2nd Unofficial Engrossment - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am
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 2001, First Special Session 2.5 chapter 3, article 1, section 17, subdivisions 3, 7, 2.6 9; Laws 2001, First Special Session chapter 3, article 2.7 2, section 15, subdivision 3; Laws 2001, First Special 2.8 Session chapter 4, article 3, section 1; Laws 2001, 2.9 First Special Session chapter 4, article 3, section 2, 2.10 subdivision 1; Laws 2001, First Special Session 2.11 chapter 4, article 3, section 3; Laws 2001, First 2.12 Special Session chapter 5, article 2, section 29, 2.13 subdivision 2; Laws 2001, First Special Session 2.14 chapter 6, article 1, section 54, subdivisions 2, 4, 2.15 5, 6, 7; Laws 2001, First Special Session chapter 6, 2.16 article 2, section 77, subdivisions 2, 4, 5, 8, 11, 2.17 15, 18; Laws 2001, First Special Session chapter 6, 2.18 article 3, section 21, subdivisions 2, 3, 4, 5, 7; 2.19 Laws 2001, First Special Session chapter 6, article 4, 2.20 section 27, subdivisions 2, 3, 5, 6; Laws 2001, First 2.21 Special Session chapter 6, article 5, section 13, 2.22 subdivision 2; Laws 2001, First Special Session 2.23 chapter 6, article 7, section 13; Laws 2001, First 2.24 Special Session chapter 8, article 4, section 11; Laws 2.25 2001, First Special Session chapter 9, article 5, 2.26 section 35; repealing Minnesota Statutes 2000, 2.27 sections 103B.3369, subdivisions 7, 8; 103B.351; 2.28 103F.461; 103G.2373; 144.6905; 145.475; 256.9731; 2.29 256B.0916, subdivision 1; 256K.01; 256K.015; 256K.02; 2.30 256K.03, as amended; 256K.04; 256K.05; 256K.06; 2.31 256K.08; 256K.09; 469.1771, subdivision 2b; 490.123, 2.32 subdivision 1d; Minnesota Statutes 2001 Supplement, 2.33 sections 4.50; 16A.1523; 256B.0625, subdivision 5a; 2.34 256K.07; 256L.03, subdivision 5a; 469.177, subdivision 2.35 11; 469.1799, subdivisions 1, 3; Laws 1999, chapter 2.36 152, section 2; Laws 1999, chapter 152, section 4, as 2.37 amended; Laws 2000, chapter 447, section 25; Laws 2.38 2001, First Special Session chapter 5, article 20, 2.39 section 22; Laws 2001, First Special Session chapter 2.40 9, article 13, section 22; Laws 2001, First Special 2.41 Session chapter 9, article 13, section 25; Laws 2001, 2.42 First Special Session chapter 9, article 13, section 2.43 26; Laws 2001, First Special Session chapter 9, 2.44 article 13, section 27; Laws 2001, First Special 2.45 Session chapter 9, article 13, section 28; Minnesota 2.46 Rules, parts 8405.0100; 8405.0110; 8405.0120; 2.47 8405.0130; 8405.0140; 8405.0150; 8405.0160; 8405.0170; 2.48 8405.0180; 8405.0190; 8405.0200; 8405.0210; 8405.0220; 2.49 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)$ (150,824,000) 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 the13.35 circumstances under which the fee is subsidized, in whole or in13.36 part.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 school for 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 ..... 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 percent16.13 of the appropriation each year and the international16.14 baccalaureate program shall receive 25 percent of the16.15 appropriation each year. The department, in consultation with16.16 representatives of the advanced placement and international16.17 baccalaureate programs selected by the advanced placement16.18 advisory council and IBMN, respectively, shall determine the16.19 amounts of the expenditures each year for examination fees and16.20 training and support programs for each program.16.21 (c) Notwithstanding Minnesota Statutes, section 120B.13,16.22 subdivision 1, $375,000 each year is for teachers to attend16.23 subject matter summer training programs and follow-up support16.24 workshops approved by the advanced placement or international16.25 baccalaureate programs. The amount of the subsidy for each16.26 teacher attending an advanced placement or international16.27 baccalaureate summer training program or workshop shall be the16.28 same. The commissioner shall determine the payment process and16.29 the amount of the subsidy.16.30 (d) Notwithstanding Minnesota Statutes, section 120B.13,16.31 subdivision 3, in each year to the extent of available16.32 appropriations, the commissioner shall pay all examination fees16.33 for all students sitting for an advanced placement examination,16.34 international baccalaureate examination, or both. If this16.35 amount is not adequate, the commissioner may pay less than the16.36 full examination fee.17.1 Any balance in the first year does not cancel but is17.2 available in the second year.17.3 Sec. 8. Laws 2001, First Special Session chapter 6, 17.4 article 7, section 13, is amended to read: 17.5 Sec. 13. [APPROPRIATIONS; DEPARTMENT OF CHILDREN, 17.6 FAMILIES, AND LEARNING.] 17.7 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 17.8 LEARNING.] Unless otherwise indicated, the sums indicated in 17.9 this section are appropriated from the general fund to the 17.10 department of children, families, and learning for the fiscal 17.11 years designated. 17.12 Subd. 2. [DEPARTMENT.] (a) For the department of children, 17.13 families, and learning: 17.14 $31,530,000 ..... 2002 17.15 $31,748,000 ..... 2003 17.16 Any balance in the first year does not cancel but is 17.17 available in the second year. 17.18 (b) up to $684,000 in 2002 and up to $690,000 in 2003 are 17.19 for the board of teaching. 17.20 (c) up to $165,000 each year is for the board of school 17.21 administrators. 17.22 (d) up to $400,000 in fiscal year 2002 and up to $400,000 17.23 in fiscal year 2003 are for the office of educational 17.24 accountability under Minnesota Statutes, section 120B.31, 17.25 subdivision 3. 17.26 (e) up to $500,000 in 2002 and up to $250,000 in 2003 and 17.27 thereafter are for the Minnesota Academic Excellence Foundation. 17.28 (f) $260,000 each year is for the Minnesota Children's 17.29 Museum; $50,000 in fiscal year 2002 is for the Duluth Children's 17.30 Museum. 17.31 (g) The expenditures of federal grants and aids as shown in 17.32 the biennial budget document and its supplements are approved 17.33 and appropriated and shall be spent as indicated. 17.34 (h) In preparing the department budget for fiscal years 17.35 2004-2005, the department shall shift all administrative funding 17.36 from aids appropriations into the appropriation for the 18.1 department. 18.2 Sec. 9. [FISCAL YEAR 2004 TRAINING AND EXPERIENCE LEVY.] 18.3 For taxes payable in 2003, a district may levy an amount 18.4 equal to the district's estimated training and experience 18.5 revenue for fiscal year 2004 under Minnesota Statutes, section 18.6 126C.10, subdivision 5. For taxes payable in 2005, the levy 18.7 shall be adjusted by the difference between the estimated 18.8 revenue used to determine the levy for taxes payable in 2003 and 18.9 the actual revenue. 18.10 Sec. 10. [FISCAL YEAR 2004 GENERAL EDUCATION AID.] 18.11 (a) Notwithstanding Minnesota Statutes, section 126C.13, 18.12 subdivision 4, a district's general education aid for fiscal 18.13 year 2004 is the sum of the following amounts: 18.14 (1) general education revenue excluding training and 18.15 experience revenue; 18.16 (2) shared time aid according to Minnesota Statutes, 18.17 section 126C.01, subdivision 7; and 18.18 (3) referendum aid according to Minnesota Statutes, section 18.19 126C.17. 18.20 (b) For fiscal year 2004, training and experience revenue 18.21 must be included in the calculation of general education aid for 18.22 charter schools under Minnesota Statutes, section 124D.11, 18.23 subdivision 1. 18.24 Sec. 11. [BASE LEVEL FUNDING FOR FISCAL YEARS 2004 AND 18.25 2005.] 18.26 (a) Base level funding for alternative teacher compensation 18.27 established under Minnesota Statutes, sections 122A.413 to 18.28 122A.415, is $3,000,000 for fiscal year 2004 and $3,000,000 in 18.29 fiscal year 2005. 18.30 (b) Base level funding for the department of children, 18.31 families, and learning is $28,601,000 for fiscal year 2004 and 18.32 $28,601,000 in fiscal year 2005. 18.33 (c) Base level funding for examination fees; teacher 18.34 training and support programs for advanced placement and 18.35 international baccalaureate programs under Minnesota Statutes, 18.36 section 120B.13, is $450,000 in fiscal year 2004 and $450,000 in 19.1 fiscal year 2005. 19.2 (d) The base level funding for excess building lease aid 19.3 under Minnesota Statutes, section 124D.11, subdivision 4a, is 19.4 $2,500,000 in fiscal year 2004 and $2,500,000 in fiscal year 19.5 2005. 19.6 Sec. 12. [APPROPRIATION CANCELED TO GENERAL FUND.] 19.7 The unobligated balance of the appropriation in Laws 1997, 19.8 First Special Session chapter 4, article 3, section 25, 19.9 subdivision 7, estimated to be $89,000 is canceled to the 19.10 general fund. 19.11 [EFFECTIVE DATE.]This section is effective the day 19.12 following final enactment. 19.13 Sec. 13. [EARLY RETIREMENT INCENTIVE.] 19.14 Subdivision 1. [ELIGIBILITY.] The early retirement 19.15 incentive provided in this section is available to an employee 19.16 of the department of children, families, and learning who: 19.17 (1) on the date of retirement is at least 55 years old and 19.18 has at least 25 years of allowable service in one or more of the 19.19 funds listed in Minnesota Statutes, section 356.30, subdivision 19.20 3; 19.21 (2) upon retirement is immediately eligible for a 19.22 retirement annuity from one or more of those funds; and 19.23 (3) retires on or after the effective date of this section, 19.24 but before January 1, 2003. 19.25 Subd. 2. [INCENTIVE.] For an eligible employee who retires 19.26 under this section, the employer shall pay the full employer 19.27 contribution, as specified in the collective bargaining 19.28 agreement or personnel policy covering the employee, for health 19.29 and dental insurance for the employee and, if the employee had 19.30 dependent coverage immediately before retirement, for the 19.31 employee's dependents. Notwithstanding Minnesota Statutes, 19.32 section 179A.20, subdivision 2a, the employer contribution under 19.33 this subdivision must continue until the employee reaches age 19.34 65. The postretirement health and dental coverage provided by 19.35 this section is the coverage the employee was receiving 19.36 immediately before retirement, subject to any changes in 20.1 coverage later specified by the collective bargaining agreement 20.2 or personnel policy that covered the employee immediately before 20.3 retirement. 20.4 [EFFECTIVE DATE.]This section is effective the day 20.5 following final enactment. 20.6 ARTICLE 4 20.7 HIGHER EDUCATION APPROPRIATIONS 20.8 Section 1. [HIGHER EDUCATION APPROPRIATIONS.] 20.9 The dollar amounts in the columns marked "APPROPRIATIONS" 20.10 are added to or, if shown in parentheses, are subtracted from 20.11 the appropriations in Laws 2001, First Special Session chapter 20.12 1, or other law to the specified agencies. The appropriations 20.13 are from the general fund or any other named fund and are 20.14 available for the fiscal years indicated for each purpose. The 20.15 figure 2002 or 2003 means that the addition to or subtraction 20.16 from the appropriations listed under the figure are for the 20.17 fiscal year ending June 30, 2002, or June 30, 2003, 20.18 respectively. If only one figure is shown in the text for a 20.19 specified purpose, the addition or subtraction is for 2002 20.20 unless the context intends another fiscal year. 20.21 SUMMARY BY FUND 20.22 2002 2003 TOTAL 20.23 General $ (50,000,000)$ (50,000,000) 20.26 SUMMARY BY AGENCY - ALL FUNDS 20.27 2002 2003 TOTAL 20.28 Higher Education 20.29 Services Office 20.30 Board of Trustees of 20.31 the Minnesota State Colleges 20.32 and Universities $ (24,493,000)$ (24,493,000) 20.33 Board of Regents of the 20.34 University of Minnesota $ (25,507,000)$ (25,507,000) 20.35 APPROPRIATIONS 20.36 Available for the Year 20.37 Ending June 30 20.38 2002 2003 20.39 Sec. 2. HIGHER EDUCATION 20.40 SERVICES OFFICE 21.1 Subdivision 1. Total 21.2 Appropriation Changes -0- -0- 21.3 Subd. 2. State Grants 1,660,000 3,070,000 21.4 Notwithstanding Laws 2001, First 21.5 Special Session chapter 1, article 1, 21.6 section 2, subdivision 2, savings in 21.7 the state grant program in fiscal year 21.8 2003 resulting from any increase in the 21.9 maximum federal grant over $3,750 or 21.10 from any other source, after use to 21.11 provide additional decreases in the 21.12 family responsibility for independent 21.13 students as provided by law, shall 21.14 remain in the state grant program. 21.15 Notwithstanding Laws 2001, First 21.16 Special Session chapter 1, article 1, 21.17 section 2, subdivision 2, the private 21.18 institution tuition maximum in fiscal 21.19 year 2003 shall be $9,163 for four-year 21.20 institutions and $7,093 for two-year 21.21 institutions. 21.22 Subd. 3. Interstate Tuition 21.23 Reciprocity (1,500,000) (1,000,000) 21.24 Subd. 4. Minitex 840,000 (840,000) 21.25 Subd. 5. Learning Network of Minnesota (841,000) 21.26 Subd. 6. Minnesota College 21.27 Savings Plan (1,000,000) 21.28 Subd. 7. Agency Administration (389,000) 21.29 Sec. 3. BOARD OF TRUSTEES OF THE 21.30 MINNESOTA STATE COLLEGES AND UNIVERSITIES 21.31 Total Appropriation Changes (24,493,000) 21.32 Sec. 4. BOARD OF REGENTS OF 21.33 THE UNIVERSITY OF MINNESOTA 21.34 Total Appropriation Changes (25,507,000) 21.35 Sec. 5. Minnesota Statutes 2001 Supplement, section 21.36 136A.121, subdivision 6, is amended to read: 21.37 Subd. 6. [COST OF ATTENDANCE.] (a) The recognized cost of 21.38 attendance consists of allowances specified in law for living 21.39 and miscellaneous expenses, and 21.40 (1) for public institutions, the actual tuition and fees21.41 charged by the institution; or21.42 (2) for private institutions,an allowance for tuition and 21.43 fees equal to the lesser of the actual tuition and fees charged 21.44 by the institution, or the private institution tuition and fee 21.45 maximums established in law. 21.46 (b) For the purpose of paragraph (a), clause (2),the 22.1 private institution tuition and fee maximum for two- and 22.2 four-year, private, residential, liberal arts, degree-granting 22.3 colleges and universities must be the same. 22.4 (c) For a student registering for less than full time, the 22.5 office shall prorate the living and miscellaneous expense 22.6 allowance to the actual number of credits for which the student 22.7 is enrolled. 22.8 The recognized cost of attendance for a student who is 22.9 confined to a Minnesota correctional institution shall consist 22.10 of the tuition and fee component in paragraph (a), clause (1) or22.11 (2),with no allowance for living and miscellaneous expenses. 22.12 [EFFECTIVE DATE.]This section is effective July 1, 2002. 22.13 Sec. 6. Minnesota Statutes 2001 Supplement, section 22.14 136G.03, subdivision 25, is amended to read: 22.15 Subd. 25. [PENALTY.] "Penalty" means the amount 22.16 established by the office that is applied against the earnings 22.17 portion of a nonqualified distribution. The amount established 22.18 by the office must be the minimum required to be a more than de 22.19 minimis penalty under section 529 of the Internal Revenue Code. 22.20 The office must impose, collect, and apply penalties consistent 22.21 with section 529 of the Internal Revenue Code. 22.22 [EFFECTIVE DATE.]This section is effective the day 22.23 following final enactment. 22.24 ARTICLE 5 22.25 HEALTH AND HUMAN SERVICES APPROPRIATIONS 22.26 Section 1. [HEALTH AND HUMAN SERVICES APPROPRIATIONS.] 22.27 The dollar amounts shown in the columns marked 22.28 "APPROPRIATIONS" are added to or, if shown in parentheses, are 22.29 subtracted from the appropriations in Laws 2001, First Special 22.30 Session chapter 9, or other law, and are appropriated from the 22.31 general fund, or any other fund named, to the agencies and for 22.32 the purposes specified in this article, to be available for the 22.33 fiscal years indicated for each purpose. The figures "2002" and 22.34 "2003" used in this article mean that the appropriation or 22.35 appropriations listed under them are available for the fiscal 22.36 year ending June 30, 2002, or June 30, 2003, respectively. 23.1 SUMMARY BY FUND 23.2 2002 2003 TOTAL 23.3 General 23.4 Forecast 23.5 Adjustments $13,759,000 $36,283,000 $50,042,000 23.6 Nonforecast (464,000) (32,149,000) (32,613,000) 23.7 Health Care 23.8 Access 13,881,000 8,410,000 22,291,000 23.9 Federal TANF 9,656,000 11,232,000 20,888,000 23.10 APPROPRIATIONS 23.11 Available for the Year 23.12 Ending June 30 23.13 2002 2003 23.14 Sec. 2. COMMISSIONER OF 23.15 HUMAN SERVICES 23.16 Subdivision 1. Total 23.17 Appropriation $ 43,603,000 $ 30,147,000 23.18 Summary by Fund 23.19 General 20,066,000 10,505,000 23.20 Health Care 23.21 Access 13,881,000 8,410,000 23.22 Federal TANF 9,656,000 11,232,000 23.23 Subd. 2. Agency Management 23.24 General -0- (8,401,000) 23.25 The amounts that may be spent from the 23.26 appropriation for each purpose are as 23.27 follows: 23.28 Management Operations 23.29 General -0- (8,401,000) 23.30 Subd. 3. Basic Health Care 23.31 Grants 23.32 General 11,992,000 839,000 23.33 Health Care 23.34 Access 13,881,000 8,410,000 23.35 The amounts that may be spent from this 23.36 appropriation for each purpose are as 23.37 follows: 23.38 (a) MinnesotaCare Grants 23.39 Health Care 23.40 Access 13,881,000 8,410,000 23.41 (b) MA Basic Health Care 23.42 Grants - Families and Children 23.43 General (17,319,000) (19,755,000) 23.44 [TRANSFER.] Of the general fund 23.45 appropriations to the University of 23.46 Minnesota in the higher education 24.1 omnibus appropriation bill, $10,000,000 24.2 in fiscal year 2003 and in each fiscal 24.3 year thereafter is to be transferred to 24.4 the department of human services for 24.5 the following purposes: (1) $5,000,000 24.6 is for the capitation payments under 24.7 Minnesota Statutes, section 256B.69. 24.8 (2) $5,000,000 is to be deposited in 24.9 the general fund. These transfers 24.10 shall not be made until the federal 24.11 government approves the medical 24.12 education payments authorized in 24.13 Minnesota Statutes, section 62J.692, 24.14 subdivision 7, paragraph (c). 24.15 Notwithstanding the provisions of 24.16 section 4, this provision shall not 24.17 expire. 24.18 [NONMETROPOLITAN COUNTY PREPAID MEDICAL 24.19 ASSISTANCE PROGRAM RATE REDUCTION.] A 24.20 demonstration provider must not reduce 24.21 payment rates to providers to reflect 24.22 the reduction effective January 1, 24.23 2003, in rates paid under Minnesota 24.24 Statutes, section 256B.69, to 24.25 nonmetropolitan counties. 24.26 (c) MA Basic Health Care 24.27 Grants - Elderly and Disabled 24.28 General 3,062,000 (22,440,000) 24.29 [NOTICE OF CHANGE IN DOCUMENTATION.] 24.30 The commissioner shall provide to all 24.31 medical assistance recipients receiving 24.32 coverage through the employed persons 24.33 with disabilities program under 24.34 Minnesota Statutes, section 256B.057, 24.35 subdivision 9, three months advance 24.36 notice of the new employment 24.37 documentation requirement. 24.38 (d) General Assistance 24.39 Medical Care Grants 24.40 General 26,249,000 40,835,000 24.41 (e) Health Care Grants - 24.42 Other Assistance 24.43 General -0- 2,199,000 24.44 [PRESCRIPTION DRUG PROGRAM FUNDING.] 24.45 (1) The commissioner may expend money 24.46 appropriated for the prescription drug 24.47 program in either fiscal year of the 24.48 2002-2003 biennium. (2) The 24.49 commissioner shall administer the 24.50 prescription drug program pursuant to 24.51 Minnesota Statutes, section 256.955, 24.52 subdivision 9, so that the costs total 24.53 not more than funds appropriated plus 24.54 the drug rebate proceeds. 24.55 Subd. 4. Basic Health Care 24.56 Management 24.57 General -0- (1,020,000) 24.58 The amounts that may be spent from this 24.59 appropriation for each purpose are as 25.1 follows: 25.2 (a) Health Care Policy 25.3 Administration 25.4 General -0- 445,000 25.5 (b) Health Care 25.6 Operations 25.7 General -0- (1,465,000) 25.8 Subd. 5. State-Operated 25.9 Services 25.10 General -0- (1,333,000) 25.11 [ADMINISTRATIVE BASE FUNDING 25.12 REDUCTION.] For fiscal year 2003, base 25.13 level funding for state-operated 25.14 services administration is reduced by 25.15 $1,333,000. For the biennium beginning 25.16 July 1, 2003, base level funding for 25.17 state-operated services administration 25.18 shall be reduced by an additional 25.19 $494,000 each year. 25.20 Subd. 6. Continuing Care 25.21 Grants 25.22 General (8,907,000) (10,109,000) 25.23 The amounts that may be spent from this 25.24 appropriation for each purpose are as 25.25 follows: 25.26 (a) Aging Adult Service 25.27 Grants 25.28 General -0- (1,160,000) 25.29 [PLANNING AND SERVICE DEVELOPMENT.] The 25.30 planning and service development grant 25.31 from Laws 2001, First Special Session 25.32 chapter 9, article 17, section 2, 25.33 subdivision 9, is eliminated for fiscal 25.34 year 2003. Base funding for the 25.35 2004-2005 biennium shall be $550,000 25.36 each year. Notwithstanding Laws 2001, 25.37 First Special Session chapter 9, 25.38 article 17, section 2, subdivision 9, 25.39 beginning in fiscal year 2004, the 25.40 commissioner shall annually distribute 25.41 $5,000 to each county. Counties with 25.42 more than 10,000 persons over age 65 25.43 shall receive a distribution of an 25.44 additional 25 cents for each person 25.45 over age 65. The amount distributed to 25.46 each area agency on aging shall be 25.47 $2,500. 25.48 (b) Medical Assistance 25.49 Long-Term Care Waivers and 25.50 Home Care Grants 25.51 General 18,471,000 17,009,000 25.52 (c) Medical Assistance 25.53 Long-Term Care Facilities 25.54 Grants 26.1 General (27,382,000) (26,348,000) 26.2 [MORATORIUM EXCEPTIONS.] During each 26.3 year of the biennium beginning July 1, 26.4 2001, the full annualized costs for the 26.5 state share of medical assistance that 26.6 the commissioner of health may approve 26.7 for moratorium exception projects under 26.8 Minnesota Statutes, section 144A.073, 26.9 is reduced by $495,000. 26.10 [APPLICATION OF PRESCRIPTION DRUG 26.11 SAVINGS.] If the commissioner receives 26.12 approval to expand the qualified 26.13 Medicare beneficiary option to include 26.14 prescription drugs and to increase the 26.15 qualified Medicare beneficiary income 26.16 standard to 150 percent of the federal 26.17 poverty guidelines, the state savings 26.18 must be used to reduce the nursing 26.19 facility surcharge under Minnesota 26.20 Statutes, section 256.9657, subdivision 26.21 1, paragraph (c) or (d). 26.22 (d) Group Residential 26.23 Housing Grants 26.24 General 4,000 474,000 26.25 [FEDERAL FUNDING FOR GROUP RESIDENTIAL 26.26 HOUSING COSTS.] The commissioner shall 26.27 seek federal funding to offset costs 26.28 for group residential housing services 26.29 under Minnesota Statutes, chapter 256I. 26.30 Any federal funding received shall be 26.31 distributed to counties on a pro rata 26.32 basis according to county spending 26.33 under Minnesota Statutes, section 26.34 256B.19, subdivision 1, clause (3), for 26.35 the costs of nursing facility 26.36 placements of persons with disabilities 26.37 under the age of 65 that have exceeded 26.38 90 days. The commissioner shall report 26.39 to the legislature by January 15, 2003, 26.40 on the status of additional federal 26.41 funding for group residential housing 26.42 costs. 26.43 (e) Chemical Dependency 26.44 Entitlement Grants 26.45 General -0- (84,000) 26.46 [CONSOLIDATED CHEMICAL DEPENDENCY 26.47 TREATMENT FUND RESERVE TRANSFER.] On 26.48 July 1, 2003, up to $8,544,000 of funds 26.49 available in the consolidated chemical 26.50 dependency treatment fund general 26.51 reserve account is transferred to the 26.52 general fund. 26.53 Subd. 7. Continuing Care 26.54 Management 26.55 General (1,295,000) (205,000) 26.56 [DAY TRAINING TASK FORCE.] The general 26.57 fund appropriation in fiscal year 2003 26.58 in Laws 2001, First Special Session 26.59 chapter 9, article 17, section 2, 26.60 subdivision 10, for the day training 27.1 and habilitation restructuring task 27.2 force is eliminated. 27.3 Subd. 8. Economic 27.4 Support Grants 27.5 General 18,276,000 30,734,000 27.6 Federal TANF 9,656,000 11,232,000 27.7 The amounts that may be spent from the 27.8 appropriation for each purpose are as 27.9 follows: 27.10 (a) Assistance to Families 27.11 Grants 27.12 General 16,988,000 28,391,000 27.13 Federal TANF 9,656,000 11,232,000 27.14 (b) Work Grants 27.15 General -0- (404,000) 27.16 (c) Economic Support 27.17 Grants - Other Assistance 27.18 General (650,000) (100,000) 27.19 (d) General Assistance 27.20 Grants 27.21 General 3,300,000 4,288,000 27.22 (e) Minnesota Supplemental 27.23 Aid Grants 27.24 General (1,362,000) (1,441,000) 27.25 Sec. 3. COMMISSIONER OF HEALTH 27.26 Subdivision 1. Total Appropriation 27.27 Reductions (6,771,000) (6,371,000) 27.28 SUMMARY BY FUND 27.29 2002 2003 27.30 General (6,771,000) (6,371,000) 27.31 Subd. 2. Family and Community 27.32 Health (1,400,000) (750,000) 27.33 Summary by Fund 27.34 General (1,400,000) (750,000) 27.35 [ONETIME GRANT REDUCTIONS.] $200,000 of 27.36 the appropriation reduction the first 27.37 year is from competitive grants to 27.38 reduce health disparities in infant 27.39 mortality rates and adult and child 27.40 immunization rates authorized in Laws 27.41 2001, First Special Session chapter 9, 27.42 article 17, section 3, subdivision 2. 27.43 $300,000 of the appropriation reduction 27.44 the first year is from competitive 27.45 grants to reduce health disparities in 27.46 breast and cervical cancer screening 28.1 rates, HIV/AIDS and sexually 28.2 transmitted infection rates, 28.3 cardiovascular disease rates, diabetes 28.4 rates, and rates of accidental injuries 28.5 and violence authorized in Laws 2001, 28.6 First Special Session chapter 9, 28.7 article 17, section 3, subdivision 2. 28.8 $150,000 of the appropriation reduction 28.9 the first year is from community-based 28.10 programs for suicide prevention 28.11 authorized in Laws 2001, First Special 28.12 Session chapter 9, article 17, section 28.13 3, subdivision 2. 28.14 Subd. 3. Access and Quality 28.15 Improvement (4,970,000) (5,020,000) 28.16 [HEALTH STATUS IMPROVEMENT GRANTS.] Of 28.17 this reduction, $120,000 each year is 28.18 from money for grants appropriated 28.19 under Laws 2001, First Special Session 28.20 chapter 9, article 17, section 3, 28.21 subdivision 2. 28.22 Subd. 4. Health Protection (151,000) (251,000) 28.23 Subd. 5. Management and Support 28.24 Services (250,000) (350,000) 28.25 Sec. 4. [SUNSET OF UNCODIFIED LANGUAGE.] 28.26 All uncodified language contained in this article expires 28.27 on June 30, 2003, unless a different expiration date is explicit. 28.28 Sec. 5. [EFFECTIVE DATE.] 28.29 The appropriations and reductions for fiscal year 2002 in 28.30 this article are effective the day following final enactment. 28.31 ARTICLE 6 28.32 CONTINUING CARE AND LONG-TERM CARE 28.33 Section 1. Minnesota Statutes 2000, section 256.9657, 28.34 subdivision 1, is amended to read: 28.35 Subdivision 1. [NURSING HOME LICENSE SURCHARGE.] (a) 28.36 Effective July 1, 1993, each non-state-operated nursing home 28.37 licensed under chapter 144A shall pay to the commissioner an 28.38 annual surcharge according to the schedule in subdivision 4. 28.39 The surcharge shall be calculated as $620 per licensed bed. If 28.40 the number of licensed beds is reduced, the surcharge shall be 28.41 based on the number of remaining licensed beds the second month 28.42 following the receipt of timely notice by the commissioner of 28.43 human services that beds have been delicensed. The nursing home 28.44 must notify the commissioner of health in writing when beds are 28.45 delicensed. The commissioner of health must notify the 29.1 commissioner of human services within ten working days after 29.2 receiving written notification. If the notification is received 29.3 by the commissioner of human services by the 15th of the month, 29.4 the invoice for the second following month must be reduced to 29.5 recognize the delicensing of beds. Beds on layaway status 29.6 continue to be subject to the surcharge. The commissioner of 29.7 human services must acknowledge a medical care surcharge appeal 29.8 within 30 days of receipt of the written appeal from the 29.9 provider. 29.10 (b) Effective July 1, 1994, the surcharge in paragraph (a) 29.11 shall be increased to $625. 29.12 (c) Effective August 15, 2003, the surcharge under 29.13 paragraph (b) shall be increased by an amount necessary to 29.14 ensure a net gain to the general fund of $10,066,000 during 29.15 fiscal year 2004 as a result of: 29.16 (1) the total transfers anticipated during the fiscal year 29.17 ending June 30, 2004, under section 256B.19, subdivision 1d, 29.18 paragraph (c); 29.19 (2) the county nursing home payment adjustments under 29.20 section 256B.431, subdivision 23, paragraph (c); 29.21 (3) the surcharges under this paragraph; and 29.22 (4) the nursing facility rate increases under section 29.23 256B.431, subdivision 37. 29.24 The increase under this paragraph shall not exceed $365 per bed. 29.25 (d) Effective August 15, 2004, the surcharge under 29.26 paragraph (c) shall be equal to an amount necessary to ensure a 29.27 net gain to the general fund each fiscal year of $10,666,000 as 29.28 a result of: 29.29 (1) the total transfers anticipated during the fiscal year 29.30 under section 256B.19, subdivision 1d, paragraph (c); 29.31 (2) the county nursing home payment adjustments under 29.32 section 256B.431, subdivision 23, paragraph (c); 29.33 (3) the surcharges under this paragraph; and 29.34 (4) the nursing facility rate increases under section 29.35 256B.431, subdivision 37. 29.36 The surcharge under this paragraph shall not exceed $365 per bed. 30.1 Sec. 2. Minnesota Statutes 2000, section 256B.19, 30.2 subdivision 1, is amended to read: 30.3 Subdivision 1. [DIVISION OF COST.] The state and county 30.4 share of medical assistance costs not paid by federal funds 30.5 shall be as follows: 30.6 (1) ninety percent state funds and ten percent county 30.7 funds, unless otherwise provided below; 30.8 (2) beginning January 1, 1992, 50 percent state funds and 30.9 50 percent county funds for the cost of placement of severely 30.10 emotionally disturbed children in regional treatment centers; 30.11 and 30.12 (3) beginning January 1, 2004, 80 percent state funds and 30.13 20 percent county funds for the costs of nursing facility 30.14 placements of persons with disabilities under the age of 65 that 30.15 have exceeded 90 days. 30.16 For counties that participate in a Medicaid demonstration 30.17 project under sections 256B.69 and 256B.71, the division of the 30.18 nonfederal share of medical assistance expenses for payments 30.19 made to prepaid health plans or for payments made to health 30.20 maintenance organizations in the form of prepaid capitation 30.21 payments, this division of medical assistance expenses shall be 30.22 95 percent by the state and five percent by the county of 30.23 financial responsibility. 30.24 In counties where prepaid health plans are under contract 30.25 to the commissioner to provide services to medical assistance 30.26 recipients, the cost of court ordered treatment ordered without 30.27 consulting the prepaid health plan that does not include 30.28 diagnostic evaluation, recommendation, and referral for 30.29 treatment by the prepaid health plan is the responsibility of 30.30 the county of financial responsibility. 30.31 Sec. 3. Minnesota Statutes 2000, section 256B.19, 30.32 subdivision 1d, is amended to read: 30.33 Subd. 1d. [PORTION OF NONFEDERAL SHARE TO BE PAID BY 30.34 CERTAIN COUNTIES.] (a) In addition to the percentage 30.35 contribution paid by a county under subdivision 1, the 30.36 governmental units designated in this subdivision shall be 31.1 responsible for an additional portion of the nonfederal share of 31.2 medical assistance cost. For purposes of this subdivision, 31.3 "designated governmental unit" means the counties of Becker, 31.4 Beltrami, Clearwater, Cook, Dodge, Hubbard, Itasca, Lake, 31.5 Pennington, Pipestone, Ramsey, St. Louis, Steele, Todd, 31.6 Traverse, and Wadena. 31.7 (b) Beginning in 1994, each of the governmental units 31.8 designated in this subdivision shall transfer before noon on May 31.9 31 to the state Medicaid agency an amount equal to the number of 31.10 licensed beds in any nursing home owned and operated by the 31.11 county, with the county named as licensee, multiplied by $5,723. 31.12 If two or more counties own and operate a nursing home, the 31.13 payment shall be prorated. These sums shall be part of the 31.14 designated governmental unit's portion of the nonfederal share 31.15 of medical assistance costs, but shall not be subject to payback 31.16 provisions of section 256.025. 31.17 (c) Beginning in 2002, in addition to any transfer under 31.18 paragraph (b), each of the governmental units designated in this 31.19 subdivision shall transfer before noon on May 31 to the state 31.20 Medicaid agency an amount equal to the number of licensed beds 31.21 in any nursing home owned and operated by the county on that 31.22 date, with the county named as licensee, multiplied by $10,784. 31.23 The provisions of paragraph (b) apply to transfers under this 31.24 paragraph. 31.25 (d) The commissioner may reduce the intergovernmental 31.26 transfers under paragraph (c) based on the commissioner's 31.27 determination of the payment rate in section 256B.431, 31.28 subdivision 23, paragraphs (c) and (d). Any adjustments must be 31.29 made on a per-bed basis and must result in an amount equivalent 31.30 to the total amount resulting from the rate adjustment in 31.31 section 256B.431, subdivision 23, paragraphs (c) and (d). 31.32 [EFFECTIVE DATE.]This section is effective the day 31.33 following final enactment. 31.34 Sec. 4. Minnesota Statutes 2000, section 256B.431, 31.35 subdivision 23, is amended to read: 31.36 Subd. 23. [COUNTY NURSING HOME PAYMENT ADJUSTMENTS.] (a) 32.1 Beginning in 1994, the commissioner shall pay a nursing home 32.2 payment adjustment on May 31 after noon to a county in which is 32.3 located a nursing home that, as of January 1 of the previous 32.4 year, was county-owned and operated, with the county named as 32.5 licensee by the commissioner of health, and had over 40 beds and 32.6 medical assistance occupancy in excess of 50 percent during the 32.7 reporting year ending September 30, 1991. The adjustment shall 32.8 be an amount equal to $16 per calendar day multiplied by the 32.9 number of beds licensed in the facility as of September 30, 1991. 32.10 (b) Payments under paragraph (a) are excluded from medical 32.11 assistance per diem rate calculations. These payments are 32.12 required notwithstanding any rule prohibiting medical assistance 32.13 payments from exceeding payments from private pay residents. A 32.14 facility receiving a payment under paragraph (a) may not 32.15 increase charges to private pay residents by an amount 32.16 equivalent to the per diem amount payments under paragraph (a) 32.17 would equal if converted to a per diem. 32.18 (c) Beginning in 2002, in addition to any payment under 32.19 paragraph (a), the commissioner shall pay to a nursing facility 32.20 described in paragraph (a) an adjustment in an amount equal to 32.21 $29.55 per calendar day multiplied by the number of beds 32.22 licensed in the facility on that date. The provisions of 32.23 paragraphs (a) and (b) apply to payments under this paragraph. 32.24 (d) The commissioner may reduce payments under paragraph (c) 32.25 based on the commissioner's determination of Medicare upper 32.26 payment limits. Any adjustments must be proportional to 32.27 adjustments made under section 256B.19, subdivision 1d, 32.28 paragraph (d). 32.29 [EFFECTIVE DATE.]This section is effective the day 32.30 following final enactment. 32.31 Sec. 5. Minnesota Statutes 2000, section 256B.431, is 32.32 amended by adding a subdivision to read: 32.33 Subd. 37. [NURSING HOME RATE INCREASES EFFECTIVE JULY 1, 32.34 2003.] For rate years beginning on or after July 1, 2003, the 32.35 commissioner shall provide to each nursing home reimbursed under 32.36 this section or section 256B.434 an increase in each case mix 33.1 payment rate equal to the increase in the per-bed surcharge paid 33.2 under section 256.9657, subdivision 1, paragraph (c) or (d), 33.3 divided by 365 and further divided by .88. The increase under 33.4 this subdivision shall be added following the determination of 33.5 the payment rate for the home under this chapter. The increase 33.6 shall not be subject to any annual percentage increase. 33.7 Sec. 6. Minnesota Statutes 2001 Supplement, section 33.8 256B.437, subdivision 2, is amended to read: 33.9 Subd. 2. [PLANNING AND DEVELOPMENT OF COMMUNITY-BASED 33.10 SERVICES.] (a) The commissioner of human services shall 33.11 establish a process to adjust the capacity and distribution of 33.12 long-term care services to equalize the supply and demand for 33.13 different types of services. This process must include 33.14 community planning, expansion or establishment of needed 33.15 services, and analysis of voluntary nursing facility closures. 33.16 (b) The purpose of this process is to support the planning 33.17 and development of community-based services. This process must 33.18 support early intervention, advocacy, and consumer protection 33.19 while providing resources and incentives for expanded county 33.20 planning and for nursing facilities to transition to meet 33.21 community needs. 33.22 (c) The process shall support and facilitate expansion of 33.23 community-based services under the county-administered 33.24 alternative care program under section 256B.0913 and waivers for 33.25 elderly under section 256B.0915, including, but not limited to, 33.26 the development of supportive services such as housing and 33.27 transportation. The process shall utilize community assessments 33.28 and planning developed for the community health services plan 33.29 and plan update and for the community social services act plan, 33.30 and other relevant information. 33.31 (d) The commissioners of health and human services, as 33.32 appropriate, shall provide, by July 15, 2001, available data 33.33 necessary for the county, including, but not limited to, data on 33.34 nursing facility bed distribution, housing with services 33.35 options, the closure of nursing facilities that occur outside of 33.36 the planned closure process, and approval of planned closures in 34.1 the county and contiguous counties. 34.2 (e) Each county shall submit to the commissioner of human 34.3 services, by October 15, 2001, a gaps analysis that identifies 34.4 local service needs, pending development of services, and any 34.5 other issues that would contribute to or impede further 34.6 development of community-based services. The gaps analysis must 34.7 also be sent to the local area agency on aging and, if 34.8 applicable, local SAIL projects, for review and comment. The 34.9 review and comment must assess needs across county boundaries. 34.10 The area agencies on aging and SAIL projects must provide the 34.11 commissioner and the counties with their review and analyses by 34.12 November 15, 2001. 34.13 (f) The addendum to the biennial plan shall be submitted 34.14 annuallybiennially, beginning December 31, 2001, and each34.15 December 31every other year thereafter in accordance with the 34.16 Community Social Services Act plan timeline, and shall include 34.17 recommendations for development of community-based 34.18 services. Area agencies on aging and SAIL projects must provide 34.19 the commissioner and the counties with their review and analyses 34.20 within 60 days following the Community Social Services Act plan 34.21 submission date. Both planning and implementation shall be 34.22 implemented within the amount of funding made available to the 34.23 county board for these purposes. 34.24 (g) The plan, within the funding allocated, shall: 34.25 (1) include the gaps analysis required by paragraph (e); 34.26 (2) involve providers, consumers, cities, townships, 34.27 businesses, and area agencies on aging in the planning process; 34.28 (3) address the availability of alternative care and 34.29 elderly waiver services for eligible recipients; 34.30 (4) address the development of other supportive services, 34.31 such as transit, housing, and workforce and economic 34.32 development; and 34.33 (5) estimate the cost and timelines for development. 34.34 (h) The biennial plan addendum shall be coordinated with 34.35 the county mental health plan for inclusion in the community 34.36 health services plan and included as an addendum to the 35.1 community social services plan. 35.2 (i) The county board having financial responsibility for 35.3 persons present in another county shall cooperate with that 35.4 county for planning and development of services. 35.5 (j) The county board shall cooperate in planning and 35.6 development of community-based services with other counties, as 35.7 necessary, and coordinate planning for long-term care services 35.8 that involve more than one county, within the funding allocated 35.9 for these purposes. 35.10 (k) The commissioners of health and human services, in 35.11 cooperation with county boards, shall report biennially to the 35.12 legislature by February 1 of each year, beginning February 1, 35.13 2002, regarding the development of community-based services, 35.14 transition or closure of nursing facilities, and specific gaps 35.15 in services in identified geographic areas that may require 35.16 additional resources or flexibility, as documented by the 35.17 process in this subdivision and reported to the commissioners by35.18 December 31 of each year. 35.19 Sec. 7. Minnesota Statutes 2001 Supplement, section 35.20 256B.439, subdivision 1, is amended to read: 35.21 Subdivision 1. [DEVELOPMENT AND IMPLEMENTATION OF QUALITY 35.22 PROFILES.] (a) The commissioner of human services, in 35.23 cooperation with the commissioner of health, shall develop and 35.24 implement a quality profile system for nursing facilities and, 35.25 beginning not later than July 1, 20032004, other providers of 35.26 long-term care services, except when the quality profile system 35.27 would duplicate requirements under section 256B.5011, 256B.5012, 35.28 or 256B.5013. The system must be developed and implemented to 35.29 the extent possible without the collection of significant 35.30 amounts of new data. To the extent possible, the system must 35.31 incorporate or be coordinated with information on quality 35.32 maintained by area agencies on aging, long-term care trade 35.33 associations, and other entities. The system must be designed 35.34 to provide information on quality to: 35.35 (1) consumers and their families to facilitate informed 35.36 choices of service providers; 36.1 (2) providers to enable them to measure the results of 36.2 their quality improvement efforts and compare quality 36.3 achievements with other service providers; and 36.4 (3) public and private purchasers of long-term care 36.5 services to enable them to purchase high-quality care. 36.6 (b) The system must be developed in consultation with the 36.7 long-term care task force, area agencies on aging, and 36.8 representatives of consumers, providers, and labor unions. 36.9 Within the limits of available appropriations, the commissioners 36.10 may employ consultants to assist with this project. 36.11 Sec. 8. Minnesota Statutes 2001 Supplement, section 36.12 256B.439, subdivision 4, is amended to read: 36.13 Subd. 4. [DISSEMINATION OF QUALITY PROFILES.] By July 36.14 1, 20022003, the commissioners shall implement a system to 36.15 disseminate the quality profiles developed from consumer surveys 36.16 using the quality measurement tool. Profiles may be 36.17 disseminated to the Senior LinkAge line and to consumers, 36.18 providers, and purchasers of long-term care services through all 36.19 feasible printed and electronic outlets. The commissioners may 36.20 conduct a public awareness campaign to inform potential users 36.21 regarding profile contents and potential uses. 36.22 [EFFECTIVE DATE.]This section is effective the day 36.23 following final enactment. 36.24 Sec. 9. Laws 2001, First Special Session chapter 9, 36.25 article 5, section 35, is amended to read: 36.26 Sec. 35. [DEVELOPMENT OF NEW NURSING FACILITY 36.27 REIMBURSEMENT SYSTEM.] 36.28 (a) The commissioner of human services shall develop and 36.29 report to the legislature by January 15, 20032004, a system to 36.30 replace the current nursing facility reimbursement system 36.31 established under Minnesota Statutes, sections 256B.431, 36.32 256B.434, and 256B.435. 36.33 (b) The system must be developed in consultation with the 36.34 long-term care task force and with representatives of consumers, 36.35 providers, and labor unions. Within the limits of available 36.36 appropriations, the commissioner may employ consultants to 37.1 assist with this project. 37.2 (c) The new reimbursement system must: 37.3 (1) provide incentives to enhance quality of life and 37.4 quality of care; 37.5 (2) recognize cost differences in the care of different 37.6 types of populations, including subacute care and dementia care; 37.7 (3) establish rates that are sufficient without being 37.8 excessive; 37.9 (4) be affordable for the state and for private-pay 37.10 residents; 37.11 (5) be sensitive to changing conditions in the long-term 37.12 care environment; 37.13 (6) avoid creating access problems related to insufficient 37.14 funding; 37.15 (7) allow providers maximum flexibility in their business 37.16 operations; 37.17 (8) recognize the need for capital investment to improve 37.18 physical plants; and 37.19 (9) provide incentives for the development and use of 37.20 private rooms. 37.21 (d) Notwithstanding Minnesota Statutes, section 256B.435, 37.22 the commissioner must not implement a performance-based 37.23 contracting system for nursing facilities prior to July 1, 200337.24 2004. The commissioner shall continue to reimburse nursing 37.25 facilities under Minnesota Statutes, section 256B.431 or 37.26 256B.434, until otherwise directed by law. 37.27 (e) The commissioner of human services, in consultation 37.28 with the commissioner of health, shall conduct or contract for a 37.29 time study to determine staff time being spent on various case 37.30 mix categories; recommend adjustments to the case mix weights 37.31 based on the time study data; and determine whether current 37.32 staffing standards are adequate for providing quality care based 37.33 on professional best practice and consumer experience. If the 37.34 commissioner determines the current standards are inadequate, 37.35 the commissioner shall determine an appropriate staffing 37.36 standard for the various case mix categories and the financial 38.1 implications of phasing into this standard over the next four 38.2 years. 38.3 Sec. 10. [REPEALER.] 38.4 Minnesota Statutes 2000, section 256B.0916, subdivision 1, 38.5 is repealed. 38.6 ARTICLE 7 38.7 HEALTH CARE 38.8 Section 1. Minnesota Statutes 2001 Supplement, section 38.9 62J.692, subdivision 7, is amended to read: 38.10 Subd. 7. [TRANSFERS FROM THE COMMISSIONER OF HUMAN 38.11 SERVICES.] (a) The amount transferred according to section 38.12 256B.69, subdivision 5c, paragraph (a), clause (1), shall be 38.13 distributed by the commissioner to clinical medical education 38.14 programs that meet the qualifications of subdivision 3 based on 38.15 a distribution formula that reflects a summation of two factors: 38.16 (1) an education factor, which is determined by the total 38.17 number of eligible trainee FTEs and the total statewide average 38.18 costs per trainee, by type of trainee, in each clinical medical 38.19 education program; and 38.20 (2) a public program volume factor, which is determined by 38.21 the total volume of public program revenue received by each 38.22 training site as a percentage of all public program revenue 38.23 received by all training sites in the fund pool created under 38.24 this subdivision. 38.25 In this formula, the education factor shall be weighted at 38.26 50 percent and the public program volume factor shall be 38.27 weighted at 50 percent. 38.28 Public program revenue for the distribution formula shall 38.29 include revenue from medical assistance, prepaid medical 38.30 assistance, general assistance medical care, and prepaid general 38.31 assistance medical care. Training sites that receive no public 38.32 program revenue shall be ineligible for funds available under 38.33 this paragraph. 38.34 (b) Fifty percent of the amount transferred according to 38.35 section 256B.69, subdivision 5c, paragraph (a), clause (2), 38.36 shall be distributed by the commissioner to the University of 39.1 Minnesota board of regents for the purposes described in 39.2 sections 137.38 to 137.40. Of the remaining amount transferred 39.3 according to section 256B.69, subdivision 5c, paragraph (a), 39.4 clause (2), 24 percent of the amount shall be distributed by the 39.5 commissioner to the Hennepin County Medical Center for clinical 39.6 medical education. The remaining 26 percent of the amount 39.7 transferred shall be distributed by the commissioner in 39.8 accordance with subdivision 7a. If the federal approval is not 39.9 obtained for the matching funds under section 256B.69, 39.10 subdivision 5c, paragraph (a), clause (2), 100 percent of the 39.11 amount transferred under this paragraph shall be distributed by 39.12 the commissioner to the University of Minnesota board of regents 39.13 for the purposes described in sections 137.38 to 137.40. 39.14 (c) The amount transferred according to section 256B.69, 39.15 subdivision 5c, paragraph (a), clause (3), shall be distributed 39.16 by the commissioner upon receipt to the University of Minnesota 39.17 board of regents for the purposes of clinical graduate medical 39.18 education. 39.19 Sec. 2. Minnesota Statutes 2001 Supplement, section 39.20 256.01, subdivision 2, is amended to read: 39.21 Subd. 2. [SPECIFIC POWERS.] Subject to the provisions of 39.22 section 241.021, subdivision 2, the commissioner of human 39.23 services shall: 39.24 (1) Administer and supervise all forms of public assistance 39.25 provided for by state law and other welfare activities or 39.26 services as are vested in the commissioner. Administration and 39.27 supervision of human services activities or services includes, 39.28 but is not limited to, assuring timely and accurate distribution 39.29 of benefits, completeness of service, and quality program 39.30 management. In addition to administering and supervising human 39.31 services activities vested by law in the department, the 39.32 commissioner shall have the authority to: 39.33 (a) require county agency participation in training and 39.34 technical assistance programs to promote compliance with 39.35 statutes, rules, federal laws, regulations, and policies 39.36 governing human services; 40.1 (b) monitor, on an ongoing basis, the performance of county 40.2 agencies in the operation and administration of human services, 40.3 enforce compliance with statutes, rules, federal laws, 40.4 regulations, and policies governing welfare services and promote 40.5 excellence of administration and program operation; 40.6 (c) develop a quality control program or other monitoring 40.7 program to review county performance and accuracy of benefit 40.8 determinations; 40.9 (d) require county agencies to make an adjustment to the 40.10 public assistance benefits issued to any individual consistent 40.11 with federal law and regulation and state law and rule and to 40.12 issue or recover benefits as appropriate; 40.13 (e) delay or deny payment of all or part of the state and 40.14 federal share of benefits and administrative reimbursement 40.15 according to the procedures set forth in section 256.017; 40.16 (f) make contracts with and grants to public and private 40.17 agencies and organizations, both profit and nonprofit, and 40.18 individuals, using appropriated funds; and 40.19 (g) enter into contractual agreements with federally 40.20 recognized Indian tribes with a reservation in Minnesota to the 40.21 extent necessary for the tribe to operate a federally approved 40.22 family assistance program or any other program under the 40.23 supervision of the commissioner. The commissioner shall consult 40.24 with the affected county or counties in the contractual 40.25 agreement negotiations, if the county or counties wish to be 40.26 included, in order to avoid the duplication of county and tribal 40.27 assistance program services. The commissioner may establish 40.28 necessary accounts for the purposes of receiving and disbursing 40.29 funds as necessary for the operation of the programs. 40.30 (2) Inform county agencies, on a timely basis, of changes 40.31 in statute, rule, federal law, regulation, and policy necessary 40.32 to county agency administration of the programs. 40.33 (3) Administer and supervise all child welfare activities; 40.34 promote the enforcement of laws protecting handicapped, 40.35 dependent, neglected and delinquent children, and children born 40.36 to mothers who were not married to the children's fathers at the 41.1 times of the conception nor at the births of the children; 41.2 license and supervise child-caring and child-placing agencies 41.3 and institutions; supervise the care of children in boarding and 41.4 foster homes or in private institutions; and generally perform 41.5 all functions relating to the field of child welfare now vested 41.6 in the state board of control. 41.7 (4) Administer and supervise all noninstitutional service 41.8 to handicapped persons, including those who are visually 41.9 impaired, hearing impaired, or physically impaired or otherwise 41.10 handicapped. The commissioner may provide and contract for the 41.11 care and treatment of qualified indigent children in facilities 41.12 other than those located and available at state hospitals when 41.13 it is not feasible to provide the service in state hospitals. 41.14 (5) Assist and actively cooperate with other departments, 41.15 agencies and institutions, local, state, and federal, by 41.16 performing services in conformity with the purposes of Laws 41.17 1939, chapter 431. 41.18 (6) Act as the agent of and cooperate with the federal 41.19 government in matters of mutual concern relative to and in 41.20 conformity with the provisions of Laws 1939, chapter 431, 41.21 including the administration of any federal funds granted to the 41.22 state to aid in the performance of any functions of the 41.23 commissioner as specified in Laws 1939, chapter 431, and 41.24 including the promulgation of rules making uniformly available 41.25 medical care benefits to all recipients of public assistance, at 41.26 such times as the federal government increases its participation 41.27 in assistance expenditures for medical care to recipients of 41.28 public assistance, the cost thereof to be borne in the same 41.29 proportion as are grants of aid to said recipients. 41.30 (7) Establish and maintain any administrative units 41.31 reasonably necessary for the performance of administrative 41.32 functions common to all divisions of the department. 41.33 (8) Act as designated guardian of both the estate and the 41.34 person of all the wards of the state of Minnesota, whether by 41.35 operation of law or by an order of court, without any further 41.36 act or proceeding whatever, except as to persons committed as 42.1 mentally retarded. For children under the guardianship of the 42.2 commissioner whose interests would be best served by adoptive 42.3 placement, the commissioner may contract with a licensed 42.4 child-placing agency or a Minnesota tribal social services 42.5 agency to provide adoption services. A contract with a licensed 42.6 child-placing agency must be designed to supplement existing 42.7 county efforts and may not replace existing county programs, 42.8 unless the replacement is agreed to by the county board and the 42.9 appropriate exclusive bargaining representative or the 42.10 commissioner has evidence that child placements of the county 42.11 continue to be substantially below that of other counties. 42.12 Funds encumbered and obligated under an agreement for a specific 42.13 child shall remain available until the terms of the agreement 42.14 are fulfilled or the agreement is terminated. 42.15 (9) Act as coordinating referral and informational center 42.16 on requests for service for newly arrived immigrants coming to 42.17 Minnesota. 42.18 (10) The specific enumeration of powers and duties as 42.19 hereinabove set forth shall in no way be construed to be a 42.20 limitation upon the general transfer of powers herein contained. 42.21 (11) Establish county, regional, or statewide schedules of 42.22 maximum fees and charges which may be paid by county agencies 42.23 for medical, dental, surgical, hospital, nursing and nursing 42.24 home care and medicine and medical supplies under all programs 42.25 of medical care provided by the state and for congregate living 42.26 care under the income maintenance programs. 42.27 (12) Have the authority to conduct and administer 42.28 experimental projects to test methods and procedures of 42.29 administering assistance and services to recipients or potential 42.30 recipients of public welfare. To carry out such experimental 42.31 projects, it is further provided that the commissioner of human 42.32 services is authorized to waive the enforcement of existing 42.33 specific statutory program requirements, rules, and standards in 42.34 one or more counties. The order establishing the waiver shall 42.35 provide alternative methods and procedures of administration, 42.36 shall not be in conflict with the basic purposes, coverage, or 43.1 benefits provided by law, and in no event shall the duration of 43.2 a project exceed four years. It is further provided that no 43.3 order establishing an experimental project as authorized by the 43.4 provisions of this section shall become effective until the 43.5 following conditions have been met: 43.6 (a) The secretary of health and human services of the 43.7 United States has agreed, for the same project, to waive state 43.8 plan requirements relative to statewide uniformity. 43.9 (b) A comprehensive plan, including estimated project 43.10 costs, shall be approved by the legislative advisory commission 43.11 and filed with the commissioner of administration. 43.12 (13) According to federal requirements, establish 43.13 procedures to be followed by local welfare boards in creating 43.14 citizen advisory committees, including procedures for selection 43.15 of committee members. 43.16 (14) Allocate federal fiscal disallowances or sanctions 43.17 which are based on quality control error rates for the aid to 43.18 families with dependent children program formerly codified in 43.19 sections 256.72 to 256.87, medical assistance, or food stamp 43.20 program in the following manner: 43.21 (a) One-half of the total amount of the disallowance shall 43.22 be borne by the county boards responsible for administering the 43.23 programs. For the medical assistance and the AFDC program 43.24 formerly codified in sections 256.72 to 256.87, disallowances 43.25 shall be shared by each county board in the same proportion as 43.26 that county's expenditures for the sanctioned program are to the 43.27 total of all counties' expenditures for the AFDC program 43.28 formerly codified in sections 256.72 to 256.87, and medical 43.29 assistance programs. For the food stamp program, sanctions 43.30 shall be shared by each county board, with 50 percent of the 43.31 sanction being distributed to each county in the same proportion 43.32 as that county's administrative costs for food stamps are to the 43.33 total of all food stamp administrative costs for all counties, 43.34 and 50 percent of the sanctions being distributed to each county 43.35 in the same proportion as that county's value of food stamp 43.36 benefits issued are to the total of all benefits issued for all 44.1 counties. Each county shall pay its share of the disallowance 44.2 to the state of Minnesota. When a county fails to pay the 44.3 amount due hereunder, the commissioner may deduct the amount 44.4 from reimbursement otherwise due the county, or the attorney 44.5 general, upon the request of the commissioner, may institute 44.6 civil action to recover the amount due. 44.7 (b) Notwithstanding the provisions of paragraph (a), if the 44.8 disallowance results from knowing noncompliance by one or more 44.9 counties with a specific program instruction, and that knowing 44.10 noncompliance is a matter of official county board record, the 44.11 commissioner may require payment or recover from the county or 44.12 counties, in the manner prescribed in paragraph (a), an amount 44.13 equal to the portion of the total disallowance which resulted 44.14 from the noncompliance, and may distribute the balance of the 44.15 disallowance according to paragraph (a). 44.16 (15) Develop and implement special projects that maximize 44.17 reimbursements and result in the recovery of money to the 44.18 state. For the purpose of recovering state money, the 44.19 commissioner may enter into contracts with third parties. Any 44.20 recoveries that result from projects or contracts entered into 44.21 under this paragraph shall be deposited in the state treasury 44.22 and credited to a special account until the balance in the 44.23 account reaches $1,000,000. When the balance in the account 44.24 exceeds $1,000,000, the excess shall be transferred and credited 44.25 to the general fund. All money in the account is appropriated 44.26 to the commissioner for the purposes of this paragraph. 44.27 (16) Have the authority to make direct payments to 44.28 facilities providing shelter to women and their children 44.29 according to section 256D.05, subdivision 3. Upon the written 44.30 request of a shelter facility that has been denied payments 44.31 under section 256D.05, subdivision 3, the commissioner shall 44.32 review all relevant evidence and make a determination within 30 44.33 days of the request for review regarding issuance of direct 44.34 payments to the shelter facility. Failure to act within 30 days 44.35 shall be considered a determination not to issue direct payments. 44.36 (17) Have the authority to establish and enforce the 45.1 following county reporting requirements: 45.2 (a) The commissioner shall establish fiscal and statistical 45.3 reporting requirements necessary to account for the expenditure 45.4 of funds allocated to counties for human services programs. 45.5 When establishing financial and statistical reporting 45.6 requirements, the commissioner shall evaluate all reports, in 45.7 consultation with the counties, to determine if the reports can 45.8 be simplified or the number of reports can be reduced. 45.9 (b) The county board shall submit monthly or quarterly 45.10 reports to the department as required by the commissioner. 45.11 Monthly reports are due no later than 15 working days after the 45.12 end of the month. Quarterly reports are due no later than 30 45.13 calendar days after the end of the quarter, unless the 45.14 commissioner determines that the deadline must be shortened to 45.15 20 calendar days to avoid jeopardizing compliance with federal 45.16 deadlines or risking a loss of federal funding. Only reports 45.17 that are complete, legible, and in the required format shall be 45.18 accepted by the commissioner. 45.19 (c) If the required reports are not received by the 45.20 deadlines established in clause (b), the commissioner may delay 45.21 payments and withhold funds from the county board until the next 45.22 reporting period. When the report is needed to account for the 45.23 use of federal funds and the late report results in a reduction 45.24 in federal funding, the commissioner shall withhold from the 45.25 county boards with late reports an amount equal to the reduction 45.26 in federal funding until full federal funding is received. 45.27 (d) A county board that submits reports that are late, 45.28 illegible, incomplete, or not in the required format for two out 45.29 of three consecutive reporting periods is considered 45.30 noncompliant. When a county board is found to be noncompliant, 45.31 the commissioner shall notify the county board of the reason the 45.32 county board is considered noncompliant and request that the 45.33 county board develop a corrective action plan stating how the 45.34 county board plans to correct the problem. The corrective 45.35 action plan must be submitted to the commissioner within 45 days 45.36 after the date the county board received notice of noncompliance. 46.1 (e) The final deadline for fiscal reports or amendments to 46.2 fiscal reports is one year after the date the report was 46.3 originally due. If the commissioner does not receive a report 46.4 by the final deadline, the county board forfeits the funding 46.5 associated with the report for that reporting period and the 46.6 county board must repay any funds associated with the report 46.7 received for that reporting period. 46.8 (f) The commissioner may not delay payments, withhold 46.9 funds, or require repayment under paragraph (c) or (e) if the 46.10 county demonstrates that the commissioner failed to provide 46.11 appropriate forms, guidelines, and technical assistance to 46.12 enable the county to comply with the requirements. If the 46.13 county board disagrees with an action taken by the commissioner 46.14 under paragraph (c) or (e), the county board may appeal the 46.15 action according to sections 14.57 to 14.69. 46.16 (g) Counties subject to withholding of funds under 46.17 paragraph (c) or forfeiture or repayment of funds under 46.18 paragraph (e) shall not reduce or withhold benefits or services 46.19 to clients to cover costs incurred due to actions taken by the 46.20 commissioner under paragraph (c) or (e). 46.21 (18) Allocate federal fiscal disallowances or sanctions for 46.22 audit exceptions when federal fiscal disallowances or sanctions 46.23 are based on a statewide random sample for the foster care 46.24 program under title IV-E of the Social Security Act, United 46.25 States Code, title 42, in direct proportion to each county's 46.26 title IV-E foster care maintenance claim for that period. 46.27 (19) Be responsible for ensuring the detection, prevention, 46.28 investigation, and resolution of fraudulent activities or 46.29 behavior by applicants, recipients, and other participants in 46.30 the human services programs administered by the department. 46.31 (20) Require county agencies to identify overpayments, 46.32 establish claims, and utilize all available and cost-beneficial 46.33 methodologies to collect and recover these overpayments in the 46.34 human services programs administered by the department. 46.35 (21) Have the authority to administer a drug rebate program 46.36 for drugs purchased pursuant to the prescription drug program 47.1 established under section 256.955 after the beneficiary's 47.2 satisfaction of any deductible established in the program. The 47.3 commissioner shall require a rebate agreement from all 47.4 manufacturers of covered drugs as defined in section 256B.0625, 47.5 subdivision 13. Rebate agreements for prescription drugs 47.6 delivered on or after July 1, 2002, must include rebates for 47.7 individuals covered under the prescription drug program who are 47.8 under 65 years of age. For each drug, the amount of the rebate 47.9 shall be equal to the basic rebate as defined for purposes of 47.10 the federal rebate program in United States Code, title 42, 47.11 section 1396r-8(c)(1). This basic rebate shall be applied to 47.12 single-source and multiple-source drugs. The manufacturers must 47.13 provide full payment within 30 days of receipt of the state 47.14 invoice for the rebate within the terms and conditions used for 47.15 the federal rebate program established pursuant to section 1927 47.16 of title XIX of the Social Security Act. The manufacturers must 47.17 provide the commissioner with any information necessary to 47.18 verify the rebate determined per drug. The rebate program shall 47.19 utilize the terms and conditions used for the federal rebate 47.20 program established pursuant to section 1927 of title XIX of the 47.21 Social Security Act. 47.22 (22) Have the authority to administer the federal drug 47.23 rebate program for drugs purchased under the medical assistance 47.24 program as allowed by section 1927 of title XIX of the Social 47.25 Security Act and according to the terms and conditions of 47.26 section 1927. Rebates shall be collected for all drugs that 47.27 have been dispensed or administered in an outpatient setting and 47.28 that are from manufacturers who have signed a rebate agreement 47.29 with the United States Department of Health and Human Services. 47.30 (23) Have the authority to administer a supplemental drug 47.31 rebate program for drugs purchased under the medical assistance 47.32 program and under the prescription drug program established in 47.33 section 256.955. The commissioner may enter into supplemental 47.34 rebate contracts with pharmaceutical manufacturers and may 47.35 require prior authorization for drugs that are from 47.36 manufacturers that have not signed a supplemental rebate 48.1 contract. Prior authorization of drugs shall be subject to the 48.2 provisions of section 256B.0625, subdivision 13, paragraph (b). 48.3 (24) Operate the department's communication systems account 48.4 established in Laws 1993, First Special Session chapter 1, 48.5 article 1, section 2, subdivision 2, to manage shared 48.6 communication costs necessary for the operation of the programs 48.7 the commissioner supervises. A communications account may also 48.8 be established for each regional treatment center which operates 48.9 communications systems. Each account must be used to manage 48.10 shared communication costs necessary for the operations of the 48.11 programs the commissioner supervises. The commissioner may 48.12 distribute the costs of operating and maintaining communication 48.13 systems to participants in a manner that reflects actual usage. 48.14 Costs may include acquisition, licensing, insurance, 48.15 maintenance, repair, staff time and other costs as determined by 48.16 the commissioner. Nonprofit organizations and state, county, 48.17 and local government agencies involved in the operation of 48.18 programs the commissioner supervises may participate in the use 48.19 of the department's communications technology and share in the 48.20 cost of operation. The commissioner may accept on behalf of the 48.21 state any gift, bequest, devise or personal property of any 48.22 kind, or money tendered to the state for any lawful purpose 48.23 pertaining to the communication activities of the department. 48.24 Any money received for this purpose must be deposited in the 48.25 department's communication systems accounts. Money collected by 48.26 the commissioner for the use of communication systems must be 48.27 deposited in the state communication systems account and is 48.28 appropriated to the commissioner for purposes of this section. 48.29 (24)(25) Receive any federal matching money that is made 48.30 available through the medical assistance program for the 48.31 consumer satisfaction survey. Any federal money received for 48.32 the survey is appropriated to the commissioner for this 48.33 purpose. The commissioner may expend the federal money received 48.34 for the consumer satisfaction survey in either year of the 48.35 biennium. 48.36 (25)(26) Incorporate cost reimbursement claims from First 49.1 Call Minnesota and Greater Twin Cities United Way into the 49.2 federal cost reimbursement claiming processes of the department 49.3 according to federal law, rule, and regulations. Any 49.4 reimbursement received is appropriated to the commissioner and 49.5 shall be disbursed to First Call Minnesota and Greater Twin 49.6 Cities United Way according to normal department payment 49.7 schedules. 49.8 (26)(27) Develop recommended standards for foster care 49.9 homes that address the components of specialized therapeutic 49.10 services to be provided by foster care homes with those services. 49.11 Sec. 3. Minnesota Statutes 2001 Supplement, section 49.12 256.969, subdivision 3a, is amended to read: 49.13 Subd. 3a. [PAYMENTS.] (a) Acute care hospital billings 49.14 under the medical assistance program must not be submitted until 49.15 the recipient is discharged. However, the commissioner shall 49.16 establish monthly interim payments for inpatient hospitals that 49.17 have individual patient lengths of stay over 30 days regardless 49.18 of diagnostic category. Except as provided in section 256.9693, 49.19 medical assistance reimbursement for treatment of mental illness 49.20 shall be reimbursed based on diagnostic classifications. 49.21 Individual hospital payments established under this section and 49.22 sections 256.9685, 256.9686, and 256.9695, in addition to third 49.23 party and recipient liability, for discharges occurring during 49.24 the rate year shall not exceed, in aggregate, the charges for 49.25 the medical assistance covered inpatient services paid for the 49.26 same period of time to the hospital. This payment limitation 49.27 shall be calculated separately for medical assistance and 49.28 general assistance medical care services. The limitation on 49.29 general assistance medical care shall be effective for 49.30 admissions occurring on or after July 1, 1991. Services that 49.31 have rates established under subdivision 11 or 12, must be 49.32 limited separately from other services. After consulting with 49.33 the affected hospitals, the commissioner may consider related 49.34 hospitals one entity and may merge the payment rates while 49.35 maintaining separate provider numbers. The operating and 49.36 property base rates per admission or per day shall be derived 50.1 from the best Medicare and claims data available when rates are 50.2 established. The commissioner shall determine the best Medicare 50.3 and claims data, taking into consideration variables of recency 50.4 of the data, audit disposition, settlement status, and the 50.5 ability to set rates in a timely manner. The commissioner shall 50.6 notify hospitals of payment rates by December 1 of the year 50.7 preceding the rate year. The rate setting data must reflect the 50.8 admissions data used to establish relative values. Base year 50.9 changes from 1981 to the base year established for the rate year 50.10 beginning January 1, 1991, and for subsequent rate years, shall 50.11 not be limited to the limits ending June 30, 1987, on the 50.12 maximum rate of increase under subdivision 1. The commissioner 50.13 may adjust base year cost, relative value, and case mix index 50.14 data to exclude the costs of services that have been 50.15 discontinued by the October 1 of the year preceding the rate 50.16 year or that are paid separately from inpatient services. 50.17 Inpatient stays that encompass portions of two or more rate 50.18 years shall have payments established based on payment rates in 50.19 effect at the time of admission unless the date of admission 50.20 preceded the rate year in effect by six months or more. In this 50.21 case, operating payment rates for services rendered during the 50.22 rate year in effect and established based on the date of 50.23 admission shall be adjusted to the rate year in effect by the 50.24 hospital cost index. 50.25 (b) For fee-for-service admissions occurring on or after 50.26 July 1, 2003, the total payment, before third party liability 50.27 and spenddown, made to hospitals for inpatient services is 50.28 reduced by .25 percent from the current statutory rates. 50.29 Sec. 4. Minnesota Statutes 2001 Supplement, section 50.30 256B.056, subdivision 3, is amended to read: 50.31 Subd. 3. [ASSET LIMITATIONS FOR ELDERLY AND DISABLED 50.32 INDIVIDUALS.] To be eligible for medical assistance, a person 50.33 must not individually own more than $3,000 in assets, or if a 50.34 member of a household with two family members, husband and wife, 50.35 or parent and child, the household must not own more than $6,000 50.36 in assets, plus $200 for each additional legal dependent. In 51.1 addition to these maximum amounts, an eligible individual or 51.2 family may accrue interest on these amounts, but they must be 51.3 reduced to the maximum at the time of an eligibility 51.4 redetermination. The accumulation of the clothing and personal 51.5 needs allowance according to section 256B.35 must also be 51.6 reduced to the maximum at the time of the eligibility 51.7 redetermination. The value of assets that are not considered in 51.8 determining eligibility for medical assistance is the value of 51.9 those assets excluded under the supplemental security income 51.10 program for aged, blind, and disabled persons, with the 51.11 following exceptions: 51.12 (a) Household goods and personal effects are not considered. 51.13 (b) Capital and operating assets of a trade or business 51.14 that the local agency determines are necessary to the person's 51.15 ability to earn an income are not considered. 51.16 (c) Motor vehicles are excluded to the same extent excluded 51.17 by the supplemental security income program. 51.18 (d) Assets designated as burial expenses are excluded to 51.19 the same extent excluded by the supplemental security income 51.20 program. Burial expenses funded by annuity contracts or life 51.21 insurance policies must irrevocably designate the individual's 51.22 estate as contingent beneficiary to the extent proceeds are not 51.23 used for payment of selected burial expenses. 51.24 (e) Effective upon federal approval, for a person who no 51.25 longer qualifies as an employed person with a disability due to 51.26 loss of earnings, assets allowed while eligible for medical 51.27 assistance under section 256B.057, subdivision 9, are not 51.28 considered for 12 months, beginning with the first month of 51.29 ineligibility as an employed person with a disability, to the 51.30 extent that the person's total assets remain within the allowed 51.31 limits of section 256B.057, subdivision 9, paragraph (b). 51.32 Sec. 5. Minnesota Statutes 2001 Supplement, section 51.33 256B.057, subdivision 9, is amended to read: 51.34 Subd. 9. [EMPLOYED PERSONS WITH DISABILITIES.] (a) Medical 51.35 assistance may be paid for a person who is employed and who: 51.36 (1) meets the definition of disabled under the supplemental 52.1 security income program; 52.2 (2) is at least 16 but less than 65 years of age; 52.3 (3) meets the asset limits in paragraph (b); and 52.4 (4) pays a premium, if required, under paragraph (c). 52.5 The person must verify earnings from employment by documenting 52.6 that social security and Medicare taxes are withheld, and, if 52.7 applicable, state and federal income taxes are also withheld. 52.8 If the person is self-employed, the person must document payment 52.9 of self-employment tax and, if applicable, state and federal 52.10 income taxes. 52.11 Any spousal income or assets shall be disregarded for purposes 52.12 of eligibility and premium determinations. 52.13 After the month of enrollment, a person enrolled in medical 52.14 assistance under this subdivision who is temporarily unable to 52.15 work and without receipt of earned income due to a medical 52.16 condition, as verified by a physician, may retain eligibility 52.17 for up to four calendar months. 52.18 (b) For purposes of determining eligibility under this 52.19 subdivision, a person's assets must not exceed $20,000, 52.20 excluding: 52.21 (1) all assets excluded under section 256B.056; 52.22 (2) retirement accounts, including individual accounts, 52.23 401(k) plans, 403(b) plans, Keogh plans, and pension plans; and 52.24 (3) medical expense accounts set up through the person's 52.25 employer. 52.26 (c) A person whose earned and unearned income is equal to 52.27 or greater than 100 percent of federal poverty guidelines for 52.28 the applicable family size must pay a premium to be eligible for 52.29 medical assistance under this subdivision. The premium shall be 52.30 based on the person's gross earned and unearned income and the 52.31 applicable family size using a sliding fee scale established by 52.32 the commissioner, which begins at one percent of income at 100 52.33 percent of the federal poverty guidelines and increases to 7.5 52.34 percent of income for those with incomes at or above 300 percent 52.35 of the federal poverty guidelines. Annual adjustments in the 52.36 premium schedule based upon changes in the federal poverty 53.1 guidelines shall be effective for premiums due in July of each 53.2 year. 53.3 (d) A person's eligibility and premium shall be determined 53.4 by the local county agency. Premiums must be paid to the 53.5 commissioner. All premiums are dedicated to the commissioner. 53.6 (e) Any required premium shall be determined at application 53.7 and redetermined annually at recertification or when a change in 53.8 income or family size occurs. 53.9 (f) Premium payment is due upon notification from the 53.10 commissioner of the premium amount required. Premiums may be 53.11 paid in installments at the discretion of the commissioner. 53.12 (g) Nonpayment of the premium shall result in denial or 53.13 termination of medical assistance unless the person demonstrates 53.14 good cause for nonpayment. Good cause exists if the 53.15 requirements specified in Minnesota Rules, part 9506.0040, 53.16 subpart 7, items B to D, are met. Nonpayment shall include 53.17 payment with a returned, refused, or dishonored instrument. The 53.18 commissioner may require a guaranteed form of payment as the 53.19 only means to replace a returned, refused, or dishonored 53.20 instrument. 53.21 Sec. 6. Minnesota Statutes 2000, section 256B.059, 53.22 subdivision 1, is amended to read: 53.23 Subdivision 1. [DEFINITIONS.] (a) For purposes of this 53.24 section and section 256B.0595, the terms defined in this 53.25 subdivision have the meanings given them. 53.26 (b) "Community spouse" means the spouse of an 53.27 institutionalized spouse. 53.28 (c) "Spousal share" means one-half of the total value of 53.29 all assets, to the extent that either the institutionalized 53.30 spouse or the community spouse had an ownership interest at the 53.31 time of institutionalization. 53.32 (d) "Assets otherwise available to the community spouse" 53.33 means assets individually or jointly owned by the community 53.34 spouse, other than assets excluded by subdivision 5, paragraph 53.35 (c). 53.36 (e) "Community spouse asset allowance" is the value of 54.1 assets that can be transferred under subdivision 3. 54.2 (f) "Institutionalized spouse" means a person who is: 54.3 (1) in a hospital, nursing facility, or intermediate care 54.4 facility for persons with mental retardation, or receiving home 54.5 and community-based services under section 256B.0915 or 256B.49, 54.6 and is expected to remain in the facility or institution or 54.7 receive the home and community-based services for at least 30 54.8 consecutive days; and 54.9 (2) married to a person who is not in a hospital, nursing 54.10 facility, or intermediate care facility for persons with mental 54.11 retardation, and is not receiving home and community-based 54.12 services under section 256B.0915 or 256B.49. 54.13 (g) "For the sole benefit of" means no other individual or 54.14 entity can benefit in any way from the assets or income at the 54.15 time of a transfer or at any time in the future. 54.16 Sec. 7. Minnesota Statutes 2000, section 256B.059, 54.17 subdivision 3, is amended to read: 54.18 Subd. 3. [COMMUNITY SPOUSE ASSET ALLOWANCE.] An 54.19 institutionalized spouse may transfer assets to the community 54.20 spouse solelyfor the sole benefit of the community spouse. 54.21 Except for increased amounts allowable under subdivision 4, the 54.22 maximum amount of assets allowed to be transferred is the amount 54.23 which, when added to the assets otherwise available to the 54.24 community spouse, is as follows: 54.25 (1) prior to July 1, 1994, the greater of: 54.26 (i) $14,148; 54.27 (ii) the lesser of the spousal share or $70,740; or 54.28 (iii) the amount required by court order to be paid to the 54.29 community spouse; and 54.30 (2) for persons whose date of initial determination of 54.31 eligibility for medical assistance following their first 54.32 continuous period of institutionalization occurs on or after 54.33 July 1, 1994, the greater of: 54.34 (i) $20,000; 54.35 (ii) the lesser of the spousal share or $70,740; or 54.36 (iii) the amount required by court order to be paid to the 55.1 community spouse. 55.2 If the assets available to the community spouse are already 55.3 at the limit permissible under this section, or the higher limit 55.4 attributable to increases under subdivision 4, no assets may be 55.5 transferred from the institutionalized spouse to the community 55.6 spouse. The transfer must be made as soon as practicable after 55.7 the date the institutionalized spouse is determined eligible for 55.8 medical assistance, or within the amount of time needed for any 55.9 court order required for the transfer. On January 1, 1994, and 55.10 every January 1 thereafter, the limits in this subdivision shall 55.11 be adjusted by the same percentage change in the consumer price 55.12 index for all urban consumers (all items; United States city 55.13 average) between the two previous Septembers. These adjustments 55.14 shall also be applied to the limits in subdivision 5. 55.15 Sec. 8. Minnesota Statutes 2000, section 256B.059, 55.16 subdivision 5, is amended to read: 55.17 Subd. 5. [ASSET AVAILABILITY.] (a) At the time of initial 55.18 determination of eligibility for medical assistance benefits 55.19 following the first continuous period of institutionalization on 55.20 or after October 1, 1989, assets considered available to the 55.21 institutionalized spouse shall be the total value of all assets 55.22 in which either spouse has an ownership interest, reduced by the 55.23 following amount for the community spouse: 55.24 (1) prior to July 1, 1994, the greater of: 55.25 (i) $14,148; 55.26 (ii) the lesser of the spousal share or $70,740; or 55.27 (iii) the amount required by court order to be paid to the 55.28 community spouse; 55.29 (2) for persons whose date of initial determination of 55.30 eligibility for medical assistance following their first 55.31 continuous period of institutionalization occurs on or after 55.32 July 1, 1994, the greater of: 55.33 (i) $20,000; 55.34 (ii) the lesser of the spousal share or $70,740; or 55.35 (iii) the amount required by court order to be paid to the 55.36 community spouse. 56.1 The value of assets transferred for the sole benefit of the 56.2 community spouse under section 256B.0595, subdivision 4, in 56.3 combination with other assets available to the community spouse 56.4 under this section, cannot exceed the limit for the community 56.5 spouse asset allowance determined under subdivision 3 or 4. 56.6 Assets that exceed this allowance shall be considered available 56.7 to the institutionalized spouse whether or not converted to 56.8 income. If the community spouse asset allowance has been 56.9 increased under subdivision 4, then the assets considered 56.10 available to the institutionalized spouse under this subdivision 56.11 shall be further reduced by the value of additional amounts 56.12 allowed under subdivision 4. 56.13 (b) An institutionalized spouse may be found eligible for 56.14 medical assistance even though assets in excess of the allowable 56.15 amount are found to be available under paragraph (a) if the 56.16 assets are owned jointly or individually by the community 56.17 spouse, and the institutionalized spouse cannot use those assets 56.18 to pay for the cost of care without the consent of the community 56.19 spouse, and if: (i) the institutionalized spouse assigns to the 56.20 commissioner the right to support from the community spouse 56.21 under section 256B.14, subdivision 3; (ii) the institutionalized 56.22 spouse lacks the ability to execute an assignment due to a 56.23 physical or mental impairment; or (iii) the denial of 56.24 eligibility would cause an imminent threat to the 56.25 institutionalized spouse's health and well-being. 56.26 (c) After the month in which the institutionalized spouse 56.27 is determined eligible for medical assistance, during the 56.28 continuous period of institutionalization, no assets of the 56.29 community spouse are considered available to the 56.30 institutionalized spouse, unless the institutionalized spouse 56.31 has been found eligible under paragraph (b). 56.32 (d) Assets determined to be available to the 56.33 institutionalized spouse under this section must be used for the 56.34 health care or personal needs of the institutionalized spouse. 56.35 (e) For purposes of this section, assets do not include 56.36 assets excluded under the supplemental security income program. 57.1 [EFFECTIVE DATE.]This section is effective July 1, 2002. 57.2 Sec. 9. Minnesota Statutes 2001 Supplement, section 57.3 256B.0595, subdivision 1, is amended to read: 57.4 Subdivision 1. [PROHIBITED TRANSFERS.] (a) For transfers 57.5 of assets made on or before August 10, 1993, if a person or the 57.6 person's spouse has given away, sold, or disposed of, for less 57.7 than fair market value, any asset or interest therein, except 57.8 assets other than the homestead that are excluded under the 57.9 supplemental security program, within 30 months before or any 57.10 time after the date of institutionalization if the person has 57.11 been determined eligible for medical assistance, or within 30 57.12 months before or any time after the date of the first approved 57.13 application for medical assistance if the person has not yet 57.14 been determined eligible for medical assistance, the person is 57.15 ineligible for long-term care services for the period of time 57.16 determined under subdivision 2. 57.17 (b) Effective for transfers made after August 10, 1993, a 57.18 person, a person's spouse, or any person, court, or 57.19 administrative body with legal authority to act in place of, on 57.20 behalf of, at the direction of, or upon the request of the 57.21 person or person's spouse, may not give away, sell, or dispose 57.22 of, for less than fair market value, any asset or interest 57.23 therein, except assets other than the homestead that are 57.24 excluded under the supplemental security income program, for the 57.25 purpose of establishing or maintaining medical assistance 57.26 eligibility. For purposes of determining eligibility for 57.27 long-term care services, any transfer of such assets within 36 57.28 months before or any time after an institutionalized person 57.29 applies for medical assistance, or 36 months before or any time 57.30 after a medical assistance recipient becomes institutionalized, 57.31 for less than fair market value may be considered. Any such 57.32 transfer is presumed to have been made for the purpose of 57.33 establishing or maintaining medical assistance eligibility and 57.34 the person is ineligible for long-term care services for the 57.35 period of time determined under subdivision 2, unless the person 57.36 furnishes convincing evidence to establish that the transaction 58.1 was exclusively for another purpose, or unless the transfer is 58.2 permitted under subdivision 3 or 4. Notwithstanding the 58.3 provisions of this paragraph, in the case of payments from a 58.4 trust or portions of a trust that are considered transfers of 58.5 assets under federal law, any transfers made within 60 months 58.6 before or any time after an institutionalized person applies for 58.7 medical assistance and within 60 months before or any time after 58.8 a medical assistance recipient becomes institutionalized, may be 58.9 considered. 58.10 (c) This section applies to transfers, for less than fair 58.11 market value, of income or assets, including assets that are 58.12 considered income in the month received, such as inheritances, 58.13 court settlements, and retroactive benefit payments or income to 58.14 which the person or the person's spouse is entitled but does not 58.15 receive due to action by the person, the person's spouse, or any 58.16 person, court, or administrative body with legal authority to 58.17 act in place of, on behalf of, at the direction of, or upon the 58.18 request of the person or the person's spouse. 58.19 (d) This section applies to payments for care or personal 58.20 services provided by a relative, unless the compensation was 58.21 stipulated in a notarized, written agreement which was in 58.22 existence when the service was performed, the care or services 58.23 directly benefited the person, and the payments made represented 58.24 reasonable compensation for the care or services provided. A 58.25 notarized written agreement is not required if payment for the 58.26 services was made within 60 days after the service was provided. 58.27 (e) This section applies to the portion of any asset or 58.28 interest that a person, a person's spouse, or any person, court, 58.29 or administrative body with legal authority to act in place of, 58.30 on behalf of, at the direction of, or upon the request of the 58.31 person or the person's spouse, transfers to any annuity that 58.32 exceeds the value of the benefit likely to be returned to the 58.33 person or spouse while alive, based on estimated life expectancy 58.34 using the life expectancy tables employed by the supplemental 58.35 security income program to determine the value of an agreement 58.36 for services for life. The commissioner may adopt rules 59.1 reducing life expectancies based on the need for long-term 59.2 care. This section applies to an annuity described in this 59.3 paragraph purchased on or after March 1, 2002, that: 59.4 (1) is not purchased from an insurance company or financial 59.5 institution that is subject to licensing or regulation by the 59.6 Minnesota department of commerce or a similar regulatory agency 59.7 of another state; 59.8 (2) does not pay out principal and interest in equal 59.9 monthly installments; or 59.10 (3) does not begin payment at the earliest possible date 59.11 after annuitization. 59.12 (f) For purposes of this section, long-term care services 59.13 include services in a nursing facility, services that are 59.14 eligible for payment according to section 256B.0625, subdivision 59.15 2, because they are provided in a swing bed, intermediate care 59.16 facility for persons with mental retardation, and home and 59.17 community-based services provided pursuant to sections 59.18 256B.0915, 256B.092, and 256B.49. For purposes of this 59.19 subdivision and subdivisions 2, 3, and 4, "institutionalized 59.20 person" includes a person who is an inpatient in a nursing 59.21 facility or in a swing bed, or intermediate care facility for 59.22 persons with mental retardation or who is receiving home and 59.23 community-based services under sections 256B.0915, 256B.092, and 59.24 256B.49. 59.25 Sec. 10. Minnesota Statutes 2001 Supplement, section 59.26 256B.0595, subdivision 2, is amended to read: 59.27 Subd. 2. [PERIOD OF INELIGIBILITY.] (a) For any 59.28 uncompensated transfer occurring on or before August 10, 1993, 59.29 the number of months of ineligibility for long-term care 59.30 services shall be the lesser of 30 months, or the uncompensated 59.31 transfer amount divided by the average medical assistance rate 59.32 for nursing facility services in the state in effect on the date 59.33 of application. The amount used to calculate the average 59.34 medical assistance payment rate shall be adjusted each July 1 to 59.35 reflect payment rates for the previous calendar year. The 59.36 period of ineligibility begins with the month in which the 60.1 assets were transferred. If the transfer was not reported to 60.2 the local agency at the time of application, and the applicant 60.3 received long-term care services during what would have been the 60.4 period of ineligibility if the transfer had been reported, a 60.5 cause of action exists against the transferee for the cost of 60.6 long-term care services provided during the period of 60.7 ineligibility, or for the uncompensated amount of the transfer, 60.8 whichever is less. The action may be brought by the state or 60.9 the local agency responsible for providing medical assistance 60.10 under chapter 256G. The uncompensated transfer amount is the 60.11 fair market value of the asset at the time it was given away, 60.12 sold, or disposed of, less the amount of compensation received. 60.13 (b) For uncompensated transfers made after August 10, 1993, 60.14 the number of months of ineligibility for long-term care 60.15 services shall be the total uncompensated value of the resources 60.16 transferred divided by the average medical assistance rate for 60.17 nursing facility services in the state in effect on the date of 60.18 application. The amount used to calculate the average medical 60.19 assistance payment rate shall be adjusted each July 1 to reflect 60.20 payment rates for the previous calendar year. The period of 60.21 ineligibility begins with the month in which the assets were 60.22 transferred except that if one or more uncompensated transfers 60.23 are made during a period of ineligibility, the total assets 60.24 transferred during the ineligibility period shall be combined 60.25 and a penalty period calculated to begin in the month the first 60.26 uncompensated transfer was made. If the transfer was not 60.27 reported to the local agency at the time of application, and the 60.28 applicant received medical assistance services during what would 60.29 have been the period of ineligibility if the transfer had been 60.30 reported, a cause of action exists against the transferee for 60.31 the cost of medical assistance services provided during the 60.32 period of ineligibility, or for the uncompensated amount of the 60.33 transfer, whichever is less. The action may be brought by the 60.34 state or the local agency responsible for providing medical 60.35 assistance under chapter 256G. The uncompensated transfer 60.36 amount is the fair market value of the asset at the time it was 61.1 given away, sold, or disposed of, less the amount of 61.2 compensation received. Effective for transfers made on or after 61.3 March 1, 1996, involving persons who apply for medical 61.4 assistance on or after April 13, 1996, no cause of action exists 61.5 for a transfer unless: 61.6 (1) the transferee knew or should have known that the 61.7 transfer was being made by a person who was a resident of a 61.8 long-term care facility or was receiving that level of care in 61.9 the community at the time of the transfer; 61.10 (2) the transferee knew or should have known that the 61.11 transfer was being made to assist the person to qualify for or 61.12 retain medical assistance eligibility; or 61.13 (3) the transferee actively solicited the transfer with 61.14 intent to assist the person to qualify for or retain eligibility 61.15 for medical assistance. 61.16 (c) If a calculation of a penalty period results in a 61.17 partial month, payments for long-term care services shall be 61.18 reduced in an amount equal to the fraction, except that in 61.19 calculating the value of uncompensated transfers, if the total 61.20 value of all uncompensated transfers made in a month not 61.21 included in an existing penalty period does not 61.22 exceed $500$200, then such transfers shall be disregarded for 61.23 each month prior to the month of application for or during 61.24 receipt of medical assistance. 61.25 Sec. 11. Minnesota Statutes 2000, section 256B.0595, 61.26 subdivision 4, is amended to read: 61.27 Subd. 4. [OTHER EXCEPTIONS TO TRANSFER PROHIBITION.] An 61.28 institutionalized person who has made, or whose spouse has made 61.29 a transfer prohibited by subdivision 1, is not ineligible for 61.30 long-term care services if one of the following conditions 61.31 applies: 61.32 (1) the assets were transferred to the individual's spouse 61.33 or to another for the sole benefit of the spouse; or 61.34 (2) the institutionalized spouse, prior to being 61.35 institutionalized, transferred assets to a spouse, provided that 61.36 the spouse to whom the assets were transferred does not then 62.1 transfer those assets to another person for less than fair 62.2 market value. (At the time when one spouse is 62.3 institutionalized, assets must be allocated between the spouses 62.4 as provided under section 256B.059); or 62.5 (3) the assets were transferred to the individual's child 62.6 who is blind or permanently and totally disabled as determined 62.7 in the supplemental security income program; or 62.8 (4) a satisfactory showing is made that the individual 62.9 intended to dispose of the assets either at fair market value or 62.10 for other valuable consideration; or 62.11 (5) the local agency determines that denial of eligibility 62.12 for long-term care services would work an undue hardship and 62.13 grants a waiver of a penalty resulting from a transfer for less 62.14 than fair market value based on an imminent threat to the 62.15 individual's health and well-being. Whenever an applicant or 62.16 recipient is denied eligibility because of a transfer for less 62.17 than fair market value, the local agency shall notify the 62.18 applicant or recipient that the applicant or recipient may 62.19 request a waiver of the penalty if the denial of eligibility 62.20 will cause undue hardship. In evaluating a waiver, the local 62.21 agency shall take into account whether the individual was the 62.22 victim of financial exploitation, whether the individual has 62.23 made reasonable efforts to recover the transferred property or 62.24 resource, and other factors relevant to a determination of 62.25 hardship. If the local agency does not approve a hardship 62.26 waiver, the local agency shall issue a written notice to the 62.27 individual stating the reasons for the denial and the process 62.28 for appealing the local agency's decision. When a waiver is 62.29 granted, a cause of action exists against the person to whom the 62.30 assets were transferred for that portion of long-term care 62.31 services granted within: 62.32 (i) 30 months of a transfer made on or before August 10, 62.33 1993; 62.34 (ii) 60 months of a transfer if the assets were transferred 62.35 after August 30, 1993, to a trust or portion of a trust that is 62.36 considered a transfer of assets under federal law; or 63.1 (iii) 36 months of a transfer if transferred in any other 63.2 manner after August 10, 1993, 63.3 or the amount of the uncompensated transfer, whichever is less, 63.4 together with the costs incurred due to the action. The action 63.5 shall be brought by the state unless the state delegates this 63.6 responsibility to the local agency responsible for providing 63.7 medical assistance under this chapter; or 63.8 (6) for transfers occurring after August 10, 1993, the 63.9 assets were transferred by the person or person's spouse: (i) 63.10 into a trust established solelyfor the sole benefit of a son or 63.11 daughter of any age who is blind or disabled as defined by the 63.12 Supplemental Security Income program; or (ii) into a trust 63.13 established solelyfor the sole benefit of an individual who is 63.14 under 65 years of age who is disabled as defined by the 63.15 Supplemental Security Income program. 63.16 "For the sole benefit of" has the meaning found in section 63.17 256B.059, subdivision 1. 63.18 [EFFECTIVE DATE.]This section is effective July 1, 2002. 63.19 Sec. 12. Minnesota Statutes 2001 Supplement, section 63.20 256B.0625, subdivision 13, is amended to read: 63.21 Subd. 13. [DRUGS.] (a) Medical assistance covers drugs, 63.22 except for fertility drugs when specifically used to enhance 63.23 fertility, if prescribed by a licensed practitioner and 63.24 dispensed by a licensed pharmacist, by a physician enrolled in 63.25 the medical assistance program as a dispensing physician, or by 63.26 a physician or a nurse practitioner employed by or under 63.27 contract with a community health board as defined in section 63.28 145A.02, subdivision 5, for the purposes of communicable disease 63.29 control. The commissioner, after receiving recommendations from 63.30 professional medical associations and professional pharmacist 63.31 associations, shall designate a formulary committee to advise 63.32 the commissioner on the names of drugs for which payment is 63.33 made, recommend a system for reimbursing providers on a set fee 63.34 or charge basis rather than the present system, and develop 63.35 methods encouraging use of generic drugs when they are less 63.36 expensive and equally effective as trademark drugs. The 64.1 formulary committee shall consist of nine members, four of whom 64.2 shall be physicians who are not employed by the department of 64.3 human services, and a majority of whose practice is for persons 64.4 paying privately or through health insurance, three of whom 64.5 shall be pharmacists who are not employed by the department of 64.6 human services, and a majority of whose practice is for persons 64.7 paying privately or through health insurance, a consumer 64.8 representative, and a nursing home representative. Committee 64.9 members shall serve three-year terms and shall serve without 64.10 compensation. Members may be reappointed once. 64.11 (b) The commissioner shall establish a drug formulary. Its 64.12 establishment and publication shall not be subject to the 64.13 requirements of the Administrative Procedure Act, but the 64.14 formulary committee shall review and comment on the formulary 64.15 contents. The formulary committee shall review and recommend64.16 drugs which require prior authorization. The formulary64.17 committee may recommend drugs for prior authorization directly64.18 to the commissioner, as long as opportunity for public input is64.19 provided. Prior authorization may be requested by the64.20 commissioner based on medical and clinical criteria before64.21 certain drugs are eligible for payment. Before a drug may be64.22 considered for prior authorization at the request of the64.23 commissioner:64.24 (1) the drug formulary committee must develop criteria to64.25 be used for identifying drugs; the development of these criteria64.26 is not subject to the requirements of chapter 14, but the64.27 formulary committee shall provide opportunity for public input64.28 in developing criteria;64.29 (2) the drug formulary committee must hold a public forum64.30 and receive public comment for an additional 15 days; and64.31 (3) the commissioner must provide information to the64.32 formulary committee on the impact that placing the drug on prior64.33 authorization will have on the quality of patient care and64.34 information regarding whether the drug is subject to clinical64.35 abuse or misuse. Prior authorization may be required by the64.36 commissioner before certain formulary drugs are eligible for65.1 payment.The formulary shall not include: 65.2 (i) drugs or products for which there is no federal 65.3 funding; 65.4 (ii) over-the-counter drugs, except for antacids, 65.5 acetaminophen, family planning products, aspirin, insulin, 65.6 products for the treatment of lice, vitamins for adults with 65.7 documented vitamin deficiencies, vitamins for children under the 65.8 age of seven and pregnant or nursing women, and any other 65.9 over-the-counter drug identified by the commissioner, in 65.10 consultation with the drug formulary committee, as necessary, 65.11 appropriate, and cost-effective for the treatment of certain 65.12 specified chronic diseases, conditions or disorders, and this 65.13 determination shall not be subject to the requirements of 65.14 chapter 14; 65.15 (iii) anorectics, except that medically necessary 65.16 anorectics shall be covered for a recipient previously diagnosed 65.17 as having pickwickian syndrome and currently diagnosed as having 65.18 diabetes and being morbidly obese; 65.19 (iv) drugs for which medical value has not been 65.20 established; and 65.21 (v) drugs from manufacturers who have not signed a rebate 65.22 agreement with the Department of Health and Human Services 65.23 pursuant to section 1927 of title XIX of the Social Security Act. 65.24 The commissioner shall publish conditions for prohibiting 65.25 payment for specific drugs after considering the formulary 65.26 committee's recommendations. An honorarium of $100 per meeting 65.27 and reimbursement for mileage shall be paid to each committee 65.28 member in attendance. 65.29 (c) The basis for determining the amount of payment shall 65.30 be the lower of the actual acquisition costs of the drugs plus a 65.31 fixed dispensing fee; the maximum allowable cost set by the 65.32 federal government or by the commissioner plus the fixed 65.33 dispensing fee; or the usual and customary price charged to the 65.34 public. The pharmacy dispensing fee shall be $3.65$4.15 for 65.35 the period from July 1, 2002, to June 30, 2003, and $4.20 65.36 effective July 1, 2003, except that the dispensing fee for 66.1 intravenous solutions which must be compounded by the pharmacist 66.2 shall be $8 per bag, $14 per bag for cancer chemotherapy 66.3 products, and $30 per bag for total parenteral nutritional 66.4 products dispensed in one liter quantities, or $44 per bag for 66.5 total parenteral nutritional products dispensed in quantities 66.6 greater than one liter. Actual acquisition cost includes 66.7 quantity and other special discounts except time and cash 66.8 discounts. The actual acquisition cost of a drug shall be 66.9 estimated by the commissioner, at average wholesale price 66.10 minus nine14 percent, except that where a drug has had its 66.11 wholesale price reduced as a result of the actions of the 66.12 National Association of Medicaid Fraud Control Units, the 66.13 estimated actual acquisition cost shall be the reduced average 66.14 wholesale price, without the nine14 percent deduction. The 66.15 maximum allowable cost of a multisource drug may be set by the 66.16 commissioner and it shall be comparable to, but no higher than, 66.17 the maximum amount paid by other third-party payors in this 66.18 state who have maximum allowable cost programs. The66.19 commissioner shall set maximum allowable costs for multisource66.20 drugs that are not on the federal upper limit list as described66.21 in United States Code, title 42, chapter 7, section 1396r-8(e),66.22 the Social Security Act, and Code of Federal Regulations, title66.23 42, part 447, section 447.332.Establishment of the amount of 66.24 payment for drugs shall not be subject to the requirements of 66.25 the Administrative Procedure Act. An additional dispensing fee 66.26 of $.30 may be added to the dispensing fee paid to pharmacists 66.27 for legend drug prescriptions dispensed to residents of 66.28 long-term care facilities when a unit dose blister card system, 66.29 approved by the department, is used. Under this type of 66.30 dispensing system, the pharmacist must dispense a 30-day supply 66.31 of drug. The National Drug Code (NDC) from the drug container 66.32 used to fill the blister card must be identified on the claim to 66.33 the department. The unit dose blister card containing the drug 66.34 must meet the packaging standards set forth in Minnesota Rules, 66.35 part 6800.2700, that govern the return of unused drugs to the 66.36 pharmacy for reuse. The pharmacy provider will be required to 67.1 credit the department for the actual acquisition cost of all 67.2 unused drugs that are eligible for reuse. Over-the-counter 67.3 medications must be dispensed in the manufacturer's unopened 67.4 package. The commissioner may permit the drug clozapine to be 67.5 dispensed in a quantity that is less than a 30-day supply. 67.6 Whenever a generically equivalent product is available, payment 67.7 shall be on the basis of the actual acquisition cost of the 67.8 generic drug, unless the prescriber specifically indicates 67.9 "dispense as written - brand necessary" on the prescription as 67.10 required by section 151.21, subdivision 2. 67.11 (d) For purposes of this subdivision, "multisource drugs"67.12 means covered outpatient drugs, excluding innovator multisource67.13 drugs for which there are two or more drug products, which:67.14 (1) are related as therapeutically equivalent under the67.15 Food and Drug Administration's most recent publication of67.16 "Approved Drug Products with Therapeutic Equivalence67.17 Evaluations";67.18 (2) are pharmaceutically equivalent and bioequivalent as67.19 determined by the Food and Drug Administration; and67.20 (3) are sold or marketed in Minnesota.67.21 "Innovator multisource drug" means a multisource drug that was67.22 originally marketed under an original new drug application67.23 approved by the Food and Drug Administration.The formulary 67.24 committee shall review and recommend drugs which require prior 67.25 authorization. The formulary committee may recommend drugs for 67.26 prior authorization directly to the commissioner, as long as 67.27 opportunity for public input is provided. Prior authorization 67.28 may be requested by the commissioner based on medical and 67.29 clinical criteria and on cost before certain drugs are eligible 67.30 for payment. Before a drug may be considered for prior 67.31 authorization at the request of the commissioner: 67.32 (1) the drug formulary committee must develop criteria to 67.33 be used for identifying drugs; the development of these criteria 67.34 is not subject to the requirements of chapter 14, but the 67.35 formulary committee shall provide opportunity for public input 67.36 in developing criteria; 68.1 (2) the drug formulary committee must hold a public forum 68.2 and receive public comment for an additional 15 days; and 68.3 (3) the commissioner must provide information to the 68.4 formulary committee on the impact that placing the drug on prior 68.5 authorization will have on the quality of patient care and on 68.6 program costs, and information regarding whether the drug is 68.7 subject to clinical abuse or misuse. Prior authorization may be 68.8 required by the commissioner before certain formulary drugs are 68.9 eligible for payment. 68.10 (e) The basis for determining the amount of payment for 68.11 drugs administered in an outpatient setting shall be the lower 68.12 of the usual and customary cost submitted by the provider; the 68.13 average wholesale price minus five percent; or the maximum 68.14 allowable cost set by the federal government under United States 68.15 Code, title 42, chapter 7, section 1396r-8(e), and Code of 68.16 Federal Regulations, title 42, section 447.332, or by the 68.17 commissioner under paragraph (c). 68.18 Sec. 13. Minnesota Statutes 2000, section 256B.32, is 68.19 amended to read: 68.20 256B.32 [FACILITY FEE FOR OUTPATIENT HOSPITAL EMERGENCY 68.21 ROOM AND CLINIC VISITS.] 68.22 (a) The commissioner shall establish a facility fee payment 68.23 mechanism that will pay a facility fee to all enrolled 68.24 outpatient hospitals for each emergency room or outpatient 68.25 clinic visit provided on or after July 1, 1989. This payment 68.26 mechanism may not result in an overall increase in outpatient 68.27 payment rates. This section does not apply to federally 68.28 mandated maximum payment limits, department approved program 68.29 packages, or services billed using a nonoutpatient hospital 68.30 provider number. 68.31 (b) For fee-for-service services provided on or after July 68.32 1, 2003, the total payment, before third party liability and 68.33 spenddown, made to hospitals for outpatient hospital facility 68.34 services is reduced by .25 percent from the current statutory 68.35 rates. 68.36 Sec. 14. Minnesota Statutes 2000, section 256B.69, 69.1 subdivision 5a, is amended to read: 69.2 Subd. 5a. [MANAGED CARE CONTRACTS.] (a) Managed care 69.3 contracts under this section and sections 256L.12 and 256D.03, 69.4 shall be entered into or renewed on a calendar year basis 69.5 beginning January 1, 1996. Managed care contracts which were in 69.6 effect on June 30, 1995, and set to renew on July 1, 1995, shall 69.7 be renewed for the period July 1, 1995 through December 31, 1995 69.8 at the same terms that were in effect on June 30, 1995. 69.9 (b) A prepaid health plan providing covered health services 69.10 for eligible persons pursuant to chapters 256B, 256D, and 256L, 69.11 is responsible for complying with the terms of its contract with 69.12 the commissioner. Requirements applicable to managed care 69.13 programs under chapters 256B, 256D, and 256L, established after 69.14 the effective date of a contract with the commissioner take 69.15 effect when the contract is next issued or renewed. 69.16 (c) Effective for services rendered on or after January 1, 69.17 2003, the commissioner shall withhold five percent of managed 69.18 care plan payments under this section for the prepaid medical 69.19 assistance and general assistance medical care programs pending 69.20 completion of performance targets. The withheld funds will be 69.21 returned no sooner than July of the following year if 69.22 performance targets in the contract are achieved. The 69.23 commissioner may exclude special demonstration projects under 69.24 subdivision 23. 69.25 Sec. 15. Minnesota Statutes 2001 Supplement, section 69.26 256B.69, subdivision 5b, is amended to read: 69.27 Subd. 5b. [PROSPECTIVE REIMBURSEMENT RATES.] (a) For 69.28 prepaid medical assistance and general assistance medical care 69.29 program contract rates set by the commissioner under subdivision 69.30 5 and effective on or after January 1, 19982003, capitation 69.31 rates for nonmetropolitan counties shall on a weighted average 69.32 be no less than 8887 percent of the capitation rates for 69.33 metropolitan counties, excluding Hennepin county. The 69.34 commissioner shall make a pro rata adjustment in capitation 69.35 rates paid to counties other than nonmetropolitan counties in 69.36 order to make this provision budget neutral. 70.1 (b) For prepaid medical assistance program contract rates70.2 set by the commissioner under subdivision 5 and effective on or70.3 after January 1, 2001, capitation rates for nonmetropolitan70.4 counties shall, on a weighted average, be no less than 8970.5 percent of the capitation rates for metropolitan counties,70.6 excluding Hennepin county.70.7 (c)This subdivision shall not affect the nongeographically 70.8 based risk adjusted rates established under section 62Q.03, 70.9 subdivision 5a. 70.10 Sec. 16. Minnesota Statutes 2001 Supplement, section 70.11 256B.69, subdivision 5c, is amended to read: 70.12 Subd. 5c. [MEDICAL EDUCATION AND RESEARCH FUND.] (a) The 70.13 commissioner of human services shall transfer each year to the 70.14 medical education and research fund established under section 70.15 62J.692, the following: 70.16 (1) an amount equal to the reduction in the prepaid medical 70.17 assistance and prepaid general assistance medical care payments 70.18 as specified in this clause. Until January 1, 2002, the county 70.19 medical assistance and general assistance medical care 70.20 capitation base rate prior to plan specific adjustments and 70.21 after the regional rate adjustments under section 256B.69, 70.22 subdivision 5b, is reduced 6.3 percent for Hennepin county, two 70.23 percent for the remaining metropolitan counties, and no 70.24 reduction for nonmetropolitan Minnesota counties; and after 70.25 January 1, 2002, the county medical assistance and general 70.26 assistance medical care capitation base rate prior to plan 70.27 specific adjustments is reduced 6.3 percent for Hennepin county, 70.28 two percent for the remaining metropolitan counties, and 1.6 70.29 percent for nonmetropolitan Minnesota counties. Nursing 70.30 facility and elderly waiver payments and demonstration project 70.31 payments operating under subdivision 23 are excluded from this 70.32 reduction. The amount calculated under this clause shall not be 70.33 adjusted for periods already paid due to subsequent changes to 70.34 the capitation payments; and70.35 (2) beginning July 1, 2001, $2,537,000 from the capitation 70.36 rates paid under this section plus any federal matching funds on 71.1 this amount; and 71.2 (3) beginning July 1, 2002, an additional $10,000,000 from 71.3 the capitation rates paid under this section. 71.4 (b) This subdivision shall be effective upon approval of a 71.5 federal waiver which allows federal financial participation in 71.6 the medical education and research fund. 71.7 Sec. 17. Minnesota Statutes 2000, section 256B.69, is 71.8 amended by adding a subdivision to read: 71.9 Subd. 5f. [CAPITATION RATES.] Beginning July 1, 2002, the 71.10 capitation rates paid under this section are increased by 71.11 $10,000,000 per year. 71.12 Sec. 18. Minnesota Statutes 2000, section 256B.69, is 71.13 amended by adding a subdivision to read: 71.14 Subd. 5g. [PAYMENT FOR COVERED SERVICES.] For services 71.15 rendered on or after July 1, 2003, the total payment made to 71.16 managed care plans for providing covered services under the 71.17 medical assistance and general assistance medical care programs 71.18 is reduced by .25 percent from their current statutory rates. 71.19 This provision excludes payments for nursing home services, home 71.20 and community-based waivers, and payments to demonstration 71.21 projects for persons with disabilities. 71.22 Sec. 19. Minnesota Statutes 2001 Supplement, section 71.23 256B.75, is amended to read: 71.24 256B.75 [HOSPITAL OUTPATIENT REIMBURSEMENT.] 71.25 (a) For outpatient hospital facility fee payments for 71.26 services rendered on or after October 1, 1992, the commissioner 71.27 of human services shall pay the lower of (1) submitted charge, 71.28 or (2) 32 percent above the rate in effect on June 30, 1992, 71.29 except for those services for which there is a federal maximum 71.30 allowable payment. Effective for services rendered on or after 71.31 January 1, 2000, payment rates for nonsurgical outpatient 71.32 hospital facility fees and emergency room facility fees shall be 71.33 increased by eight percent over the rates in effect on December 71.34 31, 1999, except for those services for which there is a federal 71.35 maximum allowable payment. Services for which there is a 71.36 federal maximum allowable payment shall be paid at the lower of 72.1 (1) submitted charge, or (2) the federal maximum allowable 72.2 payment. Total aggregate payment for outpatient hospital 72.3 facility fee services shall not exceed the Medicare upper 72.4 limit. If it is determined that a provision of this section 72.5 conflicts with existing or future requirements of the United 72.6 States government with respect to federal financial 72.7 participation in medical assistance, the federal requirements 72.8 prevail. The commissioner may, in the aggregate, prospectively 72.9 reduce payment rates to avoid reduced federal financial 72.10 participation resulting from rates that are in excess of the 72.11 Medicare upper limitations. 72.12 (b) Notwithstanding paragraph (a), payment for outpatient, 72.13 emergency, and ambulatory surgery hospital facility fee services 72.14 for critical access hospitals designated under section 144.1483, 72.15 clause (11), shall be paid on a cost-based payment system that 72.16 is based on the cost-finding methods and allowable costs of the 72.17 Medicare program. 72.18 (c) Effective for services provided on or after July 1, 72.19 20022003, rates that are based on the Medicare outpatient 72.20 prospective payment system shall be replaced by a budget neutral 72.21 prospective payment system that is derived using medical 72.22 assistance data. The commissioner shall provide a proposal to 72.23 the 20022003 legislature to define and implement this provision. 72.24 (d) For fee-for-service services provided on or after July 72.25 1, 2003, the total payment, before third party liability and 72.26 spenddown, made to hospitals for outpatient hospital facility 72.27 services is reduced by .25 percent from the current statutory 72.28 rate. 72.29 Sec. 20. Minnesota Statutes 2000, section 256L.07, 72.30 subdivision 1, is amended to read: 72.31 Subdivision 1. [GENERAL REQUIREMENTS.] (a) Children 72.32 enrolled in the original children's health plan as of September 72.33 30, 1992, children who enrolled in the MinnesotaCare program 72.34 after September 30, 1992, pursuant to Laws 1992, chapter 549, 72.35 article 4, section 17, and children who have family gross 72.36 incomes that are equal to or less than 150175 percent of the 73.1 federal poverty guidelines are eligible without meeting the 73.2 requirements of subdivision 2, as long as they maintain 73.3 continuous coverage in the MinnesotaCare program or medical 73.4 assistance. Children who apply for MinnesotaCare on or after 73.5 the implementation date of the employer-subsidized health 73.6 coverage program as described in Laws 1998, chapter 407, article 73.7 5, section 45, who have family gross incomes that are equal to 73.8 or less than 150175 percent of the federal poverty guidelines, 73.9 must meet the requirements of subdivision 2 to be eligible for 73.10 MinnesotaCare. 73.11 (b) Families enrolled in MinnesotaCare under section 73.12 256L.04, subdivision 1, whose income increases above 275 percent 73.13 of the federal poverty guidelines, are no longer eligible for 73.14 the program and shall be disenrolled by the commissioner. 73.15 Individuals enrolled in MinnesotaCare under section 256L.04, 73.16 subdivision 7, whose income increases above 175 percent of the 73.17 federal poverty guidelines are no longer eligible for the 73.18 program and shall be disenrolled by the commissioner. For 73.19 persons disenrolled under this subdivision, MinnesotaCare 73.20 coverage terminates the last day of the calendar month following 73.21 the month in which the commissioner determines that the income 73.22 of a family or individual exceeds program income limits. 73.23 (c) Notwithstanding paragraph (b), individuals and families 73.24 may remain enrolled in MinnesotaCare if ten percent of their 73.25 annual income is less than the annual premium for a policy with 73.26 a $500 deductible available through the Minnesota comprehensive 73.27 health association. Individuals and families who are no longer 73.28 eligible for MinnesotaCare under this subdivision shall be given 73.29 an 18-month notice period from the date that ineligibility is 73.30 determined before disenrollment. 73.31 [EFFECTIVE DATE.]This section is effective July 1, 2003. 73.32 Sec. 21. Minnesota Statutes 2000, section 256L.07, 73.33 subdivision 3, is amended to read: 73.34 Subd. 3. [OTHER HEALTH COVERAGE.] (a) Families and 73.35 individuals enrolled in the MinnesotaCare program must have no 73.36 health coverage while enrolled or for at least four months prior 74.1 to application and renewal. Children enrolled in the original 74.2 children's health plan and children in families with income 74.3 equal to or less than 150175 percent of the federal poverty 74.4 guidelines, who have other health insurance, are eligible if the 74.5 coverage: 74.6 (1) lacks two or more of the following: 74.7 (i) basic hospital insurance; 74.8 (ii) medical-surgical insurance; 74.9 (iii) prescription drug coverage; 74.10 (iv) dental coverage; or 74.11 (v) vision coverage; 74.12 (2) requires a deductible of $100 or more per person per 74.13 year; or 74.14 (3) lacks coverage because the child has exceeded the 74.15 maximum coverage for a particular diagnosis or the policy 74.16 excludes a particular diagnosis. 74.17 The commissioner may change this eligibility criterion for 74.18 sliding scale premiums in order to remain within the limits of 74.19 available appropriations. The requirement of no health coverage 74.20 does not apply to newborns. 74.21 (b) Medical assistance, general assistance medical care, 74.22 and civilian health and medical program of the uniformed 74.23 service, CHAMPUS, are not considered insurance or health 74.24 coverage for purposes of the four-month requirement described in 74.25 this subdivision. 74.26 (c) For purposes of this subdivision, Medicare Part A or B 74.27 coverage under title XVIII of the Social Security Act, United 74.28 States Code, title 42, sections 1395c to 1395w-4, is considered 74.29 health coverage. An applicant or enrollee may not refuse 74.30 Medicare coverage to establish eligibility for MinnesotaCare. 74.31 (d) Applicants who were recipients of medical assistance or 74.32 general assistance medical care within one month of application 74.33 must meet the provisions of this subdivision and subdivision 2. 74.34 [EFFECTIVE DATE.]This section is effective July 1, 2003. 74.35 Sec. 22. Minnesota Statutes 2000, section 256L.12, 74.36 subdivision 9, is amended to read: 75.1 Subd. 9. [RATE SETTING.] (a) Rates will be prospective, 75.2 per capita, where possible. The commissioner may allow health 75.3 plans to arrange for inpatient hospital services on a risk or 75.4 nonrisk basis. The commissioner shall consult with an 75.5 independent actuary to determine appropriate rates. 75.6 (b) For services rendered on or after January 1, 2003, the 75.7 commissioner shall withhold .5 percent of managed care plan 75.8 payments under this section pending completion of performance 75.9 targets. The withheld funds will be returned no sooner than 75.10 July 1 and no later than July 31 of the following year if 75.11 performance targets in the contract are achieved. 75.12 Sec. 23. Minnesota Statutes 2001 Supplement, section 75.13 256L.15, subdivision 1, is amended to read: 75.14 Subdivision 1. [PREMIUM DETERMINATION.] (a) Families with 75.15 children and individuals shall pay a premium determined 75.16 according to a sliding fee based on a percentage of the family's 75.17 gross family income. 75.18 (b) Pregnant women and children under age two are exempt 75.19 from the provisions of section 256L.06, subdivision 3, paragraph 75.20 (b), clause (3), requiring disenrollment for failure to pay 75.21 premiums. For pregnant women, this exemption continues until 75.22 the first day of the month following the 60th day postpartum. 75.23 Women who remain enrolled during pregnancy or the postpartum 75.24 period, despite nonpayment of premiums, shall be disenrolled on 75.25 the first of the month following the 60th day postpartum for the 75.26 penalty period that otherwise applies under section 256L.06, 75.27 unless they begin paying premiums. 75.28 (c) Effective July 1, 2002, through June 30, 2006, at their75.29 option, children with gross family income at or below 21775.30 percent of the federal poverty guidelines who are eligible for75.31 MinnesotaCare in the first month following termination from75.32 medical assistance shall not pay a premium for 12 months.75.33 [EFFECTIVE DATE.]This section is effective July 1, 2002. 75.34 Sec. 24. Minnesota Statutes 2000, section 256L.15, 75.35 subdivision 3, is amended to read: 75.36 Subd. 3. [EXCEPTIONS TO SLIDING SCALE.] An annual premium 76.1 of $48 is required for all children in families with income at 76.2 or less than 150175 percent of federal poverty guidelines. 76.3 [EFFECTIVE DATE.]This section is effective July 1, 2003. 76.4 Sec. 25. [REPEALER.] 76.5 Minnesota Statutes 2001 Supplement, sections 256B.0625, 76.6 subdivision 5a; and 256L.03, subdivision 5a, are repealed. 76.7 ARTICLE 8 76.8 MISCELLANEOUS 76.9 Section 1. Minnesota Statutes 2000, section 145.9266, 76.10 subdivision 3, is amended to read: 76.11 Subd. 3. [PROFESSIONAL TRAINING AND EDUCATION ABOUT FETAL 76.12 ALCOHOL SYNDROME.] (a) The commissioner of health, in 76.13 collaboration with the board of medical practice, the board of 76.14 nursing, and other professional boards and state agencies, shall 76.15 develop curricula andmaterials about fetal alcohol syndrome for 76.16 professional training of health care providers, social service 76.17 providers, educators, and judicial and corrections systems 76.18 professionals. The training and curriculashall increase 76.19 knowledge and develop practical skills of professionals to help 76.20 them address the needs of at-risk pregnant women and the needs 76.21 of individuals affected by fetal alcohol syndrome or fetal 76.22 alcohol effects and their families. 76.23 (b) Training for health care providers shall focus on skill 76.24 building for screening, counseling, referral, and follow-up for 76.25 women using or at risk of using alcohol while pregnant. 76.26 Training for health care professionals shall include methods for 76.27 diagnosis and evaluation of fetal alcohol syndrome and fetal 76.28 alcohol effects. Training for education, judicial, and 76.29 corrections professionals shall involve effective education 76.30 strategies, methods to identify the behaviors and learning 76.31 styles of children with alcohol-related birth defects, and 76.32 methods to identify available referral and community resources. 76.33 (c) Training and education for social service providers 76.34 shall focus on resources for assessing, referring, and treating 76.35 at-risk pregnant women, changes in the mandatory reporting and 76.36 commitment laws, and resources for affected children and their 77.1 families. 77.2 Sec. 2. Minnesota Statutes 2000, section 251.013, 77.3 subdivision 1, is amended to read: 77.4 Subdivision 1. [INTENT.] (a) It is the intent of the 77.5 legislature that the Ah-Gwah-Ching center continue operation in 77.6 Walker, Minnesota, as a provider of nursing care to geriatric 77.7 and other residents whose aggressive or difficult to manage 77.8 behavioral needs cannot be met in their home community. 77.9 (b) It is the intent of the legislature that the Fergus 77.10 Falls regional treatment center and the Willmar regional 77.11 treatment center continue operation in Fergus Falls and Willmar 77.12 respectively, as providers of mental health and chemical 77.13 dependency treatment, and also as operators of community-based 77.14 programs for persons with developmental disabilities. 77.15 Sec. 3. Minnesota Statutes 2001 Supplement, section 77.16 256I.05, subdivision 1e, is amended to read: 77.17 Subd. 1e. [SUPPLEMENTARY RATE FOR CERTAIN FACILITIES.] 77.18 Notwithstanding the provisions of subdivisions 1a and 1c, 77.19 beginning July 1, 20012002, a county agency shall negotiate a 77.20 supplementary rate in addition to the rate specified in 77.21 subdivision 1, equal to 4635.5 percent of the amount specified 77.22 in subdivision 1a , including any legislatively authorized77.23 inflationary adjustments,for a group residential housing 77.24 provider that: 77.25 (1) is located in Hennepin county and has had a group 77.26 residential housing contract with the county since June 1996; 77.27 (2) operates in three separate locations a 71-bed facility, 77.28 and two 40-bed facilities; and 77.29 (3) serves a chemically dependent clientele, providing 24 77.30 hours per day supervision and limiting a resident's maximum 77.31 length of stay to 13 months out of a consecutive 24-month period. 77.32 Sec. 4. [REPEALER.] 77.33 (a) Minnesota Statutes 2000, sections 144.6905; and 77.34 145.475, are repealed. 77.35 (b) Minnesota Statutes 2000, section 256.9731, is repealed. 77.36 (c) Minnesota Statutes 2000, sections 256K.01; 256K.015; 78.1 256K.02; 256K.03, as amended by Laws 2001, First Special Session 78.2 chapter 9, article 2, section 58; 256K.04; 256K.05; 256K.06; 78.3 256K.08; 256K.09; and Minnesota Statutes 2001 Supplement, 78.4 section 256K.07, are repealed. 78.5 (d) Laws 1999, chapter 152, section 2; Laws 1999, chapter 78.6 152, section 4, as amended by Laws 2001, First Special Session 78.7 chapter 9, article 13, section 18; and Laws 2001, First Special 78.8 Session chapter 9, article 13, sections 22; 25; 26; 27; and 28, 78.9 are repealed. 78.10 ARTICLE 9 78.11 CORRECTIONS 78.12 Section 1. [CORRECTIONS APPROPRIATIONS.] 78.13 The dollar amounts in the columns under "APPROPRIATIONS" 78.14 are added to or, if shown in parentheses, are subtracted from 78.15 the appropriations in Laws 2001, First Special Session chapter 78.16 9, or other law to the specified agencies. The appropriations 78.17 are from the general fund or other named fund and are available 78.18 for the fiscal years indicated for each purpose. The figure 78.19 "2002" or "2003" means that the addition to or subtraction from 78.20 the appropriations listed under the figure are for the fiscal 78.21 year ending June 30, 2002, or June 30, 2003, respectively. 78.22 SUMMARY BY FUND 78.23 BIENNIAL 78.24 2002 2003 TOTAL 78.25 General $ (5,200,000)$ (9,778,000)$ (14,978,000) 78.26 APPROPRIATIONS 78.27 Available for the Year 78.28 Ending June 30 78.29 2002 2003 78.30 Sec. 2. BOARD OF PUBLIC 78.31 DEFENSE -0- (1,041,000) 78.32 Sec. 3. CORRECTIONS 78.33 Subdivision 1. Total 78.34 Appropriation Changes (5,200,000) (8,737,000) 78.35 Subd. 2. Adult Institutions (5,200,000) (1,600,000) 78.36 Subd. 3. Juvenile Services -0- (115,000) 78.37 Subd. 4. Community Services -0- (6,722,000) 78.38 [JUVENILE RESIDENTIAL TREATMENT 78.39 GRANTS.] $5,000,000 the second year is 78.40 to reduce juvenile residential 79.1 treatment grants. 79.2 [PRETRIAL BAIL EVALUATION 79.3 REIMBURSEMENT.] $322,000 the second 79.4 year is to eliminate pretrial bail 79.5 evaluation reimbursement. 79.6 [COMMUNITY REENTRY PROGRAM.] $200,000 79.7 the second year is to eliminate the 79.8 community reentry program. 79.9 [COMMUNITY CORRECTIONS ACT SUBSIDY.] 79.10 $800,000 the second year is to reduce 79.11 the Community Corrections Act subsidy 79.12 funding. $80,000 the second year is to 79.13 reduce county probation officer 79.14 reimbursement. $320,000 the second 79.15 year is to reduce probation and 79.16 supervised release services provided by 79.17 the department. The Community 79.18 Corrections Act subsidy reduction, 79.19 county probation officer reimbursement 79.20 reduction, and probation and supervised 79.21 release reduction are onetime 79.22 reductions and shall not affect the 79.23 2004-2005 biennial base appropriation. 79.24 Subd. 5. Management Services -0- (300,000) 79.25 Sec. 4. Minnesota Statutes 2001 Supplement, section 79.26 244.054, subdivision 2, is amended to read: 79.27 Subd. 2. [CONTENT OF PLAN.] If an offender chooses to have 79.28 a discharge plan developed, the commissioner of human services 79.29 shall develop and implement a discharge plan, which must include 79.30 at least the following: 79.31 (1) at least 90 days before the offender is due to be 79.32 discharged, the commissioner of human services shall designate 79.33 an agent of the department of human services with mental health 79.34 training to serve as the primary person responsible for carrying 79.35 out discharge planning activities; 79.36 (2) at least 75 days before the offender is due to be 79.37 discharged, the offender's designated agent shall: 79.38 (i) obtain informed consent and releases of information 79.39 from the offender that are needed for transition services; 79.40 (ii) contact the county human services department in the 79.41 community where the offender expects to reside following 79.42 discharge, and inform the department of the offender's impending 79.43 discharge and the planned date of the offender's return to the 79.44 community; determine whether the county or a designated 79.45 contracted provider will provide case management services to the 80.1 offender; refer the offender to the case management services 80.2 provider; and confirm that the case management services provider 80.3 will have opened the offender's case prior to the offender's 80.4 discharge; and 80.5 (iii) refer the offender to appropriate staff in the county 80.6 human services department in the community where the offender 80.7 expects to reside following discharge, for enrollment of the 80.8 offender if eligible in medical assistance or general assistance 80.9 medical care, using special procedures established by process 80.10 and department of human services bulletin; 80.11 (3) at least 2-1/2 months before discharge, the offender's 80.12 designated agent shall secure timely appointments for the 80.13 offender with a psychiatrist no later than 30 days following 80.14 discharge, and with other program staff at a community mental 80.15 health provider that is able to serve former offenders with 80.16 serious and persistent mental illness; 80.17 (4) at least 30 days before discharge, the offender's 80.18 designated agent shall convene a predischarge assessment and 80.19 planning meeting of key staff from the programs in which the 80.20 offender has participated while in the correctional facility, 80.21 the offender, and the supervising agent, and the mental health 80.22 case management services provider assigned to the offender. At 80.23 the meeting, attendees shall provide background information and 80.24 continuing care recommendations for the offender, including 80.25 information on the offender's risk for relapse; current 80.26 medications, including dosage and frequency; therapy and 80.27 behavioral goals; diagnostic and assessment information, 80.28 including results of a chemical dependency evaluation; 80.29 confirmation of appointments with a psychiatrist and other 80.30 program staff in the community; a relapse prevention plan; 80.31 continuing care needs; needs for housing, employment, and 80.32 finance support and assistance; and recommendations for 80.33 successful community integration, including chemical dependency 80.34 treatment or support if chemical dependency is a risk factor. 80.35 Immediately following this meeting, the offender's designated 80.36 agent shall summarize this background information and continuing 81.1 care recommendations in a written report; 81.2 (5) immediately following the predischarge assessment and 81.3 planning meeting, the provider of mental health case management 81.4 services who will serve the offender following discharge shall 81.5 offer to make arrangements and referrals for housing, financial 81.6 support, benefits assistance, employment counseling, and other 81.7 services required in sections 245.461 to 245.486; 81.8 (6) at least ten days before the offender's first scheduled 81.9 postdischarge appointment with a mental health provider, the 81.10 offender's designated agent shall transfer the following records 81.11 to the offender's case management services provider and 81.12 psychiatrist: the predischarge assessment and planning report, 81.13 medical records, and pharmacy records. These records may be 81.14 transferred only if the offender provides informed consent for 81.15 their release; 81.16 (7) upon discharge, the offender's designated agent shall 81.17 ensure that the offender leaves the correctional facility with 81.18 at least a ten-day supply of all necessary medications; and 81.19 (8) upon discharge, the prescribing authority at the 81.20 offender's correctional facility shall telephone in 81.21 prescriptions for all necessary medications to a pharmacy in the 81.22 community where the offender plans to reside. The prescriptions 81.23 must provide at least a 30-day supply of all necessary 81.24 medications, and must be able to be refilled once for one 81.25 additional 30-day supply. 81.26 Sec. 5. Minnesota Statutes 2001 Supplement, section 81.27 242.192, is amended to read: 81.28 242.192 [CHARGES TO COUNTIES.] 81.29 (a) Until June 30, 2002,The commissioner shall charge 81.30 counties or other appropriate jurisdictions 65 percent of the 81.31 per diem cost of confinement, excluding educational costs and 81.32 nonbillable service, of juveniles at the Minnesota correctional 81.33 facility-Red Wing and of juvenile females committed to the 81.34 commissioner of corrections. This charge applies to juveniles 81.35 committed to the commissioner of corrections and juveniles 81.36 admitted to the Minnesota correctional facility-Red Wing under 82.1 established admissions criteria. This charge applies to both 82.2 counties that participate in the Community Corrections Act and 82.3 those that do not. The commissioner shall determine the per 82.4 diem cost of confinement based on projected population, pricing 82.5 incentives, market conditions, and the requirement that expense 82.6 and revenue balance out over a period of two years. All money 82.7 received under this section must be deposited in the state 82.8 treasury and credited to the general fund. 82.9 (b) Until June 30, 2002, the department of corrections82.10 shall be responsible for 35 percent of the per diem cost of82.11 confinement described in this section.82.12 Sec. 6. [COLLABORATIVE CASE PLANNING FOR CERTAIN MENTALLY 82.13 ILL PERSONS UNDER CORRECTIONAL SUPERVISION; POLICIES AND 82.14 PRACTICES AND REPORTS REQUIRED.] 82.15 Subdivision 1. [DEVELOPMENT OF POLICIES AND 82.16 PRACTICES.] Correctional and social services agencies in each 82.17 county that deliver direct case management services shall 82.18 develop policies and practices that maximize collaborative case 82.19 planning for adult and juvenile offenders under correctional 82.20 supervision who have been diagnosed with serious and persistent 82.21 mental illness or severe emotional disturbance. To the degree 82.22 resources are available, the policies and practices must 82.23 determine how to: 82.24 (1) ensure that the offender receives the best possible 82.25 mental health case management expertise; 82.26 (2) determine which case management model best delivers 82.27 case management services; 82.28 (3) maximize the efficiency of case management services; 82.29 and 82.30 (4) maximize the recoupment of federal financial 82.31 participation of medical assistance and other forms of funding. 82.32 Subd. 2. [REPORTS REQUIRED.] By December 31, 2002, the 82.33 agencies described in subdivision 1 shall submit a report on 82.34 their mental health correctional policies and practices to the 82.35 department of corrections. By March 1, 2003, the commissioner 82.36 of corrections shall submit a statewide report on the mental 83.1 health correctional policies and practices to the chairs and 83.2 ranking minority members of the senate and house of 83.3 representatives committees and divisions with jurisdiction over 83.4 mental health and corrections policy and funding. 83.5 Sec. 7. [DATA SHARING ON CERTAIN MENTALLY ILL PERSONS 83.6 UNDER CORRECTIONAL SUPERVISION.] 83.7 Notwithstanding any other law to the contrary, correctional 83.8 and social services agencies may share data on adult and 83.9 juvenile offenders under correctional supervision who have been 83.10 diagnosed with serious and persistent mental illness or severe 83.11 emotional disturbance for the purpose of engaging in 83.12 collaborative case planning as described in section 6. 83.13 ARTICLE 10 83.14 TRANSPORTATION AND OTHER AGENCY APPROPRIATIONS 83.15 Section 1. [TRANSPORTATION AND OTHER AGENCY APPROPRIATIONS.] 83.16 The dollar amounts in the columns marked "APPROPRIATIONS" 83.17 are added to or, if shown in parentheses, are subtracted from 83.18 the appropriations in Laws 2001, First Special Session chapter 83.19 8, or other law to the specified agencies. The appropriations 83.20 are from the general fund or any other named fund and are 83.21 available for the fiscal years indicated for each purpose. The 83.22 figure 2002 or 2003 means that the addition to or subtraction 83.23 from the appropriations listed under the figure are for the 83.24 fiscal year ending June 30, 2002, or June 30, 2003, 83.25 respectively. If only one figure is shown in the text for a 83.26 specified purpose, the addition or subtraction is for 2002 83.27 unless the context intends another fiscal year. 83.28 SUMMARY BY FUND 83.29 2002 2003 TOTAL 83.30 APPROPRIATIONS 83.31 General $ (2,534,000) $ (2,818,000) $ (5,352,000) 83.32 Trunk Highway 245,240,000 -0- 245,240,000 83.33 CANCELLATIONS (245,240,000) -0- (245,240,000) 83.34 TRANSFERS IN (1,388,000) (1,391,000) (2,779,000) 83.35 SUMMARY BY FUND 83.36 Sec. 2. TRANSPORTATION 245,240,000 -0- 84.1 This appropriation is for trunk highway 84.2 construction. This appropriation is 84.3 from the bond proceeds account in the 84.4 trunk highway fund and is available for 84.5 expenditure beginning the day after 84.6 final enactment. The commissioner of 84.7 transportation shall allocate this 84.8 appropriation so that, taken together 84.9 with money spent from the appropriation 84.10 in Laws 2000, chapter 479, article 1, 84.11 section 2, subdivision 3, total 84.12 spending is in the amounts and for the 84.13 purposes specified in the cited 84.14 subdivision. 84.15 Of the appropriation in Laws 2000, 84.16 chapter 479, article 1, section 2, 84.17 subdivision 3, $245,240,000 cancels to 84.18 the general fund. This cancellation is 84.19 effective the day following final 84.20 enactment. 84.21 Sec. 3. METROPOLITAN COUNCIL 84.22 Metropolitan Council 84.23 Transit (400,000) (700,000) 84.24 Of this amount, $100,000 each year is 84.25 to reduce administrative costs of 84.26 metropolitan transportation services. 84.27 $300,000 in the first year and $600,000 84.28 in the second year is to reduce 84.29 administrative costs of metro transit. 84.30 Sec. 4. PUBLIC SAFETY 84.31 Subdivision 1. Total Appropriation 84.32 Changes (1,677,000) (1,335,000) 84.33 Subd. 2. Crime Victim 84.34 Services Center (43,000) (576,000) 84.35 Subd. 3. Law Enforcement and 84.36 Community Grants (1,634,000) (584,000) 84.37 (a) Of these amounts: 84.38 (1) $1,150,000 in the first year is an 84.39 accounting adjustment related to the 84.40 administration of grant programs; 84.41 (2) $142,000 in each year is to reduce 84.42 drug policy and violence prevention 84.43 grants; 84.44 (3) $75,000 in each year is to reduce 84.45 violence prevention council grants; 84.46 (4) $117,000 in each year is to reduce 84.47 criminal gang strike force grants under 84.48 Minnesota Statutes, section 299A.66; 84.49 (5) $250,000 in the second year is to 84.50 reduce grants for overtime for police 84.51 officers and financial crimes unit; and 84.52 (6) $150,000 in the first year is to 84.53 reduce model policing program pilot 84.54 projects required under Minnesota 84.55 Statutes, section 626.8441, subdivision 84.56 1. 85.1 (b) By June 30, 2002, the commissioner 85.2 of finance shall transfer the available 85.3 unencumbered balance from the 85.4 automobile theft prevention account in 85.5 the special revenue fund to the general 85.6 fund. Minnesota Statutes, section 85.7 168A.40, subdivision 4, does not apply 85.8 to money transferred to the general 85.9 fund under this paragraph. 85.10 (c) The commissioner may not reduce the 85.11 current allocation of federal Byrne 85.12 grant funds for the youth experiencing 85.13 alternatives (YEA)/Camp Ripley programs. 85.14 Subd. 4. State Patrol - 85.15 Capitol Security -0- (175,000) 85.16 This amount reduces the cost of 85.17 executive protection. 85.18 Sec. 5. DEPARTMENT OF 85.19 COMMERCE (103,000) (251,000) 85.20 Of these amounts: 85.21 (1) $44,000 in the first year and 85.22 $104,000 in the second year are for 85.23 staff reduction in the department of 85.24 commerce/administration program; and 85.25 (2) $59,000 in the first year and 85.26 $147,000 in the second year are for 85.27 staff reduction in the weights and 85.28 measures program. 85.29 Sec. 6. LABOR AND INDUSTRY (324,000) (502,000) 85.30 Of these amounts, $70,000 in the first 85.31 year and $141,000 in the second year 85.32 are for staff reduction. $100,000 in 85.33 the second year is a transfer from the 85.34 workforce development fund for 85.35 statewide and agency indirect costs 85.36 associated with the apprenticeship 85.37 program. 85.38 Sec. 7. BUREAU OF MEDIATION 85.39 SERVICES (30,000) (30,000) 85.40 These amounts reduce labor-management 85.41 cooperation grants. 85.42 Sec. 8. Minnesota Statutes 2000, section 168A.40, 85.43 subdivision 4, is amended to read: 85.44 Subd. 4. [AUTOMOBILE THEFT PREVENTION ACCOUNT.] A special 85.45 revenue account is created in the state treasury to be credited 85.46 with the proceeds of the surcharge imposed under subdivision 3. 85.47 Of the revenue in the account, $1,300,000 each year must be 85.48 transferred to the general fund. Revenues in excess of 85.49 $1,300,000 each year may be used only for the automobile theft 85.50 prevention program described in section 299A.75. 86.1 Sec. 9. Minnesota Statutes 2001 Supplement, section 86.2 171.29, subdivision 2, is amended to read: 86.3 Subd. 2. [REINSTATEMENT FEES AND SURCHARGES, ALLOCATION.] 86.4 (a) A person whose driver's license has been revoked as provided 86.5 in subdivision 1, except under section 169A.52, 169A.54, or 86.6 609.21, shall pay a $30 fee before the driver's license is 86.7 reinstated. 86.8 (b) A person whose driver's license has been revoked as 86.9 provided in subdivision 1 under section 169A.52, 169A.54, or 86.10 609.21, shall pay a $250 fee plus a $40 surcharge before the 86.11 driver's license is reinstated. Beginning July 1, 2002, the 86.12 surcharge is $145. Beginning July 1, 2003, the surcharge is 86.13 $380. The $250 fee is to be credited as follows: 86.14 (1) Twenty percent must be credited to the trunk highway 86.15 fund. 86.16 (2) Fifty-fiveSixty-seven percent must be credited to the 86.17 general fund. 86.18 (3) Eight percent must be credited to a separate account to 86.19 be known as the bureau of criminal apprehension account. Money 86.20 in this account may be appropriated to the commissioner of 86.21 public safety and the appropriated amount must be apportioned 80 86.22 percent for laboratory costs and 20 percent for carrying out the 86.23 provisions of section 299C.065. 86.24 (4) Twelve percent must be credited to a separate account86.25 to be known as the alcohol-impaired driver education account.86.26 Money in the account is appropriated as follows:86.27 (i) in fiscal year 2002:86.28 (A) the first $200,000 to the commissioner of children,86.29 families, and learning for programs for elementary and secondary86.30 school students; and86.31 (B) the remainder credited to the commissioner of public86.32 safety to be spent as grants through March 31, 2002, to the86.33 Minnesota highway safety center at St. Cloud State University86.34 for programs relating to alcohol and highway safety education in86.35 elementary and secondary schools and then from April 1, 2002,86.36 through June 30, 2002, for programs described in item (ii); and87.1 (ii) after June 30, 2002, to the commissioner of public87.2 safety for grants for programs relating to alcohol and highway87.3 safety education in elementary and secondary schools.87.4 (5)Five percent must be credited to a separate account to 87.5 be known as the traumatic brain injury and spinal cord injury 87.6 account. The money in the account is annually appropriated to 87.7 the commissioner of health to be used as follows: 35 percent 87.8 for a contract with a qualified community-based organization to 87.9 provide information, resources, and support to assist persons 87.10 with traumatic brain injury and their families to access 87.11 services, and 65 percent to maintain the traumatic brain injury 87.12 and spinal cord injury registry created in section 144.662. For 87.13 the purposes of this clause, a "qualified community-based 87.14 organization" is a private, not-for-profit organization of 87.15 consumers of traumatic brain injury services and their family 87.16 members. The organization must be registered with the United 87.17 States Internal Revenue Service under section 501(c)(3) as a 87.18 tax-exempt organization and must have as its purposes: 87.19 (i) the promotion of public, family, survivor, and 87.20 professional awareness of the incidence and consequences of 87.21 traumatic brain injury; 87.22 (ii) the provision of a network of support for persons with 87.23 traumatic brain injury, their families, and friends; 87.24 (iii) the development and support of programs and services 87.25 to prevent traumatic brain injury; 87.26 (iv) the establishment of education programs for persons 87.27 with traumatic brain injury; and 87.28 (v) the empowerment of persons with traumatic brain injury 87.29 through participation in its governance. 87.30 No patient's name, identifying information or identifiable 87.31 medical data will be disclosed to the organization without the 87.32 informed voluntary written consent of the patient or patient's 87.33 guardian, or if the patient is a minor, of the parent or 87.34 guardian of the patient. 87.35 (c) The surcharge must be credited to a separate account to 87.36 be known as the remote electronic alcohol monitoring program 88.1 account. The commissioner shall transfer the balance of this 88.2 account to the commissioner of finance on a monthly basis for 88.3 deposit in the general fund. 88.4 (d) When these fees are collected by a licensing agent, 88.5 appointed under section 171.061, a handling charge is imposed in 88.6 the amount specified under section 171.061, subdivision 4. The 88.7 reinstatement fees and surcharge must be deposited in an 88.8 approved state depository as directed under section 171.061, 88.9 subdivision 4. 88.10 Sec. 10. Minnesota Statutes 2001 Supplement, section 88.11 299A.75, subdivision 1, is amended to read: 88.12 Subdivision 1. [PROGRAM DESCRIBED; COMMISSIONER'S DUTIES.] 88.13 (a) The commissioner of public safety shall: 88.14 (1) develop and sponsor the implementation of statewide 88.15 plans, programs, and strategies to combat automobile theft, 88.16 improve the administration of the automobile theft laws, and 88.17 provide a forum for identification of critical problems for 88.18 those persons dealing with automobile theft; 88.19 (2) coordinate the development, adoption, and 88.20 implementation of plans, programs, and strategies relating to 88.21 interagency and intergovernmental cooperation with respect to 88.22 automobile theft enforcement; 88.23 (3) annually audit the plans and programs that have been 88.24 funded in whole or in part to evaluate the effectiveness of the 88.25 plans and programs and withdraw funding should the commissioner 88.26 determine that a plan or program is ineffective or is no longer 88.27 in need of further financial support from the fund; 88.28 (4) develop a plan of operation including: 88.29 (i) an assessment of the scope of the problem of automobile 88.30 theft, including areas of the state where the problem is 88.31 greatest; 88.32 (ii) an analysis of various methods of combating the 88.33 problem of automobile theft; 88.34 (iii) a plan for providing financial support to combat 88.35 automobile theft; 88.36 (iv) a plan for eliminating car hijacking; and 89.1 (v) an estimate of the funds required to implement the 89.2 plan; and 89.3 (5) distribute money pursuant to subdivision 3 from the 89.4 automobile theft prevention special revenue account for 89.5 automobile theft prevention activities, including: 89.6 (i) paying the administrative costs of the program; 89.7 (ii) providing financial support to the state patrol and 89.8 local law enforcement agencies for automobile theft enforcement 89.9 teams; 89.10 (iii) providing financial support to state or local law 89.11 enforcement agencies for programs designed to reduce the 89.12 incidence of automobile theft and for improved equipment and 89.13 techniques for responding to automobile thefts; 89.14 (iv) providing financial support to local prosecutors for 89.15 programs designed to reduce the incidence of automobile theft; 89.16 (v) providing financial support to judicial agencies for 89.17 programs designed to reduce the incidence of automobile theft; 89.18 (vi) providing financial support for neighborhood or 89.19 community organizations or business organizations for programs 89.20 designed to reduce the incidence of automobile theft and to 89.21 educate people about the common methods of automobile theft, the 89.22 models of automobiles most likely to be stolen, and the times 89.23 and places automobile theft is most likely to occur; and 89.24 (vii) providing financial support for automobile theft 89.25 educational and training programs for state and local law 89.26 enforcement officials, driver and vehicle services exam and 89.27 inspections staff, and members of the judiciary. 89.28 (b) The commissioner may not spend in any fiscal year more 89.29 than ten percent of the money in the fund for the program's 89.30 administrative and operating costs. The commissioner is 89.31 annually appropriated and must distribute the fullamount of the 89.32 proceeds credited to the automobile theft prevention special 89.33 revenue account each year, less the transfer of $1,300,000 each 89.34 year to the general fund described in section 168A.40, 89.35 subdivision 4. 89.36 Sec. 11. Minnesota Statutes 2001 Supplement, section 90.1 357.021, subdivision 7, is amended to read: 90.2 Subd. 7. [DISBURSEMENT OF SURCHARGES BY STATE TREASURER.] 90.3 (a) Except as provided in paragraphsparagraph (b) and (c), the 90.4 state treasurer shall disburse surcharges received under 90.5 subdivision 6 and section 97A.065, subdivision 2, as follows: 90.6 (1) one percent shall be credited to the game and fish fund 90.7 to provide peace officer training for employees of the 90.8 department of natural resources who are licensed under sections 90.9 626.84 to 626.863, and who possess peace officer authority for 90.10 the purpose of enforcing game and fish laws; 90.11 (2) 39 percent shall be credited to the peace officers 90.12 training account in the special revenue fund; and 90.13 (3) 60 percent shall be credited to the general fund. 90.14 (b) The state treasurer shall credit $3 of each surcharge90.15 received under subdivision 6 and section 97A.065, subdivision 2,90.16 to a criminal justice special projects account in the special90.17 revenue fund. This account is available for appropriation to90.18 the commissioner of public safety for grants to law enforcement90.19 agencies and for other purposes authorized by the legislature.90.20 (c)In addition to any amounts credited under paragraph 90.21 (a), the state treasurer shall credit $7$10 of each surcharge 90.22 received under subdivision 6 and section 97A.065, subdivision 2, 90.23 to the general fund. 90.24 [EFFECTIVE DATE.]This section is effective July 1, 2003. 90.25 Sec. 12. Laws 2001, First Special Session chapter 8, 90.26 article 4, section 11, is amended to read: 90.27 Sec. 11. BOARD OF PEACE OFFICER 90.28 STANDARDS AND TRAINING 4,692,000 4,724,00090.29 4,604,000 4,633,000 90.30 [PEACE OFFICER TRAINING ACCOUNT.] This 90.31 appropriation is from the peace officer 90.32 training account in the special revenue 90.33 fund. Any receipts credited to the 90.34 peace officer training account in the 90.35 special revenue fund in the first year 90.36 in excess of $4,692,000$4,604,000 must 90.37 be transferred and credited to the 90.38 general fund. Any receipts credited to 90.39 the peace officer training account in 90.40 the special revenue fund in the second 90.41 year in excess of $4,724,000$4,633,000 90.42 must be transferred and credited to the 90.43 general fund. 91.1 Sec. 13. [BOND SALE AUTHORIZATION.] 91.2 To provide the money appropriated in this act from the 91.3 trunk highway bond proceeds fund, the commissioner of finance 91.4 shall sell and issue bonds of the state in an amount up to 91.5 $245,240,000 in the manner, upon the terms, and with the effect 91.6 prescribed by Minnesota Statutes, sections 167.50 to 167.52, and 91.7 by the Minnesota Constitution, article XIV, section 11, at the 91.8 times and in the amount requested by the commissioner of 91.9 transportation. The proceeds of the bonds, except accrued 91.10 interest and any premium received on the sale of the bonds, must 91.11 be credited to a bond proceeds account in the trunk highway fund. 91.12 Sec. 14. [EFFECTIVE DATE.] 91.13 Sections 1 to 10, 12, and 13, are effective the day 91.14 following final enactment. Section 11 is effective July 1, 2003. 91.15 ARTICLE 11 91.16 ENVIRONMENT AND AGRICULTURE APPROPRIATIONS 91.17 Section 1. [ENVIRONMENT, NATURAL RESOURCES, AND AGRICULTURE 91.18 APPROPRIATIONS AND REDUCTIONS.] 91.19 The dollar amounts in the columns under "APPROPRIATIONS" 91.20 are added to or, if shown in parentheses, are subtracted from 91.21 the appropriations in Laws 2001, First Special Session chapter 91.22 2, or other law, to the specified agencies. The appropriations 91.23 are from the general fund or other named fund and are available 91.24 for the fiscal years indicated for each purpose. The figure 91.25 "2002" or "2003" means that the addition to or subtraction from 91.26 the appropriations listed under the figure are for the fiscal 91.27 year ending June 30, 2002, or June 30, 2003, respectively. The 91.28 term "the first year" means the year ending June 30, 2002, and 91.29 the term "the second year" means the year ending June 30, 2003. 91.30 SUMMARY BY FUND 91.31 2002 2003 TOTAL 91.32 APPROPRIATIONS 91.33 General $ (1,198,000)$ (8,197,000)$ (9,395,000) 91.34 Solid Waste 1,030,000 1,041,000 2,071,000 91.35 Environmental -0- 683,000 683,000 91.36 TOTAL $ (168,000)$ (6,473,000)$ (6,641,000) 92.1 CANCELLATIONS $ (505,000)$ -0- $ (505,000) 92.2 APPROPRIATIONS 92.3 Available for the Year 92.4 Ending June 30 92.5 2002 2003 92.6 Sec. 2. POLLUTION CONTROL 92.7 AGENCY 92.8 Subdivision 1. Total 92.9 Appropriation Reductions $ (137,000)$ (137,000) 92.10 Summary by Fund 92.11 General (1,167,000) (1,861,000) 92.12 Solid Waste 1,030,000 1,041,000 92.13 Environmental -0- 683,000 92.14 The amounts reduced from the 92.15 appropriations in Laws 2001, First 92.16 Special Session chapter 2, section 2, 92.17 are specified in the following 92.18 subdivisions. 92.19 Subd. 2. Protection of the Water 92.20 -0- -0- 92.21 Summary by Fund 92.22 General -0- (683,000) 92.23 Environmental -0- 683,000 92.24 The annual base level funding from the 92.25 general fund for protection of the 92.26 water is increased by $40,000 beginning 92.27 in fiscal year 2004. 92.28 Subd. 3. Protection of the Land 92.29 -0- -0- 92.30 Summary by Fund 92.31 General (1,030,000) (1,041,000) 92.32 Solid Waste 1,030,000 1,041,000 92.33 Subd. 4. Administrative Support 92.34 (137,000) (137,000) 92.35 Sec. 3. OFFICE OF 92.36 ENVIRONMENTAL ASSISTANCE -0- (324,000) 92.37 Sec. 4. ZOOLOGICAL BOARD -0- (191,000) 92.38 Sec. 5. NATURAL RESOURCES 92.39 Subdivision 1. Total 92.40 Appropriation Reductions -0- (3,741,000) 92.41 The amounts reduced from the 92.42 appropriations in Laws 2001, First 92.43 Special Session chapter 2, section 5, 92.44 are specified in the following 92.45 subdivisions. 93.1 Subd. 2. Land and Mineral Resources Management 93.2 -0- (50,000) 93.3 $17,000 the second year of this 93.4 reduction is from iron ore cooperative 93.5 research. 93.6 The nonstate match amount required for 93.7 the second year of the iron ore 93.8 cooperative research appropriation in 93.9 Laws 2001, First Special Session 93.10 chapter 2, section 5, subdivision 2, is 93.11 reduced by $10,000. 93.12 $15,000 the second year of this 93.13 reduction is from minerals 93.14 diversification. 93.15 $7,000 the second year of this 93.16 reduction is from minerals cooperative 93.17 environmental research. 93.18 The nonstate match amount required for 93.19 the second year of the minerals 93.20 cooperative environmental research 93.21 appropriation in Laws 2001, First 93.22 Special Session chapter 2, section 5, 93.23 subdivision 2, is reduced by $3,500. 93.24 Subd. 3. Forest Management 93.25 -0- (400,000) 93.26 $150,000 the second year of this 93.27 reduction is from the programs and 93.28 practices on state, county, and private 93.29 lands to regenerate and protect 93.30 Minnesota's white pine. 93.31 The amount available for matching funds 93.32 in the second year of the appropriation 93.33 for white pine regeneration and 93.34 protection in Laws 2001, First Special 93.35 Session chapter 2, section 5, 93.36 subdivision 4, is reduced by $56,000 93.37 for nonindustrial private forest lands, 93.38 and the amount for matching funds for 93.39 county administered lands is reduced by 93.40 $30,000. 93.41 $200,000 the second year of this 93.42 reduction is from the forest resources 93.43 council for implementation of the 93.44 Sustainable Forest Resources Act. 93.45 Subd. 4. Parks and Recreation Management 93.46 -0- (684,000) 93.47 $400,000 the second year of this 93.48 reduction is from a grant to the 93.49 metropolitan council for metropolitan 93.50 area regional parks maintenance and 93.51 operations. In fiscal year 2004, the 93.52 annual base level funding for 93.53 metropolitan area regional parks 93.54 maintenance and operations is increased 93.55 by $200,000 from the 2003 level. 93.56 Subd. 5. Trails and Waterways Management 94.1 -0- (89,000) 94.2 Subd. 6. Fish Management 94.3 -0- (154,000) 94.4 $134,000 the second year of this 94.5 reduction is from the reinvest in 94.6 Minnesota programs of game and fish, 94.7 critical habitat, and wetlands 94.8 established under Minnesota Statutes, 94.9 section 84.95, subdivision 2. 94.10 $20,000 the second year of this 94.11 reduction is from aquatic plant 94.12 restoration. 94.13 Subd. 7. Wildlife Management 94.14 -0- (55,000) 94.15 Subd. 8. Ecological Services 94.16 -0- (22,000) 94.17 This reduction is from the reinvest in 94.18 Minnesota programs of game and fish, 94.19 critical habitat, and wetlands 94.20 established under Minnesota Statutes, 94.21 section 84.95, subdivision 2. 94.22 Subd. 9. Enforcement 94.23 -0- (349,000) 94.24 Subd. 10. Operations Support 94.25 -0- (1,938,000) 94.26 $1,052,000 the second year of this 94.27 reduction is from the operations of 94.28 youth programs. 94.29 Sec. 6. BOARD OF WATER AND 94.30 SOIL RESOURCES -0- (900,000) 94.31 $191,000 the second year of this 94.32 reduction is from natural resources 94.33 block grants to local governments. The 94.34 block grants made from the remaining 94.35 amount of the appropriation may be used 94.36 to implement comprehensive local water 94.37 planning, the Wetland Conservation Act, 94.38 and the Shoreland Management Act. 94.39 $400,000 the second year of this 94.40 reduction is from grants to soil and 94.41 water conservation districts for 94.42 cost-sharing contracts for erosion 94.43 control and water quality management. 94.44 $49,000 the second year of this 94.45 reduction is from grants to watershed 94.46 districts and other local units of 94.47 government in the southern Minnesota 94.48 river basin study area 2 for floodplain 94.49 management. The appropriation for area 94.50 2 floodplain management terminates in 94.51 fiscal year 2004. 94.52 Sec. 7. SCIENCE MUSEUM OF MINNESOTA -0- (32,000) 95.1 Sec. 8. AGRICULTURE 95.2 Subdivision 1. Total 95.3 Appropriation Reductions -0- (871,000) 95.4 The amounts reduced from the 95.5 appropriations in Laws 2001, First 95.6 Special Session chapter 2, are 95.7 specified in the following subdivisions. 95.8 Subd. 2. Protection Service 95.9 -0- (352,000) 95.10 Subd. 3. Agricultural 95.11 Marketing and Development 95.12 -0- (197,000) 95.13 $35,000 the second year of this 95.14 reduction is from beaver damage control 95.15 grants under Minnesota Statutes, 95.16 section 17.110. 95.17 Annual base level funding for 95.18 value-added agricultural product 95.19 processing and marketing grants under 95.20 Minnesota Statutes, section 17.101, 95.21 subdivision 5, is reduced by $80,000 95.22 beginning in fiscal year 2004. 95.23 Subd. 4. Administration and 95.24 Financial Assistance 95.25 -0- (332,000) 95.26 $2,000 the second year of this 95.27 reduction is from family farm security 95.28 interest payment adjustments. 95.29 $3,000 the second year of this 95.30 reduction is from the appropriation for 95.31 the Northern Crops Institute. 95.32 $87,000 the second year of this 95.33 reduction is from grants to agriculture 95.34 information centers. 95.35 $5,000 the second year of this 95.36 reduction is from the appropriation for 95.37 the Seaway Port Authority of Duluth. 95.38 $1,000 the second year of this 95.39 reduction is from a grant to the 95.40 Minnesota Livestock Breeders' 95.41 Association. 95.42 Subd. 5. Cancellations 95.43 By June 30, 2002, the commissioner of 95.44 finance shall cancel $505,000 of the 95.45 unencumbered bond proceeds balance in 95.46 the family farm security program bond 95.47 account established in Minnesota 95.48 Statutes, section 41.61, to the debt 95.49 service fund. 95.50 Sec. 9. BOARD OF ANIMAL HEALTH (31,000) (77,000) 95.51 Sec. 10. AGRICULTURAL UTILIZATION 95.52 RESEARCH INSTITUTE -0- (200,000) 96.1 $10,000 each year of the reduction is 96.2 from the money appropriated for hybrid 96.3 tree management research and 96.4 development. 96.5 Sec. 11. Minnesota Statutes 2000, section 41A.09, 96.6 subdivision 3a, is amended to read: 96.7 Subd. 3a. [PAYMENTS.] (a) The commissioner of agriculture 96.8 shall make cash payments to producers of ethanol, anhydrous 96.9 alcohol, and wet alcohol located in the state. These payments 96.10 shall apply only to ethanol, anhydrous alcohol, and wet alcohol 96.11 fermented in the state and produced at plants that have begun 96.12 production by June 30, 2000. For the purpose of this 96.13 subdivision, an entity that holds a controlling interest in more 96.14 than one ethanol plant is considered a single producer. The 96.15 amount of the payment for each producer's annual production is: 96.16 (1) except as provided in paragraph (b), for each gallon of 96.17 ethanol or anhydrous alcohol produced on or before June 30, 96.18 2000, or ten years after the start of production, whichever is 96.19 later, 2019 cents per gallon; and 96.20 (2) for each gallon produced of wet alcohol on or before 96.21 June 30, 2000, or ten years after the start of production, 96.22 whichever is later, a payment in cents per gallon calculated by 96.23 the formula "alcohol purity in percent divided by five," and 96.24 rounded to the nearest cent per gallon, but not less than 11 96.25 cents per gallon. 96.26 The producer payments for anhydrous alcohol and wet alcohol 96.27 under this section may be paid to either the original producer 96.28 of anhydrous alcohol or wet alcohol or the secondary processor, 96.29 at the option of the original producer, but not to both. 96.30 No payments shall be made for production that occurs after 96.31 June 30, 2010. 96.32 (b) If the level of production at an ethanol plant 96.33 increases due to an increase in the production capacity of the 96.34 plant, the payment under paragraph (a), clause (1), applies to 96.35 the additional increment of production until ten years after the 96.36 increased production began. Once a plant's production capacity 96.37 reaches 15,000,000 gallons per year, no additional increment 97.1 will qualify for the payment. 97.2 (c) The commissioner shall make payments to producers of 97.3 ethanol or wet alcohol in the amount of 1.5 cents for each 97.4 kilowatt hour of electricity generated using closed-loop biomass 97.5 in a cogeneration facility at an ethanol plant located in the 97.6 state. Payments under this paragraph shall be made only for 97.7 electricity generated at cogeneration facilities that begin 97.8 operation by June 30, 2000. The payments apply to electricity 97.9 generated on or before the date ten years after the producer 97.10 first qualifies for payment under this paragraph. Total 97.11 payments under this paragraph in any fiscal year may not exceed 97.12 $750,000. For the purposes of this paragraph: 97.13 (1) "closed-loop biomass" means any organic material from a 97.14 plant that is planted for the purpose of being used to generate 97.15 electricity or for multiple purposes that include being used to 97.16 generate electricity; and 97.17 (2) "cogeneration" means the combined generation of: 97.18 (i) electrical or mechanical power; and 97.19 (ii) steam or forms of useful energy, such as heat, that 97.20 are used for industrial, commercial, heating, or cooling 97.21 purposes. 97.22 (d) Payments under paragraphs (a) and (b) to all producers 97.23 may not exceed $37,000,000$35,150,000 in a fiscal year. Total 97.24 payments under paragraphs (a) and (b) to a producer in a fiscal 97.25 year may not exceed $3,000,000$2,850,000. 97.26 (e) By the last day of October, January, April, and July, 97.27 each producer shall file a claim for payment for ethanol, 97.28 anhydrous alcohol, and wet alcohol production during the 97.29 preceding three calendar months. A producer with more than one 97.30 plant shall file a separate claim for each plant. A producer 97.31 that files a claim under this subdivision shall include a 97.32 statement of the producer's total ethanol, anhydrous alcohol, 97.33 and wet alcohol production in Minnesota during the quarter 97.34 covered by the claim, including anhydrous alcohol and wet 97.35 alcohol produced or received from an outside source. A producer 97.36 shall file a separate claim for any amount claimed under 98.1 paragraph (c). For each claim and statement of total ethanol, 98.2 anhydrous alcohol, and wet alcohol production filed under this 98.3 subdivision, the volume of ethanol, anhydrous alcohol, and wet 98.4 alcohol production or amounts of electricity generated using 98.5 closed-loop biomass must be examined by an independent certified 98.6 public accountant in accordance with standards established by 98.7 the American Institute of Certified Public Accountants. 98.8 (f) Payments shall be made November 15, February 15, May 98.9 15, and August 15. A separate payment shall be made for each 98.10 claim filed. Except as provided in paragraph (j), the total 98.11 quarterly payment to a producer under this paragraph, excluding 98.12 amounts paid under paragraph (c), may not 98.13 exceed $750,000$712,500. 98.14 (g) If the total amount for which all producers are 98.15 eligible in a quarter under paragraph (c) exceeds the amount 98.16 available for payments, the commissioner shall make payments in 98.17 the order in which the plants covered by the claims began 98.18 generating electricity using closed-loop biomass. 98.19 (h) After July 1, 1997, new production capacity is only 98.20 eligible for payment under this subdivision if the commissioner 98.21 receives: 98.22 (1) an application for approval of the new production 98.23 capacity; 98.24 (2) an appropriate letter of long-term financial commitment 98.25 for construction of the new production capacity; and 98.26 (3) copies of all necessary permits for construction of the 98.27 new production capacity. 98.28 The commissioner may approve new production capacity based 98.29 on the order in which the applications are received. 98.30 (i) The commissioner may not approve any new production 98.31 capacity after July 1, 1998, except that a producer with an 98.32 approved production capacity of at least 12,000,000 gallons per 98.33 year but less than 15,000,000 gallons per year prior to July 1, 98.34 1998, is approved for 15,000,000 gallons of production capacity. 98.35 (j) Notwithstanding the quarterly payment limits of 98.36 paragraph (f), the commissioner shall make an additional payment 99.1 in the eighth quarter of each fiscal biennium to ethanol 99.2 producers for the lesser of: (1) 2019 cents per gallon of 99.3 production in the eighth quarter of the biennium that is greater 99.4 than 3,750,000 gallons; or (2) the total amount of payments lost 99.5 during the first seven quarters of the biennium due to plant 99.6 outages, repair, or major maintenance. Total payments to an 99.7 ethanol producer in a fiscal biennium, including any payment 99.8 under this paragraph, must not exceed the total amount the 99.9 producer is eligible to receive based on the producer's approved 99.10 production capacity. The provisions of this paragraph apply 99.11 only to production losses that occur in quarters beginning after 99.12 December 31, 1999. 99.13 (k) For the purposes of this subdivision "new production 99.14 capacity" means annual ethanol production capacity that was not 99.15 allowed under a permit issued by the pollution control agency 99.16 prior to July 1, 1997, or for which construction did not begin 99.17 prior to July 1, 1997. 99.18 [EFFECTIVE DATE.]This section is effective for payments 99.19 for ethanol production after July 1, 2003. 99.20 Sec. 12. Minnesota Statutes 2000, section 85A.02, 99.21 subdivision 17, is amended to read: 99.22 Subd. 17. [ADDITIONAL POWERS.] The board may establish a 99.23 schedule of charges for admission to or the use of the Minnesota 99.24 zoological garden or any related facility. Notwithstanding 99.25 section 16A.1283, legislative approval is not required for the 99.26 board to establish a schedule of charges for admission or use of 99.27 the Minnesota zoological garden or related facilities. The 99.28 board shall have a policy admitting elementary school children 99.29 at no charge when they are part of an organized school 99.30 activity. The Minnesota zoological garden will offer free 99.31 admission throughout the year to economically disadvantaged 99.32 Minnesota citizens equal to ten percent of the average annual 99.33 attendance. However, the zoo may charge at any time for 99.34 parking, special services, and for admission to special 99.35 facilities for the education, entertainment, or convenience of 99.36 visitors. The board may provide for the purchase, reproduction, 100.1 and sale of gifts, souvenirs, publications, informational 100.2 materials, food and beverages, and grant concessions for the 100.3 sale of these items. 100.4 Sec. 13. Minnesota Statutes 2001 Supplement, section 100.5 93.2235, subdivision 1, is amended to read: 100.6 Subdivision 1. [COMMISSIONER.] The commissioner shall 100.7 establish a program to award grants to taconite mining companies 100.8 for: 100.9 (1) taconite pellet product improvements; 100.10 (2) value-added production of taconite iron ore; or 100.11 (3) cost-savings production improvements at Minnesota 100.12 taconite plants. 100.13 An amount equal to the sum of money transferred to the 100.14 general fund under section 93.223, subdivision 1, reduced by 100.15 $100,000, is annually appropriated from the general fund to the 100.16 commissioner for the purposes of this section. 100.17 [EFFECTIVE DATE.]This section is effective July 1, 2002. 100.18 Sec. 14. [INCREASE TO WATER QUALITY PERMIT FEES.] 100.19 (a) The pollution control agency shall collect water 100.20 quality permit application and annual fees that reflect the fees 100.21 in Minnesota Rules, part 7002.0310, increased to the amounts 100.22 described in paragraphs (b) to (g). 100.23 (b) The application fee for individual permits, general 100.24 permits, and general industrial stormwater permits is $150. 100.25 (c) The annual fees for individual National Pollutant 100.26 Discharge Elimination System permits for major municipal 100.27 facilities are as follows: 100.28 Design Flow in 100.29 Million Gallons Per Day Annual Fee 100.31 50 and over $168,750 100.32 20 to 49.99 $38,750 100.33 5 to 19.99 $13,750 100.34 Up to 4.99 $5,625 100.35 (d) The annual fees for individual National Pollutant 100.36 Discharge Elimination System permits for major nonmunicipal 100.37 facilities are as follows: 100.38 Design Flow in 100.39 Million Gallons Per Day Annual Fee 101.1 20 to 49.99 $42,500 101.2 5 to 19.99 $17,500 101.3 Up to 4.99 $8,125 101.4 Cooling or mine pit 101.5 dewatering (any flow) $16,250 101.6 (e) The annual fees for individual National Pollutant 101.7 Discharge Elimination System and State Disposal System permits 101.8 for nonmajor municipal facilities with design flows greater than 101.9 0.100 million gallons per day are $1,310. 101.10 (f) The annual fees for general industrial stormwater 101.11 permits are $280. 101.12 (g) The annual fees for general National Pollutant 101.13 Discharge Elimination System and State Disposal System permits 101.14 are $345. 101.15 (h) The application and annual fees are not increased for 101.16 general construction stormwater permits and sanitary sewer 101.17 extension permits. The annual fees are not increased for 101.18 National Pollutant Discharge Elimination System and State 101.19 Disposal System permits regulating municipal nonmajors with 101.20 facility design flow of 0 to .100, sewage sludge landspreading 101.21 facilities, and nonmajor nonmunicipal facilities. 101.22 (i) The increased permit fees are effective July 1, 2002. 101.23 The agency shall adopt amended water quality permit fee rules 101.24 incorporating the permit fee increases in this subdivision under 101.25 Minnesota Statutes, section 14.389. The pollution control 101.26 agency shall begin collecting the increased permit fees on July 101.27 1, 2002, even if the rule adoption process has not been 101.28 initiated or completed. Notwithstanding Minnesota Statutes, 101.29 section 14.18, subdivision 2, the increased permit fees 101.30 reflecting the permit fee increases in this section and the rule 101.31 amendments incorporating those permit fee increases do not 101.32 require further legislative approval. 101.33 Sec. 15. [REPEALER.] 101.34 (a) Minnesota Statutes 2000, sections 103B.3369, 101.35 subdivisions 7 and 8; 103B.351; 103F.461; and 103G.2373, are 101.36 repealed. 101.37 (b) Minnesota Rules, parts 8405.0100; 8405.0110; 8405.0120; 102.1 8405.0130; 8405.0140; 8405.0150; 8405.0160; 8405.0170; 102.2 8405.0180; 8405.0190; 8405.0200; 8405.0210; 8405.0220; and 102.3 8405.0230, are repealed. 102.4 Sec. 16. [EFFECTIVE DATE.] 102.5 Except as otherwise specified, this article is effective 102.6 the day following final enactment. 102.7 ARTICLE 12 102.8 STATE GOVERNMENT APPROPRIATIONS 102.9 Section 1. [STATE GOVERNMENT APPROPRIATIONS.] 102.10 The dollar amounts in the columns under "APPROPRIATIONS" 102.11 are added to or, if shown in parentheses, are subtracted from 102.12 the appropriations in Laws 2001, First Special Session chapters 102.13 4, 8, and 10, or other law to the specified agencies. The 102.14 appropriations are from the general fund or other named fund and 102.15 are available for the fiscal years indicated for each purpose. 102.16 The figure "2002" or "2003" means that the addition to or 102.17 subtraction from the appropriations listed under the figure are 102.18 for the fiscal year ending June 30, 2002, or June 30, 2003, 102.19 respectively. 102.20 SUMMARY BY FUND 102.21 2002 2003 TOTAL 102.22 APPROPRIATIONS 102.23 General $ 14,945,000 $ (23,520,000)$ (8,575,000) 102.24 Special Revenue -0- 2,382,000 2,382,000 102.25 CANCELLATIONS (10,000,000) -0- (10,000,000) 102.26 APPROPRIATIONS 102.27 Available for the Year 102.28 Ending June 30 102.29 2002 2003 102.30 Sec. 2. LEGISLATURE 102.31 Subdivision 1. Total 102.32 Appropriation -0- (2,060,000) 102.33 Subd. 2. Senate 102.34 -0- (688,000) 102.35 Subd. 3. House of Representatives 102.36 -0- (910,000) 102.37 Subd. 4. Legislative Coordinating Commission 102.38 -0- (462,000) 103.1 $164,000 is a reduction for the office 103.2 of the legislative auditor. 103.3 Sec. 3. SECRETARY OF 103.4 STATE -0- (149,000) 103.5 Budget reductions shall not come from 103.6 revenue producing programs or elections. 103.7 Sec. 4. GOVERNOR'S OFFICE (141,000) (677,000) 103.8 No funding may be used for the 103.9 operation of the Washington, D.C., 103.10 office of the state of Minnesota. 103.11 Sec. 5. STATE AUDITOR -0- (515,000) 103.12 Sec. 6. STATE TREASURER -0- (30,000) 103.13 Sec. 7. ATTORNEY GENERAL -0- (822,000) 103.14 The attorney general, in consultation 103.15 with the affected agencies, shall 103.16 prepare a plan for ending partnership 103.17 agreements with agencies and shall 103.18 submit the plan to the legislature by 103.19 November 15, 2002. 103.20 Sec. 8. BOARD OF GOVERNMENT INNOVATION 103.21 COOPERATION -0- (26,000) 103.22 Sec. 9. DIRECTIVE 103.23 TO AGENCIES 103.24 Executive agencies covered by this 103.25 article must impose spending cuts 103.26 across the board and may make no 103.27 further cuts to pass-through grants. 103.28 By November 15, 2002, the commissioner 103.29 of finance shall report to the 103.30 legislature on cuts agencies have made. 103.31 Sec. 10. OFFICE OF STRATEGIC 103.32 AND LONG-RANGE PLANNING -0- (260,000) 103.33 Sec. 11. ADMINISTRATION 103.34 Subdivision 1. Total 103.35 Appropriation (74,000) 368,000 103.36 Summary by Fund 103.37 General (74,000) (2,014,000) 103.38 Special Revenue -0- 2,382,000 103.39 Subd. 2. Operations Management 103.40 -0- (497,000) 103.41 Subd. 3. Office of Technology 103.42 -0- (202,000) 103.43 Subd. 4. Intertechnologies Group 103.44 General Fund 103.45 -0- 1,961,000 103.46 Summary by Fund 103.47 General -0- (421,000) 104.1 Special Revenue -0- 2,382,000 104.2 In fiscal year 2003 an increase of 104.3 $2,382,000 is appropriated to the 104.4 commissioner of administration from the 104.5 911 emergency telephone service account 104.6 in the special revenue fund for 104.7 recurring costs of emergency telephone 104.8 service. 104.9 Subd. 5. Management Services 104.10 -0- (625,000) 104.11 Base funding may not be reduced for the 104.12 information policy analysis program. 104.13 Professional and technical contracts 104.14 are reduced by $430,000. 104.15 Subd. 6. Facilities Management 104.16 -0- (202,000) 104.17 Subd. 7. Public Broadcasting 104.18 -0- (67,000) 104.19 The base-level funding for the 104.20 2004-2005 biennium is reduced by 104.21 $133,000 each fiscal year. This 104.22 reduction must be applied on a 104.23 proportional basis. 104.24 Subd. 8. Fiscal Agents 104.25 (74,000) -0- 104.26 Voting equipment grants are reduced by 104.27 $74,000 in fiscal year 2002. 104.28 Sec. 12. FINANCE 104.29 Subdivision 1. Total Appropriation 104.30 Reductions (1,236,000) (3,639,000) 104.31 Subd. 2. State Financial Management 104.32 -0- (1,045,000) 104.33 Subd. 3. Information and Management 104.34 Services 104.35 (1,236,000) (2,594,000) 104.36 $660,000 of the reduction for 104.37 information and management services is 104.38 a onetime reduction. 104.39 Sec. 13. EMPLOYEE 104.40 RELATIONS -0- (1,269,000) 104.41 Sec. 14. MINNESOTA HUMANITIES 104.42 COMMISSION -0- (41,000) 104.43 Sec. 15. BOARD OF THE ARTS 104.44 Subdivision 1. Total 104.45 Appropriation -0- (526,000) 104.46 Subd. 2. Operations and Services 104.47 -0- (43,000) 105.1 Subd. 3. Grants Programs 105.2 -0- (342,000) 105.3 Subd. 4. Regional Arts Councils 105.4 -0- (141,000) 105.5 Sec. 16. MILITARY AFFAIRS -0- (697,000) 105.6 Sec. 17. VETERANS 105.7 AFFAIRS -0- (180,000) 105.8 Sec. 18. MINNESOTA 105.9 STATE RETIREMENT SYSTEM -0- (2,004,000) 105.10 $2,004,000 of the appropriation 105.11 reduction the second year is to 105.12 eliminate the open appropriation for 105.13 judges not participating in the 105.14 postretirement fund, effective July 1, 105.15 2002. 105.16 Sec. 19. CAMPAIGN FINANCE 105.17 AND PUBLIC DISCLOSURE BOARD -0- (35,000) 105.18 Sec. 20. INVESTMENT 105.19 BOARD -0- (127,000) 105.20 Sec. 21. CAPITOL AREA ARCHITECTURAL 105.21 AREA PLANNING BOARD -0- (16,000) 105.22 Sec. 22. LAWFUL GAMBLING CONTROL 105.23 BOARD -0- (126,000) 105.24 Sec. 23. MINNESOTA RACING 105.25 COMMISSION -0- (21,000) 105.26 Sec. 24. TORT CLAIMS -0- (114,000) 105.27 Sec. 25. CONTINGENT ACCOUNTS (2,005,000) (3,000,000) 105.28 The base funding for contingent 105.29 accounts is $646,000 each year for 105.30 fiscal years 2004 and 2005. 105.31 Sec. 26. TRADE AND ECONOMIC 105.32 DEVELOPMENT 105.33 Subdivision 1. Total 105.34 Appropriation 18,396,000 (2,913,000) 105.35 Subd. 2. Business and 105.36 Community Development 105.37 -0- (685,000) 105.38 Subd. 3. Minnesota Trade 105.39 Office 105.40 -0- (442,000) 105.41 All special revenue fund accounts for 105.42 the World Trade Conference Center in 105.43 the Trade Office shall cancel and 105.44 transfer to the general fund. 105.45 Subd. 4. Workforce 105.46 Development 105.47 -0- (73,000) 105.48 This is a onetime appropriation and is 105.49 not added to the base. 106.1 Subd. 5. Office of Tourism 106.2 -0- (982,000) 106.3 Subd. 6. Information and 106.4 Analysis 106.5 -0- (109,000) 106.6 Subd. 7. Administrative 106.7 Support 106.8 -0- (602,000) 106.9 Subd. 8. Film Board Grants 106.10 Program 106.11 -0- (20,000) 106.12 Subd. 9. Dislocated Worker Program 106.13 18,396,000 -0- 106.14 This appropriation is from the general 106.15 fund to the commissioner of finance for 106.16 transfer to the workforce development 106.17 fund for the dislocated worker 106.18 program. This is a onetime 106.19 appropriation and is not added to the 106.20 base. This appropriation is available 106.21 until expended. 106.22 Subd. 10. Biomedical Innovation and 106.23 Commercialization Initiative 106.24 The Laws 2001, First Special Session 106.25 chapter 5, article 19, section 2, 106.26 appropriation of $10,000,000 for the 106.27 biomedical innovation and 106.28 commercialization initiative is 106.29 canceled to the general fund. 106.30 Sec. 27. MINNESOTA TECHNOLOGY, 106.31 INC. -0- (305,000) 106.32 Sec. 28. ECONOMIC SECURITY 106.33 Subdivision 1. Total 106.34 Appropriation -0- (1,116,000) 106.35 Subd. 2. Workforce Services 106.36 -0- (455,000) 106.37 Subd. 3. Workforce Rehabilitation 106.38 Services 106.39 -0- (408,000) 106.40 State appropriations used to match 106.41 federal vocational rehabilitation 106.42 services money and federal money for 106.43 state services for the blind may not be 106.44 reduced. 106.45 Subd. 4. Workforce Services for 106.46 the Blind 106.47 -0- (253,000) 106.48 Base funding for the displaced 106.49 homemakers program may not be reduced. 106.50 The commissioner shall use available 106.51 federal administrative money, on a 106.52 proportional basis, to fund programs 107.1 being cut as a result of this act. 107.2 Sec. 29. HOUSING FINANCE 107.3 AGENCY -0- (523,000) 107.4 Sec. 30. HUMAN RIGHTS -0- (207,000) 107.5 Sec. 31. JUDICIAL STANDARDS BOARD -0- (13,000) 107.6 Sec. 32. UNIFORM LAWS COMMISSION 5,000 5,000 107.7 Sec. 33. Minnesota Statutes 2000, section 15.0591, 107.8 subdivision 2, is amended to read: 107.9 Subd. 2. [BODIES AFFECTED.] A member meeting the 107.10 qualifications in subdivision 1 must be appointed to the 107.11 following boards, commissions, advisory councils, task forces, 107.12 or committees: 107.13 (1) advisory council on battered women and domestic abuse; 107.14 (2) advisory task force on the use of state facilities; 107.15 (3) alcohol and other drug abuse advisory council; 107.16 (4) board of examiners for nursing home administrators; 107.17 (5) board on aging; 107.18 (6) chiropractic examiners board; 107.19 (7) consumer advisory council on vocational rehabilitation; 107.20 (8) council on disability; 107.21 (9) council on affairs of Chicano/Latino people; 107.22 (10) council on Black Minnesotans; 107.23 (11) dentistry board; 107.24 (12) department of economic security advisory council; 107.25 (13) higher education services office; 107.26 (14) housing finance agency; 107.27 (15) Indian advisory council on chemical dependency; 107.28 (16) medical practice board; 107.29 (17) medical policy directional task force on mental 107.30 health; 107.31 (18) Minnesota employment and economic development task 107.32 force; 107.33 (19) Minnesota office of citizenship and volunteer services107.34 advisory committee;107.35 (20)Minnesota state arts board; 107.36 (21)(20) nursing board; 108.1 (22)(21) optometry board; 108.2 (23)(22) pharmacy board; 108.3 (24)(23) board of physical therapy; 108.4 (25)(24) podiatry board; 108.5 (26)(25) psychology board; 108.6 (27)(26) veterans advisory committee. 108.7 Sec. 34. Minnesota Statutes 2000, section 16A.40, is 108.8 amended to read: 108.9 16A.40 [WARRANTS AND ELECTRONIC FUND TRANSFERS.] 108.10 Money must not be paid out of the state treasury except 108.11 upon the warrant of the commissioner or an electronic fund 108.12 transfer approved by the commissioner. Warrants must be drawn 108.13 on printed blanks that are in numerical order. The commissioner 108.14 shall enter, in numerical order in a warrant register, the 108.15 number, amount, date, and payee for every warrant issued. 108.16 Payees receiving more than ten payments or $10,000 per year 108.17 must supply the commissioner with their bank routing information 108.18 to enable the payments to be made through an electronic fund 108.19 transfer. 108.20 Sec. 35. Minnesota Statutes 2001 Supplement, section 108.21 16B.65, subdivision 1, is amended to read: 108.22 Subdivision 1. [DESIGNATION.] By January 1, 2002, each 108.23 municipality shall designate a building official to administer 108.24 the code. A municipality may designate no more than one 108.25 building official responsible for code administration defined by 108.26 each certification category established in rule. Two or more 108.27 municipalities may combine in the designation of a building 108.28 official for the purpose of administering the provisions of the 108.29 code within their communities. In those municipalities for 108.30 which no building officials have been designated, the state 108.31 building official may use whichever state employees are 108.32 necessary to perform the duties of the building official until 108.33 the municipality makes a temporary or permanent designation. 108.34 All costs incurred by virtue of these services rendered by state 108.35 employees must be borne by the involved municipality and 108.36 receipts arising from these services must be paid into the state 109.1 treasury and credited to the generalspecial revenue fund. 109.2 Sec. 36. Minnesota Statutes 2001 Supplement, section 109.3 16B.65, subdivision 5a, is amended to read: 109.4 Subd. 5a. [ADMINISTRATIVE ACTION AND PENALTIES.] The 109.5 commissioner shall, by rule, establish a graduated schedule of 109.6 administrative actions for violations of sections 16B.59 to 109.7 16B.75 and rules adopted under those sections. The schedule 109.8 must be based on and reflect the culpability, frequency, and 109.9 severity of the violator's actions. The commissioner may impose 109.10 a penalty from the schedule on a certification holder for a 109.11 violation of sections 16B.59 to 16B.75 and rules adopted under 109.12 those sections. The penalty is in addition to any criminal 109.13 penalty imposed for the same violation. Administrative monetary 109.14 penalties imposed by the commissioner must be paid to the 109.15 generalspecial revenue fund. 109.16 Sec. 37. Minnesota Statutes 2000, section 124D.385, 109.17 subdivision 2, is amended to read: 109.18 Subd. 2. [MEMBERSHIP.] (a) The commission consists of 18 109.19 voting members. Voting members shall include the commissioner 109.20 of children, families, and learning, a representative of the 109.21 children's cabinet elected by the members of the children's 109.22 cabinet, and the executive director of the higher education 109.23 services office. 109.24 (b) The governor shall appoint 15 additional voting 109.25 members. Eight of the voting members appointed by the governor 109.26 shall include a representative of public or nonprofit 109.27 organizations experienced in youth employment and training, 109.28 organizations promoting adult service and volunteerism, 109.29 community-based service agencies or organizations, local public 109.30 or private sector labor unions, local governments, business, a 109.31 national service program, and Indian tribes. The remaining 109.32 seven voting members appointed by the governor shall include an 109.33 individual with expertise in the educational, training, and 109.34 development needs of youth, particularly disadvantaged youth; a 109.35 youth or young adult who is a participant in a higher 109.36 education-based service-learning program; a disabled individual 110.1 representing persons with disabilities; a youth who is 110.2 out-of-school or disadvantaged; an educator of primary or 110.3 secondary students; an educator from a higher education 110.4 institution; and an individual between the ages of 16 and 25 who 110.5 is a participant or supervisor in a youth service program. 110.6 (c) The governor shall appoint up to five ex officio 110.7 nonvoting members from among the following agencies or 110.8 organizations: the departments of economic security, natural 110.9 resources, human services, health, corrections, agriculture, 110.10 public safety, finance, and labor and industry, the Minnesota110.11 office of citizenship and volunteer services,the housing 110.12 finance agency, and Minnesota Technology, Inc. A representative 110.13 of the corporation for national and community service shall also 110.14 serve as an ex officio nonvoting member. 110.15 (d) Voting and ex officio nonvoting members may appoint 110.16 designees to act on their behalf. The number of voting members 110.17 who are state employees shall not exceed 25 percent. 110.18 (e) The governor shall ensure that, to the extent possible, 110.19 the membership of the commission is balanced according to 110.20 geography, race, ethnicity, age, and gender. The speaker of the 110.21 house and the majority leader of the senate shall each appoint 110.22 two legislators to be nonvoting members of the commission. 110.23 Sec. 38. Minnesota Statutes 2000, section 256.9753, 110.24 subdivision 3, is amended to read: 110.25 Subd. 3. [EXPENDITURES.] The board shall consult with 110.26 the office of citizenship and volunteer servicescommissioner of 110.27 human services, prior to expending money available for the 110.28 retired senior volunteer programs. Expenditures shall be made 110.29 (1) to strengthen and expand existing retired senior volunteer 110.30 programs, and (2) to encourage the development of new programs 110.31 in areas in the state where these programs do not exist. Grants 110.32 shall be made consistent with applicable federal guidelines. 110.33 Sec. 39. Minnesota Statutes 2000, section 357.021, 110.34 subdivision 2, is amended to read: 110.35 Subd. 2. [FEE AMOUNTS.] The fees to be charged and 110.36 collected by the court administrator shall be as follows: 111.1 (1) In every civil action or proceeding in said court, 111.2 including any case arising under the tax laws of the state that 111.3 could be transferred or appealed to the tax court, the 111.4 plaintiff, petitioner, or other moving party shall pay, when the 111.5 first paper is filed for that party in said action, a fee of 111.6 $122$135. 111.7 The defendant or other adverse or intervening party, or any 111.8 one or more of several defendants or other adverse or 111.9 intervening parties appearing separately from the others, shall 111.10 pay, when the first paper is filed for that party in said 111.11 action, a fee of $122$135. 111.12 The party requesting a trial by jury shall pay $75. 111.13 The fees above stated shall be the full trial fee 111.14 chargeable to said parties irrespective of whether trial be to 111.15 the court alone, to the court and jury, or disposed of without 111.16 trial, and shall include the entry of judgment in the action, 111.17 but does not include copies or certified copies of any papers so 111.18 filed or proceedings under chapter 103E, except the provisions 111.19 therein as to appeals. 111.20 (2) Certified copy of any instrument from a civil or 111.21 criminal proceeding, $10, and $5 for an uncertified copy. 111.22 (3) Issuing a subpoena, $3 for each name. 111.23 (4) Issuing an execution and filing the return thereof; 111.24 issuing a writ of attachment, injunction, habeas corpus, 111.25 mandamus, quo warranto, certiorari, or other writs not 111.26 specifically mentioned, $10. 111.27 (5) Issuing a transcript of judgment, or for filing and 111.28 docketing a transcript of judgment from another court, $7.50. 111.29 (6) Filing and entering a satisfaction of judgment, partial 111.30 satisfaction, or assignment of judgment, $5. 111.31 (7) Certificate as to existence or nonexistence of 111.32 judgments docketed, $5 for each name certified to. 111.33 (8) Filing and indexing trade name; or recording basic 111.34 science certificate; or recording certificate of physicians, 111.35 osteopaths, chiropractors, veterinarians, or optometrists, $5. 111.36 (9) For the filing of each partial, final, or annual 112.1 account in all trusteeships, $10. 112.2 (10) For the deposit of a will, $5. 112.3 (11) For recording notary commission, $25, of which, 112.4 notwithstanding subdivision 1a, paragraph (b), $20 must be 112.5 forwarded to the state treasurer to be deposited in the state 112.6 treasury and credited to the general fund. 112.7 (12) Filing a motion or response to a motion for 112.8 modification of child support, a fee fixed by rule or order of 112.9 the supreme court. 112.10 (13) All other services required by law for which no fee is 112.11 provided, such fee as compares favorably with those herein 112.12 provided, or such as may be fixed by rule or order of the court. 112.13 (14) In addition to any other filing fees under this 112.14 chapter, a surcharge in the amount of $75 must be assessed in 112.15 accordance with section 259.52, subdivision 14, for each 112.16 adoption petition filed in district court to fund the fathers' 112.17 adoption registry under section 259.52. 112.18 The fees in clauses (3) and (4) need not be paid by a 112.19 public authority or the party the public authority represents. 112.20 Sec. 40. Minnesota Statutes 2000, section 490.123, is 112.21 amended by adding a subdivision to read: 112.22 Subd. 1e. [PARTICIPATION IN THE POSTRETIREMENT INVESTMENT 112.23 FUND.] Notwithstanding any laws to the contrary, all judges and 112.24 survivors receiving a benefit under this chapter shall receive 112.25 that benefit from the postretirement investment fund. Required 112.26 reserves for those judges not receiving benefits from the 112.27 postretirement investment fund as of July 1, 2002, shall be 112.28 transferred to the postretirement investment fund to pay future 112.29 benefits by July 31, 2002. 112.30 Sec. 41. Laws 1998, chapter 404, section 23, subdivision 112.31 6, is amended to read: 112.32 Subd. 6. St. Paul RiverCentre 112.33 Arena 65,000,000 112.34 This appropriation is from the general 112.35 fund to the commissioner of finance for 112.36 a loan to the city of St. Paul to 112.37 demolish the existing St. Paul 112.38 RiverCentre Arena and to design, 112.39 construct, furnish, and equip a new 113.1 arena. This appropriation is not 113.2 available until the lessee to whom the 113.3 city has leased the arena has agreed to 113.4 make rental or other payments to the 113.5 city under the terms set forth in this 113.6 subdivision. The loan is repayable 113.7 solely from and secured by the payments 113.8 made to the city by the lessee. The 113.9 loan is not a public debt and the full 113.10 faith, credit, and taxing powers of the 113.11 city are not pledged for its repayment. 113.12 (a) $48,000,000 of the loan must be 113.13 repaid to the commissioner, without 113.14 interest, within 20 years from the date 113.15 of substantial completion of the arena 113.16 in accordance with the following 113.17 schedule: 113.18 (1) no repayments are due in the first 113.19 two years from the date of substantial 113.20 completion; 113.21 (2) in each of the years three to five, 113.22 the lessee must pay $1,250,000; 113.23 (3) in each of the years six to ten, 113.24 the lessee must pay $1,500,000; 113.25 (4) in each of the years 11 to 13, the 113.26 lessee must pay $2,000,000; 113.27 (5) in year 14, the lessee must pay 113.28 $3,000,000; 113.29 (6) in year 15, the lessee must pay 113.30 $4,000,000; and 113.31 (7) in each of the years 16 to 20, the 113.32 lessee must pay $4,750,000. 113.33 (b) The commissioner must deposit the 113.34 repayments in the state treasury and 113.35 credit them to the youth activities113.36 account, which is hereby created in the113.37 special revenue fund. Money in the113.38 youth activities account is available113.39 for expenditure as appropriated by113.40 lawgeneral fund. 113.41 (c) The loan may not be made until the 113.42 commissioner has entered into an 113.43 agreement with the city of St. Paul 113.44 identifying the rental or other 113.45 payments that will be made and 113.46 establishing the dates on and the 113.47 amounts in which the payments will be 113.48 made to the city and by the city to the 113.49 commissioner. The payments may include 113.50 operating revenues and additional 113.51 payments to be made by the lessee under 113.52 agreements to be negotiated between the 113.53 commissioner, the city, and the 113.54 lessee. Those agreements may include, 113.55 but are not limited to, an agreement 113.56 whereby the lessee pledges to provide 113.57 each year a letter of credit sufficient 113.58 to guarantee the payment of the amount 113.59 due for the next succeeding year; an 113.60 agreement whereby the lessee agrees to 113.61 maintain a net worth, certified each 114.1 year by a financial institution or 114.2 accounting firm satisfactory to the 114.3 commissioner, that is greater than the 114.4 balance due under the payment schedule 114.5 in paragraph (a); and any other 114.6 agreements the commissioner may deem 114.7 necessary to ensure that the payments 114.8 are made as scheduled. 114.9 (d) The agreements must provide that 114.10 the failure of the lessee to make a 114.11 payment due to the city under the 114.12 agreement is an event of default under 114.13 the lease between the city and the 114.14 lessee and that the state is entitled 114.15 to enforce the remedies of the lessor 114.16 under the lease in the event of 114.17 default. Those remedies must include, 114.18 but need not be limited to, the 114.19 obligation of the lessee to pay the 114.20 balance due for the remainder of the 114.21 payment schedule in the event the 114.22 lessee ceases to operate a National 114.23 Hockey League team in the arena. 114.24 (e) By January 1, 1999, the 114.25 commissioner shall report to the chair 114.26 of the senate committee on state 114.27 government finance and the chair of the 114.28 house committee on ways and means the 114.29 terms of an agreement between the 114.30 lessee and the amateur sports 114.31 commission whereby the lessee agrees to 114.32 make the facilities of the arena 114.33 available to the commission on terms 114.34 satisfactory to the commission for 114.35 amateur sports activities consistent 114.36 with the purposes of Minnesota 114.37 Statutes, chapter 240A, each year 114.38 during the time the loan is 114.39 outstanding. The amateur sports 114.40 commission must negotiate in good faith 114.41 and may be required to pay no more than 114.42 actual out-of-pocket expenses for the 114.43 time it uses the arena. The agreement 114.44 may not become effective before 114.45 February 1, 1999. During any calendar 114.46 year after 1999 that an agreement under 114.47 this paragraph is not in effect and a 114.48 payment is due under the schedule, the 114.49 lessee must pay to the commissioner a 114.50 penalty of $750,000 for that year. If 114.51 the amateur sports commission has not 114.52 negotiated in good faith, no penalty is 114.53 due. 114.54 Sec. 42. Laws 2001, First Special Session chapter 4, 114.55 article 3, section 1, is amended to read: 114.56 Section 1. [DEPARTMENT OF ECONOMIC SECURITY ABOLISHED.] 114.57 The department of economic security is abolished. 114.58 [EFFECTIVE DATE.]This section is effective July 1, 114.59 20022003. 114.60 Sec. 43. Laws 2001, First Special Session chapter 4, 114.61 article 3, section 2, subdivision 1, is amended to read: 115.1 Subdivision 1. [TO DEPARTMENT OF TRADE AND ECONOMIC 115.2 DEVELOPMENT.] The responsibilities of the department of economic 115.3 security performed by its workforce services unit for employment 115.4 transition services, youth services, welfare-to-work services, 115.5 and workforce exchange services are transferred to the 115.6 department of trade and economic development. 115.7 [EFFECTIVE DATE.]This subdivision is effective July 1, 115.8 20022003. 115.9 Sec. 44. Laws 2001, First Special Session chapter 4, 115.10 article 3, section 3, is amended to read: 115.11 Sec. 3. [ORGANIZATION OF DEPARTMENT OF TRADE AND ECONOMIC 115.12 DEVELOPMENT.] 115.13 The department of trade and economic development shall have 115.14 a division of economic development consisting of business and 115.15 community development, the Minnesota trade office, tourism 115.16 division, information and analysis division, and administrative 115.17 support. The job skills partnership program shall be housed in 115.18 the department and shall have a policy, research, and evaluation 115.19 unit. The job skills partnership board shall provide 115.20 targeted-worker services to include the dislocated worker 115.21 program and welfare-to-work services formerly located in the 115.22 department of economic security. The board shall have a unit 115.23 providing special programs under a workforce transition services 115.24 unit. 115.25 [EFFECTIVE DATE.]This section is effective July 1, 115.26 20022003. 115.27 Sec. 45. [REORGANIZATION POWERS SUSPENDED.] 115.28 Notwithstanding Minnesota Statutes, section 16B.37, the 115.29 commissioner of administration may not issue a reorganization 115.30 order affecting the department of economic security until July 115.31 1, 2003. 115.32 Sec. 46. [REPEALER.] 115.33 Minnesota Statutes 2001 Supplement, section 4.50, is 115.34 repealed. Minnesota Statutes 2000, section 490.123, subdivision 115.35 1d, is repealed effective June 30, 2002. 115.36 Sec. 47. [EFFECTIVE DATE.] 116.1 Except as otherwise provided in section 46, this article is 116.2 effective the day following final enactment. 116.3 ARTICLE 13 116.4 CANCELLATIONS; TRANSFERS; SALES TAX COLLECTIONS 116.5 Section 1. Minnesota Statutes 2000, section 16A.152, 116.6 subdivision 1, is amended to read: 116.7 Subdivision 1. [CASH FLOW ACCOUNT ESTABLISHED.] (a) A cash 116.8 flow account is created in the general fund in the state 116.9 treasury. Beginning July 1, 2003, the commissioner of finance 116.10 shall restrict part or all of the balance before reserves in the 116.11 general fund as may be necessary to fund the cash flow 116.12 account as provided by law, up to $350,000,000. 116.13 (b) The commissioner of finance shall transfer the amount116.14 necessary to bring the total amount of the cash flow account to116.15 $350,000,000 on July 1, 1995.The amounts restricted shall 116.16 remain in the account until drawn down and used to meet cash 116.17 flow deficiencies resulting from uneven distribution of revenue 116.18 collections and required expenditures during a fiscal year. 116.19 Sec. 2. Minnesota Statutes 2001 Supplement, section 116.20 16A.152, subdivision 1a, is amended to read: 116.21 Subd. 1a. [BUDGET RESERVE.] A budget reserve account of116.22 $653,000,000is created in the general fund in the state 116.23 treasury. The commissioner of finance shall transfer to the 116.24 budget reserve account on July 1 of each odd-numbered year any 116.25 amounts specifically appropriated by law to the budget reserve. 116.26 Sec. 3. Minnesota Statutes 2001 Supplement, section 116.27 16A.152, subdivision 2, is amended to read: 116.28 Subd. 2. [ADDITIONAL REVENUES; PRIORITY.] If on the basis 116.29 of a forecast of general fund revenues and expenditures, the 116.30 commissioner of finance determines that there will be a positive 116.31 unrestricted budgetary general fund balance at the close of the 116.32 biennium, the commissioner of finance must allocate money to the 116.33 budget reserve until the total amount in the account equals the116.34 amount set in this section$653,000,000. 116.35 The amounts necessary to meet the requirements of this 116.36 section are appropriated from the general fund within two weeks 117.1 after the forecast is released. 117.2 Sec. 4. Minnesota Statutes 2001 Supplement, section 117.3 62J.694, subdivision 1, is amended to read: 117.4 Subdivision 1. [CREATION.] (a) The medical education 117.5 endowment fund is created in the state treasury. The state 117.6 board of investment shall invest the fund under section 11A.24. 117.7 All earnings of the fund must be credited to the fund. The 117.8 principal of the fund must be maintained inviolate, except that 117.9 the principal may be used to make expenditures from the fund for 117.10 the purposes specified in this section when the market value of 117.11 the fund falls below 105 percent of the cumulative total of the 117.12 tobacco settlement payments received by the state and credited 117.13 to the tobacco settlement fund under section 16A.87, subdivision 117.14 2. For purposes of this section, "principal" means an amount 117.15 equal to the cumulative total of the tobacco settlement payments 117.16 received by the state and credited to the tobacco settlement 117.17 fund under section 16A.87, subdivision 2. 117.18 (b) If the commissioner of finance determines that probable 117.19 receipts to the general fund will be sufficient to meet the need 117.20 for expenditures from the general fund for a fiscal biennium, 117.21 the commissioner may use cash reserves of the medical education 117.22 endowment fund to pay expenses of the general fund. If cash 117.23 reserves are transferred to the general fund to meet cash flow 117.24 needs, the cash flow transfers must be returned to the endowment 117.25 fund as soon as sufficient cash balances are available in the 117.26 general fund, but in any event before the end of the fiscal 117.27 biennium. Any interest earned on cash flow transfers from the 117.28 endowment fund accrues to the endowment fund and not to the 117.29 general fund. 117.30 (c) The academic health center account is created as a 117.31 separate account in the medical education endowment fund. The 117.32 account is invested under paragraph (a). All earnings of the 117.33 account must be credited to the account. The principal of the 117.34 account must be maintained inviolate, except that the principal 117.35 may be used to make expenditures from the account for the 117.36 purposes specified in subdivision 2a when the value of the 118.1 account falls below an amount equal to deposits made to the 118.2 account under section 16A.87, subdivision 3, paragraph (b). 118.3 Sec. 5. Minnesota Statutes 2000, section 144.395, 118.4 subdivision 1, is amended to read: 118.5 Subdivision 1. [CREATION.] (a) The tobacco use prevention 118.6 and local public health endowment fund is created in the state 118.7 treasury. The state board of investment shall invest the fund 118.8 under section 11A.24. All earnings of the fund must be credited 118.9 to the fund. The principal of the fund must be maintained 118.10 inviolate, except that the principal may be used to make 118.11 expenditures from the fund for the purposes specified in this 118.12 section when the market value of the fund falls below 105 118.13 percent of the cumulative total of the tobacco settlement 118.14 payments received by the state and credited to the tobacco 118.15 settlement fund under section 16A.87, subdivision 2. For 118.16 purposes of this section, "principal" means an amount equal to 118.17 the cumulative total of the tobacco settlement payments received 118.18 by the state and credited to the tobacco settlement fund under 118.19 section 16A.87, subdivision 2. 118.20 (b) If the commissioner of finance determines that probable 118.21 receipts to the general fund will be sufficient to meet the need 118.22 for expenditures from the general fund for a fiscal biennium, 118.23 the commissioner may use cash reserves of the tobacco use 118.24 prevention and local public health endowment fund to pay 118.25 expenses of the general fund. If cash reserves are transferred 118.26 to the general fund to meet cash flow needs, the cash flow 118.27 transfers must be returned to the endowment fund as soon as 118.28 sufficient cash balances are available in the general fund, but 118.29 in any event before the end of the fiscal biennium. Any 118.30 interest earned on cash flow transfers from the endowment fund 118.31 accrues to the endowment fund and not to the general fund. 118.32 Sec. 6. Minnesota Statutes 2001 Supplement, section 118.33 289A.20, subdivision 4, is amended to read: 118.34 Subd. 4. [SALES AND USE TAX.] (a) The taxes imposed by 118.35 chapter 297A are due and payable to the commissioner monthly on 118.36 or before the 20th day of the month following the month in which 119.1 the taxable event occurred, or following another reporting 119.2 period as the commissioner prescribes or as allowed under 119.3 section 289A.18, subdivision 4, paragraph (f), except that use 119.4 taxes due on an annual use tax return as provided under section 119.5 289A.11, subdivision 1, are payable by April 15 following the 119.6 close of the calendar year. 119.7 (b) For a fiscal year ending before July 1, 20022006, A 119.8 vendor having a liability of $120,000 or more during a fiscal 119.9 year ending June 30 must remit the June liability for the next 119.10 year in the following manner: 119.11 (1) Two business days before June 30 of the year, the 119.12 vendor must remit 62 percent of the estimated June liability to 119.13 the commissioner. 119.14 (2) On or before August 20 of the year, the vendor must pay 119.15 any additional amount of tax not remitted in June. 119.16 (c) A vendor having a liability of $120,000 or more during 119.17 a fiscal year ending June 30 must remit all liabilities on 119.18 returns due for periods beginning in the subsequent calendar 119.19 year by electronic means on or before the 20th day of the month 119.20 following the month in which the taxable event occurred, or on 119.21 or before the 20th day of the month following the month in which 119.22 the sale is reported under section 289A.18, subdivision 4, 119.23 except for 62 percent of the estimated June liability, which is 119.24 due two business days before June 30. The remaining amount of 119.25 the June liability is due on August 20. 119.26 Sec. 7. [BALANCES CANCELED TO GENERAL FUND.] 119.27 The unobligated balances in the following general fund 119.28 accounts created in the sections of Minnesota Statutes indicated 119.29 are canceled to the general fund: 119.30 (1) the cash flow account, Minnesota Statutes, section 119.31 16A.152, subdivision 1, estimated to be $350,000,000; 119.32 (2) the budget reserve account, Minnesota Statutes, section 119.33 16A.152, subdivision 1a, estimated to be $653,000,000; 119.34 (3) the tax relief account, Minnesota Statutes, section 119.35 16A.1522, subdivision 4, estimated to be $158,148,000; 119.36 (4) the local government aid reform account, Minnesota 120.1 Statutes, section 16A.1523, estimated to be $14,000,000; and 120.2 (5) the TIF grant account, Minnesota Statutes, section 120.3 469.1799, subdivision 3, estimated to be $129,000,000. 120.4 Sec. 8. [TRANSFERS TO GENERAL FUND.] 120.5 Subdivision 1. [ASSIGNED RISK PLAN.] By June 30, 2002, the 120.6 commissioner of finance shall transfer $94,900,000 in assets of 120.7 the assigned risk plan created under Minnesota Statutes, section 120.8 79.252, to the general fund. 120.9 Subd. 2. [SPECIAL COMPENSATION FUND.] After June 1, 2003, 120.10 but no later than June 30, 2003, the commissioner of finance 120.11 shall transfer $282,000,000 in assets of the excess surplus 120.12 account of the special compensation fund created under Minnesota 120.13 Statutes, section 176.129, to the general fund. 120.14 Subd. 3. [REPEALER.] Laws 2000, chapter 447, section 25, 120.15 is repealed. 120.16 Sec. 9. [BUSWAY APPROPRIATION CANCELED.] 120.17 The unobligated balance of the appropriation in Laws 2000, 120.18 chapter 492, article 2, section 1, estimated to be $15,000,000, 120.19 is canceled to the general fund. 120.20 Sec. 10. [APPROPRIATION TO BUDGET RESERVE.] 120.21 On July 1, 2003, $160,000,000 is appropriated from the 120.22 general fund to the commissioner of finance for transfer to the 120.23 budget reserve account under Minnesota Statutes, section 120.24 16A.152, subdivision 1a. 120.25 Sec. 11. [REPEALER.] 120.26 (a) Minnesota Statutes 2001 Supplement, sections 16A.1523; 120.27 and 469.1799, subdivisions 1 and 3, are repealed. 120.28 (b) Laws 2001, First Special Session chapter 5, article 20, 120.29 section 22, is repealed. 120.30 Sec. 12. [EFFECTIVE DATE.] 120.31 This article is effective the day following final 120.32 enactment, except that sections 4 and 5 are effective July 1, 120.33 2003. 120.34 ARTICLE 14 120.35 INFLATION ADJUSTMENTS 120.36 Section 1. Minnesota Statutes 2000, section 16A.103, 121.1 subdivision 1a, is amended to read: 121.2 Subd. 1a. [FORECAST PARAMETERS.] The forecast must assume 121.3 the continuation of current laws and reasonable estimates of 121.4 projected growth in the national and state economies and 121.5 affected populations. Revenue must be estimated for all sources 121.6 provided for in current law. Expenditures must be estimated for 121.7 all obligations imposed by law and those projected to occur as a 121.8 result of inflation andvariables outside the control of the 121.9 legislature. Expenditure estimates must not include an 121.10 allowance for inflation. 121.11 Sec. 2. Minnesota Statutes 2000, section 16A.103, 121.12 subdivision 1b, is amended to read: 121.13 Subd. 1b. [FORECAST VARIABLE.] In determining the rate of121.14 inflation, the application of inflation,the amount of state 121.15 bonding as it affects debt service, the calculation of 121.16 investment income, and the other variables to be included in the 121.17 expenditure part of the forecast, the commissioner must consult 121.18 with the chairs and lead minority members of the senate state 121.19 government finance committee and the house ways and means 121.20 committee, and legislative fiscal staff. This consultation must 121.21 occur at least three weeks before the forecast is to be 121.22 released. No later than two weeks prior to the release of the 121.23 forecast, the commissioner must inform the chairs and lead 121.24 minority members of the senate state government finance 121.25 committee and the house ways and means committee, and 121.26 legislative fiscal staff of any changes in these variables from 121.27 the previous forecast. 121.28 ARTICLE 15 121.29 TAXES; REVENUE DEPARTMENT 121.30 Section 1. Minnesota Statutes 2000, section 136A.08, 121.31 subdivision 3, is amended to read: 121.32 Subd. 3. [WISCONSIN.] A higher education reciprocity 121.33 agreement with the state of Wisconsin may include provision for 121.34 the transfer of funds between Minnesota and Wisconsin provided121.35 that an income tax reciprocity agreement between Minnesota and121.36 Wisconsin is in effect for the period of time included under the122.1 higher education reciprocity agreement. If this provision is 122.2 included, the amount of funds to be transferred shall be 122.3 determined according to a formula which is mutually acceptable 122.4 to the office and a duly designated agency representing 122.5 Wisconsin. The formula shall recognize differences in tuition 122.6 rates between the two states and the number of students 122.7 attending institutions in each state under the agreement. Any 122.8 payments to Minnesota by Wisconsin shall be deposited by the 122.9 office in the general fund of the state treasury. The amount 122.10 required for the payments shall be certified by the director of 122.11 the office to the commissioner of finance annually. 122.12 [EFFECTIVE DATE.]This section is effective the day 122.13 following final enactment. 122.14 Sec. 2. Minnesota Statutes 2000, section 290.081, is 122.15 amended to read: 122.16 290.081 [INCOME OF NONRESIDENTS, RECIPROCITY.] 122.17 (a) The compensation received for the performance of 122.18 personal or professional services within this state by an 122.19 individual whose residence, place of abode, and place 122.20 customarily returned to at least once a month is in another 122.21 state, shall be excluded from gross income to the extent such 122.22 compensation is subject to an income tax imposed by the state of 122.23 residence; provided that such state allows a similar exclusion 122.24 of compensation received by residents of Minnesota for services 122.25 performed therein. 122.26 (b) When it is deemed to be in the best interests of the 122.27 people of this state, the commissioner may determine that the 122.28 provisions of clauseparagraph (a) shall not apply. As long as122.29 the provisions of clause (a) apply between Minnesota and122.30 Wisconsin, the provisions of clause (a) shall apply to any122.31 individual who is domiciled in Wisconsin.122.32 (c) For the purposes of clause (a), whenever the Wisconsin122.33 tax on Minnesota residents which would have been paid Wisconsin122.34 without clause (a) exceeds the Minnesota tax on Wisconsin122.35 residents which would have been paid Minnesota without clause122.36 (a), or vice versa, then the state with the net revenue loss123.1 resulting from clause (a) shall receive from the other state the123.2 amount of such loss. This provision shall be effective for all123.3 years beginning after December 31, 1972. The data used for123.4 computing the loss to either state shall be determined on or123.5 before September 30 of the year following the close of the123.6 previous calendar year.123.7 Interest shall be payable on all delinquent balances123.8 relating to taxable years beginning after December 31, 1977.123.9 The commissioner of revenue is authorized to enter into123.10 agreements with the state of Wisconsin specifying the123.11 reciprocity payment due date, conditions constituting123.12 delinquency, interest rates, and a method for computing interest123.13 due on any delinquent amounts.123.14 If an agreement cannot be reached as to the amount of the123.15 loss, the commissioner of revenue and the taxing official of the123.16 state of Wisconsin shall each appoint a member of a board of123.17 arbitration and these members shall appoint the third member of123.18 the board. The board shall select one of its members as chair.123.19 Such board may administer oaths, take testimony, subpoena123.20 witnesses, and require their attendance, require the production123.21 of books, papers and documents, and hold hearings at such places123.22 as are deemed necessary. The board shall then make a123.23 determination as to the amount to be paid the other state which123.24 determination shall be final and conclusive.123.25 The commissioner may furnish copies of returns, reports, or123.26 other information to the taxing official of the state of123.27 Wisconsin, a member of the board of arbitration, or a consultant123.28 under joint contract with the states of Minnesota and Wisconsin123.29 for the purpose of making a determination as to the amount to be123.30 paid the other state under the provisions of this section.123.31 Prior to the release of any information under the provisions of123.32 this section, the person to whom the information is to be123.33 released shall sign an agreement which provides that the person123.34 will protect the confidentiality of the returns and information123.35 revealed thereby to the extent that it is protected under the123.36 laws of the state of Minnesota.124.1 [EFFECTIVE DATE.]This section is effective for tax years 124.2 beginning after December 31, 2002. 124.3 Sec. 3. Minnesota Statutes 2000, section 469.175, 124.4 subdivision 5, is amended to read: 124.5 Subd. 5. [ANNUAL DISCLOSURE.] An annual statement showing 124.6 for each district the information required to be reported under 124.7 subdivision 6, paragraph (c), clauses (1), (2), (3), (11), (12), 124.8 (20), and (21); the amounts of tax increment received and 124.9 expended in the reporting period; and any additional information 124.10 the authority deems necessary must be published in a newspaper 124.11 of general circulation in the municipality that approved the tax 124.12 increment financing plan. The annual statement must inform 124.13 readers that additional information regarding each district may 124.14 be obtained from the authority, and must explain how the 124.15 additional information may be requested. The authority must 124.16 publish the annual statement for a year no later than August 15 124.17 of the next year. The authority must identify the newspaper of 124.18 general circulation in the municipality to which the annual 124.19 statement has been or will be submitted for publication and 124.20 provide a copy of the annual statement to the county board, the 124.21 county auditor, the school board, the state auditorcommissioner 124.22 of revenue, and, if the authority is other than the 124.23 municipality, the governing body of the municipality on or 124.24 before August 1 of the year in which the statement must be 124.25 published. 124.26 The disclosure requirements imposed by this subdivision 124.27 apply to districts certified before, on, or after August 1, 1979. 124.28 Sec. 4. Minnesota Statutes 2000, section 469.175, 124.29 subdivision 6, is amended to read: 124.30 Subd. 6. [ANNUAL FINANCIAL REPORTING.] (a) The state 124.31 auditor shall develop a uniform system of accounting and 124.32 financial reporting for tax increment financing districts. The 124.33 system of accounting and financial reporting shall, as nearly as 124.34 possible: 124.35 (1) provide for full disclosure of the sources and uses of 124.36 public funds in the district; 125.1 (2) permit comparison and reconciliation with the affected 125.2 local government's accounts and financial reports; 125.3 (3) permit auditing of the funds expended on behalf of a 125.4 district, including a single district that is part of a 125.5 multidistrict project or that is funded in part or whole through 125.6 the use of a development account funded with tax increments from 125.7 other districts or with other public money; 125.8 (4) be consistent with generally accepted accounting 125.9 principles. 125.10 (b) The authority must annually submit to the state auditor125.11 commissioner of revenue a financial report in compliance with 125.12 paragraph (a) that has been audited by an independent auditor. 125.13 Copies of the report must also be provided to the county auditor 125.14 and to the governing body of the municipality, if the authority 125.15 is not the municipality. To the extent necessary to permit 125.16 compliance with the requirement of financial reporting, the 125.17 county and any other appropriate local government unit or 125.18 private entity must provide the necessary records or information 125.19 to the authority or the state auditorcommissioner of revenue as 125.20 provided by the system of accounting and financial reporting 125.21 developed pursuant to paragraph (a). The authority must submit 125.22 the annual report for a year on or before August 1 of the next 125.23 year. 125.24 (c) The annual financial report must also include the 125.25 following items: 125.26 (1) the original net tax capacity of the district and any 125.27 subdistrict under section 469.177, subdivision 1; 125.28 (2) the net tax capacity for the reporting period of the 125.29 district and any subdistrict; 125.30 (3) the captured net tax capacity of the district; 125.31 (4) any fiscal disparity deduction from the captured net 125.32 tax capacity under section 469.177, subdivision 3; 125.33 (5) the captured net tax capacity retained for tax 125.34 increment financing under section 469.177, subdivision 2, 125.35 paragraph (a), clause (1); 125.36 (6) any captured net tax capacity distributed among 126.1 affected taxing districts under section 469.177, subdivision 2, 126.2 paragraph (a), clause (2); 126.3 (7) the type of district; 126.4 (8) the date the municipality approved the tax increment 126.5 financing plan and the date of approval of any modification of 126.6 the tax increment financing plan, the approval of which requires 126.7 notice, discussion, a public hearing, and findings under 126.8 subdivision 4, paragraph (a); 126.9 (9) the date the authority first requested certification of 126.10 the original net tax capacity of the district and the date of 126.11 the request for certification regarding any parcel added to the 126.12 district; 126.13 (10) the date the county auditor first certified the 126.14 original net tax capacity of the district and the date of 126.15 certification of the original net tax capacity of any parcel 126.16 added to the district; 126.17 (11) the month and year in which the authority has received 126.18 or anticipates it will receive the first increment from the 126.19 district; 126.20 (12) the date the district must be decertified; 126.21 (13) for the reporting period and prior years of the 126.22 district, the actual amount received from, at least, the 126.23 following categories: 126.24 (i) tax increments paid by the captured net tax capacity 126.25 retained for tax increment financing under section 469.177, 126.26 subdivision 2, paragraph (a), clause (1), but excluding any 126.27 excess taxes; 126.28 (ii) tax increments that are interest or other investment 126.29 earnings on or from tax increments; 126.30 (iii) tax increments that are proceeds from the sale or 126.31 lease of property, tangible or intangible, purchased by the 126.32 authority with tax increments; 126.33 (iv) tax increments that are repayments of loans or other 126.34 advances made by the authority with tax increments; 126.35 (v) bond or loan proceeds; 126.36 (vi) special assessments; 127.1 (vii) grants; and 127.2 (viii) transfers from funds not exclusively associated with 127.3 the district; 127.4 (14) for the reporting period and for the prior years of 127.5 the district, the amount budgeted under the tax increment 127.6 financing plan, and the actual amount expended for, at least, 127.7 the following categories: 127.8 (i) acquisition of land and buildings through condemnation 127.9 or purchase; 127.10 (ii) site improvements or preparation costs; 127.11 (iii) installation of public utilities, parking facilities, 127.12 streets, roads, sidewalks, or other similar public improvements; 127.13 (iv) administrative costs, including the allocated cost of 127.14 the authority; 127.15 (v) public park facilities, facilities for social, 127.16 recreational, or conference purposes, or other similar public 127.17 improvements; and 127.18 (vi) transfers to funds not exclusively associated with the 127.19 district; 127.20 (15) for properties sold to developers, the total cost of 127.21 the property to the authority and the price paid by the 127.22 developer; 127.23 (16) the amount of any payments and the value of any 127.24 in-kind benefits, such as physical improvements and the use of 127.25 building space, that are paid or financed with tax increments 127.26 and are provided to another governmental unit other than the 127.27 municipality during the reporting period; 127.28 (17) the amount of any payments for activities and 127.29 improvements located outside of the district that are paid for 127.30 or financed with tax increments; 127.31 (18) the amount of payments of principal and interest that 127.32 are made during the reporting period on any nondefeased: 127.33 (i) general obligation tax increment financing bonds; 127.34 (ii) other tax increment financing bonds; and 127.35 (iii) notes and pay-as-you-go contracts; 127.36 (19) the principal amount, at the end of the reporting 128.1 period, of any nondefeased: 128.2 (i) general obligation tax increment financing bonds; 128.3 (ii) other tax increment financing bonds; and 128.4 (iii) notes and pay-as-you-go contracts; 128.5 (20) the amount of principal and interest payments that are 128.6 due for the current calendar year on any nondefeased: 128.7 (i) general obligation tax increment financing bonds; 128.8 (ii) other tax increment financing bonds; and 128.9 (iii) notes and pay-as-you-go contracts; 128.10 (21) if the fiscal disparities contribution under chapter 128.11 276A or 473F for the district is computed under section 469.177, 128.12 subdivision 3, paragraph (a), the amount of increased property 128.13 taxes imposed on other properties in the municipality that 128.14 approved the tax increment financing plan as a result of the 128.15 fiscal disparities contribution; and 128.16 (22) whether the tax increment financing plan or other 128.17 governing document permits increment revenues to be expended: 128.18 (i) to pay bonds, the proceeds of which were or may be 128.19 expended on activities outside of the district; 128.20 (ii) for deposit into a common bond fund from which money 128.21 may be expended on activities located outside of the district; 128.22 or 128.23 (iii) to otherwise finance activities located outside of 128.24 the tax increment financing district ; and128.25 (23) any additional information the state auditor may128.26 require. 128.27 (d) The commissioner of revenue shall prescribe the method 128.28 of calculating the increased property taxes under paragraph (c), 128.29 clause (21), and the form of the statement disclosing this 128.30 information on the annual statement under subdivision 5. 128.31 (e) The reporting requirements imposed by this subdivision 128.32 apply to districts certified before, on, and after August 1, 128.33 1979. 128.34 Sec. 5. Minnesota Statutes 2001 Supplement, section 128.35 469.1771, subdivision 1, is amended to read: 128.36 Subdivision 1. [ENFORCEMENT.] (a) The owner of taxable 129.1 property located in the city, town, school district, or county 129.2 in which the tax increment financing district is located may 129.3 bring suit for equitable relief or for damages, as provided in 129.4 subdivisions 2, 3, and 4, arising out of a failure of a 129.5 municipality or authority to comply with the provisions of 129.6 sections 469.174 to 469.1798, or related provisions of this 129.7 chapter. The prevailing party in a suit filed under the 129.8 preceding sentence is entitled to costs, including reasonable 129.9 attorney fees. 129.10 (b) The state auditor may examine and audit political129.11 subdivisions' use of tax increment financing. Without previous129.12 notice, the state auditor may examine or audit accounts and129.13 records on a random basis as the auditor deems to be in the129.14 public interest. If the state auditor finds evidence that an129.15 authority or municipality has violated a provision of the law129.16 for which a remedy is provided under this section, the state129.17 auditor shall forward the relevant information to the county129.18 attorney.The county attorney may bring an action to enforce 129.19 the provisions of sections 469.174 to 469.1798 or related 129.20 provisions of this chapter , for matters referred by the state129.21 auditor oron behalf of the county. If the county attorney129.22 determines not to bring an action or if the county attorney has129.23 not brought an action within 12 months after receipt of the129.24 initial notification by the state auditor of the violation, the129.25 county attorney shall notify the state auditor in writing.129.26 (c) If the state auditor finds an authority is not in129.27 compliance with sections 469.174 to 469.1798 or related129.28 provisions of law, the auditor shall notify the governing body129.29 of the municipality that approved the tax increment financing129.30 district of its findings. The governing body of the129.31 municipality must respond in writing to the state auditor within129.32 60 days after receiving the notification. Its written response129.33 must state whether the municipality accepts, in whole or part,129.34 the auditor's findings. If the municipality does not accept the129.35 findings, the statement must indicate the basis for its129.36 disagreement. The state auditor shall annually summarize the130.1 responses it receives under this section and send the summary130.2 and copies of the responses to the chairs of the committees of130.3 the legislature with jurisdiction over tax increment financing.130.4 (d) The state auditor shall notify the attorney general in130.5 writing and provide supporting materials for a violation found130.6 by the auditor, if the:130.7 (1) auditor receives notification from the county attorney130.8 under paragraph (b) or receives no notification for a 12-month130.9 period after initially notifying the county attorney and the130.10 state auditor confirms with the county attorney or the130.11 municipality that no action has been brought regarding the130.12 matter; and130.13 (2) municipality or development authority have not130.14 eliminated or resolved the violation to the satisfaction of the130.15 state auditor.130.16 The auditor shall provide the municipality and development130.17 authority a copy of the notification sent to the attorney130.18 general.130.19 [EFFECTIVE DATE.]This section applies to violations 130.20 occurring after June 30, 2002. 130.21 Sec. 6. Minnesota Statutes 2000, section 469.1771, 130.22 subdivision 2a, is amended to read: 130.23 Subd. 2a. [SUSPENSION OF DISTRIBUTION OF TAX INCREMENT.] 130.24 (a) If an authority fails to make a disclosure or to submit a 130.25 report containing the information required by section 469.175, 130.26 subdivisions 5 and 6, regarding a tax increment financing 130.27 district within the time provided in section 469.175, 130.28 subdivisions 5 and 6, the state auditorcommissioner of revenue 130.29 shall mail to the authority a written notice that it or the 130.30 municipality has failed to make the required disclosure or to 130.31 submit a required report with respect to a particular district. 130.32 The state auditorcommissioner of revenue shall mail the notice 130.33 on or before the third Tuesday of August of the year in which 130.34 the disclosure or report was required to be made or submitted. 130.35 The notice must describe the consequences of failing to disclose 130.36 or submit a report as provided in paragraph (b). If the state131.1 auditorcommissioner of revenue has not received a copy of a 131.2 disclosure or a report described in this paragraph on or before 131.3 the third Tuesday of November of the year in which the 131.4 disclosure or report was required to be made or submitted, the 131.5 state auditorcommissioner of revenue shall mail a written 131.6 notice to the county auditor to hold the distribution of tax 131.7 increment from a particular district. 131.8 (b) Upon receiving written notice from the state auditor131.9 commissioner of revenue to hold the distribution of tax 131.10 increment, the county auditor shall hold: 131.11 (1) 25 percent of the amount of tax increment that 131.12 otherwise would be distributed, if the distribution is made 131.13 after the third Friday in November but during the year in which 131.14 the disclosure or report was required to be made or submitted; 131.15 or 131.16 (2) 100 percent of the amount of tax increment that 131.17 otherwise would be distributed, if the distribution is made 131.18 after December 31 of the year in which the disclosure or report 131.19 was required to be made or submitted. 131.20 (c) Upon receiving the copy of the disclosure and all of 131.21 the reports described in paragraph (a) with respect to a 131.22 district regarding which the state auditorcommissioner of 131.23 revenue has mailed to the county auditor a written notice to 131.24 hold distribution of tax increment, the state auditor131.25 commissioner of revenue shall mail to the county auditor a 131.26 written notice lifting the hold and authorizing the county 131.27 auditor to distribute to the authority or municipality any tax 131.28 increment that the county auditor had held pursuant to paragraph 131.29 (b). The state auditorcommissioner of revenue shall mail the 131.30 written notice required by this paragraph within five working 131.31 days after receiving the last outstanding item. The county 131.32 auditor shall distribute the tax increment to the authority or 131.33 municipality within 15 working days after receiving the written 131.34 notice required by this paragraph. 131.35 (d) Notwithstanding any law to the contrary, any interest 131.36 that accrues on tax increment while it is being held by the 132.1 county auditor pursuant to paragraph (b) is not tax increment 132.2 and may be retained by the county. 132.3 (e) For purposes of sections 469.176, subdivisions 1a to 132.4 1g, and 469.177, subdivision 11, tax increment being held by the 132.5 county auditor pursuant to paragraph (b) is considered 132.6 distributed to or received by the authority or municipality as 132.7 of the time that it would have been distributed or received but 132.8 for paragraph (b). 132.9 Sec. 7. [APPROPRIATION REDUCTION.] 132.10 The general fund appropriation to the commissioner of 132.11 revenue in Laws 2001, First Special Session chapter 10, article 132.12 1, section 16, subdivision 1, is reduced by $7,500,000 for 132.13 fiscal year 2002 and $7,500,000 for fiscal year 2003. 132.14 Sec. 8. [EARLY RETIREMENT INCENTIVE.] 132.15 Subdivision 1. [ELIGIBILITY.] The early retirement 132.16 incentive provided in this section is available to an employee 132.17 of the department of revenue who: 132.18 (1) on the date of retirement is at least 55 years old and 132.19 has at least 25 years of allowable service in one or more of the 132.20 funds listed in Minnesota Statutes, section 356.30, subdivision 132.21 3; 132.22 (2) upon retirement is immediately eligible for a 132.23 retirement annuity from one or more of those funds; 132.24 (3) retires on or after the effective date of this section, 132.25 but before January 1, 2003; and 132.26 (4) holds a position designated by the department as 132.27 eligible for the incentive. 132.28 Subd. 2. [INCENTIVE.] For an eligible employee who retires 132.29 under this section, the employer shall pay the full employer 132.30 contribution, as specified in the collective bargaining 132.31 agreement or personnel policy covering the employee, for health 132.32 and dental insurance for the employee and, if the employee had 132.33 dependent coverage immediately before retirement, for the 132.34 employee's dependents. Notwithstanding Minnesota Statutes, 132.35 section 179A.20, subdivision 2a, the employer contribution under 132.36 this subdivision must continue until the employee reaches age 133.1 65. The postretirement health and dental coverage provided by 133.2 this section is the coverage the employee was receiving 133.3 immediately before retirement, subject to any changes in 133.4 coverage later specified by the collective bargaining agreement 133.5 or personnel policy that covered the employee immediately before 133.6 retirement. 133.7 Subd. 3. [INCLUSION.] If the department of revenue chooses 133.8 to offer the retirement incentive under this section, it must 133.9 designate the positions or group of positions within the 133.10 department that will qualify for participation in its retirement 133.11 incentive program and may exclude otherwise eligible employees. 133.12 After initially designating the qualified positions or group of 133.13 positions, the department may at any time modify its designation 133.14 in order to further limit the qualified positions or group of 133.15 positions. Unilateral implementation of retirement incentives 133.16 under this section is not an unfair labor practice for purposes 133.17 of Minnesota Statutes, chapter 179A. 133.18 Sec. 9. [REPEALER.] 133.19 (a) Minnesota Statutes 2000, section 469.1771, subdivision 133.20 2b, is repealed. 133.21 (b) Minnesota Statutes 2001 Supplement, section 469.177, 133.22 subdivision 11, is repealed. 133.23 Sec. 10. [EFFECTIVE DATE.] 133.24 This article is effective the day following final enactment.