds that the licensee has failed to achieve compliance with an applicable law or rule
436.4under chapter 245D and this failure does not imminently endanger the health, safety, or
436.5rights of the persons served by the program, the commissioner may issue a licensing
436.6survey report with recommendations for achieving and maintaining compliance.
436.7(b) Beginning July 1, 2015, a home care provider applicant or license holder may
436.8apply to the commissioner of health for a home and community-based services designation
436.9for the provision of basic support services identified under section 245D.03, subdivision 1,
436.10paragraph (b). The designation allows the license holder to provide basic support services
436.11that would otherwise require licensure under chapter 245D, under the license holder's
436.12home care license governed by sections 144A.43 to 144A.481.
436.13    Subd. 2. Application for home and community-based services designation. An
436.14application for a home and community-based services designation must be made on the
436.15forms and in the manner prescribed by the commissioner. The commissioner shall provide
436.16the applicant with instruction for completing the application and provide information
436.17about the requirements of other state agencies that affect the applicant. Application for
436.18the home and community-based services designation is subject to the requirements under
436.19section 144A.473.
436.20    Subd. 3. Home and community-based services designation fees. A home care
436.21provider applicant or licensee applying for the home and community-based services
436.22designation or renewal of a home and community-based services designation must submit
436.23a fee in the amount specified in subdivision 8.
436.24    Subd. 4. Applicability of home and community-based services requirements. A
436.25home care provider with a home and community-based services designation must comply
436.26with the requirements for home care services governed by this chapter. For the provision
436.27of basic support services, the home care provider must also comply with the following
436.28home and community-based services licensing requirements:
436.29(1) service planning and delivery requirements in section 245D.07;
436.30(2) protection standards in section 245D.06;
436.31(3) emergency use of manual restraints in section 245D.061; and
436.32(4) protection-related rights in section 245D.04, subdivision 3, paragraph (a), clauses
436.33(5), (7), (8), (12), and (13), and paragraph (b).
436.34A home care provider with the integrated license-home and community-based services
436.35designation may utilize a bill of rights which incorporates the service recipient rights in
437.1section 245D.04, subdivision 3, paragraph (a), clauses (5), (7), (8), (12), and (13), and
437.2paragraph (b) with the home care bill of rights in section 144A.44.
437.3    Subd. 5. Monitoring and enforcement. (a) The commissioner shall monitor for
437.4compliance with the home and community-based services requirements identified in
437.5subdivision 4, in accordance with this section and any agreements by the commissioners
437.6of health and human services.
437.7(b) The commissioner shall enforce compliance with applicable home and
437.8community-based services licensing requirements as follows:
437.9(1) the commissioner may deny a home and community-based services designation
437.10in accordance with section 144A.473 or 144A.475; and
437.11(2) if the commissioner finds that the applicant or license holder has failed to comply
437.12with the applicable home and community-based services designation requirements, the
437.13commissioner may issue:
437.14(i) a correction order in accordance with section 144A.474;
437.15(ii) an order of conditional license in accordance with section 144A.475;
437.16(iii) a sanction in accordance with section 144A.475; or
437.17(iv) any combination of clauses (i) to (iii).
437.18    Subd. 6. Appeals. A home care provider applicant that has been denied a temporary
437.19license will also be denied their application for the home and community-based services
437.20designation. The applicant may request reconsideration in accordance with section
437.21144A.473, subdivision 3. A licensed home care provider whose application for a home
437.22and community-based services designation has been denied or whose designation has been
437.23suspended or revoked may appeal the denial, suspension, revocation, or refusal to renew a
437.24home and community-based services designation in accordance with section 144A.475.
437.25A license holder may request reconsideration of a correction order in accordance with
437.26section 144A.474, subdivision 12.
437.27    Subd. 7. Agreements. The commissioners of health and human services shall enter
437.28into any agreements necessary to implement this section.
437.29    Subd. 8. Fees; home and community-based services designation. (a) The
437.30initial fee for a home and community-based services designation is $155. A home care
437.31provider renewing the home and community-based services designation must pay an
437.32annual nonrefundable fee, in addition to the annual home care license fee, according to the
437.33following schedule and based on revenues from the home and community-based services
437.34that require licensure under chapter 245D during the calendar year immediately preceding
437.35the year in which the license fee is paid:

438.1 438.2	Provider Annual Revenue from HCBS	HCBS Designation
438.3	greater than $1,500,000	$320
438.4	greater than $1,275,000 and no more than $1,500,000	$300
438.5	greater than $1,100,000 and no more than $1,275,000	$280
438.6	greater than $950,000 and no more than $1,100,000	$260
438.7	greater than $850,000 and no more than $950,000	$240
438.8	greater than $750,000 and no more than $850,000	$220
438.9	greater than $650,000 and no more than $750,000	$200
438.10	greater than $550,000 and no more than $650,000	$180
438.11	greater than $450,000 and no more than $550,000	$160
438.12	greater than $350,000 and no more than $450,000	$140
438.13	greater than $250,000 and no more than $350,000	$120
438.14	greater than $100,000 and no more than $250,000	$100
438.15	greater than $50,000 and no more than $100,000	$80
438.16	greater than $25,000 and no more than $50,000	$60
438.17	no more than $25,000	$40

438.18(b) Fees and penalties collected under this section shall be deposited in the state
438.19treasury and credited to the state government special revenue fund.
438.20EFFECTIVE DATE.Minnesota Statutes, section 144A.484, subdivisions 2 to 8,
438.21are effective July 1, 2015.

438.22    Sec. 5. Minnesota Statutes 2013 Supplement, section 145.4716, subdivision 2, is
438.23amended to read:
438.24    Subd. 2. Duties of director. The director of child sex trafficking prevention is
438.25responsible for the following:
438.26    (1) developing and providing comprehensive training on sexual exploitation of
438.27youth for social service professionals, medical professionals, public health workers, and
438.28criminal justice professionals;
438.29    (2) collecting, organizing, maintaining, and disseminating information on sexual
438.30exploitation and services across the state, including maintaining a list of resources on the
438.31Department of Health Web site;
438.32    (3) monitoring and applying for federal funding for antitrafficking efforts that may
438.33benefit victims in the state;
438.34    (4) managing grant programs established under sections 145.4716 to 145.4718;
438.35    (5) managing the request for proposals for grants for comprehensive services,
438.36including trauma-informed, culturally specific services;
439.1    (6) identifying best practices in serving sexually exploited youth, as defined in
439.2section 260C.007, subdivision 31;
439.3    (6) (7) providing oversight of and technical support to regional navigators pursuant
439.4to section 145.4717;
439.5    (7) (8) conducting a comprehensive evaluation of the statewide program for safe
439.6harbor of sexually exploited youth; and
439.7    (8) (9) developing a policy consistent with the requirements of chapter 13 for sharing
439.8data related to sexually exploited youth, as defined in section 260C.007, subdivision 31,
439.9among regional navigators and community-based advocates.

439.10    Sec. 6. Minnesota Statutes 2013 Supplement, section 256B.04, subdivision 21, is
439.11amended to read:
439.12    Subd. 21. Provider enrollment. (a) If the commissioner or the Centers for
439.13Medicare and Medicaid Services determines that a provider is designated "high-risk," the
439.14commissioner may withhold payment from providers within that category upon initial
439.15enrollment for a 90-day period. The withholding for each provider must begin on the date
439.16of the first submission of a claim.
439.17(b) An enrolled provider that is also licensed by the commissioner under chapter
439.18245A, or is also licensed as a home-care provider by the Department of Health under
439.19chapter 144A and has a home and community-based services designation on the home care
439.20license under section 144A.484, must designate an individual as the entity's compliance
439.21officer. The compliance officer must:
439.22(1) develop policies and procedures to assure adherence to medical assistance laws
439.23and regulations and to prevent inappropriate claims submissions;
439.24(2) train the employees of the provider entity, and any agents or subcontractors of
439.25the provider entity including billers, on the policies and procedures under clause (1);
439.26(3) respond to allegations of improper conduct related to the provision or billing of
439.27medical assistance services, and implement action to remediate any resulting problems;
439.28(4) use evaluation techniques to monitor compliance with medical assistance laws
439.29and regulations;
439.30(5) promptly report to the commissioner any identified violations of medical
439.31assistance laws or regulations; and
439.32    (6) within 60 days of discovery by the provider of a medical assistance
439.33reimbursement overpayment, report the overpayment to the commissioner and make
439.34arrangements with the commissioner for the commissioner's recovery of the overpayment.
440.1The commissioner may require, as a condition of enrollment in medical assistance, that a
440.2provider within a particular industry sector or category establish a compliance program that
440.3contains the core elements established by the Centers for Medicare and Medicaid Services.
440.4(c) The commissioner may revoke the enrollment of an ordering or rendering
440.5provider for a period of not more than one year, if the provider fails to maintain and, upon
440.6request from the commissioner, provide access to documentation relating to written orders
440.7or requests for payment for durable medical equipment, certifications for home health
440.8services, or referrals for other items or services written or ordered by such provider, when
440.9the commissioner has identified a pattern of a lack of documentation. A pattern means a
440.10failure to maintain documentation or provide access to documentation on more than one
440.11occasion. Nothing in this paragraph limits the authority of the commissioner to sanction a
440.12provider under the provisions of section 256B.064.
440.13(d) The commissioner shall terminate or deny the enrollment of any individual or
440.14entity if the individual or entity has been terminated from participation in Medicare or
440.15under the Medicaid program or Children's Health Insurance Program of any other state.
440.16(e) As a condition of enrollment in medical assistance, the commissioner shall
440.17require that a provider designated "moderate" or "high-risk" by the Centers for Medicare
440.18and Medicaid Services or the commissioner permit the Centers for Medicare and Medicaid
440.19Services, its agents, or its designated contractors and the state agency, its agents, or its
440.20designated contractors to conduct unannounced on-site inspections of any provider location.
440.21The commissioner shall publish in the Minnesota Health Care Program Provider Manual a
440.22list of provider types designated "limited," "moderate," or "high-risk," based on the criteria
440.23and standards used to designate Medicare providers in Code of Federal Regulations, title
440.2442, section 424.518. The list and criteria are not subject to the requirements of chapter 14.
440.25The commissioner's designations are not subject to administrative appeal.
440.26(f) As a condition of enrollment in medical assistance, the commissioner shall
440.27require that a high-risk provider, or a person with a direct or indirect ownership interest in
440.28the provider of five percent or higher, consent to criminal background checks, including
440.29fingerprinting, when required to do so under state law or by a determination by the
440.30commissioner or the Centers for Medicare and Medicaid Services that a provider is
440.31designated high-risk for fraud, waste, or abuse.
440.32(g)(1) Upon initial enrollment, reenrollment, and revalidation, all durable medical
440.33equipment, prosthetics, orthotics, and supplies (DMEPOS) suppliers operating in
440.34Minnesota and receiving Medicaid funds must purchase a surety bond that is annually
440.35renewed and designates the Minnesota Department of Human Services as the obligee, and
440.36must be submitted in a form approved by the commissioner.
441.1(2) At the time of initial enrollment or reenrollment, the provider agency must
441.2purchase a performance bond of $50,000. If a revalidating provider's Medicaid revenue
441.3in the previous calendar year is up to and including $300,000, the provider agency must
441.4purchase a performance bond of $50,000. If a revalidating provider's Medicaid revenue
441.5in the previous calendar year is over $300,000, the provider agency must purchase a
441.6performance bond of $100,000. The performance bond must allow for recovery of costs
441.7and fees in pursuing a claim on the bond.
441.8(h) The Department of Human Services may require a provider to purchase a
441.9performance surety bond as a condition of initial enrollment, reenrollment, reinstatement,
441.10or continued enrollment if: (1) the provider fails to demonstrate financial viability, (2) the
441.11department determines there is significant evidence of or potential for fraud and abuse by
441.12the provider, or (3) the provider or category of providers is designated high-risk pursuant
441.13to paragraph (a) and as per Code of Federal Regulations, title 42, section 455.450. The
441.14performance bond must be in an amount of $100,000 or ten percent of the provider's
441.15payments from Medicaid during the immediately preceding 12 months, whichever is
441.16greater. The performance bond must name the Department of Human Services as an
441.17obligee and must allow for recovery of costs and fees in pursuing a claim on the bond.

441.18    Sec. 7. HEALTH CARE GRANTS FOR THE UNINSURED.
441.19    Subdivision 1. Dental providers. (a) A dental provider is eligible for a grant under
441.20this section if the provider is:
441.21(1) a nonprofit organization not affiliated with a hospital or medical group that
441.22offers free or reduced-cost oral health care to low-income patients with incomes below
441.23200 percent of the federal poverty guideline who do not have insurance coverage for
441.24oral health care services;
441.25(2) eligible for critical access dental provider payments under Minnesota Statutes,
441.26section 256B.76, subdivision 4; and
441.27(3) more than 80 percent of dental provider's patient encounters per year are with
441.28patients who are uninsured or covered by medical assistance or MinnesotaCare.
441.29(b) Grants shall be distributed by the commissioner of health to each eligible
441.30provider based on the proportion of that provider's number of low-income uninsured
441.31patients served in the reporting year to the total number of low-income uninsured patients
441.32served by all eligible providers, except that no single eligible provider shall receive less
441.33than two percent or more than 30 percent of the total appropriation provided under this
441.34subdivision. If the number of eligible providers is such that the minimum of two percent
442.1cannot be provided to each eligible provider, the commissioner shall limit eligibility for
442.2the subsidy to the top 20 eligible oral health providers.
442.3    Subd. 2. Community mental health programs. A community mental health
442.4program is eligible for a grant under this section if it is a community mental health center
442.5established under Minnesota Statutes, section 245.62, or a nonprofit community mental
442.6health clinic that is designated as an essential community provider under Minnesota
442.7Statutes, section 62Q.19, and the center or clinic offers free or reduced-cost mental health
442.8care to low-income patients with incomes below 200 percent of the federal poverty
442.9guideline who do not have health insurance coverage. The grants shall be distributed by
442.10the commissioner of health to each eligible mental health center or clinic based on the
442.11proportion of that mental health center's or clinic's number of low-income uninsured
442.12patients served in the reporting year to the total number of low-income uninsured patients
442.13served by all mental health centers and clinics eligible for a grant under this subdivision,
442.14except that no single eligible provider shall receive less than two percent or more than 30
442.15percent of the total appropriation provided under this subdivision.
442.16    Subd. 3. Emergency medical assistance outlier grant program. (a) The
442.17commissioner of health shall establish a grant program for hospitals for the purposes of
442.18defraying underpayments associated with the emergency medical assistance program.
442.19Grants shall be made for the services provided between July 1, 2014, and June 30, 2015,
442.20to an individual who is enrolled in emergency medical assistance, and when emergency
442.21medical assistance reimbursement is in excess of $50,000.
442.22(b) Hospitals seeking a grant from this program must submit an application that
442.23includes the number and dollar amount of hospital claims for emergency medical
442.24assistance in excess of $150,000 to the commissioner in a form prescribed by the
442.25commissioner. Grant payments shall be in proportion to the total hospital emergency
442.26medical assistance claims submitted by all applicant hospitals. Claims for inpatient
442.27hospital, outpatient services, and hospital emergency department services shall be
442.28considered when determining the value of the grants.
442.29    Subd. 4. Grant process. The commissioner of health may use data submitted
442.30by organizations seeking a grant under this section, without further verification, for
442.31purposes of determining eligibility for a grant and allocating grant money among eligible
442.32organizations. The chief executive or chief financial officer must certify that the data
442.33submitted is accurate and that no changes were made in the organization's accounting and
442.34record-keeping practices or policies for providing free or reduced cost care to uninsured
442.35patients for the purpose of creating eligibility or increasing the organization's allocation.
442.36The commissioner may audit or verify the data submitted. Grant funds must be used to
443.1defray the organization's costs of providing care and services to uninsured patients with
443.2incomes below 200 percent of the federal poverty guidelines. An organization must not
443.3receive more than one grant under subdivisions 1, 2, or 3, even though the organization is
443.4potentially eligible for a grant under two or more subdivisions. Organizations eligible for
443.5a grant under this section may join together to submit a combined application provided the
443.6data submitted is certified by each individual organization.

443.7    Sec. 8. QUALITY TRANSPARENCY.
443.8(a) The commissioner of health shall develop an implementation plan for stratifying
443.9measures based on disability, race, ethnicity, language, and other sociodemographic factors
443.10that are correlated with health disparities and impact performance on quality measures.
443.11The plan must be designed so that quality measures can be stratified beginning January 1,
443.122017, in order to advance work aimed at identifying and eliminating health disparities.
443.13By January 15, 2015, the commissioner shall submit a report to the chairs and ranking
443.14minority members of the senate and house of representatives committees and divisions
443.15with jurisdiction on health and human services and finance with the plan, including an
443.16estimated budget, timeline, and processes to be used for implementation.
443.17(b) The commissioner of health shall assess the risk adjustment methodology
443.18established under Minnesota Statutes, section 62U.02, subdivision 3, for the potential
443.19for harm and unintended consequences for patient populations who experience health
443.20disparities, and the providers who serve them, and identify changes that may be needed
443.21to alleviate harm and unintended consequences. By January 15, 2016, the commissioner
443.22shall submit a report to the chairs and ranking minority members of the senate and house
443.23of representatives committees and divisions with jurisdiction on health and human
443.24services and finance with the result of the assessment of the risk-adjustment methodology
443.25and any recommended changes.
443.26(c) The commissioner shall develop the plan described in paragraph (a), in
443.27consultation with consumer, community and advocacy organizations representing diverse
443.28communities; health plan companies; providers; quality measurement organizations; and
443.29safety net providers that primarily serve communities and patient populations with health
443.30disparities. The commissioner shall use culturally appropriate methods of consultation and
443.31engagement with consumer and advocacy organizations led by and representing diverse
443.32communities by race, ethnicity, language, and sociodemographic factors.

443.33    Sec. 9. STUDY AND REPORT ABOUT CLIENT BILLS OF RIGHTS.
444.1The commissioner of health shall consult with Aging Services of Minnesota, Care
444.2Providers of Minnesota, Minnesota Home Care Association, the commissioner of human
444.3services, the Office of the Ombudsman for Long-Term Care, and other stakeholders to
444.4evaluate and determine how to streamline the requirements related to the clients' rights in
444.5Minnesota Statutes, sections 144A.44, 144A.441, and 245D.04, for applicable providers,
444.6while assuring and maintaining the health and safety of clients. The evaluation must
444.7consider the federal client bill of rights requirements for Medicare-certified home care
444.8providers. The evaluation must determine if there are duplications or conflicts of client
444.9rights, evaluate how to reduce the complexity of the requirements related to clients' rights
444.10for providers and consumers, determine which rights must be included in a consolidated
444.11client bill of rights document, and develop options to inform consumers of their rights.
444.12The commissioner shall report to the chairs and ranking minority members of the health
444.13and human services committees of the legislature no later than February 15, 2015, and
444.14include any recommendations for legislative changes.

444.15ARTICLE 21

444.16PUBLIC ASSISTANCE SIMPLIFICATION

444.17    Section 1. Minnesota Statutes 2012, section 254B.04, subdivision 3, is amended to read:
444.18    Subd. 3. Amount of contribution. The commissioner shall adopt a sliding fee scale
444.19to determine the amount of contribution to be required from persons under this section.
444.20The commissioner may adopt rules to amend existing fee scales. The commissioner
444.21may establish a separate fee scale for recipients of chemical dependency transitional and
444.22extended care rehabilitation services that provides for the collection of fees for board and
444.23lodging expenses. The fee schedule shall ensure that employed persons are allowed the
444.24income disregards and savings accounts that are allowed residents of community mental
444.25illness facilities under section 256D.06, subdivisions subdivision 1 and 1b. The fee scale
444.26must not provide assistance to persons whose income is more than 115 percent of the
444.27state median income. Payments of liabilities under this section are medical expenses for
444.28purposes of determining spenddown under sections 256B.055, 256B.056, 256B.06, and
444.29256D.01 to 256D.21. The required amount of contribution established by the fee scale in
444.30this subdivision is also the cost of care responsibility subject to collection under section
444.31254B.06, subdivision 1 .
444.32EFFECTIVE DATE.This section is effective October 1, 2015.

444.33    Sec. 2. Minnesota Statutes 2012, section 256D.02, subdivision 8, is amended to read:
445.1    Subd. 8. Income. "Income" means any form of income, including remuneration
445.2for services performed as an employee and net earnings earned income from rental
445.3income and self-employment earnings, reduced by the amount attributable to employment
445.4expenses as defined by the commissioner. The amount attributable to employment
445.5expenses shall include amounts paid or withheld for federal and state personal income
445.6taxes and federal Social Security taxes as described under section 256P.05.
445.7Income includes any payments received as an annuity, retirement, or disability
445.8benefit, including veteran's or workers' compensation; old age, survivors, and disability
445.9insurance; railroad retirement benefits; unemployment benefits; and benefits under any
445.10federally aided categorical assistance program, supplementary security income, or other
445.11assistance program; rents, dividends, interest and royalties; and support and maintenance
445.12payments. Such payments may not be considered as available to meet the needs of any
445.13person other than the person for whose benefit they are received, unless that person is
445.14a family member or a spouse and the income is not excluded under section 256D.01,
445.15subdivision 1a . Goods and services provided in lieu of cash payment shall be excluded
445.16from the definition of income, except that payments made for room, board, tuition or
445.17fees by a parent, on behalf of a child enrolled as a full-time student in a postsecondary
445.18institution, and payments made on behalf of an applicant or recipient participant which
445.19the applicant or recipient participant could legally demand to receive personally in cash,
445.20must be included as income. Benefits of an applicant or recipient participant, such as those
445.21administered by the Social Security Administration, that are paid to a representative
445.22payee, and are spent on behalf of the applicant or recipient participant, are considered
445.23available income of the applicant or recipient participant.
445.24EFFECTIVE DATE.This section is effective February 1, 2015.

445.25    Sec. 3. Minnesota Statutes 2012, section 256D.02, subdivision 12, is amended to read:
445.26    Subd. 12. County Agency. "County agency" means the agency designated by the
445.27county board of commissioners, human services boards, local social services agencies
445.28in the several counties of the state or multicounty local social services agencies or
445.29departments where those have been established in accordance with law "Agency" has the
445.30meaning given in section 256P.01, subdivision 2.

445.31    Sec. 4. Minnesota Statutes 2012, section 256D.05, subdivision 5, is amended to read:
445.32    Subd. 5. Transfers of property. The equity value of real and personal property
445.33transferred without reasonable compensation within 12 months preceding the date of
445.34application for general assistance must be included in determining the resources of an
446.1assistance unit in the same manner as in the Minnesota family investment program under
446.2chapter 256J as described in section 256P.02, subdivision 1, paragraph (c).
446.3EFFECTIVE DATE.This section is effective January 1, 2016.

446.4    Sec. 5. Minnesota Statutes 2012, section 256D.06, subdivision 1, is amended to read:
446.5    Subdivision 1. Eligibility; amount of assistance. General assistance shall be
446.6granted in an amount that when added to the nonexempt income actually available to the
446.7assistance unit, the total amount equals the applicable standard of assistance for general
446.8assistance. In determining eligibility for and the amount of assistance for an individual or
446.9married couple, the county agency shall apply the earned income disregard the first $50 of
446.10earned income per month as determined in section 256P.03.
446.11EFFECTIVE DATE.This section is effective October 1, 2015.

446.12    Sec. 6. Minnesota Statutes 2012, section 256D.08, subdivision 1, is amended to read:
446.13    Subdivision 1. Eligibility; excluded resources. In determining eligibility of an
446.14assistance unit, the following resources shall be excluded:
446.15(1) real or personal property or liquid assets which do not exceed $1,000; and
446.16(2) other property which has been determined, according to limitations contained in
446.17rules promulgated by the commissioner, to be essential to the assistance unit as a means of
446.18self-support or self-care or which is producing income that is being used for the support
446.19of the assistance unit. The commissioner shall further provide by rule the conditions for
446.20those situations in which property not excluded under this subdivision may be retained by
446.21the assistance unit where there is a reasonable probability that in the foreseeable future the
446.22property will be used for the self-support of the assistance unit; and
446.23(3) payments, made according to litigation and subsequent appropriation by the
446.24United States Congress, of funds to compensate members of Indian tribes for the taking of
446.25tribal land by the federal government. To establish eligibility for general assistance under
446.26this chapter, an agency must use the procedures established in section 256P.02.
446.27EFFECTIVE DATE.This section is effective January 1, 2016.

446.28    Sec. 7. Minnesota Statutes 2012, section 256D.08, is amended by adding a subdivision
446.29to read:
446.30    Subd. 3. Verification. To verify eligibility for general assistance under this chapter,
446.31an agency must use the procedures established in section 256P.04.
447.1EFFECTIVE DATE.This section is effective February 1, 2015.

447.2    Sec. 8. Minnesota Statutes 2012, section 256D.10, is amended to read:
447.3256D.10 ADMINISTRATIVE HEARING PRIOR TO ADVERSE ACTION.
447.4No grant of general assistance except one made pursuant to section 256D.06,
447.5subdivision 2 ; or 256D.08, subdivision 2, shall be reduced, terminated, or suspended
447.6unless the recipient receives notice and is afforded an opportunity to be heard prior to
447.7any action by the county agency.
447.8Nothing herein shall deprive a recipient of the right to full administrative and judicial
447.9review of an order or determination of a county agency as provided for in section 256.045
447.10subsequent to any action taken by a county agency after a prior hearing.
447.11EFFECTIVE DATE.This section is effective January 1, 2016.

447.12    Sec. 9. Minnesota Statutes 2012, section 256D.405, subdivision 1, is amended to read:
447.13    Subdivision 1. Verification of information. The county agency shall request, and
447.14applicants and recipients shall provide and verify, all information necessary to determine
447.15initial and continuing eligibility and assistance payment amounts. If necessary, the county
447.16agency shall assist the applicant or recipient in obtaining verifications. If the applicant or
447.17recipient refuses or fails without good cause to provide the information or verification, the
447.18county agency shall deny or terminate assistance An agency must apply section 256P.04
447.19when documenting, verifying, and recertifying eligibility under this chapter. An agency
447.20must only require verification of information necessary to determine eligibility under this
447.21chapter and the amount of the assistance payment.
447.22EFFECTIVE DATE.This section is effective February 1, 2015.

447.23    Sec. 10. Minnesota Statutes 2012, section 256D.405, subdivision 3, is amended to read:
447.24    Subd. 3. Reports. Recipients Participants must report changes in circumstances that
447.25affect eligibility or assistance payment amounts within ten days of the change. Recipients
447.26 Participants who do not receive SSI because of excess income must complete a monthly
447.27report form if they have earned income, if they have income deemed to them from a
447.28financially responsible relative with whom the recipient participant resides, or if they have
447.29income deemed to them by a sponsor. If the report form is not received before the end of
447.30the month in which it is due, the county agency must terminate assistance. The termination
447.31shall be effective on the first day of the month following the month in which the report
447.32was due. If a complete report is received within the month the assistance was terminated,
448.1the assistance unit is considered to have continued its application for assistance, effective
448.2the first day of the month the assistance was terminated.
448.3EFFECTIVE DATE.This section is effective February 1, 2015.

448.4    Sec. 11. Minnesota Statutes 2012, section 256D.425, subdivision 2, is amended to read:
448.5    Subd. 2. Resource standards. (a) For persons receiving supplemental security
448.6income benefits, the resource standards and restrictions for supplemental aid under
448.7this section shall be those used to determine eligibility for disabled individuals in the
448.8supplemental security income program.
448.9(b) For persons not receiving supplemental security income benefits due to excess
448.10income or resources, but whose income and resources are within the limits of the Minnesota
448.11supplemental aid program, the resource standards shall be those in section 256P.02.
448.12EFFECTIVE DATE.This section is effective January 1, 2016.

448.13    Sec. 12. Minnesota Statutes 2012, section 256I.03, is amended by adding a subdivision
448.14to read:
448.15    Subd. 1a. Agency. "Agency" has the meaning given in section 256P.01, subdivision
448.162.

448.17    Sec. 13. Minnesota Statutes 2012, section 256I.04, subdivision 1, is amended to read:
448.18    Subdivision 1. Individual eligibility requirements. An individual is eligible for
448.19and entitled to a group residential housing payment to be made on the individual's behalf
448.20if the county agency has approved the individual's residence in a group residential housing
448.21setting and the individual meets the requirements in paragraph (a) or (b).
448.22(a) The individual is aged, blind, or is over 18 years of age and disabled as
448.23determined under the criteria used by the title II program of the Social Security Act, and
448.24meets the resource restrictions and standards of the supplemental security income program
448.25 section 256P.02, and the individual's countable income after deducting the (1) exclusions
448.26and disregards of the SSI program, (2) the medical assistance personal needs allowance
448.27under section 256B.35, and (3) an amount equal to the income actually made available to
448.28a community spouse by an elderly waiver recipient participant under the provisions of
448.29sections 256B.0575, paragraph (a), clause (4), and 256B.058, subdivision 2, is less than
448.30the monthly rate specified in the county agency's agreement with the provider of group
448.31residential housing in which the individual resides.
449.1(b) The individual meets a category of eligibility under section 256D.05, subdivision
449.21 , paragraph (a), and the individual's resources are less than the standards specified by
449.3section 256D.08 256P.02, and the individual's countable income as determined under
449.4sections 256D.01 to 256D.21, less the medical assistance personal needs allowance under
449.5section 256B.35 is less than the monthly rate specified in the county agency's agreement
449.6with the provider of group residential housing in which the individual resides.
449.7EFFECTIVE DATE.This section is effective January 1, 2016.

449.8    Sec. 14. Minnesota Statutes 2012, section 256J.08, is amended by adding a subdivision
449.9to read:
449.10    Subd. 2a. Agency. "Agency" has the meaning given in section 256P.01, subdivision
449.112.

449.12    Sec. 15. Minnesota Statutes 2012, section 256J.08, subdivision 47, is amended to read:
449.13    Subd. 47. Income. "Income" means cash or in-kind benefit, whether earned or
449.14unearned, received by or available to an applicant or participant that is not an asset
449.15 property under section 256J.20 256P.02.
449.16EFFECTIVE DATE.This section is effective January 1, 2016.

449.17    Sec. 16. Minnesota Statutes 2012, section 256J.08, subdivision 57, is amended to read:
449.18    Subd. 57. Minnesota family investment program or MFIP. "Minnesota family
449.19investment program" or "MFIP" means the assistance program authorized in this chapter
449.20and chapter 256K.

449.21    Sec. 17. Minnesota Statutes 2012, section 256J.08, subdivision 83, is amended to read:
449.22    Subd. 83. Significant change. "Significant change" means a decline in gross
449.23income of the amount of the disregard as defined in subdivision 24 section 256P.03 or
449.24more from the income used to determine the grant for the current month.
449.25EFFECTIVE DATE.This section is effective January 1, 2015.

449.26    Sec. 18. Minnesota Statutes 2012, section 256J.10, is amended to read:
449.27256J.10 MFIP ELIGIBILITY REQUIREMENTS.
450.1To be eligible for MFIP, applicants must meet the general eligibility requirements
450.2in sections 256J.11 to 256J.15, the property limitations in section 256J.20 256P.02, and
450.3the income limitations in section 256J.21.
450.4EFFECTIVE DATE.This section is effective January 1, 2016.

450.5    Sec. 19. Minnesota Statutes 2013 Supplement, section 256J.21, subdivision 3, is
450.6amended to read:
450.7    Subd. 3. Initial income test. The county agency shall determine initial eligibility
450.8by considering all earned and unearned income that is not excluded under subdivision 2.
450.9To be eligible for MFIP, the assistance unit's countable income minus the earned income
450.10disregards in paragraphs paragraph (a) and (b) section 256P.03 must be below the family
450.11wage level according to section 256J.24 for that size assistance unit.
450.12(a) The initial eligibility determination must disregard the following items:
450.13(1) the employment earned income disregard is 18 percent of the gross earned
450.14income whether or not the member is working full time or part time as determined in
450.15section 256P.03;
450.16(2) dependent care costs must be deducted from gross earned income for the actual
450.17amount paid for dependent care up to a maximum of $200 per month for each child less
450.18than two years of age, and $175 per month for each child two years of age and older under
450.19this chapter and chapter 119B;
450.20(3) all payments made according to a court order for spousal support or the support
450.21of children not living in the assistance unit's household shall be disregarded from the
450.22income of the person with the legal obligation to pay support, provided that, if there has
450.23been a change in the financial circumstances of the person with the legal obligation to pay
450.24support since the support order was entered, the person with the legal obligation to pay
450.25support has petitioned for a modification of the support order; and
450.26(4) an allocation for the unmet need of an ineligible spouse or an ineligible child
450.27under the age of 21 for whom the caregiver is financially responsible and who lives with
450.28the caregiver according to section 256J.36.
450.29(b) Notwithstanding paragraph (a), when determining initial eligibility for applicant
450.30units when at least one member has received MFIP in this state within four months of
450.31the most recent application for MFIP, apply the disregard as defined in section 256J.08,
450.32subdivision 24 , for all unit members.
450.33After initial eligibility is established, the assistance payment calculation is based on
450.34the monthly income test.
451.1EFFECTIVE DATE.This section is effective October 1, 2015.

451.2    Sec. 20. Minnesota Statutes 2012, section 256J.21, subdivision 4, is amended to read:
451.3    Subd. 4. Monthly income test and determination of assistance payment.
451.4The county agency shall determine ongoing eligibility and the assistance payment
451.5amount according to the monthly income test. To be eligible for MFIP, the result of the
451.6computations in paragraphs (a) to (e) must be at least $1.
451.7(a) Apply an income disregard as defined in section 256J.08, subdivision 24 256P.03,
451.8to gross earnings and subtract this amount from the family wage level. If the difference is
451.9equal to or greater than the MFIP transitional standard of need, the assistance payment is
451.10equal to the MFIP transitional standard of need. If the difference is less than the MFIP
451.11transitional standard of need, the assistance payment is equal to the difference. The
451.12employment earned income disregard in this paragraph must be deducted every month
451.13there is earned income.
451.14(b) All payments made according to a court order for spousal support or the support
451.15of children not living in the assistance unit's household must be disregarded from the
451.16income of the person with the legal obligation to pay support, provided that, if there has
451.17been a change in the financial circumstances of the person with the legal obligation to pay
451.18support since the support order was entered, the person with the legal obligation to pay
451.19support has petitioned for a modification of the court order.
451.20(c) An allocation for the unmet need of an ineligible spouse or an ineligible child
451.21under the age of 21 for whom the caregiver is financially responsible and who lives with
451.22the caregiver must be made according to section 256J.36.
451.23(d) Subtract unearned income dollar for dollar from the MFIP transitional standard
451.24of need to determine the assistance payment amount.
451.25(e) When income is both earned and unearned, the amount of the assistance payment
451.26must be determined by first treating gross earned income as specified in paragraph (a).
451.27After determining the amount of the assistance payment under paragraph (a), unearned
451.28income must be subtracted from that amount dollar for dollar to determine the assistance
451.29payment amount.
451.30(f) When the monthly income is greater than the MFIP transitional standard of need
451.31 after deductions and the income will only exceed the standard for one month, the county
451.32agency must suspend the assistance payment for the payment month.
451.33EFFECTIVE DATE.This section is effective October 1, 2015.

451.34    Sec. 21. Minnesota Statutes 2012, section 256J.30, subdivision 4, is amended to read:
452.1    Subd. 4. Participant's completion of recertification of eligibility form. A
452.2participant must complete forms prescribed by the commissioner which are required
452.3for recertification of eligibility according to section 256J.32, subdivision 6 256P.04,
452.4subdivisions 8 and 9.
452.5EFFECTIVE DATE.This section is effective February 1, 2015.

452.6    Sec. 22. Minnesota Statutes 2013 Supplement, section 256J.30, subdivision 9, is
452.7amended to read:
452.8    Subd. 9. Changes that must be reported. A caregiver must report the changes
452.9or anticipated changes specified in clauses (1) to (16) (15) within ten days of the date
452.10they occur, at the time of the periodic recertification of eligibility under section 256J.32,
452.11subdivision 6 256P.04, subdivisions 8 and 9, or within eight calendar days of a reporting
452.12period as in subdivision 5, whichever occurs first. A caregiver must report other changes
452.13at the time of the periodic recertification of eligibility under section 256J.32, subdivision
452.146 256P.04, subdivisions 8 and 9, or at the end of a reporting period under subdivision
452.155, as applicable. A caregiver must make these reports in writing to the county agency.
452.16When a county an agency could have reduced or terminated assistance for one or more
452.17payment months if a delay in reporting a change specified under clauses (1) to (15) (14)
452.18 had not occurred, the county agency must determine whether a timely notice under section
452.19256J.31, subdivision 4 , could have been issued on the day that the change occurred. When
452.20a timely notice could have been issued, each month's overpayment subsequent to that
452.21notice must be considered a client error overpayment under section 256J.38. Calculation
452.22of overpayments for late reporting under clause (16) (15) is specified in section 256J.09,
452.23subdivision 9 . Changes in circumstances which must be reported within ten days must
452.24also be reported on the MFIP household report form for the reporting period in which
452.25those changes occurred. Within ten days, a caregiver must report:
452.26(1) a change in initial employment;
452.27(2) a change in initial receipt of unearned income;
452.28(3) a recurring change in unearned income;
452.29(4) a nonrecurring change of unearned income that exceeds $30;
452.30(5) the receipt of a lump sum;
452.31(6) an increase in assets that may cause the assistance unit to exceed asset limits;
452.32(7) a change in the physical or mental status of an incapacitated member of the
452.33assistance unit if the physical or mental status is the basis for reducing the hourly
452.34participation requirements under section 256J.55, subdivision 1, or the type of activities
452.35included in an employment plan under section 256J.521, subdivision 2;
453.1(8) a change in employment status;
453.2(9) information affecting an exception under section 256J.24, subdivision 9;
453.3(10) (9) the marriage or divorce of an assistance unit member;
453.4(11) (10) the death of a parent, minor child, or financially responsible person;
453.5(12) (11) a change in address or living quarters of the assistance unit;
453.6(13) (12) the sale, purchase, or other transfer of property;
453.7(14) (13) a change in school attendance of a caregiver under age 20 or an employed
453.8child;
453.9(15) (14) filing a lawsuit, a workers' compensation claim, or a monetary claim
453.10against a third party; and
453.11(16) (15) a change in household composition, including births, returns to and
453.12departures from the home of assistance unit members and financially responsible persons,
453.13or a change in the custody of a minor child.
453.14EFFECTIVE DATE.This section is effective January 1, 2015.

453.15    Sec. 23. Minnesota Statutes 2012, section 256J.32, subdivision 1, is amended to read:
453.16    Subdivision 1. Verification of information. A county An agency must apply section
453.17256P.04 when documenting, verifying, and recertifying MFIP eligibility. An agency must
453.18only require verification of information necessary to determine MFIP eligibility and the
453.19amount of the assistance payment.
453.20EFFECTIVE DATE.This section is effective February 1, 2015.

453.21    Sec. 24. Minnesota Statutes 2012, section 256J.33, subdivision 2, is amended to read:
453.22    Subd. 2. Prospective eligibility. A county An agency must determine whether the
453.23eligibility requirements that pertain to an assistance unit, including those in sections
453.24256J.11 to 256J.15 and 256J.20 256P.02, will be met prospectively for the payment
453.25month. Except for the provisions in section 256J.34, subdivision 1, the income test will be
453.26applied retrospectively.
453.27EFFECTIVE DATE.This section is effective January 1, 2016.

453.28    Sec. 25. Minnesota Statutes 2012, section 256J.37, as amended by Laws 2013, chapter
453.29107, article 4, section 15, is amended to read:
453.30256J.37 TREATMENT OF INCOME AND LUMP SUMS.
454.1    Subdivision 1. Deemed income from ineligible household assistance unit
454.2 members. Unless otherwise provided under subdivision 1a or 1b, The income of ineligible
454.3household assistance unit members must be deemed after allowing the following disregards:
454.4(1) the first 18 percent of the ineligible family member's gross an earned income
454.5 disregard as determined under section 256P.03;
454.6(2) amounts the ineligible person actually paid to individuals not living in the
454.7same household but whom the ineligible person claims or could claim as dependents for
454.8determining federal personal income tax liability;
454.9(3) (2) all payments made by the ineligible person according to a court order for
454.10spousal support or the support of children not living in the assistance unit's household,
454.11provided that, if there has been a change in the financial circumstances of the ineligible
454.12person since the support order was entered, the ineligible person has petitioned for a
454.13modification of the support order; and
454.14(4) (3) an amount for the unmet needs of the ineligible person and other persons
454.15who live in the household but are not included in the assistance unit and are or could be
454.16claimed by an ineligible person as dependents for determining federal personal income
454.17tax liability who, if eligible, would be assistance unit members under section 256J.24,
454.18subdivision 2 or 4, paragraph (b). This amount is equal to the difference between the
454.19MFIP transitional standard of need when the ineligible person is persons are included in
454.20the assistance unit and the MFIP transitional standard of need when the ineligible person
454.21is persons are not included in the assistance unit.
454.22    Subd. 1a. Deemed income from disqualified assistance unit members. The
454.23income of disqualified members must be deemed after allowing the following disregards:
454.24(1) the first 18 percent of the disqualified member's gross an earned income disregard
454.25as determined under section 256P.03;
454.26(2) amounts the disqualified member actually paid to individuals not living in the
454.27same household but whom the disqualified member claims or could claim as dependents
454.28for determining federal personal income tax liability;
454.29(3) (2) all payments made by the disqualified member according to a court order for
454.30spousal support or the support of children not living in the assistance unit's household,
454.31provided that, if there has been a change in the financial circumstances of the disqualified
454.32member's legal obligation to pay support since the support order was entered, the
454.33disqualified member has petitioned for a modification of the support order; and
454.34(4) (3) an amount for the unmet needs of other ineligible persons who live in the
454.35household but are not included in the assistance unit and are or could be claimed by the
454.36disqualified member as dependents for determining federal personal income tax liability
455.1 who, if eligible, would be assistance unit members under section 256J.24, subdivision 2 or
455.24, paragraph (b). This amount is equal to the difference between the MFIP transitional
455.3standard of need when the ineligible person is persons are included in the assistance unit
455.4and the MFIP transitional standard of need when the ineligible person is persons are
455.5 not included in the assistance unit. An amount shall not be allowed for the needs of a
455.6 disqualified member members.
455.7    Subd. 1b. Deemed income from parents of minor caregivers. In households
455.8where minor caregivers live with a parent or parents who do not receive MFIP for
455.9themselves or their minor children, the income of the parents must be deemed after
455.10allowing the following disregards:
455.11(1) income of the parents equal to 200 percent of the federal poverty guideline for a
455.12family size not including the minor parent and the minor parent's child in the household
455.13according to section 256J.21, subdivision 2, clause (43); and
455.14(2) 18 percent of the parents' gross earned income;
455.15(3) amounts the parents actually paid to individuals not living in the same household
455.16but whom the parents claim or could claim as dependents for determining federal personal
455.17income tax liability; and
455.18(4) (2) all payments made by parents according to a court order for spousal support
455.19or the support of children not living in the parent's household, provided that, if there has
455.20been a change in the financial circumstances of the parent's legal obligation to pay support
455.21since the support order was entered, the parents have petitioned for a modification of
455.22the support order.
455.23    Subd. 2. Deemed income and assets of sponsor of noncitizens. (a) If a noncitizen
455.24applies for or receives MFIP, the county agency must deem the income and assets of the
455.25noncitizen's sponsor and the sponsor's spouse as provided in this paragraph and paragraph
455.26(b) or (c), whichever is applicable. The deemed income of a sponsor and the sponsor's
455.27spouse is considered unearned income of the noncitizen. The deemed assets of a sponsor
455.28and the sponsor's spouse are considered available assets of the noncitizen.
455.29(b) The income and assets of a sponsor who signed an affidavit of support under title
455.30IV, sections 421, 422, and 423, of Public Law 104-193, the Personal Responsibility and
455.31Work Opportunity Reconciliation Act of 1996, and the income and assets of the sponsor's
455.32spouse, must be deemed to the noncitizen to the extent required by those sections of
455.33Public Law 104-193.
455.34(c) The income and assets of a sponsor and the sponsor's spouse to whom the
455.35provisions of paragraph (b) do not apply must be deemed to the noncitizen to the full
456.1extent allowed under title V, section 5505, of Public Law 105-33, the Balanced Budget
456.2Act of 1997.
456.3    Subd. 3. Earned income of wage, salary, and contractual employees. The county
456.4 agency must include gross earned income less any disregards in the initial and monthly
456.5income test. Gross earned income received by persons employed on a contractual basis
456.6must be prorated over the period covered by the contract even when payments are received
456.7over a lesser period of time.
456.8    Subd. 3a. Rental subsidies; unearned income. (a) Effective July 1, 2003, the
456.9county agency shall count $50 of the value of public and assisted rental subsidies provided
456.10through the Department of Housing and Urban Development (HUD) as unearned income
456.11to the cash portion of the MFIP grant. The full amount of the subsidy must be counted as
456.12unearned income when the subsidy is less than $50. The income from this subsidy shall
456.13be budgeted according to section 256J.34.
456.14(b) The provisions of this subdivision shall not apply to an MFIP assistance unit
456.15which includes a participant who is:
456.16(1) age 60 or older;
456.17(2) a caregiver who is suffering from an illness, injury, or incapacity that has been
456.18certified by a qualified professional when the illness, injury, or incapacity is expected
456.19to continue for more than 30 days and severely limits the person's ability to obtain or
456.20maintain suitable employment; or
456.21(3) a caregiver whose presence in the home is required due to the illness or
456.22incapacity of another member in the assistance unit, a relative in the household, or a foster
456.23child in the household when the illness or incapacity and the need for the participant's
456.24presence in the home has been certified by a qualified professional and is expected to
456.25continue for more than 30 days.
456.26(c) The provisions of this subdivision shall not apply to an MFIP assistance unit
456.27where the parental caregiver is an SSI recipient participant.
456.28    Subd. 4. Self-employment. Self-employed individuals are those who are
456.29responsible for their own work schedule and do not have coverage under an employer's
456.30liability insurance or workers' compensation. Self-employed individuals generally work
456.31for themselves rather than an employer. However, individuals employed in some types of
456.32services may be self-employed even if they have an employer or work out of another's
456.33business location. For example, real estate sales people, individuals who work for
456.34commission sales, manufacturer's representatives, and independent contractors may be
456.35self-employed. Self-employed individuals may or may not have FICA deducted from the
456.36check issued to them by an employer or another party.
457.1Self-employed individuals may own a business singularly or in partnership.
457.2Individuals operating more than one self-employment business may use the loss from
457.3one business to offset self-employment income from another business. A loss from a
457.4self-employment business may not offset income earned under subdivision 3.
457.5Self-employment has the meaning given in section 256P.01, subdivision 7.
457.6    Subd. 5. Self-employment earnings. The county agency must determine
457.7self-employment income according to the following: section 256P.05, subdivision 2.
457.8(a) Subtract allowable business expenses from total gross receipts. Allowable
457.9business expenses include:
457.10(1) interest on mortgages and loans;
457.11(2) employee wages, except for persons who are part of the assistance unit or whose
457.12income is deemed to the participant;
457.13(3) FICA funds paid on employees' wages, payment of employee workers'
457.14compensation, and unemployment benefits;
457.15(4) livestock and veterinary or breeding fees;
457.16(5) raw material;
457.17(6) seed and fertilizer;
457.18(7) maintenance and repairs that are not capital expenditures;
457.19(8) tax return preparation fees;
457.20(9) license fees, professional fees, franchise fees, and professional dues;
457.21(10) tools and supplies that are not capital expenditures;
457.22(11) fuel and transportation expenses other than fuel costs covered by the flat rate
457.23transportation deduction;
457.24(12) advertising costs;
457.25(13) meals eaten when required to be away from the local work site;
457.26(14) property expenses such as rent, insurance, taxes, and utilities;
457.27(15) postage;
457.28(16) purchase cost of inventory at time of sale;
457.29(17) loss from another self-employment business;
457.30(18) attorney fees allowed by the Internal Revenue Service; and
457.31(19) tuition for classes necessary to maintain or improve job skills or required by
457.32law to maintain job status or salary as allowed by the Internal Revenue Service.
457.33(b) The county agency shall not allow a deduction for the following expenses:
457.34(1) purchases of capital assets;
457.35(2) payments on the principals of loans for capital assets;
457.36(3) depreciation;
458.1(4) amortization;
458.2(5) the wholesale costs of items purchased, processed, or manufactured which are
458.3unsold inventory;
458.4(6) transportation costs that exceed the maximum standard mileage rate allowed for
458.5use of a personal car in the Internal Revenue Code;
458.6(7) costs, in any amount, for mileage between an applicant's or participant's home
458.7and place of employment;
458.8(8) salaries and other employment deductions made for members of an assistance
458.9unit or persons who live in the household for whom an employer is legally responsible;
458.10(9) monthly expenses in excess of $71 for each roomer;
458.11(10) monthly expenses in excess of the Thrifty Food Plan amount for one person for
458.12each boarder. For purposes of this clause and clause (11), "Thrifty Food Plan" has the
458.13meaning given it in Code of Federal Regulations;
458.14(11) monthly expenses in excess of the roomer rate plus the Thrifty Food Plan
458.15amount for one person for each roomer-boarder. If there is more than one boarder or
458.16roomer-boarder, use the total number of boarders as the unit size to determine the Thrifty
458.17Food Plan amount;
458.18(12) an amount greater than actual expenses or two percent of the estimated market
458.19value on a county tax assessment form, whichever is greater, as a deduction for upkeep
458.20and repair against rental income;
458.21(13) expenses not allowed by the Internal Revenue Code;
458.22(14) expenses in excess of 60 percent of gross receipts for in-home child care unless
458.23a higher amount can be documented; and
458.24(15) expenses that are reimbursed under the child and adult care food program as
458.25authorized under the National School Lunch Act, United States Code, title 42.
458.26    Subd. 6. Self-employment budget period. The self-employment budget period
458.27begins in the month of application or in the first month of self-employment. Gross receipts
458.28must be budgeted in the month received. Expenses must be budgeted against gross
458.29receipts in the month the expenses are paid, except for paragraphs (a) to (c).
458.30(a) The purchase cost of inventory items, including materials which are processed
458.31or manufactured, must be deducted as an expense at the time payment is received for
458.32the sale of the inventory items.
458.33(b) A 12-month rolling average based on clauses (1) to (3) must be used to budget
458.34monthly income.
458.35(1) For a business in operation for at least 12 months, the county agency shall use
458.36the average monthly self-employment income from the most current income tax report for
459.1the 12 months before the month of application. The county agency shall determine a new
459.2monthly average by adding in the actual self-employment income and expenses from the
459.3previous month and dropping the first month from the averaging period.
459.4(2) For a business in operation for less than 12 months, the county agency shall
459.5compute the average for the number of months the business has been in operation to
459.6determine a monthly average. When data are available for 12 or more months, average
459.7monthly self-employment income is determined under clause (1).
459.8(3) If the business undergoes a major change, the county agency shall compute a new
459.9rolling average beginning with the first month of the major change. For the purpose of this
459.10clause, major change means a change that affects the nature and scale of the business and
459.11is not merely the result of normal business fluctuations.
459.12(c) For seasonal self-employment, the caregiver may choose whether to use actual
459.13income in the month of receipt and expenses in the month incurred or the rolling average
459.14method of computation. The choice must be made once per year at the time of application
459.15or recertification. For the purpose of this paragraph, seasonal means working six or less
459.16months per year.
459.17The agency must budget self-employment earned income according to section
459.18256P.05, subdivision 3.
459.19    Subd. 7. Farm income. Farm income is the difference between gross receipts
459.20and operating expenses. The county agency must not allow a deduction for expenses
459.21listed in subdivision 5, paragraph (b). Gross receipts include sales, rents, subsidies,
459.22soil conservation payments, production derived from livestock, and income from
459.23home-produced food Farm income shall be treated as self-employment income under
459.24section 256P.05, subdivision 2. The agency must budget farm income as self-employment
459.25earned income according to section 256P.05, subdivision 3.
459.26    Subd. 8. Rental income. The county agency must treat income from rental property
459.27as earned or unearned income. Income from rental property is unearned income unless the
459.28assistance unit spends an average of ten hours per week on maintenance or management
459.29of the property. When the owner spends more than ten hours per week on maintenance
459.30or repairs, the earnings are considered self-employment earnings. An amount must be
459.31deducted for upkeep and repairs, as specified in subdivision 5, paragraph (b), clause
459.32(12), real estate taxes, insurance, utilities, and interest on principal payments. When the
459.33applicant or participant lives on the rental property, expenses for upkeep, taxes, insurance,
459.34utilities, and interest must be divided by the number of rooms to determine expense per
459.35room and expenses deducted must be deducted only for the number of rooms rented
459.36 Rental income is subject to the requirements of section 256P.05.
460.1    Subd. 9. Unearned income. (a) The county agency must apply unearned income
460.2to the MFIP transitional standard of need. When determining the amount of unearned
460.3income, the county agency must deduct the costs necessary to secure payments of
460.4unearned income. These costs include legal fees, medical fees, and mandatory deductions
460.5such as federal and state income taxes.
460.6(b) The county agency must convert unearned income received on a periodic basis to
460.7monthly amounts by prorating the income over the number of months represented by the
460.8frequency of the payments. The county agency must begin counting the monthly amount
460.9in the month the periodic payment is received and budget it according to the assistance
460.10unit's budget cycle.
460.11    Subd. 10. Treatment of lump sums. (a) The county agency must treat lump-sum
460.12payments as earned or unearned income. If the lump-sum payment is included in the
460.13category of income identified in subdivision 9, it must be treated as unearned income. A
460.14lump sum is counted as income in the month received and budgeted either prospectively or
460.15retrospectively depending on the budget cycle at the time of receipt. When an individual
460.16receives a lump-sum payment, that lump sum must be combined with all other earned and
460.17unearned income received in the same budget month, and it must be applied according to
460.18paragraphs (a) to (c). A lump sum may not be carried over into subsequent months. Any
460.19funds that remain in the third month after the month of receipt are counted in the asset limit.
460.20(b) For a lump sum received by an applicant during the first two months, prospective
460.21budgeting is used to determine the payment and the lump sum must be combined with
460.22other earned or unearned income received and budgeted in that prospective month.
460.23(c) For a lump sum received by a participant after the first two months of MFIP
460.24eligibility, the lump sum must be combined with other income received in that budget
460.25month, and the combined amount must be applied retrospectively against the applicable
460.26payment month.
460.27(d) When a lump sum, combined with other income under paragraphs (b) and (c), is
460.28less than the MFIP transitional standard of need for the appropriate payment month, the
460.29assistance payment must be reduced according to the amount of the countable income.
460.30When the countable income is greater than the MFIP standard or family wage level, the
460.31assistance payment must be suspended for the payment month.
460.32EFFECTIVE DATE.The amendments to subdivisions 1, 1a, 1b, and 2 are effective
460.33October 1, 2015. The amendments to subdivisions 4, 5, 6, 7, and 8 are effective February
460.341, 2015. The amendments to subdivisions 9 and 10 are effective January 1, 2015.

460.35    Sec. 26. Minnesota Statutes 2012, section 256J.425, subdivision 1, is amended to read:
461.1    Subdivision 1. Eligibility. (a) To be eligible for a hardship extension, a participant
461.2in an assistance unit subject to the time limit under section 256J.42, subdivision 1, must
461.3be in compliance in the participant's 60th counted month. For purposes of determining
461.4eligibility for a hardship extension, a participant is in compliance in any month that the
461.5participant has not been sanctioned. In order to maintain eligibility for any of the hardship
461.6extension categories a participant shall develop and comply with either an employment
461.7plan or a family stabilization services plan, whichever is appropriate.
461.8    (b) If one participant in a two-parent assistance unit is determined to be ineligible for
461.9a hardship extension, the county shall give the assistance unit the option of disqualifying
461.10the ineligible participant from MFIP. In that case, the assistance unit shall be treated as a
461.11one-parent assistance unit and the assistance unit's MFIP grant shall be calculated using
461.12the shared household standard under section 256J.08, subdivision 82a.
461.13    (c) Prior to denying an extension, the county must review the sanction status and
461.14determine whether the sanction is appropriate or if good cause exists under section 256J.57.
461.15If the sanction was inappropriately applied or the participant is granted a good cause
461.16exception before the end of month 60, the participant shall be considered for an extension.
461.17EFFECTIVE DATE.This section is effective January 1, 2015.

461.18    Sec. 27. Minnesota Statutes 2012, section 256J.425, subdivision 7, is amended to read:
461.19    Subd. 7. Status of disqualified participants. (a) An assistance unit that is
461.20disqualified under subdivision 6, paragraph (a), may be approved for MFIP if the
461.21participant complies with MFIP program requirements and demonstrates compliance for
461.22up to one month. No assistance shall be paid during this period.
461.23(b) An assistance unit that is disqualified under subdivision 6, paragraph (a), and that
461.24reapplies under paragraph (a) is subject to sanction under section 256J.46, subdivision
461.251 , paragraph (c), clause (1), for a first occurrence of noncompliance. A subsequent
461.26occurrence of noncompliance results in a permanent disqualification.
461.27(c) If one participant in a two-parent assistance unit receiving assistance under a
461.28hardship extension under subdivision 3 or 4 is determined to be out of compliance with
461.29the employment and training services requirements under sections 256J.521 to 256J.57,
461.30the county shall give the assistance unit the option of disqualifying the noncompliant
461.31participant from MFIP. In that case, the assistance unit shall be treated as a one-parent
461.32assistance unit for the purposes of meeting the work requirements under subdivision
461.334 and the assistance unit's MFIP grant shall be calculated using the shared household
461.34standard under section 256J.08, subdivision 82a. An applicant who is disqualified
461.35from receiving assistance under this paragraph may reapply under paragraph (a). If a
462.1participant is disqualified from MFIP under this subdivision a second time, the participant
462.2is permanently disqualified from MFIP.
462.3(d) Prior to a disqualification under this subdivision, a county agency must review
462.4the participant's case to determine if the employment plan is still appropriate and attempt
462.5to meet with the participant face-to-face. If a face-to-face meeting is not conducted, the
462.6county agency must send the participant a notice of adverse action as provided in section
462.7256J.31 . During the face-to-face meeting, the county agency must:
462.8(1) determine whether the continued noncompliance can be explained and mitigated
462.9by providing a needed preemployment activity, as defined in section 256J.49, subdivision
462.1013 , clause (9);
462.11(2) determine whether the participant qualifies for a good cause exception under
462.12section 256J.57;
462.13(3) inform the participant of the family violence waiver criteria and make appropriate
462.14referrals if the waiver is requested;
462.15(4) inform the participant of the participant's sanction status and explain the
462.16consequences of continuing noncompliance;
462.17(5) identify other resources that may be available to the participant to meet the
462.18needs of the family; and
462.19(6) inform the participant of the right to appeal under section 256J.40.
462.20EFFECTIVE DATE.This section is effective January 1, 2015.

462.21    Sec. 28. Minnesota Statutes 2012, section 256J.95, subdivision 8, is amended to read:
462.22    Subd. 8. Verification requirements. (a) A county agency must only require
462.23verification of information necessary to determine DWP eligibility and the amount of
462.24the payment. The applicant or participant must document the information required or
462.25authorize the county agency to verify the information. The applicant or participant has the
462.26burden of providing documentary evidence to verify eligibility. The county agency shall
462.27assist the applicant or participant in obtaining required documents when the applicant
462.28or participant is unable to do so.
462.29(b) A county agency must not request information about an applicant or participant
462.30that is not a matter of public record from a source other than county agencies, the
462.31Department of Human Services, or the United States Department of Health and Human
462.32Services without the person's prior written consent. An applicant's signature on an
462.33application form constitutes consent for contact with the sources specified on the
462.34application. A county agency may use a single consent form to contact a group of similar
463.1sources, but the sources to be contacted must be identified by the county agency prior to
463.2requesting an applicant's consent.
463.3(c) Factors to be verified shall follow section 256J.32, subdivision 256P.04,
463.4subdivisions 4 and 5. Except for personal needs, family maintenance needs must be
463.5verified before the expense can be allowed in the calculation of the DWP grant.
463.6EFFECTIVE DATE.This section is effective February 1, 2015.

463.7    Sec. 29. Minnesota Statutes 2012, section 256J.95, subdivision 9, is amended to read:
463.8    Subd. 9. Property and income limitations. The asset limits and exclusions in
463.9section 256J.20 256P.02 apply to applicants and recipients participants of DWP. All
463.10payments, unless excluded in section 256J.21, must be counted as income to determine
463.11eligibility for the diversionary work program. The county agency shall treat income as
463.12outlined in section 256J.37, except for subdivision 3a. The initial income test and the
463.13disregards in section 256J.21, subdivision 3, shall be followed for determining eligibility
463.14for the diversionary work program.
463.15EFFECTIVE DATE.This section is effective January 1, 2016.

463.16    Sec. 30. Minnesota Statutes 2012, section 256J.95, subdivision 10, is amended to read:
463.17    Subd. 10. Diversionary work program grant. (a) The amount of cash benefits that
463.18a family unit is eligible for under the diversionary work program is based on the number
463.19of persons in the family unit, the family maintenance needs, personal needs allowance,
463.20and countable income. The county agency shall evaluate the income of the family unit
463.21that is requesting payments under the diversionary work program. Countable income
463.22means gross earned and unearned income not excluded or disregarded under MFIP.
463.23The same disregards for earned income that are allowed under MFIP are allowed for
463.24the diversionary work program.
463.25(b) The DWP grant is based on the family maintenance needs for which the DWP
463.26family unit is responsible plus a personal needs allowance. Housing and utilities, except
463.27for telephone service, shall be vendor paid. Unless otherwise stated in this section, actual
463.28housing and utility expenses shall be used when determining the amount of the DWP grant.
463.29(c) The maximum monthly benefit amount available under the diversionary work
463.30program is the difference between the family unit's needs under paragraph (b) and the
463.31family unit's countable income not to exceed the cash portion of the MFIP transitional
463.32standard of need as defined in section sections 256J.08, subdivision 55a 85, and 256J.24,
463.33subdivision 5, for the family unit's size.
464.1(d) Once the county has determined a grant amount, the DWP grant amount will
464.2not be decreased if the determination is based on the best information available at the
464.3time of approval and shall not be decreased because of any additional income to the
464.4family unit. The grant must be increased if a participant later verifies an increase in family
464.5maintenance needs or family unit size. The minimum cash benefit amount, if income and
464.6asset tests are met, is $10. Benefits of $10 shall not be vendor paid.
464.7(e) When all criteria are met, including the development of an employment plan as
464.8described in subdivision 14 and eligibility exists for the month of application, the amount
464.9of benefits for the diversionary work program retroactive to the date of application is as
464.10specified in section 256J.35, paragraph (a).
464.11(f) Any month during the four-month DWP period that a person receives a DWP
464.12benefit directly or through a vendor payment made on the person's behalf, that person is
464.13ineligible for MFIP or any other TANF cash assistance program except for benefits defined
464.14in section 256J.626, subdivision 2, clause (1).
464.15If during the four-month period a family unit that receives DWP benefits moves to
464.16a county that has not established a diversionary work program, the family unit may be
464.17eligible for MFIP the month following the last month of the issuance of the DWP benefit.
464.18EFFECTIVE DATE.This section is effective January 1, 2015.

464.19    Sec. 31. [256P.001] APPLICABILITY.
464.20General assistance and Minnesota supplemental aid under chapter 256D and
464.21programs governed by chapter 256I or 256J are subject to the requirements of this chapter,
464.22unless otherwise specified or exempted.

464.23    Sec. 32. [256P.01] DEFINITIONS.
464.24    Subdivision 1. Scope. For purposes of this chapter, the terms defined in this section
464.25have the meanings given them.
464.26    Subd. 2. Agency. "Agency" means any county, federally recognized Indian tribe, or
464.27multicounty social services collaboratives.
464.28    Subd. 3. Earned income. "Earned income" means cash or in-kind income earned
464.29through the receipt of wages, salary, commissions, profit from employment activities, net
464.30profit from self-employment activities, payments made by an employer for regularly
464.31accrued vacation or sick leave, and any other profit from activity earned through effort or
464.32labor. The income must be in return for, or as a result of, legal activity.
465.1    Subd. 4. Earned income disregard. "Earned income disregard" means earned
465.2income that is not counted according to section 256P.03 when determining eligibility and
465.3calculating the amount of the assistance payment.
465.4    Subd. 5. Equity value. "Equity value" means the amount of equity in personal
465.5property owned by a person and is determined by subtracting any outstanding
465.6encumbrances from the fair market value of the personal property.
465.7    Subd. 6. Personal property. "Personal property" means an item of value that
465.8is not real property.
465.9    Subd. 7. Self-employment. "Self-employment" means employment by an
465.10individual who:
465.11(1) incurs costs in producing income and deducts these costs in order to equate the
465.12individual's income with income from sources where there are no production costs; and
465.13(2) controls the individual's work by working either independently of an employer or
465.14freelance, or by running the business; or
465.15(3) pays self-employment taxes.

465.16    Sec. 33. [256P.02] PERSONAL PROPERTY LIMITATIONS.
465.17    Subdivision 1. Property ownership. (a) The agency must apply paragraphs (b) to
465.18(e) to determine the value of personal property. The agency must use the equity value
465.19of legally available personal property to determine whether an applicant or participant
465.20is eligible for assistance.
465.21(b) When personal property is jointly owned by two or more persons, the agency
465.22shall assume that each person owns an equal share, except that either person owns
465.23the entire sum of a joint personal checking or savings account. When an applicant or
465.24participant documents greater or lesser ownership, the agency must use that greater or
465.25lesser share to determine the equity value held by the applicant or participant. Other types
465.26of ownership must be evaluated according to law.
465.27(c) Personal property owned by the applicant or participant must be presumed legally
465.28available to the applicant or participant unless the applicant or participant documents
465.29that the property is not legally available to the applicant or participant. When personal
465.30property is not legally available, its equity value must not be applied against the limits of
465.31subdivision 2.
465.32(d) An applicant must disclose whether the applicant has transferred personal
465.33property valued in excess of the property limits in subdivision 2 for which reasonable
465.34compensation was not received within one year prior to application. A participant must
465.35disclose all transfers of property valued in excess of these limits, according to the reporting
466.1requirements in section 256J.30, subdivision 9. When a transfer of personal property
466.2without reasonable compensation has occurred:
466.3(1) the person who transferred the property must provide the property's description,
466.4information needed to determine the property's equity value, the names of the persons who
466.5received the property, and the circumstances of and reasons for the transfer; and
466.6(2) when the transferred property can be reasonably reacquired, or when reasonable
466.7compensation can be secured, the property is presumed legally available to the applicant
466.8or participant.
466.9(e) A participant may build the equity value of personal property to the limits in
466.10subdivision 2.
466.11    Subd. 2. Personal property limitations. (a) The equity value of an assistance unit's
466.12personal property listed in clauses (1) to (4) must not exceed $10,000 for applicants and
466.13participants. For purposes of this subdivision, personal property is limited to:
466.14(1) cash;
466.15(2) bank accounts;
466.16(3) liquid stocks and bonds that can be readily accessed without a financial penalty;
466.17and
466.18(4) vehicles not excluded under subdivision 3.
466.19    Subd. 3. Vehicle exception. One vehicle per assistance unit member age 16 or older
466.20shall be excluded when determining the equity value of personal property. If the assistance
466.21unit owns more than one vehicle per assistance unit member age 16 or older, the agency
466.22shall determine the trade-in values of all additional vehicles and apply the values to the
466.23personal property limitations in subdivision 2. To establish the trade-in values of vehicles,
466.24an agency must use the National Automobile Dealers Association online car values and
466.25car prices guide. When a vehicle is not listed in the online guide, or when the applicant or
466.26participant disputes the trade-in value listed in the online guide as unreasonable given the
466.27condition of the particular vehicle, the agency may require the applicant or participant to
466.28document the trade-in value by securing a written statement from a motor vehicle dealer
466.29licensed under section 168.27, stating the amount that the dealer would pay to purchase
466.30the vehicle. The agency shall reimburse the applicant or participant for the cost of a
466.31written statement that documents a lower loan value.
466.32EFFECTIVE DATE.This section is effective January 1, 2016.

466.33    Sec. 34. [256P.03] EARNED INCOME DISREGARD.
467.1    Subdivision 1. Exempted programs. Participants who qualify for Minnesota
467.2supplemental aid under chapter 256D and for group residential housing under chapter 256I
467.3on the basis of eligibility for Supplemental Security Income are exempt from this section.
467.4    Subd. 2. Earned income disregard. The agency shall disregard the first $65 of
467.5earned income plus one-half of the remaining earned income per month.
467.6EFFECTIVE DATE.This section is effective October 1, 2015.

467.7    Sec. 35. [256P.04] DOCUMENTING, VERIFYING, AND RECERTIFYING
467.8ELIGIBILITY.
467.9    Subdivision 1. Exemption. Participants who receive Minnesota supplemental aid
467.10and who maintain Supplemental Security Income eligibility under chapters 256D and
467.11256I are exempt from the reporting requirements of this section, except that the policies
467.12and procedures for transfers of assets are those used by the medical assistance program
467.13under section 256B.0595.
467.14    Subd. 2. Verification of information. An agency must only require verification of
467.15information necessary to determine eligibility and the amount of the assistance payment.
467.16If necessary, the agency shall assist the applicant or participant in obtaining verifications
467.17and required documents when the applicant or participant is unable to do so.
467.18    Subd. 3. Documentation. The applicant or participant must document the
467.19information required under subdivisions 4 to 7 or authorize the agency to verify the
467.20information. The applicant or participant has the burden of providing documentary
467.21evidence to verify eligibility. The agency must accept a signed personal statement from
467.22the applicant or participant when determining personal property values under section
467.23256P.02. The signed personal statement must include general penalty warnings and a
467.24disclaimer that any false or misrepresented information is subject to prosecution for fraud
467.25under sections 609.52 and 609.821 and perjury under section 609.48.
467.26    Subd. 4. Factors to be verified. (a) The agency shall verify the following at
467.27application:
467.28(1) identity of adults;
467.29(2) age, if necessary to determine eligibility;
467.30(3) immigration status;
467.31(4) income;
467.32(5) spousal support and child support payments made to persons outside the
467.33household;
467.34(6) vehicles;
467.35(7) checking and savings accounts;
468.1(8) inconsistent information, if related to eligibility;
468.2(9) residence; and
468.3(10) Social Security number.
468.4(b) Applicants who are qualified noncitizens and victims of domestic violence as
468.5defined under section 256J.08, subdivision 73, clause (7), are not required to verify the
468.6information in paragraph (a), clause (10). When a Social Security number is not provided
468.7to the agency for verification, this requirement is satisfied when each member of the
468.8assistance unit cooperates with the procedures for verification of Social Security numbers,
468.9issuance of duplicate cards, and issuance of new numbers which have been established
468.10jointly between the Social Security Administration and the commissioner.
468.11    Subd. 5. MFIP-only verifications. In addition to subdivision 4, the agency shall
468.12verify the following for programs under chapter 256J:
468.13(1) the presence of the minor child in the home, if questionable;
468.14(2) the relationship of a minor child to caregivers in the assistance unit;
468.15(3) pregnancy, if related to eligibility;
468.16(4) school attendance, if related to eligibility;
468.17(5) a claim of family violence, if used as a basis to qualify for the family violence
468.18waiver under chapter 256J; and
468.19(6) disability, if used as the basis for reducing the hourly participation requirements
468.20under section 256J.55, subdivision 1, or for the type of activity included in an employment
468.21plan under section 256J.521, subdivision 2.
468.22    Subd. 6. Personal property inconsistent information. If there is inconsistent
468.23information known to the agency when reporting personal property under section 256P.02,
468.24an agency must require the applicant or participant to document the information required
468.25under section 256P.02 or authorize the county agency to verify the information. The
468.26applicant or participant has the burden of providing documentary evidence to verify
468.27eligibility. The agency shall assist the applicant or participant in obtaining required
468.28documents when the applicant or participant is unable to do so.
468.29    Subd. 7. Documenting and verifying inconsistent information. When the
468.30agency verifies inconsistent information under subdivision 4, paragraph (a), clause (8);
468.31subdivision 6; or subdivision 8, clause (3), the reason for verifying the information must
468.32be documented in the financial case record.
468.33    Subd. 8. Recertification. The agency shall recertify eligibility in an annual
468.34interview with the participant. The interview may be conducted by telephone, by Internet
468.35telepresence, or face-to-face in the county office or in another location mutually agreed
468.36upon. A participant must be given the option of a telephone interview or Internet
469.1telepresence to recertify eligibility. During the interview, the agency shall verify the
469.2following:
469.3(1) income, unless excluded, including self-employment earnings;
469.4(2) assets when the value is within $200 of the asset limit; and
469.5(3) inconsistent information, if related to eligibility.
469.6    Subd. 9. MFIP-only recertification. In addition to subdivision 8, the agency shall
469.7verify the following for programs under chapter 256J:
469.8(1) the presence of the minor child in the home, if questionable; and
469.9(2) whether a single-caregiver household meets the requirements in section
469.10256J.575, subdivision 3.
469.11    Subd. 10. Participant's completion of form for recertification of eligibility. A
469.12participant must complete forms prescribed by the commissioner which are required
469.13for recertification of eligibility according to subdivisions 8 and 9. An agency must end
469.14benefits when the participant fails to submit the recertification form and verifications
469.15before the end of the certification period. If the participant submits the recertification
469.16form within 30 days of the termination of benefits, benefits must be reinstated and made
469.17available retroactively for the full benefit month.
469.18    Subd. 11. Participant's completion of household report form. (a) When a
469.19participant is required to complete a household report form, the following paragraphs apply.
469.20(b) If the agency receives an incomplete household report form, the agency must
469.21immediately return the incomplete form and clearly state what the participant must do for
469.22the form to be complete.
469.23(c) The automated eligibility system must send a notice of proposed termination of
469.24assistance to the participant if a complete household report form is not received by the
469.25agency. The automated notice must be mailed to the participant by approximately the 16th
469.26of the month. When a participant submits an incomplete form on or after the date a notice
469.27of proposed termination has been sent, the termination is valid unless the participant
469.28submits a complete form before the end of the month.
469.29(d) The submission of a household report form is considered to have continued the
469.30participant's application for assistance if a complete household report form is received
469.31within a calendar month after the month in which the form was due. Assistance shall be
469.32paid for the period beginning with the first day of that calendar month.
469.33(e) An agency must allow good cause exemptions for a participant required to
469.34complete a household report form when any of the following factors cause a participant to
469.35fail to submit a completed household report form before the end of the month in which
469.36the form is due:
470.1(1) an employer delays completion of employment verification;
470.2(2) the agency does not help a participant complete the household report form when
470.3the participant asks for help;
470.4(3) a participant does not receive a household report form due to a mistake on the
470.5part of the department or the agency or a reported change in address;
470.6(4) a participant is ill or physically or mentally incapacitated; or
470.7(5) some other circumstance occurs that a participant could not avoid with reasonable
470.8care which prevents the participant from providing a completed household report form
470.9before the end of the month in which the form is due.
470.10    Subd. 12. Contacting third parties. An agency must not request information
470.11about an applicant or participant that is not of public record from a source other than
470.12agencies, the department, or the United States Department of Health and Human Services
470.13without the applicant's or participant's prior written consent. An applicant's signature
470.14on an application form constitutes consent for contact with the sources specified on the
470.15application. An agency may use a single consent form to contact a group of similar
470.16sources, such as banks or insurance agencies, but the sources to be contacted must be
470.17identified by the agency prior to requesting an applicant's consent.
470.18    Subd. 13. Notice to undocumented persons; release of private data. Agencies,
470.19in consultation with the commissioner of human services, shall provide notification
470.20to undocumented persons regarding the release of personal data to the United States
470.21Citizenship and Immigration Services and develop protocols regarding the release or
470.22sharing of data about undocumented persons with the United States Citizenship and
470.23Immigration Services as required under sections 404, 411A, and 434 of the Personal
470.24Responsibility and Work Opportunity Reconciliation Act of 1996.
470.25    Subd. 14. Requirement to report to United States Citizenship and Immigration
470.26Services. The commissioner shall comply with the reporting requirements under United
470.27States Code, title 42, section 611a, and any federal regulation or guidance adopted under
470.28that law.
470.29    Subd. 15. Personal statement. The agency may accept a signed personal statement
470.30from the applicant or participant explaining the reasons that the documentation requested
470.31in subdivision 3 is unavailable as sufficient documentation at the time of application,
470.32recertification, or change related to eligibility only for the following factors:
470.33(1) a claim of family violence, if used as a basis to qualify for the family violence
470.34waiver;
470.35(2) relationship of a minor child to caregivers in the assistance unit;
471.1(3) citizenship status from a noncitizen who reports to be, or is identified as, a victim
471.2of severe forms of trafficking in persons, if the noncitizen reports that the noncitizen's
471.3immigration documents are being held by an individual or group of individuals against the
471.4noncitizen's will. The noncitizen must follow up with the Office of Refugee Resettlement
471.5(ORR) to pursue certification. If verification that certification is being pursued is
471.6not received within 30 days, the case must be closed and the agency shall pursue
471.7overpayments. The ORR documents certifying the noncitizen's status as a victim of severe
471.8forms of trafficking in persons, or the reason for the delay in processing, must be received
471.9within 90 days, or the case must be closed and the agency shall pursue overpayments; and
471.10(4) other documentation unavailable for reasons beyond the control of the applicant
471.11or participant. The applicant or participant must have made reasonable attempts to obtain
471.12the documents requested under subdivision 3.
471.13    Subd. 16. Excluded resources. Payments of funds made according to litigation and
471.14subsequent appropriation by the United States Congress to compensate members of Indian
471.15tribes for the taking of tribal lands by the federal government are excluded.
471.16EFFECTIVE DATE.This section is effective February 1, 2015.

471.17    Sec. 36. [256P.05] SELF-EMPLOYMENT EARNINGS.
471.18    Subdivision 1. Exempted programs. Participants who qualify for Minnesota
471.19supplemental aid under chapter 256D and for group residential housing under chapter 256I
471.20on the basis of eligibility for Supplemental Security Income are exempt from this section.
471.21    Subd. 2. Self-employment income determinations. An agency must determine
471.22self-employment income, which is either:
471.23(1) one-half of gross earnings from self-employment; or
471.24(2) taxable income as determined from an Internal Revenue Service tax form that
471.25has been filed with the Internal Revenue Service within the last year. A 12-month average
471.26using net taxable income shall be used to budget monthly income.
471.27    Subd. 3. Self-employment budgeting. (a) The self-employment budget period
471.28begins in the month of application or in the first month of self-employment. Applicants
471.29and participants must choose one of the methods described in subdivision 2 for
471.30determining self-employment earned income.
471.31(b) Applicants and participants who elect to use taxable income as described in
471.32subdivision 2, clause (2), to determine self-employment income must continue to use this
471.33method until recertification, unless there is an unforeseen significant change in gross
471.34income equaling a decline in gross income of the amount equal to or greater than the
472.1earned income disregard as defined in section 256P.03 from the income used to determine
472.2the benefit for the current month.
472.3(c) For applicants and participants who elect to use one-half of gross earnings as
472.4described in subdivision 2, clause (1), to determine self-employment income, earnings
472.5must be counted as income in the month received.
472.6EFFECTIVE DATE.This section is effective February 1, 2015.

472.7    Sec. 37. REPEALER.
472.8(a) Minnesota Statutes 2012, sections 256J.08, subdivisions 55a and 82a; and
472.9256J.24, subdivision 9, are repealed effective January 1, 2015.
472.10(b) Minnesota Statutes 2012, sections 256D.405, subdivisions 1a and 2; 256J.08,
472.11subdivision 42; and 256J.32, subdivisions 2, 3, 4, 5a, 6, 7, 7a, and 8, are repealed effective
472.12February 1, 2015.
472.13(c) Minnesota Statutes 2012, section 256D.06, subdivision 1b, is repealed effective
472.14October 1, 2015.
472.15(d) Minnesota Statutes 2013 Supplement, section 256J.08, subdivision 24, is
472.16repealed effective October 1, 2015.
472.17(e) Minnesota Statutes 2012, sections 256D.08, subdivision 2; and 256J.20, are
472.18repealed effective January 1, 2016.

472.19ARTICLE 22

472.20HUMAN SERVICES FORECAST ADJUSTMENTS

472.21

Section 1. HUMAN SERVICES APPROPRIATION.

472.22The sums shown in the columns marked "Appropriations" are added to or, if shown
472.23in parentheses, are subtracted from the appropriations in Laws 2013, chapter 108, article
472.2414, from the general fund or any fund named to the Department of Human Services for
472.25the purposes specified in this article, to be available for the fiscal year indicated for each
472.26purpose. The figures "2014" and "2015" used in this article mean that the appropriations
472.27listed under them are available for the fiscal years ending June 30, 2014, or June 30, 2015,
472.28respectively. "The first year" is fiscal year 2014. "The second year" is fiscal year 2015.
472.29"The biennium" is fiscal years 2014 and 2015.

472.30				APPROPRIATIONS
472.31				Available for the Year
472.32				Ending June 30
472.33					2014		2015

473.1 473.2

Sec. 2. COMMISSIONER OF HUMAN SERVICES

473.3

Subdivision 1.Total Appropriation

$

(196,927)

$

64,288

473.4	Appropriations by Fund
473.5	General Fund	(153,497)	(25,282)
473.6 473.7	Health Care Access Fund	(36,533)	91,294
473.8	Federal TANF	(6,897)	(1,724)

473.9

Subd. 2.Forecasted Programs

473.10

(a) MFIP/DWP

473.11	Appropriations by Fund
473.12	General Fund	3,571	173
473.13	Federal TANF	(6,475)	(1,298)

473.14

(b) MFIP Child Care Assistance

(684)

11,114

473.15

(c) General Assistance

(2,569)

(1,940)

473.16

(d) Minnesota Supplemental Aid

(690)

(614)

473.17

(e) Group Residential Housing

250

(1,740)

473.18

(f) MinnesotaCare

(34,838)

96,340

473.19These appropriations are from the health care
473.20access fund.

473.21

(g) Medical Assistance

473.22	Appropriations by Fund
473.23	General Fund	(149,494)	(27,075)
473.24 473.25	Health Care Access Fund	(1,695)	(5,046)

473.26

(h) Alternative Care Program

(6,936)

(13,260)

473.27

(i) CCDTF Entitlements

3,055

8,060

473.28

Subd. 3.Technical Activities

(422)

(426)

473.29These appropriations are from the federal
473.30TANF fund.

473.31    Sec. 3. Laws 2013, chapter 108, article 14, section 2, subdivision 1, is amended to read:

474.1 474.2

Subdivision 1.Total Appropriation

$

6,438,485,000 6,437,815,000

$

6,457,117,000 6,456,311,000

474.3	Appropriations by Fund
474.4		2014	2015
474.5 474.6	General	5,654,765,000 5,654,095,000	5,677,458,000 5,676,652,000
474.7 474.8	State Government Special Revenue	4,099,000	4,510,000
474.9	Health Care Access	519,816,000	518,446,000
474.10	Federal TANF	257,915,000	254,813,000
474.11	Lottery Prize Fund	1,890,000	1,890,000

474.12Receipts for Systems Projects.
474.13Appropriations and federal receipts for
474.14information systems projects for MAXIS,
474.15PRISM, MMIS, and SSIS must be deposited
474.16in the state system account authorized
474.17in Minnesota Statutes, section 256.014.
474.18Money appropriated for computer projects
474.19approved by the commissioner of Minnesota
474.20information technology services, funded
474.21by the legislature, and approved by the
474.22commissioner of management and budget,
474.23may be transferred from one project to
474.24another and from development to operations
474.25as the commissioner of human services
474.26considers necessary. Any unexpended
474.27balance in the appropriation for these
474.28projects does not cancel but is available for
474.29ongoing development and operations.
474.30Nonfederal Share Transfers. The
474.31nonfederal share of activities for which
474.32federal administrative reimbursement is
474.33appropriated to the commissioner may be
474.34transferred to the special revenue fund.
474.35ARRA Supplemental Nutrition Assistance
474.36Benefit Increases. The funds provided for
474.37food support benefit increases under the
475.1Supplemental Nutrition Assistance Program
475.2provisions of the American Recovery and
475.3Reinvestment Act (ARRA) of 2009 must be
475.4used for benefit increases beginning July 1,
475.52009.
475.6Supplemental Nutrition Assistance
475.7Program Employment and Training.
475.8(1) Notwithstanding Minnesota Statutes,
475.9sections 256D.051, subdivisions 1a, 6b,
475.10and 6c, and 256J.626, federal Supplemental
475.11Nutrition Assistance employment and
475.12training funds received as reimbursement of
475.13MFIP consolidated fund grant expenditures
475.14for diversionary work program participants
475.15and child care assistance program
475.16expenditures must be deposited in the general
475.17fund. The amount of funds must be limited to
475.18$4,900,000 per year in fiscal years 2014 and
475.192015, and to $4,400,000 per year in fiscal
475.20years 2016 and 2017, contingent on approval
475.21by the federal Food and Nutrition Service.
475.22(2) Consistent with the receipt of the federal
475.23funds, the commissioner may adjust the
475.24level of working family credit expenditures
475.25claimed as TANF maintenance of effort.
475.26Notwithstanding any contrary provision in
475.27this article, this rider expires June 30, 2017.
475.28TANF Maintenance of Effort. (a) In order
475.29to meet the basic maintenance of effort
475.30(MOE) requirements of the TANF block grant
475.31specified under Code of Federal Regulations,
475.32title 45, section 263.1, the commissioner may
475.33only report nonfederal money expended for
475.34allowable activities listed in the following
475.35clauses as TANF/MOE expenditures:
476.1(1) MFIP cash, diversionary work program,
476.2and food assistance benefits under Minnesota
476.3Statutes, chapter 256J;
476.4(2) the child care assistance programs
476.5under Minnesota Statutes, sections 119B.03
476.6and 119B.05, and county child care
476.7administrative costs under Minnesota
476.8Statutes, section 119B.15;
476.9(3) state and county MFIP administrative
476.10costs under Minnesota Statutes, chapters
476.11256J and 256K;
476.12(4) state, county, and tribal MFIP
476.13employment services under Minnesota
476.14Statutes, chapters 256J and 256K;
476.15(5) expenditures made on behalf of legal
476.16noncitizen MFIP recipients who qualify for
476.17the MinnesotaCare program under Minnesota
476.18Statutes, chapter 256L;
476.19(6) qualifying working family credit
476.20expenditures under Minnesota Statutes,
476.21section 290.0671;
476.22(7) qualifying Minnesota education credit
476.23expenditures under Minnesota Statutes,
476.24section 290.0674; and
476.25(8) qualifying Head Start expenditures under
476.26Minnesota Statutes, section 119A.50.
476.27(b) The commissioner shall ensure that
476.28sufficient qualified nonfederal expenditures
476.29are made each year to meet the state's
476.30TANF/MOE requirements. For the activities
476.31listed in paragraph (a), clauses (2) to
476.32(8), the commissioner may only report
476.33expenditures that are excluded from the
477.1definition of assistance under Code of
477.2Federal Regulations, title 45, section 260.31.
477.3(c) For fiscal years beginning with state fiscal
477.4year 2003, the commissioner shall ensure
477.5that the maintenance of effort used by the
477.6commissioner of management and budget
477.7for the February and November forecasts
477.8required under Minnesota Statutes, section
477.916A.103 , contains expenditures under
477.10paragraph (a), clause (1), equal to at least 16
477.11percent of the total required under Code of
477.12Federal Regulations, title 45, section 263.1.
477.13(d) The requirement in Minnesota Statutes,
477.14section 256.011, subdivision 3, that federal
477.15grants or aids secured or obtained under that
477.16subdivision be used to reduce any direct
477.17appropriations provided by law, do not apply
477.18if the grants or aids are federal TANF funds.
477.19(e) For the federal fiscal years beginning on
477.20or after October 1, 2007, the commissioner
477.21may not claim an amount of TANF/MOE in
477.22excess of the 75 percent standard in Code
477.23of Federal Regulations, title 45, section
477.24263.1(a)(2), except:
477.25(1) to the extent necessary to meet the 80
477.26percent standard under Code of Federal
477.27Regulations, title 45, section 263.1(a)(1),
477.28if it is determined by the commissioner
477.29that the state will not meet the TANF work
477.30participation target rate for the current year;
477.31(2) to provide any additional amounts
477.32under Code of Federal Regulations, title 45,
477.33section 264.5, that relate to replacement of
477.34TANF funds due to the operation of TANF
477.35penalties; and
478.1(3) to provide any additional amounts that
478.2may contribute to avoiding or reducing
478.3TANF work participation penalties through
478.4the operation of the excess MOE provisions
478.5of Code of Federal Regulations, title 45,
478.6section 261.43 (a)(2).
478.7For the purposes of clauses (1) to (3),
478.8the commissioner may supplement the
478.9MOE claim with working family credit
478.10expenditures or other qualified expenditures
478.11to the extent such expenditures are otherwise
478.12available after considering the expenditures
478.13allowed in this subdivision and subdivisions
478.142 and 3.
478.15(f) Notwithstanding any contrary provision
478.16in this article, paragraphs (a) to (e) expire
478.17June 30, 2017.
478.18Working Family Credit Expenditures
478.19as TANF/MOE. The commissioner may
478.20claim as TANF maintenance of effort up to
478.21$6,707,000 per year of working family credit
478.22expenditures in each fiscal year.
478.23EFFECTIVE DATE.This section is effective retroactively from July 1, 2013.

478.24    Sec. 4. Laws 2013, chapter 108, article 14, section 2, subdivision 4, as amended by
478.25Laws 2013, chapter 144, section 24, is amended to read:

478.26

Subd. 4.Central Office

478.27The amounts that may be spent from this
478.28appropriation for each purpose are as follows:

478.29

(a) Operations

478.30	Appropriations by Fund
478.31	General	101,979,000	96,858,000
478.32 478.33	State Government Special Revenue	3,974,000	4,385,000
479.1	Health Care Access	13,177,000	13,004,000
479.2	Federal TANF	100,000	100,000

479.3DHS Receipt Center Accounting. The
479.4commissioner is authorized to transfer
479.5appropriations to, and account for DHS
479.6receipt center operations in, the special
479.7revenue fund.
479.8Administrative Recovery; Set-Aside. The
479.9commissioner may invoice local entities
479.10through the SWIFT accounting system as an
479.11alternative means to recover the actual cost
479.12of administering the following provisions:
479.13(1) Minnesota Statutes, section 125A.744,
479.14subdivision 3 ;
479.15(2) Minnesota Statutes, section 245.495,
479.16paragraph (b);
479.17(3) Minnesota Statutes, section 256B.0625,
479.18subdivision 20 , paragraph (k);
479.19(4) Minnesota Statutes, section 256B.0924,
479.20subdivision 6 , paragraph (g);
479.21(5) Minnesota Statutes, section 256B.0945,
479.22subdivision 4 , paragraph (d); and
479.23(6) Minnesota Statutes, section 256F.10,
479.24subdivision 6 , paragraph (b).
479.25Systems Modernization. The following
479.26amounts are appropriated for transfer to
479.27the state systems account authorized in
479.28Minnesota Statutes, section 256.014:
479.29(1) $1,825,000 in fiscal year 2014 and
479.30$2,502,000 in fiscal year 2015 is for the
479.31state share of Medicaid-allocated costs of
479.32the health insurance exchange information
479.33technology and operational structure. The
480.1funding base is $3,222,000 in fiscal year 2016
480.2and $3,037,000 in fiscal year 2017 but shall
480.3not be included in the base thereafter; and
480.4(2) $9,344,000 in fiscal year 2014 and
480.5$3,660,000 in fiscal year 2015 are for the
480.6modernization and streamlining of agency
480.7eligibility and child support systems. The
480.8funding base is $5,921,000 in fiscal year
480.92016 and $1,792,000 in fiscal year 2017 but
480.10shall not be included in the base thereafter.
480.11The unexpended balance of the $9,344,000
480.12appropriation in fiscal year 2014 and the
480.13$3,660,000 appropriation in fiscal year 2015
480.14must be transferred from the Department of
480.15Human Services state systems account to
480.16the Office of Enterprise Technology when
480.17the Office of Enterprise Technology has
480.18negotiated a federally approved internal
480.19service fund rates and billing process with
480.20sufficient internal accounting controls to
480.21properly maximize federal reimbursement
480.22to Minnesota for human services system
480.23modernization projects, but not later than
480.24June 30, 2015.
480.25If contingent funding is fully or partially
480.26disbursed under article 15, section 3, and
480.27transferred to the state systems account, the
480.28unexpended balance of that appropriation
480.29must be transferred to the Office of Enterprise
480.30Technology in accordance with this clause.
480.31Contingent funding must not exceed
480.32$11,598,000 for the biennium.
480.33Base Adjustment. The general fund base
480.34is increased by $2,868,000 in fiscal year
480.352016 and decreased by $1,206,000 in fiscal
481.1year 2017. The health access fund base is
481.2decreased by $551,000 in fiscal years 2016
481.3and 2017. The state government special
481.4revenue fund base is increased by $4,000 in
481.5fiscal year 2016 and decreased by $236,000
481.6in fiscal year 2017.

481.7

(b) Children and Families

481.8	Appropriations by Fund
481.9	General	8,023,000	8,015,000
481.10	Federal TANF	2,282,000	2,282,000

481.11Financial Institution Data Match and
481.12Payment of Fees. The commissioner is
481.13authorized to allocate up to $310,000 each
481.14year in fiscal years 2014 and 2015 from the
481.15PRISM special revenue account to make
481.16payments to financial institutions in exchange
481.17for performing data matches between account
481.18information held by financial institutions
481.19and the public authority's database of child
481.20support obligors as authorized by Minnesota
481.21Statutes, section 13B.06, subdivision 7.
481.22Base Adjustment. The general fund base is
481.23decreased by $300,000 in fiscal years 2016
481.24and 2017. The TANF fund base is increased
481.25by $300,000 in fiscal years 2016 and 2017.

481.26

(c) Health Care

481.27	Appropriations by Fund
481.28	General	14,028,000	13,826,000
481.29	Health Care Access	28,442,000	31,137,000

481.30Base Adjustment. The general fund base
481.31is decreased by $86,000 in fiscal year 2016
481.32and by $86,000 in fiscal year 2017. The
481.33health care access fund base is increased
481.34by $6,954,000 in fiscal year 2016 and by
481.35$5,489,000 in fiscal year 2017.

482.1

(d) Continuing Care

482.2	Appropriations by Fund
482.3	General	20,993,000	22,359,000
482.4 482.5	State Government Special Revenue	125,000	125,000

482.6Base Adjustment. The general fund base is
482.7increased by $1,690,000 in fiscal year 2016
482.8and by $798,000 in fiscal year 2017.

482.9

(e) Chemical and Mental Health

482.10	Appropriations by Fund
482.11 482.12	General	4,639,000 4,571,000	4,490,000 4,431,000
482.13	Lottery Prize Fund	157,000	157,000

482.14Of the general fund appropriation, $68,000
482.15in fiscal year 2014 and $59,000 in fiscal year
482.162015 are for compulsive gambling treatment
482.17under Minnesota Statutes, section 297E.02,
482.18subdivision 3, paragraph (c).
482.19EFFECTIVE DATE.This section is effective retroactively from July 1, 2013.

482.20    Sec. 5. Laws 2013, chapter 108, article 14, section 2, subdivision 6, as amended by
482.21Laws 2013, chapter 144, section 25, is amended to read:

482.22

Subd. 6.Grant Programs

482.23The amounts that may be spent from this
482.24appropriation for each purpose are as follows:

482.25

(a) Support Services Grants

482.26	Appropriations by Fund
482.27	General	8,915,000	13,333,000
482.28	Federal TANF	94,611,000	94,611,000

482.29Paid Work Experience. $2,168,000
482.30each year in fiscal years 2015 and 2016
482.31is from the general fund for paid work
482.32experience for long-term MFIP recipients.
482.33Paid work includes full and partial wage
483.1subsidies and other related services such as
483.2job development, marketing, preworksite
483.3training, job coaching, and postplacement
483.4services. These are onetime appropriations.
483.5Unexpended funds for fiscal year 2015 do not
483.6cancel, but are available to the commissioner
483.7for this purpose in fiscal year 2016.
483.8Work Study Funding for MFIP
483.9Participants. $250,000 each year in fiscal
483.10years 2015 and 2016 is from the general fund
483.11to pilot work study jobs for MFIP recipients
483.12in approved postsecondary education
483.13programs. This is a onetime appropriation.
483.14Unexpended funds for fiscal year 2015 do
483.15not cancel, but are available for this purpose
483.16in fiscal year 2016.
483.17Local Strategies to Reduce Disparities.
483.18$2,000,000 each year in fiscal years 2015
483.19and 2016 is from the general fund for
483.20local projects that focus on services for
483.21subgroups within the MFIP caseload
483.22who are experiencing poor employment
483.23outcomes. These are onetime appropriations.
483.24Unexpended funds for fiscal year 2015 do not
483.25cancel, but are available to the commissioner
483.26for this purpose in fiscal year 2016.
483.27Home Visiting Collaborations for MFIP
483.28Teen Parents. $200,000 per year in fiscal
483.29years 2014 and 2015 is from the general fund
483.30and $200,000 in fiscal year 2016 is from the
483.31federal TANF fund for technical assistance
483.32and training to support local collaborations
483.33that provide home visiting services for
483.34MFIP teen parents. The general fund
484.1appropriation is onetime. The federal TANF
484.2fund appropriation is added to the base.
484.3Performance Bonus Funds for Counties.
484.4The TANF fund base is increased by
484.5$1,500,000 each year in fiscal years 2016
484.6and 2017. The commissioner must allocate
484.7this amount each year to counties that exceed
484.8their expected range of performance on the
484.9annualized three-year self-support index
484.10as defined in Minnesota Statutes, section
484.11256J.751, subdivision 2 , clause (6). This is a
484.12permanent base adjustment. Notwithstanding
484.13any contrary provisions in this article, this
484.14provision expires June 30, 2016.
484.15Base Adjustment. The general fund base is
484.16decreased by $200,000 in fiscal year 2016
484.17and $4,618,000 in fiscal year 2017. The
484.18TANF fund base is increased by $1,700,000
484.19in fiscal years 2016 and 2017.

484.20 484.21

(b) Basic Sliding Fee Child Care Assistance Grants

36,836,000

42,318,000

484.22Base Adjustment. The general fund base is
484.23increased by $3,778,000 in fiscal year 2016
484.24and by $3,849,000 in fiscal year 2017.

484.25

(c) Child Care Development Grants

1,612,000

1,737,000

484.26

(d) Child Support Enforcement Grants

50,000

50,000

484.27Federal Child Support Demonstration
484.28Grants. Federal administrative
484.29reimbursement resulting from the federal
484.30child support grant expenditures authorized
484.31under United States Code, title 42, section
484.321315, is appropriated to the commissioner
484.33for this activity.

484.34

(e) Children's Services Grants

485.1	Appropriations by Fund
485.2	General	49,760,000	52,961,000
485.3	Federal TANF	140,000	140,000

485.4Adoption Assistance and Relative Custody
485.5Assistance. $37,453,000 in fiscal year 2014
485.6and $37,453,000 in fiscal year 2015 is for
485.7the adoption assistance and relative custody
485.8assistance programs. The commissioner
485.9shall determine with the commissioner of
485.10Minnesota Management and Budget the
485.11appropriation for Northstar Care for Children
485.12effective January 1, 2015. The commissioner
485.13may transfer appropriations for adoption
485.14assistance, relative custody assistance, and
485.15Northstar Care for Children between fiscal
485.16years and among programs to adjust for
485.17transfers across the programs.
485.18Title IV-E Adoption Assistance. Additional
485.19federal reimbursements to the state as a result
485.20of the Fostering Connections to Success
485.21and Increasing Adoptions Act's expanded
485.22eligibility for Title IV-E adoption assistance
485.23are appropriated for postadoption services,
485.24including a parent-to-parent support network.
485.25Privatized Adoption Grants. Federal
485.26reimbursement for privatized adoption grant
485.27and foster care recruitment grant expenditures
485.28is appropriated to the commissioner for
485.29adoption grants and foster care and adoption
485.30administrative purposes.
485.31Adoption Assistance Incentive Grants.
485.32Federal funds available during fiscal years
485.332014 and 2015 for adoption incentive grants
485.34are appropriated for postadoption services,
485.35including a parent-to-parent support network.
486.1Base Adjustment. The general fund base is
486.2increased by $5,913,000 in fiscal year 2016
486.3and by $10,297,000 in fiscal year 2017.

486.4

(f) Child and Community Service Grants

53,301,000

53,301,000

486.5

(g) Child and Economic Support Grants

21,047,000

20,848,000

486.6Minnesota Food Assistance Program.
486.7Unexpended funds for the Minnesota food
486.8assistance program for fiscal year 2014 do
486.9not cancel but are available for this purpose
486.10in fiscal year 2015.
486.11Transitional Housing. $250,000 each year
486.12is for the transitional housing programs under
486.13Minnesota Statutes, section 256E.33.
486.14Emergency Services. $250,000 each year
486.15is for emergency services grants under
486.16Minnesota Statutes, section 256E.36.
486.17Family Assets for Independence. $250,000
486.18each year is for the Family Assets for
486.19Independence Minnesota program. This
486.20appropriation is available in either year of the
486.21biennium and may be transferred between
486.22fiscal years.
486.23Food Shelf Programs. $375,000 in fiscal
486.24year 2014 and $375,000 in fiscal year
486.252015 are for food shelf programs under
486.26Minnesota Statutes, section 256E.34. If the
486.27appropriation for either year is insufficient,
486.28the appropriation for the other year is
486.29available for it. Notwithstanding Minnesota
486.30Statutes, section 256E.34, subdivision 4, no
486.31portion of this appropriation may be used
486.32by Hunger Solutions for its administrative
486.33expenses, including but not limited to rent
486.34and salaries.
487.1Homeless Youth Act. $2,000,000 in fiscal
487.2year 2014 and $2,000,000 in fiscal year 2015
487.3is for purposes of Minnesota Statutes, section
487.4256K.45 .
487.5Safe Harbor Shelter and Housing.
487.6$500,000 in fiscal year 2014 and $500,000 in
487.7fiscal year 2015 is for a safe harbor shelter
487.8and housing fund for housing and supportive
487.9services for youth who are sexually exploited.

487.10

(h) Health Care Grants

487.11	Appropriations by Fund
487.12	General	190,000	190,000
487.13	Health Care Access	190,000	190,000

487.14Emergency Medical Assistance Referral
487.15and Assistance Grants. (a) The
487.16commissioner of human services shall
487.17award grants to nonprofit programs that
487.18provide immigration legal services based
487.19on indigency to provide legal services for
487.20immigration assistance to individuals with
487.21emergency medical conditions or complex
487.22and chronic health conditions who are not
487.23currently eligible for medical assistance
487.24or other public health care programs, but
487.25who may meet eligibility requirements with
487.26immigration assistance.
487.27(b) The grantees, in collaboration with
487.28hospitals and safety net providers, shall
487.29provide referral assistance to connect
487.30individuals identified in paragraph (a) with
487.31alternative resources and services to assist in
487.32meeting their health care needs. $100,000
487.33is appropriated in fiscal year 2014 and
487.34$100,000 in fiscal year 2015. This is a
487.35onetime appropriation.
488.1Base Adjustment. The general fund is
488.2decreased by $100,000 in fiscal year 2016
488.3and $100,000 in fiscal year 2017.

488.4

(i) Aging and Adult Services Grants

14,827,000

15,010,000

488.5Base Adjustment. The general fund is
488.6increased by $1,150,000 in fiscal year 2016
488.7and $1,151,000 in fiscal year 2017.
488.8Community Service Development
488.9Grants and Community Services Grants.
488.10Community service development grants and
488.11community services grants are reduced by
488.12$1,150,000 each year. This is a onetime
488.13reduction.

488.14

(j) Deaf and Hard-of-Hearing Grants

1,771,000

1,785,000

488.15

(k) Disabilities Grants

18,605,000

18,823,000

488.16Advocating Change Together. $310,000 in
488.17fiscal year 2014 is for a grant to Advocating
488.18Change Together (ACT) to maintain and
488.19promote services for persons with intellectual
488.20and developmental disabilities throughout
488.21the state. This appropriation is onetime. Of
488.22this appropriation:
488.23(1) $120,000 is for direct costs associated
488.24with the delivery and evaluation of
488.25peer-to-peer training programs administered
488.26throughout the state, focusing on education,
488.27employment, housing, transportation, and
488.28voting;
488.29(2) $100,000 is for delivery of statewide
488.30conferences focusing on leadership and
488.31skill development within the disability
488.32community; and
488.33(3) $90,000 is for administrative and general
488.34operating costs associated with managing
489.1or maintaining facilities, program delivery,
489.2staff, and technology.
489.3Base Adjustment. The general fund base
489.4is increased by $535,000 in fiscal year 2016
489.5and by $709,000 in fiscal year 2017.

489.6

(l) Adult Mental Health Grants

489.7	Appropriations by Fund
489.8 489.9	General	71,199,000 70,597,000	69,530,000 68,783,000
489.10	Health Care Access	750,000	750,000
489.11	Lottery Prize	1,733,000	1,733,000

489.12Compulsive Gambling Treatment. Of the
489.13general fund appropriation, $602,000 in
489.14fiscal year 2014 and $747,000 in fiscal year
489.152015 are for compulsive gambling treatment
489.16under Minnesota Statutes, section 297E.02,
489.17subdivision 3, paragraph (c).
489.18Problem Gambling. $225,000 in fiscal year
489.192014 and $225,000 in fiscal year 2015 is
489.20appropriated from the lottery prize fund for a
489.21grant to the state affiliate recognized by the
489.22National Council on Problem Gambling. The
489.23affiliate must provide services to increase
489.24public awareness of problem gambling,
489.25education and training for individuals and
489.26organizations providing effective treatment
489.27services to problem gamblers and their
489.28families, and research relating to problem
489.29gambling.
489.30Funding Usage. Up to 75 percent of a fiscal
489.31year's appropriations for adult mental health
489.32grants may be used to fund allocations in that
489.33portion of the fiscal year ending December
489.3431.
490.1Base Adjustment. The general fund base is
490.2decreased by $4,427,000 $4,441,000 in fiscal
490.3years 2016 and 2017.
490.4Mental Health Pilot Project. $230,000
490.5each year is for a grant to the Zumbro
490.6Valley Mental Health Center. The grant
490.7shall be used to implement a pilot project
490.8to test an integrated behavioral health care
490.9coordination model. The grant recipient must
490.10report measurable outcomes and savings
490.11to the commissioner of human services
490.12by January 15, 2016. This is a onetime
490.13appropriation.
490.14High-risk adults. $200,000 in fiscal
490.15year 2014 is for a grant to the nonprofit
490.16organization selected to administer the
490.17demonstration project for high-risk adults
490.18under Laws 2007, chapter 54, article 1,
490.19section 19, in order to complete the project.
490.20This is a onetime appropriation.

490.21

(m) Child Mental Health Grants

18,246,000

20,636,000

490.22Text Message Suicide Prevention
490.23Program. $625,000 in fiscal year 2014 and
490.24$625,000 in fiscal year 2015 is for a grant
490.25to a nonprofit organization to establish and
490.26implement a statewide text message suicide
490.27prevention program. The program shall
490.28implement a suicide prevention counseling
490.29text line designed to use text messaging to
490.30connect with crisis counselors and to obtain
490.31emergency information and referrals to
490.32local resources in the local community. The
490.33program shall include training within schools
490.34and communities to encourage the use of the
490.35program.
491.1Mental Health First Aid Training. $22,000
491.2in fiscal year 2014 and $23,000 in fiscal
491.3year 2015 is to train teachers, social service
491.4personnel, law enforcement, and others who
491.5come into contact with children with mental
491.6illnesses, in children and adolescents mental
491.7health first aid training.
491.8Funding Usage. Up to 75 percent of a fiscal
491.9year's appropriation for child mental health
491.10grants may be used to fund allocations in that
491.11portion of the fiscal year ending December
491.1231.

491.13

(n) CD Treatment Support Grants

1,816,000

1,816,000

491.14SBIRT Training. (1) $300,000 each year is
491.15for grants to train primary care clinicians to
491.16provide substance abuse brief intervention
491.17and referral to treatment (SBIRT). This is a
491.18onetime appropriation. The commissioner of
491.19human services shall apply to SAMHSA for
491.20an SBIRT professional training grant.
491.21(2) If the commissioner of human services
491.22receives a grant under clause (1) funds
491.23appropriated under this clause, equal to
491.24the grant amount, up to the available
491.25appropriation, shall be transferred to the
491.26Minnesota Organization on Fetal Alcohol
491.27Syndrome (MOFAS). MOFAS must use
491.28the funds for grants. Grant recipients must
491.29be selected from communities that are
491.30not currently served by federal Substance
491.31Abuse Prevention and Treatment Block
491.32Grant funds. Grant money must be used to
491.33reduce the rates of fetal alcohol syndrome
491.34and fetal alcohol effects, and the number of
491.35drug-exposed infants. Grant money may be
492.1used for prevention and intervention services
492.2and programs, including, but not limited to,
492.3community grants, professional eduction,
492.4public awareness, and diagnosis.
492.5Fetal Alcohol Syndrome Grant. $180,000
492.6each year from the general fund is for a
492.7grant to the Minnesota Organization on Fetal
492.8Alcohol Syndrome (MOFAS) to support
492.9nonprofit Fetal Alcohol Spectrum Disorders
492.10(FASD) outreach prevention programs
492.11in Olmsted County. This is a onetime
492.12appropriation.
492.13Base Adjustment. The general fund base is
492.14decreased by $480,000 in fiscal year 2016
492.15and $480,000 in fiscal year 2017.
492.16EFFECTIVE DATE.This section is effective retroactively from July 1, 2013.

492.17    Sec. 6. EFFECTIVE DATE.
492.18Sections 1 and 2 are effective the day following final enactment.