Minnesota Legislature
HF 351
1st Unofficial Engrossment - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am
KEY: stricken = removed, old language.
underscored = added, new language.
1.1 A bill for an act 1.2 relating to the financing of state government; 1.3 changing appropriations to reflect forecast changes; 1.4 reducing appropriations for the fiscal years ending 1.5 June 30, 2002 and 2003; canceling balances and 1.6 appropriations and transferring balances to the 1.7 general fund in order to avert a deficit; eliminating 1.8 certain adjustments for inflation in future fiscal 1.9 years; refinancing certain trunk highway projects 1.10 through the sale of trunk highway bonds; continuing 1.11 the acceleration of June sales tax collections; 1.12 eliminating income tax reciprocity with Wisconsin; 1.13 transferring responsibility for auditing tax increment 1.14 financing districts from the state auditor to 1.15 independent auditors; providing an early retirement 1.16 incentive for certain employees; authorizing the sale 1.17 of state bonds; changing certain fees; appropriating 1.18 money; amending Minnesota Statutes 2000, sections 1.19 15.0591, subdivision 2; 16A.103, subdivisions 1a, 1b; 1.20 16A.152, subdivision 1; 16A.40; 41A.09, subdivision 1.21 3a; 85A.02, subdivision 17; 120B.13, subdivision 3; 1.22 124D.11, by adding a subdivision; 124D.385, 1.23 subdivision 2; 126C.10, subdivision 5; 136A.08, 1.24 subdivision 3; 144.395, subdivision 1; 145.9266, 1.25 subdivision 3; 168A.40, subdivision 4; 251.013, 1.26 subdivision 1; 256.9657, subdivision 1; 256.9753, 1.27 subdivision 3; 256B.059, subdivisions 1, 3, 5; 1.28 256B.0595, subdivision 4; 256B.19, subdivisions 1, 1d; 1.29 256B.32; 256B.431, subdivision 23, by adding a 1.30 subdivision; 256B.69, subdivision 5a, by adding 1.31 subdivisions; 256L.07, subdivisions 1, 3; 256L.12, 1.32 subdivision 9; 256L.15, subdivision 3; 290.081; 1.33 357.021, subdivision 2; 469.175, subdivisions 5, 6; 1.34 469.1771, subdivision 2a; 490.123, by adding a 1.35 subdivision; Minnesota Statutes 2001 Supplement, 1.36 sections 16A.152, subdivisions 1a, 2; 16B.65, 1.37 subdivisions 1, 5a; 62J.692, subdivision 7; 62J.694, 1.38 subdivision 1; 93.2235, subdivision 1; 124D.11, 1.39 subdivision 4; 136A.121, subdivision 6; 136G.03, 1.40 subdivision 25; 171.29, subdivision 2; 242.192; 1.41 244.054, subdivision 2; 256.01, subdivision 2; 1.42 256.969, subdivision 3a; 256B.056, subdivision 3; 1.43 256B.057, subdivision 9; 256B.0595, subdivisions 1, 2; 1.44 256B.0625, subdivision 13; 256B.437, subdivision 2; 1.45 256B.439, subdivisions 1, 4; 256B.69, subdivisions 5b, 1.46 5c; 256B.75; 256I.05, subdivision 1e; 256L.15, 2.1 subdivision 1; 289A.20, subdivision 4; 299A.75, 2.2 subdivision 1; 357.021, subdivision 7; 469.1771, 2.3 subdivision 1; Laws 1998, chapter 404, section 23, 2.4 subdivision 6; Laws 1999, chapter 152, section 2; Laws 2.5 1999, chapter 152, section 4, as amended; Laws 2001, 2.6 First Special Session chapter 3, article 1, section 2.7 17, subdivisions 3, 7, 9; Laws 2001, First Special 2.8 Session chapter 3, article 2, section 15, subdivision 2.9 3; Laws 2001, First Special Session chapter 4, article 2.10 3, section 1; Laws 2001, First Special Session chapter 2.11 4, article 3, section 2, subdivision 1; Laws 2001, 2.12 First Special Session chapter 4, article 3, section 3; 2.13 Laws 2001, First Special Session chapter 5, article 2, 2.14 section 29, subdivision 2; Laws 2001, First Special 2.15 Session chapter 6, article 1, section 54, subdivisions 2.16 2, 4, 5, 6, 7; Laws 2001, First Special Session 2.17 chapter 6, article 2, section 77, subdivisions 2, 4, 2.18 5, 8, 11, 15, 18; Laws 2001, First Special Session 2.19 chapter 6, article 3, section 21, subdivisions 2, 3, 2.20 4, 5, 7; Laws 2001, First Special Session chapter 6, 2.21 article 4, section 27, subdivisions 2, 3, 5, 6; Laws 2.22 2001, First Special Session chapter 6, article 5, 2.23 section 13, subdivision 2; Laws 2001, First Special 2.24 Session chapter 8, article 4, section 11; Laws 2001, 2.25 First Special Session chapter 9, article 5, section 2.26 35; Laws 2001, First Special Session chapter 9, 2.27 article 13, section 25, subdivision 3; repealing 2.28 Minnesota Statutes 2000, sections 103B.3369, 2.29 subdivisions 7, 8; 103B.351; 103F.461; 103G.2373; 2.30 144.6905; 145.475; 256.9731; 256B.0916, subdivision 1; 2.31 256K.01; 256K.015; 256K.02; 256K.03, as amended; 2.32 256K.04; 256K.05; 256K.06; 256K.08; 256K.09; 469.1771, 2.33 subdivision 2b; 490.123, subdivision 1d; Minnesota 2.34 Statutes 2001 Supplement, sections 4.50; 16A.1523; 2.35 256B.0625, subdivision 5a; 256K.07; 256L.03, 2.36 subdivision 5a; 469.177, subdivision 11; 469.1799, 2.37 subdivisions 1, 3; Laws 2000, chapter 447, section 25; 2.38 Laws 2001, First Special Session chapter 5, article 2.39 20, section 22; Laws 2001, First Special Session 2.40 chapter 9, article 13, section 22; Laws 2001, First 2.41 Special Session chapter 9, article 13, section 25, 2.42 subdivisions 1, 2, 4, 5, 6, 7; Laws 2001, First 2.43 Special Session chapter 9, article 13, section 26; 2.44 Laws 2001, First Special Session chapter 9, article 2.45 13, section 27; Laws 2001, First Special Session 2.46 chapter 9, article 13, section 28; Minnesota Rules, 2.47 parts 8405.0100; 8405.0110; 8405.0120; 8405.0130; 2.48 8405.0140; 8405.0150; 8405.0160; 8405.0170; 8405.0180; 2.49 8405.0190; 8405.0200; 8405.0210; 8405.0220; 8405.0230. 2.50 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 2.51 ARTICLE 1 2.52 SUMMARY 2.53 (General Fund Only, After Forecast Adjustments) 2.54 BIENNIAL 2.55 2002 2003 TOTAL 2.56 APPROPRIATIONS 2.57 E-12 Education $ (6,455,000) $ (8,456,000) $ (14,911,000) 2.58 Higher Education (50,000,000) (50,000,000) 2.59 Health and 2.60 Human Services (464,000) (32,149,000) (32,613,000) 2.61 Corrections (5,200,000) (9,778,000) (14,978,000) 3.1 Transportation 3.2 and Public Safety (2,534,000) (2,818,000) (5,352,000) 3.3 Environment and 3.4 Agriculture (1,198,000) (8,197,000) (9,395,000) 3.5 State Government 14,945,000 (23,520,000) (8,575,000) 3.6 Revenue Department (7,500,000) (7,500,000) (15,000,000) 3.7 SUBTOTAL $ (8,406,000) $ (142,418,000)$ (150,424,000) 3.8 CANCELLATIONS $(1,574,982,000) $ -0- $(1,574,982,000) 3.9 TRANSFERS IN $ ( 96,288,000) $ (283,391,000)$ (379,679,000) 3.10 TOTAL $(1,679,676,000) $ (425,809,000)$(2,105,485,000) 3.11 ARTICLE 2 3.12 E-12 EDUCATION FORECAST CHANGES 3.13 Section 1. Laws 2001, First Special Session chapter 3, 3.14 article 1, section 17, subdivision 3, is amended to read: 3.15 Subd. 3. [EARLY CHILDHOOD FAMILY EDUCATION AID.] For early 3.16 childhood family education aid according to Minnesota Statutes, 3.17 section 124D.135: 3.18$20,758,000$20,725,000 ..... 2002 3.19$20,663,000$20,624,000 ..... 2003 3.20 The 2002 appropriation includes $2,036,000 for 2001 and 3.21$18,722,000$18,689,000 for 2002. 3.22 The 2003 appropriation includes$2,081,000$2,077,000 for 3.23 2002 and$18,582,000$18,547,000 for 2003. 3.24 Any balance in the first year does not cancel but is 3.25 available in the second year. 3.26[EFFECTIVE DATE.] This section is effective the day 3.27 following final enactment. 3.28 Sec. 2. Laws 2001, First Special Session chapter 3, 3.29 article 1, section 17, subdivision 7, is amended to read: 3.30 Subd. 7. [SCHOOL AGE CARE AID.] For school age care aid 3.31 according to Minnesota Statutes, section 124D.22: 3.32 $221,000 ..... 2002 3.33$133,000$100,000 ..... 2003 3.34 The 2002 appropriation includes $30,000 for 2001 and 3.35 $191,000 for 2002. 3.36 The 2003 appropriation includes $21,000 for 2002 and 3.37$112,000$79,000 for 2003. 4.1 Any balance in the first year does not cancel but is 4.2 available in the second year. 4.3[EFFECTIVE DATE.] This section is effective the day 4.4 following final enactment. 4.5 Sec. 3. Laws 2001, First Special Session chapter 3, 4.6 article 1, section 17, subdivision 9, is amended to read: 4.7 Subd. 9. [MFIP CHILD CARE.] For child care assistance 4.8 according to Minnesota Statutes, section 119B.05: 4.9$82,253,000$69,201,000 ..... 2002 4.10$78,606,000$77,122,000 ..... 2003 4.11 Any balance in the first year does not cancel but is 4.12 available in the second year. 4.13[EFFECTIVE DATE.] This section is effective the day 4.14 following final enactment. 4.15 Sec. 4. Laws 2001, First Special Session chapter 3, 4.16 article 2, section 15, subdivision 3, is amended to read: 4.17 Subd. 3. [COMMUNITY EDUCATION AID.] For community 4.18 education aid according to Minnesota Statutes, section 124D.20: 4.19$14,209,000$14,190,000 ..... 2002 4.20$13,111,000$ 8,186,000 ..... 2003 4.21 The 2002 appropriation includes $1,528,000 for 2001 and 4.22$12,681,000$12,662,000 for 2002. 4.23 The 2003 appropriation includes$1,409,000$1,407,000 for 4.24 2002 and$11,702,000$6,779,000 for 2003. 4.25 Any balance in the first year does not cancel but is 4.26 available in the second year. 4.27[EFFECTIVE DATE.] This section is effective the day 4.28 following final enactment. 4.29 Sec. 5. Laws 2001, First Special Session chapter 5, 4.30 article 2, section 29, subdivision 2, is amended to read: 4.31 Subd. 2. [REFERENDUM TAX BASE REPLACEMENT AID.] For 4.32 referendum tax base replacement aid according to Minnesota 4.33 Statutes, section 126C.17, subdivision 7a: 4.34$7,851,000$7,616,000 ..... 2003 4.35 The 2003 appropriation includes $0 for 2002 and$7,851,0004.36 $7,616,000 for 2003. 5.1[EFFECTIVE DATE.] This section is effective the day 5.2 following final enactment. 5.3 Sec. 6. Laws 2001, First Special Session chapter 6, 5.4 article 1, section 54, subdivision 2, is amended to read: 5.5 Subd. 2. [GENERAL AND SUPPLEMENTAL EDUCATION AID.] For 5.6 general and supplemental education aid: 5.7$3,364,596,000$3,404,787,000 ..... 2002 5.8$3,506,910,000$4,982,334,000 ..... 2003 5.9 The 2002 appropriation includes $318,932,000 for 2001 and 5.10$3,045,664,000$3,085,855,000 for 2002. 5.11 The 2003 appropriation includes$338,407,000$342,873,000 5.12 for 2002 and$3,168,503,000$4,639,461,000 for 2003. 5.13[EFFECTIVE DATE.] This section is effective the day 5.14 following final enactment. 5.15 Sec. 7. Laws 2001, First Special Session chapter 6, 5.16 article 1, section 54, subdivision 4, is amended to read: 5.17 Subd. 4. [ABATEMENT AID.] For abatement aid according to 5.18 Minnesota Statutes, section 127A.49: 5.19$7,098,000$5,698,000 ..... 2002 5.20$7,692,000$2,990,000 ..... 2003 5.21 The 2002 appropriation includes $640,000 for 2001 and 5.22$6,458,000$5,058,000 for 2002. 5.23 The 2003 appropriation includes$717,000$562,000 for 2002 5.24 and$6,975,000$2,428,000 for 2003. 5.25[EFFECTIVE DATE.] This section is effective the day 5.26 following final enactment. 5.27 Sec. 8. Laws 2001, First Special Session chapter 6, 5.28 article 1, section 54, subdivision 5, is amended to read: 5.29 Subd. 5. [NONPUBLIC PUPIL AID.] For nonpublic pupil 5.30 education aid according to Minnesota Statutes, sections 123.79 5.31 and 123B.40 to 123B.43: 5.32$14,099,000$14,441,000 ..... 2002 5.33$16,472,000$15,977,000 ..... 2003 5.34 The 2002 appropriation includes $1,330,000 for 2001 and 5.35$12,769,000$13,111,000 for 2002. 5.36 The 2003 appropriation includes$1,419,000$1,457,000 for 6.1 2002 and$15,053,000$14,520,000 for 2003. 6.2[EFFECTIVE DATE.] This section is effective the day 6.3 following final enactment. 6.4 Sec. 9. Laws 2001, First Special Session chapter 6, 6.5 article 1, section 54, subdivision 6, is amended to read: 6.6 Subd. 6. [NONPUBLIC PUPIL TRANSPORTATION.] For nonpublic 6.7 pupil transportation aid under Minnesota Statutes, section 6.8 123B.92, subdivision 9: 6.9$20,488,000$20,635,000 ..... 2002 6.10$24,802,000$25,347,000 ..... 2003 6.11 The 2002 appropriation includes $2,000,000 for 2001 and 6.12$18,488,000$18,635,000 for 2002. 6.13 The 2003 appropriation includes$2,054,000$2,071,000 for 6.14 2002 and$22,748,000$23,276,000 for 2003. 6.15[EFFECTIVE DATE.] This section is effective the day 6.16 following final enactment. 6.17 Sec. 10. Laws 2001, First Special Session chapter 6, 6.18 article 1, section 54, subdivision 7, is amended to read: 6.19 Subd. 7. [CONSOLIDATION TRANSITION AID.] For districts 6.20 consolidating under Minnesota Statutes, section 123A.485: 6.21$675,000$531,000 ..... 2002 6.22$669,000$736,000 ..... 2003 6.23 The 2002 appropriation includes $44,000 for 2001 and 6.24$631,000$487,000 for 2002. 6.25 The 2003 appropriation includes$70,000$54,000 for 2002 6.26 and$599,000$682,000 for 2003. 6.27 Any balance in the first year does not cancel but is 6.28 available in the second year. 6.29[EFFECTIVE DATE.] This section is effective the day 6.30 following final enactment. 6.31 Sec. 11. Laws 2001, First Special Session chapter 6, 6.32 article 2, section 77, subdivision 4, is amended to read: 6.33 Subd. 4. [CHARTER SCHOOL BUILDING LEASE AID.] For building 6.34 lease aid under Minnesota Statutes, section 124D.11, subdivision 6.35 4: 6.36$16,554,000$12,323,000 ..... 2002 7.1$25,176,000$15,330,000 ..... 2003 7.2 The 2002 appropriation includes $1,114,000 for 2001 and 7.3$15,440,000$11,209,000 for 2002. 7.4 The 2003 appropriation includes$1,715,000$1,245,000 for 7.5 2002 and$23,461,000$14,085,000 for 2003. 7.6[EFFECTIVE DATE.] This section is effective the day 7.7 following final enactment. 7.8 Sec. 12. Laws 2001, First Special Session chapter 6, 7.9 article 2, section 77, subdivision 5, is amended to read: 7.10 Subd. 5. [CHARTER SCHOOL STARTUP GRANTS.] For charter 7.11 school startup cost aid under Minnesota Statutes, section 7.12 124D.11: 7.13$2,738,000$2,090,000 ..... 2002 7.14$3,143,000$1,549,000 ..... 2003 7.15 The 2002 appropriation includes $273,000 for 2001 and 7.16$2,465,000$1,817,000 for 2002. 7.17 The 2003 appropriation includes$274,000$202,000 for 2002 7.18 and$2,869,000$1,347,000 for 2003. 7.19[EFFECTIVE DATE.] This section is effective the day 7.20 following final enactment. 7.21 Sec. 13. Laws 2001, First Special Session chapter 6, 7.22 article 2, section 77, subdivision 8, is amended to read: 7.23 Subd. 8. [INTEGRATION AID.] For integration aid: 7.24$65,478,000$63,421,000 ..... 2002 7.25$51,996,000$53,890,000 ..... 2003 7.26 The 2002 appropriation includes $5,729,000 for 2001 and 7.27$59,749,000$57,692,000 for 2002. 7.28 The 2003 appropriation includes$6,639,000$6,410,000 for 7.29 2002 and$45,357,000$47,480,000 for 2003. 7.30[EFFECTIVE DATE.] This section is effective the day 7.31 following final enactment. 7.32 Sec. 14. Laws 2001, First Special Session chapter 6, 7.33 article 2, section 77, subdivision 11, is amended to read: 7.34 Subd. 11. [MAGNET SCHOOL STARTUP AID.] For magnet school 7.35 startup aid under Minnesota Statutes, section 124D.88: 7.36$482,000$475,000 ..... 2002 8.1$326,000$298,000 ..... 2003 8.2 The 2002 appropriation includes $25,000 for 2001 and 8.3$457,000$450,000 for 2002. 8.4 The 2003 appropriation includes$51,000$50,000 for 2002 8.5 and$275,000$248,000 for 2003. 8.6[EFFECTIVE DATE.] This section is effective the day 8.7 following final enactment. 8.8 Sec. 15. Laws 2001, First Special Session chapter 6, 8.9 article 2, section 77, subdivision 15, is amended to read: 8.10 Subd. 15. [SUCCESS FOR THE FUTURE.] For American Indian 8.11 success for the future grants according to Minnesota Statutes, 8.12 section 124D.81: 8.13$2,047,000$1,924,000 ..... 2002 8.14 $2,137,000 ..... 2003 8.15 The 2002 appropriation includes $0 for 2001 and$2,047,0008.16 $1,924,000 for 2002. 8.17 The 2003 appropriation includes$255,000$214,000 for 2002 8.18 and$2,132,000$1,923,000 for 2003. 8.19[EFFECTIVE DATE.] This section is effective the day 8.20 following final enactment. 8.21 Sec. 16. Laws 2001, First Special Session chapter 6, 8.22 article 2, section 77, subdivision 18, is amended to read: 8.23 Subd. 18. [TRIBAL CONTRACT SCHOOLS.] For tribal contract 8.24 school aid under Minnesota Statutes, section 124D.83: 8.25$2,520,000$2,304,000 ..... 2002 8.26$2,767,000$2,408,000 ..... 2003 8.27 The 2002 appropriation includes $192,000 for 2001 and 8.28$2,328,000$2,112,000 for 2002. 8.29 The 2003 appropriation includes$258,000$235,000 for 2002 8.30 and$2,509,000$2,173,000 for 2003. 8.31[EFFECTIVE DATE.] This section is effective the day 8.32 following final enactment. 8.33 Sec. 17. Laws 2001, First Special Session chapter 6, 8.34 article 3, section 21, subdivision 2, is amended to read: 8.35 Subd. 2. [SPECIAL EDUCATION AID.] For special education 8.36 aid according to Minnesota Statutes, section 125A.75: 9.1$507,448,000$507,841,000 ..... 2002 9.2$531,481,000$532,282,000 ..... 2003 9.3 The 2002 appropriation includes $47,400,000 for 2001 and 9.4$460,048,000$460,441,000 for 2002. 9.5 The 2003 appropriation includes$51,116,000$51,160,000 for 9.6 2002 and$480,365,000$481,122,000 for 2003. 9.7[EFFECTIVE DATE.] This section is effective the day 9.8 following final enactment. 9.9 Sec. 18. Laws 2001, First Special Session chapter 6, 9.10 article 3, section 21, subdivision 3, is amended to read: 9.11 Subd. 3. [AID FOR CHILDREN WITH A DISABILITY.] For aid 9.12 according to Minnesota Statutes, section 125A.75, subdivision 3, 9.13 for children with a disability placed in residential facilities 9.14 within the district boundaries for whom no district of residence 9.15 can be determined: 9.16$1,877,000$1,358,000 ..... 2002 9.17$2,033,000$3,161,000 ..... 2003 9.18 If the appropriation for either year is insufficient, the 9.19 appropriation for the other year is available. 9.20 Any balance in the first year does not cancel but is 9.21 available in the second year. 9.22[EFFECTIVE DATE.] This section is effective the day 9.23 following final enactment. 9.24 Sec. 19. Laws 2001, First Special Session chapter 6, 9.25 article 3, section 21, subdivision 4, is amended to read: 9.26 Subd. 4. [TRAVEL FOR HOME-BASED SERVICES.] For aid for 9.27 teacher travel for home-based services according to Minnesota 9.28 Statutes, section 125A.75, subdivision 1: 9.29$135,000$143,000 ..... 2002 9.30$138,000$148,000 ..... 2003 9.31 The 2002 appropriation includes $13,000 for 2001 and 9.32$122,000$130,000 for 2002. 9.33 The 2003 appropriation includes$13,000$14,000 for 2002 9.34 and$125,000$134,000 for 2003. 9.35[EFFECTIVE DATE.] This section is effective the day 9.36 following final enactment. 10.1 Sec. 20. Laws 2001, First Special Session chapter 6, 10.2 article 3, section 21, subdivision 5, is amended to read: 10.3 Subd. 5. [SPECIAL EDUCATION EXCESS COST AID.] For excess 10.4 cost aid: 10.5$102,665,000$103,061,000 ..... 2002 10.6$104,773,000$105,289,000 ..... 2003 10.7 The 2002 appropriation includes $9,889,000 for 2001 and 10.8$92,776,000$93,172,000 for 2002. 10.9 The 2003 appropriation includes$10,308,000$10,352,000 for 10.10 2002 and$94,465,000$94,937,000 for 2003. 10.11[EFFECTIVE DATE.] This section is effective the day 10.12 following final enactment. 10.13 Sec. 21. Laws 2001, First Special Session chapter 6, 10.14 article 3, section 21, subdivision 7, is amended to read: 10.15 Subd. 7. [TRANSITION PROGRAMS; STUDENTS WITH 10.16 DISABILITIES.] For aid for transition programs for pupils with 10.17 disabilities according to Minnesota Statutes, section 124D.454: 10.18$8,954,000$8,960,000 ..... 2002 10.19$8,939,000$8,952,000 ..... 2003 10.20 The 2002 appropriation includes $896,000 for 2001 and 10.21$8,058,000$8,064,000 for 2002. 10.22 The 2003 appropriation includes$895,000$896,000 for 2002 10.23 and$8,044,000$8,056,000 for 2003. 10.24[EFFECTIVE DATE.] This section is effective the day 10.25 following final enactment. 10.26 Sec. 22. Laws 2001, First Special Session chapter 6, 10.27 article 4, section 27, subdivision 2, is amended to read: 10.28 Subd. 2. [HEALTH AND SAFETY AID.] For health and safety 10.29 aid according to Minnesota Statutes, section 123B.57, 10.30 subdivision 5: 10.31$14,980,000$13,630,000 ..... 2002 10.32$14,550,000$10,800,000 ..... 2003 10.33 The 2002 appropriation includes $1,480,000 for 2001 and 10.34$13,500,000$12,150,000 for 2002. 10.35 The 2003 appropriation includes$1,500,000$1,350,000 for 10.36 2002 and$13,050,000$9,450,000 for 2003. 11.1[EFFECTIVE DATE.] This section is effective the day 11.2 following final enactment. 11.3 Sec. 23. Laws 2001, First Special Session chapter 6, 11.4 article 4, section 27, subdivision 3, is amended to read: 11.5 Subd. 3. [DEBT SERVICE AID.] For debt service aid 11.6 according to Minnesota Statutes, section 123B.53, subdivision 6: 11.7$25,989,000$25,987,000 ..... 2002 11.8$35,523,000$31,892,000 ..... 2003 11.9 The 2002 appropriation includes $2,890,000 for 2001 and 11.10$23,099,000$23,097,000 for 2002. 11.11 The 2003 appropriation includes$2,567,000$2,566,000 for 11.12 2002 and$32,956,000$29,326,000 for 2003. 11.13[EFFECTIVE DATE.] This section is effective the day 11.14 following final enactment. 11.15 Sec. 24. Laws 2001, First Special Session chapter 6, 11.16 article 4, section 27, subdivision 5, is amended to read: 11.17 Subd. 5. [ALTERNATIVE FACILITIES BONDING AID.] For 11.18 alternative facilities bonding aid, according to Minnesota 11.19 Statutes, section 123B.59, subdivision 1: 11.20$19,279,000$19,280,000 ..... 2002 11.21 $19,287,000 ..... 2003 11.22 The 2002 appropriation includes $1,921,000 for 2001 and 11.23$17,358,000$17,359,000 for 2002. 11.24 The 2003 appropriation includes $1,929,000 for 2002 and 11.25 $17,358,000 for 2003. 11.26[EFFECTIVE DATE.] This section is effective the day 11.27 following final enactment. 11.28 Sec. 25. Laws 2001, First Special Session chapter 6, 11.29 article 4, section 27, subdivision 6, is amended to read: 11.30 Subd. 6. [TELECOMMUNICATION ACCESS COST REVENUE.] For 11.31 telecommunication access cost revenue under Minnesota Statutes, 11.32 section 125B.25: 11.33$15,387,000$14,800,000 ..... 2002 11.34$ 1,565,000$ 1,500,000 ..... 2003 11.35 The 2002 appropriation includes $1,300,000 for 2001 and 11.36$14,087,000$13,500,000 for 2002. 12.1 The 2003 appropriation includes$1,565,000$1,500,000 for 12.2 2002 and $0 for 2003. 12.3 If the appropriation amount is insufficient, the 12.4 commissioner shall reduce the reimbursement rate in Minnesota 12.5 Statutes, section 125B.25, subdivisions 5 and 6, and the revenue 12.6 for the 2001-2002 school year shall be prorated. The 12.7 reimbursement rate shall not exceed 100 percent. 12.8[EFFECTIVE DATE.] This section is effective the day 12.9 following final enactment. 12.10 Sec. 26. Laws 2001, First Special Session chapter 6, 12.11 article 5, section 13, subdivision 2, is amended to read: 12.12 Subd. 2. [SCHOOL LUNCH.] (a) For school lunch aid 12.13 according to Minnesota Statutes, section 124D.111, and Code of 12.14 Federal Regulations, title 7, section 210.17, and for school 12.15 milk aid according to Minnesota Statutes, section 124D.118: 12.16 $8,710,000 ..... 2002 12.17$8,950,000$8,500,000 ..... 2003 12.18 (b) Not more than $800,000 of the amount appropriated each 12.19 year may be used for school milk aid. 12.20[EFFECTIVE DATE.] This section is effective the day 12.21 following final enactment. 12.22 ARTICLE 3 12.23 E-12 EDUCATION APPROPRIATIONS 12.24 Section 1. [E-12 EDUCATION APPROPRIATIONS.] 12.25 The dollar amounts in the columns marked "APPROPRIATIONS" 12.26 are added to or, if shown in parentheses, are subtracted from 12.27 the appropriations in Laws 2001, First Special Session chapter 12.28 6, articles 2 and 7, or other law to the specified agencies. 12.29 The appropriations are from the general fund or any other named 12.30 fund and are available for the fiscal years indicated for each 12.31 purpose. The figure 2002 or 2003 means that the addition to or 12.32 subtraction from the appropriations listed under the figure are 12.33 for the fiscal year ending June 30, 2002, or June 30, 2003, 12.34 respectively. 12.35 SUMMARY 12.36 (General Fund Only) 13.1 2002 2003 TOTAL 13.2 APPROPRIATIONS $(6,455,000) $(8,456,000) $(14,911,000) 13.3 CANCELLATIONS $(89,000) -0- $(89,000) 13.4 TOTAL $(6,544,000) $(8,456,000) $(15,000,000) 13.5 APPROPRIATIONS 13.6 Available for the Year 13.7 Ending June 30 13.8 2002 2003 13.9 Sec. 2. CHILDREN, FAMILIES, AND 13.10 LEARNING 13.11 (a) Charter school building 13.12 lease aid -0- (4,835,000) 13.13 (b) School evaluation services (2,500,000) -0- 13.14 (c) Alternative teacher 13.15 compensation (1,000,000) (1,000,000) 13.16 (d) Examination fees; teacher 13.17 training and support programs; 13.18 advanced placement and international 13.19 baccalaureate programs -0- (1,550,000) 13.20 (e) Excess charter school 13.21 building lease aid -0- 2,500,000 13.22 (f) Department of children, 13.23 families, and learning (2,955,000) (3,571,000) 13.24[EFFECTIVE DATE.] This section is effective the day 13.25 following final enactment. 13.26 Sec. 3. Minnesota Statutes 2000, section 120B.13, 13.27 subdivision 3, is amended to read: 13.28 Subd. 3. [SUBSIDY FOR EXAMINATION FEES.] The state may pay 13.29 all or part of the fee for advanced placement or international 13.30 baccalaureate examinations for pupils of low-income families in 13.31 public and nonpublic schools. The commissioner shall adopt a 13.32 schedule for fee subsidies that may allow payment of the entire 13.33 fee for low-income families, as defined by the 13.34 commissioner.The commissioner may also determine the13.35circumstances under which the fee is subsidized, in whole or in13.36part.The commissioner shall determine procedures for state 13.37 payments of fees. 13.38 Sec. 4. Minnesota Statutes 2001 Supplement, section 13.39 124D.11, subdivision 4, is amended to read: 13.40 Subd. 4. [BUILDING LEASE AID.] (a) When a charter school 13.41 finds it economically advantageous to rent or lease a building 14.1 or land for any instructional purposes and it determines that 14.2 the total operating capital revenue under section 126C.10, 14.3 subdivision 13, is insufficient for this purpose, it may apply 14.4 to the commissioner for building lease aid for this purpose. 14.5 The commissioner must review and either approve or deny a lease 14.6 aid application using the following criteria: 14.7 (1) the reasonableness of the price based on current market 14.8 values; 14.9 (2) the extent to which the lease conforms to applicable 14.10 state laws and rules; and 14.11 (3) the appropriateness of the proposed lease in the 14.12 context of the space needs and financial circumstances of the 14.13 charter school. 14.14 (b) A charter school must not use the building lease aid it 14.15 receives for custodial, maintenance service, utility, or other 14.16 operating costs. 14.17 (c) For fiscal year 2002, the amount of building lease aid 14.18 per pupil unit served for a charter schoolfor any yearshall 14.19 not exceed the lesser of(a)(1) 90 percent of the approved cost 14.20 or(b)(2) the product of the pupil units served for the current 14.21 school year times $1,500. 14.22 (d) For fiscal year 2003 and later, the amount of building 14.23 lease aid per pupil unit served for a charter school shall not 14.24 exceed the lesser of (1) 90 percent of the approved cost or (2) 14.25 the product of the pupil units served for the current school 14.26 year times the greater of $750 or the sum of the state average 14.27 school district revenue per adjusted pupil unit in the second 14.28 prior fiscal year for debt service equalization aid according to 14.29 section 123B.53, alternative facilities aid according to section 14.30 123B.59, health and safety revenue according to 123B.57, 14.31 alternative facilities levies according to 123B.59, capital 14.32 project referendum levies according to section 123B.63, lease 14.33 levies according to section 126C.40, subdivision 1, and net debt 14.34 service levies according to section 123B.53 and chapter 475, 14.35 excluding net debt service levies for equipment bonds according 14.36 to section 123B.61, net debt service levies for facilities bonds 15.1 according to section 123B.62, and debt service abatement levies 15.2 according to section 126C.46. 15.3 Sec. 5. Minnesota Statutes 2000, section 124D.11, is 15.4 amended by adding a subdivision to read: 15.5 Subd. 4a. [EXCESS BUILDING LEASE AID.] Charter schools 15.6 that received building lease aid in fiscal year 2002 may apply 15.7 to the commissioner for excess building lease aid in addition to 15.8 the lease aid determined in subdivision 4. The commissioner may 15.9 award up to an additional $750 per pupil unit served in excess 15.10 building lease aid for charter schools that demonstrate that 15.11 their lease agreement is relatively high because of certain cost 15.12 factors that are unique to the charter school or the 15.13 geographical area in which the charter school is located. The 15.14 commissioner shall establish procedures and criteria, in 15.15 addition to the criteria established in subdivision 4, for 15.16 reviewing and awarding excess building lease aid according to 15.17 this subdivision. The total amount awarded for all charter 15.18 schools under this subdivision shall not exceed $2,500,000 for 15.19 each fiscal year. 15.20 Sec. 6. Minnesota Statutes 2000, section 126C.10, 15.21 subdivision 5, is amended to read: 15.22 Subd. 5. [TRAINING AND EXPERIENCE REVENUE.] (a) For fiscal 15.23 year 2003, the training and experience revenue for each district 15.24 equals the greater of zero or the result of the following 15.25 computation: 15.26 (1) subtract .8 from the training and experience index; 15.27 (2) multiply the result in clause (1) by the product of 15.28 $660 times the adjusted marginal cost pupil units for the school 15.29 year. 15.30 (b) For fiscal year 2004, the training and experience 15.31 revenue for each district equals the product of 50 percent times 15.32 the district's training and experience revenue for fiscal year 15.33 2003 times the ratio of the district's adjusted marginal cost 15.34 pupil units for fiscal year 2004 to the district's adjusted 15.35 marginal cost pupil units for fiscal year 2003. 15.36 Sec. 7. Laws 2001, First Special Session chapter 6, 16.1 article 2, section 77, subdivision 2, is amended to read: 16.2 Subd. 2. [EXAMINATION FEES; TEACHER TRAINING AND SUPPORT 16.3 PROGRAMS.](a)For students' advanced placement and 16.4 international baccalaureate examination fees under Minnesota 16.5 Statutes 2000, section 120B.13, subdivision 3, and the training 16.6 and related costs for teachers and other interested educators 16.7 under Minnesota Statutes 2000, section 120B.13, subdivision 1: 16.8 $2,000,000 ..... 2002 16.9$2,000,000$450,000 ..... 2003 16.10 Any funds unexpended in the first year do not cancel and 16.11 are available in the second year. 16.12(b) The advanced placement program shall receive 75 percent16.13of the appropriation each year and the international16.14baccalaureate program shall receive 25 percent of the16.15appropriation each year. The department, in consultation with16.16representatives of the advanced placement and international16.17baccalaureate programs selected by the advanced placement16.18advisory council and IBMN, respectively, shall determine the16.19amounts of the expenditures each year for examination fees and16.20training and support programs for each program.16.21(c) Notwithstanding Minnesota Statutes, section 120B.13,16.22subdivision 1, $375,000 each year is for teachers to attend16.23subject matter summer training programs and follow-up support16.24workshops approved by the advanced placement or international16.25baccalaureate programs. The amount of the subsidy for each16.26teacher attending an advanced placement or international16.27baccalaureate summer training program or workshop shall be the16.28same. The commissioner shall determine the payment process and16.29the amount of the subsidy.16.30(d) Notwithstanding Minnesota Statutes, section 120B.13,16.31subdivision 3, in each year to the extent of available16.32appropriations, the commissioner shall pay all examination fees16.33for all students sitting for an advanced placement examination,16.34international baccalaureate examination, or both. If this16.35amount is not adequate, the commissioner may pay less than the16.36full examination fee.17.1Any balance in the first year does not cancel but is17.2available in the second year.17.3 Sec. 8. [FISCAL YEAR 2004 TRAINING AND EXPERIENCE LEVY.] 17.4 For taxes payable in 2003, a district may levy an amount 17.5 equal to the district's estimated training and experience 17.6 revenue for fiscal year 2004 under Minnesota Statutes, section 17.7 126C.10, subdivision 5. For taxes payable in 2005, the levy 17.8 shall be adjusted by the difference between the estimated 17.9 revenue used to determine the levy for taxes payable in 2003 and 17.10 the actual revenue. 17.11 Sec. 9. [BASE LEVEL FUNDING FOR FISCAL YEARS 2004 AND 17.12 2005.] 17.13 (a) Base level funding for alternative teacher compensation 17.14 established under Minnesota Statutes, sections 122A.413 to 17.15 122A.415, is $3,000,000 for fiscal year 2004 and $3,000,000 in 17.16 fiscal year 2005. 17.17 (b) Base level funding for the department of children, 17.18 families, and learning is $28,601,000 for fiscal year 2004 and 17.19 $28,601,000 in fiscal year 2005. 17.20 (c) Base level funding for examination fees; teacher 17.21 training and support programs for advanced placement and 17.22 international baccalaureate programs under Minnesota Statutes, 17.23 section 120B.13, is $450,000 in fiscal year 2004 and $450,000 in 17.24 fiscal year 2005. 17.25 (d) The base level funding for excess building lease aid 17.26 under Minnesota Statutes, section 124D.11, subdivision 4a, is 17.27 $2,500,000 in fiscal year 2004 and $2,500,000 in fiscal year 17.28 2005. 17.29 Sec. 10. [APPROPRIATION CANCELED TO GENERAL FUND.] 17.30 The unobligated balance of the appropriation in Laws 1997, 17.31 First Special Session chapter 4, article 3, section 25, 17.32 subdivision 7, estimated to be $89,000 is canceled to the 17.33 general fund. 17.34[EFFECTIVE DATE.] This section is effective the day 17.35 following final enactment. 17.36 ARTICLE 4 18.1 HIGHER EDUCATION APPROPRIATIONS 18.2 Section 1. [HIGHER EDUCATION APPROPRIATIONS.] 18.3 The dollar amounts in the columns marked "APPROPRIATIONS" 18.4 are added to or, if shown in parentheses, are subtracted from 18.5 the appropriations in Laws 2001, First Special Session chapter 18.6 1, or other law to the specified agencies. The appropriations 18.7 are from the general fund or any other named fund and are 18.8 available for the fiscal years indicated for each purpose. The 18.9 figure 2002 or 2003 means that the addition to or subtraction 18.10 from the appropriations listed under the figure are for the 18.11 fiscal year ending June 30, 2002, or June 30, 2003, 18.12 respectively. If only one figure is shown in the text for a 18.13 specified purpose, the addition or subtraction is for 2002 18.14 unless the context intends another fiscal year. 18.15 SUMMARY BY FUND 18.16 2002 2003 TOTAL 18.17 General $ (50,000,000)$ (50,000,000) 18.20 SUMMARY BY AGENCY - ALL FUNDS 18.21 2002 2003 TOTAL 18.22 Higher Education 18.23 Services Office 18.24 Board of Trustees of 18.25 the Minnesota State Colleges 18.26 and Universities $ (24,493,000)$ (24,493,000) 18.27 Board of Regents of the 18.28 University of Minnesota $ (25,507,000)$ (25,507,000) 18.29 APPROPRIATIONS 18.30 Available for the Year 18.31 Ending June 30 18.32 2002 2003 18.33 Sec. 2. HIGHER EDUCATION 18.34 SERVICES OFFICE 18.35 Subdivision 1. Total 18.36 Appropriation Changes -0- -0- 18.37 Subd. 2. State Grants 1,660,000 3,070,000 18.38 Notwithstanding Laws 2001, First 18.39 Special Session chapter 1, article 1, 18.40 section 2, subdivision 2, savings in 18.41 the state grant program in fiscal year 18.42 2003 resulting from any increase in the 18.43 maximum federal grant over $3,750 or 19.1 from any other source, after use to 19.2 provide additional decreases in the 19.3 family responsibility for independent 19.4 students as provided by law, shall 19.5 remain in the state grant program. 19.6 Notwithstanding Laws 2001, First 19.7 Special Session chapter 1, article 1, 19.8 section 2, subdivision 2, the private 19.9 institution tuition maximum in fiscal 19.10 year 2003 shall be $9,163 for four-year 19.11 institutions and $7,093 for two-year 19.12 institutions. 19.13 Subd. 3. Interstate Tuition 19.14 Reciprocity (1,500,000) (1,000,000) 19.15 Subd. 4. Minitex 840,000 (840,000) 19.16 Subd. 5. Learning Network of Minnesota (841,000) 19.17 Subd. 6. Minnesota College 19.18 Savings Plan (1,000,000) 19.19 Subd. 7. Agency Administration (389,000) 19.20 Sec. 3. BOARD OF TRUSTEES OF THE 19.21 MINNESOTA STATE COLLEGES AND UNIVERSITIES 19.22 Total Appropriation Changes (24,493,000) 19.23 Sec. 4. BOARD OF REGENTS OF 19.24 THE UNIVERSITY OF MINNESOTA 19.25 Total Appropriation Changes (25,507,000) 19.26 Sec. 5. Minnesota Statutes 2001 Supplement, section 19.27 136A.121, subdivision 6, is amended to read: 19.28 Subd. 6. [COST OF ATTENDANCE.] (a) The recognized cost of 19.29 attendance consists of allowances specified in law for living 19.30 and miscellaneous expenses, and 19.31(1) for public institutions, the actual tuition and fees19.32charged by the institution; or19.33(2) for private institutions,an allowance for tuition and 19.34 fees equal to the lesser of the actual tuition and fees charged 19.35 by the institution, or the private institution tuition and fee 19.36 maximums established in law. 19.37 (b) For the purpose of paragraph (a),clause (2),the 19.38 private institution tuition and fee maximum for two- and 19.39 four-year, private, residential, liberal arts, degree-granting 19.40 colleges and universities must be the same. 19.41 (c) For a student registering for less than full time, the 19.42 office shall prorate the living and miscellaneous expense 19.43 allowance to the actual number of credits for which the student 20.1 is enrolled. 20.2 The recognized cost of attendance for a student who is 20.3 confined to a Minnesota correctional institution shall consist 20.4 of the tuition and fee component in paragraph (a),clause (1) or20.5(2),with no allowance for living and miscellaneous expenses. 20.6[EFFECTIVE DATE.] This section is effective July 1, 2002. 20.7 Sec. 6. Minnesota Statutes 2001 Supplement, section 20.8 136G.03, subdivision 25, is amended to read: 20.9 Subd. 25. [PENALTY.] "Penalty" means the amount 20.10 established by the office that is applied against the earnings 20.11 portion of a nonqualified distribution. The amount established 20.12 by the office must be the minimum required to be a more than de 20.13 minimis penalty under section 529 of the Internal Revenue Code. 20.14 The office must impose, collect, and apply penalties consistent 20.15 with section 529 of the Internal Revenue Code. 20.16[EFFECTIVE DATE.] This section is effective the day 20.17 following final enactment. 20.18 ARTICLE 5 20.19 HEALTH AND HUMAN SERVICES APPROPRIATIONS 20.20 Section 1. [HEALTH AND HUMAN SERVICES APPROPRIATIONS.] 20.21 The dollar amounts shown in the columns marked 20.22 "APPROPRIATIONS" are added to or, if shown in parentheses, are 20.23 subtracted from the appropriations in Laws 2001, First Special 20.24 Session chapter 9, or other law, and are appropriated from the 20.25 general fund, or any other fund named, to the agencies and for 20.26 the purposes specified in this article, to be available for the 20.27 fiscal years indicated for each purpose. The figures "2002" and 20.28 "2003" used in this article mean that the appropriation or 20.29 appropriations listed under them are available for the fiscal 20.30 year ending June 30, 2002, or June 30, 2003, respectively. 20.31 SUMMARY BY FUND 20.32 2002 2003 TOTAL 20.33 General 20.34 Forecast 20.35 Adjustments $13,759,000 $36,283,000 $50,042,000 20.36 Nonforecast (464,000) (32,149,000) (32,613,000) 20.37 Health Care 20.38 Access 13,881,000 8,410,000 22,291,000 21.1 Federal TANF 9,656,000 11,232,000 20,888,000 21.2 APPROPRIATIONS 21.3 Available for the Year 21.4 Ending June 30 21.5 2002 2003 21.6 Sec. 2. COMMISSIONER OF 21.7 HUMAN SERVICES 21.8 Subdivision 1. Total 21.9 Appropriation $ 43,603,000 $ 30,147,000 21.10 Summary by Fund 21.11 General 20,066,000 10,505,000 21.12 Health Care 21.13 Access 13,881,000 8,410,000 21.14 Federal TANF 9,656,000 11,232,000 21.15 Subd. 2. Agency Management 21.16 General -0- (8,401,000) 21.17 The amounts that may be spent from the 21.18 appropriation for each purpose are as 21.19 follows: 21.20 Management Operations 21.21 General -0- (8,401,000) 21.22 Subd. 3. Basic Health Care 21.23 Grants 21.24 General 11,992,000 839,000 21.25 Health Care 21.26 Access 13,881,000 8,410,000 21.27 The amounts that may be spent from this 21.28 appropriation for each purpose are as 21.29 follows: 21.30 (a) MinnesotaCare Grants 21.31 Health Care 21.32 Access 13,881,000 8,410,000 21.33 (b) MA Basic Health Care 21.34 Grants - Families and Children 21.35 General (17,319,000) (19,755,000) 21.36 [TRANSFER.] Of the general fund 21.37 appropriations to the University of 21.38 Minnesota in the higher education 21.39 omnibus appropriation bill, $10,000,000 21.40 in fiscal year 2003 and in each fiscal 21.41 year thereafter is to be transferred to 21.42 the department of human services for 21.43 the following purposes: (1) $5,000,000 21.44 is for the capitation payments under 21.45 Minnesota Statutes, section 256B.69. 21.46 (2) $5,000,000 is to be deposited in 21.47 the general fund. These transfers 21.48 shall not be made until the federal 21.49 government approves the medical 22.1 education payments authorized in 22.2 Minnesota Statutes, section 62J.692, 22.3 subdivision 7, paragraph (c). 22.4 Notwithstanding the provisions of 22.5 section 4, this provision shall not 22.6 expire. 22.7 [NONMETROPOLITAN COUNTY PREPAID MEDICAL 22.8 ASSISTANCE PROGRAM RATE REDUCTION.] A 22.9 demonstration provider must not reduce 22.10 payment rates to providers to reflect 22.11 the reduction effective January 1, 22.12 2003, in rates paid under Minnesota 22.13 Statutes, section 256B.69, to 22.14 nonmetropolitan counties. 22.15 (c) MA Basic Health Care 22.16 Grants - Elderly and Disabled 22.17 General 3,062,000 (22,440,000) 22.18 [NOTICE OF CHANGE IN DOCUMENTATION.] 22.19 The commissioner shall provide to all 22.20 medical assistance recipients receiving 22.21 coverage through the employed persons 22.22 with disabilities program under 22.23 Minnesota Statutes, section 256B.057, 22.24 subdivision 9, three months advance 22.25 notice of the new employment 22.26 documentation requirement. 22.27 (d) General Assistance 22.28 Medical Care Grants 22.29 General 26,249,000 40,835,000 22.30 (e) Health Care Grants - 22.31 Other Assistance 22.32 General -0- 2,199,000 22.33 [PRESCRIPTION DRUG PROGRAM FUNDING.] 22.34 (1) The commissioner may expend money 22.35 appropriated for the prescription drug 22.36 program in either fiscal year of the 22.37 2002-2003 biennium. (2) The 22.38 commissioner shall administer the 22.39 prescription drug program pursuant to 22.40 Minnesota Statutes, section 256.955, 22.41 subdivision 9, so that the costs total 22.42 not more than funds appropriated plus 22.43 the drug rebate proceeds. 22.44 Subd. 4. Basic Health Care 22.45 Management 22.46 General -0- (1,020,000) 22.47 The amounts that may be spent from this 22.48 appropriation for each purpose are as 22.49 follows: 22.50 (a) Health Care Policy 22.51 Administration 22.52 General -0- 445,000 22.53 (b) Health Care 22.54 Operations 22.55 General -0- (1,465,000) 23.1 Subd. 5. State-Operated 23.2 Services 23.3 General -0- (1,333,000) 23.4 [ADMINISTRATIVE BASE FUNDING 23.5 REDUCTION.] For fiscal year 2003, base 23.6 level funding for state-operated 23.7 services administration is reduced by 23.8 $1,333,000. For the biennium beginning 23.9 July 1, 2003, base level funding for 23.10 state-operated services administration 23.11 shall be reduced by an additional 23.12 $494,000 each year. 23.13 Subd. 6. Continuing Care 23.14 Grants 23.15 General (8,907,000) (10,109,000) 23.16 The amounts that may be spent from this 23.17 appropriation for each purpose are as 23.18 follows: 23.19 (a) Aging Adult Service 23.20 Grants 23.21 General -0- (1,160,000) 23.22 [PLANNING AND SERVICE DEVELOPMENT.] The 23.23 planning and service development grant 23.24 from Laws 2001, First Special Session 23.25 chapter 9, article 17, section 2, 23.26 subdivision 9, is eliminated for fiscal 23.27 year 2003. Base funding for the 23.28 2004-2005 biennium shall be $550,000 23.29 each year. Notwithstanding Laws 2001, 23.30 First Special Session chapter 9, 23.31 article 17, section 2, subdivision 9, 23.32 beginning in fiscal year 2004, the 23.33 commissioner shall annually distribute 23.34 $5,000 to each county. Counties with 23.35 more than 10,000 persons over age 65 23.36 shall receive a distribution of an 23.37 additional 25 cents for each person 23.38 over age 65. The amount distributed to 23.39 each area agency on aging shall be 23.40 $2,500. 23.41 (b) Medical Assistance 23.42 Long-Term Care Waivers and 23.43 Home Care Grants 23.44 General 18,471,000 17,009,000 23.45 (c) Medical Assistance 23.46 Long-Term Care Facilities 23.47 Grants 23.48 General (27,382,000) (26,348,000) 23.49 [MORATORIUM EXCEPTIONS.] During each 23.50 year of the biennium beginning July 1, 23.51 2001, the full annualized costs for the 23.52 state share of medical assistance that 23.53 the commissioner of health may approve 23.54 for moratorium exception projects under 23.55 Minnesota Statutes, section 144A.073, 23.56 is reduced by $495,000. 23.57 [APPLICATION OF PRESCRIPTION DRUG 24.1 SAVINGS.] If the commissioner receives 24.2 approval to expand the qualified 24.3 Medicare beneficiary option to include 24.4 prescription drugs and to increase the 24.5 qualified Medicare beneficiary income 24.6 standard to 150 percent of the federal 24.7 poverty guidelines, the state savings 24.8 must be used to reduce the nursing 24.9 facility surcharge under Minnesota 24.10 Statutes, section 256.9657, subdivision 24.11 1, paragraph (c) or (d). 24.12 (d) Group Residential 24.13 Housing Grants 24.14 General 4,000 474,000 24.15 [FEDERAL FUNDING FOR GROUP RESIDENTIAL 24.16 HOUSING COSTS.] The commissioner shall 24.17 seek federal funding to offset costs 24.18 for group residential housing services 24.19 under Minnesota Statutes, chapter 256I. 24.20 Any federal funding received shall be 24.21 distributed to counties on a pro rata 24.22 basis according to county spending 24.23 under Minnesota Statutes, section 24.24 256B.19, subdivision 1, clause (3), for 24.25 the costs of nursing facility 24.26 placements of persons with disabilities 24.27 under the age of 65 that have exceeded 24.28 90 days. The commissioner shall report 24.29 to the legislature by January 15, 2003, 24.30 on the status of additional federal 24.31 funding for group residential housing 24.32 costs. 24.33 (e) Chemical Dependency 24.34 Entitlement Grants 24.35 General -0- (84,000) 24.36 [CONSOLIDATED CHEMICAL DEPENDENCY 24.37 TREATMENT FUND RESERVE TRANSFER.] On 24.38 July 1, 2003, up to $8,544,000 of funds 24.39 available in the consolidated chemical 24.40 dependency treatment fund general 24.41 reserve account is transferred to the 24.42 general fund. 24.43 Subd. 7. Continuing Care 24.44 Management 24.45 General (1,295,000) (205,000) 24.46 [DAY TRAINING TASK FORCE.] The general 24.47 fund appropriation in fiscal year 2003 24.48 in Laws 2001, First Special Session 24.49 chapter 9, article 17, section 2, 24.50 subdivision 10, for the day training 24.51 and habilitation restructuring task 24.52 force is eliminated. 24.53 Subd. 8. Economic 24.54 Support Grants 24.55 General 18,276,000 30,734,000 24.56 Federal TANF 9,656,000 11,232,000 24.57 The amounts that may be spent from the 24.58 appropriation for each purpose are as 25.1 follows: 25.2 (a) Assistance to Families 25.3 Grants 25.4 General 16,988,000 28,391,000 25.5 Federal TANF 9,656,000 11,232,000 25.6 (b) Work Grants 25.7 General -0- (404,000) 25.8 (c) Economic Support 25.9 Grants - Other Assistance 25.10 General (650,000) (100,000) 25.11 (d) General Assistance 25.12 Grants 25.13 General 3,300,000 4,288,000 25.14 (e) Minnesota Supplemental 25.15 Aid Grants 25.16 General (1,362,000) (1,441,000) 25.17 Sec. 3. COMMISSIONER OF HEALTH 25.18 Subdivision 1. Total Appropriation 25.19 Reductions (6,771,000) (6,371,000) 25.20 SUMMARY BY FUND 25.21 2002 2003 25.22 General (6,771,000) (6,371,000) 25.23 Subd. 2. Family and Community 25.24 Health (1,400,000) (750,000) 25.25 Summary by Fund 25.26 General (1,400,000) (750,000) 25.27 [ONETIME GRANT REDUCTIONS.] $200,000 of 25.28 the appropriation reduction the first 25.29 year is from competitive grants to 25.30 reduce health disparities in infant 25.31 mortality rates and adult and child 25.32 immunization rates authorized in Laws 25.33 2001, First Special Session chapter 9, 25.34 article 17, section 3, subdivision 2. 25.35 $300,000 of the appropriation reduction 25.36 the first year is from competitive 25.37 grants to reduce health disparities in 25.38 breast and cervical cancer screening 25.39 rates, HIV/AIDS and sexually 25.40 transmitted infection rates, 25.41 cardiovascular disease rates, diabetes 25.42 rates, and rates of accidental injuries 25.43 and violence authorized in Laws 2001, 25.44 First Special Session chapter 9, 25.45 article 17, section 3, subdivision 2. 25.46 $150,000 of the appropriation reduction 25.47 the first year is from community-based 25.48 programs for suicide prevention 25.49 authorized in Laws 2001, First Special 26.1 Session chapter 9, article 17, section 26.2 3, subdivision 2. 26.3 Subd. 3. Access and Quality 26.4 Improvement (4,970,000) (5,020,000) 26.5 [HEALTH STATUS IMPROVEMENT GRANTS.] Of 26.6 this reduction, $120,000 each year is 26.7 from money for grants appropriated 26.8 under Laws 2001, First Special Session 26.9 chapter 9, article 17, section 3, 26.10 subdivision 2. 26.11 Subd. 4. Health Protection (151,000) (251,000) 26.12 Subd. 5. Management and Support 26.13 Services (250,000) (350,000) 26.14 Sec. 4. [SUNSET OF UNCODIFIED LANGUAGE.] 26.15 All uncodified language contained in this article expires 26.16 on June 30, 2003, unless a different expiration date is explicit. 26.17 Sec. 5. [EFFECTIVE DATE.] 26.18 The appropriations and reductions for fiscal year 2002 in 26.19 this article are effective the day following final enactment. 26.20 ARTICLE 6 26.21 CONTINUING CARE AND LONG-TERM CARE 26.22 Section 1. Minnesota Statutes 2000, section 256.9657, 26.23 subdivision 1, is amended to read: 26.24 Subdivision 1. [NURSING HOME LICENSE SURCHARGE.] (a) 26.25 Effective July 1, 1993, each non-state-operated nursing home 26.26 licensed under chapter 144A shall pay to the commissioner an 26.27 annual surcharge according to the schedule in subdivision 4. 26.28 The surcharge shall be calculated as $620 per licensed bed. If 26.29 the number of licensed beds is reduced, the surcharge shall be 26.30 based on the number of remaining licensed beds the second month 26.31 following the receipt of timely notice by the commissioner of 26.32 human services that beds have been delicensed. The nursing home 26.33 must notify the commissioner of health in writing when beds are 26.34 delicensed. The commissioner of health must notify the 26.35 commissioner of human services within ten working days after 26.36 receiving written notification. If the notification is received 26.37 by the commissioner of human services by the 15th of the month, 26.38 the invoice for the second following month must be reduced to 26.39 recognize the delicensing of beds. Beds on layaway status 26.40 continue to be subject to the surcharge. The commissioner of 27.1 human services must acknowledge a medical care surcharge appeal 27.2 within 30 days of receipt of the written appeal from the 27.3 provider. 27.4 (b) Effective July 1, 1994, the surcharge in paragraph (a) 27.5 shall be increased to $625. 27.6 (c) Effective August 15, 2003, the surcharge under 27.7 paragraph (b) shall be increased by an amount necessary to 27.8 ensure a net gain to the general fund of $10,066,000 during 27.9 fiscal year 2004 as a result of: 27.10 (1) the total transfers anticipated during the fiscal year 27.11 ending June 30, 2004, under section 256B.19, subdivision 1d, 27.12 paragraph (c); 27.13 (2) the county nursing home payment adjustments under 27.14 section 256B.431, subdivision 23, paragraph (c); 27.15 (3) the surcharges under this paragraph; and 27.16 (4) the nursing facility rate increases under section 27.17 256B.431, subdivision 37. 27.18 The increase under this paragraph shall not exceed $365 per bed. 27.19 (d) Effective August 15, 2004, the surcharge under 27.20 paragraph (c) shall be equal to an amount necessary to ensure a 27.21 net gain to the general fund each fiscal year of $10,666,000 as 27.22 a result of: 27.23 (1) the total transfers anticipated during the fiscal year 27.24 under section 256B.19, subdivision 1d, paragraph (c); 27.25 (2) the county nursing home payment adjustments under 27.26 section 256B.431, subdivision 23, paragraph (c); 27.27 (3) the surcharges under this paragraph; and 27.28 (4) the nursing facility rate increases under section 27.29 256B.431, subdivision 37. 27.30 The surcharge under this paragraph shall not exceed $365 per bed. 27.31 Sec. 2. Minnesota Statutes 2000, section 256B.19, 27.32 subdivision 1, is amended to read: 27.33 Subdivision 1. [DIVISION OF COST.] The state and county 27.34 share of medical assistance costs not paid by federal funds 27.35 shall be as follows: 27.36 (1) ninety percent state funds and ten percent county 28.1 funds, unless otherwise provided below; 28.2 (2) beginning January 1, 1992, 50 percent state funds and 28.3 50 percent county funds for the cost of placement of severely 28.4 emotionally disturbed children in regional treatment centers; 28.5 and 28.6 (3) beginning January 1, 2004, 80 percent state funds and 28.7 20 percent county funds for the costs of nursing facility 28.8 placements of persons with disabilities under the age of 65 that 28.9 have exceeded 90 days. 28.10 For counties that participate in a Medicaid demonstration 28.11 project under sections 256B.69 and 256B.71, the division of the 28.12 nonfederal share of medical assistance expenses for payments 28.13 made to prepaid health plans or for payments made to health 28.14 maintenance organizations in the form of prepaid capitation 28.15 payments, this division of medical assistance expenses shall be 28.16 95 percent by the state and five percent by the county of 28.17 financial responsibility. 28.18 In counties where prepaid health plans are under contract 28.19 to the commissioner to provide services to medical assistance 28.20 recipients, the cost of court ordered treatment ordered without 28.21 consulting the prepaid health plan that does not include 28.22 diagnostic evaluation, recommendation, and referral for 28.23 treatment by the prepaid health plan is the responsibility of 28.24 the county of financial responsibility. 28.25 Sec. 3. Minnesota Statutes 2000, section 256B.19, 28.26 subdivision 1d, is amended to read: 28.27 Subd. 1d. [PORTION OF NONFEDERAL SHARE TO BE PAID BY 28.28 CERTAIN COUNTIES.] (a) In addition to the percentage 28.29 contribution paid by a county under subdivision 1, the 28.30 governmental units designated in this subdivision shall be 28.31 responsible for an additional portion of the nonfederal share of 28.32 medical assistance cost. For purposes of this subdivision, 28.33 "designated governmental unit" means the counties of Becker, 28.34 Beltrami, Clearwater, Cook, Dodge, Hubbard, Itasca, Lake, 28.35 Pennington, Pipestone, Ramsey, St. Louis, Steele, Todd, 28.36 Traverse, and Wadena. 29.1 (b) Beginning in 1994, each of the governmental units 29.2 designated in this subdivision shall transfer before noon on May 29.3 31 to the state Medicaid agency an amount equal to the number of 29.4 licensed beds in any nursing home owned and operated by the 29.5 county, with the county named as licensee, multiplied by $5,723. 29.6 If two or more counties own and operate a nursing home, the 29.7 payment shall be prorated. These sums shall be part of the 29.8 designated governmental unit's portion of the nonfederal share 29.9 of medical assistance costs, but shall not be subject to payback 29.10 provisions of section 256.025. 29.11 (c) Beginning in 2002, in addition to any transfer under 29.12 paragraph (b), each of the governmental units designated in this 29.13 subdivision shall transfer before noon on May 31 to the state 29.14 Medicaid agency an amount equal to the number of licensed beds 29.15 in any nursing home owned and operated by the county on that 29.16 date, with the county named as licensee, multiplied by $10,784. 29.17 The provisions of paragraph (b) apply to transfers under this 29.18 paragraph. 29.19 (d) The commissioner may reduce the intergovernmental 29.20 transfers under paragraph (c) based on the commissioner's 29.21 determination of the payment rate in section 256B.431, 29.22 subdivision 23, paragraphs (c) and (d). Any adjustments must be 29.23 made on a per-bed basis and must result in an amount equivalent 29.24 to the total amount resulting from the rate adjustment in 29.25 section 256B.431, subdivision 23, paragraphs (c) and (d). 29.26[EFFECTIVE DATE.] This section is effective the day 29.27 following final enactment. 29.28 Sec. 4. Minnesota Statutes 2000, section 256B.431, 29.29 subdivision 23, is amended to read: 29.30 Subd. 23. [COUNTY NURSING HOME PAYMENT ADJUSTMENTS.] (a) 29.31 Beginning in 1994, the commissioner shall pay a nursing home 29.32 payment adjustment on May 31 after noon to a county in which is 29.33 located a nursing home that, as of January 1 of the previous 29.34 year, was county-owned and operated, with the county named as 29.35 licensee by the commissioner of health, and had over 40 beds and 29.36 medical assistance occupancy in excess of 50 percent during the 30.1 reporting year ending September 30, 1991. The adjustment shall 30.2 be an amount equal to $16 per calendar day multiplied by the 30.3 number of beds licensed in the facility as of September 30, 1991. 30.4 (b) Payments under paragraph (a) are excluded from medical 30.5 assistance per diem rate calculations. These payments are 30.6 required notwithstanding any rule prohibiting medical assistance 30.7 payments from exceeding payments from private pay residents. A 30.8 facility receiving a payment under paragraph (a) may not 30.9 increase charges to private pay residents by an amount 30.10 equivalent to the per diem amount payments under paragraph (a) 30.11 would equal if converted to a per diem. 30.12 (c) Beginning in 2002, in addition to any payment under 30.13 paragraph (a), the commissioner shall pay to a nursing facility 30.14 described in paragraph (a) an adjustment in an amount equal to 30.15 $29.55 per calendar day multiplied by the number of beds 30.16 licensed in the facility on that date. The provisions of 30.17 paragraphs (a) and (b) apply to payments under this paragraph. 30.18 (d) The commissioner may reduce payments under paragraph (c) 30.19 based on the commissioner's determination of Medicare upper 30.20 payment limits. Any adjustments must be proportional to 30.21 adjustments made under section 256B.19, subdivision 1d, 30.22 paragraph (d). 30.23[EFFECTIVE DATE.] This section is effective the day 30.24 following final enactment. 30.25 Sec. 5. Minnesota Statutes 2000, section 256B.431, is 30.26 amended by adding a subdivision to read: 30.27 Subd. 37. [NURSING FACILITY RATE INCREASES EFFECTIVE JULY 30.28 1, 2003.] For rate years beginning on or after July 1, 2003, the 30.29 commissioner shall provide to each nursing facility reimbursed 30.30 under this section or section 256B.434 an increase in each case 30.31 mix payment rate equal to the increase in the per-bed surcharge 30.32 paid under section 256.9657, subdivision 1, paragraph (c) or 30.33 (d), divided by 365 and further divided by .88. The increase 30.34 under this subdivision shall be added following the 30.35 determination of the payment rate for the facility under this 30.36 chapter. The increase shall not be subject to any annual 31.1 percentage increase. 31.2 Sec. 6. Minnesota Statutes 2001 Supplement, section 31.3 256B.437, subdivision 2, is amended to read: 31.4 Subd. 2. [PLANNING AND DEVELOPMENT OF COMMUNITY-BASED 31.5 SERVICES.] (a) The commissioner of human services shall 31.6 establish a process to adjust the capacity and distribution of 31.7 long-term care services to equalize the supply and demand for 31.8 different types of services. This process must include 31.9 community planning, expansion or establishment of needed 31.10 services, and analysis of voluntary nursing facility closures. 31.11 (b) The purpose of this process is to support the planning 31.12 and development of community-based services. This process must 31.13 support early intervention, advocacy, and consumer protection 31.14 while providing resources and incentives for expanded county 31.15 planning and for nursing facilities to transition to meet 31.16 community needs. 31.17 (c) The process shall support and facilitate expansion of 31.18 community-based services under the county-administered 31.19 alternative care program under section 256B.0913 and waivers for 31.20 elderly under section 256B.0915, including, but not limited to, 31.21 the development of supportive services such as housing and 31.22 transportation. The process shall utilize community assessments 31.23 and planning developed for the community health services plan 31.24 and plan update and for the community social services act plan, 31.25 and other relevant information. 31.26 (d) The commissioners of health and human services, as 31.27 appropriate, shall provide, by July 15, 2001, available data 31.28 necessary for the county, including, but not limited to, data on 31.29 nursing facility bed distribution, housing with services 31.30 options, the closure of nursing facilities that occur outside of 31.31 the planned closure process, and approval of planned closures in 31.32 the county and contiguous counties. 31.33 (e) Each county shall submit to the commissioner of human 31.34 services, by October 15, 2001, a gaps analysis that identifies 31.35 local service needs, pending development of services, and any 31.36 other issues that would contribute to or impede further 32.1 development of community-based services. The gaps analysis must 32.2 also be sent to the local area agency on aging and, if 32.3 applicable, local SAIL projects, for review and comment. The 32.4 review and comment must assess needs across county boundaries. 32.5 The area agencies on aging and SAIL projects must provide the 32.6 commissioner and the counties with their review and analyses by 32.7 November 15, 2001. 32.8 (f) The addendum to the biennial plan shall be submitted 32.9annuallybiennially, beginning December 31, 2001, andeach32.10December 31every other year thereafter in accordance with the 32.11 Community Social Services Act plan timeline, and shall include 32.12 recommendations for development of community-based 32.13 services. Area agencies on aging and SAIL projects must provide 32.14 the commissioner and the counties with their review and analyses 32.15 within 60 days following the Community Social Services Act plan 32.16 submission date. Both planning and implementation shall be 32.17 implemented within the amount of funding made available to the 32.18 county board for these purposes. 32.19 (g) The plan, within the funding allocated, shall: 32.20 (1) include the gaps analysis required by paragraph (e); 32.21 (2) involve providers, consumers, cities, townships, 32.22 businesses, and area agencies on aging in the planning process; 32.23 (3) address the availability of alternative care and 32.24 elderly waiver services for eligible recipients; 32.25 (4) address the development of other supportive services, 32.26 such as transit, housing, and workforce and economic 32.27 development; and 32.28 (5) estimate the cost and timelines for development. 32.29 (h) The biennial plan addendum shall be coordinated with 32.30 the county mental health plan for inclusion in the community 32.31 health services plan and included as an addendum to the 32.32 community social services plan. 32.33 (i) The county board having financial responsibility for 32.34 persons present in another county shall cooperate with that 32.35 county for planning and development of services. 32.36 (j) The county board shall cooperate in planning and 33.1 development of community-based services with other counties, as 33.2 necessary, and coordinate planning for long-term care services 33.3 that involve more than one county, within the funding allocated 33.4 for these purposes. 33.5 (k) The commissioners of health and human services, in 33.6 cooperation with county boards, shall report biennially to the 33.7 legislatureby February 1 of each year, beginning February 1, 33.8 2002, regarding the development of community-based services, 33.9 transition or closure of nursing facilities, and specific gaps 33.10 in services in identified geographic areas that may require 33.11 additional resources or flexibility, as documented by the 33.12 process in this subdivisionand reported to the commissioners by33.13December 31 of each year. 33.14 Sec. 7. Minnesota Statutes 2001 Supplement, section 33.15 256B.439, subdivision 1, is amended to read: 33.16 Subdivision 1. [DEVELOPMENT AND IMPLEMENTATION OF QUALITY 33.17 PROFILES.] (a) The commissioner of human services, in 33.18 cooperation with the commissioner of health, shall develop and 33.19 implement a quality profile system for nursing facilities and, 33.20 beginning not later than July 1,20032004, other providers of 33.21 long-term care services, except when the quality profile system 33.22 would duplicate requirements under section 256B.5011, 256B.5012, 33.23 or 256B.5013. The system must be developed and implemented to 33.24 the extent possible without the collection of significant 33.25 amounts of new data. To the extent possible, the system must 33.26 incorporate or be coordinated with information on quality 33.27 maintained by area agencies on aging, long-term care trade 33.28 associations, and other entities. The system must be designed 33.29 to provide information on quality to: 33.30 (1) consumers and their families to facilitate informed 33.31 choices of service providers; 33.32 (2) providers to enable them to measure the results of 33.33 their quality improvement efforts and compare quality 33.34 achievements with other service providers; and 33.35 (3) public and private purchasers of long-term care 33.36 services to enable them to purchase high-quality care. 34.1 (b) The system must be developed in consultation with the 34.2 long-term care task force, area agencies on aging, and 34.3 representatives of consumers, providers, and labor unions. 34.4 Within the limits of available appropriations, the commissioners 34.5 may employ consultants to assist with this project. 34.6 Sec. 8. Minnesota Statutes 2001 Supplement, section 34.7 256B.439, subdivision 4, is amended to read: 34.8 Subd. 4. [DISSEMINATION OF QUALITY PROFILES.] By July 34.9 1,20022003, the commissioners shall implement a system to 34.10 disseminate the quality profiles developed from consumer surveys 34.11 using the quality measurement tool. Profiles may be 34.12 disseminated to the Senior LinkAge line and to consumers, 34.13 providers, and purchasers of long-term care services through all 34.14 feasible printed and electronic outlets. The commissioners may 34.15 conduct a public awareness campaign to inform potential users 34.16 regarding profile contents and potential uses. 34.17[EFFECTIVE DATE.] This section is effective the day 34.18 following final enactment. 34.19 Sec. 9. Laws 2001, First Special Session chapter 9, 34.20 article 5, section 35, is amended to read: 34.21 Sec. 35. [DEVELOPMENT OF NEW NURSING FACILITY 34.22 REIMBURSEMENT SYSTEM.] 34.23 (a) The commissioner of human services shall develop and 34.24 report to the legislature by January 15,20032004, a system to 34.25 replace the current nursing facility reimbursement system 34.26 established under Minnesota Statutes, sections 256B.431, 34.27 256B.434, and 256B.435. 34.28 (b) The system must be developed in consultation with the 34.29 long-term care task force and with representatives of consumers, 34.30 providers, and labor unions. Within the limits of available 34.31 appropriations, the commissioner may employ consultants to 34.32 assist with this project. 34.33 (c) The new reimbursement system must: 34.34 (1) provide incentives to enhance quality of life and 34.35 quality of care; 34.36 (2) recognize cost differences in the care of different 35.1 types of populations, including subacute care and dementia care; 35.2 (3) establish rates that are sufficient without being 35.3 excessive; 35.4 (4) be affordable for the state and for private-pay 35.5 residents; 35.6 (5) be sensitive to changing conditions in the long-term 35.7 care environment; 35.8 (6) avoid creating access problems related to insufficient 35.9 funding; 35.10 (7) allow providers maximum flexibility in their business 35.11 operations; 35.12 (8) recognize the need for capital investment to improve 35.13 physical plants; and 35.14 (9) provide incentives for the development and use of 35.15 private rooms. 35.16 (d) Notwithstanding Minnesota Statutes, section 256B.435, 35.17 the commissioner must not implement a performance-based 35.18 contracting system for nursing facilities prior to July 1,200335.19 2004. The commissioner shall continue to reimburse nursing 35.20 facilities under Minnesota Statutes, section 256B.431 or 35.21 256B.434, until otherwise directed by law. 35.22 (e) The commissioner of human services, in consultation 35.23 with the commissioner of health, shall conduct or contract for a 35.24 time study to determine staff time being spent on various case 35.25 mix categories; recommend adjustments to the case mix weights 35.26 based on the time study data; and determine whether current 35.27 staffing standards are adequate for providing quality care based 35.28 on professional best practice and consumer experience. If the 35.29 commissioner determines the current standards are inadequate, 35.30 the commissioner shall determine an appropriate staffing 35.31 standard for the various case mix categories and the financial 35.32 implications of phasing into this standard over the next four 35.33 years. 35.34 Sec. 10. [REPEALER.] 35.35 Minnesota Statutes 2000, section 256B.0916, subdivision 1, 35.36 is repealed. 36.1 ARTICLE 7 36.2 HEALTH CARE 36.3 Section 1. Minnesota Statutes 2001 Supplement, section 36.4 62J.692, subdivision 7, is amended to read: 36.5 Subd. 7. [TRANSFERS FROM THE COMMISSIONER OF HUMAN 36.6 SERVICES.] (a) The amount transferred according to section 36.7 256B.69, subdivision 5c, paragraph (a), clause (1), shall be 36.8 distributed by the commissioner to clinical medical education 36.9 programs that meet the qualifications of subdivision 3 based on 36.10 a distribution formula that reflects a summation of two factors: 36.11 (1) an education factor, which is determined by the total 36.12 number of eligible trainee FTEs and the total statewide average 36.13 costs per trainee, by type of trainee, in each clinical medical 36.14 education program; and 36.15 (2) a public program volume factor, which is determined by 36.16 the total volume of public program revenue received by each 36.17 training site as a percentage of all public program revenue 36.18 received by all training sites in the fund pool created under 36.19 this subdivision. 36.20 In this formula, the education factor shall be weighted at 36.21 50 percent and the public program volume factor shall be 36.22 weighted at 50 percent. 36.23 Public program revenue for the distribution formula shall 36.24 include revenue from medical assistance, prepaid medical 36.25 assistance, general assistance medical care, and prepaid general 36.26 assistance medical care. Training sites that receive no public 36.27 program revenue shall be ineligible for funds available under 36.28 this paragraph. 36.29 (b) Fifty percent of the amount transferred according to 36.30 section 256B.69, subdivision 5c, paragraph (a), clause (2), 36.31 shall be distributed by the commissioner to the University of 36.32 Minnesota board of regents for the purposes described in 36.33 sections 137.38 to 137.40. Of the remaining amount transferred 36.34 according to section 256B.69, subdivision 5c, paragraph (a), 36.35 clause (2), 24 percent of the amount shall be distributed by the 36.36 commissioner to the Hennepin County Medical Center for clinical 37.1 medical education. The remaining 26 percent of the amount 37.2 transferred shall be distributed by the commissioner in 37.3 accordance with subdivision 7a. If the federal approval is not 37.4 obtained for the matching funds under section 256B.69, 37.5 subdivision 5c, paragraph (a), clause (2), 100 percent of the 37.6 amount transferred under this paragraph shall be distributed by 37.7 the commissioner to the University of Minnesota board of regents 37.8 for the purposes described in sections 137.38 to 137.40. 37.9 (c) The amount transferred according to section 256B.69, 37.10 subdivision 5c, paragraph (a), clause (3), shall be distributed 37.11 by the commissioner upon receipt to the University of Minnesota 37.12 board of regents for the purposes of clinical graduate medical 37.13 education. 37.14 Sec. 2. Minnesota Statutes 2001 Supplement, section 37.15 256.01, subdivision 2, is amended to read: 37.16 Subd. 2. [SPECIFIC POWERS.] Subject to the provisions of 37.17 section 241.021, subdivision 2, the commissioner of human 37.18 services shall: 37.19 (1) Administer and supervise all forms of public assistance 37.20 provided for by state law and other welfare activities or 37.21 services as are vested in the commissioner. Administration and 37.22 supervision of human services activities or services includes, 37.23 but is not limited to, assuring timely and accurate distribution 37.24 of benefits, completeness of service, and quality program 37.25 management. In addition to administering and supervising human 37.26 services activities vested by law in the department, the 37.27 commissioner shall have the authority to: 37.28 (a) require county agency participation in training and 37.29 technical assistance programs to promote compliance with 37.30 statutes, rules, federal laws, regulations, and policies 37.31 governing human services; 37.32 (b) monitor, on an ongoing basis, the performance of county 37.33 agencies in the operation and administration of human services, 37.34 enforce compliance with statutes, rules, federal laws, 37.35 regulations, and policies governing welfare services and promote 37.36 excellence of administration and program operation; 38.1 (c) develop a quality control program or other monitoring 38.2 program to review county performance and accuracy of benefit 38.3 determinations; 38.4 (d) require county agencies to make an adjustment to the 38.5 public assistance benefits issued to any individual consistent 38.6 with federal law and regulation and state law and rule and to 38.7 issue or recover benefits as appropriate; 38.8 (e) delay or deny payment of all or part of the state and 38.9 federal share of benefits and administrative reimbursement 38.10 according to the procedures set forth in section 256.017; 38.11 (f) make contracts with and grants to public and private 38.12 agencies and organizations, both profit and nonprofit, and 38.13 individuals, using appropriated funds; and 38.14 (g) enter into contractual agreements with federally 38.15 recognized Indian tribes with a reservation in Minnesota to the 38.16 extent necessary for the tribe to operate a federally approved 38.17 family assistance program or any other program under the 38.18 supervision of the commissioner. The commissioner shall consult 38.19 with the affected county or counties in the contractual 38.20 agreement negotiations, if the county or counties wish to be 38.21 included, in order to avoid the duplication of county and tribal 38.22 assistance program services. The commissioner may establish 38.23 necessary accounts for the purposes of receiving and disbursing 38.24 funds as necessary for the operation of the programs. 38.25 (2) Inform county agencies, on a timely basis, of changes 38.26 in statute, rule, federal law, regulation, and policy necessary 38.27 to county agency administration of the programs. 38.28 (3) Administer and supervise all child welfare activities; 38.29 promote the enforcement of laws protecting handicapped, 38.30 dependent, neglected and delinquent children, and children born 38.31 to mothers who were not married to the children's fathers at the 38.32 times of the conception nor at the births of the children; 38.33 license and supervise child-caring and child-placing agencies 38.34 and institutions; supervise the care of children in boarding and 38.35 foster homes or in private institutions; and generally perform 38.36 all functions relating to the field of child welfare now vested 39.1 in the state board of control. 39.2 (4) Administer and supervise all noninstitutional service 39.3 to handicapped persons, including those who are visually 39.4 impaired, hearing impaired, or physically impaired or otherwise 39.5 handicapped. The commissioner may provide and contract for the 39.6 care and treatment of qualified indigent children in facilities 39.7 other than those located and available at state hospitals when 39.8 it is not feasible to provide the service in state hospitals. 39.9 (5) Assist and actively cooperate with other departments, 39.10 agencies and institutions, local, state, and federal, by 39.11 performing services in conformity with the purposes of Laws 39.12 1939, chapter 431. 39.13 (6) Act as the agent of and cooperate with the federal 39.14 government in matters of mutual concern relative to and in 39.15 conformity with the provisions of Laws 1939, chapter 431, 39.16 including the administration of any federal funds granted to the 39.17 state to aid in the performance of any functions of the 39.18 commissioner as specified in Laws 1939, chapter 431, and 39.19 including the promulgation of rules making uniformly available 39.20 medical care benefits to all recipients of public assistance, at 39.21 such times as the federal government increases its participation 39.22 in assistance expenditures for medical care to recipients of 39.23 public assistance, the cost thereof to be borne in the same 39.24 proportion as are grants of aid to said recipients. 39.25 (7) Establish and maintain any administrative units 39.26 reasonably necessary for the performance of administrative 39.27 functions common to all divisions of the department. 39.28 (8) Act as designated guardian of both the estate and the 39.29 person of all the wards of the state of Minnesota, whether by 39.30 operation of law or by an order of court, without any further 39.31 act or proceeding whatever, except as to persons committed as 39.32 mentally retarded. For children under the guardianship of the 39.33 commissioner whose interests would be best served by adoptive 39.34 placement, the commissioner may contract with a licensed 39.35 child-placing agency or a Minnesota tribal social services 39.36 agency to provide adoption services. A contract with a licensed 40.1 child-placing agency must be designed to supplement existing 40.2 county efforts and may not replace existing county programs, 40.3 unless the replacement is agreed to by the county board and the 40.4 appropriate exclusive bargaining representative or the 40.5 commissioner has evidence that child placements of the county 40.6 continue to be substantially below that of other counties. 40.7 Funds encumbered and obligated under an agreement for a specific 40.8 child shall remain available until the terms of the agreement 40.9 are fulfilled or the agreement is terminated. 40.10 (9) Act as coordinating referral and informational center 40.11 on requests for service for newly arrived immigrants coming to 40.12 Minnesota. 40.13 (10) The specific enumeration of powers and duties as 40.14 hereinabove set forth shall in no way be construed to be a 40.15 limitation upon the general transfer of powers herein contained. 40.16 (11) Establish county, regional, or statewide schedules of 40.17 maximum fees and charges which may be paid by county agencies 40.18 for medical, dental, surgical, hospital, nursing and nursing 40.19 home care and medicine and medical supplies under all programs 40.20 of medical care provided by the state and for congregate living 40.21 care under the income maintenance programs. 40.22 (12) Have the authority to conduct and administer 40.23 experimental projects to test methods and procedures of 40.24 administering assistance and services to recipients or potential 40.25 recipients of public welfare. To carry out such experimental 40.26 projects, it is further provided that the commissioner of human 40.27 services is authorized to waive the enforcement of existing 40.28 specific statutory program requirements, rules, and standards in 40.29 one or more counties. The order establishing the waiver shall 40.30 provide alternative methods and procedures of administration, 40.31 shall not be in conflict with the basic purposes, coverage, or 40.32 benefits provided by law, and in no event shall the duration of 40.33 a project exceed four years. It is further provided that no 40.34 order establishing an experimental project as authorized by the 40.35 provisions of this section shall become effective until the 40.36 following conditions have been met: 41.1 (a) The secretary of health and human services of the 41.2 United States has agreed, for the same project, to waive state 41.3 plan requirements relative to statewide uniformity. 41.4 (b) A comprehensive plan, including estimated project 41.5 costs, shall be approved by the legislative advisory commission 41.6 and filed with the commissioner of administration. 41.7 (13) According to federal requirements, establish 41.8 procedures to be followed by local welfare boards in creating 41.9 citizen advisory committees, including procedures for selection 41.10 of committee members. 41.11 (14) Allocate federal fiscal disallowances or sanctions 41.12 which are based on quality control error rates for the aid to 41.13 families with dependent children program formerly codified in 41.14 sections 256.72 to 256.87, medical assistance, or food stamp 41.15 program in the following manner: 41.16 (a) One-half of the total amount of the disallowance shall 41.17 be borne by the county boards responsible for administering the 41.18 programs. For the medical assistance and the AFDC program 41.19 formerly codified in sections 256.72 to 256.87, disallowances 41.20 shall be shared by each county board in the same proportion as 41.21 that county's expenditures for the sanctioned program are to the 41.22 total of all counties' expenditures for the AFDC program 41.23 formerly codified in sections 256.72 to 256.87, and medical 41.24 assistance programs. For the food stamp program, sanctions 41.25 shall be shared by each county board, with 50 percent of the 41.26 sanction being distributed to each county in the same proportion 41.27 as that county's administrative costs for food stamps are to the 41.28 total of all food stamp administrative costs for all counties, 41.29 and 50 percent of the sanctions being distributed to each county 41.30 in the same proportion as that county's value of food stamp 41.31 benefits issued are to the total of all benefits issued for all 41.32 counties. Each county shall pay its share of the disallowance 41.33 to the state of Minnesota. When a county fails to pay the 41.34 amount due hereunder, the commissioner may deduct the amount 41.35 from reimbursement otherwise due the county, or the attorney 41.36 general, upon the request of the commissioner, may institute 42.1 civil action to recover the amount due. 42.2 (b) Notwithstanding the provisions of paragraph (a), if the 42.3 disallowance results from knowing noncompliance by one or more 42.4 counties with a specific program instruction, and that knowing 42.5 noncompliance is a matter of official county board record, the 42.6 commissioner may require payment or recover from the county or 42.7 counties, in the manner prescribed in paragraph (a), an amount 42.8 equal to the portion of the total disallowance which resulted 42.9 from the noncompliance, and may distribute the balance of the 42.10 disallowance according to paragraph (a). 42.11 (15) Develop and implement special projects that maximize 42.12 reimbursements and result in the recovery of money to the 42.13 state. For the purpose of recovering state money, the 42.14 commissioner may enter into contracts with third parties. Any 42.15 recoveries that result from projects or contracts entered into 42.16 under this paragraph shall be deposited in the state treasury 42.17 and credited to a special account until the balance in the 42.18 account reaches $1,000,000. When the balance in the account 42.19 exceeds $1,000,000, the excess shall be transferred and credited 42.20 to the general fund. All money in the account is appropriated 42.21 to the commissioner for the purposes of this paragraph. 42.22 (16) Have the authority to make direct payments to 42.23 facilities providing shelter to women and their children 42.24 according to section 256D.05, subdivision 3. Upon the written 42.25 request of a shelter facility that has been denied payments 42.26 under section 256D.05, subdivision 3, the commissioner shall 42.27 review all relevant evidence and make a determination within 30 42.28 days of the request for review regarding issuance of direct 42.29 payments to the shelter facility. Failure to act within 30 days 42.30 shall be considered a determination not to issue direct payments. 42.31 (17) Have the authority to establish and enforce the 42.32 following county reporting requirements: 42.33 (a) The commissioner shall establish fiscal and statistical 42.34 reporting requirements necessary to account for the expenditure 42.35 of funds allocated to counties for human services programs. 42.36 When establishing financial and statistical reporting 43.1 requirements, the commissioner shall evaluate all reports, in 43.2 consultation with the counties, to determine if the reports can 43.3 be simplified or the number of reports can be reduced. 43.4 (b) The county board shall submit monthly or quarterly 43.5 reports to the department as required by the commissioner. 43.6 Monthly reports are due no later than 15 working days after the 43.7 end of the month. Quarterly reports are due no later than 30 43.8 calendar days after the end of the quarter, unless the 43.9 commissioner determines that the deadline must be shortened to 43.10 20 calendar days to avoid jeopardizing compliance with federal 43.11 deadlines or risking a loss of federal funding. Only reports 43.12 that are complete, legible, and in the required format shall be 43.13 accepted by the commissioner. 43.14 (c) If the required reports are not received by the 43.15 deadlines established in clause (b), the commissioner may delay 43.16 payments and withhold funds from the county board until the next 43.17 reporting period. When the report is needed to account for the 43.18 use of federal funds and the late report results in a reduction 43.19 in federal funding, the commissioner shall withhold from the 43.20 county boards with late reports an amount equal to the reduction 43.21 in federal funding until full federal funding is received. 43.22 (d) A county board that submits reports that are late, 43.23 illegible, incomplete, or not in the required format for two out 43.24 of three consecutive reporting periods is considered 43.25 noncompliant. When a county board is found to be noncompliant, 43.26 the commissioner shall notify the county board of the reason the 43.27 county board is considered noncompliant and request that the 43.28 county board develop a corrective action plan stating how the 43.29 county board plans to correct the problem. The corrective 43.30 action plan must be submitted to the commissioner within 45 days 43.31 after the date the county board received notice of noncompliance. 43.32 (e) The final deadline for fiscal reports or amendments to 43.33 fiscal reports is one year after the date the report was 43.34 originally due. If the commissioner does not receive a report 43.35 by the final deadline, the county board forfeits the funding 43.36 associated with the report for that reporting period and the 44.1 county board must repay any funds associated with the report 44.2 received for that reporting period. 44.3 (f) The commissioner may not delay payments, withhold 44.4 funds, or require repayment under paragraph (c) or (e) if the 44.5 county demonstrates that the commissioner failed to provide 44.6 appropriate forms, guidelines, and technical assistance to 44.7 enable the county to comply with the requirements. If the 44.8 county board disagrees with an action taken by the commissioner 44.9 under paragraph (c) or (e), the county board may appeal the 44.10 action according to sections 14.57 to 14.69. 44.11 (g) Counties subject to withholding of funds under 44.12 paragraph (c) or forfeiture or repayment of funds under 44.13 paragraph (e) shall not reduce or withhold benefits or services 44.14 to clients to cover costs incurred due to actions taken by the 44.15 commissioner under paragraph (c) or (e). 44.16 (18) Allocate federal fiscal disallowances or sanctions for 44.17 audit exceptions when federal fiscal disallowances or sanctions 44.18 are based on a statewide random sample for the foster care 44.19 program under title IV-E of the Social Security Act, United 44.20 States Code, title 42, in direct proportion to each county's 44.21 title IV-E foster care maintenance claim for that period. 44.22 (19) Be responsible for ensuring the detection, prevention, 44.23 investigation, and resolution of fraudulent activities or 44.24 behavior by applicants, recipients, and other participants in 44.25 the human services programs administered by the department. 44.26 (20) Require county agencies to identify overpayments, 44.27 establish claims, and utilize all available and cost-beneficial 44.28 methodologies to collect and recover these overpayments in the 44.29 human services programs administered by the department. 44.30 (21) Have the authority to administer a drug rebate program 44.31 for drugs purchased pursuant to the prescription drug program 44.32 established under section 256.955 after the beneficiary's 44.33 satisfaction of any deductible established in the program. The 44.34 commissioner shall require a rebate agreement from all 44.35 manufacturers of covered drugs as defined in section 256B.0625, 44.36 subdivision 13. Rebate agreements for prescription drugs 45.1 delivered on or after July 1, 2002, must include rebates for 45.2 individuals covered under the prescription drug program who are 45.3 under 65 years of age. For each drug, the amount of the rebate 45.4 shall be equal to the basic rebate as defined for purposes of 45.5 the federal rebate program in United States Code, title 42, 45.6 section 1396r-8(c)(1). This basic rebate shall be applied to 45.7 single-source and multiple-source drugs. The manufacturers must 45.8 provide full payment within 30 days of receipt of the state 45.9 invoice for the rebate within the terms and conditions used for 45.10 the federal rebate program established pursuant to section 1927 45.11 of title XIX of the Social Security Act. The manufacturers must 45.12 provide the commissioner with any information necessary to 45.13 verify the rebate determined per drug. The rebate program shall 45.14 utilize the terms and conditions used for the federal rebate 45.15 program established pursuant to section 1927 of title XIX of the 45.16 Social Security Act. 45.17 (22) Have the authority to administer the federal drug 45.18 rebate program for drugs purchased under the medical assistance 45.19 program as allowed by section 1927 of title XIX of the Social 45.20 Security Act and according to the terms and conditions of 45.21 section 1927. Rebates shall be collected for all drugs that 45.22 have been dispensed or administered in an outpatient setting and 45.23 that are from manufacturers who have signed a rebate agreement 45.24 with the United States Department of Health and Human Services. 45.25 (23) Have the authority to administer a supplemental drug 45.26 rebate program for drugs purchased under the medical assistance 45.27 program and under the prescription drug program established in 45.28 section 256.955. The commissioner may enter into supplemental 45.29 rebate contracts with pharmaceutical manufacturers and may 45.30 require prior authorization for drugs that are from 45.31 manufacturers that have not signed a supplemental rebate 45.32 contract. Prior authorization of drugs shall be subject to the 45.33 provisions of section 256B.0625, subdivision 13, paragraph (b). 45.34 (24) Operate the department's communication systems account 45.35 established in Laws 1993, First Special Session chapter 1, 45.36 article 1, section 2, subdivision 2, to manage shared 46.1 communication costs necessary for the operation of the programs 46.2 the commissioner supervises. A communications account may also 46.3 be established for each regional treatment center which operates 46.4 communications systems. Each account must be used to manage 46.5 shared communication costs necessary for the operations of the 46.6 programs the commissioner supervises. The commissioner may 46.7 distribute the costs of operating and maintaining communication 46.8 systems to participants in a manner that reflects actual usage. 46.9 Costs may include acquisition, licensing, insurance, 46.10 maintenance, repair, staff time and other costs as determined by 46.11 the commissioner. Nonprofit organizations and state, county, 46.12 and local government agencies involved in the operation of 46.13 programs the commissioner supervises may participate in the use 46.14 of the department's communications technology and share in the 46.15 cost of operation. The commissioner may accept on behalf of the 46.16 state any gift, bequest, devise or personal property of any 46.17 kind, or money tendered to the state for any lawful purpose 46.18 pertaining to the communication activities of the department. 46.19 Any money received for this purpose must be deposited in the 46.20 department's communication systems accounts. Money collected by 46.21 the commissioner for the use of communication systems must be 46.22 deposited in the state communication systems account and is 46.23 appropriated to the commissioner for purposes of this section. 46.24(24)(25) Receive any federal matching money that is made 46.25 available through the medical assistance program for the 46.26 consumer satisfaction survey. Any federal money received for 46.27 the survey is appropriated to the commissioner for this 46.28 purpose. The commissioner may expend the federal money received 46.29 for the consumer satisfaction survey in either year of the 46.30 biennium. 46.31(25)(26) Incorporate cost reimbursement claims from First 46.32 Call Minnesota and Greater Twin Cities United Way into the 46.33 federal cost reimbursement claiming processes of the department 46.34 according to federal law, rule, and regulations. Any 46.35 reimbursement received is appropriated to the commissioner and 46.36 shall be disbursed to First Call Minnesota and Greater Twin 47.1 Cities United Way according to normal department payment 47.2 schedules. 47.3(26)(27) Develop recommended standards for foster care 47.4 homes that address the components of specialized therapeutic 47.5 services to be provided by foster care homes with those services. 47.6 Sec. 3. Minnesota Statutes 2001 Supplement, section 47.7 256.969, subdivision 3a, is amended to read: 47.8 Subd. 3a. [PAYMENTS.] (a) Acute care hospital billings 47.9 under the medical assistance program must not be submitted until 47.10 the recipient is discharged. However, the commissioner shall 47.11 establish monthly interim payments for inpatient hospitals that 47.12 have individual patient lengths of stay over 30 days regardless 47.13 of diagnostic category. Except as provided in section 256.9693, 47.14 medical assistance reimbursement for treatment of mental illness 47.15 shall be reimbursed based on diagnostic classifications. 47.16 Individual hospital payments established under this section and 47.17 sections 256.9685, 256.9686, and 256.9695, in addition to third 47.18 party and recipient liability, for discharges occurring during 47.19 the rate year shall not exceed, in aggregate, the charges for 47.20 the medical assistance covered inpatient services paid for the 47.21 same period of time to the hospital. This payment limitation 47.22 shall be calculated separately for medical assistance and 47.23 general assistance medical care services. The limitation on 47.24 general assistance medical care shall be effective for 47.25 admissions occurring on or after July 1, 1991. Services that 47.26 have rates established under subdivision 11 or 12, must be 47.27 limited separately from other services. After consulting with 47.28 the affected hospitals, the commissioner may consider related 47.29 hospitals one entity and may merge the payment rates while 47.30 maintaining separate provider numbers. The operating and 47.31 property base rates per admission or per day shall be derived 47.32 from the best Medicare and claims data available when rates are 47.33 established. The commissioner shall determine the best Medicare 47.34 and claims data, taking into consideration variables of recency 47.35 of the data, audit disposition, settlement status, and the 47.36 ability to set rates in a timely manner. The commissioner shall 48.1 notify hospitals of payment rates by December 1 of the year 48.2 preceding the rate year. The rate setting data must reflect the 48.3 admissions data used to establish relative values. Base year 48.4 changes from 1981 to the base year established for the rate year 48.5 beginning January 1, 1991, and for subsequent rate years, shall 48.6 not be limited to the limits ending June 30, 1987, on the 48.7 maximum rate of increase under subdivision 1. The commissioner 48.8 may adjust base year cost, relative value, and case mix index 48.9 data to exclude the costs of services that have been 48.10 discontinued by the October 1 of the year preceding the rate 48.11 year or that are paid separately from inpatient services. 48.12 Inpatient stays that encompass portions of two or more rate 48.13 years shall have payments established based on payment rates in 48.14 effect at the time of admission unless the date of admission 48.15 preceded the rate year in effect by six months or more. In this 48.16 case, operating payment rates for services rendered during the 48.17 rate year in effect and established based on the date of 48.18 admission shall be adjusted to the rate year in effect by the 48.19 hospital cost index. 48.20 (b) For fee-for-service admissions occurring on or after 48.21 July 1, 2003, the total payment, before third party liability 48.22 and spenddown, made to hospitals for inpatient services is 48.23 reduced by .25 percent from the current statutory rates. 48.24 Sec. 4. Minnesota Statutes 2001 Supplement, section 48.25 256B.056, subdivision 3, is amended to read: 48.26 Subd. 3. [ASSET LIMITATIONS FOR ELDERLY AND DISABLED 48.27 INDIVIDUALS.] To be eligible for medical assistance, a person 48.28 must not individually own more than $3,000 in assets, or if a 48.29 member of a household with two family members, husband and wife, 48.30 or parent and child, the household must not own more than $6,000 48.31 in assets, plus $200 for each additional legal dependent. In 48.32 addition to these maximum amounts, an eligible individual or 48.33 family may accrue interest on these amounts, but they must be 48.34 reduced to the maximum at the time of an eligibility 48.35 redetermination. The accumulation of the clothing and personal 48.36 needs allowance according to section 256B.35 must also be 49.1 reduced to the maximum at the time of the eligibility 49.2 redetermination. The value of assets that are not considered in 49.3 determining eligibility for medical assistance is the value of 49.4 those assets excluded under the supplemental security income 49.5 program for aged, blind, and disabled persons, with the 49.6 following exceptions: 49.7 (a) Household goods and personal effects are not considered. 49.8 (b) Capital and operating assets of a trade or business 49.9 that the local agency determines are necessary to the person's 49.10 ability to earn an income are not considered. 49.11 (c) Motor vehicles are excluded to the same extent excluded 49.12 by the supplemental security income program. 49.13 (d) Assets designated as burial expenses are excluded to 49.14 the same extent excluded by the supplemental security income 49.15 program. Burial expenses funded by annuity contracts or life 49.16 insurance policies must irrevocably designate the individual's 49.17 estate as contingent beneficiary to the extent proceeds are not 49.18 used for payment of selected burial expenses. 49.19 (e) Effective upon federal approval, for a person who no 49.20 longer qualifies as an employed person with a disability due to 49.21 loss of earnings, assets allowed while eligible for medical 49.22 assistance under section 256B.057, subdivision 9, are not 49.23 considered for 12 months, beginning with the first month of 49.24 ineligibility as an employed person with a disability, to the 49.25 extent that the person's total assets remain within the allowed 49.26 limits of section 256B.057, subdivision 9, paragraph (b). 49.27 Sec. 5. Minnesota Statutes 2001 Supplement, section 49.28 256B.057, subdivision 9, is amended to read: 49.29 Subd. 9. [EMPLOYED PERSONS WITH DISABILITIES.] (a) Medical 49.30 assistance may be paid for a person who is employed and who: 49.31 (1) meets the definition of disabled under the supplemental 49.32 security income program; 49.33 (2) is at least 16 but less than 65 years of age; 49.34 (3) meets the asset limits in paragraph (b); and 49.35 (4) pays a premium, if required, under paragraph (c). 49.36 The person must verify earnings from employment by documenting 50.1 that social security and Medicare taxes are withheld, and, if 50.2 applicable, state and federal income taxes are also withheld. 50.3 If the person is self-employed, the person must document payment 50.4 of self-employment tax and, if applicable, state and federal 50.5 income taxes. 50.6 Any spousal income or assets shall be disregarded for purposes 50.7 of eligibility and premium determinations. 50.8 After the month of enrollment, a person enrolled in medical 50.9 assistance under this subdivision who is temporarily unable to 50.10 work and without receipt of earned income due to a medical 50.11 condition, as verified by a physician, may retain eligibility 50.12 for up to four calendar months. 50.13 (b) For purposes of determining eligibility under this 50.14 subdivision, a person's assets must not exceed $20,000, 50.15 excluding: 50.16 (1) all assets excluded under section 256B.056; 50.17 (2) retirement accounts, including individual accounts, 50.18 401(k) plans, 403(b) plans, Keogh plans, and pension plans; and 50.19 (3) medical expense accounts set up through the person's 50.20 employer. 50.21 (c) A person whose earned and unearned income is equal to 50.22 or greater than 100 percent of federal poverty guidelines for 50.23 the applicable family size must pay a premium to be eligible for 50.24 medical assistance under this subdivision. The premium shall be 50.25 based on the person's gross earned and unearned income and the 50.26 applicable family size using a sliding fee scale established by 50.27 the commissioner, which begins at one percent of income at 100 50.28 percent of the federal poverty guidelines and increases to 7.5 50.29 percent of income for those with incomes at or above 300 percent 50.30 of the federal poverty guidelines. Annual adjustments in the 50.31 premium schedule based upon changes in the federal poverty 50.32 guidelines shall be effective for premiums due in July of each 50.33 year. 50.34 (d) A person's eligibility and premium shall be determined 50.35 by the local county agency. Premiums must be paid to the 50.36 commissioner. All premiums are dedicated to the commissioner. 51.1 (e) Any required premium shall be determined at application 51.2 and redetermined annually at recertification or when a change in 51.3 income or family size occurs. 51.4 (f) Premium payment is due upon notification from the 51.5 commissioner of the premium amount required. Premiums may be 51.6 paid in installments at the discretion of the commissioner. 51.7 (g) Nonpayment of the premium shall result in denial or 51.8 termination of medical assistance unless the person demonstrates 51.9 good cause for nonpayment. Good cause exists if the 51.10 requirements specified in Minnesota Rules, part 9506.0040, 51.11 subpart 7, items B to D, are met. Nonpayment shall include 51.12 payment with a returned, refused, or dishonored instrument. The 51.13 commissioner may require a guaranteed form of payment as the 51.14 only means to replace a returned, refused, or dishonored 51.15 instrument. 51.16 Sec. 6. Minnesota Statutes 2000, section 256B.059, 51.17 subdivision 1, is amended to read: 51.18 Subdivision 1. [DEFINITIONS.] (a) For purposes of this 51.19 section and section 256B.0595, the terms defined in this 51.20 subdivision have the meanings given them. 51.21 (b) "Community spouse" means the spouse of an 51.22 institutionalized spouse. 51.23 (c) "Spousal share" means one-half of the total value of 51.24 all assets, to the extent that either the institutionalized 51.25 spouse or the community spouse had an ownership interest at the 51.26 time of institutionalization. 51.27 (d) "Assets otherwise available to the community spouse" 51.28 means assets individually or jointly owned by the community 51.29 spouse, other than assets excluded by subdivision 5, paragraph 51.30 (c). 51.31 (e) "Community spouse asset allowance" is the value of 51.32 assets that can be transferred under subdivision 3. 51.33 (f) "Institutionalized spouse" means a person who is: 51.34 (1) in a hospital, nursing facility, or intermediate care 51.35 facility for persons with mental retardation, or receiving home 51.36 and community-based services under section 256B.0915 or 256B.49, 52.1 and is expected to remain in the facility or institution or 52.2 receive the home and community-based services for at least 30 52.3 consecutive days; and 52.4 (2) married to a person who is not in a hospital, nursing 52.5 facility, or intermediate care facility for persons with mental 52.6 retardation, and is not receiving home and community-based 52.7 services under section 256B.0915 or 256B.49. 52.8 (g) "For the sole benefit of" means no other individual or 52.9 entity can benefit in any way from the assets or income at the 52.10 time of a transfer or at any time in the future. 52.11 Sec. 7. Minnesota Statutes 2000, section 256B.059, 52.12 subdivision 3, is amended to read: 52.13 Subd. 3. [COMMUNITY SPOUSE ASSET ALLOWANCE.] An 52.14 institutionalized spouse may transfer assets to the community 52.15 spousesolelyfor the sole benefit of the community spouse. 52.16 Except for increased amounts allowable under subdivision 4, the 52.17 maximum amount of assets allowed to be transferred is the amount 52.18 which, when added to the assets otherwise available to the 52.19 community spouse, is as follows: 52.20 (1) prior to July 1, 1994, the greater of: 52.21 (i) $14,148; 52.22 (ii) the lesser of the spousal share or $70,740; or 52.23 (iii) the amount required by court order to be paid to the 52.24 community spouse; and 52.25 (2) for persons whose date of initial determination of 52.26 eligibility for medical assistance following their first 52.27 continuous period of institutionalization occurs on or after 52.28 July 1, 1994, the greater of: 52.29 (i) $20,000; 52.30 (ii) the lesser of the spousal share or $70,740; or 52.31 (iii) the amount required by court order to be paid to the 52.32 community spouse. 52.33 If the assets available to the community spouse are already 52.34 at the limit permissible under this section, or the higher limit 52.35 attributable to increases under subdivision 4, no assets may be 52.36 transferred from the institutionalized spouse to the community 53.1 spouse. The transfer must be made as soon as practicable after 53.2 the date the institutionalized spouse is determined eligible for 53.3 medical assistance, or within the amount of time needed for any 53.4 court order required for the transfer. On January 1, 1994, and 53.5 every January 1 thereafter, the limits in this subdivision shall 53.6 be adjusted by the same percentage change in the consumer price 53.7 index for all urban consumers (all items; United States city 53.8 average) between the two previous Septembers. These adjustments 53.9 shall also be applied to the limits in subdivision 5. 53.10 Sec. 8. Minnesota Statutes 2000, section 256B.059, 53.11 subdivision 5, is amended to read: 53.12 Subd. 5. [ASSET AVAILABILITY.] (a) At the time of initial 53.13 determination of eligibility for medical assistance benefits 53.14 following the first continuous period of institutionalization on 53.15 or after October 1, 1989, assets considered available to the 53.16 institutionalized spouse shall be the total value of all assets 53.17 in which either spouse has an ownership interest, reduced by the 53.18 following amount for the community spouse: 53.19 (1) prior to July 1, 1994, the greater of: 53.20 (i) $14,148; 53.21 (ii) the lesser of the spousal share or $70,740; or 53.22 (iii) the amount required by court order to be paid to the 53.23 community spouse; 53.24 (2) for persons whose date of initial determination of 53.25 eligibility for medical assistance following their first 53.26 continuous period of institutionalization occurs on or after 53.27 July 1, 1994, the greater of: 53.28 (i) $20,000; 53.29 (ii) the lesser of the spousal share or $70,740; or 53.30 (iii) the amount required by court order to be paid to the 53.31 community spouse. 53.32 The value of assets transferred for the sole benefit of the 53.33 community spouse under section 256B.0595, subdivision 4, in 53.34 combination with other assets available to the community spouse 53.35 under this section, cannot exceed the limit for the community 53.36 spouse asset allowance determined under subdivision 3 or 4. 54.1 Assets that exceed this allowance shall be considered available 54.2 to the institutionalized spouse whether or not converted to 54.3 income. If the community spouse asset allowance has been 54.4 increased under subdivision 4, then the assets considered 54.5 available to the institutionalized spouse under this subdivision 54.6 shall be further reduced by the value of additional amounts 54.7 allowed under subdivision 4. 54.8 (b) An institutionalized spouse may be found eligible for 54.9 medical assistance even though assets in excess of the allowable 54.10 amount are found to be available under paragraph (a) if the 54.11 assets are owned jointly or individually by the community 54.12 spouse, and the institutionalized spouse cannot use those assets 54.13 to pay for the cost of care without the consent of the community 54.14 spouse, and if: (i) the institutionalized spouse assigns to the 54.15 commissioner the right to support from the community spouse 54.16 under section 256B.14, subdivision 3; (ii) the institutionalized 54.17 spouse lacks the ability to execute an assignment due to a 54.18 physical or mental impairment; or (iii) the denial of 54.19 eligibility would cause an imminent threat to the 54.20 institutionalized spouse's health and well-being. 54.21 (c) After the month in which the institutionalized spouse 54.22 is determined eligible for medical assistance, during the 54.23 continuous period of institutionalization, no assets of the 54.24 community spouse are considered available to the 54.25 institutionalized spouse, unless the institutionalized spouse 54.26 has been found eligible under paragraph (b). 54.27 (d) Assets determined to be available to the 54.28 institutionalized spouse under this section must be used for the 54.29 health care or personal needs of the institutionalized spouse. 54.30 (e) For purposes of this section, assets do not include 54.31 assets excluded under the supplemental security income program. 54.32[EFFECTIVE DATE.] This section is effective July 1, 2002. 54.33 Sec. 9. Minnesota Statutes 2001 Supplement, section 54.34 256B.0595, subdivision 1, is amended to read: 54.35 Subdivision 1. [PROHIBITED TRANSFERS.] (a) For transfers 54.36 of assets made on or before August 10, 1993, if a person or the 55.1 person's spouse has given away, sold, or disposed of, for less 55.2 than fair market value, any asset or interest therein, except 55.3 assets other than the homestead that are excluded under the 55.4 supplemental security program, within 30 months before or any 55.5 time after the date of institutionalization if the person has 55.6 been determined eligible for medical assistance, or within 30 55.7 months before or any time after the date of the first approved 55.8 application for medical assistance if the person has not yet 55.9 been determined eligible for medical assistance, the person is 55.10 ineligible for long-term care services for the period of time 55.11 determined under subdivision 2. 55.12 (b) Effective for transfers made after August 10, 1993, a 55.13 person, a person's spouse, or any person, court, or 55.14 administrative body with legal authority to act in place of, on 55.15 behalf of, at the direction of, or upon the request of the 55.16 person or person's spouse, may not give away, sell, or dispose 55.17 of, for less than fair market value, any asset or interest 55.18 therein, except assets other than the homestead that are 55.19 excluded under the supplemental security income program, for the 55.20 purpose of establishing or maintaining medical assistance 55.21 eligibility. For purposes of determining eligibility for 55.22 long-term care services, any transfer of such assets within 36 55.23 months before or any time after an institutionalized person 55.24 applies for medical assistance, or 36 months before or any time 55.25 after a medical assistance recipient becomes institutionalized, 55.26 for less than fair market value may be considered. Any such 55.27 transfer is presumed to have been made for the purpose of 55.28 establishing or maintaining medical assistance eligibility and 55.29 the person is ineligible for long-term care services for the 55.30 period of time determined under subdivision 2, unless the person 55.31 furnishes convincing evidence to establish that the transaction 55.32 was exclusively for another purpose, or unless the transfer is 55.33 permitted under subdivision 3 or 4. Notwithstanding the 55.34 provisions of this paragraph, in the case of payments from a 55.35 trust or portions of a trust that are considered transfers of 55.36 assets under federal law, any transfers made within 60 months 56.1 before or any time after an institutionalized person applies for 56.2 medical assistance and within 60 months before or any time after 56.3 a medical assistance recipient becomes institutionalized, may be 56.4 considered. 56.5 (c) This section applies to transfers, for less than fair 56.6 market value, of income or assets, including assets that are 56.7 considered income in the month received, such as inheritances, 56.8 court settlements, and retroactive benefit payments or income to 56.9 which the person or the person's spouse is entitled but does not 56.10 receive due to action by the person, the person's spouse, or any 56.11 person, court, or administrative body with legal authority to 56.12 act in place of, on behalf of, at the direction of, or upon the 56.13 request of the person or the person's spouse. 56.14 (d) This section applies to payments for care or personal 56.15 services provided by a relative, unless the compensation was 56.16 stipulated in a notarized, written agreement which was in 56.17 existence when the service was performed, the care or services 56.18 directly benefited the person, and the payments made represented 56.19 reasonable compensation for the care or services provided. A 56.20 notarized written agreement is not required if payment for the 56.21 services was made within 60 days after the service was provided. 56.22 (e) This section applies to the portion of any asset or 56.23 interest that a person, a person's spouse, or any person, court, 56.24 or administrative body with legal authority to act in place of, 56.25 on behalf of, at the direction of, or upon the request of the 56.26 person or the person's spouse, transfers to any annuity that 56.27 exceeds the value of the benefit likely to be returned to the 56.28 person or spouse while alive, based on estimated life expectancy 56.29 using the life expectancy tables employed by the supplemental 56.30 security income program to determine the value of an agreement 56.31 for services for life. The commissioner may adopt rules 56.32 reducing life expectancies based on the need for long-term 56.33 care. This section applies to an annuity described in this 56.34 paragraph purchased on or after March 1, 2002, that: 56.35 (1) is not purchased from an insurance company or financial 56.36 institution that is subject to licensing or regulation by the 57.1 Minnesota department of commerce or a similar regulatory agency 57.2 of another state; 57.3 (2) does not pay out principal and interest in equal 57.4 monthly installments; or 57.5 (3) does not begin payment at the earliest possible date 57.6 after annuitization. 57.7 (f) For purposes of this section, long-term care services 57.8 include services in a nursing facility, services that are 57.9 eligible for payment according to section 256B.0625, subdivision 57.10 2, because they are provided in a swing bed, intermediate care 57.11 facility for persons with mental retardation, and home and 57.12 community-based services provided pursuant to sections 57.13 256B.0915, 256B.092, and 256B.49. For purposes of this 57.14 subdivision and subdivisions 2, 3, and 4, "institutionalized 57.15 person" includes a person who is an inpatient in a nursing 57.16 facility or in a swing bed, or intermediate care facility for 57.17 persons with mental retardation or who is receiving home and 57.18 community-based services under sections 256B.0915, 256B.092, and 57.19 256B.49. 57.20 Sec. 10. Minnesota Statutes 2001 Supplement, section 57.21 256B.0595, subdivision 2, is amended to read: 57.22 Subd. 2. [PERIOD OF INELIGIBILITY.] (a) For any 57.23 uncompensated transfer occurring on or before August 10, 1993, 57.24 the number of months of ineligibility for long-term care 57.25 services shall be the lesser of 30 months, or the uncompensated 57.26 transfer amount divided by the average medical assistance rate 57.27 for nursing facility services in the state in effect on the date 57.28 of application. The amount used to calculate the average 57.29 medical assistance payment rate shall be adjusted each July 1 to 57.30 reflect payment rates for the previous calendar year. The 57.31 period of ineligibility begins with the month in which the 57.32 assets were transferred. If the transfer was not reported to 57.33 the local agency at the time of application, and the applicant 57.34 received long-term care services during what would have been the 57.35 period of ineligibility if the transfer had been reported, a 57.36 cause of action exists against the transferee for the cost of 58.1 long-term care services provided during the period of 58.2 ineligibility, or for the uncompensated amount of the transfer, 58.3 whichever is less. The action may be brought by the state or 58.4 the local agency responsible for providing medical assistance 58.5 under chapter 256G. The uncompensated transfer amount is the 58.6 fair market value of the asset at the time it was given away, 58.7 sold, or disposed of, less the amount of compensation received. 58.8 (b) For uncompensated transfers made after August 10, 1993, 58.9 the number of months of ineligibility for long-term care 58.10 services shall be the total uncompensated value of the resources 58.11 transferred divided by the average medical assistance rate for 58.12 nursing facility services in the state in effect on the date of 58.13 application. The amount used to calculate the average medical 58.14 assistance payment rate shall be adjusted each July 1 to reflect 58.15 payment rates for the previous calendar year. The period of 58.16 ineligibility begins with the month in which the assets were 58.17 transferred except that if one or more uncompensated transfers 58.18 are made during a period of ineligibility, the total assets 58.19 transferred during the ineligibility period shall be combined 58.20 and a penalty period calculated to begin in the month the first 58.21 uncompensated transfer was made. If the transfer was not 58.22 reported to the local agency at the time of application, and the 58.23 applicant received medical assistance services during what would 58.24 have been the period of ineligibility if the transfer had been 58.25 reported, a cause of action exists against the transferee for 58.26 the cost of medical assistance services provided during the 58.27 period of ineligibility, or for the uncompensated amount of the 58.28 transfer, whichever is less. The action may be brought by the 58.29 state or the local agency responsible for providing medical 58.30 assistance under chapter 256G. The uncompensated transfer 58.31 amount is the fair market value of the asset at the time it was 58.32 given away, sold, or disposed of, less the amount of 58.33 compensation received. Effective for transfers made on or after 58.34 March 1, 1996, involving persons who apply for medical 58.35 assistance on or after April 13, 1996, no cause of action exists 58.36 for a transfer unless: 59.1 (1) the transferee knew or should have known that the 59.2 transfer was being made by a person who was a resident of a 59.3 long-term care facility or was receiving that level of care in 59.4 the community at the time of the transfer; 59.5 (2) the transferee knew or should have known that the 59.6 transfer was being made to assist the person to qualify for or 59.7 retain medical assistance eligibility; or 59.8 (3) the transferee actively solicited the transfer with 59.9 intent to assist the person to qualify for or retain eligibility 59.10 for medical assistance. 59.11 (c) If a calculation of a penalty period results in a 59.12 partial month, payments for long-term care services shall be 59.13 reduced in an amount equal to the fraction, except that in 59.14 calculating the value of uncompensated transfers, if the total 59.15 value of all uncompensated transfers made in a month not 59.16 included in an existing penalty period does not 59.17 exceed$500$200, then such transfers shall be disregarded for 59.18 each month prior to the month of application for or during 59.19 receipt of medical assistance. 59.20 Sec. 11. Minnesota Statutes 2000, section 256B.0595, 59.21 subdivision 4, is amended to read: 59.22 Subd. 4. [OTHER EXCEPTIONS TO TRANSFER PROHIBITION.] An 59.23 institutionalized person who has made, or whose spouse has made 59.24 a transfer prohibited by subdivision 1, is not ineligible for 59.25 long-term care services if one of the following conditions 59.26 applies: 59.27 (1) the assets were transferred to the individual's spouse 59.28 or to another for the sole benefit of the spouse; or 59.29 (2) the institutionalized spouse, prior to being 59.30 institutionalized, transferred assets to a spouse, provided that 59.31 the spouse to whom the assets were transferred does not then 59.32 transfer those assets to another person for less than fair 59.33 market value. (At the time when one spouse is 59.34 institutionalized, assets must be allocated between the spouses 59.35 as provided under section 256B.059); or 59.36 (3) the assets were transferred to the individual's child 60.1 who is blind or permanently and totally disabled as determined 60.2 in the supplemental security income program; or 60.3 (4) a satisfactory showing is made that the individual 60.4 intended to dispose of the assets either at fair market value or 60.5 for other valuable consideration; or 60.6 (5) the local agency determines that denial of eligibility 60.7 for long-term care services would work an undue hardship and 60.8 grants a waiver of a penalty resulting from a transfer for less 60.9 than fair market value based on an imminent threat to the 60.10 individual's health and well-being. Whenever an applicant or 60.11 recipient is denied eligibility because of a transfer for less 60.12 than fair market value, the local agency shall notify the 60.13 applicant or recipient that the applicant or recipient may 60.14 request a waiver of the penalty if the denial of eligibility 60.15 will cause undue hardship. In evaluating a waiver, the local 60.16 agency shall take into account whether the individual was the 60.17 victim of financial exploitation, whether the individual has 60.18 made reasonable efforts to recover the transferred property or 60.19 resource, and other factors relevant to a determination of 60.20 hardship. If the local agency does not approve a hardship 60.21 waiver, the local agency shall issue a written notice to the 60.22 individual stating the reasons for the denial and the process 60.23 for appealing the local agency's decision. When a waiver is 60.24 granted, a cause of action exists against the person to whom the 60.25 assets were transferred for that portion of long-term care 60.26 services granted within: 60.27 (i) 30 months of a transfer made on or before August 10, 60.28 1993; 60.29 (ii) 60 months of a transfer if the assets were transferred 60.30 after August 30, 1993, to a trust or portion of a trust that is 60.31 considered a transfer of assets under federal law; or 60.32 (iii) 36 months of a transfer if transferred in any other 60.33 manner after August 10, 1993, 60.34 or the amount of the uncompensated transfer, whichever is less, 60.35 together with the costs incurred due to the action. The action 60.36 shall be brought by the state unless the state delegates this 61.1 responsibility to the local agency responsible for providing 61.2 medical assistance under this chapter; or 61.3 (6) for transfers occurring after August 10, 1993, the 61.4 assets were transferred by the person or person's spouse: (i) 61.5 into a trust establishedsolelyfor the sole benefit of a son or 61.6 daughter of any age who is blind or disabled as defined by the 61.7 Supplemental Security Income program; or (ii) into a trust 61.8 establishedsolelyfor the sole benefit of an individual who is 61.9 under 65 years of age who is disabled as defined by the 61.10 Supplemental Security Income program. 61.11 "For the sole benefit of" has the meaning found in section 61.12 256B.059, subdivision 1. 61.13[EFFECTIVE DATE.] This section is effective July 1, 2002. 61.14 Sec. 12. Minnesota Statutes 2001 Supplement, section 61.15 256B.0625, subdivision 13, is amended to read: 61.16 Subd. 13. [DRUGS.] (a) Medical assistance covers drugs, 61.17 except for fertility drugs when specifically used to enhance 61.18 fertility, if prescribed by a licensed practitioner and 61.19 dispensed by a licensed pharmacist, by a physician enrolled in 61.20 the medical assistance program as a dispensing physician, or by 61.21 a physician or a nurse practitioner employed by or under 61.22 contract with a community health board as defined in section 61.23 145A.02, subdivision 5, for the purposes of communicable disease 61.24 control. The commissioner, after receiving recommendations from 61.25 professional medical associations and professional pharmacist 61.26 associations, shall designate a formulary committee to advise 61.27 the commissioner on the names of drugs for which payment is 61.28 made, recommend a system for reimbursing providers on a set fee 61.29 or charge basis rather than the present system, and develop 61.30 methods encouraging use of generic drugs when they are less 61.31 expensive and equally effective as trademark drugs. The 61.32 formulary committee shall consist of nine members, four of whom 61.33 shall be physicians who are not employed by the department of 61.34 human services, and a majority of whose practice is for persons 61.35 paying privately or through health insurance, three of whom 61.36 shall be pharmacists who are not employed by the department of 62.1 human services, and a majority of whose practice is for persons 62.2 paying privately or through health insurance, a consumer 62.3 representative, and a nursing home representative. Committee 62.4 members shall serve three-year terms and shall serve without 62.5 compensation. Members may be reappointed once. 62.6 (b) The commissioner shall establish a drug formulary. Its 62.7 establishment and publication shall not be subject to the 62.8 requirements of the Administrative Procedure Act, but the 62.9 formulary committee shall review and comment on the formulary 62.10 contents.The formulary committee shall review and recommend62.11drugs which require prior authorization. The formulary62.12committee may recommend drugs for prior authorization directly62.13to the commissioner, as long as opportunity for public input is62.14provided. Prior authorization may be requested by the62.15commissioner based on medical and clinical criteria before62.16certain drugs are eligible for payment. Before a drug may be62.17considered for prior authorization at the request of the62.18commissioner:62.19(1) the drug formulary committee must develop criteria to62.20be used for identifying drugs; the development of these criteria62.21is not subject to the requirements of chapter 14, but the62.22formulary committee shall provide opportunity for public input62.23in developing criteria;62.24(2) the drug formulary committee must hold a public forum62.25and receive public comment for an additional 15 days; and62.26(3) the commissioner must provide information to the62.27formulary committee on the impact that placing the drug on prior62.28authorization will have on the quality of patient care and62.29information regarding whether the drug is subject to clinical62.30abuse or misuse. Prior authorization may be required by the62.31commissioner before certain formulary drugs are eligible for62.32payment.The formulary shall not include: 62.33 (i) drugs or products for which there is no federal 62.34 funding; 62.35 (ii) over-the-counter drugs, except for antacids, 62.36 acetaminophen, family planning products, aspirin, insulin, 63.1 products for the treatment of lice, vitamins for adults with 63.2 documented vitamin deficiencies, vitamins for children under the 63.3 age of seven and pregnant or nursing women, and any other 63.4 over-the-counter drug identified by the commissioner, in 63.5 consultation with the drug formulary committee, as necessary, 63.6 appropriate, and cost-effective for the treatment of certain 63.7 specified chronic diseases, conditions or disorders, and this 63.8 determination shall not be subject to the requirements of 63.9 chapter 14; 63.10 (iii) anorectics, except that medically necessary 63.11 anorectics shall be covered for a recipient previously diagnosed 63.12 as having pickwickian syndrome and currently diagnosed as having 63.13 diabetes and being morbidly obese; 63.14 (iv) drugs for which medical value has not been 63.15 established; and 63.16 (v) drugs from manufacturers who have not signed a rebate 63.17 agreement with the Department of Health and Human Services 63.18 pursuant to section 1927 of title XIX of the Social Security Act. 63.19 The commissioner shall publish conditions for prohibiting 63.20 payment for specific drugs after considering the formulary 63.21 committee's recommendations. An honorarium of $100 per meeting 63.22 and reimbursement for mileage shall be paid to each committee 63.23 member in attendance. 63.24 (c) The basis for determining the amount of payment shall 63.25 be the lower of the actual acquisition costs of the drugs plus a 63.26 fixed dispensing fee; the maximum allowable cost set by the 63.27 federal government or by the commissioner plus the fixed 63.28 dispensing fee; or the usual and customary price charged to the 63.29 public. The pharmacy dispensing fee shall be$3.65$4.15 for 63.30 the period from July 1, 2002, to June 30, 2003, and $4.20 63.31 effective July 1, 2003, except that the dispensing fee for 63.32 intravenous solutions which must be compounded by the pharmacist 63.33 shall be $8 per bag, $14 per bag for cancer chemotherapy 63.34 products, and $30 per bag for total parenteral nutritional 63.35 products dispensed in one liter quantities, or $44 per bag for 63.36 total parenteral nutritional products dispensed in quantities 64.1 greater than one liter. Actual acquisition cost includes 64.2 quantity and other special discounts except time and cash 64.3 discounts. The actual acquisition cost of a drug shall be 64.4 estimated by the commissioner, at average wholesale price 64.5 minusnine14 percent, except that where a drug has had its 64.6 wholesale price reduced as a result of the actions of the 64.7 National Association of Medicaid Fraud Control Units, the 64.8 estimated actual acquisition cost shall be the reduced average 64.9 wholesale price, without thenine14 percent deduction. The 64.10 maximum allowable cost of a multisource drug may be set by the 64.11 commissioner and it shall be comparable to, but no higher than, 64.12 the maximum amount paid by other third-party payors in this 64.13 state who have maximum allowable cost programs.The64.14commissioner shall set maximum allowable costs for multisource64.15drugs that are not on the federal upper limit list as described64.16in United States Code, title 42, chapter 7, section 1396r-8(e),64.17the Social Security Act, and Code of Federal Regulations, title64.1842, part 447, section 447.332.Establishment of the amount of 64.19 payment for drugs shall not be subject to the requirements of 64.20 the Administrative Procedure Act. An additional dispensing fee 64.21 of $.30 may be added to the dispensing fee paid to pharmacists 64.22 for legend drug prescriptions dispensed to residents of 64.23 long-term care facilities when a unit dose blister card system, 64.24 approved by the department, is used. Under this type of 64.25 dispensing system, the pharmacist must dispense a 30-day supply 64.26 of drug. The National Drug Code (NDC) from the drug container 64.27 used to fill the blister card must be identified on the claim to 64.28 the department. The unit dose blister card containing the drug 64.29 must meet the packaging standards set forth in Minnesota Rules, 64.30 part 6800.2700, that govern the return of unused drugs to the 64.31 pharmacy for reuse. The pharmacy provider will be required to 64.32 credit the department for the actual acquisition cost of all 64.33 unused drugs that are eligible for reuse. Over-the-counter 64.34 medications must be dispensed in the manufacturer's unopened 64.35 package. The commissioner may permit the drug clozapine to be 64.36 dispensed in a quantity that is less than a 30-day supply. 65.1 Whenever a generically equivalent product is available, payment 65.2 shall be on the basis of the actual acquisition cost of the 65.3 generic drug, unless the prescriber specifically indicates 65.4 "dispense as written - brand necessary" on the prescription as 65.5 required by section 151.21, subdivision 2. 65.6 (d)For purposes of this subdivision, "multisource drugs"65.7means covered outpatient drugs, excluding innovator multisource65.8drugs for which there are two or more drug products, which:65.9(1) are related as therapeutically equivalent under the65.10Food and Drug Administration's most recent publication of65.11"Approved Drug Products with Therapeutic Equivalence65.12Evaluations";65.13(2) are pharmaceutically equivalent and bioequivalent as65.14determined by the Food and Drug Administration; and65.15(3) are sold or marketed in Minnesota.65.16"Innovator multisource drug" means a multisource drug that was65.17originally marketed under an original new drug application65.18approved by the Food and Drug Administration.The formulary 65.19 committee shall review and recommend drugs which require prior 65.20 authorization. The formulary committee may recommend drugs for 65.21 prior authorization directly to the commissioner, as long as 65.22 opportunity for public input is provided. Prior authorization 65.23 may be requested by the commissioner based on medical and 65.24 clinical criteria and on cost before certain drugs are eligible 65.25 for payment. Before a drug may be considered for prior 65.26 authorization at the request of the commissioner: 65.27 (1) the drug formulary committee must develop criteria to 65.28 be used for identifying drugs; the development of these criteria 65.29 is not subject to the requirements of chapter 14, but the 65.30 formulary committee shall provide opportunity for public input 65.31 in developing criteria; 65.32 (2) the drug formulary committee must hold a public forum 65.33 and receive public comment for an additional 15 days; and 65.34 (3) the commissioner must provide information to the 65.35 formulary committee on the impact that placing the drug on prior 65.36 authorization will have on the quality of patient care and on 66.1 program costs, and information regarding whether the drug is 66.2 subject to clinical abuse or misuse. Prior authorization may be 66.3 required by the commissioner before certain formulary drugs are 66.4 eligible for payment. 66.5 (e) The basis for determining the amount of payment for 66.6 drugs administered in an outpatient setting shall be the lower 66.7 of the usual and customary cost submitted by the provider; the 66.8 average wholesale price minus five percent; or the maximum 66.9 allowable cost set by the federal government under United States 66.10 Code, title 42, chapter 7, section 1396r-8(e), and Code of 66.11 Federal Regulations, title 42, section 447.332, or by the 66.12 commissioner under paragraph (c). 66.13 Sec. 13. Minnesota Statutes 2000, section 256B.32, is 66.14 amended to read: 66.15 256B.32 [FACILITY FEE FOR OUTPATIENT HOSPITAL EMERGENCY 66.16 ROOM AND CLINIC VISITS.] 66.17 (a) The commissioner shall establish a facility fee payment 66.18 mechanism that will pay a facility fee to all enrolled 66.19 outpatient hospitals for each emergency room or outpatient 66.20 clinic visit provided on or after July 1, 1989. This payment 66.21 mechanism may not result in an overall increase in outpatient 66.22 payment rates. This section does not apply to federally 66.23 mandated maximum payment limits, department approved program 66.24 packages, or services billed using a nonoutpatient hospital 66.25 provider number. 66.26 (b) For fee-for-service services provided on or after July 66.27 1, 2003, the total payment, before third party liability and 66.28 spenddown, made to hospitals for outpatient hospital facility 66.29 services is reduced by .25 percent from the current statutory 66.30 rates. 66.31 Sec. 14. Minnesota Statutes 2000, section 256B.69, 66.32 subdivision 5a, is amended to read: 66.33 Subd. 5a. [MANAGED CARE CONTRACTS.] (a) Managed care 66.34 contracts under this section and sections 256L.12 and 256D.03, 66.35 shall be entered into or renewed on a calendar year basis 66.36 beginning January 1, 1996. Managed care contracts which were in 67.1 effect on June 30, 1995, and set to renew on July 1, 1995, shall 67.2 be renewed for the period July 1, 1995 through December 31, 1995 67.3 at the same terms that were in effect on June 30, 1995. 67.4 (b) A prepaid health plan providing covered health services 67.5 for eligible persons pursuant to chapters 256B, 256D, and 256L, 67.6 is responsible for complying with the terms of its contract with 67.7 the commissioner. Requirements applicable to managed care 67.8 programs under chapters 256B, 256D, and 256L, established after 67.9 the effective date of a contract with the commissioner take 67.10 effect when the contract is next issued or renewed. 67.11 (c) Effective for services rendered on or after January 1, 67.12 2003, the commissioner shall withhold five percent of managed 67.13 care plan payments under this section for the prepaid medical 67.14 assistance and general assistance medical care programs pending 67.15 completion of performance targets. The withheld funds will be 67.16 returned no sooner than July of the following year if 67.17 performance targets in the contract are achieved. The 67.18 commissioner may exclude special demonstration projects under 67.19 subdivision 23. 67.20 Sec. 15. Minnesota Statutes 2001 Supplement, section 67.21 256B.69, subdivision 5b, is amended to read: 67.22 Subd. 5b. [PROSPECTIVE REIMBURSEMENT RATES.] (a) For 67.23 prepaid medical assistance and general assistance medical care 67.24 program contract rates set by the commissioner under subdivision 67.25 5 and effective on or after January 1,19982003, capitation 67.26 rates for nonmetropolitan counties shall on a weighted average 67.27 be no less than8887 percent of the capitation rates for 67.28 metropolitan counties, excluding Hennepin county. The 67.29 commissioner shall make a pro rata adjustment in capitation 67.30 rates paid to counties other than nonmetropolitan counties in 67.31 order to make this provision budget neutral. 67.32 (b)For prepaid medical assistance program contract rates67.33set by the commissioner under subdivision 5 and effective on or67.34after January 1, 2001, capitation rates for nonmetropolitan67.35counties shall, on a weighted average, be no less than 8967.36percent of the capitation rates for metropolitan counties,68.1excluding Hennepin county.68.2(c)This subdivision shall not affect the nongeographically 68.3 based risk adjusted rates established under section 62Q.03, 68.4 subdivision 5a. 68.5 Sec. 16. Minnesota Statutes 2001 Supplement, section 68.6 256B.69, subdivision 5c, is amended to read: 68.7 Subd. 5c. [MEDICAL EDUCATION AND RESEARCH FUND.] (a) The 68.8 commissioner of human services shall transfer each year to the 68.9 medical education and research fund established under section 68.10 62J.692, the following: 68.11 (1) an amount equal to the reduction in the prepaid medical 68.12 assistance and prepaid general assistance medical care payments 68.13 as specified in this clause. Until January 1, 2002, the county 68.14 medical assistance and general assistance medical care 68.15 capitation base rate prior to plan specific adjustments and 68.16 after the regional rate adjustments under section 256B.69, 68.17 subdivision 5b, is reduced 6.3 percent for Hennepin county, two 68.18 percent for the remaining metropolitan counties, and no 68.19 reduction for nonmetropolitan Minnesota counties; and after 68.20 January 1, 2002, the county medical assistance and general 68.21 assistance medical care capitation base rate prior to plan 68.22 specific adjustments is reduced 6.3 percent for Hennepin county, 68.23 two percent for the remaining metropolitan counties, and 1.6 68.24 percent for nonmetropolitan Minnesota counties. Nursing 68.25 facility and elderly waiver payments and demonstration project 68.26 payments operating under subdivision 23 are excluded from this 68.27 reduction. The amount calculated under this clause shall not be 68.28 adjusted for periods already paid due to subsequent changes to 68.29 the capitation payments;and68.30 (2) beginning July 1, 2001, $2,537,000 from the capitation 68.31 rates paid under this section plus any federal matching funds on 68.32 this amount; and 68.33 (3) beginning July 1, 2002, an additional $10,000,000 from 68.34 the capitation rates paid under this section. 68.35 (b) This subdivision shall be effective upon approval of a 68.36 federal waiver which allows federal financial participation in 69.1 the medical education and research fund. 69.2 Sec. 17. Minnesota Statutes 2000, section 256B.69, is 69.3 amended by adding a subdivision to read: 69.4 Subd. 5f. [CAPITATION RATES.] Beginning July 1, 2002, the 69.5 capitation rates paid under this section are increased by 69.6 $10,000,000 per year. 69.7 Sec. 18. Minnesota Statutes 2000, section 256B.69, is 69.8 amended by adding a subdivision to read: 69.9 Subd. 5g. [PAYMENT FOR COVERED SERVICES.] For services 69.10 rendered on or after July 1, 2003, the total payment made to 69.11 managed care plans for providing covered services under the 69.12 medical assistance and general assistance medical care programs 69.13 is reduced by .25 percent from their current statutory rates. 69.14 This provision excludes payments for nursing home services, home 69.15 and community-based waivers, and payments to demonstration 69.16 projects for persons with disabilities. 69.17 Sec. 19. Minnesota Statutes 2001 Supplement, section 69.18 256B.75, is amended to read: 69.19 256B.75 [HOSPITAL OUTPATIENT REIMBURSEMENT.] 69.20 (a) For outpatient hospital facility fee payments for 69.21 services rendered on or after October 1, 1992, the commissioner 69.22 of human services shall pay the lower of (1) submitted charge, 69.23 or (2) 32 percent above the rate in effect on June 30, 1992, 69.24 except for those services for which there is a federal maximum 69.25 allowable payment. Effective for services rendered on or after 69.26 January 1, 2000, payment rates for nonsurgical outpatient 69.27 hospital facility fees and emergency room facility fees shall be 69.28 increased by eight percent over the rates in effect on December 69.29 31, 1999, except for those services for which there is a federal 69.30 maximum allowable payment. Services for which there is a 69.31 federal maximum allowable payment shall be paid at the lower of 69.32 (1) submitted charge, or (2) the federal maximum allowable 69.33 payment. Total aggregate payment for outpatient hospital 69.34 facility fee services shall not exceed the Medicare upper 69.35 limit. If it is determined that a provision of this section 69.36 conflicts with existing or future requirements of the United 70.1 States government with respect to federal financial 70.2 participation in medical assistance, the federal requirements 70.3 prevail. The commissioner may, in the aggregate, prospectively 70.4 reduce payment rates to avoid reduced federal financial 70.5 participation resulting from rates that are in excess of the 70.6 Medicare upper limitations. 70.7 (b) Notwithstanding paragraph (a), payment for outpatient, 70.8 emergency, and ambulatory surgery hospital facility fee services 70.9 for critical access hospitals designated under section 144.1483, 70.10 clause (11), shall be paid on a cost-based payment system that 70.11 is based on the cost-finding methods and allowable costs of the 70.12 Medicare program. 70.13 (c) Effective for services provided on or after July 1, 70.1420022003, rates that are based on the Medicare outpatient 70.15 prospective payment system shall be replaced by a budget neutral 70.16 prospective payment system that is derived using medical 70.17 assistance data. The commissioner shall provide a proposal to 70.18 the20022003 legislature to define and implement this provision. 70.19 (d) For fee-for-service services provided on or after July 70.20 1, 2003, the total payment, before third party liability and 70.21 spenddown, made to hospitals for outpatient hospital facility 70.22 services is reduced by .25 percent from the current statutory 70.23 rate. 70.24 Sec. 20. Minnesota Statutes 2000, section 256L.07, 70.25 subdivision 1, is amended to read: 70.26 Subdivision 1. [GENERAL REQUIREMENTS.] (a) Children 70.27 enrolled in the original children's health plan as of September 70.28 30, 1992, children who enrolled in the MinnesotaCare program 70.29 after September 30, 1992, pursuant to Laws 1992, chapter 549, 70.30 article 4, section 17, and children who have family gross 70.31 incomes that are equal to or less than150175 percent of the 70.32 federal poverty guidelines are eligible without meeting the 70.33 requirements of subdivision 2, as long as they maintain 70.34 continuous coverage in the MinnesotaCare program or medical 70.35 assistance. Children who apply for MinnesotaCare on or after 70.36 the implementation date of the employer-subsidized health 71.1 coverage program as described in Laws 1998, chapter 407, article 71.2 5, section 45, who have family gross incomes that are equal to 71.3 or less than150175 percent of the federal poverty guidelines, 71.4 must meet the requirements of subdivision 2 to be eligible for 71.5 MinnesotaCare. 71.6 (b) Families enrolled in MinnesotaCare under section 71.7 256L.04, subdivision 1, whose income increases above 275 percent 71.8 of the federal poverty guidelines, are no longer eligible for 71.9 the program and shall be disenrolled by the commissioner. 71.10 Individuals enrolled in MinnesotaCare under section 256L.04, 71.11 subdivision 7, whose income increases above 175 percent of the 71.12 federal poverty guidelines are no longer eligible for the 71.13 program and shall be disenrolled by the commissioner. For 71.14 persons disenrolled under this subdivision, MinnesotaCare 71.15 coverage terminates the last day of the calendar month following 71.16 the month in which the commissioner determines that the income 71.17 of a family or individual exceeds program income limits. 71.18 (c) Notwithstanding paragraph (b), individuals and families 71.19 may remain enrolled in MinnesotaCare if ten percent of their 71.20 annual income is less than the annual premium for a policy with 71.21 a $500 deductible available through the Minnesota comprehensive 71.22 health association. Individuals and families who are no longer 71.23 eligible for MinnesotaCare under this subdivision shall be given 71.24 an 18-month notice period from the date that ineligibility is 71.25 determined before disenrollment. 71.26[EFFECTIVE DATE.] This section is effective July 1, 2003. 71.27 Sec. 21. Minnesota Statutes 2000, section 256L.07, 71.28 subdivision 3, is amended to read: 71.29 Subd. 3. [OTHER HEALTH COVERAGE.] (a) Families and 71.30 individuals enrolled in the MinnesotaCare program must have no 71.31 health coverage while enrolled or for at least four months prior 71.32 to application and renewal. Children enrolled in the original 71.33 children's health plan and children in families with income 71.34 equal to or less than150175 percent of the federal poverty 71.35 guidelines, who have other health insurance, are eligible if the 71.36 coverage: 72.1 (1) lacks two or more of the following: 72.2 (i) basic hospital insurance; 72.3 (ii) medical-surgical insurance; 72.4 (iii) prescription drug coverage; 72.5 (iv) dental coverage; or 72.6 (v) vision coverage; 72.7 (2) requires a deductible of $100 or more per person per 72.8 year; or 72.9 (3) lacks coverage because the child has exceeded the 72.10 maximum coverage for a particular diagnosis or the policy 72.11 excludes a particular diagnosis. 72.12 The commissioner may change this eligibility criterion for 72.13 sliding scale premiums in order to remain within the limits of 72.14 available appropriations. The requirement of no health coverage 72.15 does not apply to newborns. 72.16 (b) Medical assistance, general assistance medical care, 72.17 and civilian health and medical program of the uniformed 72.18 service, CHAMPUS, are not considered insurance or health 72.19 coverage for purposes of the four-month requirement described in 72.20 this subdivision. 72.21 (c) For purposes of this subdivision, Medicare Part A or B 72.22 coverage under title XVIII of the Social Security Act, United 72.23 States Code, title 42, sections 1395c to 1395w-4, is considered 72.24 health coverage. An applicant or enrollee may not refuse 72.25 Medicare coverage to establish eligibility for MinnesotaCare. 72.26 (d) Applicants who were recipients of medical assistance or 72.27 general assistance medical care within one month of application 72.28 must meet the provisions of this subdivision and subdivision 2. 72.29[EFFECTIVE DATE.] This section is effective July 1, 2003. 72.30 Sec. 22. Minnesota Statutes 2000, section 256L.12, 72.31 subdivision 9, is amended to read: 72.32 Subd. 9. [RATE SETTING.] (a) Rates will be prospective, 72.33 per capita, where possible. The commissioner may allow health 72.34 plans to arrange for inpatient hospital services on a risk or 72.35 nonrisk basis. The commissioner shall consult with an 72.36 independent actuary to determine appropriate rates. 73.1 (b) For services rendered on or after January 1, 2003, the 73.2 commissioner shall withhold .5 percent of managed care plan 73.3 payments under this section pending completion of performance 73.4 targets. The withheld funds will be returned no sooner than 73.5 July 1 and no later than July 31 of the following year if 73.6 performance targets in the contract are achieved. 73.7 Sec. 23. Minnesota Statutes 2001 Supplement, section 73.8 256L.15, subdivision 1, is amended to read: 73.9 Subdivision 1. [PREMIUM DETERMINATION.] (a) Families with 73.10 children and individuals shall pay a premium determined 73.11 according to a sliding fee based on a percentage of the family's 73.12 gross family income. 73.13 (b) Pregnant women and children under age two are exempt 73.14 from the provisions of section 256L.06, subdivision 3, paragraph 73.15 (b), clause (3), requiring disenrollment for failure to pay 73.16 premiums. For pregnant women, this exemption continues until 73.17 the first day of the month following the 60th day postpartum. 73.18 Women who remain enrolled during pregnancy or the postpartum 73.19 period, despite nonpayment of premiums, shall be disenrolled on 73.20 the first of the month following the 60th day postpartum for the 73.21 penalty period that otherwise applies under section 256L.06, 73.22 unless they begin paying premiums. 73.23(c) Effective July 1, 2002, through June 30, 2006, at their73.24option, children with gross family income at or below 21773.25percent of the federal poverty guidelines who are eligible for73.26MinnesotaCare in the first month following termination from73.27medical assistance shall not pay a premium for 12 months.73.28[EFFECTIVE DATE.] This section is effective July 1, 2002. 73.29 Sec. 24. Minnesota Statutes 2000, section 256L.15, 73.30 subdivision 3, is amended to read: 73.31 Subd. 3. [EXCEPTIONS TO SLIDING SCALE.] An annual premium 73.32 of $48 is required for all children in families with income at 73.33 or less than150175 percent of federal poverty guidelines. 73.34[EFFECTIVE DATE.] This section is effective July 1, 2003. 73.35 Sec. 25. [REPEALER.] 73.36 Minnesota Statutes 2001 Supplement, sections 256B.0625, 74.1 subdivision 5a; and 256L.03, subdivision 5a, are repealed. 74.2 ARTICLE 8 74.3 MISCELLANEOUS 74.4 Section 1. Minnesota Statutes 2000, section 145.9266, 74.5 subdivision 3, is amended to read: 74.6 Subd. 3. [PROFESSIONAL TRAINING AND EDUCATION ABOUT FETAL 74.7 ALCOHOL SYNDROME.] (a) The commissioner of health, in 74.8 collaboration with the board of medical practice, the board of 74.9 nursing, and other professional boards and state agencies, shall 74.10 developcurricula andmaterials about fetal alcohol syndrome for 74.11 professional training of health care providers, social service 74.12 providers, educators, and judicial and corrections systems 74.13 professionals. The trainingand curriculashall increase 74.14 knowledge and develop practical skills of professionals to help 74.15 them address the needs of at-risk pregnant women and the needs 74.16 of individuals affected by fetal alcohol syndrome or fetal 74.17 alcohol effects and their families. 74.18 (b) Training for health care providers shall focus on skill 74.19 building for screening, counseling, referral, and follow-up for 74.20 women using or at risk of using alcohol while pregnant. 74.21 Training for health care professionals shall include methods for 74.22 diagnosis and evaluation of fetal alcohol syndrome and fetal 74.23 alcohol effects. Training for education, judicial, and 74.24 corrections professionals shall involve effective education 74.25 strategies, methods to identify the behaviors and learning 74.26 styles of children with alcohol-related birth defects, and 74.27 methods to identify available referral and community resources. 74.28 (c) Training and education for social service providers 74.29 shall focus on resources for assessing, referring, and treating 74.30 at-risk pregnant women, changes in the mandatory reporting and 74.31 commitment laws, and resources for affected children and their 74.32 families. 74.33 Sec. 2. Minnesota Statutes 2000, section 251.013, 74.34 subdivision 1, is amended to read: 74.35 Subdivision 1. [INTENT.] (a) It is the intent of the 74.36 legislature that the Ah-Gwah-Ching center continue operation in 75.1 Walker, Minnesota, as a provider of nursing care to geriatric 75.2 and other residents whose aggressive or difficult to manage 75.3 behavioral needs cannot be met in their home community. 75.4 (b) It is the intent of the legislature that the Fergus 75.5 Falls regional treatment center and the Willmar regional 75.6 treatment center continue operation in Fergus Falls and Willmar 75.7 respectively, as providers of mental health and chemical 75.8 dependency treatment, and also as operators of community-based 75.9 programs for persons with developmental disabilities. 75.10 Sec. 3. Minnesota Statutes 2001 Supplement, section 75.11 256I.05, subdivision 1e, is amended to read: 75.12 Subd. 1e. [SUPPLEMENTARY RATE FOR CERTAIN FACILITIES.] 75.13 Notwithstanding the provisions of subdivisions 1a and 1c, 75.14 beginning July 1,20012002, a county agency shall negotiate a 75.15 supplementary rate in addition to the rate specified in 75.16 subdivision 1, equal to4635.5 percent of the amount specified 75.17 in subdivision 1a, including any legislatively authorized75.18inflationary adjustments,for a group residential housing 75.19 provider that: 75.20 (1) is located in Hennepin county and has had a group 75.21 residential housing contract with the county since June 1996; 75.22 (2) operates in three separate locations a 71-bed facility, 75.23 and two 40-bed facilities; and 75.24 (3) serves a chemically dependent clientele, providing 24 75.25 hours per day supervision and limiting a resident's maximum 75.26 length of stay to 13 months out of a consecutive 24-month period. 75.27 Sec. 4. Laws 1999, chapter 152, section 2, is amended to 75.28 read: 75.29 Sec. 2. [PAYMENT STRUCTURE.] 75.30 The task force shall develop a new payment rate structure 75.31 for day training and habilitation services that reflects 75.32 individual consumer needs and demands for services. The payment 75.33 structure shall be based on individual need, flexibility, and 75.34 simplicity in administration and a reflection of costs. An 75.35 equitable distribution of funds based on need shall be 75.36 ensured with no additional cost to the state. 76.1 Sec. 5. Laws 1999, chapter 152, section 4, as amended by 76.2 Laws 2001, First Special Session chapter 9, article 13, section 76.3 18, is amended to read: 76.4 Sec. 4. [REPORT.] 76.5 The task force shall present a report recommendinga newan 76.6 individual payment rate structure to the legislature byJanuary76.715, 2000, and shall makeJuly 1, 2002, with recommendationsto76.8the commissioner of human services regardingon the 76.9 implementation of thepilot project for theindividualized 76.10 payment rate structure, so the pilot project can be implemented76.11as required in section 25that results in no additional costs to 76.12 the state. The task force expires onDecemberJune 30,200376.13 2002. 76.14 Sec. 6. Laws 2001, First Special Session chapter 9, 76.15 article 13, section 25, subdivision 3, is amended to read: 76.16 Sec. 25. [DAY TRAINING AND HABILITATION INDIVIDUALIZED 76.17 PAYMENT RATE STRUCTUREPILOT PROJECTREPORT.] 76.18 Subd. 3. [TASK FORCE RESPONSIBILITIES.] The day training 76.19 and habilitation task force established under Laws 1999, chapter 76.20 152, section 4, shall evaluate thepilot project authorized76.21under subdivision 1feasibility of a conversion to an individual 76.22 rate structure, and shall submit a report to the legislature 76.23with an implementation plan, which shall address how and when76.24the pilot project individualized payment rate structure will be76.25implemented statewide, shall ensure that vendors that wish to76.26maintain their current per diem rate may do so within the new76.27payment system, and shall identify criteria that would halt76.28statewide implementation if vendors or clients were adversely76.29affected by the new payment rate structure, and with76.30recommendations for any amendments that should be made before76.31statewide implementation. These recommendations shall be made 76.32 in a report to the chairs of the house health and human services 76.33 policy and finance committees and the senate health and family 76.34 security committee and finance division by July 1, 2002. 76.35 Sec. 7. [REPEALER.] 76.36 (a) Minnesota Statutes 2000, sections 144.6905; and 77.1 145.475, are repealed. 77.2 (b) Minnesota Statutes 2000, section 256.9731, is repealed. 77.3 (c) Minnesota Statutes 2000, sections 256K.01; 256K.015; 77.4 256K.02; 256K.03, as amended by Laws 2001, First Special Session 77.5 chapter 9, article 2, section 58; 256K.04; 256K.05; 256K.06; 77.6 256K.08; 256K.09; and Minnesota Statutes 2001 Supplement, 77.7 section 256K.07, are repealed. 77.8 (d) Laws 2001, First Special Session chapter 9, article 13, 77.9 sections 22; 25, subdivisions 1, 2, 4, 5, 6, and 7; 26; 27; and 77.10 28, are repealed. 77.11 ARTICLE 9 77.12 CORRECTIONS 77.13 Section 1. [CORRECTIONS APPROPRIATIONS.] 77.14 The dollar amounts in the columns under "APPROPRIATIONS" 77.15 are added to or, if shown in parentheses, are subtracted from 77.16 the appropriations in Laws 2001, First Special Session chapter 77.17 9, or other law to the specified agencies. The appropriations 77.18 are from the general fund or other named fund and are available 77.19 for the fiscal years indicated for each purpose. The figure 77.20 "2002" or "2003" means that the addition to or subtraction from 77.21 the appropriations listed under the figure are for the fiscal 77.22 year ending June 30, 2002, or June 30, 2003, respectively. 77.23 SUMMARY BY FUND 77.24 BIENNIAL 77.25 2002 2003 TOTAL 77.26 General $ (5,200,000)$ (9,778,000)$ (14,978,000) 77.27 APPROPRIATIONS 77.28 Available for the Year 77.29 Ending June 30 77.30 2002 2003 77.31 Sec. 2. BOARD OF PUBLIC 77.32 DEFENSE -0- (1,041,000) 77.33 Sec. 3. CORRECTIONS 77.34 Subdivision 1. Total 77.35 Appropriation Changes (5,200,000) (8,737,000) 77.36 Subd. 2. Adult Institutions (5,200,000) (1,600,000) 77.37 Subd. 3. Juvenile Services -0- (115,000) 77.38 Subd. 4. Community Services -0- (6,722,000) 77.39 [JUVENILE RESIDENTIAL TREATMENT 78.1 GRANTS.] $5,000,000 the second year is 78.2 to reduce juvenile residential 78.3 treatment grants. 78.4 [PRETRIAL BAIL EVALUATION 78.5 REIMBURSEMENT.] $322,000 the second 78.6 year is to eliminate pretrial bail 78.7 evaluation reimbursement. 78.8 [COMMUNITY REENTRY PROGRAM.] $200,000 78.9 the second year is to eliminate the 78.10 community reentry program. 78.11 [COMMUNITY CORRECTIONS ACT SUBSIDY.] 78.12 $800,000 the second year is to reduce 78.13 the Community Corrections Act subsidy 78.14 funding. $80,000 the second year is to 78.15 reduce county probation officer 78.16 reimbursement. $320,000 the second 78.17 year is to reduce probation and 78.18 supervised release services provided by 78.19 the department. The Community 78.20 Corrections Act subsidy reduction, 78.21 county probation officer reimbursement 78.22 reduction, and probation and supervised 78.23 release reduction are onetime 78.24 reductions and shall not affect the 78.25 2004-2005 biennial base appropriation. 78.26 Subd. 5. Management Services -0- (300,000) 78.27 Sec. 4. Minnesota Statutes 2001 Supplement, section 78.28 244.054, subdivision 2, is amended to read: 78.29 Subd. 2. [CONTENT OF PLAN.] If an offender chooses to have 78.30 a discharge plan developed, the commissioner of human services 78.31 shall develop and implement a discharge plan, which must include 78.32 at least the following: 78.33 (1) at least 90 days before the offender is due to be 78.34 discharged, the commissioner of human services shall designate 78.35 an agent of the department of human services with mental health 78.36 training to serve as the primary person responsible for carrying 78.37 out discharge planning activities; 78.38 (2) at least 75 days before the offender is due to be 78.39 discharged, the offender's designated agent shall: 78.40 (i) obtain informed consent and releases of information 78.41 from the offender that are needed for transition services; 78.42 (ii) contact the county human services department in the 78.43 community where the offender expects to reside following 78.44 discharge, and inform the department of the offender's impending 78.45 discharge and the planned date of the offender's return to the 78.46 community; determine whether the county or a designated 79.1 contracted provider will provide case management services to the 79.2 offender; refer the offender to the case management services 79.3 provider; and confirm that the case management services provider 79.4 will have opened the offender's case prior to the offender's 79.5 discharge; and 79.6 (iii) refer the offender to appropriate staff in the county 79.7 human services department in the community where the offender 79.8 expects to reside following discharge, for enrollment of the 79.9 offender if eligible in medical assistance or general assistance 79.10 medical care, using special procedures established by process 79.11 and department of human services bulletin; 79.12 (3) at least 2-1/2 months before discharge, the offender's 79.13 designated agent shall secure timely appointments for the 79.14 offender with a psychiatrist no later than 30 days following 79.15 discharge, and with other program staff at a community mental 79.16 health provider that is able to serve former offenders with 79.17 serious and persistent mental illness; 79.18 (4) at least 30 days before discharge, the offender's 79.19 designated agent shall convene a predischarge assessment and 79.20 planning meeting of key staff from the programs in which the 79.21 offender has participated while in the correctional facility, 79.22 the offender, and the supervising agent, and the mental health 79.23 case management services provider assigned to the offender. At 79.24 the meeting, attendees shall provide background information and 79.25 continuing care recommendations for the offender, including 79.26 information on the offender's risk for relapse; current 79.27 medications, including dosage and frequency; therapy and 79.28 behavioral goals; diagnostic and assessment information, 79.29 including results of a chemical dependency evaluation; 79.30 confirmation of appointments with a psychiatrist and other 79.31 program staff in the community; a relapse prevention plan; 79.32 continuing care needs; needs for housing, employment, and 79.33 finance support and assistance; and recommendations for 79.34 successful community integration, including chemical dependency 79.35 treatment or support if chemical dependency is a risk factor. 79.36 Immediately following this meeting, the offender's designated 80.1 agent shall summarize this background information and continuing 80.2 care recommendations in a written report; 80.3 (5) immediately following the predischarge assessment and 80.4 planning meeting, the provider of mental health case management 80.5 services who will serve the offender following discharge shall 80.6 offer to make arrangements and referrals for housing, financial 80.7 support, benefits assistance, employment counseling, and other 80.8 services required in sections 245.461 to 245.486; 80.9 (6) at least ten days before the offender's first scheduled 80.10 postdischarge appointment with a mental health provider, the 80.11 offender's designated agent shall transfer the following records 80.12 to the offender's case management services provider and 80.13 psychiatrist: the predischarge assessment and planning report, 80.14 medical records, and pharmacy records. These records may be 80.15 transferred only if the offender provides informed consent for 80.16 their release; 80.17 (7) upon discharge, the offender's designated agent shall 80.18 ensure that the offender leaves the correctional facility with 80.19 at least a ten-day supply of all necessary medications; and 80.20 (8) upon discharge, the prescribing authority at the 80.21 offender's correctional facility shall telephone in 80.22 prescriptions for all necessary medications to a pharmacy in the 80.23 community where the offender plans to reside. The prescriptions 80.24 must provide at least a 30-day supply of all necessary 80.25 medications, and must be able to be refilled once for one 80.26 additional 30-day supply. 80.27 Sec. 5. Minnesota Statutes 2001 Supplement, section 80.28 242.192, is amended to read: 80.29 242.192 [CHARGES TO COUNTIES.] 80.30(a) Until June 30, 2002,The commissioner shall charge 80.31 counties or other appropriate jurisdictions 65 percent of the 80.32 per diem cost of confinement, excluding educational costs and 80.33 nonbillable service, of juveniles at the Minnesota correctional 80.34 facility-Red Wing and of juvenile females committed to the 80.35 commissioner of corrections. This charge applies to juveniles 80.36 committed to the commissioner of corrections and juveniles 81.1 admitted to the Minnesota correctional facility-Red Wing under 81.2 established admissions criteria. This charge applies to both 81.3 counties that participate in the Community Corrections Act and 81.4 those that do not. The commissioner shall determine the per 81.5 diem cost of confinement based on projected population, pricing 81.6 incentives, market conditions, and the requirement that expense 81.7 and revenue balance out over a period of two years. All money 81.8 received under this section must be deposited in the state 81.9 treasury and credited to the general fund. 81.10(b) Until June 30, 2002, the department of corrections81.11shall be responsible for 35 percent of the per diem cost of81.12confinement described in this section.81.13 Sec. 6. [COLLABORATIVE CASE PLANNING FOR CERTAIN MENTALLY 81.14 ILL PERSONS UNDER CORRECTIONAL SUPERVISION; POLICIES AND 81.15 PRACTICES AND REPORTS REQUIRED.] 81.16 Subdivision 1. [DEVELOPMENT OF POLICIES AND 81.17 PRACTICES.] Correctional and social services agencies in each 81.18 county that deliver direct case management services shall 81.19 develop policies and practices that maximize collaborative case 81.20 planning for adult and juvenile offenders under correctional 81.21 supervision who have been diagnosed with serious and persistent 81.22 mental illness or severe emotional disturbance. To the degree 81.23 resources are available, the policies and practices must 81.24 determine how to: 81.25 (1) ensure that the offender receives the best possible 81.26 mental health case management expertise; 81.27 (2) determine which case management model best delivers 81.28 case management services; 81.29 (3) maximize the efficiency of case management services; 81.30 and 81.31 (4) maximize the recoupment of federal financial 81.32 participation of medical assistance and other forms of funding. 81.33 Subd. 2. [REPORTS REQUIRED.] By December 31, 2002, the 81.34 agencies described in subdivision 1 shall submit a report on 81.35 their mental health correctional policies and practices to the 81.36 department of corrections. By March 1, 2003, the commissioner 82.1 of corrections shall submit a statewide report on the mental 82.2 health correctional policies and practices to the chairs and 82.3 ranking minority members of the senate and house of 82.4 representatives committees and divisions with jurisdiction over 82.5 mental health and corrections policy and funding. 82.6 Sec. 7. [DATA SHARING ON CERTAIN MENTALLY ILL PERSONS 82.7 UNDER CORRECTIONAL SUPERVISION.] 82.8 Notwithstanding any other law to the contrary, correctional 82.9 and social services agencies may share data on adult and 82.10 juvenile offenders under correctional supervision who have been 82.11 diagnosed with serious and persistent mental illness or severe 82.12 emotional disturbance for the purpose of engaging in 82.13 collaborative case planning as described in section 6. 82.14 ARTICLE 10 82.15 TRANSPORTATION AND OTHER AGENCY APPROPRIATIONS 82.16 Section 1. [TRANSPORTATION AND OTHER AGENCY APPROPRIATIONS.] 82.17 The dollar amounts in the columns marked "APPROPRIATIONS" 82.18 are added to or, if shown in parentheses, are subtracted from 82.19 the appropriations in Laws 2001, First Special Session chapter 82.20 8, or other law to the specified agencies. The appropriations 82.21 are from the general fund or any other named fund and are 82.22 available for the fiscal years indicated for each purpose. The 82.23 figure 2002 or 2003 means that the addition to or subtraction 82.24 from the appropriations listed under the figure are for the 82.25 fiscal year ending June 30, 2002, or June 30, 2003, 82.26 respectively. If only one figure is shown in the text for a 82.27 specified purpose, the addition or subtraction is for 2002 82.28 unless the context intends another fiscal year. 82.29 SUMMARY BY FUND 82.30 2002 2003 TOTAL 82.31 APPROPRIATIONS 82.32 General $ (2,534,000) $ (2,818,000) $ (5,352,000) 82.33 Trunk Highway 245,240,000 -0- 245,240,000 82.34 CANCELLATIONS (245,240,000) -0- (245,240,000) 82.35 TRANSFERS IN (1,388,000) (1,391,000) (2,779,000) 82.36 SUMMARY BY FUND 83.1 Sec. 2. TRANSPORTATION 245,240,000 -0- 83.2 This appropriation is for trunk highway 83.3 construction. This appropriation is 83.4 from the bond proceeds account in the 83.5 trunk highway fund and is available for 83.6 expenditure beginning the day after 83.7 final enactment. The commissioner of 83.8 transportation shall allocate this 83.9 appropriation so that, taken together 83.10 with money spent from the appropriation 83.11 in Laws 2000, chapter 479, article 1, 83.12 section 2, subdivision 3, total 83.13 spending is in the amounts and for the 83.14 purposes specified in the cited 83.15 subdivision. 83.16 Of the appropriation in Laws 2000, 83.17 chapter 479, article 1, section 2, 83.18 subdivision 3, $245,240,000 cancels to 83.19 the general fund. This cancellation is 83.20 effective the day following final 83.21 enactment. 83.22 Sec. 3. METROPOLITAN COUNCIL 83.23 Metropolitan Council 83.24 Transit (400,000) (700,000) 83.25 Of this amount, $100,000 each year is 83.26 to reduce administrative costs of 83.27 metropolitan transportation services. 83.28 $300,000 in the first year and $600,000 83.29 in the second year is to reduce 83.30 administrative costs of metro transit. 83.31 Sec. 4. PUBLIC SAFETY 83.32 Subdivision 1. Total Appropriation 83.33 Changes (1,677,000) (1,335,000) 83.34 Subd. 2. Crime Victim 83.35 Services Center (43,000) (576,000) 83.36 Subd. 3. Law Enforcement and 83.37 Community Grants (1,634,000) (584,000) 83.38 (a) Of these amounts: 83.39 (1) $1,150,000 in the first year is an 83.40 accounting adjustment related to the 83.41 administration of grant programs; 83.42 (2) $142,000 in each year is to reduce 83.43 drug policy and violence prevention 83.44 grants; 83.45 (3) $75,000 in each year is to reduce 83.46 violence prevention council grants; 83.47 (4) $117,000 in each year is to reduce 83.48 criminal gang strike force grants under 83.49 Minnesota Statutes, section 299A.66; 83.50 (5) $250,000 in the second year is to 83.51 reduce grants for overtime for police 83.52 officers and financial crimes unit; and 83.53 (6) $150,000 in the first year is to 83.54 reduce model policing program pilot 83.55 projects required under Minnesota 84.1 Statutes, section 626.8441, subdivision 84.2 1. 84.3 (b) By June 30, 2002, the commissioner 84.4 of finance shall transfer the available 84.5 unencumbered balance from the 84.6 automobile theft prevention account in 84.7 the special revenue fund to the general 84.8 fund. Minnesota Statutes, section 84.9 168A.40, subdivision 4, does not apply 84.10 to money transferred to the general 84.11 fund under this paragraph. 84.12 (c) The commissioner may not reduce the 84.13 current allocation of federal Byrne 84.14 grant funds for the youth experiencing 84.15 alternatives (YEA)/Camp Ripley programs. 84.16 Subd. 4. State Patrol - 84.17 Capitol Security -0- (175,000) 84.18 This amount reduces the cost of 84.19 executive protection. 84.20 Sec. 5. DEPARTMENT OF 84.21 COMMERCE (103,000) (251,000) 84.22 Of these amounts: 84.23 (1) $44,000 in the first year and 84.24 $104,000 in the second year are for 84.25 staff reduction in the department of 84.26 commerce/administration program; and 84.27 (2) $59,000 in the first year and 84.28 $147,000 in the second year are for 84.29 staff reduction in the weights and 84.30 measures program. 84.31 Sec. 6. LABOR AND INDUSTRY (324,000) (502,000) 84.32 Of these amounts, $70,000 in the first 84.33 year and $141,000 in the second year 84.34 are for staff reduction. $100,000 in 84.35 the second year is a transfer from the 84.36 workforce development fund for 84.37 statewide and agency indirect costs 84.38 associated with the apprenticeship 84.39 program. 84.40 Sec. 7. BUREAU OF MEDIATION 84.41 SERVICES (30,000) (30,000) 84.42 These amounts reduce labor-management 84.43 cooperation grants. 84.44 Sec. 8. Minnesota Statutes 2000, section 168A.40, 84.45 subdivision 4, is amended to read: 84.46 Subd. 4. [AUTOMOBILE THEFT PREVENTION ACCOUNT.] A special 84.47 revenue account is created in the state treasury to be credited 84.48 with the proceeds of the surcharge imposed under subdivision 3. 84.49 Of the revenue in the account, $1,300,000 each year must be 84.50 transferred to the general fund. Revenues in excess of 84.51 $1,300,000 each year may be used only for the automobile theft 85.1 prevention program described in section 299A.75. 85.2 Sec. 9. Minnesota Statutes 2001 Supplement, section 85.3 171.29, subdivision 2, is amended to read: 85.4 Subd. 2. [REINSTATEMENT FEES AND SURCHARGES, ALLOCATION.] 85.5 (a) A person whose driver's license has been revoked as provided 85.6 in subdivision 1, except under section 169A.52, 169A.54, or 85.7 609.21, shall pay a $30 fee before the driver's license is 85.8 reinstated. 85.9 (b) A person whose driver's license has been revoked as 85.10 provided in subdivision 1 under section 169A.52, 169A.54, or 85.11 609.21, shall pay a $250 fee plus a $40 surcharge before the 85.12 driver's license is reinstated. Beginning July 1, 2002, the 85.13 surcharge is $145. Beginning July 1, 2003, the surcharge is 85.14 $380. The $250 fee is to be credited as follows: 85.15 (1) Twenty percent must be credited to the trunk highway 85.16 fund. 85.17 (2)Fifty-fiveSixty-seven percent must be credited to the 85.18 general fund. 85.19 (3) Eight percent must be credited to a separate account to 85.20 be known as the bureau of criminal apprehension account. Money 85.21 in this account may be appropriated to the commissioner of 85.22 public safety and the appropriated amount must be apportioned 80 85.23 percent for laboratory costs and 20 percent for carrying out the 85.24 provisions of section 299C.065. 85.25 (4)Twelve percent must be credited to a separate account85.26to be known as the alcohol-impaired driver education account.85.27Money in the account is appropriated as follows:85.28(i) in fiscal year 2002:85.29(A) the first $200,000 to the commissioner of children,85.30families, and learning for programs for elementary and secondary85.31school students; and85.32(B) the remainder credited to the commissioner of public85.33safety to be spent as grants through March 31, 2002, to the85.34Minnesota highway safety center at St. Cloud State University85.35for programs relating to alcohol and highway safety education in85.36elementary and secondary schools and then from April 1, 2002,86.1through June 30, 2002, for programs described in item (ii); and86.2(ii) after June 30, 2002, to the commissioner of public86.3safety for grants for programs relating to alcohol and highway86.4safety education in elementary and secondary schools.86.5(5)Five percent must be credited to a separate account to 86.6 be known as the traumatic brain injury and spinal cord injury 86.7 account. The money in the account is annually appropriated to 86.8 the commissioner of health to be used as follows: 35 percent 86.9 for a contract with a qualified community-based organization to 86.10 provide information, resources, and support to assist persons 86.11 with traumatic brain injury and their families to access 86.12 services, and 65 percent to maintain the traumatic brain injury 86.13 and spinal cord injury registry created in section 144.662. For 86.14 the purposes of this clause, a "qualified community-based 86.15 organization" is a private, not-for-profit organization of 86.16 consumers of traumatic brain injury services and their family 86.17 members. The organization must be registered with the United 86.18 States Internal Revenue Service under section 501(c)(3) as a 86.19 tax-exempt organization and must have as its purposes: 86.20 (i) the promotion of public, family, survivor, and 86.21 professional awareness of the incidence and consequences of 86.22 traumatic brain injury; 86.23 (ii) the provision of a network of support for persons with 86.24 traumatic brain injury, their families, and friends; 86.25 (iii) the development and support of programs and services 86.26 to prevent traumatic brain injury; 86.27 (iv) the establishment of education programs for persons 86.28 with traumatic brain injury; and 86.29 (v) the empowerment of persons with traumatic brain injury 86.30 through participation in its governance. 86.31 No patient's name, identifying information or identifiable 86.32 medical data will be disclosed to the organization without the 86.33 informed voluntary written consent of the patient or patient's 86.34 guardian, or if the patient is a minor, of the parent or 86.35 guardian of the patient. 86.36 (c) The surcharge must be credited to a separate account to 87.1 be known as the remote electronic alcohol monitoring program 87.2 account. The commissioner shall transfer the balance of this 87.3 account to the commissioner of finance on a monthly basis for 87.4 deposit in the general fund. 87.5 (d) When these fees are collected by a licensing agent, 87.6 appointed under section 171.061, a handling charge is imposed in 87.7 the amount specified under section 171.061, subdivision 4. The 87.8 reinstatement fees and surcharge must be deposited in an 87.9 approved state depository as directed under section 171.061, 87.10 subdivision 4. 87.11 Sec. 10. Minnesota Statutes 2001 Supplement, section 87.12 299A.75, subdivision 1, is amended to read: 87.13 Subdivision 1. [PROGRAM DESCRIBED; COMMISSIONER'S DUTIES.] 87.14 (a) The commissioner of public safety shall: 87.15 (1) develop and sponsor the implementation of statewide 87.16 plans, programs, and strategies to combat automobile theft, 87.17 improve the administration of the automobile theft laws, and 87.18 provide a forum for identification of critical problems for 87.19 those persons dealing with automobile theft; 87.20 (2) coordinate the development, adoption, and 87.21 implementation of plans, programs, and strategies relating to 87.22 interagency and intergovernmental cooperation with respect to 87.23 automobile theft enforcement; 87.24 (3) annually audit the plans and programs that have been 87.25 funded in whole or in part to evaluate the effectiveness of the 87.26 plans and programs and withdraw funding should the commissioner 87.27 determine that a plan or program is ineffective or is no longer 87.28 in need of further financial support from the fund; 87.29 (4) develop a plan of operation including: 87.30 (i) an assessment of the scope of the problem of automobile 87.31 theft, including areas of the state where the problem is 87.32 greatest; 87.33 (ii) an analysis of various methods of combating the 87.34 problem of automobile theft; 87.35 (iii) a plan for providing financial support to combat 87.36 automobile theft; 88.1 (iv) a plan for eliminating car hijacking; and 88.2 (v) an estimate of the funds required to implement the 88.3 plan; and 88.4 (5) distribute money pursuant to subdivision 3 from the 88.5 automobile theft prevention special revenue account for 88.6 automobile theft prevention activities, including: 88.7 (i) paying the administrative costs of the program; 88.8 (ii) providing financial support to the state patrol and 88.9 local law enforcement agencies for automobile theft enforcement 88.10 teams; 88.11 (iii) providing financial support to state or local law 88.12 enforcement agencies for programs designed to reduce the 88.13 incidence of automobile theft and for improved equipment and 88.14 techniques for responding to automobile thefts; 88.15 (iv) providing financial support to local prosecutors for 88.16 programs designed to reduce the incidence of automobile theft; 88.17 (v) providing financial support to judicial agencies for 88.18 programs designed to reduce the incidence of automobile theft; 88.19 (vi) providing financial support for neighborhood or 88.20 community organizations or business organizations for programs 88.21 designed to reduce the incidence of automobile theft and to 88.22 educate people about the common methods of automobile theft, the 88.23 models of automobiles most likely to be stolen, and the times 88.24 and places automobile theft is most likely to occur; and 88.25 (vii) providing financial support for automobile theft 88.26 educational and training programs for state and local law 88.27 enforcement officials, driver and vehicle services exam and 88.28 inspections staff, and members of the judiciary. 88.29 (b) The commissioner may not spend in any fiscal year more 88.30 than ten percent of the money in the fund for the program's 88.31 administrative and operating costs. The commissioner is 88.32 annually appropriated and must distribute thefullamount of the 88.33 proceeds credited to the automobile theft prevention special 88.34 revenue account each year, less the transfer of $1,300,000 each 88.35 year to the general fund described in section 168A.40, 88.36 subdivision 4. 89.1 Sec. 11. Minnesota Statutes 2001 Supplement, section 89.2 357.021, subdivision 7, is amended to read: 89.3 Subd. 7. [DISBURSEMENT OF SURCHARGES BY STATE TREASURER.] 89.4 (a) Except as provided inparagraphsparagraph (b)and (c), the 89.5 state treasurer shall disburse surcharges received under 89.6 subdivision 6 and section 97A.065, subdivision 2, as follows: 89.7 (1) one percent shall be credited to the game and fish fund 89.8 to provide peace officer training for employees of the 89.9 department of natural resources who are licensed under sections 89.10 626.84 to 626.863, and who possess peace officer authority for 89.11 the purpose of enforcing game and fish laws; 89.12 (2) 39 percent shall be credited to the peace officers 89.13 training account in the special revenue fund; and 89.14 (3) 60 percent shall be credited to the general fund. 89.15 (b)The state treasurer shall credit $3 of each surcharge89.16received under subdivision 6 and section 97A.065, subdivision 2,89.17to a criminal justice special projects account in the special89.18revenue fund. This account is available for appropriation to89.19the commissioner of public safety for grants to law enforcement89.20agencies and for other purposes authorized by the legislature.89.21(c)In addition to any amounts credited under paragraph 89.22 (a), the state treasurer shall credit$7$10 of each surcharge 89.23 received under subdivision 6 and section 97A.065, subdivision 2, 89.24 to the general fund. 89.25[EFFECTIVE DATE.] This section is effective July 1, 2003. 89.26 Sec. 12. Laws 2001, First Special Session chapter 8, 89.27 article 4, section 11, is amended to read: 89.28 Sec. 11. BOARD OF PEACE OFFICER 89.29 STANDARDS AND TRAINING4,692,0004,724,00089.30 4,604,000 4,633,000 89.31 [PEACE OFFICER TRAINING ACCOUNT.] This 89.32 appropriation is from the peace officer 89.33 training account in the special revenue 89.34 fund. Any receipts credited to the 89.35 peace officer training account in the 89.36 special revenue fund in the first year 89.37 in excess of$4,692,000$4,604,000 must 89.38 be transferred and credited to the 89.39 general fund. Any receipts credited to 89.40 the peace officer training account in 89.41 the special revenue fund in the second 89.42 year in excess of$4,724,000$4,633,000 89.43 must be transferred and credited to the 90.1 general fund. 90.2 Sec. 13. [BOND SALE AUTHORIZATION.] 90.3 To provide the money appropriated in this act from the 90.4 trunk highway bond proceeds fund, the commissioner of finance 90.5 shall sell and issue bonds of the state in an amount up to 90.6 $245,240,000 in the manner, upon the terms, and with the effect 90.7 prescribed by Minnesota Statutes, sections 167.50 to 167.52, and 90.8 by the Minnesota Constitution, article XIV, section 11, at the 90.9 times and in the amount requested by the commissioner of 90.10 transportation. The proceeds of the bonds, except accrued 90.11 interest and any premium received on the sale of the bonds, must 90.12 be credited to a bond proceeds account in the trunk highway fund. 90.13 Sec. 14. [EFFECTIVE DATE.] 90.14 Sections 1 to 10, 12, and 13, are effective the day 90.15 following final enactment. Section 11 is effective July 1, 2003. 90.16 ARTICLE 11 90.17 ENVIRONMENT AND AGRICULTURE APPROPRIATIONS 90.18 Section 1. [ENVIRONMENT, NATURAL RESOURCES, AND AGRICULTURE 90.19 APPROPRIATIONS AND REDUCTIONS.] 90.20 The dollar amounts in the columns under "APPROPRIATIONS" 90.21 are added to or, if shown in parentheses, are subtracted from 90.22 the appropriations in Laws 2001, First Special Session chapter 90.23 2, or other law, to the specified agencies. The appropriations 90.24 are from the general fund or other named fund and are available 90.25 for the fiscal years indicated for each purpose. The figure 90.26 "2002" or "2003" means that the addition to or subtraction from 90.27 the appropriations listed under the figure are for the fiscal 90.28 year ending June 30, 2002, or June 30, 2003, respectively. The 90.29 term "the first year" means the year ending June 30, 2002, and 90.30 the term "the second year" means the year ending June 30, 2003. 90.31 SUMMARY BY FUND 90.32 2002 2003 TOTAL 90.33 APPROPRIATIONS 90.34 General $ (1,198,000)$ (8,197,000)$ (9,395,000) 90.35 Solid Waste 1,030,000 1,041,000 2,071,000 90.36 Environmental -0- 683,000 683,000 91.1 TOTAL $ (168,000)$ (6,473,000)$ (6,641,000) 91.2 CANCELLATIONS $ (505,000)$ -0- $ (505,000) 91.3 APPROPRIATIONS 91.4 Available for the Year 91.5 Ending June 30 91.6 2002 2003 91.7 Sec. 2. POLLUTION CONTROL 91.8 AGENCY 91.9 Subdivision 1. Total 91.10 Appropriation Reductions $ (137,000)$ (137,000) 91.11 Summary by Fund 91.12 General (1,167,000) (1,861,000) 91.13 Solid Waste 1,030,000 1,041,000 91.14 Environmental -0- 683,000 91.15 The amounts reduced from the 91.16 appropriations in Laws 2001, First 91.17 Special Session chapter 2, section 2, 91.18 are specified in the following 91.19 subdivisions. 91.20 Subd. 2. Protection of the Water 91.21 -0- -0- 91.22 Summary by Fund 91.23 General -0- (683,000) 91.24 Environmental -0- 683,000 91.25 The annual base level funding from the 91.26 general fund for protection of the 91.27 water is increased by $40,000 beginning 91.28 in fiscal year 2004. 91.29 Subd. 3. Protection of the Land 91.30 -0- -0- 91.31 Summary by Fund 91.32 General (1,030,000) (1,041,000) 91.33 Solid Waste 1,030,000 1,041,000 91.34 Subd. 4. Administrative Support 91.35 (137,000) (137,000) 91.36 Sec. 3. OFFICE OF 91.37 ENVIRONMENTAL ASSISTANCE -0- (324,000) 91.38 Sec. 4. ZOOLOGICAL BOARD -0- (191,000) 91.39 Sec. 5. NATURAL RESOURCES 91.40 Subdivision 1. Total 91.41 Appropriation Reductions -0- (3,741,000) 91.42 The amounts reduced from the 91.43 appropriations in Laws 2001, First 91.44 Special Session chapter 2, section 5, 92.1 are specified in the following 92.2 subdivisions. 92.3 Subd. 2. Land and Mineral Resources Management 92.4 -0- (50,000) 92.5 $17,000 the second year of this 92.6 reduction is from iron ore cooperative 92.7 research. 92.8 The nonstate match amount required for 92.9 the second year of the iron ore 92.10 cooperative research appropriation in 92.11 Laws 2001, First Special Session 92.12 chapter 2, section 5, subdivision 2, is 92.13 reduced by $10,000. 92.14 $15,000 the second year of this 92.15 reduction is from minerals 92.16 diversification. 92.17 $7,000 the second year of this 92.18 reduction is from minerals cooperative 92.19 environmental research. 92.20 The nonstate match amount required for 92.21 the second year of the minerals 92.22 cooperative environmental research 92.23 appropriation in Laws 2001, First 92.24 Special Session chapter 2, section 5, 92.25 subdivision 2, is reduced by $3,500. 92.26 Subd. 3. Forest Management 92.27 -0- (400,000) 92.28 $150,000 the second year of this 92.29 reduction is from the programs and 92.30 practices on state, county, and private 92.31 lands to regenerate and protect 92.32 Minnesota's white pine. 92.33 The amount available for matching funds 92.34 in the second year of the appropriation 92.35 for white pine regeneration and 92.36 protection in Laws 2001, First Special 92.37 Session chapter 2, section 5, 92.38 subdivision 4, is reduced by $56,000 92.39 for nonindustrial private forest lands, 92.40 and the amount for matching funds for 92.41 county administered lands is reduced by 92.42 $30,000. 92.43 $200,000 the second year of this 92.44 reduction is from the forest resources 92.45 council for implementation of the 92.46 Sustainable Forest Resources Act. 92.47 Subd. 4. Parks and Recreation Management 92.48 -0- (684,000) 92.49 $400,000 the second year of this 92.50 reduction is from a grant to the 92.51 metropolitan council for metropolitan 92.52 area regional parks maintenance and 92.53 operations. In fiscal year 2004, the 92.54 annual base level funding for 92.55 metropolitan area regional parks 92.56 maintenance and operations is increased 93.1 by $200,000 from the 2003 level. 93.2 Subd. 5. Trails and Waterways Management 93.3 -0- (89,000) 93.4 Subd. 6. Fish Management 93.5 -0- (154,000) 93.6 $134,000 the second year of this 93.7 reduction is from the reinvest in 93.8 Minnesota programs of game and fish, 93.9 critical habitat, and wetlands 93.10 established under Minnesota Statutes, 93.11 section 84.95, subdivision 2. 93.12 $20,000 the second year of this 93.13 reduction is from aquatic plant 93.14 restoration. 93.15 Subd. 7. Wildlife Management 93.16 -0- (55,000) 93.17 Subd. 8. Ecological Services 93.18 -0- (22,000) 93.19 This reduction is from the reinvest in 93.20 Minnesota programs of game and fish, 93.21 critical habitat, and wetlands 93.22 established under Minnesota Statutes, 93.23 section 84.95, subdivision 2. 93.24 Subd. 9. Enforcement 93.25 -0- (349,000) 93.26 The appropriation in Laws 2001, First 93.27 Special Session chapter 2, section 5, 93.28 subdivision 10, from the snowmobile 93.29 trails and enforcement account in the 93.30 natural resources fund for grants to 93.31 local law enforcement agencies for 93.32 snowmobile enforcement activities may 93.33 be used for the enforcement of 93.34 snowmobile laws. 93.35 Subd. 10. Operations Support 93.36 -0- (1,938,000) 93.37 $1,052,000 the second year of this 93.38 reduction is from the operations of 93.39 youth programs. 93.40 Sec. 6. BOARD OF WATER AND 93.41 SOIL RESOURCES -0- (900,000) 93.42 $191,000 the second year of this 93.43 reduction is from natural resources 93.44 block grants to local governments. The 93.45 block grants made from the remaining 93.46 amount of the appropriation may be used 93.47 to implement comprehensive local water 93.48 planning, the Wetland Conservation Act, 93.49 and the Shoreland Management Act. 93.50 $400,000 the second year of this 93.51 reduction is from grants to soil and 94.1 water conservation districts for 94.2 cost-sharing contracts for erosion 94.3 control and water quality management. 94.4 $49,000 the second year of this 94.5 reduction is from grants to watershed 94.6 districts and other local units of 94.7 government in the southern Minnesota 94.8 river basin study area 2 for floodplain 94.9 management. The appropriation for area 94.10 2 floodplain management terminates in 94.11 fiscal year 2004. 94.12 Sec. 7. SCIENCE MUSEUM OF MINNESOTA -0- (32,000) 94.13 Sec. 8. AGRICULTURE 94.14 Subdivision 1. Total 94.15 Appropriation Reductions -0- (871,000) 94.16 The amounts reduced from the 94.17 appropriations in Laws 2001, First 94.18 Special Session chapter 2, are 94.19 specified in the following subdivisions. 94.20 Subd. 2. Protection Service 94.21 -0- (352,000) 94.22 Subd. 3. Agricultural 94.23 Marketing and Development 94.24 -0- (197,000) 94.25 $35,000 the second year of this 94.26 reduction is from beaver damage control 94.27 grants under Minnesota Statutes, 94.28 section 17.110. 94.29 Annual base level funding for 94.30 value-added agricultural product 94.31 processing and marketing grants under 94.32 Minnesota Statutes, section 17.101, 94.33 subdivision 5, is reduced by $80,000 94.34 beginning in fiscal year 2004. 94.35 Subd. 4. Administration and 94.36 Financial Assistance 94.37 -0- (332,000) 94.38 $2,000 the second year of this 94.39 reduction is from family farm security 94.40 interest payment adjustments. 94.41 $3,000 the second year of this 94.42 reduction is from the appropriation for 94.43 the Northern Crops Institute. 94.44 $87,000 the second year of this 94.45 reduction is from grants to agriculture 94.46 information centers. 94.47 $5,000 the second year of this 94.48 reduction is from the appropriation for 94.49 the Seaway Port Authority of Duluth. 94.50 $1,000 the second year of this 94.51 reduction is from a grant to the 94.52 Minnesota Livestock Breeders' 94.53 Association. 95.1 Subd. 5. Cancellations 95.2 By June 30, 2002, the commissioner of 95.3 finance shall cancel $505,000 of the 95.4 unencumbered bond proceeds balance in 95.5 the family farm security program bond 95.6 account established in Minnesota 95.7 Statutes, section 41.61, to the debt 95.8 service fund. 95.9 Sec. 9. BOARD OF ANIMAL HEALTH (31,000) (77,000) 95.10 Sec. 10. AGRICULTURAL UTILIZATION 95.11 RESEARCH INSTITUTE -0- (200,000) 95.12 $10,000 each year of the reduction is 95.13 from the money appropriated for hybrid 95.14 tree management research and 95.15 development. 95.16 Sec. 11. Minnesota Statutes 2000, section 41A.09, 95.17 subdivision 3a, is amended to read: 95.18 Subd. 3a. [PAYMENTS.] (a) The commissioner of agriculture 95.19 shall make cash payments to producers of ethanol, anhydrous 95.20 alcohol, and wet alcohol located in the state. These payments 95.21 shall apply only to ethanol, anhydrous alcohol, and wet alcohol 95.22 fermented in the state and produced at plants that have begun 95.23 production by June 30, 2000. For the purpose of this 95.24 subdivision, an entity that holds a controlling interest in more 95.25 than one ethanol plant is considered a single producer. The 95.26 amount of the payment for each producer's annual production is: 95.27 (1) except as provided in paragraph (b), for each gallon of 95.28 ethanol or anhydrous alcohol produced on or before June 30, 95.29 2000, or ten years after the start of production, whichever is 95.30 later,2019 cents per gallon; and 95.31 (2) for each gallon produced of wet alcohol on or before 95.32 June 30, 2000, or ten years after the start of production, 95.33 whichever is later, a payment in cents per gallon calculated by 95.34 the formula "alcohol purity in percent divided by five," and 95.35 rounded to the nearest cent per gallon, but not less than 11 95.36 cents per gallon. 95.37 The producer payments for anhydrous alcohol and wet alcohol 95.38 under this section may be paid to either the original producer 95.39 of anhydrous alcohol or wet alcohol or the secondary processor, 95.40 at the option of the original producer, but not to both. 95.41 No payments shall be made for production that occurs after 96.1 June 30, 2010. 96.2 (b) If the level of production at an ethanol plant 96.3 increases due to an increase in the production capacity of the 96.4 plant, the payment under paragraph (a), clause (1), applies to 96.5 the additional increment of production until ten years after the 96.6 increased production began. Once a plant's production capacity 96.7 reaches 15,000,000 gallons per year, no additional increment 96.8 will qualify for the payment. 96.9 (c) The commissioner shall make payments to producers of 96.10 ethanol or wet alcohol in the amount of 1.5 cents for each 96.11 kilowatt hour of electricity generated using closed-loop biomass 96.12 in a cogeneration facility at an ethanol plant located in the 96.13 state. Payments under this paragraph shall be made only for 96.14 electricity generated at cogeneration facilities that begin 96.15 operation by June 30, 2000. The payments apply to electricity 96.16 generated on or before the date ten years after the producer 96.17 first qualifies for payment under this paragraph. Total 96.18 payments under this paragraph in any fiscal year may not exceed 96.19 $750,000. For the purposes of this paragraph: 96.20 (1) "closed-loop biomass" means any organic material from a 96.21 plant that is planted for the purpose of being used to generate 96.22 electricity or for multiple purposes that include being used to 96.23 generate electricity; and 96.24 (2) "cogeneration" means the combined generation of: 96.25 (i) electrical or mechanical power; and 96.26 (ii) steam or forms of useful energy, such as heat, that 96.27 are used for industrial, commercial, heating, or cooling 96.28 purposes. 96.29 (d) Payments under paragraphs (a) and (b) to all producers 96.30 may not exceed$37,000,000$35,150,000 in a fiscal year. Total 96.31 payments under paragraphs (a) and (b) to a producer in a fiscal 96.32 year may not exceed$3,000,000$2,850,000. 96.33 (e) By the last day of October, January, April, and July, 96.34 each producer shall file a claim for payment for ethanol, 96.35 anhydrous alcohol, and wet alcohol production during the 96.36 preceding three calendar months. A producer with more than one 97.1 plant shall file a separate claim for each plant. A producer 97.2 that files a claim under this subdivision shall include a 97.3 statement of the producer's total ethanol, anhydrous alcohol, 97.4 and wet alcohol production in Minnesota during the quarter 97.5 covered by the claim, including anhydrous alcohol and wet 97.6 alcohol produced or received from an outside source. A producer 97.7 shall file a separate claim for any amount claimed under 97.8 paragraph (c). For each claim and statement of total ethanol, 97.9 anhydrous alcohol, and wet alcohol production filed under this 97.10 subdivision, the volume of ethanol, anhydrous alcohol, and wet 97.11 alcohol production or amounts of electricity generated using 97.12 closed-loop biomass must be examined by an independent certified 97.13 public accountant in accordance with standards established by 97.14 the American Institute of Certified Public Accountants. 97.15 (f) Payments shall be made November 15, February 15, May 97.16 15, and August 15. A separate payment shall be made for each 97.17 claim filed. Except as provided in paragraph (j), the total 97.18 quarterly payment to a producer under this paragraph, excluding 97.19 amounts paid under paragraph (c), may not 97.20 exceed$750,000$712,500. 97.21 (g) If the total amount for which all producers are 97.22 eligible in a quarter under paragraph (c) exceeds the amount 97.23 available for payments, the commissioner shall make payments in 97.24 the order in which the plants covered by the claims began 97.25 generating electricity using closed-loop biomass. 97.26 (h) After July 1, 1997, new production capacity is only 97.27 eligible for payment under this subdivision if the commissioner 97.28 receives: 97.29 (1) an application for approval of the new production 97.30 capacity; 97.31 (2) an appropriate letter of long-term financial commitment 97.32 for construction of the new production capacity; and 97.33 (3) copies of all necessary permits for construction of the 97.34 new production capacity. 97.35 The commissioner may approve new production capacity based 97.36 on the order in which the applications are received. 98.1 (i) The commissioner may not approve any new production 98.2 capacity after July 1, 1998, except that a producer with an 98.3 approved production capacity of at least 12,000,000 gallons per 98.4 year but less than 15,000,000 gallons per year prior to July 1, 98.5 1998, is approved for 15,000,000 gallons of production capacity. 98.6 (j) Notwithstanding the quarterly payment limits of 98.7 paragraph (f), the commissioner shall make an additional payment 98.8 in the eighth quarter of each fiscal biennium to ethanol 98.9 producers for the lesser of: (1)2019 cents per gallon of 98.10 production in the eighth quarter of the biennium that is greater 98.11 than 3,750,000 gallons; or (2) the total amount of payments lost 98.12 during the first seven quarters of the biennium due to plant 98.13 outages, repair, or major maintenance. Total payments to an 98.14 ethanol producer in a fiscal biennium, including any payment 98.15 under this paragraph, must not exceed the total amount the 98.16 producer is eligible to receive based on the producer's approved 98.17 production capacity. The provisions of this paragraph apply 98.18 only to production losses that occur in quarters beginning after 98.19 December 31, 1999. 98.20 (k) For the purposes of this subdivision "new production 98.21 capacity" means annual ethanol production capacity that was not 98.22 allowed under a permit issued by the pollution control agency 98.23 prior to July 1, 1997, or for which construction did not begin 98.24 prior to July 1, 1997. 98.25[EFFECTIVE DATE.] This section is effective for payments 98.26 for ethanol production after July 1, 2003. 98.27 Sec. 12. Minnesota Statutes 2000, section 85A.02, 98.28 subdivision 17, is amended to read: 98.29 Subd. 17. [ADDITIONAL POWERS.] The board may establish a 98.30 schedule of charges for admission to or the use of the Minnesota 98.31 zoological garden or any related facility. Notwithstanding 98.32 section 16A.1283, legislative approval is not required for the 98.33 board to establish a schedule of charges for admission or use of 98.34 the Minnesota zoological garden or related facilities. The 98.35 board shall have a policy admitting elementary school children 98.36 at no charge when they are part of an organized school 99.1 activity. The Minnesota zoological garden will offer free 99.2 admission throughout the year to economically disadvantaged 99.3 Minnesota citizens equal to ten percent of the average annual 99.4 attendance. However, the zoo may charge at any time for 99.5 parking, special services, and for admission to special 99.6 facilities for the education, entertainment, or convenience of 99.7 visitors. The board may provide for the purchase, reproduction, 99.8 and sale of gifts, souvenirs, publications, informational 99.9 materials, food and beverages, and grant concessions for the 99.10 sale of these items. 99.11 Sec. 13. Minnesota Statutes 2001 Supplement, section 99.12 93.2235, subdivision 1, is amended to read: 99.13 Subdivision 1. [COMMISSIONER.] The commissioner shall 99.14 establish a program to award grants to taconite mining companies 99.15 for: 99.16 (1) taconite pellet product improvements; 99.17 (2) value-added production of taconite iron ore; or 99.18 (3) cost-savings production improvements at Minnesota 99.19 taconite plants. 99.20 An amount equal to the sum of money transferred to the 99.21 general fund under section 93.223, subdivision 1, reduced by 99.22 $100,000, is annually appropriated from the general fund to the 99.23 commissioner for the purposes of this section. 99.24[EFFECTIVE DATE.] This section is effective July 1, 2002. 99.25 Sec. 14. [INCREASE TO WATER QUALITY PERMIT FEES.] 99.26 (a) The pollution control agency shall collect water 99.27 quality permit application and annual fees that reflect the fees 99.28 in Minnesota Rules, part 7002.0310, increased to the amounts 99.29 described in paragraphs (b) to (g). 99.30 (b) The application fee for individual permits, general 99.31 permits, and general industrial stormwater permits is $150. 99.32 (c) The annual fees for individual National Pollutant 99.33 Discharge Elimination System permits for major municipal 99.34 facilities are as follows: 99.35 Design Flow in 99.36 Million Gallons Per Day Annual Fee 100.1 50 and over $168,750 100.2 20 to 49.99 $38,750 100.3 5 to 19.99 $13,750 100.4 Up to 4.99 $5,625 100.5 (d) The annual fees for individual National Pollutant 100.6 Discharge Elimination System permits for major nonmunicipal 100.7 facilities are as follows: 100.8 Design Flow in 100.9 Million Gallons Per Day Annual Fee 100.11 20 to 49.99 $42,500 100.12 5 to 19.99 $17,500 100.13 Up to 4.99 $8,125 100.14 Cooling or mine pit 100.15 dewatering (any flow) $16,250 100.16 (e) The annual fees for individual National Pollutant 100.17 Discharge Elimination System and State Disposal System permits 100.18 for nonmajor municipal facilities with design flows greater than 100.19 0.100 million gallons per day are $1,310. 100.20 (f) The annual fees for general industrial stormwater 100.21 permits are $280. 100.22 (g) The annual fees for general National Pollutant 100.23 Discharge Elimination System and State Disposal System permits 100.24 are $345. 100.25 (h) The application and annual fees are not increased for 100.26 general construction stormwater permits and sanitary sewer 100.27 extension permits. The annual fees are not increased for 100.28 National Pollutant Discharge Elimination System and State 100.29 Disposal System permits regulating municipal nonmajors with 100.30 facility design flow of 0 to .100, sewage sludge landspreading 100.31 facilities, and nonmajor nonmunicipal facilities. 100.32 (i) The increased permit fees are effective July 1, 2002. 100.33 The agency shall adopt amended water quality permit fee rules 100.34 incorporating the permit fee increases in this subdivision under 100.35 Minnesota Statutes, section 14.389. The pollution control 100.36 agency shall begin collecting the increased permit fees on July 100.37 1, 2002, even if the rule adoption process has not been 100.38 initiated or completed. Notwithstanding Minnesota Statutes, 100.39 section 14.18, subdivision 2, the increased permit fees 100.40 reflecting the permit fee increases in this section and the rule 101.1 amendments incorporating those permit fee increases do not 101.2 require further legislative approval. 101.3 Sec. 15. [REPEALER.] 101.4 (a) Minnesota Statutes 2000, sections 103B.3369, 101.5 subdivisions 7 and 8; 103B.351; 103F.461; and 103G.2373, are 101.6 repealed. 101.7 (b) Minnesota Rules, parts 8405.0100; 8405.0110; 8405.0120; 101.8 8405.0130; 8405.0140; 8405.0150; 8405.0160; 8405.0170; 101.9 8405.0180; 8405.0190; 8405.0200; 8405.0210; 8405.0220; and 101.10 8405.0230, are repealed. 101.11 Sec. 16. [EFFECTIVE DATE.] 101.12 Except as otherwise specified, this article is effective 101.13 the day following final enactment. 101.14 ARTICLE 12 101.15 STATE GOVERNMENT APPROPRIATIONS 101.16 Section 1. [STATE GOVERNMENT APPROPRIATIONS.] 101.17 The dollar amounts in the columns under "APPROPRIATIONS" 101.18 are added to or, if shown in parentheses, are subtracted from 101.19 the appropriations in Laws 2001, First Special Session chapters 101.20 4, 8, and 10, or other law to the specified agencies. The 101.21 appropriations are from the general fund or other named fund and 101.22 are available for the fiscal years indicated for each purpose. 101.23 The figure "2002" or "2003" means that the addition to or 101.24 subtraction from the appropriations listed under the figure are 101.25 for the fiscal year ending June 30, 2002, or June 30, 2003, 101.26 respectively. 101.27 SUMMARY BY FUND 101.28 2002 2003 TOTAL 101.29 APPROPRIATIONS 101.30 General $ 14,945,000 $ (23,520,000)$ (8,575,000) 101.31 Special Revenue -0- 2,382,000 2,382,000 101.32 CANCELLATIONS (10,000,000) -0- (10,000,000) 101.33 APPROPRIATIONS 101.34 Available for the Year 101.35 Ending June 30 101.36 2002 2003 101.37 Sec. 2. LEGISLATURE 102.1 Subdivision 1. Total 102.2 Appropriation -0- (2,060,000) 102.3 Subd. 2. Senate 102.4 -0- (688,000) 102.5 Subd. 3. House of Representatives 102.6 -0- (910,000) 102.7 Subd. 4. Legislative Coordinating Commission 102.8 -0- (462,000) 102.9 $164,000 is a reduction for the office 102.10 of the legislative auditor. 102.11 Sec. 3. SECRETARY OF 102.12 STATE -0- (149,000) 102.13 Budget reductions shall not come from 102.14 revenue producing programs or elections. 102.15 Sec. 4. GOVERNOR'S OFFICE (141,000) (677,000) 102.16 No funding may be used for the 102.17 operation of the Washington, D.C., 102.18 office of the state of Minnesota. 102.19 Sec. 5. STATE AUDITOR -0- (515,000) 102.20 Sec. 6. STATE TREASURER -0- (30,000) 102.21 Sec. 7. ATTORNEY GENERAL -0- (822,000) 102.22 The attorney general, in consultation 102.23 with the affected agencies, shall 102.24 prepare a plan for ending partnership 102.25 agreements with agencies and shall 102.26 submit the plan to the legislature by 102.27 November 15, 2002. 102.28 Sec. 8. BOARD OF GOVERNMENT INNOVATION 102.29 COOPERATION -0- (26,000) 102.30 Sec. 9. DIRECTIVE 102.31 TO AGENCIES 102.32 Executive agencies covered by this 102.33 article must impose spending cuts 102.34 across the board and may make no 102.35 further cuts to pass-through grants. 102.36 By November 15, 2002, the commissioner 102.37 of finance shall report to the 102.38 legislature on cuts agencies have made. 102.39 Sec. 10. OFFICE OF STRATEGIC 102.40 AND LONG-RANGE PLANNING -0- (260,000) 102.41 Sec. 11. ADMINISTRATION 102.42 Subdivision 1. Total 102.43 Appropriation (74,000) 368,000 102.44 Summary by Fund 102.45 General (74,000) (2,014,000) 102.46 Special Revenue -0- 2,382,000 103.1 Subd. 2. Operations Management 103.2 -0- (497,000) 103.3 Subd. 3. Office of Technology 103.4 -0- (202,000) 103.5 Subd. 4. Intertechnologies Group 103.6 General Fund 103.7 -0- 1,961,000 103.8 Summary by Fund 103.9 General -0- (421,000) 103.10 Special Revenue -0- 2,382,000 103.11 In fiscal year 2003 an increase of 103.12 $2,382,000 is appropriated to the 103.13 commissioner of administration from the 103.14 911 emergency telephone service account 103.15 in the special revenue fund for 103.16 recurring costs of emergency telephone 103.17 service. 103.18 Subd. 5. Management Services 103.19 -0- (625,000) 103.20 Base funding may not be reduced for the 103.21 information policy analysis program. 103.22 Professional and technical contracts 103.23 are reduced by $430,000. 103.24 Subd. 6. Facilities Management 103.25 -0- (202,000) 103.26 Subd. 7. Public Broadcasting 103.27 -0- (67,000) 103.28 The base-level funding for the 103.29 2004-2005 biennium is reduced by 103.30 $133,000 each fiscal year. This 103.31 reduction must be applied on a 103.32 proportional basis. 103.33 Subd. 8. Fiscal Agents 103.34 (74,000) -0- 103.35 Voting equipment grants are reduced by 103.36 $74,000 in fiscal year 2002. 103.37 Sec. 12. FINANCE 103.38 Subdivision 1. Total Appropriation 103.39 Reductions (1,236,000) (3,639,000) 103.40 Subd. 2. State Financial Management 103.41 -0- (1,045,000) 103.42 Subd. 3. Information and Management 103.43 Services 103.44 (1,236,000) (2,594,000) 103.45 $660,000 of the reduction for 103.46 information and management services is 104.1 a onetime reduction. 104.2 Sec. 13. EMPLOYEE 104.3 RELATIONS -0- (1,269,000) 104.4 Sec. 14. MINNESOTA HUMANITIES 104.5 COMMISSION -0- (41,000) 104.6 Sec. 15. BOARD OF THE ARTS 104.7 Subdivision 1. Total 104.8 Appropriation -0- (526,000) 104.9 Subd. 2. Operations and Services 104.10 -0- (43,000) 104.11 Subd. 3. Grants Programs 104.12 -0- (342,000) 104.13 Subd. 4. Regional Arts Councils 104.14 -0- (141,000) 104.15 Sec. 16. MILITARY AFFAIRS -0- (697,000) 104.16 Sec. 17. VETERANS 104.17 AFFAIRS -0- (180,000) 104.18 Sec. 18. MINNESOTA 104.19 STATE RETIREMENT SYSTEM -0- (2,004,000) 104.20 $2,004,000 of the appropriation 104.21 reduction the second year is to 104.22 eliminate the open appropriation for 104.23 judges not participating in the 104.24 postretirement fund, effective July 1, 104.25 2002. 104.26 Sec. 19. CAMPAIGN FINANCE 104.27 AND PUBLIC DISCLOSURE BOARD -0- (35,000) 104.28 Sec. 20. INVESTMENT 104.29 BOARD -0- (127,000) 104.30 Sec. 21. CAPITOL AREA ARCHITECTURAL 104.31 AREA PLANNING BOARD -0- (16,000) 104.32 Sec. 22. LAWFUL GAMBLING CONTROL 104.33 BOARD -0- (126,000) 104.34 Sec. 23. MINNESOTA RACING 104.35 COMMISSION -0- (21,000) 104.36 Sec. 24. TORT CLAIMS -0- (114,000) 104.37 Sec. 25. CONTINGENT ACCOUNTS (2,005,000) (3,000,000) 104.38 The base funding for contingent 104.39 accounts is $646,000 each year for 104.40 fiscal years 2004 and 2005. 104.41 Sec. 26. TRADE AND ECONOMIC 104.42 DEVELOPMENT 104.43 Subdivision 1. Total 104.44 Appropriation 18,396,000 (2,913,000) 104.45 Subd. 2. Business and 104.46 Community Development 105.1 -0- (685,000) 105.2 Subd. 3. Minnesota Trade 105.3 Office 105.4 -0- (442,000) 105.5 All special revenue fund accounts for 105.6 the World Trade Conference Center in 105.7 the Trade Office shall cancel and 105.8 transfer to the general fund. 105.9 Subd. 4. Workforce 105.10 Development 105.11 -0- (73,000) 105.12 This is a onetime appropriation and is 105.13 not added to the base. 105.14 Subd. 5. Office of Tourism 105.15 -0- (982,000) 105.16 Subd. 6. Information and 105.17 Analysis 105.18 -0- (109,000) 105.19 Subd. 7. Administrative 105.20 Support 105.21 -0- (602,000) 105.22 Subd. 8. Film Board Grants 105.23 Program 105.24 -0- (20,000) 105.25 Subd. 9. Dislocated Worker Program 105.26 18,396,000 -0- 105.27 This appropriation is from the general 105.28 fund to the commissioner of finance for 105.29 transfer to the workforce development 105.30 fund for the dislocated worker 105.31 program. This is a onetime 105.32 appropriation and is not added to the 105.33 base. This appropriation is available 105.34 until expended. 105.35 Subd. 10. Biomedical Innovation and 105.36 Commercialization Initiative 105.37 The Laws 2001, First Special Session 105.38 chapter 5, article 19, section 2, 105.39 appropriation of $10,000,000 for the 105.40 biomedical innovation and 105.41 commercialization initiative is 105.42 canceled to the general fund. 105.43 Sec. 27. MINNESOTA TECHNOLOGY, 105.44 INC. -0- (305,000) 105.45 Sec. 28. ECONOMIC SECURITY 105.46 Subdivision 1. Total 105.47 Appropriation -0- (1,116,000) 105.48 Subd. 2. Workforce Services 105.49 -0- (455,000) 105.50 Subd. 3. Workforce Rehabilitation 105.51 Services 106.1 -0- (408,000) 106.2 State appropriations used to match 106.3 federal vocational rehabilitation 106.4 services money and federal money for 106.5 state services for the blind may not be 106.6 reduced. 106.7 Subd. 4. Workforce Services for 106.8 the Blind 106.9 -0- (253,000) 106.10 Base funding for the displaced 106.11 homemakers program may not be reduced. 106.12 The commissioner shall use available 106.13 federal administrative money, on a 106.14 proportional basis, to fund programs 106.15 being cut as a result of this act. 106.16 Sec. 29. HOUSING FINANCE 106.17 AGENCY -0- (523,000) 106.18 Sec. 30. HUMAN RIGHTS -0- (207,000) 106.19 Sec. 31. JUDICIAL STANDARDS BOARD -0- (13,000) 106.20 Sec. 32. UNIFORM LAWS COMMISSION 5,000 5,000 106.21 Sec. 33. Minnesota Statutes 2000, section 15.0591, 106.22 subdivision 2, is amended to read: 106.23 Subd. 2. [BODIES AFFECTED.] A member meeting the 106.24 qualifications in subdivision 1 must be appointed to the 106.25 following boards, commissions, advisory councils, task forces, 106.26 or committees: 106.27 (1) advisory council on battered women and domestic abuse; 106.28 (2) advisory task force on the use of state facilities; 106.29 (3) alcohol and other drug abuse advisory council; 106.30 (4) board of examiners for nursing home administrators; 106.31 (5) board on aging; 106.32 (6) chiropractic examiners board; 106.33 (7) consumer advisory council on vocational rehabilitation; 106.34 (8) council on disability; 106.35 (9) council on affairs of Chicano/Latino people; 106.36 (10) council on Black Minnesotans; 106.37 (11) dentistry board; 106.38 (12) department of economic security advisory council; 106.39 (13) higher education services office; 106.40 (14) housing finance agency; 106.41 (15) Indian advisory council on chemical dependency; 107.1 (16) medical practice board; 107.2 (17) medical policy directional task force on mental 107.3 health; 107.4 (18) Minnesota employment and economic development task 107.5 force; 107.6 (19)Minnesota office of citizenship and volunteer services107.7advisory committee;107.8(20)Minnesota state arts board; 107.9(21)(20) nursing board; 107.10(22)(21) optometry board; 107.11(23)(22) pharmacy board; 107.12(24)(23) board of physical therapy; 107.13(25)(24) podiatry board; 107.14(26)(25) psychology board; 107.15(27)(26) veterans advisory committee. 107.16 Sec. 34. Minnesota Statutes 2000, section 16A.40, is 107.17 amended to read: 107.18 16A.40 [WARRANTS AND ELECTRONIC FUND TRANSFERS.] 107.19 Money must not be paid out of the state treasury except 107.20 upon the warrant of the commissioner or an electronic fund 107.21 transfer approved by the commissioner. Warrants must be drawn 107.22 on printed blanks that are in numerical order. The commissioner 107.23 shall enter, in numerical order in a warrant register, the 107.24 number, amount, date, and payee for every warrant issued. 107.25 Payees receiving more than ten payments or $10,000 per year 107.26 must supply the commissioner with their bank routing information 107.27 to enable the payments to be made through an electronic fund 107.28 transfer. 107.29 Sec. 35. Minnesota Statutes 2001 Supplement, section 107.30 16B.65, subdivision 1, is amended to read: 107.31 Subdivision 1. [DESIGNATION.] By January 1, 2002, each 107.32 municipality shall designate a building official to administer 107.33 the code. A municipality may designate no more than one 107.34 building official responsible for code administration defined by 107.35 each certification category established in rule. Two or more 107.36 municipalities may combine in the designation of a building 108.1 official for the purpose of administering the provisions of the 108.2 code within their communities. In those municipalities for 108.3 which no building officials have been designated, the state 108.4 building official may use whichever state employees are 108.5 necessary to perform the duties of the building official until 108.6 the municipality makes a temporary or permanent designation. 108.7 All costs incurred by virtue of these services rendered by state 108.8 employees must be borne by the involved municipality and 108.9 receipts arising from these services must be paid into the state 108.10 treasury and credited to thegeneralspecial revenue fund. 108.11 Sec. 36. Minnesota Statutes 2001 Supplement, section 108.12 16B.65, subdivision 5a, is amended to read: 108.13 Subd. 5a. [ADMINISTRATIVE ACTION AND PENALTIES.] The 108.14 commissioner shall, by rule, establish a graduated schedule of 108.15 administrative actions for violations of sections 16B.59 to 108.16 16B.75 and rules adopted under those sections. The schedule 108.17 must be based on and reflect the culpability, frequency, and 108.18 severity of the violator's actions. The commissioner may impose 108.19 a penalty from the schedule on a certification holder for a 108.20 violation of sections 16B.59 to 16B.75 and rules adopted under 108.21 those sections. The penalty is in addition to any criminal 108.22 penalty imposed for the same violation. Administrative monetary 108.23 penalties imposed by the commissioner must be paid to the 108.24generalspecial revenue fund. 108.25 Sec. 37. Minnesota Statutes 2000, section 124D.385, 108.26 subdivision 2, is amended to read: 108.27 Subd. 2. [MEMBERSHIP.] (a) The commission consists of 18 108.28 voting members. Voting members shall include the commissioner 108.29 of children, families, and learning, a representative of the 108.30 children's cabinet elected by the members of the children's 108.31 cabinet, and the executive director of the higher education 108.32 services office. 108.33 (b) The governor shall appoint 15 additional voting 108.34 members. Eight of the voting members appointed by the governor 108.35 shall include a representative of public or nonprofit 108.36 organizations experienced in youth employment and training, 109.1 organizations promoting adult service and volunteerism, 109.2 community-based service agencies or organizations, local public 109.3 or private sector labor unions, local governments, business, a 109.4 national service program, and Indian tribes. The remaining 109.5 seven voting members appointed by the governor shall include an 109.6 individual with expertise in the educational, training, and 109.7 development needs of youth, particularly disadvantaged youth; a 109.8 youth or young adult who is a participant in a higher 109.9 education-based service-learning program; a disabled individual 109.10 representing persons with disabilities; a youth who is 109.11 out-of-school or disadvantaged; an educator of primary or 109.12 secondary students; an educator from a higher education 109.13 institution; and an individual between the ages of 16 and 25 who 109.14 is a participant or supervisor in a youth service program. 109.15 (c) The governor shall appoint up to five ex officio 109.16 nonvoting members from among the following agencies or 109.17 organizations: the departments of economic security, natural 109.18 resources, human services, health, corrections, agriculture, 109.19 public safety, finance, and labor and industry,the Minnesota109.20office of citizenship and volunteer services,the housing 109.21 finance agency, and Minnesota Technology, Inc. A representative 109.22 of the corporation for national and community service shall also 109.23 serve as an ex officio nonvoting member. 109.24 (d) Voting and ex officio nonvoting members may appoint 109.25 designees to act on their behalf. The number of voting members 109.26 who are state employees shall not exceed 25 percent. 109.27 (e) The governor shall ensure that, to the extent possible, 109.28 the membership of the commission is balanced according to 109.29 geography, race, ethnicity, age, and gender. The speaker of the 109.30 house and the majority leader of the senate shall each appoint 109.31 two legislators to be nonvoting members of the commission. 109.32 Sec. 38. Minnesota Statutes 2000, section 256.9753, 109.33 subdivision 3, is amended to read: 109.34 Subd. 3. [EXPENDITURES.] The board shall consult with 109.35 theoffice of citizenship and volunteer servicescommissioner of 109.36 human services, prior to expending money available for the 110.1 retired senior volunteer programs. Expenditures shall be made 110.2 (1) to strengthen and expand existing retired senior volunteer 110.3 programs, and (2) to encourage the development of new programs 110.4 in areas in the state where these programs do not exist. Grants 110.5 shall be made consistent with applicable federal guidelines. 110.6 Sec. 39. Minnesota Statutes 2000, section 357.021, 110.7 subdivision 2, is amended to read: 110.8 Subd. 2. [FEE AMOUNTS.] The fees to be charged and 110.9 collected by the court administrator shall be as follows: 110.10 (1) In every civil action or proceeding in said court, 110.11 including any case arising under the tax laws of the state that 110.12 could be transferred or appealed to the tax court, the 110.13 plaintiff, petitioner, or other moving party shall pay, when the 110.14 first paper is filed for that party in said action, a fee of 110.15$122$135. 110.16 The defendant or other adverse or intervening party, or any 110.17 one or more of several defendants or other adverse or 110.18 intervening parties appearing separately from the others, shall 110.19 pay, when the first paper is filed for that party in said 110.20 action, a fee of$122$135. 110.21 The party requesting a trial by jury shall pay $75. 110.22 The fees above stated shall be the full trial fee 110.23 chargeable to said parties irrespective of whether trial be to 110.24 the court alone, to the court and jury, or disposed of without 110.25 trial, and shall include the entry of judgment in the action, 110.26 but does not include copies or certified copies of any papers so 110.27 filed or proceedings under chapter 103E, except the provisions 110.28 therein as to appeals. 110.29 (2) Certified copy of any instrument from a civil or 110.30 criminal proceeding, $10, and $5 for an uncertified copy. 110.31 (3) Issuing a subpoena, $3 for each name. 110.32 (4) Issuing an execution and filing the return thereof; 110.33 issuing a writ of attachment, injunction, habeas corpus, 110.34 mandamus, quo warranto, certiorari, or other writs not 110.35 specifically mentioned, $10. 110.36 (5) Issuing a transcript of judgment, or for filing and 111.1 docketing a transcript of judgment from another court, $7.50. 111.2 (6) Filing and entering a satisfaction of judgment, partial 111.3 satisfaction, or assignment of judgment, $5. 111.4 (7) Certificate as to existence or nonexistence of 111.5 judgments docketed, $5 for each name certified to. 111.6 (8) Filing and indexing trade name; or recording basic 111.7 science certificate; or recording certificate of physicians, 111.8 osteopaths, chiropractors, veterinarians, or optometrists, $5. 111.9 (9) For the filing of each partial, final, or annual 111.10 account in all trusteeships, $10. 111.11 (10) For the deposit of a will, $5. 111.12 (11) For recording notary commission, $25, of which, 111.13 notwithstanding subdivision 1a, paragraph (b), $20 must be 111.14 forwarded to the state treasurer to be deposited in the state 111.15 treasury and credited to the general fund. 111.16 (12) Filing a motion or response to a motion for 111.17 modification of child support, a fee fixed by rule or order of 111.18 the supreme court. 111.19 (13) All other services required by law for which no fee is 111.20 provided, such fee as compares favorably with those herein 111.21 provided, or such as may be fixed by rule or order of the court. 111.22 (14) In addition to any other filing fees under this 111.23 chapter, a surcharge in the amount of $75 must be assessed in 111.24 accordance with section 259.52, subdivision 14, for each 111.25 adoption petition filed in district court to fund the fathers' 111.26 adoption registry under section 259.52. 111.27 The fees in clauses (3) and (4) need not be paid by a 111.28 public authority or the party the public authority represents. 111.29 Sec. 40. Minnesota Statutes 2000, section 490.123, is 111.30 amended by adding a subdivision to read: 111.31 Subd. 1e. [PARTICIPATION IN THE POSTRETIREMENT INVESTMENT 111.32 FUND.] Notwithstanding any laws to the contrary, all judges and 111.33 survivors receiving a benefit under this chapter shall receive 111.34 that benefit from the postretirement investment fund. Required 111.35 reserves for those judges not receiving benefits from the 111.36 postretirement investment fund as of July 1, 2002, shall be 112.1 transferred to the postretirement investment fund to pay future 112.2 benefits by July 31, 2002. 112.3 Sec. 41. Laws 1998, chapter 404, section 23, subdivision 112.4 6, is amended to read: 112.5 Subd. 6. St. Paul RiverCentre 112.6 Arena 65,000,000 112.7 This appropriation is from the general 112.8 fund to the commissioner of finance for 112.9 a loan to the city of St. Paul to 112.10 demolish the existing St. Paul 112.11 RiverCentre Arena and to design, 112.12 construct, furnish, and equip a new 112.13 arena. This appropriation is not 112.14 available until the lessee to whom the 112.15 city has leased the arena has agreed to 112.16 make rental or other payments to the 112.17 city under the terms set forth in this 112.18 subdivision. The loan is repayable 112.19 solely from and secured by the payments 112.20 made to the city by the lessee. The 112.21 loan is not a public debt and the full 112.22 faith, credit, and taxing powers of the 112.23 city are not pledged for its repayment. 112.24 (a) $48,000,000 of the loan must be 112.25 repaid to the commissioner, without 112.26 interest, within 20 years from the date 112.27 of substantial completion of the arena 112.28 in accordance with the following 112.29 schedule: 112.30 (1) no repayments are due in the first 112.31 two years from the date of substantial 112.32 completion; 112.33 (2) in each of the years three to five, 112.34 the lessee must pay $1,250,000; 112.35 (3) in each of the years six to ten, 112.36 the lessee must pay $1,500,000; 112.37 (4) in each of the years 11 to 13, the 112.38 lessee must pay $2,000,000; 112.39 (5) in year 14, the lessee must pay 112.40 $3,000,000; 112.41 (6) in year 15, the lessee must pay 112.42 $4,000,000; and 112.43 (7) in each of the years 16 to 20, the 112.44 lessee must pay $4,750,000. 112.45 (b) The commissioner must deposit the 112.46 repayments in the state treasury and 112.47 credit them to theyouth activities112.48account, which is hereby created in the112.49special revenue fund. Money in the112.50youth activities account is available112.51for expenditure as appropriated by112.52lawgeneral fund. 112.53 (c) The loan may not be made until the 112.54 commissioner has entered into an 112.55 agreement with the city of St. Paul 112.56 identifying the rental or other 113.1 payments that will be made and 113.2 establishing the dates on and the 113.3 amounts in which the payments will be 113.4 made to the city and by the city to the 113.5 commissioner. The payments may include 113.6 operating revenues and additional 113.7 payments to be made by the lessee under 113.8 agreements to be negotiated between the 113.9 commissioner, the city, and the 113.10 lessee. Those agreements may include, 113.11 but are not limited to, an agreement 113.12 whereby the lessee pledges to provide 113.13 each year a letter of credit sufficient 113.14 to guarantee the payment of the amount 113.15 due for the next succeeding year; an 113.16 agreement whereby the lessee agrees to 113.17 maintain a net worth, certified each 113.18 year by a financial institution or 113.19 accounting firm satisfactory to the 113.20 commissioner, that is greater than the 113.21 balance due under the payment schedule 113.22 in paragraph (a); and any other 113.23 agreements the commissioner may deem 113.24 necessary to ensure that the payments 113.25 are made as scheduled. 113.26 (d) The agreements must provide that 113.27 the failure of the lessee to make a 113.28 payment due to the city under the 113.29 agreement is an event of default under 113.30 the lease between the city and the 113.31 lessee and that the state is entitled 113.32 to enforce the remedies of the lessor 113.33 under the lease in the event of 113.34 default. Those remedies must include, 113.35 but need not be limited to, the 113.36 obligation of the lessee to pay the 113.37 balance due for the remainder of the 113.38 payment schedule in the event the 113.39 lessee ceases to operate a National 113.40 Hockey League team in the arena. 113.41 (e) By January 1, 1999, the 113.42 commissioner shall report to the chair 113.43 of the senate committee on state 113.44 government finance and the chair of the 113.45 house committee on ways and means the 113.46 terms of an agreement between the 113.47 lessee and the amateur sports 113.48 commission whereby the lessee agrees to 113.49 make the facilities of the arena 113.50 available to the commission on terms 113.51 satisfactory to the commission for 113.52 amateur sports activities consistent 113.53 with the purposes of Minnesota 113.54 Statutes, chapter 240A, each year 113.55 during the time the loan is 113.56 outstanding. The amateur sports 113.57 commission must negotiate in good faith 113.58 and may be required to pay no more than 113.59 actual out-of-pocket expenses for the 113.60 time it uses the arena. The agreement 113.61 may not become effective before 113.62 February 1, 1999. During any calendar 113.63 year after 1999 that an agreement under 113.64 this paragraph is not in effect and a 113.65 payment is due under the schedule, the 113.66 lessee must pay to the commissioner a 113.67 penalty of $750,000 for that year. If 113.68 the amateur sports commission has not 113.69 negotiated in good faith, no penalty is 114.1 due. 114.2 Sec. 42. Laws 2001, First Special Session chapter 4, 114.3 article 3, section 1, is amended to read: 114.4 Section 1. [DEPARTMENT OF ECONOMIC SECURITY ABOLISHED.] 114.5 The department of economic security is abolished. 114.6[EFFECTIVE DATE.] This section is effective July 1, 114.720022003. 114.8 Sec. 43. Laws 2001, First Special Session chapter 4, 114.9 article 3, section 2, subdivision 1, is amended to read: 114.10 Subdivision 1. [TO DEPARTMENT OF TRADE AND ECONOMIC 114.11 DEVELOPMENT.] The responsibilities of the department of economic 114.12 security performed by its workforce services unit for employment 114.13 transition services, youth services, welfare-to-work services, 114.14 and workforce exchange services are transferred to the 114.15 department of trade and economic development. 114.16[EFFECTIVE DATE.] This subdivision is effective July 1, 114.1720022003. 114.18 Sec. 44. Laws 2001, First Special Session chapter 4, 114.19 article 3, section 3, is amended to read: 114.20 Sec. 3. [ORGANIZATION OF DEPARTMENT OF TRADE AND ECONOMIC 114.21 DEVELOPMENT.] 114.22 The department of trade and economic development shall have 114.23 a division of economic development consisting of business and 114.24 community development, the Minnesota trade office, tourism 114.25 division, information and analysis division, and administrative 114.26 support. The job skills partnership program shall be housed in 114.27 the department and shall have a policy, research, and evaluation 114.28 unit. The job skills partnership board shall provide 114.29 targeted-worker services to include the dislocated worker 114.30 program and welfare-to-work services formerly located in the 114.31 department of economic security. The board shall have a unit 114.32 providing special programs under a workforce transition services 114.33 unit. 114.34[EFFECTIVE DATE.] This section is effective July 1, 114.3520022003. 114.36 Sec. 45. [REORGANIZATION POWERS SUSPENDED.] 115.1 Notwithstanding Minnesota Statutes, section 16B.37, the 115.2 commissioner of administration may not issue a reorganization 115.3 order affecting the department of economic security until July 115.4 1, 2003. 115.5 Sec. 46. [REPEALER.] 115.6 Minnesota Statutes 2001 Supplement, section 4.50, is 115.7 repealed. Minnesota Statutes 2000, section 490.123, subdivision 115.8 1d, is repealed effective June 30, 2002. 115.9 Sec. 47. [EFFECTIVE DATE.] 115.10 Except as otherwise provided in section 46, this article is 115.11 effective the day following final enactment. 115.12 ARTICLE 13 115.13 CANCELLATIONS; TRANSFERS; SALES TAX COLLECTIONS 115.14 Section 1. Minnesota Statutes 2000, section 16A.152, 115.15 subdivision 1, is amended to read: 115.16 Subdivision 1. [CASH FLOW ACCOUNT ESTABLISHED.] (a) A cash 115.17 flow account is created in the general fund in the state 115.18 treasury. Beginning July 1, 2003, the commissioner of finance 115.19 shall restrict part or all of the balance before reserves in the 115.20 general fund as may be necessary to fund the cash flow 115.21 accountas provided by law, up to $350,000,000. 115.22 (b)The commissioner of finance shall transfer the amount115.23necessary to bring the total amount of the cash flow account to115.24$350,000,000 on July 1, 1995.The amounts restricted shall 115.25 remain in the account until drawn down and used to meet cash 115.26 flow deficiencies resulting from uneven distribution of revenue 115.27 collections and required expenditures during a fiscal year. 115.28 Sec. 2. Minnesota Statutes 2001 Supplement, section 115.29 16A.152, subdivision 1a, is amended to read: 115.30 Subd. 1a. [BUDGET RESERVE.] A budget reserve accountof115.31$653,000,000is created in the general fund in the state 115.32 treasury. The commissioner of finance shall transfer to the 115.33 budget reserve account on July 1 of each odd-numbered year any 115.34 amounts specifically appropriated by law to the budget reserve. 115.35 Sec. 3. Minnesota Statutes 2001 Supplement, section 115.36 16A.152, subdivision 2, is amended to read: 116.1 Subd. 2. [ADDITIONAL REVENUES; PRIORITY.] If on the basis 116.2 of a forecast of general fund revenues and expenditures, the 116.3 commissioner of finance determines that there will be a positive 116.4 unrestricted budgetary general fund balance at the close of the 116.5 biennium, the commissioner of finance must allocate money to the 116.6 budget reserve until the total amount in the account equalsthe116.7amount set in this section$653,000,000. 116.8 The amounts necessary to meet the requirements of this 116.9 section are appropriated from the general fund within two weeks 116.10 after the forecast is released. 116.11 Sec. 4. Minnesota Statutes 2001 Supplement, section 116.12 62J.694, subdivision 1, is amended to read: 116.13 Subdivision 1. [CREATION.] (a) The medical education 116.14 endowment fund is created in the state treasury. The state 116.15 board of investment shall invest the fund under section 11A.24. 116.16 All earnings of the fund must be credited to the fund. The 116.17 principal of the fund must be maintained inviolate, except that 116.18 the principal may be used to make expenditures from the fund for 116.19 the purposes specified in this section when the market value of 116.20 the fund falls below 105 percent of the cumulative total of the 116.21 tobacco settlement payments received by the state and credited 116.22 to the tobacco settlement fund under section 16A.87, subdivision 116.23 2. For purposes of this section, "principal" means an amount 116.24 equal to the cumulative total of the tobacco settlement payments 116.25 received by the state and credited to the tobacco settlement 116.26 fund under section 16A.87, subdivision 2. 116.27 (b) If the commissioner of finance determines that probable 116.28 receipts to the general fund will be sufficient to meet the need 116.29 for expenditures from the general fund for a fiscal biennium, 116.30 the commissioner may use cash reserves of the medical education 116.31 endowment fund to pay expenses of the general fund. If cash 116.32 reserves are transferred to the general fund to meet cash flow 116.33 needs, the cash flow transfers must be returned to the endowment 116.34 fund as soon as sufficient cash balances are available in the 116.35 general fund, but in any event before the end of the fiscal 116.36 biennium. Any interest earned on cash flow transfers from the 117.1 endowment fund accrues to the endowment fund and not to the 117.2 general fund. 117.3 (c) The academic health center account is created as a 117.4 separate account in the medical education endowment fund. The 117.5 account is invested under paragraph (a). All earnings of the 117.6 account must be credited to the account. The principal of the 117.7 account must be maintained inviolate, except that the principal 117.8 may be used to make expenditures from the account for the 117.9 purposes specified in subdivision 2a when the value of the 117.10 account falls below an amount equal to deposits made to the 117.11 account under section 16A.87, subdivision 3, paragraph (b). 117.12 Sec. 5. Minnesota Statutes 2000, section 144.395, 117.13 subdivision 1, is amended to read: 117.14 Subdivision 1. [CREATION.] (a) The tobacco use prevention 117.15 and local public health endowment fund is created in the state 117.16 treasury. The state board of investment shall invest the fund 117.17 under section 11A.24. All earnings of the fund must be credited 117.18 to the fund. The principal of the fund must be maintained 117.19 inviolate, except that the principal may be used to make 117.20 expenditures from the fund for the purposes specified in this 117.21 section when the market value of the fund falls below 105 117.22 percent of the cumulative total of the tobacco settlement 117.23 payments received by the state and credited to the tobacco 117.24 settlement fund under section 16A.87, subdivision 2. For 117.25 purposes of this section, "principal" means an amount equal to 117.26 the cumulative total of the tobacco settlement payments received 117.27 by the state and credited to the tobacco settlement fund under 117.28 section 16A.87, subdivision 2. 117.29 (b) If the commissioner of finance determines that probable 117.30 receipts to the general fund will be sufficient to meet the need 117.31 for expenditures from the general fund for a fiscal biennium, 117.32 the commissioner may use cash reserves of the tobacco use 117.33 prevention and local public health endowment fund to pay 117.34 expenses of the general fund. If cash reserves are transferred 117.35 to the general fund to meet cash flow needs, the cash flow 117.36 transfers must be returned to the endowment fund as soon as 118.1 sufficient cash balances are available in the general fund, but 118.2 in any event before the end of the fiscal biennium. Any 118.3 interest earned on cash flow transfers from the endowment fund 118.4 accrues to the endowment fund and not to the general fund. 118.5 Sec. 6. Minnesota Statutes 2001 Supplement, section 118.6 289A.20, subdivision 4, is amended to read: 118.7 Subd. 4. [SALES AND USE TAX.] (a) The taxes imposed by 118.8 chapter 297A are due and payable to the commissioner monthly on 118.9 or before the 20th day of the month following the month in which 118.10 the taxable event occurred, or following another reporting 118.11 period as the commissioner prescribes or as allowed under 118.12 section 289A.18, subdivision 4, paragraph (f), except that use 118.13 taxes due on an annual use tax return as provided under section 118.14 289A.11, subdivision 1, are payable by April 15 following the 118.15 close of the calendar year. 118.16 (b) For a fiscal year ending before July 1,20022006, A 118.17 vendor having a liability of $120,000 or more during a fiscal 118.18 year ending June 30 must remit the June liability for the next 118.19 year in the following manner: 118.20 (1) Two business days before June 30 of the year, the 118.21 vendor must remit 62 percent of the estimated June liability to 118.22 the commissioner. 118.23 (2) On or before August 20 of the year, the vendor must pay 118.24 any additional amount of tax not remitted in June. 118.25 (c) A vendor having a liability of $120,000 or more during 118.26 a fiscal year ending June 30 must remit all liabilities on 118.27 returns due for periods beginning in the subsequent calendar 118.28 year by electronic means on or before the 20th day of the month 118.29 following the month in which the taxable event occurred, or on 118.30 or before the 20th day of the month following the month in which 118.31 the sale is reported under section 289A.18, subdivision 4, 118.32 except for 62 percent of the estimated June liability, which is 118.33 due two business days before June 30. The remaining amount of 118.34 the June liability is due on August 20. 118.35 Sec. 7. [BALANCES CANCELED TO GENERAL FUND.] 118.36 The unobligated balances in the following general fund 119.1 accounts created in the sections of Minnesota Statutes indicated 119.2 are canceled to the general fund: 119.3 (1) the cash flow account, Minnesota Statutes, section 119.4 16A.152, subdivision 1, estimated to be $350,000,000; 119.5 (2) the budget reserve account, Minnesota Statutes, section 119.6 16A.152, subdivision 1a, estimated to be $653,000,000; 119.7 (3) the tax relief account, Minnesota Statutes, section 119.8 16A.1522, subdivision 4, estimated to be $158,148,000; 119.9 (4) the local government aid reform account, Minnesota 119.10 Statutes, section 16A.1523, estimated to be $14,000,000; and 119.11 (5) the TIF grant account, Minnesota Statutes, section 119.12 469.1799, subdivision 3, estimated to be $129,000,000. 119.13 Sec. 8. [TRANSFERS TO GENERAL FUND.] 119.14 Subdivision 1. [ASSIGNED RISK PLAN.] By June 30, 2002, the 119.15 commissioner of finance shall transfer $94,900,000 in assets of 119.16 the assigned risk plan created under Minnesota Statutes, section 119.17 79.252, to the general fund. 119.18 Subd. 2. [SPECIAL COMPENSATION FUND.] After June 1, 2003, 119.19 but no later than June 30, 2003, the commissioner of finance 119.20 shall transfer $282,000,000 in assets of the excess surplus 119.21 account of the special compensation fund created under Minnesota 119.22 Statutes, section 176.129, to the general fund. 119.23 Subd. 3. [REPEALER.] Laws 2000, chapter 447, section 25, 119.24 is repealed. 119.25 Sec. 9. [BUSWAY APPROPRIATION CANCELED.] 119.26 The unobligated balance of the appropriation in Laws 2000, 119.27 chapter 492, article 2, section 1, estimated to be $15,000,000, 119.28 is canceled to the general fund. 119.29 Sec. 10. [APPROPRIATION TO BUDGET RESERVE.] 119.30 On July 1, 2003, $160,000,000 is appropriated from the 119.31 general fund to the commissioner of finance for transfer to the 119.32 budget reserve account under Minnesota Statutes, section 119.33 16A.152, subdivision 1a. 119.34 Sec. 11. [REPEALER.] 119.35 (a) Minnesota Statutes 2001 Supplement, sections 16A.1523; 119.36 and 469.1799, subdivisions 1 and 3, are repealed. 120.1 (b) Laws 2001, First Special Session chapter 5, article 20, 120.2 section 22, is repealed. 120.3 Sec. 12. [EFFECTIVE DATE.] 120.4 This article is effective the day following final 120.5 enactment, except that sections 4 and 5 are effective July 1, 120.6 2003. 120.7 ARTICLE 14 120.8 INFLATION ADJUSTMENTS 120.9 Section 1. Minnesota Statutes 2000, section 16A.103, 120.10 subdivision 1a, is amended to read: 120.11 Subd. 1a. [FORECAST PARAMETERS.] The forecast must assume 120.12 the continuation of current laws and reasonable estimates of 120.13 projected growth in the national and state economies and 120.14 affected populations. Revenue must be estimated for all sources 120.15 provided for in current law. Expenditures must be estimated for 120.16 all obligations imposed by law and those projected to occur as a 120.17 result ofinflation andvariables outside the control of the 120.18 legislature. Expenditure estimates must not include an 120.19 allowance for inflation. 120.20 Sec. 2. Minnesota Statutes 2000, section 16A.103, 120.21 subdivision 1b, is amended to read: 120.22 Subd. 1b. [FORECAST VARIABLE.] In determiningthe rate of120.23inflation, the application of inflation,the amount of state 120.24 bonding as it affects debt service, the calculation of 120.25 investment income, and the other variables to be included in the 120.26 expenditure part of the forecast, the commissioner must consult 120.27 with the chairs and lead minority members of the senate state 120.28 government finance committee and the house ways and means 120.29 committee, and legislative fiscal staff. This consultation must 120.30 occur at least three weeks before the forecast is to be 120.31 released. No later than two weeks prior to the release of the 120.32 forecast, the commissioner must inform the chairs and lead 120.33 minority members of the senate state government finance 120.34 committee and the house ways and means committee, and 120.35 legislative fiscal staff of any changes in these variables from 120.36 the previous forecast. 121.1 ARTICLE 15 121.2 TAXES; REVENUE DEPARTMENT 121.3 Section 1. Minnesota Statutes 2000, section 136A.08, 121.4 subdivision 3, is amended to read: 121.5 Subd. 3. [WISCONSIN.] A higher education reciprocity 121.6 agreement with the state of Wisconsin may include provision for 121.7 the transfer of funds between Minnesota and Wisconsinprovided121.8that an income tax reciprocity agreement between Minnesota and121.9Wisconsin is in effect for the period of time included under the121.10higher education reciprocity agreement. If this provision is 121.11 included, the amount of funds to be transferred shall be 121.12 determined according to a formula which is mutually acceptable 121.13 to the office and a duly designated agency representing 121.14 Wisconsin. The formula shall recognize differences in tuition 121.15 rates between the two states and the number of students 121.16 attending institutions in each state under the agreement. Any 121.17 payments to Minnesota by Wisconsin shall be deposited by the 121.18 office in the general fund of the state treasury. The amount 121.19 required for the payments shall be certified by the director of 121.20 the office to the commissioner of finance annually. 121.21[EFFECTIVE DATE.] This section is effective the day 121.22 following final enactment. 121.23 Sec. 2. Minnesota Statutes 2000, section 290.081, is 121.24 amended to read: 121.25 290.081 [INCOME OF NONRESIDENTS, RECIPROCITY.] 121.26 (a) The compensation received for the performance of 121.27 personal or professional services within this state by an 121.28 individual whose residence, place of abode, and place 121.29 customarily returned to at least once a month is in another 121.30 state, shall be excluded from gross income to the extent such 121.31 compensation is subject to an income tax imposed by the state of 121.32 residence; provided that such state allows a similar exclusion 121.33 of compensation received by residents of Minnesota for services 121.34 performed therein. 121.35 (b) When it is deemed to be in the best interests of the 121.36 people of this state, the commissioner may determine that the 122.1 provisions ofclauseparagraph (a) shall not apply.As long as122.2the provisions of clause (a) apply between Minnesota and122.3Wisconsin, the provisions of clause (a) shall apply to any122.4individual who is domiciled in Wisconsin.122.5(c) For the purposes of clause (a), whenever the Wisconsin122.6tax on Minnesota residents which would have been paid Wisconsin122.7without clause (a) exceeds the Minnesota tax on Wisconsin122.8residents which would have been paid Minnesota without clause122.9(a), or vice versa, then the state with the net revenue loss122.10resulting from clause (a) shall receive from the other state the122.11amount of such loss. This provision shall be effective for all122.12years beginning after December 31, 1972. The data used for122.13computing the loss to either state shall be determined on or122.14before September 30 of the year following the close of the122.15previous calendar year.122.16Interest shall be payable on all delinquent balances122.17relating to taxable years beginning after December 31, 1977.122.18The commissioner of revenue is authorized to enter into122.19agreements with the state of Wisconsin specifying the122.20reciprocity payment due date, conditions constituting122.21delinquency, interest rates, and a method for computing interest122.22due on any delinquent amounts.122.23If an agreement cannot be reached as to the amount of the122.24loss, the commissioner of revenue and the taxing official of the122.25state of Wisconsin shall each appoint a member of a board of122.26arbitration and these members shall appoint the third member of122.27the board. The board shall select one of its members as chair.122.28Such board may administer oaths, take testimony, subpoena122.29witnesses, and require their attendance, require the production122.30of books, papers and documents, and hold hearings at such places122.31as are deemed necessary. The board shall then make a122.32determination as to the amount to be paid the other state which122.33determination shall be final and conclusive.122.34The commissioner may furnish copies of returns, reports, or122.35other information to the taxing official of the state of122.36Wisconsin, a member of the board of arbitration, or a consultant123.1under joint contract with the states of Minnesota and Wisconsin123.2for the purpose of making a determination as to the amount to be123.3paid the other state under the provisions of this section.123.4Prior to the release of any information under the provisions of123.5this section, the person to whom the information is to be123.6released shall sign an agreement which provides that the person123.7will protect the confidentiality of the returns and information123.8revealed thereby to the extent that it is protected under the123.9laws of the state of Minnesota.123.10[EFFECTIVE DATE.] This section is effective for tax years 123.11 beginning after December 31, 2002. 123.12 Sec. 3. Minnesota Statutes 2000, section 469.175, 123.13 subdivision 5, is amended to read: 123.14 Subd. 5. [ANNUAL DISCLOSURE.] An annual statement showing 123.15 for each district the information required to be reported under 123.16 subdivision 6, paragraph (c), clauses (1), (2), (3), (11), (12), 123.17 (20), and (21); the amounts of tax increment received and 123.18 expended in the reporting period; and any additional information 123.19 the authority deems necessary must be published in a newspaper 123.20 of general circulation in the municipality that approved the tax 123.21 increment financing plan. The annual statement must inform 123.22 readers that additional information regarding each district may 123.23 be obtained from the authority, and must explain how the 123.24 additional information may be requested. The authority must 123.25 publish the annual statement for a year no later than August 15 123.26 of the next year. The authority must identify the newspaper of 123.27 general circulation in the municipality to which the annual 123.28 statement has been or will be submitted for publication and 123.29 provide a copy of the annual statement to the county board, the 123.30 county auditor, the school board, thestate auditorcommissioner 123.31 of revenue, and, if the authority is other than the 123.32 municipality, the governing body of the municipality on or 123.33 before August 1 of the year in which the statement must be 123.34 published. 123.35 The disclosure requirements imposed by this subdivision 123.36 apply to districts certified before, on, or after August 1, 1979. 124.1 Sec. 4. Minnesota Statutes 2000, section 469.175, 124.2 subdivision 6, is amended to read: 124.3 Subd. 6. [ANNUAL FINANCIAL REPORTING.] (a) The state 124.4 auditor shall develop a uniform system of accounting and 124.5 financial reporting for tax increment financing districts. The 124.6 system of accounting and financial reporting shall, as nearly as 124.7 possible: 124.8 (1) provide for full disclosure of the sources and uses of 124.9 public funds in the district; 124.10 (2) permit comparison and reconciliation with the affected 124.11 local government's accounts and financial reports; 124.12 (3) permit auditing of the funds expended on behalf of a 124.13 district, including a single district that is part of a 124.14 multidistrict project or that is funded in part or whole through 124.15 the use of a development account funded with tax increments from 124.16 other districts or with other public money; 124.17 (4) be consistent with generally accepted accounting 124.18 principles. 124.19 (b) The authority must annually submit to thestate auditor124.20 commissioner of revenue a financial report in compliance with 124.21 paragraph (a) that has been audited by an independent auditor. 124.22 Copies of the report must also be provided to the county auditor 124.23 and to the governing body of the municipality, if the authority 124.24 is not the municipality. To the extent necessary to permit 124.25 compliance with the requirement of financial reporting, the 124.26 county and any other appropriate local government unit or 124.27 private entity must provide the necessary records or information 124.28 to the authority or thestate auditorcommissioner of revenue as 124.29 provided by the system of accounting and financial reporting 124.30 developed pursuant to paragraph (a). The authority must submit 124.31 the annual report for a year on or before August 1 of the next 124.32 year. 124.33 (c) The annual financial report must also include the 124.34 following items: 124.35 (1) the original net tax capacity of the district and any 124.36 subdistrict under section 469.177, subdivision 1; 125.1 (2) the net tax capacity for the reporting period of the 125.2 district and any subdistrict; 125.3 (3) the captured net tax capacity of the district; 125.4 (4) any fiscal disparity deduction from the captured net 125.5 tax capacity under section 469.177, subdivision 3; 125.6 (5) the captured net tax capacity retained for tax 125.7 increment financing under section 469.177, subdivision 2, 125.8 paragraph (a), clause (1); 125.9 (6) any captured net tax capacity distributed among 125.10 affected taxing districts under section 469.177, subdivision 2, 125.11 paragraph (a), clause (2); 125.12 (7) the type of district; 125.13 (8) the date the municipality approved the tax increment 125.14 financing plan and the date of approval of any modification of 125.15 the tax increment financing plan, the approval of which requires 125.16 notice, discussion, a public hearing, and findings under 125.17 subdivision 4, paragraph (a); 125.18 (9) the date the authority first requested certification of 125.19 the original net tax capacity of the district and the date of 125.20 the request for certification regarding any parcel added to the 125.21 district; 125.22 (10) the date the county auditor first certified the 125.23 original net tax capacity of the district and the date of 125.24 certification of the original net tax capacity of any parcel 125.25 added to the district; 125.26 (11) the month and year in which the authority has received 125.27 or anticipates it will receive the first increment from the 125.28 district; 125.29 (12) the date the district must be decertified; 125.30 (13) for the reporting period and prior years of the 125.31 district, the actual amount received from, at least, the 125.32 following categories: 125.33 (i) tax increments paid by the captured net tax capacity 125.34 retained for tax increment financing under section 469.177, 125.35 subdivision 2, paragraph (a), clause (1), but excluding any 125.36 excess taxes; 126.1 (ii) tax increments that are interest or other investment 126.2 earnings on or from tax increments; 126.3 (iii) tax increments that are proceeds from the sale or 126.4 lease of property, tangible or intangible, purchased by the 126.5 authority with tax increments; 126.6 (iv) tax increments that are repayments of loans or other 126.7 advances made by the authority with tax increments; 126.8 (v) bond or loan proceeds; 126.9 (vi) special assessments; 126.10 (vii) grants; and 126.11 (viii) transfers from funds not exclusively associated with 126.12 the district; 126.13 (14) for the reporting period and for the prior years of 126.14 the district, the amount budgeted under the tax increment 126.15 financing plan, and the actual amount expended for, at least, 126.16 the following categories: 126.17 (i) acquisition of land and buildings through condemnation 126.18 or purchase; 126.19 (ii) site improvements or preparation costs; 126.20 (iii) installation of public utilities, parking facilities, 126.21 streets, roads, sidewalks, or other similar public improvements; 126.22 (iv) administrative costs, including the allocated cost of 126.23 the authority; 126.24 (v) public park facilities, facilities for social, 126.25 recreational, or conference purposes, or other similar public 126.26 improvements; and 126.27 (vi) transfers to funds not exclusively associated with the 126.28 district; 126.29 (15) for properties sold to developers, the total cost of 126.30 the property to the authority and the price paid by the 126.31 developer; 126.32 (16) the amount of any payments and the value of any 126.33 in-kind benefits, such as physical improvements and the use of 126.34 building space, that are paid or financed with tax increments 126.35 and are provided to another governmental unit other than the 126.36 municipality during the reporting period; 127.1 (17) the amount of any payments for activities and 127.2 improvements located outside of the district that are paid for 127.3 or financed with tax increments; 127.4 (18) the amount of payments of principal and interest that 127.5 are made during the reporting period on any nondefeased: 127.6 (i) general obligation tax increment financing bonds; 127.7 (ii) other tax increment financing bonds; and 127.8 (iii) notes and pay-as-you-go contracts; 127.9 (19) the principal amount, at the end of the reporting 127.10 period, of any nondefeased: 127.11 (i) general obligation tax increment financing bonds; 127.12 (ii) other tax increment financing bonds; and 127.13 (iii) notes and pay-as-you-go contracts; 127.14 (20) the amount of principal and interest payments that are 127.15 due for the current calendar year on any nondefeased: 127.16 (i) general obligation tax increment financing bonds; 127.17 (ii) other tax increment financing bonds; and 127.18 (iii) notes and pay-as-you-go contracts; 127.19 (21) if the fiscal disparities contribution under chapter 127.20 276A or 473F for the district is computed under section 469.177, 127.21 subdivision 3, paragraph (a), the amount of increased property 127.22 taxes imposed on other properties in the municipality that 127.23 approved the tax increment financing plan as a result of the 127.24 fiscal disparities contribution; and 127.25 (22) whether the tax increment financing plan or other 127.26 governing document permits increment revenues to be expended: 127.27 (i) to pay bonds, the proceeds of which were or may be 127.28 expended on activities outside of the district; 127.29 (ii) for deposit into a common bond fund from which money 127.30 may be expended on activities located outside of the district; 127.31 or 127.32 (iii) to otherwise finance activities located outside of 127.33 the tax increment financing district; and127.34(23) any additional information the state auditor may127.35require. 127.36 (d) The commissioner of revenue shall prescribe the method 128.1 of calculating the increased property taxes under paragraph (c), 128.2 clause (21), and the form of the statement disclosing this 128.3 information on the annual statement under subdivision 5. 128.4 (e) The reporting requirements imposed by this subdivision 128.5 apply to districts certified before, on, and after August 1, 128.6 1979. 128.7 Sec. 5. Minnesota Statutes 2001 Supplement, section 128.8 469.1771, subdivision 1, is amended to read: 128.9 Subdivision 1. [ENFORCEMENT.] (a) The owner of taxable 128.10 property located in the city, town, school district, or county 128.11 in which the tax increment financing district is located may 128.12 bring suit for equitable relief or for damages, as provided in 128.13 subdivisions 2, 3, and 4, arising out of a failure of a 128.14 municipality or authority to comply with the provisions of 128.15 sections 469.174 to 469.1798, or related provisions of this 128.16 chapter. The prevailing party in a suit filed under the 128.17 preceding sentence is entitled to costs, including reasonable 128.18 attorney fees. 128.19 (b)The state auditor may examine and audit political128.20subdivisions' use of tax increment financing. Without previous128.21notice, the state auditor may examine or audit accounts and128.22records on a random basis as the auditor deems to be in the128.23public interest. If the state auditor finds evidence that an128.24authority or municipality has violated a provision of the law128.25for which a remedy is provided under this section, the state128.26auditor shall forward the relevant information to the county128.27attorney.The county attorney may bring an action to enforce 128.28 the provisions of sections 469.174 to 469.1798 or related 128.29 provisions of this chapter, for matters referred by the state128.30auditor oron behalf of the county.If the county attorney128.31determines not to bring an action or if the county attorney has128.32not brought an action within 12 months after receipt of the128.33initial notification by the state auditor of the violation, the128.34county attorney shall notify the state auditor in writing.128.35(c) If the state auditor finds an authority is not in128.36compliance with sections 469.174 to 469.1798 or related129.1provisions of law, the auditor shall notify the governing body129.2of the municipality that approved the tax increment financing129.3district of its findings. The governing body of the129.4municipality must respond in writing to the state auditor within129.560 days after receiving the notification. Its written response129.6must state whether the municipality accepts, in whole or part,129.7the auditor's findings. If the municipality does not accept the129.8findings, the statement must indicate the basis for its129.9disagreement. The state auditor shall annually summarize the129.10responses it receives under this section and send the summary129.11and copies of the responses to the chairs of the committees of129.12the legislature with jurisdiction over tax increment financing.129.13(d) The state auditor shall notify the attorney general in129.14writing and provide supporting materials for a violation found129.15by the auditor, if the:129.16(1) auditor receives notification from the county attorney129.17under paragraph (b) or receives no notification for a 12-month129.18period after initially notifying the county attorney and the129.19state auditor confirms with the county attorney or the129.20municipality that no action has been brought regarding the129.21matter; and129.22(2) municipality or development authority have not129.23eliminated or resolved the violation to the satisfaction of the129.24state auditor.129.25The auditor shall provide the municipality and development129.26authority a copy of the notification sent to the attorney129.27general.129.28[EFFECTIVE DATE.] This section applies to violations 129.29 occurring after June 30, 2002. 129.30 Sec. 6. Minnesota Statutes 2000, section 469.1771, 129.31 subdivision 2a, is amended to read: 129.32 Subd. 2a. [SUSPENSION OF DISTRIBUTION OF TAX INCREMENT.] 129.33 (a) If an authority fails to make a disclosure or to submit a 129.34 report containing the information required by section 469.175, 129.35 subdivisions 5 and 6, regarding a tax increment financing 129.36 district within the time provided in section 469.175, 130.1 subdivisions 5 and 6, thestate auditorcommissioner of revenue 130.2 shall mail to the authority a written notice that it or the 130.3 municipality has failed to make the required disclosure or to 130.4 submit a required report with respect to a particular district. 130.5 Thestate auditorcommissioner of revenue shall mail the notice 130.6 on or before the third Tuesday of August of the year in which 130.7 the disclosure or report was required to be made or submitted. 130.8 The notice must describe the consequences of failing to disclose 130.9 or submit a report as provided in paragraph (b). If thestate130.10auditorcommissioner of revenue has not received a copy of a 130.11 disclosure or a report described in this paragraph on or before 130.12 the third Tuesday of November of the year in which the 130.13 disclosure or report was required to be made or submitted, the 130.14state auditorcommissioner of revenue shall mail a written 130.15 notice to the county auditor to hold the distribution of tax 130.16 increment from a particular district. 130.17 (b) Upon receiving written notice from thestate auditor130.18 commissioner of revenue to hold the distribution of tax 130.19 increment, the county auditor shall hold: 130.20 (1) 25 percent of the amount of tax increment that 130.21 otherwise would be distributed, if the distribution is made 130.22 after the third Friday in November but during the year in which 130.23 the disclosure or report was required to be made or submitted; 130.24 or 130.25 (2) 100 percent of the amount of tax increment that 130.26 otherwise would be distributed, if the distribution is made 130.27 after December 31 of the year in which the disclosure or report 130.28 was required to be made or submitted. 130.29 (c) Upon receiving the copy of the disclosure and all of 130.30 the reports described in paragraph (a) with respect to a 130.31 district regarding which thestate auditorcommissioner of 130.32 revenue has mailed to the county auditor a written notice to 130.33 hold distribution of tax increment, thestate auditor130.34 commissioner of revenue shall mail to the county auditor a 130.35 written notice lifting the hold and authorizing the county 130.36 auditor to distribute to the authority or municipality any tax 131.1 increment that the county auditor had held pursuant to paragraph 131.2 (b). Thestate auditorcommissioner of revenue shall mail the 131.3 written notice required by this paragraph within five working 131.4 days after receiving the last outstanding item. The county 131.5 auditor shall distribute the tax increment to the authority or 131.6 municipality within 15 working days after receiving the written 131.7 notice required by this paragraph. 131.8 (d) Notwithstanding any law to the contrary, any interest 131.9 that accrues on tax increment while it is being held by the 131.10 county auditor pursuant to paragraph (b) is not tax increment 131.11 and may be retained by the county. 131.12 (e) For purposes of sections 469.176, subdivisions 1a to 131.13 1g, and 469.177, subdivision 11, tax increment being held by the 131.14 county auditor pursuant to paragraph (b) is considered 131.15 distributed to or received by the authority or municipality as 131.16 of the time that it would have been distributed or received but 131.17 for paragraph (b). 131.18 Sec. 7. [APPROPRIATION REDUCTION.] 131.19 The general fund appropriation to the commissioner of 131.20 revenue in Laws 2001, First Special Session chapter 10, article 131.21 1, section 16, subdivision 1, is reduced by $7,500,000 for 131.22 fiscal year 2002 and $7,500,000 for fiscal year 2003. 131.23 Sec. 8. [EARLY RETIREMENT INCENTIVE.] 131.24 Subdivision 1. [ELIGIBILITY.] The early retirement 131.25 incentive provided in this section is available to an employee 131.26 of the department of revenue who: 131.27 (1) on the date of retirement is at least 55 years old and 131.28 has at least 25 years of allowable service in one or more of the 131.29 funds listed in Minnesota Statutes, section 356.30, subdivision 131.30 3; 131.31 (2) upon retirement is immediately eligible for a 131.32 retirement annuity from one or more of those funds; and 131.33 (3) retires on or after the effective date of this section, 131.34 but before January 1, 2003. 131.35 Subd. 2. [INCENTIVE.] For an eligible employee who retires 131.36 under this section, the employer shall pay the full employer 132.1 contribution, as specified in the collective bargaining 132.2 agreement or personnel policy covering the employee, for health 132.3 and dental insurance for the employee and, if the employee had 132.4 dependent coverage immediately before retirement, for the 132.5 employee's dependents. Notwithstanding Minnesota Statutes, 132.6 section 179A.20, subdivision 2a, the employer contribution under 132.7 this subdivision must continue until the employee reaches age 132.8 65. The postretirement health and dental coverage provided by 132.9 this section is the coverage the employee was receiving 132.10 immediately before retirement, subject to any changes in 132.11 coverage later specified by the collective bargaining agreement 132.12 or personnel policy that covered the employee immediately before 132.13 retirement. 132.14 Sec. 9. [REPEALER.] 132.15 (a) Minnesota Statutes 2000, section 469.1771, subdivision 132.16 2b, is repealed. 132.17 (b) Minnesota Statutes 2001 Supplement, section 469.177, 132.18 subdivision 11, is repealed. 132.19 Sec. 10. [EFFECTIVE DATE.] 132.20 This article is effective the day following final enactment.