HF 3172

Conference Committee Report - 88th Legislature (2013 - 2014) Posted on 05/16/2014 04:40pm

1.1CONFERENCE COMMITTEE REPORT ON H. F. No. 3172

1.2A bill for an act

1.3relating to state government; providing supplemental appropriations for
1.4higher education, jobs and economic development, public safety, corrections,
1.5transportation, environment, natural resources, and agriculture, kindergarten
1.6through grade 12 and adult education, health and human services; making forecast
1.7adjustments; modifying prior appropriations; modifying disposition of certain
1.8revenues; dedicating money to the Board of Trustees of the Minnesota State
1.9Colleges and Universities for compensation costs associated with settlement of
1.10employment contracts; dedicating certain funds for homeownership opportunities
1.11for families evicted or given notice of eviction due to a disabled child in the
1.12home; requiring the housing finance agency to improve efforts to reduce racial
1.13and ethnic inequalities in homeownership rates; creating an office of regenerative
1.14medicine development; modifying workforce program outcomes; creating job
1.15training programs; providing funding for the Minnesota Racing Commission;
1.16providing a grant to the Mille Lacs Tourism Council; funding Peace Officer
1.17Standards and Training Board; modifying certain provisions pertaining to victims
1.18of domestic violence and sentencing for criminal sexual conduct; continuing
1.19the fire safety advisory committee; providing for disaster assistance for public
1.20entities when federal aid is granted and when federal aid is absent; establishing
1.21certain transportation oversight authority; modifying provisions for railroad
1.22and pipeline safety; modifying certain transportation provisions; providing
1.23compensation for bee deaths due to pesticide poisoning; establishing pollinator
1.24emergency response team; providing nonresident off-highway motorcycle
1.25state trail pass; requiring certain recycling; modifying solid waste reduction;
1.26regulating harmful chemicals in children's products; providing for state parks
1.27and trails license plates, and licensing and inspection of commercial dog and cat
1.28breeders; providing for invasive terrestrial plants and pests center; providing
1.29funding and policy modifications for early childhood, kindergarten through grade
1.3012, and adult education, including general education, education excellence,
1.31special education, facilities, nutrition, community education, self-sufficiency and
1.32lifelong learning, and state agencies; making changes to provisions governing
1.33the Department of Health, Department of Human Services, children and family
1.34services, continuing care, community first services and supports, health care,
1.35public assistance programs, and chemical dependency; providing for unborn
1.36child protection; modifying the hospital payment system; modifying provisions
1.37governing background studies and home and community-based services
1.38standards; setting fees; providing rate increases; establishing grant programs;
1.39modifying medical assistance provisions; modifying the use of positive support
1.40strategies and emergency manual restraint; providing for certain grants; defining
1.41terms; creating accounts; requiring reports; providing penalties; authorizing
1.42rulemaking;amending Minnesota Statutes 2012, sections 12.03, by adding
1.43subdivisions; 12.221, subdivision 4, by adding a subdivision; 12A.02, subdivision
2.12, by adding subdivisions; 12A.03, subdivision 3; 12A.15, subdivision 1; 13.46,
2.2subdivision 4; 13.643, subdivision 6; 13.7411, subdivision 8; 13.84, subdivisions
2.35, 6; 16A.28, by adding a subdivision; 18B.01, by adding subdivisions; 18B.03,
2.4by adding a subdivision; 18B.04; 84.788, subdivision 2; 85.053, subdivision 2;
2.585.34, subdivision 7; 85A.02, subdivision 2; 103G.271, subdivision 6; 115A.151;
2.6115A.55, subdivision 4; 115A.551, subdivisions 1, 2a; 115A.557, subdivisions 2,
2.73; 115B.39, subdivision 2; 115E.01, by adding subdivisions; 115E.08, by adding
2.8subdivisions; 116.9401; 116.9402; 116.9403; 116.9405; 116.9406; 116L.98;
2.9119B.09, subdivision 9a, by adding a subdivision; 121A.19; 122A.40, subdivision
2.1013; 122A.41, subdivision 6; 122A.415, subdivision 1; 123A.05, subdivision
2.112; 123A.485; 123A.64; 123B.57, subdivision 6; 123B.71, subdivisions 8, 9;
2.12124D.09, subdivisions 9, 13; 124D.111, by adding a subdivision; 124D.16,
2.13subdivision 2; 124D.522; 124D.531, subdivision 3; 124D.59, subdivision 2;
2.14125A.76, subdivision 2; 126C.10, subdivisions 25, 26; 127A.45, subdivisions 2,
2.153; 127A.49, subdivisions 2, 3; 129C.10, subdivision 3, by adding a subdivision;
2.16144.0724, as amended; 144.551, subdivision 1; 145.4131, subdivision 1;
2.17165.15, subdivision 2; 169.826, by adding a subdivision; 169.8261, by adding a
2.18subdivision; 169.86, subdivision 5; 169.863, by adding a subdivision; 169.865,
2.19subdivisions 1, 2, by adding a subdivision; 169.866, subdivision 3, by adding
2.20a subdivision; 174.24, by adding a subdivision; 174.56, subdivision 1, by
2.21adding a subdivision; 179.02, by adding a subdivision; 181A.07, by adding
2.22a subdivision; 219.015, subdivisions 1, 2; 243.167, subdivision 1; 245A.03,
2.23subdivision 2c; 245C.03, by adding a subdivision; 245C.04, by adding a
2.24subdivision; 245C.05, subdivision 5; 245C.10, by adding a subdivision; 245C.33,
2.25subdivisions 1, 4; 252.27, by adding a subdivision; 252.451, subdivision 2;
2.26254B.12; 256.01, by adding a subdivision; 256.9685, subdivisions 1, 1a;
2.27256.9686, subdivision 2; 256.969, subdivisions 1, 2, 2b, 3a, 3b, 3c, 6a, 8, 8a, 9,
2.2810, 12, 14, 17, 18, 25, 30, by adding subdivisions; 256.9752, subdivision 2;
2.29256B.04, by adding a subdivision; 256B.0625, subdivisions 18b, 18c, 18d, 18g,
2.3030, by adding a subdivision; 256B.0751, by adding a subdivision; 256B.199;
2.31256B.35, subdivision 1; 256B.431, by adding a subdivision; 256B.434, by
2.32adding a subdivision; 256B.441, by adding a subdivision; 256B.5012, by
2.33adding a subdivision; 256I.04, subdivision 2b; 256I.05, subdivision 2; 256J.49,
2.34subdivision 13; 256J.53, subdivisions 1, 2, 5; 256J.531; 257.85, subdivision
2.3511; 260C.212, subdivision 1; 260C.515, subdivision 4; 260C.611; 299F.012,
2.36subdivisions 1, 2; 469.084, by adding a subdivision; 473.408, by adding a
2.37subdivision; 609.135, subdivision 2; 609.3451, subdivision 3; 611A.06, by
2.38adding a subdivision; Minnesota Statutes 2013 Supplement, sections 16A.724,
2.39subdivision 2; 123B.53, subdivisions 1, 5; 123B.54; 123B.75, subdivision 5;
2.40124D.11, subdivision 1; 124D.111, subdivision 1; 124D.165, subdivision 5;
2.41124D.531, subdivision 1; 124D.65, subdivision 5; 124D.862, subdivisions 1,
2.422; 125A.0942; 125A.11, subdivision 1; 125A.76, subdivisions 1, 2a, 2b, 2c;
2.43125A.79, subdivisions 1, 5, 8; 126C.05, subdivision 15; 126C.10, subdivisions 2,
2.442a, 2d, 24, 31; 126C.17, subdivisions 6, 7b, 9, 9a; 126C.44; 126C.48, subdivision
2.458; 127A.47, subdivision 7; 145.4716, subdivision 2; 168.123, subdivision 2;
2.46174.42, subdivision 2; 245.8251; 245A.03, subdivision 7; 245A.042, subdivision
2.473; 245A.16, subdivision 1; 245C.08, subdivision 1; 245D.02, subdivisions 3, 4b,
2.488b, 11, 15b, 29, 34, 34a, by adding a subdivision; 245D.03, subdivisions 1, 2,
2.493, by adding a subdivision; 245D.04, subdivision 3; 245D.05, subdivisions 1,
2.501a, 1b, 2, 4, 5; 245D.051; 245D.06, subdivisions 1, 2, 4, 6, 7, 8; 245D.071,
2.51subdivisions 3, 4, 5; 245D.081, subdivision 2; 245D.09, subdivisions 3, 4a;
2.52245D.091, subdivisions 2, 3, 4; 245D.10, subdivisions 3, 4; 245D.11, subdivision
2.532; 256B.04, subdivision 21; 256B.056, subdivision 5c; 256B.0625, subdivisions
2.5417, 18e; 256B.0949, subdivisions 4, 11; 256B.439, subdivisions 1, 7; 256B.441,
2.55subdivision 53; 256B.4912, subdivision 1; 256B.492; 256B.69, subdivision 34;
2.56256B.85, subdivisions 2, 3, 5, 6, 7, 8, 9, 10, 11, 12, 13, 15, 16, 17, 18, 23, 24,
2.57by adding subdivisions; 256N.22, subdivisions 1, 2, 4; 256N.23, subdivision 4;
2.58256N.25, subdivisions 2, 3; 256N.26, subdivision 1; 256N.27, subdivision 4;
3.1Laws 2008, chapter 363, article 5, section 4, subdivision 7, as amended; Laws
3.22009, chapter 83, article 1, section 10, subdivision 7; Laws 2010, chapter 189,
3.3sections 15, subdivision 12; 26, subdivision 4; Laws 2012, chapter 249, section
3.411; Laws 2012, chapter 263, section 1; Laws 2012, chapter 287, article 2,
3.5sections 1; 3; Laws 2012, First Special Session chapter 1, article 1, section 28;
3.6Laws 2013, chapter 1, section 6, as amended; Laws 2013, chapter 85, article 1,
3.7sections 3, subdivisions 2, 5, 6; 4, subdivisions 1, 2; 5; 13, subdivision 5; Laws
3.82013, chapter 86, article 1, sections 12, subdivision 3, as amended; 13; Laws
3.92013, chapter 108, article 1, section 24; article 3, section 48; article 7, sections
3.1014; 49; article 14, sections 2, subdivisions 1, 4, as amended, 5, 6, as amended; 3,
3.11subdivisions 1, 4; 4, subdivision 8; 12; Laws 2013, chapter 114, article 3, section
3.124, subdivision 3; Laws 2013, chapter 116, article 1, section 58, subdivisions 2, 3,
3.134, 5, 6, 7, 11; article 3, section 37, subdivisions 3, 4, 5, 6, 8, 11, 15, 20; article
3.144, section 9, subdivision 2; article 5, section 31, subdivisions 2, 3, 4, 8; article
3.156, section 12, subdivisions 2, 3, 4, 5, 6; article 7, section 21, subdivisions 2, 3,
3.164, 6, 7, 9; article 8, section 5, subdivisions 2, 3, 4, 10, 11, 14; article 9, sections
3.171, subdivision 2; 2; Laws 2013, chapter 117, article 1, sections 3, subdivisions
3.182, 3; 4; proposing coding for new law in Minnesota Statutes, chapters 8; 18B;
3.1919; 84; 85; 87A; 115E; 116; 116J; 123A; 123B; 124D; 129C; 144; 144A; 145;
3.20168; 219; 299A; 347; 473; proposing coding for new law as Minnesota Statutes,
3.21chapter 12B; repealing Minnesota Statutes 2012, sections 115A.551, subdivision
3.222; 116J.997; 123B.71, subdivision 1; 256.969, subdivisions 2c, 8b, 9a, 9b, 11,
3.2313, 20, 21, 22, 26, 27, 28; 256.9695, subdivisions 3, 4; Minnesota Statutes 2013
3.24Supplement, sections 256B.0625, subdivision 18f; 256N.26, subdivision 7.
3.25May 16, 2014
3.26The Honorable Paul Thissen
3.27Speaker of the House of Representatives
3.28The Honorable Sandra L. Pappas
3.29President of the Senate
3.30We, the undersigned conferees for H. F. No. 3172 report that we have agreed upon
3.31the items in dispute and recommend as follows:
3.32That the Senate recede from its amendment and that H. F. No. 3172 be further
3.33amended as follows:
3.34Delete everything after the enacting clause and insert:

3.35"ARTICLE 1

3.36HIGHER EDUCATION

3.37	Section 1. APPROPRIATIONS.

3.38The sums shown in the columns marked "Appropriations" are added to the
3.39appropriations in Laws 2013, chapter 99, article 1, unless otherwise specified, to the
3.40agencies and for the purposes specified in this article. The appropriations are from the
3.41general fund, or another named fund, and are available for the fiscal year indicated for
3.42each purpose. The figure "2015" used in this article means that the appropriation listed
3.43under it is available for the fiscal year ending June 30, 2015.

3.44				APPROPRIATIONS
3.45				Available for the Year
4.1				Ending June 30
4.2					2014		2015

4.3

Sec. 2. OFFICE OF HIGHER EDUCATION

$

750,000

4.4This appropriation is for immediate transfer
4.5to College Possible for the purpose of
4.6expanding College Possible coaching and
4.7mentoring programs in Minnesota schools.
4.8The appropriation shall be used for:
4.9(1) increasing the number of low-income
4.10high school students served by College
4.11Possible by adding at least 150 students and
4.12partnering with at least three additional high
4.13schools in 2015;
4.14(2) expenses related to direct support
4.15for low-income high school students in
4.16after-school programming led by College
4.17Possible; and
4.18(3) coaching and support of low-income
4.19college students through the completion of
4.20their college degree.
4.21College Possible must, by February 1, 2015,
4.22report to the chairs and ranking minority
4.23members of the legislative committees
4.24and divisions with jurisdiction over higher
4.25education and E-12 education on activities
4.26funded by this appropriation. The report must
4.27include, but is not limited to, information
4.28about the expansion of College Possible in
4.29Minnesota, the number of College Possible
4.30coaches hired, the expansion within existing
4.31partner high schools, the expansion of high
4.32school partnerships, the number of high
4.33school and college students served, the
4.34total hours of community service by high
5.1school and college students, and a list of
5.2communities and organizations benefitting
5.3from student service hours.
5.4This appropriation must not be used for the
5.5expansion and support of College Possible
5.6outside of Minnesota.
5.7This is a onetime appropriation.

5.8 5.9 5.10

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

$

17,000,000

5.11$17,000,000 in fiscal year 2015 is
5.12appropriated from the general fund to the
5.13Board of Trustees of the Minnesota State
5.14Colleges and Universities for compensation
5.15costs associated with the settlement of
5.16employment contracts for fiscal year 2014.
5.17The board's appropriation base is increased
5.18by $17,000,000 in fiscal years 2016 and 2017.

5.19 5.20

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

5.21

Subdivision 1.Total Appropriation

$

4,500,000

5.22

Subd. 2.Health Sciences Special

4,500,000

5.23(a) This appropriation is from the general
5.24fund for the direct and indirect expenses
5.25of the collaborative partnership between
5.26the Univerity of Minnesota and the Mayo
5.27Clinic for regenerative medicine research,
5.28clinical translation, and commercialization.
5.29In addition to representatives from the
5.30University of Minnesota and the Mayo
5.31Clinic, the collaborative partnership must
5.32include representatives of private industry
5.33and others with expertise in regenerative
5.34medicine research, clinical translation,
6.1commercialization, and medical venture
6.2financing who are not affiliated with either the
6.3University of Minnesota or the Mayo Clinic.
6.4(b) By January 15 of each odd-numbered
6.5year beginning in 2017, the partnership must
6.6submit an independent financial audit to the
6.7chairs and ranking minority members of the
6.8committees of the house of representatives
6.9and senate having jurisdiction over higher
6.10education and economic development. The
6.11audit must include the names of all recipients
6.12of grants awarded by the partnership and
6.13their affiliation, if any, with the University of
6.14Minnesota or the Mayo Clinic.
6.15(c) The full amount of this appropriation
6.16is for the partnership and may not be
6.17used by the University of Minnesota for
6.18administrative or monitoring expenses.
6.19(d) For fiscal year 2016 and thereafter, the
6.20base for this program is $4,350,000.

6.21    Sec. 5. [5.39] STUDY ABROAD PROGRAMS.
6.22    Subdivision 1. Definitions. (a) For purposes of this section, the terms defined in this
6.23subdivision have the meanings given them.
6.24(b) "Postsecondary institution" means an institution that meets the eligibility
6.25requirements under section 136A.103 to participate in state financial aid programs.
6.26(c) "Program" means a study abroad program offered or approved for credit by a
6.27postsecondary institution in which program participants travel outside of the United States
6.28in connection with an educational experience.
6.29    Subd. 2. Report. (a) A postsecondary institution, must file by November 1 of each
6.30year a report on its programs with the secretary of state. The report must contain the
6.31following information from the previous academic year, including summer terms:
6.32(1) deaths of program participants that occurred during program participation as a
6.33result of program participation; and
7.1(2) accidents and illnesses that occurred during program participation as a result of
7.2program participation and that required hospitalization.
7.3Information reported under clause (1) may be supplemented by a brief explanatory
7.4statement.
7.5(b) A postsecondary institution must report to the secretary of state annually by
7.6November 1 whether its program complies with health and safety standards set by the
7.7Forum on Education Abroad or a similar study abroad program standard setting agency.
7.8    Subd. 3. Secretary of state; publication of program information. (a) The secretary
7.9of state must publish the reports required by subdivision 2, on its Web site in a format that
7.10facilitates identifying information related to a particular postsecondary institution.
7.11(b) The secretary of state shall publish on its Web site the best available information
7.12by country on sexual assaults and other criminal acts affecting study abroad program
7.13participants during program participation. This information shall not be limited to
7.14programs subject to this section.
7.15    Subd. 4. Office of Higher Education. The secretary of state shall provide the
7.16information it posts on its Web site under subdivision 3 to the Office of Higher Education,
7.17in electronic format, at the time it posts the information. The Office of Higher Education
7.18shall post the information on its Web site and may otherwise distribute the information. In
7.19materials distributed or posted, the Office of Higher Education must reference this section.
7.20    Subd. 5. Program material. A postsecondary institution must include in its written
7.21materials provided to prospective program participants a link to the secretary of state Web
7.22site stating that program health and safety information is available at the Web site.
7.23EFFECTIVE DATE.This section is effective August 1, 2014, provided that the
7.24initial reports under subdivision 2 are due November 1, 2015.

7.25    Sec. 6. [135A.0431] MILITARY VETERANS; RESIDENT TUITION.
7.26(a) A person who is honorably discharged from the armed forces of the United States
7.27is entitled to the resident tuition rate at Minnesota public postsecondary institutions.
7.28(b) This section is in addition to any other statute, rule, or higher education
7.29institution regulation or policy providing eligibility for a resident tuition rate or its
7.30equivalent to a student.
7.31EFFECTIVE DATE.This section is effective for academic terms beginning after
7.32August 1, 2014.

7.33    Sec. 7. Minnesota Statutes 2012, section 136A.01, subdivision 2, is amended to read:
8.1    Subd. 2. Responsibilities. (a) The Minnesota Office of Higher Education is
8.2responsible for:
8.3(1) necessary state level administration of financial aid programs, including
8.4accounting, auditing, and disbursing state and federal financial aid funds, and reporting on
8.5financial aid programs to the governor and the legislature;
8.6(2) approval, registration, licensing, and financial aid eligibility of private collegiate
8.7and career schools, under sections 136A.61 to 136A.71 and chapter 141;
8.8(3) determining whether to enter into an interstate reciprocity agreement regarding
8.9postsecondary distance education;
8.10(3) (4) negotiating and administering reciprocity agreements;
8.11(4) (5) publishing and distributing financial aid information and materials, and other
8.12information and materials under section 136A.87, to students and parents;
8.13(5) (6) collecting and maintaining student enrollment and financial aid data and
8.14reporting data on students and postsecondary institutions to develop and implement a
8.15process to measure and report on the effectiveness of postsecondary institutions;
8.16(6) (7) administering the federal programs that affect students and institutions on a
8.17statewide basis; and
8.18(7) (8) prescribing policies, procedures, and rules under chapter 14 necessary to
8.19administer the programs under its supervision.
8.20(b) The office may match individual student data from the student record enrollment
8.21database with individual student financial aid data collected and maintained by the office
8.22in order to audit or evaluate federal or state supported education programs as permitted by
8.23United States Code, title 20, section 1232g(b)(3), and Code of Federal Regulations, title
8.2434, section 99.35. The office shall not release data that personally identifies parents or
8.25students other than to employees and contractors of the office.

8.26    Sec. 8. Minnesota Statutes 2012, section 136A.1702, is amended to read:
8.27136A.1702 LEGISLATIVE OVERSIGHT.
8.28    The office shall notify the chairs of the legislative committees with primary
8.29jurisdiction over higher education finance of any proposed material change to any of its
8.30student loan programs, including loan refinancing under section 136A.1704, prior to
8.31making the change.

8.32    Sec. 9. [136A.1704] STUDENT LOAN REFINANCING.
8.33The office may refinance student and parent loans as provided by this section and
8.34on other terms and conditions the office prescribes. The office may establish credit
9.1requirements for borrowers and determine what types of student and parent loans will be
9.2eligible for refinancing. The refinanced loan need not have been made through a loan
9.3program administered by the office. Loans shall be made with available funds in the
9.4loan capital fund under section 136A.1785. The maximum amount of outstanding loans
9.5refinanced under this section may not exceed $100,000,000. The maximum loan under
9.6this section may not exceed $70,000.
9.7EFFECTIVE DATE.This section is effective the day following final enactment,
9.8provided no loans may be refinanced prior to June 1, 2015.

9.9    Sec. 10. Minnesota Statutes 2012, section 136A.1785, is amended to read:
9.10136A.1785 LOAN CAPITAL FUND.
9.11The office may deposit and hold assets derived from the operation of its student loan
9.12programs and refinanced education loans authorized by this chapter in a fund known as
9.13the loan capital fund. Assets in the loan capital fund are available to the office solely
9.14for carrying out the purposes and terms of sections 136A.15 to 136A.1703 136A.1704,
9.15including, but not limited to, making student loans authorized by this chapter, refinancing
9.16education loans authorized by this chapter, paying administrative expenses associated with
9.17the operation of its student loan programs, repurchasing defaulted student loans, and
9.18paying expenses in connection with the issuance of revenue bonds authorized under this
9.19chapter. Assets in the loan capital fund may be invested as provided in sections 11A.24
9.20and 136A.16, subdivision 8. All interest and earnings from the investment of the loan
9.21capital fund inure to the benefit of the fund and are deposited into the fund.

9.22    Sec. 11. [136A.658] EXEMPTION; STATE AUTHORIZATION RECIPROCITY
9.23AGREEMENT SCHOOLS.
9.24(a) The office may participate in an interstate reciprocity agreement regarding
9.25postsecondary distance education if it determines that participation is in the best interest of
9.26Minnesota postsecondary students.
9.27(b) If the office decides to participate in an interstate reciprocity agreement, an
9.28institution that meets the following requirements is exempt from the provisions of sections
9.29136A.61 to 136A.71:
9.30(1) the institution is situated in a state which is also participating in the interstate
9.31reciprocity agreement;
10.1(2) the institution has been approved to participate in the interstate reciprocity
10.2agreement by the institution's home state and other entities with oversight of the interstate
10.3reciprocity agreement; and
10.4(3) the institution has elected to participate in and operate in compliance with the
10.5terms of the interstate reciprocity agreement.

10.6    Sec. 12. MINNESOTA STATE COLLEGES AND UNIVERSITIES
10.7BACCALAUREATE DEGREE COMPLETION PLAN.
10.8The Board of Trustees of the Minnesota State Colleges and Universities shall develop
10.9a plan to implement multi-campus articulation agreements that lead to baccalaureate
10.10degree completion upon earning the number of credits required for the degree minus 60
10.11credits at a system university after transfer to the system university by a student with an
10.12associate in arts degree, associate of science degree, or an associate of fine arts (AFA)
10.13degree from a system college. The board shall assign the task of developing the plan to
10.14the appropriate committee formed under the board's "Charting the Future" initiative. The
10.15board shall report on this plan to the legislative committees with primary jurisdiction over
10.16higher education finance and policy by March 15, 2015.

10.17    Sec. 13. REPORT; OFFICE OF HIGHER EDUCATION.
10.18The Office of Higher Education shall, by February 1, 2015, report to the committees
10.19of the legislature with primary jurisdiction over higher education policy and finance, its
10.20plans and proposed terms and conditions for operating a student loan refinancing program
10.21under section 136A.1704, along with any recommended legislation.

10.22    Sec. 14. STUDY ABROAD PROGRAM; ASSESSMENT OF APPROPRIATE
10.23REGULATION.
10.24The Office of Higher Education shall, using existing staff and budget, assess the
10.25appropriate state regulation of postsecondary study abroad programs. The assessment
10.26must be based on a balanced approach of protecting the health and safety of program
10.27participants and maintaining the opportunity of students to study abroad. The office shall
10.28report the results of its assessment with any legislative recommendation by February 1,
10.292015, to the committees of the legislature with primary jurisdiction over higher education.

10.30    Sec. 15. UNIVERSITY OF MINNESOTA BASE ADJUSTMENT.
11.1    For fiscal years 2016 to 2041, $3,500,000 is added to the base operations and
11.2maintenance appropriation to the Board of Regents of the University of Minnesota in
11.3Laws 2013, chapter 99, article 1, section 5.

11.4    Sec. 16. JAMES FORD BELL NATURAL HISTORY MUSEUM AND
11.5PLANETARIUM.
11.6The Board of Regents of the University of Minnesota is requested to complete the
11.7design of and to construct, furnish, and equip a new James Ford Bell Natural History
11.8Museum and Planetarium on the St. Paul campus.

11.9ARTICLE 2

11.10APPROPRIATIONS FOR DEPARTMENT OF EMPLOYMENT AND
11.11ECONOMIC DEVELOPMENT, DEPARTMENT OF LABOR AND INDUSTRY,
11.12DEPARTMENT OF COMMERCE, AND HOUSING FINANCE

11.13

Section 1. APPROPRIATIONS.

11.14    The sums shown in the columns under "Appropriations" are added to or, if shown
11.15in parentheses, subtracted from the appropriations in Laws 2013, chapter 85, article 1,
11.16or other law to the specified agencies. The appropriations are from the general fund, or
11.17another named fund, and are available for the fiscal years indicated for each purpose. The
11.18figures "2014" and "2015" used in this article mean that the appropriations listed under
11.19them are available for the fiscal year ending June 30, 2014, or June 30, 2015, respectively.
11.20Appropriations for the fiscal year ending June 30, 2014, are effective the day following
11.21final enactment. Reductions may be taken in either fiscal year.

11.22				APPROPRIATIONS
11.23				Available for the Year
11.24				Ending June 30
11.25					2014		2015

11.26 11.27

Sec. 2. DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT

11.28

Subdivision 1.Total Appropriation

$

0

$

29,475,000

11.29	Appropriations by Fund
11.30	General	-0-	28,175,000
11.31 11.32	Workforce Development	-0-	1,300,000

11.33The amounts that may be spent for each
11.34purpose are specified in the following
11.35subdivisions.

12.1 12.2

Subd. 2.Business and Community Development

0

27,225,000

12.3(a)(1) $20,000,000 in fiscal year 2015 is
12.4from the general fund for deposit in the
12.5border-to-border broadband fund account
12.6created under Minnesota Statutes, section
12.7116J.396, and may be used for the purposes
12.8provided in Minnesota Statutes, section
12.9116J.395, and as provided for under clause
12.10(2). This is a onetime appropriation and is
12.11available until June 30, 2017.
12.12(2) Of the appropriation under clause (1), up
12.13to three percent is for: (i) costs incurred by
12.14the commissioner to administer Minnesota
12.15Statutes, section 116J.395; and (ii) one
12.16or more contracts with an independent
12.17organization that has extensive experience
12.18working with Minnesota broadband
12.19providers to continue to:
12.20(A) collect broadband deployment data from
12.21Minnesota providers, verify its accuracy
12.22through on-the-ground testing, and create
12.23state and county maps available to the public
12.24showing the availability of broadband service
12.25at various upload and download speeds
12.26throughout Minnesota, in order to measure
12.27progress in achieving the state's broadband
12.28goals established in Minnesota Statutes,
12.29section 237.012;
12.30(B) analyze the deployment data collected to
12.31help inform future investments in broadband
12.32infrastructure; and
12.33(C) conduct business and residential surveys
12.34that measure broadband adoption and use in
12.35the state.
13.1Data provided by a broadband provider to the
13.2contractor under this paragraph is nonpublic
13.3data under Minnesota Statutes, section 13.02,
13.4subdivision 9. Maps produced under this
13.5paragraph are public data under Minnesota
13.6Statutes, section 13.03.
13.7(b) $475,000 in fiscal year 2015 is from the
13.8general fund for a grant to the Southwest
13.9Initiative Foundation for business revolving
13.10loans or other lending programs at below
13.11market interest rates. This is a onetime
13.12appropriation.
13.13(c) $475,000 in fiscal year 2015 is from the
13.14general fund for a grant to the West Central
13.15Initiative Foundation for business revolving
13.16loans or other lending programs at below
13.17market interest rates. This is a onetime
13.18appropriation.
13.19(d) $475,000 in fiscal year 2015 is from the
13.20general fund for a grant to the Southern
13.21Minnesota Initiative Foundation for business
13.22revolving loans or other lending programs at
13.23below market interest rates. This is a onetime
13.24appropriation.
13.25(e) $475,000 in fiscal year 2015 is from the
13.26general fund for a grant to the Northwest
13.27Minnesota Foundation for business revolving
13.28loans or other lending programs at below
13.29market interest rates. This is a onetime
13.30appropriation.
13.31(f) $475,000 in fiscal year 2015 is from the
13.32general fund for a grant to the Initiative
13.33Foundation for business revolving loans or
13.34other lending programs at below market
13.35interest rates. This is a onetime appropriation.
14.1(g) $475,000 in fiscal year 2015 is from the
14.2general fund for a grant to the Northland
14.3Foundation for business revolving loans or
14.4other lending programs at below market
14.5interest rates. This is a onetime appropriation.
14.6(h) $650,000 in fiscal year 2015 is from
14.7the general fund for a grant to the Urban
14.8Initiative Board under Minnesota Statutes,
14.9chapter 116M, for loans at below market
14.10interest rates, business technical assistance,
14.11or organizational capacity building. Funds
14.12available under this paragraph must be
14.13allocated as follows: (1) 50 percent of
14.14the funds must be allocated for projects
14.15in the counties of Dakota, Ramsey, and
14.16Washington; and (2) 50 percent of the funds
14.17must be allocated for projects in the counties
14.18of Anoka, Carver, Hennepin, and Scott. This
14.19is a onetime appropriation.
14.20(i) $500,000 in fiscal year 2015 is from the
14.21general fund for grants to small business
14.22development centers under Minnesota
14.23Statutes, section 116J.68. Funds made
14.24available under this paragraph may be used to
14.25match funds under the federal Small Business
14.26Development Center (SBDC) program under
14.27United States Code, title 15, section 648, to
14.28provide consulting and technical services, or
14.29to build additional SBDC network capacity
14.30to serve entrepreneurs and small businesses.
14.31The commissioner shall allocate funds
14.32equally among the nine regional centers and
14.33lead center. This is a onetime appropriation.
14.34(j) $400,000 in fiscal year 2015 is from the
14.35general fund for the innovation voucher pilot
15.1program. This is a onetime appropriation
15.2and is available until June 30, 2017. Of
15.3this amount, up to five percent may be used
15.4for administration. Vouchers require a 50
15.5percent match by recipients.
15.6(k) $475,000 in fiscal year 2015 is from
15.7the general fund for the Minnesota Jobs
15.8Skills Partnership program under Minnesota
15.9Statutes, section 116L.02. This is a onetime
15.10appropriation.
15.11(l) $2,200,000 in fiscal year 2015 is from
15.12the general fund for the greater Minnesota
15.13business development public infrastructure
15.14grant program under Minnesota Statutes,
15.15section 116J.431, for grants to design,
15.16construct, prepare, and improve infrastructure
15.17for economic development. This is a onetime
15.18appropriation and is available until June 30,
15.192017.
15.20(m) $150,000 in fiscal year 2015 is from
15.21the general fund for a grant to the city of
15.22Proctor to design and construct a sand and
15.23salt storage facility to prevent runoff into
15.24surface water. This appropriation is not
15.25available until the commissioner determines
15.26that at least an equal amount is committed to
15.27the project from nonstate sources. This is a
15.28onetime appropriation.

15.29

Subd. 3.Workforce Development

0

1,050,000

15.30(a) $300,000 in fiscal year 2015 is from the
15.31workforce development fund for workforce
15.32program outcome activities under Minnesota
15.33Statutes, section 116L.98. This is a onetime
15.34appropriation.
16.1(b) $250,000 in fiscal year 2015 is from
16.2the workforce development fund for a
16.3grant to the Northwest Indian Opportunities
16.4Industrialization Center and may be used for
16.5a green jobs deconstruction pilot program in
16.6collaboration with a research institute and
16.7a nonprofit organization with experience
16.8developing deconstruction jobs, new
16.9products from reclaimed materials, and reuse
16.10of materials. This is a onetime appropriation.
16.11(c) $250,000 in fiscal year 2015 is from the
16.12workforce development fund for a grant
16.13to the Northeast Minnesota Office of Job
16.14Training. This is a onetime appropriation.
16.15(d) $250,000 in fiscal year 2015 is from the
16.16workforce development fund for a grant to
16.17Twin Cities RISE! to provide job training.
16.18This is a onetime appropriation.

16.19

Subd. 4.General Support Services

0

500,000

16.20$500,000 in fiscal year 2015 is from the
16.21general fund for establishing and operating
16.22the interagency Olmstead Implementation
16.23Office. The base appropriation for the office
16.24is $875,000 each year for fiscal years 2016
16.25and 2017. The state recognizes its obligations
16.26under Jensen, et al. v. Minnesota Department
16.27of Human Services, et al. During the 2015
16.28legislative session, the legislature intends to
16.29review the funding levels provided for the
16.30Olmstead Implementation Office to ensure
16.31that amounts sufficient to comply with the
16.32obligations imposed by the court's order are
16.33appropriated in fiscal years 2016 and 2017.

16.34

Subd. 5.Vocational Rehabilitation

-0-

700,000

17.1	Appropriations by Fund
17.2	General	-0-	450,000
17.3 17.4	Workforce Development	-0-	250,000

17.5(a) $250,000 in fiscal year 2015 is from
17.6the workforce development fund for
17.7rate increases to providers of extended
17.8employment services for persons with severe
17.9disabilities under Minnesota Statutes, section
17.10268A.15. This is a onetime appropriation.
17.11(b) $450,000 in fiscal year 2015 is from the
17.12general fund for grants to the eight Minnesota
17.13Centers for Independent Living. This is a
17.14onetime appropriation.

17.15

Subd. 6.Transfer

17.16The commissioner shall transfer $7,100,000
17.17from the Minnesota minerals 21st century
17.18fund to the commissioner of the Iron Range
17.19Resources and Rehabilitation Board for
17.20a grant or forgivable loan to the city of
17.21Hoyt Lakes for building and municipal
17.22infrastructure in support of a biochemical
17.23manufacturing project to be located in the
17.24city. This transfer is available until June 30,
17.252018.

17.26 17.27

Sec. 3. DEPARTMENT OF LABOR AND INDUSTRY

$

250,000

17.28For the purpose of establishing competency
17.29standards for programs in advanced
17.30manufacturing, health care services,
17.31information technology, and agriculture.
17.32This is a onetime appropriation.

17.33

Sec. 4. DEPARTMENT OF COMMERCE

$

(350,000)

$

-0-

18.1$350,000 in fiscal year 2014 is a onetime
18.2reduction to the appropriation for the gold
18.3bullion dealer registration program.

18.4

Sec. 5. HOUSING FINANCE AGENCY

$

-0-

$

2,200,000

18.5$2,200,000 in fiscal year 2015 is from the
18.6general fund for up to two grants for housing
18.7projects, not to exceed $1,100,000 per grant
18.8or 50 percent of the total development costs
18.9of the housing project, whichever is less, in
18.10communities that have:
18.11(1) low housing vacancy rates; and
18.12(2) education and training centers for jobs in
18.13the natural resources or aviation maintenance
18.14fields, or other fields with anticipated
18.15significant job growth potential.
18.16Funds must be used for grants for housing
18.17projects with financial and in-kind
18.18contributions from nonagency resources
18.19that, when combined with a grant under this
18.20section, are sufficient to complete the housing
18.21project. This is a onetime appropriation. If
18.22funds remain uncommitted by the end of
18.23calendar year 2015, the agency may transfer
18.24the uncommitted funds to the economic
18.25development and housing challenge program
18.26under Minnesota Statutes, section 462A.33.

18.27    Sec. 6. Laws 2013, chapter 85, article 1, section 3, subdivision 2, is amended to read:

18.28 18.29

Subd. 2.Business and Community Development

53,642,000

45,407,000

18.30	Appropriations by Fund
18.31	General	52,942,000	44,707,000
18.32	Remediation	700,000	700,000

19.1(a)(1) $15,000,000 each year is for the
19.2Minnesota investment fund under Minnesota
19.3Statutes, section 116J.8731. Of this amount,
19.4the commissioner of employment and
19.5economic development may use up to three
19.6percent for administrative expenses and
19.7technology upgrades. This appropriation is
19.8available until spent.
19.9(2) Of the amount available under clause
19.10(1), up to $3,000,000 in fiscal year 2014
19.11is for a loan to facilitate initial investment
19.12in the purchase and operation of a
19.13biopharmaceutical manufacturing facility.
19.14This loan is not subject to the loan limitations
19.15under Minnesota Statutes, section 116J.8731,
19.16and shall be forgiven by the commissioner
19.17of employment and economic development
19.18upon verification of meeting performance
19.19goals. Purchases related to and for the
19.20purposes of this loan award must be made
19.21between January 1, 2013, and June 30, 2015.
19.22The amount under this clause is available
19.23until expended.
19.24(3) Of the amount available under clause (1),
19.25up to $2,000,000 is available for subsequent
19.26investment in the biopharmaceutical facility
19.27project in clause (2). The amount under this
19.28clause is available until expended. Loan
19.29thresholds under clause (2) must be achieved
19.30and maintained to receive funding. Loans
19.31are not subject to the loan limitations under
19.32Minnesota Statutes, section 116J.8731, and
19.33shall be forgiven by the commissioner of
19.34employment and economic development
19.35upon verification of meeting performance
19.36goals. Purchases related to and for the
20.1purposes of loan awards must be made during
20.2the biennium the loan was received.
20.3(4) Notwithstanding any law to the contrary,
20.4the biopharmaceutical manufacturing facility
20.5in this paragraph shall be deemed eligible
20.6for the Minnesota job creation fund under
20.7Minnesota Statutes, section 116J.8748,
20.8by having at least $25,000,000 in capital
20.9investment and 190 retained employees.
20.10(5) For purposes of clauses (1) to (4),
20.11"biopharmaceutical" and "biologics" are
20.12interchangeable and mean medical drugs
20.13or medicinal preparations produced using
20.14technology that uses biological systems,
20.15living organisms, or derivatives of living
20.16organisms, to make or modify products or
20.17processes for specific use. The medical drugs
20.18or medicinal preparations include but are not
20.19limited to proteins, antibodies, nucleic acids,
20.20and vaccines.
20.21(b) $12,000,000 each year is for the
20.22Minnesota job creation fund under Minnesota
20.23Statutes, section 116J.8748. Of this amount,
20.24the commissioner of employment and
20.25economic development may use up to three
20.26percent for administrative expenses. This
20.27appropriation is available until spent. The
20.28base funding for this program shall be
20.29$12,500,000 each year in the fiscal year
20.302016-2017 biennium.
20.31(c) $1,272,000 each year is from the
20.32general fund for contaminated site cleanup
20.33and development grants under Minnesota
20.34Statutes, sections 116J.551 to 116J.558. This
20.35appropriation is available until expended.
21.1(d) $700,000 each year is from the
21.2remediation fund for contaminated site
21.3cleanup and development grants under
21.4Minnesota Statutes, sections 116J.551 to
21.5116J.558 . This appropriation is available
21.6until expended.
21.7(e) $1,425,000 the first year and $1,425,000
21.8the second year are from the general fund for
21.9the business development competitive grant
21.10program. Of this amount, up to five percent
21.11is for administration and monitoring of the
21.12business development competitive grant
21.13program. All grant awards shall be for two
21.14consecutive years. Grants shall be awarded
21.15in the first year.
21.16(f) $4,195,000 each year is from the general
21.17fund for the Minnesota job skills partnership
21.18program under Minnesota Statutes, sections
21.19116L.01 to 116L.17. If the appropriation for
21.20either year is insufficient, the appropriation
21.21for the other year is available. This
21.22appropriation is available until spent.
21.23(g) $6,000,000 the first year is from the
21.24general fund for the redevelopment program
21.25under Minnesota Statutes, section 116J.571.
21.26This is a onetime appropriation and is
21.27available until spent.
21.28(h) $12,000 each year is from the general
21.29fund for a grant to the Upper Minnesota Film
21.30Office.
21.31(i) $325,000 each year is from the general
21.32fund for the Minnesota Film and TV Board.
21.33The appropriation in each year is available
21.34only upon receipt by the board of $1 in
21.35matching contributions of money or in-kind
22.1contributions from nonstate sources for every
22.2$3 provided by this appropriation, except that
22.3each year up to $50,000 is available on July
22.41 even if the required matching contribution
22.5has not been received by that date.
22.6(j) $100,000 each year is for a grant to the
22.7Northern Lights International Music Festival.
22.8(k) $5,000,000 each year is from the general
22.9fund for a grant to the Minnesota Film
22.10and TV Board for the film production jobs
22.11program under Minnesota Statutes, section
22.12116U.26 . This appropriation is available
22.13until expended. The base funding for this
22.14program shall be $1,500,000 each year in the
22.15fiscal year 2016-2017 biennium.
22.16(l) $375,000 each year is from the general
22.17fund for a grant to Enterprise Minnesota, Inc.,
22.18for the small business growth acceleration
22.19program under Minnesota Statutes, section
22.20116O.115 . This is a onetime appropriation.
22.21(m) $160,000 each year is from the general
22.22fund for a grant to develop and implement
22.23a southern and southwestern Minnesota
22.24initiative foundation collaborative pilot
22.25project. Funds available under this paragraph
22.26must be used to support and develop
22.27entrepreneurs in diverse populations in
22.28southern and southwestern Minnesota. This
22.29is a onetime appropriation and is available
22.30until expended.
22.31(n) $100,000 each year is from the general
22.32fund for the Center for Rural Policy
22.33and Development. This is a onetime
22.34appropriation.
23.1(o) $250,000 each year is from the general
23.2fund for the Broadband Development Office.
23.3(p) $250,000 the first year is from the
23.4general fund for a onetime grant to the St.
23.5Paul Planning and Economic Development
23.6Department for neighborhood stabilization
23.7use in NSP3.
23.8(q) $1,235,000 the first year is from the
23.9general fund for a onetime grant to a city
23.10of the second class that is designated as an
23.11economically depressed area by the United
23.12States Department of Commerce. The
23.13appropriation is for economic development,
23.14redevelopment, and job creation programs
23.15and projects. This appropriation is available
23.16until expended.
23.17(r) $875,000 each year is from the general
23.18fund for the Host Community Economic
23.19Development Program established in
23.20Minnesota Statutes, section 116J.548.
23.21(s) $750,000 the first year is from the general
23.22fund for a onetime grant to the city of Morris
23.23for loans or grants to agricultural processing
23.24facilities for energy efficiency improvements.
23.25Funds available under this section shall be
23.26used to increase conservation and promote
23.27energy efficiency through retrofitting existing
23.28systems and installing new systems to
23.29recover waste heat from industrial processes
23.30and reuse energy. This appropriation is not
23.31available until the commissioner determines
23.32that at least $1,250,000 a match of $750,000
23.33 is committed to the project from nonpublic
23.34sources. This appropriation is available until
23.35expended.
24.1EFFECTIVE DATE.This section is effective retroactively from July 1, 2013.

24.2    Sec. 7. Laws 2013, chapter 85, article 1, section 3, subdivision 5, is amended to read:

24.3

Subd. 5.Minnesota Trade Office

2,322,000

2,292,000

24.4(a) $330,000 in fiscal year 2014 and $300,000
24.5in fiscal year 2015 are for the STEP grants
24.6in Minnesota Statutes, section 116J.979. Of
24.7the fiscal year 2014 appropriation, $30,000
24.8is available for expenditure until June 30,
24.92015, for establishing trade, export, and
24.10cultural exchange relations between the state
24.11of Minnesota and east African nations.
24.12(b) $180,000 in fiscal year 2014 and
24.13$180,000 in fiscal year 2015 are for the Invest
24.14Minnesota marketing initiative in Minnesota
24.15Statutes, section 116J.9781. Notwithstanding
24.16any other law, this provision does not expire.
24.17(c) $270,000 each year is from the general
24.18fund for the expansion of Minnesota Trade
24.19Offices under Minnesota Statutes, section
24.20116J.978 .
24.21(d) $50,000 each year is from the general
24.22fund for the trade policy advisory group
24.23under Minnesota Statutes, section 116J.9661.
24.24(e) The commissioner of employment and
24.25economic development, in consultation
24.26with the commissioner of agriculture, shall
24.27identify and increase export opportunities for
24.28Minnesota agricultural products.
24.29EFFECTIVE DATE.This section is effective the day following final enactment.

24.30    Sec. 8. Laws 2013, chapter 85, article 1, section 3, subdivision 6, is amended to read:

24.31

Subd. 6.Vocational Rehabilitation

27,691,000

27,691,000

25.1	Appropriations by Fund
25.2	General	20,861,000	20,861,000
25.3 25.4	Workforce Development	6,830,000	6,830,000

25.5(a) $10,800,000 each year is from the general
25.6fund for the state's vocational rehabilitation
25.7program under Minnesota Statutes, chapter
25.8268A.
25.9(b) $2,261,000 each year is from the general
25.10fund for grants to centers for independent
25.11living under Minnesota Statutes, section
25.12268A.11 .
25.13(c) $5,745,000 each year from the general
25.14fund and $6,830,000 each year from the
25.15workforce development fund is for extended
25.16employment services for persons with
25.17severe disabilities under Minnesota Statutes,
25.18section 268A.15. The allocation of extended
25.19employment funds to Courage Center from
25.20July 1, 2012 to June 30, 2013 must be
25.21contracted to Allina Health systems from
25.22July 1, 2013 to June 30, 2014 2015 to provide
25.23extended employment services in accordance
25.24with Minnesota Rules, parts 3300.2005 to
25.253300.2055.
25.26(d) $2,055,000 each year is from the general
25.27fund for grants to programs that provide
25.28employment support services to persons with
25.29mental illness under Minnesota Statutes,
25.30sections 268A.13 and 268A.14. The base
25.31appropriation for this program is $1,555,000
25.32each year in the fiscal year 2016-2017
25.33biennium.

25.34    Sec. 9. Laws 2013, chapter 85, article 1, section 4, subdivision 1, is amended to read:

26.1

Subdivision 1.Total Appropriation

$

58,748,000

$

42,748,000

26.2The amounts that may be spent for each
26.3purpose are specified in the following
26.4subdivisions.
26.5Unless otherwise specified, this appropriation
26.6is for transfer to the housing development
26.7fund for the programs specified in this
26.8section. Except as otherwise indicated, this
26.9transfer is part of the agency's permanent
26.10budget base.
26.11The Housing Finance Agency must make
26.12continuous improvements to its ongoing
26.13efforts to reduce the racial and ethnic
26.14inequalities in homeownership rates and
26.15must seek opportunities to deploy increasing
26.16levels of resources toward these efforts.

26.17    Sec. 10. Laws 2013, chapter 85, article 1, section 4, subdivision 2, is amended to read:

26.18

Subd. 2.Challenge Program

19,203,000

9,203,000

26.19(a) This appropriation is for the economic
26.20development and housing challenge program
26.21under Minnesota Statutes, section 462A.33.
26.22The agency must continue to strengthen its
26.23efforts to address the disparity rate between
26.24white households and indigenous American
26.25Indians and communities of color. Of this
26.26amount, $1,208,000 each year shall be made
26.27available during the first 11 months of the
26.28fiscal year exclusively for housing projects
26.29for American Indians. Any funds not
26.30committed to housing projects for American
26.31Indians in the first 11 months of the fiscal year
26.32shall be available for any eligible activity
26.33under Minnesota Statues, section 462A.33.
27.1(b) Of this amount, $10,000,000 is a onetime
27.2appropriation and is targeted for housing in
27.3communities and regions that have:
27.4(1)(i) low housing vacancy rates; and
27.5(ii) cooperatively developed a plan that
27.6identifies current and future housing needs;
27.7and
27.8(2)(i) experienced job growth since 2005 and
27.9have at least 2,000 jobs within the commuter
27.10shed;
27.11(ii) evidence of anticipated job expansion; or
27.12(iii) a significant portion of area employees
27.13who commute more than 30 miles between
27.14their residence and their employment.
27.15(c) Priority shall be given to programs and
27.16projects that are land trust programs and
27.17programs that work in coordination with a
27.18land trust program.
27.19(d) Of this amount, $500,000 is for
27.20homeownership opportunities for families
27.21who have been evicted or been given
27.22notice of an eviction due to a disabled
27.23child in the home, including adjustments
27.24for the incremental increase in costs of
27.25addressing the unique housing needs of those
27.26households. Any funds not expended for this
27.27purpose may be returned to the challenge
27.28fund after October 31, 2014.
27.29(d) (e) The base funding for this program in
27.30the 2016-2017 biennium is $12,925,000 each
27.31year.

27.32    Sec. 11. Laws 2013, chapter 85, article 1, section 5, is amended to read:

28.1

Sec. 5. EXPLORE MINNESOTA TOURISM

$

13,988,000

$

13,988,000

28.2(a) To develop maximum private sector
28.3involvement in tourism, $500,000 in fiscal
28.4year 2014 and $500,000 in fiscal year 2015
28.5must be matched by Explore Minnesota
28.6Tourism from nonstate sources. Each $1 of
28.7state incentive must be matched with $6 of
28.8private sector funding. Cash match is defined
28.9as revenue to the state or documented cash
28.10expenditures directly expended to support
28.11Explore Minnesota Tourism programs. Up
28.12to one-half of the private sector contribution
28.13may be in-kind or soft match. The incentive
28.14in fiscal year 2014 shall be based on fiscal
28.15year 2013 private sector contributions. The
28.16incentive in fiscal year 2015 shall be based on
28.17fiscal year 2014 private sector contributions.
28.18This incentive is ongoing.
28.19Funding for the marketing grants is available
28.20either year of the biennium. Unexpended
28.21grant funds from the first year are available
28.22in the second year.
28.23(b) $100,000 of the second year appropriation
28.24is for a grant to the Mille Lacs Tourism
28.25Council to enhance marketing activities
28.26related to tourism promotion in the Mille
28.27Lacs Lake area.
28.28(c) $100,000 of the second year appropriation
28.29is for additional marketing activities.

28.30    Sec. 12. Laws 2013, chapter 85, article 1, section 13, subdivision 5, is amended to read:

28.31

Subd. 5.Telecommunications

1,949,000

2,249,000

29.1	Appropriations by Fund
29.2	General	1,009,000	1,009,000
29.3	Special Revenue	940,000	1,240,000

29.4$940,000 in fiscal year 2014 and $1,240,000
29.5in fiscal year 2015 are appropriated to the
29.6commissioner from the telecommunication
29.7access fund for the following transfers. This
29.8appropriation is added to the department's
29.9base.
29.10(1) $500,000 in fiscal year 2014 and $800,000
29.11in fiscal year 2015 to the commissioner of
29.12human services to supplement the ongoing
29.13operational expenses of the Commission
29.14of Deaf, DeafBlind, and Hard-of-Hearing
29.15Minnesotans;
29.16(2) $290,000 in fiscal year 2014 and $290,000
29.17in fiscal year 2015 to the chief information
29.18officer for the purpose of coordinating
29.19technology accessibility and usability; and
29.20(3) $150,000 in fiscal year 2014 and $150,000
29.21in fiscal year 2015 to the Legislative
29.22Coordinating Commission for captioning of
29.23legislative coverage and for a consolidated
29.24access fund for other state agencies. These
29.25transfers are subject to Minnesota Statutes,
29.26section 16A.281.

29.27    Sec. 13. EXTENDED EMPLOYMENT CARRYFORWARD.
29.28Notwithstanding Minnesota Statutes, section 268A.15, subdivision 8, appropriations
29.29from the general fund and workforce development fund in fiscal years 2014 and 2015
29.30to the commissioner of employment and economic development for the purposes of
29.31Minnesota Statutes, sections 268A.13 and 268A.14, are available until June 30, 2015.

29.32    Sec. 14. ASSIGNED RISK TRANSFER.
30.1(a) By June 30, 2015, if the commissioner of commerce determines on the basis of
30.2an audit that there is an excess surplus in the assigned risk plan created under Minnesota
30.3Statutes, section 79.252, the commissioner of management and budget shall transfer
30.4the amount of the excess surplus, not to exceed $10,500,000, to the general fund. This
30.5transfer occurs prior to any transfer under Minnesota Statutes, section 79.251, subdivision
30.61, paragraph (a), clause (1). This is a onetime transfer.
30.7(b) By June 30, 2015, and each year thereafter, if the commissioner of commerce
30.8determines on the basis of an audit that there is an excess surplus in the assigned risk plan
30.9created under Minnesota Statutes, section 79.252, the commissioner of management and
30.10budget shall transfer the amount of the excess surplus, not to exceed $4,820,000 each
30.11year, to the Minnesota minerals 21st century fund under Minnesota Statutes, section
30.12116J.423. This transfer occurs prior to any transfer under Minnesota Statutes, section
30.1379.251, subdivision 1, paragraph (a), clause (1), but after the transfer authorized in
30.14paragraph (a). The total amount authorized for all transfers under this paragraph must not
30.15exceed $24,100,000. This paragraph expires the day following the transfer in which the
30.16total amount transferred under this paragraph to the Minnesota minerals 21st century
30.17fund equals $24,100,000.
30.18(c) By June 30, 2015, if the commissioner of commerce determines on the basis of
30.19an audit that there is an excess surplus in the assigned risk plan created under Minnesota
30.20Statutes, section 79.252, the commissioner of management and budget shall transfer the
30.21amount of the excess surplus, not to exceed $4,820,000, to the general fund. This transfer
30.22occurs prior to any transfer under Minnesota Statutes, section 79.251, subdivision 1,
30.23paragraph (a), clause (1), but after any transfers authorized in paragraphs (a) and (b). If
30.24a transfer occurs under this paragraph, the amount transferred is appropriated from the
30.25general fund in fiscal year 2015 to the commissioner of labor and industry for the purposes
30.26of section 15. Both the transfer and appropriation under this paragraph are onetime.
30.27(d) By June 30, 2016, if the commissioner of commerce determines on the basis of
30.28an audit that there is an excess surplus in the assigned risk plan created under Minnesota
30.29Statutes, section 79.252, the commissioner of management and budget shall transfer the
30.30amount of the excess surplus, not to exceed $4,820,000, to the general fund. This transfer
30.31occurs prior to any transfer under Minnesota Statutes, section 79.251, subdivision 1,
30.32paragraph (a), clause (1), but after the transfers authorized in paragraphs (a) and (b). If
30.33a transfer occurs under this paragraph, the amount transferred is appropriated from the
30.34general fund in fiscal year 2016 to the commissioner of labor and industry for the purposes
30.35of section 15. Both the transfer and appropriation under this paragraph are onetime.
31.1(e) Notwithstanding Minnesota Statutes, section 16A.28, the commissioner of
31.2management and budget shall transfer to the assigned risk plan under Minnesota Statutes,
31.3section 79.252, any unencumbered or unexpended balance of the appropriations under
31.4paragraphs (c) and (d) remaining on June 30, 2017, or the date the commissioner of
31.5commerce determines that an excess surplus in the assigned risk plan does not exist,
31.6whichever occurs earlier.

31.7    Sec. 15. WORKERS' COMPENSATION SYSTEM REFORM; USE OF FUNDS.
31.8(a) The appropriations under section 14 to the commissioner of labor and industry
31.9are for reform of the workers' compensation system. Funds appropriated under section
31.1014, paragraphs (c) and (d), may be expended by the commissioner only after the advisory
31.11council on workers' compensation created under Minnesota Statutes, section 175.007, has
31.12approved a new system including, but not limited to: a Medicare-based diagnosis-related
31.13group (MS-DRG) or similar system for payment of workers' compensation inpatient
31.14hospital services. Of the amount appropriated under section 14, paragraphs (c) and (d), up
31.15to $100,000 may be used by the commissioner to develop and implement the new system
31.16approved by the advisory council on workers' compensation.
31.17(b) Funds available for expenditure under paragraph (a) may be used by the
31.18commissioner for reimbursement of expenditures that are reasonable and necessary to
31.19defray the costs of the implementation by hospitals, insurers, and self-insured employers
31.20of the new system including, but not limited to: a Medicare-based diagnosis-related group
31.21(MS-DRG) or similar system for payment of workers' compensation inpatient hospital
31.22services, litigation expense reform, worker safety training, administrative costs, or other
31.23related system reform.
31.24(c) For the purposes of this section, reasonable and necessary system reform and
31.25implementation costs include, but are not limited to:
31.26(1) the cost of analyzing data to determine the anticipated costs and savings of
31.27implementing the new system;
31.28(2) the cost of analyzing system or organizational changes necessary for
31.29implementation;
31.30(3) the cost of determining how an organization would implement group or other
31.31software;
31.32(4) the cost of upgrading existing software or purchasing new software and other
31.33technology upgrades needed for implementation;
31.34(5) the cost of educating and training staff about the new system as applied to
31.35workers' compensation; and
32.1(6) the cost of integrating the new system with electronic billing and remittance
32.2systems.

32.3    Sec. 16. AFFORDABLE HOUSING PLAN; DISPARITIES REPORT.
32.4(a) The Housing Finance Agency shall provide the chairs and ranking minority
32.5members of the house of representatives and senate committees with jurisdiction over the
32.6agency with the draft and final versions of its affordable housing plan before and after it
32.7has been submitted to the agency board for consideration.
32.8(b) The Housing Finance Agency shall annually report to the chairs and ranking
32.9minority members of the house of representatives and senate committees with jurisdiction
32.10over the agency on the progress, if any, the agency has made in closing the racial disparity
32.11gap and low-income concentrated housing disparities.

32.12ARTICLE 3

32.13JOBS, ECONOMIC DEVELOPMENT, ENERGY, AND LABOR

32.14    Section 1. Minnesota Statutes 2012, section 13.681, is amended by adding a
32.15subdivision to read:
32.16    Subd. 9. Community energy efficiency and renewable energy loan. Energy
32.17usage data provided by an industrial, commercial, or health care facility customer for
32.18community energy efficiency and renewable energy loans are governed by section
32.19216C.145, subdivision 3.

32.20    Sec. 2. [116J.394] DEFINITIONS.
32.21(a) For the purposes of sections 116J.394 to 116J.396, the following terms have
32.22the meanings given them.
32.23(b) "Broadband" or "broadband service" has the meaning given in section 116J.39,
32.24subdivision 1, paragraph (b).
32.25(c) "Broadband infrastructure" means networks of deployed telecommunications
32.26equipment and technologies necessary to provide high-speed Internet access and other
32.27advanced telecommunications services for end users.
32.28(d) "Commissioner" means the commissioner of employment and economic
32.29development.
32.30(e) "Last-mile infrastructure" means broadband infrastructure that serves as the
32.31final leg connecting the broadband service provider's network to the end-use customer's
32.32on-premises telecommunications equipment.
33.1(f) "Middle-mile infrastructure" means broadband infrastructure that links a
33.2broadband service provider's core network infrastructure to last-mile infrastructure.
33.3(g) "Political subdivision" means any county, city, town, school district, special
33.4district or other political subdivision, or public corporation.
33.5(h) "Underserved areas" means areas of Minnesota in which households or businesses
33.6lack access to wire-line broadband service at speeds that meet the state broadband goals of
33.7ten to 20 megabits per second download and five to ten megabits per second upload.
33.8(i) "Unserved areas" means areas of Minnesota in which households or businesses
33.9lack access to wire-line broadband service at speeds that meet a Federal Communications
33.10Commission threshold of four megabits per second download and one megabit per second
33.11upload.

33.12    Sec. 3. [116J.395] BORDER-TO-BORDER BROADBAND DEVELOPMENT
33.13GRANT PROGRAM.
33.14    Subdivision 1. Establishment. A grant program is established under the Department
33.15of Employment and Economic Development to award grants to eligible applicants in order
33.16to promote the expansion of access to broadband service in unserved or underserved
33.17areas of the state.
33.18    Subd. 2. Eligible expenditures. Grants may be awarded under this section to fund
33.19the acquisition and installation of middle-mile and last-mile infrastructure that support
33.20broadband service scalable to speeds of at least 100 megabits per second download and
33.21100 megabits per second upload.
33.22    Subd. 3. Eligible applicants. Eligible applicants for grants awarded under this
33.23section include:
33.24(1) an incorporated business or a partnership;
33.25(2) a political subdivision;
33.26(3) an Indian tribe;
33.27(4) a Minnesota nonprofit organization organized under chapter 317A;
33.28(5) a Minnesota cooperative association organized under chapter 308A or 308B; and
33.29(6) a Minnesota limited liability corporation organized under chapter 322B for the
33.30purpose of expanding broadband access.
33.31    Subd. 4. Application process. An eligible applicant must submit an application
33.32to the commissioner on a form prescribed by the commissioner. The commissioner shall
33.33develop administrative procedures governing the application and grant award process.
33.34The commissioner shall act as fiscal agent for the grant program and shall be responsible
33.35for receiving and reviewing grant applications and awarding grants under this section.
34.1    Subd. 5. Application contents. An applicant for a grant under this section shall
34.2provide the following information on the application:
34.3(1) the location of the project;
34.4(2) the kind and amount of broadband infrastructure to be purchased for the project;
34.5(3) evidence regarding the unserved or underserved nature of the community in
34.6which the project is to be located;
34.7(4) the number of households passed that will have access to broadband service as a
34.8result of the project, or whose broadband service will be upgraded as a result of the project;
34.9(5) significant community institutions that will benefit from the proposed project;
34.10(6) evidence of community support for the project;
34.11(7) the total cost of the project;
34.12(8) sources of funding or in-kind contributions for the project that will supplement
34.13any grant award; and
34.14(9) any additional information requested by the commissioner.
34.15    Subd. 6. Awarding grants. (a) In evaluating applications and awarding grants, the
34.16commissioner shall give priority to applications that are constructed in areas identified by
34.17the director of the Office of Broadband Development as unserved.
34.18(b) In evaluating applications and awarding grants, the commissioner may give
34.19priority to applications that:
34.20(1) are constructed in areas identified by the director of the Office of Broadband
34.21Development as underserved;
34.22(2) offer new or substantially upgraded broadband service to important community
34.23institutions including, but not limited to, libraries, educational institutions, public safety
34.24facilities, and healthcare facilities;
34.25(3) facilitate the use of telemedicine and electronic health records;
34.26(4) serve economically distressed areas of the state, as measured by indices of
34.27unemployment, poverty, or population loss that are significantly greater than the statewide
34.28average;
34.29(5) provide technical support and train residents, businesses, and institutions in the
34.30community served by the project to utilize broadband service;
34.31(6) include a component to actively promote the adoption of the newly available
34.32broadband services in the community;
34.33(7) provide evidence of strong support for the project from citizens, government,
34.34businesses, and institutions in the community;
34.35(8) provide access to broadband service to a greater number of unserved or
34.36underserved households and businesses; or
35.1(9) leverage greater amounts of funding for the project from other private and
35.2public sources.
35.3(c) The commissioner shall endeavor to award grants under this section to qualified
35.4applicants in all regions of the state.
35.5    Subd. 7. Limitation. (a) No grant awarded under this section may fund more than
35.650 percent of the total cost of a project.
35.7(b) Grants awarded to a single project under this section must not exceed $5,000,000.
35.8EFFECTIVE DATE.This section is effective the day following final enactment.

35.9    Sec. 4. [116J.396] BORDER-TO-BORDER BROADBAND FUND.
35.10    Subdivision 1. Account established. The border-to-border broadband fund account
35.11is established as a separate account in the special revenue fund in the state treasury. The
35.12commissioner shall credit to the account appropriations and transfers to the account.
35.13Earnings, such as interest, dividends, and any other earnings arising from assets of the
35.14account, must be credited to the account. Funds remaining in the account at the end of a
35.15fiscal year are not canceled to the general fund, but remain in the account until expended.
35.16The commissioner shall manage the account.
35.17    Subd. 2. Expenditures. Money in the account may be used only:
35.18(1) for grant awards made under section 116J.395, including costs incurred by the
35.19Department of Employment and Economic Development to administer that section;
35.20(2) to supplement revenues raised by bonds sold by local units of government for
35.21broadband infrastructure development; or
35.22(3) to contract for the collection of broadband deployment data from providers and
35.23the creation of maps showing the availability of broadband service.
35.24    Subd. 3. Appropriation. Money in the account is appropriated to the commissioner
35.25for the purposes of subdivision 2.
35.26EFFECTIVE DATE.This section is effective the day following final enactment.

35.27    Sec. 5. Minnesota Statutes 2012, section 116J.423, subdivision 2, is amended to read:
35.28    Subd. 2. Use of fund. The commissioner shall use money in the fund to make
35.29loans or equity investments in mineral or taconite processing facilities including, but
35.30not limited to, taconite processing, direct reduction processing, and, steel production
35.31 facilities, facilities for the manufacturing of renewable energy products, or facilities for the
35.32manufacturing of biobased or biomass products, and that are located within the taconite
35.33relief tax area as defined under section 273.134. The commissioner must, prior to making
36.1any loans or equity investments and after consultation with industry and public officials,
36.2develop a strategy for making loans and equity investments that assists the Minnesota
36.3mineral industry in becoming globally competitive. Money in the fund may also be used to
36.4pay for the costs of carrying out the commissioner's due diligence duties under this section.

36.5    Sec. 6. Minnesota Statutes 2012, section 116J.8731, subdivision 5, is amended to read:
36.6    Subd. 5. Grant limits. A Minnesota investment fund grant may not be approved for
36.7an amount in excess of $1,000,000. This limit covers all money paid to complete the same
36.8project, whether paid to one or more grant recipients and whether paid in one or more
36.9fiscal years. A local community or recognized Indian tribal government may retain 20
36.10 40 percent, but not more than $100,000, of a Minnesota investment fund grant when it is
36.11repaid to the local community or recognized Indian tribal government by the person or
36.12entity to which it was loaned by the local community or Indian tribal government. Money
36.13repaid to the state must be credited to a Minnesota investment revolving loan account in
36.14the state treasury. Funds in the account are appropriated to the commissioner and must
36.15be used in the same manner as are funds appropriated to the Minnesota investment fund.
36.16Funds repaid to the state through existing Minnesota investment fund agreements must be
36.17credited to the Minnesota investment revolving loan account effective July 1, 2005. A
36.18grant or loan may not be made to a person or entity for the operation or expansion of a
36.19casino or a store which is used solely or principally for retail sales. Persons or entities
36.20receiving grants or loans must pay each employee total compensation, including benefits
36.21not mandated by law, that on an annualized basis is equal to at least 110 percent of the
36.22federal poverty level for a family of four.

36.23    Sec. 7. Minnesota Statutes 2012, section 116L.98, is amended to read:
36.24116L.98 WORKFORCE PROGRAM OUTCOMES.
36.25    Subdivision 1. Requirements. The commissioner shall develop and implement a
36.26set of standard approaches for assessing the outcomes of workforce programs under this
36.27chapter. The outcomes assessed must include, but are not limited to, periodic comparisons
36.28of workforce program participants and nonparticipants uniform outcome measurement
36.29and reporting system for adult workforce-related programs funded in whole or in part by
36.30the workforce development fund.
36.31The commissioner shall also monitor the activities and outcomes of programs and
36.32services funded by legislative appropriations and administered by the department on a
36.33pass-through basis and develop a consistent and equitable method of assessing recipients
36.34for the costs of its monitoring activities.
37.1    Subd. 2. Definitions. (a) For the purposes of this section, the terms defined in
37.2this subdivision have the meanings given.
37.3(b) "Credential" means postsecondary degrees, diplomas, licenses, and certificates
37.4awarded in recognition of an individual's attainment of measurable technical or
37.5occupational skills necessary to obtain employment or advance with an occupation.
37.6This definition does not include certificates awarded by workforce investment boards or
37.7work-readiness certificates.
37.8(c) "Exit" means to have not received service under a workforce program for 90
37.9consecutive calendar days. The exit date is the last date of service.
37.10(d) "Net impact" means the use of matched control groups and regression analysis to
37.11estimate the impacts attributable to program participation net of other factors, including
37.12observable personal characteristics and economic conditions.
37.13(e) "Pre-enrollment" means the period of time before an individual was enrolled
37.14in a workforce program.
37.15    Subd. 3. Uniform outcome report card; reporting by commissioner. (a) By
37.16December 31 of each even-numbered year, the commissioner must report to the chairs
37.17and ranking minority members of the committees of the house of representatives and the
37.18senate having jurisdiction over economic development and workforce policy and finance
37.19the following information separately for each of the previous two fiscal or calendar years,
37.20for each program subject to the requirements of subdivision 1:
37.21(1) the total number of participants enrolled;
37.22(2) the median pre-enrollment wages based on participant wages for the second
37.23through the fifth calendar quarters immediately preceding the quarter of enrollment
37.24excluding those with zero income;
37.25(3) the total number of participants with zero income in the second through fifth
37.26calendar quarters immediately preceding the quarter of enrollment;
37.27(4) the total number of participants enrolled in training;
37.28(5) the total number of participants enrolled in training by occupational group;
37.29(6) the total number of participants that exited the program and the average
37.30enrollment duration of participants that have exited the program during the year;
37.31(7) the total number of exited participants who completed training;
37.32(8) the total number of exited participants who attained a credential;
37.33(9) the total number of participants employed during three consecutive quarters
37.34immediately following the quarter of exit, by industry;
37.35(10) the median wages of participants employed during three consecutive quarters
37.36immediately following the quarter of exit;
38.1(11) the total number of participants employed during eight consecutive quarters
38.2immediately following the quarter of exit, by industry; and
38.3(12) the median wages of participants employed during eight consecutive quarters
38.4immediately following the quarter of exit.
38.5(b) The report to the legislature must contain participant information by education
38.6level, race and ethnicity, gender, and geography, and a comparison of exited participants
38.7who completed training and those who did not.
38.8(c) The requirements of this section apply to programs administered directly by the
38.9commissioner or administered by other organizations under a grant made by the department.
38.10    Subd. 4. Data to commissioner; uniform report card. (a) A recipient of a future
38.11or past grant or direct appropriation made by or through the department must report data
38.12to the commissioner by September 1 of each even-numbered year on each of the items in
38.13subdivision 3 for each program it administers except wages and number employed, which
38.14the department shall provide. The data must be in a format prescribed by the commissioner.
38.15(b) Beginning July 1, 2014, the commissioner shall provide notice to grant applicants
38.16and recipients regarding the data collection and reporting requirements under this
38.17subdivision and must provide technical assistance to applicants and recipients to assist
38.18in complying with the requirements of this subdivision.
38.19    Subd. 5. Information. The information collected and reported under subdivisions 3
38.20and 4 shall be made available on the department's Web site.
38.21    Subd. 6. Limitations on future appropriations. (a) A program that is a recipient
38.22of public funds and subject to the requirements of this section as of May 1, 2014, is not
38.23eligible for additional state appropriations for any fiscal year beginning after June 30,
38.242015, unless all of the reporting requirements under subdivision 4 have been satisfied.
38.25(b) A program with an initial request for funds on or after the effective date of this
38.26section may be considered for receipt of public funds for the first two fiscal years only
38.27if a plan that demonstrates how the data collection and reporting requirements under
38.28subdivision 4 will be met has been submitted and approved by the commissioner. Any
38.29subsequent request for funds after an initial request is subject to the requirements of
38.30paragraph (a).
38.31    Subd. 7. Workforce program net impact analysis. (a) By January 15, 2015, the
38.32commissioner must report to the committees of the house of representatives and the senate
38.33having jurisdiction over economic development and workforce policy and finance on
38.34the results of the net impact pilot project already underway as of the date of enactment
38.35of this section.
39.1(b) The commissioner shall contract with an independent entity to conduct an ongoing
39.2net impact analysis of the programs included in the net impact pilot project under paragraph
39.3(a) and any other programs deemed appropriate by the commissioner. The net impact
39.4methodology used by the independent entity under this paragraph must be based on the
39.5methodology and evaluation design used in the net impact pilot project under paragraph (a).
39.6(c) By January 15, 2017, and every four years thereafter, the commissioner must
39.7report to the committees of the house of representatives and the senate having jurisdiction
39.8over economic development and workforce policy and finance the following information
39.9for each program subject to paragraph (b):
39.10(1) the net impact of workforce services on individual employment, earnings, and
39.11public benefit usage outcomes; and
39.12(2) a cost-benefit analysis for understanding the monetary impacts of workforce
39.13services from the participant and taxpayer points of view.
39.14The report under this paragraph must be made available to the public in an electronic
39.15format on the Department of Employment and Economic Development's Web site.
39.16(d) The department is authorized to create and maintain data-sharing agreements
39.17with other departments, including corrections, human services, and any other department
39.18that are necessary to complete the analysis. The department shall supply the information
39.19collected for use by the independent entity conducting net impact analysis pursuant to the
39.20data practices requirements under chapters 13, 13A, 13B, and 13C.

39.21    Sec. 8. Minnesota Statutes 2012, section 179.02, is amended by adding a subdivision
39.22to read:
39.23    Subd. 6. Receipt of gifts, money; appropriation. (a) The commissioner may apply
39.24for, accept, and disburse gifts, bequests, grants, or payments for services from the United
39.25States, the state, private foundations, or any other source.
39.26    (b) Money received by the commissioner under this subdivision must be deposited in
39.27a separate account in the state treasury and invested by the State Board of Investment. The
39.28amount deposited, including investment earnings, is appropriated to the commissioner
39.29to carry out duties of the commissioner.
39.30(c) The commissioner must post and maintain, on the Bureau of Mediation Services
39.31Web site, a list of the sources of funds and amounts received under this subdivision.
39.32EFFECTIVE DATE.This section is effective the day following final enactment.

39.33    Sec. 9. Minnesota Statutes 2012, section 181A.07, is amended by adding a subdivision
39.34to read:
40.1    Subd. 7. Approved training programs. The commissioner may grant exemptions
40.2from any provisions of sections 181A.01 to 181A.12 for minors participating in training
40.3programs approved by the commissioner; or students in a valid apprenticeship program
40.4taught by or required by a trade union, the commissioner of education, the commissioner
40.5of employment and economic development, the Board of Trustees of the Minnesota State
40.6Colleges and Universities, or the Board of Regents of the University of Minnesota.

40.7    Sec. 10. Minnesota Statutes 2012, section 216B.241, subdivision 1d, is amended to read:
40.8    Subd. 1d. Technical assistance. (a) The commissioner shall evaluate energy
40.9conservation improvement programs on the basis of cost-effectiveness and the reliability
40.10of the technologies employed. The commissioner shall, by order, establish, maintain, and
40.11update energy-savings assumptions that must be used when filing energy conservation
40.12improvement programs. The commissioner shall establish an inventory of the most
40.13effective energy conservation programs, techniques, and technologies, and encourage all
40.14Minnesota utilities to implement them, where appropriate, in their service territories.
40.15The commissioner shall describe these programs in sufficient detail to provide a utility
40.16reasonable guidance concerning implementation. The commissioner shall prioritize the
40.17opportunities in order of potential energy savings and in order of cost-effectiveness. The
40.18commissioner may contract with a third party to carry out any of the commissioner's duties
40.19under this subdivision, and to obtain technical assistance to evaluate the effectiveness of
40.20any conservation improvement program. The commissioner may assess up to $800,000
40.21annually until June 30, 2009, and $450,000 $850,000 annually thereafter for the purposes
40.22of this subdivision. The assessments must be deposited in the state treasury and credited
40.23to the energy and conservation account created under subdivision 2a. An assessment
40.24made under this subdivision is not subject to the cap on assessments provided by section
40.25216B.62 , or any other law.
40.26    (b) Of the assessment authorized under paragraph (a), the commissioner may expend
40.27up to $400,000 annually for the purpose of developing, operating, maintaining, and
40.28providing technical support for a uniform electronic data reporting and tracking system
40.29available to all utilities subject to this section, in order to enable accurate measurement of
40.30the cost and energy savings of the energy conservation improvements required by this
40.31section. This paragraph expires June 30, 2017, and may be used for no more than three
40.32annual assessments occurring prior to that date.
40.33EFFECTIVE DATE.This section is effective the day following final enactment
40.34and applies to assessments made after June 30, 2014.

41.1    Sec. 11. Minnesota Statutes 2012, section 216C.145, is amended to read:
41.2216C.145 MICROENERGY COMMUNITY ENERGY EFFICIENCY AND
41.3RENEWABLE ENERGY LOAN PROGRAM.
41.4    Subdivision 1. Definitions. (a) The definitions in this subdivision apply to this
41.5section.
41.6    (b) "Small-scale Community energy efficiency and renewable energy projects"
41.7projects include means solar thermal water heating, solar electric or photovoltaic
41.8equipment, small wind energy conversion systems of less than 250 kW, anaerobic digester
41.9gas systems, microhydro systems up to 100 kW, and heating and cooling applications
41.10using geothermal energy solar thermal or ground source technology, and cost-effective
41.11energy efficiency projects installed in industrial, commercial or public buildings, or health
41.12care facilities.
41.13(c) "Health care facilities" means a hospital licensed under sections 144.50 to
41.14144.56, or a nursing home licensed under chapter 144A.
41.15(d) "Industrial customer" means a business that is classified under the North
41.16American Industrial Classification System under codes 21, 31 to 33, 48, 49, or 562.
41.17(e) "Small business" means a business that employs 50 or fewer employees.
41.18    (c) (f) "Unit of local government" means any home rule charter or statutory city,
41.19county, commission, district, authority, or other political subdivision or instrumentality
41.20of this state, including a sanitary district, park district, the Metropolitan Council, a port
41.21authority, an economic development authority, or a housing and redevelopment authority.
41.22    Subd. 2. Program established. The commissioner of commerce shall develop,
41.23implement, and administer a microenergy community energy efficiency and renewable
41.24energy loan program under this section.
41.25    Subd. 3. Loan purposes. (a) The commissioner may issue low-interest, long-term
41.26loans to units of local government to:
41.27    (1) finance community-owned or publicly owned small scale renewable energy
41.28systems or to cost-effective energy efficiency improvements to public buildings; or
41.29     provide loans or other aids to small businesses to install small-scale renewable
41.30energy systems
41.31    (2) provide loans or other aids to industrial or commercial businesses or health care
41.32facilities for cost-effective energy efficiency projects or to install renewable energy systems.
41.33    (b) The commissioner may participate in loans made by the Housing Finance
41.34Agency to residential property owners, private developers, nonprofit organizations,
41.35or units of local government under sections 462A.05, subdivisions 14 and 18; and
41.36462A.33 for the construction, purchase, or rehabilitation of residential housing to facilitate
42.1the installation of small-scale renewable energy systems in residential housing and
42.2cost-effective energy conservation improvements identified in an energy efficiency audit.
42.3The commissioner shall assist the Housing Finance Agency in assessing the technical
42.4qualifications of loan applicants.
42.5(c) If an industrial, commercial, or health care facility customer seeks a loan
42.6under paragraph (a), clause (2), the commissioner may require an individual industrial,
42.7commercial, or health care facility customer to provide its energy usage data for the
42.8limited purpose of assessing the energy and cost savings of the project that is subject to
42.9the loan. Industrial, commercial, or health care facility customer's energy usage data
42.10may only be released upon the express, written consent of the individual industrial,
42.11commercial, or health care facility customer. The commissioner shall not require an
42.12industrial, commercial, or health care facility customer to provide energy usage data
42.13or aggregation of energy usage data that includes an industrial, commercial, or health
42.14care facility customer for any other loan under this section. Any individual industrial,
42.15commercial, or health care facility customer's energy usage data provided under this
42.16section shall be classified as nonpublic data as defined in section 13.02, subdivision 9.
42.17    Subd. 4. Technical standards. The commissioner shall determine technical
42.18standards for small-scale renewable energy systems community energy efficiency and
42.19renewable energy projects to qualify for loans under this section.
42.20    Subd. 5. Loan proposals. (a) At least once a year, the commissioner shall publish in
42.21the State Register a request for proposals from units of local government for a loan under
42.22this section. Within 45 days after the deadline for receipt of proposals, the commissioner
42.23shall select proposals based on the following criteria:
42.24    (1) the reliability and cost-effectiveness of the renewable or energy efficiency
42.25technology to be installed under the proposal;
42.26    (2) the extent to which the proposal effectively integrates with the conservation and
42.27energy efficiency programs or goals of the energy utilities serving the proposer;
42.28    (3) the total life cycle energy use and greenhouse gas emissions reductions per
42.29dollar of installed cost;
42.30    (4) the diversity of the renewable energy or energy efficiency technology installed
42.31under the proposal;
42.32    (5) the geographic distribution of projects throughout the state;
42.33    (6) the percentage of total project cost requested;
42.34    (7) the proposed security for payback of the loan; and
42.35    (8) other criteria the commissioner may determine to be necessary and appropriate.
43.1    Subd. 6. Loan terms. A loan under this section must be issued at the lowest interest
43.2rate required to recover principal and interest plus the costs of issuing the loan, and must
43.3be for a minimum of 15 years, unless the commissioner determines that a shorter loan
43.4period of no less than ten five years is necessary and feasible.
43.5    Subd. 7. Account. A microenergy community energy efficiency and renewable
43.6energy loan account is established in the state treasury. Money in the account consists of
43.7the proceeds of revenue bonds issued under section 216C.146, interest and other earnings
43.8on money in the account, money received in repayment of loans from the account,
43.9legislative appropriations, and money from any other source credited to the account.
43.10    Subd. 8. Appropriation. Money in the account is appropriated to the commissioner
43.11of commerce to make microenergy community energy efficiency and renewable energy
43.12 loans under this section and to the commissioner of management and budget to pay debt
43.13service and other costs under section 216C.146. Payment of debt service costs and funding
43.14reserves take priority over use of money in the account for any other purpose.

43.15    Sec. 12. Minnesota Statutes 2012, section 216C.146, is amended to read:
43.16216C.146 MICROENERGY COMMUNITY ENERGY EFFICIENCY AND
43.17RENEWABLE ENERGY LOAN REVENUE BONDS.
43.18    Subdivision 1. Bonding authority; definition. (a) The commissioner of
43.19management and budget, if requested by the commissioner of commerce, shall sell and
43.20issue state revenue bonds for the following purposes:
43.21    (1) to make microenergy community energy efficiency and renewable energy loans
43.22under section 216C.145;
43.23    (2) to pay the costs of issuance, debt service, including capitalized interest, and
43.24bond insurance or other credit enhancements, and to fund reserves, and make payments
43.25under other agreements entered into under subdivision 2, but excludes refunding bonds
43.26sold and issued under this subdivision; and
43.27    (3) to refund bonds issued under this section.
43.28    (b) The aggregate principal amount of bonds for the purposes of paragraph (a),
43.29clause (1), that may be outstanding at any time may not exceed $100,000,000, of which
43.30up to $20,000,000 shall be reserved for community energy efficiency and renewable
43.31energy projects taking place in small businesses and public buildings; the principal
43.32amount of bonds that may be issued for the purposes of paragraph (a), clauses (2) and
43.33(3), is not limited.
43.34    (c) For the purpose of this section, "commissioner" means the commissioner of
43.35management and budget.
44.1(d) Revenue bonds may be issued from time to time in one or more series on the
44.2terms and conditions the commissioner determines to be in the best interests of the state at
44.3any price or percentages of par value, but the term on any series of revenue bonds may
44.4not exceed 25 years. The revenue bonds of each issue and series thereof shall be dated
44.5and bear interest, and may be includable in or excludable from the gross income of the
44.6owners for federal income tax purposes.
44.7(e) Revenue bonds may be sold at either public or private sale. Any bid received
44.8may be rejected.
44.9(f) The revenue bonds are not subject to chapter 16C.
44.10(g) Notwithstanding any other law, revenue bonds issued under this section shall
44.11be fully negotiable.
44.12(h) Revenue bond terms must be no longer than the term of any corresponding
44.13loan made under section 216C.145.
44.14    Subd. 2. Procedure. The commissioner may sell and issue the bonds on the terms
44.15and conditions the commissioner determines to be in the best interests of the state. The
44.16bonds may be sold at public or private sale. The commissioner may enter into any
44.17agreements or pledges the commissioner determines necessary or useful to sell the bonds
44.18that are not inconsistent with section 216C.145. Sections 16A.672 to 16A.675 apply to
44.19the bonds. The proceeds of the bonds issued under this section must be credited to the
44.20microenergy community energy efficiency and renewable energy loan account created
44.21under section 216C.145.
44.22    Subd. 3. Revenue sources. The debt service on the bonds is payable only from the
44.23following sources:
44.24    (1) revenue credited to the microenergy community energy efficiency and renewable
44.25energy loan account from the sources identified in section 216C.145 or from any other
44.26source; and
44.27    (2) other revenues pledged to the payment of the bonds, including reserves
44.28established by a local government unit.
44.29    Subd. 4. Refunding bonds. The commissioner may issue bonds to refund
44.30outstanding bonds issued under subdivision 1, including the payment of any redemption
44.31premiums on the bonds and any interest accrued or to accrue to the first redemption date
44.32after delivery of the refunding bonds. The proceeds of the refunding bonds may, at the
44.33discretion of the commissioner, be applied to the purchases or payment at maturity of the
44.34bonds to be refunded, or the redemption of the outstanding bonds on the first redemption
44.35date after delivery of the refunding bonds and may, until so used, be placed in escrow to
45.1be applied to the purchase, retirement, or redemption. Refunding bonds issued under this
45.2subdivision must be issued and secured in the manner provided by the commissioner.
45.3    Subd. 5. Not a general or moral obligation. Bonds issued under this section are
45.4not public debt, and the full faith, credit, and taxing powers of the state are not pledged
45.5for their payment. The bonds may not be paid, directly in whole or in part from a tax of
45.6statewide application on any class of property, income, transaction, or privilege. Payment
45.7of the bonds is limited to the revenues explicitly authorized to be pledged under this
45.8section. The state neither makes nor has a moral obligation to pay the bonds if the pledged
45.9revenues and other legal security for them is insufficient.
45.10    Subd. 6. Trustee. The commissioner may contract with and appoint a trustee for
45.11bondholders. The trustee has the powers and authority vested in it by the commissioner
45.12under the bond and trust indentures.
45.13    Subd. 7. Pledges. A pledge made by the commissioner is valid and binding from
45.14the time the pledge is made. The money or property pledged and later received by the
45.15commissioner is immediately subject to the lien of the pledge without any physical
45.16delivery of the property or money or further act, and the lien of the pledge is valid and
45.17binding as against all parties having claims of any kind in tort, contract, or otherwise
45.18against the commissioner, whether or not those parties have notice of the lien or pledge.
45.19Neither the order nor any other instrument by which a pledge is created need be recorded.
45.20    Subd. 8. Bonds; purchase and cancellation. The commissioner, subject to
45.21agreements with bondholders that may then exist, may, out of any money available for the
45.22purpose, purchase bonds of the commissioner at a price not exceeding (1) if the bonds are
45.23then redeemable, the redemption price then applicable plus accrued interest to the next
45.24interest payment date thereon, or (2) if the bonds are not redeemable, the redemption price
45.25applicable on the first date after the purchase upon which the bonds become subject to
45.26redemption plus accrued interest to that date.
45.27    Subd. 9. State pledge against impairment of contracts. The state pledges and
45.28agrees with the holders of any bonds that the state will not limit or alter the rights vested in
45.29the commissioner to fulfill the terms of any agreements made with the bondholders, or
45.30in any way impair the rights and remedies of the holders until the bonds, together with
45.31interest on them, with interest on any unpaid installments of interest, and all costs and
45.32expenses in connection with any action or proceeding by or on behalf of the bondholders,
45.33are fully met and discharged. The commissioner may include this pledge and agreement
45.34of the state in any agreement with the holders of bonds issued under this section.
46.1    Subd. 10. Revenue bonds as legal investments. Any of the following entities may
46.2legally invest any sinking funds, money, or other funds belonging to them or under their
46.3control in any revenue bonds issued under this section:
46.4(1) the state, the investment board, public officers, municipal corporations, political
46.5subdivisions, and public bodies;
46.6(2) banks and bankers, savings and loan associations, credit unions, trust companies,
46.7savings banks and institutions, investment companies, insurance companies, insurance
46.8associations, and other persons carrying on a banking or insurance business; and
46.9(3) personal representatives, guardians, trustees, and other fiduciaries.
46.10    Subd. 11. Waiver of immunity. The waiver of immunity by the state provided for
46.11by section 3.751, subdivision 1, shall be applicable to the revenue bonds and any ancillary
46.12contracts to which the commissioner is a party.

46.13    Sec. 13. Minnesota Statutes 2012, section 268A.01, subdivision 14, is amended to read:
46.14    Subd. 14. Affirmative business enterprise employment. "Affirmative business
46.15enterprise employment" means employment which provides paid work on the premises of
46.16an affirmative business enterprise as certified by the commissioner.
46.17    Affirmative business enterprise employment is considered community employment
46.18for purposes of funding under Minnesota Rules, parts 3300.1000 to 3300.2055, provided
46.19that the wages for individuals reported must be at or above customary wages for the same
46.20employer. The employer must also provide one benefit package that is available to all
46.21employees at the specific site certified as an affirmative business enterprise.

46.22    Sec. 14. [268A.16] EMPLOYMENT SERVICES FOR PERSONS WHO ARE
46.23DEAF, DEAFBLIND, OR HARD-OF-HEARING.
46.24    Subdivision 1. Deaf, deafblind, and hard-of-hearing grants. (a) The
46.25commissioner shall develop and implement a specialized statewide grant program to
46.26provide long-term supported employment services for persons who are deaf, deafblind,
46.27and hard-of-hearing. Programs and services eligible for grants under this section must:
46.28(1) assist persons who are deaf, deafblind, and hard-of-hearing in retaining and
46.29advancing in employment;
46.30(2) provide services with staff who must possess fluency in all forms of manual
46.31communication, including American Sign Language; knowledge of hearing loss and
46.32psychosocial implications; sensitivity to cultural issues; familiarity with community
46.33services and communication strategies for people who are hard-of-hearing and do not sign;
46.34and awareness of adaptive technology options;
47.1(3) provide specialized employment support services for individuals who have
47.2a combined hearing and vision loss that address the individual's unique ongoing visual
47.3and auditory communication needs; and
47.4(4) involve clients in the planning, development, oversight, and delivery of
47.5long-term ongoing support services.
47.6(b) Priority for funding shall be given to organizations with experience in developing
47.7innovative employment support services for persons who are deaf, deafblind, and
47.8hard-of-hearing. Each applicant for funds under this section shall submit an evaluation
47.9protocol as part of the grant application.
47.10    Subd. 2. Employment services for transition-aged youth who are deaf,
47.11deafblind, and hard-of-hearing. (a) The commissioner shall develop statewide or
47.12regional grant programs to provide school-based communication, access, and employment
47.13services for youth who are deaf, deafblind, and hard-of-hearing. Services must include
47.14staff who have the skills addressed in subdivision 1, clauses (2) and (3), and expertise
47.15in serving transition-aged youth.
47.16(b) Priority for funding shall be given to organizations with experience in providing
47.17innovative employment support services and readiness for postsecondary training for
47.18transition-aged youths who are deaf, deafblind, and hard-of-hearing. Each applicant for
47.19funds under this section shall submit an evaluation protocol as part of the grant application.
47.20    Subd. 3. Administration. Up to five percent of the biennial appropriation for the
47.21purpose of this section is available to the commissioner for administration of the program.
47.22EFFECTIVE DATE.This section is effective upon enactment of a direct
47.23appropriation for grants under this section.

47.24    Sec. 15. Minnesota Statutes 2012, section 298.28, subdivision 2, is amended to read:
47.25    Subd. 2. City or town where quarried or produced. (a) 4.5 cents per gross ton of
47.26merchantable iron ore concentrate, hereinafter referred to as "taxable ton," plus the amount
47.27provided in paragraph (c), must be allocated to the city or town in the county in which
47.28the lands from which taconite was mined or quarried were located or within which the
47.29concentrate was produced. If the mining, quarrying, and concentration, or different steps
47.30in either thereof are carried on in more than one taxing district, the commissioner shall
47.31apportion equitably the proceeds of the part of the tax going to cities and towns among
47.32such subdivisions upon the basis of attributing 50 percent of the proceeds of the tax to
47.33the operation of mining or quarrying the taconite, and the remainder to the concentrating
47.34plant and to the processes of concentration, and with respect to each thereof giving due
47.35consideration to the relative extent of such operations performed in each such taxing
48.1district. The commissioner's order making such apportionment shall be subject to review
48.2by the Tax Court at the instance of any of the interested taxing districts, in the same
48.3manner as other orders of the commissioner.
48.4(b) Four cents per taxable ton shall be allocated to cities and organized townships
48.5affected by mining because their boundaries are within three miles of a taconite mine pit
48.6that has been actively mined in at least one of the prior three years. If a city or town is
48.7located near more than one mine meeting these criteria, the city or town is eligible to
48.8receive aid calculated from only the mine producing the largest taxable tonnage. When
48.9more than one municipality qualifies for aid based on one company's production, the aid
48.10must be apportioned among the municipalities in proportion to their populations. Of The
48.11amounts distributed under this paragraph to each municipality, one-half must be used for
48.12infrastructure improvement projects, and one-half must be used for projects in which two
48.13or more municipalities cooperate. Each municipality that receives a distribution under this
48.14paragraph must report annually to the Iron Range Resources and Rehabilitation Board and
48.15the commissioner of Iron Range resources and rehabilitation on the projects involving
48.16cooperation with other municipalities.
48.17(c) The amount that would have been computed for the current year under Minnesota
48.18Statutes 2008, section 126C.21, subdivision 4, for a school district shall be distributed to
48.19the cities and townships within the school district in the proportion that their taxable net
48.20tax capacity within the school district bears to the taxable net tax capacity of the school
48.21district for property taxes payable in the year prior to distribution.

48.22    Sec. 16. Laws 2013, chapter 143, article 11, section 10, is amended to read:
48.23    Sec. 10. 2013 DISTRIBUTION ONLY.
48.24For the 2013 distribution, a special fund is established to receive 38.7 cents per ton of
48.25any excess of the balance remaining after distribution of amounts required under Minnesota
48.26Statutes, section 298.28, subdivision 6. The following amounts are allocated to St. Louis
48.27County acting as the fiscal agent for the recipients for the following specific purposes:
48.28(1) 5.1 cents per ton to the city of Hibbing for improvements to the city's water
48.29supply system;
48.30(2) 4.3 cents per ton to the city of Mountain Iron for the cost of moving utilities
48.31required as a result of actions undertaken by United States Steel Corporation;
48.32(3) 2.5 cents per ton to the city of Biwabik for improvements to the city's water
48.33supply system, payable upon agreement with ArcelorMittal to satisfy water permit
48.34conditions system to further the established collaborative efforts between the city of
48.35Biwabik, the city of Aurora, and surrounding communities;
49.1(4) 2 cents per ton to the city of Tower for the Tower Marina;
49.2(5) 2.4 cents per ton to the city of Grand Rapids for an eco-friendly heat transfer
49.3system to replace aging effluent lines and for parking lot repaving;
49.4(6) 2.4 cents per ton to the city of Two Harbors for wastewater treatment plant
49.5improvements;
49.6(7) 0.9 cents per ton to the city of Ely for the sanitary sewer replacement project;
49.7(8) 0.6 cents per ton to the town of Crystal Bay for debt service of the Claire Nelson
49.8Intermodal Transportation Center;
49.9(9) 0.5 cents per ton to the Greenway Joint Recreation Board for the Coleraine
49.10hockey arena renovations;
49.11(10) 1.2 cents per ton for the West Range Regional Fire Hall and Training Center
49.12to merge the existing fire services of Coleraine, Bovey, Taconite Marble, Calumet, and
49.13Greenway Township;
49.14(11) 2.5 cents per ton to the city of Hibbing for the Memorial Building;
49.15(12) 0.7 cents per ton to the city of Chisholm for public works infrastructure;
49.16(13) 1.8 cents per ton to the Crane Lake Water and Sanitary District for sanitary
49.17sewer extension;
49.18(14) 2.5 cents per ton for the city of Buhl for the roof on the Mesabi Academy;
49.19(15) 1.2 cents per ton to the city of Gilbert for the New Jersey/Ohio Avenue project;
49.20(16) 1.5 2.0 cents per ton to the city of Cook for street improvements, business park
49.21infrastructure, and a maintenance garage;
49.22(17) 0.5 cents per ton to the city of Cook for a water line project;
49.23(18) (17) 1.8 cents per ton to the city of Eveleth to be used for Jones Street
49.24reconstruction and the city auditorium;
49.25(19) (18) 0.5 cents per ton for the city of Keewatin for an electrical substation and
49.26water line replacements;
49.27(20) (19) 3.3 cents per ton for the city of Virginia for Fourth Street North
49.28infrastructure and Franklin Park improvement; and
49.29(21) (20) 0.5 cents per ton to the city of Grand Rapids for an economic development
49.30project.
49.31EFFECTIVE DATE.This section is effective the day following final enactment.

49.32    Sec. 17. 2014 DISTRIBUTION ONLY.
49.33For the 2014 distribution, a special fund is established to receive 18.84 cents per ton of
49.34any excess of the balance remaining after distribution of amounts required under Minnesota
50.1Statutes, section 298.28, subdivision 6. The following amounts are allocated to St. Louis
50.2County acting as the fiscal agent for the recipients for the following specific purposes:
50.3(1) 1.3 cents per ton to the city of Silver Bay for a water project under Highway 61;
50.4(2) 0.5 cents per ton to the city of Grand Rapids for soil and landscape remediation
50.5at the Reif Center;
50.6(3) 0.65 cents per ton to the city of LaPrairie for sewer, water, and road improvements
50.7to accommodate business expansion in the city;
50.8(4) 0.78 cents per ton to the city of Cohasset for an infrastructure project;
50.9(5) 0.39 cents per ton to Balkan Township for a salt storage building and
50.10energy-efficient cold storage building;
50.11(6) 3.0 cents per ton to the city of McKinley to construct a water line from the city
50.12of Gilbert or the city of Biwabik to the city of McKinley's distribution center in order to
50.13secure a potable water source for the city, provided that the city of McKinley secures
50.14the remainder of the project costs from other sources, and expires three years following
50.15the date of distribution;
50.16(7) 6.5 cents per ton to the Iron Range Resources and Rehabilitation Board for
50.17township block grants to be distributed by the board;
50.18(8) 0.5 cents per ton to the city of Marble for a water main and looping project;
50.19(9) 0.65 cents per ton to the city of Nashwauk for an infrastructure project;
50.20(10) 0.35 cents per ton to the city of Babbitt for demolition of a public building;
50.21(11) 0.65 cents per ton to the city of Hoyt Lakes for a storm water project;
50.22(12) 0.65 cents per ton to the city of Aurora for an infrastructure project;
50.23(13) 0.65 cents per ton to the town of Silver Creek for an infrastructure project;
50.24(14) 0.5 cents per ton to the city of Calumet for an infrastructure project;
50.25(15) 0.5 cents per ton to Nashwauk Township for the Nashwauk town hall;
50.26(16) 0.5 cents per ton to the city of Biwabik for emergency repair of a wastewater
50.27treatment project;
50.28(17) 0.47 cents per ton to the city of Cuyuna for improvements to city properties and
50.29facilities, including construction, electrical, water, sewer, and site preparation; and
50.30(18) 0.3 cents per ton to Morse Township for a recreational trail.
50.31EFFECTIVE DATE.This section is effective for the 2014 distribution, and all
50.32payments must be made separately and within ten days of the date of the August 2014
50.33payment.

50.34    Sec. 18. CIP ELECTRONIC DATA REPORTING AND TRACKING SYSTEM;
50.35EVALUATION.
51.1The commissioner of commerce may utilize a stakeholder group to annually monitor
51.2the usability and product development of systems for electronic data reporting and
51.3tracking for the use of utilities under the conservation improvement plan program under
51.4Minnesota Statutes, section 216B.241. The initial group may be convened by November
51.51, 2014, and must, among others, include representatives from all sectors of the gas and
51.6electric utility industry and providers of energy conservation.

51.7    Sec. 19. INNOVATION VOUCHER PILOT PROGRAM.
51.8(a) The commissioner of employment and economic development shall develop and
51.9implement an innovation voucher pilot program to provide financing to small businesses
51.10to purchase technical assistance and services from public higher education institutions
51.11and nonprofit entities to assist in the development or commercialization of innovative
51.12new products or services.
51.13(b) Funds available under this section may be used by a small business to access
51.14technical assistance and other services including, but not limited to: research, technical
51.15development, product development, commercialization, market development, technology
51.16exploration, and improved business practices including strategies to grow business and
51.17create operational efficiencies.
51.18(c) To be eligible for a voucher under this section, a business must enter into an
51.19agreement with the commissioner that includes:
51.20(1) a list of the technical assistance and services the business proposes to purchase
51.21and from whom the services will be purchased; and
51.22(2) deliverable outcomes in one of the following areas:
51.23(i) research and development;
51.24(ii) business model development;
51.25(iii) market feasibility;
51.26(iv) operations; or
51.27(v) other outcomes determined by the commissioner.
51.28As part of the agreement, the commissioner must approve the technical assistance and
51.29services to be purchased, and the entities from which the services or technical assistance
51.30will be purchased.
51.31(d) For the purposes of this section, a small business means a business with fewer
51.32than 40 employees.
51.33(e) A voucher award must not exceed $25,000 per business.
52.1(f) The commissioner must report to the chairs of the committees of the house of
52.2representatives and senate having jurisdiction over economic development and workforce
52.3policy and finance issues by December 1, 2014, on the vouchers awarded to date.

52.4    Sec. 20. COMMISSIONER'S ACCOUNTABILITY PLAN.
52.5By December 1, 2014, the commissioner shall report to the committees of the
52.6house of representatives and senate having jurisdiction over workforce development
52.7and economic development policy and finance issues, on the department's plan, and any
52.8request for funding, to design and implement a performance accountability outcome
52.9measurement system for programs under Minnesota Statutes, chapters 116J and 116L.

52.10    Sec. 21. COMPETENCY STANDARDS: ADVANCED MANUFACTURING,
52.11HEALTH CARE SERVICES, INFORMATION TECHNOLOGY, AND
52.12AGRICULTURE.
52.13(a) The commissioner of labor and industry, in collaboration with the commissioner
52.14of employment and economic development, shall establish competency standards for
52.15programs in advanced manufacturing, health care services, information technology,
52.16and agriculture. This initiative shall be administered by the Department of Labor and
52.17Industry. In establishing the competency standards, the commissioner shall convene
52.18recognized industry experts, representative employers, higher education institutions, and
52.19representatives of labor to assist in defining credible competency standards acceptable to
52.20the advanced manufacturing, health care services, information technology, and agriculture
52.21industries.
52.22(b) The outcomes expected from the initiatives in this section include:
52.23(1) establishment of competency standards for entry level and at least two additional
52.24higher skill levels in each industry;
52.25(2) verification of competency standards and skill levels and their transferability by
52.26representatives of each respective industry;
52.27(3) models of ways for Minnesota educational institutions to engage in providing
52.28education and training to meet the competency standards established; and
52.29(4) participation from the identified industry sectors.
52.30(c) By January 15, 2015, the commissioner of labor and industry shall report to the
52.31legislative committees with jurisdiction over jobs on the progress and success, including
52.32outcomes, of the initiatives in this section and recommendations on occupations in which
52.33similar competency standards should be developed and implemented.

53.1    Sec. 22. AGRICULTURAL EMPLOYMENT; REPORT.
53.2The commissioner of labor and industry shall report by January 1, 2015, to the chairs
53.3and ranking minority members of the standing committees of the house of representatives
53.4and senate with jurisdiction over labor policy and finance issues on the number of
53.5agricultural employers who are using a 48 hour work week and the number of employees
53.6affected. The commissioner shall include recommendations for appropriate compensation
53.7for such agricultural employees. For the purposes of this section, "agriculture" has the
53.8meaning given in Minnesota Rules, part 5200.0260.

53.9    Sec. 23. REPEALER.
53.10Minnesota Statutes 2012, section 116J.997, is repealed.

53.11ARTICLE 4

53.12STATE DEPARTMENTS AND VETERANS

53.13

Section 1. STATE DEPARTMENTS AND VETERANS APPROPRIATIONS.

53.14    The sums shown in the columns marked "Appropriations" are added to the
53.15appropriations in Laws 2013, chapter 142, article 1, to the agencies and for the purposes
53.16specified in this article. The appropriations are from the general fund, or another named
53.17fund, and are available for the fiscal years indicated for each purpose. The figures "2014"
53.18and "2015" used in this article mean that the addition to the appropriation listed under
53.19them is available for the fiscal year ending June 30, 2014, or June 30, 2015, respectively.
53.20Supplemental appropriations for the fiscal year ending June 30, 2014, are effective the
53.21day following final enactment.

53.22				APPROPRIATIONS
53.23				Available for the Year
53.24				Ending June 30
53.25					2014		2015

53.26 53.27

Sec. 2. STATE DEPARTMENTS AND VETERANS APPROPRIATIONS

53.28 53.29

Subdivision 1.Legislative Coordinating Commission

$

-0-

$

380,000

53.30$225,000 is for operating costs of the joint
53.31legislative offices. $150,000 each year is
53.32added to the base.
53.33$155,000 is for the Legislative Water
53.34Commission established in section 3.
54.1$145,000 each fiscal year is added to the base
54.2through fiscal year 2019.

54.3

Subd. 2.Minnesota Housing Finance Agency

-0-

250,000

54.4$250,000 is for at least five grants of up
54.5to $50,000 each to conduct a housing
54.6needs assessment for veterans in any
54.7community within the state. No more than
54.8five percent may be used by the Minnesota
54.9Housing Finance Agency to administer
54.10these grants. The grants may be awarded
54.11to any government or nongovernmental
54.12organization. The assessment, which may be
54.13a study or a survey, may examine the need for
54.14scattered site housing for veterans and their
54.15families who are homeless or in danger of
54.16homelessness or for housing that addresses
54.17the health care needs of disabled or aging
54.18veterans. The assessment must be started by
54.19July 30, 2015, and completed by July 30,
54.202016. The commissioner of the Minnesota
54.21Housing Finance Agency must provide
54.22copies of any completed assessment to the
54.23chairs and ranking minority members of
54.24the legislative committees with jurisdiction
54.25over housing and veterans affairs no later
54.26than January 1, 2017. This is a onetime
54.27appropriation.

54.28

Subd. 3.Racing Commission

100,000

85,000

54.29These appropriations are from the racing
54.30and card playing regulation accounts in the
54.31special revenue fund. These appropriations
54.32are onetime and are available in either year
54.33of the biennium.

54.34

Subd. 4. Amateur Sports Commission

-0-

50,000

55.1$50,000 is to develop a pilot program to
55.2prevent and reduce childhood obesity. This
55.3appropriation is onetime and is available
55.4until June 30, 2017.

55.5

Subd. 5.Minnesota Historical Society

-0-

25,000

55.6$25,000 is for a grant to Farm America for
55.7repairs and maintenance of the Minnesota
55.8Agricultural Interpretive Center and for audit
55.9expenses. This is a onetime appropriation
55.10and is available until June 30, 2017.

55.11

Subd. 6.Board of the Arts

-0-

750,000

55.12$750,000 is appropriated from the arts and
55.13cultural heritage fund for arts education in
55.14partnership with the President's Turnaround
55.15Arts Initiative. This appropriation is
55.16contingent on Minnesota being designated
55.17a Turnaround site. This appropriation is
55.18available until June 30, 2015. This is a
55.19onetime appropriation.

55.20

Subd. 7. Minnesota Humanities Center

-0-

225,000

55.21$125,000 is from the arts and cultural heritage
55.22fund for the Veterans' Voices program to
55.23educate and engage the community regarding
55.24veterans' contributions, knowledge, skills,
55.25and experiences. Of this amount, $25,000 is
55.26for transfer to the Association of Minnesota
55.27Public Education Radio Stations for statewide
55.28programming to promote the Veterans' Voices
55.29program. This is a onetime appropriation.
55.30$100,000 is from the arts and cultural
55.31heritage fund for professional development
55.32for kindergarten through grade 12 educators
55.33to better culturally engage their work with
55.34at-risk student populations. This may include
56.1new and original literature that addresses
56.2literacy of emerging cultural communities.
56.3This is a onetime appropriation.

56.4

Subd. 8. Department of Education

-0-

44,000

56.5This appropriation is to implement expedited
56.6and temporary licensing provisions of
56.7Minnesota Statutes, section 197.4552. This
56.8is a onetime appropriation.

56.9

Subd. 9.Board of Accountancy

-0-

44,000

56.10This appropriation is to implement expedited
56.11and temporary licensing provisions of
56.12Minnesota Statutes, section 197.4552. This
56.13is a onetime appropriation.

56.14 56.15 56.16

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

-0-

44,000

56.17This appropriation is to implement expedited
56.18and temporary licensing provisions of
56.19Minnesota Statutes, section 197.4552. This
56.20is a onetime appropriation.

56.21

Subd. 11.Board of Cosmetologist Examiners

-0-

20,000

56.22This appropriation is to implement expedited
56.23and temporary licensing provisions of
56.24Minnesota Statutes, section 197.4552. This
56.25is a onetime appropriation.

56.26

Subd. 12.Board of Barber Examiners

-0-

10,000

56.27This appropriation is to implement expedited
56.28and temporary licensing provisions of
56.29Minnesota Statutes, section 197.4552. This
56.30is a onetime appropriation.

56.31

Subd. 13.Board of Private Detectives

-0-

44,000

56.32This appropriation is to implement expedited
56.33and temporary licensing provisions of
57.1Minnesota Statutes, section 197.4552. This
57.2is a onetime appropriation.

57.3 57.4

Subd. 14.Board of Behavioral Health and Therapy

-0-

15,000

57.5This appropriation is from the state
57.6government special revenue fund to
57.7implement expedited and temporary licensing
57.8provisions of Minnesota Statutes, section
57.9197.4552. This is a onetime appropriation.

57.10

Subd. 15.Board of Dentistry

-0-

10,000

57.11This appropriation is from the state
57.12government special revenue fund to
57.13implement expedited and temporary licensing
57.14provisions of Minnesota Statutes, section
57.15197.4552. This is a onetime appropriation.

57.16 57.17

Subd. 16.Board of Dietetics and Nutrition Practice

-0-

10,000

57.18This appropriation is from the state
57.19government special revenue fund to
57.20implement expedited and temporary licensing
57.21provisions of Minnesota Statutes, section
57.22197.4552. This is a onetime appropriation.

57.23 57.24

Subd. 17.Board of Marriage and Family Therapy

-0-

14,000

57.25This appropriation is from the state
57.26government special revenue fund to
57.27implement expedited and temporary licensing
57.28provisions of Minnesota Statutes, section
57.29197.4552. This is a onetime appropriation.

57.30 57.31

Subd. 18.Board of Nursing Home Administrators

-0-

1,000

57.32This appropriation is from the state
57.33government special revenue fund to
57.34implement expedited and temporary licensing
58.1provisions of Minnesota Statutes, section
58.2197.4552. This is a onetime appropriation.

58.3

Subd. 19.Board of Optometry

-0-

10,000

58.4This appropriation is from the state
58.5government special revenue fund to
58.6implement expedited and temporary licensing
58.7provisions of Minnesota Statutes, section
58.8197.4552. This is a onetime appropriation.

58.9

Subd. 20.Board of Podiatric Medicine

-0-

10,000

58.10This appropriation is from the state
58.11government special revenue fund to
58.12implement expedited and temporary licensing
58.13provisions of Minnesota Statutes, section
58.14197.4552. This is a onetime appropriation.

58.15

Subd. 21.Board of Social Work

-0-

3,000

58.16This appropriation is from the state
58.17government special revenue fund to
58.18implement expedited and temporary licensing
58.19provisions of Minnesota Statutes, section
58.20197.4552. This is a onetime appropriation.

58.21    Sec. 3. [3.886] LEGISLATIVE WATER COMMISSION.
58.22    Subdivision 1. Establishment. A Legislative Water Commission is established.
58.23    Subd. 2. Membership. (a) The Legislative Water Commission consists of 12
58.24members appointed as follows:
58.25(1) six members of the senate, including three majority party members appointed by
58.26the majority leader and three minority party members appointed by the minority leader; and
58.27(2) six members of the house of representatives, including three majority party
58.28members appointed by the speaker of the house and three minority party members
58.29appointed by the minority leader.
58.30(b) Members serve at the pleasure of the appointing authority and continue to serve
58.31until their successors are appointed or until a member is no longer a member of the
58.32legislative body that appointed the member to the commission. Vacancies shall be filled in
58.33the same manner as the original positions. Vacancies occurring on the commission do not
59.1affect the authority of the remaining members of the Legislative Water Commission to
59.2carry out the function of the commission.
59.3(c) Members shall elect a chair, vice chair, and other officers as determined by
59.4the commission. The chair may convene meetings as necessary to conduct the duties
59.5prescribed by this section.
59.6    Subd. 3. Commission staffing. The Legislative Coordinating Commission must
59.7employ staff and contract with consultants as necessary to enable the Legislative Water
59.8Commission to carry out its duties and functions.
59.9    Subd. 4. Powers and duties. (a) The Legislative Water Commission shall review
59.10water policy reports and recommendations of the Environmental Quality Board, the Board
59.11of Water and Soil Resources, the Pollution Control Agency, the Department of Natural
59.12Resources, the Metropolitan Council, and other water-related reports as may be required
59.13by law or the legislature.
59.14(b) The commission may conduct public hearings and otherwise secure data and
59.15comments.
59.16(c) The commission shall make recommendations as it deems proper to assist the
59.17legislature in formulating legislation.
59.18(d) Data or information compiled by the Legislative Water Commission or its
59.19subcommittees shall be made available to the Legislative-Citizen Commission on
59.20Minnesota Resources, the Clean Water Council, and standing and interim committees of
59.21the legislature on request of the chair of the respective commission, council, or committee.
59.22(e) The commission shall coordinate with the Clean Water Council.
59.23    Subd. 5. Compensation. Members of the commission may receive per diem and
59.24expense reimbursement incurred doing the work of the commission in the manner and
59.25amount prescribed for per diem and expense payments by the senate Committee on Rules
59.26and Administration and the house of representatives Committee on Rules and Legislative
59.27Administration.
59.28    Subd. 6. Expiration. This section expires July 1, 2019.

59.29    Sec. 4. Minnesota Statutes 2013 Supplement, section 15A.082, subdivision 1, is
59.30amended to read:
59.31    Subdivision 1. Creation. A Compensation Council is created each odd-numbered
59.32year to assist the legislature in establishing the compensation of constitutional officers,
59.33members of the legislature, justices of the Supreme Court, judges of the Court of Appeals
59.34and district court, and the heads of state and metropolitan agencies included in section
59.3515A.0815 .
60.1EFFECTIVE DATE.This section is effective the day following final enactment.

60.2    Sec. 5. Minnesota Statutes 2013 Supplement, section 15A.082, subdivision 3, is
60.3amended to read:
60.4    Subd. 3. Submission of recommendations. (a) By March April 15 in each
60.5odd-numbered year, the Compensation Council shall submit to the speaker of the house
60.6and the president of the senate salary recommendations for constitutional officers,
60.7legislators, justices of the Supreme Court, and judges of the Court of Appeals and district
60.8court. The recommended salary for each other office must take effect on the first Monday
60.9in January of the next odd-numbered year, with no more than one adjustment, to take
60.10effect on January 1 of the year after that. The salary recommendations for legislators,
60.11 judges, and constitutional officers take effect if an appropriation of money to pay the
60.12recommended salaries is enacted after the recommendations are submitted and before
60.13their effective date. Recommendations may be expressly modified or rejected. The salary
60.14recommendations for legislators are subject to additional terms that may be adopted
60.15according to section 3.099, subdivisions 1 and 3.
60.16(b) The council shall also submit to the speaker of the house and the president of
60.17the senate recommendations for the salary ranges of the heads of state and metropolitan
60.18agencies, to be effective retroactively from January 1 of that year if enacted into law. The
60.19recommendations shall include the appropriate group in section 15A.0815 to which each
60.20agency head should be assigned and the appropriate limitation on the maximum range of
60.21the salaries of the agency heads in each group, expressed as a percentage of the salary of
60.22the governor.
60.23EFFECTIVE DATE.This section is effective the day following final enactment.

60.24    Sec. 6. Minnesota Statutes 2012, section 15A.082, subdivision 4, is amended to read:
60.25    Subd. 4. Criteria. In making compensation recommendations, the council shall
60.26consider the amount of compensation paid in government service and the private sector
60.27to persons with similar qualifications, the amount of compensation needed to attract
60.28and retain experienced and competent persons, and the ability of the state to pay the
60.29recommended compensation. In making recommendations for legislative compensation,
60.30the council shall also consider the average length of a legislative session, the amount of
60.31work required of legislators during interim periods, and opportunities to earn income from
60.32other sources without neglecting legislative duties.
60.33EFFECTIVE DATE.This section is effective the day following final enactment.

61.1    Sec. 7. Minnesota Statutes 2012, section 16C.16, subdivision 6a, is amended to read:
61.2    Subd. 6a. Veteran-owned small businesses. (a) Except when mandated by the
61.3federal government as a condition of receiving federal funds, the commissioner shall
61.4award up to a six percent preference, but no less than the percentage awarded to any
61.5other group under this section, in the amount bid on state procurement to certified small
61.6businesses that are majority-owned and operated by: veterans.
61.7(1) recently separated veterans who have served in active military service, at any
61.8time on or after September 11, 2001, and who have been discharged under honorable
61.9conditions from active service, as indicated by the person's United States Department of
61.10Defense form DD-214 or by the commissioner of veterans affairs;
61.11(2) veterans with service-connected disabilities, as determined at any time by the
61.12United States Department of Veterans Affairs; or
61.13(3) any other veteran-owned small businesses certified under section 16C.19,
61.14paragraph (d).
61.15(b) The purpose of this designation is to facilitate the transition of veterans from
61.16military to civilian life, and to help compensate veterans for their sacrifices, including but
61.17not limited to their sacrifice of health and time, to the state and nation during their military
61.18service, as well as to enhance economic development within Minnesota.

61.19    Sec. 8. Minnesota Statutes 2012, section 16C.19, is amended to read:
61.2016C.19 ELIGIBILITY; RULES.
61.21(a) A small business wishing to participate in the programs under section 16C.16,
61.22subdivisions 4 to 7, must be certified by the commissioner. The commissioner shall adopt
61.23by rule standards and procedures for certifying that small businesses, small targeted
61.24group businesses, and small businesses located in economically disadvantaged areas,
61.25and veteran-owned small businesses are eligible to participate under the requirements
61.26of sections 16C.16 to 16C.21. The commissioner shall adopt by rule standards and
61.27procedures for hearing appeals and grievances and other rules necessary to carry out the
61.28duties set forth in sections 16C.16 to 16C.21.
61.29(b) The commissioner may make rules which exclude or limit the participation of
61.30nonmanufacturing business, including third-party lessors, brokers, franchises, jobbers,
61.31manufacturers' representatives, and others from eligibility under sections 16C.16 to 16C.21.
61.32(c) The commissioner may make rules that set time limits and other eligibility limits
61.33on business participation in programs under sections 16C.16 to 16C.21.
61.34(d) Notwithstanding paragraph (c), for purposes of sections 16C.16 to 16C.21, a
61.35veteran-owned small business, the principal place of business of which is in Minnesota, is
62.1certified if it has been verified by the United States Department of Veterans Affairs as being
62.2either a veteran-owned small business or a service-disabled veteran-owned small business,
62.3in accordance with Public Law 109-461 and Code of Federal Regulations, title 38, part 74.
62.4(e) Until rules are adopted pursuant to paragraph (a) for the purpose of certifying
62.5veteran-owned small businesses, the provisions of Minnesota Rules, part 1230.1700, may
62.6be read to include veteran-owned small businesses. In addition to the documentation
62.7required in Minnesota Rules, part 1230.1700, the veteran owner must have been
62.8discharged under honorable conditions from active service, as indicated by the veteran
62.9owner's most current United States Department of Defense form DD-214.

62.10    Sec. 9. Minnesota Statutes 2012, section 122A.18, is amended by adding a subdivision
62.11to read:
62.12    Subd. 7c. Temporary military license. The Board of Teaching shall establish
62.13a temporary license in accordance with section 197.4552 for teaching. The fee for a
62.14temporary license under this subdivision shall be $87.90 for an online application or
62.15$86.40 for a paper application.

62.16    Sec. 10. [148.595] TEMPORARY MILITARY PERMIT; FEE.
62.17The Board of Optometry shall establish a temporary permit in accordance with
62.18section 197.4552. The fee for the temporary military permit is $250.

62.19    Sec. 11. Minnesota Statutes 2012, section 148.624, is amended by adding a subdivision
62.20to read:
62.21    Subd. 5. Temporary military permit. The board shall issue a temporary permit to
62.22members of the military in accordance with section 197.4552. The fee for the temporary
62.23permit is $250.

62.24    Sec. 12. Minnesota Statutes 2013 Supplement, section 148B.17, subdivision 2, is
62.25amended to read:
62.26    Subd. 2. Licensure and application fees. Nonrefundable licensure and application
62.27fees established by the board shall not exceed the following amounts:
62.28(1) application fee for national examination is $110;
62.29(2) application fee for Licensed Marriage and Family Therapist (LMFT) state
62.30examination is $110;
62.31(3) initial LMFT license fee is prorated, but cannot exceed $125;
62.32(4) annual renewal fee for LMFT license is $125;
63.1(5) late fee for LMFT license renewal is $50;
63.2(6) application fee for LMFT licensure by reciprocity is $220;
63.3(7) fee for initial Licensed Associate Marriage and Family Therapist (LAMFT)
63.4license is $75;
63.5(8) annual renewal fee for LAMFT license is $75;
63.6(9) late fee for LAMFT renewal is $25;
63.7(10) fee for reinstatement of license is $150; and
63.8(11) fee for emeritus status is $125; and
63.9(12) fee for temporary license for members of the military is $100.

63.10    Sec. 13. Minnesota Statutes 2012, section 148B.53, subdivision 3, is amended to read:
63.11    Subd. 3. Fee. Nonrefundable fees are as follows:
63.12    (1) initial license application fee for licensed professional counseling (LPC) - $150;
63.13    (2) initial license fee for LPC - $250;
63.14    (3) annual active license renewal fee for LPC - $250 or equivalent;
63.15    (4) annual inactive license renewal fee for LPC - $125;
63.16    (5) initial license application fee for licensed professional clinical counseling
63.17(LPCC) - $150;
63.18    (6) initial license fee for LPCC - $250;
63.19    (7) annual active license renewal fee for LPCC - $250 or equivalent;
63.20    (8) annual inactive license renewal fee for LPCC - $125;
63.21    (9) license renewal late fee - $100 per month or portion thereof;
63.22    (10) copy of board order or stipulation - $10;
63.23    (11) certificate of good standing or license verification - $25;
63.24    (12) duplicate certificate fee - $25;
63.25    (13) professional firm renewal fee - $25;
63.26    (14) sponsor application for approval of a continuing education course - $60;
63.27    (15) initial registration fee - $50;
63.28    (16) annual registration renewal fee - $25; and
63.29    (17) approved supervisor application processing fee - $30; and
63.30    (18) temporary license for members of the military - $250.

63.31    Sec. 14. Minnesota Statutes 2012, section 150A.091, is amended by adding a
63.32subdivision to read:
63.33    Subd. 9c. Temporary permit. Applications for a temporary military permit in
63.34accordance with section 197.4552 shall submit a fee not to exceed the amount of $250.

64.1    Sec. 15. Minnesota Statutes 2012, section 153.16, is amended by adding a subdivision
64.2to read:
64.3    Subd. 4. Temporary military permit. The board shall establish a temporary permit
64.4in accordance with section 197.4552. The fee for the temporary military permit is $250.

64.5    Sec. 16. Minnesota Statutes 2012, section 154.11, as amended by Laws 2013, chapter
64.685, article 5, section 12, is amended to read:
64.7154.11 EXAMINATION OF NONRESIDENT BARBERS AND
64.8INSTRUCTORS OF BARBERING; TEMPORARY APPRENTICE PERMITS;
64.9TEMPORARY MILITARY LICENSE AND APPRENTICE PERMITS.
64.10    Subdivision 1. Examination of nonresidents. A person who meets all of the
64.11requirements for barber registration in sections 154.001, 154.002, 154.003, 154.01 to
64.12154.161 , 154.19 to 154.21, and 154.24 to 154.26 and either has a license, certificate of
64.13registration, or an equivalent as a practicing barber or instructor of barbering from another
64.14state or country which in the discretion of the board has substantially the same requirements
64.15for registering barbers and instructors of barbering as required by sections 154.001,
64.16154.002 , 154.003, 154.01 to 154.161, 154.19 to 154.21, and 154.24 to 154.26 or can prove
64.17by sworn affidavits practice as a barber or instructor of barbering in another state or country
64.18for at least five years immediately prior to making application in this state, shall, upon
64.19payment of the required fee, be issued a certificate of registration without examination.
64.20    Subd. 2. Temporary apprentice permits for nonresidents. Any person who
64.21qualifies for examination as a registered barber under this section may apply for a
64.22temporary apprentice permit which is effective no longer than six months. All persons
64.23holding a temporary apprentice permit are subject to all provisions of sections 154.001,
64.24154.002 , 154.003, 154.01 to 154.161, 154.19 to 154.21, and 154.24 to 154.26 and the
64.25rules adopted by the board under those sections concerning the conduct and obligations
64.26of registered apprentices.
64.27    Subd. 3. Temporary military license. The board shall establish a temporary license
64.28for barbers and master barbers and a temporary permit for apprentices in accordance with
64.29section 197.4552. The fee for a temporary license under this subdivision for a master
64.30barber is $85. The fee for a temporary license under this subdivision for a barber is $180.
64.31The fee for a temporary permit under this subdivision for an apprentice is $80.

64.32    Sec. 17. Minnesota Statutes 2012, section 155A.27, is amended by adding a
64.33subdivision to read:
65.1    Subd. 5a. Temporary military license. The board shall establish temporary
65.2licenses for a cosmetologist, nail technician, and esthetician, in accordance with section
65.3197.4552. The fee for a temporary license under this subdivision for a cosmetologist, nail
65.4technician, or esthetician is $100.

65.5    Sec. 18. [197.4552] EXPEDITED AND TEMPORARY LICENSING FOR
65.6FORMER AND CURRENT MEMBERS OF THE MILITARY.
65.7    Subdivision 1. Expedited licensing processing. Notwithstanding any other law to
65.8the contrary, each professional licensing board defined in section 214.01, subdivisions 2
65.9and 3, shall establish a procedure to expedite the issuance of a license or certification to
65.10perform professional services regulated by each board to a qualified individual who is:
65.11(1) an active duty military member;
65.12(2) the spouse of an active duty military member; or
65.13(3) a veteran who has left service in the two years preceding the date of license or
65.14certification application, and has confirmation of an honorable or general discharge status.
65.15    Subd. 2. Temporary licenses. (a) Notwithstanding any other law to the contrary,
65.16each professional licensing board defined in section 214.01, subdivisions 2 and 3, shall
65.17establish a procedure to issue a temporary license or certification to perform professional
65.18services regulated by each board to a qualified individual who is:
65.19(1) an active duty military member;
65.20(2) the spouse of an active duty military member; or
65.21(3) a veteran who has left service in the two years preceding the date of license or
65.22certification application, and has confirmation of an honorable or general discharge status.
65.23(b) A qualified individual under paragraph (a) must provide evidence of:
65.24(1) a current, valid license, certificate, or permit in another state without history of
65.25disciplinary action by a regulatory authority in the other state; and
65.26(2) a current criminal background study without a criminal conviction that is
65.27determined by the board to adversely affect the applicants' ability to become licensed.
65.28(c) A temporary license or certificate issued under this subdivision shall allow a
65.29qualified individual to perform regulated professional services for a limited length of time
65.30as determined by the licensing board. During the temporary license period, the individual
65.31shall complete the full application procedure as required by applicable law.
65.32    Subd. 3. Rulemaking. Each licensing board may adopt rules to carry out the
65.33provisions of this section.

66.1    Sec. 19. Minnesota Statutes 2012, section 326.04, as amended by Laws 2014, chapter
66.2236, section 3, is amended to read:
66.3326.04 BOARD ESTABLISHED.
66.4    Subdivision 1. Board composition. To carry out the provisions of sections 326.02
66.5to 326.15 there is hereby created a Board of Architecture, Engineering, Land Surveying,
66.6Landscape Architecture, Geoscience, and Interior Design consisting of 21 members, who
66.7shall be appointed by the governor. Three members shall be licensed architects, five
66.8members shall be licensed engineers, two members shall be licensed landscape architects,
66.9two members shall be licensed land surveyors, two members shall be certified interior
66.10designers, two members shall be licensed geoscientists, and five members shall be public
66.11members. Not more than one member of the board shall be from the same branch of the
66.12profession of engineering. Membership terms, compensation of members, removal of
66.13members, the filling of membership vacancies, and fiscal year and reporting requirements
66.14shall be as provided in sections 214.07 to 214.09. Members shall be limited to two terms.
66.15The provision of staff, administrative services and office space; the review and processing
66.16of complaints; the setting of board fees; and other provisions relating to board operations
66.17shall be as provided in chapter 214.
66.18    Subd. 2. Temporary military certificate. The board shall establish a temporary
66.19military certificate in accordance with section 197.4552.

66.20    Sec. 20. Minnesota Statutes 2012, section 326.10, is amended by adding a subdivision
66.21to read:
66.22    Subd. 10. Temporary military license. The board shall establish a temporary
66.23license in accordance with section 197.4552 for the practice of architecture, professional
66.24engineering, geosciences, land surveying, landscape architecture, and interior design.
66.25The fee for the temporary license under this subdivision for the practice of architecture,
66.26professional engineering, geosciences, land surveying, landscape architecture, or interior
66.27design is $132.

66.28    Sec. 21. Minnesota Statutes 2012, section 326.3382, is amended by adding a
66.29subdivision to read:
66.30    Subd. 6. Temporary military license. The board shall establish a temporary
66.31license to engage in the business of private detective or protective agent in accordance
66.32with section 197.4552. The fee for the temporary license under this subdivision for a
66.33private detective is $1,000. The fee for a temporary license under this subdivision for a
66.34protective agent is $800.

67.1    Sec. 22. Minnesota Statutes 2012, section 326A.04, is amended by adding a
67.2subdivision to read:
67.3    Subd. 1a. Temporary military certificate. The board shall establish a temporary
67.4military certificate in accordance with section 197.4552.

67.5    Sec. 23. Minnesota Statutes 2013 Supplement, section 326A.04, subdivision 5, is
67.6amended to read:
67.7    Subd. 5. Fee. (a) The board shall charge a fee for each application for initial
67.8issuance or renewal of a certificate or temporary military certificate under this section as
67.9provided in paragraph (b). The fee for the temporary military certificate is $100.
67.10    (b) The board shall charge the following fees:
67.11    (1) initial issuance of certificate, $150;
67.12    (2) renewal of certificate with an active status, $100 per year;
67.13    (3) initial CPA firm permits, except for sole practitioners, $100;
67.14    (4) renewal of CPA firm permits, except for sole practitioners and those firms
67.15specified in clause (17), $35 per year;
67.16    (5) initial issuance and renewal of CPA firm permits for sole practitioners, except for
67.17those firms specified in clause (17), $35 per year;
67.18    (6) annual late processing delinquency fee for permit, certificate, or registration
67.19renewal applications not received prior to expiration date, $50;
67.20    (7) copies of records, per page, 25 cents;
67.21    (8) registration of noncertificate holders, nonlicensees, and nonregistrants in
67.22connection with renewal of firm permits, $45 per year;
67.23    (9) applications for reinstatement, $20;
67.24    (10) initial registration of a registered accounting practitioner, $50;
67.25    (11) initial registered accounting practitioner firm permits, $100;
67.26    (12) renewal of registered accounting practitioner firm permits, except for sole
67.27practitioners, $100 per year;
67.28    (13) renewal of registered accounting practitioner firm permits for sole practitioners,
67.29$35 per year;
67.30    (14) CPA examination application, $40;
67.31    (15) CPA examination, fee determined by third-party examination administrator;
67.32    (16) renewal of certificates with an inactive status, $25 per year; and
67.33    (17) renewal of CPA firm permits for firms that have one or more offices located in
67.34another state, $68 per year.

68.1    Sec. 24. Minnesota Statutes 2012, section 363A.44, subdivision 1, as added by Laws
68.22014, chapter 239, article 2, section 6, is amended to read:
68.3    Subdivision 1. Scope. (a) No department, agency of the state, the Metropolitan
68.4Council, or an agency subject to section 473.143, subdivision 1, shall execute a contract
68.5for goods or services or an agreement for goods or services in excess of $500,000 with a
68.6business that has 40 or more full-time employees in this state or a state where the business
68.7has its primary place of business on a single day during the prior 12 months, unless the
68.8business has an equal pay certificate or it has certified in writing that it is exempt. A
68.9certificate is valid for four years.
68.10    (b) This section does not apply to a business with respect to a specific contract if
68.11the commissioner of administration determines that application of this section would
68.12cause undue hardship to the contracting entity. This section does not apply to a contract
68.13to provide goods and services to individuals under chapters 43A, 62A, 62C, 62D, 62E,
68.14256B, 256I, 256L, and 268A, with a business that has a license, certification, registration,
68.15provider agreement, or provider enrollment contract that is prerequisite to providing those
68.16goods and services. This section does not apply to contracts entered into by the State
68.17Board of Investment for investment options under section 352.965, subdivision 4.
68.18EFFECTIVE DATE.This section is effective August 1, 2014.

68.19    Sec. 25. LEGISLATIVE WATER COMMISSION INITIAL APPOINTMENTS
68.20AND FIRST MEETING.
68.21Initial appointments to the Legislative Water Commission established in section
68.223 must be made by September 1, 2014. The first meeting of the Legislative Water
68.23Commission shall be convened by the chair or a designee of the Legislative Coordinating
68.24Commission by October 15, 2014. The Legislative Water Commission shall select a chair
68.25from its membership at its first meeting.

68.26    Sec. 26. STUDY OF SPECIAL REVENUE ACCOUNT FOR CENTRAL
68.27ACCOMMODATION.
68.28The commissioner of management and budget, in consultation with the Commission
68.29of Deaf, DeafBlind and Hard-of-Hearing Minnesotans, must report to the chairs and
68.30ranking minority members of the senate Finance Committee, the house of representatives
68.31Ways and Means Committee, the house of representatives State Government Finance
68.32Committee, the senate State Departments and Veterans Budget Division, and the governor
68.33by January 5, 2015, on advantages and disadvantages of creating an account for the
69.1special revenue fund in the state treasury to pay for costs of providing accommodations to
69.2executive branch state employees with disabilities. The report must include:
69.3(1) a summary of money spent by executive branch state agencies in fiscal years
69.42012 and 2013 for providing accommodations to executive branch state employees, to
69.5the extent that such expenditures can be determined; and
69.6(2) recommendations for laws and policies needed to implement an account in the
69.7special revenue fund, if one is recommended under this section; or other recommendations
69.8related to best practices in provision of accommodations for employees with disabilities
69.9in the executive branch.

69.10ARTICLE 5

69.11PUBLIC SAFETY AND CORRECTIONS APPROPRIATIONS

69.12

Section 1. SUMMARY OF APPROPRIATIONS.

69.13The amounts shown in this section summarize direct appropriations, by fund, made
69.14in this article.

69.15			2014		2015		Total
69.16	General	$	-0-	$	35,057,000	$	35,057,000
69.17 69.18	State Government Special Revenue		12,361,000		6,865,000		19,226,000
69.19	Total	$	12,361,000	$	41,922,000	$	54,283,000

69.20

Sec. 2. APPROPRIATIONS.

69.21The sums shown in the columns marked "Appropriations" are added to the
69.22appropriations in Laws 2013, chapter 86, article 1, to the agencies and for the purposes
69.23specified in this article. The appropriations are from the general fund, or another named
69.24fund, and are available for the fiscal years indicated for each purpose. The figures "2014"
69.25and "2015" used in this article mean that the addition to the appropriation listed under
69.26them is available for the fiscal year ending June 30, 2014, or June 30, 2015, respectively.
69.27Supplemental appropriations for the fiscal year ending June 30, 2014, are effective the
69.28day following final enactment.

69.29				APPROPRIATIONS
69.30				Available for the Year
69.31				Ending June 30
69.32					2014		2015

69.33

Sec. 3. PUBLIC SAFETY

69.34

Subdivision 1.Total Appropriation

$

12,361,000

$

8,638,000

70.1	Appropriations by Fund
70.2	General	-0-	1,773,000
70.3 70.4	State Government Special Revenue	12,361,000	6,865,000

70.5The amounts that may be spent for each
70.6purpose are specified in the following
70.7subdivisions.

70.8

Subd. 2.Emergency Communication Networks

5,059,000

6,865,000

70.9This onetime appropriation is from the state
70.10government special revenue fund for 911
70.11emergency telecommunications services.

70.12

Subd. 3.Office of Justice Programs

-0-

1,300,000

70.13(a) $500,000 in fiscal year 2015 is for youth
70.14intervention programs under Minnesota
70.15Statutes, section 299A.73. The appropriation
70.16must be used to create new programs
70.17statewide in underserved areas and to help
70.18existing programs serve unmet needs in
70.19program communities. Of this amount,
70.20$100,000 in fiscal year 2015 is for a youth
70.21intervention program targeted toward
70.22East African youth. This is a onetime
70.23appropriation and is available until expended.
70.24(b) $500,000 in fiscal year 2015 is for a grant
70.25to provide emergency shelter programming
70.26for victims of domestic abuse and trafficking.
70.27The program shall provide shelter to
70.28East African women and children. The
70.29appropriation must be used for the operating
70.30expenses of a shelter. This is a onetime
70.31appropriation, and is available until June 30,
70.322017.
70.33(c) $300,000 in fiscal year 2015 is for
70.34grants to sexual assault advocacy programs
71.1for sexual violence community prevention
71.2networks. For purposes of this section,
71.3"sexual assault" means a violation of
71.4Minnesota Statutes, sections 609.342 to
71.5609.3453. $300,000 in each of fiscal years
71.62016 and 2017 is added to the base.

71.7

Subd. 4.Fire Safety Account

1,300,000

-0-

71.8$1,300,000 in fiscal year 2014 is from the fire
71.9safety account in the special revenue fund
71.10for activities and programs under Minnesota
71.11Statutes, section 299F.012. This is a onetime
71.12appropriation. By January 15, 2015, the
71.13commissioner shall report to the chairs and
71.14ranking minority members of the legislative
71.15committees with jurisdiction over the fire
71.16safety account regarding the balances and
71.17uses of the account.

71.18

Subd. 5.Criminal Apprehension

71.19$473,000 in fiscal year 2015 is to implement
71.20the expungement law changes in Laws 2014,
71.21chapter 246. The base for this activity shall
71.22be $583,000 in each of fiscal years 2016 and
71.232017.

71.24

Sec. 4. CORRECTIONS

71.25

Subdivision 1.Total Appropriation

$

-0-

$

30,139,000

71.26The amounts that may be spent for each
71.27purpose are specified in the following
71.28subdivisions.

71.29

Subd. 2.Correctional Institutions

-0-

27,289,000

71.30This includes a onetime appropriation of
71.31$11,089,000.

71.32

Subd. 3.Community Services

-0-

1,950,000

72.1$50,000 in fiscal year 2015 is a onetime
72.2appropriation to implement the victim
72.3notification provisions in article 6, sections
72.41, 2, and 5.

72.5

Subd. 4.Operations Support

-0-

900,000

72.6 72.7

Sec. 5. PEACE OFFICER STANDARDS AND TRAINING (POST) BOARD

-0-

50,000

72.8$50,000 in fiscal year 2015 is for training
72.9state and local community safety personnel
72.10in the use of crisis de-escalation techniques
72.11for use with Minnesota veterans following
72.12their return from active military service in
72.13a combat zone. The director may consult
72.14with any other state or local governmental
72.15official or nongovernmental authority that the
72.16director determines to be relevant, to include
72.17postsecondary institutions, when selecting
72.18a service provider for this training. The
72.19training provider must have a demonstrated
72.20understanding of the transitions and
72.21challenges that veterans may experience
72.22during their re-entry into society following
72.23combat service. The training opportunities
72.24provided must be reasonably distributed
72.25statewide. This is a onetime appropriation.

72.26

Sec. 6. HUMAN RIGHTS

$

0

$

50,000

72.27For outreach to the community regarding
72.28the role and duties of the Council on Black
72.29Minnesotans, the Council on Asian Pacific
72.30Minnesotans, the Chicano Latino Affairs
72.31Council, and the Minnesota Indian Affairs
72.32Council. This is a onetime appropriation.

72.33

Sec. 7. HUMAN SERVICES

$

0

$

45,000

73.1$45,000 in fiscal year 2015 is to implement
73.2the expungement law changes in Laws 2014,
73.3chapter 246. The base for this activity shall
73.4be $90,000 in each of fiscal years 2016 and
73.52017.

73.6    Sec. 8. Laws 2009, chapter 83, article 1, section 10, subdivision 7, is amended to read:

73.7

Subd. 7.Emergency Communication Networks

66,470,000

70,233,000

73.8This appropriation is from the state
73.9government special revenue fund for 911
73.10emergency telecommunications services.
73.11(a) Public Safety Answering Points.
73.12$13,664,000 each year is to be distributed
73.13as provided in Minnesota Statutes, section
73.14403.113, subdivision 2 .
73.15(b) Medical Resource Communication
73.16Centers. $683,000 each year is for grants
73.17to the Minnesota Emergency Medical
73.18Services Regulatory Board for the Metro
73.19East and Metro West Medical Resource
73.20Communication Centers that were in
73.21operation before January 1, 2000.
73.22(c) ARMER Debt Service. $17,557,000 the
73.23first year and $23,261,000 the second year
73.24are to the commissioner of finance to pay
73.25debt service on revenue bonds issued under
73.26Minnesota Statutes, section 403.275.
73.27Any portion of this appropriation not needed
73.28to pay debt service in a fiscal year may be
73.29used by the commissioner of public safety to
73.30pay cash for any of the capital improvements
73.31for which bond proceeds were appropriated
73.32by Laws 2005, chapter 136, article 1, section
74.19, subdivision 8, or Laws 2007, chapter 54,
74.2article 1, section 10, subdivision 8.
74.3(d) Metropolitan Council Debt Service.
74.4$1,410,000 each year is to the commissioner
74.5of finance for payment to the Metropolitan
74.6Council for debt service on bonds issued
74.7under Minnesota Statutes, section 403.27.
74.8(e) ARMER State Backbone Operating
74.9Costs. $5,060,000 each year is to the
74.10commissioner of transportation for costs
74.11of maintaining and operating the statewide
74.12radio system backbone.
74.13(f) ARMER Improvements. $1,000,000
74.14each year is for the Statewide Radio Board for
74.15costs of design, construction, maintenance
74.16of, and improvements to those elements
74.17of the statewide public safety radio and
74.18communication system that support mutual
74.19aid communications and emergency medical
74.20services or provide enhancement of public
74.21safety communication interoperability.
74.22(g) Next Generation 911. $3,431,000 the
74.23first year and $6,490,000 the second year
74.24are to replace the current system with the
74.25Next Generation Internet Protocol (IP) based
74.26network. This appropriation is available until
74.27expended. The base level of funding for
74.28fiscal year 2012 shall be $2,965,000.
74.29(h) Grants to Local Government.
74.30$5,000,000 the first year is for grants to
74.31local units of government to assist with
74.32the transition to the ARMER system. This
74.33appropriation is available until June 30, 2012.
74.34EFFECTIVE DATE.This section is effective retroactively from June 29, 2011.

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

75.2 75.3

Subdivision 1.Total Appropriation

$

157,851,000

$

161,191,000 161,911,000

75.4	Appropriations by Fund
75.5		2014	2015
75.6	General	82,213,000	82,772,000
75.7	Special Revenue	14,062,000	13,062,000
75.8 75.9	State Government Special Revenue	59,241,000	63,742,000
75.10	Environmental	69,000	69,000
75.11	Trunk Highway	2,266,000	2,266,000

75.12The amounts that may be spent for each
75.13purpose are specified in the following
75.14subdivisions.

75.15    Sec. 10. Laws 2013, chapter 86, article 1, section 12, subdivision 3, as amended by
75.16Laws 2013, chapter 140, section 2, is amended to read:

75.17

Subd. 3.Criminal Apprehension

47,588,000

47,197,000

75.18	Appropriations by Fund
75.19	General	42,315,000	42,924,000
75.20	Special Revenue	3,000,000	2,000,000
75.21 75.22	State Government Special Revenue	7,000	7,000
75.23	Trunk Highway	2,266,000	2,266,000

75.24

(a) DWI Lab Analysis; Trunk Highway Fund

75.25Notwithstanding Minnesota Statutes, section
75.26161.20, subdivision 3 , $1,941,000 each year
75.27is from the trunk highway fund for laboratory
75.28analysis related to driving-while-impaired
75.29cases.

75.30

(b) Criminal History System

75.31$50,000 the first year and $580,000 the
75.32second year from the general fund and,
75.33notwithstanding Minnesota Statutes, section
75.34299A.705, subdivision 4 , $3,000,000 the
75.35first year and $2,000,000 the second year
76.1from the vehicle services account in the
76.2special revenue fund are to replace the state
76.3criminal history system. This appropriation
76.4is available until expended. Of this amount,
76.5$2,980,000 the first year and $2,580,000
76.6the second year are for a onetime transfer
76.7to the Office of Enterprise Technology for
76.8start-up costs. Service level agreements
76.9must document all project-related transfers
76.10under this paragraph. Ongoing operating
76.11and support costs for this system shall
76.12be identified and incorporated into future
76.13service level agreements.
76.14The commissioner is authorized to use funds
76.15appropriated under this paragraph for the
76.16purposes specified in paragraph (c).
76.17The general fund base for this program is
76.18$4,930,000 in fiscal year 2016 and $417,000
76.19in fiscal year 2017.

76.20

(c) Criminal Reporting System

76.21$1,360,000 the first year and $1,360,000 the
76.22second year from the general fund are to
76.23replace the state's crime reporting system
76.24 and include one full-time equivalent business
76.25analyst. This appropriation is available until
76.26expended. Of these amounts, $1,360,000
76.27the first year and $1,360,000 $1,290,000
76.28 the second year are for a onetime transfer
76.29to the Office of Enterprise Technology for
76.30start-up costs. Service level agreements
76.31must document all project-related transfers
76.32under this paragraph. Ongoing operating
76.33and support costs for this system shall
76.34be identified and incorporated into future
76.35service level agreements.
77.1The commissioner is authorized to use funds
77.2appropriated under this paragraph for the
77.3purposes specified in paragraph (b).
77.4The base funding for this program is
77.5$1,360,000 in fiscal year 2016 and $380,000
77.6in fiscal year 2017.

77.7

(d) Forensic Laboratory

77.8$125,000 the first year and $125,000 the
77.9second year from the general fund and,
77.10notwithstanding Minnesota Statutes, section
77.11161.20, subdivision 3 , $125,000 the first
77.12year and $125,000 the second year from the
77.13trunk highway fund are to replace forensic
77.14laboratory equipment at the Bureau of
77.15Criminal Apprehension.
77.16$200,000 the first year and $200,000 the
77.17second year from the general fund and,
77.18notwithstanding Minnesota Statutes, section
77.19161.20, subdivision 3 , $200,000 the first
77.20year and $200,000 the second year from the
77.21trunk highway fund are to improve forensic
77.22laboratory staffing at the Bureau of Criminal
77.23Apprehension.

77.24

(e) Livescan Fingerprinting

77.25$310,000 the first year and $389,000 the
77.26second year from the general fund are to
77.27maintain Livescan fingerprinting machines.

77.28

(f) Report

77.29If the vehicle services special revenue account
77.30accrues an unallocated balance in excess
77.31of 50 percent of the previous fiscal year's
77.32expenditures, the commissioner of public
77.33safety shall submit a report to the chairs
77.34and ranking minority members of the house
78.1of representatives and senate committees
78.2with jurisdiction over transportation and
78.3public safety policy and finance. The report
78.4must contain specific policy and legislative
78.5recommendations for reducing the fund
78.6balance and avoiding future excessive fund
78.7balances. The report is due within three
78.8months of the fund balance exceeding the
78.9threshold established in this paragraph.

78.10    Sec. 11. Laws 2013, chapter 86, article 1, section 13, is amended to read:

78.11 78.12

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

$

3,870,000

$

3,870,000

78.13(a) Excess Amounts Transferred
78.14This appropriation is from the peace officer
78.15training account in the special revenue fund.
78.16Any new receipts credited to that account in
78.17the first year in excess of $3,870,000 must be
78.18transferred and credited to the general fund.
78.19Any new receipts credited to that account in
78.20the second year in excess of $3,870,000 must
78.21be transferred and credited to the general
78.22fund.
78.23(b) Peace Officer Training
78.24Reimbursements
78.25$2,734,000 each year is for reimbursements
78.26to local governments for peace officer
78.27training costs.
78.28(c) Training; Sexually Exploited and
78.29Trafficked Youth
78.30Of the appropriation in paragraph (b),
78.31$100,000 the first year is for reimbursements
78.32to local governments for peace officer
78.33training costs on sexually exploited and
79.1trafficked youth, including effectively
79.2identifying sex trafficked victims and
79.3traffickers, investigation techniques, and
79.4assisting sexually exploited youth. These
79.5funds are available until June 30, 2016.
79.6Reimbursement shall be provided on a flat
79.7fee basis of $100 per diem per officer.
79.8EFFECTIVE DATE.This section is effective the day following final enactment.

79.9    Sec. 12. TRANSFER; EMERGENCY MANAGEMENT.
79.10On July 1, 2014, the commissioner of management and budget shall transfer
79.11$3,000,000 from the general fund to the disaster assistance contingency account created in
79.12article 7, section 4.

79.13ARTICLE 6

79.14PUBLIC SAFETY AND CORRECTIONS

79.15    Section 1. Minnesota Statutes 2012, section 13.84, subdivision 5, is amended to read:
79.16    Subd. 5. Disclosure. Private or confidential court services data shall not be
79.17disclosed except:
79.18(a) pursuant to section 13.05;
79.19(b) pursuant to a statute specifically authorizing disclosure of court services data;
79.20(c) with the written permission of the source of confidential data;
79.21(d) to the court services department, parole or probation authority or state or local
79.22correctional agency or facility having statutorily granted supervision over the individual
79.23subject of the data;
79.24(e) pursuant to subdivision 6; or
79.25(f) pursuant to a valid court order.; or
79.26(g) pursuant to section 611A.06, subdivision 6.
79.27EFFECTIVE DATE.This section is effective January 1, 2015.

79.28    Sec. 2. Minnesota Statutes 2012, section 13.84, subdivision 6, is amended to read:
79.29    Subd. 6. Public benefit data. (a) The responsible authority or its designee of a
79.30parole or probation authority or correctional agency may release private or confidential
79.31court services data related to:
80.1(1) criminal acts to any law enforcement agency, if necessary for law enforcement
80.2purposes; and
80.3(2) criminal acts or delinquent acts to the victims of criminal or delinquent acts to the
80.4extent that the data are necessary for the victim to assert the victim's legal right to restitution.
80.5(b) A parole or probation authority, a correctional agency, or agencies that provide
80.6correctional services under contract to a correctional agency may release to a law
80.7enforcement agency the following data on defendants, parolees, or probationers: current
80.8address, dates of entrance to and departure from agency programs, and dates and times of
80.9any absences, both authorized and unauthorized, from a correctional program.
80.10(c) The responsible authority or its designee of a juvenile correctional agency may
80.11release private or confidential court services data to a victim of a delinquent act to the
80.12extent the data are necessary to enable the victim to assert the victim's right to request
80.13notice of release under section 611A.06. The data that may be released include only the
80.14name, home address, and placement site of a juvenile who has been placed in a juvenile
80.15correctional facility as a result of a delinquent act.
80.16(d) Upon the victim's written or electronic request and, if the victim and offender have
80.17been household or family members as defined in section 518B.01, subdivision 2, paragraph
80.18(b), the commissioner of corrections or the commissioner's designee may disclose to the
80.19victim of an offender convicted of a qualified domestic violence-related offense as defined
80.20in section 609.02, subdivision 16, notification of the city and five-digit zip code of the
80.21offender's residency upon or after release from a Department of Corrections facility, unless:
80.22(1) the offender is not under correctional supervision at the time of the victim's
80.23request;
80.24(2) the commissioner or the commissioner's designee does not have the city or zip
80.25code; or
80.26(3) the commissioner or the commissioner's designee reasonably believes that
80.27disclosure of the city or zip code of the offender's residency creates a risk to the victim,
80.28offender, or public safety.
80.29(e) Paragraph (d) applies only where the offender is serving a prison term for
80.30a qualified domestic violence-related offense committed against the victim seeking
80.31notification.
80.32EFFECTIVE DATE.This section is effective January 1, 2015.

80.33    Sec. 3. Minnesota Statutes 2012, section 260B.198, subdivision 7, is amended to read:
80.34    Subd. 7. Continuance. (a) When it is in the best interests of the child to do so and
80.35not inimical to public safety and when the child has admitted the allegations contained in
81.1the petition before the judge or referee, or when a hearing has been held as provided for in
81.2section 260B.163 and the allegations contained in the petition have been duly proven but,
81.3in either case, before a finding of delinquency has been entered, the court may continue
81.4the case for a period not to exceed 90 180 days on any one order. Such a continuance may
81.5be extended for one additional successive period not to exceed 90 days and only after the
81.6court has reviewed the case and entered its order for an additional continuance without a
81.7finding of delinquency. The continuance may be extended for one additional successive
81.8period not to exceed 180 days, but only with the consent of the prosecutor and only after
81.9the court has reviewed the case and entered its order for the additional continuance
81.10without a finding of delinquency. During this a continuance the court may enter an order
81.11in accordance with the provisions of subdivision 1, clause (1) or (2) except clause (4), or
81.12enter an order to hold the child in detention for a period not to exceed 15 days on any one
81.13order for the purpose of completing any consideration, or any investigation or examination
81.14ordered in accordance with the provisions of section 260B.157.
81.15(b) A prosecutor may appeal a continuance ordered in contravention of this
81.16subdivision. This subdivision does not extend the court's jurisdiction under section
81.17260B.193 and does not apply to an extended jurisdiction juvenile proceeding.
81.18EFFECTIVE DATE.This section is effective August 1, 2014, and applies to
81.19offenses committed on or after that date.

81.20    Sec. 4. Minnesota Statutes 2012, section 299F.012, subdivision 2, is amended to read:
81.21    Subd. 2. Fire Service Advisory Committee. (a) The Fire Service Advisory
81.22Committee shall provide recommendations to the commissioner of public safety on
81.23fire service-related issues and shall consist of representatives of each of the following
81.24organizations: two appointed by the president of the Minnesota State Fire Chiefs
81.25Association, two appointed by the president of the Minnesota State Fire Department
81.26Association, two appointed by the president of the Minnesota Professional Fire Fighters,
81.27two appointed by the president of the League of Minnesota Cities, one appointed by the
81.28president of the Minnesota Association of Townships, one appointed by the president
81.29of the Insurance Federation of Minnesota, one appointed jointly by the presidents of
81.30the Minnesota Chapter of the International Association of Arson Investigators and the
81.31Fire Marshals Association of Minnesota, and the commissioner of public safety or the
81.32commissioner's designee. The commissioner of public safety must ensure that at least
81.33three of the members of the advisory committee work and reside in counties outside of the
81.34seven-county metropolitan area. The committee shall provide funding recommendations
81.35to the commissioner of public safety from the fire safety fund for the following purposes:
82.1(1) for the Minnesota Board of Firefighter Training and Education;
82.2(2) for programs and staffing for the State Fire Marshal Division; and
82.3(3) for fire-related regional response team programs and any other fire service
82.4programs that have the potential for statewide impact.
82.5    (b) The committee under paragraph (a) does not expire.

82.6    Sec. 5. Minnesota Statutes 2012, section 611A.06, is amended by adding a subdivision
82.7to read:
82.8    Subd. 6. Offender location. (a) Upon the victim's written or electronic request
82.9and if the victim and offender have been household or family members as defined in
82.10section 518B.01, subdivision 2, paragraph (b), the commissioner of corrections or
82.11the commissioner's designee shall disclose to the victim of an offender convicted of a
82.12qualified domestic violence-related offense as defined in section 609.02, subdivision 16,
82.13notification of the city and five-digit zip code of the offender's residency upon release from
82.14a Department of Corrections facility, unless:
82.15(1) the offender is not under correctional supervision at the time of the victim's
82.16request;
82.17(2) the commissioner or the commissioner's designee does not have the city or zip
82.18code; or
82.19(3) the commissioner or the commissioner's designee reasonably believes that
82.20disclosure of the city or zip code of the offender's residency creates a risk to the victim,
82.21offender, or public safety.
82.22(b) All identifying information regarding the victim including, but not limited to, the
82.23notification provided by the commissioner or the commissioner's designee is classified as
82.24private data on individuals as defined in section 13.02, subdivision 12, and is accessible
82.25only to the victim.
82.26(c) This subdivision applies only where the offender is serving a prison term
82.27for a qualified domestic violence-related offense committed against the victim seeking
82.28notification.
82.29EFFECTIVE DATE.This section is effective January 15, 2015.

82.30    Sec. 6. Minnesota Statutes 2012, section 645.241, is amended to read:
82.31645.241 PUNISHMENT FOR PROHIBITED ACTS.
83.1(a) Except as provided in paragraph (b), when the performance of any act is
83.2prohibited by a statute, and no penalty for the violation of the same shall be imposed in
83.3any statute, the doing of such act shall be a misdemeanor.
83.4(b) When the performance of any act is prohibited by a statute enacted or amended
83.5after September 1, 2014, and no penalty for the violation of the same shall be imposed in
83.6any statute, the doing of such act shall be a petty misdemeanor.

83.7    Sec. 7. Laws 2014, chapter 240, section 26, is amended to read:
83.8    Sec. 26. REPEALER.
83.9Laws 2012, chapter 235, section 11, is repealed.
83.10EFFECTIVE DATE.This section is effective the day following final enactment.

83.11ARTICLE 7

83.12DISASTER ASSISTANCE FOR PUBLIC ENTITIES; FEDERAL AID GRANTED

83.13    Section 1. Minnesota Statutes 2012, section 12.03, is amended by adding a subdivision
83.14to read:
83.15    Subd. 5d. Local government. "Local government" has the meaning given in Code
83.16of Federal Regulations, title 44, section 206.2 (2012).

83.17    Sec. 2. Minnesota Statutes 2012, section 12.03, is amended by adding a subdivision to
83.18read:
83.19    Subd. 6b. Nonfederal share. "Nonfederal share" has the meaning given in section
83.2012A.02, subdivision 7.

83.21    Sec. 3. Minnesota Statutes 2012, section 12.221, subdivision 4, is amended to read:
83.22    Subd. 4. Subgrant agreements; state share. (a) The state director, serving as the
83.23governor's authorized representative, may enter into subgrant agreements with eligible
83.24applicants to provide federal and state financial assistance made available as a result
83.25of a disaster declaration.
83.26(b) When state funds are used to provide the FEMA Public Assistance Program
83.27cost-share requirement for a local government, the state director must award a local
83.28government 100 percent of the nonfederal share of the local government's FEMA Public
83.29Assistance Program costs.

83.30    Sec. 4. Minnesota Statutes 2012, section 12.221, is amended by adding a subdivision
83.31to read:
84.1    Subd. 6. Disaster assistance contingency account; appropriation. (a) A disaster
84.2assistance contingency account is created in the special revenue fund in the state treasury.
84.3Money in the disaster assistance contingency account is appropriated to the commissioner
84.4of public safety to provide:
84.5(1) cost-share for federal assistance under section 12A.15, subdivision 1; and
84.6(2) state public disaster assistance to eligible applicants under chapter 12B.
84.7(b) For appropriations under paragraph (a), clause (1), the amount appropriated is
84.8100 percent of any nonfederal share for state agencies and local governments. Money
84.9appropriated under paragraph (a), clause (1), may be used to pay all or a portion of the
84.10nonfederal share for publicly owned capital improvement projects.
84.11(c) For appropriations under paragraph (a), clause (2), the amount appropriated
84.12is the amount required to pay eligible claims under chapter 12B, as certified by the
84.13commissioner of public safety.
84.14(d) By January 15 of each year, the commissioner of management and budget shall
84.15submit a report to the chairs and ranking minority members of the house of representatives
84.16Ways and Means Committee and the senate Finance Committee detailing state disaster
84.17assistance appropriations and expenditures under this subdivision during the previous
84.18calendar year.
84.19(e) The governor's budget proposal submitted to the legislature under section 16A.11
84.20must include recommended appropriations to the disaster assistance contingency account.
84.21The governor's appropriation recommendations must be informed by the commissioner of
84.22public safety's estimate of the amount of money that will be necessary to:
84.23(1) provide 100 percent of the nonfederal share for state agencies and local
84.24governments that will receive federal financial assistance from FEMA during the next
84.25biennium; and
84.26(2) fully pay all eligible claims under chapter 12B.
84.27(f) Notwithstanding section 16A.28:
84.28(1) funds appropriated or transferred to the disaster assistance contingency account
84.29do not lapse but remain in the account until appropriated; and
84.30(2) funds appropriated from the disaster assistance contingency account do not lapse
84.31and are available until expended.

84.32    Sec. 5. Minnesota Statutes 2012, section 12A.02, subdivision 2, is amended to read:
84.33    Subd. 2. Appropriation. "Appropriation" means an appropriation provided in law
84.34specifically to implement this chapter, including but not limited to a statutory appropriation
84.35to provide the required cost-share for federal disaster assistance under section 12.221.

85.1    Sec. 6. Minnesota Statutes 2012, section 12A.02, is amended by adding a subdivision
85.2to read:
85.3    Subd. 6. Local government. "Local government" has the meaning given in section
85.412.03, subdivision 5d.

85.5    Sec. 7. Minnesota Statutes 2012, section 12A.02, is amended by adding a subdivision
85.6to read:
85.7    Subd. 7. Nonfederal share. "Nonfederal share" means that portion of total FEMA
85.8Public Assistance Program costs that is no more than 25 percent and is not eligible for
85.9FEMA reimbursement.

85.10    Sec. 8. Minnesota Statutes 2012, section 12A.03, subdivision 3, is amended to read:
85.11    Subd. 3. Nonduplication of federal assistance. State assistance may not duplicate
85.12or supplement eligible FEMA Public Assistance Program assistance. For eligible Public
85.13Assistance Program costs, any state matching cost-share money made available for
85.14that assistance must be disbursed by the Department of Public Safety to a state agency,
85.15local political subdivision, Indian tribe government, or other applicant. State assistance
85.16distributed by a state agency, other than the Department of Public Safety, to a political
85.17subdivision local government or other applicant for disaster costs that are eligible for
85.18FEMA Public Assistance Program assistance constitutes an advance of funds. Such
85.19advances must be repaid to the applicable state agency when the applicant has received
85.20the FEMA Public Assistance Program assistance, and whatever state matching cost-share
85.21 money may be made available for that assistance, from the Department of Public Safety.

85.22    Sec. 9. Minnesota Statutes 2012, section 12A.15, subdivision 1, is amended to read:
85.23    Subdivision 1. State match cost-share for federal assistance. State appropriations
85.24may be used for payment of the state match for federal disaster assistance to pay 100
85.25percent of the nonfederal share for state agencies. If authorized in law, state appropriations
85.26may be used to pay all or a portion of the local share of the match for federal funds for
85.27political subdivisions and local governments under section 12.221. An appropriation from
85.28the bond proceeds fund may be used to fund federal match obligations as cost-share for
85.29federal disaster assistance for publicly owned capital improvement projects resulting from
85.30the receipt of federal disaster assistance.

85.31    Sec. 10. Minnesota Statutes 2012, section 16A.28, is amended by adding a subdivision
85.32to read:
86.1    Subd. 9. Disaster assistance. (a) The commissioner of management and budget
86.2must transfer the unexpended and unencumbered balance of a general fund disaster
86.3assistance appropriation that expires as provided under this section or as otherwise provided
86.4by law to the disaster assistance contingency account in section 12.221, subdivision 6.
86.5(b) Expired disaster assistance transferred to the disaster assistance contingency
86.6account is appropriated as provided under section 12.221, subdivision 6, regardless of the
86.7specific disaster event or purpose for which the expired disaster assistance was originally
86.8appropriated.
86.9(c) The commissioner must report each transfer to the chairs of the house of
86.10representatives Ways and Means Committee and the senate Finance Committee.
86.11(d) For the purposes of this subdivision, "disaster assistance appropriation" means
86.12an appropriation from the general fund to provide cost-share required for federal disaster
86.13assistance or to provide other state disaster assistance under chapter 12A or 12B.

86.14    Sec. 11. EFFECTIVE DATE.
86.15This article is effective the day following final enactment.

86.16ARTICLE 8

86.17DISASTER ASSISTANCE FOR PUBLIC ENTITIES; ABSENT FEDERAL AID

86.18    Section 1. [12B.10] PUBLIC DISASTER ASSISTANCE; ABSENT FEDERAL
86.19AID.
86.20This chapter establishes a state public assistance program to provide cost-share
86.21assistance to local governments that sustain significant damage on a per capita basis but
86.22are not eligible for federal disaster assistance or corresponding state assistance under
86.23chapter 12A.

86.24    Sec. 2. [12B.15] DEFINITIONS.
86.25    Subdivision 1. Application. The definitions in this section apply to this chapter.
86.26    Subd. 2. Applicant. "Applicant" means a local government that applies for state
86.27disaster assistance under this chapter.
86.28    Subd. 3. Commissioner. "Commissioner" means the commissioner of public safety.
86.29    Subd. 4. Director. "Director" means the director of the Division of Homeland
86.30Security and Emergency Management in the Department of Public Safety.
86.31    Subd. 5. Disaster. "Disaster" means any catastrophe, including but not limited
86.32to a tornado, storm, high water, wind-driven water, tidal wave, earthquake, volcanic
87.1eruption, landslide, mudslide, snowstorm, or drought or, regardless of cause, any fire,
87.2flood, or explosion.
87.3    Subd. 6. FEMA. "FEMA" means the Federal Emergency Management Agency.
87.4    Subd. 7. Incident period. "Incident period" means the time interval of a disaster as
87.5delineated by specific start and end dates.
87.6    Subd. 8. Local government. "Local government" has the meaning given in section
87.712.03, subdivision 5d.

87.8    Sec. 3. [12B.25] ELIGIBILITY CRITERIA; CONSIDERATIONS.
87.9    Subdivision 1. Payment required; eligibility criteria. The director, serving as
87.10the governor's authorized representative, may enter into grant agreements with eligible
87.11applicants to provide state financial assistance made available as a result of a disaster
87.12that satisfies all of the following criteria:
87.13(1) the state or applicable local government declares a disaster or emergency during
87.14the incident period;
87.15(2) damages suffered and eligible costs incurred are the direct result of the disaster;
87.16(3) federal disaster assistance is not available to the applicant because the governor
87.17did not request a presidential declaration of major disaster, the president denied the
87.18governor's request, or the applicant is not eligible for federal disaster assistance because
87.19the state or county did not meet the per capita impact indicator under FEMA's Public
87.20Assistance Program;
87.21(4) the applicant incurred eligible damages that, on a per capita basis, equal or
87.22exceed 50 percent of the countywide per capita impact indicator under FEMA's Public
87.23Assistance Program;
87.24(5) the applicant assumes responsibility for 25 percent of the applicant's total
87.25eligible costs; and
87.26(6) the applicant satisfies all requirements in this chapter.
87.27    Subd. 2. Considerations; other resources available. When evaluating applicant
87.28eligibility under subdivision 1, the director must consider:
87.29(1) the availability of other resources from federal, state, local, private, or other
87.30sources; and
87.31(2) the availability or existence of insurance.

87.32    Sec. 4. [12B.30] ELIGIBLE COSTS.
88.1    Subdivision 1. Eligible costs. Costs eligible for payment under this chapter are
88.2those costs that would be eligible for federal financial assistance under FEMA's Public
88.3Assistance Program.
88.4    Subd. 2. Ineligible costs. Ineligible costs are all costs not included in subdivision
88.51, including but not limited to:
88.6(1) ordinary operating expenses, including salaries and expenses of employees and
88.7public officials that are not directly related to the disaster response;
88.8(2) costs for which payment has been or will be received from any other funding
88.9source;
88.10(3) disaster-related costs that should, in the determination of the director, be covered
88.11and compensated by insurance; and
88.12(4) projects and claims totaling less than the minimum FEMA project threshold.

88.13    Sec. 5. [12B.35] APPLICANT'S SHARE.
88.14An applicant's share of eligible costs incurred must not be less than 25 percent. The
88.15substantiated value of donated materials, equipment, services, and labor may be used as
88.16all or part of the applicant's share of eligible costs, subject to the following:
88.17(1) all items and sources of donation must be indicated on the application and any
88.18supporting documentation submitted to the commissioner;
88.19(2) the rate for calculating the value of donated, nonprofessional labor is the
88.20prevailing federal minimum wage;
88.21(3) the value of donated equipment may not exceed the highway equipment rates
88.22approved by the commissioner of transportation; and
88.23(4) the value of donated materials and professional services must conform to market
88.24rates and be established by invoice.

88.25    Sec. 6. [12B.40] APPLICATION PROCESS.
88.26(a) The director must develop application materials and may update the materials as
88.27needed. Application materials must include instructions and requirements for assistance
88.28under this chapter.
88.29(b) An applicant has 30 days from the end of the incident period or the president's
88.30official denial of the governor's request for a declaration of a major disaster to provide the
88.31director with written notice of intent to apply. The director may deny an application due to
88.32a late notice of intent to apply.
89.1(c) Within 60 days after the end of the incident period or the president's official denial
89.2of the governor's request for a declaration of a major disaster, the applicant must submit a
89.3complete application to the director. A complete application includes the following:
89.4(1) the cause, location of damage, and incident period;
89.5(2) documentation of a local, tribal, county, or state disaster or emergency
89.6declaration in response to the disaster;
89.7(3) a description of damages, an initial damage assessment, and the amount of
89.8eligible costs incurred by the applicant;
89.9(4) a statement or evidence that the applicant has the ability to pay for at least 25
89.10percent of total eligible costs incurred from the disaster; and
89.11(5) a statement or evidence that the local government has incurred damages equal to
89.12or exceeding 50 percent of the federal countywide threshold in effect during the incident
89.13period.
89.14(d) The director must review the application and supporting documentation for
89.15completeness and may return the application with a request for more detailed information.
89.16The director may consult with local public officials to ensure the application reflects the
89.17extent and magnitude of the damage and to reconcile any differences. The application is
89.18not complete until the director receives all requested information.
89.19(e) If the director returns an application with a request for more detailed information
89.20or for correction of deficiencies, the applicant must submit all required information within
89.2130 days of the applicant's receipt of the director's request. The applicant's failure to
89.22provide the requested information in a timely manner without a reasonable explanation
89.23may be cause for denial of the application.
89.24(f) The director has no more than 60 days from the receipt of a complete application
89.25to approve or deny the application, or the application is deemed approved. If the director
89.26denies an application, the director must send a denial letter. If the director approves an
89.27application or the application is automatically deemed approved after 60 days, the director
89.28must notify the applicant of the steps necessary to obtain reimbursement of eligible
89.29costs, including submission of invoices or other documentation substantiating the costs
89.30submitted for reimbursement.

89.31    Sec. 7. [12B.45] CLAIMS PROCESS.
89.32    Subdivision 1. Claims; appeal. (a) An applicant must submit to the director
89.33completed claims for payment of actual and eligible costs on forms provided by the
89.34director. All eligible costs claimed for payment must be documented and consistent with
89.35the eligibility provisions of this chapter.
90.1(b) If the director denies an applicant's claim for payment, the applicant has 30 days
90.2from receipt of the director's determination to appeal in writing to the commissioner. The
90.3appeal must include the applicant's rationale for reversing the director's determination. The
90.4commissioner has 30 days from receipt of the appeal to uphold or modify the director's
90.5determination and formally respond to the applicant. If, within 30 days of receiving
90.6the commissioner's decision, the applicant notifies the commissioner that the applicant
90.7intends to contest the commissioner's decision, the Office of Administrative Hearings shall
90.8conduct a hearing under the contested case provisions of chapter 14.
90.9    Subd. 2. Final inspection. Upon completion of all work by an applicant, the
90.10director may inspect all work claimed by the applicant. The applicant must provide the
90.11director with access to records pertaining to all claimed work and must permit the director
90.12to review all records relating to the work.
90.13    Subd. 3. Closeout. The director must close out an applicant's disaster assistance
90.14application after all of the following occur:
90.15(1) eligible work is complete;
90.16(2) the applicant receives the final amount due or pays any amount owed under
90.17section 12B.50; and
90.18(3) any extant or scheduled audits are complete.
90.19    Subd. 4. Audit. (a) An applicant must account for all funds received under this
90.20chapter in conformance with generally accepted accounting principles and practices. The
90.21applicant must maintain detailed records of expenditures to show that grants received under
90.22this chapter were used for the purpose for which the payment was made. The applicant
90.23must maintain records for five years and make the records available for inspection and
90.24audit by the director or the state auditor. The applicant must keep all financial records for
90.25five years after the final payment, including but not limited to all invoices and canceled
90.26checks or bank statements that support all eligible costs claimed by the applicant.
90.27(b) The director or state auditor may audit all applicant records pertaining to an
90.28application or payment under this chapter.
90.29    Subd. 5. Reporting payments. The director must post on the division Web site a
90.30list of the recipients and amounts of the payments made under this chapter.

90.31    Sec. 8. [12B.50] FUNDING FROM OTHER SOURCES; REPAYMENT
90.32REQUIRED.
90.33If an applicant subsequently recovers eligible costs from another source after
90.34receiving payment under this chapter, the applicant must pay the commissioner an amount
90.35equal to the corresponding state funds received within 30 days. The commissioner must
91.1deposit any repayment in the disaster response contingency account in section 12.221,
91.2subdivision 6.

91.3    Sec. 9. EFFECTIVE DATE.
91.4This article is effective the day following final enactment.

91.5ARTICLE 9

91.6TRANSPORTATION APPROPRIATIONS

91.7    Section 1. Laws 2010, chapter 189, section 15, subdivision 12, is amended to read:

91.8 91.9

Subd. 12.Rochester Maintenance Facility

26,430,000 24,937,000

91.10This appropriation is from the bond proceeds
91.11account in the trunk highway fund.
91.12To prepare a site for and design, construct,
91.13furnish, and equip a new maintenance facility
91.14in Rochester.
91.15EFFECTIVE DATE.This section is effective the day following final enactment.

91.16    Sec. 2. Laws 2010, chapter 189, section 26, subdivision 4, is amended to read:
91.17    Subd. 4. Trunk highway fund bond proceeds account. To provide the money
91.18appropriated in this act from the bond proceeds account in the trunk highway fund, the
91.19commissioner of management and budget shall sell and issue bonds of the state in an
91.20amount up to $32,945,000 $31,452,000 in the manner, upon the terms, and with the effect
91.21prescribed by Minnesota Statutes, sections 167.50 to 167.52, and by the Minnesota
91.22Constitution, article XIV, section 11, at the times and in the amounts requested by the
91.23commissioner of transportation. The proceeds of the bonds, except accrued interest and
91.24any premium received from the sale of the bonds, must be credited to the bond proceeds
91.25account in the trunk highway fund.
91.26EFFECTIVE DATE.This section is effective the day following final enactment.

91.27    Sec. 3. Laws 2012, chapter 287, article 2, section 1, is amended to read:
91.28    Section 1. ROCHESTER MAINTENANCE FACILITY.
91.29$16,100,000 $17,593,000 is appropriated to the commissioner of transportation
91.30to design, construct, furnish, and equip the maintenance facility in Rochester and
92.1corresponding remodeling of the existing district headquarters building. This appropriation
92.2is from the bond proceeds account in the trunk highway fund.
92.3EFFECTIVE DATE.This section is effective the day following final enactment.

92.4    Sec. 4. Laws 2012, chapter 287, article 2, section 3, is amended to read:
92.5    Sec. 3. TRUNK HIGHWAY FUND BOND PROCEEDS ACCOUNT.
92.6To provide the money appropriated in this article from the bond proceeds account in
92.7the trunk highway fund, the commissioner of management and budget shall sell and issue
92.8bonds of the state in an amount up to $16,120,000 $17,613,000 in the manner, upon the
92.9terms, and with the effect prescribed by Minnesota Statutes, sections 167.50 to 167.52,
92.10and by the Minnesota Constitution, article XIV, section 11, at the times and in the amounts
92.11requested by the commissioner of transportation. The proceeds of the bonds, except
92.12accrued interest and any premium received from the sale of the bonds, must be credited
92.13to the bond proceeds account in the trunk highway fund.
92.14EFFECTIVE DATE.This section is effective the day following final enactment.

92.15    Sec. 5. Laws 2012, First Special Session chapter 1, article 1, section 28, is amended to
92.16read:
92.17    Sec. 28. TRANSFERS, REDUCTIONS, CANCELLATIONS, AND BOND
92.18SALE AUTHORIZATIONS REDUCED.
92.19(a) The remaining balance of the appropriation in Laws 2010, Second Special
92.20Session chapter 1, article 1, section 7, for the economic development and housing
92.21challenge program, estimated to be $450,000, is transferred to the general fund.
92.22(b) The appropriation in Laws 2010, Second Special Session chapter 1, article 1,
92.23section 5, for Minnesota investment fund grants pursuant to Minnesota Statutes, section
92.2412A.07 , is reduced by $1,358,000.
92.25(c) The appropriation in Laws 2010, Second Special Session chapter 1, article 1,
92.26section 12, subdivision 2, for disaster enrollment impact aid pursuant to Minnesota
92.27Statutes, section 12A.06, is reduced by $30,000.
92.28(d) The appropriation in Laws 2010, Second Special Session chapter 1, article
92.291, section 12, subdivision 3, for disaster relief facilities grants pursuant to Minnesota
92.30Statutes, section 12A.06, is reduced by $392,000.
92.31(e) The appropriation in Laws 2010, Second Special Session chapter 1, article 1,
92.32section 12, subdivision 4, for disaster relief operating grants pursuant to Minnesota
92.33Statutes, section 12A.06, is reduced by $2,000.
93.1(f) The appropriation in Laws 2010, Second Special Session chapter 1, article 1,
93.2section 12, subdivision 5, for pupil transportation aid pursuant to Minnesota Statutes,
93.3section 12A.06, is reduced by $5,000.
93.4(g) The appropriation in Laws 2010, Second Special Session chapter 1, article 2,
93.5section 5, subdivision 3, for pupil transportation aid pursuant to Minnesota Statutes,
93.6section 12A.06, is reduced by $271,000.
93.7(h) The appropriation in Laws 2010, Second Special Session chapter 1, article 1,
93.8section 13, for public health activities pursuant to Minnesota Statutes, section 12A.08,
93.9is reduced by $103,000.
93.10(i) $1,428,000 $534,000 of the appropriation in Laws 2007, First Special Session
93.11chapter 2, article 1, section 4, subdivision 3, for reconstruction and repair of trunk
93.12highways and trunk highway bridges is canceled. The bond sale authorization in Laws
93.132007, First Special Session chapter 2, article 1, section 15, subdivision 2, is reduced
93.14by $1,428,000 $534,000.
93.15(j) $5,680,000 of the appropriation in Laws 2007, First Special Session chapter 2,
93.16article 1, section 4, subdivision 4, as amended by Laws 2008, chapter 289, section 2, for
93.17grants to local governments for capital costs related to rehabilitation and replacement of
93.18local roads and bridges damaged or destroyed by flooding pursuant to Minnesota Statutes,
93.19section 174.50, is canceled. The bond sale authorization in Laws 2007, First Special
93.20Session chapter 2, article 1, section 15, subdivision 3, is reduced by $5,680,000.
93.21(k) $2,133,000 of the appropriation in Laws 2010, Second Special Session chapter 1,
93.22article 1, section 4, subdivision 3, for local road and bridge rehabilitation and replacement
93.23pursuant to Minnesota Statutes, section 12A.16, subdivision 3, is canceled. The bond
93.24sale authorization in Laws 2010, Second Special Session chapter 1, article 1, section 17,
93.25subdivision 2, is reduced by $2,133,000.
93.26(l) The appropriation in Laws 2010, Second Special Session chapter 1, article 1,
93.27section 4, subdivision 2, for state road infrastructure operations and maintenance pursuant
93.28to Minnesota Statutes, section 12A.16, subdivision 1, is reduced by $819,000.
93.29EFFECTIVE DATE.This section is effective the day following final enactment.

93.30    Sec. 6. Laws 2013, chapter 117, article 1, section 3, subdivision 2, is amended to read:

93.31

Subd. 2.Multimodal Systems

93.32(a) Aeronautics

93.33 93.34

(1) Airport Development and Assistance

13,648,000 14,648,000

13,648,000 16,648,000

94.1This appropriation is from the state
94.2airports fund and must be spent according
94.3to Minnesota Statutes, section 360.305,
94.4subdivision 4 .
94.5The base appropriation for fiscal years 2016
94.6and 2017 is $14,298,000 for each year.
94.7Notwithstanding Minnesota Statutes, section
94.816A.28, subdivision 6 , this appropriation is
94.9available for five years after appropriation.
94.10If the appropriation for either year is
94.11insufficient, the appropriation for the other
94.12year is available for it.
94.13For the current biennium, the commissioner
94.14of transportation may establish different
94.15local contribution rates for airport projects
94.16than those established in Minnesota Statutes,
94.17section 360.305, subdivision 4.

94.18

(2) Aviation Support and Services

6,386,000

6,386,000

94.19	Appropriations by Fund
94.20	Airports	5,286,000	5,286,000
94.21	Trunk Highway	1,100,000	1,100,000

94.22$65,000 in each year is from the state airports
94.23fund for the Civil Air Patrol.

94.24 94.25

(b) Transit

17,226,000

17,245,000 23,777,000

94.26	Appropriations by Fund
94.27 94.28	General	16,451,000	16,470,000 23,002,000
94.29	Trunk Highway	775,000	775,000

94.30$100,000 in each year is from the general
94.31fund for the administrative expenses of the
94.32Minnesota Council on Transportation Access
94.33under Minnesota Statutes, section 174.285.
95.1$78,000 in each year is from the general
95.2fund for grants to greater Minnesota transit
95.3providers as reimbursement for the costs of
95.4providing fixed route public transit rides free
95.5of charge under Minnesota Statutes, section
95.6174.24, subdivision 7 , for veterans certified
95.7as disabled.
95.8$32,000 in the second year is from the
95.9general fund for allocation to public transit
95.10systems under Minnesota Statutes, section
95.11174.24, in amounts that reflect the respective
95.12foregone fare revenues from transit service
95.13under article 11, section 39.
95.14The base appropriation from the general fund
95.15for fiscal years 2016 and 2017 is $17,245,000
95.16in each year.

95.17

(c) Passenger Rail

500,000

500,000

95.18This appropriation is from the general
95.19fund for passenger rail system planning,
95.20alternatives analysis, environmental analysis,
95.21design, and preliminary engineering under
95.22Minnesota Statutes, sections 174.632 to
95.23174.636 .

95.24 95.25

(d) Freight

5,653,000

5,153,000 7,153,000

95.26	Appropriations by Fund
95.27 95.28	General	756,000	256,000 2,256,000
95.29	Trunk Highway	4,897,000	4,897,000

95.30$500,000 in the first year is from the general
95.31fund to pay for the department's share of costs
95.32associated with the cleanup of contaminated
95.33state rail bank property. This appropriation is
95.34available until expended.
96.1$2,000,000 in the second year is from
96.2the general fund for development and
96.3implementation of safety improvements
96.4at highway-rail grade crossings along rail
96.5corridors in which oil or other hazardous
96.6materials are transported. The commissioner
96.7shall identify highway-rail grade crossing
96.8locations and improvements in consultation
96.9with railroads and relevant road authorities.
96.10This is a onetime appropriation and is
96.11available until expended.

96.12 96.13

(e) Safe Routes to School

250,000

250,000 500,000

96.14This appropriation is from the general fund
96.15for non-infrastructure activities in the safe
96.16routes to school program under Minnesota
96.17Statutes, section 174.40, subdivision 7a.
96.18EFFECTIVE DATE.This section is effective the day following final enactment.

96.19    Sec. 7. Laws 2013, chapter 117, article 1, section 3, subdivision 3, is amended to read:

96.20

Subd. 3.State Roads

96.21 96.22

(a) Operations and Maintenance

262,395,000 297,395,000

262,395,000 280,395,000

96.23$5,000,000 in each year is for accelerated
96.24replacement of snow plowing equipment.
96.25$10,000,000 in the first year is for expenses
96.26related to pavement repairs necessitated by
96.27the effects of the 2013-2014 winter season.
96.28The base appropriation for operations and
96.29maintenance for fiscal years 2016 and 2017
96.30is $267,395,000 in each year.

96.31 96.32

(b) Program Planning and Delivery

206,795,000

206,720,000 209,840,000

97.1	Appropriations by Fund
97.2		2014	2015
97.3	H.U.T.D.	75,000	0
97.4 97.5	Trunk Highway	206,720,000	206,720,000 209,840,000

97.6The base appropriation for program planning
97.7and delivery for fiscal years 2016 and 2017
97.8is $206,720,000 in each year.
97.9$250,000 in each year is for the department's
97.10administrative costs for creation and
97.11operation of the Joint Program Office for
97.12Economic Development and Alternative
97.13Finance, including costs of hiring a
97.14consultant and preparing required reports.
97.15$130,000 in each year is available for
97.16administrative costs of the targeted group
97.17business program.
97.18$266,000 in each year is available for grants
97.19to metropolitan planning organizations
97.20outside the seven-county metropolitan area.
97.21$75,000 in each year is available for a
97.22transportation research contingent account
97.23to finance research projects that are
97.24reimbursable from the federal government or
97.25from other sources. If the appropriation for
97.26either year is insufficient, the appropriation
97.27for the other year is available for it.
97.28$900,000 in each year is available for
97.29grants for transportation studies outside
97.30the metropolitan area to identify critical
97.31concerns, problems, and issues. These
97.32grants are available: (1) to regional
97.33development commissions; (2) in regions
97.34where no regional development commission
97.35is functioning, to joint powers boards
98.1established under agreement of two or
98.2more political subdivisions in the region to
98.3exercise the planning functions of a regional
98.4development commission; and (3) in regions
98.5where no regional development commission
98.6or joint powers board is functioning, to the
98.7department's district office for that region.
98.8$75,000 in the first year is from the highway
98.9user tax distribution fund to the commissioner
98.10for a grant to the Humphrey School of Public
98.11Affairs at the University of Minnesota for
98.12WorkPlace Telework program congestion
98.13relief efforts consisting of maintenance of
98.14Web site tools and content. This is a onetime
98.15appropriation and is available in the second
98.16year.
98.17$120,000 in the second year is from the trunk
98.18highway fund for the purpose of education
98.19and outreach related to highway work
98.20zone safety initiatives. This is a onetime
98.21appropriation.

98.22

(c) State Road Construction Activity

98.23 98.24

(1) Economic Recovery Funds - Federal Highway Aid

1,000,000

1,000,000

98.25This appropriation is to complete projects
98.26using funds made available to the
98.27commissioner of transportation under
98.28title XII of the American Recovery and
98.29Reinvestment Act of 2009, Public Law
98.30111-5, and implemented under Minnesota
98.31Statutes, section 161.36, subdivision 7. The
98.32base appropriation is $1,000,000 in fiscal
98.33year 2016 and $0 in fiscal year 2017.

98.34 98.35

(2) State Road Construction

909,400,000 929,900,000

815,600,000 862,105,000

99.1It is estimated that these appropriations will
99.2be funded as follows:

99.3	Appropriations by Fund
99.4 99.5	Federal Highway Aid	489,200,000	482,200,000
99.6 99.7	Highway User Taxes	420,200,000 440,700,000	333,400,000 379,905,000

99.8The commissioner of transportation shall
99.9notify the chairs and ranking minority
99.10members of the legislative committees with
99.11jurisdiction over transportation finance of
99.12any significant events that should cause these
99.13estimates to change.
99.14This appropriation is for the actual
99.15construction, reconstruction, and
99.16improvement of trunk highways, including
99.17design-build contracts and consultant usage
99.18to support these activities. This includes the
99.19cost of actual payment to landowners for
99.20lands acquired for highway rights-of-way,
99.21payment to lessees, interest subsidies, and
99.22relocation expenses.
99.23The base appropriation for state road
99.24construction for fiscal years 2016 and 2017
99.25is $645,000,000 $645,505,000 in each year.
99.26$10,000,000 in each year is for the
99.27transportation economic development
99.28program under Minnesota Statutes, section
99.29174.12 . This appropriation is available until
99.30expended.
99.31The commissioner may expend up to one-half
99.32of one percent of the federal appropriations
99.33under this clause as grants to opportunity
99.34industrialization centers and other nonprofit
100.1job training centers for job training programs
100.2related to highway construction.
100.3The commissioner may transfer up to
100.4$15,000,000 each year to the transportation
100.5revolving loan fund.
100.6The commissioner may receive money
100.7covering other shares of the cost of
100.8partnership projects. These receipts are
100.9appropriated to the commissioner for these
100.10projects.
100.11Notwithstanding subdivision 6 and the
100.12restrictions on the use of trunk highway
100.13funds in Minnesota Statutes, section 165.15,
100.14the commissioner may transfer up to
100.15$6,000,000 from the trunk highway fund
100.16under this appropriation to the Stillwater lift
100.17bridge endowment account under Minnesota
100.18Statutes, section 165.15.
100.19$6,500,000 in the first year and $25,000,000
100.20in the second year are for the corridors
100.21of commerce program under Minnesota
100.22Statutes, section 161.088, and may include
100.23right-of-way acquisition for projects included
100.24in the program. The amount appropriated
100.25in the first year is for projects located
100.26outside of a metropolitan county, as defined
100.27in Minnesota Statutes, section 473.121,
100.28subdivision 4. The commissioner may
100.29identify projects based on the most recent
100.30selection process or may perform a new
100.31selection. These are onetime appropriations
100.32and are available until expended.
100.33$14,000,000 in the first year and $21,000,000
100.34in the second year are for the specific
100.35improvements to "Old Highway 14"
101.1described in the settlement agreement and
101.2release executed January 7, 2014, between
101.3the state and Steele and Waseca Counties.
101.4These are onetime appropriations and are
101.5available until expended.
101.6$505,000 in the second year is for costs of
101.7implementing highway work zone safety
101.8initiatives. The base appropriation for this
101.9purpose is $505,000 in each of fiscal years
101.102016 and 2017.

101.11

(d) Highway Debt Service

158,417,000

189,821,000

101.12$148,917,000 in the first year and
101.13$180,321,000 in the second year are for
101.14transfer to the state bond fund. If an
101.15appropriation is insufficient to make all
101.16transfers required in the year for which it is
101.17made, the commissioner of management and
101.18budget shall notify the senate Committee
101.19on Finance and the house of representatives
101.20Committee on Ways and Means of the
101.21amount of the deficiency and shall then
101.22transfer that amount under the statutory open
101.23appropriation. Any excess appropriation
101.24cancels to the trunk highway fund.

101.25

(e) Electronic Communications

5,171,000

5,171,000

101.26	Appropriations by Fund
101.27	General	3,000	3,000
101.28	Trunk Highway	5,168,000	5,168,000

101.29The general fund appropriation is to equip
101.30and operate the Roosevelt signal tower for
101.31Lake of the Woods weather broadcasting.
101.32EFFECTIVE DATE.This section is effective the day following final enactment.

101.33    Sec. 8. Laws 2013, chapter 117, article 1, section 3, subdivision 6, is amended to read:

102.1

Subd. 6.Transfers

102.2(a) With the approval of the commissioner of
102.3management and budget, the commissioner
102.4of transportation may transfer unencumbered
102.5balances among the appropriations from the
102.6trunk highway fund and the state airports
102.7fund made in this section. No transfer
102.8may be made from the appropriations for
102.9state road construction or for debt service.
102.10Transfers under this paragraph may not be
102.11made between funds. Transfers under this
102.12paragraph must be reported immediately to
102.13the chairs and ranking minority members of
102.14the legislative committees with jurisdiction
102.15over transportation finance.
102.16(b) The commissioner shall transfer from
102.17the flexible highway account in the county
102.18state-aid highway fund: (1) $5,700,000 in the
102.19first year and $21,000,000 in the second year
102.20to the trunk highway fund; (2) $13,000,000
102.21in the first year to the municipal turnback
102.22account in the municipal state-aid street fund;
102.23(3) $10,000,000 in the second year to the
102.24municipal turnback account in the municipal
102.25state-aid street fund; and (4) the remainder
102.26in each year to the county turnback account
102.27in the county state-aid highway fund. The
102.28funds transferred are for highway turnback
102.29purposes as provided under Minnesota
102.30Statutes, section 161.081, subdivision 3.

102.31    Sec. 9. Laws 2013, chapter 117, article 1, section 4, is amended to read:

102.32 102.33

Sec. 4. METROPOLITAN COUNCIL

$

107,889,000

$

76,970,000 79,804,000

103.1This appropriation is from the general fund
103.2for transit system operations under Minnesota
103.3Statutes, sections 473.371 to 473.449.
103.4The base appropriation for fiscal years 2016
103.5and 2017 is $76,686,000 $76,626,000 in
103.6each year.
103.7$37,000,000 in the first year is for the
103.8Southwest Corridor light rail transit line
103.9from the Hiawatha light rail transit line in
103.10downtown Minneapolis to Eden Prairie, to be
103.11used for environmental studies, preliminary
103.12engineering, acquisition of real property, or
103.13interests in real property, and design. This
103.14is a onetime appropriation and is available
103.15until expended.
103.16$500,000 in the second year is for transit
103.17shelter improvements under Minnesota
103.18Statutes, section 473.41. This is a onetime
103.19appropriation.
103.20$144,000 in the second year is for foregone
103.21fare revenues from transit service under
103.22article 11, section 39. The Metropolitan
103.23Council shall allocate a portion of the
103.24funds under this appropriation to transit
103.25providers receiving financial assistance under
103.26Minnesota Statutes, section 473.388, based
103.27on respective foregone fare revenues. This is
103.28a onetime appropriation.
103.29$250,000 in the second year is for allocation
103.30to replacement service providers operating
103.31under Minnesota Statutes, section 473.388.
103.32This is a onetime appropriation.
103.33$1,000,000 in the second year is for arterial
103.34bus rapid transit development, which
104.1may include, but is not limited to, design,
104.2engineering, construction, capital costs,
104.3technology, equipment, and rolling stock.
104.4This is a onetime appropriation and is
104.5available until expended.
104.6$1,000,000 in the second year is for design
104.7and construction of a bus rapid transit station
104.8on interstate 35W and Lake Street. This is a
104.9onetime appropriation and is available until
104.10expended.

104.11    Sec. 10. Laws 2013, chapter 117, article 1, section 5, subdivision 2, is amended to read:

104.12

Subd. 2.Administration and Related Services

104.13

(a) Office of Communications

504,000

504,000

104.14	Appropriations by Fund
104.15	General	111,000	111,000
104.16	Trunk Highway	393,000	393,000

104.17 104.18

(b) Public Safety Support

8,439,000

8,439,000 8,499,000

104.19	Appropriations by Fund
104.20 104.21	General	3,467,000	3,467,000 3,527,000
104.22	H.U.T.D.	1,366,000	1,366,000
104.23	Trunk Highway	3,606,000	3,606,000

104.24$380,000 in each year is from the general
104.25fund for payment of public safety officer
104.26survivor benefits under Minnesota Statutes,
104.27section 299A.44. If the appropriation for
104.28either year is insufficient, the appropriation
104.29for the other year is available for it.
104.30$1,367,000 in each year is from the general
104.31fund to be deposited in the public safety
104.32officer's benefit account. This money
104.33is available for reimbursements under
104.34Minnesota Statutes, section 299A.465.
105.1$600,000 in each year is from the general
105.2fund and $100,000 in each year is from the
105.3trunk highway fund for soft body armor
105.4reimbursements under Minnesota Statutes,
105.5section 299A.38.
105.6$792,000 in each year is from the general
105.7fund for transfer by the commissioner of
105.8management and budget to the trunk highway
105.9fund on December 31, 2013, and December
105.1031, 2014, respectively, in order to reimburse
105.11the trunk highway fund for expenses not
105.12related to the fund. These represent amounts
105.13appropriated out of the trunk highway
105.14fund for general fund purposes in the
105.15administration and related services program.
105.16$610,000 in each year is from the highway
105.17user tax distribution fund for transfer by the
105.18commissioner of management and budget
105.19to the trunk highway fund on December 31,
105.202013, and December 31, 2014, respectively,
105.21in order to reimburse the trunk highway
105.22fund for expenses not related to the fund.
105.23These represent amounts appropriated out
105.24of the trunk highway fund for highway
105.25user tax distribution fund purposes in the
105.26administration and related services program.
105.27$716,000 in each year is from the highway
105.28user tax distribution fund for transfer by the
105.29commissioner of management and budget to
105.30the general fund on December 31, 2013, and
105.31December 31, 2014, respectively, in order to
105.32reimburse the general fund for expenses not
105.33related to the fund. These represent amounts
105.34appropriated out of the general fund for
106.1operation of the criminal justice data network
106.2related to driver and motor vehicle licensing.
106.3Before January 15, 2015, the commissioner
106.4of public safety shall review the amounts and
106.5purposes of the transfers under this paragraph
106.6and shall recommend necessary changes to
106.7the legislative committees with jurisdiction
106.8over transportation finance.
106.9$60,000 in the second year is from the
106.10general fund for light rail safety oversight
106.11under Minnesota Statutes, section 299A.017.
106.12The base appropriation from the general fund
106.13for this purpose in fiscal years 2016 and 2017
106.14is $60,000 each year.

106.15

(c) Technology and Support Service

3,685,000

3,685,000

106.16	Appropriations by Fund
106.17	General	1,322,000	1,322,000
106.18	H.U.T.D.	19,000	19,000
106.19	Trunk Highway	2,344,000	2,344,000

106.20    Sec. 11. Laws 2013, chapter 117, article 1, section 5, subdivision 3, is amended to read:

106.21

Subd. 3.State Patrol

106.22 106.23

(a) Patrolling Highways

72,522,000

72,522,000 78,471,000

106.24	Appropriations by Fund
106.25	General	37,000	37,000
106.26	H.U.T.D.	92,000	92,000
106.27 106.28	Trunk Highway	72,393,000	72,393,000 78,342,000

106.29$5,949,000 in the second year is from the
106.30trunk highway fund to recruit, hire, train at
106.31the State Patrol Academy, equip, and provide
106.32salary for 48 troopers.
107.1The base appropriation from the trunk
107.2highway fund is $77,893,000 in each of fiscal
107.3years 2016 and 2017.

107.4

(b) Commercial Vehicle Enforcement

7,796,000

7,796,000

107.5 107.6

(c) Capitol Security

4,355,000

4,355,000 6,355,000

107.7This appropriation is from the general fund.
107.8$1,250,000 in each year 2014 and $3,250,000
107.9in 2015 and each subsequent year is to
107.10implement the recommendations of the
107.11advisory committee on Capitol Area Security
107.12under Minnesota Statutes, section 299E.04,
107.13including the creation of an emergency
107.14manager position under Minnesota Statutes,
107.15section 299E.01, subdivision 2, and an
107.16increase in the number of State Patrol
107.17troopers and other security officers assigned
107.18to the Capitol complex.
107.19The commissioner may not: (1) spend
107.20any money from the trunk highway fund
107.21for capitol security; or (2) permanently
107.22transfer any state trooper from the patrolling
107.23highways activity to capitol security.
107.24The commissioner may not transfer any
107.25money appropriated to the commissioner
107.26under this section: (1) to capitol security; or
107.27(2) from capitol security.

107.28

(d) Vehicle Crimes Unit

693,000

693,000

107.29This appropriation is from the highway user
107.30tax distribution fund.
107.31This appropriation is to investigate: (1)
107.32registration tax and motor vehicle sales tax
107.33liabilities from individuals and businesses
107.34that currently do not pay all taxes owed;
108.1and (2) illegal or improper activity related
108.2to sale, transfer, titling, and registration of
108.3motor vehicles.

108.4    Sec. 12. Laws 2013, chapter 117, article 1, section 5, subdivision 4, is amended to read:

108.5

Subd. 4.Driver and Vehicle Services

108.6 108.7

(a) Vehicle Services

27,909,000

28,430,000 28,453,000

108.8	Appropriations by Fund
108.9 108.10	Special Revenue	19,673,000	19,771,000 20,217,000
108.11	H.U.T.D.	8,236,000	8,236,000

108.12The special revenue fund appropriation is
108.13from the vehicle services operating account.
108.14$650,000 in each year is from the special
108.15revenue fund for seven additional positions
108.16to enhance customer service related to
108.17vehicle title issuance.
108.18$521,000 in the second year is from
108.19the special revenue fund for the vehicle
108.20services portion of a new telephone
108.21system and is for transfer to the Office of
108.22Enterprise Technology for construction and
108.23development of the system. This is a onetime
108.24appropriation and is available until expended.
108.25$23,000 in the second year is from the special
108.26revenue fund for expenses related to the task
108.27force on motor vehicle insurance coverage
108.28verification. This is a onetime appropriation.
108.29The base appropriation from the special
108.30revenue fund is $27,909,000 $19,673,000
108.31for fiscal year 2016 and $27,909,000
108.32 $19,673,000 for fiscal year 2017.

108.33 108.34

(b) Driver Services

28,749,000

29,162,000 30,001,000

109.1	Appropriations by Fund
109.2 109.3	Special Revenue	28,748,000	29,161,000 30,000,000
109.4	Trunk Highway	1,000	1,000

109.5The special revenue fund appropriation is
109.6from the driver services operating account.
109.7$71,000 in the second year is from the special
109.8revenue fund for one additional position
109.9related to facial recognition.
109.10$279,000 in the second year is from
109.11the special revenue fund for the driver
109.12services portion of a new telephone
109.13system and is for transfer to the Office of
109.14Enterprise Technology for construction and
109.15development of the system. This is a onetime
109.16appropriation and is available until expended.
109.17$37,000 in the first year and $33,000 in the
109.18second year are from the special revenue
109.19fund for one half-time position to assist with
109.20the Novice Driver Improvement Task Force
109.21under Minnesota Statutes, section 171.0701,
109.22subdivision 1a . The base appropriation for
109.23this position is $6,000 in fiscal year 2016 and
109.24$0 in fiscal year 2017.
109.25$67,000 in the second year is from the
109.26special revenue fund for one new position to
109.27administer changes to the ignition interlock
109.28program. The base appropriation for this
109.29position in fiscal years 2016 and 2017 is
109.30$62,000 in each year.
109.31$23,000 in the second year is from the special
109.32revenue fund for expenses related to the task
109.33force on motor vehicle insurance coverage
109.34verification. This is a onetime appropriation.
110.1$816,000 in the second year is from
110.2the special revenue fund for 12 new
110.3positions to implement improved driving
110.4skill examination scheduling. The base
110.5appropriation for these positions is $759,000
110.6in fiscal year 2016 and $774,000 in fiscal
110.7year 2017.
110.8The base appropriation from the special
110.9revenue fund is $28,851,000 $29,609,000
110.10for fiscal year 2016 and $28,845,000
110.11 $29,618,000 for fiscal year 2017.

110.12    Sec. 13. TRANSFER; RAILROAD AND PIPELINE SAFETY.
110.13On or before July 31, 2014, the commissioner of management and budget shall
110.14transfer $1,574,000 from the general fund to the railroad and pipeline safety account in the
110.15special revenue fund under Minnesota Statutes, section 299A.55. This is a onetime transfer.

110.16ARTICLE 10

110.17RAILROAD AND PIPELINE SAFETY

110.18    Section 1. Minnesota Statutes 2012, section 115E.01, is amended by adding a
110.19subdivision to read:
110.20    Subd. 6a. Incident commander. "Incident commander" means the official at the
110.21site of a discharge who has the responsibility for operations at the site, as established
110.22following National Incident Management System guidelines.
110.23EFFECTIVE DATE.This section is effective the day following final enactment.

110.24    Sec. 2. Minnesota Statutes 2012, section 115E.01, is amended by adding a subdivision
110.25to read:
110.26    Subd. 7a. Listed sensitive area. "Listed sensitive area" means an area or location
110.27listed as an area of special economic or environmental importance in an Area Contingency
110.28Plan or a Sub-Area Contingency Plan prepared under the federal Clean Water Act, United
110.29States Code, title 33, section 1321(j)(4).
110.30EFFECTIVE DATE.This section is effective the day following final enactment.

111.1    Sec. 3. Minnesota Statutes 2012, section 115E.01, is amended by adding a subdivision
111.2to read:
111.3    Subd. 11d. Unit train. "Unit train" means a train with more than 25 tanker railcars
111.4carrying oil or hazardous substance cargo.
111.5EFFECTIVE DATE.This section is effective the day following final enactment.

111.6    Sec. 4. [115E.042] PREPAREDNESS AND RESPONSE FOR CERTAIN
111.7RAILROADS.
111.8    Subdivision 1. Application. In addition to the requirements of section 115E.04,
111.9a person who owns or operates railroad car rolling stock transporting a unit train must
111.10comply with this section.
111.11    Subd. 2. Training. (a) Each railroad must offer training to each fire department
111.12having jurisdiction along the route of unit trains. Initial training under this subdivision
111.13must be offered to each fire department by June 30, 2016, and refresher training must be
111.14offered to each fire department at least once every three years thereafter.
111.15(b) The training must address the general hazards of oil and hazardous substances,
111.16techniques to assess hazards to the environment and to the safety of responders and the
111.17public, factors an incident commander must consider in determining whether to attempt to
111.18suppress a fire or to evacuate the public and emergency responders from an area, and other
111.19strategies for initial response by local emergency responders. The training must include
111.20suggested protocol or practices for local responders to safely accomplish these tasks.
111.21    Subd. 3. Coordination. Beginning June 30, 2015, each railroad must communicate
111.22at least annually with each county or city emergency manager, safety representatives of
111.23railroad employees governed by the Railway Labor Act, and a senior fire department
111.24officer of each fire department having jurisdiction along the route of a unit train, to ensure
111.25coordination of emergency response activities between the railroad and local responders.
111.26    Subd. 4. Response capabilities; time limits. (a) Following confirmation of a
111.27discharge, a railroad must deliver and deploy sufficient equipment and trained personnel to
111.28contain and recover discharged oil or hazardous substances and to protect the environment
111.29and public safety.
111.30(b) Within one hour of confirmation of a discharge, a railroad must provide a
111.31qualified company employee to advise the incident commander. The employee may be
111.32made available by telephone, and must be authorized to deploy all necessary response
111.33resources of the railroad.
111.34(c) Within three hours of confirmation of a discharge, a railroad must be capable of
111.35delivering monitoring equipment and a trained operator to assist in protection of responder
112.1and public safety. A plan to ensure delivery of monitoring equipment and an operator to a
112.2discharge site must be provided each year to the commissioner of public safety.
112.3(d) Within three hours of confirmation of a discharge, a railroad must provide qualified
112.4personnel at a discharge site to assess the discharge and to advise the incident commander.
112.5(e) A railroad must be capable of deploying containment boom from land across
112.6sewer outfalls, creeks, ditches, and other places where oil or hazardous substances
112.7may drain, in order to contain leaked material before it reaches those resources. The
112.8arrangement to provide containment boom and staff may be made by:
112.9(1) training and caching equipment with local jurisdictions;
112.10(2) training and caching equipment with a fire mutual-aid group;
112.11(3) means of an industry cooperative or mutual-aid group;
112.12(4) deployment of a contractor;
112.13(5) deployment of a response organization under state contract; or
112.14(6) other dependable means acceptable to the Pollution Control Agency.
112.15(f) Each arrangement under paragraph (e) must be confirmed each year. Each
112.16arrangement must be tested by drill at least once every five years.
112.17(g) Within eight hours of confirmation of a discharge, a railroad must be capable of
112.18delivering and deploying containment boom, boats, oil recovery equipment, trained staff,
112.19and all other materials needed to provide:
112.20(1) on-site containment and recovery of a volume of oil equal to ten percent of the
112.21calculated worst case discharge at any location along the route; and
112.22(2) protection of listed sensitive areas and potable water intakes within one mile of
112.23a discharge site and within eight hours of water travel time downstream in any river
112.24or stream that the right-of-way intersects.
112.25(h) Within 60 hours of confirmation of a discharge, a railroad must be capable of
112.26delivering and deploying additional containment boom, boats, oil recovery equipment,
112.27trained staff, and all other materials needed to provide containment and recovery of a
112.28worst case discharge and to protect listed sensitive areas and potable water intakes at any
112.29location along the route.
112.30    Subd. 5. Railroad drills. Each railroad must conduct at least one oil containment,
112.31recovery, and sensitive area protection drill every three years, at a location and time
112.32chosen by the Pollution Control Agency, and attended by safety representatives of railroad
112.33employees governed by the Railway Labor Act.
112.34    Subd. 6. Prevention and response plans. (a) By June 30, 2015, a railroad shall
112.35submit the prevention and response plan required under section 115E.04, as necessary to
113.1comply with the requirements of this section, to the commissioner of the Pollution Control
113.2Agency on a form designated by the commissioner.
113.3(b) By June 30 of every third year following a plan submission under this subdivision,
113.4a railroad must update and resubmit the prevention and response plan to the commissioner.
113.5EFFECTIVE DATE.Subdivisions 1 to 3 and 6 are effective the day following final
113.6enactment. Subdivisions 4 and 5 are effective July 1, 2015.

113.7    Sec. 5. Minnesota Statutes 2012, section 115E.08, is amended by adding a subdivision
113.8to read:
113.9    Subd. 3a. Railroad preparedness; pollution control. The Pollution Control
113.10Agency shall carry out environmental protection activities related to railroad discharge
113.11preparedness. Duties under this subdivision include, but are not limited to:
113.12(1) assisting local emergency managers and fire officials in understanding the
113.13hazards of oil and hazardous substances, as well as general strategies for containment and
113.14environmental protection;
113.15(2) assisting railroads to identify natural resources and sensitive areas, and to devise
113.16strategies to contain and recover oil and hazardous substances from land and waters
113.17along routes;
113.18(3) facilitating cooperation between railroads for mutual aid arrangements that
113.19provide training, staff, and equipment as required by this chapter;
113.20(4) participating in drills and training sessions;
113.21(5) reviewing each railroad's prevention and response plan for compliance with
113.22the requirements of this chapter, and assessing each railroad's readiness to protect the
113.23environment;
113.24(6) conducting inspections and drills as necessary to determine the railroad's
113.25compliance with the requirements of this chapter and ability to protect the environment;
113.26(7) conducting follow-up corrective action directives, orders, and enforcement as
113.27necessary based on a finding of inadequate environmental protection preparedness; and
113.28(8) soliciting involvement and advice concerning preparedness activities and
113.29requirements from safety representatives of railroad employees governed by the Railway
113.30Labor Act.
113.31EFFECTIVE DATE.This section is effective the day following final enactment.

113.32    Sec. 6. Minnesota Statutes 2012, section 115E.08, is amended by adding a subdivision
113.33to read:
114.1    Subd. 3b. Railroad and pipeline preparedness; public safety. The commissioner
114.2of public safety shall carry out public safety protection activities related to railroad and
114.3pipeline spill and discharge preparedness. Duties under this subdivision include, but
114.4are not limited to:
114.5(1) assisting local emergency managers and fire officials to understand the hazards
114.6of oil and hazardous substances, as well as general strategies for hazard identification,
114.7initial isolation, and other actions necessary to ensure public safety;
114.8(2) assisting railroads and pipeline companies to develop suggested protocols and
114.9practices for local first responder use in protecting the public's safety;
114.10(3) facilitating cooperation between railroads, pipeline companies, county and city
114.11emergency managers, and other public safety organizations;
114.12(4) participating in major exercises and training sessions;
114.13(5) assisting local units of government to incorporate railroad and pipeline hazard
114.14and response information into local emergency operations plans;
114.15(6) monitoring the public safety-related training and planning requirements of
114.16section 115E.03; and
114.17(7) referring noncompliance with section 115E.03 to the Pollution Control Agency.
114.18EFFECTIVE DATE.This section is effective the day following final enactment.

114.19    Sec. 7. Minnesota Statutes 2012, section 219.015, subdivision 1, is amended to read:
114.20    Subdivision 1. Position Positions established; duties. (a) The commissioner of
114.21transportation shall establish a position of three state rail safety inspector positions in
114.22the Office of Freight and Commercial Vehicle Operations of the Minnesota Department
114.23of Transportation. On or after July 1, 2015, the commissioner may establish a fourth
114.24state rail safety inspector position following consultation with railroad companies.
114.25 The commissioner shall apply to and enter into agreements with the Federal Railroad
114.26Administration (FRA) of the United States Department of Transportation to participate
114.27in the federal State Rail Safety Partnership Participation Program for training and
114.28certification of an inspector under authority of United States Code, title 49, sections 20103,
114.2920105, 20106, and 20113, and Code of Federal Regulations, title 49, part 212.
114.30    The (b) A state rail safety inspector shall inspect mainline track, secondary track, and
114.31yard and industry track; inspect railroad right-of-way, including adjacent or intersecting
114.32drainage, culverts, bridges, overhead structures, and traffic and other public crossings;
114.33inspect yards and physical plants; review and enforce safety requirements; review
114.34maintenance and repair records; and review railroad security measures.
115.1(c) A state rail safety inspector may perform, but is not limited to, the duties
115.2described in the federal State Rail Safety Participation Program. An inspector may train,
115.3be certified, and participate in any of the federal State Rail Safety Participation Program
115.4disciplines, including: track, signal and train control, motive power and equipment,
115.5operating practices compliance, hazardous materials, and highway-rail grade crossings.
115.6    (d) To the extent delegated by the Federal Railroad Administration and authorized
115.7 by the commissioner, the an inspector may issue citations for violations of this chapter, or
115.8to ensure railroad employee and public safety and welfare.
115.9EFFECTIVE DATE.This section is effective the day following final enactment.

115.10    Sec. 8. Minnesota Statutes 2012, section 219.015, subdivision 2, is amended to read:
115.11    Subd. 2. Railroad company assessment; account; appropriation. (a) As provided
115.12in this subdivision, the commissioner shall annually assess railroad companies that are
115.13(1) defined as common carriers under section 218.011,; (2) classified by federal law or
115.14regulation as Class I Railroads, or Class I Rail Carriers, Class II Railroads, or Class II
115.15Carriers; and (3) operating in this state,.
115.16    (b) The assessment must be by a division of state rail safety inspector program costs
115.17in equal proportion between carriers based on route miles operated in Minnesota, assessed
115.18in equal amounts for 365 days of the calendar year. The commissioner shall assess all
115.19start-up or re-establishment costs, and all related costs of initiating the state rail safety
115.20inspector program beginning July 1, 2008. The, and ongoing state rail inspector duties
115.21must begin and be assessed on January 1, 2009.
115.22    (c) The assessments must be deposited in a special account in the special revenue
115.23fund, to be known as the state rail safety inspection account. Money in the account is
115.24appropriated to the commissioner and may be expended to cover the costs incurred for the
115.25establishment and ongoing responsibilities of the state rail safety inspector program.
115.26EFFECTIVE DATE.This section is effective the day following final enactment.

115.27    Sec. 9. [299A.55] RAILROAD AND PIPELINE SAFETY; OIL AND OTHER
115.28HAZARDOUS MATERIALS.
115.29    Subdivision 1. Definitions. (a) For purposes of this section, the following terms
115.30have the meanings given them.
115.31(b) "Applicable rail carrier" means a railroad company that is subject to an
115.32assessment under section 219.015, subdivision 2.
115.33(c) "Hazardous substance" has the meaning given in section 115B.02, subdivision 8.
116.1(d) "Oil" has the meaning given in section 115E.01, subdivision 8.
116.2(e) "Pipeline company" means any individual, partnership, association, or public
116.3or private corporation who owns and operates pipeline facilities and is required to show
116.4specific preparedness under section 115E.03, subdivision 2.
116.5    Subd. 2. Railroad and pipeline safety account. (a) A railroad and pipeline safety
116.6account is created in the special revenue fund. The account consists of funds collected
116.7under subdivision 4 and funds donated, allotted, transferred, or otherwise provided to the
116.8account.
116.9    (b) $104,000 is annually appropriated from the railroad and pipeline safety account
116.10to the commissioner of the Pollution Control Agency for environmental protection
116.11activities related to railroad discharge preparedness under chapter 115E.
116.12(c) Following the appropriation in paragraph (b), the remaining money in the
116.13account is annually appropriated to the commissioner of public safety for the purposes
116.14specified in subdivision 3.
116.15    Subd. 3. Allocation of funds. (a) Subject to funding appropriated for this
116.16subdivision, the commissioner shall provide funds for training and response preparedness
116.17related to (1) derailments, discharge incidents, or spills involving trains carrying oil or
116.18other hazardous substances, and (2) pipeline discharge incidents or spills involving oil
116.19or other hazardous substances.
116.20(b) The commissioner shall allocate available funds as follows:
116.21(1) $100,000 annually for emergency response teams; and
116.22(2) the remaining amount to the Board of Firefighter Training and Education under
116.23section 299N.02 and the Division of Homeland Security and Emergency Management.
116.24(c) Prior to making allocations under paragraph (b), the commissioner shall consult
116.25with the Fire Service Advisory Committee under section 299F.012, subdivision 2.
116.26(d) The commissioner and the entities identified in paragraph (b), clause (2), shall
116.27prioritize uses of funds based on:
116.28(1) firefighter training needs;
116.29(2) community risk from discharge incidents or spills;
116.30(3) geographic balance; and
116.31(4) recommendations of the Fire Service Advisory Committee.
116.32(e) The following are permissible uses of funds provided under this subdivision:
116.33(1) training costs, which may include, but are not limited to, training curriculum,
116.34trainers, trainee overtime salary, other personnel overtime salary, and tuition;
117.1(2) costs of gear and equipment related to hazardous materials readiness, response,
117.2and management, which may include, but are not limited to, original purchase,
117.3maintenance, and replacement;
117.4(3) supplies related to the uses under clauses (1) and (2); and
117.5(4) emergency preparedness planning and coordination.
117.6(f) Notwithstanding paragraph (b), clause (2), from funds in the railroad and pipeline
117.7safety account provided for the purposes under this subdivision, the commissioner may
117.8retain a balance in the account for budgeting in subsequent fiscal years.
117.9    Subd. 4. Assessments. (a) The commissioner of public safety shall annually assess
117.10$2,500,000 to railroad and pipeline companies based on the formula specified in paragraph
117.11(b). The commissioner shall deposit funds collected under this subdivision in the railroad
117.12and pipeline safety account under subdivision 2.
117.13(b) The assessment for each railroad is 50 percent of the total annual assessment
117.14amount, divided in equal proportion between applicable rail carriers based on route miles
117.15operated in Minnesota. The assessment for each pipeline company is 50 percent of the
117.16total annual assessment amount, divided in equal proportion between companies based
117.17on the yearly aggregate gallons of oil and hazardous substance transported by pipeline
117.18in Minnesota.
117.19(c) The assessments under this subdivision expire July 1, 2017.

117.20    Sec. 10. IMPROVEMENTS STUDY ON GRADE CROSSINGS AND
117.21RAIL SAFETY FOR OIL AND OTHER HAZARDOUS MATERIALS
117.22TRANSPORTATION.
117.23(a) The commissioner of transportation shall conduct a study on highway-rail grade
117.24crossing improvement for oil and other hazardous materials transported by rail, and on
117.25rail safety. At a minimum, the study must:
117.26(1) provide information that assists in risk management associated with
117.27transportation of oil and other hazardous materials by rail;
117.28(2) develop criteria to prioritize needs and improvements at highway-rail grade
117.29crossings;
117.30(3) consider alternatives for safety improvements, including but not limited to active
117.31warning devices such as gates and signals, closings, and grade separation;
117.32(4) provide findings and recommendations that serve to direct accelerated
117.33investments in highway-rail grade crossing safety improvements; and
117.34(5) analyze state inspection activities and staffing for track and hazardous materials
117.35under Minnesota Statutes, section 219.015.
118.1(b) The commissioner shall submit an interim update on the study by August 31,
118.22014, and a final report by October 31, 2014, to the chairs and ranking minority members
118.3of the legislative committees with jurisdiction over transportation policy and finance.
118.4EFFECTIVE DATE.This section is effective the day following final enactment.

118.5    Sec. 11. REPORTS ON INCIDENT PREPAREDNESS FOR OIL
118.6TRANSPORTATION.
118.7    Subdivision 1. Report on response preparedness. By January 15, 2015, the
118.8commissioner of public safety shall submit a report on emergency response preparedness
118.9in the public and private sectors for incidents involving transportation of oil to the chairs
118.10and ranking minority members of the legislative committees with jurisdiction over
118.11transportation and public safety policy and finance. At a minimum, the report must:
118.12(1) summarize the preparedness and emergency response framework in the state;
118.13(2) provide an assessment of costs and needs of fire departments and other
118.14emergency first responders for training and equipment to respond to discharge or spill
118.15incidents involving transportation of oil;
118.16(3) develop a comprehensive public and private response capacity inventory that,
118.17to the extent feasible, includes statewide identification of major emergency response
118.18equipment, equipment staging locations, mutual aid agreements, and capacities across
118.19industries involved in transportation and storage of oil;
118.20(4) provide information and analysis that forms the basis for allocation of funds
118.21under Minnesota Statutes, section 299A.55;
118.22(5) develop benchmarks or assessment criteria for the evaluation under subdivision 2;
118.23(6) assist in long-range oil transportation incident preparedness planning; and
118.24(7) make recommendations for any legislative changes.
118.25    Subd. 2. Evaluation of response preparedness and funding. By January 15,
118.262017, the commissioner of public safety shall submit an evaluation of safety preparedness
118.27and funding related to incidents involving transportation of oil to the chairs and ranking
118.28minority members of the legislative committees with jurisdiction over transportation and
118.29public safety policy and finance. At a minimum, the evaluation must:
118.30(1) provide an update to the report under subdivision 1 that identifies notable
118.31changes and provides updated information as appropriate;
118.32(2) evaluate the effectiveness of training and response preparedness activities under
118.33Minnesota Statutes, section 299A.55, using the criteria established under subdivision
118.341, clause (5);
119.1(3) identify current sources of funds, funding levels, and any unfunded needs for
119.2preparedness activities;
119.3(4) analyze equity in the distribution of funding sources for preparedness activities,
119.4which must include but is not limited to (i) examination of the public-private partnership
119.5financing model, and (ii) review of balance across industries involved in storage and
119.6distribution of oil; and
119.7(5) make recommendations for any programmatic or legislative changes.
119.8EFFECTIVE DATE.This section is effective the day following final enactment.

119.9ARTICLE 11

119.10TRANSPORTATION FINANCE PROVISIONS

119.11    Section 1. Minnesota Statutes 2012, section 161.14, is amended by adding a
119.12subdivision to read:
119.13    Subd. 78. Trooper Glen Skalman Memorial Highway. That segment of signed
119.14U.S. Highway 61 from the intersection with signed U.S. Highway 8 in Forest Lake to
119.15the intersection with 260th Street in Wyoming is designated as "Trooper Glen Skalman
119.16Memorial Highway." Subject to section 161.139, the commissioner shall adopt a suitable
119.17design to mark this highway and erect appropriate signs in the vicinity of the location
119.18where Trooper Skalman died.
119.19EFFECTIVE DATE.This section is effective the day following final enactment.

119.20    Sec. 2. Minnesota Statutes 2012, section 165.15, subdivision 2, is amended to read:
119.21    Subd. 2. Use of funds. (a) Income derived from the investment of principal in the
119.22account may be used by the commissioner of transportation for operations and routine
119.23maintenance of the Stillwater lift bridge, including bridge safety inspections and reactive
119.24repairs. No money from this account may be used for any purposes except those described
119.25in this section, and no money from this account may be transferred to any other account
119.26in the state treasury without specific legislative authorization. Any money transferred
119.27from the trunk highway fund may only be used for trunk highway purposes. For the
119.28purposes of this section:
119.29(1) "Income" is the amount of interest on debt securities and dividends on equity
119.30securities. Any gains or losses from the sale of securities must be added to the principal
119.31of the account.
119.32(2) "Routine maintenance" means activities that are predictable and repetitive, but
119.33not activities that would constitute major repairs or rehabilitation.
120.1(b) Investment management fees incurred by the State Board of Investment are
120.2eligible expenses for reimbursement from the account.
120.3(c) The commissioner of transportation has authority to approve or deny expenditures
120.4of funds in the account.

120.5    Sec. 3. [168.1299] MINNESOTA GOLF PLATES.
120.6    Subdivision 1. Issuance. Notwithstanding section 168.1293, the commissioner shall
120.7issue special Minnesota golf plates or a single motorcycle plate to an applicant who:
120.8(1) is a registered owner of a passenger automobile, one-ton pickup truck,
120.9motorcycle, or recreational vehicle;
120.10(2) pays a fee of $10 and any other fees required by this chapter;
120.11(3) contributes a minimum of $30 annually after January 1, 2017, to the Minnesota
120.12Section PGA Foundation account; and
120.13(4) complies with this chapter and rules governing registration of motor vehicles
120.14and licensing of drivers.
120.15    Subd. 2. Design. After consultation with the Minnesota Section PGA and the
120.16Minnesota Golf Association, the commissioner shall design the special plate.
120.17    Subd. 3. Plates transfer. On payment of a fee of $5, plates issued under this section
120.18may be transferred to another passenger automobile, one-ton pickup truck, motorcycle,
120.19or other recreational vehicle registered to the individual to whom the special plates were
120.20issued.
120.21    Subd. 4. Fees. Fees collected under subdivision 1, clause (2), and subdivision 3 are
120.22credited to the vehicle services operating account in the special revenue fund.
120.23    Subd. 5. Contributions. Contributions collected under subdivision 1, clause (3),
120.24are credited first to the commissioner of public safety for the cost of administering the
120.25Minnesota Section PGA Foundation account, which is established in the special revenue
120.26fund. After the commissioner's administration costs are paid each year, remaining
120.27contributions are credited to the Minnesota Section PGA Foundation account. Money in
120.28the account is appropriated to the commissioner of public safety for distribution to the
120.29Minnesota Section PGA Foundation, to be used to enhance and promote the game of
120.30golf throughout Minnesota.
120.31EFFECTIVE DATE.Subdivisions 1 to 4 are effective January 1, 2015, for special
120.32Minnesota golf plates issued on or after that date. Subdivision 5 is effective January 1, 2017.

120.33    Sec. 4. Minnesota Statutes 2012, section 169.011, is amended by adding a subdivision
120.34to read:
121.1    Subd. 95. Work zone. "Work zone" means a segment of street or highway for which:
121.2(1) a road authority or its agent is constructing, reconstructing, or maintaining the
121.3physical structure of the roadway, which may include, but is not limited to, shoulders,
121.4features adjacent to the roadway, and utilities and highway appurtenances, whether
121.5underground or overhead; and
121.6(2) any of the following applies:
121.7(i) official traffic-control devices that indicate the segment of street or highway under
121.8construction, reconstruction, or maintenance, are erected;
121.9(ii) one or more lanes of traffic are closed;
121.10(iii) a flagger under section 169.06, subdivision 4a, is present;
121.11(iv) a construction zone speed limit under section 169.14, subdivision 4, is
121.12established; or
121.13(v) a workers present speed limit under section 169.14, subdivision 5d, is in effect.
121.14EFFECTIVE DATE.This section is effective August 1, 2014.

121.15    Sec. 5. Minnesota Statutes 2012, section 169.06, subdivision 4, is amended to read:
121.16    Subd. 4. Obedience to traffic-control signal or flagger authorized persons;
121.17presumptions. (a) The driver of any vehicle shall obey the instructions of any official
121.18traffic-control device applicable thereto placed in accordance with the provisions of this
121.19chapter, unless otherwise directed by a police officer or by a flagger authorized under this
121.20subdivision, subject to the exceptions granted the driver of an authorized emergency
121.21vehicle in this chapter.
121.22(b) No provision of this chapter for which official traffic-control devices are required
121.23shall be enforced against an alleged violator if at the time and place of the alleged
121.24violation an official device is not in proper position and sufficiently legible to be seen by
121.25an ordinarily observant person. Whenever a particular section does not state that official
121.26traffic-control devices are required, such section shall be effective even though no devices
121.27are erected or in place.
121.28(c) Whenever official traffic-control devices are placed in position approximately
121.29conforming to the requirements of this chapter, such devices shall be presumed to have
121.30been so placed by the official act or direction of lawful authority, unless the contrary
121.31shall be established by competent evidence.
121.32(d) Any official traffic-control device placed pursuant to the provisions of this
121.33chapter and purporting to conform to the lawful requirements pertaining to such devices
121.34shall be presumed to comply with the requirements of this chapter, unless the contrary
121.35shall be established by competent evidence.
122.1(e) A flagger in a designated work zone may stop vehicles and hold vehicles in place
122.2until it is safe for the vehicles to proceed. A person operating a motor vehicle that has
122.3been stopped by a flagger in a designated work zone may proceed after stopping only on
122.4instruction by the flagger.
122.5(f) An overdimensional load escort driver with a certificate issued under section
122.6299D.085 , while acting as a flagger escorting a legal overdimensional load, may stop
122.7vehicles and hold vehicles in place until it is safe for the vehicles to proceed. A person
122.8operating a motor vehicle that has been stopped by an escort driver acting as a flagger may
122.9proceed only on instruction by the flagger or a police officer.
122.10(g) (f) A person may stop and hold vehicles in place until it is safe for the vehicles to
122.11proceed, if the person: (1) holds a motorcycle road guard certificate issued under section
122.12171.60 ; (2) meets the safety and equipment standards for operating under the certificate;
122.13(3) is acting as a flagger escorting a motorcycle group ride; (4) has notified each statutory
122.14or home rule charter city through which the motorcycle group is proceeding; and (5)
122.15has obtained consent from the chief of police, or the chief's designee, of any city of the
122.16first class through which the group is proceeding. A flagger operating as provided under
122.17this paragraph may direct operators of motorcycles within a motorcycle group ride or
122.18other vehicle traffic, notwithstanding any contrary indication of a traffic-control device,
122.19including stop signs or traffic-control signals. A person operating a vehicle that has been
122.20stopped by a flagger under this paragraph may proceed only on instruction by the flagger
122.21or a police officer.
122.22EFFECTIVE DATE.This section is effective August 1, 2014.

122.23    Sec. 6. Minnesota Statutes 2012, section 169.06, is amended by adding a subdivision
122.24to read:
122.25    Subd. 4a. Obedience to work zone flagger; violation, penalty. (a) A flagger in a
122.26work zone may stop vehicles and hold vehicles in place until it is safe for the vehicles to
122.27proceed. A person operating a motor vehicle that has been stopped by a flagger in a work
122.28zone may proceed after stopping only on instruction by the flagger or a police officer.
122.29(b) A person convicted of operating a motor vehicle in violation of a speed limit
122.30in a work zone, or any other provision of this section while in a work zone, shall be
122.31required to pay a fine of $300. This fine is in addition to the surcharge under section
122.32357.021, subdivision 6.
122.33(c) If a motor vehicle is operated in violation of paragraph (a), the owner of the
122.34vehicle, or for a leased motor vehicle the lessee of the vehicle, is guilty of a petty
122.35misdemeanor and is subject to a fine as provided in paragraph (b). The owner or lessee may
123.1not be fined under this paragraph if (1) another person is convicted for that violation, or (2)
123.2the motor vehicle was stolen at the time of the violation. This paragraph does not apply to a
123.3lessor of a motor vehicle if the lessor keeps a record of the name and address of the lessee.
123.4(d) Paragraph (c) does not prohibit or limit the prosecution of a motor vehicle
123.5operator for violating paragraph (a).
123.6(e) A violation under paragraph (c) does not constitute grounds for revocation or
123.7suspension of a driver's license.
123.8EFFECTIVE DATE.This section is effective August 1, 2014, and applies to
123.9violations committed on or after that date.

123.10    Sec. 7. Minnesota Statutes 2012, section 169.14, subdivision 5d, is amended to read:
123.11    Subd. 5d. Speed zoning limit in work zone; surcharge when workers present.
123.12(a) Notwithstanding subdivision 2 and subject to subdivision 3, the speed limit on a
123.13road having an established speed limit of 50 miles per hour or greater is adjusted to 45
123.14miles per hour in a work zone when (1) at least one lane or portion of a lane of traffic is
123.15closed in either direction, and (2) workers are present. A speed in excess of the adjusted
123.16speed limit is unlawful.
123.17(b) Paragraph (a) does not apply to a segment of road in which:
123.18(1) positive barriers are placed between workers and the traveled portion of the
123.19highway;
123.20(2) the work zone is in place for less than 24 hours;
123.21(3) a different speed limit for the work zone is determined by the road authority
123.22following an engineering and traffic investigation and based on accepted engineering
123.23practice; or
123.24(4) a different speed limit for the work zone is established by the road authority
123.25under paragraph (c).
123.26(c) The commissioner, on trunk highways and temporary trunk highways, and
123.27local authorities, on streets and highways under their jurisdiction, may authorize the use
123.28of reduced maximum speed limits in highway work zones. The commissioner or local
123.29authority is not required to conduct when workers are present, without an engineering and
123.30traffic investigation before authorizing a reduced speed limit in a highway work zone
123.31 required. The work zone speed limit must not reduce the speed limit on the affected
123.32street or highway by more than:
123.33(b) The minimum highway work zone speed limit is 20 miles per hour. The work
123.34zone speed limit must not reduce the established speed limit on the affected street or
123.35highway by more than 15 miles per hour, except that the highway work zone speed limit
124.1must not exceed 40 miles per hour. The commissioner or local authority shall post the limits
124.2of the work zone. Highway work zone speed limits are effective on erection of appropriate
124.3regulatory speed limit signs. The signs must be removed or covered when they are not
124.4required. A speed greater than the posted highway work zone speed limit is unlawful.
124.5(c) Notwithstanding paragraph (b), on divided highways the commissioner or local
124.6authority may establish a highway work zone speed limit that does not exceed 55 miles
124.7per hour.
124.8(d) Notwithstanding paragraph (b), on two-lane highways having one lane for
124.9each direction of travel with a posted speed limit of 60 miles per hour or greater, the
124.10commissioner or local authority may establish a highway work zone speed limit that
124.11does not exceed 40 miles per hour.
124.12(e) For purposes of this subdivision, "highway work zone" means a segment of
124.13highway or street where a road authority or its agent is constructing, reconstructing, or
124.14maintaining the physical structure of the roadway, its shoulders, or features adjacent to
124.15the roadway, including underground and overhead utilities and highway appurtenances,
124.16when workers are present.
124.17(f) Notwithstanding section 609.0331 or 609.101 or other law to the contrary, a person
124.18who violates a speed limit established under this subdivision, or who violates any other
124.19provision of this section while in a highway work zone, is assessed an additional surcharge
124.20equal to the amount of the fine imposed for the speed violation, but not less than $25.
124.21(1) 20 miles per hour on a street or highway having an established speed limit of
124.2255 miles per hour or greater; and
124.23(2) 15 miles per hour on a street or highway having an established speed limit of
124.2450 miles per hour or less.
124.25(d) A work zone speed limit under paragraph (c) is effective on erection of
124.26appropriate regulatory speed limit signs. The signs must be removed or covered when
124.27they are not required. A speed in excess of the posted work zone speed limit is unlawful.
124.28(e) For any speed limit under this subdivision, a road authority shall erect signs
124.29identifying the speed limit and indicating the beginning and end of the speed limit zone.
124.30EFFECTIVE DATE.This section is effective August 1, 2014, and applies to
124.31violations committed on or after that date.

124.32    Sec. 8. Minnesota Statutes 2012, section 169.14, is amended by adding a subdivision
124.33to read:
124.34    Subd. 6a. Work zone speed limit violations. A person convicted of operating a
124.35motor vehicle in violation of a speed limit in a work zone, or any other provision of
125.1this section while in a work zone, shall be required to pay a fine of $300. This fine is in
125.2addition to the surcharge under section 357.021, subdivision 6.
125.3EFFECTIVE DATE.This section is effective August 1, 2014, and applies to
125.4violations committed on or after that date.

125.5    Sec. 9. Minnesota Statutes 2012, section 169.305, subdivision 1, is amended to read:
125.6    Subdivision 1. Entrance and exit; crossover; use regulations; signs; rules. (a) No
125.7person shall drive a vehicle onto or from any controlled-access highway except at such
125.8entrances and exits as are established by public authority.
125.9(b) When special crossovers between the main roadways of a controlled-access
125.10highway are provided for emergency vehicles or maintenance equipment and such
125.11crossovers are signed to prohibit "U" turns, it shall be unlawful for any vehicle, except
125.12an emergency vehicle, maintenance equipment, or construction equipment including
125.13contractor's and state-owned equipment when operating within a marked construction
125.14zone, or a vehicle operated by a commercial vehicle inspector of the Department of Public
125.15Safety, to use such crossover. Vehicles owned and operated by elderly and needy persons
125.16under contract with the commissioner of transportation pursuant to section 160.282 for
125.17maintenance services on highway rest stop and tourist centers outside the seven-county
125.18metropolitan area as defined in section 473.121, may also use these crossovers while those
125.19persons are proceeding to or from work in the rest area or tourist center if authorized by the
125.20commissioner, and the vehicle carries on its roof a distinctive flag designed and issued by
125.21the commissioner. For the purposes of this clause "emergency vehicle" includes a tow truck
125.22or towing vehicle if it is on the way to the location of an accident or a disabled vehicle.
125.23(c) The commissioner of transportation may by order, and any public authority may
125.24by ordinance, with respect to any controlled-access highway under their jurisdictions
125.25prohibit or regulate the use of any such highway by pedestrians, bicycles, or other
125.26nonmotorized traffic, or by motorized bicycles, or by any class or kind of traffic which is
125.27found to be incompatible with the normal and safe flow of traffic.
125.28(d) The commissioner of transportation or the public authority adopting any such
125.29prohibitory rules shall erect and maintain official signs on the controlled-access highway
125.30on which such rules are applicable and when so erected no person shall disobey the
125.31restrictions stated on such signs.

125.32    Sec. 10. Minnesota Statutes 2012, section 169.826, is amended by adding a subdivision
125.33to read:
126.1    Subd. 7. Expiration date. Upon request of the permit applicant, the expiration
126.2date for a permit issued under this section must be the same as the expiration date of the
126.3permitted vehicle's registration.
126.4EFFECTIVE DATE.This section is effective November 30, 2016, and applies
126.5to permits issued on and after that date.

126.6    Sec. 11. Minnesota Statutes 2012, section 169.8261, is amended by adding a
126.7subdivision to read:
126.8    Subd. 3. Expiration date. Upon request of the permit applicant, the expiration
126.9date for a permit issued under this section must be the same as the expiration date of the
126.10permitted vehicle's registration.
126.11EFFECTIVE DATE.This section is effective November 30, 2016, and applies
126.12to permits issued on and after that date.

126.13    Sec. 12. Minnesota Statutes 2012, section 169.86, subdivision 5, is amended to read:
126.14    Subd. 5. Fees; proceeds deposited; appropriation. The commissioner, with
126.15respect to highways under the commissioner's jurisdiction, may charge a fee for each
126.16permit issued. The fee for an annual permit that expires by law on the date of the
126.17vehicle registration expiration must be based on the proportion of the year that remains
126.18until the expiration date. Unless otherwise specified, all fees for permits issued by the
126.19commissioner of transportation must be deposited in the state treasury and credited to
126.20the trunk highway fund. Except for those annual permits for which the permit fees are
126.21specified elsewhere in this chapter, the fees are:
126.22    (a) $15 for each single trip permit.
126.23    (b) $36 for each job permit. A job permit may be issued for like loads carried on
126.24a specific route for a period not to exceed two months. "Like loads" means loads of the
126.25same product, weight, and dimension.
126.26    (c) $60 for an annual permit to be issued for a period not to exceed 12 consecutive
126.27months. Annual permits may be issued for:
126.28    (1) motor vehicles used to alleviate a temporary crisis adversely affecting the safety
126.29or well-being of the public;
126.30    (2) motor vehicles that travel on interstate highways and carry loads authorized
126.31under subdivision 1a;
126.32    (3) motor vehicles operating with gross weights authorized under section 169.826,
126.33subdivision 1a ;
127.1    (4) special pulpwood vehicles described in section 169.863;
127.2    (5) motor vehicles bearing snowplow blades not exceeding ten feet in width;
127.3    (6) noncommercial transportation of a boat by the owner or user of the boat;
127.4    (7) motor vehicles carrying bales of agricultural products authorized under section
127.5169.862 ; and
127.6(8) special milk-hauling vehicles authorized under section 169.867.
127.7    (d) $120 for an oversize annual permit to be issued for a period not to exceed 12
127.8consecutive months. Annual permits may be issued for:
127.9    (1) mobile cranes;
127.10    (2) construction equipment, machinery, and supplies;
127.11    (3) manufactured homes and manufactured storage buildings;
127.12    (4) implements of husbandry;
127.13    (5) double-deck buses;
127.14    (6) commercial boat hauling and transporting waterfront structures, including, but
127.15not limited to, portable boat docks and boat lifts;
127.16    (7) three-vehicle combinations consisting of two empty, newly manufactured trailers
127.17for cargo, horses, or livestock, not to exceed 28-1/2 feet per trailer; provided, however,
127.18the permit allows the vehicles to be moved from a trailer manufacturer to a trailer dealer
127.19only while operating on twin-trailer routes designated under section 169.81, subdivision 3,
127.20paragraph (c); and
127.21(8) vehicles operating on that portion of marked Trunk Highway 36 described in
127.22section 169.81, subdivision 3, paragraph (e).
127.23    (e) For vehicles that have axle weights exceeding the weight limitations of sections
127.24169.823 to 169.829, an additional cost added to the fees listed above. However, this
127.25paragraph applies to any vehicle described in section 168.013, subdivision 3, paragraph
127.26(b), but only when the vehicle exceeds its gross weight allowance set forth in that
127.27paragraph, and then the additional cost is for all weight, including the allowance weight,
127.28in excess of the permitted maximum axle weight. The additional cost is equal to the
127.29product of the distance traveled times the sum of the overweight axle group cost factors
127.30shown in the following chart:

127.31		Overweight Axle Group Cost Factors
127.32	Weight (pounds)		Cost Per Mile For Each Group Of:
127.33 127.34 127.35 127.36 127.37	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
127.38	0-2,000		.12		.05		.04
128.1	2,001-4,000		.14		.06		.05
128.2	4,001-6,000		.18		.07		.06
128.3	6,001-8,000		.21		.09		.07
128.4	8,001-10,000		.26		.10		.08
128.5	10,001-12,000		.30		.12		.09
128.6 128.7	12,001-14,000		Not permitted		.14		.11
128.8 128.9	14,001-16,000		Not permitted		.17		.12
128.10 128.11	16,001-18,000		Not permitted		.19		.15
128.12 128.13	18,001-20,000		Not permitted		Not permitted		.16
128.14 128.15	20,001-22,000		Not permitted		Not permitted		.20

128.16The amounts added are rounded to the nearest cent for each axle or axle group. The
128.17additional cost does not apply to paragraph (c), clauses (1) and (3).
128.18For a vehicle found to exceed the appropriate maximum permitted weight, a cost-per-mile
128.19fee of 22 cents per ton, or fraction of a ton, over the permitted maximum weight is imposed
128.20in addition to the normal permit fee. Miles must be calculated based on the distance
128.21already traveled in the state plus the distance from the point of detection to a transportation
128.22loading site or unloading site within the state or to the point of exit from the state.
128.23    (f) As an alternative to paragraph (e), an annual permit may be issued for overweight,
128.24or oversize and overweight, mobile cranes; construction equipment, machinery, and
128.25supplies; implements of husbandry; and commercial boat hauling. The fees for the permit
128.26are as follows:

128.27	Gross Weight (pounds) of Vehicle		Annual Permit Fee
128.28	90,000	or less	$200
128.29	90,001	- 100,000	$300
128.30	100,001	- 110,000	$400
128.31	110,001	- 120,000	$500
128.32	120,001	- 130,000	$600
128.33	130,001	- 140,000	$700
128.34	140,001	- 145,000	$800
128.35	145,001	- 155,000	$900

128.36If the gross weight of the vehicle is more than 155,000 pounds the permit fee is determined
128.37under paragraph (e).
128.38    (g) For vehicles which exceed the width limitations set forth in section 169.80 by
128.39more than 72 inches, an additional cost equal to $120 added to the amount in paragraph (a)
128.40when the permit is issued while seasonal load restrictions pursuant to section 169.87 are
128.41in effect.
129.1    (h) $85 for an annual permit to be issued for a period not to exceed 12 months, for
129.2refuse-compactor vehicles that carry a gross weight of not more than: 22,000 pounds on
129.3a single rear axle; 38,000 pounds on a tandem rear axle; or, subject to section 169.828,
129.4subdivision 2 , 46,000 pounds on a tridem rear axle. A permit issued for up to 46,000 pounds
129.5on a tridem rear axle must limit the gross vehicle weight to not more than 62,000 pounds.
129.6    (i) $300 for a motor vehicle described in section 169.8261. The fee under this
129.7paragraph must be deposited as follows:
129.8    (1) the first $50,000 in each fiscal year must be deposited in the trunk highway fund for
129.9costs related to administering the permit program and inspecting and posting bridges; and
129.10    (2) all remaining money in each fiscal year must be deposited in the bridge
129.11inspection and signing account as provided under subdivision 5b.
129.12    (j) Beginning August 1, 2006, $200 for an annual permit for a vehicle operating
129.13under authority of section 169.824, subdivision 2, paragraph (a), clause (2).
129.14EFFECTIVE DATE.This section is effective November 30, 2016, and applies
129.15to permits issued on and after that date.

129.16    Sec. 13. Minnesota Statutes 2012, section 169.863, is amended by adding a subdivision
129.17to read:
129.18    Subd. 3. Expiration date. Upon request of the permit applicant, the expiration
129.19date for a permit issued under this section must be the same as the expiration date of the
129.20permitted vehicle's registration.
129.21EFFECTIVE DATE.This section is effective November 30, 2016, and applies
129.22to permits issued on and after that date.

129.23    Sec. 14. Minnesota Statutes 2012, section 169.865, subdivision 1, is amended to read:
129.24    Subdivision 1. Six-axle vehicles. (a) A road authority may issue an annual permit
129.25authorizing a vehicle or combination of vehicles with a total of six or more axles to haul raw
129.26or unprocessed agricultural products and be operated with a gross vehicle weight of up to:
129.27    (1) 90,000 pounds; and
129.28    (2) 99,000 pounds during the period set by the commissioner under section 169.826,
129.29subdivision 1 .
129.30    (b) Notwithstanding subdivision 3, paragraph (a), clause (4), a vehicle or
129.31combination of vehicles operated under this subdivision and transporting only sealed
129.32intermodal containers may be operated on an interstate highway if allowed by the United
129.33States Department of Transportation.
130.1    (c) The fee for a permit issued under this subdivision is $300, or a proportional
130.2amount as provided in section 169.86, subdivision 5.
130.3EFFECTIVE DATE.This section is effective November 30, 2016, and applies
130.4to permits issued on and after that date.

130.5    Sec. 15. Minnesota Statutes 2012, section 169.865, subdivision 2, is amended to read:
130.6    Subd. 2. Seven-axle vehicles. (a) A road authority may issue an annual permit
130.7authorizing a vehicle or combination of vehicles with a total of seven or more axles to
130.8haul raw or unprocessed agricultural products and be operated with a gross vehicle weight
130.9of up to:
130.10    (1) 97,000 pounds; and
130.11    (2) 99,000 pounds during the period set by the commissioner under section 169.826,
130.12subdivision 1 .
130.13    (b) Drivers of vehicles operating under this subdivision must comply with driver
130.14qualification requirements adopted under section 221.0314, subdivisions 2 to 5, and Code
130.15of Federal Regulations, title 49, parts 40 and 382.
130.16    (c) The fee for a permit issued under this subdivision is $500, or a proportional
130.17amount as provided in section 169.86, subdivision 5.
130.18EFFECTIVE DATE.This section is effective November 30, 2016, and applies
130.19to permits issued on and after that date.

130.20    Sec. 16. Minnesota Statutes 2012, section 169.865, is amended by adding a subdivision
130.21to read:
130.22    Subd. 5. Expiration date. Upon request of the permit applicant, the expiration
130.23date for a permit issued under this section must be the same as the expiration date of the
130.24permitted vehicle's registration.
130.25EFFECTIVE DATE.This section is effective November 30, 2016, and applies
130.26to permits issued on and after that date.

130.27    Sec. 17. Minnesota Statutes 2012, section 169.866, subdivision 3, is amended to read:
130.28    Subd. 3. Permit fee; appropriation. Vehicle permits issued under subdivision 1
130.29must be annual permits. The fee is $850 for each vehicle, or a proportional amount as
130.30provided in section 169.86, subdivision 5, and must be deposited in the trunk highway
130.31fund. An amount sufficient to administer the permit program is appropriated from the
130.32trunk highway fund to the commissioner for the costs of administering the permit program.
131.1EFFECTIVE DATE.This section is effective November 30, 2016, and applies
131.2to permits issued on and after that date.

131.3    Sec. 18. Minnesota Statutes 2012, section 169.866, is amended by adding a subdivision
131.4to read:
131.5    Subd. 4. Expiration date. Upon request of the permit applicant, the expiration
131.6date for a permit issued under this section must be the same as the expiration date of the
131.7permitted vehicle's registration.
131.8EFFECTIVE DATE.This section is effective November 30, 2016, and applies
131.9to permits issued on and after that date.

131.10    Sec. 19. Minnesota Statutes 2012, section 171.02, subdivision 3, is amended to read:
131.11    Subd. 3. Motorized bicycle. (a) A motorized bicycle may not be operated on any
131.12public roadway by any person who does not possess a valid driver's license, unless the
131.13person has obtained a motorized bicycle operator's permit or motorized bicycle instruction
131.14permit from the commissioner of public safety. The operator's permit may be issued to
131.15any person who has attained the age of 15 years and who has passed the examination
131.16prescribed by the commissioner. The instruction permit may be issued to any person who
131.17has attained the age of 15 years and who has successfully completed an approved safety
131.18course and passed the written portion of the examination prescribed by the commissioner.
131.19    (b) This course must consist of, but is not limited to, a basic understanding of:
131.20    (1) motorized bicycles and their limitations;
131.21    (2) motorized bicycle laws and rules;
131.22    (3) safe operating practices and basic operating techniques;
131.23    (4) helmets and protective clothing;
131.24    (5) motorized bicycle traffic strategies; and
131.25    (6) effects of alcohol and drugs on motorized bicycle operators.
131.26    (c) The commissioner may adopt rules prescribing the content of the safety course,
131.27examination, and the information to be contained on the permits. A person operating a
131.28motorized bicycle under a motorized bicycle permit is subject to the restrictions imposed
131.29by section 169.974, subdivision 2, on operation of a motorcycle under a two-wheel
131.30instruction permit.
131.31    (d) The fees for motorized bicycle operator's permits are as follows:

131.32	(1)	Examination and operator's permit, valid for one year	$	6.75
131.33	(2)	Duplicate	$	3.75
132.1 132.2	(3) (1)	Renewal Motorized bicycle operator's permit before age 21 and valid until age 21	$	9.75
132.3	(4) (2)	Renewal permit age 21 or older and valid for four years	$	15.75
132.4	(5) (3)	Duplicate of any renewal permit	$	5.25
132.5	(6) (4)	Written examination and instruction permit, valid for 30 days	$	6.75

132.6    Sec. 20. Minnesota Statutes 2012, section 171.06, subdivision 2, is amended to read:
132.7    Subd. 2. Fees. (a) The fees for a license and Minnesota identification card are
132.8as follows:

132.9	Classified Driver's License		D-$17.25	C-$21.25	B-$28.25	A-$36.25
132.10	Classified Under-21 D.L.		D-$17.25	C-$21.25	B-$28.25	A-$16.25
132.11	Enhanced Driver's License		D-$32.25	C-$36.25	B-$43.25	A-$51.25
132.12	Instruction Permit					$5.25
132.13 132.14	Enhanced Instruction Permit					$20.25
132.15 132.16	Commercial Learner's Permit					$2.50
132.17	Provisional License					$8.25
132.18 132.19	Enhanced Provisional License					$23.25
132.20 132.21 132.22	Duplicate License or duplicate identification card					$6.75
132.23 132.24 132.25 132.26	Enhanced Duplicate License or enhanced duplicate identification card					$21.75
132.27 132.28 132.29 132.30 132.31 132.32 132.33	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
132.34 132.35	Enhanced Minnesota identification card					$26.25

132.36In addition to each fee required in this paragraph, the commissioner shall collect a
132.37surcharge of: (1) $1.75 until June 30, 2012; and (2) $1.00 from July 1, 2012, to June 30,
132.382016. Surcharges collected under this paragraph must be credited to the driver and vehicle
132.39services technology account in the special revenue fund under section 299A.705.
132.40    (b) Notwithstanding paragraph (a), an individual who holds a provisional license and
132.41has a driving record free of (1) convictions for a violation of section 169A.20, 169A.33,
132.42169A.35 , or sections 169A.50 to 169A.53, (2) convictions for crash-related moving
132.43violations, and (3) convictions for moving violations that are not crash related, shall have a
133.1$3.50 credit toward the fee for any classified under-21 driver's license. "Moving violation"
133.2has the meaning given it in section 171.04, subdivision 1.
133.3    (c) In addition to the driver's license fee required under paragraph (a), the
133.4commissioner shall collect an additional $4 processing fee from each new applicant
133.5or individual renewing a license with a school bus endorsement to cover the costs for
133.6processing an applicant's initial and biennial physical examination certificate. The
133.7department shall not charge these applicants any other fee to receive or renew the
133.8endorsement.
133.9(d) In addition to the fee required under paragraph (a), a driver's license agent may
133.10charge and retain a filing fee as provided under section 171.061, subdivision 4.
133.11(e) In addition to the fee required under paragraph (a), the commissioner shall
133.12charge a filing fee at the same amount as a driver's license agent under section 171.061,
133.13subdivision 4. Revenue collected under this paragraph must be deposited in the driver
133.14services operating account.
133.15(f) An application for a Minnesota identification card, instruction permit, provisional
133.16license, or driver's license, including an application for renewal, must contain a provision
133.17that allows the applicant to add to the fee under paragraph (a), a $2 donation for the
133.18purposes of public information and education on anatomical gifts under section 171.075.

133.19    Sec. 21. Minnesota Statutes 2012, section 171.13, subdivision 1, is amended to read:
133.20    Subdivision 1. Examination subjects and locations; provisions for color
133.21blindness, disabled veterans. (a) Except as otherwise provided in this section, the
133.22commissioner shall examine each applicant for a driver's license by such agency as the
133.23commissioner directs. This examination must include:
133.24(1) a test of the applicant's eyesight;
133.25(2) a test of the applicant's ability to read and understand highway signs regulating,
133.26warning, and directing traffic;
133.27(3) a test of the applicant's knowledge of (i) traffic laws; (ii) the effects of alcohol
133.28and drugs on a driver's ability to operate a motor vehicle safely and legally, and of the
133.29legal penalties and financial consequences resulting from violations of laws prohibiting
133.30the operation of a motor vehicle while under the influence of alcohol or drugs; (iii)
133.31railroad grade crossing safety; (iv) slow-moving vehicle safety; (v) laws relating to pupil
133.32transportation safety, including the significance of school bus lights, signals, stop arm, and
133.33passing a school bus; (vi) traffic laws related to bicycles; and (vii) the circumstances and
133.34dangers of carbon monoxide poisoning;
134.1(4) an actual demonstration of ability to exercise ordinary and reasonable control
134.2in the operation of a motor vehicle; and
134.3(5) other physical and mental examinations as the commissioner finds necessary to
134.4determine the applicant's fitness to operate a motor vehicle safely upon the highways.
134.5(b) Notwithstanding paragraph (a), no driver's license may be denied an applicant on
134.6the exclusive grounds that the applicant's eyesight is deficient in color perception. War
134.7veterans operating motor vehicles especially equipped for disabled persons, if otherwise
134.8entitled to a license, must be granted such license.
134.9(c) The commissioner shall make provision for giving the examinations under this
134.10subdivision either in the county where the applicant resides or at a place adjacent thereto
134.11reasonably convenient to the applicant.
134.12(d) The commissioner shall ensure that an applicant is able to obtain an appointment
134.13for an examination to demonstrate ability under paragraph (a), clause (4), within 14 days
134.14of the applicant's request if, under the applicable statutes and rules of the commissioner,
134.15the applicant is eligible to take the examination.
134.16EFFECTIVE DATE.This section is effective May 1, 2015.

134.17    Sec. 22. [171.161] COMMERCIAL DRIVER'S LICENSE; FEDERAL
134.18CONFORMITY.
134.19    Subdivision 1. Conformity with federal law. The commissioner of public safety
134.20shall ensure the programs and policies related to commercial drivers' licensure and the
134.21operation of commercial motor vehicles in Minnesota conform with the requirements of
134.22Code of Federal Regulations, title 49, part 383.
134.23    Subd. 2. Conflicts. To the extent a requirement of sections 171.162 to 171.169, or
134.24any other state or local law, conflicts with a provision of Code of Federal Regulations, title
134.2549, part 383, the federal provision prevails.

134.26    Sec. 23. Minnesota Statutes 2012, section 174.02, is amended by adding a subdivision
134.27to read:
134.28    Subd. 10. Products and services; billing. The commissioner of transportation may
134.29bill operations units of the department for costs of centrally managed products or services
134.30that benefit multiple operations units. These costs may include equipment acquisition and
134.31rental, labor, materials, and other costs determined by the commissioner. Receipts must be
134.32credited to the special products and services account, which is established in the trunk
134.33highway fund, and are appropriated to the commissioner to pay the costs for which the
134.34billings are made.

135.1    Sec. 24. Minnesota Statutes 2013 Supplement, section 174.12, subdivision 2, is
135.2amended to read:
135.3    Subd. 2. Transportation economic development accounts. (a) A transportation
135.4economic development account is established in the special revenue fund under the
135.5budgetary jurisdiction of the legislative committees having jurisdiction over transportation
135.6finance. Money in the account may be expended only as appropriated by law. The account
135.7may not contain money transferred or otherwise provided from the trunk highway fund.
135.8(b) A transportation economic development account is established in the trunk
135.9highway fund. The account consists of funds donated, allotted, transferred, or otherwise
135.10provided to the account. Money in the account may be used only for trunk highway
135.11purposes. All funds in the account available prior to August 1, 2013, are available until
135.12expended.

135.13    Sec. 25. Minnesota Statutes 2013 Supplement, section 174.42, subdivision 2, is
135.14amended to read:
135.15    Subd. 2. Funding requirement. In each federal fiscal year, the commissioner
135.16shall obtain a total amount in federal authorizations for reimbursement on transportation
135.17alternatives projects that is equal to or greater than the annual average of federal
135.18authorizations on transportation alternatives projects calculated over the preceding four
135.19 federal fiscal years 2010 to 2012.
135.20EFFECTIVE DATE.This section is effective the day following final enactment and
135.21applies to authorizations for federal fiscal year 2015 and subsequent federal fiscal years.

135.22    Sec. 26. Minnesota Statutes 2012, section 174.56, subdivision 1, is amended to read:
135.23    Subdivision 1. Report required. (a) The commissioner of transportation shall
135.24submit a report by December 15 of each year on (1) the status of major highway projects
135.25completed during the previous two years or under construction or planned during the year
135.26of the report and for the ensuing 15 years, and (2) trunk highway fund expenditures,
135.27and (3) beginning with the report due in 2016, efficiencies achieved during the previous
135.28two fiscal years.
135.29(b) For purposes of this section, a "major highway project" is a highway project that
135.30has a total cost for all segments that the commissioner estimates at the time of the report
135.31to be at least (1) $15,000,000 in the metropolitan highway construction district, or (2)
135.32$5,000,000 in any nonmetropolitan highway construction district.

135.33    Sec. 27. [219.375] RAILROAD YARD LIGHTING.
136.1    Subdivision 1. Lighting status reports submitted by railroad common carriers.
136.2By January 15 of each year, each Class I and Class II railroad common carrier that
136.3operates one or more railroad yards in this state, where, between sunset and sunrise, cars or
136.4locomotives are frequently switched, repaired, or inspected, or where trains are assembled
136.5and disassembled, shall submit to the commissioner of transportation a plan that:
136.6(1) identifies all railroad yards operated by the railroad where the described work
136.7is frequently accomplished between sunset and sunrise;
136.8(2) describes the nature and placement of lighting equipment currently in use in the
136.9yard and the maintenance status and practices regarding this equipment;
136.10(3) states whether the lighting meets or exceeds guidelines for illumination
136.11established by the American Railway Engineering and Maintenance-of-Way Association;
136.12(4) describes whether existing lighting is installed and operated in a manner
136.13consistent with energy conservation, glare reduction, minimization of light pollution, and
136.14preservation of the natural night environment; and
136.15(5) identifies plans and timelines to bring into compliance railroad yards that do not
136.16utilize and maintain lighting equipment that meets or exceeds the standards and guidelines
136.17under clauses (3) and (4), or states any reason why the standards and guidelines should
136.18not apply.
136.19    Subd. 2. Maintenance of lighting equipment. A railroad common carrier
136.20that is required to file a report under subdivision 1 shall maintain all railroad yard
136.21lighting equipment in good working order and shall repair or replace any malfunctioning
136.22equipment within 48 hours after the malfunction has been reported to the carrier. Repairs
136.23must be made in compliance with, or to exceed the standards in, the Minnesota Electrical
136.24Code and chapter 326B.
136.25    Subd. 3. Lighting status reports submitted by worker representative. By
136.26January 15 of each year, the union representative of the workers at each railroad yard
136.27required to submit a report under subdivision 1 shall submit to the commissioner of
136.28transportation a report that:
136.29(1) describes the nature and placement of lighting equipment currently in use in the
136.30yard and maintenance status and practices regarding the equipment;
136.31(2) describes the level of maintenance of lighting equipment and the carrier's
136.32promptness in responding to reports of lighting malfunction;
136.33(3) states whether the available lighting is adequate to provide safe working
136.34conditions for crews working at night; and
136.35(4) describes changes in the lighting equipment and its adequacy that have occurred
136.36since the last previous worker representative report.
137.1    Subd. 4. Commissioner response. The commissioner shall review the reports
137.2submitted under subdivisions 1 and 3. The commissioner shall investigate any
137.3discrepancies between lighting status reports submitted under subdivisions 1 and 3,
137.4and shall report findings to the affected yard's owner and worker representative. The
137.5commissioner shall annually advise the chairs and ranking minority members of the house
137.6of representatives and senate committees and divisions with jurisdiction over transportation
137.7budget and policy as to the content of the reports submitted, discrepancies investigated,
137.8the progress achieved by the railroad common carriers towards achieving the standards
137.9and guidelines under clauses (3) and (4), and any recommendations for legislation to
137.10achieve compliance with the standards and guidelines within a reasonable period of time.
137.11    Subd. 5. Required lighting. By December 31, 2015, a railroad common carrier
137.12shall establish lighting that meets the standards and guidelines under subdivision 1, clauses
137.13(3) and (4), at each railroad yard where:
137.14(1) between sunset and sunrise:
137.15(i) locomotives, or railcars carrying placarded hazardous materials, are frequently
137.16switched, repaired, or inspected; or
137.17(ii) trains with more than 25 tanker railcars carrying placarded hazardous materials
137.18are assembled and disassembled; and
137.19(2) the yard is located within two miles of a petroleum refinery having a crude oil
137.20production capacity of 150,000 or more barrels per day.

137.21    Sec. 28. Minnesota Statutes 2012, section 222.50, subdivision 7, is amended to read:
137.22    Subd. 7. Expenditures. (a) The commissioner may expend money from the rail
137.23service improvement account for the following purposes:
137.24    (1) to make transfers as provided under section 222.57 or to pay interest adjustments
137.25on loans guaranteed under the state rail user and rail carrier loan guarantee program;
137.26    (2) to pay a portion of the costs of capital improvement projects designed to improve
137.27rail service of a rail user or a rail carrier;
137.28    (3) to pay a portion of the costs of rehabilitation projects designed to improve rail
137.29service of a rail user or a rail carrier;
137.30    (4) to acquire, maintain, manage, and dispose of railroad right-of-way pursuant to
137.31the state rail bank program;
137.32    (5) to provide for aerial photography survey of proposed and abandoned railroad
137.33tracks for the purpose of recording and reestablishing by analytical triangulation the
137.34existing alignment of the inplace track;
138.1    (6) to pay a portion of the costs of acquiring a rail line by a regional railroad
138.2authority established pursuant to chapter 398A;
138.3    (7) to pay the state matching portion of federal grants for rail-highway grade
138.4crossing improvement projects; and
138.5    (8) for expenditures made before July 1, 2017, to pay the state matching portion
138.6of grants under the federal Transportation Investment Generating Economic Recovery
138.7(TIGER) program of the United States Department of Transportation; and
138.8    (9) to fund rail planning studies.
138.9    (b) All money derived by the commissioner from the disposition of railroad
138.10right-of-way or of any other property acquired pursuant to sections 222.46 to 222.62 shall
138.11be deposited in the rail service improvement account.

138.12    Sec. 29. Minnesota Statutes 2013 Supplement, section 297A.815, subdivision 3,
138.13is amended to read:
138.14    Subd. 3. Motor vehicle lease sales tax revenue. (a) For purposes of this
138.15subdivision, "net revenue" means an amount equal to:
138.16    (1) the revenues, including interest and penalties, collected under this section, during
138.17the fiscal year; less
138.18    (2) in fiscal year 2011, $30,100,000; in fiscal year 2012, $31,100,000; and in fiscal
138.19year 2013 and following fiscal years, $32,000,000 in each fiscal year.
138.20    (b) On or before June 30 of each fiscal year, the commissioner of revenue shall
138.21estimate the amount of the revenues and subtraction under paragraph (a) net revenue
138.22for the current fiscal year.
138.23    (c) On or after July 1 of the subsequent fiscal year, the commissioner of management
138.24and budget shall transfer the net revenue as estimated in paragraph (b) from the general
138.25fund, as follows:
138.26    (1) $9,000,000 annually until January 1, 2016 2015, and 50 percent annually
138.27thereafter to the county state-aid highway fund. Notwithstanding any other law to the
138.28contrary, the commissioner of transportation shall allocate the funds transferred under this
138.29clause to the counties in the metropolitan area, as defined in section 473.121, subdivision
138.304, excluding the counties of Hennepin and Ramsey, so that each county shall receive
138.31of such amount the percentage that its population, as defined in section 477A.011,
138.32subdivision 3, estimated or established by July 15 of the year prior to the current calendar
138.33year, bears to the total population of the counties receiving funds under this clause; and
138.34    (2) the remainder to the greater Minnesota transit account.

139.1    Sec. 30. [299A.017] STATE SAFETY OVERSIGHT.
139.2    Subdivision 1. Office created. The commissioner of public safety shall establish an
139.3Office of State Safety Oversight in the Department of Public Safety for safety oversight of
139.4rail fixed guideway public transportation systems within the state. The commissioner shall
139.5designate a director of the office.
139.6    Subd. 2. Authority. The director shall implement and has regulatory authority to
139.7enforce the requirements for the state set forth in United States Code, title 49, sections
139.85329 and 5330, federal regulations adopted pursuant to those sections, and successor or
139.9supplemental requirements.

139.10    Sec. 31. [473.4056] LIGHT RAIL TRANSIT VEHICLE DESIGN.
139.11    Subdivision 1. Adoption of standards. (a) By January 1, 2015, the Metropolitan
139.12Council shall adopt and may thereafter amend standards for the design of light rail
139.13vehicles that are reasonably necessary to provide access for, and to protect the health and
139.14safety of, persons who use the service. All light rail transit vehicles procured on and after
139.15January 1, 2015, must conform to the standards then in effect.
139.16(b) The Transportation Accessibility Advisory Committee must review the standards
139.17and all subsequent amendments before the Metropolitan Council adopts them.
139.18(c) The Metropolitan Council shall post adopted standards, including amendments,
139.19on its Web site.
139.20    Subd. 2. Minimum standards. Standards adopted under this section must include,
139.21but are not limited to:
139.22(1) two dedicated spaces for wheelchair users in each car;
139.23(2) seating for a companion adjacent to at least two wheelchair-dedicated spaces; and
139.24(3) further specifications that meet or exceed the standards established in the
139.25Americans with Disabilities Act.

139.26    Sec. 32. [473.41] TRANSIT SHELTERS AND STOPS.
139.27    Subdivision 1. Definitions. (a) For purposes of this section, the following terms
139.28have the meanings given.
139.29(b) "Transit authority" means:
139.30(1) a statutory or home rule charter city, with respect to rights-of-way at bus stop and
139.31train stop locations, transit shelters, and transit passenger seating facilities owned by the
139.32city or established pursuant to a vendor contract with the city;
140.1(2) the Metropolitan Council, with respect to transit shelters and transit passenger
140.2seating facilities owned by the council or established pursuant to a vendor contract with
140.3the council; or
140.4(3) a replacement service provider under section 473.388, with respect to
140.5rights-of-way at bus stop and train stop locations, transit shelters, and transit passenger
140.6seating facilities owned by the provider or established pursuant to a vendor contract
140.7with the provider.
140.8(c) "Transit shelter" means a wholly or partially enclosed structure provided for
140.9public use as a waiting area in conjunction with light rail transit, bus rapid transit, or
140.10regular route transit.
140.11    Subd. 2. Design. (a) A transit authority shall establish design specifications for
140.12establishment and replacement of its transit shelters, which must include:
140.13(1) engineering standards, as appropriate;
140.14(2) maximization of protection from the wind, snow, and other elements;
140.15(3) to the extent feasible, inclusion of warming capability at each shelter in which
140.16there is a proportionally high number of transit service passenger boardings; and
140.17(4) full accessibility for the elderly and persons with disabilities.
140.18(b) The council shall consult with the Transportation Accessibility Advisory
140.19Committee.
140.20    Subd. 3. Maintenance. A transit authority shall ensure transit shelters are
140.21maintained in good working order and are accessible to all users of the transit system.
140.22This requirement includes but is not limited to:
140.23(1) keeping transit shelters reasonably clean and free from graffiti; and
140.24(2) removing snow and ice in a manner that provides accessibility for the elderly
140.25and persons with disabilities to be able to enter and exit transit shelters, and board and
140.26exit trains at each stop.
140.27EFFECTIVE DATE.This section is effective the day following final enactment.

140.28    Sec. 33. TRANSPORTATION EFFICIENCIES.
140.29The commissioner of transportation shall include in the report under Minnesota
140.30Statutes, section 174.56, due by December 15, 2015, information on efficiencies
140.31implemented in fiscal year 2015 in planning and project management and delivery,
140.32along with an explanation of the efficiencies employed to achieve the savings and the
140.33methodology used in the calculations. The level of savings achieved must equal, in
140.34comparison with the total state road construction budget for that year, a minimum of five
141.1percent in fiscal year 2015. The report must identify the projects that have been advanced
141.2or completed due to the implementation of efficiency measures.

141.3    Sec. 34. WATERCRAFT DECONTAMINATION SITES; REST AREAS.
141.4Where feasible with existing resources, the commissioners of natural resources
141.5and transportation shall cooperate in an effort to use rest areas as sites for watercraft
141.6decontamination and other activities to prevent the spread of aquatic invasive species.
141.7EFFECTIVE DATE.This section is effective the day following final enactment.

141.8    Sec. 35. HIGHWAY 14 TURNBACK.
141.9(a) Notwithstanding Minnesota Statutes, sections 161.081, subdivision 3, and
141.10161.16, or any other law to the contrary, the commissioner of transportation may:
141.11(1) by temporary order, take over the road described as "Old Highway 14" in the
141.12settlement agreement and release executed January 7, 2014, between the state and Waseca
141.13and Steele Counties; and
141.14(2) upon completion of the work described in the settlement agreement, release "Old
141.15Highway 14" back to Steele and Waseca Counties.
141.16(b) Upon completion of the work described in the settlement agreement between the
141.17state and Waseca and Steele Counties, the counties shall accept responsibility for the road
141.18described in the agreement as "Old Highway 14."

141.19    Sec. 36. EVALUATION OF CERTAIN TRUNK HIGHWAY SPEED LIMITS.
141.20    Subdivision 1. Engineering and traffic investigations. The commissioner of
141.21transportation shall perform engineering and traffic investigations on trunk highway
141.22segments that are two-lane, two-way roadways with a posted speed limit of 55 miles per
141.23hour. On determining upon the basis of the investigation that the 55 miles per hour speed
141.24limit can be reasonably and safely increased under the conditions found to exist on any
141.25of the trunk highway segments examined, the commissioner may designate an increased
141.26limit applicable to those segments and erect appropriate signs designating the speed limit.
141.27The new speed limit shall be effective when the signs are erected. Of all the roadways
141.28to be studied under this section, approximately one-fifth must be subject to investigation
141.29each year until the statewide study is complete in 2019.
141.30    Subd. 2. Report. By January 15 annually, the commissioner shall provide to
141.31the chairs and ranking minority members of the senate and house of representatives
141.32committees with jurisdiction over transportation policy and finance a list of trunk
142.1highways or segments of trunk highways that were subject to an engineering and safety
142.2investigation in the previous calendar year, specifying in each case the applicable speed
142.3limits before and after the investigation.
142.4EFFECTIVE DATE.This section is effective the day following final enactment
142.5and expires on the earlier of January 15, 2019, or the date the final report is submitted to
142.6the legislative committees under this section.

142.7    Sec. 37. TASK FORCE ON MOTOR VEHICLE INSURANCE COVERAGE
142.8VERIFICATION.
142.9    Subdivision 1. Establishment. The task force on motor vehicle insurance coverage
142.10verification is established to review and evaluate approaches to insurance coverage
142.11verification and recommend legislation to create and fund a program in this state.
142.12    Subd. 2. Membership; meetings; staff. (a) The task force shall be composed of
142.1313 members, who must be appointed by July 1, 2014, and who serve at the pleasure of
142.14their appointing authorities:
142.15(1) the commissioner of public safety or a designee;
142.16(2) the commissioner of commerce or a designee;
142.17(3) two members of the house of representatives, one appointed by the speaker of the
142.18house and one appointed by the minority leader;
142.19(4) two members of the senate, one appointed by the Subcommittee on Committees
142.20of the Committee on Rules and Administration and one appointed by the minority leader;
142.21(5) a representative of Minnesota Deputy Registrars Association;
142.22(6) a representative of AAA Minnesota;
142.23(7) a representative of AARP Minnesota;
142.24(8) a representative of the Insurance Federation of Minnesota;
142.25(9) a representative of the Minnesota Bankers Association;
142.26(10) a representative of the Minnesota Bar Association; and
142.27(11) a representative of the Minnesota Police and Peace Officers Association.
142.28(b) Compensation and expense reimbursement must be as provided under Minnesota
142.29Statutes, section 15.059, subdivision 3, to members of the task force.
142.30(c) The commissioner of public safety shall convene the task force by August
142.311, 2014, and shall appoint a chair from the membership of the task force. Staffing and
142.32technical assistance must be provided by the Department of Public Safety.
143.1    Subd. 3. Duties. The task force shall review and evaluate programs established in
143.2other states as well as programs proposed by third parties, identify one or more programs
143.3recommended for implementation in this state, and, as to the recommended programs,
143.4adopt findings concerning:
143.5(1) comparative costs of programs;
143.6(2) implementation considerations, and in particular, identifying the appropriate
143.7supervising agency and assessing compatibility with existing and planned computer
143.8systems;
143.9(3) effectiveness in verifying existence of motor vehicle insurance coverage;
143.10(4) identification of categories of authorized users;
143.11(5) simplicity of access and use for authorized users;
143.12(6) data privacy considerations;
143.13(7) data retention policies; and
143.14(8) statutory changes necessary for implementation.
143.15    Subd. 4. Report. By February 1, 2015, the task force must submit to the
143.16chairs and ranking minority members of the house of representatives and senate
143.17committees and divisions with primary jurisdiction over commerce and transportation its
143.18written recommendations, including any draft legislation necessary to implement the
143.19recommendations.
143.20    Subd. 5. Sunset. The task force shall sunset the day after submitting the report
143.21under subdivision 4, or February 2, 2015, whichever is earlier.
143.22EFFECTIVE DATE.This section is effective the day following final enactment.

143.23    Sec. 38. COMMUNITY DESTINATION SIGN PILOT PROGRAM.
143.24    Subdivision 1. Definition. (a) For purposes of this section, the following terms
143.25have the meanings given.
143.26(b) "City" means the city of Two Harbors.
143.27(c) "General retail services" means a business that sells goods or services (1) at
143.28retail and directly to an end-use consumer, and (2) that are of interest to tourists or the
143.29traveling public.
143.30    Subd. 2. Pilot program established. (a) In consultation with the city of Two
143.31Harbors, the commissioner of transportation shall establish a community destination sign
143.32pilot program for wayfinding within the city to destinations or attractions of interest to
143.33the traveling public.
144.1(b) For purposes of Minnesota Statutes, chapter 173, signs under the pilot program
144.2are official signs.
144.3    Subd. 3. Signage, design. (a) The pilot program must include as eligible attractions
144.4and destinations:
144.5(1) minor traffic generators; and
144.6(2) general retail services, specified by business name, that are identified in a
144.7community wayfinding program established by the city.
144.8(b) The commissioner of transportation, in coordination with the city, may establish
144.9sign design specifications for signs under the pilot program. Design specifications must
144.10allow for placement of:
144.11(1) a city name and city logo or symbol; and
144.12(2) up to five attractions or destinations on a community destination sign assembly.
144.13    Subd. 4. Program costs. The city shall pay costs of design, construction,
144.14erection, and maintenance of the signs and sign assemblies under the pilot program. The
144.15commissioner shall not impose fees for the pilot program.
144.16    Subd. 5. Pilot program evaluation. In coordination with the city, the commissioner
144.17of transportation shall evaluate effectiveness of the pilot program under this section,
144.18which must include analysis of traffic safety impacts, utility to motorists and tourists,
144.19costs and expenditures, extent of community support, and pilot program termination
144.20or continuation. By January 15, 2021, the commissioner shall submit a report on the
144.21evaluation to the chairs and ranking minority members of the legislative committees with
144.22jurisdiction over transportation policy and finance.
144.23    Subd. 6. Expiration. The pilot program under this section expires January 1, 2022.
144.24EFFECTIVE DATE.This section is effective the day after the governing body of
144.25the city of Two Harbors and its chief clerical officer timely complete their compliance
144.26with Minnesota Statutes, section 645.021, subdivisions 2 and 3.

144.27    Sec. 39. TRANSIT SERVICE ON ELECTION DAY.
144.28    Subdivision 1. Operating assistance recipients. An eligible recipient of operating
144.29assistance under Minnesota Statutes, section 174.24, who contracts or has contracted to
144.30provide fixed route public transit shall provide fixed route public transit service free of
144.31charge on a day a state general election is held.
145.1    Subd. 2. Metropolitan Council. (a) The Metropolitan Council shall provide
145.2regular route transit, as defined under Minnesota Statutes, section 473.385, subdivision 1,
145.3paragraph (b), free of charge on a day a state general election is held.
145.4(b) The requirements under this subdivision apply to operators of regular route
145.5transit (1) receiving financial assistance under Minnesota Statutes, section 473.388, or (2)
145.6operating under Minnesota Statutes, section 473.405, subdivision 12.
145.7EFFECTIVE DATE.This section is effective July 1, 2014, and expires November
145.85, 2014.

145.9ARTICLE 12

145.10AGRICULTURE, ENVIRONMENT, AND NATURAL RESOURCES
145.11APPROPRIATIONS

145.12

Section 1. SUMMARY OF APPROPRIATIONS.

145.13The amounts shown in this section summarize direct appropriations, by fund, made
145.14in this article.

145.15			2014		2015		Total
145.16	General	$	-0-	$	10,756,000	$	10,756,000
145.17	Remediation		-0-		650,000		650,000
145.18	Natural Resources		-0-		900,000		900,000
145.19	Game and Fish		-0-		2,412,000		2,412,000
145.20 145.21	Environment and Natural Resources Trust		-0-		490,000		490,000
145.22	Parks and Trails		530,000		-0-		530,000
145.23	Environmental		-0-		4,000,000		4,000,000
145.24	Total	$	530,000	$	19,208,000	$	19,738,000

145.25

Sec. 2. APPROPRIATIONS.

145.26The sums shown in the columns marked "Appropriations" are added to the
145.27appropriations in Laws 2013, chapter 114, or appropriated to the agencies and for the
145.28purposes specified in this article. The appropriations are from the general fund, or another
145.29named fund, and are available for the fiscal year indicated for each purpose. The figures
145.30"2014" and "2015" used in this article means that the addition to the appropriations
145.31listed under them are available for the fiscal year ending June 30, 2014, or June 30,
145.322015, respectively. Appropriations for fiscal year 2014 are effective the day following
145.33final enactment.

145.34				APPROPRIATIONS
145.35				Available for the Year
146.1				Ending June 30
146.2					2014		2015

146.3

Sec. 3. AGRICULTURE.

$

-0-

$

2,750,000

146.4$2,000,000 in 2015 is for a grant to Second
146.5Harvest Heartland on behalf of the six
146.6Feeding America food banks that serve
146.7Minnesota to compensate agricultural
146.8producers and processors for costs incurred
146.9to harvest and package for transfer surplus
146.10fruits, vegetables, or other agricultural
146.11commodities that would otherwise go
146.12unharvested or be discarded. Surplus
146.13commodities must be distributed statewide
146.14to food shelves and other charitable
146.15organizations that are eligible to receive
146.16food from the food banks. Surplus food
146.17acquired under this appropriation must be
146.18from Minnesota producers and processors.
146.19Second Harvest Heartland must report when
146.20required by, and in the form prescribed by,
146.21the commissioner. For fiscal year 2015,
146.22Second Harvest Heartland may use up
146.23to 11 percent of any grant received for
146.24administrative expenses. For fiscal years
146.252016 and 2017, Second Harvest Heartland
146.26may use up to five percent of any grant
146.27received for administrative expenses. This
146.28is a onetime appropriation and is available
146.29until June 30, 2017.
146.30The commissioner shall examine how other
146.31states are implementing the industrial hemp
146.32research authority provided in Public Law
146.33113-79 and gauge the interest of Minnesota
146.34higher education institutions. No later
146.35than January 15, 2015, the commissioner
147.1must report the information and items for
147.2legislative consideration to the legislative
147.3committees with jurisdiction over agriculture
147.4policy and finance.
147.5$350,000 in 2015 is for an increase in retail
147.6food handler inspections.
147.7$200,000 in 2015 is added to the
147.8appropriation in Laws 2013, chapter 114,
147.9article 1, section 3, subdivision 4, for
147.10distribution to the state's county fairs. This is
147.11a onetime appropriation.
147.12$200,000 in 2015 is for a grant as determined
147.13by the commissioner to a public higher
147.14education institution to research porcine
147.15epidemic diarrhea virus. This is a onetime
147.16appropriation and is available until June 30,
147.172017.

147.18

Sec. 4. BOARD OF ANIMAL HEALTH

$

310,000

147.19$310,000 in 2015 is to administer the dog and
147.20cat breeder licensing and inspection program.
147.21The base in fiscal year 2016 is $426,000 and
147.22the base in fiscal year 2017 is $435,000.

147.23

Sec. 5. POLLUTION CONTROL AGENCY

$

-0-

$

4,650,000

147.24	Appropriations by Fund
147.25	Remediation	-0-	650,000
147.26	Environmental	-0-	4,000,000

147.27$650,000 in 2015 from the remediation
147.28fund for additional staff and administrative
147.29expenses to manage and oversee investigation
147.30and mitigation efforts at superfund sites.
147.31This is a onetime appropriation.
147.32The agency shall compile information on the
147.33presence of plastic microbeads in the state's
148.1waters and their potential impacts on aquatic
148.2ecosystems and human health, in consultation
148.3with the University of Minnesota. No later
148.4than December 15, 2014, the commissioner
148.5must present the information to the
148.6legislative committees with jurisdiction over
148.7environment and natural resources policy
148.8and finance and make recommendations.
148.9$4,000,000 in 2015 is from the environmental
148.10fund for the purposes of Minnesota Statutes,
148.11section 115A.557, subdivision 2. $3,000,000
148.12per year from the environmental fund is
148.13added to the base.

148.14

Sec. 6. NATURAL RESOURCES

148.15

Subdivision 1.Total Appropriation

$

530,000

$

5,862,000

148.16	Appropriations by Fund
148.17	General	-0-	3,000,000
148.18	Game and Fish	-0-	2,412,000
148.19	Natural Resources	-0-	450,000
148.20	Parks and Trails	530,000	-0-

148.21The amounts that may be spent for each
148.22purpose are specified in the following
148.23subdivisions.

148.24

Subd. 2.Lands and Minerals

-0-

1,000,000

148.25$1,000,000 in 2015 is for meeting the state's
148.26fiduciary duty to Minnesota children with
148.27regard to school trust land. By January 15,
148.282015, the commissioner, in consultation
148.29with the commissioner of education, shall
148.30submit a report to the chairs and ranking
148.31minority members of the senate and house of
148.32representatives committees with jurisdiction
148.33over natural resources and education
148.34policy and finance on the intended use of
149.1these funds. The legislature must approve
149.2expenditures of these funds by law. This is a
149.3onetime appropriation and is available until
149.4June 30, 2017.

149.5

Subd. 3.Ecological and Water Resources

-0-

50,000

149.6$50,000 in 2015 is for a study of the effects
149.7of the Lake Emily dam in Crow Wing County
149.8on water clarity and water levels in Lake
149.9Emily, Lake Mary, and the Little Pine River.
149.10This is a onetime appropriation.

149.11 149.12

Subd. 4.Parks and Trails Management

530,000

2,400,000

149.13	Appropriations by Fund
149.14	General	-0-	1,950,000
149.15	Natural Resources	-0-	450,000
149.16	Parks and Trails	530,000	-0-

149.17$1,600,000 in 2015 is for the improvement,
149.18maintenance, and conditions of facilities and
149.19infrastructure in state parks for safety and
149.20general use. This is a onetime appropriation.
149.21$450,000 in 2015 is from the natural
149.22resources fund for state trail, park, and
149.23recreation area operations. This appropriation
149.24is from the revenue deposited in the natural
149.25resources fund under Minnesota Statutes,
149.26section 297A.94, paragraph (e), clause (2).
149.27This is a onetime appropriation.
149.28$200,000 in 2014 is from the parks and trails
149.29fund for the Greater Minnesota Regional
149.30Parks and Trails Commission to develop a
149.31statewide system plan for regional parks and
149.32trails outside the seven-county metropolitan
149.33area. This is a onetime appropriation and is
149.34subject to the availability of appropriations
150.1in Laws 2013, chapter 137, article 3, section
150.22, subdivision 2.
150.3$330,000 in 2014 is from the parks and
150.4trails fund for a grant to St. Louis and
150.5Lake Counties Regional Railroad Authority
150.6for planning, engineering, right-of-way
150.7acquisition, or construction of portions
150.8of the Mesabi Trail in the corridor from
150.9Giants Ridge to Tower. This is a onetime
150.10appropriation and is subject to the availability
150.11of appropriations in Laws 2013, chapter 137,
150.12article 3, section 2, subdivision 2.
150.13$350,000 in 2015 is for the development of
150.14the segment of the Willard Munger Trail
150.15system that originates in Chisago County and
150.16extends into Hinckley in Pine County, to be
150.17named the James L. Oberstar Trail. This is a
150.18onetime appropriation and is available until
150.19spent.

150.20 150.21

Subd. 5.Fish and Wildlife Management

-0-

2,412,000

150.22$3,000 in 2015 is from the heritage
150.23enhancement account in the game and fish
150.24fund for a report on aquatic plant management
150.25permitting policies for the management
150.26of narrow-leaved and hybrid cattail in a
150.27range of basin types across the state. The
150.28report shall be submitted to the chairs and
150.29ranking minority members of the house of
150.30representatives and senate committees with
150.31jurisdiction over environment and natural
150.32resources by December 15, 2014, and include
150.33recommendations for any necessary changes
150.34in statutes, rules, or permitting procedures.
150.35This is a onetime appropriation.
151.1$9,000 in 2015 is from the game and fish
151.2fund for the commissioner, in consultation
151.3with interested parties, agencies, and other
151.4states, to develop a detailed restoration plan
151.5to recover the historical native population of
151.6bobwhite quail in Minnesota for its ecological
151.7and recreational benefits to the citizens of the
151.8state. The commissioner shall conduct public
151.9meetings in developing the plan. No later
151.10than January 15, 2015, the commissioner
151.11must report on the plan's progress to the
151.12legislative committees with jurisdiction over
151.13environment and natural resources policy
151.14and finance. This is a onetime appropriation.
151.15$2,000,000 in 2015 is from the game and fish
151.16fund for shooting sports facility grants under
151.17Minnesota Statutes, section 87A.10. This is
151.18a onetime appropriation and is available until
151.19June 30, 2017.
151.20$400,000 in 2015 is from the heritage
151.21enhancement account in the game and fish
151.22fund for grants to local chapters of Let's Go
151.23Fishing of Minnesota to provide community
151.24outreach to senior citizens, youth, and
151.25veterans and for the costs associated with
151.26establishing and recruiting new chapters.
151.27The grants must be matched with cash or
151.28in-kind contributions from nonstate sources.
151.29Of this amount, $25,000 is for Asian Outdoor
151.30Heritage for youth fishing recruitment
151.31efforts and outreach in the metropolitan area.
151.32The commissioner shall establish a grant
151.33application process that includes a standard
151.34for ownership of equipment purchased
151.35under the grant program and contract
151.36requirements that cover the disposition
152.1of purchased equipment if the grantee no
152.2longer exists. Any equipment purchased
152.3with state grant money must be specified
152.4on the grant application and approved by
152.5the commissioner. The commissioner may
152.6spend up to three percent of the appropriation
152.7to administer the grant. This is a onetime
152.8appropriation and is available until June 30,
152.92016.

152.10

Subd. 6.Parks and trails fund cancellation

152.11The appropriation for $530,000 from the
152.12parks and trails fund for trail improvements
152.13on the Duluth Cross City West Trail and the
152.14Superior Hiking Trail in St. Louis County in
152.15Laws 2013, chapter 137, article 3, section 3,
152.16paragraph (c), clause (12), is canceled.

152.17

Sec. 7. METROPOLITAN COUNCIL

$

-0-

$

525,000

152.18$450,000 in 2015 is from the natural
152.19resources fund for metropolitan area regional
152.20parks and trails maintenance and operations.
152.21This appropriation is from the revenue
152.22deposited in the natural resources fund
152.23under Minnesota Statutes, section 297A.94,
152.24paragraph (e), clause (3). This is a onetime
152.25appropriation.
152.26$75,000 in 2015 is for a grant to the city of
152.27Shoreview for a feasibility study regarding
152.28the lowering of the water level of Turtle Lake
152.29and the possible effects of an augmentation
152.30of the lake. This is a onetime appropriation.

152.31

Sec. 8. UNIVERSITY OF MINNESOTA

$

-0-

$

4,890,000

153.1	Appropriations by Fund
153.2	General		4,400,000
153.3 153.4 153.5	Environment and Natural Resources Trust		490,000

153.6$3,400,000 in 2015 is from the general fund
153.7for the Invasive Terrestrial Plants and Pests
153.8Center requested under this act, including a
153.9director, graduate students, and necessary
153.10supplies. This is a onetime appropriation and
153.11is available until June 30, 2022.
153.12$490,000 in 2015 is from the environment
153.13and natural resources trust fund for the
153.14Invasive Terrestrial Plants and Pests Center
153.15requested under this act, including a director,
153.16graduate students, and necessary supplies.
153.17This is a onetime appropriation and is
153.18available until June 30, 2022.
153.19$970,000 from the environment and natural
153.20resources trust fund appropriated in Laws
153.212011, First Special Session chapter 2, article
153.223, section 2, subdivision 9, paragraph (d),
153.23Reinvest in Minnesota Wetlands Reserve
153.24Acquisition and Restoration Program
153.25Partnership, is transferred to the Board of
153.26Regents of the University of Minnesota for
153.27the Invasive Terrestrial Plants and Pests
153.28Center requested under this act, including a
153.29director, graduate students, and necessary
153.30supplies and is available until June 30, 2022.
153.31$1,000,000 in 2015 is for the Forever Green
153.32Agricultural Initiative and to protect the
153.33state's natural resources while increasing
153.34efficiency, profitability, and productivity
153.35of Minnesota farmers by incorporating
153.36perennial and winter annual crops into
154.1existing agricultural practices. By January
154.215, 2015, as a condition of this appropriation,
154.3the Board of Regents of the University
154.4of Minnesota shall submit a report to the
154.5chairs and ranking minority members of the
154.6house of representatives and senate policy
154.7and finance committees with jurisdiction
154.8over environment and natural resources and
154.9agriculture on the activities and outcomes
154.10of the Forever Green Agricultural Initiative.
154.11This is a onetime appropriation and is
154.12available until June 30, 2017.

154.13

Sec. 9. ADMINISTRATION

$

-0-

$

185,000

154.14$185,000 in 2015 is for activities and the
154.15administrative expenses of the school trust
154.16lands director and additional staff, under
154.17Minnesota Statutes, section 127A.353.

154.18 154.19

Sec. 10. LEGISLATIVE COORDINATING COMMISSION

$

-0-

$

15,000

154.20$15,000 in 2015 is for the administrative
154.21expenses of the Permanent School Fund
154.22Commission under Minnesota Statutes,
154.23section 127A.30, and for compensation
154.24and expense reimbursement of commission
154.25members.

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

154.27

Subd. 6.Remediation Fund

154.28The commissioner shall transfer up
154.29to $46,000,000 $47,150,000 from the
154.30environmental fund to the remediation fund
154.31for the purposes of the remediation fund
154.32under Minnesota Statutes, section 116.155,
154.33subdivision 2 .

155.1    Sec. 12. Laws 2013, chapter 114, article 3, section 4, subdivision 3, is amended to read:

155.2 155.3

Subd. 3.Ecological and Water Resources

27,182,000

31,582,000 31,603,000

155.4	Appropriations by Fund
155.5 155.6	General	12,117,000	16,817,000 16,838,000
155.7	Natural Resources	11,002,000	10,702,000
155.8	Game and Fish	4,063,000	4,063,000

155.9$3,542,000 the first year and $3,242,000 the
155.10second year are from the invasive species
155.11account in the natural resources fund and
155.12$2,906,000 the first year and $3,206,000 the
155.13second year are from the general fund for
155.14management, public awareness, assessment
155.15and monitoring research, and water access
155.16inspection to prevent the spread of invasive
155.17species; management of invasive plants in
155.18public waters; and management of terrestrial
155.19invasive species on state-administered lands.
155.20$5,000,000 the first year and $5,000,000 the
155.21second year are from the water management
155.22account in the natural resources fund for only
155.23the purposes specified in Minnesota Statutes,
155.24section 103G.27, subdivision 2.
155.25$103,000 the first year and $103,000
155.26 $124,000 the second year are for a grant to
155.27the Mississippi Headwaters Board for up to
155.2850 percent of the cost of implementing the
155.29comprehensive plan for the upper Mississippi
155.30within areas under the board's jurisdiction.
155.31 The base for this grant in fiscal year 2016
155.32and later is $103,000. By January 15, 2015,
155.33the board shall submit a report detailing the
155.34results achieved with the fiscal year 2014
155.35appropriation and the anticipated results
155.36that will be achieved with the fiscal year
156.12015 appropriation to the commissioner and
156.2the chairs and ranking minority members
156.3of the senate and house of representatives
156.4committees and divisions with jurisdiction
156.5over environment and natural resources
156.6policy and finance.
156.7$10,000 the first year and $10,000 the second
156.8year are for payment to the Leech Lake Band
156.9of Chippewa Indians to implement the band's
156.10portion of the comprehensive plan for the
156.11upper Mississippi.
156.12$264,000 the first year and $264,000 the
156.13second year are for grants for up to 50
156.14percent of the cost of implementation of
156.15the Red River mediation agreement. The
156.16commissioner shall submit a report to the
156.17chairs of the legislative committees having
156.18primary jurisdiction over environment and
156.19natural resources policy and finance on the
156.20accomplishments achieved with the grants
156.21by January 15, 2015.
156.22$1,643,000 the first year and $1,643,000
156.23the second year are from the heritage
156.24enhancement account in the game and
156.25fish fund for only the purposes specified
156.26in Minnesota Statutes, section 297A.94,
156.27paragraph (e), clause (1).
156.28$1,223,000 the first year and $1,223,000 the
156.29second year are from the nongame wildlife
156.30management account in the natural resources
156.31fund for the purpose of nongame wildlife
156.32management. Notwithstanding Minnesota
156.33Statutes, section 290.431, $100,000 the first
156.34year and $100,000 the second year may
157.1be used for nongame wildlife information,
157.2education, and promotion.
157.3$1,600,000 the first year and $6,000,000 the
157.4second year are from the general fund for the
157.5following activities:
157.6(1) increased financial reimbursement
157.7and technical support to soil and water
157.8conservation districts or other local units
157.9of government for groundwater level
157.10monitoring;
157.11(2) additional surface water monitoring and
157.12analysis, including installation of monitoring
157.13gauges;
157.14(3) additional groundwater analysis to
157.15assist with water appropriation permitting
157.16decisions;
157.17(4) additional permit application review
157.18incorporating surface water and groundwater
157.19technical analysis;
157.20(5) enhancement of precipitation data and
157.21analysis to improve the use of irrigation;
157.22(6) enhanced information technology,
157.23including electronic permitting and
157.24integrated data systems; and
157.25(7) increased compliance and monitoring.
157.26Of this amount, $600,000 the first year is for
157.27silica sand rulemaking and is available until
157.28spent.
157.29The commissioner, in cooperation with the
157.30commissioner of agriculture, shall enforce
157.31compliance with aquatic plant management
157.32requirements regulating the control of
157.33aquatic plants with pesticides and removal of
158.1aquatic plants by mechanical means under
158.2Minnesota Statutes, section 103G.615.

158.3ARTICLE 13

158.4AGRICULTURE, ENVIRONMENT, AND NATURAL RESOURCES
158.5FISCAL IMPLEMENTATION PROVISIONS

158.6    Section 1. Minnesota Statutes 2012, section 13.643, subdivision 6, is amended to read:
158.7    Subd. 6. Animal premises data. (a) The following data collected and maintained
158.8by the Board of Animal Health related to registration and identification of premises and
158.9animals under chapter 35, are classified as private or nonpublic:
158.10(1) the names and addresses;
158.11(2) the location of the premises where animals are kept; and
158.12(3) the identification number of the premises or the animal.
158.13(b) Except as provided in section 347.58, subdivision 5, data collected and
158.14maintained by the Board of Animal Health under sections 347.57 to 347.64 are classified
158.15as private or nonpublic.
158.16(b) (c) The Board of Animal Health may disclose data collected under paragraph (a)
158.17 or (b) to any person, agency, or to the public if the board determines that the access will
158.18aid in the law enforcement process or the protection of public or animal health or safety.

158.19    Sec. 2. Minnesota Statutes 2012, section 16A.125, subdivision 5, is amended to read:
158.20    Subd. 5. Forest trust lands. (a) The term "state forest trust fund lands" as used
158.21in this subdivision, means public land in trust under the Constitution set apart as "forest
158.22lands under the authority of the commissioner" of natural resources as defined by section
158.2389.001, subdivision 13 .
158.24(b) The commissioner of management and budget shall credit the revenue from the
158.25forest trust fund lands to the forest suspense account. The account must specify the trust
158.26funds interested in the lands and the respective receipts of the lands.
158.27(c) After a fiscal year, the commissioner of management and budget shall certify
158.28the costs incurred for forestry during that year under appropriations for the improvement,
158.29administration, and management of state forest trust fund lands and construction and
158.30improvement of forest roads to enhance the forest value of the lands. The certificate
158.31must specify the trust funds interested in the lands. After presentation to the Legislative
158.32Permanent School Fund Commission, the commissioner of natural resources shall
158.33supply the commissioner of management and budget with the information needed for the
158.34certificate. The certificate shall include an analysis that compares costs certified under this
158.35section with costs incurred on other public and private lands with similar land assets.
159.1(d) After a fiscal year, the commissioner shall distribute the receipts credited to the
159.2suspense account during that fiscal year as follows:
159.3(1) the amount of the certified costs incurred by the state for forest management,
159.4forest improvement, and road improvement during the fiscal year shall be transferred to
159.5the forest management investment account established under section 89.039;
159.6(2) the amount of costs incurred by the Legislative Permanent School Fund
159.7Commission under section 127A.30, and by the school trust lands director under section
159.8127A.353, shall be transferred to the general fund;
159.9(3) the balance of the certified costs incurred by the state during the fiscal year
159.10shall be transferred to the general fund; and
159.11(3) (4) the balance of the receipts shall then be returned prorated to the trust funds in
159.12proportion to their respective interests in the lands which produced the receipts.

159.13    Sec. 3. Minnesota Statutes 2012, section 18B.01, is amended by adding a subdivision
159.14to read:
159.15    Subd. 1c. Apiary. "Apiary" means a place where a collection of one or more hives
159.16or colonies of bees or the nuclei of bees are kept.

159.17    Sec. 4. Minnesota Statutes 2012, section 18B.01, is amended by adding a subdivision
159.18to read:
159.19    Subd. 2a. Bee. "Bee" means any stage of the common honeybee, Apis mellifera (L).

159.20    Sec. 5. Minnesota Statutes 2012, section 18B.01, is amended by adding a subdivision
159.21to read:
159.22    Subd. 2b. Bee owner. "Bee owner" means a person who owns an apiary.

159.23    Sec. 6. Minnesota Statutes 2012, section 18B.01, is amended by adding a subdivision
159.24to read:
159.25    Subd. 4c. Colony. "Colony" means the aggregate of worker bees, drones, the queen,
159.26and developing young bees living together as a family unit in a hive or other dwelling.

159.27    Sec. 7. Minnesota Statutes 2012, section 18B.01, is amended by adding a subdivision
159.28to read:
159.29    Subd. 11a. Hive. "Hive" means a frame hive, box hive, box, barrel, log gum, skep,
159.30or any other receptacle or container, natural or artificial, or any part of one, which is
159.31used as domicile for bees.

160.1    Sec. 8. Minnesota Statutes 2012, section 18B.01, is amended by adding a subdivision
160.2to read:
160.3    Subd. 20a. Pollinator. "Pollinator" means an insect that pollinates flowers.

160.4    Sec. 9. Minnesota Statutes 2012, section 18B.03, is amended by adding a subdivision
160.5to read:
160.6    Subd. 4. Pollinator enforcement. The commissioner may take enforcement action
160.7under chapter 18D for a violation of this chapter, or any rule adopted under this chapter,
160.8that results in harm to pollinators, including but not limited to applying a pesticide in
160.9a manner inconsistent with the pesticide product's label or labeling and resulting in
160.10pollinator death or willfully applying pesticide in a manner inconsistent with the pesticide
160.11product's label or labeling. The commissioner must deposit any penalty collected under
160.12this subdivision in the pesticide regulatory account in section 18B.05.

160.13    Sec. 10. Minnesota Statutes 2012, section 18B.04, is amended to read:
160.1418B.04 PESTICIDE IMPACT ON ENVIRONMENT.
160.15(a) The commissioner shall:
160.16(1) determine the impact of pesticides on the environment, including the impacts on
160.17surface water and groundwater in this state;
160.18(2) develop best management practices involving pesticide distribution, storage,
160.19handling, use, and disposal; and
160.20(3) cooperate with and assist other state agencies and local governments to protect
160.21public health, pollinators, and the environment from harmful exposure to pesticides.
160.22(b) The commissioner may assemble a group of experts under section 16C.10,
160.23subdivision 2, to consult in the investigation of pollinator deaths or illnesses. The group
160.24of experts may include representatives from local, state, and federal agencies; academia,
160.25including the University of Minnesota; the state pollinator bank; or other professionals as
160.26deemed necessary by the commissioner. The amount necessary for the purposes of this
160.27paragraph, not to exceed $100,000 per fiscal year, is appropriated from the pesticide
160.28regulatory account in section 18B.05.

160.29    Sec. 11. [18B.055] COMPENSATION FOR BEES KILLED BY PESTICIDE;
160.30APPROPRIATION.
160.31    Subdivision 1. Compensation required. (a) The commissioner of agriculture must
160.32compensate a person for an acute pesticide poisoning resulting in the death of bees or loss
160.33of bee colonies owned by the person, provided:
161.1(1) the person who applied the pesticide cannot be determined;
161.2(2) the person who applied the pesticide did so in a manner consistent with the
161.3pesticide product's label or labeling; or
161.4(3) the person who applied the pesticide did so in a manner inconsistent with the
161.5pesticide product's label or labeling.
161.6(b) Except as provided in this section, the bee owner is entitled to the fair market
161.7value of the dead bees and bee colonies losses as determined by the commissioner upon
161.8recommendation by academic experts and bee keepers. In any fiscal year, a bee owner
161.9must not be compensated for a claim that is less than $100 or compensated more than
161.10$20,000 for all eligible claims.
161.11    Subd. 2. Applicator responsible. In the event a person applies a pesticide in a
161.12manner inconsistent with the pesticide product's label or labeling requirements as approved
161.13by the commissioner and is determined to have caused the acute pesticide poisoning of bees,
161.14resulting in death or loss of a bee colony kept for commercial purposes, then the person so
161.15identified must bear the responsibility of restitution for the value of the bees to the owner.
161.16In these cases the commissioner must not provide compensation as provided in this section.
161.17    Subd. 3. Claim form. The bee owner must file a claim on forms provided by the
161.18commissioner and available on the Department of Agriculture's Web site.
161.19    Subd. 4. Determination. The commissioner must determine whether the death of
161.20the bees or loss of bee colonies was caused by an acute pesticide poisoning, whether the
161.21pesticide applicator can be determined, and whether the pesticide applicator applied the
161.22pesticide product in a manner consistent with the pesticide product's label or labeling.
161.23    Subd. 5. Payments; denial of compensation. (a) If the commissioner determines
161.24the bee death or loss of bee colony was caused by an acute pesticide poisoning and
161.25either the pesticide applicator cannot be determined or the pesticide applicator applied
161.26the pesticide product in a manner consistent with the pesticide product's label or labeling,
161.27the commissioner may award compensation from the pesticide regulatory account. If the
161.28pesticide applicator can be determined and the applicator applied the pesticide product
161.29in a manner inconsistent with the product's label or labeling, the commissioner may
161.30collect a penalty from the pesticide applicator sufficient to compensate the bee owner
161.31for the fair market value of the dead bees and bee colonies losses, and must award the
161.32money to the bee owner.
161.33(b) If the commissioner denies compensation claimed by a bee owner under this
161.34section, the commissioner must issue a written decision based upon the available evidence.
161.35The decision must include specification of the facts upon which the decision is based and
162.1the conclusions on the material issues of the claim. The commissioner must mail a copy
162.2of the decision to the bee owner.
162.3(c) A decision to deny compensation claimed under this section is not subject to the
162.4contested case review procedures of chapter 14, but may be reviewed upon a trial de
162.5novo in a court in the county where the loss occurred. The decision of the court may be
162.6appealed as in other civil cases. Review in court may be obtained by filing a petition for
162.7review with the administrator of the court within 60 days following receipt of a decision
162.8under this section. Upon the filing of a petition, the administrator must mail a copy to the
162.9commissioner and set a time for hearing within 90 days of the filing.
162.10    Subd. 6. Deduction from payment. The commissioner must reduce payments
162.11made under this section by any compensation received by the bee owner for dead bees and
162.12bee colonies losses as proceeds from an insurance policy or from another source.
162.13    Subd. 7. Appropriation. The amount necessary to pay claims under this section,
162.14not to exceed $150,000 per fiscal year, is appropriated from the pesticide regulatory
162.15account in section 18B.05.
162.16EFFECTIVE DATE.This section is effective July 1, 2014, and applies to bee kills
162.17and bee colony losses attributable to acute pesticide poisoning that occur on or after
162.18that date.

162.19    Sec. 12. Minnesota Statutes 2012, section 84.788, subdivision 2, is amended to read:
162.20    Subd. 2. Exemptions. Registration is not required for off-highway motorcycles:
162.21(1) owned and used by the United States, an Indian tribal government, the state,
162.22another state, or a political subdivision;
162.23(2) registered in another state or country that have not been within this state for
162.24more than 30 consecutive days; or
162.25(3) registered under chapter 168, when operated on forest roads to gain access to a
162.26state forest campground;
162.27(4) used exclusively in organized track racing events;
162.28(5) operated on state or grant-in-aid trails by a nonresident possessing a nonresident
162.29off-highway motorcycle state trail pass; or
162.30(6) operated by a person participating in an event for which the commissioner has
162.31issued a special use permit.

162.32    Sec. 13. [84.7945] NONRESIDENT OFF-HIGHWAY MOTORCYCLE STATE
162.33TRAIL PASS.
163.1    Subdivision 1. Pass required; fee. (a) A tribal member exempt from registration
163.2under section 84.788, subdivision 2, clause (2), or a nonresident, may not operate an
163.3off-highway motorcycle on a state or grant-in-aid off-highway motorcycle trail unless the
163.4operator carries a valid nonresident off-highway motorcycle state trail pass in immediate
163.5possession. The pass must be available for inspection by a peace officer, a conservation
163.6officer, or an employee designated under section 84.0835.
163.7(b) The commissioner of natural resources shall issue a pass upon application and
163.8payment of a $20 fee. The pass is valid from January 1 through December 31. Fees
163.9collected under this section, except for the issuing fee for licensing agents, shall be
163.10deposited in the state treasury and credited to the off-highway motorcycle account in
163.11the natural resources fund and, except for the electronic licensing system commission
163.12established by the commissioner under section 84.027, subdivision 15, must be used for
163.13grants-in-aid to counties and municipalities for off-highway motorcycle organizations to
163.14construct and maintain off-highway motorcycle trails and use areas.
163.15    (c) A nonresident off-highway motorcycle state trail pass is not required for:
163.16    (1) an off-highway motorcycle that is owned and used by the United States, another
163.17state, or a political subdivision thereof that is exempt from registration under section
163.1884.788, subdivision 2;
163.19    (2) a person operating an off-highway motorcycle only on the portion of a trail that
163.20is owned by the person or the person's spouse, child, or parent; or
163.21(3) a nonresident operating an off-highway motorcycle that is registered according
163.22to section 84.788.
163.23    Subd. 2. License agents. The commissioner may appoint agents to issue and sell
163.24nonresident off-highway motorcycle state trail passes. The commissioner may revoke the
163.25appointment of an agent at any time. The commissioner may adopt additional rules as
163.26provided in section 97A.485, subdivision 11. An agent shall observe all rules adopted
163.27by the commissioner for accounting and handling of passes pursuant to section 97A.485,
163.28subdivision 11 . An agent shall promptly deposit and remit all money received from the
163.29sale of the passes, exclusive of the issuing fee, to the commissioner.
163.30    Subd. 3. Issuance of passes. The commissioner and agents shall issue and sell
163.31nonresident off-highway motorcycle state trail passes. The commissioner shall also make
163.32the passes available through the electronic licensing system established under section
163.3384.027, subdivision 15.
163.34    Subd. 4. Agent's fee. In addition to the fee for a pass, an issuing fee of $1 per pass
163.35shall be charged. The issuing fee may be retained by the seller of the pass. Issuing fees
163.36for passes issued by the commissioner shall be deposited in the off-highway motorcycle
164.1account in the natural resources fund and retained for the operation of the electronic
164.2licensing system.
164.3    Subd. 5. Duplicate passes. The commissioner and agents shall issue a duplicate
164.4pass to persons whose pass is lost or destroyed using the process established under section
164.597A.405, subdivision 3, and rules adopted thereunder. The fee for a duplicate nonresident
164.6off-highway motorcycle state trail pass is $2, with an issuing fee of 50 cents.

164.7    Sec. 14. Minnesota Statutes 2012, section 85.053, subdivision 2, is amended to read:
164.8    Subd. 2. Requirement. Except as provided in section 85.054, a motor vehicle
164.9may not enter a state park, state recreation area, or state wayside over 50 acres in area,
164.10without a state park permit issued under this section or a state parks and trails plate issued
164.11under section 168.1295. Except for vehicles permitted under subdivisions 7, paragraph
164.12(a), clause (2), and 8, the state park permit must be affixed to the lower right corner
164.13windshield of the motor vehicle and must be completely affixed by its own adhesive to
164.14the windshield, or the commissioner may, by written order, provide an alternative means
164.15to display and validate state park permits.

164.16    Sec. 15. [85.056] STATE PARKS AND TRAILS DONATION ACCOUNT.
164.17    Subdivision 1. Establishment. The state parks and trails donation account is
164.18established as a separate account in the natural resources fund. The account shall be
164.19administered by the commissioner of natural resources as provided in this section.
164.20    Subd. 2. Funding sources. The state parks and trails donation account shall consist
164.21of contributions made under section 168.1295 and other contributions. The contributions
164.22may be made in cash, property, land, or interests in land.
164.23    Subd. 3. Uses. Money in the account is appropriated to the commissioner of natural
164.24resources to operate and maintain the state parks and trails system.

164.25    Sec. 16. Minnesota Statutes 2012, section 85.34, subdivision 7, is amended to read:
164.26    Subd. 7. Disposition of proceeds. (a) All revenue derived from the lease of the Fort
164.27Snelling upper bluff, with the exception of payment for costs of the water line as described
164.28in subdivision 6, shall be deposited in the natural resources fund and credited to a state
164.29park account. Interest earned on the money in the account accrues to the account.
164.30(b) Revenue and expenses from the upper bluff shall be tracked separately within
164.31the account. Money in the account derived from the leasing or operation of the property
164.32described in subdivision 1 may be is appropriated annually to the commissioner for
164.33the payment of expenses attributable to the leasing, development, and operation of the
165.1property described in subdivision 1, including, but not limited to, the maintenance, repair,
165.2and rehabilitation of historic buildings and landscapes.

165.3    Sec. 17. Minnesota Statutes 2012, section 85A.02, subdivision 2, is amended to read:
165.4    Subd. 2. Zoological Garden. The board shall acquire, construct, equip, operate
165.5and maintain the Minnesota Zoological Garden at a site in Dakota County legally
165.6described in Laws 1975, chapter 382, section 12. The Zoological Garden shall consist
165.7of adequate facilities and structures for the collection, habitation, preservation, care,
165.8exhibition, examination or study of wild and domestic animals, including, but not limited
165.9to mammals, birds, fish, amphibians, reptiles, crustaceans and mollusks. The board
165.10may provide such lands, buildings and equipment as it deems necessary for parking,
165.11transportation, entertainment, education or instruction of the public in connection with
165.12such Zoological Garden. The Zoological Garden is an official pollinator bank for the state
165.13of Minnesota. For purposes of this subdivision, "pollinator bank" means a program to
165.14avert the extinction of pollinator species by cultivating insurance breeding populations.

165.15    Sec. 18. [87A.10] TRAP SHOOTING SPORTS FACILITY GRANTS.
165.16The commissioner of natural resources shall administer a program to provide
165.17cost-share grants to local recreational shooting clubs for up to 50 percent of the costs
165.18of developing or rehabilitating trap shooting sports facilities for public use. A facility
165.19rehabilitated or developed with a grant under this section must be open to the general
165.20public at reasonable times and for a reasonable fee on a walk-in basis. The commissioner
165.21shall give preference to projects that will provide the most opportunities for youth.

165.22    Sec. 19. Minnesota Statutes 2012, section 103G.251, is amended to read:
165.23103G.251 INVESTIGATION OF ACTIVITIES WITHOUT PERMIT
165.24 AFFECTING WATERS OF THE STATE.
165.25    Subdivision 1. Investigations. If the commissioner determines that an investigation
165.26is in the public interest, the commissioner may investigate and monitor activities being
165.27conducted with or without a permit that may affect waters of the state.
165.28    Subd. 2. Findings and order. (a) With or without a public hearing, the
165.29commissioner may make findings and issue orders related to activities being conducted
165.30without a permit that affect waters of the state as otherwise authorized under this chapter.
165.31(b) A copy of the findings and order must be served on the person to whom the
165.32order is issued.
166.1(c) If the commissioner issues the findings and order without a hearing, the person to
166.2whom the order is issued may file a demand for a hearing with the commissioner. The
166.3demand for a hearing must be accompanied by the bond as provided in section 103G.311,
166.4subdivision 6 , and the hearing must be held in the same manner and with the same
166.5requirements as a hearing held under section 103G.311, subdivision 5. The demand for
166.6a hearing and bond must be filed by 30 days after the person is served with a copy of
166.7the commissioner's order.
166.8(d) The hearing must be conducted as a contested case hearing under chapter 14.
166.9(e) If the person to whom the order is addressed does not demand a hearing or
166.10demands a hearing but fails to file the required bond:
166.11(1) the commissioner's order becomes final at the end of 30 days after the person is
166.12served with the order; and
166.13(2) the person may not appeal the order.
166.14(f) An order of the commissioner may be recorded or filed by the commissioner in
166.15the office of the county recorder or registrar of titles, as appropriate, in the county where
166.16the real property is located as a deed restriction on the property that runs with the land
166.17and is binding on the owners, successors, and assigns until the conditions of the order
166.18are met or the order is rescinded.

166.19    Sec. 20. Minnesota Statutes 2012, section 103G.271, subdivision 5, is amended to read:
166.20    Subd. 5. Prohibition on once-through water use permits. (a) Except as provided
166.21in paragraph (c), the commissioner may not, after December 31, 1990, issue a water
166.22use permit to increase the volume of appropriation from a groundwater source for a
166.23once-through cooling system using in excess of 5,000,000 gallons annually.
166.24(b) Except as provided in paragraph (c), once-through system water use permits
166.25using in excess of 5,000,000 gallons annually, must be terminated by the commissioner
166.26by the end of their design life but not later than December 31, 2010, unless the discharge
166.27is into a public water basin within a nature preserve approved by the commissioner and
166.28established prior to January 1, 2001. Existing once-through systems must not be expanded
166.29and are required to convert to water efficient alternatives within the design life of existing
166.30equipment.
166.31(c) Notwithstanding paragraphs (a) and (b), the commissioner, with the approval of
166.32the commissioners of health and the Pollution Control Agency, may issue once-through
166.33system water use permits on an annual basis for aquifer storage and recovery systems that
166.34return all once-through system water to the source aquifer. Water use permit processing
167.1fees in subdivision 6, paragraph (a), apply to all water withdrawals under this paragraph,
167.2including any reuse of water returned to the source aquifer.
167.3EFFECTIVE DATE.This section is effective January 1, 2015.

167.4    Sec. 21. Minnesota Statutes 2012, section 103G.271, subdivision 6, is amended to read:
167.5    Subd. 6. Water use permit processing fee. (a) Except as described in paragraphs
167.6(b) to (f) (g), a water use permit processing fee must be prescribed by the commissioner in
167.7accordance with the schedule of fees in this subdivision for each water use permit in force
167.8at any time during the year. Fees collected under this paragraph are credited to the water
167.9management account in the natural resources fund. The schedule is as follows, with the
167.10stated fee in each clause applied to the total amount appropriated:
167.11    (1) $140 for amounts not exceeding 50,000,000 gallons per year;
167.12    (2) $3.50 per 1,000,000 gallons for amounts greater than 50,000,000 gallons but less
167.13than 100,000,000 gallons per year;
167.14    (3) $4 per 1,000,000 gallons for amounts greater than 100,000,000 gallons but less
167.15than 150,000,000 gallons per year;
167.16    (4) $4.50 per 1,000,000 gallons for amounts greater than 150,000,000 gallons but
167.17less than 200,000,000 gallons per year;
167.18    (5) $5 per 1,000,000 gallons for amounts greater than 200,000,000 gallons but less
167.19than 250,000,000 gallons per year;
167.20    (6) $5.50 per 1,000,000 gallons for amounts greater than 250,000,000 gallons but
167.21less than 300,000,000 gallons per year;
167.22    (7) $6 per 1,000,000 gallons for amounts greater than 300,000,000 gallons but less
167.23than 350,000,000 gallons per year;
167.24    (8) $6.50 per 1,000,000 gallons for amounts greater than 350,000,000 gallons but
167.25less than 400,000,000 gallons per year;
167.26    (9) $7 per 1,000,000 gallons for amounts greater than 400,000,000 gallons but less
167.27than 450,000,000 gallons per year;
167.28    (10) $7.50 per 1,000,000 gallons for amounts greater than 450,000,000 gallons but
167.29less than 500,000,000 gallons per year; and
167.30    (11) $8 per 1,000,000 gallons for amounts greater than 500,000,000 gallons per year.
167.31    (b) For once-through cooling systems, a water use processing fee must be prescribed
167.32by the commissioner in accordance with the following schedule of fees for each water use
167.33permit in force at any time during the year:
167.34    (1) for nonprofit corporations and school districts, $200 per 1,000,000 gallons; and
167.35    (2) for all other users, $420 per 1,000,000 gallons.
168.1    (c) The fee is payable based on the amount of water appropriated during the year
168.2and, except as provided in paragraph (f), the minimum fee is $100.
168.3    (d) For water use processing fees other than once-through cooling systems:
168.4    (1) the fee for a city of the first class may not exceed $250,000 per year;
168.5    (2) the fee for other entities for any permitted use may not exceed:
168.6    (i) $60,000 per year for an entity holding three or fewer permits;
168.7    (ii) $90,000 per year for an entity holding four or five permits; or
168.8    (iii) $300,000 per year for an entity holding more than five permits;
168.9    (3) the fee for agricultural irrigation may not exceed $750 per year;
168.10    (4) the fee for a municipality that furnishes electric service and cogenerates steam
168.11for home heating may not exceed $10,000 for its permit for water use related to the
168.12cogeneration of electricity and steam; and
168.13    (5) no fee is required for a project involving the appropriation of surface water to
168.14prevent flood damage or to remove flood waters during a period of flooding, as determined
168.15by the commissioner.
168.16    (e) Failure to pay the fee is sufficient cause for revoking a permit. A penalty of two
168.17 ten percent per month calculated from the original due date must be imposed on the unpaid
168.18balance of fees remaining 30 days after the sending of a second notice of fees due. A fee
168.19may not be imposed on an agency, as defined in section 16B.01, subdivision 2, or federal
168.20governmental agency holding a water appropriation permit.
168.21    (f) The minimum water use processing fee for a permit issued for irrigation of
168.22agricultural land is $20 for years in which:
168.23    (1) there is no appropriation of water under the permit; or
168.24    (2) the permit is suspended for more than seven consecutive days between May 1
168.25and October 1.
168.26(g) The commissioner shall waive the water use permit fee for installations and
168.27projects that use storm water runoff or where public entities are diverting water to treat
168.28a water quality issue and returning the water to its source without using the water for
168.29any other purpose, unless the commissioner determines that the proposed use adversely
168.30affects surface water or groundwater.
168.31    (g) (h) A surcharge of $30 per million gallons in addition to the fee prescribed in
168.32paragraph (a) shall be applied to the volume of water used in each of the months of June,
168.33July, and August that exceeds the volume of water used in January for municipal water
168.34use, irrigation of golf courses, and landscape irrigation. The surcharge for municipalities
168.35with more than one permit shall be determined based on the total appropriations from all
168.36permits that supply a common distribution system.

169.1    Sec. 22. Minnesota Statutes 2012, section 103G.281, is amended by adding a
169.2subdivision to read:
169.3    Subd. 4. Penalty for noncompliant reporting. The commissioner may assess
169.4penalties for noncompliant reporting of water use information as provided in this section.
169.5The penalty is ten percent of the annual water use permit processing fee.

169.6    Sec. 23. [103G.299] ADMINISTRATIVE PENALTIES.
169.7    Subdivision 1. Authority to issue penalty orders. (a) As provided in paragraph
169.8(b), the commissioner may issue an order requiring violations to be corrected and
169.9administratively assessing monetary penalties for violations of sections 103G.271 and
169.10103G.275, and any rules adopted under those sections.
169.11(b) An order under this section may be issued to a person for water appropriation
169.12activities without a required permit.
169.13(c) The order must be issued as provided in this section and in accordance with
169.14the plan prepared under subdivision 12.
169.15    Subd. 2. Amount of penalty; considerations. (a) The commissioner may issue
169.16orders assessing administrative penalties based on potential for harm and deviation from
169.17compliance. For a violation that presents: (1) a minor potential for harm and deviation
169.18from compliance, the penalty will be no more than $1,000; (2) a moderate potential for
169.19harm and deviation from compliance, the penalty will be no more than $10,000; and (3)
169.20a severe potential for harm and deviation from compliance, the penalty will be no more
169.21than $20,000.
169.22(b) In determining the amount of a penalty the commissioner may consider:
169.23(1) the gravity of the violation, including potential for, or real, damage to the public
169.24interest or natural resources of the state;
169.25(2) the history of past violations;
169.26(3) the number of violations;
169.27(4) the economic benefit gained by the person by allowing or committing the
169.28violation based on data from local or state bureaus or educational institutions; and
169.29(5) other factors as justice may require, if the commissioner specifically identifies
169.30the additional factors in the commissioner's order.
169.31(c) For a violation after an initial violation, including a continuation of the initial
169.32violation, the commissioner must, in determining the amount of a penalty, consider the
169.33factors in paragraph (b) and the:
169.34(1) similarity of the most recent previous violation and the violation to be penalized;
169.35(2) time elapsed since the last violation;
170.1(3) number of previous violations; and
170.2(4) response of the person to the most recent previous violation identified.
170.3    Subd. 3. Contents of order. An order assessing an administrative penalty under
170.4this section must include:
170.5(1) a concise statement of the facts alleged to constitute a violation;
170.6(2) a reference to the section of the statute, rule, order, or term or condition of
170.7a permit that has been violated;
170.8(3) a statement of the amount of the administrative penalty to be imposed and the
170.9factors upon which the penalty is based; and
170.10(4) a statement of the person's right to review of the order.
170.11    Subd. 4. Corrective order. (a) The commissioner may issue an order assessing a
170.12penalty and requiring the violations cited in the order to be corrected within a time period
170.13specified by the commissioner.
170.14(b) The person to whom the order was issued must provide information to the
170.15commissioner before the 31st day after the order was received demonstrating that the
170.16violation has been corrected or that appropriate steps toward correcting the violation
170.17have been taken.
170.18(c) The commissioner must determine whether the violation has been corrected and
170.19notify the person subject to the order of the commissioner's determination.
170.20    Subd. 5. Penalty. (a) Unless the person requests review of the order under
170.21subdivision 6 or 7 before the penalty is due, the penalty in the order is due and payable:
170.22(1) on the 31st day after the order was received, if the person subject to the order
170.23fails to provide information to the commissioner showing that the violation has been
170.24corrected or that appropriate steps have been taken toward correcting the violation; or
170.25(2) on the 20th day after the person receives the commissioner's determination under
170.26subdivision 4, paragraph (c), if the person subject to the order has provided information
170.27to the commissioner that the commissioner determines is not sufficient to show that the
170.28violation has been corrected or that appropriate steps have been taken toward correcting
170.29the violation.
170.30(b) The penalty is due by 31 days after the order was received, unless review of the
170.31order under subdivision 6 or 7 has been sought.
170.32(c) Interest at the rate established in section 549.09 begins to accrue on penalties
170.33under this subdivision on the 31st day after the order with the penalty was received.
170.34    Subd. 6. Expedited administrative hearing. (a) Within 30 days after receiving
170.35an order or within 20 days after receiving notice that the commissioner has determined
170.36that a violation has not been corrected or appropriate steps have not been taken, the
171.1person subject to an order under this section may request an expedited hearing, using
171.2the procedures under Minnesota Rules, parts 1400.8510 to 1400.8612, to review the
171.3commissioner's determination. The hearing request must specifically state the reasons
171.4for seeking review of the order. The person to whom the order is directed and the
171.5commissioner are the parties to the expedited hearing. The commissioner must notify the
171.6person to whom the order is directed of the time and place of the hearing at least 20 days
171.7before the hearing. The expedited hearing must be held within 30 days after a request for
171.8hearing has been filed with the commissioner unless the parties agree to a later date.
171.9(b) All written arguments must be submitted within ten days following the close of
171.10the hearing. The hearing must be conducted under Minnesota Rules, parts 1400.8510 to
171.111400.8612, as modified by this subdivision.
171.12(c) The administrative law judge must issue a report making recommendations about
171.13the commissioner's action to the commissioner within 30 days following the close of the
171.14record. The administrative law judge may not recommend a change in the amount of the
171.15proposed penalty unless the administrative law judge determines that, based on the factors
171.16in subdivision 2, the amount of the penalty is unreasonable.
171.17(d) If the administrative law judge makes a finding that the hearing was requested
171.18solely for purposes of delay or that the hearing request was frivolous, the commissioner
171.19may add to the amount of the penalty the costs charged to the department by the Office of
171.20Administrative Hearings for the hearing.
171.21(e) If a hearing has been held, the commissioner may not issue a final order until at
171.22least five days after receipt of the report of the administrative law judge. The person to
171.23whom an order is issued may, within those five days, comment to the commissioner on the
171.24recommendations, and the commissioner must consider the comments. The final order
171.25may be appealed in the manner provided in sections 14.63 to 14.69.
171.26(f) If a hearing has been held and a final order issued by the commissioner, the
171.27penalty must be paid by 30 days after the date the final order is received unless review of
171.28the final order is requested under sections 14.63 to 14.69. If review is not requested or the
171.29order is reviewed and upheld, the amount due is the penalty, together with interest accruing
171.30from 31 days after the original order was received at the rate established in section 549.09.
171.31    Subd. 7. Mediation. In addition to review under subdivision 6, the commissioner
171.32may enter into mediation concerning an order issued under this section if the commissioner
171.33and the person to whom the order is issued both agree to mediation.
171.34    Subd. 8. Penalties due and payable. The commissioner may enforce penalties that
171.35are due and payable under this section in any manner provided by law for the collection
171.36of debts.
172.1    Subd. 9. Revocation and suspension of permit. If a person fails to pay a penalty
172.2owed under this section, the commissioner has grounds to revoke a permit or to refuse
172.3to amend a permit or issue a new permit.
172.4    Subd. 10. Cumulative remedy. The authority of the commissioner to issue a
172.5corrective order assessing penalties is in addition to other remedies available under statutory
172.6or common law, except that the state may not seek civil penalties under any other provision
172.7of law for the violations covered by the administrative penalty order. The payment of a
172.8penalty does not preclude the use of other enforcement provisions, under which penalties
172.9are not assessed, in connection with the violation for which the penalty was assessed.
172.10    Subd. 11. Deposit of fees. Fees collected under this section must be credited to the
172.11water management account in the natural resources fund.
172.12    Subd. 12. Plan for use of administrative penalties. The commissioner must
172.13prepare a plan for using the administrative penalty authority in this section. The plan must
172.14include explanations for how the commissioner will determine whether violations are
172.15minor, moderate, or severe. The commissioner must provide a 30-day period for public
172.16comment on the plan. The plan must be finalized within six months after the effective
172.17date of this section.
172.18EFFECTIVE DATE.Subdivisions 1 to 11 of this section are effective January 1,
172.192015. Subdivision 12 of this section is effective July 1, 2014.

172.20    Sec. 24. Minnesota Statutes 2012, section 115A.151, as amended by Laws 2014,
172.21chapter 225, section 4, is amended to read:
172.22115A.151 RECYCLING REQUIREMENTS; PUBLIC ENTITIES;
172.23COMMERCIAL BUILDINGS; SPORTS FACILITIES.
172.24(a) A public entity, the owner of a sports facility, and an owner of a commercial
172.25building shall:
172.26(1) ensure that facilities under its control, from which mixed municipal solid waste
172.27is collected, also collect at least three recyclable materials, such as, but not limited to,
172.28paper, glass, plastic, and metal; and
172.29(2) transfer all recyclable materials collected to a recycler.
172.30(b) For the purposes of this section:
172.31(1) "public entity" means the state, an office, agency, or institution of the state,
172.32the Metropolitan Council, a metropolitan agency, the Metropolitan Mosquito Control
172.33Commission, the legislature, the courts, a county, a statutory or home rule charter city, a
173.1town, a school district, a special taxing district, or any entity that receives an appropriation
173.2from the state for a capital improvement project after August 1, 2002;
173.3(2) "metropolitan agency" and "Metropolitan Council," have the meanings given
173.4them in section 473.121;
173.5(3) "Metropolitan Mosquito Control Commission" means the commission created
173.6in section 473.702; and
173.7(4) "commercial building" means a building that:
173.8(i) is located in a metropolitan county, as defined in section 473.121;
173.9(ii) contains a business classified in sectors 42 to 81 under the North American
173.10Industrial Classification System; and
173.11(iii) contracts for four cubic yards or more per week of solid waste collection.; and
173.12(5) "sports facility" means a professional or collegiate sports facility at which
173.13competitions take place before a public audience.
173.14EFFECTIVE DATE.This section is effective January 1, 2015.

173.15    Sec. 25. Minnesota Statutes 2012, section 115A.55, subdivision 4, is amended to read:
173.16    Subd. 4. Statewide source reduction goal. (a) It is a goal of the state that there
173.17be a minimum ten percent per capita reduction in the amount of mixed and counties to
173.18reduce the generation of municipal solid waste generated in the state by December 31,
173.192000, based on a reasonable estimate of the amount of mixed municipal solid waste that
173.20was generated in calendar year 1993.
173.21(b) As part of the 1997 report required under section 115A.411, the commissioner
173.22shall submit to the senate and house of representatives committees having jurisdiction
173.23over environment and natural resources and environment and natural resources finance
173.24a proposed strategy for meeting the goal in paragraph (a). The strategy must include a
173.25discussion of the different reduction potentials to be found in various sectors and may
173.26include recommended interim goals. The commissioner shall report progress on meeting
173.27the goal in paragraph (a), as well as recommendations and revisions to the proposed
173.28strategy, as part of the 1999 report required under section 115A.411.
173.29EFFECTIVE DATE.This section is effective the day following final enactment.

173.30    Sec. 26. Minnesota Statutes 2012, section 115A.551, subdivision 1, is amended to read:
173.31    Subdivision 1. Definition. (a) For the purposes of this section, "recycling" means,
173.32in addition to the meaning given in section 115A.03, subdivision 25b, yard waste and
173.33source-separated compostable materials composting, and recycling that occurs through
174.1mechanical or hand separation of materials that are then delivered for reuse in their
174.2original form or for use in manufacturing processes that do not cause the destruction of
174.3recyclable materials in a manner that precludes further use.
174.4(b) For the purposes of this section, "total solid waste generation" means the total
174.5by weight of:
174.6(1) materials separated for recycling;
174.7(2) materials separated for yard waste and source-separated compostable materials
174.8composting;
174.9(3) mixed municipal solid waste plus yard waste, motor and vehicle fluids and
174.10filters, tires, lead acid batteries, and major appliances; and
174.11(4) residential waste materials that would be mixed municipal solid waste but for
174.12the fact that they are not collected as such.
174.13EFFECTIVE DATE.This section is effective the day following final enactment.

174.14    Sec. 27. Minnesota Statutes 2012, section 115A.551, subdivision 2a, is amended to read:
174.15    Subd. 2a. Supplementary County recycling goals. (a) By December 31, 1996
174.16 2030, each county will have as a goal to recycle the following amounts:
174.17(1) for a county outside of the metropolitan area, 35 percent by weight of total
174.18solid waste generation; and
174.19(2) for a metropolitan county, 50 75 percent by weight of total solid waste generation.
174.20(b) Each county will develop and implement or require political subdivisions within
174.21the county to develop and implement programs, practices, or methods designed to meet its
174.22recycling goal. Nothing in this section or in any other law may be construed to prohibit a
174.23county from establishing a higher recycling goal.
174.24EFFECTIVE DATE.This section is effective the day following final enactment.

174.25    Sec. 28. Minnesota Statutes 2012, section 115A.557, subdivision 2, is amended to read:
174.26    Subd. 2. Purposes for which money may be spent. (a) A county receiving money
174.27distributed by the commissioner under this section may use the money only for the
174.28development and implementation of programs to:
174.29(1) reduce the amount of solid waste generated;
174.30(2) recycle the maximum amount of solid waste technically feasible;
174.31(3) create and support markets for recycled products;
174.32(4) remove problem materials from the solid waste stream and develop proper
174.33disposal options for them;
175.1(5) inform and educate all sectors of the public about proper solid waste management
175.2procedures;
175.3(6) provide technical assistance to public and private entities to ensure proper solid
175.4waste management;
175.5(7) provide educational, technical, and financial assistance for litter prevention; and
175.6(8) process mixed municipal solid waste generated in the county at a resource
175.7recovery facility located in Minnesota; and
175.8(9) compost source-separated compostable materials, including the provision of
175.9receptacles for residential composting.
175.10(b) Beginning in fiscal year 2015 and continuing thereafter, of any money distributed
175.11by the commissioner under this section to a metropolitan county, as defined in section
175.12473.121, subdivision 4, that exceeds the amount the county was eligible to receive under
175.13this section in fiscal year 2014: (1) at least 50 percent must be expended on activities
175.14in paragraph (a), clause (9); and (2) the remainder must be expended on activities in
175.15paragraph (a), clauses (1) to (7) and (9) that advance the county toward achieving its
175.16recycling goal under section 115A.551.
175.17EFFECTIVE DATE.This section is effective the day following final enactment.

175.18    Sec. 29. Minnesota Statutes 2012, section 115A.557, subdivision 3, is amended to read:
175.19    Subd. 3. Eligibility to receive money. (a) To be eligible to receive money distributed
175.20by the commissioner under this section, a county shall within one year of October 4, 1989:
175.21(1) create a separate account in its general fund to credit the money; and
175.22(2) set up accounting procedures to ensure that money in the separate account is
175.23spent only for the purposes in subdivision 2.
175.24(b) In each following year, each county shall also:
175.25(1) have in place an approved solid waste management plan or master plan including
175.26a recycling implementation strategy under section 115A.551, subdivision 7, and a
175.27household hazardous waste management plan under section 115A.96, subdivision 6,
175.28by the dates specified in those provisions;
175.29(2) submit a report by April 1 of each year to the commissioner, which may be
175.30submitted electronically and must be posted on the agency's Web site, detailing for the
175.31previous calendar year:
175.32(i) how the money was spent including, but not limited to, specific recycling and
175.33composting activities undertaken to increase the county's proportion of solid waste
175.34recycled in order to achieve its recycling goal established in section 115A.551; specific
175.35information on the number of employees performing SCORE planning, oversight, and
176.1administration; the percentage of those employees' total work time allocated to SCORE
176.2planning, oversight, and administration; the specific duties and responsibilities of those
176.3employees; and the amount of staff salary for these SCORE duties and responsibilities of
176.4the employees; and
176.5(ii) the resulting gains achieved in solid waste management practices; and
176.6(3) provide evidence to the commissioner that local revenue equal to 25 percent of
176.7the money sought for distribution under this section will be spent for the purposes in
176.8subdivision 2.
176.9(c) The commissioner shall withhold all or part of the funds to be distributed
176.10to a county under this section if the county fails to comply with this subdivision and
176.11subdivision 2.
176.12EFFECTIVE DATE.This section is effective the day following final enactment.

176.13    Sec. 30. Minnesota Statutes 2013 Supplement, section 116V.03, is amended to read:
176.14116V.03 APPROPRIATION.
176.15$1,000,000 in fiscal year 2014 and each year thereafter is appropriated from the
176.16general fund to the commissioner of revenue for transfer to the agricultural project
176.17utilization account in the special revenue fund for the Agricultural Utilization Research
176.18Institute established under section 116V.01.

176.19    Sec. 31. [168.1295] STATE PARKS AND TRAILS PLATES.
176.20    Subdivision 1. General requirements and procedures. (a) The commissioner shall
176.21issue state parks and trails plates to an applicant who:
176.22(1) is a registered owner of a passenger automobile, recreational vehicle, one ton
176.23pickup truck, or motorcycle;
176.24(2) pays a fee of $10 to cover the costs of handling and manufacturing the plates;
176.25(3) pays the registration tax required under section 168.013;
176.26(4) pays the fees required under this chapter;
176.27(5) contributes a minimum of $50 annually to the state parks and trails donation
176.28account established in section 85.056; and
176.29(6) complies with this chapter and rules governing registration of motor vehicles
176.30and licensing of drivers.
176.31(b) The state parks and trails plate application must indicate that the contribution
176.32specified under paragraph (a), clause (5), is a minimum contribution to receive the plate
176.33and that the applicant may make an additional contribution to the account.
177.1(c) State parks and trails plates may be personalized according to section 168.12,
177.2subdivision 2a.
177.3    Subd. 2. Design. After consultation with interested groups, the commissioners of
177.4natural resources and public safety shall jointly select a suitable symbol for use by the
177.5commissioner of public safety to design the state parks and trails plates.
177.6    Subd. 3. No refund. Contributions under this section must not be refunded.
177.7    Subd. 4. Plate transfers. Notwithstanding section 168.12, subdivision 1, on
177.8payment of a transfer fee of $5, plates issued under this section may be transferred to
177.9another passenger automobile registered to the person to whom the plates were issued.
177.10    Subd. 5. Contribution and fees credited. Contributions under subdivision 1,
177.11paragraph (a), clause (5), must be paid to the commissioner and credited to the state
177.12parks and trails donation account established in section 85.056. The other fees collected
177.13under this section must be deposited in the vehicle services operating account of the
177.14special revenue fund under section 299A.705.
177.15    Subd. 6. Record. The commissioner shall maintain a record of the number of
177.16plates issued under this section.
177.17    Subd. 7. Exemption. Special plates issued under this section are not subject to
177.18section 168.1293, subdivision 2.
177.19EFFECTIVE DATE.This section is effective the day following final enactment and
177.20applies to applications submitted on or after January 1, 2016, or the date the new driver and
177.21vehicle services information technology system is implemented, whichever comes later.

177.22    Sec. 32. [347.57] DEFINITIONS.
177.23    Subdivision 1. Terms. The definitions in this section apply to sections 347.57
177.24to 347.64.
177.25    Subd. 2. Animal. "Animal" means a dog or a cat.
177.26    Subd. 3. Board. "Board" means the Board of Animal Health.
177.27    Subd. 4. Cat. "Cat" means a mammal that is wholly or in part of the species Felis
177.28domesticus. An adult cat is a cat 28 weeks of age or older. A kitten is a cat under 28
177.29weeks of age.
177.30    Subd. 5. Commercial breeder. "Commercial breeder" means a person who
177.31possesses or has an ownership interest in animals and is engaged in the business of
177.32breeding animals for sale or for exchange in return for consideration, and who possesses
177.33ten or more adult intact animals and whose animals produce more than five total litters of
177.34puppies or kittens per year.
178.1    Subd. 6. Confinement area. "Confinement area" means a structure used or
178.2designed for use to restrict an animal to a limited amount of space, such as a room, pen,
178.3cage, kennel, compartment, crate, or hutch.
178.4    Subd. 7. Dog. "Dog" means a mammal that is wholly or in part of the species Canis
178.5familiaris. An adult dog is a dog 28 weeks of age or older. A puppy is a dog under 28
178.6weeks of age.
178.7    Subd. 8. Facility. "Facility" means the place used by a commercial breeder for
178.8breeding animals, and includes all buildings, property, confinement areas, and vehicles.
178.9    Subd. 9. Local animal control authority. "Local animal control authority" means
178.10an agency of the state, county, municipality, or other political subdivision of the state that
178.11is responsible for animal control operations in its jurisdiction.
178.12    Subd. 10. Person. "Person" means a natural person, firm, partnership, corporation,
178.13or association, however organized.
178.14    Subd. 11. Possess. "Possess" means to have custody of or have control over.
178.15    Subd. 12. Veterinarian. "Veterinarian" means a veterinarian in good standing and
178.16licensed in the state of Minnesota.

178.17    Sec. 33. [347.58] LICENSING AND INSPECTIONS.
178.18    Subdivision 1. Licensing. (a) The board may grant an operating license to a
178.19commercial breeder and must enforce sections 347.58 to 347.64.
178.20    (b) Beginning July 1, 2015, a commercial breeder must obtain an annual license
178.21for each facility it owns or operates. More than one building on the same premises is
178.22considered one facility. The initial prelicense inspection fee and the annual license fee is
178.23$10 per adult intact animal, but each fee must not exceed $250.
178.24    (c) The board must perform an announced initial prelicense inspection within 60
178.25days from the date of receiving a license application. A commercial breeder is not in
178.26violation of this section if the commercial breeder has filed a completed license application
178.27with the board and the board has not performed the initial prelicense inspection. The
178.28board must inspect a commercial breeder's facility before an initial license is issued. The
178.29initial prelicense inspection fee must be included with the license application. Upon
178.30completion of the inspection, the inspector must provide the commercial breeder an
178.31inspection certificate signed by the inspector in a format approved by the board.
178.32    (d) The license application must indicate if a commercial breeder operates under
178.33more than one name from a single location or has an ownership interest in any other
178.34facility. License holders must keep separate records for each business name.
178.35    (e) The application must include a statement that includes the following information:
179.1    (1) whether any license held by an applicant under this section or under any other
179.2federal, state, county, or local law, ordinance, or other regulation relating to breeding cats
179.3or dogs was ever suspended, revoked, or denied; and
179.4    (2) whether the applicant was ever convicted of animal cruelty.
179.5    (f) An application from a partnership, corporation, or limited liability company must
179.6include the name and address of all partners, directors, officers, or members and must
179.7include a notation of any partners, directors, officers, members, or others authorized to
179.8represent the partnership, corporation, or limited liability company.
179.9    (g) A nonresident applicant must consent to adjudication of any violation under the
179.10laws of the state of Minnesota and in Minnesota courts.
179.11    (h) A license issued under this section is not transferable.
179.12    (i) A license holder must apply for license renewal annually by submitting a renewal
179.13application on a form approved by the board. The license renewal application must be
179.14postmarked or submitted electronically in a method approved by the board by July 1
179.15of each year. The board may assess a late renewal penalty of up to 50 percent of the
179.16license fee. If a license is not renewed by August 1, the board may require the commercial
179.17breeder to reapply for an initial license.
179.18    (j) A commercial breeder must submit to the board an annual report by July 1 on a
179.19form prepared by the board. The form must include the current number of cats and dogs at
179.20the facility on the date of the report, the number of animals during the preceding year that
179.21were sold, traded, bartered, leased, brokered, given away, euthanized, or deceased from
179.22other causes, and any other information required by the board.
179.23    (k) If a commercial breeder is required to be licensed by the United States
179.24Department of Agriculture, United States Department of Agriculture inspection reports
179.25and records relating to animal care plans and veterinary care must be made available
179.26during an inspection, upon request.
179.27    (l) A commercial breeder must prominently display the commercial breeder's license
179.28at each facility.
179.29(m) A commercial breeder's state license number or a symbol approved by the board
179.30must be included in all of the commercial breeder's advertisements or promotions that
179.31pertain to animals being sold or traded including, but not limited to, all newspapers,
179.32Internet, radio, or flyers.
179.33    (n) A commercial breeder must notify the board by certified mail or electronically
179.34in a method approved by the board within ten days of any change in address, name,
179.35management, or substantial control and ownership of the business or operation.
179.36    (o) The board must refuse to issue an initial license when a commercial breeder:
180.1(1) is in violation of section 343.21; 343.24; 343.27; 343.28; 343.31; 343.37; 346.37;
180.2346.38; 346.39; 346.44; or 346.155;
180.3(2) has failed to meet any of the requirements of this section and section 347.59;
180.4(3) is in violation of a local ordinance regarding breeders;
180.5    (4) has been convicted, other than a petty misdemeanor conviction, of cruelty to
180.6animals under Minnesota law or a substantially similar animal cruelty law of another
180.7jurisdiction;
180.8    (5) has had a substantially similar license denied, revoked, or suspended by another
180.9federal or state authority within the last five years; or
180.10    (6) has falsified any material information requested by the board.
180.11    (p) A person who has been an officer, agent, direct family member, or employee of a
180.12commercial breeder whose license was revoked or suspended and who was responsible for
180.13or participated in the violation that was a basis for the revocation or suspension may not
180.14be licensed while the revocation or suspension is in effect.
180.15    Subd. 2. Inspections. (a) The board must inspect each licensed facility at least
180.16annually. The inspection must be with the commercial breeder or an agent of the
180.17commercial breeder present. The inspector must submit an inspection report to the board
180.18within ten days of each inspection on a form prepared by the board. The inspection report
180.19form must list separately each law, rule, regulation, and ordinance the facility is not in
180.20compliance with and what correction is required for compliance. The inspection report
180.21form must document the animal inventory on the date of the inspection.
180.22(b) If, after the prelicense inspection, the commercial breeder has two consecutive
180.23years of inspections with no violations, the board must inspect the commercial breeder at
180.24least every two years. If the commercial breeder has any violations during an inspection or
180.25if the board has cause, the board must inspect the commercial breeder at least annually.
180.26(c) If a license to operate is suspended, revoked, or denied, the board must be granted
180.27access to the facility during normal business hours to verify that it is not operating.
180.28    Subd. 3. Record requirements. (a) The commercial breeder must keep records on
180.29each animal at the facility that includes:
180.30(1) the name, address, and United States Department of Agriculture license number,
180.31if applicable, from whom an animal was received; the date the commercial breeder
180.32received the animal; the date of the animal's birth; the breed, sex, color, and identifying
180.33marks of the animal; any identifying tag, tattoo, microchip, or collar number; worming
180.34treatments, vaccinations, and name of the person who administered the vaccination;
180.35medication received by the animal while in the possession of the commercial breeder; and
180.36any disease conditions diagnosed by a veterinarian; and
181.1(2) the name and address of the person or entity to whom an animal was transferred.
181.2(b) The commercial breeder must maintain a copy of the records required to be
181.3kept under this subdivision for two years.
181.4    Subd. 4. Veterinary protocol. (a) A commercial breeder must establish and
181.5maintain a written protocol for disease control and prevention, euthanasia, and veterinary
181.6care of animals at each facility. The initial protocol must be developed under the direction
181.7and supervision of the board. A commercial breeder must maintain a written protocol that
181.8is updated at least every 12 months and that is signed and dated by the board or by a
181.9veterinarian along with the commercial breeder. The written protocol must be available to
181.10the board upon request or at the time of inspection.
181.11(b) An animal sold or otherwise distributed by a commercial breeder must be
181.12accompanied by a veterinary health certificate completed by a veterinarian. The certificate
181.13must be completed within 30 days prior to the sale or distribution and must indicate that
181.14the animal is current with vaccinations and has no signs of infectious or contagious
181.15diseases. The certificate accompanying an adult dog that was not spayed or neutered must
181.16indicate that the dog has no signs of infectious or contagious diseases and was tested for
181.17canine brucellosis with a test approved by the board and found to be negative.
181.18    Subd. 5. Posting of information. The board must maintain and post in a timely
181.19manner on its Web site a list of commercial breeders licensed and in good standing
181.20under this section.

181.21    Sec. 34. [347.59] STANDARDS OF CARE.
181.22    (a) A commercial breeder must comply with chapters 343 and 346.
181.23    (b) A commercial breeder must ensure that animals that are part of the commercial
181.24breeder's breeding business operations are cared for as follows:
181.25    (1) cats must not be housed in outdoor confinement areas;
181.26    (2) animals exercised in groups must be compatible and show no signs of contagious
181.27or infectious disease;
181.28    (3) females in estrus must not be housed in the same confinement area with
181.29unneutered males, except for breeding purposes;
181.30    (4) animals must be provided daily enrichment and must be provided positive physical
181.31contact with human beings and compatible animals at least twice daily unless a veterinarian
181.32determines such activities would adversely affect the health or well-being of the animal;
181.33    (5) animals must not be sold, traded, or given away before the age of eight weeks
181.34unless a veterinarian determines it would be in the best interests of the health or well-being
181.35of the animal;
182.1    (6) the commercial breeder must provide identification and tracking for each animal,
182.2which is not transferable to another animal; and
182.3    (7) the commercial breeder must provide adequate staff to maintain the facility and
182.4observe each animal daily to monitor each animal's health and well-being, and to properly
182.5care for the animals.
182.6    (c) A commercial breeder must not knowingly hire staff or independent contractors
182.7who have been convicted of cruelty to animals under the law of any jurisdiction.
182.8(d) A commercial breeder must comply with any additional standards the board
182.9considers necessary to protect the public health and welfare of animals covered under
182.10sections 347.57 to 347.61. The standards must be established by rule.
182.11(e) A United States Department of Agriculture (USDA) licensed breeder or dealer
182.12who is in compliance with the minimum USDA regulations governing the license holder
182.13as they relate to animal confinement areas as of the effective date of this section does not
182.14have to comply with the minimum confinement area measurements under section 346.39,
182.15subdivision 4, for existing confinement areas in each facility the breeder or dealer owns. If
182.16a USDA-licensed breeder or dealer builds a new confinement area after the effective date
182.17of this section, those minimum standards must meet or exceed the minimum specifications
182.18as they relate to confinement area size under section 346.39, subdivision 4.

182.19    Sec. 35. [347.60] INVESTIGATIONS.
182.20(a) The board must initiate an investigation upon receiving a formal complaint
182.21alleging violations of section 347.58 or 347.59.
182.22(b) When a local animal control authority, a peace officer, or a humane agent
182.23appointed under section 343.01 is made aware of an alleged violation under this chapter
182.24or chapter 343 or 346, committed by a commercial breeder, the local animal control
182.25authority, peace officer, or humane agent appointed under section 343.01 must report the
182.26alleged violation in a timely manner to the board.

182.27    Sec. 36. [347.61] CIVIL ENFORCEMENT.
182.28    Subdivision 1. Correction orders. (a) The board may issue a correction order
182.29requiring a commercial breeder to correct a violation of state statutes, rules, and
182.30regulations governing breeding facilities. The correction order must state the deficiencies
182.31that constitute the violation; the specific statute, rule, or regulation violated; and when
182.32the violation must be corrected.
182.33    (b) A commercial breeder may ask the board to reconsider any portion of the
182.34correction order that the commercial breeder believes is in error. The request for
183.1reconsideration must be made in writing by certified mail or electronically in a method
183.2approved by the board within seven days after receipt of the correction order. The
183.3request for reconsideration does not stay the correction order. The board must respond
183.4to the request for reconsideration within 15 days after receiving a request. The board's
183.5disposition of a request for reconsideration is final. The board may extend the time for
183.6complying with a correction order after receiving a request for reconsideration if necessary.
183.7    (c) The board must reinspect the facility within 15 days after the time for correcting
183.8the violation has passed to determine whether the violation has been corrected. If the
183.9violation has been corrected, the board must notify the commercial breeder in writing that
183.10the commercial breeder is in compliance with the correction order. The board may charge
183.11a reinspection fee to determine if a previous violation has been corrected.
183.12    Subd. 2. Administrative penalty orders. After the inspection required under
183.13subdivision 1, paragraph (c), the board may issue an order requiring violations to
183.14be corrected and administratively assessing monetary penalties for violations. The
183.15administrative penalty order must include a citation of the statute, rule, or regulation
183.16violated; a description of the violation; and the amount of the penalty for each violation. A
183.17single correction order may assess a maximum administrative penalty of $5,000.
183.18    Subd. 3. Injunctive relief. In addition to any other remedy provided by law, the
183.19board may bring an action for injunctive relief in the district court in Ramsey County or in
183.20the county in which a violation of the statutes, rules, or regulations governing the breeding
183.21of cats and dogs occurred to enjoin the violation.
183.22    Subd. 4. Cease and desist. The board must issue an order to cease a practice if its
183.23continuation would result in an immediate risk to animal welfare or public health. An
183.24order issued under this subdivision is effective for a maximum of 72 hours. The board or
183.25its designated agent must seek an injunction or take other administrative action authorized
183.26by law to restrain a practice beyond 72 hours. The issuance of a cease-and-desist order
183.27does not preclude other enforcement action by the board.
183.28    Subd. 5. Refusal to reissue license; license suspension or revocation. (a) The
183.29board may suspend, revoke, or refuse to renew a license as follows:
183.30    (1) for failure to comply with a correction order;
183.31    (2) for failure to pay an administrative penalty;
183.32    (3) for failure to meet the requirements of section 347.58 or 347.59; or
183.33    (4) for falsifying information requested by the board.
183.34A license suspension, revocation, or nonrenewal may be appealed through the Office of
183.35Administrative Hearings. A notice of intent to appeal must be filed in writing with the
183.36board within 20 days after receipt of the notice of suspension, revocation, or nonrenewal.
184.1    (b) The board must revoke a license if a commercial breeder has been convicted
184.2of cruelty to animals under Minnesota law or a substantially similar animal cruelty law
184.3of another jurisdiction, or for the denial, revocation, or suspension of a similar license
184.4by another federal or state authority. A license revocation under this subdivision may be
184.5appealed through the Office of Administrative Hearings. A notice of intent to appeal must
184.6be filed in writing with the board within 20 days after receipt of the notice of revocation.
184.7    (c) A commercial breeder whose license is revoked may not reapply for licensure for
184.8two years after the date of revocation. The license is permanently revoked if the basis for
184.9the revocation was a gross misdemeanor or felony conviction for animal cruelty.
184.10    (d) A commercial breeder whose license is suspended or revoked two times is
184.11permanently barred from licensure.
184.12    Subd. 6. Administrative hearing rights. (a) Except as provided in paragraph
184.13(b), if the board proposes to refuse to renew, suspend, or revoke a license, the board
184.14must first notify the commercial breeder in writing of the proposed action and provide an
184.15opportunity to request a hearing under the contested case provisions of chapter 14. If the
184.16commercial breeder does not request a hearing within 20 days after receipt of the notice of
184.17the proposed action, the board may proceed with the action without a hearing.
184.18    (b) The contested case provisions of chapter 14 do not apply when the board denies
184.19a license based on an applicant's failure to meet the minimum qualifications for licensure.
184.20    (c) A commercial breeder may appeal the amount of an administrative penalty
184.21order through the Office of Administrative Hearings pursuant to the procedures set forth
184.22in chapter 14. A commercial breeder wishing to file an appeal must notify the board in
184.23writing within 20 days after receipt of the administrative penalty order.
184.24    Subd. 7. Other jurisdictions. The board may accept as prima facie evidence of
184.25grounds for an enforcement action under this section any enforcement or disciplinary
184.26action from another jurisdiction, if the underlying violation would be grounds for a
184.27violation under the provisions of this section.
184.28    Subd. 8. Appeals. A final order by the board may be appealed to the Minnesota
184.29Court of Appeals.

184.30    Sec. 37. [347.615] BIOSECURITY; ENTRY INTO FACILITIES.
184.31No law enforcement officer, agent of the board, or other official may enter a
184.32commercial breeder facility unless the person follows either the biosecurity procedure
184.33issued by the board or a reasonable biosecurity procedure maintained and prominently
184.34posted by the commercial breeder at each entry to a facility, whichever is more stringent.
184.35This section does not apply in emergency or exigent circumstances.

185.1    Sec. 38. [347.62] PENALTIES.
185.2    (a) A violation of section 347.58 or 347.59 that results in cruelty or torture to an
185.3animal, as those terms are defined in section 343.20, subdivision 3, is subject to the
185.4penalties in section 343.21, subdivisions 9 and 10, relating to pet or companion animals.
185.5    (b) It is a misdemeanor to falsify information in a license application, annual report,
185.6or record.
185.7    (c) It is a misdemeanor for an unlicensed commercial breeder to advertise animals
185.8for sale.
185.9(d) It is a misdemeanor for a commercial breeder to operate without a license.

185.10    Sec. 39. [347.63] DOG AND CAT BREEDERS LICENSING ACCOUNT;
185.11APPROPRIATION.
185.12A dog and cat breeders licensing account is created in the special revenue fund.
185.13All fees and penalties collected by the board under sections 347.58 to 347.62 must be
185.14deposited in the state treasury and credited to the dog and cat breeders licensing account
185.15in the special revenue fund. Money in the account, including interest on the account, is
185.16annually appropriated to the board to administer those sections.

185.17    Sec. 40. [347.64] APPLICABILITY.
185.18Sections 347.57 to 347.63 do not apply to:
185.19(1) any species other than dogs and cats as they are defined in section 347.57; and
185.20(2) veterinary clinics or veterinary hospitals.

185.21    Sec. 41. Laws 2008, chapter 363, article 5, section 4, subdivision 7, as amended by
185.22Laws 2009, chapter 37, article 1, section 61, is amended to read:

185.23

Subd. 7.Fish and Wildlife Management

123,000

119,000

185.24	Appropriations by Fund
185.25	General	-0-	(427,000)
185.26	Game and Fish	123,000	546,000

185.27$329,000 in 2009 is a reduction for fish and
185.28wildlife management.
185.29$46,000 in 2009 is a reduction in the
185.30appropriation for the Minnesota Shooting
185.31Sports Education Center.
185.32$52,000 in 2009 is a reduction for licensing.
186.1$123,000 in 2008 and $246,000 in 2009 are
186.2from the game and fish fund to implement
186.3fish virus surveillance, prepare infrastructure
186.4to handle possible outbreaks, and implement
186.5control procedures for highest risk waters
186.6and fish production operations. This is a
186.7onetime appropriation.
186.8Notwithstanding Minnesota Statutes, section
186.9297A.94 , paragraph (e), $300,000 in 2009
186.10is from the second year appropriation in
186.11Laws 2007, chapter 57, article 1, section 4,
186.12subdivision 7, from the heritage enhancement
186.13account in the game and fish fund to study,
186.14predesign, and design a shooting sports
186.15facility in the seven-county metropolitan
186.16area for shooting sports facilities. Of this
186.17amount, $100,000 is for a grant to the Itasca
186.18County Gun Club for shooting sports facility
186.19improvements; and the remaining balance
186.20is for trap shooting facility grants under
186.21Minnesota Statutes, section 87A.10. This is
186.22available onetime only and is available until
186.23expended.
186.24$300,000 in 2009 is appropriated from the
186.25game and fish fund for only activities that
186.26improve, enhance, or protect fish and wildlife
186.27resources. This is a onetime appropriation.

186.28    Sec. 42. Laws 2013, chapter 114, article 4, section 47, is amended by adding an
186.29effective date to read:
186.30EFFECTIVE DATE.This section is effective June 1, 2013.
186.31EFFECTIVE DATE.This section is effective retroactively from June 1, 2013.

186.32    Sec. 43. APIARY PROGRAM.
187.1No later than January 15, 2015, the commissioner of agriculture shall report to
187.2the house of representatives and senate committees with jurisdiction over agriculture
187.3regarding re-establishing an apiary program. The report shall include, at a minimum,
187.4recommendations on (1) prevention of diseases and exotic pests; (2) sanitary inspection
187.5of apiaries, including notification of diseases, nuisances, and quarantines; (3) an apiary
187.6location registry, to facilitate agency response to pollinator deaths or illnesses and for
187.7pesticide applicators to be aware of apiaries to avoid impacts, including data practices
187.8and privacy protections; and (4) the public benefit of an apiary program and the fiscal
187.9costs associated with a program.

187.10    Sec. 44. INVASIVE TERRESTRIAL PLANTS AND PESTS CENTER.
187.11    Subdivision 1. Establishment. The Board of Regents of the University of Minnesota
187.12is requested to establish an Invasive Terrestrial Plants and Pests Center to prevent and
187.13minimize the threats posed by terrestrial invasive plants, other weeds, pathogens, and
187.14pests in order to protect the state's prairies, forests, wetlands, and agricultural resources.
187.15With the approval of the board, the College of Food, Agricultural and Natural Resource
187.16Science, in coordination with the College of Biological Sciences, shall administer the
187.17center utilizing the following departments:
187.18(1) Entomology;
187.19(2) Plant Pathology;
187.20(3) Forest Resources;
187.21(4) Horticultural Science;
187.22(5) Fisheries Wildlife and Conservation Biology;
187.23(6) Agronomy and Plant Genetics;
187.24(7) Plant Biology; and
187.25(8) Ecology, Evolution, and Behavior.
187.26The college may also utilize the following research and outreach centers in
187.27achieving the purposes of this section: Cloquet Forestry Center; North Central Research
187.28and Outreach Center; Northwest Research and Outreach Center; Southern Research and
187.29Outreach Center; Southwest Research and Outreach Center; West Central Research and
187.30Outreach Center; Rosemount Research and Outreach Center; Horticultural Research
187.31Center; and Sand Plain Research Center.
187.32    Subd. 2. Purpose. The purpose of the Invasive Terrestrial Plants and Pests Center is
187.33to research and develop effective measures to prevent and minimize the threats posed by
188.1terrestrial invasive plants, pathogens, and pests, including agricultural weeds and pests, in
188.2order to protect the state's native prairies, forests, wetlands, and agricultural resources, by:
188.3(1) creating a prioritized list of pest and plant species that threaten the state's prairies,
188.4forests, wetlands, and agricultural resources and making the list publicly accessible; and
188.5(2) conducting research focused on the species included on the prioritized list
188.6developed under this subdivision that includes:
188.7(i) development of new control methods, including biocontrols;
188.8(ii) development of integrated pest management tools that minimize nontarget
188.9impacts;
188.10(iii) research projects focused on establishment prevention, early detection, and
188.11rapid response;
188.12(iv) an analysis of any consequences related to the management of prioritized species
188.13to the state's water, pollinators, and native prairies and other native species; and
188.14(v) reports on the results that are made publicly accessible.
188.15    Subd. 3. Report. By January 15, 2015, as a condition of the appropriation provided
188.16under this act, the Board of Regents of the University of Minnesota shall submit a report
188.17to the chairs and ranking minority members of the house of representatives and senate
188.18committees and divisions with jurisdiction over the environment and natural resources and
188.19agriculture on: (1) the activities and outcomes of the center; and (2) any recommendations
188.20for additional funding for education, implementation, or other activities.

188.21    Sec. 45. RECOGNITION; COMMERCIAL BREEDER EXCELLENCE.
188.22The Board of Animal Health, in consultation with representatives of the licensed
188.23commercial breeder industry, must develop a program to recognize persons who
188.24demonstrate commercial breeder excellence and exceed the standards and practices
188.25required of commercial breeders under this act.

188.26    Sec. 46. REGISTRATION; INITIAL PRELICENSE INSPECTIONS.
188.27    Subdivision 1. Commercial breeder registration. Beginning July 1, 2014, until
188.28June 30, 2015, a commercial breeder must register each facility it owns or operates by
188.29paying a registration fee not to exceed $250 per facility to the Board of Animal Health.
188.30    Subd. 2. Initial prelicense inspections. Beginning July 1, 2014, the board may
188.31begin the initial prelicense inspections under Minnesota Statutes, section 347.58.
189.1    Subd. 3. Deposits of fees. Fees collected under this section must be deposited in the
189.2dog and cat breeders licensing account in the special revenue fund.

189.3    Sec. 47. RESEARCH DOGS AND CATS.
189.4(a) A higher education research facility that receives public money or a facility that
189.5provides research in collaboration with a higher education facility that confines dogs or
189.6cats for science, education, or research purposes and plans on euthanizing a dog or cat
189.7for other than science, education, or research purposes must first offer the dog or cat
189.8to an animal rescue organization. A facility that is required to offer dogs or cats to an
189.9animal rescue organization under this section may enter into an agreement with the animal
189.10rescue organization to protect the facility. A facility that provides a dog or cat to a rescue
189.11organization under this section is immune from any civil liability that otherwise might
189.12result from its actions, provided that the facility is acting in good faith.
189.13(b) For the purposes of this section, "animal rescue organization" means any
189.14nonprofit organization incorporated for the purpose of rescuing animals in need and
189.15finding permanent, adoptive homes for the animals.
189.16(c) This section expires July 1, 2015.

189.17    Sec. 48. REPEALER.
189.18Minnesota Statutes 2012, section 115A.551, subdivision 2, is repealed.

189.19ARTICLE 14

189.20CLEAN WATER FUND

189.21

Section 1. CLEAN WATER FUND APPROPRIATIONS.

189.22The sums shown in the columns marked "Appropriations" are appropriated to the
189.23agencies and for the purposes specified in this article. The appropriations are from the
189.24clean water fund and are available for the fiscal year indicated for allowable activities
189.25under the Minnesota Constitution, article XI, section 15. The figure "2015" used in this
189.26article means that the appropriations listed under it are available for the fiscal year ending
189.27June 30, 2015. The appropriations in this article are onetime.

189.28				APPROPRIATIONS
189.29				Available for the Year
189.30				Ending June 30
189.31							2015

189.32

Sec. 2. CLEAN WATER

189.33

Subdivision 1.Total Appropriation

$

2,450,000

190.1The amounts that may be spent for each
190.2purpose are specified in the following
190.3sections.

190.4

Subd. 2.Availability of Appropriation

190.5Money appropriated in this article may
190.6not be spent on activities unless they are
190.7directly related to and necessary for a
190.8specific appropriation. Money appropriated
190.9in this article must be spent in accordance
190.10with Minnesota Management and Budget's
190.11Guidance to Agencies on Legacy Fund
190.12Expenditure. Notwithstanding Minnesota
190.13Statutes, section 16A.28, and unless
190.14otherwise specified in this article, the
190.15appropriations are available until June 30,
190.162016. If a project receives federal funds, the
190.17time period of the appropriation is extended
190.18to equal the availability of federal funding.

190.19

Sec. 3. POLLUTION CONTROL AGENCY

$

200,000

190.20$200,000 in 2015 is for coordination with
190.21the state of Wisconsin and the National
190.22Park Service on comprehensive phosphorus
190.23reduction activities in the Lake St. Croix
190.24portion of the St. Croix River. The agency
190.25shall work with the St. Croix Basin Water
190.26Resources Planning Team and the St. Croix
190.27River Association in implementing the
190.28water monitoring and phosphorus reduction
190.29activities.

190.30 190.31

Sec. 4. BOARD OF WATER AND SOIL RESOURCES

$

1,400,000

190.32$150,000 in 2015 is to collaborate with the
190.33commissioner of health and local units of
190.34government in the North and East Metro
191.1Groundwater Management Area through
191.2development or implementation of local
191.3water management plans as provided for in
191.4Minnesota Statutes, chapters 103B, 103C,
191.5103D, and 114D, to identify strategies
191.6for groundwater protection and potential
191.7locations for infiltration projects and
191.8practices, including potential wetland
191.9restoration, enhancement, or creation that
191.10would contribute to groundwater recharge,
191.11surface water enhancement, and wellhead
191.12protection. Areas in the Mississippi River
191.13flyway, or that also provide habitat for
191.14waterfowl production, fish spawning, or
191.15other fish or wildlife habitat, should be
191.16specifically identified. This appropriation is
191.17available until June 30, 2017.
191.18$250,000 in 2015 is to collaborate with
191.19the commissioner of health and local units
191.20of government in the Bonanza Valley
191.21Groundwater Management Area and Straight
191.22River Groundwater Management Area
191.23through development or implementation
191.24of local water management plans as
191.25provided for in Minnesota Statutes, chapters
191.26103B, 103C, 103D, and 114D, to identify
191.27strategies for groundwater protection and
191.28potential locations for infiltration projects
191.29and practices, including potential wetland
191.30restoration, enhancement, or creation that
191.31would contribute to groundwater recharge
191.32and wellhead protection. Areas in the
191.33Mississippi River flyway, or that also provide
191.34habitat for waterfowl production, fish
191.35spawning, or other fish or wildlife habitat,
192.1should be specifically identified. This
192.2appropriation is available until June 30, 2017.
192.3$100,000 in 2015 is for a workshop for public
192.4works professionals or other local officials
192.5that promote landscape best management
192.6practices that keep water on the land,
192.7including rain gardens, within the North and
192.8East Metro Groundwater Management Area
192.9and for grants to local units of government
192.10in the North and East Metro Groundwater
192.11Management Area to keep water on the land.
192.12$900,000 in 2015 is added to the
192.13appropriation to the Board of Water and Soil
192.14Resources for grants in Laws 2013, chapter
192.15137, article 2, section 7, paragraph (b).
192.16The board may use the appropriation to
192.17update the Minnesota Public Drainage
192.18Manual and the Minnesota Public Drainage
192.19Law Overview for Decision Makers in
192.20Laws 2013, chapter 137, article 2, section
192.217, paragraph (e), for contracts or grants to
192.22achieve the purposes of the appropriation.

192.23

Sec. 5. METROPOLITAN COUNCIL

$

550,000

192.24$400,000 in 2015 from the clean water fund
192.25is to develop a plan for the North and East
192.26Metro Groundwater Management Area and
192.27to predesign preferred long-term solutions
192.28to address regional water supply and
192.29sustainability issues, including enhancing
192.30surface waters, in collaboration with the
192.31commissioner of natural resources. The plan,
192.32incorporating standard engineering practices,
192.33must address construction, operation, and
192.34maintenance of infrastructure needed to
193.1implement the preferred solutions and,
193.2in consultation with the Public Facilities
193.3Authority, include recommendations for
193.4funding that would fairly allocate the costs
193.5to users and other beneficiaries. As the
193.6plan is developed, the council must meet
193.7periodically with the local water supply work
193.8group to review details of the plan. This
193.9appropriation is available until June 30, 2015.
193.10$100,000 in 2015 from the clean water fund
193.11is to investigate, in collaboration with the
193.12Board of Water and Soil Resources and the
193.13Pollution Control Agency, the feasibility
193.14of collecting and treating storm water in
193.15the North and East Metro Groundwater
193.16Management Area to enhance surface waters
193.17and groundwater recharge.
193.18$50,000 in 2015 from the clean water fund is
193.19to partner with the University of Minnesota's
193.20Minnesota Technical Assistance Program
193.21(MnTAP) to identify opportunities for
193.22industrial water users to reduce or reuse their
193.23water consumption within the North and East
193.24Metro Groundwater Management Area.

193.25

Sec. 6. DEPARTMENT OF HEALTH

$

300,000

193.26$300,000 in 2015 from the clean water
193.27fund is to collaborate with the Board of
193.28Water and Soil Resources and local units
193.29of government in the North and East Metro
193.30Groundwater Management Area, Bonanza
193.31Valley Groundwater Management Area, and
193.32Straight River Groundwater Management
193.33Area and to update wellhead protection areas
193.34within groundwater management areas, in
194.1cooperation with the Board of Water and
194.2Soil Resources, to meet the sustainability
194.3standards of Minnesota Statutes, chapter
194.4103G, including Minnesota Statutes, section
194.5103G.287, subdivision 5, and to be available
194.6for the requirements of Minnesota Statutes,
194.7chapter 103H. The update should identify the
194.8most critical areas that need protecting.

194.9    Sec. 7. REPURPOSE OF 2011 APPROPRIATION.
194.10The remaining balance of the appropriation in Laws 2011, First Special Session
194.11chapter 6, article 2, section 6, paragraph (g), to the commissioner of natural resources
194.12for shoreland stewardship, TMDL implementation coordination, providing technical
194.13assistance, and maintaining and updating data may be used for stream flow and
194.14groundwater monitoring, including the installation of additional monitoring gauges, and
194.15monitoring necessary to determine the relationship between stream flow and groundwater,
194.16and is available until June 30, 2015.
194.17EFFECTIVE DATE.This section is effective the day following final enactment.

194.18    Sec. 8. CANCELLATION OF 2009 APPROPRIATION.
194.19The unspent balance of the appropriation to the commissioner of the Pollution
194.20Control Agency for grants under Minnesota Statutes, section 116.195, in Laws 2009,
194.21chapter 172, article 2, section 4, paragraph (c), as amended by Laws 2011, First Special
194.22Session chapter 6, article 2, section 23, is canceled.
194.23EFFECTIVE DATE.This section is effective the day following final enactment.

194.24    Sec. 9. STREAM GAUGE DATA.
194.25The commissioner of natural resources shall provide an easily accessible link to the
194.26Department of Natural Resources' and the Pollution Control Agency's cooperative stream
194.27gauging data, including lake level information for existing stations, including White Bear
194.28Lake and Turtle Lake, on the department's Web site.

194.29ARTICLE 15

194.30GENERAL EDUCATION

194.31    Section 1. Minnesota Statutes 2012, section 123A.05, subdivision 2, is amended to read:
195.1    Subd. 2. Reserve revenue. Each district that is a member of an area learning center
195.2or alternative learning program must reserve revenue in an amount equal to the sum of
195.3(1) at least 90 and no more than 100 percent of the district average general education
195.4revenue per adjusted pupil unit minus an amount equal to the product of the formula
195.5allowance according to section 126C.10, subdivision 2, times .0485 .0466, calculated
195.6without basic skills revenue, local optional revenue, and transportation sparsity revenue,
195.7times the number of pupil units attending an area learning center or alternative learning
195.8program under this section, plus (2) the amount of basic skills revenue generated by pupils
195.9attending the area learning center or alternative learning program. The amount of reserved
195.10revenue under this subdivision may only be spent on program costs associated with the
195.11area learning center or alternative learning program.
195.12EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
195.13and later.

195.14    Sec. 2. Minnesota Statutes 2013 Supplement, section 123B.75, subdivision 5, is
195.15amended to read:
195.16    Subd. 5. Levy recognition. For fiscal year 2011 2014 and later years, in June of
195.17each year, the school district must recognize as revenue, in the fund for which the levy
195.18was made, the lesser of:
195.19(1) the sum of May, June, and July school district tax settlement revenue received in
195.20that calendar year, plus general education aid according to section 126C.13, subdivision
195.214 , received in July and August of that calendar year; or
195.22(2) the sum of:
195.23(i) the greater of 48.6 percent of the referendum levy certified according to section
195.24126C.17 in the prior calendar year, or 31 percent of the referendum levy certified
195.25according to section 126C.17 in calendar year 2000; plus
195.26(ii) the entire amount of the levy certified in the prior calendar year according
195.27to section 124D.4531, 124D.86, subdivision 4, for school districts receiving revenue
195.28under sections 124D.86, subdivision 3, clauses (1), (2), and (3); 124D.862, for Special
195.29School District No. 1, Minneapolis, Independent School District No. 625, St. Paul, and
195.30Independent School District No. 709, Duluth; 126C.41, subdivisions 1, 2, paragraph (a),
195.31and 3, paragraphs (b), (c), and (d); 126C.43, subdivision 2; and 126C.48, subdivision 6; plus
195.32(iii) 48.6 percent of the amount of the levy certified in the prior calendar year for the
195.33school district's general and community service funds, plus or minus auditor's adjustments,
195.34that remains after subtracting the referendum levy certified according to section 126C.17
195.35and the amount recognized according to item (ii).

196.1    Sec. 3. Minnesota Statutes 2012, section 124D.09, subdivision 9, is amended to read:
196.2    Subd. 9. Enrollment priority. (a) A postsecondary institution shall give priority to
196.3its postsecondary students when enrolling 10th, 11th, and 12th grade pupils in its courses.
196.4A postsecondary institution may provide information about its programs to a secondary
196.5school or to a pupil or parent and it may advertise or otherwise recruit or solicit a secondary
196.6pupil to enroll in its programs on educational and programmatic grounds only except,
196.7notwithstanding other law to the contrary, and for the 2014-2015 through 2019-2020
196.8school years only, an eligible postsecondary institution may advertise or otherwise recruit
196.9or solicit a secondary pupil residing in a school district with 700 students or more in
196.10grades 10, 11, and 12, to enroll in its programs on educational, programmatic, or financial
196.11grounds. An institution must not enroll secondary pupils, for postsecondary enrollment
196.12options purposes, in remedial, developmental, or other courses that are not college level
196.13 except when a student eligible to participate in the graduation incentives program under
196.14section 124D.68 enrolls full time in a middle or early college program specifically
196.15designed to allow the student to earn dual high school and college credit. In this case, the
196.16student shall receive developmental college credit and not college credit for completing
196.17remedial or developmental courses. Once a pupil has been enrolled in a any postsecondary
196.18course under this section, the pupil shall not be displaced by another student.
196.19(b) If a postsecondary institution enrolls a secondary school pupil in a course
196.20under this section, the postsecondary institution also must enroll in the same course an
196.21otherwise enrolled and qualified postsecondary student who qualifies as a veteran under
196.22section 197.447, and demonstrates to the postsecondary institution's satisfaction that the
196.23institution's established enrollment timelines were not practicable for that student.
196.24EFFECTIVE DATE.This section is effective July 1, 2014.

196.25    Sec. 4. Minnesota Statutes 2012, section 124D.09, subdivision 13, is amended to read:
196.26    Subd. 13. Financial arrangements. For a pupil enrolled in a course under this
196.27section, the department must make payments according to this subdivision for courses that
196.28were taken for secondary credit.
196.29The department must not make payments to a school district or postsecondary
196.30institution for a course taken for postsecondary credit only. The department must not
196.31make payments to a postsecondary institution for a course from which a student officially
196.32withdraws during the first 14 days of the quarter or semester or who has been absent from
196.33the postsecondary institution for the first 15 consecutive school days of the quarter or
196.34semester and is not receiving instruction in the home or hospital.
196.35A postsecondary institution shall receive the following:
197.1(1) for an institution granting quarter credit, the reimbursement per credit hour shall
197.2be an amount equal to 88 percent of the product of the formula allowance minus $415
197.3 $425, multiplied by 1.3 1.2, and divided by 45; or
197.4(2) for an institution granting semester credit, the reimbursement per credit hour
197.5shall be an amount equal to 88 percent of the product of the general revenue formula
197.6allowance minus $415 $425, multiplied by 1.3 1.2, and divided by 30.
197.7The department must pay to each postsecondary institution 100 percent of the
197.8amount in clause (1) or (2) within 30 days of receiving initial enrollment information
197.9each quarter or semester. If changes in enrollment occur during a quarter or semester,
197.10the change shall be reported by the postsecondary institution at the time the enrollment
197.11information for the succeeding quarter or semester is submitted. At any time the
197.12department notifies a postsecondary institution that an overpayment has been made, the
197.13institution shall promptly remit the amount due.
197.14EFFECTIVE DATE.This section is effective for fiscal year 2015 and later.

197.15    Sec. 5. Minnesota Statutes 2013 Supplement, section 124D.11, subdivision 1, is
197.16amended to read:
197.17    Subdivision 1. General education revenue. General education revenue must be
197.18paid to a charter school as though it were a district. The general education revenue
197.19for each adjusted pupil unit is the state average general education revenue per pupil
197.20unit, plus the referendum equalization aid allowance in the pupil's district of residence,
197.21minus an amount equal to the product of the formula allowance according to section
197.22126C.10, subdivision 2 , times .0466, calculated without declining enrollment revenue,
197.23local optional revenue, basic skills revenue, extended time revenue, pension adjustment
197.24revenue, transition revenue, and transportation sparsity revenue, plus declining enrollment
197.25revenue, basic skills revenue, extended time revenue, pension adjustment revenue, and
197.26transition revenue as though the school were a school district. The general education
197.27revenue for each extended time pupil unit equals $4,794.
197.28EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
197.29and later.

197.30    Sec. 6. Minnesota Statutes 2012, section 124D.59, subdivision 2, is amended to read:
197.31    Subd. 2. English learner. (a) "English learner" means a pupil in kindergarten
197.32through grade 12 who meets the following requirements:
198.1(1) the pupil, as declared by a parent or guardian first learned a language other than
198.2English, comes from a home where the language usually spoken is other than English, or
198.3usually speaks a language other than English; and
198.4(2) the pupil is determined by a valid assessment measuring the pupil's English
198.5language proficiency and by developmentally appropriate measures, which might include
198.6observations, teacher judgment, parent recommendations, or developmentally appropriate
198.7assessment instruments, to lack the necessary English skills to participate fully in
198.8academic classes taught in English.
198.9(b) Notwithstanding paragraph (a), A pupil enrolled in a Minnesota public school
198.10in grades any grade 4 through 12 who was enrolled in a Minnesota public school on
198.11the dates during in the previous school year when a commissioner provided took a
198.12commissioner-provided assessment that measures measuring the pupil's emerging
198.13academic English was administered, shall not be counted as an English learner in
198.14calculating English learner pupil units under section 126C.05, subdivision 17, and shall not
198.15 generate state English learner aid under section 124D.65, subdivision 5, unless if the pupil
198.16scored below the state cutoff score or is otherwise counted as a nonproficient participant
198.17on an the assessment measuring the pupil's emerging academic English provided by the
198.18commissioner during the previous school year, or, in the judgment of the pupil's classroom
198.19teachers, consistent with section 124D.61, clause (1), the pupil is unable to demonstrate
198.20academic language proficiency in English, including oral academic language, sufficient to
198.21successfully and fully participate in the general core curriculum in the regular classroom.
198.22(c) Notwithstanding paragraphs (a) and (b), a pupil in kindergarten through grade
198.2312 shall not be counted as an English learner in calculating English learner pupil units
198.24under section 126C.05, subdivision 17, and shall not generate state English learner aid
198.25under section 124D.65, subdivision 5, if:
198.26(1) the pupil is not enrolled during the current fiscal year in an educational program
198.27for English learners in accordance with under sections 124D.58 to 124D.64; or
198.28(2) the pupil has generated five six or more years of average daily membership in
198.29Minnesota public schools since July 1, 1996.
198.30EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
198.31and later.

198.32    Sec. 7. [124D.695] APPROVED RECOVERY PROGRAM FUNDING.
198.33    Subdivision 1. Approved recovery program. "Approved recovery program" means
198.34a course of instruction offered by a recovery school that provides academic services,
198.35assistance with recovery, and continuing care to students recovering from substance abuse
199.1or dependency. A recovery program may be offered in a transitional academic setting
199.2designed to meet graduation requirements. A recovery program must be approved by the
199.3commissioner of education. The commissioner may specify the manner and form of the
199.4application for the approval of a recovery school or recovery program.
199.5    Subd. 2. Eligibility. An approved recovery program is eligible for an annual
199.6recovery program grant of up to $125,000 to pay for a portion of the costs of recovery
199.7program support staff under this section. "Recovery program support staff" means licensed
199.8alcohol and chemical dependency counselors, licensed school counselors, licensed school
199.9psychologists, licensed school nurses, and licensed school social workers.
199.10EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
199.11and later.

199.12    Sec. 8. Minnesota Statutes 2013 Supplement, section 126C.05, subdivision 15, is
199.13amended to read:
199.14    Subd. 15. Learning year pupil units. (a) When a pupil is enrolled in a learning
199.15year program under section 124D.128, an area learning center or an alternative learning
199.16program approved by the commissioner under sections 123A.05 and 123A.06, or a
199.17contract alternative program under section 124D.68, subdivision 3, paragraph (d), or
199.18subdivision 4, for more than 1,020 hours in a school year for a secondary student, more
199.19than 935 hours in a school year for an elementary student, more than 850 hours in a school
199.20year for a kindergarten student without a disability in an all-day kindergarten program,
199.21or more than 425 hours in a school year for a half-day kindergarten student without a
199.22disability, that pupil may be counted as more than one pupil in average daily membership
199.23for purposes of section 126C.10, subdivision 2a. The amount in excess of one pupil must
199.24be determined by the ratio of the number of hours of instruction provided to that pupil in
199.25excess of: (i) the greater of 1,020 hours or the number of hours required for a full-time
199.26secondary pupil in the district to 1,020 for a secondary pupil; (ii) the greater of 935 hours
199.27or the number of hours required for a full-time elementary pupil in the district to 935 for
199.28an elementary pupil in grades 1 through 6; and (iii) the greater of 425 850 hours or the
199.29number of hours required for a full-time kindergarten student without a disability in the
199.30district to 425 850 for a kindergarten student without a disability; and (iv) the greater of
199.31425 hours or the number of hours required for a half-time kindergarten student without a
199.32disability in the district to 425 for a half-day kindergarten student without a disability.
199.33Hours that occur after the close of the instructional year in June shall be attributable to
199.34the following fiscal year. A student in kindergarten or grades 1 through 12 must not be
199.35counted as more than 1.2 pupils in average daily membership under this subdivision.
200.1(b)(i) To receive general education revenue for a pupil in an area learning center or
200.2alternative learning program that has an independent study component, a district must meet
200.3the requirements in this paragraph. The district must develop, for the pupil, a continual
200.4learning plan consistent with section 124D.128, subdivision 3. Each school district that has
200.5an area learning center or alternative learning program must reserve revenue in an amount
200.6equal to at least 90 and not more than 100 percent of the district average general education
200.7revenue per pupil unit, minus an amount equal to the product of the formula allowance
200.8according to section 126C.10, subdivision 2, times .0466, calculated without basic skills
200.9revenue, local optional revenue, and transportation sparsity revenue, times the number of
200.10pupil units generated by students attending an area learning center or alternative learning
200.11program. The amount of reserved revenue available under this subdivision may only be
200.12spent for program costs associated with the area learning center or alternative learning
200.13program. Basic skills revenue generated according to section 126C.10, subdivision 4, by
200.14pupils attending the eligible program must be allocated to the program.
200.15(ii) General education revenue for a pupil in a state-approved alternative program
200.16without an independent study component must be prorated for a pupil participating for less
200.17than a full year, or its equivalent. The district must develop a continual learning plan for
200.18the pupil, consistent with section 124D.128, subdivision 3. Each school district that has an
200.19area learning center or alternative learning program must reserve revenue in an amount
200.20equal to at least 90 and not more than 100 percent of the district average general education
200.21revenue per pupil unit, minus an amount equal to the product of the formula allowance
200.22according to section 126C.10, subdivision 2, times .0466, calculated without basic skills
200.23revenue, local optional revenue, and transportation sparsity revenue, times the number of
200.24pupil units generated by students attending an area learning center or alternative learning
200.25program. The amount of reserved revenue available under this subdivision may only be
200.26spent for program costs associated with the area learning center or alternative learning
200.27program. Basic skills revenue generated according to section 126C.10, subdivision 4, by
200.28pupils attending the eligible program must be allocated to the program.
200.29(iii) General education revenue for a pupil in a state-approved alternative program
200.30that has an independent study component must be paid for each hour of teacher contact
200.31time and each hour of independent study time completed toward a credit or graduation
200.32standards necessary for graduation. Average daily membership for a pupil shall equal the
200.33number of hours of teacher contact time and independent study time divided by 1,020.
200.34(iv) For a state-approved alternative program having an independent study
200.35component, the commissioner shall require a description of the courses in the program, the
201.1kinds of independent study involved, the expected learning outcomes of the courses, and
201.2the means of measuring student performance against the expected outcomes.

201.3    Sec. 9. Minnesota Statutes 2013 Supplement, section 126C.10, subdivision 2, is
201.4amended to read:
201.5    Subd. 2. Basic revenue. For fiscal year 2014, the basic revenue for each district
201.6equals the formula allowance times the adjusted marginal cost pupil units for the school
201.7year. For fiscal year 2015 and later, the basic revenue for each district equals the formula
201.8allowance times the adjusted pupil units for the school year. The formula allowance for
201.9fiscal year 2013 is $5,224. The formula allowance for fiscal year 2014 is $5,302. The
201.10formula allowance for fiscal year 2015 and later is $5,806 $5,831.
201.11EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
201.12and later.

201.13    Sec. 10. Minnesota Statutes 2013 Supplement, section 126C.10, subdivision 2a,
201.14is amended to read:
201.15    Subd. 2a. Extended time revenue. (a) A school district's extended time revenue for
201.16fiscal year 2014 is equal to the product of $4,601 and the sum of the adjusted marginal
201.17cost pupil units of the district for each pupil in average daily membership in excess of 1.0
201.18and less than 1.2 according to section 126C.05, subdivision 8. A school district's extended
201.19time revenue for fiscal year 2015 and later is equal to the product of $5,017 and the sum
201.20of the adjusted pupil units of the district for each pupil in average daily membership in
201.21excess of 1.0 and less than 1.2 according to section 126C.05, subdivision 8.
201.22(b) A school district's extended time revenue may be used for extended day
201.23programs, extended week programs, summer school, and other programming authorized
201.24under the learning year program.
201.25EFFECTIVE DATE.This section is effective the day following final enactment
201.26and applies to revenue for fiscal year 2014 and later.

201.27    Sec. 11. Minnesota Statutes 2013 Supplement, section 126C.10, subdivision 2c,
201.28is amended to read:
201.29    Subd. 2c. Small schools revenue. (a) A school district, not including a charter
201.30school, is eligible for small schools revenue equal to the greater of the calculation under
201.31paragraph (b) or (d).
201.32(b) The product of:
202.1(1) $544;
202.2(2) the district's adjusted pupil units for that year; and
202.3(3) the greater of zero or the ratio of (i) 960 less the district's adjusted pupil units
202.4for that year, to (ii) 960.
202.5(c) For the purpose of revenue calculated under paragraph (d), "district" includes a
202.6qualifying high school under subdivision 6 that is located in a district with more than one
202.7qualifying high school under subdivision 6 at least two high schools.
202.8(d) The product of:
202.9(1) $544;
202.10(2) the district's adjusted pupil units for that year; and
202.11(3) the greater of zero or the ratio of (i) 960 less the district's adjusted pupil units
202.12for that year, to (ii) 960.
202.13EFFECTIVE DATE.This section is effective for revenue in fiscal year 2015 and
202.14later.

202.15    Sec. 12. Minnesota Statutes 2013 Supplement, section 126C.10, subdivision 24,
202.16is amended to read:
202.17    Subd. 24. Equity revenue. (a) A school district qualifies for equity revenue if:
202.18    (1) the school district's adjusted pupil unit amount of basic revenue, transition
202.19revenue, and referendum revenue is less than the value of the school district at or
202.20immediately above the 95th percentile of school districts in its equity region for those
202.21revenue categories; and
202.22    (2) the school district's administrative offices are not located in a city of the first
202.23class on July 1, 1999.
202.24    (b) Equity revenue for a qualifying district that receives referendum revenue under
202.25section 126C.17, subdivision 4, equals the product of (1) the district's adjusted pupil
202.26units for that year; times (2) the sum of (i) $14, plus (ii) $80, times the school district's
202.27equity index computed under subdivision 27.
202.28    (c) Equity revenue for a qualifying district that does not receive referendum revenue
202.29under section 126C.17, subdivision 4, equals the product of the district's adjusted pupil
202.30units for that year times $14.
202.31    (d) A school district's equity revenue is increased by the greater of zero or an amount
202.32equal to the district's resident adjusted pupil units times the difference between ten percent
202.33of the statewide average amount of referendum revenue per resident adjusted pupil unit for
202.34that year and the district's referendum revenue per resident adjusted pupil unit. A school
202.35district's revenue under this paragraph must not exceed $100,000 for that year.
203.1    (e) A school district's equity revenue for a school district located in the metro equity
203.2region equals the amount computed in paragraphs (b), (c), and (d) multiplied by 1.25.
203.3    (f) A school district's additional equity revenue equals $50 times its adjusted pupil
203.4units.
203.5EFFECTIVE DATE.The changes in paragraph (d) are effective for revenue for
203.6fiscal year 2015 and later.

203.7    Sec. 13. Minnesota Statutes 2012, section 126C.10, subdivision 25, is amended to read:
203.8    Subd. 25. Regional equity gap. The regional equity gap equals the difference
203.9between the value of the school district at or immediately above the fifth percentile of
203.10adjusted general revenue per adjusted marginal cost pupil unit and the value of the school
203.11district at or immediately above the 95th percentile of adjusted general revenue per
203.12adjusted marginal cost pupil unit.
203.13EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
203.14and later.

203.15    Sec. 14. Minnesota Statutes 2012, section 126C.10, subdivision 26, is amended to read:
203.16    Subd. 26. District equity gap. A district's equity gap equals the greater of zero
203.17or the difference between the district's adjusted general revenue and the value of the
203.18school district at or immediately above the regional 95th percentile of adjusted general
203.19revenue per adjusted marginal cost pupil unit.
203.20EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
203.21and later.

203.22    Sec. 15. Minnesota Statutes 2013 Supplement, section 126C.10, subdivision 31,
203.23is amended to read:
203.24    Subd. 31. Transition revenue. (a) A district's transition allowance equals the
203.25sum of the transition revenue the district would have received for fiscal year 2015 under
203.26Minnesota Statutes 2012, section 126C.10, subdivisions 31, 31a, and 31c, and the greater
203.27of zero or the difference between:
203.28    (1) the sum of:
203.29    (i) the general education revenue the district would have received for fiscal year
203.302015 according to Minnesota Statutes 2012, section 126C.10;
203.31(ii) the integration revenue the district received for fiscal year 2013 under Minnesota
203.32Statutes 2012, section 124D.86;
204.1(iii) the pension adjustment the district would have received for fiscal year 2015
204.2under Minnesota Statutes 2012, section 127A.50;
204.3(iv) the special education aid the district would have received for fiscal year 2015
204.4under Minnesota Statutes 2012, section 125A.76; and
204.5(v) the special education excess cost aid the district would have received for fiscal
204.6year 2015 under Minnesota Statutes 2012, section 125A.79; and
204.7(2) the sum of the district's:
204.8(i) general education revenue for fiscal year 2015 excluding transition revenue
204.9under this section;
204.10(ii) achievement and integration revenue for fiscal year 2015 under section
204.11124D.862 ; and
204.12(iii) special education aid for fiscal year 2015 under section 125A.76; and
204.13(iv) alternative teacher compensation revenue for fiscal year 2015 under section
204.14122A.415,
204.15divided by the number of adjusted pupil units for fiscal year 2015.
204.16    (b) A district's transition revenue for fiscal year 2015 and later equals the product of
204.17the district's transition allowance times the district's adjusted pupil units.
204.18EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
204.19and later.

204.20    Sec. 16. Minnesota Statutes 2013 Supplement, section 126C.17, subdivision 6, is
204.21amended to read:
204.22    Subd. 6. Referendum equalization levy. (a) For fiscal year 2003 and later,
204.23 A district's referendum equalization levy equals the sum of the first tier referendum
204.24equalization levy, the second tier referendum equalization levy, and the third tier
204.25referendum equalization levy.
204.26(b) A district's first tier referendum equalization levy equals the district's first tier
204.27referendum equalization revenue times the lesser of one or the ratio of the district's
204.28referendum market value per resident pupil unit to $880,000.
204.29(c) A district's second tier referendum equalization levy equals the district's second
204.30tier referendum equalization revenue times the lesser of one or the ratio of the district's
204.31referendum market value per resident pupil unit to $510,000.
204.32(d) A district's third tier referendum equalization levy equals the district's third
204.33tier referendum equalization revenue times the lesser of one or the ratio of the district's
204.34referendum market value per resident pupil unit to $290,000.

205.1    Sec. 17. Minnesota Statutes 2013 Supplement, section 126C.17, subdivision 7b,
205.2is amended to read:
205.3    Subd. 7b. Referendum aid guarantee. (a) Notwithstanding subdivision 7, the sum
205.4of a district's referendum equalization aid and location equity aid under section 126C.10,
205.5subdivision 2e, for fiscal year 2015 must not be less than the sum of the referendum
205.6equalization aid the district would have received for fiscal year 2015 under Minnesota
205.7Statutes 2012, section 126C.17, subdivision 7, and the adjustment the district would have
205.8received under Minnesota Statutes 2012, section 127A.47, subdivision 7, paragraphs
205.9(a), (b), and (c).
205.10(b) Notwithstanding subdivision 7, the sum of referendum equalization aid and
205.11location equity aid under section 126C.10, subdivision 2e, for fiscal year 2016 and later,
205.12for a district qualifying for additional aid under paragraph (a) for fiscal year 2015, must
205.13not be less than the product of (1) the district's referendum equalization aid for fiscal year
205.142015, times (2) the lesser of one or the ratio of the district's referendum revenue for that
205.15school year to the district's referendum revenue for fiscal year 2015, times (3) the lesser
205.16of one or the ratio of the district's referendum market value used for fiscal year 2015
205.17referendum equalization calculations to the district's referendum market value used for
205.18that year's referendum equalization calculations.
205.19EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
205.20and later.

205.21    Sec. 18. Minnesota Statutes 2013 Supplement, section 126C.17, subdivision 9, is
205.22amended to read:
205.23    Subd. 9. Referendum revenue. (a) The revenue authorized by section 126C.10,
205.24subdivision 1 , may be increased in the amount approved by the voters of the district
205.25at a referendum called for the purpose. The referendum may be called by the board.
205.26The referendum must be conducted one or two calendar years before the increased levy
205.27authority, if approved, first becomes payable. Only one election to approve an increase
205.28may be held in a calendar year. Unless the referendum is conducted by mail under
205.29subdivision 11, paragraph (a), the referendum must be held on the first Tuesday after the
205.30first Monday in November. The ballot must state the maximum amount of the increased
205.31revenue per adjusted pupil unit. The ballot may state a schedule, determined by the board,
205.32of increased revenue per adjusted pupil unit that differs from year to year over the number
205.33of years for which the increased revenue is authorized or may state that the amount shall
205.34increase annually by the rate of inflation. For this purpose, the rate of inflation shall be the
205.35annual inflationary increase calculated under subdivision 2, paragraph (b). The ballot may
206.1state that existing referendum levy authority is expiring. In this case, the ballot may also
206.2compare the proposed levy authority to the existing expiring levy authority, and express
206.3the proposed increase as the amount, if any, over the expiring referendum levy authority.
206.4The ballot must designate the specific number of years, not to exceed ten, for which the
206.5referendum authorization applies. The ballot, including a ballot on the question to revoke
206.6or reduce the increased revenue amount under paragraph (c), must abbreviate the term
206.7"per adjusted pupil unit" as "per pupil." The notice required under section 275.60 may
206.8be modified to read, in cases of renewing existing levies at the same amount per pupil
206.9as in the previous year:
206.10"BY VOTING "YES" ON THIS BALLOT QUESTION, YOU ARE VOTING
206.11TO EXTEND AN EXISTING PROPERTY TAX REFERENDUM THAT IS
206.12SCHEDULED TO EXPIRE."
206.13    The ballot may contain a textual portion with the information required in this
206.14subdivision and a question stating substantially the following:
206.15    "Shall the increase in the revenue proposed by (petition to) the board of .........,
206.16School District No. .., be approved?"
206.17    If approved, an amount equal to the approved revenue per adjusted pupil unit times
206.18the adjusted pupil units for the school year beginning in the year after the levy is certified
206.19shall be authorized for certification for the number of years approved, if applicable, or
206.20until revoked or reduced by the voters of the district at a subsequent referendum.
206.21    (b) The board must prepare and deliver by first class mail at least 15 days but no more
206.22than 30 days before the day of the referendum to each taxpayer a notice of the referendum
206.23and the proposed revenue increase. The board need not mail more than one notice to any
206.24taxpayer. For the purpose of giving mailed notice under this subdivision, owners must be
206.25those shown to be owners on the records of the county auditor or, in any county where
206.26tax statements are mailed by the county treasurer, on the records of the county treasurer.
206.27Every property owner whose name does not appear on the records of the county auditor
206.28or the county treasurer is deemed to have waived this mailed notice unless the owner
206.29has requested in writing that the county auditor or county treasurer, as the case may be,
206.30include the name on the records for this purpose. The notice must project the anticipated
206.31amount of tax increase in annual dollars for typical residential homesteads, agricultural
206.32homesteads, apartments, and commercial-industrial property within the school district.
206.33    The notice for a referendum may state that an existing referendum levy is expiring
206.34and project the anticipated amount of increase over the existing referendum levy in
206.35the first year, if any, in annual dollars for typical residential homesteads, agricultural
206.36homesteads, apartments, and commercial-industrial property within the district.
207.1    The notice must include the following statement: "Passage of this referendum will
207.2result in an increase in your property taxes." However, in cases of renewing existing levies,
207.3the notice may include the following statement: "Passage of this referendum extends an
207.4existing operating referendum at the same amount per pupil as in the previous year."
207.5    (c) A referendum on the question of revoking or reducing the increased revenue
207.6amount authorized pursuant to paragraph (a) may be called by the board. A referendum to
207.7revoke or reduce the revenue amount must state the amount per resident marginal cost
207.8 adjusted pupil unit by which the authority is to be reduced. Revenue authority approved
207.9by the voters of the district pursuant to paragraph (a) must be available to the school
207.10district at least once before it is subject to a referendum on its revocation or reduction for
207.11subsequent years. Only one revocation or reduction referendum may be held to revoke or
207.12reduce referendum revenue for any specific year and for years thereafter.
207.13    (d) The approval of 50 percent plus one of those voting on the question is required to
207.14pass a referendum authorized by this subdivision.
207.15    (e) At least 15 days before the day of the referendum, the district must submit a
207.16copy of the notice required under paragraph (b) to the commissioner and to the county
207.17auditor of each county in which the district is located. Within 15 days after the results
207.18of the referendum have been certified by the board, or in the case of a recount, the
207.19certification of the results of the recount by the canvassing board, the district must notify
207.20the commissioner of the results of the referendum.
207.21EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
207.22and later.

207.23    Sec. 19. Minnesota Statutes 2013 Supplement, section 126C.17, subdivision 9a,
207.24is amended to read:
207.25    Subd. 9a. Board-approved referendum allowance. Notwithstanding subdivision
207.269, a school district may convert up to $300 per adjusted pupil unit of referendum authority
207.27from voter approved to board approved by a board vote. A district with less than $300 per
207.28adjusted pupil unit of referendum authority after the local optional revenue subtraction
207.29under subdivision 1 may authorize new referendum authority up to the difference between
207.30$300 per adjusted pupil unit and the district's referendum authority. The board may
207.31authorize this levy for up to five years and may subsequently reauthorize that authority
207.32in increments of up to five years.
207.33EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
207.34and later.

208.1    Sec. 20. Minnesota Statutes 2013 Supplement, section 126C.44, is amended to read:
208.2126C.44 SAFE SCHOOLS LEVY.
208.3    (a) Each district may make a levy on all taxable property located within the district
208.4for the purposes specified in this section. The maximum amount which may be levied for
208.5all costs under this section shall be equal to $36 multiplied by the district's adjusted pupil
208.6units for the school year. The proceeds of the levy must be reserved and used for directly
208.7funding the following purposes or for reimbursing the cities and counties who contract
208.8with the district for the following purposes:
208.9    (1) to pay the costs incurred for the salaries, benefits, and transportation costs of
208.10peace officers and sheriffs for liaison in services in the district's schools;
208.11    (2) to pay the costs for a drug abuse prevention program as defined in section
208.12609.101, subdivision 3 , paragraph (e), in the elementary schools;
208.13    (3) to pay the costs for a gang resistance education training curriculum in the
208.14district's schools;
208.15    (4) to pay the costs for security in the district's schools and on school property;
208.16    (5) to pay the costs for other crime prevention, drug abuse, student and staff safety,
208.17voluntary opt-in suicide prevention tools, and violence prevention measures taken by
208.18the school district;
208.19    (6) to pay costs for licensed school counselors, licensed school nurses, licensed
208.20school social workers, licensed school psychologists, and licensed alcohol and chemical
208.21dependency counselors to help provide early responses to problems;
208.22    (7) to pay for facility security enhancements including laminated glass, public
208.23announcement systems, emergency communications devices, and equipment and facility
208.24modifications related to violence prevention and facility security;
208.25    (8) to pay for costs associated with improving the school climate; or
208.26    (9) to pay costs for colocating and collaborating with mental health professionals
208.27who are not district employees or contractors.
208.28    (b) For expenditures under paragraph (a), clause (1), the district must initially
208.29attempt to contract for services to be provided by peace officers or sheriffs with the
208.30police department of each city or the sheriff's department of the county within the district
208.31containing the school receiving the services. If a local police department or a county
208.32sheriff's department does not wish to provide the necessary services, the district may
208.33contract for these services with any other police or sheriff's department located entirely or
208.34partially within the school district's boundaries.
208.35    (c) A school district that is a member of an intermediate school district may
208.36include in its authority under this section the costs associated with safe schools activities
209.1authorized under paragraph (a) for intermediate school district programs. This authority
209.2must not exceed $10 $15 times the adjusted marginal cost pupil units of the member
209.3districts. This authority is in addition to any other authority authorized under this section.
209.4Revenue raised under this paragraph must be transferred to the intermediate school district.
209.5EFFECTIVE DATE.This section is effective for taxes payable in 2015 and later.

209.6    Sec. 21. Minnesota Statutes 2012, section 127A.45, subdivision 2, is amended to read:
209.7    Subd. 2. Definitions. (a) "Other district receipts" means payments by county
209.8treasurers pursuant to section 276.10, apportionments from the school endowment fund
209.9pursuant to section 127A.33, apportionments by the county auditor pursuant to section
209.10127A.34, subdivision 2 , and payments to school districts by the commissioner of revenue
209.11pursuant to chapter 298.
209.12(b) "Cumulative amount guaranteed" means the product of
209.13(1) the cumulative disbursement percentage shown in subdivision 3; times
209.14(2) the sum of
209.15(i) the current year aid payment percentage of the estimated aid and credit
209.16entitlements paid according to subdivision 13; plus
209.17(ii) 100 percent of the entitlements paid according to subdivisions 11 and 12; plus
209.18(iii) the other district receipts.
209.19(c) "Payment date" means the date on which state payments to districts are made
209.20by the electronic funds transfer method. If a payment date falls on a Saturday, a Sunday,
209.21or a weekday which is a legal holiday, the payment shall be made on the immediately
209.22preceding business day. The commissioner may make payments on dates other than
209.23those listed in subdivision 3, but only for portions of payments from any preceding
209.24payment dates which could not be processed by the electronic funds transfer method due
209.25to documented extenuating circumstances.
209.26(d) The current year aid payment percentage equals 73 in fiscal year 2010 and 70 in
209.27fiscal year 2011, and 60 in fiscal years 2012 and later 90.

209.28    Sec. 22. Minnesota Statutes 2012, section 127A.45, subdivision 3, is amended to read:
209.29    Subd. 3. Payment dates and percentages. (a) The commissioner shall pay to a
209.30district on the dates indicated an amount computed as follows: the cumulative amount
209.31guaranteed minus the sum of (1) the district's other district receipts through the current
209.32payment, and (2) the aid and credit payments through the immediately preceding payment.
209.33For purposes of this computation, the payment dates and the cumulative disbursement
209.34percentages are as follows:

210.1		Payment date	Percentage
210.2	Payment 1	July 15:	5.5
210.3	Payment 2	July 30:	8.0
210.4	Payment 3	August 15:	17.5
210.5	Payment 4	August 30:	20.0
210.6	Payment 5	September 15:	22.5
210.7	Payment 6	September 30:	25.0
210.8	Payment 7	October 15:	27.0
210.9	Payment 8	October 30:	30.0
210.10	Payment 9	November 15:	32.5
210.11	Payment 10	November 30:	36.5
210.12	Payment 11	December 15:	42.0
210.13	Payment 12	December 30:	45.0
210.14	Payment 13	January 15:	50.0
210.15	Payment 14	January 30:	54.0
210.16	Payment 15	February 15:	58.0
210.17	Payment 16	February 28:	63.0
210.18	Payment 17	March 15:	68.0
210.19	Payment 18	March 30:	74.0
210.20	Payment 19	April 15:	78.0
210.21	Payment 20	April 30:	85.0
210.22	Payment 21	May 15:	90.0
210.23	Payment 22	May 30:	95.0
210.24	Payment 23	June 20:	100.0

210.25(b) In addition to the amounts paid under paragraph (a), the commissioner shall pay
210.26to a school district or charter school on the dates indicated an amount computed as follows:

210.27 210.28	Payment 3	August 15: the final adjustment for the prior fiscal year for the state paid property tax credits established in section 273.1392
210.29 210.30	Payment 4	August 30: 30 percent of the final adjustment for the prior fiscal year for all aid entitlements except state paid property tax credits
210.31 210.32	Payment 6	September 30: 40 percent of the final adjustment for the prior fiscal year for all aid entitlements except state paid property tax credits
210.33 210.34	Payment 8	October 30: 30 percent of the final adjustment for the prior fiscal year for all aid entitlements except state paid property tax credits

210.35(c) Notwithstanding paragraph (b), if the current year aid payment percentage
210.36under subdivision 2, paragraph (d), is less than 90, in addition to the amounts paid under
210.37paragraph (a), the commissioner shall pay to a charter school on the dates indicated an
210.38amount computed as follows:

210.39 210.40	Payment 1	July 15: 75 percent of the final adjustment for the prior fiscal year for all aid entitlements
210.41 210.42	Payment 8	October 30: 25 percent of the final adjustment for the prior fiscal year for all aid entitlements

211.1EFFECTIVE DATE.This section is effective July 1, 2015.

211.2    Sec. 23. Minnesota Statutes 2013 Supplement, section 127A.47, subdivision 7, is
211.3amended to read:
211.4    Subd. 7. Alternative attendance programs. (a) The general education aid and
211.5special education aid for districts must be adjusted for each pupil attending a nonresident
211.6district under sections 123A.05 to 123A.08, 124D.03, 124D.08, and 124D.68. The
211.7adjustments must be made according to this subdivision.
211.8    (b) For purposes of this subdivision, the "unreimbursed cost of providing special
211.9education and services" means the difference between: (1) the actual cost of providing
211.10special instruction and services, including special transportation and unreimbursed
211.11building lease and debt service costs for facilities used primarily for special education, for
211.12a pupil with a disability, as defined in section 125A.02, or a pupil, as defined in section
211.13125A.51 , who is enrolled in a program listed in this subdivision, minus (2) if the pupil
211.14receives special instruction and services outside the regular classroom for more than
211.1560 percent of the school day, the amount of general education revenue and referendum
211.16equalization aid as defined in section 125A.11, subdivision 1, paragraph (c), attributable
211.17to that pupil for the portion of time the pupil receives special instruction and services
211.18outside of the regular classroom, excluding portions attributable to district and school
211.19administration, district support services, operations and maintenance, capital expenditures,
211.20and pupil transportation, minus (3) special education aid under section 125A.76
211.21attributable to that pupil, that is received by the district providing special instruction and
211.22services. For purposes of this paragraph, general education revenue and referendum
211.23equalization aid attributable to a pupil must be calculated using the serving district's
211.24average general education revenue and referendum equalization aid per adjusted pupil unit.
211.25(c) For fiscal year 2015 and later, special education aid paid to a resident district
211.26must be reduced by an amount equal to 90 percent of the unreimbursed cost of providing
211.27special education and services.
211.28(d) Notwithstanding paragraph (c), special education aid paid to a resident district
211.29must be reduced by an amount equal to 100 percent of the unreimbursed cost of special
211.30education and services provided to students at an intermediate district, cooperative, or
211.31charter school where the percent of students eligible for special education services is at
211.32least 70 percent of the charter school's total enrollment.
211.33    (e) Special education aid paid to the district or cooperative providing special
211.34instruction and services for the pupil, or to the fiscal agent district for a cooperative,
211.35must be increased by the amount of the reduction in the aid paid to the resident district
212.1under paragraphs (c) and (d). If the resident district's special education aid is insufficient
212.2to make the full adjustment, the remaining adjustment shall be made to other state aids
212.3due to the district.
212.4    (f) An area learning center operated by a service cooperative, intermediate district,
212.5education district, or a joint powers cooperative may elect through the action of the
212.6constituent boards to charge the resident district tuition for pupils rather than to have the
212.7general education revenue paid to a fiscal agent school district. Except as provided in
212.8paragraph (e), the district of residence must pay tuition equal to at least 90 and no more
212.9than 100 percent of the district average general education revenue per pupil unit minus
212.10an amount equal to the product of the formula allowance according to section 126C.10,
212.11subdivision 2 , times .0466, calculated without compensatory revenue, local optional
212.12revenue, and transportation sparsity revenue, times the number of pupil units for pupils
212.13attending the area learning center.
212.14EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
212.15and later.

212.16    Sec. 24. Laws 2012, chapter 263, section 1, is amended to read:
212.17    Section 1. INNOVATIVE DELIVERY OF EDUCATION SERVICES AND
212.18SHARING OF DISTRICT RESOURCES; PILOT PROJECT.
212.19    Subdivision 1. Establishment; requirements for participation. (a) A five-year
212.20 pilot project for the 2013-2014 through 2017-2018 school years is established to improve
212.21student and school outcomes by allowing groups of school districts to work together to
212.22provide innovative education programs and activities and share district resources. The
212.23pilot project may last until June 30, 2018, or for up to five years, whichever is less, except
212.24that innovation partnerships formed during the period of the pilot project may continue
212.25past June 30, 2018, with the agreement of the partnership members.
212.26(b) To participate in this pilot project to improve student and school outcomes, a
212.27group of two or more school districts must collaborate with school staff and receive formal
212.28school board approval to form a partnership. The partnership must develop a plan to
212.29provide challenging programmatic options for students, create professional development
212.30opportunities for educators, increase student engagement and connection and challenging
212.31learning opportunities for students, or demonstrate efficiencies in delivering financial and
212.32other services. The plan must establish:
212.33(1) collaborative educational goals and objectives;
212.34(2) strategies and processes to implement those goals and objectives, including a
212.35budget process with periodic expenditure reviews;
213.1(3) valid and reliable measures to evaluate progress in realizing the goals and
213.2objectives;
213.3(4) an implementation timeline; and
213.4(5) other applicable conditions, regulations, responsibilities, duties, provisions, fee
213.5schedules, and legal considerations needed to fully implement the plan.
213.6A partnership may invite additional districts to join the partnership during the pilot
213.7project term after notifying the commissioner.
213.8(c) A partnership of interested districts must apply by February 1, 2013, of any year
213.9 to the education commissioner in the form and manner the commissioner determines,
213.10consistent with this section. The application must contain the formal approval adopted by
213.11the school board in each district to participate in the plan.
213.12(d) Notwithstanding other law to the contrary, a participating school district under
213.13this section continues to: receive revenue and maintain its taxation authority; be organized
213.14and governed by an elected school board with general powers under Minnesota Statutes,
213.15section 123B.02; and be subject to employment agreements under Minnesota Statutes,
213.16chapter 122A, and Minnesota Statutes, section 179A.20; and district employees continue
213.17to remain employees of the employing school district.
213.18    Subd. 2. Commissioner's role. Interested groups of school districts must submit
213.19a completed application to the commissioner by March 1, 2013, of any year in the form
213.20and manner determined by the commissioner. The education commissioner must convene
213.21an advisory panel composed of a teacher appointed by Education Minnesota, a school
213.22principal appointed by the Minnesota Association of Secondary School Principals, a
213.23school board member appointed by the Minnesota School Boards Association, and a
213.24school superintendent appointed by the Minnesota Association of School Administrators
213.25to advise the commissioner on applicants' qualifications to participate in this pilot project.
213.26The commissioner must select between three and may select up to six qualified applicants
213.27under subdivision 1 by April 1, 2013, of any year to participate in this pilot project,
213.28ensuring an equitable geographical distribution of project participants to the extent
213.29practicable. The commissioner must select only those applicants that fully comply with
213.30the requirements in subdivision 1. The commissioner must terminate a project participant
213.31that fails to effectively implement the goals and objectives contained in its application and
213.32according to its stated timeline.
213.33    Subd. 3. Pilot project evaluation. Participating school districts must submit pilot
213.34project data to the commissioner in the form and manner determined by the commissioner.
213.35The education commissioner must analyze participating districts' progress in realizing
213.36their educational goals and objectives to work together in providing innovative education
214.1programs and activities and sharing resources. The commissioner must include the
214.2analysis of best practices in a report to the legislative committees with jurisdiction over
214.3kindergarten through grade 12 education finance and policy on the efficacy of this pilot
214.4project. The commissioner may shall submit an interim project report at any time by
214.5February 1, 2016, and must submit a final report to the legislature by February 1, 2018
214.6 2019, recommending whether or not to continue or expand the pilot project.

214.7    Sec. 25. Laws 2012, chapter 263, section 1, the effective date, is amended to read:
214.8EFFECTIVE DATE.This section is effective the day following final enactment
214.9and applies to the 2013-2014 through 2017-2018 school years.

214.10    Sec. 26. Laws 2013, chapter 116, article 1, section 58, subdivision 2, is amended to read:
214.11    Subd. 2. General education aid. For general education aid under Minnesota
214.12Statutes, section 126C.13, subdivision 4:

214.13 214.14		$	6,051,766,000 6,851,419,000	.....	2014
214.15 214.16		$	6,370,640,000 6,464,199,000	.....	2015

214.17The 2014 appropriation includes $781,842,000 $780,156,000 for 2013 and
214.18$5,269,924,000 $6,071,263,000 for 2014.
214.19The 2015 appropriation includes $823,040,000 $589,095,000 for 2014 and
214.20$5,547,600,000 $5,875,104,000 for 2015.

214.21    Sec. 27. Laws 2013, chapter 116, article 1, section 58, subdivision 6, is amended to read:
214.22    Subd. 6. Nonpublic pupil education aid. For nonpublic pupil education aid under
214.23Minnesota Statutes, sections 123B.40 to 123B.43 and 123B.87:

214.24 214.25		$	15,582,000 15,867,000	.....	2014
214.26 214.27		$	16,169,000 16,132,000	.....	2015

214.28The 2014 appropriation includes $2,099,000 $1,898,000 for 2013 and $13,483,000
214.29 $13,969,000 for 2014.
214.30The 2015 appropriation includes $2,122,000 $1,552,000 for 2014 and $14,047,000
214.31 $14,580,000 for 2015.

214.32    Sec. 28. Laws 2013, chapter 116, article 1, section 58, subdivision 7, is amended to read:
215.1    Subd. 7. Nonpublic pupil transportation. For nonpublic pupil transportation aid
215.2under Minnesota Statutes, section 123B.92, subdivision 9:

215.3 215.4		$	18,565,000 18,500,000	.....	2014
215.5 215.6		$	18,946,000 17,710,000	.....	2015

215.7The 2014 appropriation includes $2,668,000 $2,602,000 for 2013 and $15,897,000
215.8 $15,898,000 for 2014.
215.9The 2015 appropriation includes $2,502,000 $1,766,000 for 2014 and $16,444,000
215.10 $15,944,000 for 2015.

215.11    Sec. 29. APPROPRIATIONS.
215.12    Subdivision 1. Department of Education. The sums indicated in this section are
215.13appropriated from the general fund to the Department of Education for the fiscal years
215.14designated.
215.15    Subd. 2. Recovery program grants. For recovery program grants under Minnesota
215.16Statutes, section 124D.695:

215.17

$

500,000

.....

2015

215.18    Sec. 30. REVISOR'S INSTRUCTION.
215.19In Minnesota Statutes, the revisor of statutes shall change the term "location equity"
215.20to "local optional."

215.21    Sec. 31. REPEALER.
215.22The amendments to Minnesota Statutes, section 124D.09, subdivision 9, made by
215.23Laws 2014, chapter 272, article 3, section 32, , if enacted, are repealed the day following
215.24final enactment.

215.25ARTICLE 16

215.26EDUCATION EXCELLENCE

215.27    Section 1. Minnesota Statutes 2012, section 13.43, subdivision 16, is amended to read:
215.28    Subd. 16. School district or charter school disclosure of violence or inappropriate
215.29sexual contact. The superintendent of a school district or the superintendent's designee,
215.30or a person having administrative control of a charter school, must release to a requesting
215.31school district or charter school private personnel data on a current or former employee
215.32related to acts of violence toward or sexual contact with a student, if:
216.1(1) an investigation conducted by or on behalf of the school district or law
216.2enforcement affirmed the allegations in writing prior to release and the investigation
216.3resulted in the resignation of the subject of the data; or
216.4(2) the employee resigned while a complaint or charge involving the allegations was
216.5pending, the allegations involved acts of sexual contact with a student, and the employer
216.6informed the employee in writing, before the employee resigned, that if the employee
216.7resigns while the complaint or charge is still pending, the employer must release private
216.8personnel data about the employee's alleged sexual contact with a student to a school district
216.9or charter school requesting the data after the employee applies for employment with that
216.10school district or charter school and the data remain classified as provided in chapter 13.
216.11Data that are released under this subdivision must not include data on the student.

216.12    Sec. 2. Minnesota Statutes 2012, section 122A.40, subdivision 13, is amended to read:
216.13    Subd. 13. Immediate discharge. (a) Except as otherwise provided in paragraph
216.14(b), a board may discharge a continuing-contract teacher, effective immediately, upon any
216.15of the following grounds:
216.16(1) immoral conduct, insubordination, or conviction of a felony;
216.17(2) conduct unbecoming a teacher which requires the immediate removal of the
216.18teacher from classroom or other duties;
216.19(3) failure without justifiable cause to teach without first securing the written release
216.20of the school board;
216.21(4) gross inefficiency which the teacher has failed to correct after reasonable written
216.22notice;
216.23(5) willful neglect of duty; or
216.24(6) continuing physical or mental disability subsequent to a 12 months leave of
216.25absence and inability to qualify for reinstatement in accordance with subdivision 12.
216.26For purposes of this paragraph, conduct unbecoming a teacher includes an unfair
216.27discriminatory practice described in section 363A.13.
216.28Prior to discharging a teacher under this paragraph, the board must notify the teacher
216.29in writing and state its ground for the proposed discharge in reasonable detail. Within
216.30ten days after receipt of this notification the teacher may make a written request for a
216.31hearing before the board and it shall be granted before final action is taken. The board
216.32may suspend a teacher with pay pending the conclusion of the hearing and determination
216.33of the issues raised in the hearing after charges have been filed which constitute ground for
216.34discharge. If a teacher has been charged with a felony and the underlying conduct that
216.35is the subject of the felony charge is a ground for a proposed immediate discharge, the
217.1suspension pending the conclusion of the hearing and determination of the issues may be
217.2without pay. If a hearing under this paragraph is held, the board must reimburse the teacher
217.3for any salary or compensation withheld if the final decision of the board or the arbitrator
217.4does not result in a penalty to or suspension, termination, or discharge of the teacher.
217.5(b) A board must discharge a continuing-contract teacher, effective immediately,
217.6upon receipt of notice under section 122A.20, subdivision 1, paragraph (b), that the
217.7teacher's license has been revoked due to a conviction for child abuse or sexual abuse.
217.8(c) When a teacher is discharged under paragraph (b) or when the commissioner
217.9makes a final determination of child maltreatment involving a teacher under section
217.10626.556, subdivision 11, the school principal or other person having administrative
217.11control of the school must include in the teacher's employment record the information
217.12contained in the record of the disciplinary action or the final maltreatment determination,
217.13consistent with the definition of public data under section 13.41, subdivision 5, and must
217.14provide the Board of Teaching and the licensing division at the department with the
217.15necessary and relevant information to enable the Board of Teaching and the department's
217.16licensing division to fulfill their statutory and administrative duties related to issuing,
217.17renewing, suspending, or revoking a teacher's license. Information received by the Board
217.18of Teaching or the licensing division at the department under this paragraph is governed
217.19by section 13.41 or other applicable law governing data of the receiving entity. In addition
217.20to the background check required under section 123B.03, a school board or other school
217.21hiring authority must contact the Board of Teaching and the department to determine
217.22whether the teacher's license has been suspended or revoked, consistent with the discharge
217.23and final maltreatment determinations identified in this paragraph. Unless restricted by
217.24federal or state data practices law or by the terms of a collective bargaining agreement,
217.25the responsible authority for a school district must disseminate to another school district
217.26private personnel data on a current or former teacher employee or contractor of the district,
217.27including the results of background investigations, if the requesting school district seeks
217.28the information because the subject of the data has applied for employment with the
217.29requesting school district.
217.30EFFECTIVE DATE.This section is effective the day following final enactment.

217.31    Sec. 3. Minnesota Statutes 2012, section 122A.41, subdivision 6, is amended to read:
217.32    Subd. 6. Grounds for discharge or demotion. (a) Except as otherwise provided
217.33in paragraph (b), causes for the discharge or demotion of a teacher either during or after
217.34the probationary period must be:
217.35(1) immoral character, conduct unbecoming a teacher, or insubordination;
218.1(2) failure without justifiable cause to teach without first securing the written release
218.2of the school board having the care, management, or control of the school in which the
218.3teacher is employed;
218.4(3) inefficiency in teaching or in the management of a school, consistent with
218.5subdivision 5, paragraph (b);
218.6(4) affliction with active tuberculosis or other communicable disease must be
218.7considered as cause for removal or suspension while the teacher is suffering from such
218.8disability; or
218.9(5) discontinuance of position or lack of pupils.
218.10For purposes of this paragraph, conduct unbecoming a teacher includes an unfair
218.11discriminatory practice described in section 363A.13.
218.12(b) A probationary or continuing-contract teacher must be discharged immediately
218.13upon receipt of notice under section 122A.20, subdivision 1, paragraph (b), that the
218.14teacher's license has been revoked due to a conviction for child abuse or sexual abuse.
218.15(c) When a teacher is discharged under paragraph (b) or when the commissioner
218.16makes a final determination of child maltreatment involving a teacher under section
218.17626.556, subdivision 11, the school principal or other person having administrative
218.18control of the school must include in the teacher's employment record the information
218.19contained in the record of the disciplinary action or the final maltreatment determination,
218.20consistent with the definition of public data under section 13.41, subdivision 5, and must
218.21provide the Board of Teaching and the licensing division at the department with the
218.22necessary and relevant information to enable the Board of Teaching and the department's
218.23licensing division to fulfill their statutory and administrative duties related to issuing,
218.24renewing, suspending, or revoking a teacher's license. Information received by the Board
218.25of Teaching or the licensing division at the department under this paragraph is governed
218.26by section 13.41 or other applicable law governing data of the receiving entity. In addition
218.27to the background check required under section 123B.03, a school board or other school
218.28hiring authority must contact the Board of Teaching and the department to determine
218.29whether the teacher's license has been suspended or revoked, consistent with the discharge
218.30and final maltreatment determinations identified in this paragraph. Unless restricted by
218.31federal or state data practices law or by the terms of a collective bargaining agreement,
218.32the responsible authority for a school district must disseminate to another school district
218.33private personnel data on a current or former teacher employee or contractor of the district,
218.34including the results of background investigations, if the requesting school district seeks
218.35the information because the subject of the data has applied for employment with the
218.36requesting school district.
219.1EFFECTIVE DATE.This section is effective the day following final enactment.

219.2    Sec. 4. Minnesota Statutes 2012, section 122A.414, subdivision 2, as amended by
219.3Laws 2014, chapter 272, article 3, section 17, if enacted, is amended to read:
219.4    Subd. 2. Alternative teacher professional pay system. (a) To participate in this
219.5program, a school district, intermediate school district, school site, or charter school must
219.6have an educational improvement plan under section 122A.413 and an alternative teacher
219.7professional pay system agreement under paragraph (b). A charter school participant also
219.8must comply with subdivision 2a.
219.9    (b) The alternative teacher professional pay system agreement must:
219.10    (1) describe how teachers can achieve career advancement and additional
219.11compensation;
219.12    (2) describe how the school district, intermediate school district, school site, or
219.13charter school will provide teachers with career advancement options that allow teachers
219.14to retain primary roles in student instruction and facilitate site-focused professional
219.15development that helps other teachers improve their skills;
219.16    (3) reform the "steps and lanes" salary schedule, prevent any teacher's compensation
219.17paid before implementing the pay system from being reduced as a result of participating in
219.18this system, base at least 60 percent of any compensation increase on teacher performance
219.19using:
219.20    (i) schoolwide student achievement gains under section 120B.35 or locally selected
219.21standardized assessment outcomes, or both;
219.22    (ii) measures of student growth and literacy that may include value-added models
219.23or student learning goals, consistent with section 122A.40, subdivision 8, clause (9), or
219.24122A.41, subdivision 5 , clause (9), and other measures that include the academic literacy,
219.25oral academic language, and achievement of English learners under section 122A.40,
219.26subdivision 8, clause (10), or 122A.41, subdivision 5, clause (10); and
219.27    (iii) an objective evaluation program under section 122A.40, subdivision 8,
219.28paragraph (b), clause (2), or 122A.41, subdivision 5, paragraph (b), clause (2);
219.29    (4) provide for participation in job-embedded learning opportunities such as
219.30professional learning communities to improve instructional skills and learning that are
219.31aligned with student needs under section 122A.413, consistent with the staff development
219.32plan under section 122A.60 and led during the school day by trained teacher leaders
219.33such as master or mentor teachers;
220.1    (5) allow any teacher in a participating school district, intermediate school district,
220.2school site, or charter school that implements an alternative pay system to participate in
220.3that system without any quota or other limit; and
220.4    (6) encourage collaboration rather than competition among teachers.
220.5EFFECTIVE DATE.The amendments made by this section are effective for
220.6agreements approved after August 1, 2015.

220.7    Sec. 5. Minnesota Statutes 2012, section 122A.415, subdivision 1, is amended to read:
220.8    Subdivision 1. Revenue amount. (a) A school district, intermediate school district,
220.9school site, or charter school that meets the conditions of section 122A.414 and submits an
220.10application approved by the commissioner is eligible for alternative teacher compensation
220.11revenue.
220.12(b) For school district and intermediate school district applications, the commissioner
220.13must consider only those applications to participate that are submitted jointly by a
220.14district and the exclusive representative of the teachers. The application must contain an
220.15alternative teacher professional pay system agreement that:
220.16(1) implements an alternative teacher professional pay system consistent with
220.17section 122A.414; and
220.18(2) is negotiated and adopted according to the Public Employment Labor Relations
220.19Act under chapter 179A, except that notwithstanding section 179A.20, subdivision 3, a
220.20district may enter into a contract for a term of two or four years.
220.21Alternative teacher compensation revenue for a qualifying school district or site in
220.22which the school board and the exclusive representative of the teachers agree to place
220.23teachers in the district or at the site on the alternative teacher professional pay system
220.24equals $260 times the number of pupils enrolled at the district or site on October 1 of
220.25the previous fiscal year. Alternative teacher compensation revenue for a qualifying
220.26intermediate school district must be calculated under section 126C.10, subdivision 34
220.27 subdivision 4, paragraphs (a) and (b).
220.28(c) For a newly combined or consolidated district, the revenue shall be computed
220.29using the sum of pupils enrolled on October 1 of the previous year in the districts entering
220.30into the combination or consolidation. The commissioner may adjust the revenue computed
220.31for a site using prior year data to reflect changes attributable to school closings, school
220.32openings, or grade level reconfigurations between the prior year and the current year.
220.33(d) The revenue is available only to school districts, intermediate school districts,
220.34school sites, and charter schools that fully implement an alternative teacher professional
220.35pay system by October 1 of the current school year.
221.1EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
221.2and later.

221.3    Sec. 6. Minnesota Statutes 2013 Supplement, section 124D.862, subdivision 1, is
221.4amended to read:
221.5    Subdivision 1. Initial achievement and integration revenue. (a) An eligible
221.6district's initial achievement and integration revenue equals the lesser of 100.3 percent of
221.7the district's expenditures under the budget approved by the commissioner under section
221.8124D.861, subdivision 3, paragraph (c), excluding expenditures used to generate incentive
221.9revenue under subdivision 2, or the sum of (1) $350 times the district's adjusted pupil
221.10units for that year times the ratio of the district's enrollment of protected students for the
221.11previous school year to total enrollment for the previous school year and (2) the greater of
221.12zero or 66 percent of the difference between the district's integration revenue for fiscal
221.13year 2013 and the district's integration revenue for fiscal year 2014 under clause (1).
221.14(b) In each year, 0.3 percent of each district's initial achievement and integration
221.15revenue is transferred to the department for the oversight and accountability activities
221.16required under this section and section 124D.861.
221.17EFFECTIVE DATE.This section is effective the day following final enactment
221.18and applies to revenue for fiscal year 2014 and later.

221.19    Sec. 7. Minnesota Statutes 2013 Supplement, section 124D.862, subdivision 2, is
221.20amended to read:
221.21    Subd. 2. Incentive revenue. An eligible school district's maximum incentive
221.22revenue equals $10 per adjusted pupil unit. In order to receive this revenue, a district must
221.23be A district's incentive revenue equals the lesser of the maximum incentive revenue
221.24or the district's expenditures for implementing a voluntary plan to reduce racial and
221.25economic enrollment disparities through intradistrict and interdistrict activities that have
221.26been approved as a part of the district's achievement and integration plan under the budget
221.27approved by the commissioner under section 124D.861, subdivision 3, paragraph (c).
221.28EFFECTIVE DATE.This section is effective the day following final enactment
221.29and applies to revenue for fiscal year 2014 and later.

221.30    Sec. 8. Laws 2013, chapter 116, article 3, section 37, subdivision 8, is amended to read:
221.31    Subd. 8. Tribal contract schools. For tribal contract school aid under Minnesota
221.32Statutes, section 124D.83:

222.1 222.2		$	2,080,000 2,044,000	.....	2014
222.3 222.4		$	2,230,000 2,161,000	.....	2015

222.5The 2014 appropriation includes $266,000 $166,000 for 2013 and $1,814,000
222.6 $1,878,000 for 2014.
222.7The 2015 appropriation includes $285,000 $208,000 for 2014 and $1,945,000
222.8 $1,953,000 for 2015.

222.9    Sec. 9. Laws 2013, chapter 116, article 3, section 37, subdivision 15, is amended to read:
222.10    Subd. 15. Early childhood literacy programs. For early childhood literacy
222.11programs under Minnesota Statutes, section 119A.50, subdivision 3:

222.12		$	4,125,000	.....	2014
222.13 222.14		$	4,125,000 5,125,000	.....	2015

222.15Up to $4,125,000 each in the first year and $5,125,000 in the second year is for
222.16leveraging federal and private funding to support AmeriCorps members serving in the
222.17Minnesota Reading Corps program established by ServeMinnesota, including costs
222.18associated with the training and teaching of early literacy skills to children age three to
222.19grade 3 and the evaluation of the impact of the program under Minnesota Statutes, sections
222.20124D.38, subdivision 2 , and 124D.42, subdivision 6. Up to $1,000,000 in fiscal year
222.212015 must be used to support priority and focus schools as defined by the Department
222.22of Education and to expand kindergarten programming.
222.23Any balance in the first year does not cancel but is available in the second year.
222.24The base for fiscal year 2016 and later is $4,375,000.

222.25    Sec. 10. Laws 2013, chapter 116, article 3, section 37, subdivision 18, is amended to
222.26read:
222.27    Subd. 18. School Climate Safety Technical Assistance Center. For the School
222.28Climate Safety Technical Assistance Center under Minnesota Statutes, section 127A.052:

222.29		$	500,000	.....	2014
222.30		$	500,000	.....	2015

222.31    Sec. 11. BETTER ALIGNING MINNESOTA'S ALTERNATIVE TEACHER
222.32PROFESSIONAL PAY SYSTEM AND TEACHER DEVELOPMENT AND
222.33EVALUATION PROGRAM.
223.1To better align Minnesota's alternative teacher professional pay system under
223.2Minnesota Statutes, sections 122A.413 to 122A.416, and Minnesota's teacher development
223.3and evaluation program under Minnesota Statutes, sections 122A.40, subdivision 8, and
223.4122A.41, subdivision 5, and effect and fund an improved alignment of this system and
223.5program, the commissioner of education must consult with stakeholders, including, but
223.6not limited to, representatives of the Minnesota Association of School Administrators,
223.7the Minnesota Association of Secondary School Principals, the Minnesota Elementary
223.8School Principals' Association, Education Minnesota, Schools for Equity in Education, the
223.9Minnesota Business Partnership, the Minnesota Chamber of Commerce, the Minnesota
223.10School Boards Association, the Department of Education, the College of Education
223.11and Human Development at the University of Minnesota, the Minnesota Association
223.12of the Colleges for Teacher Education, licensed elementary and secondary school
223.13teachers employed in school districts with an alternative teacher professional pay system
223.14agreement and licensed elementary and secondary school teachers employed in school
223.15districts without an alternative teacher professional pay system agreement, where one or
223.16more of these teachers may be a master teacher, peer evaluator, in another teacher leader
223.17position, or national board certified teacher, a teacher or school administrator employed in
223.18a Minnesota charter school with an alternative teacher professional pay system agreement
223.19and a teacher or school administrator employed in a Minnesota charter school without an
223.20alternative teacher professional pay system agreement, a parent or guardian of a student
223.21currently enrolled in a Minnesota public school, the Association of Metropolitan School
223.22Districts, and the Minnesota Rural Education Association. The commissioner also must
223.23consult with members of the house of representatives and members of the senate.
223.24The commissioner, by February 1, 2015, must submit to the education policy and
223.25finance committees of the legislature written recommendations on better aligning and
223.26financing the alternative teacher professional pay system and teacher development and
223.27evaluation program.
223.28EFFECTIVE DATE.This section is effective the day following final enactment.

223.29    Sec. 12. CAREER AND TECHNICAL EDUCATION PROGRAM INVENTORY.
223.30(a) The commissioner of education must consult with experts knowledgeable about
223.31secondary and postsecondary career and technical education programs to determine the
223.32content and status of particular career and technical education programs in Minnesota
223.33school districts, including cooperating districts under Minnesota Statutes, 123A.33,
223.34subdivision 2, integration districts, and postsecondary institutions partnering with school
223.35districts or offering courses through PSEO or career and technical programs and the rates
224.1of student participation and completion for these various programs, including: agriculture,
224.2food, and natural resources; architecture and construction; arts, audiovisual technology,
224.3and communications; business management and administration; computer science; family
224.4and consumer science; finance; health science; hospitality and tourism; human services;
224.5information technology; manufacturing; marketing; science, technology, engineering, and
224.6mathematics; and transportation, distribution, and logistics.
224.7(b) To accomplish paragraph (a) and to understand the current role of local school
224.8districts and postsecondary institutions in providing career and technical education
224.9programs, the commissioner of education, in consultation with experts, also must examine
224.10the extent to which secondary and postsecondary education programs offer students a
224.11progression of coordinated, nonduplicative courses that adequately prepare students to
224.12successfully complete a career and technical education program.
224.13(c) The commissioner of education must submit a report by February 1, 2015,
224.14to the education policy and finance committees of the legislature, consistent with this
224.15section, and include information about each district's dedicated equipment, resources, and
224.16relationships with postsecondary institutions and the local business community.
224.17EFFECTIVE DATE.This section is effective the day following final enactment.

224.18    Sec. 13. INFORMATION TECHNOLOGY CERTIFICATION PARTNERSHIPS;
224.19REQUEST FOR PROPOSAL; PROGRAM REQUIREMENTS.
224.20(a) The commissioner shall contract with at least one provider to provide information
224.21technology education opportunities to students in grades 9 through 12. This partnership
224.22must allow participating students and teachers to secure broad-based information
224.23technology certifications.
224.24(b) The commissioner shall issue a competitive request for proposals, award the
224.25contract, and make available, through participating school districts, charter schools, and
224.26intermediate districts, instruction on information technology skills and competencies
224.27that are essential for career and college readiness. The request for proposals shall at
224.28least include the following components:
224.29(1) a research-based curriculum;
224.30(2) online access to the curriculum;
224.31(3) instructional software for classroom and student use;
224.32(4) certification of skills and competencies in a broad array of information
224.33technology-related skill areas;
224.34(5) professional development for teachers; and
225.1(6) deployment and program support, including, but not limited to, integration with
225.2academic standards under Minnesota Statutes, section 120B.021 or 120B.022.
225.3(c) If the contract awarded under this section does not allow for the service to be
225.4delivered in every eligible school, the commissioner shall make the contracted service
225.5available on a first-come, first-served basis to an equal number of schools in each of the
225.6regions represented by a regional development commission under Minnesota Statutes,
225.7section 462.387, and in the region consisting of counties not represented by a regional
225.8development commission. If participating schools in any region do not exhaust the services
225.9allocated to that region, the commissioner may reallocate unused services to other regions.

225.10    Sec. 14. LEGISLATIVE REPORT ON K-12 STUDENTS' EXPERIENCE WITH
225.11PHYSICAL EDUCATION.
225.12(a) The commissioner of education must prepare and submit to the education policy
225.13and finance committees of the legislature by January 15, 2015, a written report on K-12
225.14students' experience with physical education, consistent with this section. Among other
225.15physical education-related issues, the report must include:
225.16(1) the number of minutes per day and frequency per week students in each grade
225.17level, kindergarten through grade 8, receive physical education, identify the requirements in
225.18high school physical education in terms of semesters, trimesters, quarters, or school years;
225.19(2) the measures and data used to assess students' level of fitness and the uses made
225.20of the fitness data;
225.21(3) the educational preparation of physical education instructors and the proportion
225.22of time certified physical education teachers provide physical education instruction;
225.23(4) the amount of time and number of days per week each grade level, kindergarten
225.24through grade 6, receives recess;
225.25(5) whether high school students are allowed to substitute other activities for
225.26required physical education, and, if so, which activities qualify;
225.27(6) identify the number or percentage of high school students who earn required
225.28physical education credits online;
225.29(7) whether schools offer before or after school physical activities opportunities in
225.30each grade level, kindergarten through grade 8, and in high school, and, if so, what are the
225.31opportunities; and
225.32(8) the extent to which schools coordinate with developmentally adaptive physical
225.33education specialists when needed.
225.34(b) Any costs of preparing this report must be paid for out of the Department of
225.35Education's current operating budget.
226.1EFFECTIVE DATE.This section is effective the day following final enactment.

226.2    Sec. 15. TEACHER DEVELOPMENT AND EVALUATION REVENUE.
226.3    (a) For fiscal year 2015 only, teacher development and evaluation revenue for a school
226.4district, intermediate school district, or charter school that does not have an alternative
226.5professional pay system agreement under Minnesota Statutes, section 122A.414,
226.6subdivision 2, equals $302 times the number of full-time equivalent teachers employed on
226.7October 1 of the previous school year. Revenue under this section must be reserved for
226.8teacher development and evaluation activities consistent with Minnesota Statutes, section
226.9122A.40, subdivision 8, or Minnesota Statutes, section 122A.41, subdivision 5. For the
226.10purposes of this section, "teacher" has the meaning given it in Minnesota Statutes, section
226.11122A.40, subdivision 1, or Minnesota Statutes, section 122A.41, subdivision 1.
226.12    (b) Notwithstanding paragraph (a), the state total teacher development and evaluation
226.13revenue entitlement must not exceed $10,000,000 for fiscal year 2015. The commissioner
226.14must limit the amount of revenue under this section so as not to exceed this limit.

226.15    Sec. 16. APPROPRIATIONS.
226.16    Subdivision 1. Department of Education. The sums indicated in this section are
226.17appropriated from the general fund to the Department of Education for the fiscal years
226.18designated.
226.19    Subd. 2. Career and technical program inventory. For the career and technical
226.20program inventory program under section 12:

226.21

$

100,000

.....

2015

226.22This is a onetime appropriation.
226.23    Subd. 3. Teacher Professional Pay System and Teacher Evaluation Program
226.24alignment. For the alignment and reporting activities under section 11:

226.25

$

25,000

.....

2015

226.26This is a onetime appropriation.
226.27    Subd. 4. Northwestern Online College in the High School program. For the
226.28Northwestern Online College in the High School program:

226.29

$

160,000

.....

2015

226.30The base for fiscal year 2016 and later is $0.
227.1    Subd. 5. Information technology certification partnership. For an information
227.2technology certification partnership.

227.3

$

300,000

.....

2015

227.4The base for 2016 and later is $0.
227.5    Subd. 6. Legislative report on K-12 students' experience with physical
227.6education. For the preparation of the legislative report on K-12 students' experience
227.7with physical education.

227.8

$

25,000

.....

2015

227.9    The base for fiscal year 2016 and later is $0.
227.10    Subd. 7. Teacher development and evaluation. For teacher development and
227.11evaluation revenue.

227.12

$

9,000,000

.....

2015

227.13The 2015 appropriation includes $0 for 2014 and $9,000,000 for 2015. This is a
227.14onetime appropriation and is available until expended.

227.15    Sec. 17. REPEALER.
227.16The amendments to Minnesota Statutes, section 122A.414, subdivision 2, made by
227.17 Laws 2014, chapter 272, article 1, section 22, if enacted, are repealed the day following
227.18final enactment.

227.19ARTICLE 17

227.20SPECIAL EDUCATION

227.21    Section 1. Minnesota Statutes 2013 Supplement, section 125A.0942, is amended to read:
227.22125A.0942 STANDARDS FOR RESTRICTIVE PROCEDURES.
227.23    Subdivision 1. Restrictive procedures plan. (a) Schools that intend to use
227.24restrictive procedures shall maintain and make publicly accessible in an electronic format
227.25on a school or district Web site or make a paper copy available upon request describing a
227.26restrictive procedures plan for children with disabilities that at least:
227.27(1) lists the restrictive procedures the school intends to use;
227.28(2) describes how the school will implement a range of positive behavior strategies
227.29and provide links to mental health services;
227.30(3) describes how the school will provide training on de-escalation techniques,
227.31consistent with section 122A.09, subdivision 4, paragraph (k);
228.1(4) describes how the school will monitor and review the use of restrictive
228.2procedures, including:
228.3(i) conducting post-use debriefings, consistent with subdivision 3, paragraph (a),
228.4clause (5); and
228.5(ii) convening an oversight committee to undertake a quarterly review of the use
228.6of restrictive procedures based on patterns or problems indicated by similarities in the
228.7time of day, day of the week, duration of the use of a procedure, the individuals involved,
228.8or other factors associated with the use of restrictive procedures; the number of times a
228.9restrictive procedure is used schoolwide and for individual children; the number and types
228.10of injuries, if any, resulting from the use of restrictive procedures; whether restrictive
228.11procedures are used in nonemergency situations; the need for additional staff training; and
228.12proposed actions to minimize the use of restrictive procedures; and
228.13(4) (5) includes a written description and documentation of the training staff
228.14completed under subdivision 5.
228.15(b) Schools annually must publicly identify oversight committee members who
228.16must at least include:
228.17(1) a mental health professional, school psychologist, or school social worker;
228.18(2) an expert in positive behavior strategies;
228.19(3) a special education administrator; and
228.20(4) a general education administrator.
228.21    Subd. 2. Restrictive procedures. (a) Restrictive procedures may be used only
228.22by a licensed special education teacher, school social worker, school psychologist,
228.23behavior analyst certified by the National Behavior Analyst Certification Board, a person
228.24with a master's degree in behavior analysis, other licensed education professional,
228.25paraprofessional under section 120B.363, or mental health professional under section
228.26245.4871, subdivision 27 , who has completed the training program under subdivision 5.
228.27(b) A school shall make reasonable efforts to notify the parent on the same day a
228.28restrictive procedure is used on the child, or if the school is unable to provide same-day
228.29notice, notice is sent within two days by written or electronic means or as otherwise
228.30indicated by the child's parent under paragraph (d) (f).
228.31(c) The district must hold a meeting of the individualized education program team,
228.32conduct or review a functional behavioral analysis, review data, consider developing
228.33additional or revised positive behavioral interventions and supports, consider actions to
228.34reduce the use of restrictive procedures, and modify the individualized education program
228.35or behavior intervention plan as appropriate. The district must hold the meeting: within
228.36ten calendar days after district staff use restrictive procedures on two separate school
229.1days within 30 calendar days or a pattern of use emerges and the child's individualized
229.2education program or behavior intervention plan does not provide for using restrictive
229.3procedures in an emergency; or at the request of a parent or the district after restrictive
229.4procedures are used. The district must review use of restrictive procedures at a child's
229.5annual individualized education program meeting when the child's individualized
229.6education program provides for using restrictive procedures in an emergency.
229.7(d) If the individualized education program team under paragraph (c) determines
229.8that existing interventions and supports are ineffective in reducing the use of restrictive
229.9procedures or the district uses restrictive procedures on a child on ten or more school days
229.10during the same school year, the team, as appropriate, either must consult with other
229.11professionals working with the child; consult with experts in behavior analysis, mental
229.12health, communication, or autism; consult with culturally competent professionals;
229.13review existing evaluations, resources, and successful strategies; or consider whether to
229.14reevaluate the child.
229.15(e) At the individualized education program meeting under paragraph (c), the team
229.16must review any known medical or psychological limitations, including any medical
229.17information the parent provides voluntarily, that contraindicate the use of a restrictive
229.18procedure, consider whether to prohibit that restrictive procedure, and document any
229.19prohibition in the individualized education program or behavior intervention plan.
229.20(f) An individualized education program team may plan for using restrictive
229.21procedures and may include these procedures in a child's individualized education
229.22program or behavior intervention plan; however, the restrictive procedures may be used
229.23only in response to behavior that constitutes an emergency, consistent with this section.
229.24The individualized education program or behavior intervention plan shall indicate how the
229.25parent wants to be notified when a restrictive procedure is used.
229.26    Subd. 3. Physical holding or seclusion. (a) Physical holding or seclusion may be
229.27used only in an emergency. A school that uses physical holding or seclusion shall meet the
229.28following requirements:
229.29(1) physical holding or seclusion is the least intrusive intervention that effectively
229.30responds to the emergency;
229.31(2) physical holding or seclusion is not used to discipline a noncompliant child;
229.32(3) physical holding or seclusion ends when the threat of harm ends and the staff
229.33determines the child can safely return to the classroom or activity;
229.34(4) staff directly observes the child while physical holding or seclusion is being used;
230.1(5) each time physical holding or seclusion is used, the staff person who implements
230.2or oversees the physical holding or seclusion documents, as soon as possible after the
230.3incident concludes, the following information:
230.4(i) a description of the incident that led to the physical holding or seclusion;
230.5(ii) why a less restrictive measure failed or was determined by staff to be
230.6inappropriate or impractical;
230.7(iii) the time the physical holding or seclusion began and the time the child was
230.8released; and
230.9(iv) a brief record of the child's behavioral and physical status;
230.10(6) the room used for seclusion must:
230.11(i) be at least six feet by five feet;
230.12(ii) be well lit, well ventilated, adequately heated, and clean;
230.13(iii) have a window that allows staff to directly observe a child in seclusion;
230.14(iv) have tamperproof fixtures, electrical switches located immediately outside the
230.15door, and secure ceilings;
230.16(v) have doors that open out and are unlocked, locked with keyless locks that
230.17have immediate release mechanisms, or locked with locks that have immediate release
230.18mechanisms connected with a fire and emergency system; and
230.19(vi) not contain objects that a child may use to injure the child or others;
230.20(7) before using a room for seclusion, a school must:
230.21(i) receive written notice from local authorities that the room and the locking
230.22mechanisms comply with applicable building, fire, and safety codes; and
230.23(ii) register the room with the commissioner, who may view that room; and
230.24(8) until August 1, 2015, a school district may use prone restraints with children
230.25age five or older if:
230.26(i) the district has provided to the department a list of staff who have had specific
230.27training on the use of prone restraints;
230.28(ii) the district provides information on the type of training that was provided and
230.29by whom;
230.30(iii) only staff who received specific training use prone restraints;
230.31(iv) each incident of the use of prone restraints is reported to the department within
230.32five working days on a form provided by the department; and
230.33(v) the district, before using prone restraints, must review any known medical or
230.34psychological limitations that contraindicate the use of prone restraints.
230.35The department must collect data on districts' use of prone restraints and publish the data
230.36in a readily accessible format on the department's Web site on a quarterly basis.
231.1(b) By March 1, 2014 February 1, 2015, and annually thereafter, stakeholders must
231.2recommend to the commissioner specific and measurable implementation and outcome
231.3goals for reducing the use of restrictive procedures and the commissioner must submit to
231.4the legislature a report on districts' progress in reducing the use of restrictive procedures
231.5that recommends how to further reduce these procedures and eliminate the use of prone
231.6restraints. The statewide plan includes the following components: measurable goals; the
231.7resources, training, technical assistance, mental health services, and collaborative efforts
231.8needed to significantly reduce districts' use of prone restraints; and recommendations
231.9to clarify and improve the law governing districts' use of restrictive procedures. The
231.10commissioner must consult with interested stakeholders when preparing the report,
231.11including representatives of advocacy organizations, special education directors, teachers,
231.12paraprofessionals, intermediate school districts, school boards, day treatment providers,
231.13county social services, state human services department staff, mental health professionals,
231.14and autism experts. By June 30 each year, districts must report summary data on their
231.15use of restrictive procedures to the department, in a form and manner determined by the
231.16commissioner. The summary data must include information about the use of restrictive
231.17procedures, including use of reasonable force under section 121A.582.
231.18    Subd. 4. Prohibitions. The following actions or procedures are prohibited:
231.19(1) engaging in conduct prohibited under section 121A.58;
231.20(2) requiring a child to assume and maintain a specified physical position, activity,
231.21or posture that induces physical pain;
231.22(3) totally or partially restricting a child's senses as punishment;
231.23(4) presenting an intense sound, light, or other sensory stimuli using smell, taste,
231.24substance, or spray as punishment;
231.25(5) denying or restricting a child's access to equipment and devices such as walkers,
231.26wheelchairs, hearing aids, and communication boards that facilitate the child's functioning,
231.27except when temporarily removing the equipment or device is needed to prevent injury
231.28to the child or others or serious damage to the equipment or device, in which case the
231.29equipment or device shall be returned to the child as soon as possible;
231.30(6) interacting with a child in a manner that constitutes sexual abuse, neglect, or
231.31physical abuse under section 626.556;
231.32(7) withholding regularly scheduled meals or water;
231.33(8) denying access to bathroom facilities; and
231.34(9) physical holding that restricts or impairs a child's ability to breathe, restricts or
231.35impairs a child's ability to communicate distress, places pressure or weight on a child's
232.1head, throat, neck, chest, lungs, sternum, diaphragm, back, or abdomen, or results in
232.2straddling a child's torso.
232.3    Subd. 5. Training for staff. (a) To meet the requirements of subdivision 1, staff
232.4who use restrictive procedures, including paraprofessionals, shall complete training in
232.5the following skills and knowledge areas:
232.6(1) positive behavioral interventions;
232.7(2) communicative intent of behaviors;
232.8(3) relationship building;
232.9(4) alternatives to restrictive procedures, including techniques to identify events and
232.10environmental factors that may escalate behavior;
232.11(5) de-escalation methods;
232.12(6) standards for using restrictive procedures only in an emergency;
232.13(7) obtaining emergency medical assistance;
232.14(8) the physiological and psychological impact of physical holding and seclusion;
232.15(9) monitoring and responding to a child's physical signs of distress when physical
232.16holding is being used;
232.17(10) recognizing the symptoms of and interventions that may cause positional
232.18asphyxia when physical holding is used;
232.19(11) district policies and procedures for timely reporting and documenting each
232.20incident involving use of a restricted procedure; and
232.21(12) schoolwide programs on positive behavior strategies.
232.22(b) The commissioner, after consulting with the commissioner of human services,
232.23must develop and maintain a list of training programs that satisfy the requirements of
232.24paragraph (a). The commissioner also must develop and maintain a list of experts to
232.25help individualized education program teams reduce the use of restrictive procedures.
232.26The district shall maintain records of staff who have been trained and the organization
232.27or professional that conducted the training. The district may collaborate with children's
232.28community mental health providers to coordinate trainings.
232.29    Subd. 6. Behavior supports; reasonable force. (a) School districts are encouraged
232.30to establish effective schoolwide systems of positive behavior interventions and supports.
232.31(b) Nothing in this section or section 125A.0941 precludes the use of reasonable
232.32force under sections 121A.582; 609.06, subdivision 1; and 609.379. For the 2014-2015
232.33school year and later, districts must collect and submit to the commissioner summary
232.34data, consistent with subdivision 3, paragraph (b), on district use of reasonable force
232.35that is consistent with the definition of physical holding or seclusion for a child with a
232.36disability under this section.
233.1EFFECTIVE DATE.This section is effective the day following final enactment.

233.2    Sec. 2. Minnesota Statutes 2013 Supplement, section 125A.11, subdivision 1, is
233.3amended to read:
233.4    Subdivision 1. Nonresident tuition rate; other costs. (a) For fiscal year 2015 and
233.5later, when a school district provides special instruction and services for a pupil with
233.6a disability as defined in section 125A.02 outside the district of residence, excluding
233.7a pupil for whom an adjustment to special education aid is calculated according to
233.8section 127A.47, subdivision 7, paragraphs (b) to (d), special education aid paid to the
233.9resident district must be reduced by an amount equal to (1) the actual cost of providing
233.10special instruction and services to the pupil, including a proportionate amount for special
233.11transportation and unreimbursed building lease and debt service costs for facilities used
233.12primarily for special education, plus (2) the amount of general education revenue and
233.13referendum equalization aid attributable to that pupil, calculated using the resident district's
233.14average general education revenue and referendum equalization aid per adjusted pupil
233.15unit excluding basic skills revenue, elementary sparsity revenue and secondary sparsity
233.16revenue, minus (3) the amount of special education aid for children with a disability
233.17under section 125A.76 received on behalf of that child, minus (4) if the pupil receives
233.18special instruction and services outside the regular classroom for more than 60 percent
233.19of the school day, the amount of general education revenue and referendum equalization
233.20aid, excluding portions attributable to district and school administration, district support
233.21services, operations and maintenance, capital expenditures, and pupil transportation,
233.22attributable to that pupil for the portion of time the pupil receives special instruction
233.23and services outside of the regular classroom, calculated using the resident district's
233.24average general education revenue and referendum equalization aid per adjusted pupil unit
233.25excluding basic skills revenue, elementary sparsity revenue and secondary sparsity revenue
233.26and the serving district's basic skills revenue, elementary sparsity revenue and secondary
233.27sparsity revenue per adjusted pupil unit. Notwithstanding clauses (1) and (4), for pupils
233.28served by a cooperative unit without a fiscal agent school district, the general education
233.29revenue and referendum equalization aid attributable to a pupil must be calculated using
233.30the resident district's average general education revenue and referendum equalization aid
233.31excluding compensatory revenue, elementary sparsity revenue, and secondary sparsity
233.32revenue. Special education aid paid to the district or cooperative providing special
233.33instruction and services for the pupil must be increased by the amount of the reduction in
233.34the aid paid to the resident district. Amounts paid to cooperatives under this subdivision
233.35and section 127A.47, subdivision 7, shall be recognized and reported as revenues and
234.1expenditures on the resident school district's books of account under sections 123B.75
234.2and 123B.76. If the resident district's special education aid is insufficient to make the full
234.3adjustment, the remaining adjustment shall be made to other state aid due to the district.
234.4    (b) Notwithstanding paragraph (a) and section 127A.47, subdivision 7, paragraphs
234.5(b) to (d), a charter school where more than 30 percent of enrolled students receive special
234.6education and related services, a site approved under section 125A.515, an intermediate
234.7district, a special education cooperative, or a school district that served as the applicant
234.8agency for a group of school districts for federal special education aids for fiscal year
234.92006 may apply to the commissioner for authority to charge the resident district an
234.10additional amount to recover any remaining unreimbursed costs of serving pupils with
234.11a disability. The application must include a description of the costs and the calculations
234.12used to determine the unreimbursed portion to be charged to the resident district. Amounts
234.13approved by the commissioner under this paragraph must be included in the tuition billings
234.14or aid adjustments under paragraph (a), or section 127A.47, subdivision 7, paragraphs
234.15(b) to (d), as applicable.
234.16    (c) For purposes of this subdivision and section 127A.47, subdivision 7, paragraphs
234.17(d) and (e) paragraph (b), "general education revenue and referendum equalization aid"
234.18means the sum of the general education revenue according to section 126C.10, subdivision
234.191, excluding the local optional levy according to section 126C.10, subdivision 2e, paragraph
234.20(c), plus the referendum equalization aid according to section 126C.17, subdivision 7.
234.21EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
234.22and later.

234.23    Sec. 3. Minnesota Statutes 2013 Supplement, section 125A.76, subdivision 1, is
234.24amended to read:
234.25    Subdivision 1. Definitions. (a) For the purposes of this section and section 125A.79,
234.26the definitions in this subdivision apply.
234.27    (b) "Basic revenue" has the meaning given it in section 126C.10, subdivision 2.
234.28For the purposes of computing basic revenue pursuant to this section, each child with a
234.29disability shall be counted as prescribed in section 126C.05, subdivision 1.
234.30    (c) "Essential personnel" means teachers, cultural liaisons, related services, and
234.31support services staff providing services to students. Essential personnel may also include
234.32special education paraprofessionals or clericals providing support to teachers and students
234.33by preparing paperwork and making arrangements related to special education compliance
234.34requirements, including parent meetings and individualized education programs. Essential
234.35personnel does not include administrators and supervisors.
235.1    (d) "Average daily membership" has the meaning given it in section 126C.05.
235.2    (e) "Program growth factor" means 1.046 for fiscal years 2012 though through 2015,
235.31.0 for fiscal year 2016, 1.046 for fiscal year 2017, and the product of 1.046 and the
235.4program growth factor for the previous year for fiscal year 2018 and later.
235.5(f) "Nonfederal special education expenditure" means all direct expenditures that
235.6are necessary and essential to meet the district's obligation to provide special instruction
235.7and services to children with a disability according to sections 124D.454, 125A.03 to
235.8125A.24 , 125A.259 to 125A.48, and 125A.65 as submitted by the district and approved by
235.9the department under section 125A.75, subdivision 4, excluding expenditures:
235.10(1) reimbursed with federal funds;
235.11(2) reimbursed with other state aids under this chapter;
235.12(3) for general education costs of serving students with a disability;
235.13(4) for facilities;
235.14(5) for pupil transportation; and
235.15(6) for postemployment benefits.
235.16(g) "Old formula special education expenditures" means expenditures eligible for
235.17revenue under Minnesota Statutes 2012, section 125A.76, subdivision 2.
235.18    (h) For the Minnesota State Academy for the Deaf and the Minnesota State Academy
235.19for the Blind, expenditures under paragraphs (f) and (g) are limited to the salary and
235.20fringe benefits of one-to-one instructional and behavior management aides and one-to-one
235.21licensed, certified professionals assigned to a child attending the academy, if the aides or
235.22professionals are required by the child's individualized education program.
235.23(h) (i) "Cross subsidy reduction aid percentage" means 1.0 percent for fiscal year
235.242014 and 2.27 percent for fiscal year 2015.
235.25(i) (j) "Cross subsidy reduction aid limit" means $20 for fiscal year 2014 and $48
235.26for fiscal year 2015.
235.27(j) (k) "Special education aid increase limit" means $80 for fiscal year 2016, $100
235.28for fiscal year 2017, and, for fiscal year 2018 and later, the sum of the special education
235.29aid increase limit for the previous fiscal year and $40.
235.30EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
235.31and later.

235.32    Sec. 4. Minnesota Statutes 2012, section 125A.76, subdivision 2, is amended to read:
235.33    Subd. 2. Special education initial aid. The special education initial aid equals the
235.34sum of the following amounts computed using current year data:
236.1    (1) 68 percent of the salary of each essential person employed in the district's program
236.2for children with a disability during the fiscal year, whether the person is employed by one
236.3or more districts or a Minnesota correctional facility operating on a fee-for-service basis;
236.4    (2) for the Minnesota State Academy for the Deaf or the Minnesota State Academy
236.5for the Blind, 68 percent of the salary of each one to one one-to-one instructional and
236.6behavior management aide and one-to-one licensed, certified professional assigned to
236.7a child attending the academy, if the aides or professionals are required by the child's
236.8individualized education program;
236.9    (3) for special instruction and services provided to any pupil by contracting with
236.10public, private, or voluntary agencies other than school districts, in place of special
236.11instruction and services provided by the district, 52 percent of the difference between
236.12the amount of the contract and the general education revenue, excluding basic skills
236.13revenue and alternative teacher compensation revenue, and referendum equalization aid
236.14attributable to a pupil, calculated using the resident district's average general education
236.15revenue and referendum equalization aid per adjusted pupil unit for the fraction of the
236.16school day the pupil receives services under the contract. This includes children who
236.17are residents of the state, receive services under this subdivision and subdivision 1, and
236.18are placed in a care and treatment facility by court action in a state that does not have a
236.19reciprocity agreement with the commissioner under section 125A.155 as provided for in
236.20section 125A.79, subdivision 8;
236.21    (4) for special instruction and services provided to any pupil by contracting for
236.22services with public, private, or voluntary agencies other than school districts, that are
236.23supplementary to a full educational program provided by the school district, 52 percent of
236.24the amount of the contract for that pupil;
236.25    (5) for supplies and equipment purchased or rented for use in the instruction of
236.26children with a disability, an amount equal to 47 percent of the sum actually expended by
236.27the district, or a Minnesota correctional facility operating on a fee-for-service basis, but
236.28not to exceed an average of $47 in any one school year for each child with a disability
236.29receiving instruction;
236.30    (6) for fiscal years 1997 and later, special education base revenue shall include
236.31amounts under clauses (1) to (5) for special education summer programs provided during
236.32the base year for that fiscal year;
236.33    (7) the cost of providing transportation services for children with disabilities under
236.34section 123B.92, subdivision 1, paragraph (b), clause (4); and
236.35    (8) the district's transition-disabled program initial aid according to section
236.36124D.454, subdivision 3 .
237.1    The department shall establish procedures through the uniform financial accounting
237.2and reporting system to identify and track all revenues generated from third-party billings
237.3as special education revenue at the school district level; include revenue generated from
237.4third-party billings as special education revenue in the annual cross-subsidy report; and
237.5exclude third-party revenue from calculation of excess cost aid to the districts.
237.6EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
237.7and later.

237.8    Sec. 5. Minnesota Statutes 2013 Supplement, section 125A.76, subdivision 2a, is
237.9amended to read:
237.10    Subd. 2a. Special education initial aid. For fiscal year 2016 and later, a district's
237.11special education initial aid equals the sum of:
237.12(1) the lesser least of 62 percent of the district's old formula special education
237.13expenditures for the prior fiscal year, excluding pupil transportation expenditures, 50
237.14percent of the district's nonfederal special education expenditures for the prior year,
237.15excluding pupil transportation expenditures, or 56 percent of the product of the sum of the
237.16following amounts, computed using prior fiscal year data, and the program growth factor:
237.17(i) the product of the district's average daily membership served and the sum of:
237.18(A) $450; plus
237.19(B) $400 times the ratio of the sum of the number of pupils enrolled on October 1
237.20who are eligible to receive free lunch plus one-half of the pupils enrolled on October 1
237.21who are eligible to receive reduced-price lunch to the total October 1 enrollment; plus
237.22(C) .008 times the district's average daily membership served; plus
237.23(ii) $10,400 times the December 1 child count for the primary disability areas of
237.24autism spectrum disorders, developmental delay, and severely multiply impaired; plus
237.25(iii) $18,000 times the December 1 child count for the primary disability areas of
237.26deaf and hard-of-hearing and emotional or behavioral disorders; plus
237.27(iv) $27,000 times the December 1 child count for the primary disability areas of
237.28developmentally cognitive mild-moderate, developmentally cognitive severe-profound,
237.29physically impaired, visually impaired, and deafblind; plus
237.30(2) the cost of providing transportation services for children with disabilities under
237.31section 123B.92, subdivision 1, paragraph (b), clause (4).
237.32EFFECTIVE DATE.This section is effective for revenue for fiscal year 2016
237.33and later.

238.1    Sec. 6. Minnesota Statutes 2013 Supplement, section 125A.76, subdivision 2b, is
238.2amended to read:
238.3    Subd. 2b. Cross subsidy reduction aid. For fiscal years 2014 and 2015, the cross
238.4subsidy reduction aid for a school district, not including a charter school, equals the
238.5lesser of (a) the product of the cross subsidy reduction aid limit and the district's average
238.6daily membership served or (b) the sum of the product of the cross subsidy reduction aid
238.7percentage, the district's average daily membership served, and the sum of:
238.8(1) $450; plus
238.9(2) $400 times the ratio of the sum of the number of pupils enrolled on October 1
238.10who are eligible to receive free lunch plus one-half of the pupils enrolled on October 1
238.11who are eligible to receive reduced-price lunch to the total October 1 enrollment; plus
238.12(3) .008 times the district's average daily membership served; plus the product of the
238.13cross subsidy aid percentage and the sum of:
238.14(i) $10,100 times the December 1 child count for the primary disability areas of
238.15autism spectrum disorders, developmental delay, and severely multiply impaired; plus
238.16(ii) $17,500 times the December 1 child count for the primary disability areas of
238.17deaf and hard-of-hearing and emotional or behavioral disorders; plus
238.18(iii) $26,000 times the December 1 child count for the primary disability areas of
238.19developmentally cognitive mild-moderate, developmentally cognitive severe-profound,
238.20physically impaired, visually impaired, and deafblind.
238.21EFFECTIVE DATE.This section is effective the day following final enactment
238.22and applies to revenue for fiscal year 2014 and later.

238.23    Sec. 7. Minnesota Statutes 2013 Supplement, section 125A.76, subdivision 2c, is
238.24amended to read:
238.25    Subd. 2c. Special education aid. (a) For fiscal year 2014 and fiscal year 2015, a
238.26district's special education aid equals the sum of the district's special education initial aid
238.27under subdivision 5, the district's cross subsidy reduction aid under subdivision 2b, and
238.28the district's excess cost aid under section 125A.79, subdivision 7.
238.29(b) For fiscal year 2016 and later, a district's special education aid equals the sum of
238.30the district's special education initial aid under subdivision 2a and the district's excess cost
238.31aid under section 125A.79, subdivision 5.
238.32(c) Notwithstanding paragraph (b), for fiscal year 2016, the special education aid for
238.33a school district must not exceed the sum of the special education aid the district would
238.34have received for fiscal year 2016 under Minnesota Statutes 2012, sections 125A.76
238.35and 125A.79, as adjusted according to Minnesota Statutes 2012, sections 125A.11 and
239.1127A.47, subdivision 7 , and the product of the district's average daily membership served
239.2and the special education aid increase limit.
239.3(d) Notwithstanding paragraph (b), for fiscal year 2017 and later, the special education
239.4aid for a school district must not exceed the sum of: (i) the product of the district's average
239.5daily membership served and the special education aid increase limit and (ii) the product
239.6of the sum of the special education aid the district would have received for fiscal year 2016
239.7under Minnesota Statutes 2012, sections 125A.76 and 125A.79, as adjusted according
239.8to Minnesota Statutes 2012, sections 125A.11 and 127A.47, subdivision 7, the ratio of
239.9the district's average daily membership served for the current fiscal year to the district's
239.10average daily membership served for fiscal year 2016, and the program growth factor.
239.11(e) Notwithstanding paragraph (b), for fiscal year 2016 and later the special education
239.12aid for a school district, not including a charter school, must not be less than the lesser of
239.13(1) the district's nonfederal special education expenditures for that fiscal year or (2) the
239.14product of the sum of the special education aid the district would have received for fiscal
239.15year 2016 under Minnesota Statutes 2012, sections 125A.76 and 125A.79, as adjusted
239.16according to Minnesota Statutes 2012, sections 125A.11 and 127A.47, subdivision 7, the
239.17ratio of the district's adjusted daily membership for the current fiscal year to the district's
239.18average daily membership for fiscal year 2016, and the program growth factor.
239.19EFFECTIVE DATE.This section is effective the day following final enactment
239.20and applies to revenue for fiscal year 2014 and later.

239.21    Sec. 8. Minnesota Statutes 2013 Supplement, section 125A.79, subdivision 1, is
239.22amended to read:
239.23    Subdivision 1. Definitions. For the purposes of this section, the definitions in this
239.24subdivision apply.
239.25    (a) "Unreimbursed old formula special education expenditures" means:
239.26    (1) old formula special education expenditures for the prior fiscal year; minus
239.27    (2) for fiscal years 2014 and 2015, the sum of the special education aid under section
239.28125A.76, subdivision 5, for the prior fiscal year and the cross subsidy reduction aid under
239.29section 125A.76, subdivision 2b, and for fiscal year 2016 and later, the special education
239.30initial aid under section 125A.76, subdivision 2a; minus
239.31(3) for fiscal year 2016 and later, the amount of general education revenue, excluding
239.32local optional revenue, plus local optional aid and referendum equalization aid for the
239.33prior fiscal year attributable to pupils receiving special instruction and services outside the
239.34regular classroom for more than 60 percent of the school day for the portion of time the
239.35pupils receive special instruction and services outside the regular classroom, excluding
240.1portions attributable to district and school administration, district support services,
240.2operations and maintenance, capital expenditures, and pupil transportation.
240.3(b) "Unreimbursed nonfederal special education expenditures" means:
240.4(1) nonfederal special education expenditures for the prior fiscal year; minus
240.5(2) special education initial aid under section 125A.76, subdivision 2a; minus
240.6(3) the amount of general education revenue and referendum equalization aid for the
240.7prior fiscal year attributable to pupils receiving special instruction and services outside the
240.8regular classroom for more than 60 percent of the school day for the portion of time the
240.9pupils receive special instruction and services outside of the regular classroom, excluding
240.10portions attributable to district and school administration, district support services,
240.11operations and maintenance, capital expenditures, and pupil transportation.
240.12    (c) "General revenue" for a school district means the sum of the general education
240.13revenue according to section 126C.10, subdivision 1, excluding alternative teacher
240.14compensation revenue, minus transportation sparsity revenue minus, local optional
240.15revenue, and total operating capital revenue. "General revenue" for a charter school means
240.16the sum of the general education revenue according to section 124D.11, subdivision 1, and
240.17transportation revenue according to section 124D.11, subdivision 2, excluding alternative
240.18teacher compensation revenue, minus referendum equalization aid minus, transportation
240.19sparsity revenue minus, and operating capital revenue.
240.20EFFECTIVE DATE.This section is effective the day following final enactment
240.21and applies to revenue for fiscal year 2014 and later.

240.22    Sec. 9. Minnesota Statutes 2013 Supplement, section 125A.79, subdivision 5, is
240.23amended to read:
240.24    Subd. 5. Initial Excess cost aid. For fiscal year 2016 and later, a district's initial
240.25 excess cost aid equals the greater of:
240.26    (1) 56 percent of the difference between (i) the district's unreimbursed nonfederal
240.27special education expenditures and (ii) 7.0 percent of the district's general revenue;
240.28    (2) 62 percent of the difference between (i) the district's unreimbursed old formula
240.29special education expenditures and (ii) 2.5 percent of the district's general revenue; or
240.30    (3) zero.
240.31EFFECTIVE DATE.This section is effective for revenue for fiscal year 2016
240.32and later.

241.1    Sec. 10. Minnesota Statutes 2013 Supplement, section 125A.79, subdivision 8, is
241.2amended to read:
241.3    Subd. 8. Out-of-state tuition. For children who are residents of the state, receive
241.4services under section 125A.76, subdivisions 1 and 2, and are placed in a care and
241.5treatment facility by court action in a state that does not have a reciprocity agreement with
241.6the commissioner under section 125A.155, the resident school district shall submit the
241.7balance receive special education out-of-state tuition aid equal to the amount of the tuition
241.8bills, minus (1) the general education revenue, excluding basic skills revenue and the local
241.9optional levy attributable to the pupil, calculated using the resident district's average
241.10general education revenue per adjusted pupil unit, and (2) the referendum equalization aid
241.11attributable to the pupil, calculated using the resident district's average general education
241.12revenue and referendum equalization aid per adjusted pupil unit minus, and (3) the special
241.13education contracted services initial revenue aid attributable to the pupil.
241.14EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
241.15and later.

241.16    Sec. 11. Laws 2013, chapter 116, article 5, section 31, subdivision 8, is amended to read:
241.17    Subd. 8. Special education paperwork cost savings. (a) For the contract to
241.18customize a statewide online reporting system and effect special education paperwork
241.19cost savings:

241.20

$

1,763,000

.....

2014

241.21For a transfer to MNIT. This appropriation is available in fiscal year 2015 if not and
241.22must be expended according to this subdivision for online due process reporting.
241.23(b) To ensure a strong focus on outcomes for children with disabilities informs
241.24federal and state compliance and accountability requirements and to increase opportunities
241.25for special educators and related-services providers to focus on teaching children with
241.26disabilities, the commissioner must customize a streamlined, user-friendly statewide
241.27online system, with a single model online form, for effectively and efficiently collecting
241.28and reporting required special education-related data to individuals with a legitimate
241.29educational interest and who are authorized by law to access the data.
241.30(c) The commissioner must consult with qualified experts, including information
241.31technology specialists, licensed special education teachers and directors of special
241.32education, related-services providers, third-party vendors, a designee of the commissioner
241.33of human services, parents of children with disabilities, representatives of advocacy groups
241.34representing children with disabilities, and representatives of school districts and special
242.1education cooperatives on integrating, field testing, customizing, and sustaining this simple,
242.2easily accessible, efficient, and effective online data system for uniform statewide reporting
242.3of required due process compliance data. Among other outcomes, the system must:
242.4    (1) reduce special education teachers' paperwork burden and thereby increase the
242.5teachers' opportunities to focus on teaching children;
242.6(2) to the extent authorized by chapter 13 or other applicable state or federal law
242.7governing access to and dissemination of educational records, provide for efficiently
242.8and effectively transmitting the records of all transferring children with disabilities,
242.9including highly mobile and homeless children with disabilities, among others, and avoid
242.10fragmented service delivery;
242.11(3) address language and other barriers and disparities that prevent parents from
242.12understanding and communicating information about the needs of their children with
242.13disabilities; and
242.14(4) help continuously improve the interface among the online systems serving
242.15children with disabilities in order to maintain and reinforce the children's ability to learn.
242.16(d) The commissioner must use the federal Office of Special Education Programs
242.17model forms for the (1) individualized education program, (2) notice of procedural
242.18safeguards, and (3) prior written notice that are consistent with Part B of IDEA to integrate
242.19and customize a state-sponsored universal special education online case management
242.20system, consistent with the requirements of state law and this subdivision for customizing
242.21a statewide online reporting system. The commissioner must use a request for proposal
242.22process to contract for the technology and software needed for customizing the online
242.23system in order for the system to be fully functional, consistent with the requirements of
242.24this subdivision. This online system must be made available to school districts without
242.25charge beginning in the 2015-2016 school year. For the 2015-2016 through 2017-2018
242.26school years, school districts may use this online system or may contract with an outside
242.27vendor for compliance reporting. Beginning in the 2018-2019 school year and later,
242.28school districts must use this online system for compliance reporting.
242.29(e) All data on individuals maintained in the statewide reporting system are
242.30classified as provided in chapter 13 or other applicable state or federal law. An authorized
242.31individual's ability to enter, update, or access data must be limited through the use of
242.32role-based access codes corresponding to that individual's official duties or training level,
242.33and the statutory authorization that grants access for a particular purpose. Any action
242.34in which data in the system are entered, updated, accessed, or shared or disseminated
242.35outside of the system must be recorded in an audit trail. The audit trail must identify the
242.36specific user responsible for the action, the date and time the action occurred, and the
243.1purpose for the action. Data contained in the audit trail maintain the same classification
243.2as the underlying data affected by the action, provided the responsible authority makes
243.3the data available to a student or the student's parent upon request, and the responsible
243.4authority may access the data to audit the system's user activity and security safeguards.
243.5Before entering data on a student, the responsible authority must provide the student or the
243.6student's parent written notice of the data practices rights and responsibilities required by
243.7this subdivision and a reasonable opportunity to refuse consent to have the student's data
243.8included in the system. Upon receiving the student or the student's parent written refusal
243.9to consent, the school district must not enter data on that student into the system and must
243.10delete any existing data on that student currently in the system.
243.11(f) Consistent with this subdivision, the commissioner must establish a public
243.12Internet Web interface to provide information to educators, parents, and the public about
243.13the form and content of required special education reports, to respond to queries from
243.14educators, parents, and the public about specific aspects of special education reports
243.15and reporting, and to use the information garnered from the interface to streamline and
243.16revise special education reporting on the online system under this subdivision. The public
243.17Internet Web interface must have a prominently-linked page describing the rights and
243.18responsibilities of students and parents whose data are included in the statewide reporting
243.19system, and include information on the data practices rights of students and parents
243.20provided by this subdivision and a form students or parents may use to refuse consent to
243.21have a student's data included in the system. The public Internet Web interface must not
243.22provide access to the educational records of any individual child.
243.23(g) The commissioner annually by February 1 must submit to the legislature a report
243.24on the status, recent changes, and sustainability of the online system under this subdivision.
243.25EFFECTIVE DATE.This section is effective the day following final enactment.

243.26    Sec. 12. RULEMAKING AUTHORITY; SPECIAL EDUCATION TASK FORCE
243.27RECOMMENDATIONS.
243.28The commissioner of education must use the expedited rulemaking process under
243.29Minnesota Statutes, section 14.389, including subdivision 5, to make the specific rule
243.30changes recommended by the Special Education Case Load and Rule Alignment Task
243.31Force in its 2014 report entitled "Recommendations for Special Education Case Load and
243.32Rule Alignment" submitted to the legislature on February 15, 2014.
243.33EFFECTIVE DATE.This section is effective the day following final enactment.

244.1    Sec. 13. APPROPRIATION.
244.2    Subdivision 1. Department of Education. The sums indicated in this section are
244.3appropriated from the general fund to the Department of Education for the fiscal years
244.4designated.
244.5    Subd. 2. Department assistance. For the commissioner of education to assist
244.6school districts in meeting the needs of children who have experienced a high use of prone
244.7restraints, consistent with Minnesota Statutes 2013 Supplement, section 125A.0942:

244.8

$

250,000

.....

2015

244.9The commissioners of education and human services, or their designees, must
244.10discuss coordinating use of funds and personnel available for this purpose within their
244.11respective departments. This is a onetime appropriation.

244.12ARTICLE 18

244.13FACILITIES

244.14    Section 1. [123A.482] JOINT POWERS COOPERATIVE FACILITY.
244.15    Subdivision 1. Schools may be jointly operated. Two or more school districts may
244.16agree to jointly operate a secondary facility. The districts may choose to operate the
244.17facility according to a joint powers agreement under section 123A.78 or 471.59.
244.18    Subd. 2. Expanded program offerings. A jointly operated secondary program
244.19seeking funding under section 123A.485 must demonstrate to the commissioner's
244.20satisfaction that the jointly operated program provides enhanced learning opportunities and
244.21broader curriculum offerings to the students attending that program. The commissioner
244.22must approve or disapprove a cooperative secondary program within 60 days of receipt of
244.23an application.
244.24    Subd. 3. Transfer of employees. If an employee is transferred between two
244.25employer members of the joint powers agreement under this section, the employee's
244.26length of service under section 122A.40, subdivision 5, remains uninterrupted. The
244.27employee shall receive credit on the receiving district's salary schedule for the employee's
244.28educational attainment and years of continuous service in the sending district, or shall
244.29receive a comparable salary, whichever is greater. The employee shall receive credit for
244.30accrued sick leave and rights to severance benefits as if the employee had been employed
244.31by the receiving district during the employee's years of employment in the sending district.
244.32    Subd. 4. Revenue. An approved program that is jointly operated under this section
244.33is eligible for aid under section 123A.485 and qualifies for a facilities grant under sections
244.34123A.44 to 123A.446.
245.1    Subd. 5. Duty to maintain elementary and secondary schools met. A school
245.2district operating a joint facility under this section meets the requirements of section
245.3123A.64.
245.4    Subd. 6. Estimated market value limit exclusion. Bonds for a cooperative facility
245.5operated under this section issued by a member school district are not subject to the net
245.6debt limit under section 475.53, subdivision 4.
245.7    Subd. 7. Allocation of levy authority for joint facility. For purposes of determining
245.8each member district's school levy, a jointly operated secondary program may allocate
245.9program costs to each member district according to the joint powers agreement and each
245.10member district may include those costs in its tax levy. The joint powers agreement may
245.11choose to allocate costs on any basis adopted as part of the joint powers agreement.
245.12    Subd. 8. Effect of consolidation. The joint powers agreement may allow member
245.13school districts that choose to consolidate to continue to certify levies separately based on
245.14each component district's characteristics.
245.15    Subd. 9. Bonds. A joint powers district formed under this section may issue bonds
245.16according to section 123A.78 or its member districts may issue bonds individually after
245.17complying with this subdivision. The joint powers board must submit the project for
245.18review and comment under section 123B.71. The joint powers board must hold a hearing
245.19on the proposal. If the bonds are not issued under section 123A.78, each member district
245.20of the joint powers district must submit the question of authorizing borrowing of funds for
245.21the project to the voters of the district at a special election. The question submitted shall
245.22state the total amount of funding needed from that district. The member district may issue
245.23the bonds according to chapter 475 and certify the levy required by section 475.61 only if
245.24a majority of those voting on the question in that district vote in the affirmative and only
245.25after the board has adopted a resolution pledging the full faith and credit of that unit. The
245.26resolution must irrevocably commit that unit to pay an agreed-upon share of any debt levy
245.27shortages that, together with other funds available, would allow the member school board
245.28to pay the principal and interest on the obligations. The clerk of the joint powers board
245.29must certify the vote of any bond elections to the commissioner. Bonds issued under this
245.30section first qualify for debt service equalization aid in fiscal year 2018.
245.31    Subd. 10. Election. A district entering into a joint powers agreement under this
245.32section may conduct a referendum seeking approval for a new facility. This election may
245.33be held separately or at the same time as a bond election under subdivision 9. If the
245.34election is held at the same time, the questions may be asked separately or as a conjunctive
245.35question. The question must be approved by a majority of those voting on the question.
246.1If asked separately and the question fails, a district may not proceed with the sale of
246.2bonds according to subdivision 9.
246.3EFFECTIVE DATE.This section is effective the day following final enactment.

246.4    Sec. 2. Minnesota Statutes 2012, section 123A.64, is amended to read:
246.5123A.64 DUTY TO MAINTAIN ELEMENTARY AND SECONDARY
246.6SCHOOLS.
246.7Each district must maintain classified elementary and secondary schools, grades 1
246.8through 12, unless the district is exempt according to section 123A.61 or 123A.62, has
246.9made an agreement with another district or districts as provided in sections 123A.30,
246.10123A.32 , or sections 123A.35 to 123A.43, or 123A.17, subdivision 7, or has received a
246.11grant under sections 123A.441 to 123A.446, or has formed a cooperative under section
246.12123A.482. A district that has an agreement according to sections 123A.35 to 123A.43 or
246.13123A.32 must operate a school with the number of grades required by those sections. A
246.14district that has an agreement according to section 123A.30 or 123A.17, subdivision 7, or
246.15has received a grant under sections 123A.441 to 123A.446 must operate a school for the
246.16grades not included in the agreement, but not fewer than three grades.

246.17    Sec. 3. Minnesota Statutes 2013 Supplement, section 123B.53, subdivision 1, is
246.18amended to read:
246.19    Subdivision 1. Definitions. (a) For purposes of this section, the eligible debt service
246.20revenue of a district is defined as follows:
246.21    (1) the amount needed to produce between five and six percent in excess of the
246.22amount needed to meet when due the principal and interest payments on the obligations
246.23of the district for eligible projects according to subdivision 2, including the amounts
246.24necessary for repayment of energy loans according to section 216C.37 or sections 298.292
246.25to 298.298, debt service loans and capital loans, lease purchase payments under section
246.26126C.40, subdivision 2 , alternative facilities levies under section 123B.59, subdivision
246.275 , paragraph (a), minus
246.28    (2) the amount of debt service excess levy reduction for that school year calculated
246.29according to the procedure established by the commissioner.
246.30    (b) The obligations in this paragraph are excluded from eligible debt service revenue:
246.31    (1) obligations under section 123B.61;
246.32    (2) the part of debt service principal and interest paid from the taconite environmental
246.33protection fund or Douglas J. Johnson economic protection trust, excluding the portion of
247.1taconite payments from the Iron Range school consolidation and cooperatively operated
247.2school account under section 298.28, subdivision 7a;
247.3    (3) obligations issued under Laws 1991, chapter 265, article 5, section 18, as
247.4amended by Laws 1992, chapter 499, article 5, section 24; and
247.5    (4) obligations under section 123B.62; and
247.6    (5) obligations equalized under section 123B.535.
247.7    (c) For purposes of this section, if a preexisting school district reorganized under
247.8sections 123A.35 to 123A.43, 123A.46, and 123A.48 is solely responsible for retirement
247.9of the preexisting district's bonded indebtedness, capital loans or debt service loans, debt
247.10service equalization aid must be computed separately for each of the preexisting districts.
247.11    (d) For purposes of this section, the adjusted net tax capacity determined according
247.12to sections 127A.48 and 273.1325 shall be adjusted to include the tax capacity of property
247.13generally exempted from ad valorem taxes under section 272.02, subdivision 64.
247.14EFFECTIVE DATE.This section is effective for fiscal year 2017 and later.

247.15    Sec. 4. Minnesota Statutes 2013 Supplement, section 123B.53, subdivision 5, is
247.16amended to read:
247.17    Subd. 5. Equalized debt service levy. (a) The equalized debt service levy of a
247.18district equals the sum of the first tier equalized debt service levy and the second tier
247.19equalized debt service levy.
247.20(b) A district's first tier equalized debt service levy equals the district's first tier debt
247.21service equalization revenue times the lesser of one or the ratio of:
247.22(1) the quotient derived by dividing the adjusted net tax capacity of the district for
247.23the year before the year the levy is certified by the adjusted pupil units in the district for
247.24the school year ending in the year prior to the year the levy is certified; to
247.25(2) $3,550 $3,400 in fiscal year 2016 and $4,430 in fiscal year 2017 and later.
247.26(c) A district's second tier equalized debt service levy equals the district's second tier
247.27debt service equalization revenue times the lesser of one or the ratio of:
247.28(1) the quotient derived by dividing the adjusted net tax capacity of the district for
247.29the year before the year the levy is certified by the adjusted pupil units in the district for
247.30the school year ending in the year prior to the year the levy is certified; to
247.31(2) $7,900 $8,000.
247.32EFFECTIVE DATE.This section is effective for revenue for fiscal year 2016
247.33and later.

248.1    Sec. 5. [123B.535] NATURAL DISASTER DEBT SERVICE EQUALIZATION.
248.2    Subdivision 1. Definitions. (a) For purposes of this section, the eligible natural
248.3disaster debt service revenue of a district is defined as the amount needed to produce
248.4between five and six percent in excess of the amount needed to meet when due the
248.5principal and interest payments on the obligations of the district that would otherwise
248.6qualify under section 123B.53 under the following conditions:
248.7(1) the district was impacted by a natural disaster event or area occurring January
248.81, 2005, or later, as declared by the President of the United States of America, which is
248.9eligible for Federal Emergency Management Agency payments;
248.10(2) the natural disaster caused $500,000 or more in damages to school district
248.11buildings; and
248.12(3) the repair and replacement costs are not covered by insurance payments or
248.13Federal Emergency Management Agency payments.
248.14(b) For purposes of this section, the adjusted net tax capacity equalizing factor
248.15equals the quotient derived by dividing the total adjusted net tax capacity of all school
248.16districts in the state for the year before the year the levy is certified by the total number of
248.17adjusted pupil units in the state for the year prior to the year the levy is certified.
248.18    (c) For purposes of this section, the adjusted net tax capacity determined according
248.19to sections 127A.48 and 273.1325 shall be adjusted to include the tax capacity of property
248.20generally exempted from ad valorem taxes under section 272.02, subdivision 64.
248.21    Subd. 2. Notification. A district eligible for natural disaster debt service
248.22equalization revenue under subdivision 1 must notify the commissioner of the amount of
248.23its intended natural disaster debt service revenue calculated under subdivision 1 for all
248.24bonds sold prior to the notification by July 1 of the calendar year the levy is certified.
248.25    Subd. 3. Natural disaster debt service equalization revenue. The debt service
248.26equalization revenue of a district equals the greater of zero or the eligible debt service
248.27revenue, minus the greater of zero or the difference between:
248.28(1) the amount raised by a levy of ten percent times the adjusted net tax capacity
248.29of the district; and
248.30(2) the district's eligible debt service revenue under section 123B.53.
248.31    Subd. 4. Equalized natural disaster debt service levy. A district's equalized
248.32natural disaster debt service levy equals the district's natural disaster debt service
248.33equalization revenue times the lesser of one or the ratio of:
248.34(1) the quotient derived by dividing the adjusted net tax capacity of the district for
248.35the year before the year the levy is certified by the adjusted pupil units in the district for
248.36the school year ending in the year prior to the year the levy is certified; to
249.1(2) 300 percent of the statewide adjusted net tax capacity equalizing factor.
249.2    Subd. 5. Natural disaster debt service equalization aid. A district's natural
249.3disaster debt service equalization aid equals the difference between the district's natural
249.4disaster debt service equalization revenue and the district's equalized natural disaster
249.5debt service levy.
249.6    Subd. 6. Natural disaster debt service equalization aid payment schedule. Debt
249.7service equalization aid must be paid according to section 127A.45, subdivision 10.
249.8EFFECTIVE DATE.This section is effective for taxes payable in 2016 and
249.9revenue for fiscal year 2017 and later.

249.10    Sec. 6. Minnesota Statutes 2013 Supplement, section 123B.54, is amended to read:
249.11123B.54 DEBT SERVICE APPROPRIATION.
249.12    (a) The amount necessary to make debt service equalization aid payments under
249.13section sections 123B.53 and 123B.535 is annually appropriated from the general fund to
249.14the commissioner of education.
249.15    (b) The appropriations in paragraph (a) must be reduced by the amount of any
249.16money specifically appropriated for the same purpose in any year from any state fund.
249.17EFFECTIVE DATE.This section is effective for revenue for fiscal year 2017
249.18and later.

249.19    Sec. 7. Minnesota Statutes 2012, section 123B.57, subdivision 6, is amended to read:
249.20    Subd. 6. Uses of health and safety revenue. (a) Health and safety revenue may be
249.21used only for approved expenditures necessary for the correction of fire and life safety
249.22hazards; design, purchase, installation, maintenance, and inspection of fire protection and
249.23alarm equipment; purchase or construction of appropriate facilities for the storage of
249.24combustible and flammable materials; inventories and facility modifications not related
249.25to a remodeling project to comply with lab safety requirements under section 121A.31;
249.26inspection, testing, repair, removal or encapsulation, and disposal of asbestos-containing
249.27building materials; cleanup and disposal of polychlorinated biphenyls; cleanup and
249.28disposal of hazardous and infectious wastes; cleanup, removal, disposal, and repairs
249.29related to storing heating fuel or transportation fuels such as alcohol, gasoline, fuel oil,
249.30and special fuel, as defined in section 296A.01; correction of occupational safety and
249.31health administration regulated hazards; indoor air quality inspections, investigations, and
249.32testing; mold abatement; upgrades or replacement of mechanical ventilation systems
249.33to meet American Society of Heating, Refrigerating and Air Conditioning Engineers
250.1standards and State Mechanical Code; design, materials, and installation of local exhaust
250.2ventilation systems, including required make-up air for controlling regulated hazardous
250.3substances; correction of Department of Health Food Code violations; correction of
250.4swimming pool hazards excluding depth correction; playground safety inspections,
250.5repair of unsafe outdoor playground equipment, and the installation of impact surfacing
250.6materials; bleacher repair or rebuilding to comply with the order of a building code
250.7inspector under section 326B.112; testing and mitigation of elevated radon hazards; lead
250.8testing; copper in water testing; cleanup after major weather-related disasters or flooding;
250.9reduction of excessive organic and inorganic levels in wells and capping of abandoned
250.10wells; installation and testing of boiler backflow valves to prevent contamination of
250.11potable water; vaccinations, titers, and preventative supplies for bloodborne pathogen
250.12compliance; costs to comply with the Janet B. Johnson Parents' Right to Know Act;
250.13automated external defibrillators and other emergency plan equipment and supplies
250.14specific to the district's emergency action plan; compliance with the National Emission
250.15Standards for Hazardous Air Pollutants for school generators established by the
250.16United States Environmental Protection Agency; and health, safety, and environmental
250.17management costs associated with implementing the district's health and safety program
250.18including costs to establish and operate safety committees, in school buildings or property
250.19owned or being acquired by the district. Testing and calibration activities are permitted for
250.20existing mechanical ventilation systems at intervals no less than every five years.
250.21(b) For fiscal years 2014 through 2017, a school district must not include expenses
250.22related to emission compliance projects for school generators in its health and safety
250.23revenue unless it reduces its approved spending on other qualified health and safety
250.24projects by the same amount.
250.25EFFECTIVE DATE.This section is effective the day following final enactment.

250.26    Sec. 8. Minnesota Statutes 2012, section 123B.71, subdivision 8, is amended to read:
250.27    Subd. 8. Review and comment. A school district, a special education cooperative,
250.28or a cooperative unit of government, as defined in section 123A.24, subdivision 2, must not
250.29initiate an installment contract for purchase or a lease agreement, hold a referendum for
250.30bonds, nor solicit bids for new construction, expansion, or remodeling of an educational
250.31facility that requires an expenditure in excess of $500,000 per school site if it has a capital
250.32loan outstanding, or $1,400,000 $2,000,000 per school site if it does not have a capital
250.33loan outstanding, prior to review and comment by the commissioner. The commissioner
250.34may exempt A facility addition, maintenance project, or remodeling project funded only
250.35with general education aid and levy revenue, deferred maintenance revenue, alternative
251.1facilities bonding and levy program revenue, lease levy proceeds, capital facilities bond
251.2proceeds, or health and safety revenue is exempt from this provision after reviewing a
251.3written request from a school district describing the scope of work. A capital project under
251.4section 123B.63 addressing only technology is exempt from this provision if the district
251.5submits a school board resolution stating that funds approved by the voters will be used
251.6only as authorized in section 126C.10, subdivision 14. A school board shall not separate
251.7portions of a single project into components to avoid the requirements of this subdivision.

251.8    Sec. 9. Minnesota Statutes 2012, section 123B.71, subdivision 9, is amended to read:
251.9    Subd. 9. Information required. A school board proposing to construct, expand,
251.10or remodel a facility described in that requires a review and comment under subdivision
251.118 shall submit to the commissioner a proposal containing information including at least
251.12the following:
251.13(1) the geographic area and population to be served, preschool through grade 12
251.14student enrollments for the past five years, and student enrollment projections for the
251.15next five years;
251.16(2) a list of existing facilities by year constructed, their uses, and an assessment of
251.17the extent to which alternate facilities are available within the school district boundaries
251.18and in adjacent school districts;
251.19(3) a list of the specific deficiencies of the facility that demonstrate the need for a
251.20new or renovated facility to be provided, the process used to determine the deficiencies, a
251.21list of those deficiencies that will and will not be addressed by the proposed project, and a
251.22list of the specific benefits that the new or renovated facility will provide to the students,
251.23teachers, and community users served by the facility;
251.24(4) the relationship of the project to any priorities established by the school district,
251.25educational cooperatives that provide support services, or other public bodies in the
251.26service area;
251.27(5) a description of the pedestrian, bicycle, and transit connections between the
251.28school and nearby residential areas that make it easier for children, teachers, and parents
251.29to get to the school by walking, bicycling, and taking transit;
251.30(6) a specification of how the project maximizes the opportunity for cooperative use
251.31of existing park, recreation, and other public facilities and whether and how the project
251.32will increase collaboration with other governmental or nonprofit entities;
251.33(7) (4) a description of the project, including the specification of site and outdoor
251.34space acreage and square footage allocations for classrooms, laboratories, and support
252.1spaces; estimated expenditures for the major portions of the project; and the dates the
252.2project will begin and be completed;
252.3(8) (5) a specification of the source of financing the project, including applicable
252.4statutory citations; the scheduled date for a bond issue or school board action; a schedule
252.5of payments, including debt service equalization aid; and the effect of a bond issue on
252.6local property taxes by the property class and valuation;
252.7(9) an analysis of how the proposed new or remodeled facility will affect school
252.8district operational or administrative staffing costs, and how the district's operating budget
252.9will cover any increased operational or administrative staffing costs;
252.10(10) a description of the consultation with local or state transportation officials
252.11on multimodal school site access and safety issues, and the ways that the project will
252.12address those issues;
252.13(11) a description of how indoor air quality issues have been considered and a
252.14certification that the architects and engineers designing the facility will have professional
252.15liability insurance;
252.16(12) as required under section 123B.72, for buildings coming into service after July 1,
252.172002, a certification that the plans and designs for the extensively renovated or new facility's
252.18heating, ventilation, and air conditioning systems will meet or exceed code standards; will
252.19provide for the monitoring of outdoor airflow and total airflow of ventilation systems; and
252.20will provide an indoor air quality filtration system that meets ASHRAE standard 52.1;
252.21(13) a specification of any desegregation requirements that cannot be met by any
252.22other reasonable means;
252.23(14) a specification of how the facility will utilize environmentally sustainable
252.24school facility design concepts;
252.25(15) a description of how the architects and engineers have considered the American
252.26National Standards Institute Acoustical Performance Criteria, Design Requirements
252.27and Guidelines for Schools of the maximum background noise level and reverberation
252.28times; and
252.29    (16) any existing information from the relevant local unit of government about the
252.30cumulative costs to provide infrastructure to serve the school, such as utilities, sewer,
252.31roads, and sidewalks.
252.32    (6) documents obligating the school district and contractors to comply with items (i)
252.33to (vii) in planning and executing the project:
252.34    (i) section 471.345 governing municipal contracts;
252.35    (ii) sustainable design;
253.1    (iii) school facility commissioning under section 123B.72 certifying the plans and
253.2designs for the heating, ventilating, air conditioning, and air filtration for an extensively
253.3renovated or new facility meet or exceed current code standards, including the ASHRAE
253.4air filtration standard 52.1;
253.5    (iv) American National Standards Institute Acoustical Performance Criteria, Design
253.6Requirements and Guidelines for Schools on maximum background noise level and
253.7reverberation times;
253.8    (v) State Fire Code;
253.9    (vi) chapter 326B governing building codes; and
253.10    (vii) consultation with affected government units about the impact of the project
253.11on utilities, roads, sewers, sidewalks, retention ponds, school bus and automobile traffic,
253.12access to mass transit, and safe access for pedestrians and cyclists.

253.13    Sec. 10. Minnesota Statutes 2012, section 123B.72, subdivision 1, is amended to read:
253.14    Subdivision 1. Application. This section applies to the installation or retrofitting of
253.15heating, ventilation, and air conditioning systems for which review and comment of the
253.16project under section 123B.71 has been requested after July 1, 1997 projects where the
253.17total project cost per site exceeds $1,400,000.
253.18EFFECTIVE DATE.This section is effective July 1, 2014.

253.19    Sec. 11. Minnesota Statutes 2012, section 123B.72, subdivision 3, is amended to read:
253.20    Subd. 3. Certification. Prior to occupying or reoccupying a school facility affected
253.21by this section, a school board or its designee shall submit a document prepared by a
253.22system inspector to the building official or to the commissioner, verifying that the facility's
253.23heating, ventilation, and air conditioning system has been installed and operates according
253.24to design specifications and code, according to section 123B.71, subdivision 9, clause (12)
253.25 (6), item (iii). A systems inspector shall also verify that the facility's design will provide
253.26the ability for monitoring of outdoor airflow and total airflow of ventilation systems in
253.27new school facilities and that any heating, ventilation, or air conditioning system that is
253.28installed or modified for a project subject to this section must provide a filtration system
253.29with a current ASHRAE standard.
253.30EFFECTIVE DATE.This section is effective July 1, 2014.

253.31    Sec. 12. Minnesota Statutes 2013 Supplement, section 126C.10, subdivision 2d,
253.32is amended to read:
254.1    Subd. 2d. Declining enrollment revenue. (a) A school district's declining
254.2enrollment revenue equals the greater of zero or the product of: (1) 28 percent of the
254.3formula allowance for that year and (2) the difference between the adjusted pupil units for
254.4the preceding year and the adjusted pupil units for the current year.
254.5(b) Notwithstanding paragraph (a), for fiscal years 2015, 2016, and 2017 only, a pupil
254.6enrolled at the Crosswinds school shall not generate declining enrollment revenue for the
254.7district or charter school in which the pupil was last counted in average daily membership.
254.8EFFECTIVE DATE.This section is effective July 1, 2014, if but only if the
254.9Crosswinds school is conveyed to the Perpich Center for Arts Education by an enactment
254.10during the 2014 regular legislative session.

254.11    Sec. 13. Minnesota Statutes 2013 Supplement, section 126C.40, subdivision 1, is
254.12amended to read:
254.13    Subdivision 1. To lease building or land. (a) When an independent or a special
254.14school district or a group of independent or special school districts finds it economically
254.15advantageous to rent or lease a building or land for any instructional purposes or for
254.16school storage or furniture repair, and it determines that the operating capital revenue
254.17authorized under section 126C.10, subdivision 13, is insufficient for this purpose, it may
254.18apply to the commissioner for permission to make an additional capital expenditure levy
254.19for this purpose. An application for permission to levy under this subdivision must contain
254.20financial justification for the proposed levy, the terms and conditions of the proposed
254.21lease, and a description of the space to be leased and its proposed use.
254.22    (b) The criteria for approval of applications to levy under this subdivision must
254.23include: the reasonableness of the price, the appropriateness of the space to the proposed
254.24activity, the feasibility of transporting pupils to the leased building or land, conformity
254.25of the lease to the laws and rules of the state of Minnesota, and the appropriateness of
254.26the proposed lease to the space needs and the financial condition of the district. The
254.27commissioner must not authorize a levy under this subdivision in an amount greater than
254.28the cost to the district of renting or leasing a building or land for approved purposes.
254.29The proceeds of this levy must not be used for custodial or other maintenance services.
254.30A district may not levy under this subdivision for the purpose of leasing or renting a
254.31district-owned building or site to itself.
254.32    (c) For agreements finalized after July 1, 1997, a district may not levy under this
254.33subdivision for the purpose of leasing: (1) a newly constructed building used primarily
254.34for regular kindergarten, elementary, or secondary instruction; or (2) a newly constructed
254.35building addition or additions used primarily for regular kindergarten, elementary, or
255.1secondary instruction that contains more than 20 percent of the square footage of the
255.2previously existing building.
255.3    (d) Notwithstanding paragraph (b), a district may levy under this subdivision for the
255.4purpose of leasing or renting a district-owned building or site to itself only if the amount
255.5is needed by the district to make payments required by a lease purchase agreement,
255.6installment purchase agreement, or other deferred payments agreement authorized by law,
255.7and the levy meets the requirements of paragraph (c). A levy authorized for a district by
255.8the commissioner under this paragraph may be in the amount needed by the district to
255.9make payments required by a lease purchase agreement, installment purchase agreement,
255.10or other deferred payments agreement authorized by law, provided that any agreement
255.11include a provision giving the school districts the right to terminate the agreement
255.12annually without penalty.
255.13    (e) The total levy under this subdivision for a district for any year must not exceed
255.14$162 $212 times the adjusted pupil units for the fiscal year to which the levy is attributable.
255.15    (f) For agreements for which a review and comment have been submitted to the
255.16Department of Education after April 1, 1998, the term "instructional purpose" as used in
255.17this subdivision excludes expenditures on stadiums.
255.18    (g) The commissioner of education may authorize a school district to exceed the
255.19limit in paragraph (e) if the school district petitions the commissioner for approval. The
255.20commissioner shall grant approval to a school district to exceed the limit in paragraph (e)
255.21for not more than five years if the district meets the following criteria:
255.22    (1) the school district has been experiencing pupil enrollment growth in the
255.23preceding five years;
255.24    (2) the purpose of the increased levy is in the long-term public interest;
255.25    (3) the purpose of the increased levy promotes colocation of government services; and
255.26    (4) the purpose of the increased levy is in the long-term interest of the district by
255.27avoiding over construction of school facilities.
255.28    (h) A school district that is a member of an intermediate school district may include
255.29in its authority under this section the costs associated with leases of administrative and
255.30classroom space for intermediate school district programs. This authority must not exceed
255.31$46 $65 times the adjusted pupil units of the member districts. This authority is in addition
255.32to any other authority authorized under this section.
255.33    (i) In addition to the allowable capital levies in paragraph (a), for taxes payable in
255.342012 to 2023, a district that is a member of the "Technology and Information Education
255.35Systems" data processing joint board, that finds it economically advantageous to enter into
255.36a lease agreement to finance improvements to a building and land for a group of school
256.1districts or special school districts for staff development purposes, may levy for its portion
256.2of lease costs attributed to the district within the total levy limit in paragraph (e). The total
256.3levy authority under this paragraph shall not exceed $632,000.
256.4(j) Notwithstanding paragraph (a), a district may levy under this subdivision for the
256.5purpose of leasing administrative space if the district can demonstrate to the satisfaction of
256.6the commissioner that the lease cost for the administrative space is no greater than the
256.7lease cost for instructional space that the district would otherwise lease. The commissioner
256.8must deny this levy authority unless the district passes a resolution stating its intent to
256.9lease instructional space under this section if the commissioner does not grant authority
256.10under this paragraph. The resolution must also certify that the lease cost for administrative
256.11space under this paragraph is no greater than the lease cost for the district's proposed
256.12instructional lease.
256.13EFFECTIVE DATE.This section is effective for taxes payable in 2015 and later.

256.14    Sec. 14. Minnesota Statutes 2013 Supplement, section 126C.48, subdivision 8, is
256.15amended to read:
256.16    Subd. 8. Taconite payment and other reductions. (1) Reductions in levies
256.17pursuant to subdivision 1 must be made prior to the reductions in clause (2).
256.18(2) Notwithstanding any other law to the contrary, districts that have revenue
256.19pursuant to sections 298.018; 298.225; 298.24 to 298.28, except an amount distributed
256.20under sections 298.26; 298.28, subdivision 4, paragraphs (c), clause (ii), and (d); 298.34
256.21to 298.39; 298.391 to 298.396; 298.405; 477A.15; and any law imposing a tax upon
256.22severed mineral values must reduce the levies authorized by this chapter and chapters
256.23120B, 122A, 123A, 123B, 124A, 124D, 125A, and 127A by 95 percent of the sum of the
256.24previous year's revenue specified under this clause and the amount attributable to the same
256.25production year distributed to the cities and townships within the school district under
256.26section 298.28, subdivision 2, paragraph (c).
256.27(3) The amount of any voter approved referendum, facilities down payment, and
256.28debt levies shall not be reduced by more than 50 percent under this subdivision, except
256.29that payments under section 298.28, subdivision 7a, may reduce the debt service levy by
256.30more than 50 percent. In administering this paragraph, the commissioner shall first reduce
256.31the nonvoter approved levies of a district; then, if any payments, severed mineral value
256.32tax revenue or recognized revenue under paragraph (2) remains, the commissioner shall
256.33reduce any voter approved referendum levies authorized under section 126C.17; then, if
256.34any payments, severed mineral value tax revenue or recognized revenue under paragraph
256.35(2) remains, the commissioner shall reduce any voter approved facilities down payment
257.1levies authorized under section 123B.63 and then, if any payments, severed mineral value
257.2tax revenue or recognized revenue under paragraph (2) remains, the commissioner shall
257.3reduce any voter approved debt levies.
257.4(4) Before computing the reduction pursuant to this subdivision of the health and
257.5safety levy authorized by sections 123B.57 and 126C.40, subdivision 5, the commissioner
257.6shall ascertain from each affected school district the amount it proposes to levy under
257.7each section or subdivision. The reduction shall be computed on the basis of the amount
257.8so ascertained.
257.9(5) To the extent the levy reduction calculated under paragraph (2) exceeds the
257.10limitation in paragraph (3), an amount equal to the excess must be distributed from the
257.11school district's distribution under sections 298.225, 298.28, and 477A.15 in the following
257.12year to the cities and townships within the school district in the proportion that their
257.13taxable net tax capacity within the school district bears to the taxable net tax capacity of
257.14the school district for property taxes payable in the year prior to distribution. No city or
257.15township shall receive a distribution greater than its levy for taxes payable in the year prior
257.16to distribution. The commissioner of revenue shall certify the distributions of cities and
257.17towns under this paragraph to the county auditor by September 30 of the year preceding
257.18distribution. The county auditor shall reduce the proposed and final levies of cities and
257.19towns receiving distributions by the amount of their distribution. Distributions to the cities
257.20and towns shall be made at the times provided under section 298.27.

257.21    Sec. 15. Minnesota Statutes 2012, section 127A.49, subdivision 2, is amended to read:
257.22    Subd. 2. Abatements. Whenever by virtue of chapter 278, sections 270C.86,
257.23375.192 , or otherwise, the net tax capacity or referendum market value of any district for
257.24any taxable year is changed after the taxes for that year have been spread by the county
257.25auditor and the local tax rate as determined by the county auditor based upon the original
257.26net tax capacity is applied upon the changed net tax capacities, the county auditor shall,
257.27prior to February 1 of each year, certify to the commissioner of education the amount of
257.28any resulting net revenue loss that accrued to the district during the preceding year. Each
257.29year, the commissioner shall pay an abatement adjustment to the district in an amount
257.30calculated according to the provisions of this subdivision. This amount shall be deducted
257.31from the amount of the levy authorized by section 126C.46. The amount of the abatement
257.32adjustment must be the product of:
257.33    (1) the net revenue loss as certified by the county auditor, times
257.34    (2) the ratio of:
258.1    (i) the sum of the amounts of the district's certified levy in the third preceding year
258.2according to the following:
258.3    (A) section 123B.57, if the district received health and safety aid according to that
258.4section for the second preceding year;
258.5    (B) section 124D.20, if the district received aid for community education programs
258.6according to that section for the second preceding year;
258.7    (C) section 124D.135, subdivision 3, if the district received early childhood family
258.8education aid according to section 124D.135 for the second preceding year;
258.9    (D) section 126C.17, subdivision 6, if the district received referendum equalization
258.10aid according to that section for the second preceding year;
258.11    (E) section 126C.10, subdivision 13a, if the district received operating capital aid
258.12according to section 126C.10, subdivision 13b, in the second preceding year;
258.13    (F) section 126C.10, subdivision 29, if the district received equity aid according to
258.14section 126C.10, subdivision 30, in the second preceding year;
258.15    (G) section 126C.10, subdivision 32, if the district received transition aid according
258.16to section 126C.10, subdivision 33, in the second preceding year;
258.17    (H) section 123B.53, subdivision 5, if the district received debt service equalization
258.18aid according to section 123B.53, subdivision 6, in the second preceding year;
258.19    (I) section 123B.535, subdivision 4, if the district received natural disaster debt
258.20service equalization aid according to section 123B.535, subdivision 5, in the second
258.21preceding year;
258.22    (I) (J) section 124D.22, subdivision 3, if the district received school-age care aid
258.23according to section 124D.22, subdivision 4, in the second preceding year;
258.24    (J) (K) section 123B.591, subdivision 3, if the district received deferred maintenance
258.25aid according to section 123B.591, subdivision 4, in the second preceding year; and
258.26    (K) (L) section 126C.10, subdivision 35, if the district received alternative teacher
258.27compensation equalization aid according to section 126C.10, subdivision 36, paragraph
258.28(a), in the second preceding year; to
258.29    (ii) the total amount of the district's certified levy in the third preceding December,
258.30plus or minus auditor's adjustments.
258.31EFFECTIVE DATE.This section is effective for revenue for fiscal year 2017
258.32and later.

258.33    Sec. 16. Minnesota Statutes 2012, section 127A.49, subdivision 3, is amended to read:
258.34    Subd. 3. Excess tax increment. (a) If a return of excess tax increment is made to a
258.35district pursuant to sections 469.176, subdivision 2, and 469.177, subdivision 9, or upon
259.1decertification of a tax increment district, the school district's aid and levy limitations
259.2must be adjusted for the fiscal year in which the excess tax increment is paid under the
259.3provisions of this subdivision.
259.4    (b) An amount must be subtracted from the district's aid for the current fiscal year
259.5equal to the product of:
259.6    (1) the amount of the payment of excess tax increment to the district, times
259.7    (2) the ratio of:
259.8    (i) the sum of the amounts of the district's certified levy for the fiscal year in which
259.9the excess tax increment is paid according to the following:
259.10    (A) section 123B.57, if the district received health and safety aid according to that
259.11section for the second preceding year;
259.12    (B) section 124D.20, if the district received aid for community education programs
259.13according to that section for the second preceding year;
259.14    (C) section 124D.135, subdivision 3, if the district received early childhood family
259.15education aid according to section 124D.135 for the second preceding year;
259.16    (D) section 126C.17, subdivision 6, if the district received referendum equalization
259.17aid according to that section for the second preceding year;
259.18    (E) section 126C.10, subdivision 13a, if the district received operating capital aid
259.19according to section 126C.10, subdivision 13b, in the second preceding year;
259.20    (F) section 126C.10, subdivision 29, if the district received equity aid according to
259.21section 126C.10, subdivision 30, in the second preceding year;
259.22    (G) section 126C.10, subdivision 32, if the district received transition aid according
259.23to section 126C.10, subdivision 33, in the second preceding year;
259.24    (H) section 123B.53, subdivision 5, if the district received debt service equalization
259.25aid according to section 123B.53, subdivision 6, in the second preceding year;
259.26    (I) section 123B.535, subdivision 4, if the district received natural disaster debt
259.27service equalization aid according to section 123B.535, subdivision 5, in the second
259.28preceding year;
259.29    (I) (J) section 124D.22, subdivision 3, if the district received school-age care aid
259.30according to section 124D.22, subdivision 4, in the second preceding year;
259.31    (J) (K) section 123B.591, subdivision 3, if the district received deferred maintenance
259.32aid according to section 123B.591, subdivision 4, in the second preceding year; and
259.33    (K) (L) section 126C.10, subdivision 35, if the district received alternative teacher
259.34compensation equalization aid according to section 126C.10, subdivision 36, paragraph
259.35(a), in the second preceding year; to
260.1    (ii) the total amount of the district's certified levy for the fiscal year, plus or minus
260.2auditor's adjustments.
260.3    (c) An amount must be subtracted from the school district's levy limitation for the
260.4next levy certified equal to the difference between:
260.5    (1) the amount of the distribution of excess increment; and
260.6    (2) the amount subtracted from aid pursuant to clause (a).
260.7    If the aid and levy reductions required by this subdivision cannot be made to the aid
260.8for the fiscal year specified or to the levy specified, the reductions must be made from
260.9aid for subsequent fiscal years, and from subsequent levies. The school district must use
260.10the payment of excess tax increment to replace the aid and levy revenue reduced under
260.11this subdivision.
260.12    (d) This subdivision applies only to the total amount of excess increments received
260.13by a district for a calendar year that exceeds $25,000.
260.14EFFECTIVE DATE.This section is effective for revenue for fiscal year 2017
260.15and later.

260.16    Sec. 17. Minnesota Statutes 2012, section 129C.10, subdivision 3, is amended to read:
260.17    Subd. 3. Powers and duties of board. (a) The board has the powers necessary for
260.18the care, management, and control of the Perpich Center for Arts Education and any other
260.19school authorized in this chapter, and all its their real and personal property. The powers
260.20shall include, but are not limited to, those listed in this subdivision.
260.21(b) The board may employ and discharge necessary employees, and contract for
260.22other services to ensure the efficient operation of the Center for Arts Education and any
260.23other school authorized in this chapter.
260.24(c) The board may receive and award grants. The board may establish a charitable
260.25foundation and accept, in trust or otherwise, any gift, grant, bequest, or devise for
260.26educational purposes and hold, manage, invest, and dispose of them and the proceeds
260.27and income of them according to the terms and conditions of the gift, grant, bequest, or
260.28devise and its acceptance. The board must adopt internal procedures to administer and
260.29monitor aids and grants.
260.30(d) The board may establish or coordinate evening, continuing education, extension,
260.31and summer programs for teachers and pupils.
260.32(e) The board may identify pupils who have artistic talent, either demonstrated or
260.33potential, in dance, literary arts, media arts, music, theater, and visual arts, or in more
260.34than one art form.
260.35(f) The board must educate pupils with artistic talent by providing:
261.1(1) an interdisciplinary academic and arts program for pupils in the 11th and 12th
261.2grades. The total number of pupils accepted under this clause and clause (2) shall not
261.3exceed 310;
261.4(2) additional instruction to pupils for a 13th grade. Pupils eligible for this
261.5instruction are those enrolled in 12th grade who need extra instruction and who apply
261.6to the board, or pupils enrolled in the 12th grade who do not meet learner outcomes
261.7established by the board;
261.8(3) intensive arts seminars for one or two weeks for pupils in grades 9 to 12;
261.9(4) summer arts institutes for pupils in grades 9 to 12;
261.10(5) artist mentor and extension programs in regional sites; and
261.11(6) teacher education programs for indirect curriculum delivery.
261.12(g) The board may determine the location for the Perpich Center for Arts Education
261.13and any additional facilities related to the center, including the authority to lease a
261.14temporary facility.
261.15(h) The board must plan for the enrollment of pupils on an equal basis from each
261.16congressional district.
261.17(i) The board may establish task forces as needed to advise the board on policies and
261.18issues. The task forces expire as provided in section 15.059, subdivision 6.
261.19(j) The board may request the commissioner of education for assistance and services.
261.20(k) The board may enter into contracts with other public and private agencies
261.21and institutions for residential and building maintenance services if it determines that
261.22these services could be provided more efficiently and less expensively by a contractor
261.23than by the board itself. The board may also enter into contracts with public or private
261.24agencies and institutions, school districts or combinations of school districts, or service
261.25cooperatives to provide supplemental educational instruction and services.
261.26(l) The board may provide or contract for services and programs by and for the
261.27Center for Arts Education, including a store, operating in connection with the center;
261.28theatrical events; and other programs and services that, in the determination of the board,
261.29serve the purposes of the center.
261.30(m) The board may provide for transportation of pupils to and from the Center for
261.31Arts Education for all or part of the school year, as the board considers advisable and
261.32subject to its rules. Notwithstanding any other law to the contrary, the board may charge a
261.33reasonable fee for transportation of pupils. Every driver providing transportation of pupils
261.34under this paragraph must possess all qualifications required by the commissioner of
261.35education. The board may contract for furnishing authorized transportation under rules
261.36established by the commissioner of education and may purchase and furnish gasoline to a
262.1contract carrier for use in the performance of a contract with the board for transportation
262.2of pupils to and from the Center for Arts Education. When transportation is provided,
262.3scheduling of routes, establishment of the location of bus stops, the manner and method of
262.4transportation, the control and discipline of pupils, and any other related matter is within
262.5the sole discretion, control, and management of the board.
262.6(n) The board may provide room and board for its pupils. If the board provides room
262.7and board, it shall charge a reasonable fee for the room and board. The fee is not subject
262.8to chapter 14 and is not a prohibited fee according to sections 123B.34 to 123B.39.
262.9(o) The board may establish and set fees for services and programs. If the board sets
262.10fees not authorized or prohibited by the Minnesota public school fee law, it may do so
262.11without complying with the requirements of section 123B.38.
262.12(p) The board may apply for all competitive grants administered by agencies of the
262.13state and other government or nongovernment sources.
262.14EFFECTIVE DATE.This section is effective the day following the date on
262.15which the Crosswinds school is conveyed to the Perpich Center for Arts Education by
262.16an enactment during the 2014 regular legislative session.

262.17    Sec. 18. Minnesota Statutes 2012, section 129C.10, is amended by adding a
262.18subdivision to read:
262.19    Subd. 5a. Interdistrict voluntary integration magnet program. Notwithstanding
262.20Minnesota Rules, parts 3535.0110 and 3535.0150, the board may establish and operate
262.21an interdistrict integration magnet program according to section 129C.30. For fiscal year
262.222016 and later, the board must have an approved achievement and integration plan and
262.23budget under section 124D.861.
262.24EFFECTIVE DATE.This section is effective the day following the date on
262.25which the Crosswinds school is conveyed to the Perpich Center for Arts Education by
262.26an enactment during the 2014 regular legislative session.

262.27    Sec. 19. [129C.30] CROSSWINDS INTEGRATION MAGNET SCHOOL.
262.28    Subdivision 1. Definitions. (a) The following terms having the meanings given
262.29them for this chapter.
262.30(b) "Board" means the board of directors of the Perpich Center for Arts Education.
262.31(c) "Crosswinds school" means the Crosswinds school in Woodbury operated during
262.32the 2012-2013 school year by Joint Powers District No. 6067, East Metro Integration
262.33District.
263.1    Subd. 2. Board to operate the Crosswinds school. The board may operate the
263.2Crosswinds school with the powers and duties granted to it under this chapter. A student
263.3may apply to the Crosswinds school under section 124D.03 and the Crosswinds school
263.4may accept students under that section.
263.5    Subd. 3. General education funding. General education revenue must be paid to
263.6the Crosswinds school as though it were a district. The general education revenue for each
263.7adjusted pupil unit is the state average general education revenue per pupil unit, plus
263.8the referendum equalization aid allowance in the pupil's district of residence, minus an
263.9amount equal to the product of the formula allowance according to section 126C.10,
263.10subdivision 2, times .0466, calculated without declining enrollment, basic skills revenue,
263.11extended time revenue, pension adjustment revenue, transition revenue, and transportation
263.12sparsity revenue, plus declining enrollment, basic skills revenue, extended time revenue,
263.13pension adjustment revenue, and transition revenue as though the school were a school
263.14district. The general education revenue for each extended time pupil unit equals $4,794.
263.15    Subd. 4. Special education funding. Special education aid must be paid to the
263.16Crosswinds school according to sections 125A.76 and 125A.79, as though it were a
263.17school district. The special education aid paid to the Crosswinds school shall be adjusted
263.18as follows:
263.19(1) if the Crosswinds school does not receive general education revenue on behalf of
263.20the student according to subdivision 3, the aid shall be adjusted as provided in section
263.21125A.11; or
263.22(2) if the Crosswinds school receives general education revenue on behalf of the
263.23student according to subdivision 3, the aid shall be adjusted as provided in section
263.24127A.47, subdivision 7, paragraphs (b) to (d).
263.25    Subd. 5. Pupil transportation. (a) For fiscal year 2015 only, a member district of
263.26Joint Powers District No. 6067, East Metro Integration District, must transport pupils
263.27enrolled at the Crosswinds school in the same manner as they were transported in fiscal
263.28year 2014.
263.29(b) Pupil transportation expenses under this section are reimbursable under section
263.30124D.87.
263.31    Subd. 6. Achievement and integration aid. For fiscal year 2016 and later, the
263.32Crosswinds school is eligible for achievement and integration aid under section 124D.862
263.33as if it were a school district.
263.34    Subd. 7. Other aids, grants, revenue. (a) The Crosswinds school is eligible to
263.35receive other aids, grants, and revenue according to chapters 120A to 129C as though it
263.36were a district.
264.1(b) Notwithstanding paragraph (a), the Crosswinds school may not receive aid, a
264.2grant, or revenue if a levy is required to obtain the money, or if the aid, grant, or revenue
264.3replaces levy revenue that is not general education revenue, except as otherwise provided
264.4in this section.
264.5(c) Federal aid received by the state must be paid to the school if it qualifies for
264.6the aid as though it were a school district.
264.7(d) In the year-end report to the commissioner of education, the Crosswinds school
264.8shall report the total amount of funds received from grants and other outside sources.
264.9    Subd. 8. Year-round programming. The Crosswinds school may operate as a
264.10flexible learning year program under sections 124D.12 to 124D.127.
264.11    Subd. 9. Data requirements. The commissioner of education shall require the
264.12Crosswinds school to follow the budget and accounting procedures required for school
264.13districts and the Crosswinds school shall report all data to the Department of Education in
264.14the form and manner required by the commissioner.
264.15EFFECTIVE DATE.This section is effective July 1, 2014, if, but only if, the
264.16Crosswinds school is conveyed to the Perpich Center for Arts Education by an enactment
264.17during the 2014 regular legislative session.

264.18    Sec. 20. Minnesota Statutes 2012, section 298.28, subdivision 7a, as added by Laws
264.192014, chapter 150, article 6, section 13, is amended to read:
264.20    Subd. 7a. Iron Range school consolidation and cooperatively operated school
264.21account. The following amounts must be allocated to the Iron Range Resources and
264.22Rehabilitation Board to be deposited in the Iron Range school consolidation and
264.23cooperatively operated school account that is hereby created:
264.24(1) ten cents per taxable ton of the tax imposed under section 298.24;
264.25(2) the amount as determined under section 298.17, paragraph (b), clause (3); and
264.26(3) for distributions in 2015 through 2017, an amount equal to two-thirds of the
264.27increased tax proceeds attributable to the increase in the implicit price deflator as provided
264.28in section 298.24, subdivision 1.
264.29Expenditures from this account shall be made only to provide disbursements to
264.30assist school districts with the payment of bonds that were issued for qualified school
264.31projects, or for any other disbursement as approved by the Iron Range Resources and
264.32Rehabilitation Board. For purposes of this section, "qualified school projects" means
264.33school projects within the taconite assistance area as defined in section 273.1341, that
264.34were (1) approved, by referendum, after December 7, 2009; and (2) approved by the
264.35commissioner of education pursuant to section 123B.71.
265.1Beginning in fiscal year 2019, the disbursement to school districts for payments for
265.2bonds issued under section 123A.482, subdivision 9, must be increased each year to
265.3offset any reduction in debt service equalization aid that the school district qualifies for in
265.4that year, under section 123B.53, subdivision 6, compared with the amount the school
265.5district qualified for in fiscal year 2018.
265.6No expenditure under this section shall be made unless approved by seven members
265.7of the Iron Range Resources and Rehabilitation Board.
265.8EFFECTIVE DATE.This section is effective for production year 2014 and
265.9thereafter.

265.10    Sec. 21. HARAMBEE COMMUNITY SCHOOL TRANSITION.
265.11    Subdivision 1. Student enrollment. A student enrolled in the Harambee community
265.12school during the 2013-2014 school year may continue to enroll in the Harambee
265.13community school in any subsequent year. For the 2014-2015 school year and later, other
265.14students may apply for enrollment under Minnesota Statutes, section 124D.03.
265.15    Subd. 2. Compensatory revenue; literacy aid; alternative compensation
265.16revenue. For the 2014-2015 school year only, the Department of Education must calculate
265.17compensatory revenue, literacy aid, and alternative compensation revenue for the
265.18Harambee community school based on the October 1, 2013, enrollment counts.
265.19    Subd. 3. Year-round programming. Harambee community school may operate as
265.20a flexible learning year program under Minnesota Statutes, sections 124D.12 to 124D.127.
265.21    Subd. 4. Pupil transportation. The board may transport pupils enrolled in the
265.222013-2014 school year to and from the Harambee community school in succeeding school
265.23years regardless of the students' districts of residence. Pupil transportation expenses under
265.24this section are reimbursable under Minnesota Statutes, section 124D.87.
265.25EFFECTIVE DATE.This section is effective the day following the date on which
265.26the real and personal property of the Harambee community school in Maplewood is
265.27conveyed to Independent School District No. 623, Roseville, by an enactment during the
265.282014 regular legislative session.

265.29    Sec. 22. TRANSITION REQUIREMENTS; CROSSWINDS SCHOOL.
265.30    Subdivision 1. Student enrollment. Any student enrolled in the Crosswinds school
265.31during the 2013-2014 school year may continue to enroll in the Crosswinds school in
266.1any subsequent year. For the 2014-2015 school year and later, a student may apply for
266.2enrollment to the school under Minnesota Statutes, section 124D.03.
266.3    Subd. 2. Compensatory revenue, literacy aid, and alternative compensation
266.4revenue. For the 2014-2015 school year only, the Department of Education must calculate
266.5compensatory revenue, literacy aid, and alternative compensation revenue for the
266.6Crosswinds school based on the October 1, 2013, enrollment counts at that site.
266.7    Subd. 3. Title 1 funding. To the extent possible, the Department of Education
266.8must qualify the Crosswinds school for Title 1, and, if applicable, other federal funding
266.9as if the program were still operated by Joint Powers District No. 6067, East Metro
266.10Integration District.
266.11EFFECTIVE DATE.This section is effective the day following the date on
266.12which the Crosswinds school is conveyed to the Perpich Center for Arts Education by
266.13an enactment during the 2014 regular legislative session.

266.14    Sec. 23. LEASE LEVY; SATELLITE TRANSPORTATION HUB FOR
266.15ROSEMOUNT-APPLE VALLEY-EAGAN SCHOOL DISTRICT.
266.16Notwithstanding Minnesota Statutes, section 126C.40, subdivision 1, Independent
266.17School District No. 196, Rosemount-Apple Valley-Eagan, may lease a satellite
266.18transportation hub under Minnesota Statutes, section 126C.40, subdivision 1, if the district
266.19can demonstrate to the satisfaction of the commissioner of education that the satellite
266.20transportation hub will result in a significant financial savings. Levy authority under
266.21this section shall not exceed the total levy authority under Minnesota Statutes, section
266.22126C.40, subdivision 1, paragraph (e).
266.23EFFECTIVE DATE.This section is effective for taxes payable in 2016 and later.

266.24    Sec. 24. REPEALER.
266.25Minnesota Statutes 2012, section 123B.71, subdivisions 1 and 4, are repealed.

266.26ARTICLE 19

266.27NUTRITION

266.28    Section 1. Minnesota Statutes 2013 Supplement, section 124D.111, subdivision 1,
266.29is amended to read:
266.30    Subdivision 1. School lunch aid computation. Each school year, the state must
266.31pay participants in the national school lunch program the amount of 12.5 cents for each
267.1full paid, reduced-price, and free student lunch and 52.5 cents for each reduced-price
267.2lunch served to students.
267.3EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
267.4and later.

267.5    Sec. 2. Minnesota Statutes 2012, section 124D.111, is amended by adding a
267.6subdivision to read:
267.7    Subd. 4. No fees. A participant that receives school lunch aid under this section
267.8must make lunch available without charge to all participating students who qualify for
267.9free or reduced-price meals. The participant must also ensure that any reminders for
267.10payment of outstanding student meal balances do not demean or stigmatize any child
267.11participating in the school lunch program.
267.12EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
267.13and later.

267.14    Sec. 3. Minnesota Statutes 2012, section 124D.1158, subdivision 3, is amended to read:
267.15    Subd. 3. Program reimbursement. Each school year, the state must reimburse
267.16each participating school 30 cents for each reduced-price breakfast and, 55 cents for each
267.17fully paid breakfast served to students in grades 1 to 12, and $1.30 for each fully paid
267.18breakfast served to a kindergarten student.

267.19    Sec. 4. Minnesota Statutes 2012, section 124D.1158, subdivision 4, is amended to read:
267.20    Subd. 4. No fees. A school that receives school breakfast aid under this section must
267.21make breakfast available without charge to all participating students in grades 1 to 12 who
267.22qualify for free or reduced price meals and to all kindergarten students.

267.23    Sec. 5. Laws 2013, chapter 116, article 7, section 21, subdivision 2, is amended to read:
267.24    Subd. 2. School lunch. For school lunch aid according to Minnesota Statutes,
267.25section 124D.111, and Code of Federal Regulations, title 7, section 210.17:

267.26 267.27		$	13,032,000 12,417,000	.....	2014
267.28 267.29		$	13,293,000 16,185,000	.....	2015

267.30    Sec. 6. Laws 2013, chapter 116, article 7, section 21, subdivision 3, is amended to read:
268.1    Subd. 3. School breakfast. For traditional school breakfast aid under Minnesota
268.2Statutes, section 124D.1158:

268.3 268.4		$	5,711,000 5,308,000	.....	2014
268.5 268.6		$	6,022,000 6,176,000	.....	2015

268.7ARTICLE 20

268.8EARLY EDUCATION, COMMUNITY EDUCATION, SELF-SUFFICIENCY
268.9AND LIFELONG LEARNING

268.10    Section 1. Minnesota Statutes 2012, section 124D.13, subdivision 2, as amended by
268.11Laws 2014, chapter 272, article 1, section 31, is amended to read:
268.12    Subd. 2. Program requirements. (a) Early childhood family education programs
268.13are programs for children in the period of life from birth to kindergarten, for the parents
268.14and other relatives of these children, and for expectant parents. To the extent that funds
268.15are insufficient to provide programs for all children, early childhood family education
268.16programs should emphasize programming for a child from birth to age three and
268.17encourage parents and other relatives to involve four- and five-year-old children in school
268.18readiness programs, and other public and nonpublic early learning programs. A district
268.19may not limit participation to school district residents. Early childhood family education
268.20programs must provide:
268.21    (1) programs to educate parents and other relatives about the physical, mental,
268.22 cognitive, social, and emotional development of children and to enhance the skills of
268.23parents and other relatives in providing for their children's learning and development;
268.24    (2) structured learning activities requiring interaction between children and their
268.25parents or relatives;
268.26    (3) structured learning activities for children that promote children's development
268.27and positive interaction with peers, which are held while parents or relatives attend parent
268.28education classes;
268.29    (4) information on related community resources;
268.30    (5) information, materials, and activities that support the safety of children, including
268.31prevention of child abuse and neglect; and
268.32    (6) a community outreach plan to ensure participation by families who reflect the
268.33racial, cultural, linguistic, and economic diversity of the school district. needs assessment
268.34that identifies new and underserved populations, identifies child and family risk factors,
268.35particularly those that impact children's learning and development, and assesses family
268.36and parenting education needs in the community;
269.1    (7) programming and services that are tailored to the needs of families and parents
269.2prioritized in the community needs assessment; and
269.3    (8) provide information about and, if needed, assist in making arrangements for an
269.4early childhood health and developmental screening under sections 121A.16 and 121A.17,
269.5when the child nears the third birthday.
269.6Early childhood family education programs should prioritize programming and
269.7services for families and parents identified in the community needs assessment, particularly
269.8those families and parents with children with the most risk factors birth to age three.
269.9Early childhood family education programs are encouraged to provide parents of
269.10English learners with translated oral and written information to monitor the program's
269.11impact on their children's English language development, to know whether their children
269.12are progressing in developing their English and native language proficiency, and to
269.13actively engage with and support their children in developing their English and native
269.14language proficiency.
269.15    The programs must include learning experiences for children, parents, and other
269.16relatives that promote children's early literacy and, where practicable, their native language
269.17skills and activities for children that require substantial involvement of the children's
269.18parents or other relatives. The program may provide parenting education programming or
269.19services to anyone identified in the community needs assessment. Providers must review
269.20the program periodically to assure the instruction and materials are not racially, culturally,
269.21or sexually biased. The programs must encourage parents to be aware of practices that
269.22may affect equitable development of children.
269.23    (b) For the purposes of this section, "relative" or "relatives" means noncustodial
269.24grandparents or other persons related to a child by blood, marriage, adoption, or foster
269.25placement, excluding parents.

269.26    Sec. 2. Minnesota Statutes 2012, section 124D.13, subdivision 4, is amended to read:
269.27    Subd. 4. Home visiting program. A district that levies for home visiting under
269.28section 124D.135, subdivision 6, shall use this revenue to include as part of the early
269.29childhood family education programs a parent education component that is designed to
269.30reach isolated or at-risk families.
269.31The home visiting program must use:
269.32(1) an established risk assessment tool to determine the family's level of risk
269.33 incorporate evidence-informed parenting education practices designed to support the
269.34healthy growth and development of children, with a priority focus on those children
269.35who have high needs;
270.1(2) establish clear objectives and protocols for home visits;
270.2(3) encourage families to make a transition from home visits to site-based parenting
270.3programs;
270.4(4) provide program services that are community-based, accessible, and culturally
270.5relevant; and
270.6(5) foster collaboration among existing agencies and community-based organizations
270.7that serve young children and their families, such as public health evidence-based models
270.8of home visiting and Head Start home visiting; and
270.9(6) provide information about and assist in making arrangements for an early
270.10childhood health and developmental screening when the child nears his or her third
270.11birthday.
270.12Home visitors The home visiting program should be provided by licensed parenting
270.13educators, certified family life educators, or professionals with an equivalent license that
270.14reflect the demographic composition of the community to the extent possible.

270.15    Sec. 3. Minnesota Statutes 2012, section 124D.13, subdivision 9, is amended to read:
270.16    Subd. 9. District advisory councils. The board must appoint an advisory council
270.17from the area in which the program is provided. A majority of the council must be
270.18parents participating in the program, who represent the demographics of the community.
270.19The district must ensure, to the extent possible, that the council includes representation
270.20of families who are racially, culturally, linguistically, and economically diverse. The
270.21council must assist the board in developing, planning, and monitoring the early childhood
270.22family education program. The council must report to the board and the community
270.23education advisory council.

270.24    Sec. 4. Minnesota Statutes 2012, section 124D.13, subdivision 13, is amended to read:
270.25    Subd. 13. Program data submission requirements. Districts receiving early
270.26childhood family education revenue under section 124D.135 must submit annual program
270.27data, including data that demonstrates the program response to the community needs
270.28assessment, to the department by July 15 in the form and manner prescribed by the
270.29commissioner.

270.30    Sec. 5. Minnesota Statutes 2012, section 124D.13, is amended by adding a subdivision
270.31to read:
270.32    Subd. 14. Supervision. A program provided by a board must be supervised by a
270.33licensed early childhood teacher or a licensed parent educator.

271.1    Sec. 6. Minnesota Statutes 2012, section 124D.13, is amended by adding a subdivision
271.2to read:
271.3    Subd. 15. Parenting education transition program. To the extent that funds are
271.4sufficient, early childhood family education may provide parenting education transition
271.5programming for parents of children birth to grade three in districts in which there is a
271.6prekindergarten-grade three initiative in order to facilitate continued parent engagement
271.7in children's learning and development. Early childhood family education programs are
271.8encouraged to develop partnerships to provide a parenting education liaison to providers
271.9of other public and nonpublic early learning programs, such as Head Start, school
271.10readiness, child care, early childhood special education, local public health programs,
271.11and health care providers.

271.12    Sec. 7. Minnesota Statutes 2012, section 124D.135, subdivision 1, is amended to read:
271.13    Subdivision 1. Revenue. The revenue for early childhood family education
271.14programs for a school district equals $112 for fiscal year 2007 and $120 for fiscal year
271.152008 $120 for fiscal year 2014 and the formula allowance for the year times 0.023 for
271.16fiscal year 2015 and later, times the greater of:
271.17    (1) 150; or
271.18    (2) the number of people under five years of age residing in the district on October 1
271.19of the previous school year.

271.20    Sec. 8. Minnesota Statutes 2012, section 124D.135, subdivision 3, is amended to read:
271.21    Subd. 3. Early childhood family education levy. (a) By September 30 of each year,
271.22the commissioner shall establish a tax rate for early childhood family education revenue
271.23that raises $22,135,000 in each fiscal year. If the amount of the early childhood family
271.24education levy would exceed the early childhood family education revenue, the early
271.25childhood family education levy must equal the early childhood family education revenue.
271.26A district may not certify an early childhood family education levy unless it has met the
271.27annual program data reporting requirements under section 124D.13, subdivision 13.
271.28    (b) Notwithstanding paragraph (a), for fiscal year 2009 only, the commissioner shall
271.29establish a tax rate for early education revenue that raises $13,565,000.

271.30    Sec. 9. Minnesota Statutes 2012, section 124D.16, subdivision 2, is amended to read:
271.31    Subd. 2. Amount of aid. (a) A district is eligible to receive school readiness aid
271.32for eligible prekindergarten pupils enrolled in a school readiness program under section
272.1124D.15 if the biennial plan required by section 124D.15, subdivision 3a, has been
272.2approved by the commissioner.
272.3(b) For fiscal year 2002 and thereafter, A district must receive school readiness aid
272.4equal to:
272.5(1) the number of four-year-old children in the district on October 1 for the previous
272.6school year times the ratio of 50 percent of the total school readiness aid for that year to
272.7the total number of four-year-old children reported to the commissioner for the previous
272.8school year; plus
272.9(2) the number of pupils enrolled in the school district from families eligible for the
272.10free or reduced school lunch program for the previous school year times the ratio of
272.1150 percent of the total school readiness aid for that year to the total number of pupils
272.12in the state from families eligible for the free or reduced school lunch program for the
272.13previous school year.
272.14(c) For fiscal year 2015 and later, the total school readiness aid entitlement equals
272.15$12,170,000.
272.16EFFECTIVE DATE.This section is effective for state aid for fiscal year 2015
272.17and later.

272.18    Sec. 10. Minnesota Statutes 2013 Supplement, section 124D.165, subdivision 3,
272.19is amended to read:
272.20    Subd. 3. Administration. (a) The commissioner shall establish application
272.21timelines and determine the schedule for awarding scholarships that meets operational
272.22needs of eligible families and programs. The commissioner may prioritize applications on
272.23factors including family income, geographic location, and whether the child's family is on a
272.24waiting list for a publicly funded program providing early education or child care services.
272.25(b) For fiscal years 2014 and 2015 only, scholarships may be awarded up to not
272.26exceed $5,000 per year for each eligible child per year. For fiscal year 2016 and later, the
272.27commissioner shall establish a target for the average scholarship amount per child based
272.28on the results of the rate survey conducted under section 119B.02.
272.29(c) A four-star rated program that has children eligible for a scholarship enrolled
272.30in or on a waiting list for a program beginning in July, August, or September may notify
272.31the commissioner, in the form and manner prescribed by the commissioner, each year
272.32of the program's desire to enhance program services or to serve more children than
272.33current funding provides. The commissioner may designate a predetermined number of
272.34scholarship slots for that program and notify the program of that number. Beginning July
272.351, 2016, a school district or Head Start program qualifying under this paragraph may
273.1use its established registration process to enroll scholarship recipients and may verify a
273.2scholarship recipient's family income in the same manner as for other program participants.
273.3(d) A scholarship is awarded for a 12-month period. If the scholarship recipient has
273.4not been accepted and subsequently enrolled in a rated program within ten months of the
273.5awarding of the scholarship, the scholarship cancels and the recipient must reapply in
273.6order to be eligible for another scholarship. A child may not be awarded more than one
273.7scholarship in a 12-month period.
273.8(e) A child who receives a scholarship who has not completed development
273.9screening under sections 121A.16 to 121A.19 must complete that screening within 90
273.10days of first attending an eligible program.
273.11(f) For fiscal year 2017 and later, a school district or Head Start program enrolling
273.12scholarship recipients under paragraph (c) may apply to the commissioner, in the form
273.13and manner prescribed by the commissioner, for direct payment of state aid. Upon receipt
273.14of the application, the commissioner must pay each program directly for each approved
273.15scholarship recipient enrolled under paragraph (c) according to the metered payment
273.16system or another schedule established by the commissioner.

273.17    Sec. 11. Minnesota Statutes 2013 Supplement, section 124D.165, subdivision 4,
273.18is amended to read:
273.19    Subd. 4. Early childhood program eligibility. (a) In order to be eligible to accept
273.20an early childhood education scholarship, a program must:
273.21(1) participate in the quality rating and improvement system under section
273.22124D.142 ; and
273.23(2) beginning July 1, 2016, have a three- or four-star rating in the quality rating
273.24and improvement system.
273.25(b) Any program accepting scholarships must use the revenue to supplement and not
273.26supplant federal funding.
273.27(c) Notwithstanding paragraph (a), all Minnesota early learning foundation
273.28scholarship program pilot sites are eligible to accept an early learning scholarship under
273.29this section.

273.30    Sec. 12. Minnesota Statutes 2013 Supplement, section 124D.165, subdivision 5,
273.31is amended to read:
273.32    Subd. 5. Report required. The commissioner shall contract with an independent
273.33contractor to evaluate the early learning scholarship program. The evaluation must
273.34include recommendations regarding the appropriate scholarship amount, efficiency, and
274.1effectiveness of the administration, and impact on kindergarten readiness. By January
274.215, 2016, the commissioner shall submit a written copy of the evaluation to the chairs
274.3and ranking minority members of the legislative committees and divisions with primary
274.4jurisdiction over kindergarten through grade 12 education.

274.5    Sec. 13. Minnesota Statutes 2012, section 124D.522, is amended to read:
274.6124D.522 ADULT BASIC EDUCATION SUPPLEMENTAL SERVICE
274.7GRANTS.
274.8(a) The commissioner, in consultation with the policy review task force under
274.9section 124D.521, may make grants to nonprofit organizations to provide services that
274.10are not offered by a district adult basic education program or that are supplemental to
274.11either the statewide adult basic education program, or a district's adult basic education
274.12program. The commissioner may make grants for: staff development for adult basic
274.13education teachers and administrators; training for volunteer tutors; training, services, and
274.14materials for serving disabled students through adult basic education programs; statewide
274.15promotion of adult basic education services and programs; development and dissemination
274.16of instructional and administrative technology for adult basic education programs;
274.17programs which primarily serve communities of color; adult basic education distance
274.18learning projects, including television instruction programs; and other supplemental
274.19services to support the mission of adult basic education and innovative delivery of adult
274.20basic education services.
274.21(b) The commissioner must establish eligibility criteria and grant application
274.22procedures. Grants under this section must support services throughout the state, focus on
274.23educational results for adult learners, and promote outcome-based achievement through
274.24adult basic education programs. Beginning in fiscal year 2002, the commissioner may
274.25make grants under this section from the state total adult basic education aid set aside for
274.26supplemental service grants under section 124D.531. Up to one-fourth of the appropriation
274.27for supplemental service grants must be used for grants for adult basic education programs
274.28to encourage and support innovations in adult basic education instruction and service
274.29delivery. A grant to a single organization cannot exceed 20 40 percent of the total
274.30supplemental services aid. Nothing in this section prevents an approved adult basic
274.31education program from using state or federal aid to purchase supplemental services.

274.32    Sec. 14. Minnesota Statutes 2013 Supplement, section 124D.531, subdivision 1,
274.33is amended to read:
275.1    Subdivision 1. State total adult basic education aid. (a) The state total adult basic
275.2education aid for fiscal year 2011 equals $44,419,000, plus any amount that is not paid
275.3during the previous fiscal year as a result of adjustments under subdivision 4, paragraph
275.4(a), or section 124D.52, subdivision 3. The state total adult basic education aid for later
275.5fiscal years equals:
275.6    (1) the state total adult basic education aid for the preceding fiscal year plus any
275.7amount that is not paid for during the previous fiscal year, as a result of adjustments under
275.8subdivision 4, paragraph (a), or section 124D.52, subdivision 3; times
275.9    (2) the lesser of:
275.10    (i) 1.025 1.03; or
275.11    (ii) the average growth in state total contact hours over the prior ten program years.
275.12    Beginning in fiscal year 2002, two Three percent of the state total adult basic
275.13education aid must be set aside for adult basic education supplemental service grants
275.14under section 124D.522.
275.15    (b) The state total adult basic education aid, excluding basic population aid, equals
275.16the difference between the amount computed in paragraph (a), and the state total basic
275.17population aid under subdivision 2.
275.18EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
275.19and later.

275.20    Sec. 15. Minnesota Statutes 2012, section 124D.531, subdivision 3, is amended to read:
275.21    Subd. 3. Program revenue. Adult basic education programs established under
275.22section 124D.52 and approved by the commissioner are eligible for revenue under this
275.23subdivision. For fiscal year 2001 and later, adult basic education revenue for each
275.24approved program equals the sum of:
275.25(1) the basic population aid under subdivision 2 for districts participating in the
275.26program during the current program year; plus
275.27(2) 84 percent times the amount computed in subdivision 1, paragraph (b), times the
275.28ratio of the contact hours for students participating in the program during the first prior
275.29program year to the state total contact hours during the first prior program year; plus
275.30(3) eight percent times the amount computed in subdivision 1, paragraph (b), times
275.31the ratio of the enrollment of English learners during the second prior school year in
275.32districts participating in the program during the current program year to the state total
275.33enrollment of English learners during the second prior school year in districts participating
275.34in adult basic education programs during the current program year; plus
276.1(4) eight percent times the amount computed in subdivision 1, paragraph (b), times
276.2the ratio of the latest federal census count of the number of adults aged 20 25 or older
276.3with no diploma residing in the districts participating in the program during the current
276.4program year to the latest federal census count of the state total number of adults aged 20
276.5 25 or older with no diploma residing in the districts participating in adult basic education
276.6programs during the current program year.

276.7    Sec. 16. Laws 2013, chapter 116, article 8, section 5, subdivision 2, is amended to read:
276.8    Subd. 2. School readiness. For revenue for school readiness programs under
276.9Minnesota Statutes, sections 124D.15 and 124D.16:

276.10 276.11		$	10,095,000 10,458,000	.....	2014
276.12 276.13		$	10,159,000 11,962,000	.....	2015

276.14The 2014 appropriation includes $1,372,000 for 2013 and $8,723,000 $9,086,000
276.15 for 2014.
276.16The 2015 appropriation includes $1,372,000 $1,009,000 for 2014 and $8,787,000
276.17 $10,953,000 for 2015.

276.18    Sec. 17. Laws 2013, chapter 116, article 8, section 5, subdivision 3, is amended to read:
276.19    Subd. 3. Early childhood family education aid. For early childhood family
276.20education aid under Minnesota Statutes, section 124D.135:

276.21 276.22		$	22,078,000 22,797,000	.....	2014
276.23 276.24		$	22,425,000 26,651,000	.....	2015

276.25    The 2014 appropriation includes $3,008,000 for 2013 and $19,070,000 $19,789,000
276.26 for 2014.
276.27    The 2015 appropriation includes $3,001,000 $2,198,000 for 2014 and $19,424,000
276.28 $24,453,000 for 2015.

276.29    Sec. 18. Laws 2013, chapter 116, article 8, section 5, subdivision 8, is amended to read:
276.30    Subd. 8. Early childhood education learning scholarships. For transfer to
276.31the Office of Early Learning for early learning scholarships under Minnesota Statutes,
276.32section 124D.165:

276.33		$	23,000,000	.....	2014
276.34 276.35		$	23,000,000 27,650,000	.....	2015

277.1Up to $950,000 each year is for administration of this program.
277.2Any balance in the first year does not cancel but is available in the second year.
277.3The base for fiscal year 2016 and later is $27,884,000.
277.4EFFECTIVE DATE.This section is effective July 1, 2014.

277.5    Sec. 19. Laws 2013, chapter 116, article 8, section 5, subdivision 9, is amended to read:
277.6    Subd. 9. Parent-child home program. For a grant to the parent-child home
277.7program:

277.8		$	250,000	.....	2014
277.9 277.10		$	250,000 350,000	.....	2015

277.11The grant must be used for an evidence-based and research-validated early childhood
277.12literacy and school readiness program for children ages 16 months to four years at its
277.13existing suburban program location. The program must expand to one additional urban
277.14and one additional rural program location for fiscal years 2014 and 2015. The base for
277.15fiscal year 2016 and later is $250,000.

277.16    Sec. 20. Laws 2013, chapter 116, article 8, section 5, subdivision 14, is amended to read:
277.17    Subd. 14. Adult basic education aid. For adult basic education aid under
277.18Minnesota Statutes, section 124D.531:

277.19 277.20		$	47,005,000 48,776,000	.....	2014
277.21 277.22		$	48,145,000 48,415,000	.....	2015

277.23The 2014 appropriation includes $6,284,000 $6,278,000 for 2013 and $40,721,000
277.24 $42,498,000 for 2014.
277.25The 2015 appropriation includes $6,409,000 $4,722,000 for 2014 and $41,736,000
277.26 $43,693,000 for 2015.

277.27    Sec. 21. APPROPRIATIONS.
277.28    Subdivision 1. Department of Education. The sums indicated in this section
277.29are appropriated from the general fund to the Department of Education for the fiscal
277.30year designated.
277.31    Subd. 2. Northside Achievement Zone. For a grant to the Northside Achievement
277.32Zone.

278.1

$

350,000

.....

2015

278.2(a) Funds appropriated in this section are to reduce multigenerational poverty and
278.3the educational achievement gap through increased enrollment of families within the zone,
278.4and may be used for Northside Achievement Zone programming and services consistent
278.5with federal Promise Neighborhood program agreements and requirements. The base
278.6appropriation for fiscal year 2016 and later is $200,000.
278.7(b) The Northside Achievement Zone shall submit a report to the chairs of the
278.8legislative committees with jurisdiction over early childhood through grade 12 education
278.9policy and finance that, at a minimum, summarizes program activities, specifies
278.10performance measures, and analyzes program outcomes. The report must be submitted by
278.11January 15, 2016.
278.12    Subd. 3. Saint Paul Promise Neighborhood. For a grant to the Saint Paul Promise
278.13Neighborhood.

278.14

$

350,000

.....

2015

278.15(a) Funds appropriated in this section are to reduce multigenerational poverty and
278.16the educational achievement gap through increased enrollment of families within the
278.17zone, and may be used for Saint Paul Promise Neighborhood programming and services
278.18consistent with federal Promise Neighborhood program agreements and requirements.
278.19(b) The Saint Paul Promise Neighborhood shall submit a report on January 15, 2016,
278.20to the chairs of the legislative committees with jurisdiction over early childhood through
278.21grade 12 education policy and finance. The report, at a minimum, must summarize
278.22program activities, specify performance measures, and analyze program outcomes.
278.23(c) The base appropriation for fiscal year 2016 and later is $200,000.

278.24ARTICLE 21

278.25STATE AGENCIES

278.26    Section 1. 2014 H.F. No. 2180, section 11, if enacted, is amended to read:

278.27    Sec. 11. Minnesota Statutes 2012, section 471.6161, is amended by adding a
278.28subdivision to read:
278.29    Subd. 8. School districts; group health insurance coverage. (a) Any entity
278.30providing group health insurance coverage to a school district must provide the school
278.31district with school district-specific nonidentifiable aggregate claims records for the most
278.32recent 24 months within 30 days of the request.
278.33(b) School districts shall request proposals for group health insurance coverage as
278.34provided in subdivision 2 from a minimum of three potential sources of coverage. One of
279.1these requests must go to an administrator governed by chapter 43A. Entities referenced
279.2in subdivision 1 must respond to requests for proposals received directly from a school
279.3district. School districts that are self-insured must also follow these provisions, except
279.4as provided in paragraph (f). School districts must make requests for proposals at least
279.5150 days prior to the expiration of the existing contract but not more frequently than once
279.6every 24 months. The request for proposals must include the most recently available
279.724 months of nonidentifiable aggregate claims data. The request for proposals must be
279.8publicly released at or prior to its release to potential sources of coverage.
279.9(c) School district contracts for group health insurance must not be longer than
279.10two years unless the exclusive representative of the largest employment group and the
279.11school district agree otherwise.
279.12(d) All initial proposals shall be sealed upon receipt until they are all opened no less
279.13than 90 days prior to the plan's renewal date in the presence of up to three representatives
279.14selected by the exclusive representative of the largest group of employees. Section 13.591,
279.15subdivision 3 , paragraph (b), applies to data in the proposals. The representatives of
279.16the exclusive representative must maintain the data according to this classification and
279.17are subject to the remedies and penalties under sections 13.08 and 13.09 for a violation
279.18of this requirement.
279.19(e) A school district, in consultation with the same representatives referenced in
279.20paragraph (d), may continue to negotiate with any entity that submitted a proposal under
279.21paragraph (d) in order to reduce costs or improve services under the proposal. Following
279.22the negotiations any entity that submitted an initial proposal may submit a final proposal
279.23incorporating the negotiations, which is due no less than 75 days prior to the plan's
279.24renewal date. All the final proposals submitted must be opened at the same time in the
279.25presence of up to three representatives selected by the exclusive representative of the
279.26largest group of employees. Notwithstanding section 13.591, subdivision 3, paragraph (b),
279.27following the opening of the final proposals, all the proposals, including any made under
279.28paragraph (d), and other data submitted in connection with the proposals are public data.
279.29The school district may choose from any of the initial or final proposals without further
279.30negotiations and in accordance with subdivision 5, but not sooner than 15 days after
279.31the proposals become public data.
279.32(f) School districts that are self-insured shall follow all of the requirements of this
279.33section, except that:
279.34(1) their requests for proposals may be for third-party administrator services, where
279.35applicable;
280.1(2) these requests for proposals must be from a minimum of three different sources,
280.2which may include both entities referenced in subdivision 1 and providers of third-party
280.3administrator services;
280.4(3) for purposes of fulfilling the requirement to request a proposal for group
280.5insurance coverage from an administrator governed by chapter 43A, self-insured districts
280.6are not required to include in the request for proposal the coverage to be provided;
280.7(4) a district that is self-insured on or before the date of enactment, or that is
280.8self-insured with more than 1,000 insured lives, or a district in which the school board
280.9adopted a motion on or before May 14, 2014, to approve a self-insured health care plan
280.10to be effective July 1, 2014, may, but need not, request a proposal from an administrator
280.11governed by chapter 43A;
280.12(5) requests for proposals must be sent to providers no less than 90 days prior to
280.13the expiration of the existing contract; and
280.14(6) proposals must be submitted at least 60 days prior to the plan's renewal date
280.15and all proposals shall be opened at the same time and in the presence of the exclusive
280.16representative, where applicable.
280.17(g) Nothing in this section shall restrict the authority granted to school district boards
280.18of education by section 471.59, except that districts will not be considered self-insured for
280.19purposes of this subdivision solely through participation in a joint powers arrangement.
280.20(h) An entity providing group health insurance to a school district under a multiyear
280.21contract must give notice of any rate or plan design changes applicable under the contract
280.22at least 90 days before the effective date of any change. The notice must be given to the
280.23school district and to the exclusive representatives of employees.
280.24EFFECTIVE DATE.This section is effective the day following final enactment.

280.25    Sec. 2. Laws 2013, chapter 116, article 9, section 1, subdivision 2, is amended to read:
280.26    Subd. 2. Department. (a) For the Department of Education:

280.27		$	20,058,000	.....	2014
280.28 280.29		$	19,308,000 19,716,000	.....	2015

280.30Any balance in the first year does not cancel but is available in the second year.
280.31(b) $260,000 each year is for the Minnesota Children's Museum.
280.32(c) $41,000 each year is for the Minnesota Academy of Science.
280.33(d) $50,000 each year is for the Duluth Children's Museum.
281.1(e) $618,000 each in fiscal year 2014 and $718,000 in fiscal year is 2015 only are
281.2 for the Board of Teaching. Any balance in the first year does not cancel but is available
281.3in the second year.
281.4(f) $167,000 each in fiscal year 2014 and $225,000 in fiscal year is 2015 are for
281.5the Board of School Administrators. Any balance in the first year does not cancel but
281.6is available in the second year.
281.7(g) $75,000 in fiscal year 2015 only is for The Works Museum.
281.8(h) $50,000 in fiscal year 2015 only is for a grant to the Headwaters Science Center
281.9for hands-on science, technology, engineering, and math (STEM) education.
281.10(i) $25,000 each year is for innovation pilot grants under Laws 2012, chapter 263,
281.11section 1.
281.12(j) The expenditures of federal grants and aids as shown in the biennial budget
281.13document and its supplements are approved and appropriated and shall be spent as
281.14indicated.
281.15(h) (k) None of the amounts appropriated under this subdivision may be used for
281.16Minnesota's Washington, D.C. office.
281.17(i) (l) $250,000 each year is for the School Finance Division to enhance financial
281.18data analysis.
281.19(j) (m) $750,000 in fiscal year 2014 only is for departmental costs associated with
281.20teacher development and evaluation. Any balance in the first year does not cancel and
281.21is available in the second year.
281.22(n) The base budget for fiscal year 2016 and later is $19,451,000.

281.23    Sec. 3. Laws 2013, chapter 116, article 9, section 2, is amended to read:
281.24    Sec. 2. APPROPRIATIONS; MINNESOTA STATE ACADEMIES.
281.25The sums indicated in this section are appropriated from the general fund to the
281.26Minnesota State Academies for the Deaf and the Blind for the fiscal years designated:

281.27		$	11,749,000	.....	2014
281.28 281.29		$	11,664,000 11,964,000	.....	2015

281.30$85,000 of the fiscal year 2014 appropriation is for costs associated with upgrading
281.31kitchen facilities. Any balance in the first year does not cancel but is available in the
281.32second year.

281.33    Sec. 4. APPROPRIATION; RESPONSES TO HEALTH INSURANCE
281.34TRANSPARENCY ACT BID REQUESTS.
282.1    (a) $294,000 is appropriated for fiscal year 2015 from the general fund to the
282.2commissioner of management and budget to comply with the requirements relating to
282.3health insurance transparency in Laws 2014, chapter 279, if enacted. This is a onetime
282.4appropriation.
282.5    (b) If Laws 2014, chapter 279, is enacted, the commissioner of management and
282.6budget shall report by January 15, 2015, to the legislative chairs and ranking minority
282.7members with jurisdiction over state government finance on the ongoing costs incurred
282.8by the public employees insurance program in compliance with the requirements of the
282.9health insurance transparency act and may request additional appropriations, if necessary.

282.10ARTICLE 22

282.11FORECAST ADJUSTMENTS

282.12A. GENERAL EDUCATION

282.13    Section 1. Laws 2013, chapter 116, article 1, section 58, subdivision 3, is amended to
282.14read:
282.15    Subd. 3. Enrollment options transportation. For transportation of pupils attending
282.16postsecondary institutions under Minnesota Statutes, section 124D.09, or for transportation
282.17of pupils attending nonresident districts under Minnesota Statutes, section 124D.03:

282.18 282.19		$	44,000 37,000	.....	2014
282.20 282.21		$	48,000 40,000	.....	2015

282.22    Sec. 2. Laws 2013, chapter 116, article 1, section 58, subdivision 4, is amended to read:
282.23    Subd. 4. Abatement revenue. For abatement aid under Minnesota Statutes, section
282.24127A.49 :

282.25 282.26		$	2,747,000 2,876,000	.....	2014
282.27 282.28		$	3,136,000 3,103,000	.....	2015

282.29The 2014 appropriation includes $301,000 for 2013 and $2,446,000 $2,575,000
282.30 for 2014.
282.31The 2015 appropriation includes $385,000 $286,000 for 2014 and $2,751,000
282.32 $2,817,000 for 2015.

282.33    Sec. 3. Laws 2013, chapter 116, article 1, section 58, subdivision 5, is amended to read:
283.1    Subd. 5. Consolidation transition. For districts consolidating under Minnesota
283.2Statutes, section 123A.485:

283.3 283.4		$	472,000 585,000	.....	2014
283.5 283.6		$	480,000 254,000	.....	2015

283.7The 2014 appropriation includes $40,000 for 2013 and $432,000 $545,000 for 2014.
283.8The 2015 appropriation includes $68,000 $60,000 for 2014 and $412,000 $194,000
283.9 for 2015.

283.10    Sec. 4. Laws 2013, chapter 116, article 1, section 58, subdivision 11, is amended to read:
283.11    Subd. 11. Career and technical aid. For career and technical aid under Minnesota
283.12Statutes, section 124D.4531, subdivision 1b:

283.13 283.14		$	4,320,000 3,959,000	.....	2014
283.15 283.16		$	5,680,000 5,172,000	.....	2015

283.17The 2014 appropriation includes $0 for 2014 2013 and $4,320,000 $3,959,000
283.18 for 2015 2014.
283.19The 2015 appropriation includes $680,000 $439,000 for 2014 and $5,000,000
283.20 $4,733,000 for 2015.

283.21B. EDUCATION EXCELLENCE

283.22    Sec. 5. Laws 2013, chapter 116, article 3, section 37, subdivision 3, is amended to read:
283.23    Subd. 3. Achievement and integration aid. For achievement and integration aid
283.24under Minnesota Statutes, section 124D.862:

283.25 283.26		$	58,911,000 55,609,000	.....	2014
283.27 283.28		$	68,623,000 62,692,000	.....	2015

283.29The 2014 appropriation includes $0 for 2013 and $58,911,000 $55,609,000 for 2014.
283.30The 2015 appropriation includes $9,273,000 $6,178,000 for 2014 and $59,350,000
283.31 $56,514,000 for 2015.

283.32    Sec. 6. Laws 2013, chapter 116, article 3, section 37, subdivision 4, is amended to read:
283.33    Subd. 4. Literacy incentive aid. For literacy incentive aid under Minnesota
283.34Statutes, section 124D.98:

284.1 284.2		$	52,514,000 50,998,000	.....	2014
284.3 284.4		$	53,818,000 47,458,000	.....	2015

284.5The 2014 appropriation includes $6,607,000 for 2013 and $45,907,000 $44,391,000
284.6 for 2014.
284.7The 2015 appropriation includes $7,225,000 $4,932,000 for 2014 and $46,593,000
284.8 $42,526,000 for 2015.

284.9    Sec. 7. Laws 2013, chapter 116, article 3, section 37, subdivision 5, is amended to read:
284.10    Subd. 5. Interdistrict desegregation or integration transportation grants. For
284.11interdistrict desegregation or integration transportation grants under Minnesota Statutes,
284.12section 124D.87:

284.13 284.14		$	13,968,000 13,521,000	.....	2014
284.15 284.16		$	14,712,000 14,248,000	.....	2015

284.17    Sec. 8. Laws 2013, chapter 116, article 3, section 37, subdivision 6, is amended to read:
284.18    Subd. 6. Success for the future. For American Indian success for the future grants
284.19under Minnesota Statutes, section 124D.81:

284.20 284.21		$	2,137,000 2,214,000	.....	2014
284.22		$	2,137,000	.....	2015

284.23The 2014 appropriation includes $290,000 for 2013 and $1,847,000 $1,924,000
284.24 for 2014.
284.25The 2015 appropriation includes $290,000 $213,000 for 2014 and $1,847,000
284.26 $1,924,000 for 2015.

284.27    Sec. 9. Laws 2013, chapter 116, article 3, section 37, subdivision 20, is amended to read:
284.28    Subd. 20. Alternative compensation. For alternative teacher compensation aid
284.29under Minnesota Statutes, section 122A.415, subdivision 4:

284.30 284.31

$

60,340,000 71,599,000

.....

2015

284.32The 2015 appropriation includes $0 for 2014 and $59,711,000 $71,599,000 for 2015.

284.33C. CHARTER SCHOOLS

285.1    Sec. 10. Laws 2013, chapter 116, article 4, section 9, subdivision 2, is amended to read:
285.2    Subd. 2. Charter school building lease aid. For building lease aid under Minnesota
285.3Statutes, section 124D.11, subdivision 4:

285.4 285.5		$	54,484,000 54,625,000	.....	2014
285.6 285.7		$	59,533,000 58,294,000	.....	2015

285.8The 2014 appropriation includes $6,819,000 $6,681,000 for 2013 and $47,665,000
285.9 $47,944,000 for 2014.
285.10The 2015 appropriation includes $7,502,000 $5,327,000 for 2014 and $52,031,000
285.11 $52,967,000 for 2015.

285.12D. SPECIAL PROGRAMS

285.13    Sec. 11. Laws 2013, chapter 116, article 5, section 31, subdivision 2, is amended to read:
285.14    Subd. 2. Special education; regular. For special education aid under Minnesota
285.15Statutes, section 125A.75:

285.16 285.17		$	997,725,000 1,038,465,000	.....	2014
285.18 285.19		$	1,108,211,000 1,111,641,000	.....	2015

285.20The 2014 appropriation includes $118,232,000 $118,183,000 for 2013 and
285.21$802,884,000 $920,282,000 for 2014.
285.22The 2015 appropriation includes $169,929,000 $129,549,000 for 2014 and
285.23$938,282,000 $982,092,000 for 2015.

285.24    Sec. 12. Laws 2013, chapter 116, article 5, section 31, subdivision 3, is amended to read:
285.25    Subd. 3. Aid for children with disabilities. For aid under Minnesota Statutes,
285.26section 125A.75, subdivision 3, for children with disabilities placed in residential facilities
285.27within the district boundaries for whom no district of residence can be determined:

285.28 285.29		$	1,655,000 1,548,000	.....	2014
285.30 285.31		$	1,752,000 1,674,000	.....	2015

285.32If the appropriation for either year is insufficient, the appropriation for the other
285.33year is available.

285.34    Sec. 13. Laws 2013, chapter 116, article 5, section 31, subdivision 4, is amended to read:
286.1    Subd. 4. Travel for home-based services. For aid for teacher travel for home-based
286.2services under Minnesota Statutes, section 125A.75, subdivision 1:

286.3 286.4		$	345,000 351,000	.....	2014
286.5 286.6		$	355,000 346,000	.....	2015

286.7The 2014 appropriation includes $45,000 for 2013 and $300,000 $306,000 for 2014.
286.8The 2015 appropriation includes $47,000 $33,000 for 2014 and $308,000 $313,000
286.9 for 2015.

286.10    Sec. 14. Laws 2013, chapter 116, article 5, section 31, subdivision 5, is amended to read:
286.11    Subd. 5. Special education; excess costs. For excess cost aid under Minnesota
286.12Statutes, section 125A.79, subdivision 7:

286.13 286.14

$

42,030,000 42,016,000

.....

2014

286.15The 2014 appropriation includes $42,030,000 $42,016,000 for 2013 and $0 for 2014.

286.16E. FACILITIES AND TECHNOLOGY

286.17    Sec. 15. Laws 2013, chapter 116, article 6, section 12, subdivision 2, is amended to read:
286.18    Subd. 2. Health and safety revenue. For health and safety aid according to
286.19Minnesota Statutes, section 123B.57, subdivision 5:

286.20		$	463,000 471,000	.....	2014
286.21		$	434,000651,000	.....	2015

286.22The 2014 appropriation includes $26,000 $24,000 for 2013 and $437,000 $447,000
286.23 for 2014.
286.24The 2015 appropriation includes $68,000 $49,000 for 2014 and $366,000 $602,000
286.25 for 2015.

286.26    Sec. 16. Laws 2013, chapter 116, article 6, section 12, subdivision 3, is amended to read:
286.27    Subd. 3. Debt service equalization. For debt service aid according to Minnesota
286.28Statutes, section 123B.53, subdivision 6:

286.29 286.30		$	19,083,000 19,778,000	.....	2014
286.31 286.32		$	25,060,000 22,591,000	.....	2015

286.33The 2014 appropriation includes $2,397,000 for 2013 and $16,686,000 $17,381,000
286.34 for 2014.
287.1The 2015 appropriation includes $2,626,000 $1,931,000 for 2014 and $22,434,000
287.2 $20,660,000 for 2015.

287.3    Sec. 17. Laws 2013, chapter 116, article 6, section 12, subdivision 4, is amended to read:
287.4    Subd. 4. Alternative facilities bonding aid. For alternative facilities bonding aid,
287.5according to Minnesota Statutes, section 123B.59, subdivision 1:

287.6 287.7		$	19,287,000 19,982,000	.....	2014
287.8		$	19,287,000	.....	2015

287.9The 2014 appropriation includes $2,623,000 for 2013 and $16,664,000 $17,359,000
287.10 for 2014.
287.11The 2015 appropriation includes $2,623,000 $1,928,000 for 2014 and $16,664,000
287.12 $17,359,000 for 2015.

287.13    Sec. 18. Laws 2013, chapter 116, article 6, section 12, subdivision 6, is amended to read:
287.14    Subd. 6. Deferred maintenance aid. For deferred maintenance aid, according to
287.15Minnesota Statutes, section 123B.591, subdivision 4:

287.16 287.17		$	3,564,000 3,877,000	.....	2014
287.18 287.19		$	3,730,000 4,024,000	.....	2015

287.20The 2014 appropriation includes $456,000 $475,000 for 2013 and $3,108,000
287.21 $3,402,000 for 2014.
287.22The 2015 appropriation includes $489,000 $378,000 for 2014 and $3,241,000
287.23 $3,646,000 for 2015.

287.24F. NUTRITION AND LIBRARIES

287.25    Sec. 19. Laws 2013, chapter 116, article 7, section 21, subdivision 4, is amended to read:
287.26    Subd. 4. Kindergarten milk. For kindergarten milk aid under Minnesota Statutes,
287.27section 124D.118:

287.28 287.29		$	1,039,000 992,000	.....	2014
287.30 287.31		$	1,049,000 1,002,000	.....	2015

287.32    Sec. 20. Laws 2013, chapter 116, article 7, section 21, subdivision 6, is amended to read:
288.1    Subd. 6. Basic system support. For basic system support grants under Minnesota
288.2Statutes, section 134.355:

288.3 288.4		$	13,570,000 14,058,000	.....	2014
288.5 288.6		$	13,570,000 13,570,000	.....	2015

288.7The 2014 appropriation includes $1,845,000 for 2013 and $11,725,000 $12,213,000
288.8 for 2014.
288.9The 2015 appropriation includes $1,845,000 $1,357,000 for 2014 and $11,725,000
288.10 $12,213,000 for 2015.

288.11    Sec. 21. Laws 2013, chapter 116, article 7, section 21, subdivision 7, is amended to read:
288.12    Subd. 7. Multicounty, multitype library systems. For grants under Minnesota
288.13Statutes, sections 134.353 and 134.354, to multicounty, multitype library systems:

288.14 288.15		$	1,300,000 1,346,000	.....	2014
288.16		$	1,300,000	.....	2015

288.17The 2014 appropriation includes $176,000 for 2013 and $1,124,000 $1,170,000
288.18 for 2014.
288.19The 2015 appropriation includes $176,000 $130,000 for 2014 and $1,124,000
288.20 $1,170,000 for 2015.

288.21    Sec. 22. Laws 2013, chapter 116, article 7, section 21, subdivision 9, is amended to read:
288.22    Subd. 9. Regional library telecommunications aid. For regional library
288.23telecommunications aid under Minnesota Statutes, section 134.355:

288.24 288.25		$	2,300,000 2,382,000	.....	2014
288.26		$	2,300,000	.....	2015

288.27The 2014 appropriation includes $312,000 for 2013 and $1,988,000 $2,070,000
288.28 for 2014.
288.29The 2015 appropriation includes $312,000 $230,000 for 2014 and $1,988,000
288.30 $2,070,000 for 2015.

288.31G. EARLY CHILDHOOD EDUCATION, SELF-SUFFICIENCY,
288.32AND LIFELONG LEARNING

288.33    Sec. 23. Laws 2013, chapter 116, article 8, section 5, subdivision 4, is amended to read:
289.1    Subd. 4. Health and developmental screening aid. For health and developmental
289.2screening aid under Minnesota Statutes, sections 121A.17 and 121A.19:

289.3 289.4		$	3,421,000 3,524,000	.....	2014
289.5 289.6		$	3,344,000 3,330,000	.....	2015

289.7The 2014 appropriation includes $474,000 $471,000 for 2013 and $2,947,000
289.8 $3,053,000 for 2014.
289.9The 2015 appropriation includes $463,000 $339,000 for 2014 and $2,881,000
289.10 $2,991,000 for 2015.

289.11    Sec. 24. Laws 2013, chapter 116, article 8, section 5, subdivision 10, is amended to read:
289.12    Subd. 10. Community education aid. For community education aid under
289.13Minnesota Statutes, section 124D.20:

289.14 289.15		$	935,000 955,000	.....	2014
289.16 289.17		$	1,056,000 1,060,000	.....	2015

289.18The 2014 appropriation includes $118,000 for 2013 and $817,000 $837,000 for 2014.
289.19The 2015 appropriation includes $128,000 $93,000 for 2014 and $928,000 $967,000
289.20 for 2015.

289.21    Sec. 25. Laws 2013, chapter 116, article 8, section 5, subdivision 11, is amended to read:
289.22    Subd. 11. Adults with disabilities program aid. For adults with disabilities
289.23programs under Minnesota Statutes, section 124D.56:

289.24		$	710,000 734,000	.....	2014
289.25		$	710,000	.....	2015

289.26The 2014 appropriation includes $96,000 $95,000 for 2013 and $614,000 $639,000
289.27 for 2014.
289.28The 2015 appropriation includes $96,000 $71,000 for 2014 and $614,000 $639,000
289.29 for 2015.

289.30ARTICLE 23

289.31HEALTH DEPARTMENT

289.32    Section 1. Minnesota Statutes 2013 Supplement, section 103I.205, subdivision 4,
289.33is amended to read:
290.1    Subd. 4. License required. (a) Except as provided in paragraph (b), (c), (d), or (e),
290.2section 103I.401, subdivision 2, or section 103I.601, subdivision 2, a person may not
290.3drill, construct, repair, or seal a well or boring unless the person has a well contractor's
290.4license in possession.
290.5(b) A person may construct, repair, and seal a monitoring well if the person:
290.6(1) is a professional engineer licensed under sections 326.02 to 326.15 in the
290.7branches of civil or geological engineering;
290.8(2) is a hydrologist or hydrogeologist certified by the American Institute of
290.9Hydrology;
290.10(3) is a professional geoscientist licensed under sections 326.02 to 326.15;
290.11(4) is a geologist certified by the American Institute of Professional Geologists; or
290.12(5) meets the qualifications established by the commissioner in rule.
290.13A person must register with the commissioner as a monitoring well contractor on
290.14forms provided by the commissioner.
290.15(c) A person may do the following work with a limited well/boring contractor's
290.16license in possession. A separate license is required for each of the six activities:
290.17(1) installing or repairing well screens or pitless units or pitless adaptors and well
290.18casings from the pitless adaptor or pitless unit to the upper termination of the well casing;
290.19(2) constructing, repairing, and sealing drive point wells or dug wells;
290.20(3) installing well pumps or pumping equipment;
290.21(4) sealing wells;
290.22(5) constructing, repairing, or sealing dewatering wells; or
290.23(6) constructing, repairing, or sealing bored geothermal heat exchangers.
290.24(d) A person may construct, repair, and seal an elevator boring with an elevator
290.25boring contractor's license.
290.26(e) Notwithstanding other provisions of this chapter requiring a license or
290.27registration, a license or registration is not required for a person who complies with the
290.28other provisions of this chapter if the person is:
290.29(1) an individual who constructs a well on land that is owned or leased by the
290.30individual and is used by the individual for farming or agricultural purposes or as the
290.31individual's place of abode; or
290.32(2) an individual who performs labor or services for a contractor licensed or
290.33registered under the provisions of this chapter in connection with the construction, sealing,
290.34or repair of a well or boring at the direction and under the personal supervision of a
290.35contractor licensed or registered under the provisions of this chapter; or
291.1(3) a licensed plumber who is repairing submersible pumps or water pipes associated
291.2with well water systems if the repair location is within an area where there is no licensed
291.3or registered well contractor within 25 miles.

291.4    Sec. 2. Minnesota Statutes 2012, section 144.1501, subdivision 1, is amended to read:
291.5    Subdivision 1. Definitions. (a) For purposes of this section, the following definitions
291.6apply.
291.7(b) "Dentist" means an individual who is licensed to practice dentistry.
291.8(c) "Designated rural area" means an area defined as a small rural area or
291.9isolated rural area according to the four category classifications of the Rural Urban
291.10Commuting Area system developed for the United States Health Resources and Services
291.11Administration a city or township that is:
291.12(1) outside the seven-county metropolitan area as defined in section 473.121,
291.13subdivision 2; and
291.14(2) has a population under 15,000.
291.15(d) "Emergency circumstances" means those conditions that make it impossible for
291.16the participant to fulfill the service commitment, including death, total and permanent
291.17disability, or temporary disability lasting more than two years.
291.18(e) "Medical resident" means an individual participating in a medical residency in
291.19family practice, internal medicine, obstetrics and gynecology, pediatrics, or psychiatry.
291.20(f) "Midlevel practitioner" means a nurse practitioner, nurse-midwife, nurse
291.21anesthetist, advanced clinical nurse specialist, or physician assistant.
291.22(g) "Nurse" means an individual who has completed training and received all
291.23licensing or certification necessary to perform duties as a licensed practical nurse or
291.24registered nurse.
291.25(h) "Nurse-midwife" means a registered nurse who has graduated from a program of
291.26study designed to prepare registered nurses for advanced practice as nurse-midwives.
291.27(i) "Nurse practitioner" means a registered nurse who has graduated from a program
291.28of study designed to prepare registered nurses for advanced practice as nurse practitioners.
291.29(j) "Pharmacist" means an individual with a valid license issued under chapter 151.
291.30(k) "Physician" means an individual who is licensed to practice medicine in the areas
291.31of family practice, internal medicine, obstetrics and gynecology, pediatrics, or psychiatry.
291.32(l) "Physician assistant" means a person licensed under chapter 147A.
291.33(m) "Qualified educational loan" means a government, commercial, or foundation
291.34loan for actual costs paid for tuition, reasonable education expenses, and reasonable living
291.35expenses related to the graduate or undergraduate education of a health care professional.
292.1(n) "Underserved urban community" means a Minnesota urban area or population
292.2included in the list of designated primary medical care health professional shortage areas
292.3(HPSAs), medically underserved areas (MUAs), or medically underserved populations
292.4(MUPs) maintained and updated by the United States Department of Health and Human
292.5Services.

292.6    Sec. 3. Minnesota Statutes 2012, section 144.551, subdivision 1, is amended to read:
292.7    Subdivision 1. Restricted construction or modification. (a) The following
292.8construction or modification may not be commenced:
292.9(1) any erection, building, alteration, reconstruction, modernization, improvement,
292.10extension, lease, or other acquisition by or on behalf of a hospital that increases the bed
292.11capacity of a hospital, relocates hospital beds from one physical facility, complex, or site
292.12to another, or otherwise results in an increase or redistribution of hospital beds within
292.13the state; and
292.14(2) the establishment of a new hospital.
292.15(b) This section does not apply to:
292.16(1) construction or relocation within a county by a hospital, clinic, or other health
292.17care facility that is a national referral center engaged in substantial programs of patient
292.18care, medical research, and medical education meeting state and national needs that
292.19receives more than 40 percent of its patients from outside the state of Minnesota;
292.20(2) a project for construction or modification for which a health care facility held
292.21an approved certificate of need on May 1, 1984, regardless of the date of expiration of
292.22the certificate;
292.23(3) a project for which a certificate of need was denied before July 1, 1990, if a
292.24timely appeal results in an order reversing the denial;
292.25(4) a project exempted from certificate of need requirements by Laws 1981, chapter
292.26200, section 2;
292.27(5) a project involving consolidation of pediatric specialty hospital services within
292.28the Minneapolis-St. Paul metropolitan area that would not result in a net increase in the
292.29number of pediatric specialty hospital beds among the hospitals being consolidated;
292.30(6) a project involving the temporary relocation of pediatric-orthopedic hospital beds
292.31to an existing licensed hospital that will allow for the reconstruction of a new philanthropic,
292.32pediatric-orthopedic hospital on an existing site and that will not result in a net increase in
292.33the number of hospital beds. Upon completion of the reconstruction, the licenses of both
292.34hospitals must be reinstated at the capacity that existed on each site before the relocation;
293.1(7) the relocation or redistribution of hospital beds within a hospital building or
293.2identifiable complex of buildings provided the relocation or redistribution does not result
293.3in: (i) an increase in the overall bed capacity at that site; (ii) relocation of hospital beds
293.4from one physical site or complex to another; or (iii) redistribution of hospital beds within
293.5the state or a region of the state;
293.6(8) relocation or redistribution of hospital beds within a hospital corporate system
293.7that involves the transfer of beds from a closed facility site or complex to an existing site
293.8or complex provided that: (i) no more than 50 percent of the capacity of the closed facility
293.9is transferred; (ii) the capacity of the site or complex to which the beds are transferred
293.10does not increase by more than 50 percent; (iii) the beds are not transferred outside of a
293.11federal health systems agency boundary in place on July 1, 1983; and (iv) the relocation or
293.12redistribution does not involve the construction of a new hospital building;
293.13(9) a construction project involving up to 35 new beds in a psychiatric hospital in
293.14Rice County that primarily serves adolescents and that receives more than 70 percent of its
293.15patients from outside the state of Minnesota;
293.16(10) a project to replace a hospital or hospitals with a combined licensed capacity
293.17of 130 beds or less if: (i) the new hospital site is located within five miles of the current
293.18site; and (ii) the total licensed capacity of the replacement hospital, either at the time of
293.19construction of the initial building or as the result of future expansion, will not exceed 70
293.20licensed hospital beds, or the combined licensed capacity of the hospitals, whichever is less;
293.21(11) the relocation of licensed hospital beds from an existing state facility operated
293.22by the commissioner of human services to a new or existing facility, building, or complex
293.23operated by the commissioner of human services; from one regional treatment center
293.24site to another; or from one building or site to a new or existing building or site on the
293.25same campus;
293.26(12) the construction or relocation of hospital beds operated by a hospital having a
293.27statutory obligation to provide hospital and medical services for the indigent that does not
293.28result in a net increase in the number of hospital beds, notwithstanding section 144.552, 27
293.29beds, of which 12 serve mental health needs, may be transferred from Hennepin County
293.30Medical Center to Regions Hospital under this clause;
293.31(13) a construction project involving the addition of up to 31 new beds in an existing
293.32nonfederal hospital in Beltrami County;
293.33(14) a construction project involving the addition of up to eight new beds in an
293.34existing nonfederal hospital in Otter Tail County with 100 licensed acute care beds;
293.35(15) a construction project involving the addition of 20 new hospital beds
293.36used for rehabilitation services in an existing hospital in Carver County serving the
294.1southwest suburban metropolitan area. Beds constructed under this clause shall not be
294.2eligible for reimbursement under medical assistance, general assistance medical care,
294.3or MinnesotaCare;
294.4(16) a project for the construction or relocation of up to 20 hospital beds for the
294.5operation of up to two psychiatric facilities or units for children provided that the operation
294.6of the facilities or units have received the approval of the commissioner of human services;
294.7(17) a project involving the addition of 14 new hospital beds to be used for
294.8rehabilitation services in an existing hospital in Itasca County;
294.9(18) a project to add 20 licensed beds in existing space at a hospital in Hennepin
294.10County that closed 20 rehabilitation beds in 2002, provided that the beds are used only
294.11for rehabilitation in the hospital's current rehabilitation building. If the beds are used for
294.12another purpose or moved to another location, the hospital's licensed capacity is reduced
294.13by 20 beds;
294.14(19) a critical access hospital established under section 144.1483, clause (9), and
294.15section 1820 of the federal Social Security Act, United States Code, title 42, section
294.161395i-4, that delicensed beds since enactment of the Balanced Budget Act of 1997, Public
294.17Law 105-33, to the extent that the critical access hospital does not seek to exceed the
294.18maximum number of beds permitted such hospital under federal law;
294.19(20) notwithstanding section 144.552, a project for the construction of a new hospital
294.20in the city of Maple Grove with a licensed capacity of up to 300 beds provided that:
294.21(i) the project, including each hospital or health system that will own or control the
294.22entity that will hold the new hospital license, is approved by a resolution of the Maple
294.23Grove City Council as of March 1, 2006;
294.24(ii) the entity that will hold the new hospital license will be owned or controlled by
294.25one or more not-for-profit hospitals or health systems that have previously submitted a
294.26plan or plans for a project in Maple Grove as required under section 144.552, and the
294.27plan or plans have been found to be in the public interest by the commissioner of health
294.28as of April 1, 2005;
294.29(iii) the new hospital's initial inpatient services must include, but are not limited
294.30to, medical and surgical services, obstetrical and gynecological services, intensive
294.31care services, orthopedic services, pediatric services, noninvasive cardiac diagnostics,
294.32behavioral health services, and emergency room services;
294.33(iv) the new hospital:
294.34(A) will have the ability to provide and staff sufficient new beds to meet the growing
294.35needs of the Maple Grove service area and the surrounding communities currently being
295.1served by the hospital or health system that will own or control the entity that will hold
295.2the new hospital license;
295.3(B) will provide uncompensated care;
295.4(C) will provide mental health services, including inpatient beds;
295.5(D) will be a site for workforce development for a broad spectrum of
295.6health-care-related occupations and have a commitment to providing clinical training
295.7programs for physicians and other health care providers;
295.8(E) will demonstrate a commitment to quality care and patient safety;
295.9(F) will have an electronic medical records system, including physician order entry;
295.10(G) will provide a broad range of senior services;
295.11(H) will provide emergency medical services that will coordinate care with regional
295.12providers of trauma services and licensed emergency ambulance services in order to
295.13enhance the continuity of care for emergency medical patients; and
295.14(I) will be completed by December 31, 2009, unless delayed by circumstances
295.15beyond the control of the entity holding the new hospital license; and
295.16(v) as of 30 days following submission of a written plan, the commissioner of health
295.17has not determined that the hospitals or health systems that will own or control the entity
295.18that will hold the new hospital license are unable to meet the criteria of this clause;
295.19(21) a project approved under section 144.553;
295.20(22) a project for the construction of a hospital with up to 25 beds in Cass County
295.21within a 20-mile radius of the state Ah-Gwah-Ching facility, provided the hospital's
295.22license holder is approved by the Cass County Board;
295.23(23) a project for an acute care hospital in Fergus Falls that will increase the bed
295.24capacity from 108 to 110 beds by increasing the rehabilitation bed capacity from 14 to 16
295.25and closing a separately licensed 13-bed skilled nursing facility; or
295.26(24) notwithstanding section 144.552, a project for the construction and expansion
295.27of a specialty psychiatric hospital in Hennepin County for up to 50 beds, exclusively for
295.28patients who are under 21 years of age on the date of admission. The commissioner
295.29conducted a public interest review of the mental health needs of Minnesota and the Twin
295.30Cities metropolitan area in 2008. No further public interest review shall be conducted for
295.31the construction or expansion project under this clause; or
295.32(25) a project for a 16-bed psychiatric hospital in the city of Thief River Falls, if
295.33the commissioner finds the project is in the public interest after the public interest review
295.34conducted under section 144.552 is complete.
295.35EFFECTIVE DATE.This section is effective the day following final enactment.

296.1    Sec. 4. [144.9513] HEALTHY HOUSING GRANTS.
296.2    Subdivision 1. Definitions. For purposes of this section and sections 144.9501 to
296.3144.9512, the following terms have the meanings given.
296.4(a) "Housing" means a room or group of rooms located within a dwelling forming
296.5a single habitable unit with facilities used or intended to be used for living, sleeping,
296.6cooking, and eating.
296.7(b) "Healthy housing" means housing that is sited, designed, built, renovated, and
296.8maintained in ways that supports the health of residents.
296.9(c) "Housing-based health threat" means a chemical, biologic, or physical agent
296.10in the immediate housing environment, including toxic lead, mold, radon, and indoor
296.11allergens and contaminants in carpets, which constitutes a potential or actual hazard to
296.12human health at acute or chronic exposure levels.
296.13(d) "Primary prevention" means preventing exposure to housing-based health threats
296.14before seeing clinical symptoms or a diagnosis.
296.15(e) "Secondary prevention" means intervention to mitigate health effects on people
296.16with housing-based health threats.
296.17    Subd. 2. Grants; administration. Grant applicants shall submit applications to
296.18the commissioner as directed by a request for proposals. Grants must be competitively
296.19awarded and recipients of a grant under this section must prepare and submit a quarterly
296.20progress report to the commissioner beginning three months after receipt of the grant. The
296.21commissioner shall provide technical assistance and program support as needed to ensure
296.22that housing-based health threats are effectively identified, mitigated, and evaluated by
296.23grantees.
296.24    Subd. 3. Healthy housing and implementation grants; eligible activities. (a)
296.25Within the limits of available appropriations, the commissioner shall make grants to
296.26support implementation of healthy housing programs to local boards of health, community
296.27action agencies under section 256E.31, and nonprofit organizations with expertise in
296.28providing outreach, education, and training on healthy housing subjects and in providing
296.29comprehensive healthy housing assessments and interventions.
296.30(b) The grantee may conduct the following activities:
296.31(1) implement and maintain primary prevention programs to reduce housing-based
296.32health threats that include the following:
296.33(i) providing education materials to the general public and to property owners,
296.34contractors, code officials, health care providers, public health professionals, health
296.35educators, nonprofit organizations, and other persons and organizations engaged in
296.36housing and health issues;
297.1(ii) promoting awareness of community, legal, and housing resources; and
297.2(iii) promoting the use of hazard reduction measures in new housing construction
297.3and housing rehabilitation programs;
297.4(2) provide training on identifying and addressing housing-based health threats;
297.5(3) provide technical assistance on the implementation of mitigation measures;
297.6(4) promote adoption of evidence-based best practices for mitigation of
297.7housing-based health threats;
297.8(5) develop work practices for addressing specific housing-based health threats;
297.9(6) identify, characterize, and mitigate hazards in housing that contribute to adverse
297.10health outcomes;
297.11(7) ensure screening services and other secondary prevention measures are provided
297.12to populations at high risk for housing-related health threats;
297.13(8) promote compliance with Department of Health guidelines and other best
297.14practices, as identified by the commissioner, for preventing or reducing housing-based
297.15health threats;
297.16(9) establish local or regional collaborative groups to ensure that resources for
297.17addressing housing-based health threats are coordinated; or
297.18(10) develop model programs for addressing housing-based health threats.

297.19    Sec. 5. [144A.484] INTEGRATED LICENSURE; HOME AND
297.20COMMUNITY-BASED SERVICES DESIGNATION.
297.21    Subdivision 1. Integrated licensing established. (a) From January 1, 2014, to
297.22June 30, 2015, the commissioner of health shall enforce the home and community-based
297.23services standards under chapter 245D for those providers who also have a home care
297.24license pursuant to this chapter as required under Laws 2013, chapter 108, article 8, section
297.2560, and article 11, section 31. During this period, the commissioner shall provide technical
297.26assistance to achieve and maintain compliance with applicable law or rules governing the
297.27provision of home and community-based services, including complying with the service
297.28recipient rights notice in subdivision 4, clause (4). If during the survey, the commissioner
297.29finds that the licensee has failed to achieve compliance with an applicable law or rule
297.30under chapter 245D and this failure does not imminently endanger the health, safety, or
297.31rights of the persons served by the program, the commissioner may issue a licensing
297.32survey report with recommendations for achieving and maintaining compliance.
297.33(b) Beginning July 1, 2015, a home care provider applicant or license holder may
297.34apply to the commissioner of health for a home and community-based services designation
297.35for the provision of basic support services identified under section 245D.03, subdivision 1,
298.1paragraph (b). The designation allows the license holder to provide basic support services
298.2that would otherwise require licensure under chapter 245D, under the license holder's
298.3home care license governed by sections 144A.43 to 144A.481.
298.4    Subd. 2. Application for home and community-based services designation. An
298.5application for a home and community-based services designation must be made on the
298.6forms and in the manner prescribed by the commissioner. The commissioner shall provide
298.7the applicant with instruction for completing the application and provide information
298.8about the requirements of other state agencies that affect the applicant. Application for
298.9the home and community-based services designation is subject to the requirements under
298.10section 144A.473.
298.11    Subd. 3. Home and community-based services designation fees. A home care
298.12provider applicant or licensee applying for the home and community-based services
298.13designation or renewal of a home and community-based services designation must submit
298.14a fee in the amount specified in subdivision 8.
298.15    Subd. 4. Applicability of home and community-based services requirements. A
298.16home care provider with a home and community-based services designation must comply
298.17with the requirements for home care services governed by this chapter. For the provision
298.18of basic support services, the home care provider must also comply with the following
298.19home and community-based services licensing requirements:
298.20(1) service planning and delivery requirements in section 245D.07;
298.21(2) protection standards in section 245D.06;
298.22(3) emergency use of manual restraints in section 245D.061; and
298.23(4) protection-related rights in section 245D.04, subdivision 3, paragraph (a), clauses
298.24(5), (7), (8), (12), and (13), and paragraph (b).
298.25A home care provider with the integrated license-home and community-based services
298.26designation may utilize a bill of rights which incorporates the service recipient rights in
298.27section 245D.04, subdivision 3, paragraph (a), clauses (5), (7), (8), (12), and (13), and
298.28paragraph (b) with the home care bill of rights in section 144A.44.
298.29    Subd. 5. Monitoring and enforcement. (a) The commissioner shall monitor for
298.30compliance with the home and community-based services requirements identified in
298.31subdivision 4, in accordance with this section and any agreements by the commissioners
298.32of health and human services.
298.33(b) The commissioner shall enforce compliance with applicable home and
298.34community-based services licensing requirements as follows:
298.35(1) the commissioner may deny a home and community-based services designation
298.36in accordance with section 144A.473 or 144A.475; and
299.1(2) if the commissioner finds that the applicant or license holder has failed to comply
299.2with the applicable home and community-based services designation requirements, the
299.3commissioner may issue:
299.4(i) a correction order in accordance with section 144A.474;
299.5(ii) an order of conditional license in accordance with section 144A.475;
299.6(iii) a sanction in accordance with section 144A.475; or
299.7(iv) any combination of clauses (i) to (iii).
299.8    Subd. 6. Appeals. A home care provider applicant that has been denied a temporary
299.9license will also be denied their application for the home and community-based services
299.10designation. The applicant may request reconsideration in accordance with section
299.11144A.473, subdivision 3. A licensed home care provider whose application for a home
299.12and community-based services designation has been denied or whose designation has been
299.13suspended or revoked may appeal the denial, suspension, revocation, or refusal to renew a
299.14home and community-based services designation in accordance with section 144A.475.
299.15A license holder may request reconsideration of a correction order in accordance with
299.16section 144A.474, subdivision 12.
299.17    Subd. 7. Agreements. The commissioners of health and human services shall enter
299.18into any agreements necessary to implement this section.
299.19    Subd. 8. Fees; home and community-based services designation. (a) The
299.20initial fee for a home and community-based services designation is $155. A home care
299.21provider renewing the home and community-based services designation must pay an
299.22annual nonrefundable fee, in addition to the annual home care license fee, according to the
299.23following schedule and based on revenues from the home and community-based services
299.24that require licensure under chapter 245D during the calendar year immediately preceding
299.25the year in which the license fee is paid:

299.26 299.27	Provider Annual Revenue from HCBS	HCBS Designation
299.28	greater than $1,500,000	$320
299.29	greater than $1,275,000 and no more than $1,500,000	$300
299.30	greater than $1,100,000 and no more than $1,275,000	$280
299.31	greater than $950,000 and no more than $1,100,000	$260
299.32	greater than $850,000 and no more than $950,000	$240
299.33	greater than $750,000 and no more than $850,000	$220
299.34	greater than $650,000 and no more than $750,000	$200
299.35	greater than $550,000 and no more than $650,000	$180
299.36	greater than $450,000 and no more than $550,000	$160
299.37	greater than $350,000 and no more than $450,000	$140
299.38	greater than $250,000 and no more than $350,000	$120
300.1	greater than $100,000 and no more than $250,000	$100
300.2	greater than $50,000 and no more than $100,000	$80
300.3	greater than $25,000 and no more than $50,000	$60
300.4	no more than $25,000	$40

300.5(b) Fees and penalties collected under this section shall be deposited in the state
300.6treasury and credited to the state government special revenue fund.
300.7EFFECTIVE DATE.Minnesota Statutes, section 144A.484, subdivisions 2 to 8,
300.8are effective July 1, 2015.

300.9    Sec. 6. Minnesota Statutes 2013 Supplement, section 145.4716, subdivision 2, is
300.10amended to read:
300.11    Subd. 2. Duties of director. The director of child sex trafficking prevention is
300.12responsible for the following:
300.13    (1) developing and providing comprehensive training on sexual exploitation of
300.14youth for social service professionals, medical professionals, public health workers, and
300.15criminal justice professionals;
300.16    (2) collecting, organizing, maintaining, and disseminating information on sexual
300.17exploitation and services across the state, including maintaining a list of resources on the
300.18Department of Health Web site;
300.19    (3) monitoring and applying for federal funding for antitrafficking efforts that may
300.20benefit victims in the state;
300.21    (4) managing grant programs established under sections 145.4716 to 145.4718;
300.22    (5) managing the request for proposals for grants for comprehensive services,
300.23including trauma-informed, culturally specific services;
300.24    (6) identifying best practices in serving sexually exploited youth, as defined in
300.25section 260C.007, subdivision 31;
300.26    (6) (7) providing oversight of and technical support to regional navigators pursuant
300.27to section 145.4717;
300.28    (7) (8) conducting a comprehensive evaluation of the statewide program for safe
300.29harbor of sexually exploited youth; and
300.30    (8) (9) developing a policy consistent with the requirements of chapter 13 for sharing
300.31data related to sexually exploited youth, as defined in section 260C.007, subdivision 31,
300.32among regional navigators and community-based advocates.

300.33    Sec. 7. [145.929] HEALTH CARE GRANTS FOR THE UNINSURED.
301.1    Subdivision 1. Dental providers. (a) A dental provider is eligible for a grant under
301.2this section if:
301.3(1) the provider is a nonprofit organization not affiliated with a hospital or medical
301.4group that offers free or reduced-cost oral health care to low-income patients under the
301.5age of 21 with family incomes below 275 percent of the federal poverty guidelines who do
301.6not have insurance coverage for oral health care services;
301.7(2) the provider is eligible for critical access dental provider payments under section
301.8256B.76, subdivision 4; and
301.9(3) more than 80 percent of the dental provider's patient encounters per year are with
301.10patients who are uninsured or covered by medical assistance or MinnesotaCare.
301.11(b) Grants shall be distributed by the commissioner of health to each eligible
301.12provider based on the proportion of that provider's number of low-income uninsured
301.13patients under the age of 21 served in the reporting year to the total number of low-income
301.14uninsured patients under the age of 21 served by all eligible providers, except that no
301.15single eligible provider shall receive less than two percent or more than 30 percent of the
301.16total appropriation provided under this subdivision. If the number of eligible providers
301.17is such that the minimum of two percent cannot be provided to each eligible provider,
301.18the commissioner shall limit eligibility for the subsidy to the top 20 eligible oral health
301.19providers.
301.20    Subd. 2. Community mental health programs. A community mental health
301.21program is eligible for a grant under this section if it is a community mental health center
301.22established under section 245.62, or a nonprofit community mental health clinic that is
301.23designated as an essential community provider under section 62Q.19, and the center or
301.24clinic offers free or reduced-cost mental health care to low-income patients under the age
301.25of 21 with family incomes below 275 percent of the federal poverty guidelines who do not
301.26have health insurance coverage. The grants shall be distributed by the commissioner of
301.27health to each eligible mental health center or clinic based on the proportion of that mental
301.28health center's or clinic's number of low-income uninsured patients under the age of 21
301.29served in the reporting year to the total number of low-income uninsured patients under
301.30the age of 21 served by all mental health centers and clinics eligible for a grant under this
301.31subdivision, except that no single eligible provider shall receive less than two percent or
301.32more than 30 percent of the total appropriation provided under this subdivision.
301.33    Subd. 3. Emergency medical assistance outlier grant program. (a) The
301.34commissioner of health shall establish a grant program for hospitals for the purpose of
301.35defraying underpayments associated with the emergency medical assistance program.
301.36Grants shall be made for the services provided beginning July 1, 2014, to an individual
302.1who is enrolled in emergency medical assistance, and when an emergency medical
302.2assistance reimbursement claim is in excess of $50,000.
302.3(b) Hospitals seeking a grant from this program must submit an application that
302.4includes the number and dollar amount of hospital claims for emergency medical
302.5assistance in excess of $50,000 to the commissioner in a form prescribed by the
302.6commissioner. Grant payments shall be in proportion to the total hospital emergency
302.7medical assistance claims submitted by all applicant hospitals each state fiscal year.
302.8Claims for inpatient hospital, outpatient services, and hospital emergency department
302.9services shall be considered when determining the value of the grants.
302.10    Subd. 4. Grant process. The commissioner of health may use data submitted
302.11by organizations seeking a grant under this section, without further verification, for
302.12purposes of determining eligibility for a grant and allocating grant money among eligible
302.13organizations. The chief executive or chief financial officer must certify that the data
302.14submitted is accurate and that no changes were made in the organization's accounting and
302.15record-keeping practices or policies for providing free or reduced-cost care to uninsured
302.16patients for the purpose of creating eligibility or increasing the organization's allocation.
302.17The commissioner may audit or verify the data submitted. Grant funds must be used to
302.18defray the organization's costs of providing care and services to uninsured patients as
302.19identified under subdivision 1, 2, or 3. An organization must not receive more than one
302.20grant under subdivision 1, 2, or 3, even though the organization is potentially eligible for
302.21a grant under two or more subdivisions. Organizations eligible for a grant under this
302.22section may join together to submit a combined application provided the data submitted is
302.23certified by each individual organization.

302.24    Sec. 8. Minnesota Statutes 2013 Supplement, section 256B.04, subdivision 21, is
302.25amended to read:
302.26    Subd. 21. Provider enrollment. (a) If the commissioner or the Centers for
302.27Medicare and Medicaid Services determines that a provider is designated "high-risk," the
302.28commissioner may withhold payment from providers within that category upon initial
302.29enrollment for a 90-day period. The withholding for each provider must begin on the date
302.30of the first submission of a claim.
302.31(b) An enrolled provider that is also licensed by the commissioner under chapter
302.32245A, or is licensed as a home care provider by the Department of Health under chapter
302.33144A and has a home and community-based services designation on the home care license
302.34under section 144A.484, must designate an individual as the entity's compliance officer.
302.35The compliance officer must:
303.1(1) develop policies and procedures to assure adherence to medical assistance laws
303.2and regulations and to prevent inappropriate claims submissions;
303.3(2) train the employees of the provider entity, and any agents or subcontractors of
303.4the provider entity including billers, on the policies and procedures under clause (1);
303.5(3) respond to allegations of improper conduct related to the provision or billing of
303.6medical assistance services, and implement action to remediate any resulting problems;
303.7(4) use evaluation techniques to monitor compliance with medical assistance laws
303.8and regulations;
303.9(5) promptly report to the commissioner any identified violations of medical
303.10assistance laws or regulations; and
303.11    (6) within 60 days of discovery by the provider of a medical assistance
303.12reimbursement overpayment, report the overpayment to the commissioner and make
303.13arrangements with the commissioner for the commissioner's recovery of the overpayment.
303.14The commissioner may require, as a condition of enrollment in medical assistance, that a
303.15provider within a particular industry sector or category establish a compliance program that
303.16contains the core elements established by the Centers for Medicare and Medicaid Services.
303.17(c) The commissioner may revoke the enrollment of an ordering or rendering
303.18provider for a period of not more than one year, if the provider fails to maintain and, upon
303.19request from the commissioner, provide access to documentation relating to written orders
303.20or requests for payment for durable medical equipment, certifications for home health
303.21services, or referrals for other items or services written or ordered by such provider, when
303.22the commissioner has identified a pattern of a lack of documentation. A pattern means a
303.23failure to maintain documentation or provide access to documentation on more than one
303.24occasion. Nothing in this paragraph limits the authority of the commissioner to sanction a
303.25provider under the provisions of section 256B.064.
303.26(d) The commissioner shall terminate or deny the enrollment of any individual or
303.27entity if the individual or entity has been terminated from participation in Medicare or
303.28under the Medicaid program or Children's Health Insurance Program of any other state.
303.29(e) As a condition of enrollment in medical assistance, the commissioner shall
303.30require that a provider designated "moderate" or "high-risk" by the Centers for Medicare
303.31and Medicaid Services or the commissioner permit the Centers for Medicare and Medicaid
303.32Services, its agents, or its designated contractors and the state agency, its agents, or its
303.33designated contractors to conduct unannounced on-site inspections of any provider location.
303.34The commissioner shall publish in the Minnesota Health Care Program Provider Manual a
303.35list of provider types designated "limited," "moderate," or "high-risk," based on the criteria
303.36and standards used to designate Medicare providers in Code of Federal Regulations, title
304.142, section 424.518. The list and criteria are not subject to the requirements of chapter 14.
304.2The commissioner's designations are not subject to administrative appeal.
304.3(f) As a condition of enrollment in medical assistance, the commissioner shall
304.4require that a high-risk provider, or a person with a direct or indirect ownership interest in
304.5the provider of five percent or higher, consent to criminal background checks, including
304.6fingerprinting, when required to do so under state law or by a determination by the
304.7commissioner or the Centers for Medicare and Medicaid Services that a provider is
304.8designated high-risk for fraud, waste, or abuse.
304.9(g)(1) Upon initial enrollment, reenrollment, and revalidation, all durable medical
304.10equipment, prosthetics, orthotics, and supplies (DMEPOS) suppliers operating in
304.11Minnesota and receiving Medicaid funds must purchase a surety bond that is annually
304.12renewed and designates the Minnesota Department of Human Services as the obligee, and
304.13must be submitted in a form approved by the commissioner.
304.14(2) At the time of initial enrollment or reenrollment, the provider agency must
304.15purchase a performance bond of $50,000. If a revalidating provider's Medicaid revenue
304.16in the previous calendar year is up to and including $300,000, the provider agency must
304.17purchase a performance bond of $50,000. If a revalidating provider's Medicaid revenue
304.18in the previous calendar year is over $300,000, the provider agency must purchase a
304.19performance bond of $100,000. The performance bond must allow for recovery of costs
304.20and fees in pursuing a claim on the bond.
304.21(h) The Department of Human Services may require a provider to purchase a
304.22performance surety bond as a condition of initial enrollment, reenrollment, reinstatement,
304.23or continued enrollment if: (1) the provider fails to demonstrate financial viability, (2) the
304.24department determines there is significant evidence of or potential for fraud and abuse by
304.25the provider, or (3) the provider or category of providers is designated high-risk pursuant
304.26to paragraph (a) and as per Code of Federal Regulations, title 42, section 455.450. The
304.27performance bond must be in an amount of $100,000 or ten percent of the provider's
304.28payments from Medicaid during the immediately preceding 12 months, whichever is
304.29greater. The performance bond must name the Department of Human Services as an
304.30obligee and must allow for recovery of costs and fees in pursuing a claim on the bond.

304.31    Sec. 9. LEGISLATIVE HEALTH CARE WORKFORCE COMMISSION.
304.32    Subdivision 1. Legislative oversight. The Legislative Health Care Workforce
304.33Commission is created to study and make recommendations to the legislature on how to
304.34achieve the goal of strengthening the workforce in health care.
305.1    Subd. 2. Membership. The Legislative Health Care Workforce Commission
305.2consists of five members of the senate appointed by the Subcommittee on Committees
305.3of the Committee on Rules and Administration and five members of the house of
305.4representatives appointed by the speaker of the house. The Legislative Health Care
305.5Workforce Commission must include three members of the majority party and two
305.6members of the minority party in each house.
305.7    Subd. 3. Officers. The commission must elect a chair and may elect other officers
305.8as it determines are necessary. The chair shall alternate between a member of the senate
305.9and a member of the house of representatives in January of each odd-numbered year.
305.10    Subd. 4. Initial appointments and meeting. Appointing authorities for the
305.11Legislative Health Care Workforce Commission must make initial appointments by June
305.121, 2014. The speaker of the house of representatives must designate one member of the
305.13commission to convene the first meeting of the commission by June 15, 2014.
305.14    Subd. 5. Report to the legislature. The Legislative Health Care Workforce
305.15Commission must provide a preliminary report making recommendations to the legislature
305.16by December 31, 2014. The commissioner must provide a final report to the legislature by
305.17December 31, 2016. The final report must:
305.18(1) identify current and anticipated health care workforce shortages, by both
305.19provider type and geography;
305.20(2) evaluate the effectiveness of incentives currently available to develop, attract,
305.21and retain a highly skilled health care workforce;
305.22(3) study alternative incentives to develop, attract, and retain a highly skilled and
305.23diverse health care workforce; and
305.24(4) identify current causes and potential solutions to barriers related to the primary
305.25care workforce, including, but not limited to:
305.26(i) training and residency shortages;
305.27(ii) disparities in income between primary care and other providers; and
305.28(iii) negative perceptions of primary care among students.
305.29    Subd. 6. Assistance to the commission. The commissioners of health, human
305.30services, commerce, and other state agencies shall provide assistance and technical
305.31support to the commission at the request of the commission. The Minnesota Medical
305.32Association and other stakeholder groups shall also provide advice to the commission as
305.33needed. The commission may convene subcommittees to provide additional assistance
305.34and advice to the commission.
306.1    Subd. 7. Commission member expenses. Members of the commission may receive
306.2per diem and expense reimbursement from money appropriated for the commission in
306.3the manner and amount prescribed for per diem and expense payments by the senate
306.4Committee on Rules and Administration and the House Committee on Rules and
306.5Legislative Administration.
306.6    Subd. 8. Expiration. The Legislative Health Care Workforce Commission expires
306.7on January 1, 2017.
306.8EFFECTIVE DATE.This section is effective the day following final enactment.

306.9    Sec. 10. QUALITY TRANSPARENCY.
306.10(a) The commissioner of health shall develop an implementation plan for stratifying
306.11measures based on disability, race, ethnicity, language, and other sociodemographic factors
306.12that are correlated with health disparities and impact performance on quality measures.
306.13The plan must be designed so that quality measures can be stratified beginning January 1,
306.142017, in order to advance work aimed at identifying and eliminating health disparities.
306.15By January 15, 2015, the commissioner shall submit a report to the chairs and ranking
306.16minority members of the senate and house of representatives committees and divisions
306.17with jurisdiction on health and human services and finance with the plan, including an
306.18estimated budget, timeline, and processes to be used for implementation.
306.19(b) The commissioner of health shall assess the risk adjustment methodology
306.20established under Minnesota Statutes, section 62U.02, subdivision 3, for the potential
306.21for harm and unintended consequences for patient populations who experience health
306.22disparities, and the providers who serve them, and identify changes that may be needed
306.23to alleviate harm and unintended consequences. By January 15, 2016, the commissioner
306.24shall submit a report to the chairs and ranking minority members of the senate and house
306.25of representatives committees and divisions with jurisdiction on health and human
306.26services and finance with the result of the assessment of the risk-adjustment methodology
306.27and any recommended changes.
306.28(c) The commissioner shall develop the plan described in paragraph (a), in
306.29consultation with consumer, community and advocacy organizations representing diverse
306.30communities; health plan companies; providers; quality measurement organizations; and
306.31safety net providers that primarily serve communities and patient populations with health
306.32disparities. The commissioner shall use culturally appropriate methods of consultation and
306.33engagement with consumer and advocacy organizations led by and representing diverse
306.34communities by race, ethnicity, language, and sociodemographic factors.

307.1    Sec. 11. DATA ON CHRONIC PAIN THERAPIES.
307.2(a) The commissioner of health shall gather the following data on the provision of
307.3chronic pain treatment procedures by physicians, doctors of osteopathy, and certified
307.4registered nurse anesthetists who perform these procedures:
307.5(1) the types and number of chronic pain management procedures performed within
307.6the last 36 months;
307.7(2) the types of health professionals who perform chronic pain treatment procedures
307.8and the professional licenses they hold; and
307.9(3) the location and type of facility in which the chronic pain treatment procedures
307.10are performed.
307.11(b) The commissioner shall submit a report with the compiled data to the chairs and
307.12ranking minority members of the house and senate committees with jurisdiction over
307.13health and human services finance and policy by January 15, 2015.
307.14(c) The commissioner of health may use the data submitted under Minnesota Statutes,
307.15section 62U.04, subdivision 4, paragraph (a), to carry out the requirements of this section.

307.16    Sec. 12. STUDY AND REPORT ABOUT CLIENT BILLS OF RIGHTS.
307.17The commissioner of health shall consult with Aging Services of Minnesota, Care
307.18Providers of Minnesota, Minnesota Home Care Association, the commissioner of human
307.19services, the Office of the Ombudsman for Long-Term Care, and other stakeholders to
307.20evaluate and determine how to streamline the requirements related to the clients' rights in
307.21Minnesota Statutes, sections 144A.44, 144A.441, and 245D.04, for applicable providers,
307.22while assuring and maintaining the health and safety of clients. The evaluation must
307.23consider the federal client bill of rights requirements for Medicare-certified home care
307.24providers. The evaluation must determine if there are duplications or conflicts of client
307.25rights, evaluate how to reduce the complexity of the requirements related to clients' rights
307.26for providers and consumers, determine which rights must be included in a consolidated
307.27client bill of rights document, and develop options to inform consumers of their rights.
307.28The commissioner shall report to the chairs and ranking minority members of the health
307.29and human services committees of the legislature no later than February 15, 2015, and
307.30include any recommendations for legislative changes.

307.31ARTICLE 24

307.32HEALTH CARE

307.33    Section 1. Minnesota Statutes 2013 Supplement, section 16A.724, subdivision 3,
307.34is amended to read:
308.1    Subd. 3. MinnesotaCare federal receipts. All federal funding received by
308.2Minnesota for implementation and administration of MinnesotaCare as a basic health
308.3program, as authorized in section 1331 of the Affordable Care Act, Public Law 111-148,
308.4as amended by Public Law 111-152, is dedicated to that program and shall be deposited
308.5into the health care access fund is appropriated to the commissioner of human services
308.6to be used only for the MinnesotaCare program under chapter 256L. Federal funding
308.7that is received for implementing and administering MinnesotaCare as a basic health
308.8program and deposited in the fund shall be used only for that program to purchase health
308.9care coverage for enrollees and reduce enrollee premiums and cost-sharing or provide
308.10additional enrollee benefits.

308.11    Sec. 2. Minnesota Statutes 2012, section 256.01, is amended by adding a subdivision
308.12to read:
308.13    Subd. 38. Contract to match recipient third-party liability information. The
308.14commissioner may enter into a contract with a national organization to match recipient
308.15third-party liability information and provide coverage and insurance primacy information
308.16to the department at no charge to providers and the clearinghouses.

308.17    Sec. 3. Minnesota Statutes 2012, section 256.9685, subdivision 1, is amended to read:
308.18    Subdivision 1. Authority. (a) The commissioner shall establish procedures for
308.19determining medical assistance and general assistance medical care payment rates under
308.20a prospective payment system for inpatient hospital services in hospitals that qualify as
308.21vendors of medical assistance. The commissioner shall establish, by rule, procedures for
308.22implementing this section and sections 256.9686, 256.969, and 256.9695. Services must
308.23meet the requirements of section 256B.04, subdivision 15, or 256D.03, subdivision 7,
308.24paragraph (b), to be eligible for payment.
308.25(b) The commissioner may reduce the types of inpatient hospital admissions that
308.26are required to be certified as medically necessary after notice in the State Register and a
308.2730-day comment period.

308.28    Sec. 4. Minnesota Statutes 2012, section 256.9685, subdivision 1a, is amended to read:
308.29    Subd. 1a. Administrative reconsideration. Notwithstanding sections section
308.30 256B.04, subdivision 15, and 256D.03, subdivision 7, the commissioner shall establish
308.31an administrative reconsideration process for appeals of inpatient hospital services
308.32determined to be medically unnecessary. A physician or hospital may request a
308.33reconsideration of the decision that inpatient hospital services are not medically necessary
309.1by submitting a written request for review to the commissioner within 30 days after
309.2receiving notice of the decision. The reconsideration process shall take place prior to the
309.3procedures of subdivision 1b and shall be conducted by physicians that are independent
309.4of the case under reconsideration. A majority decision by the physicians is necessary to
309.5make a determination that the services were not medically necessary.

309.6    Sec. 5. Minnesota Statutes 2012, section 256.9686, subdivision 2, is amended to read:
309.7    Subd. 2. Base year. "Base year" means a hospital's fiscal year or years that
309.8is recognized by the Medicare program or a hospital's fiscal year specified by the
309.9commissioner if a hospital is not required to file information by the Medicare program
309.10from which cost and statistical data are used to establish medical assistance and general
309.11assistance medical care payment rates.

309.12    Sec. 6. Minnesota Statutes 2012, section 256.969, subdivision 1, is amended to read:
309.13    Subdivision 1. Hospital cost index. (a) The hospital cost index shall be the change
309.14in the Consumer Price Index-All Items (United States city average) (CPI-U) forecasted
309.15by Data Resources, Inc. The commissioner shall use the indices as forecasted in the
309.16third quarter of the calendar year prior to the rate year. The hospital cost index may be
309.17used to adjust the base year operating payment rate through the rate year on an annually
309.18compounded basis.
309.19(b) For fiscal years beginning on or after July 1, 1993, the commissioner of human
309.20services shall not provide automatic annual inflation adjustments for hospital payment
309.21rates under medical assistance, nor under general assistance medical care, except that
309.22the inflation adjustments under paragraph (a) for medical assistance, excluding general
309.23assistance medical care, shall apply through calendar year 2001. The index for calendar
309.24year 2000 shall be reduced 2.5 percentage points to recover overprojections of the index
309.25from 1994 to 1996. The commissioner of management and budget shall include as a
309.26budget change request in each biennial detailed expenditure budget submitted to the
309.27legislature under section 16A.11 annual adjustments in hospital payment rates under
309.28medical assistance and general assistance medical care, based upon the hospital cost index.

309.29    Sec. 7. Minnesota Statutes 2012, section 256.969, subdivision 2, is amended to read:
309.30    Subd. 2. Diagnostic categories. The commissioner shall use to the extent possible
309.31existing diagnostic classification systems, including such as the system used by the
309.32Medicare program all patient-refined diagnosis-related groups (APR-DRGs) or other
309.33similar classification programs to determine the relative values of inpatient services
310.1and case mix indices. The commissioner may combine diagnostic classifications into
310.2diagnostic categories and may establish separate categories and numbers of categories
310.3based on program eligibility or hospital peer group. Relative values shall be recalculated
310.4 recalibrated when the base year is changed. Relative value determinations shall include
310.5paid claims for admissions during each hospital's base year. The commissioner may
310.6extend the time period forward to obtain sufficiently valid information to establish relative
310.7values supplement the diagnostic classification systems data with national averages.
310.8Relative value determinations shall not include property cost data, Medicare crossover
310.9data, and data on admissions that are paid a per day transfer rate under subdivision 14. The
310.10computation of the base year cost per admission must include identified outlier cases and
310.11their weighted costs up to the point that they become outlier cases, but must exclude costs
310.12recognized in outlier payments beyond that point. The commissioner may recategorize the
310.13diagnostic classifications and recalculate recalibrate relative values and case mix indices
310.14to reflect actual hospital practices, the specific character of specialty hospitals, or to reduce
310.15variances within the diagnostic categories after notice in the State Register and a 30-day
310.16comment period. The commissioner shall recategorize the diagnostic classifications and
310.17recalculate relative values and case mix indices based on the two-year schedule in effect
310.18prior to January 1, 2013, reflected in subdivision 2b. The first recategorization shall occur
310.19January 1, 2013, and shall occur every two years after. When rates are not rebased under
310.20subdivision 2b, the commissioner may establish relative values and case mix indices based
310.21on charge data and may update the base year to the most recent data available.

310.22    Sec. 8. Minnesota Statutes 2012, section 256.969, subdivision 2b, is amended to read:
310.23    Subd. 2b. Operating Hospital payment rates. In determining operating payment
310.24rates for admissions occurring on or after the rate year beginning January 1, 1991,
310.25and every two years after, or more frequently as determined by the commissioner,
310.26the commissioner shall obtain operating data from an updated base year and establish
310.27operating payment rates per admission for each hospital based on the cost-finding methods
310.28and allowable costs of the Medicare program in effect during the base year. Rates under
310.29the general assistance medical care, medical assistance, and MinnesotaCare programs shall
310.30not be rebased to more current data on January 1, 1997, January 1, 2005, for the first 24
310.31months of the rebased period beginning January 1, 2009 (a) For discharges occurring on
310.32or after November 1, 2014, hospital inpatient services for hospitals located in Minnesota
310.33shall be paid according to the following:
310.34(1) critical access hospitals as defined by Medicare shall be paid using a cost-based
310.35methodology;
311.1(2) long-term hospitals as defined by Medicare shall be paid on a per diem
311.2methodology under subdivision 25;
311.3(3) rehabilitation hospitals or units of hospitals that are recognized as rehabilitation
311.4distinct parts as defined by Medicare shall be paid according to the methodology under
311.5subdivision 12; and
311.6(4) all other hospitals shall be paid on a diagnosis-related group (DRG) methodology.
311.7     (b) For the rebased period beginning January 1, 2011, through October 31, 2014,
311.8rates shall not be rebased, except that a Minnesota long-term hospital shall be rebased
311.9effective January 1, 2011, based on its most recent Medicare cost report ending on or
311.10before September 1, 2008, with the provisions under subdivisions 9 and 23, based on the
311.11rates in effect on December 31, 2010. For subsequent rate setting periods after November
311.121, 2014, in which the base years are updated, a Minnesota long-term hospital's base year
311.13shall remain within the same period as other hospitals. Effective January 1, 2013, and
311.14after, rates shall not be rebased.
311.15(c) Effective for discharges occurring on and after November 1, 2014, payment rates
311.16for hospital inpatient services provided by hospitals located in Minnesota or the local trade
311.17area, except for the hospitals paid under the methodologies described in paragraph (a),
311.18clauses (2) and (3), shall be rebased, incorporating cost and payment methodologies in a
311.19manner similar to Medicare. The base year for the rates effective November 1, 2014, shall
311.20be calendar year 2012. The rebasing under this paragraph shall be budget neutral, ensuring
311.21that the total aggregate payments under the rebased system are equal to the total aggregate
311.22payments that were made for the same number and types of services in the base year.
311.23Separate budget neutrality calculations shall be determined for payments made to critical
311.24access hospitals and payments made to hospitals paid under the DRG system. Only the rate
311.25increases or decreases under subdivision 3a or 3c that applied to the hospitals being rebased
311.26during the entire base period shall be incorporated into the budget neutrality calculation.
311.27(d) For discharges occurring on or after November 1, 2014, through June 30, 2016,
311.28the rebased rates under paragraph (c) shall include adjustments to the projected rates that
311.29result in no greater than a five percent increase or decrease from the base year payments
311.30for any hospital. Any adjustments to the rates made by the commissioner under this
311.31paragraph and paragraph (e) shall maintain budget neutrality as described in paragraph (c).
311.32(e) For discharges occurring on or after November 1, 2014, through June 30, 2016,
311.33the commissioner may make additional adjustments to the rebased rates, and when
311.34evaluating whether additional adjustments should be made, the commissioner shall
311.35consider the impact of the rates on the following:
311.36(1) pediatric services;
312.1(2) behavioral health services;
312.2(3) trauma services as defined by the National Uniform Billing Committee;
312.3(4) transplant services;
312.4(5) obstetric services, newborn services, and behavioral health services provided
312.5by hospitals outside the seven-county metropolitan area;
312.6(6) outlier admissions;
312.7(7) low-volume providers; and
312.8(8) services provided by small rural hospitals that are not critical access hospitals.
312.9(f) Hospital payment rates established under paragraph (c) must incorporate the
312.10following:
312.11    (1) for hospitals paid under the DRG methodology, the base year operating payment
312.12rate per admission is standardized by the case mix index and adjusted by the hospital cost
312.13index, relative values, and disproportionate population adjustment. applicable Medicare
312.14wage index and adjusted by the hospital's disproportionate population adjustment;
312.15    (2) for critical access hospitals, interim per diem payment rates shall be based on the
312.16ratio of cost and charges reported on the base year Medicare cost report or reports and
312.17applied to medical assistance utilization data. Final settlement payments for a state fiscal
312.18year must be determined based on a review of the medical assistance cost report required
312.19under subdivision 4b for the applicable state fiscal year;
312.20    (3) the cost and charge data used to establish operating hospital payment rates shall
312.21 must only reflect inpatient services covered by medical assistance and shall not include
312.22property cost information and costs recognized in outlier payments; and
312.23    (4) in determining hospital payment rates for discharges occurring on or after the
312.24rate year beginning January 1, 2011, through December 31, 2012, the hospital payment
312.25rate per discharge shall be based on the cost-finding methods and allowable costs of the
312.26Medicare program in effect during the base year or years.
312.27(g) The commissioner shall validate the rates effective November 1, 2014, by
312.28applying the rates established under paragraph (c), and any adjustments made to the rates
312.29under paragraph (d) or (e), to hospital claims paid in calendar year 2013 to determine
312.30whether the total aggregate payments for the same number and types of services under the
312.31rebased rates are equal to the total aggregate payments made during calendar year 2013.
312.32(h) Effective for discharges occurring on or after July 1, 2017, and every two
312.33years thereafter, payment rates under this section shall be rebased to reflect only those
312.34changes in hospital costs between the existing base year and the next base year. The
312.35commissioner shall establish the base year for each rebasing period considering the most
312.36recent year for which filed Medicare cost reports are available. The estimated change in
313.1the average payment per hospital discharge resulting from a scheduled rebasing must be
313.2calculated and made available to the legislature by January 15 of each year in which
313.3rebasing is scheduled to occur, and must include by hospital the differential in payment
313.4rates compared to the individual hospital's costs.

313.5    Sec. 9. Minnesota Statutes 2012, section 256.969, is amended by adding a subdivision
313.6to read:
313.7    Subd. 2d. Interim payments. Notwithstanding subdivision 2b, paragraph (c),
313.8for discharges occurring on or after November 1, 2014, through June 30, 2015, the
313.9commissioner may implement an interim payment process to pay hospitals, including
313.10payments based on each hospital's average payments per claim for state fiscal years
313.112011 and 2012. These interim payments may be used to pay hospitals if the rebasing
313.12under subdivision 2b, paragraph (c), is not implemented by November 1, 2014. Claims
313.13paid at interim payment rates shall be reprocessed and paid at the rates established under
313.14subdivision 2b, paragraphs (c) and (d), upon implementation of the rebased rates.

313.15    Sec. 10. Minnesota Statutes 2012, section 256.969, is amended by adding a subdivision
313.16to read:
313.17    Subd. 2e. Report required. (a) The commissioner shall report to the legislature by
313.18March 1, 2015, and by March 1, 2016, on the financial impacts by hospital and policy
313.19ramifications, if any, resulting from payment methodology changes implemented after
313.20October 31, 2014, and before December 15, 2015.
313.21(b) The commissioner shall report, at a minimum, the following information:
313.22(1) case-mix adjusted calculations of net payment impacts for each hospital resulting
313.23from the difference between the payments each hospital would have received under the
313.24payment methodology for discharges before October 31, 2014, and the payments each
313.25hospital has received or is expected to receive for the same number and types of services
313.26under the payment methodology implemented effective November 1, 2014;
313.27(2) any adjustments that the commissioner made and the impacts of those
313.28adjustments for each hospital;
313.29(3) any difference in total aggregate payments resulting from the validation process
313.30under calendar year 2013 claims; and
313.31(4) recommendations for further refinement or improvement of the hospital inpatient
313.32payment system or methodologies.

313.33    Sec. 11. Minnesota Statutes 2012, section 256.969, subdivision 3a, is amended to read:
314.1    Subd. 3a. Payments. (a) Acute care hospital billings under the medical
314.2assistance program must not be submitted until the recipient is discharged. However,
314.3the commissioner shall establish monthly interim payments for inpatient hospitals that
314.4have individual patient lengths of stay over 30 days regardless of diagnostic category.
314.5Except as provided in section 256.9693, medical assistance reimbursement for treatment
314.6of mental illness shall be reimbursed based on diagnostic classifications. Individual
314.7hospital payments established under this section and sections 256.9685, 256.9686, and
314.8256.9695 , in addition to third-party and recipient liability, for discharges occurring during
314.9the rate year shall not exceed, in aggregate, the charges for the medical assistance covered
314.10inpatient services paid for the same period of time to the hospital. This payment limitation
314.11shall be calculated separately for medical assistance and general assistance medical
314.12care services. The limitation on general assistance medical care shall be effective for
314.13admissions occurring on or after July 1, 1991. Services that have rates established under
314.14subdivision 11 or 12, must be limited separately from other services. After consulting with
314.15the affected hospitals, the commissioner may consider related hospitals one entity and may
314.16merge the payment rates while maintaining separate provider numbers. The operating and
314.17property base rates per admission or per day shall be derived from the best Medicare and
314.18claims data available when rates are established. The commissioner shall determine the
314.19best Medicare and claims data, taking into consideration variables of recency of the data,
314.20audit disposition, settlement status, and the ability to set rates in a timely manner. The
314.21commissioner shall notify hospitals of payment rates by December 1 of the year preceding
314.22the rate year 30 days prior to implementation. The rate setting data must reflect the
314.23admissions data used to establish relative values. Base year changes from 1981 to the base
314.24year established for the rate year beginning January 1, 1991, and for subsequent rate years,
314.25shall not be limited to the limits ending June 30, 1987, on the maximum rate of increase
314.26under subdivision 1. The commissioner may adjust base year cost, relative value, and case
314.27mix index data to exclude the costs of services that have been discontinued by the October
314.281 of the year preceding the rate year or that are paid separately from inpatient services.
314.29Inpatient stays that encompass portions of two or more rate years shall have payments
314.30established based on payment rates in effect at the time of admission unless the date of
314.31admission preceded the rate year in effect by six months or more. In this case, operating
314.32payment rates for services rendered during the rate year in effect and established based on
314.33the date of admission shall be adjusted to the rate year in effect by the hospital cost index.
314.34    (b) For fee-for-service admissions occurring on or after July 1, 2002, the total
314.35payment, before third-party liability and spenddown, made to hospitals for inpatient
314.36services is reduced by .5 percent from the current statutory rates.
315.1    (c) In addition to the reduction in paragraph (b), the total payment for fee-for-service
315.2admissions occurring on or after July 1, 2003, made to hospitals for inpatient services before
315.3third-party liability and spenddown, is reduced five percent from the current statutory
315.4rates. Mental health services within diagnosis related groups 424 to 432 or corresponding
315.5APR-DRGs, and facilities defined under subdivision 16 are excluded from this paragraph.
315.6    (d) In addition to the reduction in paragraphs (b) and (c), the total payment for
315.7fee-for-service admissions occurring on or after August 1, 2005, made to hospitals for
315.8inpatient services before third-party liability and spenddown, is reduced 6.0 percent from
315.9the current statutory rates. Mental health services within diagnosis related groups 424
315.10to 432 or corresponding APR-DRGs, and facilities defined under subdivision 16 are
315.11excluded from this paragraph. Notwithstanding section 256.9686, subdivision 7, for
315.12purposes of this paragraph, medical assistance does not include general assistance medical
315.13care. Payments made to managed care plans shall be reduced for services provided on or
315.14after January 1, 2006, to reflect this reduction.
315.15    (e) In addition to the reductions in paragraphs (b), (c), and (d), the total payment for
315.16fee-for-service admissions occurring on or after July 1, 2008, through June 30, 2009, made
315.17to hospitals for inpatient services before third-party liability and spenddown, is reduced
315.183.46 percent from the current statutory rates. Mental health services with diagnosis
315.19related groups 424 to 432 or corresponding APR-DRGs, and facilities defined under
315.20subdivision 16 are excluded from this paragraph. Payments made to managed care plans
315.21shall be reduced for services provided on or after January 1, 2009, through June 30, 2009,
315.22to reflect this reduction.
315.23    (f) In addition to the reductions in paragraphs (b), (c), and (d), the total payment
315.24for fee-for-service admissions occurring on or after July 1, 2009, through June 30, 2011,
315.25made to hospitals for inpatient services before third-party liability and spenddown, is
315.26reduced 1.9 percent from the current statutory rates. Mental health services with diagnosis
315.27related groups 424 to 432 or corresponding APR-DRGs, and facilities defined under
315.28subdivision 16 are excluded from this paragraph. Payments made to managed care plans
315.29shall be reduced for services provided on or after July 1, 2009, through June 30, 2011,
315.30to reflect this reduction.
315.31    (g) In addition to the reductions in paragraphs (b), (c), and (d), the total payment
315.32for fee-for-service admissions occurring on or after July 1, 2011, made to hospitals for
315.33inpatient services before third-party liability and spenddown, is reduced 1.79 percent from
315.34the current statutory rates. Mental health services with diagnosis related groups 424 to 432
315.35 or corresponding APR-DRGs, and facilities defined under subdivision 16 are excluded
316.1from this paragraph. Payments made to managed care plans shall be reduced for services
316.2provided on or after July 1, 2011, to reflect this reduction.
316.3(h) In addition to the reductions in paragraphs (b), (c), (d), (f), and (g), the total
316.4payment for fee-for-service admissions occurring on or after July 1, 2009, made to
316.5hospitals for inpatient services before third-party liability and spenddown, is reduced
316.6one percent from the current statutory rates. Facilities defined under subdivision 16 are
316.7excluded from this paragraph. Payments made to managed care plans shall be reduced for
316.8services provided on or after October 1, 2009, to reflect this reduction.
316.9(i) In addition to the reductions in paragraphs (b), (c), (d), (g), and (h), the total
316.10payment for fee-for-service admissions occurring on or after July 1, 2011, made to
316.11hospitals for inpatient services before third-party liability and spenddown, is reduced
316.121.96 percent from the current statutory rates. Facilities defined under subdivision 16 are
316.13excluded from this paragraph. Payments made to managed care plans shall be reduced for
316.14services provided on or after January 1, 2011, to reflect this reduction.
316.15(j) Effective for discharges on and after November 1, 2014, from hospitals paid
316.16under subdivision 2b, paragraph (a), clauses (1) and (4), the rate adjustments in this
316.17subdivision must be incorporated into the rebased rates established under subdivision 2b,
316.18paragraph (c), and must not be applied to each claim.

316.19    Sec. 12. Minnesota Statutes 2012, section 256.969, subdivision 3b, is amended to read:
316.20    Subd. 3b. Nonpayment for hospital-acquired conditions and for certain
316.21treatments. (a) The commissioner must not make medical assistance payments to a
316.22hospital for any costs of care that result from a condition listed identified in paragraph
316.23(c), if the condition was hospital acquired.
316.24    (b) For purposes of this subdivision, a condition is hospital acquired if it is not
316.25identified by the hospital as present on admission. For purposes of this subdivision,
316.26medical assistance includes general assistance medical care and MinnesotaCare.
316.27(c) The prohibition in paragraph (a) applies to payment for each hospital-acquired
316.28condition listed in this paragraph that is identified in this paragraph that is represented
316.29by an ICD-9-CM or ICD-10-CM diagnosis code and is designated as a complicating
316.30condition or a major complicating condition:
316.31(1) foreign object retained after surgery (ICD-9-CM codes 998.4 or 998.7);
316.32(2) air embolism (ICD-9-CM code 999.1);
316.33(3) blood incompatibility (ICD-9-CM code 999.6);
316.34(4) pressure ulcers stage III or IV (ICD-9-CM codes 707.23 or 707.24);
317.1(5) falls and trauma, including fracture, dislocation, intracranial injury, crushing
317.2injury, burn, and electric shock (ICD-9-CM codes with these ranges on the complicating
317.3condition and major complicating condition list: 800-829; 830-839; 850-854; 925-929;
317.4940-949; and 991-994);
317.5(6) catheter-associated urinary tract infection (ICD-9-CM code 996.64);
317.6(7) vascular catheter-associated infection (ICD-9-CM code 999.31);
317.7(8) manifestations of poor glycemic control (ICD-9-CM codes 249.10; 249.11;
317.8249.20; 249.21; 250.10; 250.11; 250.12; 250.13; 250.20; 250.21; 250.22; 250.23; and
317.9251.0);
317.10(9) surgical site infection (ICD-9-CM codes 996.67 or 998.59) following certain
317.11orthopedic procedures (procedure codes 81.01; 81.02; 81.03; 81.04; 81.05; 81.06; 81.07;
317.1281.08; 81.23; 81.24; 81.31; 81.32; 81.33; 81.34; 81.35; 81.36; 81.37; 81.38; 81.83; and
317.1381.85);
317.14(10) surgical site infection (ICD-9-CM code 998.59) following bariatric surgery
317.15(procedure codes 44.38; 44.39; or 44.95) for a principal diagnosis of morbid obesity
317.16(ICD-9-CM code 278.01);
317.17(11) surgical site infection, mediastinitis (ICD-9-CM code 519.2) following coronary
317.18artery bypass graft (procedure codes 36.10 to 36.19); and
317.19(12) deep vein thrombosis (ICD-9-CM codes 453.40 to 453.42) or pulmonary
317.20embolism (ICD-9-CM codes 415.11 or 415.19) following total knee replacement
317.21(procedure code 81.54) or hip replacement (procedure codes 00.85 to 00.87 or 81.51 to
317.2281.52). The list of conditions shall be the hospital-acquired conditions (HAC) list defined
317.23by the Centers for Medicare and Medicaid Services on an annual basis.
317.24(d) The prohibition in paragraph (a) applies to any additional payments that result
317.25from a hospital-acquired condition listed identified in paragraph (c), including, but not
317.26limited to, additional treatment or procedures, readmission to the facility after discharge,
317.27increased length of stay, change to a higher diagnostic category, or transfer to another
317.28hospital. In the event of a transfer to another hospital, the hospital where the condition
317.29listed identified under paragraph (c) was acquired is responsible for any costs incurred at
317.30the hospital to which the patient is transferred.
317.31(e) A hospital shall not bill a recipient of services for any payment disallowed under
317.32this subdivision.

317.33    Sec. 13. Minnesota Statutes 2012, section 256.969, subdivision 3c, is amended to read:
317.34    Subd. 3c. Rateable reduction and readmissions reduction. (a) The total payment
317.35for fee for service admissions occurring on or after September 1, 2011, through June 30,
318.12015 to October 31, 2014, made to hospitals for inpatient services before third-party
318.2liability and spenddown, is reduced ten percent from the current statutory rates. Facilities
318.3defined under subdivision 16, long-term hospitals as determined under the Medicare
318.4program, children's hospitals whose inpatients are predominantly under 18 years of age,
318.5and payments under managed care are excluded from this paragraph.
318.6(b) Effective for admissions occurring during calendar year 2010 and each year
318.7after, the commissioner shall calculate a regional readmission rate for admissions to all
318.8hospitals occurring within 30 days of a previous discharge using data from the Reducing
318.9Avoidable Readmissions Effectively (RARE) campaign. The commissioner may adjust
318.10the readmission rate taking into account factors such as the medical relationship,
318.11complicating conditions, and sequencing of treatment between the initial admission and
318.12subsequent readmissions.
318.13(c) Effective for payments to all hospitals on or after July 1, 2013, through June 30,
318.142015 October 31, 2014, the reduction in paragraph (a) is reduced one percentage point for
318.15every percentage point reduction in the overall readmissions rate between the two previous
318.16calendar years to a maximum of five percent.
318.17(d) The exclusion from the rate reduction in paragraph (a) shall apply to a hospital
318.18located in Hennepin County with a licensed capacity of 1,700 beds as of September 1,
318.192011, for admissions of children under 18 years of age occurring on or after September 1,
318.202011, through August 31, 2013, but shall not apply to payments for admissions occurring
318.21on or after September 1, 2013, through October 31, 2014.
318.22(e) Effective for discharges on or after November 1, 2014, from hospitals paid under
318.23subdivision 2b, paragraph (a), clauses (1) and (4), the rate adjustments in this subdivision
318.24must be incorporated into the rebased rates established under subdivision 2b, paragraph
318.25(c), and must not be applied to each claim.
318.26EFFECTIVE DATE.Paragraph (d) is effective retroactively from September 1,
318.272011, and applies to admissions on or after that date.

318.28    Sec. 14. Minnesota Statutes 2012, section 256.969, is amended by adding a subdivision
318.29to read:
318.30    Subd. 4b. Medical assistance cost reports for services. (a) A hospital that meets
318.31one of the following criteria must annually submit to the commissioner medical assistance
318.32cost reports within six months of the end of the hospital's fiscal year:
318.33(1) a hospital designated as a critical access hospital that receives medical assistance
318.34payments; or
319.1(2) a Minnesota hospital or out-of-state hospital located within a Minnesota local
319.2trade area that receives a disproportionate population adjustment under subdivision 9.
319.3For purposes of this subdivision, local trade area has the meaning given in
319.4subdivision 17.
319.5(b) The commissioner shall suspend payments to any hospital that fails to submit a
319.6report required under this subdivision. Payments must remain suspended until the report
319.7has been filed with and accepted by the commissioner.

319.8    Sec. 15. Minnesota Statutes 2012, section 256.969, subdivision 6a, is amended to read:
319.9    Subd. 6a. Special considerations. In determining the payment rates, the
319.10commissioner shall consider whether the circumstances in subdivisions 7 8 to 14 exist.

319.11    Sec. 16. Minnesota Statutes 2012, section 256.969, subdivision 8, is amended to read:
319.12    Subd. 8. Unusual length of stay experience. (a) The commissioner shall establish
319.13day outlier thresholds for each diagnostic category established under subdivision 2 at
319.14two standard deviations beyond the mean length of stay. Payment for the days beyond
319.15the outlier threshold shall be in addition to the operating and property payment rates per
319.16admission established under subdivisions 2, and 2b, and 2c. Payment for outliers shall
319.17be at 70 percent of the allowable operating cost, after adjustment by the case mix index,
319.18hospital cost index, relative values and the disproportionate population adjustment. The
319.19outlier threshold for neonatal and burn diagnostic categories shall be established at one
319.20standard deviation beyond the mean length of stay, and payment shall be at 90 percent
319.21of allowable operating cost calculated in the same manner as other outliers. A hospital
319.22may choose an alternative to the 70 percent outlier payment that is at a minimum of 60
319.23percent and a maximum of 80 percent if the commissioner is notified in writing of the
319.24request by October 1 of the year preceding the rate year. The chosen percentage applies
319.25to all diagnostic categories except burns and neonates. The percentage of allowable cost
319.26that is unrecognized by the outlier payment shall be added back to the base year operating
319.27payment rate per admission.
319.28(b) Effective for transfers occurring on and after November 1, 2014, the commissioner
319.29shall establish payment rates for acute transfers that are based on Medicare methodologies.

319.30    Sec. 17. Minnesota Statutes 2012, section 256.969, subdivision 8a, is amended to read:
319.31    Subd. 8a. Short length of stay Neonatal admissions. Except as provided in
319.32subdivision 13, for admissions occurring on or after July 1, 1995, payment shall be
319.33determined as follows and shall be included in the base year for rate setting purposes:
320.1(1) for an admission that is categorized to a neonatal diagnostic related group
320.2in which the length of stay is less than 50 percent of the average length of stay for the
320.3category in the base year and the patient at admission is equal to or greater than the age of
320.4one, payments shall be established according to the methods of subdivision 14;
320.5(2) For an admission that is categorized to a diagnostic category that includes
320.6neonatal respiratory distress syndrome, the hospital must have a level II or level III
320.7nursery and the patient must receive treatment in that unit or payment will be made
320.8without regard to the syndrome condition.
320.9EFFECTIVE DATE.This section is effective November 1, 2014.

320.10    Sec. 18. Minnesota Statutes 2012, section 256.969, is amended by adding a subdivision
320.11to read:
320.12    Subd. 8c. Hospital residents. For discharges occurring on or after November 1,
320.132014, payments for hospital residents shall be made as follows:
320.14(1) payments for the first 180 days of inpatient care shall be the APR-DRG system
320.15plus any outliers; and
320.16(2) payment for all medically necessary patient care subsequent to the first 180 days
320.17shall be reimbursed at a rate computed by multiplying the statewide average cost-to-charge
320.18ratio by the usual and customary charges.

320.19    Sec. 19. Minnesota Statutes 2012, section 256.969, subdivision 9, is amended to read:
320.20    Subd. 9. Disproportionate numbers of low-income patients served. (a) For
320.21admissions occurring on or after October 1, 1992, through December 31, 1992, the
320.22medical assistance disproportionate population adjustment shall comply with federal law
320.23and shall be paid to a hospital, excluding regional treatment centers and facilities of the
320.24federal Indian Health Service, with a medical assistance inpatient utilization rate in excess
320.25of the arithmetic mean. The adjustment must be determined as follows:
320.26    (1) for a hospital with a medical assistance inpatient utilization rate above the
320.27arithmetic mean for all hospitals excluding regional treatment centers and facilities of the
320.28federal Indian Health Service but less than or equal to one standard deviation above the
320.29mean, the adjustment must be determined by multiplying the total of the operating and
320.30property payment rates by the difference between the hospital's actual medical assistance
320.31inpatient utilization rate and the arithmetic mean for all hospitals excluding regional
320.32treatment centers and facilities of the federal Indian Health Service; and
320.33    (2) for a hospital with a medical assistance inpatient utilization rate above one
320.34standard deviation above the mean, the adjustment must be determined by multiplying
321.1the adjustment that would be determined under clause (1) for that hospital by 1.1. If
321.2federal matching funds are not available for all adjustments under this subdivision, the
321.3commissioner shall reduce payments on a pro rata basis so that all adjustments qualify for
321.4federal match. The commissioner may establish a separate disproportionate population
321.5operating payment rate adjustment under the general assistance medical care program.
321.6For purposes of this subdivision medical assistance does not include general assistance
321.7medical care. The commissioner shall report annually on the number of hospitals likely to
321.8receive the adjustment authorized by this paragraph. The commissioner shall specifically
321.9report on the adjustments received by public hospitals and public hospital corporations
321.10located in cities of the first class.
321.11    (b) For admissions occurring on or after July 1, 1993, the medical assistance
321.12disproportionate population adjustment shall comply with federal law and shall be paid to
321.13a hospital, excluding regional treatment centers and facilities of the federal Indian Health
321.14Service, with a medical assistance inpatient utilization rate in excess of the arithmetic
321.15mean. The adjustment must be determined as follows:
321.16    (1) for a hospital with a medical assistance inpatient utilization rate above the
321.17arithmetic mean for all hospitals excluding regional treatment centers and facilities of the
321.18federal Indian Health Service but less than or equal to one standard deviation above the
321.19mean, the adjustment must be determined by multiplying the total of the operating and
321.20property payment rates by the difference between the hospital's actual medical assistance
321.21inpatient utilization rate and the arithmetic mean for all hospitals excluding regional
321.22treatment centers and facilities of the federal Indian Health Service; and
321.23    (2) for a hospital with a medical assistance inpatient utilization rate above one
321.24standard deviation above the mean, the adjustment must be determined by multiplying
321.25the adjustment that would be determined under clause (1) for that hospital by 1.1. The
321.26commissioner may establish a separate disproportionate population operating payment
321.27rate adjustment under the general assistance medical care program. For purposes of
321.28this subdivision, medical assistance does not include general assistance medical care
321.29 for critical access hospitals. The commissioner shall report annually on the number of
321.30hospitals likely to receive the adjustment authorized by this paragraph. The commissioner
321.31shall specifically report on the adjustments received by public hospitals and public hospital
321.32corporations located in cities of the first class;.
321.33    (3) for a hospital that had medical assistance fee-for-service payment volume during
321.34calendar year 1991 in excess of 13 percent of total medical assistance fee-for-service
321.35payment volume, a medical assistance disproportionate population adjustment shall be
321.36paid in addition to any other disproportionate payment due under this subdivision as
322.1follows: $1,515,000 due on the 15th of each month after noon, beginning July 15, 1995.
322.2For a hospital that had medical assistance fee-for-service payment volume during calendar
322.3year 1991 in excess of eight percent of total medical assistance fee-for-service payment
322.4volume and was the primary hospital affiliated with the University of Minnesota, a
322.5medical assistance disproportionate population adjustment shall be paid in addition to any
322.6other disproportionate payment due under this subdivision as follows: $505,000 due on
322.7the 15th of each month after noon, beginning July 15, 1995; and
322.8    (4) effective August 1, 2005, the payments in paragraph (b), clause (3), shall be
322.9reduced to zero.
322.10    (c) The commissioner shall adjust rates paid to a health maintenance organization
322.11under contract with the commissioner to reflect rate increases provided in paragraph (b),
322.12clauses (1) and (2), on a nondiscounted hospital-specific basis but shall not adjust those
322.13rates to reflect payments provided in clause (3).
322.14    (d) If federal matching funds are not available for all adjustments under paragraph
322.15(b), the commissioner shall reduce payments under paragraph (b), clauses (1) and (2), on a
322.16pro rata basis so that all adjustments under paragraph (b) qualify for federal match.
322.17    (e) For purposes of this subdivision, medical assistance does not include general
322.18assistance medical care.
322.19    (f) For hospital services occurring on or after July 1, 2005, to June 30, 2007:
322.20    (1) general assistance medical care expenditures for fee-for-service inpatient and
322.21outpatient hospital payments made by the department shall be considered Medicaid
322.22disproportionate share hospital payments, except as limited below:
322.23     (i) only the portion of Minnesota's disproportionate share hospital allotment under
322.24section 1923(f) of the Social Security Act that is not spent on the disproportionate
322.25population adjustments in paragraph (b), clauses (1) and (2), may be used for general
322.26assistance medical care expenditures;
322.27     (ii) only those general assistance medical care expenditures made to hospitals that
322.28qualify for disproportionate share payments under section 1923 of the Social Security Act
322.29and the Medicaid state plan may be considered disproportionate share hospital payments;
322.30     (iii) only those general assistance medical care expenditures made to an individual
322.31hospital that would not cause the hospital to exceed its individual hospital limits under
322.32section 1923 of the Social Security Act may be considered; and
322.33     (iv) general assistance medical care expenditures may be considered only to the
322.34extent of Minnesota's aggregate allotment under section 1923 of the Social Security Act.
322.35All hospitals and prepaid health plans participating in general assistance medical care
322.36must provide any necessary expenditure, cost, and revenue information required by the
323.1commissioner as necessary for purposes of obtaining federal Medicaid matching funds for
323.2general assistance medical care expenditures; and
323.3    (2) (c) Certified public expenditures made by Hennepin County Medical Center shall
323.4be considered Medicaid disproportionate share hospital payments. Hennepin County
323.5and Hennepin County Medical Center shall report by June 15, 2007, on payments made
323.6beginning July 1, 2005, or another date specified by the commissioner, that may qualify
323.7for reimbursement under federal law. Based on these reports, the commissioner shall
323.8apply for federal matching funds.
323.9    (g) (d) Upon federal approval of the related state plan amendment, paragraph (f) (c)
323.10 is effective retroactively from July 1, 2005, or the earliest effective date approved by the
323.11Centers for Medicare and Medicaid Services.

323.12    Sec. 20. Minnesota Statutes 2012, section 256.969, subdivision 10, is amended to read:
323.13    Subd. 10. Separate billing by certified registered nurse anesthetists. Hospitals
323.14may must exclude certified registered nurse anesthetist costs from the operating payment
323.15rate as allowed by section 256B.0625, subdivision 11. To be eligible, a hospital must
323.16notify the commissioner in writing by October 1 of even-numbered years to exclude
323.17certified registered nurse anesthetist costs. The hospital must agree that all hospital
323.18claims for the cost and charges of certified registered nurse anesthetist services will not
323.19be included as part of the rates for inpatient services provided during the rate year. In
323.20this case, the operating payment rate shall be adjusted to exclude the cost of certified
323.21registered nurse anesthetist services.
323.22For admissions occurring on or after July 1, 1991, and until the expiration date of
323.23section 256.9695, subdivision 3, services of certified registered nurse anesthetists provided
323.24on an inpatient basis may be paid as allowed by section 256B.0625, subdivision 11, when
323.25the hospital's base year did not include the cost of these services. To be eligible, a hospital
323.26must notify the commissioner in writing by July 1, 1991, of the request and must comply
323.27with all other requirements of this subdivision.

323.28    Sec. 21. Minnesota Statutes 2012, section 256.969, subdivision 12, is amended to read:
323.29    Subd. 12. Rehabilitation hospitals and distinct parts. (a) Units of hospitals that
323.30are recognized as rehabilitation distinct parts by the Medicare program shall have separate
323.31provider numbers under the medical assistance program for rate establishment and billing
323.32purposes only. These units shall also have operating and property payment rates and the
323.33disproportionate population adjustment, if allowed by federal law, established separately
323.34from other inpatient hospital services.
324.1(b) The commissioner may shall establish separate relative values under subdivision
324.22 for rehabilitation hospitals and distinct parts as defined by the Medicare program.
324.3Effective for discharges occurring on and after November 1, 2014, the commissioner, to
324.4the extent possible, shall replicate the existing payment rate methodology under the new
324.5diagnostic classification system. The result must be budget neutral, ensuring that the total
324.6aggregate payments under the new system are equal to the total aggregate payments made
324.7for the same number and types of services in the base year, calendar year 2012.
324.8(c) For individual hospitals that did not have separate medical assistance
324.9rehabilitation provider numbers or rehabilitation distinct parts in the base year, hospitals
324.10shall provide the information needed to separate rehabilitation distinct part cost and claims
324.11data from other inpatient service data.

324.12    Sec. 22. Minnesota Statutes 2012, section 256.969, subdivision 14, is amended to read:
324.13    Subd. 14. Transfers. Except as provided in subdivisions 11 and 13, (a) Operating
324.14and property payment rates for admissions that result in transfers and transfers shall be
324.15established on a per day payment system. The per day payment rate shall be the sum of
324.16the adjusted operating and property payment rates determined under this subdivision and
324.17subdivisions 2, 2b, 2c, 3a, 4a, 5a, and 7 8 to 12, divided by the arithmetic mean length
324.18of stay for the diagnostic category. Each admission that results in a transfer and each
324.19transfer is considered a separate admission to each hospital, and the total of the admission
324.20and transfer payments to each hospital must not exceed the total per admission payment
324.21that would otherwise be made to each hospital under this subdivision and subdivisions
324.222, 2b, 2c, 3a, 4a, 5a, and 7 to 13 8 to 12.
324.23(b) Effective for transfers occurring on and after November 1, 2014, the commissioner
324.24shall establish payment rates for acute transfers that are based on Medicare methodologies.

324.25    Sec. 23. Minnesota Statutes 2012, section 256.969, subdivision 17, is amended to read:
324.26    Subd. 17. Out-of-state hospitals in local trade areas. Out-of-state hospitals that
324.27are located within a Minnesota local trade area and that have more than 20 admissions in
324.28the base year or years shall have rates established using the same procedures and methods
324.29that apply to Minnesota hospitals. For this subdivision and subdivision 18, local trade area
324.30means a county contiguous to Minnesota and located in a metropolitan statistical area as
324.31determined by Medicare for October 1 prior to the most current rebased rate year. Hospitals
324.32that are not required by law to file information in a format necessary to establish rates shall
324.33have rates established based on the commissioner's estimates of the information. Relative
324.34values of the diagnostic categories shall not be redetermined under this subdivision until
325.1required by rule statute. Hospitals affected by this subdivision shall then be included in
325.2determining relative values. However, hospitals that have rates established based upon
325.3the commissioner's estimates of information shall not be included in determining relative
325.4values. This subdivision is effective for hospital fiscal years beginning on or after July
325.51, 1988. A hospital shall provide the information necessary to establish rates under this
325.6subdivision at least 90 days before the start of the hospital's fiscal year.

325.7    Sec. 24. Minnesota Statutes 2012, section 256.969, subdivision 18, is amended to read:
325.8    Subd. 18. Out-of-state hospitals outside local trade areas. Hospitals that are
325.9not located within Minnesota or a Minnesota local trade area shall have operating and
325.10property inpatient hospital rates established at the average of statewide and local trade area
325.11rates or, at the commissioner's discretion, at an amount negotiated by the commissioner.
325.12Relative values shall not include data from hospitals that have rates established under this
325.13subdivision. Payments, including third-party and recipient liability, established under this
325.14subdivision may not exceed the charges on a claim specific basis for inpatient services that
325.15are covered by medical assistance.

325.16    Sec. 25. Minnesota Statutes 2012, section 256.969, subdivision 25, is amended to read:
325.17    Subd. 25. Long-term hospital rates. (a) Long-term hospitals shall be paid on a
325.18per diem basis.
325.19(b) For admissions occurring on or after April 1, 1995, a long-term hospital as
325.20designated by Medicare that does not have admissions in the base year shall have
325.21inpatient rates established at the average of other hospitals with the same designation. For
325.22subsequent rate-setting periods in which base years are updated, the hospital's base year
325.23shall be the first Medicare cost report filed with the long-term hospital designation and
325.24shall remain in effect until it falls within the same period as other hospitals.

325.25    Sec. 26. Minnesota Statutes 2012, section 256.969, subdivision 30, is amended to read:
325.26    Subd. 30. Payment rates for births. (a) For admissions occurring on or after
325.27October 1, 2009 November 1, 2014, the total operating and property payment rate,
325.28excluding disproportionate population adjustment, for the following diagnosis-related
325.29groups, as they fall within the diagnostic APR-DRG categories: (1) 371 cesarean section
325.30without complicating diagnosis 5601, 5602, 5603, 5604 vaginal delivery; and (2) 372
325.31vaginal delivery with complicating diagnosis; and (3) 373 vaginal delivery without
325.32complicating diagnosis 5401, 5402, 5403, 5404 cesarean section, shall be no greater
325.33than $3,528.
326.1(b) The rates described in this subdivision do not include newborn care.
326.2(c) Payments to managed care and county-based purchasing plans under section
326.3256B.69 , 256B.692, or 256L.12 shall be reduced for services provided on or after October
326.41, 2009, to reflect the adjustments in paragraph (a).
326.5(d) Prior authorization shall not be required before reimbursement is paid for a
326.6cesarean section delivery.

326.7    Sec. 27. Minnesota Statutes 2012, section 256B.04, is amended by adding a
326.8subdivision to read:
326.9    Subd. 24. Medicaid waiver requests and state plan amendments. Prior to
326.10submitting any Medicaid waiver request or Medicaid state plan amendment to the federal
326.11government for approval, the commissioner shall publish the text of the waiver request or
326.12state plan amendment, and a summary of and explanation of the need for the request, on
326.13the agency's Web site and provide a 30-day public comment period. The commissioner
326.14shall notify the public of the availability of this information through the agency's electronic
326.15subscription service. The commissioner shall consider public comments when preparing
326.16the final waiver request or state plan amendment that is to be submitted to the federal
326.17government for approval. The commissioner shall also publish on the agency's Web site
326.18notice of any federal decision related to the state request for approval, within 30 days of
326.19the decision. This notice must describe any modifications to the state request that have
326.20been agreed to by the commissioner as a condition of receiving federal approval.

326.21    Sec. 28. Minnesota Statutes 2013 Supplement, section 256B.0625, subdivision 17,
326.22is amended to read:
326.23    Subd. 17. Transportation costs. (a) "Nonemergency medical transportation
326.24service" means motor vehicle transportation provided by a public or private person
326.25that serves Minnesota health care program beneficiaries who do not require emergency
326.26ambulance service, as defined in section 144E.001, subdivision 3, to obtain covered
326.27medical services. Nonemergency medical transportation service includes, but is not
326.28limited to, special transportation service, defined in section 174.29, subdivision 1.
326.29(a) (b) Medical assistance covers medical transportation costs incurred solely for
326.30obtaining emergency medical care or transportation costs incurred by eligible persons in
326.31obtaining emergency or nonemergency medical care when paid directly to an ambulance
326.32company, common carrier, or other recognized providers of transportation services.
326.33Medical transportation must be provided by:
327.1(1) an ambulance nonemergency medical transportation providers who meet the
327.2requirements of this subdivision;
327.3(2) ambulances, as defined in section 144E.001, subdivision 2;
327.4(2) special transportation; or
327.5(3) common carrier including, but not limited to, bus, taxicab, other commercial
327.6carrier, or private automobile taxicabs and public transit, as defined in section 174.22,
327.7subdivision 7; or
327.8(4) not-for-hire vehicles, including volunteer drivers.
327.9(b) (c) Medical assistance covers special transportation, as defined in Minnesota
327.10Rules, part 9505.0315, subpart 1, item F, if the recipient has a physical or mental
327.11impairment that would prohibit the recipient from safely accessing and using a bus,
327.12taxi, other commercial transportation, or private automobile. nonemergency medical
327.13transportation provided by nonemergency medical transportation providers enrolled in
327.14the Minnesota health care programs. All nonemergency medical transportation providers
327.15must comply with the operating standards for special transportation service as defined in
327.16sections 174.29 to 174.30 and Minnesota Rules, chapter 8840, and in consultation with
327.17the Minnesota Department of Transportation. All nonemergency medical transportation
327.18providers shall bill for nonemergency medical transportation services in accordance with
327.19Minnesota health care programs criteria. Publicly operated transit systems, volunteers,
327.20and not-for-hire vehicles are exempt from the requirements outlined in this paragraph.
327.21(d) The administrative agency of nonemergency medical transportation must:
327.22(1) adhere to the policies defined by the commissioner in consultation with the
327.23Nonemergency Medical Transportation Advisory Committee;
327.24(2) pay nonemergency medical transportation providers for services provided to
327.25Minnesota health care programs beneficiaries to obtain covered medical services;
327.26(3) provide data monthly to the commissioner on appeals, complaints, no-shows,
327.27canceled trips, and number of trips by mode; and
327.28(4) by July 1, 2016, in accordance with subdivision 18e, utilize a Web-based single
327.29administrative structure assessment tool that meets the technical requirements established
327.30by the commissioner, reconciles trip information with claims being submitted by
327.31providers, and ensures prompt payment for nonemergency medical transportation services.
327.32    (e) Until the commissioner implements the single administrative structure and
327.33delivery system under subdivision 18e, clients shall obtain their level-of-service certificate
327.34from the commissioner or an entity approved by the commissioner that does not dispatch
327.35rides for clients using modes under paragraph (h), clauses (4), (5), (6), and (7).
328.1    (f) The commissioner may use an order by the recipient's attending physician
328.2 or a medical or mental health professional to certify that the recipient requires
328.3special transportation services nonemergency medical transportation services. Special
328.4 Nonemergency medical transportation providers shall perform driver-assisted services for
328.5eligible individuals, when appropriate. Driver-assisted service includes passenger pickup
328.6at and return to the individual's residence or place of business, assistance with admittance
328.7of the individual to the medical facility, and assistance in passenger securement or in
328.8securing of wheelchairs or stretchers in the vehicle. Special Nonemergency medical
328.9transportation providers must obtain written documentation from the health care service
328.10provider who is serving the recipient being transported, identifying the time that the
328.11recipient arrived. Special have trip logs, which include pickup and drop-off times, signed
328.12by the medical provider or client attesting mileage traveled to obtain covered medical
328.13services, whichever is deemed most appropriate. Nonemergency medical transportation
328.14providers may not bill for separate base rates for the continuation of a trip beyond the
328.15original destination. Special Nonemergency medical transportation providers must take
328.16recipients clients to the health care provider, using the most direct route, and must not
328.17exceed 30 miles for a trip to a primary care provider or 60 miles for a trip to a specialty
328.18care provider, unless the recipient client receives authorization from the local agency. The
328.19minimum medical assistance reimbursement rates for special transportation services are:
328.20(1)(i) $17 for the base rate and $1.35 per mile for special transportation services to
328.21eligible persons who need a wheelchair-accessible van;
328.22(ii) $11.50 for the base rate and $1.30 per mile for special transportation services to
328.23eligible persons who do not need a wheelchair-accessible van; and
328.24(iii) $60 for the base rate and $2.40 per mile, and an attendant rate of $9 per trip,
328.25for special transportation services to eligible persons who need a stretcher-accessible
328.26vehicle; and
328.27(2) clients requesting client mileage reimbursement must sign the trip log attesting
328.28mileage traveled to obtain covered medical services.
328.29(g) The covered modes of nonemergency medical transportation include
328.30transportation provided directly by clients or family members of clients with their own
328.31transportation, volunteers using their own vehicles, taxicabs, and public transit, or
328.32provided to a client who needs a stretcher-accessible vehicle, a lift/ramp equipped vehicle,
328.33or a vehicle that is not stretcher-accessible or lift/ramp equipped designed to transport ten
328.34or fewer persons. Upon implementation of a new rate structure, a new covered mode of
328.35nonemergency medical transportation shall include transportation provided to a client who
328.36needs a protected vehicle that is not an ambulance or police car and has safety locks, a
329.1video recorder, and a transparent thermoplastic partition between the passenger and the
329.2vehicle driver.
329.3(h) The administrative agency shall use the level of service process established by the
329.4commissioner in consultation with the Nonemergency Medical Transportation Advisory
329.5Committee to determine the client's most appropriate mode of transportation. If public
329.6transit or a certified transportation provider is not available to provide the appropriate
329.7service mode for the client, the client may receive a onetime service upgrade. The new
329.8modes of transportation, which may not be implemented without a new rate structure, are:
329.9(1) client reimbursement, which includes client mileage reimbursement provided
329.10to clients who have their own transportation or family who provides transportation to
329.11the client;
329.12(2) volunteer transport, which includes transportation by volunteers using their
329.13own vehicle;
329.14(3) unassisted transport, which includes transportation provided to a client by a
329.15taxicab or public transit. If a taxicab or publicly operated transit system is not available,
329.16the client can receive transportation from another nonemergency medical transportation
329.17provider;
329.18(4) assisted transport, which includes transport provided to clients who require
329.19assistance by a nonemergency medical transportation provider;
329.20(5) lift-equipped/ramp transport, which includes transport provided to a client who
329.21is dependent on a device and requires a nonemergency medical transportation provider
329.22with a vehicle containing a lift or ramp;
329.23(6) protected transport, which includes transport to a client who has received a
329.24prescreening that has deemed other forms of transportation inappropriate and who requires
329.25a provider certified as a protected transport provider; and
329.26(7) stretcher transport, which includes transport for a client in a prone or supine
329.27position and requires a nonemergency medical transportation provider with a vehicle that
329.28can transport a client in a prone or supine position.
329.29(i) In accordance with subdivision 18e, by July 1, 2016, the local agency shall be
329.30the single administrative agency and shall administer and reimburse for modes defined in
329.31paragraph (h) according to a new rate structure, once this is adopted.
329.32(j) The commissioner shall:
329.33(1) in consultation with the Nonemergency Medical Transportation Advisory
329.34Committee, verify that the mode and use of nonemergency medical transportation is
329.35appropriate;
329.36(2) verify that the client is going to an approved medical appointment; and
330.1(3) investigate all complaints and appeals.
330.2(k) The administrative agency shall pay for the services provided in this subdivision
330.3and seek reimbursement from the commissioner, if appropriate. As vendors of medical
330.4care, local agencies are subject to the provisions in section 256B.041, the sanctions and
330.5monetary recovery actions in section 256B.064, and Minnesota Rules parts 9505.2160
330.6to 9505.2245.
330.7(l) The base rates for special transportation services in areas defined under RUCA
330.8to be super rural shall be equal to the reimbursement rate established in paragraph (f),
330.9clause (1), plus 11.3 percent;, and
330.10(3) for special transportation services in areas defined under RUCA to be rural
330.11or super rural areas:
330.12(i) for a trip equal to 17 miles or less, mileage reimbursement shall be equal to 125
330.13percent of the respective mileage rate in paragraph (f), clause (1); and
330.14(ii) for a trip between 18 and 50 miles, mileage reimbursement shall be equal to
330.15112.5 percent of the respective mileage rate in paragraph (f), clause (1).
330.16(c) (m) For purposes of reimbursement rates for special transportation services under
330.17paragraph (b), the zip code of the recipient's place of residence shall determine whether
330.18the urban, rural, or super rural reimbursement rate applies.
330.19(d) (n) For purposes of this subdivision, "rural urban commuting area" or "RUCA"
330.20means a census-tract based classification system under which a geographical area is
330.21determined to be urban, rural, or super rural.
330.22(e) (o) Effective for services provided on or after September 1, 2011, nonemergency
330.23transportation rates, including special transportation, taxi, and other commercial carriers,
330.24are reduced 4.5 percent. Payments made to managed care plans and county-based
330.25purchasing plans must be reduced for services provided on or after January 1, 2012,
330.26to reflect this reduction.

330.27    Sec. 29. Minnesota Statutes 2012, section 256B.0625, subdivision 18b, is amended to
330.28read:
330.29    Subd. 18b. Broker dispatching prohibition. Except for establishing level of
330.30service process, the commissioner shall not use a broker or coordinator for any purpose
330.31related to nonemergency medical transportation services under subdivision 18.

330.32    Sec. 30. Minnesota Statutes 2012, section 256B.0625, subdivision 18c, is amended to
330.33read:
331.1    Subd. 18c. Nonemergency Medical Transportation Advisory Committee.
331.2(a) The Nonemergency Medical Transportation Advisory Committee shall advise the
331.3commissioner on the administration of nonemergency medical transportation covered
331.4under medical assistance. The advisory committee shall meet at least quarterly the first
331.5year following January 1, 2015, and at least biannually thereafter and may meet more
331.6frequently as required by the commissioner. The advisory committee shall annually
331.7elect a chair from among its members, who shall work with the commissioner or the
331.8commissioner's designee to establish the agenda for each meeting. The commissioner, or
331.9the commissioner's designee, shall attend all advisory committee meetings.
331.10(b) The Nonemergency Medical Transportation Advisory Committee shall advise
331.11and make recommendations to the commissioner on:
331.12(1) the development of, and periodic updates to, a the nonemergency medical
331.13transportation policy manual for nonemergency medical transportation services;
331.14(2) policies and a funding source for reimbursing no-load miles;
331.15(3) policies to prevent waste, fraud, and abuse, and to improve the efficiency of the
331.16nonemergency medical transportation system;
331.17(4) other issues identified in the 2011 evaluation report by the Office of the
331.18Legislative Auditor on medical nonemergency transportation; and
331.19(5) (2) other aspects of the nonemergency medical transportation system, as
331.20requested by the commissioner.; and
331.21(3) other aspects of the nonemergency medical transportation system, as requested by:
331.22(i) a committee member, who may request an item to be placed on the agenda for
331.23a future meeting. The request may be considered by the committee and voted upon.
331.24If the motion carries, the meeting agenda item may be developed for presentation to
331.25the committee; and
331.26(ii) a member of the public, who may approach the committee by letter or e-mail
331.27requesting that an item be placed on a future meeting agenda. The request may be
331.28considered by the committee and voted upon. If the motion carries, the agenda item may
331.29be developed for presentation to the committee.
331.30(c) The Nonemergency Medical Transportation Advisory Committee shall
331.31coordinate its activities with the Minnesota Council on Transportation Access established
331.32under section 174.285. The chair of the advisory committee, or the chair's designee, shall
331.33attend all meetings of the Minnesota Council on Transportation Access.
331.34(d) The Nonemergency Medical Transportation Advisory Committee shall expire
331.35December 1, 2014 2019.

332.1    Sec. 31. Minnesota Statutes 2012, section 256B.0625, subdivision 18d, is amended to
332.2read:
332.3    Subd. 18d. Advisory committee members. (a) The Nonemergency Medical
332.4Transportation Advisory Committee consists of:
332.5(1) two voting members who represent counties, at least one of whom must represent
332.6a county or counties other than Anoka, Carver, Chisago, Dakota, Hennepin, Isanti,
332.7Ramsey, Scott, Sherburne, Washington, and Wright four voting members who represent
332.8counties, utilizing the rural urban commuting area classification system. As defined in
332.9subdivision 17, these members shall be designated as follows:
332.10(i) two counties within the 11-county metropolitan area;
332.11(ii) one county representing the rural area of the state; and
332.12(iii) one county representing the super rural area of the state.
332.13The Association of Minnesota Counties shall appoint one county within the 11-county
332.14metropolitan area and one county representing the super rural area of the state. The
332.15Minnesota Inter-County Association shall appoint one county within the 11-county
332.16metropolitan area and one county representing the rural area of the state;
332.17(2) four three voting members who represent medical assistance recipients, including
332.18persons with physical and developmental disabilities, persons with mental illness, seniors,
332.19children, and low-income individuals;
332.20(3) four voting members who represent providers that deliver nonemergency medical
332.21transportation services to medical assistance enrollees;
332.22(4) two voting members of the house of representatives, one from the majority
332.23party and one from the minority party, appointed by the speaker of the house, and two
332.24voting members from the senate, one from the majority party and one from the minority
332.25party, appointed by the Subcommittee on Committees of the Committee on Rules and
332.26Administration;
332.27(5) one voting member who represents demonstration providers as defined in section
332.28256B.69, subdivision 2 ;
332.29(6) one voting member who represents an organization that contracts with state or
332.30local governments to coordinate transportation services for medical assistance enrollees;
332.31and
332.32(7) one voting member who represents the Minnesota State Council on Disability;
332.33(8) the commissioner of transportation or the commissioner's designee, who shall
332.34serve as a voting member;
332.35(9) one voting member appointed by the Minnesota Ambulance Association; and
332.36(10) one voting member appointed by the Minnesota Hospital Association.
333.1(b) Members of the advisory committee shall not be employed by the Department of
333.2Human Services. Members of the advisory committee shall receive no compensation.

333.3    Sec. 32. Minnesota Statutes 2013 Supplement, section 256B.0625, subdivision 18e,
333.4is amended to read:
333.5    Subd. 18e. Single administrative structure and delivery system. (a) The
333.6commissioner shall implement a single administrative structure and delivery system
333.7for nonemergency medical transportation, beginning the latter of the date the single
333.8administrative assessment tool required in this paragraph is available for use, as
333.9determined by the commissioner or by July 1, 2014 2016. The single administrative
333.10structure and delivery system must:
333.11(1) eliminate the distinction between access transportation services and special
333.12transportation services;
333.13(2) enable all medical assistance recipients to follow the same process to obtain
333.14nonemergency medical transportation, regardless of their level of need;
333.15(3) provide a single oversight framework for all providers of nonemergency medical
333.16transportation; and
333.17(4) provide flexibility in service delivery, recognizing that clients fall along a
333.18continuum of needs and resources.
333.19(b) The commissioner shall present to the legislature, by January 15, 2014,
333.20legislation necessary to implement the single administrative structure and delivery system
333.21for nonemergency medical transportation.
333.22(c) In developing the single administrative structure and delivery system and the draft
333.23legislation, the commissioner shall consult with the Nonemergency Medical Transportation
333.24Advisory Committee. In coordination with the Department of Transportation, the
333.25commissioner shall develop and authorize a Web-based single administrative structure
333.26and assessment tool, which must operate 24 hours a day, seven days a week, to facilitate
333.27the enrollee assessment process for nonemergency medical transportation services.
333.28The Web-based tool shall facilitate the transportation eligibility determination process
333.29initiated by clients and client advocates; shall include an accessible automated intake
333.30and assessment process and real-time identification of level of service eligibility; and
333.31shall authorize an appropriate and auditable mode of transportation authorization. The
333.32tool shall provide a single framework for reconciling trip information with claiming and
333.33collecting complaints regarding inappropriate level of need determinations, inappropriate
333.34transportation modes utilized, and interference with accessing nonemergency medical
333.35transportation. The Web-based single administrative structure shall operate on a trial
334.1basis for one year from implementation and, if approved by the commissioner, shall be
334.2permanent thereafter. The commissioner shall seek input from the Nonemergency Medical
334.3Transportation Advisory Committee to ensure the software is effective and user-friendly
334.4and make recommendations regarding funding of the single administrative system.

334.5    Sec. 33. Minnesota Statutes 2012, section 256B.0625, subdivision 18g, is amended to
334.6read:
334.7    Subd. 18g. Use of standardized measures. The commissioner, in consultation
334.8with the Nonemergency Medical Transportation Advisory Committee, shall establish
334.9performance measures to assess the cost-effectiveness and quality of nonemergency
334.10medical transportation. At a minimum, performance measures should include the number
334.11of unique participants served by type of transportation provider, number of trips provided
334.12by type of transportation provider, and cost per trip by type of transportation provider. The
334.13commissioner must also consider the measures identified in the January 2012 Department
334.14of Human Services report to the legislature on nonemergency medical transportation.
334.15 Beginning in calendar year 2013 2015, the commissioner shall collect, audit, and analyze
334.16performance data on nonemergency medical transportation annually and report this
334.17information on the agency's Web site. The commissioner shall periodically supplement
334.18this information with the results of consumer surveys of the quality of services, and shall
334.19make these survey findings available to the public on the agency Web site.

334.20    Sec. 34. Minnesota Statutes 2012, section 256B.0625, is amended by adding a
334.21subdivision to read:
334.22    Subd. 18h. Managed care. The following subdivisions do not apply to managed
334.23care plans and county-based purchasing plans:
334.24    (1) subdivision 17, paragraphs (d) to (k);
334.25    (2) subdivision 18e; and
334.26    (3) subdivision 18g.

334.27    Sec. 35. Minnesota Statutes 2012, section 256B.0625, subdivision 30, is amended to
334.28read:
334.29    Subd. 30. Other clinic services. (a) Medical assistance covers rural health clinic
334.30services, federally qualified health center services, nonprofit community health clinic
334.31services, and public health clinic services. Rural health clinic services and federally
334.32qualified health center services mean services defined in United States Code, title 42,
335.1section 1396d(a)(2)(B) and (C). Payment for rural health clinic and federally qualified
335.2health center services shall be made according to applicable federal law and regulation.
335.3(b) A federally qualified health center that is beginning initial operation shall submit
335.4an estimate of budgeted costs and visits for the initial reporting period in the form and
335.5detail required by the commissioner. A federally qualified health center that is already in
335.6operation shall submit an initial report using actual costs and visits for the initial reporting
335.7period. Within 90 days of the end of its reporting period, a federally qualified health
335.8center shall submit, in the form and detail required by the commissioner, a report of
335.9its operations, including allowable costs actually incurred for the period and the actual
335.10number of visits for services furnished during the period, and other information required
335.11by the commissioner. Federally qualified health centers that file Medicare cost reports
335.12shall provide the commissioner with a copy of the most recent Medicare cost report filed
335.13with the Medicare program intermediary for the reporting year which support the costs
335.14claimed on their cost report to the state.
335.15(c) In order to continue cost-based payment under the medical assistance program
335.16according to paragraphs (a) and (b), a federally qualified health center or rural health clinic
335.17must apply for designation as an essential community provider within six months of final
335.18adoption of rules by the Department of Health according to section 62Q.19, subdivision
335.197 . For those federally qualified health centers and rural health clinics that have applied
335.20for essential community provider status within the six-month time prescribed, medical
335.21assistance payments will continue to be made according to paragraphs (a) and (b) for the
335.22first three years after application. For federally qualified health centers and rural health
335.23clinics that either do not apply within the time specified above or who have had essential
335.24community provider status for three years, medical assistance payments for health services
335.25provided by these entities shall be according to the same rates and conditions applicable
335.26to the same service provided by health care providers that are not federally qualified
335.27health centers or rural health clinics.
335.28(d) Effective July 1, 1999, the provisions of paragraph (c) requiring a federally
335.29qualified health center or a rural health clinic to make application for an essential
335.30community provider designation in order to have cost-based payments made according
335.31to paragraphs (a) and (b) no longer apply.
335.32(e) Effective January 1, 2000, payments made according to paragraphs (a) and (b)
335.33shall be limited to the cost phase-out schedule of the Balanced Budget Act of 1997.
335.34(f) Effective January 1, 2001, each federally qualified health center and rural health
335.35clinic may elect to be paid either under the prospective payment system established
335.36in United States Code, title 42, section 1396a(aa), or under an alternative payment
336.1methodology consistent with the requirements of United States Code, title 42, section
336.21396a(aa), and approved by the Centers for Medicare and Medicaid Services. The
336.3alternative payment methodology shall be 100 percent of cost as determined according to
336.4Medicare cost principles.
336.5(g) For purposes of this section, "nonprofit community clinic" is a clinic that:
336.6(1) has nonprofit status as specified in chapter 317A;
336.7(2) has tax exempt status as provided in Internal Revenue Code, section 501(c)(3);
336.8(3) is established to provide health services to low-income population groups,
336.9uninsured, high-risk and special needs populations, underserved and other special needs
336.10populations;
336.11(4) employs professional staff at least one-half of which are familiar with the
336.12cultural background of their clients;
336.13(5) charges for services on a sliding fee scale designed to provide assistance to
336.14low-income clients based on current poverty income guidelines and family size; and
336.15(6) does not restrict access or services because of a client's financial limitations or
336.16public assistance status and provides no-cost care as needed.
336.17(h) Effective for services provided on or after January 1, 2015, all claims for
336.18payment of clinic services provided by federally qualified health centers and rural health
336.19clinics shall be paid by the commissioner. The commissioner shall determine the most
336.20feasible method for paying claims from the following options:
336.21(1) federally qualified health centers and rural health clinics submit claims directly
336.22to the commissioner for payment, and the commissioner provides claims information for
336.23recipients enrolled in a managed care or county-based purchasing plan to the plan, on
336.24a regular basis; or
336.25(2) federally qualified health centers and rural health clinics submit claims for
336.26recipients enrolled in a managed care or county-based purchasing plan to the plan, and
336.27those claims are submitted by the plan to the commissioner for payment to the clinic.
336.28(i) For clinic services provided prior to January 1, 2015, the commissioner shall
336.29calculate and pay monthly the proposed managed care supplemental payments to clinics,
336.30and clinics shall conduct a timely review of the payment calculation data in order to
336.31finalize all supplemental payments in accordance with federal law. Any issues arising
336.32from a clinic's review must be reported to the commissioner by January 1, 2017. Upon
336.33final agreement between the commissioner and a clinic on issues identified under this
336.34subdivision, and in accordance with United States Code, title 42, section 1396a(bb), no
336.35supplemental payments for managed care plan or county-based purchasing plan claims
336.36for services provided prior to January 1, 2015, shall be made after June 30, 2017. If the
337.1commissioner and clinics are unable to resolve issues under this subdivision, the parties
337.2shall submit the dispute to the arbitration process under section 14.57.

337.3    Sec. 36. Minnesota Statutes 2012, section 256B.0751, is amended by adding a
337.4subdivision to read:
337.5    Subd. 10. Health care homes advisory committee. (a) The commissioners of
337.6health and human services shall establish a health care homes advisory committee to
337.7advise the commissioners on the ongoing statewide implementation of the health care
337.8homes program authorized in this section.
337.9(b) The commissioners shall establish an advisory committee that includes
337.10representatives of the health care professions such as primary care providers; mental
337.11health providers; nursing and care coordinators; certified health care home clinics with
337.12statewide representation; health plan companies; state agencies; employers; academic
337.13researchers; consumers; and organizations that work to improve health care quality in
337.14Minnesota. At least 25 percent of the committee members must be consumers or patients
337.15in health care homes. The commissioners, in making appointments to the committee, shall
337.16ensure geographic representation of all regions of the state.
337.17(c) The advisory committee shall advise the commissioners on ongoing
337.18implementation of the health care homes program, including, but not limited to, the
337.19following activities:
337.20(1) implementation of certified health care homes across the state on performance
337.21management and implementation of benchmarking;
337.22(2) implementation of modifications to the health care homes program based on
337.23results of the legislatively mandated health care home evaluation;
337.24(3) statewide solutions for engagement of employers and commercial payers;
337.25(4) potential modifications of the health care home rules or statutes;
337.26(5) consumer engagement, including patient and family-centered care, patient
337.27activation in health care, and shared decision making;
337.28(6) oversight for health care home subject matter task forces or workgroups; and
337.29(7) other related issues as requested by the commissioners.
337.30(d) The advisory committee shall have the ability to establish subcommittees on
337.31specific topics. The advisory committee is governed by section 15.059. Notwithstanding
337.32section 15.059, the advisory committee does not expire.

337.33    Sec. 37. Minnesota Statutes 2012, section 256B.199, is amended to read:
337.34256B.199 PAYMENTS REPORTED BY GOVERNMENTAL ENTITIES.
338.1    (a) Effective July 1, 2007, The commissioner shall apply for federal matching
338.2funds for the expenditures in paragraphs (b) and (c). Effective September 1, 2011, the
338.3commissioner shall apply for matching funds for expenditures in paragraph (e).
338.4    (b) The commissioner shall apply for federal matching funds for certified public
338.5expenditures as follows:
338.6    (1) Hennepin County, Hennepin County Medical Center, Ramsey County, and
338.7 Regions Hospital, the University of Minnesota, and Fairview-University Medical Center
338.8 shall report quarterly to the commissioner beginning June 1, 2007, payments made during
338.9the second previous quarter that may qualify for reimbursement under federal law;
338.10     (2) based on these reports, the commissioner shall apply for federal matching
338.11funds. These funds are appropriated to the commissioner for the payments under section
338.12256.969, subdivision 27; and
338.13     (3) by May 1 of each year, beginning May 1, 2007, the commissioner shall inform
338.14the nonstate entities listed in paragraph (a) of the amount of federal disproportionate share
338.15hospital payment money expected to be available in the current federal fiscal year.
338.16    (c) The commissioner shall apply for federal matching funds for general assistance
338.17medical care expenditures as follows:
338.18    (1) for hospital services occurring on or after July 1, 2007, general assistance medical
338.19care expenditures for fee-for-service inpatient and outpatient hospital payments made by
338.20the department shall be used to apply for federal matching funds, except as limited below:
338.21    (i) only those general assistance medical care expenditures made to an individual
338.22hospital that would not cause the hospital to exceed its individual hospital limits under
338.23section 1923 of the Social Security Act may be considered; and
338.24    (ii) general assistance medical care expenditures may be considered only to the extent
338.25of Minnesota's aggregate allotment under section 1923 of the Social Security Act; and
338.26    (2) all hospitals must provide any necessary expenditure, cost, and revenue
338.27information required by the commissioner as necessary for purposes of obtaining federal
338.28Medicaid matching funds for general assistance medical care expenditures.
338.29(d) (c) For the period from April 1, 2009, to September 30, 2010, the commissioner
338.30shall apply for additional federal matching funds available as disproportionate share
338.31hospital payments under the American Recovery and Reinvestment Act of 2009. These
338.32funds shall be made available as the state share of payments under section 256.969,
338.33subdivision 28 . The entities required to report certified public expenditures under
338.34paragraph (b), clause (1), shall report additional certified public expenditures as necessary
338.35under this paragraph.
339.1(e) (d) For services provided on or after September 1, 2011, the commissioner shall
339.2apply for additional federal matching funds available as disproportionate share hospital
339.3payments under the MinnesotaCare program according to the requirements and conditions
339.4of paragraph (c). A hospital may elect on an annual basis to not be a disproportionate
339.5share hospital for purposes of this paragraph, if the hospital does not qualify for a payment
339.6under section 256.969, subdivision 9, paragraph (b).

339.7    Sec. 38. Minnesota Statutes 2012, section 256B.35, subdivision 1, is amended to read:
339.8    Subdivision 1. Personal needs allowance. (a) Notwithstanding any law to the
339.9contrary, welfare allowances for clothing and personal needs for individuals receiving
339.10medical assistance while residing in any skilled nursing home, intermediate care facility,
339.11or medical institution including recipients of Supplemental Security Income, in this state
339.12shall not be less than $45 per month from all sources. When benefit amounts for Social
339.13Security or Supplemental Security Income recipients are increased pursuant to United
339.14States Code, title 42, sections 415(i) and 1382f, the commissioner shall, effective in the
339.15month in which the increase takes effect, increase by the same percentage to the nearest
339.16whole dollar the clothing and personal needs allowance for individuals receiving medical
339.17assistance while residing in any skilled nursing home, medical institution, or intermediate
339.18care facility. The commissioner shall provide timely notice to local agencies, providers,
339.19and recipients of increases under this provision.
339.20(b) The personal needs allowance may be paid as part of the Minnesota supplemental
339.21aid program, and payments to recipients of Minnesota supplemental aid may be made once
339.22each three months covering liabilities that accrued during the preceding three months.
339.23(c) The personal needs allowance shall be increased to include income garnished
339.24for child support under a court order, up to a maximum of $250 per month but only to
339.25the extent that the amount garnished is not deducted as a monthly allowance for children
339.26under section 256B.0575, paragraph (a), clause (5).
339.27(d) Solely for the purpose of section 256B.0575, subdivision 1, paragraph (a), clause
339.28(1), the personal needs allowance shall be increased to include income garnished for
339.29spousal maintenance under a judgment and decree for dissolution of marriage, and any
339.30administrative fees garnished for collection efforts.

339.31    Sec. 39. Minnesota Statutes 2013 Supplement, section 256B.69, subdivision 34,
339.32is amended to read:
339.33    Subd. 34. Supplemental recovery program. The commissioner shall conduct a
339.34supplemental recovery program for third-party liabilities identified through coordination
340.1of benefits not recovered by managed care plans and county-based purchasing plans for
340.2state public health programs. Any third-party liability identified through coordination of
340.3benefits and recovered by the commissioner more than six eight months after the date
340.4a managed care plan or county-based purchasing plan receives adjudicates a health
340.5care claim shall be retained by the commissioner and deposited in the general fund.
340.6The commissioner shall establish a mechanism, including a reconciliation process, for
340.7managed care plans and county-based purchasing plans to coordinate third-party liability
340.8collections efforts resulting from coordination of benefits under this subdivision with the
340.9commissioner to ensure there is no duplication of efforts. The coordination mechanism
340.10must be consistent with the reporting requirements in subdivision 9c. The commissioner
340.11shall share accurate and timely third-party liability data with managed care plans and
340.12county-based purchasing plans.

340.13    Sec. 40. Minnesota Statutes 2013 Supplement, section 256B.766, is amended to read:
340.14256B.766 REIMBURSEMENT FOR BASIC CARE SERVICES.
340.15(a) Effective for services provided on or after July 1, 2009, total payments for basic
340.16care services, shall be reduced by three percent, except that for the period July 1, 2009,
340.17through June 30, 2011, total payments shall be reduced by 4.5 percent for the medical
340.18assistance and general assistance medical care programs, prior to third-party liability and
340.19spenddown calculation. Effective July 1, 2010, the commissioner shall classify physical
340.20therapy services, occupational therapy services, and speech-language pathology and
340.21related services as basic care services. The reduction in this paragraph shall apply to
340.22physical therapy services, occupational therapy services, and speech-language pathology
340.23and related services provided on or after July 1, 2010.
340.24(b) Payments made to managed care plans and county-based purchasing plans shall
340.25be reduced for services provided on or after October 1, 2009, to reflect the reduction
340.26effective July 1, 2009, and payments made to the plans shall be reduced effective October
340.271, 2010, to reflect the reduction effective July 1, 2010.
340.28(c) Effective for services provided on or after September 1, 2011, through June 30,
340.292013, total payments for outpatient hospital facility fees shall be reduced by five percent
340.30from the rates in effect on August 31, 2011.
340.31(d) Effective for services provided on or after September 1, 2011, through June
340.3230, 2013, total payments for ambulatory surgery centers facility fees, medical supplies
340.33and durable medical equipment not subject to a volume purchase contract, prosthetics
340.34and orthotics, renal dialysis services, laboratory services, public health nursing services,
340.35physical therapy services, occupational therapy services, speech therapy services,
341.1eyeglasses not subject to a volume purchase contract, hearing aids not subject to a volume
341.2purchase contract, and anesthesia services shall be reduced by three percent from the
341.3rates in effect on August 31, 2011.
341.4(e) Effective for services provided on or after September 1, 2014, payments for
341.5ambulatory surgery centers facility fees, medical supplies and durable medical equipment
341.6not subject to a volume purchase contract, prosthetics and orthotics, hospice services, renal
341.7dialysis services, laboratory services, public health nursing services, eyeglasses not subject
341.8to a volume purchase contract, and hearing aids not subject to a volume purchase contract
341.9shall be increased by three percent and payments for outpatient hospital facility fees shall
341.10be increased by three percent. Payments made to managed care plans and county-based
341.11purchasing plans shall not be adjusted to reflect payments under this paragraph.
341.12(f) Payments for medical supplies and durable medical equipment not subject to a
341.13volume purchase contract, prosthetics and orthotics, provided on or after July 1, 2014,
341.14through June 30, 2015, shall be decreased by .33 percent. Payments for medical supplies
341.15and durable medical equipment not subject to a volume purchase contract, prosthetics and
341.16orthotics, provided on or after July 1, 2015, shall be increased by three percent from the
341.17rates in effect on June 30, 2014.
341.18(f) (g) This section does not apply to physician and professional services, inpatient
341.19hospital services, family planning services, mental health services, dental services,
341.20prescription drugs, medical transportation, federally qualified health centers, rural health
341.21centers, Indian health services, and Medicare cost-sharing.

341.22    Sec. 41. Minnesota Statutes 2013 Supplement, section 256B.767, is amended to read:
341.23256B.767 MEDICARE PAYMENT LIMIT.
341.24(a) Effective for services rendered on or after July 1, 2010, fee-for-service payment
341.25rates for physician and professional services under section 256B.76, subdivision 1, and
341.26basic care services subject to the rate reduction specified in section 256B.766, shall not
341.27exceed the Medicare payment rate for the applicable service, as adjusted for any changes
341.28in Medicare payment rates after July 1, 2010. The commissioner shall implement this
341.29section after any other rate adjustment that is effective July 1, 2010, and shall reduce rates
341.30under this section by first reducing or eliminating provider rate add-ons.
341.31(b) This section does not apply to services provided by advanced practice certified
341.32nurse midwives licensed under chapter 148 or traditional midwives licensed under chapter
341.33147D. Notwithstanding this exemption, medical assistance fee-for-service payment rates
341.34for advanced practice certified nurse midwives and licensed traditional midwives shall
342.1equal and shall not exceed the medical assistance payment rate to physicians for the
342.2applicable service.
342.3(c) This section does not apply to mental health services or physician services billed
342.4by a psychiatrist or an advanced practice registered nurse with a specialty in mental health.
342.5(d) Effective for durable medical equipment, prosthetics, orthotics, or supplies
342.6provided on or after July 1, 2013, through June 30, 2014 2015, the payment rate for items
342.7that are subject to the rates established under Medicare's National Competitive Bidding
342.8Program shall be equal to the rate that applies to the same item when not subject to the
342.9rate established under Medicare's National Competitive Bidding Program. This paragraph
342.10does not apply to mail-order diabetic supplies and does not apply to items provided to
342.11dually eligible recipients when Medicare is the primary payer of the item.

342.12    Sec. 42. Laws 2013, chapter 108, article 1, section 24, the effective date, is amended to
342.13read:
342.14EFFECTIVE DATE.This section is effective January July 1, 2014.
342.15EFFECTIVE DATE.This section is effective the day following final enactment.

342.16    Sec. 43. Laws 2014, chapter 235, section 43, is amended to read:
342.17    Sec. 43. EFFECTIVE DATE.
342.18Sections 1 to 40, and 42, are effective January 1, 2015.

342.19    Sec. 44. MEDICAL ASSISTANCE SPENDDOWN REQUIREMENTS.
342.20The commissioner of human services, in consultation with interested stakeholders,
342.21shall review medical assistance spenddown requirements and processes, including those
342.22used in other states, for individuals with disabilities and seniors age 65 years of age or
342.23older. Based on this review, the commissioner shall recommend alternative medical
342.24assistance spenddown payment requirements and processes that:
342.25(1) are practical for current and potential medical assistance recipients, providers,
342.26and the Department of Human Services;
342.27(2) improve the medical assistance payment process for providers; and
342.28(3) allow current and potential medical assistance recipients to obtain consistent
342.29and affordable medical coverage.
342.30The commissioner shall report these recommendations, along with the projected cost,
342.31to the chairs and ranking minority members of the legislative committees and divisions
342.32with jurisdiction over health and human services policy and finance by February 15, 2015.

343.1    Sec. 45. WAIVER APPLICATIONS FOR NONEMERGENCY MEDICAL
343.2TRANSPORTATION SERVICE PROVIDERS.
343.3    Subdivision 1. Definitions. For purposes of this section, the following definitions
343.4apply:
343.5(1) "new provider" is a nonemergency medical transportation service provider that
343.6has not been enrolled prior to the effective date of this act and is delivering a mode that
343.7was not required to comply with special transportation service operating standards before
343.8the effective date of this act; and
343.9(2) "commissioner" is the commissioner of human services.
343.10    Subd. 2. Application for and terms of variance. A new provider may apply to the
343.11commissioner, on a form supplied by the commissioner for this purpose, for a variance
343.12from special transportation service operating standards. The commissioner may grant or
343.13deny the variance application. Variances expire on the earlier of, February 1, 2016, or the
343.14date that the commissioner of transportation begins certifying new providers under the
343.15terms of this act and successor legislation.
343.16    Subd. 3. Information concerning variances. The commissioner shall periodically
343.17transmit to the Department of Transportation the number of variance applications received
343.18and the number granted.
343.19    Subd. 4. Report by commissioner of transportation. On or before February
343.201, 2015, the commissioner of transportation shall report to the chairs and ranking
343.21minority members of the senate and house of representatives committees and divisions
343.22with jurisdiction over transportation and human services concerning implementing the
343.23nonemergency medical transportation services provisions. The report must contain
343.24recommendations of the commissioner of transportation concerning statutes, session
343.25laws, and rules that must be amended, repealed, enacted, or adopted to implement the
343.26nonemergency medical transportation services provisions. The recommendations must
343.27include, without limitation, the amount of the fee that would be required to cover the costs
343.28of Department of Transportation supervision of inspection and certification, as well as
343.29any needed statutory rulemaking or other authority to be granted to the commissioner of
343.30transportation.

343.31    Sec. 46. FEDERAL AUTHORITY; EMERGENCY MEDICAL ASSISTANCE
343.32PROGRAM.
344.1The commissioner, in consultation with providers who participate in the emergency
344.2medical assistance program and representatives of patients served by the program, shall
344.3assess the program's covered services, care plan requirements, conditions of eligibility
344.4for covered services, and other program requirements to identify potential changes to
344.5program requirements that are likely to reduce the use of more costly services, including
344.6emergency and inpatient hospital services. The commissioner shall report any changes
344.7to program requirements that produce credible savings to the cost of federally funded
344.8services provided to eligible individuals, including the estimated fiscal effect of these
344.9changes to the chairs and ranking minority members of the legislative committees and
344.10divisions with jurisdiction over health and human services policy and finance by January
344.1115, 2015. If additional resources are required to establish cost savings, the report shall
344.12identify the necessary resources and anticipated costs associated with the analysis.
344.13EFFECTIVE DATE.This section is effective the day following final enactment.

344.14    Sec. 47. ORAL HEALTH DELIVERY AND REIMBURSEMENT SYSTEM.
344.15(a) The commissioner of human services, in consultation with the commissioner of
344.16health, shall convene a work group to develop a new delivery and reimbursement system
344.17for oral health and dental services that are provided to enrollees of the state public health
344.18care programs. The new system must ensure cost-effective delivery and an increase in
344.19access to services.
344.20(b) The commissioner shall consult with dental providers enrolled in the state public
344.21health programs, including providers who serve substantial numbers of low-income
344.22and uninsured patients and are currently receiving critical access dental payments;
344.23private practicing dentists; nonprofit community clinics; managed care and county-based
344.24purchasing plans; and health plan companies that provide either directly or through
344.25contracts with providers dental services to enrollees of state public health care programs.
344.26(c) The commissioner shall submit a report containing the proposed delivery and
344.27reimbursement system, including draft legislation to the chairs and ranking minority
344.28members of the legislative committees and divisions with jurisdiction over health and
344.29human services policy and finance by January 15, 2015.

344.30    Sec. 48. REPEALER.
344.31(a) Minnesota Statutes 2012, sections 256.969, subdivisions 2c, 8b, 9a, 9b, 11, 13,
344.3220, 21, 22, 26, 27, and 28; and 256.9695, subdivisions 3 and 4, are repealed effective
344.33November 1, 2014.
345.1(b) Minnesota Statutes 2013 Supplement, section 256B.0625, subdivision 18f, is
345.2repealed.

345.3ARTICLE 25

345.4CHILDREN, FAMILIES, AND NORTHSTAR CARE FOR CHILDREN

345.5    Section 1. Minnesota Statutes 2012, section 119B.09, subdivision 9a, is amended to
345.6read:
345.7    Subd. 9a. Child care centers; assistance. (a) For the purposes of this subdivision,
345.8"qualifying child" means a child who satisfies both of the following:
345.9    (1) is not a child or dependent of an employee of the child care provider; and
345.10    (2) does not reside with an employee of the child care provider.
345.11    (b) Funds distributed under this chapter must not be paid for child care services that
345.12are provided for a child by a child care provider who employs either the parent of the child
345.13or a person who resides with the child, or dependent of an employee under paragraph (a)
345.14 unless at all times at least 50 percent of the children for whom the child care provider is
345.15providing care are qualifying children under paragraph (a).
345.16    (c) If a child care provider satisfies the requirements for payment under paragraph
345.17(b), but the percentage of qualifying children under paragraph (a) for whom the provider
345.18is providing care falls below 50 percent, the provider shall have four weeks to raise the
345.19percentage of qualifying children for whom the provider is providing care to at least 50
345.20percent before payments to the provider are discontinued for child care services provided
345.21for a child who is not a qualifying child.
345.22    (d) This subdivision shall be implemented as follows:
345.23(1) no later than August 1, 2014, the commissioner shall issue a notice to providers
345.24who have been identified as ineligible for funds distributed under this chapter as described
345.25in paragraph (b); and
345.26(2) no later than January 5, 2015, payments to providers who do not comply with
345.27paragraph (c) will be discontinued for child care services provided for children who are
345.28not qualifying children.
345.29(e) If a child's authorization for child care assistance is terminated under this
345.30subdivision, the county shall send a notice of adverse action to the provider and to the
345.31child's parent or guardian, including information on the right to appeal, under Minnesota
345.32Rules, part 3400.0185.
345.33(f) Funds paid to providers during the period of time between the issuance of a
345.34notice under paragraph (d), clause (1), and discontinuation of payments under paragraph
346.1(d), clause (2), must not be treated as overpayments under section 119B.11, subdivision
346.22a, due to noncompliance with this subdivision.
346.3(g) Nothing in this subdivision precludes the commissioner from conducting
346.4fraud investigations relating to child care assistance, imposing sanctions, and obtaining
346.5monetary recovery as otherwise provided by law.

346.6    Sec. 2. Minnesota Statutes 2012, section 245A.03, subdivision 2c, is amended to read:
346.7    Subd. 2c. School-age child care licensing moratorium. A school-age program
346.8whose sole purpose is to provide only services to school-age children during out-of-school
346.9times is exempt from the human services licensing requirements in this chapter until
346.10July 1, 2014 2015. Nothing in this section prohibits an already licensed school-age-only
346.11program from continuing its license or a school-age program from seeking licensure.

346.12    Sec. 3. Minnesota Statutes 2012, section 245C.05, subdivision 5, is amended to read:
346.13    Subd. 5. Fingerprints. (a) Except as provided in paragraph (c), for any background
346.14study completed under this chapter, when the commissioner has reasonable cause to
346.15believe that further pertinent information may exist on the subject of the background
346.16study, the subject shall provide the commissioner with a set of classifiable fingerprints
346.17obtained from an authorized agency.
346.18    (b) For purposes of requiring fingerprints, the commissioner has reasonable cause
346.19when, but not limited to, the:
346.20    (1) information from the Bureau of Criminal Apprehension indicates that the subject
346.21is a multistate offender;
346.22    (2) information from the Bureau of Criminal Apprehension indicates that multistate
346.23offender status is undetermined; or
346.24    (3) commissioner has received a report from the subject or a third party indicating
346.25that the subject has a criminal history in a jurisdiction other than Minnesota.
346.26    (c) Except as specified under section 245C.04, subdivision 1, paragraph (d), for
346.27background studies conducted by the commissioner for child foster care or, adoptions, or a
346.28transfer of permanent legal and physical custody of a child, the subject of the background
346.29study, who is 18 years of age or older, shall provide the commissioner with a set of
346.30classifiable fingerprints obtained from an authorized agency.

346.31    Sec. 4. Minnesota Statutes 2013 Supplement, section 245C.08, subdivision 1, is
346.32amended to read:
347.1    Subdivision 1. Background studies conducted by Department of Human
347.2Services. (a) For a background study conducted by the Department of Human Services,
347.3the commissioner shall review:
347.4    (1) information related to names of substantiated perpetrators of maltreatment of
347.5vulnerable adults that has been received by the commissioner as required under section
347.6626.557, subdivision 9c , paragraph (j);
347.7    (2) the commissioner's records relating to the maltreatment of minors in licensed
347.8programs, and from findings of maltreatment of minors as indicated through the social
347.9service information system;
347.10    (3) information from juvenile courts as required in subdivision 4 for individuals
347.11listed in section 245C.03, subdivision 1, paragraph (a), when there is reasonable cause;
347.12    (4) information from the Bureau of Criminal Apprehension, including information
347.13regarding a background study subject's registration in Minnesota as a predatory offender
347.14under section 243.166;
347.15    (5) except as provided in clause (6), information from the national crime information
347.16system when the commissioner has reasonable cause as defined under section 245C.05,
347.17subdivision 5; and
347.18    (6) for a background study related to a child foster care application for licensure, a
347.19transfer of permanent legal and physical custody of a child under sections 260C.503 to
347.20260C.515, or adoptions, the commissioner shall also review:
347.21    (i) information from the child abuse and neglect registry for any state in which the
347.22background study subject has resided for the past five years; and
347.23    (ii) information from national crime information databases, when the background
347.24study subject is 18 years of age or older.
347.25    (b) Notwithstanding expungement by a court, the commissioner may consider
347.26information obtained under paragraph (a), clauses (3) and (4), unless the commissioner
347.27received notice of the petition for expungement and the court order for expungement is
347.28directed specifically to the commissioner.
347.29    (c) The commissioner shall also review criminal case information received according
347.30to section 245C.04, subdivision 4a, from the Minnesota court information system that
347.31relates to individuals who have already been studied under this chapter and who remain
347.32affiliated with the agency that initiated the background study.

347.33    Sec. 5. Minnesota Statutes 2012, section 245C.33, subdivision 1, is amended to read:
347.34    Subdivision 1. Adoption and transfer of permanent legal and physical custody;
347.35 Background studies conducted by commissioner study requirements. (a) Before
348.1placement of a child for purposes of adoption, the commissioner shall conduct a
348.2background study on individuals listed in section sections 259.41, subdivision 3, and
348.3260C.611, for county agencies and private agencies licensed to place children for adoption.
348.4 When a prospective adoptive parent is seeking to adopt a child who is currently placed in
348.5the prospective adoptive parent's home and is under the guardianship of the commissioner
348.6according to section 260C.325, subdivision 1, paragraph (b), and the prospective adoptive
348.7parent holds a child foster care license, a new background study is not required when:
348.8(1) a background study was completed on persons required to be studied under section
348.9245C.03 in connection with the application for child foster care licensure after July 1, 2007;
348.10(2) the background study included a review of the information in section 245C.08,
348.11subdivisions 1, 3, and 4; and
348.12(3) as a result of the background study, the individual was either not disqualified
348.13or, if disqualified, the disqualification was set aside under section 245C.22, or a variance
348.14was issued under section 245C.30.
348.15(b) Before the kinship placement agreement is signed for the purpose of transferring
348.16permanent legal and physical custody to a relative under sections 260C.503 to 260C.515,
348.17the commissioner shall conduct a background study on each person age 13 or older living
348.18in the home. When a prospective relative custodian has a child foster care license, a new
348.19background study is not required when:
348.20(1) a background study was completed on persons required to be studied under section
348.21245C.03 in connection with the application for child foster care licensure after July 1, 2007;
348.22(2) the background study included a review of the information in section 245C.08,
348.23subdivisions 1, 3, and 4; and
348.24(3) as a result of the background study, the individual was either not disqualified or,
348.25if disqualified, the disqualification was set aside under section 245C.22, or a variance was
348.26issued under section 245C.30. The commissioner and the county agency shall expedite any
348.27request for a set-aside or variance for a background study required under chapter 256N.

348.28    Sec. 6. Minnesota Statutes 2012, section 245C.33, subdivision 4, is amended to read:
348.29    Subd. 4. Information commissioner reviews. (a) The commissioner shall review
348.30the following information regarding the background study subject:
348.31    (1) the information under section 245C.08, subdivisions 1, 3, and 4;
348.32    (2) information from the child abuse and neglect registry for any state in which the
348.33subject has resided for the past five years; and
348.34    (3) information from national crime information databases, when required under
348.35section 245C.08.
349.1    (b) The commissioner shall provide any information collected under this subdivision
349.2to the county or private agency that initiated the background study. The commissioner
349.3shall also provide the agency:
349.4(1) notice whether the information collected shows that the subject of the background
349.5study has a conviction listed in United States Code, title 42, section 671(a)(20)(A); and
349.6(2) for background studies conducted under subdivision 1, paragraph (a), the date of
349.7all adoption-related background studies completed on the subject by the commissioner
349.8after June 30, 2007, and the name of the county or private agency that initiated the
349.9adoption-related background study.

349.10    Sec. 7. Minnesota Statutes 2013 Supplement, section 256B.055, subdivision 1, is
349.11amended to read:
349.12    Subdivision 1. Children eligible for subsidized adoption assistance. Medical
349.13assistance may be paid for a child eligible for or receiving adoption assistance payments
349.14under title IV-E of the Social Security Act, United States Code, title 42, sections 670 to
349.15676, and to any child who is not title IV-E eligible but who was determined eligible for
349.16adoption assistance under chapter 256N or section 259A.10, subdivision 2, and has a
349.17special need for medical or rehabilitative care.

349.18    Sec. 8. Minnesota Statutes 2012, section 256J.49, subdivision 13, is amended to read:
349.19    Subd. 13. Work activity. (a) "Work activity" means any activity in a participant's
349.20approved employment plan that leads to employment. For purposes of the MFIP program,
349.21this includes activities that meet the definition of work activity under the participation
349.22requirements of TANF. Work activity includes:
349.23    (1) unsubsidized employment, including work study and paid apprenticeships or
349.24internships;
349.25    (2) subsidized private sector or public sector employment, including grant diversion
349.26as specified in section 256J.69, on-the-job training as specified in section 256J.66, paid
349.27work experience, and supported work when a wage subsidy is provided;
349.28    (3) unpaid work experience, including community service, volunteer work,
349.29the community work experience program as specified in section 256J.67, unpaid
349.30apprenticeships or internships, and supported work when a wage subsidy is not provided.
349.31Unpaid work experience is only an option if the participant has been unable to obtain or
349.32maintain paid employment in the competitive labor market, and no paid work experience
349.33programs are available to the participant. Prior to placing a participant in unpaid work,
349.34the county must inform the participant that the participant will be notified if a paid work
350.1experience or supported work position becomes available. Unless a participant consents in
350.2writing to participate in unpaid work experience, the participant's employment plan may
350.3only include unpaid work experience if including the unpaid work experience in the plan
350.4will meet the following criteria:
350.5    (i) the unpaid work experience will provide the participant specific skills or
350.6experience that cannot be obtained through other work activity options where the
350.7participant resides or is willing to reside; and
350.8    (ii) the skills or experience gained through the unpaid work experience will result
350.9in higher wages for the participant than the participant could earn without the unpaid
350.10work experience;
350.11    (4) job search including job readiness assistance, job clubs, job placement,
350.12job-related counseling, and job retention services;
350.13    (5) job readiness education, including English as a second language (ESL) or
350.14functional work literacy classes as limited by the provisions of section 256J.531,
350.15subdivision 2 , general educational development (GED) or adult high school diploma
350.16course work, high school completion, and adult basic education as limited by the
350.17provisions of section 256J.531, subdivision 1;
350.18    (6) job skills training directly related to employment, including postsecondary
350.19education and training that can reasonably be expected to lead to employment, as limited
350.20by the provisions of section 256J.53;
350.21    (7) providing child care services to a participant who is working in a community
350.22service program;
350.23    (8) activities included in the employment plan that is developed under section
350.24256J.521, subdivision 3 ; and
350.25    (9) preemployment activities including chemical and mental health assessments,
350.26treatment, and services; learning disabilities services; child protective services; family
350.27stabilization services; or other programs designed to enhance employability.
350.28(b) "Work activity" does not include activities done for political purposes as defined
350.29in section 211B.01, subdivision 6.

350.30    Sec. 9. Minnesota Statutes 2012, section 256J.53, subdivision 1, is amended to read:
350.31    Subdivision 1. Length of program. (a) In order for a postsecondary education
350.32or training program to be an approved work activity as defined in section 256J.49,
350.33subdivision 13 , clause (6), it must be a program lasting 24 months four years or less, and
350.34the participant must meet the requirements of subdivisions 2, 3, and 5.
351.1(b) Participants with a high school diploma, general educational development
351.2(GED) credential, or an adult high school diploma must be informed of the opportunity
351.3to participate in postsecondary education or training while in the Minnesota family
351.4investment program.

351.5    Sec. 10. Minnesota Statutes 2012, section 256J.53, subdivision 2, is amended to read:
351.6    Subd. 2. Approval of Postsecondary education or training. (a) In order for a
351.7postsecondary education or training program to be an approved activity in an employment
351.8plan, the plan must include additional work activities if the education and training
351.9activities do not meet the minimum hours required to meet the federal work participation
351.10rate under Code of Federal Regulations, title 45, sections 261.31 and 261.35.
351.11    (b) Participants seeking approval of a postsecondary education or training plan
351.12must provide documentation that:
351.13    (1) the employment goal can only be met with the additional education or training;
351.14 Participants who are interested in participating in postsecondary education or training as
351.15part of their employment plan must discuss their education plans with their job counselor.
351.16Job counselors will work with participants to evaluate the options by:
351.17    (2) (1) advising whether there are suitable employment opportunities that require
351.18the specific education or training in the area in which the participant resides or is willing
351.19to reside;
351.20    (3) the education or training will result in significantly higher wages for the
351.21participant than the participant could earn without the education or training;
351.22    (4) (2) assisting the participant in exploring whether the participant can meet the
351.23requirements for admission into the program; and
351.24    (5) there is a reasonable expectation that the participant will complete the training
351.25program based on such factors as (3) discussing the participant's strengths and challenges
351.26based on the participant's MFIP assessment, previous education, training, and work
351.27history; current motivation; and changes in previous circumstances.
351.28(b) The requirements of this subdivision do not apply to participants who are in:
351.29(1) a recognized career pathway program that leads to stackable credentials;
351.30(2) a training program lasting 12 weeks or fewer; or
351.31(3) the final year of a multiyear postsecondary education or training program.

351.32    Sec. 11. Minnesota Statutes 2012, section 256J.53, subdivision 5, is amended to read:
351.33    Subd. 5. Requirements after postsecondary education or training. Upon
351.34completion of an approved education or training program, a participant who does not meet
352.1the participation requirements in section 256J.55, subdivision 1, through unsubsidized
352.2employment must participate in job search. If, after six 12 weeks of job search, the
352.3participant does not find a full-time job consistent with the employment goal, the
352.4participant must accept any offer of full-time suitable employment, or meet with the job
352.5counselor to revise the employment plan to include additional work activities necessary to
352.6meet hourly requirements.

352.7    Sec. 12. Minnesota Statutes 2012, section 256J.531, is amended to read:
352.8256J.531 BASIC EDUCATION; ENGLISH AS A SECOND LANGUAGE.
352.9    Subdivision 1. Approval of adult basic education. With the exception of classes
352.10related to obtaining a general educational development credential (GED), a participant
352.11must have reading or mathematics proficiency below a ninth grade level in order for
352.12adult basic education classes to be an A participant who lacks a high school diploma,
352.13general educational development (GED) credential, or an adult high school diploma
352.14must be allowed to pursue these credentials as an approved work activity, provided
352.15that the participant is making satisfactory progress. Participants eligible to pursue
352.16a general educational development (GED) credential or adult high school diploma
352.17under this subdivision must be informed of the opportunity to participate while in the
352.18Minnesota family investment program. The employment plan must also specify that
352.19the participant fulfill no more than one-half of the participation requirements in section
352.20256J.55, subdivision 1, through attending adult basic education or general educational
352.21development classes.
352.22    Subd. 2. Approval of English as a second language. In order for English as a
352.23second language (ESL) classes to be an approved work activity in an employment plan, a
352.24participant must be below a spoken language proficiency level of SPL6 or its equivalent,
352.25as measured by a nationally recognized test. In approving ESL as a work activity, the job
352.26counselor must give preference to enrollment in a functional work literacy program,
352.27if one is available, over a regular ESL program. A participant may not be approved
352.28for more than a combined total of 24 months of ESL classes while participating in the
352.29diversionary work program and the employment and training services component of
352.30MFIP. The employment plan must also specify that the participant fulfill no more than
352.31one-half of the participation requirements in section 256J.55, subdivision 1, through
352.32attending ESL classes. For participants enrolled in functional work literacy classes, no
352.33more than two-thirds of the participation requirements in section 256J.55, subdivision 1,
352.34may be met through attending functional work literacy classes.

353.1    Sec. 13. Minnesota Statutes 2013 Supplement, section 256N.02, is amended by adding
353.2a subdivision to read:
353.3    Subd. 14a. Licensed child foster parent. "Licensed child foster parent" means a
353.4person who is licensed for child foster care under Minnesota Rules, parts 2960.3000 to
353.52960.3340, or licensed by a Minnesota tribe in accordance with tribal standards.

353.6    Sec. 14. Minnesota Statutes 2013 Supplement, section 256N.21, subdivision 2, is
353.7amended to read:
353.8    Subd. 2. Placement in foster care. To be eligible for foster care benefits under this
353.9section, the child must be in placement away from the child's legal parent or, guardian, or
353.10Indian custodian as defined in section 260.755, subdivision 10, and all of the following
353.11criteria must be met must meet one of the criteria in clause (1) and either clause (2) or (3):
353.12(1) the legally responsible agency must have placement authority and care
353.13responsibility, including for a child 18 years old or older and under age 21, who maintains
353.14eligibility for foster care consistent with section 260C.451;
353.15(2) (1) the legally responsible agency must have placement authority to place the
353.16child with: (i) a voluntary placement agreement or a court order, consistent with sections
353.17260B.198 , 260C.001, and 260D.01, or continued eligibility consistent with section
353.18260C.451 for a child 18 years old or older and under age 21 who maintains eligibility for
353.19foster care; or (ii) a voluntary placement agreement or court order by a Minnesota tribe
353.20that is consistent with United States Code, title 42, section 672(a)(2); and
353.21(3) (2) the child must be is placed in an emergency relative placement under section
353.22245A.035, with a licensed foster family setting, foster residence setting, or treatment
353.23foster care setting licensed under Minnesota Rules, parts 2960.3000 to 2960.3340, a
353.24family foster home licensed or approved by a tribal agency or, for a child 18 years old or
353.25older and under age 21, child foster parent; or
353.26(3) the child is placed in one of the following unlicensed child foster care settings:
353.27(i) an emergency relative placement under tribal licensing regulations or section
353.28245A.035, with the legally responsible agency ensuring the relative completes the required
353.29child foster care application process;
353.30(ii) a licensed adult foster home with an approved age variance under section
353.31245A.16 for no more than six months;
353.32(iii) for a child 18 years old or older and under age 21 who is eligible for extended
353.33foster care under section 260C.451, an unlicensed supervised independent living setting
353.34approved by the agency responsible for the youth's child's care.; or
354.1(iv) a preadoptive placement in a home specified in section 245A.03, subdivision
354.22, paragraph (a), clause (9), with an approved adoption home study and signed adoption
354.3placement agreement.

354.4    Sec. 15. Minnesota Statutes 2013 Supplement, section 256N.21, is amended by adding
354.5a subdivision to read:
354.6    Subd. 7. Background study. (a) A county or private agency conducting a
354.7background study for purposes of child foster care licensing or approval must conduct
354.8the study in accordance with chapter 245C and must meet the requirements in United
354.9States Code, title 42, section 671(a)(20).
354.10(b) A Minnesota tribe conducting a background study for purposes of child foster
354.11care licensing or approval must conduct the study in accordance with the requirements in
354.12United States Code, title 42, section 671(a)(20), when applicable.

354.13    Sec. 16. Minnesota Statutes 2013 Supplement, section 256N.22, subdivision 1, is
354.14amended to read:
354.15    Subdivision 1. General eligibility requirements. (a) To be eligible for guardianship
354.16assistance under this section, there must be a judicial determination under section
354.17260C.515, subdivision 4 , that a transfer of permanent legal and physical custody to a
354.18relative is in the child's best interest. For a child under jurisdiction of a tribal court, a
354.19judicial determination under a similar provision in tribal code indicating that a relative
354.20will assume the duty and authority to provide care, control, and protection of a child who
354.21is residing in foster care, and to make decisions regarding the child's education, health
354.22care, and general welfare until adulthood, and that this is in the child's best interest is
354.23considered equivalent. Additionally, a child must:
354.24(1) have been removed from the child's home pursuant to a voluntary placement
354.25agreement or court order;
354.26(2)(i) have resided in with the prospective relative custodian who has been a
354.27licensed child foster care parent for at least six consecutive months in the home of the
354.28prospective relative custodian; or
354.29(ii) have received from the commissioner an exemption from the requirement in item
354.30(i) from the court that the prospective relative custodian has been a licensed child foster
354.31parent for at least six consecutive months, based on a determination that:
354.32(A) an expedited move to permanency is in the child's best interest;
354.33(B) expedited permanency cannot be completed without provision of guardianship
354.34assistance; and
355.1(C) the prospective relative custodian is uniquely qualified to meet the child's needs,
355.2as defined in section 260C.212, subdivision 2, on a permanent basis;
355.3(D) the child and prospective relative custodian meet the eligibility requirements
355.4of this section; and
355.5(E) efforts were made by the legally responsible agency to place the child with the
355.6prospective relative custodian as a licensed child foster parent for six consecutive months
355.7before permanency, or an explanation why these efforts were not in the child's best interests;
355.8(3) meet the agency determinations regarding permanency requirements in
355.9subdivision 2;
355.10(4) meet the applicable citizenship and immigration requirements in subdivision 3;
355.11(5) have been consulted regarding the proposed transfer of permanent legal and
355.12physical custody to a relative, if the child is at least 14 years of age or is expected to attain
355.1314 years of age prior to the transfer of permanent legal and physical custody; and
355.14(6) have a written, binding agreement under section 256N.25 among the caregiver or
355.15caregivers, the financially responsible agency, and the commissioner established prior to
355.16transfer of permanent legal and physical custody.
355.17(b) In addition to the requirements in paragraph (a), the child's prospective relative
355.18custodian or custodians must meet the applicable background study requirements in
355.19subdivision 4.
355.20(c) To be eligible for title IV-E guardianship assistance, a child must also meet any
355.21additional criteria in section 473(d) of the Social Security Act. The sibling of a child
355.22who meets the criteria for title IV-E guardianship assistance in section 473(d) of the
355.23Social Security Act is eligible for title IV-E guardianship assistance if the child and
355.24sibling are placed with the same prospective relative custodian or custodians, and the
355.25legally responsible agency, relatives, and commissioner agree on the appropriateness of
355.26the arrangement for the sibling. A child who meets all eligibility criteria except those
355.27specific to title IV-E guardianship assistance is entitled to guardianship assistance paid
355.28through funds other than title IV-E.

355.29    Sec. 17. Minnesota Statutes 2013 Supplement, section 256N.22, subdivision 2, is
355.30amended to read:
355.31    Subd. 2. Agency determinations regarding permanency. (a) To be eligible for
355.32guardianship assistance, the legally responsible agency must complete the following
355.33determinations regarding permanency for the child prior to the transfer of permanent
355.34legal and physical custody:
356.1(1) a determination that reunification and adoption are not appropriate permanency
356.2options for the child; and
356.3(2) a determination that the child demonstrates a strong attachment to the prospective
356.4relative custodian and the prospective relative custodian has a strong commitment to
356.5caring permanently for the child.
356.6(b) The legally responsible agency shall document the determinations in paragraph
356.7(a) and the eligibility requirements in this section that comply with United States Code,
356.8title 42, sections 673(d) and 675(1)(F). These determinations must be documented in a
356.9kinship placement agreement, which must be in the format prescribed by the commissioner
356.10and must be signed by the prospective relative custodian and the legally responsible
356.11agency. In the case of a Minnesota tribe, the determinations and eligibility requirements
356.12in this section may be provided in an alternative format approved by the commissioner.
356.13 Supporting information for completing each determination must be documented in the
356.14legally responsible agency's case file and make them available for review as requested
356.15by the financially responsible agency and the commissioner during the guardianship
356.16assistance eligibility determination process.

356.17    Sec. 18. Minnesota Statutes 2013 Supplement, section 256N.22, subdivision 4, is
356.18amended to read:
356.19    Subd. 4. Background study. (a) A background study under section 245C.33 must be
356.20completed on each prospective relative custodian and any other adult residing in the home
356.21of the prospective relative custodian. The background study must meet the requirements of
356.22United States Code, title 42, section 671(a)(20). A study completed under section 245C.33
356.23meets this requirement. A background study on the prospective relative custodian or adult
356.24residing in the household previously completed under section 245C.04 chapter 245C for the
356.25purposes of child foster care licensure may under chapter 245A or licensure by a Minnesota
356.26tribe, shall be used for the purposes of this section, provided that the background study is
356.27current meets the requirements of this subdivision and the prospective relative custodian is
356.28a licensed child foster parent at the time of the application for guardianship assistance.
356.29(b) If the background study reveals:
356.30(1) a felony conviction at any time for:
356.31(i) child abuse or neglect;
356.32(ii) spousal abuse;
356.33(iii) a crime against a child, including child pornography; or
356.34(iv) a crime involving violence, including rape, sexual assault, or homicide, but not
356.35including other physical assault or battery; or
357.1(2) a felony conviction within the past five years for:
357.2(i) physical assault;
357.3(ii) battery; or
357.4(iii) a drug-related offense;
357.5the prospective relative custodian is prohibited from receiving guardianship assistance
357.6on behalf of an otherwise eligible child.

357.7    Sec. 19. Minnesota Statutes 2013 Supplement, section 256N.22, subdivision 6, is
357.8amended to read:
357.9    Subd. 6. Exclusions. (a) A child with a guardianship assistance agreement under
357.10Northstar Care for Children is not eligible for the Minnesota family investment program
357.11child-only grant under chapter 256J.
357.12(b) The commissioner shall not enter into a guardianship assistance agreement with:
357.13(1) a child's biological parent or stepparent;
357.14(2) an individual assuming permanent legal and physical custody of a child or the
357.15equivalent under tribal code without involvement of the child welfare system; or
357.16(3) an individual assuming permanent legal and physical custody of a child who was
357.17placed in Minnesota by another state or a tribe outside of Minnesota.

357.18    Sec. 20. Minnesota Statutes 2013 Supplement, section 256N.23, subdivision 1, is
357.19amended to read:
357.20    Subdivision 1. General eligibility requirements. (a) To be eligible for Northstar
357.21adoption assistance under this section, a child must:
357.22(1) be determined to be a child with special needs under subdivision 2;
357.23(2) meet the applicable citizenship and immigration requirements in subdivision 3;
357.24(3)(i) meet the criteria in section 473 of the Social Security Act; or
357.25(ii) have had foster care payments paid on the child's behalf while in out-of-home
357.26placement through the county social service agency or tribe and be either under the
357.27 tribal social service agency prior to the issuance of a court order transferring the child's
357.28 guardianship of to the commissioner or under the jurisdiction of a Minnesota tribe and
357.29adoption, according to tribal law, is in the child's documented permanency plan making
357.30the child a ward of the tribe; and
357.31(4) have a written, binding agreement under section 256N.25 among the adoptive
357.32parent, the financially responsible agency, or, if there is no financially responsible agency,
357.33the agency designated by the commissioner, and the commissioner established prior to
357.34finalization of the adoption.
358.1(b) In addition to the requirements in paragraph (a), an eligible child's adoptive parent
358.2or parents must meet the applicable background study requirements in subdivision 4.
358.3(c) A child who meets all eligibility criteria except those specific to title IV-E adoption
358.4assistance shall receive adoption assistance paid through funds other than title IV-E.
358.5(d) A child receiving Northstar kinship assistance payments under section 256N.22
358.6is eligible for Northstar adoption assistance when the criteria in paragraph (a) are met and
358.7the child's legal custodian is adopting the child.

358.8    Sec. 21. Minnesota Statutes 2013 Supplement, section 256N.23, subdivision 4, is
358.9amended to read:
358.10    Subd. 4. Background study. (a) A background study under section 259.41 must be
358.11completed on each prospective adoptive parent. and all other adults residing in the home.
358.12A background study must meet the requirements of United States Code, title 42, section
358.13671(a)(20). A study completed under section 245C.33 meets this requirement. If the
358.14prospective adoptive parent is a licensed child foster parent licensed under chapter 245A
358.15or by a Minnesota tribe, the background study previously completed for the purposes of
358.16child foster care licensure shall be used for the purpose of this section, provided that the
358.17background study meets all other requirements of this subdivision and the prospective
358.18adoptive parent is a licensed child foster parent at the time of the application for adoption
358.19assistance.
358.20(b) If the background study reveals:
358.21(1) a felony conviction at any time for:
358.22(i) child abuse or neglect;
358.23(ii) spousal abuse;
358.24(iii) a crime against a child, including child pornography; or
358.25(iv) a crime involving violence, including rape, sexual assault, or homicide, but not
358.26including other physical assault or battery; or
358.27(2) a felony conviction within the past five years for:
358.28(i) physical assault;
358.29(ii) battery; or
358.30(iii) a drug-related offense;
358.31the adoptive parent is prohibited from receiving adoption assistance on behalf of an
358.32otherwise eligible child.

358.33    Sec. 22. Minnesota Statutes 2013 Supplement, section 256N.24, subdivision 9, is
358.34amended to read:
359.1    Subd. 9. Timing of and requests for reassessments. Reassessments for an eligible
359.2child must be completed within 30 days of any of the following events:
359.3(1) for a child in continuous foster care, when six months have elapsed since
359.4completion of the last assessment the initial assessment, and annually thereafter;
359.5(2) for a child in continuous foster care, change of placement location;
359.6(3) for a child in foster care, at the request of the financially responsible agency or
359.7legally responsible agency;
359.8(4) at the request of the commissioner; or
359.9(5) at the request of the caregiver under subdivision 9 10.

359.10    Sec. 23. Minnesota Statutes 2013 Supplement, section 256N.24, subdivision 10,
359.11is amended to read:
359.12    Subd. 10. Caregiver requests for reassessments. (a) A caregiver may initiate
359.13a reassessment request for an eligible child in writing to the financially responsible
359.14agency or, if there is no financially responsible agency, the agency designated by the
359.15commissioner. The written request must include the reason for the request and the
359.16name, address, and contact information of the caregivers. For an eligible child with a
359.17guardianship assistance or adoption assistance agreement, The caregiver may request a
359.18reassessment if at least six months have elapsed since any previously requested review
359.19 previous assessment or reassessment. For an eligible foster child, a foster parent may
359.20request reassessment in less than six months with written documentation that there have
359.21been significant changes in the child's needs that necessitate an earlier reassessment.
359.22(b) A caregiver may request a reassessment of an at-risk child for whom a
359.23guardianship assistance or an adoption assistance agreement has been executed if the
359.24caregiver has satisfied the commissioner with written documentation from a qualified
359.25expert that the potential disability upon which eligibility for the agreement was based has
359.26manifested itself, consistent with section 256N.25, subdivision 3, paragraph (b).
359.27(c) If the reassessment cannot be completed within 30 days of the caregiver's request,
359.28the agency responsible for reassessment must notify the caregiver of the reason for the
359.29delay and a reasonable estimate of when the reassessment can be completed.
359.30(d) Notwithstanding any provision to the contrary in paragraph (a) or subdivision 9,
359.31when a Northstar kinship assistance agreement or adoption assistance agreement under
359.32section 256N.25 has been signed by all parties, no reassessment may be requested or
359.33conducted until the court finalizes the transfer of permanent legal and physical custody or
359.34finalizes the adoption, or the assistance agreement expires according to section 256N.25,
359.35subdivision 1.

360.1    Sec. 24. Minnesota Statutes 2013 Supplement, section 256N.25, subdivision 2, is
360.2amended to read:
360.3    Subd. 2. Negotiation of agreement. (a) When a child is determined to be eligible
360.4for guardianship assistance or adoption assistance, the financially responsible agency, or,
360.5if there is no financially responsible agency, the agency designated by the commissioner,
360.6must negotiate with the caregiver to develop an agreement under subdivision 1. If and when
360.7the caregiver and agency reach concurrence as to the terms of the agreement, both parties
360.8shall sign the agreement. The agency must submit the agreement, along with the eligibility
360.9determination outlined in sections 256N.22, subdivision 7, and 256N.23, subdivision 7, to
360.10the commissioner for final review, approval, and signature according to subdivision 1.
360.11(b) A monthly payment is provided as part of the adoption assistance or guardianship
360.12assistance agreement to support the care of children unless the child is eligible for adoption
360.13assistance and determined to be an at-risk child, in which case the special at-risk monthly
360.14payment under section 256N.26, subdivision 7, must no payment will be made unless and
360.15until the caregiver obtains written documentation from a qualified expert that the potential
360.16disability upon which eligibility for the agreement was based has manifested itself.
360.17(1) The amount of the payment made on behalf of a child eligible for guardianship
360.18assistance or adoption assistance is determined through agreement between the prospective
360.19relative custodian or the adoptive parent and the financially responsible agency, or, if there
360.20is no financially responsible agency, the agency designated by the commissioner, using
360.21the assessment tool established by the commissioner in section 256N.24, subdivision 2,
360.22and the associated benefit and payments outlined in section 256N.26. Except as provided
360.23under section 256N.24, subdivision 1, paragraph (c), the assessment tool establishes
360.24the monthly benefit level for a child under foster care. The monthly payment under a
360.25guardianship assistance agreement or adoption assistance agreement may be negotiated up
360.26to the monthly benefit level under foster care. In no case may the amount of the payment
360.27under a guardianship assistance agreement or adoption assistance agreement exceed the
360.28foster care maintenance payment which would have been paid during the month if the
360.29child with respect to whom the guardianship assistance or adoption assistance payment is
360.30made had been in a foster family home in the state.
360.31(2) The rate schedule for the agreement is determined based on the age of the
360.32child on the date that the prospective adoptive parent or parents or relative custodian or
360.33custodians sign the agreement.
360.34(3) The income of the relative custodian or custodians or adoptive parent or parents
360.35must not be taken into consideration when determining eligibility for guardianship
360.36assistance or adoption assistance or the amount of the payments under section 256N.26.
361.1(4) With the concurrence of the relative custodian or adoptive parent, the amount of
361.2the payment may be adjusted periodically using the assessment tool established by the
361.3commissioner in section 256N.24, subdivision 2, and the agreement renegotiated under
361.4subdivision 3 when there is a change in the child's needs or the family's circumstances.
361.5(5) The guardianship assistance or adoption assistance agreement of a child who is
361.6identified as at-risk receives the special at-risk monthly payment under section 256N.26,
361.7subdivision 7, unless and until the potential disability manifests itself, as documented by
361.8an appropriate professional, and the commissioner authorizes commencement of payment
361.9by modifying the agreement accordingly. A relative custodian or An adoptive parent
361.10of an at-risk child with a guardianship assistance or an adoption assistance agreement
361.11may request a reassessment of the child under section 256N.24, subdivision 9 10, and
361.12renegotiation of the guardianship assistance or adoption assistance agreement under
361.13subdivision 3 to include a monthly payment, if the caregiver has written documentation
361.14from a qualified expert that the potential disability upon which eligibility for the agreement
361.15was based has manifested itself. Documentation of the disability must be limited to
361.16evidence deemed appropriate by the commissioner.
361.17(c) For guardianship assistance agreements:
361.18(1) the initial amount of the monthly guardianship assistance payment must be
361.19equivalent to the foster care rate in effect at the time that the agreement is signed less any
361.20offsets under section 256N.26, subdivision 11, or a lesser negotiated amount if agreed to
361.21by the prospective relative custodian and specified in that agreement, unless the child is
361.22identified as at-risk or the guardianship assistance agreement is entered into when a child
361.23is under the age of six; and
361.24(2) an at-risk child must be assigned level A as outlined in section 256N.26 and
361.25receive the special at-risk monthly payment under section 256N.26, subdivision 7, unless
361.26and until the potential disability manifests itself, as documented by a qualified expert, and
361.27the commissioner authorizes commencement of payment by modifying the agreement
361.28accordingly; and
361.29(3) (2) the amount of the monthly payment for a guardianship assistance agreement
361.30for a child, other than an at-risk child, who is under the age of six must be as specified in
361.31section 256N.26, subdivision 5.
361.32(d) For adoption assistance agreements:
361.33(1) for a child in foster care with the prospective adoptive parent immediately prior
361.34to adoptive placement, the initial amount of the monthly adoption assistance payment
361.35must be equivalent to the foster care rate in effect at the time that the agreement is signed
361.36less any offsets in section 256N.26, subdivision 11, or a lesser negotiated amount if agreed
362.1to by the prospective adoptive parents and specified in that agreement, unless the child is
362.2identified as at-risk or the adoption assistance agreement is entered into when a child is
362.3under the age of six;
362.4(2) for an at-risk child who must be assigned level A as outlined in section
362.5256N.26 and receive the special at-risk monthly payment under section 256N.26,
362.6subdivision 7, no payment will be made unless and until the potential disability manifests
362.7itself, as documented by an appropriate professional, and the commissioner authorizes
362.8commencement of payment by modifying the agreement accordingly;
362.9(3) the amount of the monthly payment for an adoption assistance agreement for
362.10a child under the age of six, other than an at-risk child, must be as specified in section
362.11256N.26, subdivision 5 ;
362.12(4) for a child who is in the guardianship assistance program immediately prior
362.13to adoptive placement, the initial amount of the adoption assistance payment must be
362.14equivalent to the guardianship assistance payment in effect at the time that the adoption
362.15assistance agreement is signed or a lesser amount if agreed to by the prospective adoptive
362.16parent and specified in that agreement, unless the child is identified as an at-risk child; and
362.17(5) for a child who is not in foster care placement or the guardianship assistance
362.18program immediately prior to adoptive placement or negotiation of the adoption assistance
362.19agreement, the initial amount of the adoption assistance agreement must be determined
362.20using the assessment tool and process in this section and the corresponding payment
362.21amount outlined in section 256N.26.

362.22    Sec. 25. Minnesota Statutes 2013 Supplement, section 256N.25, subdivision 3, is
362.23amended to read:
362.24    Subd. 3. Renegotiation of agreement. (a) A relative custodian or adoptive
362.25parent of a child with a guardianship assistance or adoption assistance agreement may
362.26request renegotiation of the agreement when there is a change in the needs of the child
362.27or in the family's circumstances. When a relative custodian or adoptive parent requests
362.28renegotiation of the agreement, a reassessment of the child must be completed consistent
362.29with section 256N.24, subdivisions 9 and 10. If the reassessment indicates that the
362.30child's level has changed, the financially responsible agency or, if there is no financially
362.31responsible agency, the agency designated by the commissioner or the commissioner's
362.32designee, and the caregiver must renegotiate the agreement to include a payment with
362.33the level determined through the reassessment process. The agreement must not be
362.34renegotiated unless the commissioner, the financially responsible agency, and the caregiver
363.1mutually agree to the changes. The effective date of any renegotiated agreement must be
363.2determined by the commissioner.
363.3(b) A relative custodian or An adoptive parent of an at-risk child with a guardianship
363.4assistance or an adoption assistance agreement may request renegotiation of the agreement
363.5to include a monthly payment higher than the special at-risk monthly payment under
363.6section 256N.26, subdivision 7, if the caregiver has written documentation from a
363.7qualified expert that the potential disability upon which eligibility for the agreement
363.8was based has manifested itself. Documentation of the disability must be limited to
363.9evidence deemed appropriate by the commissioner. Prior to renegotiating the agreement, a
363.10reassessment of the child must be conducted as outlined in section 256N.24, subdivision
363.119 . The reassessment must be used to renegotiate the agreement to include an appropriate
363.12monthly payment. The agreement must not be renegotiated unless the commissioner, the
363.13financially responsible agency, and the caregiver mutually agree to the changes. The
363.14effective date of any renegotiated agreement must be determined by the commissioner.
363.15(c) Renegotiation of a guardianship assistance or adoption assistance agreement is
363.16required when one of the circumstances outlined in section 256N.26, subdivision 13,
363.17occurs.

363.18    Sec. 26. Minnesota Statutes 2013 Supplement, section 256N.26, subdivision 1, is
363.19amended to read:
363.20    Subdivision 1. Benefits. (a) There are three benefits under Northstar Care for
363.21Children: medical assistance, basic payment, and supplemental difficulty of care payment.
363.22(b) A child is eligible for medical assistance under subdivision 2.
363.23(c) A child is eligible for the basic payment under subdivision 3, except for a child
363.24assigned level A under section 256N.24, subdivision 1, because the child is determined to
363.25be an at-risk child receiving guardianship assistance or adoption assistance.
363.26(d) A child, including a foster child age 18 to 21, is eligible for an additional
363.27supplemental difficulty of care payment under subdivision 4, as determined by the
363.28assessment under section 256N.24.
363.29(e) An eligible child entering guardianship assistance or adoption assistance under
363.30the age of six receives a basic payment and supplemental difficulty of care payment as
363.31specified in subdivision 5.
363.32(f) A child transitioning in from a pre-Northstar Care for Children program under
363.33section 256N.28, subdivision 7, shall receive basic and difficulty of care supplemental
363.34payments according to those provisions.

364.1    Sec. 27. Minnesota Statutes 2013 Supplement, section 256N.27, subdivision 4, is
364.2amended to read:
364.3    Subd. 4. Nonfederal share. (a) The commissioner shall establish a percentage share
364.4of the maintenance payments, reduced by federal reimbursements under title IV-E of the
364.5Social Security Act, to be paid by the state and to be paid by the financially responsible
364.6agency.
364.7(b) These state and local shares must initially be calculated based on the ratio of the
364.8average appropriate expenditures made by the state and all financially responsible agencies
364.9during calendar years 2011, 2012, 2013, and 2014. For purposes of this calculation,
364.10appropriate expenditures for the financially responsible agencies must include basic and
364.11difficulty of care payments for foster care reduced by federal reimbursements, but not
364.12including any initial clothing allowance, administrative payments to child care agencies
364.13specified in section 317A.907, child care, or other support or ancillary expenditures. For
364.14purposes of this calculation, appropriate expenditures for the state shall include adoption
364.15assistance and relative custody assistance, reduced by federal reimbursements.
364.16(c) For each of the periods January 1, 2015, to June 30, 2016, and fiscal years 2017,
364.172018, and 2019, the commissioner shall adjust this initial percentage of state and local
364.18shares to reflect the relative expenditure trends during calendar years 2011, 2012, 2013, and
364.192014, taking into account appropriations for Northstar Care for Children and the turnover
364.20rates of the components. In making these adjustments, the commissioner's goal shall be to
364.21make these state and local expenditures other than the appropriations for Northstar Care
364.22for Children to be the same as they would have been had Northstar Care for Children not
364.23been implemented, or if that is not possible, proportionally higher or lower, as appropriate.
364.24Except for adjustments so that the costs of the phase-in are borne by the state, the state and
364.25local share percentages for fiscal year 2019 must be used for all subsequent years.

364.26    Sec. 28. Minnesota Statutes 2012, section 257.85, subdivision 11, is amended to read:
364.27    Subd. 11. Financial considerations. (a) Payment of relative custody assistance
364.28under a relative custody assistance agreement is subject to the availability of state funds
364.29and payments may be reduced or suspended on order of the commissioner if insufficient
364.30funds are available.
364.31(b) Upon receipt from a local agency of a claim for reimbursement, the commissioner
364.32shall reimburse the local agency in an amount equal to 100 percent of the relative custody
364.33assistance payments provided to relative custodians. The A local agency may not seek and
364.34the commissioner shall not provide reimbursement for the administrative costs associated
364.35with performing the duties described in subdivision 4.
365.1(c) For the purposes of determining eligibility or payment amounts under MFIP,
365.2relative custody assistance payments shall be excluded in determining the family's
365.3available income.
365.4(d) For expenditures made on or before December 31, 2014, upon receipt from a
365.5local agency of a claim for reimbursement, the commissioner shall reimburse the local
365.6agency in an amount equal to 100 percent of the relative custody assistance payments
365.7provided to relative custodians.
365.8(e) For expenditures made on or after January 1, 2015, upon receipt from a local
365.9agency of a claim for reimbursement, the commissioner shall reimburse the local agency as
365.10part of the Northstar Care for Children fiscal reconciliation process under section 256N.27.

365.11    Sec. 29. Minnesota Statutes 2012, section 260C.212, subdivision 1, is amended to read:
365.12    Subdivision 1. Out-of-home placement; plan. (a) An out-of-home placement plan
365.13shall be prepared within 30 days after any child is placed in foster care by court order or a
365.14voluntary placement agreement between the responsible social services agency and the
365.15child's parent pursuant to section 260C.227 or chapter 260D.
365.16    (b) An out-of-home placement plan means a written document which is prepared
365.17by the responsible social services agency jointly with the parent or parents or guardian
365.18of the child and in consultation with the child's guardian ad litem, the child's tribe, if the
365.19child is an Indian child, the child's foster parent or representative of the foster care facility,
365.20and, where appropriate, the child. For a child in voluntary foster care for treatment under
365.21chapter 260D, preparation of the out-of-home placement plan shall additionally include
365.22the child's mental health treatment provider. As appropriate, the plan shall be:
365.23    (1) submitted to the court for approval under section 260C.178, subdivision 7;
365.24    (2) ordered by the court, either as presented or modified after hearing, under section
365.25260C.178 , subdivision 7, or 260C.201, subdivision 6; and
365.26    (3) signed by the parent or parents or guardian of the child, the child's guardian ad
365.27litem, a representative of the child's tribe, the responsible social services agency, and, if
365.28possible, the child.
365.29    (c) The out-of-home placement plan shall be explained to all persons involved in its
365.30implementation, including the child who has signed the plan, and shall set forth:
365.31    (1) a description of the foster care home or facility selected, including how the
365.32out-of-home placement plan is designed to achieve a safe placement for the child in the
365.33least restrictive, most family-like, setting available which is in close proximity to the home
365.34of the parent or parents or guardian of the child when the case plan goal is reunification,
366.1and how the placement is consistent with the best interests and special needs of the child
366.2according to the factors under subdivision 2, paragraph (b);
366.3    (2) the specific reasons for the placement of the child in foster care, and when
366.4reunification is the plan, a description of the problems or conditions in the home of the
366.5parent or parents which necessitated removal of the child from home and the changes the
366.6parent or parents must make in order for the child to safely return home;
366.7    (3) a description of the services offered and provided to prevent removal of the child
366.8from the home and to reunify the family including:
366.9    (i) the specific actions to be taken by the parent or parents of the child to eliminate
366.10or correct the problems or conditions identified in clause (2), and the time period during
366.11which the actions are to be taken; and
366.12    (ii) the reasonable efforts, or in the case of an Indian child, active efforts to be made
366.13to achieve a safe and stable home for the child including social and other supportive
366.14services to be provided or offered to the parent or parents or guardian of the child, the
366.15child, and the residential facility during the period the child is in the residential facility;
366.16    (4) a description of any services or resources that were requested by the child or the
366.17child's parent, guardian, foster parent, or custodian since the date of the child's placement
366.18in the residential facility, and whether those services or resources were provided and if
366.19not, the basis for the denial of the services or resources;
366.20    (5) the visitation plan for the parent or parents or guardian, other relatives as defined
366.21in section 260C.007, subdivision 27, and siblings of the child if the siblings are not placed
366.22together in foster care, and whether visitation is consistent with the best interest of the
366.23child, during the period the child is in foster care;
366.24    (6) when a child cannot return to or be in the care of either parent, documentation of
366.25steps to finalize the permanency plan for the child, including:
366.26    (i) reasonable efforts to place the child for adoption or legal guardianship of the child
366.27if the court has issued an order terminating the rights of both parents of the child or of the
366.28only known, living parent of the child. At a minimum, the documentation must include
366.29consideration of whether adoption is in the best interests of the child, child-specific
366.30recruitment efforts such as relative search and the use of state, regional, and national
366.31adoption exchanges to facilitate orderly and timely placements in and outside of the state.
366.32A copy of this documentation shall be provided to the court in the review required under
366.33section 260C.317, subdivision 3, paragraph (b); and
366.34    (ii) documentation necessary to support the requirements of the kinship placement
366.35agreement under section 256N.22 when adoption is determined not to be in the child's
366.36best interests;
367.1    (7) efforts to ensure the child's educational stability while in foster care, including:
367.2(i) efforts to ensure that the child remains in the same school in which the child was
367.3enrolled prior to placement or upon the child's move from one placement to another,
367.4including efforts to work with the local education authorities to ensure the child's
367.5educational stability; or
367.6(ii) if it is not in the child's best interest to remain in the same school that the child
367.7was enrolled in prior to placement or move from one placement to another, efforts to
367.8ensure immediate and appropriate enrollment for the child in a new school;
367.9(8) the educational records of the child including the most recent information
367.10available regarding:
367.11    (i) the names and addresses of the child's educational providers;
367.12    (ii) the child's grade level performance;
367.13    (iii) the child's school record;
367.14    (iv) a statement about how the child's placement in foster care takes into account
367.15proximity to the school in which the child is enrolled at the time of placement; and
367.16(v) any other relevant educational information;
367.17    (9) the efforts by the local agency to ensure the oversight and continuity of health
367.18care services for the foster child, including:
367.19(i) the plan to schedule the child's initial health screens;
367.20(ii) how the child's known medical problems and identified needs from the screens,
367.21including any known communicable diseases, as defined in section 144.4172, subdivision
367.222, will be monitored and treated while the child is in foster care;
367.23(iii) how the child's medical information will be updated and shared, including
367.24the child's immunizations;
367.25(iv) who is responsible to coordinate and respond to the child's health care needs,
367.26including the role of the parent, the agency, and the foster parent;
367.27(v) who is responsible for oversight of the child's prescription medications;
367.28(vi) how physicians or other appropriate medical and nonmedical professionals
367.29will be consulted and involved in assessing the health and well-being of the child and
367.30determine the appropriate medical treatment for the child; and
367.31(vii) the responsibility to ensure that the child has access to medical care through
367.32either medical insurance or medical assistance;
367.33(10) the health records of the child including information available regarding:
367.34(i) the names and addresses of the child's health care and dental care providers;
367.35(ii) a record of the child's immunizations;
368.1(iii) the child's known medical problems, including any known communicable
368.2diseases as defined in section 144.4172, subdivision 2;
368.3(iv) the child's medications; and
368.4(v) any other relevant health care information such as the child's eligibility for
368.5medical insurance or medical assistance;
368.6(11) an independent living plan for a child age 16 or older. The plan should include,
368.7but not be limited to, the following objectives:
368.8    (i) educational, vocational, or employment planning;
368.9    (ii) health care planning and medical coverage;
368.10    (iii) transportation including, where appropriate, assisting the child in obtaining a
368.11driver's license;
368.12    (iv) money management, including the responsibility of the agency to ensure that
368.13the youth annually receives, at no cost to the youth, a consumer report as defined under
368.14section 13C.001 and assistance in interpreting and resolving any inaccuracies in the report;
368.15    (v) planning for housing;
368.16    (vi) social and recreational skills; and
368.17    (vii) establishing and maintaining connections with the child's family and
368.18community; and
368.19    (12) for a child in voluntary foster care for treatment under chapter 260D, diagnostic
368.20and assessment information, specific services relating to meeting the mental health care
368.21needs of the child, and treatment outcomes.
368.22    (d) The parent or parents or guardian and the child each shall have the right to legal
368.23counsel in the preparation of the case plan and shall be informed of the right at the time
368.24of placement of the child. The child shall also have the right to a guardian ad litem.
368.25If unable to employ counsel from their own resources, the court shall appoint counsel
368.26upon the request of the parent or parents or the child or the child's legal guardian. The
368.27parent or parents may also receive assistance from any person or social services agency
368.28in preparation of the case plan.
368.29    After the plan has been agreed upon by the parties involved or approved or ordered
368.30by the court, the foster parents shall be fully informed of the provisions of the case plan
368.31and shall be provided a copy of the plan.
368.32    Upon discharge from foster care, the parent, adoptive parent, or permanent legal and
368.33physical custodian, as appropriate, and the child, if appropriate, must be provided with
368.34a current copy of the child's health and education record.

368.35    Sec. 30. Minnesota Statutes 2012, section 260C.515, subdivision 4, is amended to read:
369.1    Subd. 4. Custody to relative. The court may order permanent legal and physical
369.2custody to a fit and willing relative in the best interests of the child according to the
369.3following conditions requirements:
369.4(1) an order for transfer of permanent legal and physical custody to a relative shall
369.5only be made after the court has reviewed the suitability of the prospective legal and
369.6physical custodian;
369.7(2) in transferring permanent legal and physical custody to a relative, the juvenile
369.8court shall follow the standards applicable under this chapter and chapter 260, and the
369.9procedures in the Minnesota Rules of Juvenile Protection Procedure;
369.10(3) a transfer of legal and physical custody includes responsibility for the protection,
369.11education, care, and control of the child and decision making on behalf of the child;
369.12(4) a permanent legal and physical custodian may not return a child to the permanent
369.13care of a parent from whom the court removed custody without the court's approval and
369.14without notice to the responsible social services agency;
369.15(5) the social services agency may file a petition naming a fit and willing relative as
369.16a proposed permanent legal and physical custodian. A petition for transfer of permanent
369.17legal and physical custody to a relative who is not a parent shall be accompanied by a
369.18kinship placement agreement under section 256N.22, subdivision 2, between the agency
369.19and proposed permanent legal and physical custodian;
369.20(6) another party to the permanency proceeding regarding the child may file a
369.21petition to transfer permanent legal and physical custody to a relative, but the. The petition
369.22must include facts upon which the court can make the determination required under clause
369.23(7) and must be filed not later than the date for the required admit-deny hearing under
369.24section 260C.507; or if the agency's petition is filed under section 260C.503, subdivision
369.252 , the petition must be filed not later than 30 days prior to the trial required under section
369.26260C.509 ; and
369.27(7) where a petition is for transfer of permanent legal and physical custody to a
369.28relative who is not a parent, the court must find that:
369.29(i) transfer of permanent legal and physical custody and receipt of Northstar kinship
369.30assistance under chapter 256N, when requested and the child is eligible, is in the child's
369.31best interests;
369.32(ii) adoption is not in the child's best interests based on the determinations in the
369.33kinship placement agreement required under section 256N.22, subdivision 2;
369.34(iii) the agency made efforts to discuss adoption with the child's parent or parents,
369.35or the agency did not make efforts to discuss adoption and the reasons why efforts were
369.36not made; and
370.1(iv) there are reasons to separate siblings during placement, if applicable;
370.2(8) the court may defer finalization of an order transferring permanent legal and
370.3physical custody to a relative when deferring finalization is necessary to determine
370.4eligibility for Northstar kinship assistance under chapter 256N;
370.5(9) the court may finalize a permanent transfer of physical and legal custody to a
370.6relative regardless of eligibility for Northstar kinship assistance under chapter 256N; and
370.7(7) (10) the juvenile court may maintain jurisdiction over the responsible social
370.8services agency, the parents or guardian of the child, the child, and the permanent legal
370.9and physical custodian for purposes of ensuring appropriate services are delivered to the
370.10child and permanent legal custodian for the purpose of ensuring conditions ordered by the
370.11court related to the care and custody of the child are met.

370.12    Sec. 31. Minnesota Statutes 2012, section 260C.611, is amended to read:
370.13260C.611 ADOPTION STUDY REQUIRED.
370.14(a) An adoption study under section 259.41 approving placement of the child in the
370.15home of the prospective adoptive parent shall be completed before placing any child under
370.16the guardianship of the commissioner in a home for adoption. If a prospective adoptive
370.17parent has a current child foster care license under chapter 245A and is seeking to adopt
370.18a foster child who is placed in the prospective adoptive parent's home and is under the
370.19guardianship of the commissioner according to section 260C.325, subdivision 1, the child
370.20foster care home study meets the requirements of this section for an approved adoption
370.21home study if:
370.22(1) the written home study on which the foster care license was based is completed
370.23in the commissioner's designated format, consistent with the requirements in sections
370.24259.41, subdivision 2; and 260C.215, subdivision 4, clause (5); and Minnesota Rules,
370.25part 2960.3060, subpart 4;
370.26(2) the background studies on each prospective adoptive parent and all required
370.27household members were completed according to section 245C.33;
370.28(3) the commissioner has not issued, within the last three years, a sanction on the
370.29license under section 245A.07 or an order of a conditional license under section 245A.06;
370.30and
370.31(4) the legally responsible agency determines that the individual needs of the child
370.32are being met by the prospective adoptive parent through an assessment under section
370.33256N.24, subdivision 2, or a documented placement decision consistent with section
370.34260C.212, subdivision 2.
371.1(b) If a prospective adoptive parent has previously held a foster care license or
371.2adoptive home study, any update necessary to the foster care license, or updated or new
371.3adoptive home study, if not completed by the licensing authority responsible for the
371.4previous license or home study, shall include collateral information from the previous
371.5licensing or approving agency, if available.

371.6    Sec. 32. PARENT AWARE QUALITY RATING AND IMPROVEMENT
371.7SYSTEM ACCESSIBILITY REPORT.
371.8    Subdivision 1. Recommendations. The commissioner of human services, in
371.9consultation with representatives from the child care and early childhood advocacy
371.10community, child care provider organizations, child care providers, organizations
371.11administering Parent Aware, the Departments of Education and Health, counties, and
371.12parents, shall make recommendations to the members of the legislative committees having
371.13jurisdiction over health and human services provisions and funding on increasing statewide
371.14accessibility for child care providers to the Parent Aware quality rating and improvement
371.15system and for increasing access to Parent Aware-rated programs for families with
371.16children. The recommendations must address the following factors impacting accessibility:
371.17(1) availability of rated and nonrated programs by child care provider type, within
371.18rural and underserved areas, and for different cultural and non-English-speaking groups;
371.19(2) time and resources necessary for child care providers to participate in Parent
371.20Aware at various rating levels, including cultural and linguistic considerations;
371.21(3) federal child care development fund regulations; and
371.22(4) other factors as determined by the commissioner.
371.23    Subd. 2. Report. By February 15, 2015, the commissioner of human services
371.24shall report to the legislative committees with jurisdiction over the child care
371.25assistance programs and the Parent Aware quality rating and improvement system with
371.26recommendations to increase access for families and child care providers to Parent Aware,
371.27including benchmarks for achieving the maximum participation in Parent Aware-rated
371.28child care programs by families receiving child care assistance.
371.29EFFECTIVE DATE.This section is effective the day following final enactment.

371.30    Sec. 33. RECOMMENDATIONS FOR CULTURALLY APPROPRIATE
371.31OUTREACH.
371.32The Cultural and Ethnic Communities Leadership Council under Laws 2013,
371.33chapter 107, article 2, section 1, shall review with the commissioner of human services
372.1the department's existing competencies and strategies and provide recommendations on
372.2improving internal competencies for culturally appropriate outreach to New American
372.3community providers impacted by Minnesota Statutes, section 119B.09, subdivision 9a.

372.4    Sec. 34. REVISOR'S INSTRUCTION.
372.5The revisor of statutes shall change the term "guardianship assistance" to "Northstar
372.6kinship assistance" wherever it appears in Minnesota Statutes and Minnesota Rules to
372.7refer to the program components related to Northstar Care for Children under Minnesota
372.8Statutes, chapter 256N.

372.9    Sec. 35. REPEALER.
372.10Minnesota Statutes 2013 Supplement, section 256N.26, subdivision 7, is repealed.

372.11ARTICLE 26

372.12COMMUNITY FIRST SERVICES AND SUPPORTS

372.13    Section 1. Minnesota Statutes 2012, section 245C.03, is amended by adding a
372.14subdivision to read:
372.15    Subd. 8. Community first services and supports organizations. The
372.16commissioner shall conduct background studies on any individual required under section
372.17256B.85 to have a background study completed under this chapter.

372.18    Sec. 2. Minnesota Statutes 2012, section 245C.04, is amended by adding a subdivision
372.19to read:
372.20    Subd. 7. Community first services and supports organizations. (a) The
372.21commissioner shall conduct a background study of an individual required to be studied
372.22under section 245C.03, subdivision 8, at least upon application for initial enrollment
372.23under section 256B.85.
372.24(b) Before an individual described in section 245C.03, subdivision 8, begins a
372.25position allowing direct contact with a person served by an organization required to initiate
372.26a background study under section 256B.85, the organization must receive a notice from
372.27the commissioner that the support worker is:
372.28(1) not disqualified under section 245C.14; or
372.29(2) disqualified, but the individual has received a set-aside of the disqualification
372.30under section 245C.22.

373.1    Sec. 3. Minnesota Statutes 2012, section 245C.10, is amended by adding a subdivision
373.2to read:
373.3    Subd. 10. Community first services and supports organizations. The
373.4commissioner shall recover the cost of background studies initiated by an agency-provider
373.5delivering services under section 256B.85, subdivision 11, or a financial management
373.6services contractor providing service functions under section 256B.85, subdivision 13,
373.7through a fee of no more than $20 per study, charged to the organization responsible for
373.8submitting the background study form. The fees collected under this subdivision are
373.9appropriated to the commissioner for the purpose of conducting background studies.

373.10    Sec. 4. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 2, is
373.11amended to read:
373.12    Subd. 2. Definitions. (a) For the purposes of this section, the terms defined in
373.13this subdivision have the meanings given.
373.14(b) "Activities of daily living" or "ADLs" means eating, toileting, grooming,
373.15dressing, bathing, mobility, positioning, and transferring.
373.16(c) "Agency-provider model" means a method of CFSS under which a qualified
373.17agency provides services and supports through the agency's own employees and policies.
373.18The agency must allow the participant to have a significant role in the selection and
373.19dismissal of support workers of their choice for the delivery of their specific services
373.20and supports.
373.21(d) "Behavior" means a description of a need for services and supports used to
373.22determine the home care rating and additional service units. The presence of Level I
373.23behavior is used to determine the home care rating. "Level I behavior" means physical
373.24aggression towards self or others or destruction of property that requires the immediate
373.25response of another person. If qualified for a home care rating as described in subdivision
373.268, additional service units can be added as described in subdivision 8, paragraph (f), for
373.27the following behaviors:
373.28(1) Level I behavior;
373.29(2) increased vulnerability due to cognitive deficits or socially inappropriate
373.30behavior; or
373.31(3) increased need for assistance for recipients participants who are verbally
373.32aggressive or resistive to care so that time needed to perform activities of daily living is
373.33increased.
374.1(e) "Budget model" means a service delivery method of CFSS that allows the use of
374.2a service budget and assistance from a financial management services (FMS) contractor
374.3for a participant to directly employ support workers and purchase supports and goods.
374.4(e) (f) "Complex health-related needs" means an intervention listed in clauses (1)
374.5to (8) that has been ordered by a physician, and is specified in a community support
374.6plan, including:
374.7(1) tube feedings requiring:
374.8(i) a gastrojejunostomy tube; or
374.9(ii) continuous tube feeding lasting longer than 12 hours per day;
374.10(2) wounds described as:
374.11(i) stage III or stage IV;
374.12(ii) multiple wounds;
374.13(iii) requiring sterile or clean dressing changes or a wound vac; or
374.14(iv) open lesions such as burns, fistulas, tube sites, or ostomy sites that require
374.15specialized care;
374.16(3) parenteral therapy described as:
374.17(i) IV therapy more than two times per week lasting longer than four hours for
374.18each treatment; or
374.19(ii) total parenteral nutrition (TPN) daily;
374.20(4) respiratory interventions, including:
374.21(i) oxygen required more than eight hours per day;
374.22(ii) respiratory vest more than one time per day;
374.23(iii) bronchial drainage treatments more than two times per day;
374.24(iv) sterile or clean suctioning more than six times per day;
374.25(v) dependence on another to apply respiratory ventilation augmentation devices
374.26such as BiPAP and CPAP; and
374.27(vi) ventilator dependence under section 256B.0652;
374.28(5) insertion and maintenance of catheter, including:
374.29(i) sterile catheter changes more than one time per month;
374.30(ii) clean intermittent catheterization, and including self-catheterization more than
374.31six times per day; or
374.32(iii) bladder irrigations;
374.33(6) bowel program more than two times per week requiring more than 30 minutes to
374.34perform each time;
374.35(7) neurological intervention, including:
375.1(i) seizures more than two times per week and requiring significant physical
375.2assistance to maintain safety; or
375.3(ii) swallowing disorders diagnosed by a physician and requiring specialized
375.4assistance from another on a daily basis; and
375.5(8) other congenital or acquired diseases creating a need for significantly increased
375.6direct hands-on assistance and interventions in six to eight activities of daily living.
375.7(f) (g) "Community first services and supports" or "CFSS" means the assistance and
375.8supports program under this section needed for accomplishing activities of daily living,
375.9instrumental activities of daily living, and health-related tasks through hands-on assistance
375.10to accomplish the task or constant supervision and cueing to accomplish the task, or the
375.11purchase of goods as defined in subdivision 7, paragraph (a), clause (3), that replace
375.12the need for human assistance.
375.13(g) (h) "Community first services and supports service delivery plan" or "service
375.14delivery plan" means a written summary of document detailing the services and supports
375.15chosen by the participant to meet assessed needs that is are within the approved CFSS
375.16service authorization amount. Services and supports are based on the community support
375.17plan identified in section 256B.0911 and coordinated services and support plan and budget
375.18identified in section 256B.0915, subdivision 6, if applicable, that is determined by the
375.19participant to meet the assessed needs, using a person-centered planning process.
375.20(i) "Consultation services" means a Minnesota health care program enrolled provider
375.21organization that is under contract with the department and has the knowledge, skills,
375.22and ability to assist CFSS participants in using either the agency-provider model under
375.23subdivision 11 or the budget model under subdivision 13.
375.24(h) (j) "Critical activities of daily living" means transferring, mobility, eating, and
375.25toileting.
375.26(i) (k) "Dependency" in activities of daily living means a person requires hands-on
375.27assistance or constant supervision and cueing to accomplish one or more of the activities
375.28of daily living every day or on the days during the week that the activity is performed;
375.29however, a child may not be found to be dependent in an activity of daily living if,
375.30because of the child's age, an adult would either perform the activity for the child or assist
375.31the child with the activity and the assistance needed is the assistance appropriate for
375.32a typical child of the same age.
375.33(j) (l) "Extended CFSS" means CFSS services and supports under the
375.34 agency-provider model included in a service plan through one of the home and
375.35community-based services waivers and as approved and authorized under sections
376.1256B.0915 ; 256B.092, subdivision 5; and 256B.49, which exceed the amount, duration,
376.2and frequency of the state plan CFSS services for participants.
376.3(k) (m) "Financial management services contractor or vendor" or "FMS contractor"
376.4 means a qualified organization having required for participants using the budget model
376.5under subdivision 13 that has a written contract with the department to provide vendor
376.6fiscal/employer agent financial management services necessary to use the budget model
376.7under subdivision 13 that (FMS). Services include but are not limited to: participant
376.8education and technical assistance; CFSS service delivery planning and budgeting;
376.9 filing and payment of federal and state payroll taxes on behalf of the participant;
376.10initiating criminal background checks; billing, making payments, and for approved CFSS
376.11services with authorized funds; monitoring of spending expenditures; accounting for
376.12and disbursing CFSS funds; providing assistance in obtaining and filing for liability,
376.13workers' compensation, and unemployment coverage; and assisting providing participant
376.14instruction and technical assistance to the participant in fulfilling employer-related
376.15requirements in accordance with Section 3504 of the Internal Revenue Code and the
376.16Internal Revenue Service Revenue Procedure 70-6 related regulations and interpretations,
376.17including Code of Federal Regulations, title 26, section 31.3504-1.
376.18(l) "Budget model" means a service delivery method of CFSS that allows the use of
376.19an individualized CFSS service delivery plan and service budget and provides assistance
376.20from the financial management services contractor to facilitate participant employment of
376.21support workers and the acquisition of supports and goods.
376.22(m) (n) "Health-related procedures and tasks" means procedures and tasks related
376.23to the specific needs of an individual that can be delegated taught or assigned by a
376.24state-licensed healthcare or mental health professional and performed by a support worker.
376.25(n) (o) "Instrumental activities of daily living" means activities related to
376.26living independently in the community, including but not limited to: meal planning,
376.27preparation, and cooking; shopping for food, clothing, or other essential items; laundry;
376.28housecleaning; assistance with medications; managing finances; communicating needs
376.29and preferences during activities; arranging supports; and assistance with traveling around
376.30and participating in the community.
376.31(o) (p) "Legal representative" means parent of a minor, a court-appointed guardian,
376.32or another representative with legal authority to make decisions about services and
376.33supports for the participant. Other representatives with legal authority to make decisions
376.34include but are not limited to a health care agent or an attorney-in-fact authorized through
376.35a health care directive or power of attorney.
377.1(p) (q) "Medication assistance" means providing verbal or visual reminders to take
377.2regularly scheduled medication, and includes any of the following supports listed in clauses
377.3(1) to (3) and other types of assistance, except that a support worker may not determine
377.4medication dose or time for medication or inject medications into veins, muscles, or skin:
377.5(1) under the direction of the participant or the participant's representative, bringing
377.6medications to the participant including medications given through a nebulizer, opening a
377.7container of previously set-up medications, emptying the container into the participant's
377.8hand, opening and giving the medication in the original container to the participant, or
377.9bringing to the participant liquids or food to accompany the medication;
377.10(2) organizing medications as directed by the participant or the participant's
377.11representative; and
377.12(3) providing verbal or visual reminders to perform regularly scheduled medications.
377.13(q) (r) "Participant's representative" means a parent, family member, advocate,
377.14or other adult authorized by the participant to serve as a representative in connection
377.15with the provision of CFSS. This authorization must be in writing or by another method
377.16that clearly indicates the participant's free choice. The participant's representative must
377.17have no financial interest in the provision of any services included in the participant's
377.18service delivery plan and must be capable of providing the support necessary to assist
377.19the participant in the use of CFSS. If through the assessment process described in
377.20subdivision 5 a participant is determined to be in need of a participant's representative, one
377.21must be selected. If the participant is unable to assist in the selection of a participant's
377.22representative, the legal representative shall appoint one. Two persons may be designated
377.23as a participant's representative for reasons such as divided households and court-ordered
377.24custodies. Duties of a participant's representatives may include:
377.25(1) being available while care is services are provided in a method agreed upon by
377.26the participant or the participant's legal representative and documented in the participant's
377.27CFSS service delivery plan;
377.28(2) monitoring CFSS services to ensure the participant's CFSS service delivery
377.29plan is being followed; and
377.30(3) reviewing and signing CFSS time sheets after services are provided to provide
377.31verification of the CFSS services.
377.32(r) (s) "Person-centered planning process" means a process that is directed by the
377.33participant to plan for services and supports. The person-centered planning process must:
377.34(1) include people chosen by the participant;
378.1(2) provide necessary information and support to ensure that the participant directs
378.2the process to the maximum extent possible, and is enabled to make informed choices
378.3and decisions;
378.4(3) be timely and occur at time and locations of convenience to the participant;
378.5(4) reflect cultural considerations of the participant;
378.6(5) include strategies for solving conflict or disagreement within the process,
378.7including clear conflict-of-interest guidelines for all planning;
378.8(6) provide the participant choices of the services and supports they receive and the
378.9staff providing those services and supports;
378.10(7) include a method for the participant to request updates to the plan; and
378.11(8) record the alternative home and community-based settings that were considered
378.12by the participant.
378.13(s) (t) "Shared services" means the provision of CFSS services by the same CFSS
378.14support worker to two or three participants who voluntarily enter into an agreement to
378.15receive services at the same time and in the same setting by the same provider employer.
378.16(t) "Support specialist" means a professional with the skills and ability to assist the
378.17participant using either the agency-provider model under subdivision 11 or the flexible
378.18spending model under subdivision 13, in services including but not limited to assistance
378.19regarding:
378.20(1) the development, implementation, and evaluation of the CFSS service delivery
378.21plan under subdivision 6;
378.22(2) recruitment, training, or supervision, including supervision of health-related tasks
378.23or behavioral supports appropriately delegated or assigned by a health care professional,
378.24and evaluation of support workers; and
378.25(3) facilitating the use of informal and community supports, goods, or resources.
378.26(u) "Support worker" means an a qualified and trained employee of the agency
378.27provider agency-provider or of the participant employer under the budget model who
378.28has direct contact with the participant and provides services as specified within the
378.29participant's service delivery plan.
378.30(v) "Wages and benefits" means the hourly wages and salaries, the employer's
378.31share of FICA taxes, Medicare taxes, state and federal unemployment taxes, workers'
378.32compensation, mileage reimbursement, health and dental insurance, life insurance,
378.33disability insurance, long-term care insurance, uniform allowance, contributions to
378.34employee retirement accounts, or other forms of employee compensation and benefits.
378.35(w) "Worker training and development" means services for developing workers'
378.36skills as required by the participant's individual CFSS delivery plan that are arranged for
379.1or provided by the agency-provider or purchased by the participant employer. These
379.2services include training, education, direct observation and supervision, and evaluation
379.3and coaching of job skills and tasks, including supervision of health-related tasks or
379.4behavioral supports.

379.5    Sec. 5. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 3, is
379.6amended to read:
379.7    Subd. 3. Eligibility. (a) CFSS is available to a person who meets one of the
379.8following:
379.9(1) is a recipient an enrollee of medical assistance as determined under section
379.10256B.055 , 256B.056, or 256B.057, subdivisions 5 and 9;
379.11(2) is a recipient of participant in the alternative care program under section
379.12256B.0913 ;
379.13(3) is a waiver recipient participant as defined under section 256B.0915, 256B.092,
379.14256B.093 , or 256B.49; or
379.15(4) has medical services identified in a participant's individualized education
379.16program and is eligible for services as determined in section 256B.0625, subdivision 26.
379.17(b) In addition to meeting the eligibility criteria in paragraph (a), a person must also
379.18meet all of the following:
379.19(1) require assistance and be determined dependent in one activity of daily living or
379.20Level I behavior based on assessment under section 256B.0911; and
379.21(2) is not a recipient of participant under a family support grant under section 252.32;.
379.22(3) lives in the person's own apartment or home including a family foster care setting
379.23licensed under chapter 245A, but not in corporate foster care under chapter 245A; or a
379.24noncertified boarding care home or a boarding and lodging establishment under chapter
379.25157.

379.26    Sec. 6. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 5, is
379.27amended to read:
379.28    Subd. 5. Assessment requirements. (a) The assessment of functional need must:
379.29(1) be conducted by a certified assessor according to the criteria established in
379.30section 256B.0911, subdivision 3a;
379.31(2) be conducted face-to-face, initially and at least annually thereafter, or when there
379.32is a significant change in the participant's condition or a change in the need for services
379.33and supports, or at the request of the participant when the participant experiences a change
379.34in condition or needs a change in the services or supports; and
380.1(3) be completed using the format established by the commissioner.
380.2(b) A participant who is residing in a facility may be assessed and choose CFSS for
380.3the purpose of using CFSS to return to the community as described in subdivisions 3
380.4and 7, paragraph (a), clause (5).
380.5(c) (b) The results of the assessment and any recommendations and authorizations
380.6for CFSS must be determined and communicated in writing by the lead agency's certified
380.7assessor as defined in section 256B.0911 to the participant and the agency-provider or
380.8financial management services provider FMS contractor chosen by the participant within
380.940 calendar days and must include the participant's right to appeal under section 256.045,
380.10subdivision 3 .
380.11(d) (c) The lead agency assessor may request authorize a temporary authorization
380.12for CFSS services to be provided under the agency-provider model. Authorization for
380.13a temporary level of CFSS services under the agency-provider model is limited to the
380.14time specified by the commissioner, but shall not exceed 45 days. The level of services
380.15authorized under this provision paragraph shall have no bearing on a future authorization.
380.16 Participants approved for a temporary authorization shall access the consultation service
380.17to complete their orientation and selection of a service model.

380.18    Sec. 7. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 6, is
380.19amended to read:
380.20    Subd. 6. Community first services and support service delivery plan. (a) The
380.21CFSS service delivery plan must be developed, implemented, and evaluated through a
380.22person-centered planning process by the participant, or the participant's representative
380.23or legal representative who may be assisted by a support specialist consultation services
380.24provider. The CFSS service delivery plan must reflect the services and supports that
380.25are important to the participant and for the participant to meet the needs assessed
380.26by the certified assessor and identified in the community support plan under section
380.27256B.0911, subdivision 3 , or the coordinated services and support plan identified in
380.28section 256B.0915, subdivision 6, if applicable. The CFSS service delivery plan must be
380.29reviewed by the participant, the consultation services provider, and the agency-provider
380.30or financial management services FMS contractor prior to starting services and at least
380.31annually upon reassessment, or when there is a significant change in the participant's
380.32condition, or a change in the need for services and supports.
380.33(b) The commissioner shall establish the format and criteria for the CFSS service
380.34delivery plan.
380.35(c) The CFSS service delivery plan must be person-centered and:
381.1(1) specify the consultation services provider, agency-provider, or financial
381.2management services FMS contractor selected by the participant;
381.3(2) reflect the setting in which the participant resides that is chosen by the participant;
381.4(3) reflect the participant's strengths and preferences;
381.5(4) include the means to address the clinical and support needs as identified through
381.6an assessment of functional needs;
381.7(5) include individually identified goals and desired outcomes;
381.8(6) reflect the services and supports, paid and unpaid, that will assist the participant
381.9to achieve identified goals, including the costs of the services and supports, and the
381.10providers of those services and supports, including natural supports;
381.11(7) identify the amount and frequency of face-to-face supports and amount and
381.12frequency of remote supports and technology that will be used;
381.13(8) identify risk factors and measures in place to minimize them, including
381.14individualized backup plans;
381.15(9) be understandable to the participant and the individuals providing support;
381.16(10) identify the individual or entity responsible for monitoring the plan;
381.17(11) be finalized and agreed to in writing by the participant and signed by all
381.18individuals and providers responsible for its implementation;
381.19(12) be distributed to the participant and other people involved in the plan; and
381.20(13) prevent the provision of unnecessary or inappropriate care.;
381.21(14) include a detailed budget for expenditures for budget model participants or
381.22participants under the agency-provider model if purchasing goods; and
381.23(15) include a plan for worker training and development detailing what service
381.24components will be used, when the service components will be used, how they will be
381.25provided, and how these service components relate to the participant's individual needs
381.26and CFSS support worker services.
381.27(d) The total units of agency-provider services or the service budget allocation
381.28 amount for the budget model include both annual totals and a monthly average amount
381.29that cover the number of months of the service authorization. The amount used each
381.30month may vary, but additional funds must not be provided above the annual service
381.31authorization amount unless a change in condition is assessed and authorized by the
381.32certified assessor and documented in the community support plan, coordinated services
381.33and supports plan, and CFSS service delivery plan.
381.34(e) In assisting with the development or modification of the plan during the
381.35authorization time period, the consultation services provider shall:
381.36(1) consult with the FMS contractor on the spending budget when applicable; and
382.1(2) consult with the participant or participant's representative, agency-provider, and
382.2case manager/care coordinator.
382.3(f) The service plan must be approved by the consultation services provider for
382.4participants without a case manager/care coordinator. A case manager/care coordinator
382.5must approve the plan for a waiver or alternative care program participant.

382.6    Sec. 8. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 7, is
382.7amended to read:
382.8    Subd. 7. Community first services and supports; covered services. Within the
382.9service unit authorization or service budget allocation amount, services and supports
382.10covered under CFSS include:
382.11(1) assistance to accomplish activities of daily living (ADLs), instrumental activities
382.12of daily living (IADLs), and health-related procedures and tasks through hands-on
382.13assistance to accomplish the task or constant supervision and cueing to accomplish the task;
382.14(2) assistance to acquire, maintain, or enhance the skills necessary for the participant
382.15to accomplish activities of daily living, instrumental activities of daily living, or
382.16health-related tasks;
382.17(3) expenditures for items, services, supports, environmental modifications, or
382.18goods, including assistive technology. These expenditures must:
382.19(i) relate to a need identified in a participant's CFSS service delivery plan;
382.20(ii) increase independence or substitute for human assistance to the extent that
382.21expenditures would otherwise be made for human assistance for the participant's assessed
382.22needs;
382.23(4) observation and redirection for behavior or symptoms where there is a need for
382.24assistance. An assessment of behaviors must meet the criteria in this clause. A recipient
382.25 participant qualifies as having a need for assistance due to behaviors if the recipient's
382.26 participant's behavior requires assistance at least four times per week and shows one or
382.27more of the following behaviors:
382.28(i) physical aggression towards self or others, or destruction of property that requires
382.29the immediate response of another person;
382.30(ii) increased vulnerability due to cognitive deficits or socially inappropriate
382.31behavior; or
382.32(iii) increased need for assistance for recipients participants who are verbally
382.33aggressive or resistive to care so that time needed to perform activities of daily living is
382.34increased;
383.1(5) back-up systems or mechanisms, such as the use of pagers or other electronic
383.2devices, to ensure continuity of the participant's services and supports;
383.3(6) transition costs, including:
383.4(i) deposits for rent and utilities;
383.5(ii) first month's rent and utilities;
383.6(iii) bedding;
383.7(iv) basic kitchen supplies;
383.8(v) other necessities, to the extent that these necessities are not otherwise covered
383.9under any other funding that the participant is eligible to receive; and
383.10(vi) other required necessities for an individual to make the transition from a nursing
383.11facility, institution for mental diseases, or intermediate care facility for persons with
383.12developmental disabilities to a community-based home setting where the participant
383.13resides; and
383.14(7) (6) services provided by a support specialist consultation services provider under
383.15contract with the department and enrolled as a Minnesota health care program provider as
383.16 defined under subdivision 2 that are chosen by the participant. 17;
383.17(7) services provided by an FMS contractor under contract with the department
383.18as defined under subdivision 13;
383.19(8) CFSS services provided by a qualified support worker who is a parent, stepparent,
383.20or legal guardian of a participant under age 18, or who is the participant's spouse. These
383.21support workers shall not provide any medical assistance home and community-based
383.22services in excess of 40 hours per seven-day period regardless of the number of parents,
383.23combination of parents and spouses, or number of children who receive medical assistance
383.24services; and
383.25(9) worker training and development services as defined in subdivision 2, paragraph
383.26(w), and described in subdivision 18a.

383.27    Sec. 9. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 8, is
383.28amended to read:
383.29    Subd. 8. Determination of CFSS service methodology. (a) All community first
383.30services and supports must be authorized by the commissioner or the commissioner's
383.31designee before services begin, except for the assessments established in section
383.32256B.0911 . The authorization for CFSS must be completed as soon as possible following
383.33an assessment but no later than 40 calendar days from the date of the assessment.
384.1(b) The amount of CFSS authorized must be based on the recipient's participant's
384.2 home care rating described in paragraphs (d) and (e) and any additional service units for
384.3which the person participant qualifies as described in paragraph (f).
384.4(c) The home care rating shall be determined by the commissioner or the
384.5commissioner's designee based on information submitted to the commissioner identifying
384.6the following for a recipient participant:
384.7(1) the total number of dependencies of activities of daily living as defined in
384.8subdivision 2, paragraph (b);
384.9(2) the presence of complex health-related needs as defined in subdivision 2,
384.10paragraph (e); and
384.11(3) the presence of Level I behavior as defined in subdivision 2, paragraph (d),
384.12clause (1).
384.13(d) The methodology to determine the total service units for CFSS for each home
384.14care rating is based on the median paid units per day for each home care rating from
384.15fiscal year 2007 data for the PCA program.
384.16(e) Each home care rating is designated by the letters P through Z and EN and has
384.17the following base number of service units assigned:
384.18(1) P home care rating requires Level I behavior or one to three dependencies in
384.19ADLs and qualifies one for five service units;
384.20(2) Q home care rating requires Level I behavior and one to three dependencies in
384.21ADLs and qualifies one for six service units;
384.22(3) R home care rating requires a complex health-related need and one to three
384.23dependencies in ADLs and qualifies one for seven service units;
384.24(4) S home care rating requires four to six dependencies in ADLs and qualifies
384.25one for ten service units;
384.26(5) T home care rating requires four to six dependencies in ADLs and Level I
384.27behavior and qualifies one for 11 service units;
384.28(6) U home care rating requires four to six dependencies in ADLs and a complex
384.29health-related need and qualifies one for 14 service units;
384.30(7) V home care rating requires seven to eight dependencies in ADLs and qualifies
384.31one for 17 service units;
384.32(8) W home care rating requires seven to eight dependencies in ADLs and Level I
384.33behavior and qualifies one for 20 service units;
384.34(9) Z home care rating requires seven to eight dependencies in ADLs and a complex
384.35health-related need and qualifies one for 30 service units; and
385.1(10) EN home care rating includes ventilator dependency as defined in section
385.2256B.0651, subdivision 1 , paragraph (g). Recipients Participants who meet the definition
385.3of ventilator-dependent and the EN home care rating and utilize a combination of
385.4CFSS and other home care services are limited to a total of 96 service units per day for
385.5those services in combination. Additional units may be authorized when a recipient's
385.6 participant's assessment indicates a need for two staff to perform activities. Additional
385.7time is limited to 16 service units per day.
385.8(f) Additional service units are provided through the assessment and identification of
385.9the following:
385.10(1) 30 additional minutes per day for a dependency in each critical activity of daily
385.11living as defined in subdivision 2, paragraph (h) (j);
385.12(2) 30 additional minutes per day for each complex health-related function as
385.13defined in subdivision 2, paragraph (e) (f); and
385.14(3) 30 additional minutes per day for each behavior issue as defined in subdivision 2,
385.15paragraph (d).
385.16(g) The service budget for budget model participants shall be based on:
385.17(1) assessed units as determined by the home care rating; and
385.18(2) an adjustment needed for administrative expenses.

385.19    Sec. 10. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 9, is
385.20amended to read:
385.21    Subd. 9. Noncovered services. (a) Services or supports that are not eligible for
385.22payment under this section include those that:
385.23(1) are not authorized by the certified assessor or included in the written service
385.24delivery plan;
385.25(2) are provided prior to the authorization of services and the approval of the written
385.26CFSS service delivery plan;
385.27(3) are duplicative of other paid services in the written service delivery plan;
385.28(4) supplant natural unpaid supports that appropriately meet a need in the service
385.29plan, are provided voluntarily to the participant, and are selected by the participant in lieu
385.30of other services and supports;
385.31(5) are not effective means to meet the participant's needs; and
385.32(6) are available through other funding sources, including, but not limited to, funding
385.33through title IV-E of the Social Security Act.
385.34(b) Additional services, goods, or supports that are not covered include:
386.1(1) those that are not for the direct benefit of the participant, except that services for
386.2caregivers such as training to improve the ability to provide CFSS are considered to directly
386.3benefit the participant if chosen by the participant and approved in the support plan;
386.4(2) any fees incurred by the participant, such as Minnesota health care programs fees
386.5and co-pays, legal fees, or costs related to advocate agencies;
386.6(3) insurance, except for insurance costs related to employee coverage;
386.7(4) room and board costs for the participant with the exception of allowable
386.8transition costs in subdivision 7, clause (6);
386.9(5) services, supports, or goods that are not related to the assessed needs;
386.10(6) special education and related services provided under the Individuals with
386.11Disabilities Education Act and vocational rehabilitation services provided under the
386.12Rehabilitation Act of 1973;
386.13(7) assistive technology devices and assistive technology services other than those
386.14for back-up systems or mechanisms to ensure continuity of service and supports listed in
386.15subdivision 7;
386.16(8) medical supplies and equipment covered under medical assistance;
386.17(9) environmental modifications, except as specified in subdivision 7;
386.18(10) expenses for travel, lodging, or meals related to training the participant, or the
386.19participant's representative, or legal representative, or paid or unpaid caregivers that
386.20exceed $500 in a 12-month period;
386.21(11) experimental treatments;
386.22(12) any service or good covered by other medical assistance state plan services,
386.23including prescription and over-the-counter medications, compounds, and solutions and
386.24related fees, including premiums and co-payments;
386.25(13) membership dues or costs, except when the service is necessary and appropriate
386.26to treat a physical health condition or to improve or maintain the participant's physical
386.27 health condition. The condition must be identified in the participant's CFSS plan and
386.28monitored by a physician enrolled in a Minnesota health care program enrolled physician;
386.29(14) vacation expenses other than the cost of direct services;
386.30(15) vehicle maintenance or modifications not related to the disability, health
386.31condition, or physical need; and
386.32(16) tickets and related costs to attend sporting or other recreational or entertainment
386.33events.;
386.34(17) services provided and billed by a provider who is not an enrolled CFSS provider;
386.35(18) CFSS provided by a participant's representative or paid legal guardian;
386.36(19) services that are used solely as a child care or babysitting service;
387.1(20) services that are the responsibility or in the daily rate of a residential or program
387.2license holder under the terms of a service agreement and administrative rules;
387.3(21) sterile procedures;
387.4(22) giving of injections into veins, muscles, or skin;
387.5(23) homemaker services that are not an integral part of the assessed CFSS service;
387.6(24) home maintenance or chore services;
387.7(25) home care services, including hospice services if elected by the participant,
387.8covered by Medicare or any other insurance held by the participant;
387.9(26) services to other members of the participant's household;
387.10(27) services not specified as covered under medical assistance as CFSS;
387.11(28) application of restraints or implementation of deprivation procedures;
387.12(29) assessments by CFSS provider organizations or by independently enrolled
387.13registered nurses;
387.14(30) services provided in lieu of legally required staffing in a residential or child
387.15care setting; and
387.16(31) services provided by the residential or program license holder in a residence for
387.17more than four persons.

387.18    Sec. 11. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 10,
387.19is amended to read:
387.20    Subd. 10. Provider Agency-provider and FMS contractor qualifications and,
387.21 general requirements, and duties. (a) Agency-providers delivering services under the
387.22agency-provider model under subdivision 11 or financial management service (FMS)
387.23 FMS contractors under subdivision 13 shall:
387.24(1) enroll as a medical assistance Minnesota health care programs provider and meet
387.25all applicable provider standards and requirements;
387.26(2) comply with medical assistance provider enrollment requirements;
387.27(3) (2) demonstrate compliance with law federal and state laws and policies of for
387.28 CFSS as determined by the commissioner;
387.29(4) (3) comply with background study requirements under chapter 245C and
387.30maintain documentation of background study requests and results;
387.31(5) (4) verify and maintain records of all services and expenditures by the participant,
387.32including hours worked by support workers and support specialists;
387.33(6) (5) not engage in any agency-initiated direct contact or marketing in person, by
387.34telephone, or other electronic means to potential participants, guardians, family members,
387.35or participants' representatives;
388.1(6) directly provide services and not use a subcontractor or reporting agent;
388.2(7) meet the financial requirements established by the commissioner for financial
388.3solvency;
388.4(8) have never had a lead agency contract or provider agreement discontinued due to
388.5fraud, or have never had an owner, board member, or manager fail a state or FBI-based
388.6criminal background check while enrolled or seeking enrollment as a Minnesota health
388.7care programs provider;
388.8(9) have established business practices that include written policies and procedures,
388.9internal controls, and a system that demonstrates the organization's ability to deliver
388.10quality CFSS; and
388.11(10) have an office located in Minnesota.
388.12(b) In conducting general duties, agency-providers and FMS contractors shall:
388.13(7) (1) pay support workers and support specialists based upon actual hours of
388.14services provided;
388.15(2) pay for worker training and development services based upon actual hours of
388.16services provided or the unit cost of the training session purchased;
388.17(8) (3) withhold and pay all applicable federal and state payroll taxes;
388.18(9) (4) make arrangements and pay unemployment insurance, taxes, workers'
388.19compensation, liability insurance, and other benefits, if any;
388.20(10) (5) enter into a written agreement with the participant, participant's
388.21representative, or legal representative that assigns roles and responsibilities to be
388.22performed before services, supports, or goods are provided using a format established by
388.23the commissioner;
388.24(11) (6) report maltreatment as required under sections 626.556 and 626.557; and
388.25(12) (7) provide the participant with a copy of the service-related rights under
388.26subdivision 20 at the start of services and supports.; and
388.27(8) comply with any data requests from the department consistent with the
388.28Minnesota Government Data Practices Act under chapter 13.

388.29    Sec. 12. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 11,
388.30is amended to read:
388.31    Subd. 11. Agency-provider model. (a) The agency-provider model is limited to
388.32the includes services provided by support workers and support specialists staff providing
388.33worker training and development services who are employed by an agency-provider
388.34that is licensed according to chapter 245A or meets other criteria established by the
388.35commissioner, including required training.
389.1(b) The agency-provider shall allow the participant to have a significant role in the
389.2selection and dismissal of the support workers for the delivery of the services and supports
389.3specified in the participant's service delivery plan.
389.4(c) A participant may use authorized units of CFSS services as needed within a
389.5service authorization that is not greater than 12 months. Using authorized units in a
389.6flexible manner in either the agency-provider model or the budget model does not increase
389.7the total amount of services and supports authorized for a participant or included in the
389.8participant's service delivery plan.
389.9(d) A participant may share CFSS services. Two or three CFSS participants may
389.10share services at the same time provided by the same support worker.
389.11(e) The agency-provider must use a minimum of 72.5 percent of the revenue
389.12generated by the medical assistance payment for CFSS for support worker wages and
389.13benefits. The agency-provider must document how this requirement is being met. The
389.14revenue generated by the support specialist worker training and development services
389.15 and the reasonable costs associated with the support specialist worker training and
389.16development services must not be used in making this calculation.
389.17(f) The agency-provider model must be used by individuals who have been restricted
389.18by the Minnesota restricted recipient program under Minnesota Rules, parts 9505.2160
389.19to 9505.2245.
389.20(g) Participants purchasing goods under this model, along with support worker
389.21services, must:
389.22(1) specify the goods in the service delivery plan and detailed budget for
389.23expenditures that must be approved by the consultation services provider or the case
389.24manager/care coordinator; and
389.25(2) use the FMS contractor for the billing and payment of such goods.

389.26    Sec. 13. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 12,
389.27is amended to read:
389.28    Subd. 12. Requirements for enrollment of CFSS provider agency-provider
389.29 agencies. (a) All CFSS provider agencies agency-providers must provide, at the time of
389.30enrollment, reenrollment, and revalidation as a CFSS provider agency agency-provider in
389.31a format determined by the commissioner, information and documentation that includes,
389.32but is not limited to, the following:
389.33(1) the CFSS provider agency's agency-provider's current contact information
389.34including address, telephone number, and e-mail address;
390.1(2) proof of surety bond coverage. Upon new enrollment, or if the provider agency's
390.2 agency-provider's Medicaid revenue in the previous calendar year is less than or equal
390.3to $300,000, the provider agency agency-provider must purchase a performance bond of
390.4$50,000. If the provider agency's agency-provider's Medicaid revenue in the previous
390.5calendar year is greater than $300,000, the provider agency agency-provider must
390.6purchase a performance bond of $100,000. The performance bond must be in a form
390.7approved by the commissioner, must be renewed annually, and must allow for recovery of
390.8costs and fees in pursuing a claim on the bond;
390.9(3) proof of fidelity bond coverage in the amount of $20,000;
390.10(4) proof of workers' compensation insurance coverage;
390.11(5) proof of liability insurance;
390.12(6) a description of the CFSS provider agency's agency-provider's organization
390.13identifying the names of all owners, managing employees, staff, board of directors, and
390.14the affiliations of the directors, and owners, or staff to other service providers;
390.15(7) a copy of the CFSS provider agency's agency-provider's written policies and
390.16procedures including: hiring of employees; training requirements; service delivery;
390.17and employee and consumer safety including process for notification and resolution
390.18of consumer grievances, identification and prevention of communicable diseases, and
390.19employee misconduct;
390.20(8) copies of all other forms the CFSS provider agency agency-provider uses in the
390.21course of daily business including, but not limited to:
390.22(i) a copy of the CFSS provider agency's agency-provider's time sheet if the time
390.23sheet varies from the standard time sheet for CFSS services approved by the commissioner,
390.24and a letter requesting approval of the CFSS provider agency's agency-provider's
390.25 nonstandard time sheet; and
390.26(ii) the a copy of the participant's individual CFSS provider agency's template for the
390.27CFSS care service delivery plan;
390.28(9) a list of all training and classes that the CFSS provider agency agency-provider
390.29 requires of its staff providing CFSS services;
390.30(10) documentation that the CFSS provider agency agency-provider and staff have
390.31successfully completed all the training required by this section;
390.32(11) documentation of the agency's agency-provider's marketing practices;
390.33(12) disclosure of ownership, leasing, or management of all residential properties
390.34that are used or could be used for providing home care services;
390.35(13) documentation that the agency agency-provider will use at least the following
390.36percentages of revenue generated from the medical assistance rate paid for CFSS services
391.1for employee personal care assistant CFSS support worker wages and benefits: 72.5
391.2percent of revenue from CFSS providers. The revenue generated by the support specialist
391.3 worker training and development services and the reasonable costs associated with the
391.4support specialist worker training and development services shall not be used in making
391.5this calculation; and
391.6(14) documentation that the agency agency-provider does not burden recipients'
391.7 participants' free exercise of their right to choose service providers by requiring personal
391.8care assistants CFSS support workers to sign an agreement not to work with any particular
391.9CFSS recipient participant or for another CFSS provider agency agency-provider after
391.10leaving the agency and that the agency is not taking action on any such agreements or
391.11requirements regardless of the date signed.
391.12(b) CFSS provider agencies agency-providers shall provide to the commissioner
391.13the information specified in paragraph (a).
391.14(c) All CFSS provider agencies agency-providers shall require all employees in
391.15management and supervisory positions and owners of the agency who are active in the
391.16day-to-day management and operations of the agency to complete mandatory training as
391.17determined by the commissioner. Employees in management and supervisory positions
391.18and owners who are active in the day-to-day operations of an agency who have completed
391.19the required training as an employee with a CFSS provider agency agency-provider do
391.20not need to repeat the required training if they are hired by another agency, if they have
391.21completed the training within the past three years. CFSS provider agency agency-provider
391.22 billing staff shall complete training about CFSS program financial management. Any new
391.23owners or employees in management and supervisory positions involved in the day-to-day
391.24operations are required to complete mandatory training as a requisite of working for the
391.25agency. CFSS provider agencies certified for participation in Medicare as home health
391.26agencies are exempt from the training required in this subdivision.
391.27(d) The commissioner shall send annual review notifications to agency-providers 30
391.28days prior to renewal. The notification must:
391.29(1) list the materials and information the agency-provider is required to submit;
391.30(2) provide instructions on submitting information to the commissioner; and
391.31(3) provide a due date by which the commissioner must receive the requested
391.32information.
391.33Agency-providers shall submit the required documentation for annual review within
391.3430 days of notification from the commissioner. If no documentation is submitted, the
391.35agency-provider enrollment number must be terminated or suspended.

392.1    Sec. 14. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 13,
392.2is amended to read:
392.3    Subd. 13. Budget model. (a) Under the budget model participants can may exercise
392.4more responsibility and control over the services and supports described and budgeted
392.5within the CFSS service delivery plan. Participants must use services provided by an FMS
392.6contractor as defined in subdivision 2, paragraph (m). Under this model, participants may
392.7use their approved service budget allocation to:
392.8(1) directly employ support workers, and pay wages, federal and state payroll taxes,
392.9and premiums for workers' compensation, liability, and health insurance coverage; and
392.10(2) obtain supports and goods as defined in subdivision 7; and.
392.11(3) choose a range of support assistance services from the financial management
392.12services (FMS) contractor related to:
392.13(i) assistance in managing the budget to meet the service delivery plan needs,
392.14consistent with federal and state laws and regulations;
392.15(ii) the employment, training, supervision, and evaluation of workers by the
392.16participant;
392.17(iii) acquisition and payment for supports and goods; and
392.18(iv) evaluation of individual service outcomes as needed for the scope of the
392.19participant's degree of control and responsibility.
392.20(b) Participants who are unable to fulfill any of the functions listed in paragraph (a)
392.21may authorize a legal representative or participant's representative to do so on their behalf.
392.22(c) The commissioner shall disenroll or exclude participants from the budget model
392.23and transfer them to the agency-provider model under, but not limited to, the following
392.24circumstances:
392.25(1) when a participant has been restricted by the Minnesota restricted recipient
392.26program, in which case the participant may be excluded for a specified time period under
392.27Minnesota Rules, parts 9505.2160 to 9505.2245;
392.28(2) when a participant exits the budget model during the participant's service plan
392.29year. Upon transfer, the participant shall not access the budget model for the remainder of
392.30that service plan year; or
392.31(3) when the department determines that the participant or participant's representative
392.32or legal representative cannot manage participant responsibilities under the budget model.
392.33The commissioner must develop policies for determining if a participant is unable to
392.34manage responsibilities under the budget model.
393.1(d) A participant may appeal in writing to the department under section 256.045,
393.2subdivision 3, to contest the department's decision under paragraph (c), clause (3), to
393.3disenroll or exclude the participant from the budget model.
393.4(c) (e) The FMS contractor shall not provide CFSS services and supports under the
393.5agency-provider service model.
393.6(f) The FMS contractor shall provide service functions as determined by the
393.7commissioner for budget model participants that include but are not limited to:
393.8(1) information and consultation about CFSS;
393.9(2) (1) assistance with the development of the detailed budget for expenditures
393.10portion of the service delivery plan and budget model as requested by the consultation
393.11services provider or participant;
393.12(3) (2) billing and making payments for budget model expenditures;
393.13(4) (3) assisting participants in fulfilling employer-related requirements according to
393.14Internal Revenue Service Revenue Procedure 70-6, section 3504, Agency Employer Tax
393.15Liability, regulation 137036-08 section 3504 of the Internal Revenue Code and related
393.16regulations and interpretations, including Code of Federal Regulations, title 26, section
393.1731.3504-1, which includes assistance with filing and paying payroll taxes, and obtaining
393.18worker compensation coverage;
393.19(5) (4) data recording and reporting of participant spending; and
393.20(6) (5) other duties established in the contract with the department, including with
393.21respect to providing assistance to the participant, participant's representative, or legal
393.22representative in performing their employer responsibilities regarding support workers.
393.23The support worker shall not be considered the employee of the financial management
393.24services FMS contractor.; and
393.25(6) billing, payment, and accounting of approved expenditures for goods for
393.26agency-provider participants.
393.27(d) A participant who requests to purchase goods and supports along with support
393.28worker services under the agency-provider model must use the budget model with
393.29a service delivery plan that specifies the amount of services to be authorized to the
393.30agency-provider and the expenditures to be paid by the FMS contractor.
393.31(e) (g) The FMS contractor shall:
393.32(1) not limit or restrict the participant's choice of service or support providers or
393.33service delivery models consistent with any applicable state and federal requirements;
393.34(2) provide the participant, consultation services provider, and the targeted case
393.35manager or care coordinator, if applicable, with a monthly written summary of the
393.36spending for services and supports that were billed against the spending budget;
394.1(3) be knowledgeable of state and federal employment regulations, including those
394.2under the Fair Labor Standards Act of 1938, and comply with the requirements under the
394.3Internal Revenue Service Revenue Procedure 70-6, Section 3504, section 3504 of the
394.4Internal Revenue Code and related regulations and interpretations, including Code of
394.5Federal Regulations, title 26, section 31.3504-1, regarding agency employer tax liability
394.6for vendor or fiscal employer agent, and any requirements necessary to process employer
394.7and employee deductions, provide appropriate and timely submission of employer tax
394.8liabilities, and maintain documentation to support medical assistance claims;
394.9(4) have current and adequate liability insurance and bonding and sufficient cash
394.10flow as determined by the commissioner and have on staff or under contract a certified
394.11public accountant or an individual with a baccalaureate degree in accounting;
394.12(5) assume fiscal accountability for state funds designated for the program and be
394.13held liable for any overpayments or violations of applicable statutes or rules, including but
394.14not limited to the Minnesota False Claims Act, chapter 15C; and
394.15(6) maintain documentation of receipts, invoices, and bills to track all services and
394.16supports expenditures for any goods purchased and maintain time records of support
394.17workers. The documentation and time records must be maintained for a minimum of
394.18five years from the claim date and be available for audit or review upon request by the
394.19commissioner. Claims submitted by the FMS contractor to the commissioner for payment
394.20must correspond with services, amounts, and time periods as authorized in the participant's
394.21spending service budget and service plan and must contain specific identifying information
394.22as determined by the commissioner.
394.23(f) (h) The commissioner of human services shall:
394.24(1) establish rates and payment methodology for the FMS contractor;
394.25(2) identify a process to ensure quality and performance standards for the FMS
394.26contractor and ensure statewide access to FMS contractors; and
394.27(3) establish a uniform protocol for delivering and administering CFSS services
394.28to be used by eligible FMS contractors.
394.29(g) The commissioner of human services shall disenroll or exclude participants from
394.30the budget model and transfer them to the agency-provider model under the following
394.31circumstances that include but are not limited to:
394.32(1) when a participant has been restricted by the Minnesota restricted recipient
394.33program, the participant may be excluded for a specified time period under Minnesota
394.34Rules, parts 9505.2160 to 9505.2245;
395.1(2) when a participant exits the budget model during the participant's service plan
395.2year. Upon transfer, the participant shall not access the budget model for the remainder of
395.3that service plan year; or
395.4(3) when the department determines that the participant or participant's representative
395.5or legal representative cannot manage participant responsibilities under the budget model.
395.6The commissioner must develop policies for determining if a participant is unable to
395.7manage responsibilities under a budget model.
395.8(h) A participant may appeal under section 256.045, subdivision 3, in writing to the
395.9department to contest the department's decision under paragraph (c), clause (3), to remove
395.10or exclude the participant from the budget model.

395.11    Sec. 15. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 15,
395.12is amended to read:
395.13    Subd. 15. Documentation of support services provided. (a) Support services
395.14provided to a participant by a support worker employed by either an agency-provider
395.15or the participant acting as the employer must be documented daily by each support
395.16worker, on a time sheet form approved by the commissioner. All documentation may be
395.17Web-based, electronic, or paper documentation. The completed form must be submitted
395.18on a monthly regular basis to the provider or the participant and the FMS contractor
395.19selected by the participant to provide assistance with meeting the participant's employer
395.20obligations and kept in the recipient's health participant's record.
395.21(b) The activity documentation must correspond to the written service delivery plan
395.22and be reviewed by the agency-provider or the participant and the FMS contractor when
395.23the participant is acting as the employer of the support worker.
395.24(c) The time sheet must be on a form approved by the commissioner documenting
395.25time the support worker provides services in the home to the participant. The following
395.26criteria must be included in the time sheet:
395.27(1) full name of the support worker and individual provider number;
395.28(2) provider agency-provider name and telephone numbers, if an agency-provider is
395.29 responsible for delivery services under the written service plan;
395.30(3) full name of the participant;
395.31(4) consecutive dates, including month, day, and year, and arrival and departure
395.32times with a.m. or p.m. notations;
395.33(5) signatures of the participant or the participant's representative;
395.34(6) personal signature of the support worker;
395.35(7) any shared care provided, if applicable;
396.1(8) a statement that it is a federal crime to provide false information on CFSS
396.2billings for medical assistance payments; and
396.3(9) dates and location of recipient participant stays in a hospital, care facility, or
396.4incarceration.

396.5    Sec. 16. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 16,
396.6is amended to read:
396.7    Subd. 16. Support workers requirements. (a) Support workers shall:
396.8(1) enroll with the department as a support worker after a background study under
396.9chapter 245C has been completed and the support worker has received a notice from the
396.10commissioner that:
396.11(i) the support worker is not disqualified under section 245C.14; or
396.12(ii) is disqualified, but the support worker has received a set-aside of the
396.13disqualification under section 245C.22;
396.14(2) have the ability to effectively communicate with the participant or the
396.15participant's representative;
396.16(3) have the skills and ability to provide the services and supports according to
396.17the person's participant's CFSS service delivery plan and respond appropriately to the
396.18participant's needs;
396.19(4) not be a participant of CFSS, unless the support services provided by the support
396.20worker differ from those provided to the support worker;
396.21(5) complete the basic standardized training as determined by the commissioner
396.22before completing enrollment. The training must be available in languages other than
396.23English and to those who need accommodations due to disabilities. Support worker
396.24training must include successful completion of the following training components: basic
396.25first aid, vulnerable adult, child maltreatment, OSHA universal precautions, basic roles
396.26and responsibilities of support workers including information about basic body mechanics,
396.27emergency preparedness, orientation to positive behavioral practices, orientation to
396.28responding to a mental health crisis, fraud issues, time cards and documentation, and an
396.29overview of person-centered planning and self-direction. Upon completion of the training
396.30components, the support worker must pass the certification test to provide assistance
396.31to participants;
396.32(6) complete training and orientation on the participant's individual needs; and
396.33(7) maintain the privacy and confidentiality of the participant, and not independently
396.34determine the medication dose or time for medications for the participant.
397.1(b) The commissioner may deny or terminate a support worker's provider enrollment
397.2and provider number if the support worker:
397.3(1) lacks the skills, knowledge, or ability to adequately or safely perform the
397.4required work;
397.5(2) fails to provide the authorized services required by the participant employer;
397.6(3) has been intoxicated by alcohol or drugs while providing authorized services to
397.7the participant or while in the participant's home;
397.8(4) has manufactured or distributed drugs while providing authorized services to the
397.9participant or while in the participant's home; or
397.10(5) has been excluded as a provider by the commissioner of human services, or the
397.11United States Department of Health and Human Services, Office of Inspector General,
397.12from participation in Medicaid, Medicare, or any other federal health care program.
397.13(c) A support worker may appeal in writing to the commissioner to contest the
397.14decision to terminate the support worker's provider enrollment and provider number.
397.15(d) A support worker must not provide or be paid for more than 275 hours of
397.16CFSS per month, regardless of the number of participants the support worker serves or
397.17the number of agency-providers or participant employers by which the support worker
397.18is employed. The department shall not disallow the number of hours per day a support
397.19worker works unless it violates other law.

397.20    Sec. 17. Minnesota Statutes 2013 Supplement, section 256B.85, is amended by adding
397.21a subdivision to read:
397.22    Subd. 16a. Exception to support worker requirements for continuity of services.
397.23The support worker for a participant may be allowed to enroll with a different CFSS
397.24agency-provider or FMS contractor upon initiation, rather than completion, of a new
397.25background study according to chapter 245C, if the following conditions are met:
397.26(1) the commissioner determines that the support worker's change in enrollment or
397.27affiliation is needed to ensure continuity of services and protect the health and safety
397.28of the participant;
397.29(2) the chosen agency-provider or FMS contractor has been continuously enrolled as
397.30a CFSS agency-provider or FMS contractor for at least two years or since the inception of
397.31the CFSS program, whichever is shorter;
397.32(3) the participant served by the support worker chooses to transfer to the CFSS
397.33agency-provider or the FMS contractor to which the support worker is transferring;
398.1(4) the support worker has been continuously enrolled with the former CFSS
398.2agency-provider or FMS contractor since the support worker's last background study
398.3was completed; and
398.4(5) the support worker continues to meet requirements of subdivision 16, excluding
398.5paragraph (a), clause (1).

398.6    Sec. 18. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 17,
398.7is amended to read:
398.8    Subd. 17. Support specialist requirements and payments Consultation services
398.9description and duties. The commissioner shall develop qualifications, scope of
398.10functions, and payment rates and service limits for a support specialist that may provide
398.11additional or specialized assistance necessary to plan, implement, arrange, augment, or
398.12evaluate services and supports.
398.13(a) Consultation services means providing assistance to the participant in making
398.14informed choices regarding CFSS services in general, and self-directed tasks in particular,
398.15and in developing a person-centered service delivery plan to achieve quality service
398.16outcomes.
398.17(b) Consultation services is a required service that may include but is not limited to:
398.18(1) an initial and annual orientation to CFSS information and policies, including
398.19selecting a service model;
398.20(2) assistance with the development, implementation, management, and evaluation
398.21of the person-centered service delivery plan;
398.22(3) consultation on recruiting, selecting, training, managing, directing, evaluating,
398.23and supervising support workers;
398.24(4) reviewing the use of and access to informal and community supports, goods, or
398.25resources;
398.26(5) assistance with fulfilling responsibilities and requirements of CFSS, including
398.27modifying service delivery plans and changing service models; and
398.28(6) assistance with accessing FMS contractors or agency-providers.
398.29(c) Duties of a consultation services provider shall include but are not limited to:
398.30(1) review and finalization of the CFSS service delivery plan by the consultation
398.31services provider organization;
398.32(2) distribution of copies of the final service delivery plan to the participant and
398.33to the agency-provider or FMS contractor, case manager/care coordinator, and other
398.34designated parties;
399.1(3) an evaluation of services upon receiving information from an FMS contractor
399.2indicating spending or participant employer concerns;
399.3(4) a semiannual review of services if the participant does not have a case
399.4manager/care coordinator and when the support worker is a paid parent of a minor
399.5participant or the participant's spouse;
399.6(5) collection and reporting of data as required by the department; and
399.7(6) providing the participant with a copy of the service-related rights under
399.8subdivision 20 at the start of consultation services.

399.9    Sec. 19. Minnesota Statutes 2013 Supplement, section 256B.85, is amended by adding
399.10a subdivision to read:
399.11    Subd. 17a. Consultation services provider qualifications and requirements.
399.12The commissioner shall develop the qualifications and requirements for providers of
399.13consultation services under subdivision 17. These providers must satisfy at least the
399.14following qualifications and requirements:
399.15(1) are under contract with the department;
399.16(2) are not the FMS contractor as defined in subdivision 2, paragraph (m), the
399.17CFSS or home and community-based services waiver agency-provider or vendor to the
399.18participant, or a lead agency;
399.19(3) meet the service standards as established by the commissioner;
399.20(4) employ lead professional staff with a minimum of three years of experience
399.21in providing support planning, support broker, or consultation services and consumer
399.22education to participants using a self-directed program using FMS under medical
399.23assistance;
399.24(5) are knowledgeable about CFSS roles and responsibilities including those of the
399.25certified assessor, FMS contractor, agency-provider, and case manager/care coordinator;
399.26(6) comply with medical assistance provider requirements;
399.27(7) understand the CFSS program and its policies;
399.28(8) are knowledgeable about self-directed principles and the application of the
399.29person-centered planning process;
399.30(9) have general knowledge of the FMS contractor duties and participant
399.31employment model, including all applicable federal, state, and local laws and regulations
399.32regarding tax, labor, employment, and liability and workers' compensation coverage for
399.33household workers; and
399.34(10) have all employees, including lead professional staff, staff in management
399.35and supervisory positions, and owners of the agency who are active in the day-to-day
400.1management and operations of the agency, complete training as specified in the contract
400.2with the department.

400.3    Sec. 20. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 18,
400.4is amended to read:
400.5    Subd. 18. Service unit and budget allocation requirements and limits. (a) For the
400.6agency-provider model, services will be authorized in units of service. The total service
400.7unit amount must be established based upon the assessed need for CFSS services, and must
400.8not exceed the maximum number of units available as determined under subdivision 8.
400.9(b) For the budget model, the service budget allocation allowed for services and
400.10supports is established by multiplying the number of units authorized under subdivision 8
400.11by the payment rate established by the commissioner defined in subdivision 8, paragraph
400.12(g).

400.13    Sec. 21. Minnesota Statutes 2013 Supplement, section 256B.85, is amended by adding
400.14a subdivision to read:
400.15    Subd. 18a. Worker training and development services. (a) The commissioner
400.16shall develop the scope of tasks and functions, service standards, and service limits for
400.17worker training and development services.
400.18(b) Worker training and development services are in addition to the participant's
400.19assessed service units or service budget. Services provided according to this subdivision
400.20must:
400.21(1) help support workers obtain and expand the skills and knowledge necessary to
400.22ensure competency in providing quality services as needed and defined in the participant's
400.23service delivery plan;
400.24(2) be provided or arranged for by the agency-provider under subdivision 11 or
400.25purchased by the participant employer under the budget model under subdivision 13; and
400.26(3) be described in the participant's CFSS service delivery plan and documented in
400.27the participant's file.
400.28(c) Services covered under worker training and development shall include:
400.29(1) support worker training on the participant's individual assessed needs, condition,
400.30or both, provided individually or in a group setting by a skilled and knowledgeable trainer
400.31beyond any training the participant or participant's representative provides;
400.32(2) tuition for professional classes and workshops for the participant's support
400.33workers that relate to the participant's assessed needs, condition, or both;
401.1(3) direct observation, monitoring, coaching, and documentation of support worker
401.2job skills and tasks, beyond any training the participant or participant's representative
401.3provides, including supervision of health-related tasks or behavioral supports that is
401.4conducted by an appropriate professional based on the participant's assessed needs.
401.5These services must be provided within 14 days of the start of services or the start of a
401.6new support worker except as provided in paragraph (d) and must be specified in the
401.7participant's service delivery plan; and
401.8(4) reporting service and support concerns to the appropriate provider.
401.9(d) The services in paragraph (c), clause (3), are not required to be provided for a
401.10new support worker providing services for a participant due to staffing failures, unless the
401.11support worker is expected to provide ongoing backup staffing coverage.
401.12(e) Worker training and development services shall not include:
401.13(1) general agency training, worker orientation, or training on CFSS self-directed
401.14models;
401.15(2) payment for preparation or development time for the trainer or presenter;
401.16(3) payment of the support worker's salary or compensation during the training;
401.17(4) training or supervision provided by the participant, the participant's support
401.18worker, or the participant's informal supports, including the participant's representative; or
401.19(5) services in excess of 96 units per annual service authorization, unless approved
401.20by the department.

401.21    Sec. 22. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 23,
401.22is amended to read:
401.23    Subd. 23. Commissioner's access. When the commissioner is investigating a
401.24possible overpayment of Medicaid funds, the commissioner must be given immediate
401.25access without prior notice to the agency provider agency-provider or FMS contractor's
401.26office during regular business hours and to documentation and records related to services
401.27provided and submission of claims for services provided. Denying the commissioner
401.28access to records is cause for immediate suspension of payment and terminating the agency
401.29provider's enrollment according to section 256B.064 or terminating the FMS contract.

401.30    Sec. 23. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 24,
401.31is amended to read:
401.32    Subd. 24. CFSS agency-providers; background studies. CFSS agency-providers
401.33enrolled to provide personal care assistance CFSS services under the medical assistance
401.34program shall comply with the following:
402.1(1) owners who have a five percent interest or more and all managing employees
402.2are subject to a background study as provided in chapter 245C. This applies to currently
402.3enrolled CFSS agency-providers and those agencies seeking enrollment as a CFSS
402.4agency-provider. "Managing employee" has the same meaning as Code of Federal
402.5Regulations, title 42, section 455. An organization is barred from enrollment if:
402.6(i) the organization has not initiated background studies on owners managing
402.7employees; or
402.8(ii) the organization has initiated background studies on owners and managing
402.9employees, but the commissioner has sent the organization a notice that an owner or
402.10managing employee of the organization has been disqualified under section 245C.14, and
402.11the owner or managing employee has not received a set-aside of the disqualification
402.12under section 245C.22;
402.13(2) a background study must be initiated and completed for all support specialists
402.14 staff who will have direct contact with the participant to provide worker training and
402.15development; and
402.16(3) a background study must be initiated and completed for all support workers.

402.17    Sec. 24. Laws 2013, chapter 108, article 7, section 49, the effective date, is amended to
402.18read:
402.19EFFECTIVE DATE.This section is effective upon federal approval but no earlier
402.20than April 1, 2014. The service will begin 90 days after federal approval or April 1,
402.212014, whichever is later. The commissioner of human services shall notify the revisor of
402.22statutes when this occurs.

402.23ARTICLE 27

402.24CONTINUING CARE

402.25    Section 1. Minnesota Statutes 2012, section 13.46, subdivision 4, is amended to read:
402.26    Subd. 4. Licensing data. (a) As used in this subdivision:
402.27    (1) "licensing data" are all data collected, maintained, used, or disseminated by the
402.28welfare system pertaining to persons licensed or registered or who apply for licensure
402.29or registration or who formerly were licensed or registered under the authority of the
402.30commissioner of human services;
402.31    (2) "client" means a person who is receiving services from a licensee or from an
402.32applicant for licensure; and
403.1    (3) "personal and personal financial data" are Social Security numbers, identity
403.2of and letters of reference, insurance information, reports from the Bureau of Criminal
403.3Apprehension, health examination reports, and social/home studies.
403.4    (b)(1)(i) Except as provided in paragraph (c), the following data on applicants,
403.5license holders, and former licensees are public: name, address, telephone number of
403.6licensees, date of receipt of a completed application, dates of licensure, licensed capacity,
403.7type of client preferred, variances granted, record of training and education in child care
403.8and child development, type of dwelling, name and relationship of other family members,
403.9previous license history, class of license, the existence and status of complaints, and the
403.10number of serious injuries to or deaths of individuals in the licensed program as reported
403.11to the commissioner of human services, the local social services agency, or any other
403.12county welfare agency. For purposes of this clause, a serious injury is one that is treated
403.13by a physician.
403.14(ii) When a correction order, an order to forfeit a fine, an order of license suspension,
403.15an order of temporary immediate suspension, an order of license revocation, an order
403.16of license denial, or an order of conditional license has been issued, or a complaint is
403.17resolved, the following data on current and former licensees and applicants are public: the
403.18substance and investigative findings of the licensing or maltreatment complaint, licensing
403.19violation, or substantiated maltreatment; the record of informal resolution of a licensing
403.20violation; orders of hearing; findings of fact; conclusions of law; specifications of the final
403.21correction order, fine, suspension, temporary immediate suspension, revocation, denial, or
403.22conditional license contained in the record of licensing action; whether a fine has been
403.23paid; and the status of any appeal of these actions.
403.24(iii) When a license denial under section 245A.05 or a sanction under section
403.25245A.07 is based on a determination that the license holder or applicant is responsible for
403.26maltreatment under section 626.556 or 626.557, the identity of the applicant or license
403.27holder as the individual responsible for maltreatment is public data at the time of the
403.28issuance of the license denial or sanction.
403.29(iv) When a license denial under section 245A.05 or a sanction under section
403.30245A.07 is based on a determination that the license holder or applicant is disqualified
403.31under chapter 245C, the identity of the license holder or applicant as the disqualified
403.32individual and the reason for the disqualification are public data at the time of the
403.33issuance of the licensing sanction or denial. If the applicant or license holder requests
403.34reconsideration of the disqualification and the disqualification is affirmed, the reason for
403.35the disqualification and the reason to not set aside the disqualification are public data.
404.1    (2) Notwithstanding sections 626.556, subdivision 11, and 626.557, subdivision 12b,
404.2when any person subject to disqualification under section 245C.14 in connection with a
404.3license to provide family day care for children, child care center services, foster care for
404.4children in the provider's home, or foster care or day care services for adults in the provider's
404.5home is a substantiated perpetrator of maltreatment, and the substantiated maltreatment is
404.6a reason for a licensing action, the identity of the substantiated perpetrator of maltreatment
404.7is public data. For purposes of this clause, a person is a substantiated perpetrator if the
404.8maltreatment determination has been upheld under section 256.045; 626.556, subdivision
404.910i ; 626.557, subdivision 9d; or chapter 14, or if an individual or facility has not timely
404.10exercised appeal rights under these sections, except as provided under clause (1).
404.11    (3) For applicants who withdraw their application prior to licensure or denial of a
404.12license, the following data are public: the name of the applicant, the city and county in
404.13which the applicant was seeking licensure, the dates of the commissioner's receipt of the
404.14initial application and completed application, the type of license sought, and the date
404.15of withdrawal of the application.
404.16    (4) For applicants who are denied a license, the following data are public: the name
404.17and address of the applicant, the city and county in which the applicant was seeking
404.18licensure, the dates of the commissioner's receipt of the initial application and completed
404.19application, the type of license sought, the date of denial of the application, the nature of
404.20the basis for the denial, the record of informal resolution of a denial, orders of hearings,
404.21findings of fact, conclusions of law, specifications of the final order of denial, and the
404.22status of any appeal of the denial.
404.23    (5) The following data on persons subject to disqualification under section 245C.14 in
404.24connection with a license to provide family day care for children, child care center services,
404.25foster care for children in the provider's home, or foster care or day care services for adults
404.26in the provider's home, are public: the nature of any disqualification set aside under section
404.27245C.22 , subdivisions 2 and 4, and the reasons for setting aside the disqualification; the
404.28nature of any disqualification for which a variance was granted under sections 245A.04,
404.29subdivision 9 ; and 245C.30, and the reasons for granting any variance under section
404.30245A.04, subdivision 9 ; and, if applicable, the disclosure that any person subject to
404.31a background study under section 245C.03, subdivision 1, has successfully passed a
404.32background study. If a licensing sanction under section 245A.07, or a license denial under
404.33section 245A.05, is based on a determination that an individual subject to disqualification
404.34under chapter 245C is disqualified, the disqualification as a basis for the licensing sanction
404.35or denial is public data. As specified in clause (1), item (iv), if the disqualified individual
404.36is the license holder or applicant, the identity of the license holder or applicant and the
405.1reason for the disqualification are public data; and, if the license holder or applicant
405.2requested reconsideration of the disqualification and the disqualification is affirmed, the
405.3reason for the disqualification and the reason to not set aside the disqualification are
405.4public data. If the disqualified individual is an individual other than the license holder or
405.5applicant, the identity of the disqualified individual shall remain private data.
405.6    (6) When maltreatment is substantiated under section 626.556 or 626.557 and the
405.7victim and the substantiated perpetrator are affiliated with a program licensed under
405.8chapter 245A, the commissioner of human services, local social services agency, or
405.9county welfare agency may inform the license holder where the maltreatment occurred of
405.10the identity of the substantiated perpetrator and the victim.
405.11    (7) Notwithstanding clause (1), for child foster care, only the name of the license
405.12holder and the status of the license are public if the county attorney has requested that data
405.13otherwise classified as public data under clause (1) be considered private data based on the
405.14best interests of a child in placement in a licensed program.
405.15    (c) The following are private data on individuals under section 13.02, subdivision
405.1612 , or nonpublic data under section 13.02, subdivision 9: personal and personal financial
405.17data on family day care program and family foster care program applicants and licensees
405.18and their family members who provide services under the license.
405.19    (d) The following are private data on individuals: the identity of persons who have
405.20made reports concerning licensees or applicants that appear in inactive investigative data,
405.21and the records of clients or employees of the licensee or applicant for licensure whose
405.22records are received by the licensing agency for purposes of review or in anticipation of a
405.23contested matter. The names of reporters of complaints or alleged violations of licensing
405.24standards under chapters 245A, 245B, 245C, and 245D, and applicable rules and alleged
405.25maltreatment under sections 626.556 and 626.557, are confidential data and may be
405.26disclosed only as provided in section 626.556, subdivision 11, or 626.557, subdivision 12b.
405.27    (e) Data classified as private, confidential, nonpublic, or protected nonpublic under
405.28this subdivision become public data if submitted to a court or administrative law judge as
405.29part of a disciplinary proceeding in which there is a public hearing concerning a license
405.30which has been suspended, immediately suspended, revoked, or denied.
405.31    (f) Data generated in the course of licensing investigations that relate to an alleged
405.32violation of law are investigative data under subdivision 3.
405.33    (g) Data that are not public data collected, maintained, used, or disseminated under
405.34this subdivision that relate to or are derived from a report as defined in section 626.556,
405.35subdivision 2 , or 626.5572, subdivision 18, are subject to the destruction provisions of
405.36sections 626.556, subdivision 11c, and 626.557, subdivision 12b.
406.1    (h) Upon request, not public data collected, maintained, used, or disseminated under
406.2this subdivision that relate to or are derived from a report of substantiated maltreatment as
406.3defined in section 626.556 or 626.557 may be exchanged with the Department of Health
406.4for purposes of completing background studies pursuant to section 144.057 and with
406.5the Department of Corrections for purposes of completing background studies pursuant
406.6to section 241.021.
406.7    (i) Data on individuals collected according to licensing activities under chapters
406.8245A and 245C, data on individuals collected by the commissioner of human services
406.9according to investigations under chapters 245A, 245B, and 245C, and 245D, and
406.10sections 626.556 and 626.557 may be shared with the Department of Human Rights, the
406.11Department of Health, the Department of Corrections, the ombudsman for mental health
406.12and developmental disabilities, and the individual's professional regulatory board when
406.13there is reason to believe that laws or standards under the jurisdiction of those agencies may
406.14have been violated or the information may otherwise be relevant to the board's regulatory
406.15jurisdiction. Background study data on an individual who is the subject of a background
406.16study under chapter 245C for a licensed service for which the commissioner of human
406.17services is the license holder may be shared with the commissioner and the commissioner's
406.18delegate by the licensing division. Unless otherwise specified in this chapter, the identity
406.19of a reporter of alleged maltreatment or licensing violations may not be disclosed.
406.20    (j) In addition to the notice of determinations required under section 626.556,
406.21subdivision 10f , if the commissioner or the local social services agency has determined
406.22that an individual is a substantiated perpetrator of maltreatment of a child based on sexual
406.23abuse, as defined in section 626.556, subdivision 2, and the commissioner or local social
406.24services agency knows that the individual is a person responsible for a child's care in
406.25another facility, the commissioner or local social services agency shall notify the head
406.26of that facility of this determination. The notification must include an explanation of the
406.27individual's available appeal rights and the status of any appeal. If a notice is given under
406.28this paragraph, the government entity making the notification shall provide a copy of the
406.29notice to the individual who is the subject of the notice.
406.30    (k) All not public data collected, maintained, used, or disseminated under this
406.31subdivision and subdivision 3 may be exchanged between the Department of Human
406.32Services, Licensing Division, and the Department of Corrections for purposes of
406.33regulating services for which the Department of Human Services and the Department
406.34of Corrections have regulatory authority.

407.1    Sec. 2. Minnesota Statutes 2012, section 144.0724, as amended by Laws 2014, chapter
407.2147, section 1, is amended to read:
407.3144.0724 RESIDENT REIMBURSEMENT CLASSIFICATION.
407.4    Subdivision 1. Resident reimbursement case mix classifications. The
407.5commissioner of health shall establish resident reimbursement classifications based upon
407.6the assessments of residents of nursing homes and boarding care homes conducted under
407.7this section and according to section 256B.438.
407.8    Subd. 2. Definitions. For purposes of this section, the following terms have the
407.9meanings given.
407.10(a) "Assessment reference date" or "ARD" means the specific end point for
407.11look-back periods in the MDS assessment process. This look-back period is also called
407.12the observation or assessment period.
407.13(b) "Case mix index" means the weighting factors assigned to the RUG-IV
407.14classifications.
407.15(c) "Index maximization" means classifying a resident who could be assigned to
407.16more than one category, to the category with the highest case mix index.
407.17(d) "Minimum data set" or "MDS" means a core set of screening, clinical assessment,
407.18and functional status elements, that include common definitions and coding categories
407.19specified by the Centers for Medicare and Medicaid Services and designated by the
407.20Minnesota Department of Health.
407.21(e) "Representative" means a person who is the resident's guardian or conservator,
407.22the person authorized to pay the nursing home expenses of the resident, a representative of
407.23the Office of Ombudsman for Long-Term Care whose assistance has been requested, or
407.24any other individual designated by the resident.
407.25(f) "Resource utilization groups" or "RUG" means the system for grouping a nursing
407.26facility's residents according to their clinical and functional status identified in data
407.27supplied by the facility's minimum data set.
407.28(g) "Activities of daily living" means grooming, dressing, bathing, transferring,
407.29mobility, positioning, eating, and toileting.
407.30(h) "Nursing facility level of care determination" means the assessment process
407.31that results in a determination of a resident's or prospective resident's need for nursing
407.32facility level of care as established in subdivision 11 for purposes of medical assistance
407.33payment of long-term care services for:
407.34(1) nursing facility services under section 256B.434 or 256B.441;
407.35(2) elderly waiver services under section 256B.0915;
407.36(3) CADI and BI waiver services under section 256B.49; and
408.1(4) state payment of alternative care services under section 256B.0913.
408.2    Subd. 3a. Resident reimbursement classifications beginning January 1, 2012.
408.3(a) Beginning January 1, 2012, resident reimbursement classifications shall be based
408.4on the minimum data set, version 3.0 assessment instrument, or its successor version
408.5mandated by the Centers for Medicare and Medicaid Services that nursing facilities are
408.6required to complete for all residents. The commissioner of health shall establish resident
408.7classifications according to the RUG-IV, 48 group, resource utilization groups. Resident
408.8classification must be established based on the individual items on the minimum data set,
408.9which must be completed according to the Long Term Care Facility Resident Assessment
408.10Instrument User's Manual Version 3.0 or its successor issued by the Centers for Medicare
408.11and Medicaid Services.
408.12(b) Each resident must be classified based on the information from the minimum
408.13data set according to general categories as defined in the Case Mix Classification Manual
408.14for Nursing Facilities issued by the Minnesota Department of Health.
408.15    Subd. 4. Resident assessment schedule. (a) A facility must conduct and
408.16electronically submit to the commissioner of health MDS assessments that conform with
408.17the assessment schedule defined by Code of Federal Regulations, title 42, section 483.20,
408.18and published by the United States Department of Health and Human Services, Centers for
408.19Medicare and Medicaid Services, in the Long Term Care Assessment Instrument User's
408.20Manual, version 3.0, and subsequent updates when issued by the Centers for Medicare
408.21and Medicaid Services. The commissioner of health may substitute successor manuals or
408.22question and answer documents published by the United States Department of Health and
408.23Human Services, Centers for Medicare and Medicaid Services, to replace or supplement
408.24the current version of the manual or document.
408.25(b) The assessments used to determine a case mix classification for reimbursement
408.26include the following:
408.27(1) a new admission assessment;
408.28(2) an annual assessment which must have an assessment reference date (ARD)
408.29within 92 days of the previous assessment and within 366 days of the ARD of the previous
408.30comprehensive assessment;
408.31(3) a significant change in status assessment must be completed within 14 days of
408.32the identification of a significant change;
408.33(4) all quarterly assessments must have an assessment reference date (ARD) within
408.3492 days of the ARD of the previous assessment;
408.35(5) any significant correction to a prior comprehensive assessment, if the assessment
408.36being corrected is the current one being used for RUG classification; and
409.1(6) any significant correction to a prior quarterly assessment, if the assessment being
409.2corrected is the current one being used for RUG classification.
409.3(c) In addition to the assessments listed in paragraph (b), the assessments used to
409.4determine nursing facility level of care include the following:
409.5(1) preadmission screening completed under section 256B.0911, subdivision 4a,
409.6by a county, tribe, or managed care organization under contract with the Department
409.7of Human Services; and
409.8(2) a face-to-face long-term care consultation assessment completed under section
409.9256B.0911, subdivision 3a, 3b, or 4d 256.975, subdivisions 7a to 7c, by a county, tribe, or
409.10managed care organization under contract with the Department of Human Services.
409.11    Subd. 5. Short stays. (a) A facility must submit to the commissioner of health an
409.12admission assessment for all residents who stay in the facility 14 days or less.
409.13(b) Notwithstanding the admission assessment requirements of paragraph (a), a
409.14facility may elect to accept a short stay rate with a case mix index of 1.0 for all facility
409.15residents who stay 14 days or less in lieu of submitting an admission assessment. Facilities
409.16shall make this election annually.
409.17(c) Nursing facilities must elect one of the options described in paragraphs (a) and
409.18(b) by reporting to the commissioner of health, as prescribed by the commissioner. The
409.19election is effective on July 1 each year.
409.20    Subd. 6. Penalties for late or nonsubmission. (a) A facility that fails to complete
409.21or submit an assessment according to subdivisions 4 and 5 for a RUG-IV classification
409.22within seven days of the time requirements listed in the Long-Term Care Facility Resident
409.23Assessment Instrument User's Manual is subject to a reduced rate for that resident. The
409.24reduced rate shall be the lowest rate for that facility. The reduced rate is effective on the
409.25day of admission for new admission assessments, on the ARD for significant change in
409.26status assessments, or on the day that the assessment was due for all other assessments and
409.27continues in effect until the first day of the month following the date of submission and
409.28acceptance of the resident's assessment.
409.29    (b) If loss of revenue due to penalties incurred by a facility for any period of 92 days
409.30are equal to or greater than 1.0 percent of the total operating costs on the facility's most
409.31recent annual statistical and cost report, a facility may apply to the commissioner of
409.32human services for a reduction in the total penalty amount. The commissioner of human
409.33services, in consultation with the commissioner of health, may, at the sole discretion of
409.34the commissioner of human services, limit the penalty for residents covered by medical
409.35assistance to 15 days.
410.1    Subd. 7. Notice of resident reimbursement classification. (a) The commissioner
410.2of health shall provide to a nursing facility a notice for each resident of the reimbursement
410.3classification established under subdivision 1. The notice must inform the resident of the
410.4classification that was assigned, the opportunity to review the documentation supporting
410.5the classification, the opportunity to obtain clarification from the commissioner, and the
410.6opportunity to request a reconsideration of the classification and the address and telephone
410.7number of the Office of Ombudsman for Long-Term Care. The commissioner must
410.8transmit the notice of resident classification by electronic means to the nursing facility.
410.9A nursing facility is responsible for the distribution of the notice to each resident, to the
410.10person responsible for the payment of the resident's nursing home expenses, or to another
410.11person designated by the resident. This notice must be distributed within three working
410.12days after the facility's receipt of the electronic file of notice of case mix classifications
410.13from the commissioner of health.
410.14    (b) If a facility submits a modification to the most recent assessment used to establish
410.15a case mix classification conducted under subdivision 3 that results in a change in case
410.16mix classification, the facility shall give written notice to the resident or the resident's
410.17representative about the item that was modified and the reason for the modification. The
410.18notice of modified assessment may be provided at the same time that the resident or
410.19resident's representative is provided the resident's modified notice of classification.
410.20    Subd. 8. Request for reconsideration of resident classifications. (a) The resident,
410.21or resident's representative, or the nursing facility or boarding care home may request that
410.22the commissioner of health reconsider the assigned reimbursement classification. The
410.23request for reconsideration must be submitted in writing to the commissioner within
410.2430 days of the day the resident or the resident's representative receives the resident
410.25classification notice. The request for reconsideration must include the name of the
410.26resident, the name and address of the facility in which the resident resides, the reasons
410.27for the reconsideration, and documentation supporting the request. The documentation
410.28accompanying the reconsideration request is limited to a copy of the MDS that determined
410.29the classification and other documents that would support or change the MDS findings.
410.30(b) Upon request, the nursing facility must give the resident or the resident's
410.31representative a copy of the assessment form and the other documentation that was given
410.32to the commissioner of health to support the assessment findings. The nursing facility
410.33shall also provide access to and a copy of other information from the resident's record that
410.34has been requested by or on behalf of the resident to support a resident's reconsideration
410.35request. A copy of any requested material must be provided within three working days of
410.36receipt of a written request for the information. Notwithstanding any law to the contrary,
411.1the facility may not charge a fee for providing copies of the requested documentation.
411.2If a facility fails to provide the material within this time, it is subject to the issuance
411.3of a correction order and penalty assessment under sections 144.653 and 144A.10.
411.4Notwithstanding those sections, any correction order issued under this subdivision must
411.5require that the nursing facility immediately comply with the request for information and
411.6that as of the date of the issuance of the correction order, the facility shall forfeit to the
411.7state a $100 fine for the first day of noncompliance, and an increase in the $100 fine by
411.8$50 increments for each day the noncompliance continues.
411.9(c) In addition to the information required under paragraphs (a) and (b), a
411.10reconsideration request from a nursing facility must contain the following information: (i)
411.11the date the reimbursement classification notices were received by the facility; (ii) the date
411.12the classification notices were distributed to the resident or the resident's representative;
411.13and (iii) a copy of a notice sent to the resident or to the resident's representative. This
411.14notice must inform the resident or the resident's representative that a reconsideration
411.15of the resident's classification is being requested, the reason for the request, that the
411.16resident's rate will change if the request is approved by the commissioner, the extent of the
411.17change, that copies of the facility's request and supporting documentation are available
411.18for review, and that the resident also has the right to request a reconsideration. If the
411.19facility fails to provide the required information listed in item (iii) with the reconsideration
411.20request, the commissioner may request that the facility provide the information within 14
411.21calendar days. The reconsideration request must be denied if the information is then not
411.22provided, and the facility may not make further reconsideration requests on that specific
411.23reimbursement classification.
411.24(d) Reconsideration by the commissioner must be made by individuals not
411.25involved in reviewing the assessment, audit, or reconsideration that established the
411.26disputed classification. The reconsideration must be based upon the assessment that
411.27determined the classification and upon the information provided to the commissioner
411.28under paragraphs (a) and (b). If necessary for evaluating the reconsideration request, the
411.29commissioner may conduct on-site reviews. Within 15 working days of receiving the
411.30request for reconsideration, the commissioner shall affirm or modify the original resident
411.31classification. The original classification must be modified if the commissioner determines
411.32that the assessment resulting in the classification did not accurately reflect characteristics
411.33of the resident at the time of the assessment. The resident and the nursing facility or
411.34boarding care home shall be notified within five working days after the decision is made.
411.35A decision by the commissioner under this subdivision is the final administrative decision
411.36of the agency for the party requesting reconsideration.
412.1(e) The resident classification established by the commissioner shall be the
412.2classification that applies to the resident while the request for reconsideration is pending.
412.3If a request for reconsideration applies to an assessment used to determine nursing facility
412.4level of care under subdivision 4, paragraph (c), the resident shall continue to be eligible
412.5for nursing facility level of care while the request for reconsideration is pending.
412.6(f) The commissioner may request additional documentation regarding a
412.7reconsideration necessary to make an accurate reconsideration determination.
412.8    Subd. 9. Audit authority. (a) The commissioner shall audit the accuracy of resident
412.9assessments performed under section 256B.438 through any of the following: desk
412.10audits; on-site review of residents and their records; and interviews with staff, residents,
412.11or residents' families. The commissioner shall reclassify a resident if the commissioner
412.12determines that the resident was incorrectly classified.
412.13(b) The commissioner is authorized to conduct on-site audits on an unannounced
412.14basis.
412.15(c) A facility must grant the commissioner access to examine the medical records
412.16relating to the resident assessments selected for audit under this subdivision. The
412.17commissioner may also observe and speak to facility staff and residents.
412.18(d) The commissioner shall consider documentation under the time frames for
412.19coding items on the minimum data set as set out in the Long-Term Care Facility Resident
412.20Assessment Instrument User's Manual published by the Centers for Medicare and
412.21Medicaid Services.
412.22(e) The commissioner shall develop an audit selection procedure that includes the
412.23following factors:
412.24(1) Each facility shall be audited annually. If a facility has two successive audits in
412.25which the percentage of change is five percent or less and the facility has not been the
412.26subject of a special audit in the past 36 months, the facility may be audited biannually.
412.27A stratified sample of 15 percent, with a minimum of ten assessments, of the most
412.28current assessments shall be selected for audit. If more than 20 percent of the RUG-IV
412.29classifications are changed as a result of the audit, the audit shall be expanded to a second
412.3015 percent sample, with a minimum of ten assessments. If the total change between
412.31the first and second samples is 35 percent or greater, the commissioner may expand the
412.32audit to all of the remaining assessments.
412.33(2) If a facility qualifies for an expanded audit, the commissioner may audit the
412.34facility again within six months. If a facility has two expanded audits within a 24-month
412.35period, that facility will be audited at least every six months for the next 18 months.
413.1(3) The commissioner may conduct special audits if the commissioner determines
413.2that circumstances exist that could alter or affect the validity of case mix classifications of
413.3residents. These circumstances include, but are not limited to, the following:
413.4(i) frequent changes in the administration or management of the facility;
413.5(ii) an unusually high percentage of residents in a specific case mix classification;
413.6(iii) a high frequency in the number of reconsideration requests received from
413.7a facility;
413.8(iv) frequent adjustments of case mix classifications as the result of reconsiderations
413.9or audits;
413.10(v) a criminal indictment alleging provider fraud;
413.11(vi) other similar factors that relate to a facility's ability to conduct accurate
413.12assessments;
413.13(vii) an atypical pattern of scoring minimum data set items;
413.14(viii) nonsubmission of assessments;
413.15(ix) late submission of assessments; or
413.16(x) a previous history of audit changes of 35 percent or greater.
413.17(f) Within 15 working days of completing the audit process, the commissioner shall
413.18make available electronically the results of the audit to the facility. If the results of the
413.19audit reflect a change in the resident's case mix classification, a case mix classification
413.20notice will be made available electronically to the facility, using the procedure in
413.21subdivision 7, paragraph (a). The notice must contain the resident's classification and a
413.22statement informing the resident, the resident's authorized representative, and the facility
413.23of their right to review the commissioner's documents supporting the classification and to
413.24request a reconsideration of the classification. This notice must also include the address
413.25and telephone number of the Office of Ombudsman for Long-Term Care.
413.26    Subd. 10. Transition. After implementation of this section, reconsiderations
413.27requested for classifications made under section 144.0722, subdivision 1, shall be
413.28determined under section 144.0722, subdivision 3.
413.29    Subd. 11. Nursing facility level of care. (a) For purposes of medical assistance
413.30payment of long-term care services, a recipient must be determined, using assessments
413.31defined in subdivision 4, to meet one of the following nursing facility level of care criteria:
413.32    (1) the person requires formal clinical monitoring at least once per day;
413.33    (2) the person needs the assistance of another person or constant supervision to begin
413.34and complete at least four of the following activities of living: bathing, bed mobility,
413.35dressing, eating, grooming, toileting, transferring, and walking;
414.1    (3) the person needs the assistance of another person or constant supervision to begin
414.2and complete toileting, transferring, or positioning and the assistance cannot be scheduled;
414.3    (4) the person has significant difficulty with memory, using information, daily
414.4decision making, or behavioral needs that require intervention;
414.5    (5) the person has had a qualifying nursing facility stay of at least 90 days;
414.6    (6) the person meets the nursing facility level of care criteria determined 90 days
414.7after admission or on the first quarterly assessment after admission, whichever is later; or
414.8    (7) the person is determined to be at risk for nursing facility admission or readmission
414.9through a face-to-face long-term care consultation assessment as specified in section
414.10256B.0911, subdivision 3a , 3b, or 4d, by a county, tribe, or managed care organization
414.11under contract with the Department of Human Services. The person is considered at risk
414.12under this clause if the person currently lives alone or will live alone upon discharge or be
414.13homeless without the person's current housing and also meets one of the following criteria:
414.14    (i) the person has experienced a fall resulting in a fracture;
414.15    (ii) the person has been determined to be at risk of maltreatment or neglect,
414.16including self-neglect; or
414.17    (iii) the person has a sensory impairment that substantially impacts functional ability
414.18and maintenance of a community residence.
414.19    (b) The assessment used to establish medical assistance payment for nursing facility
414.20services must be the most recent assessment performed under subdivision 4, paragraph
414.21(b), that occurred no more than 90 calendar days before the effective date of medical
414.22assistance eligibility for payment of long-term care services. In no case shall medical
414.23assistance payment for long-term care services occur prior to the date of the determination
414.24of nursing facility level of care.
414.25    (c) The assessment used to establish medical assistance payment for long-term care
414.26services provided under sections 256B.0915 and 256B.49 and alternative care payment
414.27for services provided under section 256B.0913 must be the most recent face-to-face
414.28assessment performed under section 256B.0911, subdivision 3a, 3b, or 4d, that occurred
414.29no more than 60 calendar days before the effective date of medical assistance eligibility
414.30for payment of long-term care services.
414.31    Subd. 12. Appeal of nursing facility level of care determination. (a) A resident or
414.32prospective resident whose level of care determination results in a denial of long-term care
414.33services can appeal the determination as outlined in section 256B.0911, subdivision 3a,
414.34paragraph (h), clause (9).
414.35    (b) The commissioner of human services shall ensure that notice of changes in
414.36eligibility due to a nursing facility level of care determination is provided to each affected
415.1recipient or the recipient's guardian at least 30 days before the effective date of the change.
415.2The notice shall include the following information:
415.3(1) how to obtain further information on the changes;
415.4(2) how to receive assistance in obtaining other services;
415.5(3) a list of community resources; and
415.6(4) appeal rights.
415.7A recipient who meets the criteria in section 256B.0922, subdivision 2, paragraph (a),
415.8clauses (1) and (2), may request continued services pending appeal within the time period
415.9allowed to request an appeal under section 256.045, subdivision 3, paragraph (h). This
415.10paragraph is in effect for appeals filed between January 1, 2015, and December 31, 2016.
415.11EFFECTIVE DATE.This section is effective January 1, 2015.

415.12    Sec. 3. Minnesota Statutes 2012, section 144A.073, is amended by adding a
415.13subdivision to read:
415.14    Subd. 14. Moratorium exception funding. In fiscal year 2015, the commissioner
415.15of health may approve moratorium exception projects under this section for which the full
415.16annualized state share of medical assistance costs does not exceed $1,000,000.

415.17    Sec. 4. Minnesota Statutes 2012, section 144A.33, subdivision 2, is amended to read:
415.18    Subd. 2. Providing educational services. The Minnesota Board on Aging shall
415.19provide a grant-in-aid to a statewide, independent, nonprofit, consumer-sponsored agency
415.20to provide educational services to councils.

415.21    Sec. 5. Minnesota Statutes 2013 Supplement, section 245.8251, is amended to read:
415.22245.8251 RULES FOR POSITIVE SUPPORT STRATEGIES AND
415.23EMERGENCY MANUAL RESTRAINT PROHIBITIONS AND LIMITS ON
415.24RESTRICTIVE INTERVENTIONS; LICENSED FACILITIES AND PROGRAMS.
415.25    Subdivision 1. Rules governing the use of positive support strategies and
415.26restrictive interventions. The commissioner of human services shall, within 24 months
415.27of May 23, 2013 by August 31, 2015, adopt rules governing to govern the use of positive
415.28support strategies, safety interventions, and ensure the applicability of chapter 245D
415.29prohibitions and limits on the emergency use of manual restraint in and on the use of
415.30restrictive interventions to facilities and services governed by the rules. The rules apply
415.31to all facilities and services licensed under chapter 245D., and all licensed facilities and
415.32licensed services serving persons with a developmental disability or related condition.
416.1For the purposes of this section, "developmental disability or related condition" has the
416.2meaning given in Minnesota Rules, part 9525.0016, subpart 2, items A to E.
416.3    Subd. 2. Data collection. (a) The commissioner shall, with stakeholder input,
416.4develop identify data collection elements specific to incidents of emergency use of
416.5manual restraint and positive support transition plans for persons receiving services from
416.6providers governed licensed facilities and licensed services under chapter 245D and in
416.7licensed facilities and licensed services serving persons with a developmental disability
416.8or related condition as defined in Minnesota Rules, part 9525.0016, subpart 2, effective
416.9January 1, 2014. Providers Licensed facilities and licensed services shall report the data in
416.10a format and at a frequency determined by the commissioner of human services. Providers
416.11shall submit the data to the commissioner and the Office of the Ombudsman for Mental
416.12Health and Developmental Disabilities.
416.13(b) Beginning July 1, 2013, providers licensed facilities and licensed services
416.14 regulated under Minnesota Rules, parts 9525.2700 to 9525.2810, shall submit data
416.15regarding the use of all controlled procedures identified in Minnesota Rules, part
416.169525.2740, in a format and at a frequency determined by the commissioner. Providers
416.17shall submit the data to the commissioner and the Office of the Ombudsman for Mental
416.18Health and Developmental Disabilities.
416.19    Subd. 3. External program review committee. Rules adopted according to this
416.20section shall establish requirements for an external program review committee appointed by
416.21the commissioner to monitor the implementation of the rules and make recommendations
416.22to the commissioner about any needed policy changes after adoption of the rules.
416.23    Subd. 4. Interim review panel. (a) The commissioner shall establish an interim
416.24review panel by August 15, 2014, for the purpose of reviewing requests for emergency
416.25use of procedures that have been part of an approved positive support transition plan
416.26when necessary to protect a person from imminent risk of serious injury as defined in
416.27section 245.91, subdivision 6, due to self-injurious behavior. The panel must make
416.28recommendations to the commissioner to approve or deny these requests based on criteria
416.29to be established by the interim review panel. The interim review panel shall operate until
416.30the external program review committee is established as required under subdivision 3.
416.31(b) Members of the interim review panel shall be selected based on their expertise
416.32and knowledge related to the use of positive support strategies as alternatives to the use
416.33of restrictive interventions. The commissioner shall seek input and recommendations in
416.34establishing the interim review panel. Members of the interim review panel shall include
416.35the following representatives:
416.36(1) an expert in positive supports;
417.1(2) a mental health professional, as defined in section 245.462;
417.2(3) a licensed health professional as defined in section 245D.02, subdivision 14; and
417.3(4) a representative of the Department of Health.

417.4    Sec. 6. Minnesota Statutes 2013 Supplement, section 245A.03, subdivision 7, is
417.5amended to read:
417.6    Subd. 7. Licensing moratorium. (a) The commissioner shall not issue an initial
417.7license for child foster care licensed under Minnesota Rules, parts 2960.3000 to 2960.3340,
417.8or adult foster care licensed under Minnesota Rules, parts 9555.5105 to 9555.6265, under
417.9this chapter for a physical location that will not be the primary residence of the license
417.10holder for the entire period of licensure. If a license is issued during this moratorium, and
417.11the license holder changes the license holder's primary residence away from the physical
417.12location of the foster care license, the commissioner shall revoke the license according
417.13to section 245A.07. The commissioner shall not issue an initial license for a community
417.14residential setting licensed under chapter 245D. Exceptions to the moratorium include:
417.15(1) foster care settings that are required to be registered under chapter 144D;
417.16(2) foster care licenses replacing foster care licenses in existence on May 15, 2009, or
417.17community residential setting licenses replacing adult foster care licenses in existence on
417.18December 31, 2013, and determined to be needed by the commissioner under paragraph (b);
417.19(3) new foster care licenses or community residential setting licenses determined to
417.20be needed by the commissioner under paragraph (b) for the closure of a nursing facility,
417.21ICF/DD, or regional treatment center; restructuring of state-operated services that limits
417.22the capacity of state-operated facilities; or allowing movement to the community for
417.23people who no longer require the level of care provided in state-operated facilities as
417.24provided under section 256B.092, subdivision 13, or 256B.49, subdivision 24;
417.25(4) new foster care licenses or community residential setting licenses determined
417.26to be needed by the commissioner under paragraph (b) for persons requiring hospital
417.27level care; or
417.28(5) new foster care licenses or community residential setting licenses determined to
417.29be needed by the commissioner for the transition of people from personal care assistance
417.30to the home and community-based services.
417.31(b) The commissioner shall determine the need for newly licensed foster care
417.32homes or community residential settings as defined under this subdivision. As part of the
417.33determination, the commissioner shall consider the availability of foster care capacity in
417.34the area in which the licensee seeks to operate, and the recommendation of the local
418.1county board. The determination by the commissioner must be final. A determination of
418.2need is not required for a change in ownership at the same address.
418.3(c) When an adult resident served by the program moves out of a foster home that is
418.4not the primary residence of the license holder according to section 256B.49, subdivision
418.515 , paragraph (f), or the adult community residential setting, the county shall immediately
418.6inform the Department of Human Services Licensing Division. The department shall
418.7decrease the statewide licensed capacity for adult foster care settings where the physical
418.8location is not the primary residence of the license holder, or for adult community
418.9residential settings, if the voluntary changes described in paragraph (e) are not sufficient to
418.10meet the savings required by reductions in licensed bed capacity under Laws 2011, First
418.11Special Session chapter 9, article 7, sections 1 and 40, paragraph (f), and maintain statewide
418.12long-term care residential services capacity within budgetary limits. Implementation of
418.13the statewide licensed capacity reduction shall begin on July 1, 2013. The commissioner
418.14shall delicense up to 128 beds by June 30, 2014, using the needs determination process.
418.15Prior to any involuntary reduction of licensed capacity, the commissioner shall consult
418.16with lead agencies and license holders to determine which adult foster care settings, where
418.17the physical location is not the primary residence of the license holder, or community
418.18residential settings, are licensed for up to five beds, but have operated at less than full
418.19capacity for 12 or more months as of March 1, 2014. The settings that meet these criteria
418.20must be the first to be considered for an involuntary decrease in statewide licensed capacity,
418.21up to a maximum of 35 beds. If more than 35 beds are identified that meet these criteria, the
418.22commissioner shall prioritize the selection of those beds to be closed based on the length
418.23of time the beds have been vacant. The longer a bed has been vacant, the higher priority
418.24it must be given for closure. Under this paragraph, the commissioner has the authority
418.25to reduce unused licensed capacity of a current foster care program, or the community
418.26residential settings, to accomplish the consolidation or closure of settings. Under this
418.27paragraph, the commissioner has the authority to manage statewide capacity, including
418.28adjusting the capacity available to each county and adjusting statewide available capacity,
418.29to meet the statewide needs identified through the process in paragraph (e). A decreased
418.30licensed capacity according to this paragraph is not subject to appeal under this chapter.
418.31(d) Residential settings that would otherwise be subject to the decreased license
418.32capacity established in paragraph (c) shall be exempt under the following circumstances:
418.33(1) until August 1, 2013, the license holder's beds occupied by residents whose
418.34primary diagnosis is mental illness and the license holder is:
418.35(i) a provider of assertive community treatment (ACT) or adult rehabilitative mental
418.36health services (ARMHS) as defined in section 256B.0623;
419.1(ii) a mental health center certified under Minnesota Rules, parts 9520.0750 to
419.29520.0870;
419.3(iii) a mental health clinic certified under Minnesota Rules, parts 9520.0750 to
419.49520.0870; or
419.5(iv) a provider of intensive residential treatment services (IRTS) licensed under
419.6Minnesota Rules, parts 9520.0500 to 9520.0670; or
419.7(2) the license holder's beds occupied by residents whose primary diagnosis is
419.8mental illness and the license holder is certified under the requirements in subdivision 6a
419.9or section 245D.33.
419.10(e) A resource need determination process, managed at the state level, using the
419.11available reports required by section 144A.351, and other data and information shall
419.12be used to determine where the reduced capacity required under paragraph (c) will be
419.13implemented. The commissioner shall consult with the stakeholders described in section
419.14144A.351 , and employ a variety of methods to improve the state's capacity to meet
419.15long-term care service needs within budgetary limits, including seeking proposals from
419.16service providers or lead agencies to change service type, capacity, or location to improve
419.17services, increase the independence of residents, and better meet needs identified by the
419.18long-term care services reports and statewide data and information. By February 1, 2013,
419.19and August 1, 2014, and each following year, the commissioner shall provide information
419.20and data on the overall capacity of licensed long-term care services, actions taken under
419.21this subdivision to manage statewide long-term care services and supports resources, and
419.22any recommendations for change to the legislative committees with jurisdiction over
419.23health and human services budget.
419.24    (f) At the time of application and reapplication for licensure, the applicant and the
419.25license holder that are subject to the moratorium or an exclusion established in paragraph
419.26(a) are required to inform the commissioner whether the physical location where the foster
419.27care will be provided is or will be the primary residence of the license holder for the entire
419.28period of licensure. If the primary residence of the applicant or license holder changes, the
419.29applicant or license holder must notify the commissioner immediately. The commissioner
419.30shall print on the foster care license certificate whether or not the physical location is the
419.31primary residence of the license holder.
419.32    (g) License holders of foster care homes identified under paragraph (f) that are not
419.33the primary residence of the license holder and that also provide services in the foster care
419.34home that are covered by a federally approved home and community-based services
419.35waiver, as authorized under section 256B.0915, 256B.092, or 256B.49, must inform the
420.1human services licensing division that the license holder provides or intends to provide
420.2these waiver-funded services.

420.3    Sec. 7. Minnesota Statutes 2013 Supplement, section 245A.042, subdivision 3, is
420.4amended to read:
420.5    Subd. 3. Implementation. (a) The commissioner shall implement the
420.6responsibilities of this chapter according to the timelines in paragraphs (b) and (c)
420.7only within the limits of available appropriations or other administrative cost recovery
420.8methodology.
420.9(b) The licensure of home and community-based services according to this section
420.10shall be implemented January 1, 2014. License applications shall be received and
420.11processed on a phased-in schedule as determined by the commissioner beginning July
420.121, 2013. Licenses will be issued thereafter upon the commissioner's determination that
420.13the application is complete according to section 245A.04.
420.14(c) Within the limits of available appropriations or other administrative cost recovery
420.15methodology, implementation of compliance monitoring must be phased in after January
420.161, 2014.
420.17(1) Applicants who do not currently hold a license issued under chapter 245B must
420.18receive an initial compliance monitoring visit after 12 months of the effective date of the
420.19initial license for the purpose of providing technical assistance on how to achieve and
420.20maintain compliance with the applicable law or rules governing the provision of home and
420.21community-based services under chapter 245D. If during the review the commissioner
420.22finds that the license holder has failed to achieve compliance with an applicable law or
420.23rule and this failure does not imminently endanger the health, safety, or rights of the
420.24persons served by the program, the commissioner may issue a licensing review report with
420.25recommendations for achieving and maintaining compliance.
420.26(2) Applicants who do currently hold a license issued under this chapter must receive
420.27a compliance monitoring visit after 24 months of the effective date of the initial license.
420.28(d) Nothing in this subdivision shall be construed to limit the commissioner's
420.29authority to suspend or revoke a license or issue a fine at any time under section 245A.07,
420.30or issue correction orders and make a license conditional for failure to comply with
420.31applicable laws or rules under section 245A.06, based on the nature, chronicity, or severity
420.32of the violation of law or rule and the effect of the violation on the health, safety, or
420.33rights of persons served by the program.
420.34(e) License holders governed under chapter 245D must ensure compliance with the
420.35following requirements within the stated timelines:
421.1(1) service initiation and service planning requirements must be met at the next
421.2annual meeting of the person's support team or by January 1, 2015, whichever is later,
421.3for the following:
421.4    (i) provision of a written notice that identifies the service recipient rights and an
421.5explanation of those rights as required under section 245D.04, subdivision 1;
421.6(ii) service planning for basic support services as required under section 245D.07,
421.7subdivision 2; and
421.8(iii) service planning for intensive support services under section 245D.071,
421.9subdivisions 3 and 4;
421.10(2) staff orientation to program requirements as required under section 245D.09,
421.11subdivision 4, for staff hired before January 1, 2014, must be met by January 1, 2015.
421.12The license holder may otherwise provide documentation verifying these requirements
421.13were met before January 1, 2014;
421.14(3) development of policy and procedures as required under section 245D.11, must
421.15be completed no later than August 31, 2014;
421.16(4) written or electronic notice and copies of policies and procedures must be
421.17provided to all persons or their legal representatives and case managers as required under
421.18section 245D.10, subdivision 4, paragraphs (b) and (c), by September 15, 2014, or within
421.1930 days of development of the required policies and procedures, whichever is earlier; and
421.20(5) all employees must be informed of the revisions and training must be provided on
421.21implementation of the revised policies and procedures as required under section 245D.10,
421.22subdivision 4, paragraph (d), by September 15, 2014, or within 30 days of development of
421.23the required policies and procedures, whichever is earlier.

421.24    Sec. 8. Minnesota Statutes 2013 Supplement, section 245A.16, subdivision 1, is
421.25amended to read:
421.26    Subdivision 1. Delegation of authority to agencies. (a) County agencies and
421.27private agencies that have been designated or licensed by the commissioner to perform
421.28licensing functions and activities under section 245A.04 and background studies for family
421.29child care under chapter 245C; to recommend denial of applicants under section 245A.05;
421.30to issue correction orders, to issue variances, and recommend a conditional license under
421.31section 245A.06, or to recommend suspending or revoking a license or issuing a fine under
421.32section 245A.07, shall comply with rules and directives of the commissioner governing
421.33those functions and with this section. The following variances are excluded from the
421.34delegation of variance authority and may be issued only by the commissioner:
422.1    (1) dual licensure of family child care and child foster care, dual licensure of child
422.2and adult foster care, and adult foster care and family child care;
422.3    (2) adult foster care maximum capacity;
422.4    (3) adult foster care minimum age requirement;
422.5    (4) child foster care maximum age requirement;
422.6    (5) variances regarding disqualified individuals except that county agencies may
422.7issue variances under section 245C.30 regarding disqualified individuals when the county
422.8is responsible for conducting a consolidated reconsideration according to sections 245C.25
422.9and 245C.27, subdivision 2, clauses (a) and (b), of a county maltreatment determination
422.10and a disqualification based on serious or recurring maltreatment;
422.11    (6) the required presence of a caregiver in the adult foster care residence during
422.12normal sleeping hours; and
422.13    (7) variances for community residential setting licenses under chapter 245D.
422.14Except as provided in section 245A.14, subdivision 4, paragraph (e), a county agency
422.15must not grant a license holder a variance to exceed the maximum allowable family child
422.16care license capacity of 14 children.
422.17    (b) County agencies must report information about disqualification reconsiderations
422.18under sections 245C.25 and 245C.27, subdivision 2, paragraphs (a) and (b), and variances
422.19granted under paragraph (a), clause (5), to the commissioner at least monthly in a format
422.20prescribed by the commissioner.
422.21    (c) For family day care programs, the commissioner may authorize licensing reviews
422.22every two years after a licensee has had at least one annual review.
422.23    (d) For family adult day services programs, the commissioner may authorize
422.24licensing reviews every two years after a licensee has had at least one annual review.
422.25    (e) A license issued under this section may be issued for up to two years.
422.26(f) During implementation of chapter 245D, the commissioner shall consider:
422.27(1) the role of counties in quality assurance;
422.28(2) the duties of county licensing staff; and
422.29(3) the possible use of joint powers agreements, according to section 471.59, with
422.30counties through which some licensing duties under chapter 245D may be delegated by
422.31the commissioner to the counties.
422.32Any consideration related to this paragraph must meet all of the requirements of the
422.33corrective action plan ordered by the federal Centers for Medicare and Medicaid Services.
422.34(g) Licensing authority specific to section 245D.06, subdivisions 5, 6, 7, and 8, or
422.35successor provisions; and section 245D.061 or successor provisions, for family child
422.36foster care programs providing out-of-home respite, as identified in section 245D.03,
423.1subdivision 1, paragraph (b), clause (1), is excluded from the delegation of authority
423.2to county and private agencies.

423.3    Sec. 9. Minnesota Statutes 2013 Supplement, section 245D.02, subdivision 3, is
423.4amended to read:
423.5    Subd. 3. Case manager. "Case manager" means the individual designated
423.6to provide waiver case management services, care coordination, or long-term care
423.7consultation, as specified in sections 256B.0913, 256B.0915, 256B.092, and 256B.49,
423.8or successor provisions. For purposes of this chapter, "case manager" includes case
423.9management services as defined in Minnesota Rules, part 9520.0902, subpart 3.

423.10    Sec. 10. Minnesota Statutes 2013 Supplement, section 245D.02, subdivision 4b,
423.11is amended to read:
423.12    Subd. 4b. Coordinated service and support plan. "Coordinated service and
423.13support plan" has the meaning given in sections 256B.0913, subdivision 8; 256B.0915,
423.14subdivision 6; 256B.092, subdivision 1b; and 256B.49, subdivision 15, or successor
423.15provisions. For purposes of this chapter, "coordinated service and support plan" includes
423.16the individual program plan or individual treatment plan as defined in Minnesota Rules,
423.17part 9520.0510, subpart 12.

423.18    Sec. 11. Minnesota Statutes 2013 Supplement, section 245D.02, subdivision 8b,
423.19is amended to read:
423.20    Subd. 8b. Expanded support team. "Expanded support team" means the members
423.21of the support team defined in subdivision 46 34 and a licensed health or mental health
423.22professional or other licensed, certified, or qualified professionals or consultants working
423.23with the person and included in the team at the request of the person or the person's legal
423.24representative.

423.25    Sec. 12. Minnesota Statutes 2013 Supplement, section 245D.02, subdivision 11,
423.26is amended to read:
423.27    Subd. 11. Incident. "Incident" means an occurrence which involves a person and
423.28requires the program to make a response that is not a part of the program's ordinary
423.29provision of services to that person, and includes:
423.30(1) serious injury of a person as determined by section 245.91, subdivision 6;
423.31(2) a person's death;
424.1(3) any medical emergency, unexpected serious illness, or significant unexpected
424.2change in an illness or medical condition of a person that requires the program to call
424.3911, physician treatment, or hospitalization;
424.4(4) any mental health crisis that requires the program to call 911 or, a mental
424.5health crisis intervention team, or a similar mental health response team or service when
424.6available and appropriate;
424.7(5) an act or situation involving a person that requires the program to call 911,
424.8law enforcement, or the fire department;
424.9(6) a person's unauthorized or unexplained absence from a program;
424.10(7) conduct by a person receiving services against another person receiving services
424.11that:
424.12(i) is so severe, pervasive, or objectively offensive that it substantially interferes with
424.13a person's opportunities to participate in or receive service or support;
424.14(ii) places the person in actual and reasonable fear of harm;
424.15(iii) places the person in actual and reasonable fear of damage to property of the
424.16person; or
424.17(iv) substantially disrupts the orderly operation of the program;
424.18(8) any sexual activity between persons receiving services involving force or
424.19coercion as defined under section 609.341, subdivisions 3 and 14;
424.20(9) any emergency use of manual restraint as identified in section 245D.061 or
424.21successor provisions; or
424.22(10) a report of alleged or suspected child or vulnerable adult maltreatment under
424.23section 626.556 or 626.557.

424.24    Sec. 13. Minnesota Statutes 2013 Supplement, section 245D.02, subdivision 15b,
424.25is amended to read:
424.26    Subd. 15b. Mechanical restraint. (a) Except for devices worn by the person that
424.27trigger electronic alarms to warn staff that a person is leaving a room or area, which
424.28do not, in and of themselves, restrict freedom of movement, or the use of adaptive aids
424.29or equipment or orthotic devices ordered by a health care professional used to treat or
424.30manage a medical condition, "Mechanical restraint" means the use of devices, materials,
424.31or equipment attached or adjacent to the person's body, or the use of practices that are
424.32intended to restrict freedom of movement or normal access to one's body or body parts,
424.33or limits a person's voluntary movement or holds a person immobile as an intervention
424.34precipitated by a person's behavior. The term applies to the use of mechanical restraint
424.35used to prevent injury with persons who engage in self-injurious behaviors, such as
425.1head-banging, gouging, or other actions resulting in tissue damage that have caused or
425.2could cause medical problems resulting from the self-injury.
425.3(b) Mechanical restraint does not include the following:
425.4(1) devices worn by the person that trigger electronic alarms to warn staff that a
425.5person is leaving a room or area, which do not, in and of themselves, restrict freedom of
425.6movement; or
425.7(2) the use of adaptive aids or equipment or orthotic devices ordered by a health care
425.8professional used to treat or manage a medical condition.

425.9    Sec. 14. Minnesota Statutes 2013 Supplement, section 245D.02, subdivision 23,
425.10is amended to read:
425.11    Subd. 23. Person with a disability. "Person with a disability" means a person
425.12determined to have a disability by the commissioner's state medical review team as
425.13identified in section 256B.055, subdivision 7, the Social Security Administration, or the
425.14person is determined to have a developmental disability as defined in Minnesota Rules,
425.15part 9525.0016, subpart 2, item B, or a related condition as defined in section 252.27,
425.16subdivision 1a Minnesota Rules, part 9525.0016, subpart 2, items A to E.

425.17    Sec. 15. Minnesota Statutes 2013 Supplement, section 245D.02, subdivision 29,
425.18is amended to read:
425.19    Subd. 29. Seclusion. "Seclusion" means the placement of a person alone in: (1)
425.20removing a person involuntarily to a room from which exit is prohibited by a staff person
425.21or a mechanism such as a lock, a device, or an object positioned to hold the door closed
425.22or otherwise prevent the person from leaving the room.; or (2) otherwise involuntarily
425.23removing or separating a person from an area, activity, situation, or social contact with
425.24others and blocking or preventing the person's return.

425.25    Sec. 16. Minnesota Statutes 2013 Supplement, section 245D.02, subdivision 34,
425.26is amended to read:
425.27    Subd. 34. Support team. "Support team" means the service planning team
425.28identified in section 256B.49, subdivision 15, or; the interdisciplinary team identified in
425.29Minnesota Rules, part 9525.0004, subpart 14; or the case management team as defined in
425.30Minnesota Rules, part 9520.0902, subpart 6.

425.31    Sec. 17. Minnesota Statutes 2013 Supplement, section 245D.02, subdivision 34a,
425.32is amended to read:
426.1    Subd. 34a. Time out. "Time out" means removing a person involuntarily from an
426.2ongoing activity to a room, either locked or unlocked, or otherwise separating a person
426.3from others in a way that prevents social contact and prevents the person from leaving the
426.4situation if the person chooses the involuntary removal of a person for a period of time to
426.5a designated area from which the person is not prevented from leaving. For the purpose of
426.6this chapter, "time out" does not mean voluntary removal or self-removal for the purpose
426.7of calming, prevention of escalation, or de-escalation of behavior for a period of up to 15
426.8minutes. "Time out" does not include a person voluntarily moving from an ongoing activity
426.9to an unlocked room or otherwise separating from a situation or social contact with others
426.10if the person chooses. For the purposes of this definition, "voluntarily" means without
426.11being forced, compelled, or coerced.; nor does it mean taking a brief break or rest from an
426.12activity for the purpose of providing the person an opportunity to regain self-control.

426.13    Sec. 18. Minnesota Statutes 2013 Supplement, section 245D.02, is amended by adding
426.14a subdivision to read:
426.15    Subd. 35b. Unlicensed staff. "Unlicensed staff" means individuals not otherwise
426.16licensed or certified by a governmental health board or agency.

426.17    Sec. 19. Minnesota Statutes 2013 Supplement, section 245D.03, subdivision 1, is
426.18amended to read:
426.19    Subdivision 1. Applicability. (a) The commissioner shall regulate the provision of
426.20home and community-based services to persons with disabilities and persons age 65 and
426.21older pursuant to this chapter. The licensing standards in this chapter govern the provision
426.22of basic support services and intensive support services.
426.23(b) Basic support services provide the level of assistance, supervision, and care that
426.24is necessary to ensure the health and safety of the person and do not include services that
426.25are specifically directed toward the training, treatment, habilitation, or rehabilitation of
426.26the person. Basic support services include:
426.27(1) in-home and out-of-home respite care services as defined in section 245A.02,
426.28subdivision 15, and under the brain injury, community alternative care, community
426.29alternatives for disabled individuals, developmental disability, and elderly waiver plans,
426.30excluding out-of-home respite care provided to children in a family child foster care home
426.31licensed under Minnesota Rules, parts 2960.3000 to 2960.3100, when the child foster care
426.32license holder complies with the requirements under section 245D.06, subdivisions 5, 6,
426.337, and 8, or successor provisions; and section 245D.061 or successor provisions, which
427.1must be stipulated in the statement of intended use required under Minnesota Rules,
427.2part 2960.3000, subpart 4;
427.3(2) adult companion services as defined under the brain injury, community
427.4alternatives for disabled individuals, and elderly waiver plans, excluding adult companion
427.5services provided under the Corporation for National and Community Services Senior
427.6Companion Program established under the Domestic Volunteer Service Act of 1973,
427.7Public Law 98-288;
427.8(3) personal support as defined under the developmental disability waiver plan;
427.9(4) 24-hour emergency assistance, personal emergency response as defined under the
427.10community alternatives for disabled individuals and developmental disability waiver plans;
427.11(5) night supervision services as defined under the brain injury waiver plan; and
427.12(6) homemaker services as defined under the community alternatives for disabled
427.13individuals, brain injury, community alternative care, developmental disability, and elderly
427.14waiver plans, excluding providers licensed by the Department of Health under chapter
427.15144A and those providers providing cleaning services only.
427.16(c) Intensive support services provide assistance, supervision, and care that is
427.17necessary to ensure the health and safety of the person and services specifically directed
427.18toward the training, habilitation, or rehabilitation of the person. Intensive support services
427.19include:
427.20(1) intervention services, including:
427.21(i) behavioral support services as defined under the brain injury and community
427.22alternatives for disabled individuals waiver plans;
427.23(ii) in-home or out-of-home crisis respite services as defined under the developmental
427.24disability waiver plan; and
427.25(iii) specialist services as defined under the current developmental disability waiver
427.26plan;
427.27(2) in-home support services, including:
427.28(i) in-home family support and supported living services as defined under the
427.29developmental disability waiver plan;
427.30(ii) independent living services training as defined under the brain injury and
427.31community alternatives for disabled individuals waiver plans; and
427.32(iii) semi-independent living services;
427.33(3) residential supports and services, including:
427.34(i) supported living services as defined under the developmental disability waiver
427.35plan provided in a family or corporate child foster care residence, a family adult foster
427.36care residence, a community residential setting, or a supervised living facility;
428.1(ii) foster care services as defined in the brain injury, community alternative care,
428.2and community alternatives for disabled individuals waiver plans provided in a family or
428.3corporate child foster care residence, a family adult foster care residence, or a community
428.4residential setting; and
428.5(iii) residential services provided to more than four persons with developmental
428.6disabilities in a supervised living facility that is certified by the Department of Health as
428.7an ICF/DD, including ICFs/DD;
428.8(4) day services, including:
428.9(i) structured day services as defined under the brain injury waiver plan;
428.10(ii) day training and habilitation services under sections 252.40 to 252.46, and as
428.11defined under the developmental disability waiver plan; and
428.12(iii) prevocational services as defined under the brain injury and community
428.13alternatives for disabled individuals waiver plans; and
428.14(5) supported employment as defined under the brain injury, developmental
428.15disability, and community alternatives for disabled individuals waiver plans.

428.16    Sec. 20. Minnesota Statutes 2013 Supplement, section 245D.03, is amended by adding
428.17a subdivision to read:
428.18    Subd. 1a. Effect. The home and community-based services standards establish
428.19health, safety, welfare, and rights protections for persons receiving services governed by
428.20this chapter. The standards recognize the diversity of persons receiving these services and
428.21require that these services are provided in a manner that meets each person's individual
428.22needs and ensures continuity in service planning, care, and coordination between the
428.23license holder and members of each person's support team or expanded support team.

428.24    Sec. 21. Minnesota Statutes 2013 Supplement, section 245D.03, subdivision 2, is
428.25amended to read:
428.26    Subd. 2. Relationship to other standards governing home and community-based
428.27services. (a) A license holder governed by this chapter is also subject to the licensure
428.28requirements under chapter 245A.
428.29(b) A corporate or family child foster care site controlled by a license holder and
428.30providing services governed by this chapter is exempt from compliance with section
428.31245D.04. This exemption applies to foster care homes where at least one resident is
428.32receiving residential supports and services licensed according to this chapter. This chapter
428.33does not apply to corporate or family child foster care homes that do not provide services
428.34licensed under this chapter.
429.1(c) A family adult foster care site controlled by a license holder and providing
429.2services governed by this chapter is exempt from compliance with Minnesota Rules,
429.3parts 9555.6185; 9555.6225, subpart 8; 9555.6245; 9555.6255; and 9555.6265. These
429.4exemptions apply to family adult foster care homes where at least one resident is receiving
429.5residential supports and services licensed according to this chapter. This chapter does
429.6not apply to family adult foster care homes that do not provide services licensed under
429.7this chapter.
429.8(d) A license holder providing services licensed according to this chapter in a
429.9supervised living facility is exempt from compliance with sections section 245D.04;
429.10245D.05, subdivision 2; and 245D.06, subdivision 2, clauses (1), (4), and (5).
429.11(e) A license holder providing residential services to persons in an ICF/DD is exempt
429.12from compliance with sections 245D.04; 245D.05, subdivision 1b; 245D.06, subdivision
429.132 , clauses (4) and (5); 245D.071, subdivisions 4 and 5; 245D.081, subdivision 2; 245D.09,
429.14subdivision 7; 245D.095, subdivision 2; and 245D.11, subdivision 3.
429.15(f) A license holder providing homemaker services licensed according to this chapter
429.16and registered according to chapter 144A is exempt from compliance with section 245D.04.
429.17(g) Nothing in this chapter prohibits a license holder from concurrently serving
429.18persons without disabilities or people who are or are not age 65 and older, provided this
429.19chapter's standards are met as well as other relevant standards.
429.20(h) The documentation required under sections 245D.07 and 245D.071 must meet
429.21the individual program plan requirements identified in section 256B.092 or successor
429.22provisions.

429.23    Sec. 22. Minnesota Statutes 2013 Supplement, section 245D.03, subdivision 3, is
429.24amended to read:
429.25    Subd. 3. Variance. If the conditions in section 245A.04, subdivision 9, are met,
429.26the commissioner may grant a variance to any of the requirements in this chapter, except
429.27sections 245D.04; 245D.06, subdivision 4, paragraph (b), and subdivision 6, or successor
429.28provisions; and 245D.061, subdivision 3, or provisions governing data practices and
429.29information rights of persons.

429.30    Sec. 23. Minnesota Statutes 2013 Supplement, section 245D.04, subdivision 3, is
429.31amended to read:
429.32    Subd. 3. Protection-related rights. (a) A person's protection-related rights include
429.33the right to:
430.1(1) have personal, financial, service, health, and medical information kept private,
430.2and be advised of disclosure of this information by the license holder;
430.3(2) access records and recorded information about the person in accordance with
430.4applicable state and federal law, regulation, or rule;
430.5(3) be free from maltreatment;
430.6(4) be free from restraint, time out, or seclusion, restrictive intervention, or other
430.7prohibited procedure identified in section 245D.06, subdivision 5, or successor provisions,
430.8 except for: (i) emergency use of manual restraint to protect the person from imminent
430.9danger to self or others according to the requirements in section 245D.06; 245D.061 or
430.10successor provisions; or (ii) the use of safety interventions as part of a positive support
430.11transition plan under section 245D.06, subdivision 8, or successor provisions;
430.12(5) receive services in a clean and safe environment when the license holder is the
430.13owner, lessor, or tenant of the service site;
430.14(6) be treated with courtesy and respect and receive respectful treatment of the
430.15person's property;
430.16(7) reasonable observance of cultural and ethnic practice and religion;
430.17(8) be free from bias and harassment regarding race, gender, age, disability,
430.18spirituality, and sexual orientation;
430.19(9) be informed of and use the license holder's grievance policy and procedures,
430.20including knowing how to contact persons responsible for addressing problems and to
430.21appeal under section 256.045;
430.22(10) know the name, telephone number, and the Web site, e-mail, and street
430.23addresses of protection and advocacy services, including the appropriate state-appointed
430.24ombudsman, and a brief description of how to file a complaint with these offices;
430.25(11) assert these rights personally, or have them asserted by the person's family,
430.26authorized representative, or legal representative, without retaliation;
430.27(12) give or withhold written informed consent to participate in any research or
430.28experimental treatment;
430.29(13) associate with other persons of the person's choice;
430.30(14) personal privacy; and
430.31(15) engage in chosen activities.
430.32(b) For a person residing in a residential site licensed according to chapter 245A,
430.33or where the license holder is the owner, lessor, or tenant of the residential service site,
430.34protection-related rights also include the right to:
430.35(1) have daily, private access to and use of a non-coin-operated telephone for local
430.36calls and long-distance calls made collect or paid for by the person;
431.1(2) receive and send, without interference, uncensored, unopened mail or electronic
431.2correspondence or communication;
431.3(3) have use of and free access to common areas in the residence; and
431.4(4) privacy for visits with the person's spouse, next of kin, legal counsel, religious
431.5advisor, or others, in accordance with section 363A.09 of the Human Rights Act, including
431.6privacy in the person's bedroom.
431.7(c) Restriction of a person's rights under subdivision 2, clause (10), or paragraph (a),
431.8clauses (13) to (15), or paragraph (b) is allowed only if determined necessary to ensure
431.9the health, safety, and well-being of the person. Any restriction of those rights must be
431.10documented in the person's coordinated service and support plan or coordinated service
431.11and support plan addendum. The restriction must be implemented in the least restrictive
431.12alternative manner necessary to protect the person and provide support to reduce or
431.13eliminate the need for the restriction in the most integrated setting and inclusive manner.
431.14The documentation must include the following information:
431.15(1) the justification for the restriction based on an assessment of the person's
431.16vulnerability related to exercising the right without restriction;
431.17(2) the objective measures set as conditions for ending the restriction;
431.18(3) a schedule for reviewing the need for the restriction based on the conditions
431.19for ending the restriction to occur semiannually from the date of initial approval, at a
431.20minimum, or more frequently if requested by the person, the person's legal representative,
431.21if any, and case manager; and
431.22(4) signed and dated approval for the restriction from the person, or the person's
431.23legal representative, if any. A restriction may be implemented only when the required
431.24approval has been obtained. Approval may be withdrawn at any time. If approval is
431.25withdrawn, the right must be immediately and fully restored.

431.26    Sec. 24. Minnesota Statutes 2013 Supplement, section 245D.05, subdivision 1, is
431.27amended to read:
431.28    Subdivision 1. Health needs. (a) The license holder is responsible for meeting
431.29health service needs assigned in the coordinated service and support plan or the
431.30coordinated service and support plan addendum, consistent with the person's health needs.
431.31The license holder is responsible for promptly notifying the person's legal representative,
431.32if any, and the case manager of changes in a person's physical and mental health needs
431.33affecting health service needs assigned to the license holder in the coordinated service and
431.34support plan or the coordinated service and support plan addendum, when discovered by
432.1the license holder, unless the license holder has reason to know the change has already
432.2been reported. The license holder must document when the notice is provided.
432.3(b) If responsibility for meeting the person's health service needs has been assigned
432.4to the license holder in the coordinated service and support plan or the coordinated service
432.5and support plan addendum, the license holder must maintain documentation on how the
432.6person's health needs will be met, including a description of the procedures the license
432.7holder will follow in order to:
432.8(1) provide medication setup, assistance, or medication administration according
432.9to this chapter. Unlicensed staff responsible for medication setup or medication
432.10administration under this section must complete training according to section 245D.09,
432.11subdivision 4a, paragraph (d);
432.12(2) monitor health conditions according to written instructions from a licensed
432.13health professional;
432.14(3) assist with or coordinate medical, dental, and other health service appointments; or
432.15(4) use medical equipment, devices, or adaptive aides or technology safely and
432.16correctly according to written instructions from a licensed health professional.

432.17    Sec. 25. Minnesota Statutes 2013 Supplement, section 245D.05, subdivision 1a,
432.18is amended to read:
432.19    Subd. 1a. Medication setup. (a) For the purposes of this subdivision, "medication
432.20setup" means the arranging of medications according to instructions from the pharmacy,
432.21the prescriber, or a licensed nurse, for later administration when the license holder
432.22is assigned responsibility for medication assistance or medication administration in
432.23the coordinated service and support plan or the coordinated service and support plan
432.24addendum. A prescription label or the prescriber's written or electronically recorded order
432.25for the prescription is sufficient to constitute written instructions from the prescriber.
432.26(b) If responsibility for medication setup is assigned to the license holder in
432.27the coordinated service and support plan or the coordinated service and support plan
432.28addendum, or if the license holder provides it as part of medication assistance or
432.29medication administration, the license holder must document in the person's medication
432.30administration record: dates of setup, name of medication, quantity of dose, times to be
432.31administered, and route of administration at time of setup; and, when the person will be
432.32away from home, to whom the medications were given.

432.33    Sec. 26. Minnesota Statutes 2013 Supplement, section 245D.05, subdivision 1b,
432.34is amended to read:
433.1    Subd. 1b. Medication assistance. (a) For purposes of this subdivision, "medication
433.2assistance" means any of the following:
433.3(1) bringing to the person and opening a container of previously set up medications,
433.4emptying the container into the person's hand, or opening and giving the medications in
433.5the original container to the person under the direction of the person;
433.6(2) bringing to the person liquids or food to accompany the medication; or
433.7(3) providing reminders, in person, remotely, or through programming devices
433.8such as telephones, alarms, or medication boxes, to take regularly scheduled medication
433.9or perform regularly scheduled treatments and exercises.
433.10(b) If responsibility for medication assistance is assigned to the license holder
433.11in the coordinated service and support plan or the coordinated service and support
433.12plan addendum, the license holder must ensure that the requirements of subdivision 2,
433.13paragraph (b), have been met when staff provides medication assistance to enable is
433.14provided in a manner that enables a person to self-administer medication or treatment
433.15when the person is capable of directing the person's own care, or when the person's legal
433.16representative is present and able to direct care for the person. For the purposes of this
433.17subdivision, "medication assistance" means any of the following:
433.18(1) bringing to the person and opening a container of previously set up medications,
433.19emptying the container into the person's hand, or opening and giving the medications in
433.20the original container to the person;
433.21(2) bringing to the person liquids or food to accompany the medication; or
433.22(3) providing reminders to take regularly scheduled medication or perform regularly
433.23scheduled treatments and exercises.

433.24    Sec. 27. Minnesota Statutes 2013 Supplement, section 245D.05, subdivision 2, is
433.25amended to read:
433.26    Subd. 2. Medication administration. (a) If responsibility for medication
433.27administration is assigned to the license holder in the coordinated service and support
433.28plan or the coordinated service and support plan addendum, the license holder must
433.29implement the following medication administration procedures to ensure a person takes
433.30medications and treatments as prescribed For purposes of this subdivision, "medication
433.31administration" means:
433.32(1) checking the person's medication record;
433.33(2) preparing the medication as necessary;
433.34(3) administering the medication or treatment to the person;
434.1(4) documenting the administration of the medication or treatment or the reason for
434.2not administering the medication or treatment; and
434.3(5) reporting to the prescriber or a nurse any concerns about the medication or
434.4treatment, including side effects, effectiveness, or a pattern of the person refusing to
434.5take the medication or treatment as prescribed. Adverse reactions must be immediately
434.6reported to the prescriber or a nurse.
434.7(b)(1) If responsibility for medication administration is assigned to the license holder
434.8in the coordinated service and support plan or the coordinated service and support plan
434.9addendum, the license holder must implement medication administration procedures
434.10to ensure a person takes medications and treatments as prescribed. The license holder
434.11must ensure that the requirements in clauses (2) to (4) and (3) have been met before
434.12administering medication or treatment.
434.13(2) The license holder must obtain written authorization from the person or the
434.14person's legal representative to administer medication or treatment and must obtain
434.15reauthorization annually as needed. This authorization shall remain in effect unless it is
434.16withdrawn in writing and may be withdrawn at any time. If the person or the person's
434.17legal representative refuses to authorize the license holder to administer medication, the
434.18medication must not be administered. The refusal to authorize medication administration
434.19must be reported to the prescriber as expediently as possible.
434.20(3) The staff person responsible for administering the medication or treatment must
434.21complete medication administration training according to section 245D.09, subdivision
434.22 4a, paragraphs (a) and (c), and, as applicable to the person, paragraph (d).
434.23(4) (3) For a license holder providing intensive support services, the medication or
434.24treatment must be administered according to the license holder's medication administration
434.25policy and procedures as required under section 245D.11, subdivision 2, clause (3).
434.26(c) The license holder must ensure the following information is documented in the
434.27person's medication administration record:
434.28(1) the information on the current prescription label or the prescriber's current
434.29written or electronically recorded order or prescription that includes the person's name,
434.30description of the medication or treatment to be provided, and the frequency and other
434.31information needed to safely and correctly administer the medication or treatment to
434.32ensure effectiveness;
434.33(2) information on any risks or other side effects that are reasonable to expect, and
434.34any contraindications to its use. This information must be readily available to all staff
434.35administering the medication;
435.1(3) the possible consequences if the medication or treatment is not taken or
435.2administered as directed;
435.3(4) instruction on when and to whom to report the following:
435.4(i) if a dose of medication is not administered or treatment is not performed as
435.5prescribed, whether by error by the staff or the person or by refusal by the person; and
435.6(ii) the occurrence of possible adverse reactions to the medication or treatment;
435.7(5) notation of any occurrence of a dose of medication not being administered or
435.8treatment not performed as prescribed, whether by error by the staff or the person or by
435.9refusal by the person, or of adverse reactions, and when and to whom the report was
435.10made; and
435.11(6) notation of when a medication or treatment is started, administered, changed, or
435.12discontinued.

435.13    Sec. 28. Minnesota Statutes 2013 Supplement, section 245D.05, subdivision 4, is
435.14amended to read:
435.15    Subd. 4. Reviewing and reporting medication and treatment issues. (a) When
435.16assigned responsibility for medication administration, the license holder must ensure
435.17that the information maintained in the medication administration record is current and
435.18is regularly reviewed to identify medication administration errors. At a minimum, the
435.19review must be conducted every three months, or more frequently as directed in the
435.20coordinated service and support plan or coordinated service and support plan addendum
435.21or as requested by the person or the person's legal representative. Based on the review,
435.22the license holder must develop and implement a plan to correct patterns of medication
435.23administration errors when identified.
435.24(b) If assigned responsibility for medication assistance or medication administration,
435.25the license holder must report the following to the person's legal representative and case
435.26manager as they occur or as otherwise directed in the coordinated service and support plan
435.27or the coordinated service and support plan addendum:
435.28(1) any reports made to the person's physician or prescriber required under
435.29subdivision 2, paragraph (c), clause (4);
435.30(2) a person's refusal or failure to take or receive medication or treatment as
435.31prescribed; or
435.32(3) concerns about a person's self-administration of medication or treatment.

435.33    Sec. 29. Minnesota Statutes 2013 Supplement, section 245D.05, subdivision 5, is
435.34amended to read:
436.1    Subd. 5. Injectable medications. Injectable medications may be administered
436.2according to a prescriber's order and written instructions when one of the following
436.3conditions has been met:
436.4(1) a registered nurse or licensed practical nurse will administer the subcutaneous or
436.5intramuscular injection;
436.6(2) a supervising registered nurse with a physician's order has delegated the
436.7administration of subcutaneous injectable medication to an unlicensed staff member
436.8and has provided the necessary training; or
436.9(3) there is an agreement signed by the license holder, the prescriber, and the
436.10person or the person's legal representative specifying what subcutaneous injections may
436.11be given, when, how, and that the prescriber must retain responsibility for the license
436.12holder's giving the injections. A copy of the agreement must be placed in the person's
436.13service recipient record.
436.14Only licensed health professionals are allowed to administer psychotropic
436.15medications by injection.

436.16    Sec. 30. Minnesota Statutes 2013 Supplement, section 245D.051, is amended to read:
436.17245D.051 PSYCHOTROPIC MEDICATION USE AND MONITORING.
436.18    Subdivision 1. Conditions for psychotropic medication administration. (a)
436.19When a person is prescribed a psychotropic medication and the license holder is assigned
436.20responsibility for administration of the medication in the person's coordinated service
436.21and support plan or the coordinated service and support plan addendum, the license
436.22holder must ensure that the requirements in paragraphs (b) to (d) and section 245D.05,
436.23subdivision 2, are met.
436.24(b) Use of the medication must be included in the person's coordinated service and
436.25support plan or in the coordinated service and support plan addendum and based on a
436.26prescriber's current written or electronically recorded prescription.
436.27(c) (b) The license holder must develop, implement, and maintain the following
436.28documentation in the person's coordinated service and support plan addendum according
436.29to the requirements in sections 245D.07 and 245D.071:
436.30(1) a description of the target symptoms that the psychotropic medication is to
436.31alleviate; and
436.32(2) documentation methods the license holder will use to monitor and measure
436.33changes in the target symptoms that are to be alleviated by the psychotropic medication if
436.34required by the prescriber. The license holder must collect and report on medication and
436.35symptom-related data as instructed by the prescriber. The license holder must provide
437.1the monitoring data to the expanded support team for review every three months, or as
437.2otherwise requested by the person or the person's legal representative.
437.3For the purposes of this section, "target symptom" refers to any perceptible
437.4diagnostic criteria for a person's diagnosed mental disorder, as defined by the Diagnostic
437.5and Statistical Manual of Mental Disorders Fourth Edition Text Revision (DSM-IV-TR) or
437.6successive editions, that has been identified for alleviation.
437.7    Subd. 2. Refusal to authorize psychotropic medication. If the person or the
437.8person's legal representative refuses to authorize the administration of a psychotropic
437.9medication as ordered by the prescriber, the license holder must follow the requirement in
437.10section 245D.05, subdivision 2, paragraph (b), clause (2). not administer the medication.
437.11The refusal to authorize medication administration must be reported to the prescriber as
437.12expediently as possible. After reporting the refusal to the prescriber, the license holder
437.13must follow any directives or orders given by the prescriber. A court order must be
437.14obtained to override the refusal. A refusal may not be overridden without a court order.
437.15Refusal to authorize administration of a specific psychotropic medication is not grounds
437.16for service termination and does not constitute an emergency. A decision to terminate
437.17services must be reached in compliance with section 245D.10, subdivision 3.

437.18    Sec. 31. Minnesota Statutes 2013 Supplement, section 245D.06, subdivision 1, is
437.19amended to read:
437.20    Subdivision 1. Incident response and reporting. (a) The license holder must
437.21respond to incidents under section 245D.02, subdivision 11, that occur while providing
437.22services to protect the health and safety of and minimize risk of harm to the person.
437.23(b) The license holder must maintain information about and report incidents to the
437.24person's legal representative or designated emergency contact and case manager within
437.2524 hours of an incident occurring while services are being provided, within 24 hours of
437.26discovery or receipt of information that an incident occurred, unless the license holder
437.27has reason to know that the incident has already been reported, or as otherwise directed
437.28in a person's coordinated service and support plan or coordinated service and support
437.29plan addendum. An incident of suspected or alleged maltreatment must be reported as
437.30required under paragraph (d), and an incident of serious injury or death must be reported
437.31as required under paragraph (e).
437.32(c) When the incident involves more than one person, the license holder must not
437.33disclose personally identifiable information about any other person when making the report
437.34to each person and case manager unless the license holder has the consent of the person.
438.1(d) Within 24 hours of reporting maltreatment as required under section 626.556
438.2or 626.557, the license holder must inform the case manager of the report unless there is
438.3reason to believe that the case manager is involved in the suspected maltreatment. The
438.4license holder must disclose the nature of the activity or occurrence reported and the
438.5agency that received the report.
438.6(e) The license holder must report the death or serious injury of the person as
438.7required in paragraph (b) and to the Department of Human Services Licensing Division,
438.8and the Office of Ombudsman for Mental Health and Developmental Disabilities as
438.9required under section 245.94, subdivision 2a, within 24 hours of the death, or receipt of
438.10information that the death occurred, unless the license holder has reason to know that the
438.11death has already been reported.
438.12(f) When a death or serious injury occurs in a facility certified as an intermediate
438.13care facility for persons with developmental disabilities, the death or serious injury must
438.14be reported to the Department of Health, Office of Health Facility Complaints, and the
438.15Office of Ombudsman for Mental Health and Developmental Disabilities, as required
438.16under sections 245.91 and 245.94, subdivision 2a, unless the license holder has reason to
438.17know that the death has already been reported.
438.18(g) The license holder must conduct an internal review of incident reports of deaths
438.19and serious injuries that occurred while services were being provided and that were not
438.20reported by the program as alleged or suspected maltreatment, for identification of incident
438.21patterns, and implementation of corrective action as necessary to reduce occurrences.
438.22The review must include an evaluation of whether related policies and procedures were
438.23followed, whether the policies and procedures were adequate, whether there is a need for
438.24additional staff training, whether the reported event is similar to past events with the
438.25persons or the services involved, and whether there is a need for corrective action by the
438.26license holder to protect the health and safety of persons receiving services. Based on
438.27the results of this review, the license holder must develop, document, and implement a
438.28corrective action plan designed to correct current lapses and prevent future lapses in
438.29performance by staff or the license holder, if any.
438.30(h) The license holder must verbally report the emergency use of manual restraint
438.31of a person as required in paragraph (b) within 24 hours of the occurrence. The license
438.32holder must ensure the written report and internal review of all incident reports of the
438.33emergency use of manual restraints are completed according to the requirements in section
438.34245D.061 or successor provisions.

439.1    Sec. 32. Minnesota Statutes 2013 Supplement, section 245D.06, subdivision 2, is
439.2amended to read:
439.3    Subd. 2. Environment and safety. The license holder must:
439.4(1) ensure the following when the license holder is the owner, lessor, or tenant
439.5of the service site:
439.6(i) the service site is a safe and hazard-free environment;
439.7(ii) that toxic substances or dangerous items are inaccessible to persons served by
439.8the program only to protect the safety of a person receiving services when a known safety
439.9threat exists and not as a substitute for staff supervision or interactions with a person who
439.10is receiving services. If toxic substances or dangerous items are made inaccessible, the
439.11license holder must document an assessment of the physical plant, its environment, and its
439.12population identifying the risk factors which require toxic substances or dangerous items
439.13to be inaccessible and a statement of specific measures to be taken to minimize the safety
439.14risk to persons receiving services and to restore accessibility to all persons receiving
439.15services at the service site;
439.16(iii) doors are locked from the inside to prevent a person from exiting only when
439.17necessary to protect the safety of a person receiving services and not as a substitute for
439.18staff supervision or interactions with the person. If doors are locked from the inside, the
439.19license holder must document an assessment of the physical plant, the environment and
439.20the population served, identifying the risk factors which require the use of locked doors,
439.21and a statement of specific measures to be taken to minimize the safety risk to persons
439.22receiving services at the service site; and
439.23(iv) a staff person is available at the service site who is trained in basic first aid and,
439.24when required in a person's coordinated service and support plan or coordinated service
439.25and support plan addendum, cardiopulmonary resuscitation (CPR) whenever persons are
439.26present and staff are required to be at the site to provide direct support service. The CPR
439.27training must include in-person instruction, hands-on practice, and an observed skills
439.28assessment under the direct supervision of a CPR instructor;
439.29(2) maintain equipment, vehicles, supplies, and materials owned or leased by the
439.30license holder in good condition when used to provide services;
439.31(3) follow procedures to ensure safe transportation, handling, and transfers of the
439.32person and any equipment used by the person, when the license holder is responsible for
439.33transportation of a person or a person's equipment;
439.34(4) be prepared for emergencies and follow emergency response procedures to
439.35ensure the person's safety in an emergency; and
440.1(5) follow universal precautions and sanitary practices, including hand washing, for
440.2infection prevention and control, and to prevent communicable diseases.

440.3    Sec. 33. Minnesota Statutes 2013 Supplement, section 245D.06, subdivision 4, is
440.4amended to read:
440.5    Subd. 4. Funds and property; legal representative restrictions. (a) Whenever the
440.6license holder assists a person with the safekeeping of funds or other property according
440.7to section 245A.04, subdivision 13, the license holder must obtain written authorization
440.8to do so from the person or the person's legal representative and the case manager.
440.9Authorization must be obtained within five working days of service initiation and renewed
440.10annually thereafter. At the time initial authorization is obtained, the license holder must
440.11survey, document, and implement the preferences of the person or the person's legal
440.12representative and the case manager for frequency of receiving a statement that itemizes
440.13receipts and disbursements of funds or other property. The license holder must document
440.14changes to these preferences when they are requested.
440.15(b) A license holder or staff person may not accept powers-of-attorney from a person
440.16receiving services from the license holder for any purpose. This does not apply to license
440.17holders that are Minnesota counties or other units of government or to staff persons
440.18employed by license holders who were acting as attorney-in-fact for specific individuals
440.19prior to implementation of this chapter. The license holder must maintain documentation
440.20of the power-of-attorney in the service recipient record.
440.21(c) A license holder or staff person is restricted from accepting an appointment
440.22as a guardian as follows:
440.23(1) under section 524.5-309 of the Uniform Probate Code, any individual or agency
440.24that provides residence, custodial care, medical care, employment training, or other care
440.25or services for which the individual or agency receives a fee may not be appointed as
440.26guardian unless related to the respondent by blood, marriage, or adoption; and
440.27(2) under section 245A.03, subdivision 2, paragraph (a), clause (1), a related
440.28individual as defined under section 245A.02, subdivision 13, is excluded from licensure.
440.29Services provided by a license holder to a person under the license holder's guardianship
440.30are not licensed services.
440.31(c) (d) Upon the transfer or death of a person, any funds or other property of the
440.32person must be surrendered to the person or the person's legal representative, or given to
440.33the executor or administrator of the estate in exchange for an itemized receipt.

441.1    Sec. 34. Minnesota Statutes 2013 Supplement, section 245D.06, subdivision 6, is
441.2amended to read:
441.3    Subd. 6. Restricted procedures. (a) The following procedures are allowed when
441.4the procedures are implemented in compliance with the standards governing their use as
441.5identified in clauses (1) to (3). Allowed but restricted procedures include:
441.6(1) permitted actions and procedures subject to the requirements in subdivision 7;
441.7(2) procedures identified in a positive support transition plan subject to the
441.8requirements in subdivision 8; or
441.9(3) emergency use of manual restraint subject to the requirements in section
441.10245D.061 .
441.11For purposes of this chapter, this section supersedes the requirements identified in
441.12Minnesota Rules, part 9525.2740.
441.13    (b) A restricted procedure identified in paragraph (a) must not:
441.14    (1) be implemented with a child in a manner that constitutes sexual abuse, neglect,
441.15physical abuse, or mental injury, as defined in section 626.556, subdivision 2;
441.16(2) be implemented with an adult in a manner that constitutes abuse or neglect as
441.17defined in section 626.5572, subdivision 2 or 17;
441.18(3) be implemented in a manner that violates a person's rights identified in section
441.19245D.04;
441.20(4) restrict a person's normal access to a nutritious diet, drinking water, adequate
441.21ventilation, necessary medical care, ordinary hygiene facilities, normal sleeping
441.22conditions, necessary clothing, or any protection required by state licensing standards or
441.23federal regulations governing the program;
441.24(5) deny the person visitation or ordinary contact with legal counsel, a legal
441.25representative, or next of kin;
441.26(6) be used for the convenience of staff, as punishment, as a substitute for adequate
441.27staffing, or as a consequence if the person refuses to participate in the treatment or services
441.28provided by the program;
441.29(7) use prone restraint. For purposes of this section, "prone restraint" means use
441.30of manual restraint that places a person in a face-down position. Prone restraint does
441.31not include brief physical holding of a person who, during an emergency use of manual
441.32restraint, rolls into a prone position, if the person is restored to a standing, sitting, or
441.33side-lying position as quickly as possible;
441.34(8) apply back or chest pressure while a person is in a prone position as identified in
441.35clause (7), supine position, or side-lying position; or
442.1(9) be implemented in a manner that is contraindicated for any of the person's known
442.2medical or psychological limitations.

442.3    Sec. 35. Minnesota Statutes 2013 Supplement, section 245D.06, subdivision 7, is
442.4amended to read:
442.5    Subd. 7. Permitted actions and procedures. (a) Use of the instructional techniques
442.6and intervention procedures as identified in paragraphs (b) and (c) is permitted when used
442.7on an intermittent or continuous basis. When used on a continuous basis, it must be
442.8addressed in a person's coordinated service and support plan addendum as identified in
442.9sections 245D.07 and 245D.071. For purposes of this chapter, the requirements of this
442.10subdivision supersede the requirements identified in Minnesota Rules, part 9525.2720.
442.11(b) Physical contact or instructional techniques must use the least restrictive
442.12alternative possible to meet the needs of the person and may be used:
442.13(1) to calm or comfort a person by holding that person with no resistance from
442.14that person;
442.15(2) to protect a person known to be at risk or of injury due to frequent falls as a result
442.16of a medical condition;
442.17(3) to facilitate the person's completion of a task or response when the person does
442.18not resist or the person's resistance is minimal in intensity and duration; or
442.19(4) to briefly block or redirect a person's limbs or body without holding the person or
442.20limiting the person's movement to interrupt the person's behavior that may result in injury
442.21to self or others. with less than 60 seconds of physical contact by staff; or
442.22(5) to redirect a person's behavior when the behavior does not pose a serious threat
442.23to the person or others and the behavior is effectively redirected with less than 60 seconds
442.24of physical contact by staff.
442.25(c) Restraint may be used as an intervention procedure to:
442.26(1) allow a licensed health care professional to safely conduct a medical examination
442.27or to provide medical treatment ordered by a licensed health care professional to a person
442.28necessary to promote healing or recovery from an acute, meaning short-term, medical
442.29condition;
442.30(2) assist in the safe evacuation or redirection of a person in the event of an
442.31emergency and the person is at imminent risk of harm.; or
442.32Any use of manual restraint as allowed in this paragraph must comply with the restrictions
442.33identified in section 245D.061, subdivision 3; or
442.34(3) position a person with physical disabilities in a manner specified in the person's
442.35coordinated service and support plan addendum.
443.1Any use of manual restraint as allowed in this paragraph must comply with the restrictions
443.2identified in subdivision 6, paragraph (b).
443.3(d) Use of adaptive aids or equipment, orthotic devices, or other medical equipment
443.4ordered by a licensed health professional to treat a diagnosed medical condition do not in
443.5and of themselves constitute the use of mechanical restraint.

443.6    Sec. 36. Minnesota Statutes 2013 Supplement, section 245D.06, subdivision 8, is
443.7amended to read:
443.8    Subd. 8. Positive support transition plan. (a) License holders must develop
443.9a positive support transition plan on the forms and in the manner prescribed by the
443.10commissioner for a person who requires intervention in order to maintain safety when
443.11it is known that the person's behavior poses an immediate risk of physical harm to self
443.12or others. The positive support transition plan forms and instructions will supersede the
443.13requirements in Minnesota Rules, parts 9525.2750; 9525.2760; and 9525.2780. The
443.14positive support transition plan must phase out any existing plans for the emergency
443.15or programmatic use of aversive or deprivation procedures restrictive interventions
443.16 prohibited under this chapter within the following timelines:
443.17(1) for persons receiving services from the license holder before January 1, 2014,
443.18the plan must be developed and implemented by February 1, 2014, and phased out no
443.19later than December 31, 2014; and
443.20(2) for persons admitted to the program on or after January 1, 2014, the plan must be
443.21developed and implemented within 30 calendar days of service initiation and phased out
443.22no later than 11 months from the date of plan implementation.
443.23(b) The commissioner has limited authority to grant approval for the emergency use
443.24of procedures identified in subdivision 6 that had been part of an approved positive support
443.25transition plan when a person is at imminent risk of serious injury as defined in section
443.26245.91, subdivision 6, due to self-injurious behavior and the following conditions are met:
443.27(1) the person's expanded support team approves the emergency use of the
443.28procedures; and
443.29(2) the interim review panel established in section 245.8251, subdivision 4,
443.30recommends commissioner approval of the emergency use of the procedures.
443.31(c) Written requests for the emergency use of the procedures must be developed
443.32and submitted to the commissioner by the designated coordinator with input from the
443.33person's expanded support team in accordance with the requirements set by the interim
443.34review panel, in addition to the following:
444.1(1) a copy of the person's current positive support transition plan and copies of
444.2each positive support transition plan review containing data on the progress of the plan
444.3from the previous year;
444.4(2) documentation of a good faith effort to eliminate the use of the procedures that
444.5had been part of an approved positive support transition plan;
444.6(3) justification for the continued use of the procedures that identifies the imminent
444.7risk of serious injury due to the person's self-injurious behavior if the procedures were
444.8eliminated;
444.9(4) documentation of the clinicians consulted in creating and maintaining the
444.10positive support transition plan; and
444.11(5) documentation of the expanded support team's approval and the recommendation
444.12from the interim panel required under paragraph (b).
444.13(d) A copy of the written request, supporting documentation, and the commissioner's
444.14final determination on the request must be maintained in the person's service recipient
444.15record.

444.16    Sec. 37. Minnesota Statutes 2013 Supplement, section 245D.071, subdivision 3,
444.17is amended to read:
444.18    Subd. 3. Assessment and initial service planning. (a) Within 15 days of service
444.19initiation the license holder must complete a preliminary coordinated service and support
444.20plan addendum based on the coordinated service and support plan.
444.21(b) Within 45 days of service initiation the license holder must meet with the person,
444.22the person's legal representative, the case manager, and other members of the support team
444.23or expanded support team to assess and determine the following based on the person's
444.24coordinated service and support plan and the requirements in subdivision 4 and section
444.25245D.07, subdivision 1a:
444.26(1) the scope of the services to be provided to support the person's daily needs
444.27and activities;
444.28(2) the person's desired outcomes and the supports necessary to accomplish the
444.29person's desired outcomes;
444.30(3) the person's preferences for how services and supports are provided;
444.31(4) whether the current service setting is the most integrated setting available and
444.32appropriate for the person; and
444.33(5) how services must be coordinated across other providers licensed under this
444.34chapter serving the same person to ensure continuity of care for the person.
445.1(c) Within the scope of services, the license holder must, at a minimum, assess
445.2the following areas:
445.3(1) the person's ability to self-manage health and medical needs to maintain or
445.4improve physical, mental, and emotional well-being, including, when applicable, allergies,
445.5seizures, choking, special dietary needs, chronic medical conditions, self-administration
445.6of medication or treatment orders, preventative screening, and medical and dental
445.7appointments;
445.8(2) the person's ability to self-manage personal safety to avoid injury or accident in
445.9the service setting, including, when applicable, risk of falling, mobility, regulating water
445.10temperature, community survival skills, water safety skills, and sensory disabilities; and
445.11(3) the person's ability to self-manage symptoms or behavior that may otherwise
445.12result in an incident as defined in section 245D.02, subdivision 11, clauses (4) to
445.13(7), suspension or termination of services by the license holder, or other symptoms
445.14or behaviors that may jeopardize the health and safety of the person or others. The
445.15assessments must produce information about the person that is descriptive of the person's
445.16overall strengths, functional skills and abilities, and behaviors or symptoms.
445.17(b) Within the scope of services, the license holder must, at a minimum, complete
445.18assessments in the following areas before the 45-day planning meeting:
445.19(1) the person's ability to self-manage health and medical needs to maintain or
445.20improve physical, mental, and emotional well-being, including, when applicable, allergies,
445.21seizures, choking, special dietary needs, chronic medical conditions, self-administration
445.22of medication or treatment orders, preventative screening, and medical and dental
445.23appointments;
445.24(2) the person's ability to self-manage personal safety to avoid injury or accident in
445.25the service setting, including, when applicable, risk of falling, mobility, regulating water
445.26temperature, community survival skills, water safety skills, and sensory disabilities; and
445.27(3) the person's ability to self-manage symptoms or behavior that may otherwise
445.28result in an incident as defined in section 245D.02, subdivision 11, clauses (4) to (7),
445.29suspension or termination of services by the license holder, or other symptoms or
445.30behaviors that may jeopardize the health and safety of the person or others.
445.31Assessments must produce information about the person that describes the person's overall
445.32strengths, functional skills and abilities, and behaviors or symptoms. Assessments must
445.33be based on the person's status within the last 12 months at the time of service initiation.
445.34Assessments based on older information must be documented and justified. Assessments
445.35must be conducted annually at a minimum or within 30 days of a written request from the
446.1person or the person's legal representative or case manager. The results must be reviewed
446.2by the support team or expanded support team as part of a service plan review.
446.3(c) Within 45 days of service initiation, the license holder must meet with the
446.4person, the person's legal representative, the case manager, and other members of the
446.5support team or expanded support team to determine the following based on information
446.6obtained from the assessments identified in paragraph (b), the person's identified needs
446.7in the coordinated service and support plan, and the requirements in subdivision 4 and
446.8section 245D.07, subdivision 1a:
446.9(1) the scope of the services to be provided to support the person's daily needs
446.10and activities;
446.11(2) the person's desired outcomes and the supports necessary to accomplish the
446.12person's desired outcomes;
446.13(3) the person's preferences for how services and supports are provided;
446.14(4) whether the current service setting is the most integrated setting available and
446.15appropriate for the person; and
446.16(5) how services must be coordinated across other providers licensed under this
446.17chapter serving the person and members of the support team or expanded support team to
446.18ensure continuity of care and coordination of services for the person.

446.19    Sec. 38. Minnesota Statutes 2013 Supplement, section 245D.071, subdivision 4,
446.20is amended to read:
446.21    Subd. 4. Service outcomes and supports. (a) Within ten working days of the
446.2245-day planning meeting, the license holder must develop and document a service plan that
446.23documents the service outcomes and supports based on the assessments completed under
446.24subdivision 3 and the requirements in section 245D.07, subdivision 1a. The outcomes and
446.25supports must be included in the coordinated service and support plan addendum.
446.26(b) The license holder must document the supports and methods to be implemented
446.27to support the accomplishment of person and accomplish outcomes related to acquiring,
446.28retaining, or improving skills and physical, mental, and emotional health and well-being.
446.29The documentation must include:
446.30(1) the methods or actions that will be used to support the person and to accomplish
446.31the service outcomes, including information about:
446.32(i) any changes or modifications to the physical and social environments necessary
446.33when the service supports are provided;
446.34(ii) any equipment and materials required; and
447.1(iii) techniques that are consistent with the person's communication mode and
447.2learning style;
447.3(2) the measurable and observable criteria for identifying when the desired outcome
447.4has been achieved and how data will be collected;
447.5(3) the projected starting date for implementing the supports and methods and
447.6the date by which progress towards accomplishing the outcomes will be reviewed and
447.7evaluated; and
447.8(4) the names of the staff or position responsible for implementing the supports
447.9and methods.
447.10(c) Within 20 working days of the 45-day meeting, the license holder must obtain
447.11dated signatures from the person or the person's legal representative and case manager
447.12to document completion and approval of the assessment and coordinated service and
447.13support plan addendum.

447.14    Sec. 39. Minnesota Statutes 2013 Supplement, section 245D.071, subdivision 5,
447.15is amended to read:
447.16    Subd. 5. Progress reviews Service plan review and evaluation. (a) The license
447.17holder must give the person or the person's legal representative and case manager an
447.18opportunity to participate in the ongoing review and development of the service plan
447.19and the methods used to support the person and accomplish outcomes identified in
447.20subdivisions 3 and 4. The license holder, in coordination with the person's support team
447.21or expanded support team, must meet with the person, the person's legal representative,
447.22and the case manager, and participate in progress service plan review meetings following
447.23stated timelines established in the person's coordinated service and support plan or
447.24coordinated service and support plan addendum or within 30 days of a written request
447.25by the person, the person's legal representative, or the case manager, at a minimum of
447.26once per year. The purpose of the service plan review is to determine whether changes
447.27are needed to the service plan based on the assessment information, the license holder's
447.28evaluation of progress towards accomplishing outcomes, or other information provided by
447.29the support team or expanded support team.
447.30(b) The license holder must summarize the person's status and progress toward
447.31achieving the identified outcomes and make recommendations and identify the rationale
447.32for changing, continuing, or discontinuing implementation of supports and methods
447.33identified in subdivision 4 in a written report sent to the person or the person's legal
447.34representative and case manager five working days prior to the review meeting, unless
448.1the person, the person's legal representative, or the case manager requests to receive the
448.2report at the time of the meeting.
448.3(c) Within ten working days of the progress review meeting, the license holder
448.4must obtain dated signatures from the person or the person's legal representative and
448.5the case manager to document approval of any changes to the coordinated service and
448.6support plan addendum.

448.7    Sec. 40. Minnesota Statutes 2013 Supplement, section 245D.081, subdivision 2,
448.8is amended to read:
448.9    Subd. 2. Coordination and evaluation of individual service delivery. (a) Delivery
448.10and evaluation of services provided by the license holder must be coordinated by a
448.11designated staff person. The designated coordinator must provide supervision, support,
448.12and evaluation of activities that include:
448.13(1) oversight of the license holder's responsibilities assigned in the person's
448.14coordinated service and support plan and the coordinated service and support plan
448.15addendum;
448.16(2) taking the action necessary to facilitate the accomplishment of the outcomes
448.17according to the requirements in section 245D.07;
448.18(3) instruction and assistance to direct support staff implementing the coordinated
448.19service and support plan and the service outcomes, including direct observation of service
448.20delivery sufficient to assess staff competency; and
448.21(4) evaluation of the effectiveness of service delivery, methodologies, and progress on
448.22the person's outcomes based on the measurable and observable criteria for identifying when
448.23the desired outcome has been achieved according to the requirements in section 245D.07.
448.24(b) The license holder must ensure that the designated coordinator is competent to
448.25perform the required duties identified in paragraph (a) through education and, training
448.26in human services and disability-related fields, and work experience in providing direct
448.27care services and supports to persons with disabilities relevant to the primary disability of
448.28persons served by the license holder and the individual persons for whom the designated
448.29coordinator is responsible. The designated coordinator must have the skills and ability
448.30necessary to develop effective plans and to design and use data systems to measure
448.31effectiveness of services and supports. The license holder must verify and document
448.32competence according to the requirements in section 245D.09, subdivision 3. The
448.33designated coordinator must minimally have:
449.1(1) a baccalaureate degree in a field related to human services, and one year of
449.2full-time work experience providing direct care services to persons with disabilities or
449.3persons age 65 and older;
449.4(2) an associate degree in a field related to human services, and two years of
449.5full-time work experience providing direct care services to persons with disabilities or
449.6persons age 65 and older;
449.7(3) a diploma in a field related to human services from an accredited postsecondary
449.8institution and three years of full-time work experience providing direct care services to
449.9persons with disabilities or persons age 65 and older; or
449.10(4) a minimum of 50 hours of education and training related to human services
449.11and disabilities; and
449.12(5) four years of full-time work experience providing direct care services to persons
449.13with disabilities or persons age 65 and older under the supervision of a staff person who
449.14meets the qualifications identified in clauses (1) to (3).

449.15    Sec. 41. Minnesota Statutes 2013 Supplement, section 245D.09, subdivision 3, is
449.16amended to read:
449.17    Subd. 3. Staff qualifications. (a) The license holder must ensure that staff providing
449.18direct support, or staff who have responsibilities related to supervising or managing the
449.19provision of direct support service, are competent as demonstrated through skills and
449.20knowledge training, experience, and education relevant to the primary disability of the
449.21person and to meet the person's needs and additional requirements as written in the
449.22coordinated service and support plan or coordinated service and support plan addendum,
449.23or when otherwise required by the case manager or the federal waiver plan. The license
449.24holder must verify and maintain evidence of staff competency, including documentation of:
449.25(1) education and experience qualifications relevant to the job responsibilities
449.26assigned to the staff and to the needs of the general population primary disability of
449.27persons served by the program, including a valid degree and transcript, or a current license,
449.28registration, or certification, when a degree or licensure, registration, or certification is
449.29required by this chapter or in the coordinated service and support plan or coordinated
449.30service and support plan addendum;
449.31(2) demonstrated competency in the orientation and training areas required under
449.32this chapter, and when applicable, completion of continuing education required to
449.33maintain professional licensure, registration, or certification requirements. Competency in
449.34these areas is determined by the license holder through knowledge testing and or observed
449.35skill assessment conducted by the trainer or instructor; and
450.1(3) except for a license holder who is the sole direct support staff, periodic
450.2performance evaluations completed by the license holder of the direct support staff
450.3person's ability to perform the job functions based on direct observation.
450.4(b) Staff under 18 years of age may not perform overnight duties or administer
450.5medication.

450.6    Sec. 42. Minnesota Statutes 2013 Supplement, section 245D.09, subdivision 4a,
450.7is amended to read:
450.8    Subd. 4a. Orientation to individual service recipient needs. (a) Before having
450.9unsupervised direct contact with a person served by the program, or for whom the staff
450.10person has not previously provided direct support, or any time the plans or procedures
450.11identified in paragraphs (b) to (f) (g) are revised, the staff person must review and receive
450.12instruction on the requirements in paragraphs (b) to (f) (g) as they relate to the staff
450.13person's job functions for that person.
450.14(b) Training and competency evaluations must include the following:
450.15(1) appropriate and safe techniques in personal hygiene and grooming, including
450.16hair care; bathing; care of teeth, gums, and oral prosthetic devices; and other activities of
450.17daily living (ADLs) as defined under section 256B.0659, subdivision 1;
450.18(2) an understanding of what constitutes a healthy diet according to data from the
450.19Centers for Disease Control and Prevention and the skills necessary to prepare that diet;
450.20(3) skills necessary to provide appropriate support in instrumental activities of daily
450.21living (IADLs) as defined under section 256B.0659, subdivision 1; and
450.22(4) demonstrated competence in providing first aid.
450.23(c) The staff person must review and receive instruction on the person's coordinated
450.24service and support plan or coordinated service and support plan addendum as it relates
450.25to the responsibilities assigned to the license holder, and when applicable, the person's
450.26individual abuse prevention plan, to achieve and demonstrate an understanding of the
450.27person as a unique individual, and how to implement those plans.
450.28(d) The staff person must review and receive instruction on medication setup,
450.29assistance, or administration procedures established for the person when medication
450.30administration is assigned to the license holder according to section 245D.05, subdivision
450.311 , paragraph (b). Unlicensed staff may administer medications perform medication setup
450.32or medication administration only after successful completion of a medication setup or
450.33medication administration training, from a training curriculum developed by a registered
450.34nurse, clinical nurse specialist in psychiatric and mental health nursing, certified nurse
450.35practitioner, physician's assistant, or physician or appropriate licensed health professional.
451.1The training curriculum must incorporate an observed skill assessment conducted by the
451.2trainer to ensure unlicensed staff demonstrate the ability to safely and correctly follow
451.3medication procedures.
451.4Medication administration must be taught by a registered nurse, clinical nurse
451.5specialist, certified nurse practitioner, physician's assistant, or physician if, at the time of
451.6service initiation or any time thereafter, the person has or develops a health care condition
451.7that affects the service options available to the person because the condition requires:
451.8(1) specialized or intensive medical or nursing supervision; and
451.9(2) nonmedical service providers to adapt their services to accommodate the health
451.10and safety needs of the person.
451.11(e) The staff person must review and receive instruction on the safe and correct
451.12operation of medical equipment used by the person to sustain life, including but not
451.13limited to ventilators, feeding tubes, or endotracheal tubes. The training must be provided
451.14by a licensed health care professional or a manufacturer's representative and incorporate
451.15an observed skill assessment to ensure staff demonstrate the ability to safely and correctly
451.16operate the equipment according to the treatment orders and the manufacturer's instructions.
451.17(f) The staff person must review and receive instruction on what constitutes use of
451.18restraints, time out, and seclusion, including chemical restraint, and staff responsibilities
451.19related to the prohibitions of their use according to the requirements in section 245D.06,
451.20subdivision 5 or successor provisions, why such procedures are not effective for reducing
451.21or eliminating symptoms or undesired behavior and why they are not safe, and the safe
451.22and correct use of manual restraint on an emergency basis according to the requirements
451.23in section 245D.061 or successor provisions.
451.24(g) The staff person must review and receive instruction on mental health crisis
451.25response, de-escalation techniques, and suicide intervention when providing direct support
451.26to a person with a serious mental illness.
451.27(g) (h) In the event of an emergency service initiation, the license holder must ensure
451.28the training required in this subdivision occurs within 72 hours of the direct support staff
451.29person first having unsupervised contact with the person receiving services. The license
451.30holder must document the reason for the unplanned or emergency service initiation and
451.31maintain the documentation in the person's service recipient record.
451.32(h) (i) License holders who provide direct support services themselves must
451.33complete the orientation required in subdivision 4, clauses (3) to (7).

451.34    Sec. 43. Minnesota Statutes 2013 Supplement, section 245D.091, subdivision 2,
451.35is amended to read:
452.1    Subd. 2. Behavior professional qualifications. A behavior professional providing
452.2behavioral support services as identified in section 245D.03, subdivision 1, paragraph (c),
452.3clause (1), item (i), as defined in the brain injury and community alternatives for disabled
452.4individuals waiver plans or successor plans, must have competencies in the following
452.5areas related to as required under the brain injury and community alternatives for disabled
452.6individuals waiver plans or successor plans:
452.7(1) ethical considerations;
452.8(2) functional assessment;
452.9(3) functional analysis;
452.10(4) measurement of behavior and interpretation of data;
452.11(5) selecting intervention outcomes and strategies;
452.12(6) behavior reduction and elimination strategies that promote least restrictive
452.13approved alternatives;
452.14(7) data collection;
452.15(8) staff and caregiver training;
452.16(9) support plan monitoring;
452.17(10) co-occurring mental disorders or neurocognitive disorder;
452.18(11) demonstrated expertise with populations being served; and
452.19(12) must be a:
452.20(i) psychologist licensed under sections 148.88 to 148.98, who has stated to the
452.21Board of Psychology competencies in the above identified areas;
452.22(ii) clinical social worker licensed as an independent clinical social worker under
452.23chapter 148D, or a person with a master's degree in social work from an accredited college
452.24or university, with at least 4,000 hours of post-master's supervised experience in the
452.25delivery of clinical services in the areas identified in clauses (1) to (11);
452.26(iii) physician licensed under chapter 147 and certified by the American Board
452.27of Psychiatry and Neurology or eligible for board certification in psychiatry with
452.28competencies in the areas identified in clauses (1) to (11);
452.29(iv) licensed professional clinical counselor licensed under sections 148B.29 to
452.30148B.39 with at least 4,000 hours of post-master's supervised experience in the delivery
452.31of clinical services who has demonstrated competencies in the areas identified in clauses
452.32(1) to (11);
452.33(v) person with a master's degree from an accredited college or university in one
452.34of the behavioral sciences or related fields, with at least 4,000 hours of post-master's
452.35supervised experience in the delivery of clinical services with demonstrated competencies
452.36in the areas identified in clauses (1) to (11); or
453.1(vi) registered nurse who is licensed under sections 148.171 to 148.285, and who is
453.2certified as a clinical specialist or as a nurse practitioner in adult or family psychiatric and
453.3mental health nursing by a national nurse certification organization, or who has a master's
453.4degree in nursing or one of the behavioral sciences or related fields from an accredited
453.5college or university or its equivalent, with at least 4,000 hours of post-master's supervised
453.6experience in the delivery of clinical services.

453.7    Sec. 44. Minnesota Statutes 2013 Supplement, section 245D.091, subdivision 3,
453.8is amended to read:
453.9    Subd. 3. Behavior analyst qualifications. (a) A behavior analyst providing
453.10behavioral support services as identified in section 245D.03, subdivision 1, paragraph
453.11(c), clause (1), item (i), as defined in the brain injury and community alternatives for
453.12disabled individuals waiver plans or successor plans, must have competencies in the
453.13following areas as required under the brain injury and community alternatives for disabled
453.14individuals waiver plans or successor plans:
453.15(1) have obtained a baccalaureate degree, master's degree, or PhD in a social services
453.16discipline; or
453.17(2) meet the qualifications of a mental health practitioner as defined in section
453.18245.462, subdivision 17 .
453.19(b) In addition, a behavior analyst must:
453.20(1) have four years of supervised experience working with individuals who exhibit
453.21challenging behaviors as well as co-occurring mental disorders or neurocognitive disorder;
453.22(2) have received ten hours of instruction in functional assessment and functional
453.23analysis;
453.24(3) have received 20 hours of instruction in the understanding of the function of
453.25behavior;
453.26(4) have received ten hours of instruction on design of positive practices behavior
453.27support strategies;
453.28(5) have received 20 hours of instruction on the use of behavior reduction approved
453.29strategies used only in combination with behavior positive practices strategies;
453.30(6) be determined by a behavior professional to have the training and prerequisite
453.31skills required to provide positive practice strategies as well as behavior reduction
453.32approved and permitted intervention to the person who receives behavioral support; and
453.33(7) be under the direct supervision of a behavior professional.

454.1    Sec. 45. Minnesota Statutes 2013 Supplement, section 245D.091, subdivision 4,
454.2is amended to read:
454.3    Subd. 4. Behavior specialist qualifications. (a) A behavior specialist providing
454.4behavioral support services as identified in section 245D.03, subdivision 1, paragraph (c),
454.5clause (1), item (i), as defined in the brain injury and community alternatives for disabled
454.6individuals waiver plans or successor plans, must meet the following qualifications have
454.7competencies in the following areas as required under the brain injury and community
454.8alternatives for disabled individuals waiver plans or successor plans:
454.9(1) have an associate's degree in a social services discipline; or
454.10(2) have two years of supervised experience working with individuals who exhibit
454.11challenging behaviors as well as co-occurring mental disorders or neurocognitive disorder.
454.12(b) In addition, a behavior specialist must:
454.13(1) have received a minimum of four hours of training in functional assessment;
454.14(2) have received 20 hours of instruction in the understanding of the function of
454.15behavior;
454.16(3) have received ten hours of instruction on design of positive practices behavioral
454.17support strategies;
454.18(4) be determined by a behavior professional to have the training and prerequisite
454.19skills required to provide positive practices strategies as well as behavior reduction
454.20approved intervention to the person who receives behavioral support; and
454.21(5) be under the direct supervision of a behavior professional.

454.22    Sec. 46. Minnesota Statutes 2013 Supplement, section 245D.10, subdivision 3, is
454.23amended to read:
454.24    Subd. 3. Service suspension and service termination. (a) The license holder must
454.25establish policies and procedures for temporary service suspension and service termination
454.26that promote continuity of care and service coordination with the person and the case
454.27manager and with other licensed caregivers, if any, who also provide support to the person.
454.28(b) The policy must include the following requirements:
454.29(1) the license holder must notify the person or the person's legal representative and
454.30case manager in writing of the intended termination or temporary service suspension, and
454.31the person's right to seek a temporary order staying the termination of service according to
454.32the procedures in section 256.045, subdivision 4a, or 6, paragraph (c);
454.33(2) notice of the proposed termination of services, including those situations that
454.34began with a temporary service suspension, must be given at least 60 days before the
454.35proposed termination is to become effective when a license holder is providing intensive
455.1supports and services identified in section 245D.03, subdivision 1, paragraph (c), and 30
455.2days prior to termination for all other services licensed under this chapter. This notice
455.3may be given in conjunction with a notice of temporary service suspension;
455.4(3) notice of temporary service suspension must be given on the first day of the
455.5service suspension;
455.6(3) (4) the license holder must provide information requested by the person or case
455.7manager when services are temporarily suspended or upon notice of termination;
455.8(4) (5) prior to giving notice of service termination or temporary service suspension,
455.9the license holder must document actions taken to minimize or eliminate the need for
455.10service suspension or termination;
455.11(5) (6) during the temporary service suspension or service termination notice period,
455.12the license holder will must work with the appropriate county agency support team or
455.13expanded support team to develop reasonable alternatives to protect the person and others;
455.14(6) (7) the license holder must maintain information about the service suspension or
455.15termination, including the written termination notice, in the service recipient record; and
455.16(7) (8) the license holder must restrict temporary service suspension to situations in
455.17which the person's conduct poses an imminent risk of physical harm to self or others and
455.18less restrictive or positive support strategies would not achieve and maintain safety.

455.19    Sec. 47. Minnesota Statutes 2013 Supplement, section 245D.10, subdivision 4, is
455.20amended to read:
455.21    Subd. 4. Availability of current written policies and procedures. (a) The license
455.22holder must review and update, as needed, the written policies and procedures required
455.23under this chapter.
455.24(b) (1) The license holder must inform the person and case manager of the policies
455.25and procedures affecting a person's rights under section 245D.04, and provide copies of
455.26those policies and procedures, within five working days of service initiation.
455.27(2) If a license holder only provides basic services and supports, this includes the:
455.28(i) grievance policy and procedure required under subdivision 2; and
455.29(ii) service suspension and termination policy and procedure required under
455.30subdivision 3.
455.31(3) For all other license holders this includes the:
455.32(i) policies and procedures in clause (2);
455.33(ii) emergency use of manual restraints policy and procedure required under section
455.34245D.061, subdivision 10, or successor provisions ; and
455.35(iii) data privacy requirements under section 245D.11, subdivision 3.
456.1(c) The license holder must provide a written notice to all persons or their legal
456.2representatives and case managers at least 30 days before implementing any procedural
456.3revisions to policies affecting a person's service-related or protection-related rights under
456.4section 245D.04 and maltreatment reporting policies and procedures. The notice must
456.5explain the revision that was made and include a copy of the revised policy and procedure.
456.6The license holder must document the reasonable cause for not providing the notice at
456.7least 30 days before implementing the revisions.
456.8(d) Before implementing revisions to required policies and procedures, the license
456.9holder must inform all employees of the revisions and provide training on implementation
456.10of the revised policies and procedures.
456.11(e) The license holder must annually notify all persons, or their legal representatives,
456.12and case managers of any procedural revisions to policies required under this chapter,
456.13other than those in paragraph (c). Upon request, the license holder must provide the
456.14person, or the person's legal representative, and case manager with copies of the revised
456.15policies and procedures.

456.16    Sec. 48. Minnesota Statutes 2013 Supplement, section 245D.11, subdivision 2, is
456.17amended to read:
456.18    Subd. 2. Health and safety. The license holder must establish policies and
456.19procedures that promote health and safety by ensuring:
456.20(1) use of universal precautions and sanitary practices in compliance with section
456.21245D.06, subdivision 2 , clause (5);
456.22(2) if the license holder operates a residential program, health service coordination
456.23and care according to the requirements in section 245D.05, subdivision 1;
456.24(3) safe medication assistance and administration according to the requirements
456.25in sections 245D.05, subdivisions 1a, 2, and 5, and 245D.051, that are established in
456.26consultation with a registered nurse, nurse practitioner, physician's assistant, or medical
456.27doctor and require completion of medication administration training according to the
456.28requirements in section 245D.09, subdivision 4a, paragraph (d). Medication assistance
456.29and administration includes, but is not limited to:
456.30(i) providing medication-related services for a person;
456.31(ii) medication setup;
456.32(iii) medication administration;
456.33(iv) medication storage and security;
456.34(v) medication documentation and charting;
457.1(vi) verification and monitoring of effectiveness of systems to ensure safe medication
457.2handling and administration;
457.3(vii) coordination of medication refills;
457.4(viii) handling changes to prescriptions and implementation of those changes;
457.5(ix) communicating with the pharmacy; and
457.6(x) coordination and communication with prescriber;
457.7(4) safe transportation, when the license holder is responsible for transportation of
457.8persons, with provisions for handling emergency situations according to the requirements
457.9in section 245D.06, subdivision 2, clauses (2) to (4);
457.10(5) a plan for ensuring the safety of persons served by the program in emergencies as
457.11defined in section 245D.02, subdivision 8, and procedures for staff to report emergencies
457.12to the license holder. A license holder with a community residential setting or a day service
457.13facility license must ensure the policy and procedures comply with the requirements in
457.14section 245D.22, subdivision 4;
457.15(6) a plan for responding to all incidents as defined in section 245D.02, subdivision
457.1611; and reporting all incidents required to be reported according to section 245D.06,
457.17subdivision 1. The plan must:
457.18(i) provide the contact information of a source of emergency medical care and
457.19transportation; and
457.20(ii) require staff to first call 911 when the staff believes a medical emergency may
457.21be life threatening, or to call the mental health crisis intervention team or similar mental
457.22health response team or service when such a team is available and appropriate when the
457.23person is experiencing a mental health crisis; and
457.24(7) a procedure for the review of incidents and emergencies to identify trends or
457.25patterns, and corrective action if needed. The license holder must establish and maintain
457.26a record-keeping system for the incident and emergency reports. Each incident and
457.27emergency report file must contain a written summary of the incident. The license holder
457.28must conduct a review of incident reports for identification of incident patterns, and
457.29implementation of corrective action as necessary to reduce occurrences. Each incident
457.30report must include:
457.31(i) the name of the person or persons involved in the incident. It is not necessary
457.32to identify all persons affected by or involved in an emergency unless the emergency
457.33resulted in an incident;
457.34(ii) the date, time, and location of the incident or emergency;
457.35(iii) a description of the incident or emergency;
458.1(iv) a description of the response to the incident or emergency and whether a person's
458.2coordinated service and support plan addendum or program policies and procedures were
458.3implemented as applicable;
458.4(v) the name of the staff person or persons who responded to the incident or
458.5emergency; and
458.6(vi) the determination of whether corrective action is necessary based on the results
458.7of the review.

458.8    Sec. 49. Minnesota Statutes 2013 Supplement, section 252.27, subdivision 2a, is
458.9amended to read:
458.10    Subd. 2a. Contribution amount. (a) The natural or adoptive parents of a minor
458.11child, including a child determined eligible for medical assistance without consideration of
458.12parental income, must contribute to the cost of services used by making monthly payments
458.13on a sliding scale based on income, unless the child is married or has been married, parental
458.14rights have been terminated, or the child's adoption is subsidized according to chapter
458.15259A or through title IV-E of the Social Security Act. The parental contribution is a partial
458.16or full payment for medical services provided for diagnostic, therapeutic, curing, treating,
458.17mitigating, rehabilitation, maintenance, and personal care services as defined in United
458.18States Code, title 26, section 213, needed by the child with a chronic illness or disability.
458.19    (b) For households with adjusted gross income equal to or greater than 275 percent
458.20of federal poverty guidelines, the parental contribution shall be computed by applying the
458.21following schedule of rates to the adjusted gross income of the natural or adoptive parents:
458.22    (1) if the adjusted gross income is equal to or greater than 275 percent of federal
458.23poverty guidelines and less than or equal to 545 percent of federal poverty guidelines,
458.24the parental contribution shall be determined using a sliding fee scale established by the
458.25commissioner of human services which begins at 2.76 2.48 percent of adjusted gross
458.26income at 275 percent of federal poverty guidelines and increases to 7.5 6.75 percent of
458.27adjusted gross income for those with adjusted gross income up to 545 percent of federal
458.28poverty guidelines;
458.29    (2) if the adjusted gross income is greater than 545 percent of federal poverty
458.30guidelines and less than 675 percent of federal poverty guidelines, the parental
458.31contribution shall be 7.5 6.75 percent of adjusted gross income;
458.32    (3) if the adjusted gross income is equal to or greater than 675 percent of federal
458.33poverty guidelines and less than 975 percent of federal poverty guidelines, the parental
458.34contribution shall be determined using a sliding fee scale established by the commissioner
458.35of human services which begins at 7.5 6.75 percent of adjusted gross income at 675 percent
459.1of federal poverty guidelines and increases to ten nine percent of adjusted gross income
459.2for those with adjusted gross income up to 975 percent of federal poverty guidelines; and
459.3    (4) if the adjusted gross income is equal to or greater than 975 percent of federal
459.4poverty guidelines, the parental contribution shall be 12.5 11.25 percent of adjusted
459.5gross income.
459.6    If the child lives with the parent, the annual adjusted gross income is reduced by
459.7$2,400 prior to calculating the parental contribution. If the child resides in an institution
459.8specified in section 256B.35, the parent is responsible for the personal needs allowance
459.9specified under that section in addition to the parental contribution determined under this
459.10section. The parental contribution is reduced by any amount required to be paid directly to
459.11the child pursuant to a court order, but only if actually paid.
459.12    (c) The household size to be used in determining the amount of contribution under
459.13paragraph (b) includes natural and adoptive parents and their dependents, including the
459.14child receiving services. Adjustments in the contribution amount due to annual changes
459.15in the federal poverty guidelines shall be implemented on the first day of July following
459.16publication of the changes.
459.17    (d) For purposes of paragraph (b), "income" means the adjusted gross income of the
459.18natural or adoptive parents determined according to the previous year's federal tax form,
459.19except, effective retroactive to July 1, 2003, taxable capital gains to the extent the funds
459.20have been used to purchase a home shall not be counted as income.
459.21    (e) The contribution shall be explained in writing to the parents at the time eligibility
459.22for services is being determined. The contribution shall be made on a monthly basis
459.23effective with the first month in which the child receives services. Annually upon
459.24redetermination or at termination of eligibility, if the contribution exceeded the cost of
459.25services provided, the local agency or the state shall reimburse that excess amount to
459.26the parents, either by direct reimbursement if the parent is no longer required to pay a
459.27contribution, or by a reduction in or waiver of parental fees until the excess amount is
459.28exhausted. All reimbursements must include a notice that the amount reimbursed may be
459.29taxable income if the parent paid for the parent's fees through an employer's health care
459.30flexible spending account under the Internal Revenue Code, section 125, and that the
459.31parent is responsible for paying the taxes owed on the amount reimbursed.
459.32    (f) The monthly contribution amount must be reviewed at least every 12 months;
459.33when there is a change in household size; and when there is a loss of or gain in income
459.34from one month to another in excess of ten percent. The local agency shall mail a written
459.35notice 30 days in advance of the effective date of a change in the contribution amount.
460.1A decrease in the contribution amount is effective in the month that the parent verifies a
460.2reduction in income or change in household size.
460.3    (g) Parents of a minor child who do not live with each other shall each pay the
460.4contribution required under paragraph (a). An amount equal to the annual court-ordered
460.5child support payment actually paid on behalf of the child receiving services shall be
460.6deducted from the adjusted gross income of the parent making the payment prior to
460.7calculating the parental contribution under paragraph (b).
460.8    (h) The contribution under paragraph (b) shall be increased by an additional five
460.9percent if the local agency determines that insurance coverage is available but not
460.10obtained for the child. For purposes of this section, "available" means the insurance is a
460.11benefit of employment for a family member at an annual cost of no more than five percent
460.12of the family's annual income. For purposes of this section, "insurance" means health
460.13and accident insurance coverage, enrollment in a nonprofit health service plan, health
460.14maintenance organization, self-insured plan, or preferred provider organization.
460.15    Parents who have more than one child receiving services shall not be required
460.16to pay more than the amount for the child with the highest expenditures. There shall
460.17be no resource contribution from the parents. The parent shall not be required to pay
460.18a contribution in excess of the cost of the services provided to the child, not counting
460.19payments made to school districts for education-related services. Notice of an increase in
460.20fee payment must be given at least 30 days before the increased fee is due.
460.21    (i) The contribution under paragraph (b) shall be reduced by $300 per fiscal year if,
460.22in the 12 months prior to July 1:
460.23    (1) the parent applied for insurance for the child;
460.24    (2) the insurer denied insurance;
460.25    (3) the parents submitted a complaint or appeal, in writing to the insurer, submitted
460.26a complaint or appeal, in writing, to the commissioner of health or the commissioner of
460.27commerce, or litigated the complaint or appeal; and
460.28    (4) as a result of the dispute, the insurer reversed its decision and granted insurance.
460.29    For purposes of this section, "insurance" has the meaning given in paragraph (h).
460.30    A parent who has requested a reduction in the contribution amount under this
460.31paragraph shall submit proof in the form and manner prescribed by the commissioner or
460.32county agency, including, but not limited to, the insurer's denial of insurance, the written
460.33letter or complaint of the parents, court documents, and the written response of the insurer
460.34approving insurance. The determinations of the commissioner or county agency under this
460.35paragraph are not rules subject to chapter 14.

461.1    Sec. 50. Minnesota Statutes 2012, section 252.451, subdivision 2, is amended to read:
461.2    Subd. 2. Vendor participation and reimbursement. Notwithstanding requirements
461.3in chapter chapters 245A and 245D, and sections 252.28, 252.40 to 252.46, and 256B.501,
461.4vendors of day training and habilitation services may enter into written agreements with
461.5qualified businesses to provide additional training and supervision needed by individuals
461.6to maintain their employment.

461.7    Sec. 51. Minnesota Statutes 2012, section 256.9752, subdivision 2, is amended to read:
461.8    Subd. 2. Authority. The Minnesota Board on Aging shall allocate to area agencies
461.9on aging the state and federal funds which are received for the senior nutrition programs
461.10of congregate dining and home-delivered meals in a manner consistent with federal
461.11requirements.

461.12    Sec. 52. Minnesota Statutes 2013 Supplement, section 256B.0949, subdivision 4,
461.13is amended to read:
461.14    Subd. 4. Diagnosis. (a) A diagnosis must:
461.15    (1) be based upon current DSM criteria including direct observations of the child
461.16and reports from parents or primary caregivers; and
461.17    (2) be completed by both either (i) a licensed physician or advanced practice
461.18registered nurse and or (ii) a mental health professional.
461.19    (b) Additional diagnostic assessment information may be considered including from
461.20special education evaluations and licensed school personnel, and from professionals
461.21licensed in the fields of medicine, speech and language, psychology, occupational therapy,
461.22and physical therapy.
461.23(c) If the commissioner determines there are access problems or delays in diagnosis
461.24for a geographic area due to the lack of qualified professionals, the commissioner shall
461.25waive the requirement in paragraph (a), clause (2), for two professionals and allow a
461.26diagnosis to be made by one professional for that geographic area. This exception must be
461.27limited to a specific period of time until, with stakeholder input as described in subdivision
461.288, there is a determination of an adequate number of professionals available to require two
461.29professionals for each diagnosis.

461.30    Sec. 53. Minnesota Statutes 2013 Supplement, section 256B.0949, subdivision 5,
461.31is amended to read:
462.1    Subd. 5. Diagnostic assessment. The following information and assessments must
462.2be performed, reviewed, and relied upon for the eligibility determination, treatment and
462.3services recommendations, and treatment plan development for the child:
462.4    (1) an assessment of the child's developmental skills, functional behavior, needs,
462.5and capacities based on direct observation of the child which must be administered by
462.6a licensed mental health professional, must include medical or assessment information
462.7from the child's physician or advanced practice registered nurse and may also include
462.8observations from family members, school personnel, child care providers, or other
462.9caregivers, as well as any medical or assessment information from other licensed
462.10professionals such as the child's physician, rehabilitation therapists, licensed school
462.11personnel, or mental health professionals; and
462.12    (2) an assessment of parental or caregiver capacity to participate in therapy including
462.13the type and level of parental or caregiver involvement and training recommended.

462.14    Sec. 54. Minnesota Statutes 2013 Supplement, section 256B.0949, subdivision 11,
462.15is amended to read:
462.16    Subd. 11. Federal approval of the autism benefit. (a) The provisions of
462.17subdivision 9 this section shall apply to state plan services under title XIX of the Social
462.18Security Act when federal approval is granted under a 1915(i) waiver or other authority
462.19which allows children eligible for medical assistance through the TEFRA option under
462.20section 256B.055, subdivision 12, to qualify and includes children eligible for medical
462.21assistance in families over 150 percent of the federal poverty guidelines.
462.22(b) The commissioner may use the federal authority for a Medicaid state plan
462.23amendment under Early and Periodic Screening Diagnosis and Treatment (EPSDT),
462.24United States Code, title 42, section 1396D(R)(5), or other Medicaid provision for any
462.25aspect or type of treatment covered in this section if new federal guidance is helpful
462.26in achieving one or more of the purposes of this section in a cost-effective manner.
462.27Notwithstanding subdivisions 2 and 3, any treatment services submitted for federal
462.28approval under EPSDT shall include appropriate medical criteria to qualify for the service
462.29and shall cover children through age 20.

462.30    Sec. 55. Minnesota Statutes 2013 Supplement, section 256B.0949, is amended by
462.31adding a subdivision to read:
462.32    Subd. 12. Autism benefit; training provided. After approval of the autism early
462.33intensive intervention benefit under this section by the Centers for Medicare and Medicaid
462.34Services, the commissioner shall provide statewide training on the benefit for culturally
463.1and linguistically diverse communities. Training for autism service providers on culturally
463.2appropriate practices must be online, accessible, and available in multiple languages. The
463.3training for families, lead agencies, advocates, and other interested parties must provide
463.4information about the benefit and how to access it.

463.5    Sec. 56. Minnesota Statutes 2013 Supplement, section 256B.439, subdivision 1,
463.6is amended to read:
463.7    Subdivision 1. Development and implementation of quality profiles. (a) The
463.8commissioner of human services, in cooperation with the commissioner of health, shall
463.9develop and implement quality profiles for nursing facilities and, beginning not later than
463.10July 1, 2014, for home and community-based services providers, except when the quality
463.11profile system would duplicate requirements under section 256B.5011, 256B.5012, or
463.12256B.5013 . For purposes of this section, home and community-based services providers
463.13are defined as providers of home and community-based services under sections 256B.0625,
463.14subdivisions 6a, 7, and 19a; 256B.0913 ,; 256B.0915,; 256B.092, and; 256B.49,; and
463.15256B.85, and intermediate care facilities for persons with developmental disabilities
463.16providers under section 256B.5013. To the extent possible, quality profiles must be
463.17developed for providers of services to older adults and people with disabilities, regardless
463.18of payor source, for the purposes of providing information to consumers. The quality
463.19profiles must be developed using existing data sets maintained by the commissioners of
463.20health and human services to the extent possible. The profiles must incorporate or be
463.21coordinated with information on quality maintained by area agencies on aging, long-term
463.22care trade associations, the ombudsman offices, counties, tribes, health plans, and other
463.23entities and the long-term care database maintained under section 256.975, subdivision 7.
463.24The profiles must be designed to provide information on quality to:
463.25(1) consumers and their families to facilitate informed choices of service providers;
463.26(2) providers to enable them to measure the results of their quality improvement
463.27efforts and compare quality achievements with other service providers; and
463.28(3) public and private purchasers of long-term care services to enable them to
463.29purchase high-quality care.
463.30(b) The profiles must be developed in consultation with the long-term care task
463.31force, area agencies on aging, and representatives of consumers, providers, and labor
463.32unions. Within the limits of available appropriations, the commissioners may employ
463.33consultants to assist with this project.
463.34EFFECTIVE DATE.This section is effective retroactively from February 1, 2014.

464.1    Sec. 57. Minnesota Statutes 2013 Supplement, section 256B.439, subdivision 7,
464.2is amended to read:
464.3    Subd. 7. Calculation of home and community-based services quality add-on.
464.4Effective On July 1, 2015, the commissioner shall determine the quality add-on rate
464.5change and adjust payment rates for participating all home and community-based services
464.6providers for services rendered on or after that date. The adjustment to a provider payment
464.7rate determined under this subdivision shall become part of the ongoing rate paid to that
464.8provider. The payment rate for the quality add-on shall be a variable amount based on
464.9each provider's quality score as determined in subdivisions 1 and 2a. All home and
464.10community-based services providers shall receive a minimum rate increase under this
464.11subdivision. In addition to a minimum rate increase, a home and community-based
464.12services provider shall receive a quality add-on payment. The commissioner shall limit
464.13the types of home and community-based services providers that may receive the quality
464.14add-on and based on availability of quality measures and outcome data. The commissioner
464.15shall limit the amount of the minimum rate increase and quality add-on payments to
464.16operate the quality add-on within funds appropriated for this purpose and based on the
464.17availability of the quality measures the equivalent of a one percent rate increase for all
464.18home and community-based services providers.

464.19    Sec. 58. Minnesota Statutes 2013 Supplement, section 256B.441, subdivision 63,
464.20is amended to read:
464.21    Subd. 63. Critical access nursing facilities. (a) The commissioner, in consultation
464.22with the commissioner of health, may designate certain nursing facilities as critical access
464.23nursing facilities. The designation shall be granted on a competitive basis, within the
464.24limits of funds appropriated for this purpose.
464.25(b) The commissioner shall request proposals from nursing facilities every
464.26two years. Proposals must be submitted in the form and according to the timelines
464.27established by the commissioner. In selecting applicants to designate, the commissioner,
464.28in consultation with the commissioner of health, and with input from stakeholders, shall
464.29develop criteria designed to preserve access to nursing facility services in isolated areas,
464.30rebalance long-term care, and improve quality. Beginning in fiscal year 2015, to the
464.31extent practicable, the commissioner shall ensure an even distribution of designations
464.32across the state.
464.33(c) The commissioner shall allow the benefits in clauses (1) to (5) for nursing
464.34facilities designated as critical access nursing facilities:
465.1(1) partial rebasing, with the commissioner allowing a designated facility operating
465.2payment rates being the sum of up to 60 percent of the operating payment rate determined
465.3in accordance with subdivision 54 and at least 40 percent, with the sum of the two portions
465.4being equal to 100 percent, of the operating payment rate that would have been allowed
465.5had the facility not been designated. The commissioner may adjust these percentages by
465.6up to 20 percent and may approve a request for less than the amount allowed;
465.7(2) enhanced payments for leave days. Notwithstanding section 256B.431,
465.8subdivision 2r, upon designation as a critical access nursing facility, the commissioner
465.9shall limit payment for leave days to 60 percent of that nursing facility's total payment rate
465.10for the involved resident, and shall allow this payment only when the occupancy of the
465.11nursing facility, inclusive of bed hold days, is equal to or greater than 90 percent;
465.12(3) two designated critical access nursing facilities, with up to 100 beds in active
465.13service, may jointly apply to the commissioner of health for a waiver of Minnesota
465.14Rules, part 4658.0500, subpart 2, in order to jointly employ a director of nursing. The
465.15commissioner of health will consider each waiver request independently based on the
465.16criteria under Minnesota Rules, part 4658.0040;
465.17(4) the minimum threshold under section 256B.431, subdivision 15, paragraph (e),
465.18shall be 40 percent of the amount that would otherwise apply; and
465.19(5) notwithstanding subdivision 58, beginning October 1, 2014, the quality-based
465.20rate limits under subdivision 50 shall apply to designated critical access nursing facilities.
465.21(d) Designation of a critical access nursing facility shall be for a period of two
465.22years, after which the benefits allowed under paragraph (c) shall be removed. Designated
465.23facilities may apply for continued designation.

465.24    Sec. 59. Minnesota Statutes 2012, section 256B.441, is amended by adding a
465.25subdivision to read:
465.26    Subd. 64. Rate adjustments for compensation-related costs. (a) Operating
465.27payment rates of all nursing facilities that are reimbursed under this section or section
465.28256B.434 shall be increased effective for rate years beginning on and after October 1,
465.292014, to address changes in compensation costs for nursing facility employees paid less
465.30than $14 per hour in accordance with this subdivision.
465.31(b) Based on the application in paragraph (d), the commissioner shall calculate the
465.32allowable annualized compensation costs by adding the totals of clauses (1), (2), and (3).
465.33The result must be divided by the standardized or resident days from the most recently
465.34available cost report to determine per diem amounts, which must be included in the
466.1operating portion of the total payment rate and allocated to direct care or other operating
466.2as determined by the commissioner:
466.3(1) the sum of the difference between $8 and any hourly wage rate less than $8 for
466.4October 1, 2014; between $9 and any hourly wage rate less than $9 for October 1, 2015;
466.5between $9.50 and any hourly wage rate less than $9.50 for October 1, 2016; and between
466.6the indexed value of the minimum wage, as defined in section 177.24, subdivision 1,
466.7paragraph (f), and any hourly wage less than that indexed value for rate years beginning on
466.8and after October 1, 2017; multiplied by the number of compensated hours at that wage rate;
466.9(2) using wages and hours in effect during the first three months of calendar year
466.102014, beginning with the first pay period beginning on or after January 1, 2014; 33.3
466.11percent of the sum of items (i) to (viii) for October 1, 2014; 44.4 percent of the sum of
466.12items (i) to (viii) for October 1, 2015; and 22.2 percent of the sum of items (i) to (viii)
466.13for October 1, 2016;
466.14(i) for all compensated hours from $8 to $8.49 per hour, the number of compensated
466.15hours is multiplied by $0.13;
466.16(ii) for all compensated hours from $8.50 to $8.99 per hour, the number of
466.17compensated hours is multiplied by $0.25;
466.18(iii) for all compensated hours from $9 to $9.49 per hour, the number of compensated
466.19hours is multiplied by $0.38;
466.20(iv) for all compensated hours from $9.50 to $10.49 per hour, the number of
466.21compensated hours is multiplied by $0.50;
466.22(v) for all compensated hours from $10.50 to $10.99 per hour, the number of
466.23compensated hours is multiplied by $0.40;
466.24(vi) for all compensated hours from $11 to $11.49 per hour, the number of
466.25compensated hours is multiplied by $0.30;
466.26(vii) for all compensated hours from $11.50 to $11.99 per hour, the number of
466.27compensated hours is multiplied by $0.20; and
466.28(viii) for all compensated hours from $12 to $13.00 per hour, the number of
466.29compensated hours is multiplied by $0.10; and
466.30(3) the sum of the employer's share of FICA taxes, Medicare taxes, state and federal
466.31unemployment taxes, workers' compensation, pensions, and contributions to employee
466.32retirement accounts attributable to the amounts in clauses (1) and (2).
466.33(c) For the rate years beginning October 1, 2014, and later, nursing facilities that
466.34receive approval of the applications in paragraph (d) must receive rate adjustments
466.35according to paragraph (b). The rate adjustments must be used to pay compensation costs
466.36for nursing facility employees paid less than $14 per hour.
467.1(d) To receive a rate adjustment, nursing facilities must submit applications to the
467.2commissioner in a form and manner determined by the commissioner. The applications for
467.3the rate adjustments shall include specified data, and spending plans that describe how the
467.4funds from the rate adjustments will be allocated for compensation to employees paid less
467.5than $14 per hour. The applications must be submitted within three months of the effective
467.6date of any operating payment rate adjustment under this subdivision. The commissioner
467.7may request any additional information needed to determine the rate adjustment within
467.8three weeks of receiving a complete application. The nursing facility must provide any
467.9additional information requested by the commissioner within six months of the effective
467.10date of any operating payment rate adjustment under this subdivision. The commissioner
467.11may waive the deadlines in this subdivision under extraordinary circumstances.
467.12(e) For nursing facilities in which employees are represented by an exclusive
467.13bargaining representative, the commissioner shall approve the applications submitted
467.14under this subdivision only upon receipt of a letter or letters of acceptance of the spending
467.15plans in regard to members of the bargaining unit, signed by the exclusive bargaining
467.16agent and dated after May 31, 2014. Upon receipt of the letter or letters of acceptance,
467.17the commissioner shall deem all requirements of this subdivision as having been met in
467.18regard to the members of the bargaining unit.

467.19    Sec. 60. Minnesota Statutes 2013 Supplement, section 256B.4912, subdivision 1,
467.20is amended to read:
467.21    Subdivision 1. Provider qualifications. (a) For the home and community-based
467.22waivers providing services to seniors and individuals with disabilities under sections
467.23256B.0913 , 256B.0915, 256B.092, and 256B.49, the commissioner shall establish:
467.24(1) agreements with enrolled waiver service providers to ensure providers meet
467.25Minnesota health care program requirements;
467.26(2) regular reviews of provider qualifications, and including requests of proof of
467.27documentation; and
467.28(3) processes to gather the necessary information to determine provider qualifications.
467.29    (b) Beginning July 1, 2012, staff that provide direct contact, as defined in section
467.30245C.02, subdivision 11 , for services specified in the federally approved waiver plans
467.31must meet the requirements of chapter 245C prior to providing waiver services and as
467.32part of ongoing enrollment. Upon federal approval, this requirement must also apply to
467.33consumer-directed community supports.
467.34    (c) Beginning January 1, 2014, service owners and managerial officials overseeing
467.35the management or policies of services that provide direct contact as specified in the
468.1federally approved waiver plans must meet the requirements of chapter 245C prior to
468.2reenrollment or revalidation or, for new providers, prior to initial enrollment if they have
468.3not already done so as a part of service licensure requirements.

468.4    Sec. 61. Minnesota Statutes 2013 Supplement, section 256B.4913, subdivision 4a,
468.5is amended to read:
468.6    Subd. 4a. Rate stabilization adjustment. (a) For purposes of this subdivision,
468.7"implementation period" shall mean means the period beginning January 1, 2014, and
468.8ending on the last day of the month in which the rate management system is populated
468.9with the data necessary to calculate rates for substantially all individuals receiving home
468.10and community-based waiver services under sections 256B.092 and 256B.49. "Banding
468.11period" means the time period beginning on January 1, 2014, and ending upon the
468.12expiration of the 12-month period defined in paragraph (c), clause (5).
468.13(b) For purposes of this subdivision, the banding value historical rate for all service
468.14recipients shall mean means the individual reimbursement rate for a recipient in effect on
468.15December 1, 2013, except that:
468.16(1)(i) for day training and habilitation pilot program service recipients, the banding
468.17value shall be the authorized rate for the provider in the county of service effective
468.18December 1, 2013, if the for a day service recipient: who was not authorized to receive
468.19these waiver services prior to January 1, 2014; added a new service or services on or after
468.20January 1, 2014; or changed providers on or after January 1, 2014, the historical rate
468.21must be the authorized rate for the provider in the county of service, effective December
468.221, 2013; and or
468.23(ii) for all other unit or day service recipients, the banding value shall be the
468.24weighted average authorized rate for each provider number in the county of service
468.25effective December 1, 2013, if the (2) for a unit-based service with programming or
468.26a unit-based service without programming recipient: who was not authorized to receive
468.27these waiver services prior to January 1, 2014; added a new service or services on or after
468.28January 1, 2014; or changed providers on or after January 1, 2014, the historical rate
468.29must be the weighted average authorized rate for each provider number in the county of
468.30service, effective December 1, 2013; and or
468.31(2) (3) for residential service recipients who change providers on or after January
468.321, 2014, the banding value shall historical rate must be set by each lead agency within
468.33their county aggregate budget using their respective methodology for residential services
468.34effective December 1, 2013, for determining the provider rate for a similarly situated
468.35recipient being served by that provider.
469.1(c) The commissioner shall adjust individual reimbursement rates determined under
469.2this section so that the unit rate is no higher or lower than:
469.3(1) 0.5 percent from the banding value historical rate for the implementation period;
469.4(2) 0.5 percent from the rate in effect in clause (1), for the 12-month period
469.5immediately following the time period of clause (1);
469.6(3) 1.0 percent from the rate in effect in clause (2), for the 12-month period
469.7immediately following the time period of clause (2);
469.8(4) 1.0 percent from the rate in effect in clause (3), for the 12-month period
469.9immediately following the time period of clause (3); and
469.10(5) 1.0 percent from the rate in effect in clause (4), for the 12-month period
469.11immediately following the time period of clause (4).
469.12(d) The commissioner shall review all changes to rates that were in effect on
469.13December 1, 2013, to verify that the rates in effect produce the equivalent level of spending
469.14and service unit utilization on an annual basis as those in effect on October 31, 2013.
469.15(e) By December 31, 2014, the commissioner shall complete the review in paragraph
469.16(d), adjust rates to provide equivalent annual spending and make appropriate adjustments.
469.17(f) During the banding period, the Medicaid Management Information System
469.18(MMIS) service agreement rate must be adjusted to account for change in an individual's
469.19need. The commissioner shall adjust the Medicaid Management Information System
469.20(MMIS) service agreement rate by:
469.21(1) calculating a service rate under section 256B.4914, subdivision 6, 7, 8, or 9, for
469.22the individual with variables reflecting the level of service in effect on December 1, 2013;
469.23(2) calculating a service rate under section 256B.4914, subdivision 6, 7, 8, or
469.249, for the individual with variables reflecting the updated level of service at the time
469.25of application; and
469.26(3) adding to or subtracting from the Medicaid Management Information System
469.27(MMIS) service agreement rate, the difference between the values in clauses (1) and (2).
469.28(g) This subdivision shall must not apply to rates for recipients served by providers
469.29new to a given county after January 1, 2014. Providers of personal supports services who
469.30also acted as fiscal support entities must be treated as new providers as of January 1, 2014.

469.31    Sec. 62. Minnesota Statutes 2013 Supplement, section 256B.4914, subdivision 2,
469.32is amended to read:
469.33    Subd. 2. Definitions. (a) For purposes of this section, the following terms have the
469.34meanings given them, unless the context clearly indicates otherwise.
469.35(b) "Commissioner" means the commissioner of human services.
470.1(c) "Component value" means underlying factors that are part of the cost of providing
470.2services that are built into the waiver rates methodology to calculate service rates.
470.3(d) "Customized living tool" means a methodology for setting service rates that
470.4delineates and documents the amount of each component service included in a recipient's
470.5customized living service plan.
470.6(e) "Disability waiver rates system" means a statewide system that establishes rates
470.7that are based on uniform processes and captures the individualized nature of waiver
470.8services and recipient needs.
470.9(f) "Individual staffing" means the time spent as a one-to-one interaction specific to
470.10an individual recipient by staff brought in solely to provide direct support and assistance
470.11with activities of daily living, instrumental activities of daily living, and training to
470.12participants, and is based on the requirements in each individual's coordinated service and
470.13support plan under section 245D.02, subdivision 4b; any coordinated service and support
470.14plan addendum under section 245D.02, subdivision 4c; an assessment tool; and provider
470.15observation of an individual's needs.
470.16(g) "Lead agency" means a county, partnership of counties, or tribal agency charged
470.17with administering waivered services under sections 256B.092 and 256B.49.
470.18(g) (h) "Median" means the amount that divides distribution into two equal groups,
470.19one-half above the median and one-half below the median.
470.20(h) (i) "Payment or rate" means reimbursement to an eligible provider for services
470.21provided to a qualified individual based on an approved service authorization.
470.22(i) (j) "Rates management system" means a Web-based software application that
470.23uses a framework and component values, as determined by the commissioner, to establish
470.24service rates.
470.25(j) (k) "Recipient" means a person receiving home and community-based services
470.26funded under any of the disability waivers.
470.27(l) "Shared staffing" means time spent by employees, not defined under paragraph
470.28(f), providing or available to provide more than one individual with direct support and
470.29assistance with activities of daily living as defined under section 256B.0659, subdivision 1,
470.30paragraph (b); instrumental activities of daily living as defined under section 256B.0659,
470.31subdivision 1, paragraph (i); ancillary activities needed to support individual services; and
470.32training to participants, and is based on the requirements in each individual's coordinated
470.33service and support plan under section 245D.02, subdivision 4b; any coordinated service
470.34and support plan addendum under section 245D.02, subdivision 4c; an assessment tool; and
470.35provider observation of an individual's service need. Total shared staffing hours are divided
470.36proportionally by the number of individuals who receive the shared service provisions.
471.1(m) "Staffing ratio" means the number of recipients a service provider employee
471.2supports during a unit of service based on a uniform assessment tool, provider observation,
471.3case history, and the recipient's services of choice, and not based on the staffing ratios
471.4under section 245D.31.
471.5    (n) "Unit of service" means the following:
471.6    (1) for residential support services under subdivision 6, a unit of service is a day.
471.7Any portion of any calendar day, within allowable Medicaid rules, where an individual
471.8spends time in a residential setting is billable as a day;
471.9    (2) for day services under subdivision 7:
471.10    (i) for day training and habilitation services, a unit of service is either:
471.11    (A) a day unit of service is defined as six or more hours of time spent providing
471.12direct services and transportation; or
471.13    (B) a partial day unit of service is defined as fewer than six hours of time spent
471.14providing direct services and transportation; and
471.15    (C) for new day service recipients after January 1, 2014, 15 minute units of
471.16service must be used for fewer than six hours of time spent providing direct services
471.17and transportation;
471.18    (ii) for adult day and structured day services, a unit of service is a day or 15 minutes.
471.19A day unit of service is six or more hours of time spent providing direct services;
471.20    (iii) for prevocational services, a unit of service is a day or an hour. A day unit of
471.21service is six or more hours of time spent providing direct service;
471.22    (3) for unit-based services with programming under subdivision 8:
471.23    (i) for supported living services, a unit of service is a day or 15 minutes. When a
471.24day rate is authorized, any portion of a calendar day where an individual receives services
471.25is billable as a day; and
471.26    (ii) for all other services, a unit of service is 15 minutes; and
471.27    (4) for unit-based services without programming under subdivision 9:
471.28    (i) for respite services, a unit of service is a day or 15 minutes. When a day rate is
471.29authorized, any portion of a calendar day when an individual receives services is billable
471.30as a day; and
471.31    (ii) for all other services, a unit of service is 15 minutes.

471.32    Sec. 63. Minnesota Statutes 2013 Supplement, section 256B.4914, subdivision 4,
471.33is amended to read:
472.1    Subd. 4. Data collection for rate determination. (a) Rates for applicable home
472.2and community-based waivered services, including rate exceptions under subdivision 12,
472.3are set by the rates management system.
472.4(b) Data for services under section 256B.4913, subdivision 4a, shall be collected in a
472.5manner prescribed by the commissioner.
472.6(c) Data and information in the rates management system may be used to calculate
472.7an individual's rate.
472.8(d) Service providers, with information from the community support plan and
472.9oversight by lead agencies, shall provide values and information needed to calculate an
472.10individual's rate into the rates management system. These The determination of service
472.11levels must be part of a discussion with members of the support team as defined in section
472.12245D.02, subdivision 34.This discussion must occur prior to the final establishment of
472.13each individual's rate. The values and information include:
472.14(1) shared staffing hours;
472.15(2) individual staffing hours;
472.16(3) direct RN registered nurse hours;
472.17(4) direct LPN licensed practical nurse hours;
472.18(5) staffing ratios;
472.19(6) information to document variable levels of service qualification for variable
472.20levels of reimbursement in each framework;
472.21(7) shared or individualized arrangements for unit-based services, including the
472.22staffing ratio;
472.23(8) number of trips and miles for transportation services; and
472.24(9) service hours provided through monitoring technology.
472.25(e) Updates to individual data shall must include:
472.26(1) data for each individual that is updated annually when renewing service plans; and
472.27(2) requests by individuals or lead agencies to update a rate whenever there is a
472.28change in an individual's service needs, with accompanying documentation.
472.29(f) Lead agencies shall review and approve all services reflecting each individual's
472.30needs, and the values to calculate the final payment rate for services with variables under
472.31subdivisions 6, 7, 8, and 9 for each individual. Lead agencies must notify the individual
472.32and the service provider of the final agreed-upon values and rate, and provide information
472.33that is identical to what was entered into the rates management system. If a value used
472.34was mistakenly or erroneously entered and used to calculate a rate, a provider may
472.35petition lead agencies to correct it. Lead agencies must respond to these requests. When
472.36responding to the request, the lead agency must consider:
473.1(1) meeting the health and welfare needs of the individual or individuals receiving
473.2services by service site, identified in their coordinated service and support plan under
473.3section 245D.02, subdivision 4b, and any addendum under section 245D.02, subdivision
473.44c;
473.5(2) meeting the requirements for staffing under subdivision 2, paragraphs (f), (i),
473.6and (m); and meeting or exceeding the licensing standards for staffing required under
473.7section 245D.09, subdivision 1; and
473.8(3) meeting the staffing ratio requirements under subdivision 2, paragraph (n), and
473.9meeting or exceeding the licensing standards for staffing required under section 245D.31.

473.10    Sec. 64. Minnesota Statutes 2013 Supplement, section 256B.4914, subdivision 5,
473.11is amended to read:
473.12    Subd. 5. Base wage index and standard component values. (a) The base wage
473.13index is established to determine staffing costs associated with providing services to
473.14individuals receiving home and community-based services. For purposes of developing
473.15and calculating the proposed base wage, Minnesota-specific wages taken from job
473.16descriptions and standard occupational classification (SOC) codes from the Bureau of
473.17Labor Statistics as defined in the most recent edition of the Occupational Handbook shall
473.18 must be used. The base wage index shall must be calculated as follows:
473.19(1) for residential direct care staff, the sum of:
473.20(i) 15 percent of the subtotal of 50 percent of the median wage for personal and
473.21home health aide (SOC code 39-9021); 30 percent of the median wage for nursing aide
473.22(SOC code 31-1012); and 20 percent of the median wage for social and human services
473.23aide (SOC code 21-1093); and
473.24(ii) 85 percent of the subtotal of 20 percent of the median wage for home health aide
473.25(SOC code 31-1011); 20 percent of the median wage for personal and home health aide
473.26(SOC code 39-9021); 20 percent of the median wage for nursing aide (SOC code 31-1012);
473.2720 percent of the median wage for psychiatric technician (SOC code 29-2053); and 20
473.28percent of the median wage for social and human services aide (SOC code 21-1093);
473.29(2) for day services, 20 percent of the median wage for nursing aide (SOC code
473.3031-1012); 20 percent of the median wage for psychiatric technician (SOC code 29-2053);
473.31and 60 percent of the median wage for social and human services aide (SOC code 21-1093);
473.32(3) for residential asleep-overnight staff, the wage will be $7.66 per hour, except in
473.33a family foster care setting, the wage is $2.80 per hour;
473.34(4) for behavior program analyst staff, 100 percent of the median wage for mental
473.35health counselors (SOC code 21-1014);
474.1(5) for behavior program professional staff, 100 percent of the median wage for
474.2clinical counseling and school psychologist (SOC code 19-3031);
474.3(6) for behavior program specialist staff, 100 percent of the median wage for
474.4psychiatric technicians (SOC code 29-2053);
474.5(7) for supportive living services staff, 20 percent of the median wage for nursing
474.6aide (SOC code 31-1012); 20 percent of the median wage for psychiatric technician (SOC
474.7code 29-2053); and 60 percent of the median wage for social and human services aide
474.8(SOC code 21-1093);
474.9(8) for housing access coordination staff, 50 percent of the median wage for
474.10community and social services specialist (SOC code 21-1099); and 50 percent of the
474.11median wage for social and human services aide (SOC code 21-1093);
474.12(9) for in-home family support staff, 20 percent of the median wage for nursing
474.13aide (SOC code 31-1012); 30 percent of the median wage for community social service
474.14specialist (SOC code 21-1099); 40 percent of the median wage for social and human
474.15services aide (SOC code 21-1093); and ten percent of the median wage for psychiatric
474.16technician (SOC code 29-2053);
474.17(10) for independent living skills staff, 40 percent of the median wage for community
474.18social service specialist (SOC code 21-1099); 50 percent of the median wage for social
474.19and human services aide (SOC code 21-1093); and ten percent of the median wage for
474.20psychiatric technician (SOC code 29-2053);
474.21(11) for supported employment staff, 20 percent of the median wage for nursing aide
474.22(SOC code 31-1012); 20 percent of the median wage for psychiatric technician (SOC
474.23code 29-2053); and 60 percent of the median wage for social and human services aide
474.24(SOC code 21-1093);
474.25(12) for adult companion staff, 50 percent of the median wage for personal and home
474.26care aide (SOC code 39-9021); and 50 percent of the median wage for nursing aides,
474.27orderlies, and attendants (SOC code 31-1012);
474.28(13) for night supervision staff, 20 percent of the median wage for home health aide
474.29(SOC code 31-1011); 20 percent of the median wage for personal and home health aide
474.30(SOC code 39-9021); 20 percent of the median wage for nursing aide (SOC code 31-1012);
474.3120 percent of the median wage for psychiatric technician (SOC code 29-2053); and 20
474.32percent of the median wage for social and human services aide (SOC code 21-1093);
474.33(14) for respite staff, 50 percent of the median wage for personal and home care aide
474.34(SOC code 39-9021); and 50 percent of the median wage for nursing aides, orderlies, and
474.35attendants (SOC code 31-1012);
475.1(15) for personal support staff, 50 percent of the median wage for personal and home
475.2care aide (SOC code 39-9021); and 50 percent of the median wage for nursing aides,
475.3orderlies, and attendants (SOC code 31-1012);
475.4(16) for supervisory staff, the basic wage is $17.43 per hour with exception of
475.5the supervisor of behavior analyst and behavior specialists, which shall must be $30.75
475.6per hour;
475.7(17) for RN registered nurse, the basic wage is $30.82 per hour; and
475.8(18) for LPN licensed practical nurse, the basic wage is $18.64 per hour.
475.9(b) Component values for residential support services are:
475.10(1) supervisory span of control ratio: 11 percent;
475.11(2) employee vacation, sick, and training allowance ratio: 8.71 percent;
475.12(3) employee-related cost ratio: 23.6 percent;
475.13(4) general administrative support ratio: 13.25 percent;
475.14(5) program-related expense ratio: 1.3 percent; and
475.15(6) absence and utilization factor ratio: 3.9 percent.
475.16(c) Component values for family foster care are:
475.17(1) supervisory span of control ratio: 11 percent;
475.18(2) employee vacation, sick, and training allowance ratio: 8.71 percent;
475.19(3) employee-related cost ratio: 23.6 percent;
475.20(4) general administrative support ratio: 3.3 percent;
475.21(5) program-related expense ratio: 1.3 percent; and
475.22(6) absence factor: 1.7 percent.
475.23(d) Component values for day services for all services are:
475.24(1) supervisory span of control ratio: 11 percent;
475.25(2) employee vacation, sick, and training allowance ratio: 8.71 percent;
475.26(3) employee-related cost ratio: 23.6 percent;
475.27(4) program plan support ratio: 5.6 percent;
475.28(5) client programming and support ratio: ten percent;
475.29(6) general administrative support ratio: 13.25 percent;
475.30(7) program-related expense ratio: 1.8 percent; and
475.31(8) absence and utilization factor ratio: 3.9 percent.
475.32(e) Component values for unit-based services with programming are:
475.33(1) supervisory span of control ratio: 11 percent;
475.34(2) employee vacation, sick, and training allowance ratio: 8.71 percent;
475.35(3) employee-related cost ratio: 23.6 percent;
475.36(4) program plan supports ratio: 3.1 percent;
476.1(5) client programming and supports ratio: 8.6 percent;
476.2(6) general administrative support ratio: 13.25 percent;
476.3(7) program-related expense ratio: 6.1 percent; and
476.4(8) absence and utilization factor ratio: 3.9 percent.
476.5(f) Component values for unit-based services without programming except respite
476.6are:
476.7(1) supervisory span of control ratio: 11 percent;
476.8(2) employee vacation, sick, and training allowance ratio: 8.71 percent;
476.9(3) employee-related cost ratio: 23.6 percent;
476.10(4) program plan support ratio: 3.1 percent;
476.11(5) client programming and support ratio: 8.6 percent;
476.12(6) general administrative support ratio: 13.25 percent;
476.13(7) program-related expense ratio: 6.1 percent; and
476.14(8) absence and utilization factor ratio: 3.9 percent.
476.15(g) Component values for unit-based services without programming for respite are:
476.16(1) supervisory span of control ratio: 11 percent;
476.17(2) employee vacation, sick, and training allowance ratio: 8.71 percent;
476.18(3) employee-related cost ratio: 23.6 percent;
476.19(4) general administrative support ratio: 13.25 percent;
476.20(5) program-related expense ratio: 6.1 percent; and
476.21(6) absence and utilization factor ratio: 3.9 percent.
476.22(h) On July 1, 2017, the commissioner shall update the base wage index in paragraph
476.23(b) (a) based on the wage data by standard occupational code (SOC) from the Bureau of
476.24Labor Statistics available on December 31, 2016. The commissioner shall publish these
476.25updated values and load them into the rate management system. This adjustment occurs
476.26every five years. For adjustments in 2021 and beyond, the commissioner shall use the data
476.27available on December 31 of the calendar year five years prior.
476.28(i) On July 1, 2017, the commissioner shall update the framework components in
476.29paragraph (c) paragraphs (b) to (g); subdivision 6, clauses (8) and (9); and subdivision
476.307, clauses (16) and (17), for changes in the Consumer Price Index. The commissioner
476.31will adjust these values higher or lower by the percentage change in the Consumer Price
476.32Index-All Items, United States city average (CPI-U) from January 1, 2014, to January 1,
476.332017. The commissioner shall publish these updated values and load them into the rate
476.34management system. This adjustment occurs every five years. For adjustments in 2021
476.35and beyond, the commissioner shall use the data available on January 1 of the calendar
476.36year four years prior and January 1 of the current calendar year.

477.1    Sec. 65. Minnesota Statutes 2013 Supplement, section 256B.4914, subdivision 6,
477.2is amended to read:
477.3    Subd. 6. Payments for residential support services. (a) Payments for residential
477.4support services, as defined in sections 256B.092, subdivision 11, and 256B.49,
477.5subdivision 22, must be calculated as follows:
477.6(1) determine the number of shared staffing and individual direct staff hours to meet
477.7a recipient's needs provided on-site or through monitoring technology;
477.8(2) personnel hourly wage rate must be based on the 2009 Bureau of Labor Statistics
477.9Minnesota-specific rates or rates derived by the commissioner as provided in subdivision
477.105. This is defined as the direct-care rate;
477.11(3) for a recipient requiring customization for deaf and hard-of-hearing language
477.12accessibility under subdivision 12, add the customization rate provided in subdivision 12
477.13to the result of clause (2). This is defined as the customized direct-care rate;
477.14(4) multiply the number of shared and individual direct staff hours provided on-site
477.15or through monitoring technology and direct nursing hours by the appropriate staff wages
477.16in subdivision 5, paragraph (a), or the customized direct-care rate;
477.17(5) multiply the number of shared and individual direct staff hours provided
477.18on-site or through monitoring technology and direct nursing hours by the product of
477.19the supervision span of control ratio in subdivision 5, paragraph (b), clause (1), and the
477.20appropriate supervision wage in subdivision 5, paragraph (a), clause (16);
477.21(6) combine the results of clauses (4) and (5), excluding any shared and individual
477.22direct staff hours provided through monitoring technology, and multiply the result by one
477.23plus the employee vacation, sick, and training allowance ratio in subdivision 5, paragraph
477.24(b), clause (2). This is defined as the direct staffing cost;
477.25(7) for employee-related expenses, multiply the direct staffing cost, excluding any
477.26shared and individual direct staff hours provided through monitoring technology, by one
477.27plus the employee-related cost ratio in subdivision 5, paragraph (b), clause (3);
477.28(8) for client programming and supports, the commissioner shall add $2,179; and
477.29(9) for transportation, if provided, the commissioner shall add $1,680, or $3,000
477.30if customized for adapted transport, per year based on the resident with the highest
477.31assessed need.
477.32(b) The total rate shall must be calculated using the following steps:
477.33(1) subtotal paragraph (a), clauses (7) to (9), and the direct staffing cost of any
477.34shared and individual direct staff hours provided through monitoring technology that
477.35was excluded in clause (7);
478.1(2) sum the standard general and administrative rate, the program-related expense
478.2ratio, and the absence and utilization ratio;
478.3(3) divide the result of clause (1) by one minus the result of clause (2). This is
478.4the total payment amount; and
478.5(4) adjust the result of clause (3) by a factor to be determined by the commissioner
478.6to adjust for regional differences in the cost of providing services.
478.7(c) The payment methodology for customized living, 24-hour customized living,
478.8and residential care services shall must be the customized living tool. Revisions to the
478.9customized living tool shall must be made to reflect the services and activities unique to
478.10disability-related recipient needs.
478.11(d) The commissioner shall establish a Monitoring Technology Review Panel to
478.12annually review and approve the plans, safeguards, and rates that include residential
478.13direct care provided remotely through monitoring technology. Lead agencies shall submit
478.14individual service plans that include supervision using monitoring technology to the
478.15Monitoring Technology Review Panel for approval. Individual service plans that include
478.16supervision using monitoring technology as of December 31, 2013, shall be submitted to
478.17the Monitoring Technology Review Panel, but the plans are not subject to approval.
478.18(e) For individuals enrolled prior to January 1, 2014, the days of service authorized
478.19must meet or exceed the days of service used to convert service agreements in effect on
478.20December 1, 2013, and must not result in a reduction in spending or service utilization due
478.21to conversion during the implementation period under section 256B.4913, subdivision 4a.
478.22If during the implementation period, an individual's historical rate, including adjustments
478.23required under section 256B.4913, subdivision 4a, paragraph (c), is equal to or greater
478.24than the rate determined in this subdivision, the number of days authorized for the
478.25individual is 365.
478.26(f) The number of days authorized for all individuals enrolling after January 1, 2014,
478.27in residential services must include every day that services start and end.

478.28    Sec. 66. Minnesota Statutes 2013 Supplement, section 256B.4914, subdivision 7,
478.29is amended to read:
478.30    Subd. 7. Payments for day programs. Payments for services with day programs
478.31including adult day care, day treatment and habilitation, prevocational services, and
478.32structured day services must be calculated as follows:
478.33(1) determine the number of units of service and staffing ratio to meet a recipient's
478.34needs:
479.1(i) the staffing ratios for the units of service provided to a recipient in a typical week
479.2must be averaged to determine an individual's staffing ratio; and
479.3(ii) the commissioner, in consultation with service providers, shall develop a uniform
479.4staffing ratio worksheet to be used to determine staffing ratios under this subdivision;
479.5(2) personnel hourly wage rates must be based on the 2009 Bureau of Labor Statistics
479.6Minnesota-specific rates or rates derived by the commissioner as provided in subdivision 5;
479.7(3) for a recipient requiring customization for deaf and hard-of-hearing language
479.8accessibility under subdivision 12, add the customization rate provided in subdivision 12
479.9to the result of clause (2). This is defined as the customized direct-care rate;
479.10(4) multiply the number of day program direct staff hours and direct nursing hours
479.11by the appropriate staff wage in subdivision 5, paragraph (a), or the customized direct-care
479.12rate;
479.13(5) multiply the number of day direct staff hours by the product of the supervision
479.14span of control ratio in subdivision 5, paragraph (d), clause (1), and the appropriate
479.15supervision wage in subdivision 5, paragraph (a), clause (16);
479.16(6) combine the results of clauses (4) and (5), and multiply the result by one plus
479.17the employee vacation, sick, and training allowance ratio in subdivision 5, paragraph (d),
479.18clause (2). This is defined as the direct staffing rate;
479.19(7) for program plan support, multiply the result of clause (6) by one plus the
479.20program plan support ratio in subdivision 5, paragraph (d), clause (4);
479.21(8) for employee-related expenses, multiply the result of clause (7) by one plus the
479.22employee-related cost ratio in subdivision 5, paragraph (d), clause (3);
479.23(9) for client programming and supports, multiply the result of clause (8) by one plus
479.24the client programming and support ratio in subdivision 5, paragraph (d), clause (5);
479.25(10) for program facility costs, add $19.30 per week with consideration of staffing
479.26ratios to meet individual needs;
479.27(11) for adult day bath services, add $7.01 per 15 minute unit;
479.28(12) this is the subtotal rate;
479.29(13) sum the standard general and administrative rate, the program-related expense
479.30ratio, and the absence and utilization factor ratio;
479.31(14) divide the result of clause (12) by one minus the result of clause (13). This is
479.32the total payment amount;
479.33(15) adjust the result of clause (14) by a factor to be determined by the commissioner
479.34to adjust for regional differences in the cost of providing services;
479.35(16) for transportation provided as part of day training and habilitation for an
479.36individual who does not require a lift, add:
480.1(i) $10.50 for a trip between zero and ten miles for a nonshared ride in a vehicle
480.2without a lift, $8.83 for a shared ride in a vehicle without a lift, and $9.25 for a shared
480.3ride in a vehicle with a lift;
480.4(ii) $15.75 for a trip between 11 and 20 miles for a nonshared ride in a vehicle
480.5without a lift, $10.58 for a shared ride in a vehicle without a lift, and $11.88 for a shared
480.6ride in a vehicle with a lift;
480.7(iii) $25.75 for a trip between 21 and 50 miles for a nonshared ride in a vehicle
480.8without a lift, $13.92 for a shared ride in a vehicle without a lift, and $16.88 for a shared
480.9ride in a vehicle with a lift; or
480.10(iv) $33.50 for a trip of 51 miles or more for a nonshared ride in a vehicle without a
480.11lift, $16.50 for a shared ride in a vehicle without a lift, and $20.75 for a shared ride in a
480.12vehicle with a lift;
480.13(17) for transportation provided as part of day training and habilitation for an
480.14individual who does require a lift, add:
480.15(i) $19.05 for a trip between zero and ten miles for a nonshared ride in a vehicle with
480.16a lift, and $15.05 for a shared ride in a vehicle with a lift;
480.17(ii) $32.16 for a trip between 11 and 20 miles for a nonshared ride in a vehicle with a
480.18lift, and $28.16 for a shared ride in a vehicle with a lift;
480.19(iii) $58.76 for a trip between 21 and 50 miles for a nonshared ride in a vehicle with
480.20a lift, and $58.76 for a shared ride in a vehicle with a lift; or
480.21(iv) $80.93 for a trip of 51 miles or more for a nonshared ride in a vehicle with a
480.22lift, and $80.93 for a shared ride in a vehicle with a lift.

480.23    Sec. 67. Minnesota Statutes 2013 Supplement, section 256B.4914, subdivision 9,
480.24is amended to read:
480.25    Subd. 9. Payments for unit-based services without programming. Payments
480.26for unit-based without program services, including night supervision, personal support,
480.27respite, and companion care provided to an individual outside of any day or residential
480.28service plan must be calculated as follows unless the services are authorized separately
480.29under subdivision 6 or 7:
480.30(1) for all services except respite, determine the number of units of service to meet
480.31a recipient's needs;
480.32(2) personnel hourly wage rates must be based on the 2009 Bureau of Labor Statistics
480.33Minnesota-specific rate or rates derived by the commissioner as provided in subdivision 5;
481.1(3) for a recipient requiring customization for deaf and hard-of-hearing language
481.2accessibility under subdivision 12, add the customization rate provided in subdivision 12
481.3to the result of clause (2). This is defined as the customized direct care rate;
481.4(4) multiply the number of direct staff hours by the appropriate staff wage in
481.5subdivision 5 or the customized direct care rate;
481.6(5) multiply the number of direct staff hours by the product of the supervision span
481.7of control ratio in subdivision 5, paragraph (f), clause (1), and the appropriate supervision
481.8wage in subdivision 5, paragraph (a), clause (16);
481.9(6) combine the results of clauses (4) and (5), and multiply the result by one plus
481.10the employee vacation, sick, and training allowance ratio in subdivision 5, paragraph (f),
481.11clause (2). This is defined as the direct staffing rate;
481.12(7) for program plan support, multiply the result of clause (6) by one plus the
481.13program plan support ratio in subdivision 5, paragraph (f), clause (4);
481.14(8) for employee-related expenses, multiply the result of clause (7) by one plus the
481.15employee-related cost ratio in subdivision 5, paragraph (f), clause (3);
481.16(9) for client programming and supports, multiply the result of clause (8) by one plus
481.17the client programming and support ratio in subdivision 5, paragraph (f), clause (5);
481.18(10) this is the subtotal rate;
481.19(11) sum the standard general and administrative rate, the program-related expense
481.20ratio, and the absence and utilization factor ratio;
481.21(12) divide the result of clause (10) by one minus the result of clause (11). This is
481.22the total payment amount;
481.23(13) for respite services, determine the number of daily day units of service to meet
481.24an individual's needs;
481.25(14) personnel hourly wage rates must be based on the 2009 Bureau of Labor Statistics
481.26Minnesota-specific rate or rates derived by the commissioner as provided in subdivision 5;
481.27(15) for a recipient requiring deaf and hard-of-hearing customization under
481.28subdivision 12, add the customization rate provided in subdivision 12 to the result of
481.29clause (14). This is defined as the customized direct care rate;
481.30(16) multiply the number of direct staff hours by the appropriate staff wage in
481.31subdivision 5, paragraph (a);
481.32(17) multiply the number of direct staff hours by the product of the supervisory span
481.33of control ratio in subdivision 5, paragraph (g), clause (1), and the appropriate supervision
481.34wage in subdivision 5, paragraph (a), clause (16);
482.1(18) combine the results of clauses (16) and (17), and multiply the result by one plus
482.2the employee vacation, sick, and training allowance ratio in subdivision 5, paragraph (g),
482.3clause (2). This is defined as the direct staffing rate;
482.4(19) for employee-related expenses, multiply the result of clause (18) by one plus
482.5the employee-related cost ratio in subdivision 5, paragraph (g), clause (3);
482.6(20) this is the subtotal rate;
482.7(21) sum the standard general and administrative rate, the program-related expense
482.8ratio, and the absence and utilization factor ratio;
482.9(22) divide the result of clause (20) by one minus the result of clause (21). This is
482.10the total payment amount; and
482.11(23) adjust the result of clauses (12) and (22) by a factor to be determined by the
482.12commissioner to adjust for regional differences in the cost of providing services.

482.13    Sec. 68. Minnesota Statutes 2013 Supplement, section 256B.4914, subdivision 10,
482.14is amended to read:
482.15    Subd. 10. Updating payment values and additional information. (a) From
482.16January 1, 2014, through December 31, 2017, the commissioner shall develop and
482.17implement uniform procedures to refine terms and adjust values used to calculate payment
482.18rates in this section.
482.19(b) No later than July 1, 2014, the commissioner shall, within available resources,
482.20begin to conduct research and gather data and information from existing state systems or
482.21other outside sources on the following items:
482.22(1) differences in the underlying cost to provide services and care across the state; and
482.23(2) mileage and utilization, vehicle type, lift requirements, incidents of individual
482.24and shared rides, and units of transportation for all day and unit-based services, which
482.25must be collected from providers using the rate management worksheet and entered into
482.26the rates management system; and
482.27(3) the distinct underlying costs for services provided by a license holder certified
482.28under section 245D.33.
482.29(c) Using a statistically valid set of rates management system data, the commissioner,
482.30in consultation with stakeholders, shall analyze for each service the average difference
482.31in the rate on December 31, 2013, and the framework rate at the individual, provider,
482.32lead agency, and state levels. The commissioner shall issue semiannual reports to the
482.33stakeholders on the difference in rates by service and by county during the banding period
482.34under section 256B.4913, subdivision 4a. The commissioner shall issue the first report
482.35by October 1, 2014.
483.1(d) No later than July 1, 2014, the commissioner, in consultation with stakeholders,
483.2shall begin the review and evaluate evaluation of the following values already in
483.3subdivisions 6 to 9, or issues that impact all services, including, but not limited to:
483.4(1) values for transportation rates for day services;
483.5(2) values for transportation rates in residential services;
483.6(3) values for services where monitoring technology replaces staff time;
483.7(4) values for indirect services;
483.8(5) values for nursing;
483.9(6) component values for independent living skills;
483.10(7) component values for family foster care that reflect licensing requirements;
483.11(8) adjustments to other components to replace the budget neutrality factor;
483.12(9) remote monitoring technology for nonresidential services;
483.13(10) values for basic and intensive services in residential services;
483.14(11) values for the facility use rate in day services;
483.15(12) values for workers' compensation as part of employee-related expenses;
483.16(13) values for unemployment insurance as part of employee-related expenses;
483.17(14) a component value to reflect costs for individuals with rates previously adjusted
483.18for the inclusion of group residential housing rate 3 costs, only for any individual enrolled
483.19as of December 31, 2013; and
483.20(15) any changes in state or federal law with an impact on the underlying cost of
483.21providing home and community-based services.
483.22(e) The commissioner shall report to the chairs and the ranking minority members of
483.23the legislative committees and divisions with jurisdiction over health and human services
483.24policy and finance with the information and data gathered under paragraphs (b) to (d)
483.25on the following dates:
483.26(1) January 15, 2015, with preliminary results and data;
483.27(2) January 15, 2016, with a status implementation update, and additional data
483.28and summary information;
483.29(3) January 15, 2017, with the full report; and
483.30(4) January 15, 2019, with another full report, and a full report once every four
483.31years thereafter.
483.32(f) Based on the commissioner's evaluation of the information and data collected
483.33in paragraphs (b) to (d), the commissioner may shall make recommendations to
483.34the legislature to address any potential issues by January 15, 2015, to address any
483.35issues identified during the first year of implementation. After January 15, 2015, the
483.36commissioner may make recommendations to the legislature to address potential issues.
484.1(g) The commissioner shall implement a regional adjustment factor to all rate
484.2calculations in subdivisions 6 to 9, effective no later than January 1, 2015. Prior to
484.3implementation, the commissioner shall consult with stakeholders on the methodology to
484.4calculate the adjustment.
484.5(h) The commissioner shall provide a public notice via LISTSERV in October of
484.6each year beginning October 1, 2014, containing information detailing legislatively
484.7approved changes in:
484.8(1) calculation values including derived wage rates and related employee and
484.9administrative factors;
484.10(2) service utilization;
484.11(3) county and tribal allocation changes; and
484.12(4) information on adjustments made to calculation values and the timing of those
484.13adjustments.
484.14The information in this notice shall must be effective January 1 of the following year.

484.15    Sec. 69. Minnesota Statutes 2013 Supplement, section 256B.4914, subdivision 15,
484.16is amended to read:
484.17    Subd. 15. County or tribal allocations. (a) Upon implementation of the disability
484.18waiver rates management system on January 1, 2014, the commissioner shall establish
484.19a method of tracking and reporting the fiscal impact of the disability waiver rates
484.20management system on individual lead agencies.
484.21(b) Beginning January 1, 2014, the commissioner shall make annual adjustments to
484.22lead agencies' home and community-based waivered service budget allocations to adjust
484.23for rate differences and the resulting impact on county allocations upon implementation of
484.24the disability waiver rates system.
484.25(c) During the first two years of implementation under section 256B.4913, lead
484.26agencies exceeding their allocations under sections 256B.092 and 256B.49 shall only be
484.27held liable for spending in excess of their allocations after a reallocation of resources by
484.28the commissioner under paragraph (b). The commissioner shall reallocate resources under
484.29sections 256B.092, subdivision 12, and 256B.49, subdivision 11a. The commissioner
484.30shall notify lead agencies of this process by July 1, 2014.

484.31    Sec. 70. Minnesota Statutes 2013 Supplement, section 256B.492, is amended to read:
484.32256B.492 HOME AND COMMUNITY-BASED SETTINGS FOR PEOPLE
484.33WITH DISABILITIES.
485.1(a) Individuals receiving services under a home and community-based waiver under
485.2section 256B.092 or 256B.49 may receive services in the following settings:
485.3(1) an individual's own home or family home;
485.4(2) a licensed adult foster care or child foster care setting of up to five people; and
485.5(3) community living settings as defined in section 256B.49, subdivision 23, where
485.6individuals with disabilities may reside in all of the units in a building of four or fewer units,
485.7and who receive services under a home and community-based waiver occupy no more
485.8than the greater of four or 25 percent of the units in a multifamily building of more than
485.9four units, unless required by the Housing Opportunities for Persons with AIDS Program.
485.10(b) The settings in paragraph (a) must not:
485.11(1) be located in a building that is a publicly or privately operated facility that
485.12provides institutional treatment or custodial care;
485.13(2) be located in a building on the grounds of or adjacent to a public or private
485.14institution;
485.15(3) be a housing complex designed expressly around an individual's diagnosis or
485.16disability, unless required by the Housing Opportunities for Persons with AIDS Program;
485.17(4) be segregated based on a disability, either physically or because of setting
485.18characteristics, from the larger community; and
485.19(5) have the qualities of an institution which include, but are not limited to:
485.20regimented meal and sleep times, limitations on visitors, and lack of privacy. Restrictions
485.21agreed to and documented in the person's individual service plan shall not result in a
485.22residence having the qualities of an institution as long as the restrictions for the person are
485.23not imposed upon others in the same residence and are the least restrictive alternative,
485.24imposed for the shortest possible time to meet the person's needs.
485.25(c) The provisions of paragraphs (a) and (b) do not apply to any setting in which
485.26individuals receive services under a home and community-based waiver as of July 1,
485.272012, and the setting does not meet the criteria of this section.
485.28(d) Notwithstanding paragraph (c), a program in Hennepin County established as
485.29part of a Hennepin County demonstration project is qualified for the exception allowed
485.30under paragraph (c).
485.31(e) Notwithstanding paragraphs (a) and (b), a program in Hennepin County, located
485.32in the city of Golden Valley, within the city of Golden Valley's Highway 55 West
485.33redevelopment area, that is not a provider-owned or controlled home and community-based
485.34setting, and is scheduled to open by July 1, 2016, is exempt from the restrictions in
485.35paragraphs (a) and (b). If the program fails to comply with the Centers for Medicare and
485.36Medicaid Services rules for home and community-based settings, the exemption is void.
486.1(f) The commissioner shall submit an amendment to the waiver plan no later than
486.2December 31, 2012.

486.3    Sec. 71. Minnesota Statutes 2012, section 256B.5012, is amended by adding a
486.4subdivision to read:
486.5    Subd. 16. ICF/DD rate increases effective July 1, 2014. (a) For the rate period
486.6beginning July 1, 2014, the commissioner shall increase operating payments for each
486.7facility reimbursed under this section equal to five percent of the operating payment
486.8rates in effect on June 30, 2014.
486.9(b) For each facility, the commissioner shall apply the rate increase based on
486.10occupied beds, using the percentage specified in this subdivision multiplied by the total
486.11payment rate, including the variable rate but excluding the property-related payment rate
486.12in effect on June 30, 2014. The total rate increase shall include the adjustment provided in
486.13section 256B.501, subdivision 12.
486.14(c) To receive the rate increase under paragraph (a), each facility reimbursed under
486.15this section must submit to the commissioner documentation that identifies a quality
486.16improvement project that the facility will implement by June 30, 2015. Documentation
486.17must be provided in a format specified by the commissioner. Projects must:
486.18(1) improve the quality of life of intermediate care facility residents in a meaningful
486.19way;
486.20(2) improve the quality of services in a measurable way; or
486.21(3) deliver good quality service more efficiently while using the savings to enhance
486.22services for the participants served.
486.23(d) For a facility that fails to submit the documentation described in paragraph (c)
486.24by a date or in a format specified by the commissioner, the commissioner shall reduce
486.25the facility's rate by one percent effective January 1, 2015.
486.26(e) Facilities that receive a rate increase under this subdivision shall use 80 percent
486.27of the additional revenue to increase compensation-related costs for employees directly
486.28employed by the facility on or after July 1, 2014, except:
486.29(1) persons employed in the central office of a corporation or entity that has an
486.30ownership interest in the facility or exercises control over the facility; and
486.31(2) persons paid by the facility under a management contract.
486.32This requirement is subject to audit by the commissioner.
486.33(f) Compensation-related costs include:
486.34(1) wages and salaries;
487.1(2) the employer's share of FICA taxes, Medicare taxes, state and federal
487.2unemployment taxes, workers' compensation, and mileage reimbursement;
487.3(3) the employer's share of health and dental insurance, life insurance, disability
487.4insurance, long-term care insurance, uniform allowance, pensions, and contributions to
487.5employee retirement accounts; and
487.6(4) other benefits provided and workforce needs, including the recruiting and
487.7training of employees as specified in the distribution plan required under paragraph (i).
487.8(g) For public employees under a collective bargaining agreement, the increase for
487.9wages and benefits is available and pay rates must be increased only to the extent that the
487.10increases comply with laws governing public employees' collective bargaining. Money
487.11received by a facility under paragraph (e) for pay increases for public employees must be
487.12used only for pay increases implemented between July 1, 2014, and August 1, 2014.
487.13(h) For a facility that has employees that are represented by an exclusive bargaining
487.14representative, the provider shall obtain a letter of acceptance of the distribution plan
487.15required under paragraph (i), in regard to the members of the bargaining unit, signed by
487.16the exclusive bargaining agent. Upon receipt of the letter of acceptance, the facility shall
487.17be deemed to have met all the requirements of this subdivision in regard to the members
487.18of the bargaining unit. Upon request, the facility shall produce the letter of acceptance for
487.19the commissioner.
487.20(i) A facility that receives a rate adjustment under paragraph (a) that is subject to
487.21paragraph (e) shall prepare, and upon request submit to the commissioner, a distribution
487.22plan that specifies the amount of money the facility expects to receive that is subject to the
487.23requirements of paragraph (e), including how that money will be distributed to increase
487.24compensation for employees. The commissioner may recover funds from a facility that
487.25fails to comply with this requirement.
487.26(j) By January 1, 2015, the facility shall post the distribution plan required under
487.27paragraph (i) for a period of at least six weeks in an area of the facility's operation to
487.28which all eligible employees have access and shall provide instructions for employees
487.29who do not believe they have received the wage and other compensation-related increases
487.30specified in the distribution plan. The instructions must include a mailing address, e-mail
487.31address, and telephone number that an employee may use to contact the commissioner or
487.32the commissioner's representative.

487.33    Sec. 72. Laws 2012, chapter 247, article 4, section 47, is amended to read:
488.1    Sec. 47. COMMISSIONER TO SEEK AMENDMENT FOR EXCEPTION
488.2TO CONSUMER-DIRECTED COMMUNITY SUPPORTS BUDGET
488.3METHODOLOGY.
488.4By July 1, 2012 2014, if necessary, the commissioner shall request an amendment to
488.5the home and community-based services waivers authorized under Minnesota Statutes,
488.6sections 256B.092 and 256B.49, to establish an exception to the consumer-directed
488.7community supports budget methodology to provide up to 20 percent more funds for those
488.8participants who have their 21st birthday and graduate from high school during between
488.9 2013 to 2015 and are authorized for more services under consumer-directed community
488.10supports prior to graduation than what the amount they are eligible to receive under the
488.11current consumer-directed community supports budget methodology. The exception is
488.12limited to those who can demonstrate that they will have to leave consumer-directed
488.13community supports and use other waiver services because their need for day or
488.14employment supports cannot be met within the consumer-directed community supports
488.15budget limits. The commissioner shall consult with the stakeholder group authorized
488.16under Minnesota Statutes, section 256B.0657, subdivision 11, to implement this provision.
488.17The exception process shall be effective upon federal approval for persons eligible during
488.182013 and 2014 through June 30, 2017.

488.19    Sec. 73. Laws 2013, chapter 108, article 7, section 14, the effective date, is amended to
488.20read:
488.21EFFECTIVE DATE.Subdivisions 1 to 7 and 9, are effective upon federal approval
488.22consistent with subdivision 11, but no earlier than March July 1, 2014. Subdivisions
488.238, 10, and 11 are effective July 1, 2013.
488.24EFFECTIVE DATE.This section is effective retroactively from March 1, 2014.

488.25    Sec. 74. HOME AND COMMUNITY-BASED SETTINGS TRANSITION PLAN.
488.26The commissioner of human services shall develop a transition plan to comply
488.27with the Centers for Medicare and Medicaid Services final rule defining home and
488.28community-based settings published on January 16, 2014, Code of Federal Regulations,
488.29title 42, section 441.301(c)(4)-(5). In developing the plan, the commissioner shall consult
488.30with individuals with disabilities, seniors, and other stakeholders, including, but not
488.31limited to advocates, providers, lead agencies, other state agencies, and the Olmstead
488.32subcabinet. The commissioner shall submit the plan to the Centers for Medicare and
488.33Medicaid Services by December 31, 2014.
489.1By January 15, 2015, the commissioner shall provide a report with the plan
489.2submitted to the Centers for Medicare and Medicaid Services, as well as any changes as
489.3a result of negotiations that have occurred with the Centers for Medicare and Medicaid
489.4Services, to the chairs and ranking minority members of the house of representatives and
489.5senate policy and finance committees with jurisdiction over health and human services.
489.6This report must contain any recommended legislation and funding requests necessary
489.7to implement the transition plan.

489.8    Sec. 75. PROVIDER RATE AND GRANT INCREASES EFFECTIVE JULY
489.91, 2014.
489.10(a) The commissioner of human services shall increase reimbursement rates, grants,
489.11allocations, individual limits, and rate limits, as applicable, by five percent for the rate
489.12period beginning July 1, 2014, for services rendered on or after July 1, 2014. County or
489.13tribal contracts for services, grants, and programs under paragraph (b) must be amended to
489.14pass through these rate increases by September 1, 2014.
489.15(b) The rate changes described in this section must be provided to:
489.16(1) home and community-based waivered services for persons with developmental
489.17disabilities, including consumer-directed community supports, under Minnesota Statutes,
489.18section 256B.092;
489.19(2) waivered services under community alternatives for disabled individuals,
489.20including consumer-directed community supports, under Minnesota Statutes, section
489.21256B.49;
489.22(3) community alternative care waivered services, including consumer-directed
489.23community supports, under Minnesota Statutes, section 256B.49;
489.24(4) brain injury waivered services, including consumer-directed community
489.25supports, under Minnesota Statutes, section 256B.49;
489.26(5) home and community-based waivered services for the elderly under Minnesota
489.27Statutes, section 256B.0915;
489.28(6) nursing services and home health services under Minnesota Statutes, section
489.29256B.0625, subdivision 6a;
489.30(7) personal care services and qualified professional supervision of personal care
489.31services under Minnesota Statutes, section 256B.0625, subdivisions 6a and 19a;
489.32(8) private duty nursing services under Minnesota Statutes, section 256B.0625,
489.33subdivision 7;
489.34(9) community first services and supports under Minnesota Statutes, section 256B.85;
489.35(10) essential community supports under Minnesota Statutes, section 256B.0922;
490.1(11) day training and habilitation services for adults with developmental disabilities
490.2under Minnesota Statutes, sections 252.41 to 252.46, including the additional cost to
490.3counties of the rate adjustments on day training and habilitation services, provided as a
490.4social service;
490.5(12) alternative care services under Minnesota Statutes, section 256B.0913;
490.6(13) living skills training programs for persons with intractable epilepsy who need
490.7assistance in the transition to independent living under Laws 1988, chapter 689;
490.8(14) semi-independent living services (SILS) under Minnesota Statutes, section
490.9252.275;
490.10(15) consumer support grants under Minnesota Statutes, section 256.476;
490.11(16) family support grants under Minnesota Statutes, section 252.32;
490.12(17) housing access grants under Minnesota Statutes, section 256B.0658;
490.13(18) self-advocacy grants under Laws 2009, chapter 101;
490.14(19) technology grants under Laws 2009, chapter 79;
490.15(20) aging grants under Minnesota Statutes, sections 256.975 to 256.977 and
490.16256B.0917;
490.17(21) deaf and hard-of-hearing grants, including community support services for deaf
490.18and hard-of-hearing adults with mental illness who use or wish to use sign language as their
490.19primary means of communication under Minnesota Statutes, section 256.01, subdivision 2;
490.20(22) deaf and hard-of-hearing grants under Minnesota Statutes, sections 256C.233,
490.21256C.25, and 256C.261;
490.22(23) Disability Linkage Line grants under Minnesota Statutes, section 256.01,
490.23subdivision 24;
490.24(24) transition initiative grants under Minnesota Statutes, section 256.478;
490.25(25) employment support grants under Minnesota Statutes, section 256B.021,
490.26subdivision 6; and
490.27(26) grants provided to people who are eligible for the Housing Opportunities for
490.28Persons with AIDS program under Minnesota Statutes, section 256B.492.
490.29(c) A managed care plan or county-based purchasing plan receiving state payments
490.30for the services grants and programs in paragraph (b) must include these increases in their
490.31payments to providers. To implement the rate increase in paragraph (a), capitation rates
490.32paid by the commissioner to managed care plans and county-based purchasing plans under
490.33Minnesota Statutes, section 256B.69, shall reflect a five percent increase for the services
490.34and programs specified in paragraph (b) for the period beginning July 1, 2014.
490.35(d) Counties shall increase the budget for each recipient of consumer-directed
490.36community supports by the amount in paragraph (a) on July 1, 2014.
491.1(e) To receive the rate increase described in this section, providers under paragraphs
491.2(a) and (b) must submit to the commissioner documentation that identifies a quality
491.3improvement project that the provider will implement by June 30, 2015. Documentation
491.4must be provided in a format specified by the commissioner. Projects must:
491.5(1) improve the quality of life of home and community-based services recipients in
491.6a meaningful way;
491.7(2) improve the quality of services in a measurable way; or
491.8(3) deliver good quality service more efficiently while using the savings to enhance
491.9services for the participants served.
491.10Providers listed in paragraph (b), clauses (7), (9), (10), and (13) to (26), are not subject
491.11to this requirement.
491.12(f) For a provider that fails to submit documentation described in paragraph (e) by
491.13a date or in a format specified by the commissioner, the commissioner shall reduce the
491.14provider's rate by one percent effective January 1, 2015.
491.15(g) Providers that receive a rate increase under paragraph (a) shall use 80 percent
491.16of the additional revenue to increase compensation-related costs for employees directly
491.17employed by the program on or after July 1, 2014, except:
491.18(1) persons employed in the central office of a corporation or entity that has an
491.19ownership interest in the provider or exercises control over the provider; and
491.20(2) persons paid by the provider under a management contract.
491.21This requirement is subject to audit by the commissioner.
491.22(h) Compensation-related costs include:
491.23(1) wages and salaries;
491.24(2) the employer's share of FICA taxes, Medicare taxes, state and federal
491.25unemployment taxes, workers' compensation, and mileage reimbursement;
491.26(3) the employer's share of health and dental insurance, life insurance, disability
491.27insurance, long-term care insurance, uniform allowance, pensions, and contributions to
491.28employee retirement accounts; and
491.29(4) other benefits provided and workforce needs, including the recruiting and
491.30training of employees as specified in the distribution plan required under paragraph (m).
491.31(i) For public employees under a collective bargaining agreement, the increase for
491.32wages and benefits is available and pay rates must be increased only to the extent that the
491.33increases comply with laws governing public employees' collective bargaining. Money
491.34received by a provider for pay increases for public employees under paragraph (g) must be
491.35used only for pay increases implemented between July 1, 2014, and August 1, 2014.
492.1(j) For a provider that has employees that are represented by an exclusive bargaining
492.2representative, the provider shall obtain a letter of acceptance of the distribution plan
492.3required under paragraph (m), in regard to the members of the bargaining unit, signed by
492.4the exclusive bargaining agent. Upon receipt of the letter of acceptance, the provider shall
492.5be deemed to have met all the requirements of this section in regard to the members of
492.6the bargaining unit. Upon request, the provider shall produce the letter of acceptance for
492.7the commissioner.
492.8(k) The commissioner shall amend state grant contracts that include direct
492.9personnel-related grant expenditures to include the allocation for the portion of the
492.10contract related to employee compensation. Grant contracts for compensation-related
492.11services must be amended to pass through these adjustments by September 1, 2014, and
492.12must be retroactive to July 1, 2014.
492.13(l) The Board on Aging and its area agencies on aging shall amend their grants that
492.14include direct personnel-related grant expenditures to include the rate adjustment for the
492.15portion of the grant related to employee compensation. Grants for compensation-related
492.16services must be amended to pass through these adjustments by September 1, 2014, and
492.17must be retroactive to July 1, 2014.
492.18(m) A provider that receives a rate adjustment under paragraph (a) that is subject to
492.19paragraph (g) shall prepare, and upon request submit to the commissioner, a distribution
492.20plan that specifies the amount of money the provider expects to receive that is subject
492.21to the requirements of paragraph (g), including how that money will be distributed to
492.22increase compensation for employees. The commissioner may recover funds from a
492.23provider that fails to comply with this requirement.
492.24(n) By January 1, 2015, the provider shall post the distribution plan required under
492.25paragraph (m) for a period of at least six weeks in an area of the provider's operation to
492.26which all eligible employees have access and shall provide instructions for employees
492.27who do not believe they have received the wage and other compensation-related increases
492.28specified in the distribution plan. The instructions must include a mailing address, e-mail
492.29address, and telephone number that the employee may use to contact the commissioner or
492.30the commissioner's representative.
492.31(o) For providers with rates established under Minnesota Statutes, section
492.32256B.4914, and with a historical rate established under Minnesota Statutes, section
492.33256B.4913, subdivision 4a, paragraph (b), that is greater than the rate established under
492.34Minnesota Statutes, section 256B.4914, the requirements in paragraph (g) must only apply
492.35to the portion of the rate increase that exceeds the difference between the rate established
493.1under Minnesota Statutes, section 256B.4914, and the banding value established under
493.2Minnesota Statutes, section 256B.4913, subdivision 4a, paragraph (b).

493.3    Sec. 76. DISABILITY WAIVER REIMBURSEMENT RATE ADJUSTMENTS.
493.4    Subdivision 1. Historical rate. The commissioner of human services shall adjust
493.5the historical rates calculated in Minnesota Statutes, section 256B.4913, subdivision 4a,
493.6paragraph (b), in effect during the banding period under Minnesota Statutes, section
493.7256B.4913, subdivision 4a, paragraph (a), for the reimbursement rate increases effective
493.8April 1, 2014, and any rate modification enacted during the 2014 legislative session.
493.9    Subd. 2. Residential support services. The commissioner of human services
493.10shall adjust the rates calculated in Minnesota Statutes, section 256B.4914, subdivision 6,
493.11paragraphs (b), clause (4), and (c), for the reimbursement rate increases effective April 1,
493.122014, and any rate modification enacted during the 2014 legislative session.
493.13    Subd. 3. Day programs. The commissioner of human services shall adjust the rates
493.14calculated in Minnesota Statutes, section 256B.4914, subdivision 7, paragraph (a), clauses
493.15(15) to (17), for the reimbursement rate increases effective April 1, 2014, and any rate
493.16modification enacted during the 2014 legislative session.
493.17    Subd. 4. Unit-based services with programming. The commissioner of human
493.18services shall adjust the rate calculated in Minnesota Statutes, section 256B.4914,
493.19subdivision 8, paragraph (a), clause (14), for the reimbursement rate increases effective
493.20April 1, 2014, and any rate modification enacted during the 2014 legislative session.
493.21    Subd. 5. Unit-based services without programming. The commissioner of
493.22human services shall adjust the rate calculated in Minnesota Statutes, section 256B.4914,
493.23subdivision 9, paragraph (a), clause (23), for the reimbursement rate increases effective
493.24April 1, 2014, and any rate modification enacted during the 2014 legislative session.

493.25    Sec. 77. REVISOR'S INSTRUCTION.
493.26(a) In each section of Minnesota Statutes or part of Minnesota Rules referred to
493.27in column A, the revisor of statutes shall delete the word or phrase in column B and
493.28insert the phrase in column C. The revisor shall also make related grammatical changes
493.29and changes in headnotes.

493.30	Column A	Column B	Column C
493.31 493.32	section 158.13	defective persons	persons with developmental disabilities
494.1 494.2	section 158.14	defective persons	persons with developmental disabilities
494.3 494.4	section 158.17	defective persons	persons with developmental disabilities
494.5 494.6	section 158.18	persons not defective	persons without developmental disabilities
494.7 494.8		defective person	person with developmental disabilities
494.9 494.10		defective persons	persons with developmental disabilities
494.11 494.12	section 158.19	defective	person with developmental disabilities
494.13 494.14	section 256.94	defective	children with developmental disabilities and
494.15 494.16	section 257.175	defective	children with developmental disabilities and
494.17	part 2911.1350	retardation	developmental disability

494.18(b) The revisor of statutes shall change the term "health and safety" to "health and
494.19welfare" in the following statutes: Minnesota Statutes, sections 245D.03, 245D.061,
494.20245D.071, 245D.10, 245D.11, 245D.31, 256B.0915, and 256B.092.

494.21ARTICLE 28

494.22PUBLIC ASSISTANCE SIMPLIFICATION

494.23    Section 1. Minnesota Statutes 2012, section 254B.04, subdivision 3, is amended to read:
494.24    Subd. 3. Amount of contribution. The commissioner shall adopt a sliding fee scale
494.25to determine the amount of contribution to be required from persons under this section.
494.26The commissioner may adopt rules to amend existing fee scales. The commissioner
494.27may establish a separate fee scale for recipients of chemical dependency transitional and
494.28extended care rehabilitation services that provides for the collection of fees for board and
494.29lodging expenses. The fee schedule shall ensure that employed persons are allowed the
494.30income disregards and savings accounts that are allowed residents of community mental
494.31illness facilities under section 256D.06, subdivisions subdivision 1 and 1b. The fee scale
494.32must not provide assistance to persons whose income is more than 115 percent of the
494.33state median income. Payments of liabilities under this section are medical expenses for
494.34purposes of determining spenddown under sections 256B.055, 256B.056, 256B.06, and
494.35256D.01 to 256D.21. The required amount of contribution established by the fee scale in
494.36this subdivision is also the cost of care responsibility subject to collection under section
494.37254B.06, subdivision 1 .
494.38EFFECTIVE DATE.This section is effective October 1, 2015.

495.1    Sec. 2. Minnesota Statutes 2012, section 256D.02, subdivision 8, is amended to read:
495.2    Subd. 8. Income. "Income" means any form of income, including remuneration
495.3for services performed as an employee and net earnings earned income from rental
495.4income and self-employment earnings, reduced by the amount attributable to employment
495.5expenses as defined by the commissioner. The amount attributable to employment
495.6expenses shall include amounts paid or withheld for federal and state personal income
495.7taxes and federal Social Security taxes as described under section 256P.05.
495.8Income includes any payments received as an annuity, retirement, or disability
495.9benefit, including veteran's or workers' compensation; old age, survivors, and disability
495.10insurance; railroad retirement benefits; unemployment benefits; and benefits under any
495.11federally aided categorical assistance program, supplementary security income, or other
495.12assistance program; rents, dividends, interest and royalties; and support and maintenance
495.13payments. Such payments may not be considered as available to meet the needs of any
495.14person other than the person for whose benefit they are received, unless that person is
495.15a family member or a spouse and the income is not excluded under section 256D.01,
495.16subdivision 1a . Goods and services provided in lieu of cash payment shall be excluded
495.17from the definition of income, except that payments made for room, board, tuition or
495.18fees by a parent, on behalf of a child enrolled as a full-time student in a postsecondary
495.19institution, and payments made on behalf of an applicant or recipient participant which
495.20the applicant or recipient participant could legally demand to receive personally in cash,
495.21must be included as income. Benefits of an applicant or recipient participant, such as those
495.22administered by the Social Security Administration, that are paid to a representative
495.23payee, and are spent on behalf of the applicant or recipient participant, are considered
495.24available income of the applicant or recipient participant.
495.25EFFECTIVE DATE.This section is effective February 1, 2015.

495.26    Sec. 3. Minnesota Statutes 2012, section 256D.02, subdivision 12, is amended to read:
495.27    Subd. 12. County Agency. "County agency" means the agency designated by the
495.28county board of commissioners, human services boards, local social services agencies
495.29in the several counties of the state or multicounty local social services agencies or
495.30departments where those have been established in accordance with law "Agency" has the
495.31meaning given in section 256P.01, subdivision 2.

495.32    Sec. 4. Minnesota Statutes 2012, section 256D.05, subdivision 5, is amended to read:
495.33    Subd. 5. Transfers of property. The equity value of real and personal property
495.34transferred without reasonable compensation within 12 months preceding the date of
496.1application for general assistance must be included in determining the resources of an
496.2assistance unit in the same manner as in the Minnesota family investment program under
496.3chapter 256J as described in section 256P.02, subdivision 1, paragraph (c).
496.4EFFECTIVE DATE.This section is effective June 1, 2016.

496.5    Sec. 5. Minnesota Statutes 2012, section 256D.06, subdivision 1, is amended to read:
496.6    Subdivision 1. Eligibility; amount of assistance. General assistance shall be
496.7granted in an amount that when added to the nonexempt income actually available to the
496.8assistance unit, the total amount equals the applicable standard of assistance for general
496.9assistance. In determining eligibility for and the amount of assistance for an individual or
496.10married couple, the county agency shall apply the earned income disregard the first $50 of
496.11earned income per month as determined in section 256P.03.
496.12EFFECTIVE DATE.This section is effective October 1, 2015.

496.13    Sec. 6. Minnesota Statutes 2012, section 256D.08, subdivision 1, is amended to read:
496.14    Subdivision 1. Eligibility; excluded resources. In determining eligibility of an
496.15assistance unit, the following resources shall be excluded:
496.16(1) real or personal property or liquid assets which do not exceed $1,000; and
496.17(2) other property which has been determined, according to limitations contained in
496.18rules promulgated by the commissioner, to be essential to the assistance unit as a means of
496.19self-support or self-care or which is producing income that is being used for the support
496.20of the assistance unit. The commissioner shall further provide by rule the conditions for
496.21those situations in which property not excluded under this subdivision may be retained by
496.22the assistance unit where there is a reasonable probability that in the foreseeable future the
496.23property will be used for the self-support of the assistance unit; and
496.24(3) payments, made according to litigation and subsequent appropriation by the
496.25United States Congress, of funds to compensate members of Indian tribes for the taking of
496.26tribal land by the federal government. To establish eligibility for general assistance under
496.27this chapter, an agency must use the procedures established in section 256P.02.
496.28EFFECTIVE DATE.This section is effective June 1, 2016.

496.29    Sec. 7. Minnesota Statutes 2012, section 256D.08, is amended by adding a subdivision
496.30to read:
496.31    Subd. 3. Verification. To verify eligibility for general assistance under this chapter,
496.32an agency must use the procedures established in section 256P.04.
497.1EFFECTIVE DATE.This section is effective February 1, 2015.

497.2    Sec. 8. Minnesota Statutes 2012, section 256D.10, is amended to read:
497.3256D.10 ADMINISTRATIVE HEARING PRIOR TO ADVERSE ACTION.
497.4No grant of general assistance except one made pursuant to section 256D.06,
497.5subdivision 2 ; or 256D.08, subdivision 2, shall be reduced, terminated, or suspended
497.6unless the recipient receives notice and is afforded an opportunity to be heard prior to
497.7any action by the county agency.
497.8Nothing herein shall deprive a recipient of the right to full administrative and judicial
497.9review of an order or determination of a county agency as provided for in section 256.045
497.10subsequent to any action taken by a county agency after a prior hearing.
497.11EFFECTIVE DATE.This section is effective June 1, 2016.

497.12    Sec. 9. Minnesota Statutes 2012, section 256D.405, subdivision 1, is amended to read:
497.13    Subdivision 1. Verification of information. The county agency shall request, and
497.14applicants and recipients shall provide and verify, all information necessary to determine
497.15initial and continuing eligibility and assistance payment amounts. If necessary, the county
497.16agency shall assist the applicant or recipient in obtaining verifications. If the applicant or
497.17recipient refuses or fails without good cause to provide the information or verification, the
497.18county agency shall deny or terminate assistance An agency must apply section 256P.04
497.19when documenting, verifying, and recertifying eligibility under this chapter. An agency
497.20must only require verification of information necessary to determine eligibility under this
497.21chapter and the amount of the assistance payment.
497.22EFFECTIVE DATE.This section is effective February 1, 2015.

497.23    Sec. 10. Minnesota Statutes 2012, section 256D.405, subdivision 3, is amended to read:
497.24    Subd. 3. Reports. Recipients Participants must report changes in circumstances that
497.25affect eligibility or assistance payment amounts within ten days of the change. Recipients
497.26 Participants who do not receive SSI because of excess income must complete a monthly
497.27report form if they have earned income, if they have income deemed to them from a
497.28financially responsible relative with whom the recipient participant resides, or if they have
497.29income deemed to them by a sponsor. If the report form is not received before the end of
497.30the month in which it is due, the county agency must terminate assistance. The termination
497.31shall be effective on the first day of the month following the month in which the report
497.32was due. If a complete report is received within the month the assistance was terminated,
498.1the assistance unit is considered to have continued its application for assistance, effective
498.2the first day of the month the assistance was terminated.
498.3EFFECTIVE DATE.This section is effective February 1, 2015.

498.4    Sec. 11. Minnesota Statutes 2012, section 256D.425, subdivision 2, is amended to read:
498.5    Subd. 2. Resource standards. (a) For persons receiving supplemental security
498.6income benefits, the resource standards and restrictions for supplemental aid under
498.7this section shall be those used to determine eligibility for disabled individuals in the
498.8supplemental security income program.
498.9(b) For persons not receiving supplemental security income benefits due to excess
498.10income or resources, but whose income and resources are within the limits of the Minnesota
498.11supplemental aid program, the resource standards shall be those in section 256P.02.
498.12EFFECTIVE DATE.This section is effective June 1, 2016.

498.13    Sec. 12. Minnesota Statutes 2012, section 256I.03, is amended by adding a subdivision
498.14to read:
498.15    Subd. 1a. Agency. "Agency" has the meaning given in section 256P.01, subdivision
498.162.

498.17    Sec. 13. Minnesota Statutes 2012, section 256I.04, subdivision 1, is amended to read:
498.18    Subdivision 1. Individual eligibility requirements. An individual is eligible for
498.19and entitled to a group residential housing payment to be made on the individual's behalf
498.20if the county agency has approved the individual's residence in a group residential housing
498.21setting and the individual meets the requirements in paragraph (a) or (b).
498.22(a) The individual is aged, blind, or is over 18 years of age and disabled as
498.23determined under the criteria used by the title II program of the Social Security Act, and
498.24meets the resource restrictions and standards of the supplemental security income program
498.25 section 256P.02, and the individual's countable income after deducting the (1) exclusions
498.26and disregards of the SSI program, (2) the medical assistance personal needs allowance
498.27under section 256B.35, and (3) an amount equal to the income actually made available to
498.28a community spouse by an elderly waiver recipient participant under the provisions of
498.29sections 256B.0575, paragraph (a), clause (4), and 256B.058, subdivision 2, is less than
498.30the monthly rate specified in the county agency's agreement with the provider of group
498.31residential housing in which the individual resides.
499.1(b) The individual meets a category of eligibility under section 256D.05, subdivision
499.21 , paragraph (a), and the individual's resources are less than the standards specified by
499.3section 256D.08 256P.02, and the individual's countable income as determined under
499.4sections 256D.01 to 256D.21, less the medical assistance personal needs allowance under
499.5section 256B.35 is less than the monthly rate specified in the county agency's agreement
499.6with the provider of group residential housing in which the individual resides.
499.7EFFECTIVE DATE.This section is effective June 1, 2016.

499.8    Sec. 14. Minnesota Statutes 2012, section 256J.08, is amended by adding a subdivision
499.9to read:
499.10    Subd. 2a. Agency. "Agency" has the meaning given in section 256P.01, subdivision
499.112.

499.12    Sec. 15. Minnesota Statutes 2012, section 256J.08, subdivision 47, is amended to read:
499.13    Subd. 47. Income. "Income" means cash or in-kind benefit, whether earned or
499.14unearned, received by or available to an applicant or participant that is not an asset
499.15 property under section 256J.20 256P.02.
499.16EFFECTIVE DATE.This section is effective June 1, 2016.

499.17    Sec. 16. Minnesota Statutes 2012, section 256J.08, subdivision 57, is amended to read:
499.18    Subd. 57. Minnesota family investment program or MFIP. "Minnesota family
499.19investment program" or "MFIP" means the assistance program authorized in this chapter
499.20and chapter 256K.

499.21    Sec. 17. Minnesota Statutes 2012, section 256J.08, subdivision 83, is amended to read:
499.22    Subd. 83. Significant change. "Significant change" means a decline in gross
499.23income of the amount of the disregard as defined in subdivision 24 section 256P.03 or
499.24more from the income used to determine the grant for the current month.
499.25EFFECTIVE DATE.This section is effective October 1, 2015.

499.26    Sec. 18. Minnesota Statutes 2012, section 256J.10, is amended to read:
499.27256J.10 MFIP ELIGIBILITY REQUIREMENTS.
500.1To be eligible for MFIP, applicants must meet the general eligibility requirements
500.2in sections 256J.11 to 256J.15, the property limitations in section 256J.20 256P.02, and
500.3the income limitations in section 256J.21.
500.4EFFECTIVE DATE.This section is effective June 1, 2016.

500.5    Sec. 19. Minnesota Statutes 2013 Supplement, section 256J.21, subdivision 3, is
500.6amended to read:
500.7    Subd. 3. Initial income test. The county agency shall determine initial eligibility
500.8by considering all earned and unearned income that is not excluded under subdivision 2.
500.9To be eligible for MFIP, the assistance unit's countable income minus the earned income
500.10disregards in paragraphs paragraph (a) and (b) section 256P.03 must be below the family
500.11wage level according to section 256J.24 for that size assistance unit.
500.12(a) The initial eligibility determination must disregard the following items:
500.13(1) the employment earned income disregard is 18 percent of the gross earned
500.14income whether or not the member is working full time or part time as determined in
500.15section 256P.03;
500.16(2) dependent care costs must be deducted from gross earned income for the actual
500.17amount paid for dependent care up to a maximum of $200 per month for each child less
500.18than two years of age, and $175 per month for each child two years of age and older under
500.19this chapter and chapter 119B;
500.20(3) all payments made according to a court order for spousal support or the support
500.21of children not living in the assistance unit's household shall be disregarded from the
500.22income of the person with the legal obligation to pay support, provided that, if there has
500.23been a change in the financial circumstances of the person with the legal obligation to pay
500.24support since the support order was entered, the person with the legal obligation to pay
500.25support has petitioned for a modification of the support order; and
500.26(4) an allocation for the unmet need of an ineligible spouse or an ineligible child
500.27under the age of 21 for whom the caregiver is financially responsible and who lives with
500.28the caregiver according to section 256J.36.
500.29(b) Notwithstanding paragraph (a), when determining initial eligibility for applicant
500.30units when at least one member has received MFIP in this state within four months of
500.31the most recent application for MFIP, apply the disregard as defined in section 256J.08,
500.32subdivision 24 , for all unit members.
500.33After initial eligibility is established, the assistance payment calculation is based on
500.34the monthly income test.
501.1EFFECTIVE DATE.This section is effective October 1, 2015.

501.2    Sec. 20. Minnesota Statutes 2012, section 256J.21, subdivision 4, is amended to read:
501.3    Subd. 4. Monthly income test and determination of assistance payment.
501.4The county agency shall determine ongoing eligibility and the assistance payment
501.5amount according to the monthly income test. To be eligible for MFIP, the result of the
501.6computations in paragraphs (a) to (e) must be at least $1.
501.7(a) Apply an income disregard as defined in section 256J.08, subdivision 24 256P.03,
501.8to gross earnings and subtract this amount from the family wage level. If the difference is
501.9equal to or greater than the MFIP transitional standard of need, the assistance payment is
501.10equal to the MFIP transitional standard of need. If the difference is less than the MFIP
501.11transitional standard of need, the assistance payment is equal to the difference. The
501.12employment earned income disregard in this paragraph must be deducted every month
501.13there is earned income.
501.14(b) All payments made according to a court order for spousal support or the support
501.15of children not living in the assistance unit's household must be disregarded from the
501.16income of the person with the legal obligation to pay support, provided that, if there has
501.17been a change in the financial circumstances of the person with the legal obligation to pay
501.18support since the support order was entered, the person with the legal obligation to pay
501.19support has petitioned for a modification of the court order.
501.20(c) An allocation for the unmet need of an ineligible spouse or an ineligible child
501.21under the age of 21 for whom the caregiver is financially responsible and who lives with
501.22the caregiver must be made according to section 256J.36.
501.23(d) Subtract unearned income dollar for dollar from the MFIP transitional standard
501.24of need to determine the assistance payment amount.
501.25(e) When income is both earned and unearned, the amount of the assistance payment
501.26must be determined by first treating gross earned income as specified in paragraph (a).
501.27After determining the amount of the assistance payment under paragraph (a), unearned
501.28income must be subtracted from that amount dollar for dollar to determine the assistance
501.29payment amount.
501.30(f) When the monthly income is greater than the MFIP transitional standard of need
501.31 after deductions and the income will only exceed the standard for one month, the county
501.32agency must suspend the assistance payment for the payment month.
501.33EFFECTIVE DATE.This section is effective October 1, 2015.

501.34    Sec. 21. Minnesota Statutes 2012, section 256J.30, subdivision 4, is amended to read:
502.1    Subd. 4. Participant's completion of recertification of eligibility form. A
502.2participant must complete forms prescribed by the commissioner which are required
502.3for recertification of eligibility according to section 256J.32, subdivision 6 256P.04,
502.4subdivisions 8 and 9.
502.5EFFECTIVE DATE.This section is effective February 1, 2015.

502.6    Sec. 22. Minnesota Statutes 2013 Supplement, section 256J.30, subdivision 9, is
502.7amended to read:
502.8    Subd. 9. Changes that must be reported. A caregiver must report the changes
502.9or anticipated changes specified in clauses (1) to (16) (15) within ten days of the date
502.10they occur, at the time of the periodic recertification of eligibility under section 256J.32,
502.11subdivision 6 256P.04, subdivisions 8 and 9, or within eight calendar days of a reporting
502.12period as in subdivision 5, whichever occurs first. A caregiver must report other changes
502.13at the time of the periodic recertification of eligibility under section 256J.32, subdivision
502.146 256P.04, subdivisions 8 and 9, or at the end of a reporting period under subdivision
502.155, as applicable. A caregiver must make these reports in writing to the county agency.
502.16When a county an agency could have reduced or terminated assistance for one or more
502.17payment months if a delay in reporting a change specified under clauses (1) to (15) (14)
502.18 had not occurred, the county agency must determine whether a timely notice under section
502.19256J.31, subdivision 4 , could have been issued on the day that the change occurred. When
502.20a timely notice could have been issued, each month's overpayment subsequent to that
502.21notice must be considered a client error overpayment under section 256J.38. Calculation
502.22of overpayments for late reporting under clause (16) (15) is specified in section 256J.09,
502.23subdivision 9 . Changes in circumstances which must be reported within ten days must
502.24also be reported on the MFIP household report form for the reporting period in which
502.25those changes occurred. Within ten days, a caregiver must report:
502.26(1) a change in initial employment;
502.27(2) a change in initial receipt of unearned income;
502.28(3) a recurring change in unearned income;
502.29(4) a nonrecurring change of unearned income that exceeds $30;
502.30(5) the receipt of a lump sum;
502.31(6) an increase in assets that may cause the assistance unit to exceed asset limits;
502.32(7) a change in the physical or mental status of an incapacitated member of the
502.33assistance unit if the physical or mental status is the basis for reducing the hourly
502.34participation requirements under section 256J.55, subdivision 1, or the type of activities
502.35included in an employment plan under section 256J.521, subdivision 2;
503.1(8) a change in employment status;
503.2(9) information affecting an exception under section 256J.24, subdivision 9;
503.3(10) (9) the marriage or divorce of an assistance unit member;
503.4(11) (10) the death of a parent, minor child, or financially responsible person;
503.5(12) (11) a change in address or living quarters of the assistance unit;
503.6(13) (12) the sale, purchase, or other transfer of property;
503.7(14) (13) a change in school attendance of a caregiver under age 20 or an employed
503.8child;
503.9(15) (14) filing a lawsuit, a workers' compensation claim, or a monetary claim
503.10against a third party; and
503.11(16) (15) a change in household composition, including births, returns to and
503.12departures from the home of assistance unit members and financially responsible persons,
503.13or a change in the custody of a minor child.
503.14EFFECTIVE DATE.This section is effective January 1, 2015.

503.15    Sec. 23. Minnesota Statutes 2012, section 256J.32, subdivision 1, is amended to read:
503.16    Subdivision 1. Verification of information. A county An agency must apply section
503.17256P.04 when documenting, verifying, and recertifying MFIP eligibility. An agency must
503.18only require verification of information necessary to determine MFIP eligibility and the
503.19amount of the assistance payment.
503.20EFFECTIVE DATE.This section is effective February 1, 2015.

503.21    Sec. 24. Minnesota Statutes 2012, section 256J.33, subdivision 2, is amended to read:
503.22    Subd. 2. Prospective eligibility. A county An agency must determine whether the
503.23eligibility requirements that pertain to an assistance unit, including those in sections
503.24256J.11 to 256J.15 and 256J.20 256P.02, will be met prospectively for the payment
503.25month. Except for the provisions in section 256J.34, subdivision 1, the income test will be
503.26applied retrospectively.
503.27EFFECTIVE DATE.This section is effective June 1, 2016.

503.28    Sec. 25. Minnesota Statutes 2012, section 256J.37, as amended by Laws 2013, chapter
503.29107, article 4, section 15, is amended to read:
503.30256J.37 TREATMENT OF INCOME AND LUMP SUMS.
504.1    Subdivision 1. Deemed income from ineligible household assistance unit
504.2 members. Unless otherwise provided under subdivision 1a or 1b, The income of ineligible
504.3household assistance unit members must be deemed after allowing the following disregards:
504.4(1) the first 18 percent of the ineligible family member's gross an earned income
504.5 disregard as determined under section 256P.03;
504.6(2) amounts the ineligible person actually paid to individuals not living in the
504.7same household but whom the ineligible person claims or could claim as dependents for
504.8determining federal personal income tax liability;
504.9(3) (2) all payments made by the ineligible person according to a court order for
504.10spousal support or the support of children not living in the assistance unit's household,
504.11provided that, if there has been a change in the financial circumstances of the ineligible
504.12person since the support order was entered, the ineligible person has petitioned for a
504.13modification of the support order; and
504.14(4) (3) an amount for the unmet needs of the ineligible person and other persons
504.15who live in the household but are not included in the assistance unit and are or could be
504.16claimed by an ineligible person as dependents for determining federal personal income
504.17tax liability who, if eligible, would be assistance unit members under section 256J.24,
504.18subdivision 2 or 4, paragraph (b). This amount is equal to the difference between the
504.19MFIP transitional standard of need when the ineligible person is persons are included in
504.20the assistance unit and the MFIP transitional standard of need when the ineligible person
504.21is persons are not included in the assistance unit.
504.22    Subd. 1a. Deemed income from disqualified assistance unit members. The
504.23income of disqualified members must be deemed after allowing the following disregards:
504.24(1) the first 18 percent of the disqualified member's gross an earned income disregard
504.25as determined under section 256P.03;
504.26(2) amounts the disqualified member actually paid to individuals not living in the
504.27same household but whom the disqualified member claims or could claim as dependents
504.28for determining federal personal income tax liability;
504.29(3) (2) all payments made by the disqualified member according to a court order for
504.30spousal support or the support of children not living in the assistance unit's household,
504.31provided that, if there has been a change in the financial circumstances of the disqualified
504.32member's legal obligation to pay support since the support order was entered, the
504.33disqualified member has petitioned for a modification of the support order; and
504.34(4) (3) an amount for the unmet needs of other ineligible persons who live in the
504.35household but are not included in the assistance unit and are or could be claimed by the
504.36disqualified member as dependents for determining federal personal income tax liability
505.1 who, if eligible, would be assistance unit members under section 256J.24, subdivision 2 or
505.24, paragraph (b). This amount is equal to the difference between the MFIP transitional
505.3standard of need when the ineligible person is persons are included in the assistance unit
505.4and the MFIP transitional standard of need when the ineligible person is persons are
505.5 not included in the assistance unit. An amount shall not be allowed for the needs of a
505.6 disqualified member members.
505.7    Subd. 1b. Deemed income from parents of minor caregivers. In households
505.8where minor caregivers live with a parent or parents who do not receive MFIP for
505.9themselves or their minor children, the income of the parents must be deemed after
505.10allowing the following disregards:
505.11(1) income of the parents equal to 200 percent of the federal poverty guideline for a
505.12family size not including the minor parent and the minor parent's child in the household
505.13according to section 256J.21, subdivision 2, clause (43); and
505.14(2) 18 percent of the parents' gross earned income;
505.15(3) amounts the parents actually paid to individuals not living in the same household
505.16but whom the parents claim or could claim as dependents for determining federal personal
505.17income tax liability; and
505.18(4) (2) all payments made by parents according to a court order for spousal support
505.19or the support of children not living in the parent's household, provided that, if there has
505.20been a change in the financial circumstances of the parent's legal obligation to pay support
505.21since the support order was entered, the parents have petitioned for a modification of
505.22the support order.
505.23    Subd. 2. Deemed income and assets of sponsor of noncitizens. (a) If a noncitizen
505.24applies for or receives MFIP, the county agency must deem the income and assets of the
505.25noncitizen's sponsor and the sponsor's spouse as provided in this paragraph and paragraph
505.26(b) or (c), whichever is applicable. The deemed income of a sponsor and the sponsor's
505.27spouse is considered unearned income of the noncitizen. The deemed assets of a sponsor
505.28and the sponsor's spouse are considered available assets of the noncitizen.
505.29(b) The income and assets of a sponsor who signed an affidavit of support under title
505.30IV, sections 421, 422, and 423, of Public Law 104-193, the Personal Responsibility and
505.31Work Opportunity Reconciliation Act of 1996, and the income and assets of the sponsor's
505.32spouse, must be deemed to the noncitizen to the extent required by those sections of
505.33Public Law 104-193.
505.34(c) The income and assets of a sponsor and the sponsor's spouse to whom the
505.35provisions of paragraph (b) do not apply must be deemed to the noncitizen to the full
506.1extent allowed under title V, section 5505, of Public Law 105-33, the Balanced Budget
506.2Act of 1997.
506.3    Subd. 3. Earned income of wage, salary, and contractual employees. The county
506.4 agency must include gross earned income less any disregards in the initial and monthly
506.5income test. Gross earned income received by persons employed on a contractual basis
506.6must be prorated over the period covered by the contract even when payments are received
506.7over a lesser period of time.
506.8    Subd. 3a. Rental subsidies; unearned income. (a) Effective July 1, 2003, the
506.9county agency shall count $50 of the value of public and assisted rental subsidies provided
506.10through the Department of Housing and Urban Development (HUD) as unearned income
506.11to the cash portion of the MFIP grant. The full amount of the subsidy must be counted as
506.12unearned income when the subsidy is less than $50. The income from this subsidy shall
506.13be budgeted according to section 256J.34.
506.14(b) The provisions of this subdivision shall not apply to an MFIP assistance unit
506.15which includes a participant who is:
506.16(1) age 60 or older;
506.17(2) a caregiver who is suffering from an illness, injury, or incapacity that has been
506.18certified by a qualified professional when the illness, injury, or incapacity is expected
506.19to continue for more than 30 days and severely limits the person's ability to obtain or
506.20maintain suitable employment; or
506.21(3) a caregiver whose presence in the home is required due to the illness or
506.22incapacity of another member in the assistance unit, a relative in the household, or a foster
506.23child in the household when the illness or incapacity and the need for the participant's
506.24presence in the home has been certified by a qualified professional and is expected to
506.25continue for more than 30 days.
506.26(c) The provisions of this subdivision shall not apply to an MFIP assistance unit
506.27where the parental caregiver is an SSI recipient participant.
506.28    Subd. 4. Self-employment. Self-employed individuals are those who are
506.29responsible for their own work schedule and do not have coverage under an employer's
506.30liability insurance or workers' compensation. Self-employed individuals generally work
506.31for themselves rather than an employer. However, individuals employed in some types of
506.32services may be self-employed even if they have an employer or work out of another's
506.33business location. For example, real estate sales people, individuals who work for
506.34commission sales, manufacturer's representatives, and independent contractors may be
506.35self-employed. Self-employed individuals may or may not have FICA deducted from the
506.36check issued to them by an employer or another party.
507.1Self-employed individuals may own a business singularly or in partnership.
507.2Individuals operating more than one self-employment business may use the loss from
507.3one business to offset self-employment income from another business. A loss from a
507.4self-employment business may not offset income earned under subdivision 3.
507.5Self-employment has the meaning given in section 256P.01, subdivision 7.
507.6    Subd. 5. Self-employment earnings. The county agency must determine
507.7self-employment income according to the following: section 256P.05, subdivision 2.
507.8(a) Subtract allowable business expenses from total gross receipts. Allowable
507.9business expenses include:
507.10(1) interest on mortgages and loans;
507.11(2) employee wages, except for persons who are part of the assistance unit or whose
507.12income is deemed to the participant;
507.13(3) FICA funds paid on employees' wages, payment of employee workers'
507.14compensation, and unemployment benefits;
507.15(4) livestock and veterinary or breeding fees;
507.16(5) raw material;
507.17(6) seed and fertilizer;
507.18(7) maintenance and repairs that are not capital expenditures;
507.19(8) tax return preparation fees;
507.20(9) license fees, professional fees, franchise fees, and professional dues;
507.21(10) tools and supplies that are not capital expenditures;
507.22(11) fuel and transportation expenses other than fuel costs covered by the flat rate
507.23transportation deduction;
507.24(12) advertising costs;
507.25(13) meals eaten when required to be away from the local work site;
507.26(14) property expenses such as rent, insurance, taxes, and utilities;
507.27(15) postage;
507.28(16) purchase cost of inventory at time of sale;
507.29(17) loss from another self-employment business;
507.30(18) attorney fees allowed by the Internal Revenue Service; and
507.31(19) tuition for classes necessary to maintain or improve job skills or required by
507.32law to maintain job status or salary as allowed by the Internal Revenue Service.
507.33(b) The county agency shall not allow a deduction for the following expenses:
507.34(1) purchases of capital assets;
507.35(2) payments on the principals of loans for capital assets;
507.36(3) depreciation;
508.1(4) amortization;
508.2(5) the wholesale costs of items purchased, processed, or manufactured which are
508.3unsold inventory;
508.4(6) transportation costs that exceed the maximum standard mileage rate allowed for
508.5use of a personal car in the Internal Revenue Code;
508.6(7) costs, in any amount, for mileage between an applicant's or participant's home
508.7and place of employment;
508.8(8) salaries and other employment deductions made for members of an assistance
508.9unit or persons who live in the household for whom an employer is legally responsible;
508.10(9) monthly expenses in excess of $71 for each roomer;
508.11(10) monthly expenses in excess of the Thrifty Food Plan amount for one person for
508.12each boarder. For purposes of this clause and clause (11), "Thrifty Food Plan" has the
508.13meaning given it in Code of Federal Regulations;
508.14(11) monthly expenses in excess of the roomer rate plus the Thrifty Food Plan
508.15amount for one person for each roomer-boarder. If there is more than one boarder or
508.16roomer-boarder, use the total number of boarders as the unit size to determine the Thrifty
508.17Food Plan amount;
508.18(12) an amount greater than actual expenses or two percent of the estimated market
508.19value on a county tax assessment form, whichever is greater, as a deduction for upkeep
508.20and repair against rental income;
508.21(13) expenses not allowed by the Internal Revenue Code;
508.22(14) expenses in excess of 60 percent of gross receipts for in-home child care unless
508.23a higher amount can be documented; and
508.24(15) expenses that are reimbursed under the child and adult care food program as
508.25authorized under the National School Lunch Act, United States Code, title 42.
508.26    Subd. 6. Self-employment budget period. The self-employment budget period
508.27begins in the month of application or in the first month of self-employment. Gross receipts
508.28must be budgeted in the month received. Expenses must be budgeted against gross
508.29receipts in the month the expenses are paid, except for paragraphs (a) to (c).
508.30(a) The purchase cost of inventory items, including materials which are processed
508.31or manufactured, must be deducted as an expense at the time payment is received for
508.32the sale of the inventory items.
508.33(b) A 12-month rolling average based on clauses (1) to (3) must be used to budget
508.34monthly income.
508.35(1) For a business in operation for at least 12 months, the county agency shall use
508.36the average monthly self-employment income from the most current income tax report for
509.1the 12 months before the month of application. The county agency shall determine a new
509.2monthly average by adding in the actual self-employment income and expenses from the
509.3previous month and dropping the first month from the averaging period.
509.4(2) For a business in operation for less than 12 months, the county agency shall
509.5compute the average for the number of months the business has been in operation to
509.6determine a monthly average. When data are available for 12 or more months, average
509.7monthly self-employment income is determined under clause (1).
509.8(3) If the business undergoes a major change, the county agency shall compute a new
509.9rolling average beginning with the first month of the major change. For the purpose of this
509.10clause, major change means a change that affects the nature and scale of the business and
509.11is not merely the result of normal business fluctuations.
509.12(c) For seasonal self-employment, the caregiver may choose whether to use actual
509.13income in the month of receipt and expenses in the month incurred or the rolling average
509.14method of computation. The choice must be made once per year at the time of application
509.15or recertification. For the purpose of this paragraph, seasonal means working six or less
509.16months per year.
509.17The agency must budget self-employment earned income according to section
509.18256P.05, subdivision 3.
509.19    Subd. 7. Farm income. Farm income is the difference between gross receipts
509.20and operating expenses. The county agency must not allow a deduction for expenses
509.21listed in subdivision 5, paragraph (b). Gross receipts include sales, rents, subsidies,
509.22soil conservation payments, production derived from livestock, and income from
509.23home-produced food Farm income shall be treated as self-employment income under
509.24section 256P.05, subdivision 2. The agency must budget farm income as self-employment
509.25earned income according to section 256P.05, subdivision 3.
509.26    Subd. 8. Rental income. The county agency must treat income from rental property
509.27as earned or unearned income. Income from rental property is unearned income unless the
509.28assistance unit spends an average of ten hours per week on maintenance or management
509.29of the property. When the owner spends more than ten hours per week on maintenance
509.30or repairs, the earnings are considered self-employment earnings. An amount must be
509.31deducted for upkeep and repairs, as specified in subdivision 5, paragraph (b), clause
509.32(12), real estate taxes, insurance, utilities, and interest on principal payments. When the
509.33applicant or participant lives on the rental property, expenses for upkeep, taxes, insurance,
509.34utilities, and interest must be divided by the number of rooms to determine expense per
509.35room and expenses deducted must be deducted only for the number of rooms rented
509.36 Rental income is subject to the requirements of section 256P.05.
510.1    Subd. 9. Unearned income. (a) The county agency must apply unearned income
510.2to the MFIP transitional standard of need. When determining the amount of unearned
510.3income, the county agency must deduct the costs necessary to secure payments of
510.4unearned income. These costs include legal fees, medical fees, and mandatory deductions
510.5such as federal and state income taxes.
510.6(b) The county agency must convert unearned income received on a periodic basis to
510.7monthly amounts by prorating the income over the number of months represented by the
510.8frequency of the payments. The county agency must begin counting the monthly amount
510.9in the month the periodic payment is received and budget it according to the assistance
510.10unit's budget cycle.
510.11    Subd. 10. Treatment of lump sums. (a) The county agency must treat lump-sum
510.12payments as earned or unearned income. If the lump-sum payment is included in the
510.13category of income identified in subdivision 9, it must be treated as unearned income. A
510.14lump sum is counted as income in the month received and budgeted either prospectively or
510.15retrospectively depending on the budget cycle at the time of receipt. When an individual
510.16receives a lump-sum payment, that lump sum must be combined with all other earned and
510.17unearned income received in the same budget month, and it must be applied according to
510.18paragraphs (a) to (c). A lump sum may not be carried over into subsequent months. Any
510.19funds that remain in the third month after the month of receipt are counted in the asset limit.
510.20(b) For a lump sum received by an applicant during the first two months, prospective
510.21budgeting is used to determine the payment and the lump sum must be combined with
510.22other earned or unearned income received and budgeted in that prospective month.
510.23(c) For a lump sum received by a participant after the first two months of MFIP
510.24eligibility, the lump sum must be combined with other income received in that budget
510.25month, and the combined amount must be applied retrospectively against the applicable
510.26payment month.
510.27(d) When a lump sum, combined with other income under paragraphs (b) and (c), is
510.28less than the MFIP transitional standard of need for the appropriate payment month, the
510.29assistance payment must be reduced according to the amount of the countable income.
510.30When the countable income is greater than the MFIP standard or family wage level, the
510.31assistance payment must be suspended for the payment month.
510.32EFFECTIVE DATE.The amendments to subdivisions 1, 1a, 1b, and 2 are effective
510.33October 1, 2015. The amendments to subdivisions 4, 5, 6, 7, and 8 are effective February
510.341, 2015. The amendments to subdivisions 9 and 10 are effective January 1, 2015.

510.35    Sec. 26. Minnesota Statutes 2012, section 256J.425, subdivision 1, is amended to read:
511.1    Subdivision 1. Eligibility. (a) To be eligible for a hardship extension, a participant
511.2in an assistance unit subject to the time limit under section 256J.42, subdivision 1, must
511.3be in compliance in the participant's 60th counted month. For purposes of determining
511.4eligibility for a hardship extension, a participant is in compliance in any month that the
511.5participant has not been sanctioned. In order to maintain eligibility for any of the hardship
511.6extension categories a participant shall develop and comply with either an employment
511.7plan or a family stabilization services plan, whichever is appropriate.
511.8    (b) If one participant in a two-parent assistance unit is determined to be ineligible for
511.9a hardship extension, the county shall give the assistance unit the option of disqualifying
511.10the ineligible participant from MFIP. In that case, the assistance unit shall be treated as a
511.11one-parent assistance unit and the assistance unit's MFIP grant shall be calculated using
511.12the shared household standard under section 256J.08, subdivision 82a.
511.13    (c) Prior to denying an extension, the county must review the sanction status and
511.14determine whether the sanction is appropriate or if good cause exists under section 256J.57.
511.15If the sanction was inappropriately applied or the participant is granted a good cause
511.16exception before the end of month 60, the participant shall be considered for an extension.
511.17EFFECTIVE DATE.This section is effective January 1, 2015.

511.18    Sec. 27. Minnesota Statutes 2012, section 256J.425, subdivision 7, is amended to read:
511.19    Subd. 7. Status of disqualified participants. (a) An assistance unit that is
511.20disqualified under subdivision 6, paragraph (a), may be approved for MFIP if the
511.21participant complies with MFIP program requirements and demonstrates compliance for
511.22up to one month. No assistance shall be paid during this period.
511.23(b) An assistance unit that is disqualified under subdivision 6, paragraph (a), and that
511.24reapplies under paragraph (a) is subject to sanction under section 256J.46, subdivision
511.251 , paragraph (c), clause (1), for a first occurrence of noncompliance. A subsequent
511.26occurrence of noncompliance results in a permanent disqualification.
511.27(c) If one participant in a two-parent assistance unit receiving assistance under a
511.28hardship extension under subdivision 3 or 4 is determined to be out of compliance with
511.29the employment and training services requirements under sections 256J.521 to 256J.57,
511.30the county shall give the assistance unit the option of disqualifying the noncompliant
511.31participant from MFIP. In that case, the assistance unit shall be treated as a one-parent
511.32assistance unit for the purposes of meeting the work requirements under subdivision
511.334 and the assistance unit's MFIP grant shall be calculated using the shared household
511.34standard under section 256J.08, subdivision 82a. An applicant who is disqualified
511.35from receiving assistance under this paragraph may reapply under paragraph (a). If a
512.1participant is disqualified from MFIP under this subdivision a second time, the participant
512.2is permanently disqualified from MFIP.
512.3(d) Prior to a disqualification under this subdivision, a county agency must review
512.4the participant's case to determine if the employment plan is still appropriate and attempt
512.5to meet with the participant face-to-face. If a face-to-face meeting is not conducted, the
512.6county agency must send the participant a notice of adverse action as provided in section
512.7256J.31 . During the face-to-face meeting, the county agency must:
512.8(1) determine whether the continued noncompliance can be explained and mitigated
512.9by providing a needed preemployment activity, as defined in section 256J.49, subdivision
512.1013 , clause (9);
512.11(2) determine whether the participant qualifies for a good cause exception under
512.12section 256J.57;
512.13(3) inform the participant of the family violence waiver criteria and make appropriate
512.14referrals if the waiver is requested;
512.15(4) inform the participant of the participant's sanction status and explain the
512.16consequences of continuing noncompliance;
512.17(5) identify other resources that may be available to the participant to meet the
512.18needs of the family; and
512.19(6) inform the participant of the right to appeal under section 256J.40.
512.20EFFECTIVE DATE.This section is effective January 1, 2015.

512.21    Sec. 28. Minnesota Statutes 2012, section 256J.95, subdivision 8, is amended to read:
512.22    Subd. 8. Verification requirements. (a) A county agency must only require
512.23verification of information necessary to determine DWP eligibility and the amount of
512.24the payment. The applicant or participant must document the information required or
512.25authorize the county agency to verify the information. The applicant or participant has the
512.26burden of providing documentary evidence to verify eligibility. The county agency shall
512.27assist the applicant or participant in obtaining required documents when the applicant
512.28or participant is unable to do so.
512.29(b) A county agency must not request information about an applicant or participant
512.30that is not a matter of public record from a source other than county agencies, the
512.31Department of Human Services, or the United States Department of Health and Human
512.32Services without the person's prior written consent. An applicant's signature on an
512.33application form constitutes consent for contact with the sources specified on the
512.34application. A county agency may use a single consent form to contact a group of similar
513.1sources, but the sources to be contacted must be identified by the county agency prior to
513.2requesting an applicant's consent.
513.3(c) Factors to be verified shall follow section 256J.32, subdivision 256P.04,
513.4subdivisions 4 and 5. Except for personal needs, family maintenance needs must be
513.5verified before the expense can be allowed in the calculation of the DWP grant.
513.6EFFECTIVE DATE.This section is effective February 1, 2015.

513.7    Sec. 29. Minnesota Statutes 2012, section 256J.95, subdivision 9, is amended to read:
513.8    Subd. 9. Property and income limitations. The asset limits and exclusions in
513.9section 256J.20 256P.02 apply to applicants and recipients participants of DWP. All
513.10payments, unless excluded in section 256J.21, must be counted as income to determine
513.11eligibility for the diversionary work program. The county agency shall treat income as
513.12outlined in section 256J.37, except for subdivision 3a. The initial income test and the
513.13disregards in section 256J.21, subdivision 3, shall be followed for determining eligibility
513.14for the diversionary work program.
513.15EFFECTIVE DATE.This section is effective June 1, 2016.

513.16    Sec. 30. Minnesota Statutes 2012, section 256J.95, subdivision 10, is amended to read:
513.17    Subd. 10. Diversionary work program grant. (a) The amount of cash benefits that
513.18a family unit is eligible for under the diversionary work program is based on the number
513.19of persons in the family unit, the family maintenance needs, personal needs allowance,
513.20and countable income. The county agency shall evaluate the income of the family unit
513.21that is requesting payments under the diversionary work program. Countable income
513.22means gross earned and unearned income not excluded or disregarded under MFIP.
513.23The same disregards for earned income that are allowed under MFIP are allowed for
513.24the diversionary work program.
513.25(b) The DWP grant is based on the family maintenance needs for which the DWP
513.26family unit is responsible plus a personal needs allowance. Housing and utilities, except
513.27for telephone service, shall be vendor paid. Unless otherwise stated in this section, actual
513.28housing and utility expenses shall be used when determining the amount of the DWP grant.
513.29(c) The maximum monthly benefit amount available under the diversionary work
513.30program is the difference between the family unit's needs under paragraph (b) and the
513.31family unit's countable income not to exceed the cash portion of the MFIP transitional
513.32standard of need as defined in section sections 256J.08, subdivision 55a 85, and 256J.24,
513.33subdivision 5, for the family unit's size.
514.1(d) Once the county has determined a grant amount, the DWP grant amount will
514.2not be decreased if the determination is based on the best information available at the
514.3time of approval and shall not be decreased because of any additional income to the
514.4family unit. The grant must be increased if a participant later verifies an increase in family
514.5maintenance needs or family unit size. The minimum cash benefit amount, if income and
514.6asset tests are met, is $10. Benefits of $10 shall not be vendor paid.
514.7(e) When all criteria are met, including the development of an employment plan as
514.8described in subdivision 14 and eligibility exists for the month of application, the amount
514.9of benefits for the diversionary work program retroactive to the date of application is as
514.10specified in section 256J.35, paragraph (a).
514.11(f) Any month during the four-month DWP period that a person receives a DWP
514.12benefit directly or through a vendor payment made on the person's behalf, that person is
514.13ineligible for MFIP or any other TANF cash assistance program except for benefits defined
514.14in section 256J.626, subdivision 2, clause (1).
514.15If during the four-month period a family unit that receives DWP benefits moves to
514.16a county that has not established a diversionary work program, the family unit may be
514.17eligible for MFIP the month following the last month of the issuance of the DWP benefit.
514.18EFFECTIVE DATE.This section is effective January 1, 2015.

514.19    Sec. 31. [256P.001] APPLICABILITY.
514.20General assistance and Minnesota supplemental aid under chapter 256D and
514.21programs governed by chapter 256I or 256J are subject to the requirements of this chapter,
514.22unless otherwise specified or exempted.

514.23    Sec. 32. [256P.01] DEFINITIONS.
514.24    Subdivision 1. Scope. For purposes of this chapter, the terms defined in this section
514.25have the meanings given them.
514.26    Subd. 2. Agency. "Agency" means any county, federally recognized Indian tribe, or
514.27multicounty social services collaboratives.
514.28    Subd. 3. Earned income. "Earned income" means cash or in-kind income earned
514.29through the receipt of wages, salary, commissions, profit from employment activities, net
514.30profit from self-employment activities, payments made by an employer for regularly
514.31accrued vacation or sick leave, and any other profit from activity earned through effort or
514.32labor. The income must be in return for, or as a result of, legal activity.
515.1    Subd. 4. Earned income disregard. "Earned income disregard" means earned
515.2income that is not counted according to section 256P.03 when determining eligibility and
515.3calculating the amount of the assistance payment.
515.4    Subd. 5. Equity value. "Equity value" means the amount of equity in personal
515.5property owned by a person and is determined by subtracting any outstanding
515.6encumbrances from the fair market value of the personal property.
515.7    Subd. 6. Personal property. "Personal property" means an item of value that
515.8is not real property.
515.9    Subd. 7. Self-employment. "Self-employment" means employment by an
515.10individual who:
515.11(1) incurs costs in producing income and deducts these costs in order to equate the
515.12individual's income with income from sources where there are no production costs; and
515.13(2) controls the individual's work by working either independently of an employer or
515.14freelance, or by running the business; or
515.15(3) pays self-employment taxes.

515.16    Sec. 33. [256P.02] PERSONAL PROPERTY LIMITATIONS.
515.17    Subdivision 1. Property ownership. (a) The agency must apply paragraphs (b) to
515.18(e) to determine the value of personal property. The agency must use the equity value
515.19of legally available personal property to determine whether an applicant or participant
515.20is eligible for assistance.
515.21(b) When personal property is jointly owned by two or more persons, the agency
515.22shall assume that each person owns an equal share, except that either person owns
515.23the entire sum of a joint personal checking or savings account. When an applicant or
515.24participant documents greater or lesser ownership, the agency must use that greater or
515.25lesser share to determine the equity value held by the applicant or participant. Other types
515.26of ownership must be evaluated according to law.
515.27(c) Personal property owned by the applicant or participant must be presumed legally
515.28available to the applicant or participant unless the applicant or participant documents
515.29that the property is not legally available to the applicant or participant. When personal
515.30property is not legally available, its equity value must not be applied against the limits of
515.31subdivision 2.
515.32(d) An applicant must disclose whether the applicant has transferred personal
515.33property valued in excess of the property limits in subdivision 2 for which reasonable
515.34compensation was not received within one year prior to application. A participant must
515.35disclose all transfers of property valued in excess of these limits, according to the reporting
516.1requirements in section 256J.30, subdivision 9. When a transfer of personal property
516.2without reasonable compensation has occurred:
516.3(1) the person who transferred the property must provide the property's description,
516.4information needed to determine the property's equity value, the names of the persons who
516.5received the property, and the circumstances of and reasons for the transfer; and
516.6(2) when the transferred property can be reasonably reacquired, or when reasonable
516.7compensation can be secured, the property is presumed legally available to the applicant
516.8or participant.
516.9(e) A participant may build the equity value of personal property to the limits in
516.10subdivision 2.
516.11    Subd. 2. Personal property limitations. (a) The equity value of an assistance unit's
516.12personal property listed in clauses (1) to (4) must not exceed $10,000 for applicants and
516.13participants. For purposes of this subdivision, personal property is limited to:
516.14(1) cash;
516.15(2) bank accounts;
516.16(3) liquid stocks and bonds that can be readily accessed without a financial penalty;
516.17and
516.18(4) vehicles not excluded under subdivision 3.
516.19    Subd. 3. Vehicle exception. One vehicle per assistance unit member age 16 or older
516.20shall be excluded when determining the equity value of personal property. If the assistance
516.21unit owns more than one vehicle per assistance unit member age 16 or older, the agency
516.22shall determine the trade-in values of all additional vehicles and apply the values to the
516.23personal property limitations in subdivision 2. To establish the trade-in values of vehicles,
516.24an agency must use the National Automobile Dealers Association online car values and
516.25car prices guide. When a vehicle is not listed in the online guide, or when the applicant or
516.26participant disputes the trade-in value listed in the online guide as unreasonable given the
516.27condition of the particular vehicle, the agency may require the applicant or participant to
516.28document the trade-in value by securing a written statement from a motor vehicle dealer
516.29licensed under section 168.27, stating the amount that the dealer would pay to purchase
516.30the vehicle. The agency shall reimburse the applicant or participant for the cost of a
516.31written statement that documents a lower loan value.
516.32EFFECTIVE DATE.This section is effective June 1, 2016.

516.33    Sec. 34. [256P.03] EARNED INCOME DISREGARD.
517.1    Subdivision 1. Exempted programs. Participants who qualify for Minnesota
517.2supplemental aid under chapter 256D and for group residential housing under chapter 256I
517.3on the basis of eligibility for Supplemental Security Income are exempt from this section.
517.4    Subd. 2. Earned income disregard. The agency shall disregard the first $65 of
517.5earned income plus one-half of the remaining earned income per month.
517.6EFFECTIVE DATE.This section is effective October 1, 2015.

517.7    Sec. 35. [256P.04] DOCUMENTING, VERIFYING, AND RECERTIFYING
517.8ELIGIBILITY.
517.9    Subdivision 1. Exemption. Participants who receive Minnesota supplemental aid
517.10and who maintain Supplemental Security Income eligibility under chapters 256D and
517.11256I are exempt from the reporting requirements of this section, except that the policies
517.12and procedures for transfers of assets are those used by the medical assistance program
517.13under section 256B.0595.
517.14    Subd. 2. Verification of information. An agency must only require verification of
517.15information necessary to determine eligibility and the amount of the assistance payment.
517.16If necessary, the agency shall assist the applicant or participant in obtaining verifications
517.17and required documents when the applicant or participant is unable to do so.
517.18    Subd. 3. Documentation. The applicant or participant must document the
517.19information required under subdivisions 4 to 7 or authorize the agency to verify the
517.20information. The applicant or participant has the burden of providing documentary
517.21evidence to verify eligibility. The agency must accept a signed personal statement from
517.22the applicant or participant when determining personal property values under section
517.23256P.02. The signed personal statement must include general penalty warnings and a
517.24disclaimer that any false or misrepresented information is subject to prosecution for fraud
517.25under sections 609.52 and 609.821 and perjury under section 609.48.
517.26    Subd. 4. Factors to be verified. (a) The agency shall verify the following at
517.27application:
517.28(1) identity of adults;
517.29(2) age, if necessary to determine eligibility;
517.30(3) immigration status;
517.31(4) income;
517.32(5) spousal support and child support payments made to persons outside the
517.33household;
517.34(6) vehicles;
517.35(7) checking and savings accounts;
518.1(8) inconsistent information, if related to eligibility;
518.2(9) residence; and
518.3(10) Social Security number.
518.4(b) Applicants who are qualified noncitizens and victims of domestic violence as
518.5defined under section 256J.08, subdivision 73, clause (7), are not required to verify the
518.6information in paragraph (a), clause (10). When a Social Security number is not provided
518.7to the agency for verification, this requirement is satisfied when each member of the
518.8assistance unit cooperates with the procedures for verification of Social Security numbers,
518.9issuance of duplicate cards, and issuance of new numbers which have been established
518.10jointly between the Social Security Administration and the commissioner.
518.11    Subd. 5. MFIP-only verifications. In addition to subdivision 4, the agency shall
518.12verify the following for programs under chapter 256J:
518.13(1) the presence of the minor child in the home, if questionable;
518.14(2) the relationship of a minor child to caregivers in the assistance unit;
518.15(3) pregnancy, if related to eligibility;
518.16(4) school attendance, if related to eligibility;
518.17(5) a claim of family violence, if used as a basis to qualify for the family violence
518.18waiver under chapter 256J; and
518.19(6) disability, if used as the basis for reducing the hourly participation requirements
518.20under section 256J.55, subdivision 1, or for the type of activity included in an employment
518.21plan under section 256J.521, subdivision 2.
518.22    Subd. 6. Personal property inconsistent information. If there is inconsistent
518.23information known to the agency when reporting personal property under section 256P.02,
518.24an agency must require the applicant or participant to document the information required
518.25under section 256P.02 or authorize the county agency to verify the information. The
518.26applicant or participant has the burden of providing documentary evidence to verify
518.27eligibility. The agency shall assist the applicant or participant in obtaining required
518.28documents when the applicant or participant is unable to do so.
518.29    Subd. 7. Documenting and verifying inconsistent information. When the
518.30agency verifies inconsistent information under subdivision 4, paragraph (a), clause (8);
518.31subdivision 6; or subdivision 8, clause (3), the reason for verifying the information must
518.32be documented in the financial case record.
518.33    Subd. 8. Recertification. The agency shall recertify eligibility in an annual
518.34interview with the participant. The interview may be conducted by telephone, by Internet
518.35telepresence, or face-to-face in the county office or in another location mutually agreed
518.36upon. A participant must be given the option of a telephone interview or Internet
519.1telepresence to recertify eligibility. During the interview, the agency shall verify the
519.2following:
519.3(1) income, unless excluded, including self-employment earnings;
519.4(2) assets when the value is within $200 of the asset limit; and
519.5(3) inconsistent information, if related to eligibility.
519.6    Subd. 9. MFIP-only recertification. In addition to subdivision 8, the agency shall
519.7verify the following for programs under chapter 256J:
519.8(1) the presence of the minor child in the home, if questionable; and
519.9(2) whether a single-caregiver household meets the requirements in section
519.10256J.575, subdivision 3.
519.11    Subd. 10. Participant's completion of form for recertification of eligibility. A
519.12participant must complete forms prescribed by the commissioner which are required
519.13for recertification of eligibility according to subdivisions 8 and 9. An agency must end
519.14benefits when the participant fails to submit the recertification form and verifications
519.15before the end of the certification period. If the participant submits the recertification
519.16form within 30 days of the termination of benefits, benefits must be reinstated and made
519.17available retroactively for the full benefit month.
519.18    Subd. 11. Participant's completion of household report form. (a) When a
519.19participant is required to complete a household report form, the following paragraphs apply.
519.20(b) If the agency receives an incomplete household report form, the agency must
519.21immediately return the incomplete form and clearly state what the participant must do for
519.22the form to be complete.
519.23(c) The automated eligibility system must send a notice of proposed termination of
519.24assistance to the participant if a complete household report form is not received by the
519.25agency. The automated notice must be mailed to the participant by approximately the 16th
519.26of the month. When a participant submits an incomplete form on or after the date a notice
519.27of proposed termination has been sent, the termination is valid unless the participant
519.28submits a complete form before the end of the month.
519.29(d) The submission of a household report form is considered to have continued the
519.30participant's application for assistance if a complete household report form is received
519.31within a calendar month after the month in which the form was due. Assistance shall be
519.32paid for the period beginning with the first day of that calendar month.
519.33(e) An agency must allow good cause exemptions for a participant required to
519.34complete a household report form when any of the following factors cause a participant to
519.35fail to submit a completed household report form before the end of the month in which
519.36the form is due:
520.1(1) an employer delays completion of employment verification;
520.2(2) the agency does not help a participant complete the household report form when
520.3the participant asks for help;
520.4(3) a participant does not receive a household report form due to a mistake on the
520.5part of the department or the agency or a reported change in address;
520.6(4) a participant is ill or physically or mentally incapacitated; or
520.7(5) some other circumstance occurs that a participant could not avoid with reasonable
520.8care which prevents the participant from providing a completed household report form
520.9before the end of the month in which the form is due.
520.10    Subd. 12. Contacting third parties. An agency must not request information
520.11about an applicant or participant that is not of public record from a source other than
520.12agencies, the department, or the United States Department of Health and Human Services
520.13without the applicant's or participant's prior written consent. An applicant's signature
520.14on an application form constitutes consent for contact with the sources specified on the
520.15application. An agency may use a single consent form to contact a group of similar
520.16sources, such as banks or insurance agencies, but the sources to be contacted must be
520.17identified by the agency prior to requesting an applicant's consent.
520.18    Subd. 13. Notice to undocumented persons; release of private data. Agencies,
520.19in consultation with the commissioner of human services, shall provide notification
520.20to undocumented persons regarding the release of personal data to the United States
520.21Citizenship and Immigration Services and develop protocols regarding the release or
520.22sharing of data about undocumented persons with the United States Citizenship and
520.23Immigration Services as required under sections 404, 411A, and 434 of the Personal
520.24Responsibility and Work Opportunity Reconciliation Act of 1996.
520.25    Subd. 14. Requirement to report to United States Citizenship and Immigration
520.26Services. The commissioner shall comply with the reporting requirements under United
520.27States Code, title 42, section 611a, and any federal regulation or guidance adopted under
520.28that law.
520.29    Subd. 15. Personal statement. The agency may accept a signed personal statement
520.30from the applicant or participant explaining the reasons that the documentation requested
520.31in subdivision 3 is unavailable as sufficient documentation at the time of application,
520.32recertification, or change related to eligibility only for the following factors:
520.33(1) a claim of family violence, if used as a basis to qualify for the family violence
520.34waiver;
520.35(2) relationship of a minor child to caregivers in the assistance unit;
521.1(3) citizenship status from a noncitizen who reports to be, or is identified as, a victim
521.2of severe forms of trafficking in persons, if the noncitizen reports that the noncitizen's
521.3immigration documents are being held by an individual or group of individuals against the
521.4noncitizen's will. The noncitizen must follow up with the Office of Refugee Resettlement
521.5(ORR) to pursue certification. If verification that certification is being pursued is
521.6not received within 30 days, the case must be closed and the agency shall pursue
521.7overpayments. The ORR documents certifying the noncitizen's status as a victim of severe
521.8forms of trafficking in persons, or the reason for the delay in processing, must be received
521.9within 90 days, or the case must be closed and the agency shall pursue overpayments; and
521.10(4) other documentation unavailable for reasons beyond the control of the applicant
521.11or participant. The applicant or participant must have made reasonable attempts to obtain
521.12the documents requested under subdivision 3.
521.13    Subd. 16. Excluded resources. Payments of funds made according to litigation and
521.14subsequent appropriation by the United States Congress to compensate members of Indian
521.15tribes for the taking of tribal lands by the federal government are excluded.
521.16EFFECTIVE DATE.This section is effective February 1, 2015.

521.17    Sec. 36. [256P.05] SELF-EMPLOYMENT EARNINGS.
521.18    Subdivision 1. Exempted programs. Participants who qualify for Minnesota
521.19supplemental aid under chapter 256D and for group residential housing under chapter 256I
521.20on the basis of eligibility for Supplemental Security Income are exempt from this section.
521.21    Subd. 2. Self-employment income determinations. An agency must determine
521.22self-employment income, which is either:
521.23(1) one-half of gross earnings from self-employment; or
521.24(2) taxable income as determined from an Internal Revenue Service tax form that
521.25has been filed with the Internal Revenue Service within the last year. A 12-month average
521.26using net taxable income shall be used to budget monthly income.
521.27    Subd. 3. Self-employment budgeting. (a) The self-employment budget period
521.28begins in the month of application or in the first month of self-employment. Applicants
521.29and participants must choose one of the methods described in subdivision 2 for
521.30determining self-employment earned income.
521.31(b) Applicants and participants who elect to use taxable income as described in
521.32subdivision 2, clause (2), to determine self-employment income must continue to use this
521.33method until recertification, unless there is an unforeseen significant change in gross
521.34income equaling a decline in gross income of the amount equal to or greater than the
522.1earned income disregard as defined in section 256P.03 from the income used to determine
522.2the benefit for the current month.
522.3(c) For applicants and participants who elect to use one-half of gross earnings as
522.4described in subdivision 2, clause (1), to determine self-employment income, earnings
522.5must be counted as income in the month received.
522.6EFFECTIVE DATE.This section is effective February 1, 2015.

522.7    Sec. 37. REPEALER.
522.8(a) Minnesota Statutes 2012, sections 256J.08, subdivisions 55a and 82a; and
522.9256J.24, subdivision 9, are repealed effective January 1, 2015.
522.10(b) Minnesota Statutes 2012, sections 256D.405, subdivisions 1a and 2; 256J.08,
522.11subdivision 42; and 256J.32, subdivisions 2, 3, 4, 5a, 6, 7, 7a, and 8, are repealed effective
522.12February 1, 2015.
522.13(c) Minnesota Statutes 2012, section 256D.06, subdivision 1b, is repealed effective
522.14October 1, 2015.
522.15(d) Minnesota Statutes 2013 Supplement, section 256J.08, subdivision 24, is
522.16repealed effective October 1, 2015.
522.17(e) Minnesota Statutes 2012, sections 256D.08, subdivision 2; and 256J.20, are
522.18repealed effective June 1, 2016.

522.19ARTICLE 29

522.20CHEMICAL AND MENTAL HEALTH

522.21    Section 1. Minnesota Statutes 2012, section 245.466, is amended by adding a
522.22subdivision to read:
522.23    Subd. 3a. Transition plan related to termination of contract. Counties must
522.24prepare a transition plan that provides for continuity of care in the event of contract
522.25termination with a community mental health center under section 245.715, or a community
522.26support services program under section 245.462, subdivision 6. The county shall provide
522.27at least 90 days' notice of the termination to the contracted agency and the commissioner
522.28of human services. The transition plan must provide information to clients on how to
522.29access medical records and how to transfer to other providers.

522.30    Sec. 2. Minnesota Statutes 2012, section 245A.04, is amended by adding a subdivision
522.31to read:
522.32    Subd. 15a. Plan for transfer of clients and records upon closure. (a) Except for
522.33child care providers, an applicant for initial or continuing licensure must submit a written
523.1plan indicating how the agency will provide for the transfer of clients and records for both
523.2open and closed cases if the agency closes. The plan must provide for managing private
523.3and confidential information concerning agency clients. The plan must also provide
523.4for notifying affected clients of the closure at least 25 days prior to closure, including
523.5information on how to access their medical records. A controlling individual of the agency
523.6must annually review and sign the plan.
523.7(b) Plans for the transfer of open cases and case records must specify arrangements
523.8the agency will make to transfer clients to another agency or county agency for
523.9continuation of services and to transfer the case record with the client.
523.10(c) Plans for the transfer of closed case records must be accompanied by a signed
523.11agreement or other documentation indicating that a county or a similarly licensed agency
523.12has agreed to accept and maintain the agency's closed case records and to provide
523.13follow-up services as necessary to affected clients.

523.14    Sec. 3. Minnesota Statutes 2012, section 253B.066, subdivision 1, is amended to read:
523.15    Subdivision 1. Treatment alternatives. If the court orders early intervention
523.16under section 253B.065, subdivision 5, the court may include in its order a variety of
523.17treatment alternatives including, but not limited to, day treatment, medication compliance
523.18monitoring, assertive community treatment, crisis assessment and stabilization, partial
523.19hospitalization, and short-term hospitalization not to exceed 21 days.
523.20If the court orders short-term hospitalization and the proposed patient will not go
523.21voluntarily, the court may direct a health officer, peace officer, or other person to take the
523.22person into custody and transport the person to the hospital.

523.23    Sec. 4. Minnesota Statutes 2012, section 254B.12, is amended to read:
523.24254B.12 RATE METHODOLOGY.
523.25    Subdivision 1. CCDTF rate methodology established. The commissioner shall
523.26establish a new rate methodology for the consolidated chemical dependency treatment
523.27fund. The new methodology must replace county-negotiated rates with a uniform
523.28statewide methodology that must include a graduated reimbursement scale based on the
523.29patients' level of acuity and complexity. At least biennially, the commissioner shall review
523.30the financial information provided by vendors to determine the need for rate adjustments.
523.31    Subd. 2. Payment methodology for highly specialized vendors. (a)
523.32Notwithstanding subdivision 1, the commissioner shall seek federal authority to develop
523.33separate payment methodologies for chemical dependency treatment services provided
523.34under the consolidated chemical dependency treatment fund: (1) by a state-operated
524.1vendor; or (2) for persons who have been civilly committed to the commissioner, present
524.2the most complex and difficult care needs, and are a potential threat to the community. A
524.3payment methodology under this subdivision is effective for services provided on or after
524.4October 1, 2015, or on or after the receipt of federal approval, whichever is later.
524.5(b) Before implementing an approved payment methodology under paragraph
524.6(a), the commissioner must also receive any necessary legislative approval of required
524.7changes to state law or funding.

524.8    Sec. 5. Minnesota Statutes 2013 Supplement, section 256B.06, subdivision 4, is
524.9amended to read:
524.10    Subd. 4. Citizenship requirements. (a) Eligibility for medical assistance is limited
524.11to citizens of the United States, qualified noncitizens as defined in this subdivision, and
524.12other persons residing lawfully in the United States. Citizens or nationals of the United
524.13States must cooperate in obtaining satisfactory documentary evidence of citizenship or
524.14nationality according to the requirements of the federal Deficit Reduction Act of 2005,
524.15Public Law 109-171.
524.16(b) "Qualified noncitizen" means a person who meets one of the following
524.17immigration criteria:
524.18(1) admitted for lawful permanent residence according to United States Code, title 8;
524.19(2) admitted to the United States as a refugee according to United States Code,
524.20title 8, section 1157;
524.21(3) granted asylum according to United States Code, title 8, section 1158;
524.22(4) granted withholding of deportation according to United States Code, title 8,
524.23section 1253(h);
524.24(5) paroled for a period of at least one year according to United States Code, title 8,
524.25section 1182(d)(5);
524.26(6) granted conditional entrant status according to United States Code, title 8,
524.27section 1153(a)(7);
524.28(7) determined to be a battered noncitizen by the United States Attorney General
524.29according to the Illegal Immigration Reform and Immigrant Responsibility Act of 1996,
524.30title V of the Omnibus Consolidated Appropriations Bill, Public Law 104-200;
524.31(8) is a child of a noncitizen determined to be a battered noncitizen by the United
524.32States Attorney General according to the Illegal Immigration Reform and Immigrant
524.33Responsibility Act of 1996, title V, of the Omnibus Consolidated Appropriations Bill,
524.34Public Law 104-200; or
525.1(9) determined to be a Cuban or Haitian entrant as defined in section 501(e) of Public
525.2Law 96-422, the Refugee Education Assistance Act of 1980.
525.3(c) All qualified noncitizens who were residing in the United States before August
525.422, 1996, who otherwise meet the eligibility requirements of this chapter, are eligible for
525.5medical assistance with federal financial participation.
525.6(d) Beginning December 1, 1996, qualified noncitizens who entered the United
525.7States on or after August 22, 1996, and who otherwise meet the eligibility requirements
525.8of this chapter are eligible for medical assistance with federal participation for five years
525.9if they meet one of the following criteria:
525.10(1) refugees admitted to the United States according to United States Code, title 8,
525.11section 1157;
525.12(2) persons granted asylum according to United States Code, title 8, section 1158;
525.13(3) persons granted withholding of deportation according to United States Code,
525.14title 8, section 1253(h);
525.15(4) veterans of the United States armed forces with an honorable discharge for
525.16a reason other than noncitizen status, their spouses and unmarried minor dependent
525.17children; or
525.18(5) persons on active duty in the United States armed forces, other than for training,
525.19their spouses and unmarried minor dependent children.
525.20 Beginning July 1, 2010, children and pregnant women who are noncitizens
525.21described in paragraph (b) or who are lawfully present in the United States as defined
525.22in Code of Federal Regulations, title 8, section 103.12, and who otherwise meet
525.23eligibility requirements of this chapter, are eligible for medical assistance with federal
525.24financial participation as provided by the federal Children's Health Insurance Program
525.25Reauthorization Act of 2009, Public Law 111-3.
525.26(e) Nonimmigrants who otherwise meet the eligibility requirements of this chapter
525.27are eligible for the benefits as provided in paragraphs (f) to (h). For purposes of this
525.28subdivision, a "nonimmigrant" is a person in one of the classes listed in United States
525.29Code, title 8, section 1101(a)(15).
525.30(f) Payment shall also be made for care and services that are furnished to noncitizens,
525.31regardless of immigration status, who otherwise meet the eligibility requirements of
525.32this chapter, if such care and services are necessary for the treatment of an emergency
525.33medical condition.
525.34(g) For purposes of this subdivision, the term "emergency medical condition" means
525.35a medical condition that meets the requirements of United States Code, title 42, section
525.361396b(v).
526.1(h)(1) Notwithstanding paragraph (g), services that are necessary for the treatment
526.2of an emergency medical condition are limited to the following:
526.3(i) services delivered in an emergency room or by an ambulance service licensed
526.4under chapter 144E that are directly related to the treatment of an emergency medical
526.5condition;
526.6(ii) services delivered in an inpatient hospital setting following admission from an
526.7emergency room or clinic for an acute emergency condition; and
526.8(iii) follow-up services that are directly related to the original service provided
526.9to treat the emergency medical condition and are covered by the global payment made
526.10to the provider.
526.11    (2) Services for the treatment of emergency medical conditions do not include:
526.12(i) services delivered in an emergency room or inpatient setting to treat a
526.13nonemergency condition;
526.14(ii) organ transplants, stem cell transplants, and related care;
526.15(iii) services for routine prenatal care;
526.16(iv) continuing care, including long-term care, nursing facility services, home health
526.17care, adult day care, day training, or supportive living services;
526.18(v) elective surgery;
526.19(vi) outpatient prescription drugs, unless the drugs are administered or dispensed as
526.20part of an emergency room visit;
526.21(vii) preventative health care and family planning services;
526.22(viii) rehabilitation services;
526.23(ix) physical, occupational, or speech therapy;
526.24(x) transportation services;
526.25(xi) case management;
526.26(xii) prosthetics, orthotics, durable medical equipment, or medical supplies;
526.27(xiii) dental services;
526.28(xiv) hospice care;
526.29(xv) audiology services and hearing aids;
526.30(xvi) podiatry services;
526.31(xvii) chiropractic services;
526.32(xviii) immunizations;
526.33(xix) vision services and eyeglasses;
526.34(xx) waiver services;
526.35(xxi) individualized education programs; or
526.36(xxii) chemical dependency treatment.
527.1(i) Pregnant noncitizens who are ineligible for federally funded medical assistance
527.2because of immigration status, are not covered by a group health plan or health insurance
527.3coverage according to Code of Federal Regulations, title 42, section 457.310, and who
527.4otherwise meet the eligibility requirements of this chapter, are eligible for medical
527.5assistance through the period of pregnancy, including labor and delivery, and 60 days
527.6postpartum, to the extent federal funds are available under title XXI of the Social Security
527.7Act, and the state children's health insurance program.
527.8(j) Beginning October 1, 2003, persons who are receiving care and rehabilitation
527.9services from a nonprofit center established to serve victims of torture and are otherwise
527.10ineligible for medical assistance under this chapter are eligible for medical assistance
527.11without federal financial participation. These individuals are eligible only for the period
527.12during which they are receiving services from the center. Individuals eligible under this
527.13paragraph shall not be required to participate in prepaid medical assistance. The nonprofit
527.14center referenced under this paragraph may establish itself as a provider of mental health
527.15targeted case management services through a county contract under section 256.0112,
527.16subdivision 6. If the nonprofit center is unable to secure a contract with a lead county in its
527.17service area, then, notwithstanding the requirements of section 256B.0625, subdivision
527.1820, the commissioner may negotiate a contract with the nonprofit center for provision of
527.19mental health targeted case management services. When serving clients who are not the
527.20financial responsibility of their contracted lead county, the nonprofit center must gain the
527.21concurrence of the county of financial responsibility prior to providing mental health
527.22targeted case management services for those clients.
527.23(k) Notwithstanding paragraph (h), clause (2), the following services are covered as
527.24emergency medical conditions under paragraph (f) except where coverage is prohibited
527.25under federal law:
527.26(1) dialysis services provided in a hospital or freestanding dialysis facility; and
527.27(2) surgery and the administration of chemotherapy, radiation, and related services
527.28necessary to treat cancer if the recipient has a cancer diagnosis that is not in remission
527.29and requires surgery, chemotherapy, or radiation treatment.
527.30(l) Effective July 1, 2013, recipients of emergency medical assistance under this
527.31subdivision are eligible for coverage of the elderly waiver services provided under section
527.32256B.0915 , and coverage of rehabilitative services provided in a nursing facility. The
527.33age limit for elderly waiver services does not apply. In order to qualify for coverage, a
527.34recipient of emergency medical assistance is subject to the assessment and reassessment
527.35requirements of section 256B.0911. Initial and continued enrollment under this paragraph
527.36is subject to the limits of available funding.

528.1    Sec. 6. Minnesota Statutes 2012, section 256B.0615, subdivision 3, is amended to read:
528.2    Subd. 3. Eligibility. Peer support services may be made available to consumers of
528.3(1) the intensive rehabilitative mental health services under section 256B.0622; (2) adult
528.4rehabilitative mental health services under section 256B.0623; and (3) crisis stabilization
528.5and mental health mobile crisis intervention services under section 256B.0624.

528.6    Sec. 7. Minnesota Statutes 2012, section 256B.0624, subdivision 2, is amended to read:
528.7    Subd. 2. Definitions. For purposes of this section, the following terms have the
528.8meanings given them.
528.9(a) "Mental health crisis" is an adult behavioral, emotional, or psychiatric situation
528.10which, but for the provision of crisis response services, would likely result in significantly
528.11reduced levels of functioning in primary activities of daily living, or in an emergency
528.12situation, or in the placement of the recipient in a more restrictive setting, including, but
528.13not limited to, inpatient hospitalization.
528.14(b) "Mental health emergency" is an adult behavioral, emotional, or psychiatric
528.15situation which causes an immediate need for mental health services and is consistent
528.16with section 62Q.55.
528.17A mental health crisis or emergency is determined for medical assistance service
528.18reimbursement by a physician, a mental health professional, or crisis mental health
528.19practitioner with input from the recipient whenever possible.
528.20(c) "Mental health crisis assessment" means an immediate face-to-face assessment
528.21by a physician, a mental health professional, or mental health practitioner under the
528.22clinical supervision of a mental health professional, following a screening that suggests
528.23that the adult may be experiencing a mental health crisis or mental health emergency
528.24situation. It includes, when feasible, assessing whether the person might be willing to
528.25voluntarily accept treatment, determining whether the person has an advance directive,
528.26and obtaining information and history from involved family members or caretakers.
528.27(d) "Mental health mobile crisis intervention services" means face-to-face,
528.28short-term intensive mental health services initiated during a mental health crisis or mental
528.29health emergency to help the recipient cope with immediate stressors, identify and utilize
528.30available resources and strengths, engage in voluntary treatment, and begin to return to the
528.31recipient's baseline level of functioning. The services, including screening and treatment
528.32plan recommendations, must be culturally and linguistically appropriate.
528.33(1) This service is provided on site by a mobile crisis intervention team outside of
528.34an inpatient hospital setting. Mental health mobile crisis intervention services must be
528.35available 24 hours a day, seven days a week.
529.1(2) The initial screening must consider other available services to determine which
529.2service intervention would best address the recipient's needs and circumstances.
529.3(3) The mobile crisis intervention team must be available to meet promptly
529.4face-to-face with a person in mental health crisis or emergency in a community setting or
529.5hospital emergency room.
529.6(4) The intervention must consist of a mental health crisis assessment and a crisis
529.7treatment plan.
529.8(5) The team must be available to individuals who are experiencing a co-occurring
529.9substance use disorder, who do not need the level of care provided in a detoxification
529.10facility.
529.11(5) (6) The treatment plan must include recommendations for any needed crisis
529.12stabilization services for the recipient, including engagement in treatment planning and
529.13family psychoeducation.
529.14(e) "Mental health crisis stabilization services" means individualized mental
529.15health services provided to a recipient following crisis intervention services which are
529.16designed to restore the recipient to the recipient's prior functional level. Mental health
529.17crisis stabilization services may be provided in the recipient's home, the home of a family
529.18member or friend of the recipient, another community setting, or a short-term supervised,
529.19licensed residential program. Mental health crisis stabilization does not include partial
529.20hospitalization or day treatment. Mental health crisis stabilization services includes
529.21family psychoeducation.

529.22    Sec. 8. Minnesota Statutes 2012, section 256B.0624, subdivision 5, is amended to read:
529.23    Subd. 5. Mobile crisis intervention staff qualifications. For provision of adult
529.24mental health mobile crisis intervention services, a mobile crisis intervention team is
529.25comprised of at least two mental health professionals as defined in section 245.462,
529.26subdivision 18 , clauses (1) to (6), or a combination of at least one mental health
529.27professional and one mental health practitioner as defined in section 245.462, subdivision
529.2817 , with the required mental health crisis training and under the clinical supervision of
529.29a mental health professional on the team. The team must have at least two people with
529.30at least one member providing on-site crisis intervention services when needed. Team
529.31members must be experienced in mental health assessment, crisis intervention techniques,
529.32treatment engagement strategies, working with families, and clinical decision-making
529.33under emergency conditions and have knowledge of local services and resources.
529.34The team must recommend and coordinate the team's services with appropriate local
530.1resources such as the county social services agency, mental health services, and local
530.2law enforcement when necessary.

530.3    Sec. 9. Minnesota Statutes 2012, section 256B.0624, subdivision 6, is amended to read:
530.4    Subd. 6. Crisis assessment and mobile intervention treatment planning. (a)
530.5Prior to initiating mobile crisis intervention services, a screening of the potential crisis
530.6situation must be conducted. The screening may use the resources of crisis assistance
530.7and emergency services as defined in sections 245.462, subdivision 6, and 245.469,
530.8subdivisions 1 and 2. The screening must gather information, determine whether a crisis
530.9situation exists, identify parties involved, and determine an appropriate response.
530.10(b) If a crisis exists, a crisis assessment must be completed. A crisis assessment
530.11evaluates any immediate needs for which emergency services are needed and, as time
530.12permits, the recipient's current life situation, sources of stress, mental health problems
530.13and symptoms, strengths, cultural considerations, support network, vulnerabilities, current
530.14functioning, and the recipient's preferences as communicated directly by the recipient,
530.15or as communicated in a health care directive as described in chapters 145C and 253B,
530.16the treatment plan described under paragraph (d), a crisis prevention plan, or a wellness
530.17recovery action plan.
530.18(c) If the crisis assessment determines mobile crisis intervention services are needed,
530.19the intervention services must be provided promptly. As opportunity presents during the
530.20intervention, at least two members of the mobile crisis intervention team must confer
530.21directly or by telephone about the assessment, treatment plan, and actions taken and
530.22needed. At least one of the team members must be on site providing crisis intervention
530.23services. If providing on-site crisis intervention services, a mental health practitioner must
530.24seek clinical supervision as required in subdivision 9.
530.25(d) The mobile crisis intervention team must develop an initial, brief crisis treatment
530.26plan as soon as appropriate but no later than 24 hours after the initial face-to-face
530.27intervention. The plan must address the needs and problems noted in the crisis assessment
530.28and include measurable short-term goals, cultural considerations, and frequency and type
530.29of services to be provided to achieve the goals and reduce or eliminate the crisis. The
530.30treatment plan must be updated as needed to reflect current goals and services.
530.31(e) The team must document which short-term goals have been met and when no
530.32further crisis intervention services are required.
530.33(f) If the recipient's crisis is stabilized, but the recipient needs a referral to other
530.34services, the team must provide referrals to these services. If the recipient has a case
530.35manager, planning for other services must be coordinated with the case manager. If the
531.1recipient is unable to follow up on the referral, the team must link the recipient to the
531.2service and follow up to ensure the recipient is receiving the service.
531.3(g) If the recipient's crisis is stabilized and the recipient does not have an advance
531.4directive, the case manager or crisis team shall offer to work with the recipient to develop
531.5one.

531.6    Sec. 10. Minnesota Statutes 2012, section 256B.0624, subdivision 10, is amended to
531.7read:
531.8    Subd. 10. Recipient file. Providers of mobile crisis intervention or crisis stabilization
531.9services must maintain a file for each recipient containing the following information:
531.10(1) individual crisis treatment plans signed by the recipient, mental health
531.11professional, and mental health practitioner who developed the crisis treatment plan, or
531.12if the recipient refused to sign the plan, the date and reason stated by the recipient as to
531.13why the recipient would not sign the plan;
531.14(2) signed release forms;
531.15(3) recipient health information and current medications;
531.16(4) emergency contacts for the recipient;
531.17(5) case records which document the date of service, place of service delivery,
531.18signature of the person providing the service, and the nature, extent, and units of service.
531.19Direct or telephone contact with the recipient's family or others should be documented;
531.20(6) required clinical supervision by mental health professionals;
531.21(7) summary of the recipient's case reviews by staff; and
531.22(8) any written information by the recipient that the recipient wants in the file; and
531.23(9) an advance directive, if there is one available.
531.24Documentation in the file must comply with all requirements of the commissioner.

531.25    Sec. 11. Minnesota Statutes 2012, section 256I.05, subdivision 2, is amended to read:
531.26    Subd. 2. Monthly rates; exemptions. The maximum group residential housing rate
531.27does not apply This subdivision applies to a residence that on August 1, 1984, was licensed
531.28by the commissioner of health only as a boarding care home, certified by the commissioner
531.29of health as an intermediate care facility, and licensed by the commissioner of human
531.30services under Minnesota Rules, parts 9520.0500 to 9520.0690. Notwithstanding the
531.31provisions of subdivision 1c, the rate paid to a facility reimbursed under this subdivision
531.32shall be determined under section 256B.431, or under section 256B.434 if the facility is
531.33accepted by the commissioner for participation in the alternative payment demonstration
531.34project. The rate paid to this facility shall also include adjustments to the group residential
532.1housing rate according to subdivision 1, and any adjustments applicable to supplemental
532.2service rates statewide.

532.3    Sec. 12. DIRECTION TO COMMISSIONER; REPORT ON PROGRAM
532.4WAITING LISTS.
532.5In preparing background materials for the 2016-2017 biennium, the commissioner
532.6of human services shall prepare a listing of all of the waiting lists for services that the
532.7department oversees and directs. The listing shall identify the number of persons on those
532.8waiting lists as of October 1, 2014, and an estimate of the cost of serving them based on
532.9current average costs. The commissioner is encouraged to engage postsecondary students
532.10in the assembly, analysis, and reporting of this information. The information shall be
532.11provided to the governor, the chairs and ranking minority members of the legislative
532.12committees with jurisdiction over health and human services policy and finance, and the
532.13Legislative Reference Library in electronic form by December 1, 2014.

532.14    Sec. 13. MENTALLY ILL OFFENDERS ARRESTED OR SUBJECT TO
532.15ARREST; WORKING GROUP.
532.16    Subdivision 1. Working group established; study and draft legislation required.
532.17The commissioner of human services may convene a working group to address issues
532.18related to offenders with mental illness who are arrested or subject to arrest. The working
532.19group shall consider the special needs of these offenders and determine how best to
532.20provide for these needs. Specifically, the group shall consider the efficacy of a facility
532.21that would serve as a central point for accepting, assessing, and addressing the needs of
532.22offenders with mental illness brought in by law enforcement as an alternative to arrest or
532.23following arrest. The facility would consolidate and coordinate existing resources as well
532.24as offer new resources that would provide a continuum of care addressing the immediate,
532.25short-term, and long-term needs of these offenders. The facility would do the following for
532.26these offenders: perform timely, credible, and useful mental health assessments; identify
532.27community placement opportunities; coordinate community care; make recommendations
532.28concerning pretrial release when appropriate; and, in some cases, provide direct services
532.29to offenders at the facility or in nearby jails. The working group shall establish criteria
532.30to determine which offenders may be admitted to the facility. The facility would be
532.31located in the metropolitan region and serve the needs of nearby counties. The facility
532.32would represent a partnership between the state, local units of government, and the private
532.33sector. In addition, the working group may consider how similar facilities could function
532.34in outstate areas. When studying this issue, the working group shall examine what other
533.1states have done in this area to determine what programs have been successful and use
533.2those programs as models in developing the program in Minnesota. The working group
533.3may also study and make recommendations on other ways to improve the process for
533.4addressing and assisting these offenders. The commissioner shall enter into an agreement
533.5with NAMI Minnesota to carry out the work of the working group.
533.6    Subd. 2. Membership. The commissioner shall ensure that the working group
533.7has expertise and a broad range of interests represented, including, but not limited to:
533.8prosecutors; law enforcement, including jail staff; correctional officials; community
533.9corrections staff; probation officials; criminal defense attorneys; judges; county and city
533.10officials; mental health advocates; mental health professionals; and hospital and health
533.11care officials.
533.12    Subd. 3. Administrative issues. (a) The commissioner shall convene the first
533.13meeting of the working group by September 1, 2014. NAMI Minnesota shall provide
533.14meeting space and administrative support to the working group. The working group shall
533.15select a chair from among its members.
533.16(b) The commissioner may solicit in-kind support from work group member
533.17agencies to accomplish its assigned duties.
533.18    Subd. 4. Report required. By January 1, 2015, the working group shall submit a
533.19report to the chairs and ranking minority members of the senate and house of representatives
533.20committees and divisions having jurisdiction over human services and public safety. The
533.21report must summarize the working group's activities and include its recommendations
533.22and draft legislation. The recommendations must be specific and include estimates of the
533.23costs involved in implementing the recommendations, including the funding sources that
533.24might be used to pay for it. The working group shall explore potential funding sources
533.25at the federal, local, and private levels, and provide this information in the report. In
533.26addition, the report must include draft legislation to implement the recommendations.
533.27EFFECTIVE DATE.This section is effective the day following final enactment.

533.28    Sec. 14. DETOXIFICATION SERVICES PLAN.
533.29The commissioner of human services shall develop a plan to include detoxification
533.30services as a covered medical assistance benefit and present the plan to the members of the
533.31legislative committees having jurisdiction over health and human services provisions and
533.32funding by December 15, 2014.

534.1    Sec. 15. REPORT ON RATE SETTING METHODOLOGY FOR MENTAL
534.2HEALTH SERVICES.
534.3The commissioner of human services shall provide a report to the chairs of the
534.4Health and Human Services Finance Division by February 1, 2015, that assesses the
534.5current rate setting methodology for intensive residential treatment services (IRTS), adult
534.6crisis, and assertive community treatment (ACT). The report will include an assessment
534.7of alternative payment structures consistent with the intent and direction of the federal
534.8centers for Medicare and Medicaid services which could provide adequate reimbursement
534.9to sustain community-based mental health services regardless of geographic location.
534.10Stakeholders will be included in the development of the report and the report will also
534.11include concerns regarding payment rates for other mental health services that may
534.12require further analysis in the future.

534.13ARTICLE 30

534.14HEALTH AND HUMAN SERVICES APPROPRIATIONS

534.15

Section 1. HEALTH AND HUMAN SERVICES APPROPRIATIONS.

534.16The sums shown in the columns marked "Appropriations" are added to or, if shown
534.17in parentheses, subtracted from the appropriations in Laws 2013, chapter 108, articles 14
534.18and 15, to the agencies and for the purposes specified in this article. The appropriations
534.19are from the general fund and are available for the fiscal years indicated for each purpose.
534.20The figures "2014" and "2015" used in this article mean that the addition to or subtraction
534.21from the appropriation listed under them is available for the fiscal year ending June 30,
534.222014, or June 30, 2015, respectively. Supplemental appropriations and reductions to
534.23appropriations for the fiscal year ending June 30, 2014, are effective the day following
534.24final enactment unless a different effective date is explicit.

534.25				APPROPRIATIONS
534.26				Available for the Year
534.27				Ending June 30
534.28					2014		2015

534.29 534.30

Sec. 2. COMMISSIONER OF HUMAN SERVICES

534.31

Subdivision 1.Total Appropriation

(2,120,000)

105,844,000

534.32	Appropriations by Fund
534.33	General	(2,120,000)	104,944,000
534.34	Federal TANF	-0-	900,000

535.1The appropriation modifications for
535.2each purpose are shown in the following
535.3subdivisions.

535.4

Subd. 2.Central Office Operations

535.5

(a) Operations

-0-

99,000

535.6Base adjustment. The general fund base is
535.7increased by $112,000 in fiscal year 2016
535.8and decreased by $45,000 in fiscal year 2017.

535.9

(b) Health Care

-0-

113,000

535.10Base adjustment. The general fund base is
535.11increased by $112,000 in fiscal years 2016
535.12and 2017.

535.13

(c) Continuing Care

-0-

2,668,000

535.14Autism resource Web site. $769,000 is for
535.15the development of an interagency Web site
535.16with autism-related resources for children
535.17and adults with autism spectrum disorder,
535.18their family members, and other interested
535.19parties. The commissioners of education,
535.20employment and economic development,
535.21and health are requested to provide technical
535.22assistance to the commissioner in the
535.23development of the Web site in order to
535.24consolidate autism-related resources that are
535.25under the jurisdiction of affected agencies,
535.26and any other related resources of which
535.27the agencies are aware, in an effort to
535.28provide a comprehensive intra-agency Web
535.29site for interested users. This is a onetime
535.30appropriation and expires on June 30, 2017.
535.31Base adjustment. The general fund base is
535.32decreased by $2,220,000 in fiscal year 2016
535.33and $2,362,000 in fiscal year 2017.

536.1

(d) Chemical and Mental Health

-0-

115,000

536.2Base adjustment. The general fund base is
536.3decreased by $115,000 in fiscal years 2016
536.4and 2017.

536.5

Subd. 3.Forecasted Programs

536.6

(a) MFIP/DWP

536.7	Appropriations by Fund
536.8	General	-0-	122,000
536.9	Federal TANF	-0-	548,000

536.10

(b) General Assistance

-0-

21,000

536.11

(c) Group Residential Housing

-0-

681,000

536.12

(d) Medical Assistance

(2,930,000)

77,863,000

536.13Critical access nursing facilities.
536.14 $1,500,000 in fiscal year 2015 is for critical
536.15access nursing facilities under Minnesota
536.16Statutes, section 256.441, subdivision 63.
536.17Base adjustment. The health care
536.18access fund base for medical assistance
536.19is $221,035,000 in fiscal year 2016 and
536.20$221,035,000 in fiscal year 2017.

536.21

(e) Alternative Care

-0-

965,000

536.22

Subd. 4.Grant Programs

536.23

(a) Children's Services Grants

-0-

(3,000)

536.24Base adjustment. The general fund base is
536.25increased by $9,000 in fiscal year 2017.

536.26

(b) Child and Economic Support Grants

-0-

1,526,000

536.27Stearns County. $26,000 in fiscal year 2015
536.28is for a grant to Stearns County to provide
536.29administrative funding to support a group
536.30residential housing services provider serving
537.1veterans in Stearns County. This is a onetime
537.2appropriation.
537.3Safe harbor. $500,000 in fiscal year 2015
537.4from the general fund is for housing and
537.5supportive services for sexually exploited
537.6youth.
537.7Homeless youth. $1,000,000 in fiscal year
537.82015 is for purposes of Minnesota Statutes,
537.9section 256K.45.
537.10Base adjustment. The general fund base is
537.11decreased by $26,000 in fiscal years 2016
537.12and 2017.

537.13

(c) Aging and Adult Services Grants

(15,000)

1,212,000

537.14Senior nutrition. $250,000 in fiscal year
537.152015 from the general fund is for congregate
537.16dining services under Minnesota Statutes,
537.17section 256.9752. This is a onetime
537.18appropriation.
537.19Base adjustment. The general fund base is
537.20decreased by $5,000 in fiscal year 2016 and
537.21is increased by $8,000 in fiscal year 2017.

537.22

(d) Deaf and Hard-of-Hearing Grants

-0-

81,000

537.23Base adjustment. The general fund base is
537.24increased by $9,000 in fiscal years 2016 and
537.252017.

537.26

(e) Disabilities Grants

-0-

1,548,000

537.27Autism respite services development.
537.28$2,500,000 in fiscal year 2015 is to establish
537.29service development grants for in-home
537.30and out-of-home respite for children and
537.31adults with autism spectrum disorder. In
537.32developing out-of-home respite services,
537.33the commissioner may authorize exceptions
538.1to the licensing moratorium in Minnesota
538.2Statutes, section 245A.03, subdivision 7,
538.3of up to eight beds. This is a onetime
538.4appropriation and expires on June 30, 2017.
538.5HIV grants. The general fund appropriation
538.6for the HIV drug and insurance grant
538.7program is reduced by $2,219,000 in fiscal
538.8year 2015. This reduction is onetime and
538.9must not be applied to the base.
538.10Services for individuals living with
538.11HIV/AIDS. The commissioner shall work
538.12with community stakeholders, including
538.13the HIV Planning Council, to identify
538.14gaps in services for individuals living with
538.15HIV/AIDS and, within allowable state and
538.16federal law and guidelines, develop and
538.17implement a plan to use funds in the ADAP
538.18drug rebates special revenue account to
538.19enhance existing service levels and establish
538.20an amount to retain in the account to
538.21ensure long-term stability of services. The
538.22commissioner shall report the results of this
538.23work with stakeholders and the progress
538.24on implementing the plan to the chairs and
538.25ranking minority members of the senate
538.26health and human services finance division
538.27and the house of representatives health
538.28and human services finance committee by
538.29December 15, 2014.
538.30Base adjustment. The general fund base is
538.31increased by $11,000 in fiscal year 2017.

538.32

(f) Adult Mental Health Grants

-0-

-0-

538.33Intensive community rehabilitation
538.34services. The commissioner shall continue
538.35to fund intensive community rehabilitation
539.1services with existing funds through fiscal
539.2year 2015.

539.3

(g) CD Treatment Support Grants

(175,000)

(175,000)

539.4

Subd. 5.State-Operated Services

539.5

(a) SOS Mental Health

-0-

8,111,000

539.6Online training program. $35,000 in
539.7fiscal year 2015 is to develop an online
539.8training program to promote better clarity
539.9and interpretation of the civil commitment
539.10laws for interested individuals and personnel,
539.11specifically county and hospital staff and
539.12mental health providers, to understand,
539.13clarify, and interpret the Civil Commitment
539.14Act under Minnesota Statutes, chapter
539.15253B, as it pertains to persons with mental
539.16illnesses. The training must be developed
539.17in collaboration with the ombudsman for
539.18mental health and developmental disabilities,
539.19Minnesota County Attorneys Association,
539.20National Alliance on Mental Illness of
539.21Minnesota, State Advisory Council on Mental
539.22Health, Mental Health Consumer/Survivor
539.23Network of Minnesota, Mental Health
539.24Association, Minnesota Psychiatric Society,
539.25Hennepin Commitment Defense Panel,
539.26Minnesota Disability Law Center, Minnesota
539.27Association of Community Mental Health
539.28Programs, Minnesota Hospital Association,
539.29and Minnesota Board of Public Defense.
539.30This is a onetime appropriation.
539.31Base adjustment. The general fund base is
539.32increased by $178,000 in fiscal years 2016
539.33and 2017.

539.34

(b) SOS Enterprise Services

1,000,000

1,000,000

540.1Community Addiction Recovery
540.2Enterprise (C.A.R.E.) deficiency funding.
540.3(1) Notwithstanding Minnesota Statutes,
540.4section 254B.06, subdivision 1, the
540.5commissioner shall transfer up to $4,000,000,
540.6if available, in each of fiscal years 2014 and
540.72015 only from the consolidated chemical
540.8dependency treatment fund administrative
540.9account in the special revenue fund to the
540.10enterprise fund for the Community Addiction
540.11Recovery Enterprise.
540.12(2) $1,000,000 in fiscal year 2014 and
540.13$1,000,000 in fiscal year 2015 from the
540.14general fund is for the C.A.R.E. program.
540.15The commissioner must transfer $1,000,000
540.16in fiscal year 2014 and $1,000,000 in fiscal
540.17year 2015 to the enterprise fund for the
540.18Community Addiction Recovery Enterprise.
540.19This is a onetime appropriation.
540.20(3) Clauses (1) and (2) are effective the day
540.21following final enactment.
540.22Base adjustment. The general fund base is
540.23reduced by $1,000,000 in fiscal years 2016
540.24and 2017.

540.25

(c) SOS Minnesota Security Hospital

-0-

4,820,000

540.26

Subd. 6.Sex Offender Program

-0-

4,177,000

540.27Court-ordered experts. $3,000,000 in
540.28fiscal year 2015 is for the commissioner to
540.29comply with the United States District Court
540.30order of February 20, 2014, in the matter of
540.31Karsjens et al. v. Jesson et al. For purposes
540.32of Minnesota Statutes, section 246B.10,
540.33activities funded by this appropriation are
540.34not considered part of the cost of care. This
541.1appropriation is onetime and is available
541.2until June 30, 2017. This paragraph expires
541.3June 30, 2017.
541.4Base adjustment. The general fund base is
541.5decreased by $4,177,000 in fiscal years 2016
541.6and 2017.

541.7

Subd. 7.Technical Activities

-0-

352,000

541.8This appropriation is from the federal TANF
541.9fund.
541.10Base adjustment. The federal TANF fund
541.11base is increased by $684,000 in fiscal year
541.122016 and $1,207,000 in fiscal year 2017.

541.13

Subd. 8.Transfer

541.14Supplemental security interim assistance
541.15reimbursement funds. $642,000 in fiscal
541.16year 2015 and $637,000 in fiscal year 2016
541.17of uncommitted revenue available to the
541.18commissioner of human services under
541.19Minnesota Statutes, section 256D.06, must
541.20be transferred to and deposited into the
541.21general fund. This paragraph expires on June
541.2230, 2016.

541.23

Sec. 3. COMMISSIONER OF HEALTH.

541.24

Subdivision 1.Total Appropriation

$

767,000

$

3,418,000

541.25	Appropriations by Fund
541.26		2014	2015
541.27	General	950,000	3,611,000
541.28 541.29	State Government Special Revenue	817,000	807,000
541.30	Health Care Access	(1,000,000)	(1,000,000)

541.31

Subd. 2.Health Improvement

(25,000)

1,526,000

541.32Health equity grants. $501,000 in fiscal year
541.332015 is for grants under Minnesota Statutes,
542.1section 145.928, subdivision 8, except that
542.2grants are not limited to the conditions listed
542.3in Minnesota Statutes, section 145.928,
542.4subdivision 8, paragraph (a), or for other
542.5activities to address health equity issues,
542.6with an emphasis on refugee populations. A
542.7portion of the funds must be used to address
542.8health equity issues facing East African
542.9communities, conduct a conference focused
542.10on mental health in immigrant and refugee
542.11communities, and fund women's reproductive
542.12health and dementia outreach projects. This
542.13is a onetime appropriation and is available
542.14until expended. The commissioner may use
542.15up to $10,000 to administer these grants.
542.16Safe harbor. $1,000,000 of the general fund
542.17appropriation is for grants for comprehensive
542.18services, including trauma-informed,
542.19culturally specific services, for youth who are
542.20sexually exploited. The commissioner may
542.21use up to $100,000 for the administration of
542.22these grants.
542.23Base level adjustment. The general fund
542.24base is decreased by $551,000 in fiscal year
542.252016 and $501,000 in fiscal year 2017.

542.26

Subd. 3.Policy Quality and Compliance

542.27	Appropriations by Fund
542.28	General	-0-	1,785,000
542.29 542.30	State Government Special Revenue	-0-	159,000
542.31	Health Care Access	(1,000,000)	(1,000,000)

542.32Legislative health care workforce
542.33commission. $75,000 in fiscal year 2015 is
542.34for the health care workforce commission
542.35in article 23, section 9. This is a onetime
543.1appropriation and expires on June 30, 2017.
543.2The commissioner may transfer part of this
543.3appropriation to the Legislative Coordinating
543.4Commission to provide per diem and expense
543.5reimbursements to health care workforce
543.6commission members.
543.7Spoken language health care interpreters.
543.8$81,000 in fiscal year 2015 from the
543.9state government special revenue fund is
543.10to develop a proposal to promote health
543.11equity and quality health outcomes through
543.12changes to laws governing spoken language
543.13health care interpreters. The commissioner
543.14shall consult with a broad range of spoken
543.15language health care interpreters, including
543.16independent contractors and those who
543.17speak rare languages, organizations that
543.18employ these interpreters, organizations
543.19that pay for interpreter services, health
543.20care providers who use interpreters,
543.21clients who use interpreters, community
543.22organizations serving non-English-speaking
543.23populations, and other relevant organizations
543.24including but not limited to Interpreter
543.25Agencies of Minnesota and the Interpreters
543.26Stakeholder Group. The commissioner shall
543.27draft legislation and submit a report that
543.28documents the process followed and the
543.29rationale for the recommendations to the
543.30committees with jurisdiction over health
543.31and human services by January 15, 2015.
543.32In drafting the legislation and report, the
543.33commissioner must consider input received
543.34from individuals and organizations consulted
543.35and must address issues related to:
544.1(1) qualifications for spoken language health
544.2care interpreters that assure quality service
544.3to health care providers and their patients,
544.4considering differences for common and rare
544.5languages;
544.6(2) methods to support the education and
544.7skills development of spoken language health
544.8care interpreters serving Minnesotans;
544.9(3) the role of an advisory council in
544.10maintaining a quality system for spoken
544.11language health care interpreting in
544.12Minnesota;
544.13(4) management of complaints regarding
544.14spoken language health care interpreters,
544.15including investigation and enforcement
544.16actions;
544.17(5) an appropriate structure for oversight of
544.18spoken language health care interpreters,
544.19including administrative and technology
544.20requirements; and
544.21(6) other issues that address qualifications,
544.22quality, access, and affordability of spoken
544.23language interpreter services.
544.24This is a onetime appropriation.
544.25Health care grants for uninsured
544.26individuals. (a) $100,000 of the general
544.27fund appropriation in fiscal year 2015 is for
544.28dental provider grants in Minnesota Statutes,
544.29section 145.929, subdivision 1. The base for
544.30this appropriation is $50,000 in fiscal years
544.312016 and 2017.
544.32(b) $300,000 of the general fund
544.33appropriation in fiscal year 2015 is for
544.34community mental health program grants
545.1in Minnesota Statutes, section 145.929,
545.2subdivision 2. The base for this appropriation
545.3is $175,000 in fiscal years 2016 and 2017.
545.4(c) $1,000,000 of the general fund
545.5appropriation in fiscal year 2015 is for the
545.6emergency medical assistance outlier grant
545.7program in Minnesota Statutes, section
545.8145.929, subdivision 3. The base for this
545.9appropriation is $600,000 in fiscal years
545.102016 and 2017.
545.11(d) $300,000 of the general fund
545.12appropriation in fiscal year 2015 is for
545.13community health center grants under
545.14Minnesota Statutes, section 145.9269. A
545.15community health center that receives a
545.16grant from this appropriation is not eligible
545.17for a grant under paragraph (b). The base for
545.18this appropriation is $175,000 in fiscal years
545.192016 and 2017.
545.20(e) The commissioner may use up to $20,000
545.21of the appropriations for health care grants
545.22for uninsured individuals in fiscal year 2015
545.23and up to $10,000 in fiscal years 2016 and
545.242017 for grant administration.
545.25Base level adjustment. The general fund
545.26base is decreased by $775,000 in fiscal years
545.272016 and 2017. The state government special
545.28revenue fund base is decreased by $77,000 in
545.29fiscal years 2016 and 2017.

545.30

Subd. 4.Health Protection

545.31	Appropriations by Fund
545.32	General	0	300,000
545.33 545.34	State Government Special Revenue	817,000	648,000

546.1Healthy housing grants. (a) $60,000 of
546.2the general fund appropriation in fiscal year
546.32015 is for lead poisoning prevention and
546.4healthy homes activities under Minnesota
546.5Statutes, sections 144.9501 to 144.9513.
546.6(b) $240,000 of the general fund
546.7appropriation in fiscal year 2015 is for
546.8healthy housing implementation grants
546.9under Minnesota Statutes, section 144.9513,
546.10subdivision 3. The commissioner is
546.11encouraged to geographically balance the
546.12distribution of the grant funding between
546.13the seven-county metropolitan area and
546.14nonmetropolitan communities.

546.15

Subd. 5.Administrative Support Services

975,000

-0-

546.16Lawsuit settlement. In fiscal year 2014,
546.17$975,000 from the general fund is a onetime
546.18appropriation for the cost of settling the
546.19lawsuit Bearder v. State.

546.20

Sec. 4. BOARD OF NURSING.

$

-0-

$

75,000

546.21Chronic pain therapies. $75,000 in
546.22fiscal year 2015 from the state government
546.23special revenue fund is transferred to the
546.24commissioner of health to gather data and
546.25complete a report on the provision of chronic
546.26pain therapies by physicians, doctors of
546.27osteopathy, and certified registered nurse
546.28anesthetists.

546.29 546.30 546.31

Sec. 5. OMBUDSMAN FOR MENTAL HEALTH AND DEVELOPMENTAL DISABILITIES.

$

-0-

$

150,000

546.32    Sec. 6. Laws 2013, chapter 1, section 6, as amended by Laws 2013, chapter 108,
546.33article 6, section 32, is amended to read:
547.1    Sec. 6. TRANSFER.
547.2(a) The commissioner of management and budget shall transfer from the health care
547.3access fund to the general fund up to $21,319,000 in fiscal year 2014; up to $42,314,000
547.4in fiscal year 2015; up to $56,147,000 in fiscal year 2016; and up to $64,683,000 in fiscal
547.5year 2017.
547.6(b) The commissioner of human services shall determine the difference between the
547.7actual or forecasted cost to the medical assistance program of adding 19- and 20-year-olds
547.8and parents and relative caretaker populations with income between 100 and 138 percent of
547.9the federal poverty guidelines and the cost of adding those populations that was estimated
547.10during the 2013 legislative session based on the data from the February 2013 forecast.
547.11(c) For each fiscal year from 2014 to 2017, the commissioner of human services shall
547.12certify and report to the commissioner of management and budget the actual or forecasted
547.13 estimated cost difference of adding 19- and 20-year-olds and parents and relative caretaker
547.14populations with income between 100 and 138 percent of the federal poverty guidelines,
547.15as determined under paragraph (b), to the commissioner of management and budget at
547.16least four weeks prior to the release of a forecast under Minnesota Statutes, section
547.1716A.103 , of each fiscal year.
547.18(d) No later than three weeks before the release of the forecast For fiscal years 2014 to
547.192017, forecasts under Minnesota Statutes, section 16A.103, prepared by the commissioner
547.20of management and budget shall reduce the include actual or estimated adjustments to
547.21health care access fund transfer transfers in paragraph (a), by the cumulative differences in
547.22costs reported by the commissioner of human services under according to paragraph (c)
547.23 (e). If, for any fiscal year, the amount of the cumulative cost differences determined under
547.24paragraph (b) is positive, no change is made to the appropriation. If, for any fiscal year,
547.25the amount of the cumulative cost differences determined under paragraph (b) is less than
547.26the amount of the original appropriation, the appropriation for that year must be zero.
547.27(e) For each fiscal year from 2014 to 2017, the commissioner of management and
547.28budget must adjust the transfer amounts in paragraph (a) by the cumulative difference in
547.29costs reported by the commissioner of human services under paragraph (c). If, for any
547.30fiscal year, the amount of the cumulative difference in costs reported under paragraph (c)
547.31is positive, no adjustment shall be made.
547.32EFFECTIVE DATE.This section is effective retroactively from July 1, 2013.

547.33    Sec. 7. Laws 2013, chapter 108, article 14, section 2, subdivision 3, is amended to read:

547.34 547.35

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

548.1(a) The following TANF fund amounts
548.2are appropriated to the commissioner for
548.3purposes of MFIP/transition year child care
548.4assistance under Minnesota Statutes, section
548.5119B.05 :
548.6(1) fiscal year 2014; $14,020,000; and
548.7(2) fiscal year 2015, $14,020,000;
548.8$14,372,000;
548.9(3) fiscal year 2016; $1,036,000; and
548.10(4) fiscal year 2017; $1,559,000.
548.11(b) The commissioner shall authorize the
548.12transfer of sufficient TANF funds to the
548.13federal child care and development fund to
548.14meet this appropriation and shall ensure that
548.15all transferred funds are expended according
548.16to federal child care and development fund
548.17regulations.

548.18    Sec. 8. Laws 2013, chapter 108, article 14, section 3, subdivision 1, is amended to read:

548.19 548.20

Subdivision 1.Total Appropriation

$

169,326,000 169,026,000

$

165,531,000 165,231,000

548.21	Appropriations by Fund
548.22		2014	2015
548.23	General	79,476,000	74,256,000
548.24 548.25	State Government Special Revenue	48,094,000	50,119,000
548.26	Health Care Access	29,743,000	29,143,000
548.27	Federal TANF	11,713,000	11,713,000
548.28	Special Revenue	300,000	300,000

548.29The amounts that may be spent for each
548.30purpose are specified in the following
548.31subdivisions.

548.32    Sec. 9. Laws 2013, chapter 108, article 14, section 3, subdivision 4, is amended to read:

548.33

Subd. 4.Health Protection

549.1	Appropriations by Fund
549.2	General	9,201,000	9,201,000
549.3 549.4	State Government Special Revenue	32,633,000	32,636,000
549.5	Special Revenue	300,000	300,000

549.6Infectious Disease Laboratory. Of the
549.7general fund appropriation, $200,000 in
549.8fiscal year 2014 and $200,000 in fiscal year
549.92015 are to monitor infectious disease trends
549.10and investigate infectious disease outbreaks.
549.11Surveillance for Elevated Blood Lead
549.12Levels. Of the general fund appropriation,
549.13$100,000 in fiscal year 2014 and $100,000
549.14in fiscal year 2015 are for the blood lead
549.15surveillance system under Minnesota
549.16Statutes, section 144.9502.
549.17Base Level Adjustment. The state
549.18government special revenue base is increased
549.19by $6,000 in fiscal year 2016 and by $13,000
549.20in fiscal year 2017.

549.21    Sec. 10. Laws 2013, chapter 108, article 14, section 4, subdivision 8, is amended to read:

549.22 549.23

Subd. 8.Board of Nursing Home Administrators

3,742,000

2,252,000

549.24Administrative Services Unit - Operating
549.25Costs. Of this appropriation, $676,000
549.26in fiscal year 2014 and $626,000 in
549.27fiscal year 2015 are for operating costs
549.28of the administrative services unit. The
549.29administrative services unit may receive
549.30and expend reimbursements for services
549.31performed by other agencies.
549.32Administrative Services Unit - Volunteer
549.33Health Care Provider Program. Of this
549.34appropriation, $150,000 in fiscal year 2014
550.1and $150,000 in fiscal year 2015 are to pay
550.2for medical professional liability coverage
550.3required under Minnesota Statutes, section
550.4214.40 .
550.5Administrative Services Unit - Contested
550.6Cases and Other Legal Proceedings. Of
550.7this appropriation, $200,000 in fiscal year
550.82014 and $200,000 in fiscal year 2015 are
550.9for costs of contested case hearings and other
550.10unanticipated costs of legal proceedings
550.11involving health-related boards funded
550.12under this section. Upon certification of a
550.13health-related board to the administrative
550.14services unit that the costs will be incurred
550.15and that there is insufficient money available
550.16to pay for the costs out of money currently
550.17available to that board, the administrative
550.18services unit is authorized to transfer money
550.19from this appropriation to the board for
550.20payment of those costs with the approval
550.21of the commissioner of management and
550.22budget. This appropriation does not cancel
550.23and is available until expended.
550.24This appropriation includes $44,000 in
550.25fiscal year 2014 for rulemaking. This is
550.26a onetime appropriation. $1,441,000 in
550.27fiscal year 2014 and $420,000 in fiscal year
550.282015 are for the development of a shared
550.29disciplinary, regulatory, licensing, and
550.30information management system. $391,000
550.31in fiscal year 2014 is a onetime appropriation
550.32for retirement costs in the health-related
550.33boards. This funding may be transferred to
550.34the health boards incurring retirement costs.
550.35These funds are available either year of the
550.36biennium.
551.1This appropriation includes $16,000 in fiscal
551.2years 2014 and 2015 for evening security,
551.3$2,000 in fiscal years 2014 and 2015 for a
551.4state vehicle lease, and $18,000 in fiscal
551.5years 2014 and 2015 for shared office space
551.6and administrative support. $205,000 in
551.7fiscal year 2014 and $221,000 in fiscal year
551.82015 are for shared information technology
551.9services, equipment, and maintenance.
551.10The remaining balance of the state
551.11government special revenue fund
551.12appropriation in Laws 2011, First Special
551.13Session chapter 9, article 10, section 8,
551.14subdivision 8, for Board of Nursing Home
551.15Administrators rulemaking, estimated to
551.16be $44,000, is canceled, and the remaining
551.17balance of the state government special
551.18revenue fund appropriation in Laws 2011,
551.19First Special Session chapter 9, article 10,
551.20section 8, subdivision 8, for electronic
551.21licensing system adaptors, estimated to be
551.22$761,000, and for the development and
551.23implementation of a disciplinary, regulatory,
551.24licensing, and information management
551.25system, estimated to be $1,100,000, are
551.26canceled. This paragraph is effective the day
551.27following final enactment.
551.28Base Adjustment. The base is decreased by
551.29$370,000 in fiscal years 2016 and 2017.
551.30EFFECTIVE DATE.This section is effective retroactively from July 1, 2013.

551.31    Sec. 11. Laws 2013, chapter 108, article 14, section 12, is amended to read:
551.32    Sec. 12. APPROPRIATION ADJUSTMENTS.
551.33(a) The general fund appropriation in section 2, subdivision 5, paragraph (g),
551.34includes up to $53,391,000 in fiscal year 2014; $216,637,000 in fiscal year 2015;
552.1$261,660,000 in fiscal year 2016; and $279,984,000 in fiscal year 2017, for medical
552.2assistance eligibility and administration changes related to:
552.3(1) eligibility for children age two to 18 with income up to 275 percent of the federal
552.4poverty guidelines;
552.5(2) eligibility for pregnant women with income up to 275 percent of the federal
552.6poverty guidelines;
552.7(3) Affordable Care Act enrollment and renewal processes, including elimination
552.8of six-month renewals, ex parte eligibility reviews, preprinted renewal forms, changes
552.9in verification requirements, and other changes in the eligibility determination and
552.10enrollment and renewal process;
552.11(4) automatic eligibility for children who turn 18 in foster care until they reach age 26;
552.12(5) eligibility related to spousal impoverishment provisions for waiver recipients; and
552.13(6) presumptive eligibility determinations by hospitals.
552.14(b) the commissioner of human services shall determine the difference between the
552.15actual or forecasted estimated costs to the medical assistance program attributable to
552.16the program changes in paragraph (a), clauses (1) to (6), and the costs of paragraph (a),
552.17clauses (1) to (6), that were estimated during the 2013 legislative session based on data
552.18from the 2013 February forecast. The costs in this paragraph must be calculated between
552.19January 1, 2014, and June 30, 2017.
552.20(c) For each fiscal year from 2014 to 2017, the commissioner of human services
552.21shall certify the actual or forecasted estimated cost differences to the medical assistance
552.22program determined under paragraph (b), and report the difference in costs to the
552.23commissioner of management and budget at least four weeks prior to a forecast under
552.24Minnesota Statutes, section 16A.103. No later than three weeks before the release of
552.25the forecast For fiscal years 2014 to 2017, forecasts under Minnesota Statutes, section
552.2616A.103 , prepared by the commissioner of management and budget shall reduce include
552.27actual or estimated adjustments to the health care access fund appropriation in section
552.282, subdivision 5, paragraph (g), by the cumulative difference in costs determined in
552.29 according to paragraph (b) (d). If for any fiscal year, the amount of the cumulative cost
552.30differences determined under paragraph (b) is positive, no adjustment shall be made to the
552.31health care access fund appropriation. If for any fiscal year, the amount of the cumulative
552.32cost differences determined under paragraph (b) is less than the original appropriation, the
552.33appropriation for that fiscal year is zero.
552.34(d) For each fiscal year from 2014 to 2017, the commissioner of management and
552.35budget must adjust the health care access fund appropriation by the cumulative difference
552.36in costs reported by the commissioner of human services under paragraph (b). If, for any
553.1fiscal year, the amount of the cumulative difference in costs determined under paragraph
553.2(b) is positive, no adjustment shall be made to the health care access fund appropriation.
553.3(e) This section expires on January 1, 2018.
553.4EFFECTIVE DATE.This section is effective retroactively from July 1, 2013.

553.5    Sec. 12. DEDICATED FUNDS REPORT.
553.6By October 1, 2014, and with each February forecast thereafter, the commissioner of
553.7human services must provide to the chairs and ranking minority members of the house of
553.8representatives and senate committees with jurisdiction over health and human services
553.9finance a report of all dedicated funds and accounts. The report must include the name
553.10of the dedicated fund or account; a description of its purpose, and the legal citation for
553.11its creation; the beginning balance, projected receipts, and expenditures; and the ending
553.12balance for each fund and account. This section shall not expire.

553.13    Sec. 13. EXPIRATION OF UNCODIFIED LANGUAGE.
553.14All uncodified language in this article expires on June 30, 2015, unless a different
553.15expiration date is specified.

553.16ARTICLE 31

553.17HUMAN SERVICES FORECAST ADJUSTMENTS

553.18

Section 1. HUMAN SERVICES APPROPRIATION.

553.19The sums shown in the columns marked "Appropriations" are added to or, if shown
553.20in parentheses, are subtracted from the appropriations in Laws 2013, chapter 108, article
553.2114, from the general fund or any fund named to the Department of Human Services for
553.22the purposes specified in this article, to be available for the fiscal year indicated for each
553.23purpose. The figures "2014" and "2015" used in this article mean that the appropriations
553.24listed under them are available for the fiscal years ending June 30, 2014, or June 30, 2015,
553.25respectively. "The first year" is fiscal year 2014. "The second year" is fiscal year 2015.
553.26"The biennium" is fiscal years 2014 and 2015.

553.27				APPROPRIATIONS
553.28				Available for the Year
553.29				Ending June 30
553.30					2014		2015

553.31 553.32

Sec. 2. COMMISSIONER OF HUMAN SERVICES

553.33

Subdivision 1.Total Appropriation

$

(196,275,000)

$

64,288,000

554.1	Appropriations by Fund
554.2	General Fund	(152,845,000)	(25,282,000)
554.3 554.4	Health Care Access Fund	(36,533,000)	91,294,000
554.5	Federal TANF	(6,897,000)	(1,724,000)

554.6

Subd. 2.Forecasted Programs

554.7

(a) MFIP/DWP

554.8	Appropriations by Fund
554.9	General Fund	3,571,000	173,000
554.10	Federal TANF	(6,475,000)	(1,298,000)

554.11

(b) MFIP Child Care Assistance

(684,000)

11,114,000

554.12

(c) General Assistance

(2,569,000)

(1,940,000)

554.13

(d) Minnesota Supplemental Aid

(690,000)

(614,000)

554.14

(e) Group Residential Housing

250,000

(1,740,000)

554.15

(f) MinnesotaCare

(34,838,000)

96,340,000

554.16These appropriations are from the health care
554.17access fund.

554.18

(g) Medical Assistance

554.19	Appropriations by Fund
554.20	General Fund	(149,494,000)	(27,075,000)
554.21 554.22	Health Care Access Fund	(1,695,000)	(5,046,000)

554.23

(h) Alternative Care Program

(6,936,000)

(13,260,000)

554.24

(i) CCDTF Entitlements

3,707,000

8,060,000

554.25

Subd. 3.Technical Activities

(422,000)

(426,000)

554.26These appropriations are from the federal
554.27TANF fund.

554.28    Sec. 3. Laws 2013, chapter 108, article 14, section 2, subdivision 1, is amended to read:

554.29 554.30

Subdivision 1.Total Appropriation

$

6,438,485,000 6,437,815,000

$

6,457,117,000 6,456,311,000

554.31	Appropriations by Fund
554.32		2014	2015
555.1 555.2	General	5,654,765,000 5,654,095,000	5,677,458,000 5,676,652,000
555.3 555.4	State Government Special Revenue	4,099,000	4,510,000
555.5	Health Care Access	519,816,000	518,446,000
555.6	Federal TANF	257,915,000	254,813,000
555.7	Lottery Prize Fund	1,890,000	1,890,000

555.8Receipts for Systems Projects.
555.9Appropriations and federal receipts for
555.10information systems projects for MAXIS,
555.11PRISM, MMIS, and SSIS must be deposited
555.12in the state system account authorized
555.13in Minnesota Statutes, section 256.014.
555.14Money appropriated for computer projects
555.15approved by the commissioner of Minnesota
555.16information technology services, funded
555.17by the legislature, and approved by the
555.18commissioner of management and budget,
555.19may be transferred from one project to
555.20another and from development to operations
555.21as the commissioner of human services
555.22considers necessary. Any unexpended
555.23balance in the appropriation for these
555.24projects does not cancel but is available for
555.25ongoing development and operations.
555.26Nonfederal Share Transfers. The
555.27nonfederal share of activities for which
555.28federal administrative reimbursement is
555.29appropriated to the commissioner may be
555.30transferred to the special revenue fund.
555.31ARRA Supplemental Nutrition Assistance
555.32Benefit Increases. The funds provided for
555.33food support benefit increases under the
555.34Supplemental Nutrition Assistance Program
555.35provisions of the American Recovery and
555.36Reinvestment Act (ARRA) of 2009 must be
556.1used for benefit increases beginning July 1,
556.22009.
556.3Supplemental Nutrition Assistance
556.4Program Employment and Training.
556.5(1) Notwithstanding Minnesota Statutes,
556.6sections 256D.051, subdivisions 1a, 6b,
556.7and 6c, and 256J.626, federal Supplemental
556.8Nutrition Assistance employment and
556.9training funds received as reimbursement of
556.10MFIP consolidated fund grant expenditures
556.11for diversionary work program participants
556.12and child care assistance program
556.13expenditures must be deposited in the general
556.14fund. The amount of funds must be limited to
556.15$4,900,000 per year in fiscal years 2014 and
556.162015, and to $4,400,000 per year in fiscal
556.17years 2016 and 2017, contingent on approval
556.18by the federal Food and Nutrition Service.
556.19(2) Consistent with the receipt of the federal
556.20funds, the commissioner may adjust the
556.21level of working family credit expenditures
556.22claimed as TANF maintenance of effort.
556.23Notwithstanding any contrary provision in
556.24this article, this rider expires June 30, 2017.
556.25TANF Maintenance of Effort. (a) In order
556.26to meet the basic maintenance of effort
556.27(MOE) requirements of the TANF block grant
556.28specified under Code of Federal Regulations,
556.29title 45, section 263.1, the commissioner may
556.30only report nonfederal money expended for
556.31allowable activities listed in the following
556.32clauses as TANF/MOE expenditures:
556.33(1) MFIP cash, diversionary work program,
556.34and food assistance benefits under Minnesota
556.35Statutes, chapter 256J;
557.1(2) the child care assistance programs
557.2under Minnesota Statutes, sections 119B.03
557.3and 119B.05, and county child care
557.4administrative costs under Minnesota
557.5Statutes, section 119B.15;
557.6(3) state and county MFIP administrative
557.7costs under Minnesota Statutes, chapters
557.8256J and 256K;
557.9(4) state, county, and tribal MFIP
557.10employment services under Minnesota
557.11Statutes, chapters 256J and 256K;
557.12(5) expenditures made on behalf of legal
557.13noncitizen MFIP recipients who qualify for
557.14the MinnesotaCare program under Minnesota
557.15Statutes, chapter 256L;
557.16(6) qualifying working family credit
557.17expenditures under Minnesota Statutes,
557.18section 290.0671;
557.19(7) qualifying Minnesota education credit
557.20expenditures under Minnesota Statutes,
557.21section 290.0674; and
557.22(8) qualifying Head Start expenditures under
557.23Minnesota Statutes, section 119A.50.
557.24(b) The commissioner shall ensure that
557.25sufficient qualified nonfederal expenditures
557.26are made each year to meet the state's
557.27TANF/MOE requirements. For the activities
557.28listed in paragraph (a), clauses (2) to
557.29(8), the commissioner may only report
557.30expenditures that are excluded from the
557.31definition of assistance under Code of
557.32Federal Regulations, title 45, section 260.31.
557.33(c) For fiscal years beginning with state fiscal
557.34year 2003, the commissioner shall ensure
558.1that the maintenance of effort used by the
558.2commissioner of management and budget
558.3for the February and November forecasts
558.4required under Minnesota Statutes, section
558.516A.103 , contains expenditures under
558.6paragraph (a), clause (1), equal to at least 16
558.7percent of the total required under Code of
558.8Federal Regulations, title 45, section 263.1.
558.9(d) The requirement in Minnesota Statutes,
558.10section 256.011, subdivision 3, that federal
558.11grants or aids secured or obtained under that
558.12subdivision be used to reduce any direct
558.13appropriations provided by law, do not apply
558.14if the grants or aids are federal TANF funds.
558.15(e) For the federal fiscal years beginning on
558.16or after October 1, 2007, the commissioner
558.17may not claim an amount of TANF/MOE in
558.18excess of the 75 percent standard in Code
558.19of Federal Regulations, title 45, section
558.20263.1(a)(2), except:
558.21(1) to the extent necessary to meet the 80
558.22percent standard under Code of Federal
558.23Regulations, title 45, section 263.1(a)(1),
558.24if it is determined by the commissioner
558.25that the state will not meet the TANF work
558.26participation target rate for the current year;
558.27(2) to provide any additional amounts
558.28under Code of Federal Regulations, title 45,
558.29section 264.5, that relate to replacement of
558.30TANF funds due to the operation of TANF
558.31penalties; and
558.32(3) to provide any additional amounts that
558.33may contribute to avoiding or reducing
558.34TANF work participation penalties through
558.35the operation of the excess MOE provisions
559.1of Code of Federal Regulations, title 45,
559.2section 261.43 (a)(2).
559.3For the purposes of clauses (1) to (3),
559.4the commissioner may supplement the
559.5MOE claim with working family credit
559.6expenditures or other qualified expenditures
559.7to the extent such expenditures are otherwise
559.8available after considering the expenditures
559.9allowed in this subdivision and subdivisions
559.102 and 3.
559.11(f) Notwithstanding any contrary provision
559.12in this article, paragraphs (a) to (e) expire
559.13June 30, 2017.
559.14Working Family Credit Expenditures
559.15as TANF/MOE. The commissioner may
559.16claim as TANF maintenance of effort up to
559.17$6,707,000 per year of working family credit
559.18expenditures in each fiscal year.
559.19EFFECTIVE DATE.This section is effective retroactively from July 1, 2013.

559.20    Sec. 4. Laws 2013, chapter 108, article 14, section 2, subdivision 4, as amended by
559.21Laws 2013, chapter 144, section 24, is amended to read:

559.22

Subd. 4.Central Office

559.23The amounts that may be spent from this
559.24appropriation for each purpose are as follows:

559.25

(a) Operations

559.26	Appropriations by Fund
559.27	General	101,979,000	96,858,000
559.28 559.29	State Government Special Revenue	3,974,000	4,385,000
559.30	Health Care Access	13,177,000	13,004,000
559.31	Federal TANF	100,000	100,000

559.32DHS Receipt Center Accounting. The
559.33commissioner is authorized to transfer
560.1appropriations to, and account for DHS
560.2receipt center operations in, the special
560.3revenue fund.
560.4Administrative Recovery; Set-Aside. The
560.5commissioner may invoice local entities
560.6through the SWIFT accounting system as an
560.7alternative means to recover the actual cost
560.8of administering the following provisions:
560.9(1) Minnesota Statutes, section 125A.744,
560.10subdivision 3 ;
560.11(2) Minnesota Statutes, section 245.495,
560.12paragraph (b);
560.13(3) Minnesota Statutes, section 256B.0625,
560.14subdivision 20 , paragraph (k);
560.15(4) Minnesota Statutes, section 256B.0924,
560.16subdivision 6 , paragraph (g);
560.17(5) Minnesota Statutes, section 256B.0945,
560.18subdivision 4 , paragraph (d); and
560.19(6) Minnesota Statutes, section 256F.10,
560.20subdivision 6 , paragraph (b).
560.21Systems Modernization. The following
560.22amounts are appropriated for transfer to
560.23the state systems account authorized in
560.24Minnesota Statutes, section 256.014:
560.25(1) $1,825,000 in fiscal year 2014 and
560.26$2,502,000 in fiscal year 2015 is for the
560.27state share of Medicaid-allocated costs of
560.28the health insurance exchange information
560.29technology and operational structure. The
560.30funding base is $3,222,000 in fiscal year 2016
560.31and $3,037,000 in fiscal year 2017 but shall
560.32not be included in the base thereafter; and
561.1(2) $9,344,000 in fiscal year 2014 and
561.2$3,660,000 in fiscal year 2015 are for the
561.3modernization and streamlining of agency
561.4eligibility and child support systems. The
561.5funding base is $5,921,000 in fiscal year
561.62016 and $1,792,000 in fiscal year 2017 but
561.7shall not be included in the base thereafter.
561.8The unexpended balance of the $9,344,000
561.9appropriation in fiscal year 2014 and the
561.10$3,660,000 appropriation in fiscal year 2015
561.11must be transferred from the Department of
561.12Human Services state systems account to
561.13the Office of Enterprise Technology when
561.14the Office of Enterprise Technology has
561.15negotiated a federally approved internal
561.16service fund rates and billing process with
561.17sufficient internal accounting controls to
561.18properly maximize federal reimbursement
561.19to Minnesota for human services system
561.20modernization projects, but not later than
561.21June 30, 2015.
561.22If contingent funding is fully or partially
561.23disbursed under article 15, section 3, and
561.24transferred to the state systems account, the
561.25unexpended balance of that appropriation
561.26must be transferred to the Office of Enterprise
561.27Technology in accordance with this clause.
561.28Contingent funding must not exceed
561.29$11,598,000 for the biennium.
561.30Base Adjustment. The general fund base
561.31is increased by $2,868,000 in fiscal year
561.322016 and decreased by $1,206,000 in fiscal
561.33year 2017. The health access fund base is
561.34decreased by $551,000 in fiscal years 2016
561.35and 2017. The state government special
562.1revenue fund base is increased by $4,000 in
562.2fiscal year 2016 and decreased by $236,000
562.3in fiscal year 2017.

562.4

(b) Children and Families

562.5	Appropriations by Fund
562.6	General	8,023,000	8,015,000
562.7	Federal TANF	2,282,000	2,282,000

562.8Financial Institution Data Match and
562.9Payment of Fees. The commissioner is
562.10authorized to allocate up to $310,000 each
562.11year in fiscal years 2014 and 2015 from the
562.12PRISM special revenue account to make
562.13payments to financial institutions in exchange
562.14for performing data matches between account
562.15information held by financial institutions
562.16and the public authority's database of child
562.17support obligors as authorized by Minnesota
562.18Statutes, section 13B.06, subdivision 7.
562.19Base Adjustment. The general fund base is
562.20decreased by $300,000 in fiscal years 2016
562.21and 2017. The TANF fund base is increased
562.22by $300,000 in fiscal years 2016 and 2017.

562.23

(c) Health Care

562.24	Appropriations by Fund
562.25	General	14,028,000	13,826,000
562.26	Health Care Access	28,442,000	31,137,000

562.27Base Adjustment. The general fund base
562.28is decreased by $86,000 in fiscal year 2016
562.29and by $86,000 in fiscal year 2017. The
562.30health care access fund base is increased
562.31by $6,954,000 in fiscal year 2016 and by
562.32$5,489,000 in fiscal year 2017.

562.33

(d) Continuing Care

563.1	Appropriations by Fund
563.2	General	20,993,000	22,359,000
563.3 563.4	State Government Special Revenue	125,000	125,000

563.5Base Adjustment. The general fund base is
563.6increased by $1,690,000 in fiscal year 2016
563.7and by $798,000 in fiscal year 2017.

563.8

(e) Chemical and Mental Health

563.9	Appropriations by Fund
563.10 563.11	General	4,639,000 4,571,000	4,490,000 4,431,000
563.12	Lottery Prize Fund	157,000	157,000

563.13Of the general fund appropriation, $68,000
563.14in fiscal year 2014 and $59,000 in fiscal year
563.152015 are for compulsive gambling treatment
563.16under Minnesota Statutes, section 297E.02,
563.17subdivision 3, paragraph (c).
563.18EFFECTIVE DATE.This section is effective retroactively from July 1, 2013.

563.19    Sec. 5. Laws 2013, chapter 108, article 14, section 2, subdivision 6, as amended by
563.20Laws 2013, chapter 144, section 25, is amended to read:

563.21

Subd. 6.Grant Programs

563.22The amounts that may be spent from this
563.23appropriation for each purpose are as follows:

563.24

(a) Support Services Grants

563.25	Appropriations by Fund
563.26	General	8,915,000	13,333,000
563.27	Federal TANF	94,611,000	94,611,000

563.28Paid Work Experience. $2,168,000
563.29each year in fiscal years 2015 and 2016
563.30is from the general fund for paid work
563.31experience for long-term MFIP recipients.
563.32Paid work includes full and partial wage
563.33subsidies and other related services such as
564.1job development, marketing, preworksite
564.2training, job coaching, and postplacement
564.3services. These are onetime appropriations.
564.4Unexpended funds for fiscal year 2015 do not
564.5cancel, but are available to the commissioner
564.6for this purpose in fiscal year 2016.
564.7Work Study Funding for MFIP
564.8Participants. $250,000 each year in fiscal
564.9years 2015 and 2016 is from the general fund
564.10to pilot work study jobs for MFIP recipients
564.11in approved postsecondary education
564.12programs. This is a onetime appropriation.
564.13Unexpended funds for fiscal year 2015 do
564.14not cancel, but are available for this purpose
564.15in fiscal year 2016.
564.16Local Strategies to Reduce Disparities.
564.17$2,000,000 each year in fiscal years 2015
564.18and 2016 is from the general fund for
564.19local projects that focus on services for
564.20subgroups within the MFIP caseload
564.21who are experiencing poor employment
564.22outcomes. These are onetime appropriations.
564.23Unexpended funds for fiscal year 2015 do not
564.24cancel, but are available to the commissioner
564.25for this purpose in fiscal year 2016.
564.26Home Visiting Collaborations for MFIP
564.27Teen Parents. $200,000 per year in fiscal
564.28years 2014 and 2015 is from the general fund
564.29and $200,000 in fiscal year 2016 is from the
564.30federal TANF fund for technical assistance
564.31and training to support local collaborations
564.32that provide home visiting services for
564.33MFIP teen parents. The general fund
564.34appropriation is onetime. The federal TANF
564.35fund appropriation is added to the base.
565.1Performance Bonus Funds for Counties.
565.2The TANF fund base is increased by
565.3$1,500,000 each year in fiscal years 2016
565.4and 2017. The commissioner must allocate
565.5this amount each year to counties that exceed
565.6their expected range of performance on the
565.7annualized three-year self-support index
565.8as defined in Minnesota Statutes, section
565.9256J.751, subdivision 2 , clause (6). This is a
565.10permanent base adjustment. Notwithstanding
565.11any contrary provisions in this article, this
565.12provision expires June 30, 2016.
565.13Base Adjustment. The general fund base is
565.14decreased by $200,000 in fiscal year 2016
565.15and $4,618,000 in fiscal year 2017. The
565.16TANF fund base is increased by $1,700,000
565.17in fiscal years 2016 and 2017.

565.18 565.19

(b) Basic Sliding Fee Child Care Assistance Grants

36,836,000

42,318,000

565.20Base Adjustment. The general fund base is
565.21increased by $3,778,000 in fiscal year 2016
565.22and by $3,849,000 in fiscal year 2017.

565.23

(c) Child Care Development Grants

1,612,000

1,737,000

565.24

(d) Child Support Enforcement Grants

50,000

50,000

565.25Federal Child Support Demonstration
565.26Grants. Federal administrative
565.27reimbursement resulting from the federal
565.28child support grant expenditures authorized
565.29under United States Code, title 42, section
565.301315, is appropriated to the commissioner
565.31for this activity.

565.32

(e) Children's Services Grants

566.1	Appropriations by Fund
566.2	General	49,760,000	52,961,000
566.3	Federal TANF	140,000	140,000

566.4Adoption Assistance and Relative Custody
566.5Assistance. $37,453,000 in fiscal year 2014
566.6and $37,453,000 in fiscal year 2015 is for
566.7the adoption assistance and relative custody
566.8assistance programs. The commissioner
566.9shall determine with the commissioner of
566.10Minnesota Management and Budget the
566.11appropriation for Northstar Care for Children
566.12effective January 1, 2015. The commissioner
566.13may transfer appropriations for adoption
566.14assistance, relative custody assistance, and
566.15Northstar Care for Children between fiscal
566.16years and among programs to adjust for
566.17transfers across the programs.
566.18Title IV-E Adoption Assistance. Additional
566.19federal reimbursements to the state as a result
566.20of the Fostering Connections to Success
566.21and Increasing Adoptions Act's expanded
566.22eligibility for Title IV-E adoption assistance
566.23are appropriated for postadoption services,
566.24including a parent-to-parent support network.
566.25Privatized Adoption Grants. Federal
566.26reimbursement for privatized adoption grant
566.27and foster care recruitment grant expenditures
566.28is appropriated to the commissioner for
566.29adoption grants and foster care and adoption
566.30administrative purposes.
566.31Adoption Assistance Incentive Grants.
566.32Federal funds available during fiscal years
566.332014 and 2015 for adoption incentive grants
566.34are appropriated for postadoption services,
566.35including a parent-to-parent support network.
567.1Base Adjustment. The general fund base is
567.2increased by $5,913,000 in fiscal year 2016
567.3and by $10,297,000 in fiscal year 2017.

567.4

(f) Child and Community Service Grants

53,301,000

53,301,000

567.5

(g) Child and Economic Support Grants

21,047,000

20,848,000

567.6Minnesota Food Assistance Program.
567.7Unexpended funds for the Minnesota food
567.8assistance program for fiscal year 2014 do
567.9not cancel but are available for this purpose
567.10in fiscal year 2015.
567.11Transitional Housing. $250,000 each year
567.12is for the transitional housing programs under
567.13Minnesota Statutes, section 256E.33.
567.14Emergency Services. $250,000 each year
567.15is for emergency services grants under
567.16Minnesota Statutes, section 256E.36.
567.17Family Assets for Independence. $250,000
567.18each year is for the Family Assets for
567.19Independence Minnesota program. This
567.20appropriation is available in either year of the
567.21biennium and may be transferred between
567.22fiscal years.
567.23Food Shelf Programs. $375,000 in fiscal
567.24year 2014 and $375,000 in fiscal year
567.252015 are for food shelf programs under
567.26Minnesota Statutes, section 256E.34. If the
567.27appropriation for either year is insufficient,
567.28the appropriation for the other year is
567.29available for it. Notwithstanding Minnesota
567.30Statutes, section 256E.34, subdivision 4, no
567.31portion of this appropriation may be used
567.32by Hunger Solutions for its administrative
567.33expenses, including but not limited to rent
567.34and salaries.
568.1Homeless Youth Act. $2,000,000 in fiscal
568.2year 2014 and $2,000,000 in fiscal year 2015
568.3is for purposes of Minnesota Statutes, section
568.4256K.45 .
568.5Safe Harbor Shelter and Housing.
568.6$500,000 in fiscal year 2014 and $500,000 in
568.7fiscal year 2015 is for a safe harbor shelter
568.8and housing fund for housing and supportive
568.9services for youth who are sexually exploited.

568.10

(h) Health Care Grants

568.11	Appropriations by Fund
568.12	General	190,000	190,000
568.13	Health Care Access	190,000	190,000

568.14Emergency Medical Assistance Referral
568.15and Assistance Grants. (a) The
568.16commissioner of human services shall
568.17award grants to nonprofit programs that
568.18provide immigration legal services based
568.19on indigency to provide legal services for
568.20immigration assistance to individuals with
568.21emergency medical conditions or complex
568.22and chronic health conditions who are not
568.23currently eligible for medical assistance
568.24or other public health care programs, but
568.25who may meet eligibility requirements with
568.26immigration assistance.
568.27(b) The grantees, in collaboration with
568.28hospitals and safety net providers, shall
568.29provide referral assistance to connect
568.30individuals identified in paragraph (a) with
568.31alternative resources and services to assist in
568.32meeting their health care needs. $100,000
568.33is appropriated in fiscal year 2014 and
568.34$100,000 in fiscal year 2015. This is a
568.35onetime appropriation.
569.1Base Adjustment. The general fund is
569.2decreased by $100,000 in fiscal year 2016
569.3and $100,000 in fiscal year 2017.

569.4

(i) Aging and Adult Services Grants

14,827,000

15,010,000

569.5Base Adjustment. The general fund is
569.6increased by $1,150,000 in fiscal year 2016
569.7and $1,151,000 in fiscal year 2017.
569.8Community Service Development
569.9Grants and Community Services Grants.
569.10Community service development grants and
569.11community services grants are reduced by
569.12$1,150,000 each year. This is a onetime
569.13reduction.

569.14

(j) Deaf and Hard-of-Hearing Grants

1,771,000

1,785,000

569.15

(k) Disabilities Grants

18,605,000

18,823,000

569.16Advocating Change Together. $310,000 in
569.17fiscal year 2014 is for a grant to Advocating
569.18Change Together (ACT) to maintain and
569.19promote services for persons with intellectual
569.20and developmental disabilities throughout
569.21the state. This appropriation is onetime. Of
569.22this appropriation:
569.23(1) $120,000 is for direct costs associated
569.24with the delivery and evaluation of
569.25peer-to-peer training programs administered
569.26throughout the state, focusing on education,
569.27employment, housing, transportation, and
569.28voting;
569.29(2) $100,000 is for delivery of statewide
569.30conferences focusing on leadership and
569.31skill development within the disability
569.32community; and
570.1(3) $90,000 is for administrative and general
570.2operating costs associated with managing
570.3or maintaining facilities, program delivery,
570.4staff, and technology.
570.5Base Adjustment. The general fund base
570.6is increased by $535,000 in fiscal year 2016
570.7and by $709,000 in fiscal year 2017.

570.8

(l) Adult Mental Health Grants

570.9	Appropriations by Fund
570.10 570.11	General	71,199,000 70,597,000	69,530,000 68,783,000
570.12	Health Care Access	750,000	750,000
570.13	Lottery Prize	1,733,000	1,733,000

570.14Compulsive Gambling Treatment. Of the
570.15general fund appropriation, $602,000 in
570.16fiscal year 2014 and $747,000 in fiscal year
570.172015 are for compulsive gambling treatment
570.18under Minnesota Statutes, section 297E.02,
570.19subdivision 3, paragraph (c).
570.20Problem Gambling. $225,000 in fiscal year
570.212014 and $225,000 in fiscal year 2015 is
570.22appropriated from the lottery prize fund for a
570.23grant to the state affiliate recognized by the
570.24National Council on Problem Gambling. The
570.25affiliate must provide services to increase
570.26public awareness of problem gambling,
570.27education and training for individuals and
570.28organizations providing effective treatment
570.29services to problem gamblers and their
570.30families, and research relating to problem
570.31gambling.
570.32Funding Usage. Up to 75 percent of a fiscal
570.33year's appropriations for adult mental health
570.34grants may be used to fund allocations in that
571.1portion of the fiscal year ending December
571.231.
571.3Base Adjustment. The general fund base is
571.4decreased by $4,427,000 $4,441,000 in fiscal
571.5years 2016 and 2017.
571.6Mental Health Pilot Project. $230,000
571.7each year is for a grant to the Zumbro
571.8Valley Mental Health Center. The grant
571.9shall be used to implement a pilot project
571.10to test an integrated behavioral health care
571.11coordination model. The grant recipient must
571.12report measurable outcomes and savings
571.13to the commissioner of human services
571.14by January 15, 2016. This is a onetime
571.15appropriation.
571.16High-risk adults. $200,000 in fiscal
571.17year 2014 is for a grant to the nonprofit
571.18organization selected to administer the
571.19demonstration project for high-risk adults
571.20under Laws 2007, chapter 54, article 1,
571.21section 19, in order to complete the project.
571.22This is a onetime appropriation.

571.23

(m) Child Mental Health Grants

18,246,000

20,636,000

571.24Text Message Suicide Prevention
571.25Program. $625,000 in fiscal year 2014 and
571.26$625,000 in fiscal year 2015 is for a grant
571.27to a nonprofit organization to establish and
571.28implement a statewide text message suicide
571.29prevention program. The program shall
571.30implement a suicide prevention counseling
571.31text line designed to use text messaging to
571.32connect with crisis counselors and to obtain
571.33emergency information and referrals to
571.34local resources in the local community. The
571.35program shall include training within schools
572.1and communities to encourage the use of the
572.2program.
572.3Mental Health First Aid Training. $22,000
572.4in fiscal year 2014 and $23,000 in fiscal
572.5year 2015 is to train teachers, social service
572.6personnel, law enforcement, and others who
572.7come into contact with children with mental
572.8illnesses, in children and adolescents mental
572.9health first aid training.
572.10Funding Usage. Up to 75 percent of a fiscal
572.11year's appropriation for child mental health
572.12grants may be used to fund allocations in that
572.13portion of the fiscal year ending December
572.1431.

572.15

(n) CD Treatment Support Grants

1,816,000

1,816,000

572.16SBIRT Training. (1) $300,000 each year is
572.17for grants to train primary care clinicians to
572.18provide substance abuse brief intervention
572.19and referral to treatment (SBIRT). This is a
572.20onetime appropriation. The commissioner of
572.21human services shall apply to SAMHSA for
572.22an SBIRT professional training grant.
572.23(2) If the commissioner of human services
572.24receives a grant under clause (1) funds
572.25appropriated under this clause, equal to
572.26the grant amount, up to the available
572.27appropriation, shall be transferred to the
572.28Minnesota Organization on Fetal Alcohol
572.29Syndrome (MOFAS). MOFAS must use
572.30the funds for grants. Grant recipients must
572.31be selected from communities that are
572.32not currently served by federal Substance
572.33Abuse Prevention and Treatment Block
572.34Grant funds. Grant money must be used to
572.35reduce the rates of fetal alcohol syndrome
573.1and fetal alcohol effects, and the number of
573.2drug-exposed infants. Grant money may be
573.3used for prevention and intervention services
573.4and programs, including, but not limited to,
573.5community grants, professional eduction,
573.6public awareness, and diagnosis.
573.7Fetal Alcohol Syndrome Grant. $180,000
573.8each year from the general fund is for a
573.9grant to the Minnesota Organization on Fetal
573.10Alcohol Syndrome (MOFAS) to support
573.11nonprofit Fetal Alcohol Spectrum Disorders
573.12(FASD) outreach prevention programs
573.13in Olmsted County. This is a onetime
573.14appropriation.
573.15Base Adjustment. The general fund base is
573.16decreased by $480,000 in fiscal year 2016
573.17and $480,000 in fiscal year 2017.
573.18EFFECTIVE DATE.This section is effective retroactively from July 1, 2013.

573.19    Sec. 6. EFFECTIVE DATE.
573.20Sections 1 and 2 are effective the day following final enactment."
573.21Delete the title and insert:

573.22"A bill for an act

573.23relating to state government; providing supplemental appropriations for Office
573.24of Higher Education, Board of Trustees of the Minnesota State Colleges and
573.25Universities, Board of Regents of the University of Minnesota; jobs, economic
573.26development, labor, commerce and housing finance; state government and
573.27veterans; public safety and corrections; transportation; agriculture, environment,
573.28natural resources and clean water; early childhood education; kindergarten
573.29through grade 12; community and adult education including general education;
573.30education excellence; special education; education facilities; nutrition; state
573.31education agencies; health and human services; making certain appropriations
573.32adjustments; modifying disposition of certain revenues; providing a grant
573.33to College Possible; providing funding for regenerative medicine research;
573.34regulating study abroad programs; providing resident tuition rates for certain
573.35military veterans; authorizing participation in the interstate reciprocity
573.36agreement; authorizing student loan refinancing; requiring a transfer from the
573.37assigned risk plan in the event of surplus; establishing broadband development
573.38grants; modifying workforce development outcomes; requiring workers'
573.39compensation reform; modifying an energy loan program; establishing deaf,
573.40deafblind, and hard-of-hearing grants; modifying distribution of a taconite tax;
573.41implementing an innovation voucher pilot program; establishing competency
573.42standards for certain industries; creating the Legislative Water Commission;
574.1making changes to the Compensation Council; expediting professional
574.2licensure for members of the military; transferring funds to a disaster assistance
574.3contingency account; modifying certain provisions pertaining to victims of
574.4domestic violence; permitting the court to continue a juvenile case without a
574.5finding of delinquency; continuing the fire safety advisory committee; lowering
574.6the penalty for the performance of acts prohibited by statutes for which no penalty
574.7is specified; extending University of Minnesota service of alcohol; providing
574.8for disaster assistance for public entities with and without federal assistance;
574.9providing for railroad and railroad yard safety and emergency preparedness;
574.10designating the Trooper Glen Skolman Memorial Highway; modifying various
574.11provisions governing fund use, driver's licenses and permits, license plates, speed
574.12limits, work zones, gross vehicle weights and permits, products and services
574.13billing, safety oversight, light rail vehicle design, transit shelters and stops,
574.14highway turnbacks, and watercraft decontamination sites; providing for federal
574.15conformity; establishing a community destination sign pilot program; providing
574.16for transit service on election day; modifying off-highway motorcycle provisions;
574.17creating accounts; providing for certain grants; providing for protection
574.18of pollinators; modifying the Water Law; modifying recycling provisions;
574.19providing for state parks and trails license plates; providing for establishment of
574.20Invasive Terrestrial Plants and Pests Center; providing for licensing commercial
574.21breeders of dogs and cats; providing for adoption of research dogs and cats;
574.22modifying provisions governing Health Department, Department of Human
574.23Services, health care, children and family services, Northstar Care for Children
574.24program, community first services and supports, continuing care, home and
574.25community-based services standards, public assistance programs simplification,
574.26and chemical and mental health services; making changes to hospital payment
574.27system; providing rate and grant increases for nursing facilities, ICFs/DD, and
574.28home and community-based services; requiring studies and reports; requiring
574.29rulemaking; amendingamending Minnesota Statutes 2012, sections 12.03,
574.30by adding subdivisions; 12.221, subdivision 4, by adding a subdivision;
574.3112A.02, subdivision 2, by adding subdivisions; 12A.03, subdivision 3; 12A.15,
574.32subdivision 1; 13.43, subdivision 16; 13.46, subdivision 4; 13.643, subdivision 6;
574.3313.681, by adding a subdivision; 13.84, subdivisions 5, 6; 15A.082, subdivision
574.344; 16A.125, subdivision 5; 16A.28, by adding a subdivision; 16C.16, subdivision
574.356a; 16C.19; 18B.01, by adding subdivisions; 18B.03, by adding a subdivision;
574.3618B.04; 84.788, subdivision 2; 85.053, subdivision 2; 85.34, subdivision 7;
574.3785A.02, subdivision 2; 103G.251; 103G.271, subdivisions 5, 6; 103G.281, by
574.38adding a subdivision; 115A.151, as amended; 115A.55, subdivision 4; 115A.551,
574.39subdivisions 1, 2a; 115A.557, subdivisions 2, 3; 115E.01, by adding subdivisions;
574.40115E.08, by adding subdivisions; 116J.423, subdivision 2; 116J.8731, subdivision
574.415; 116L.98; 119B.09, subdivision 9a; 122A.18, by adding a subdivision;
574.42122A.40, subdivision 13; 122A.41, subdivision 6; 122A.414, subdivision 2, as
574.43amended if enacted; 122A.415, subdivision 1; 123A.05, subdivision 2; 123A.64;
574.44123B.57, subdivision 6; 123B.71, subdivisions 8, 9; 123B.72, subdivisions 1, 3;
574.45124D.09, subdivisions 9, 13; 124D.111, by adding a subdivision; 124D.1158,
574.46subdivisions 3, 4; 124D.13, subdivisions 2, as amended, 4, 9, 13, by adding
574.47subdivisions; 124D.135, subdivisions 1, 3; 124D.16, subdivision 2; 124D.522;
574.48124D.531, subdivision 3; 124D.59, subdivision 2; 125A.76, subdivision 2;
574.49126C.10, subdivisions 25, 26; 127A.45, subdivisions 2, 3; 127A.49, subdivisions
574.502, 3; 129C.10, subdivision 3, by adding a subdivision; 136A.01, subdivision
574.512; 136A.1702; 136A.1785; 144.0724, as amended; 144.1501, subdivision
574.521; 144.551, subdivision 1; 144A.073, by adding a subdivision; 144A.33,
574.53subdivision 2; 148.624, by adding a subdivision; 148B.53, subdivision 3;
574.54150A.091, by adding a subdivision; 153.16, by adding a subdivision; 154.11, as
574.55amended; 155A.27, by adding a subdivision; 161.14, by adding a subdivision;
574.56165.15, subdivision 2; 169.011, by adding a subdivision; 169.06, subdivision
574.574, by adding a subdivision; 169.14, subdivision 5d, by adding a subdivision;
574.58169.305, subdivision 1; 169.826, by adding a subdivision; 169.8261, by adding a
575.1subdivision; 169.86, subdivision 5; 169.863, by adding a subdivision; 169.865,
575.2subdivisions 1, 2, by adding a subdivision; 169.866, subdivision 3, by adding a
575.3subdivision; 171.02, subdivision 3; 171.06, subdivision 2; 171.13, subdivision
575.41; 174.02, by adding a subdivision; 174.56, subdivision 1; 179.02, by adding
575.5a subdivision; 181A.07, by adding a subdivision; 216B.241, subdivision 1d;
575.6216C.145; 216C.146; 219.015, subdivisions 1, 2; 222.50, subdivision 7;
575.7245.466, by adding a subdivision; 245A.03, subdivision 2c; 245A.04, by
575.8adding a subdivision; 245C.03, by adding a subdivision; 245C.04, by adding
575.9a subdivision; 245C.05, subdivision 5; 245C.10, by adding a subdivision;
575.10245C.33, subdivisions 1, 4; 252.451, subdivision 2; 253B.066, subdivision 1;
575.11254B.04, subdivision 3; 254B.12; 256.01, by adding a subdivision; 256.9685,
575.12subdivisions 1, 1a; 256.9686, subdivision 2; 256.969, subdivisions 1, 2, 2b, 3a,
575.133b, 3c, 6a, 8, 8a, 9, 10, 12, 14, 17, 18, 25, 30, by adding subdivisions; 256.9752,
575.14subdivision 2; 256B.04, by adding a subdivision; 256B.0615, subdivision 3;
575.15256B.0624, subdivisions 2, 5, 6, 10; 256B.0625, subdivisions 18b, 18c, 18d, 18g,
575.1630, by adding a subdivision; 256B.0751, by adding a subdivision; 256B.199;
575.17256B.35, subdivision 1; 256B.441, by adding a subdivision; 256B.5012, by
575.18adding a subdivision; 256D.02, subdivisions 8, 12; 256D.05, subdivision 5;
575.19256D.06, subdivision 1; 256D.08, subdivision 1, by adding a subdivision;
575.20256D.10; 256D.405, subdivisions 1, 3; 256D.425, subdivision 2; 256I.03, by
575.21adding a subdivision; 256I.04, subdivision 1; 256I.05, subdivision 2; 256J.08,
575.22subdivisions 47, 57, 83, by adding a subdivision; 256J.10; 256J.21, subdivision 4;
575.23256J.30, subdivision 4; 256J.32, subdivision 1; 256J.33, subdivision 2; 256J.37,
575.24as amended; 256J.425, subdivisions 1, 7; 256J.49, subdivision 13; 256J.53,
575.25subdivisions 1, 2, 5; 256J.531; 256J.95, subdivisions 8, 9, 10; 257.85, subdivision
575.2611; 260B.198, subdivision 7; 260C.212, subdivision 1; 260C.515, subdivision
575.274; 260C.611; 268A.01, subdivision 14; 298.28, subdivisions 2, 7a, as added;
575.28299F.012, subdivision 2; 326.04, as amended; 326.10, by adding a subdivision;
575.29326.3382, by adding a subdivision; 326A.04, by adding a subdivision; 363A.44,
575.30subdivision 1, as added; 611A.06, by adding a subdivision; 645.241; Minnesota
575.31Statutes 2013 Supplement, sections 15A.082, subdivisions 1, 3; 16A.724,
575.32subdivision 3; 103I.205, subdivision 4; 116V.03; 123B.53, subdivisions 1, 5;
575.33123B.54; 123B.75, subdivision 5; 124D.11, subdivision 1; 124D.111, subdivision
575.341; 124D.165, subdivisions 3, 4, 5; 124D.531, subdivision 1; 124D.862,
575.35subdivisions 1, 2; 125A.0942; 125A.11, subdivision 1; 125A.76, subdivisions
575.361, 2a, 2b, 2c; 125A.79, subdivisions 1, 5, 8; 126C.05, subdivision 15; 126C.10,
575.37subdivisions 2, 2a, 2c, 2d, 24, 31; 126C.17, subdivisions 6, 7b, 9, 9a; 126C.40,
575.38subdivision 1; 126C.44; 126C.48, subdivision 8; 127A.47, subdivision 7;
575.39145.4716, subdivision 2; 148B.17, subdivision 2; 174.12, subdivision 2; 174.42,
575.40subdivision 2; 245.8251; 245A.03, subdivision 7; 245A.042, subdivision 3;
575.41245A.16, subdivision 1; 245C.08, subdivision 1; 245D.02, subdivisions 3, 4b, 8b,
575.4211, 15b, 23, 29, 34, 34a, by adding a subdivision; 245D.03, subdivisions 1, 2, 3,
575.43by adding a subdivision; 245D.04, subdivision 3; 245D.05, subdivisions 1, 1a, 1b,
575.442, 4, 5; 245D.051; 245D.06, subdivisions 1, 2, 4, 6, 7, 8; 245D.071, subdivisions
575.453, 4, 5; 245D.081, subdivision 2; 245D.09, subdivisions 3, 4a; 245D.091,
575.46subdivisions 2, 3, 4; 245D.10, subdivisions 3, 4; 245D.11, subdivision 2; 252.27,
575.47subdivision 2a; 256B.04, subdivision 21; 256B.055, subdivision 1; 256B.06,
575.48subdivision 4; 256B.0625, subdivisions 17, 18e; 256B.0949, subdivisions 4, 5, 11,
575.49by adding a subdivision; 256B.439, subdivisions 1, 7; 256B.441, subdivision 63;
575.50256B.4912, subdivision 1; 256B.4913, subdivision 4a; 256B.4914, subdivisions
575.512, 4, 5, 6, 7, 9, 10, 15; 256B.492; 256B.69, subdivision 34; 256B.766; 256B.767;
575.52256B.85, subdivisions 2, 3, 5, 6, 7, 8, 9, 10, 11, 12, 13, 15, 16, 17, 18, 23, 24, by
575.53adding subdivisions; 256J.21, subdivision 3; 256J.30, subdivision 9; 256N.02, by
575.54adding a subdivision; 256N.21, subdivision 2, by adding a subdivision; 256N.22,
575.55subdivisions 1, 2, 4, 6; 256N.23, subdivisions 1, 4; 256N.24, subdivisions 9,
575.5610; 256N.25, subdivisions 2, 3; 256N.26, subdivision 1; 256N.27, subdivision
575.574; 297A.815, subdivision 3; 326A.04, subdivision 5; Laws 2008, chapter 363,
575.58article 5, section 4, subdivision 7, as amended; Laws 2009, chapter 83, article
576.11, section 10, subdivision 7; Laws 2010, chapter 189, sections 15, subdivision
576.212; 26, subdivision 4; Laws 2012, chapter 247, article 4, section 47; Laws 2012,
576.3chapter 263, section 1; Laws 2012, chapter 287, article 2, sections 1; 3; Laws
576.42012, First Special Session chapter 1, article 1, section 28; Laws 2013, chapter 1,
576.5section 6, as amended; Laws 2013, chapter 85, article 1, sections 3, subdivisions
576.62, 5, 6; 4, subdivisions 1, 2; 5; 13, subdivision 5; Laws 2013, chapter 86, article
576.71, sections 12, subdivisions 1, 3, as amended; 13; Laws 2013, chapter 108, article
576.81, section 24; article 7, sections 14; 49; article 14, sections 2, subdivisions 1, 3,
576.94, as amended, 6, as amended; 3, subdivisions 1, 4; 4, subdivision 8; 12; Laws
576.102013, chapter 114, article 3, sections 3, subdivision 6; 4, subdivision 3; article 4,
576.11section 47; Laws 2013, chapter 116, article 1, section 58, subdivisions 2, 3, 4,
576.125, 6, 7, 11; article 3, section 37, subdivisions 3, 4, 5, 6, 8, 15, 18, 20; article 4,
576.13section 9, subdivision 2; article 5, section 31, subdivisions 2, 3, 4, 5, 8; article 6,
576.14section 12, subdivisions 2, 3, 4, 6; article 7, section 21, subdivisions 2, 3, 4, 6, 7,
576.159; article 8, section 5, subdivisions 2, 3, 4, 8, 9, 10, 11, 14; article 9, sections 1,
576.16subdivision 2; 2; Laws 2013, chapter 117, article 1, sections 3, subdivisions 2, 3,
576.176; 4; 5, subdivisions 2, 3, 4; Laws 2013, chapter 143, article 11, section 10; Laws
576.182014, chapter 235, section 43; Laws 2014, chapter 240, section 26; 2014 H.F.
576.19No. 2180, section 11, if enacted; proposing coding for new law in Minnesota
576.20Statutes, chapters 3; 5; 18B; 84; 85; 87A; 103G; 115E; 116J; 123A; 123B; 124D;
576.21129C; 135A; 136A; 144; 144A; 145; 148; 168; 171; 197; 219; 268A; 299A; 347;
576.22473; proposing coding for new law as Minnesota Statutes, chapters 12B; 256P;
576.23repealing Minnesota Statutes 2012, sections 115A.551, subdivision 2; 116J.997;
576.24123B.71, subdivisions 1, 4; 256.969, subdivisions 2c, 8b, 9a, 9b, 11, 13, 20, 21,
576.2522, 26, 27, 28; 256.9695, subdivisions 3, 4; 256D.06, subdivision 1b; 256D.08,
576.26subdivision 2; 256D.405, subdivisions 1a, 2; 256J.08, subdivisions 42, 55a, 82a;
576.27256J.20; 256J.24, subdivision 9; 256J.32, subdivisions 2, 3, 4, 5a, 6, 7, 7a, 8;
576.28Minnesota Statutes 2013 Supplement, sections 256B.0625, subdivision 18f;
576.29256J.08, subdivision 24; 256N.26, subdivision 7; Laws 2014, chapter 272, article
576.301, section 22; article 3, section 32."

577.1	We request the adoption of this report and repassage of the bill.
577.2	House Conferees:
577.3	.....		.....
577.4	Lyndon Carlson Sr.		Thomas Huntley
577.5	.....		.....
577.6	Tim Mahoney		Paul Marquart
577.7	.....
577.8	Jean Wagenius
577.9	Senate Conferees:
577.10	.....		.....
577.11	Richard J. Cohen		David J. Tomassoni
577.12	.....		.....
577.13	Tony Lourey		Charles W. Wiger
577.14	.....
577.15	Terri E. Bonoff