HF 3976

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to state government; making changes to continuing care; agency
management; state-operated services; children and family services; health care
programs; Department of Health provisions; appropriating money; amending
Minnesota Statutes 2006, sections 144.1222, subdivision 1a, by adding
subdivisions; 157.16, as amended; 256.741, subdivisions 2, 2a, 3; 256.969,
subdivisions 2b, 20; 256B.0571, subdivisions 8, 9; 256B.0621, subdivisions 2, 6,
10; 256B.0625, subdivisions 3c, 13e; 256B.0924, subdivisions 4, 6; 256B.19,
subdivision 1d; 256B.431, subdivision 23; 256B.434, by adding a subdivision;
256B.441, by adding a subdivision; 256B.69, subdivisions 5a, 6; 256D.44,
subdivisions 2, 5; 256L.12, subdivision 9; 518A.50; 518A.53, subdivision
5; Minnesota Statutes 2007 Supplement, sections 16A.724, subdivision 2;
256.01, subdivision 2; 256.741, subdivision 1; 256B.0625, subdivision 20;
256B.0631, subdivisions 1, 3; 256B.199; 256J.621; 256L.04, subdivisions 1,
7; 256L.07, subdivision 1; Laws 2006, chapter 282, article 20, section 37, as
amended; Laws 2007, chapter 147, article 2, section 21; article 19, sections
3, subdivisions 1, 4, 6; 4, subdivisions 2, 4; proposing coding for new law in
Minnesota Statutes, chapters 246B; 256B; repealing Minnesota Statutes 2006,
sections 62J.58; 256.741, subdivision 15; 256B.441, subdivision 25; Minnesota
Statutes 2007 Supplement, sections 256.962, subdivision 5; 256.969, subdivision
27; 256B.057, subdivision 2c; 256B.441, subdivisions 1, 14a, 30, 31, 48, 49, 50,
51, 52, 53, 54, 55, 56, 58; 256L.07, subdivision 7.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

ARTICLE 1

CONTINUING CARE

Section 1.

Minnesota Statutes 2006, section 256B.0621, subdivision 2, is amended to
read:

Subd. 2.

Targeted case management; definitions.

For purposes of subdivisions 3
to 10, the following terms have the meanings given them:

(1) "home care service recipients" means those individuals receiving the following
services under sections 256B.0651 to 256B.0656: skilled nursing visits, home health aide
visits, private duty nursing, personal care assistants, or therapies provided through a
home health agency;

(2) "home care targeted case management" means the provision of targeted case
management services for the purpose of assisting home care service recipients to gain
access to needed services and supports so that they may remain in the community;

(3) "institutions" means hospitals, consistent with Code of Federal Regulations, title
42, section 440.10; regional treatment center inpatient services, consistent with section
245.474; nursing facilities; and intermediate care facilities for persons with developmental
disabilities;

(4) "relocation targeted case management" includes the provision of both county
targeted case management and public or private vendor service coordination services
for the purpose of assisting recipients to gain access to needed services and supports if
they choose to move from an institution to the community. Relocation targeted case
management may be provided during new text begin the lesser of:
new text end

new text begin (i) new text end the last 180 consecutive days of an eligible recipient's institutional stay new text begin ; or
new text end

new text begin (ii) the limits and conditions which apply to federal Medicaid funding for this
service new text end ; and

(5) "targeted case management" means case management services provided to help
recipients gain access to needed medical, social, educational, and other services and
supports.

Sec. 2.

Minnesota Statutes 2006, section 256B.0621, subdivision 6, is amended to read:

Subd. 6.

Eligible services.

(a) Services eligible for medical assistance
reimbursement as targeted case management include:

(1) assessment of the recipient's need for targeted case management services and
for persons choosing to relocate, the county must provide service coordination provider
options at the first contact and upon request;

(2) development, completion, and regular review of a written individual service
plan, which is based upon the assessment of the recipient's needs and choices, and which
will ensure access to medical, social, educational, and other related services and supports;

(3) routine contact or communication with the recipient, recipient's family, primary
caregiver, legal representative, substitute care provider, service providers, or other relevant
persons identified as necessary to the development or implementation of the goals of the
individual service plan;

(4) coordinating referrals for, and the provision of, case management services for
the recipient with appropriate service providers, consistent with section 1902(a)(23) of
the Social Security Act;

(5) coordinating and monitoring the overall service delivery and engaging in
advocacy as needed to ensure quality of services, appropriateness, and continued need;

(6) completing and maintaining necessary documentation that supports and verifies
the activities in this subdivision;

(7) assisting individuals in order to access needed services, including travel to
conduct a visit with the recipient or other relevant person necessary to develop or
implement the goals of the individual service plan; and

(8) coordinating with the institution discharge planner deleted text begin in the 180-day period deleted text end before
the recipient's discharge.

(b) Relocation targeted county case management includes services under paragraph
(a), clauses (1), (2), and (4). Relocation service coordination includes services under
paragraph (a), clauses (3) and (5) to (8). Home care targeted case management includes
services under paragraph (a), clauses (1) to (8).

Sec. 3.

Minnesota Statutes 2006, section 256B.0621, subdivision 10, is amended to
read:

Subd. 10.

Payment rates.

The commissioner shall set payment rates for targeted
case management under this subdivision. Case managers may bill according to the
following criteria:

(1) for relocation targeted case management, case managers may bill for direct case
management activities, including face-to-face and telephone contacts, in the new text begin lesser of:
new text end

new text begin (i) new text end 180 days preceding an eligible recipient's discharge from an institution new text begin ; or
new text end

new text begin (ii) the limits and conditions which apply to federal Medicaid funding for this
service new text end ;

(2) for home care targeted case management, case managers may bill for direct case
management activities, including face-to-face and telephone contacts; and

(3) billings for targeted case management services under this subdivision shall not
duplicate payments made under other program authorities for the same purpose.

Sec. 4.

Minnesota Statutes 2007 Supplement, section 256B.0625, subdivision 20,
is amended to read:

Subd. 20.

Mental health case management.

(a) To the extent authorized by rule
of the state agency, medical assistance covers case management services to persons with
serious and persistent mental illness and children with severe emotional disturbance.
Services provided under this section must meet the relevant standards in sections 245.461
to 245.4887, the Comprehensive Adult and Children's Mental Health Acts, Minnesota
Rules, parts 9520.0900 to 9520.0926, and 9505.0322, excluding subpart 10.

(b) Entities meeting program standards set out in rules governing family community
support services as defined in section 245.4871, subdivision 17, are eligible for medical
assistance reimbursement for case management services for children with severe
emotional disturbance when these services meet the program standards in Minnesota
Rules, parts 9520.0900 to 9520.0926 and 9505.0322, excluding subparts 6 and 10.

(c) Medical assistance and MinnesotaCare payment for mental health case
management shall be made on a monthly basis. In order to receive payment for an eligible
child, the provider must document at least a face-to-face contact with the child, the child's
parents, or the child's legal representative. To receive payment for an eligible adult, the
provider must document:

(1) at least a face-to-face contact with the adult or the adult's legal representative; or

(2) at least a telephone contact with the adult or the adult's legal representative and
document a face-to-face contact with the adult or the adult's legal representative within
the preceding two months.

(d) Payment for mental health case management provided by county or state staff
shall be based on the monthly rate methodology under section 256B.094, subdivision 6,
paragraph (b), with separate rates calculated for child welfare and mental health, and
within mental health, separate rates for children and adults.

(e) Payment for mental health case management provided by Indian health services
or by agencies operated by Indian tribes may be made according to this section or other
relevant federally approved rate setting methodology.

(f) Payment for mental health case management provided by vendors who contract
with a county or Indian tribe shall be based on a monthly rate negotiated by the host county
or tribe. The negotiated rate must not exceed the rate charged by the vendor for the same
service to other payers. If the service is provided by a team of contracted vendors, the
county or tribe may negotiate a team rate with a vendor who is a member of the team. The
team shall determine how to distribute the rate among its members. No reimbursement
received by contracted vendors shall be returned to the county or tribe, except to reimburse
the county or tribe for advance funding provided by the county or tribe to the vendor.

(g) If the service is provided by a team which includes contracted vendors, tribal
staff, and county or state staff, the costs for county or state staff participation in the team
shall be included in the rate for county-provided services. In this case, the contracted
vendor, the tribal agency, and the county may each receive separate payment for services
provided by each entity in the same month. In order to prevent duplication of services,
each entity must document, in the recipient's file, the need for team case management and
a description of the roles of the team members.

(h) Notwithstanding section 256B.19, subdivision 1, the nonfederal share of costs
for mental health case management shall be provided by the recipient's county of
responsibility, as defined in sections 256G.01 to 256G.12, from sources other than federal
funds or funds used to match other federal funds. If the service is provided by a tribal
agency, the nonfederal share, if any, shall be provided by the recipient's tribe. When this
service is paid by the state without a federal share through fee-for-service, 50 percent of
the cost shall be provided by the recipient's county of responsibility.

(i) Notwithstanding any administrative rule to the contrary, prepaid medical
assistance, general assistance medical care, and MinnesotaCare include mental health case
management. When the service is provided through prepaid capitation, the nonfederal
share is paid by the state and the county pays no share.

(j) The commissioner may suspend, reduce, or terminate the reimbursement to a
provider that does not meet the reporting or other requirements of this section. The county
of responsibility, as defined in sections 256G.01 to 256G.12, or, if applicable, the tribal
agency, is responsible for any federal disallowances. The county or tribe may share this
responsibility with its contracted vendors.

(k) The commissioner shall set aside a portion of the federal funds earned for county
expenditures under this section to repay the special revenue maximization account under
section 256.01, subdivision 2, clause (15). The repayment is limited to:

(1) the costs of developing and implementing this section; and

(2) programming the information systems.

(l) Payments to counties and tribal agencies for case management expenditures
under this section shall only be made from federal earnings from services provided
under this section. When this service is paid by the state without a federal share through
fee-for-service, 50 percent of the cost shall be provided by the state. Payments to
county-contracted vendors shall include the federal earnings, the state share, and the
county share.

(m) Case management services under this subdivision do not include therapy,
treatment, legal, or outreach services.

(n) If the recipient is a resident of a nursing facility, intermediate care facility, or
hospital, and the recipient's institutional care is paid by medical assistance, payment for
case management services under this subdivision is limited to the new text begin lesser of:
new text end

new text begin (1) the new text end last 180 days of the recipient's residency in that facility and may not exceed
more than six months in a calendar year new text begin ; or
new text end

new text begin (2) the limits and conditions which apply to federal Medicaid funding for this service new text end .

(o) Payment for case management services under this subdivision shall not duplicate
payments made under other program authorities for the same purpose.

Sec. 5.

new text begin [256B.0658] HOUSING ACCESS GRANTS.
new text end

new text begin The commissioner of human services shall award through a competitive process
contracts for grants to public and private agencies to support and assist individuals eligible
for publicly funded home and community-based services, including state plan home care,
to access housing. Grants may be awarded to agencies that may include, but are not
limited to, the following supports: assess to assure suitability of housing, accompanying
an individual to look at housing, filling out applications and rental agreements, meeting
with landlords, helping with Section 8 or other program applications, helping to develop
a budget, obtaining furniture and household goods, if necessary, and assisting with any
problems that may arise with housing.
new text end

Sec. 6.

Minnesota Statutes 2006, section 256B.0924, subdivision 4, is amended to read:

Subd. 4.

Targeted case management service activities.

(a) For persons with
developmental disabilities, targeted case management services must meet the provisions
of section 256B.092.

(b) For persons not eligible as a person with a developmental disability, targeted
case management service activities include:

(1) an assessment of the person's need for targeted case management services;

(2) the development of a written personal service plan;

(3) a regular review and revision of the written personal service plan with the
recipient and the recipient's legal representative, and others as identified by the recipient,
to ensure access to necessary services and supports identified in the plan;

(4) effective communication with the recipient and the recipient's legal representative
and others identified by the recipient;

(5) coordination of referrals for needed services with qualified providers;

(6) coordination and monitoring of the overall service delivery to ensure the quality
and effectiveness of services;

(7) assistance to the recipient and the recipient's legal representative to help make
an informed choice of services;

(8) advocating on behalf of the recipient when service barriers are encountered or
referring the recipient and the recipient's legal representative to an independent advocate;

(9) monitoring and evaluating services identified in the personal service plan to
ensure personal outcomes are met and to ensure satisfaction with services and service
delivery;

(10) conducting face-to-face monitoring with the recipient at least twice a year;

(11) completing and maintaining necessary documentation that supports and verifies
the activities in this section;

(12) coordinating with the medical assistance facility discharge planner deleted text begin in the
180-day period deleted text end prior to the recipient's discharge into the community; and

(13) a personal service plan developed and reviewed at least annually with the
recipient and the recipient's legal representative. The personal service plan must be revised
when there is a change in the recipient's status. The personal service plan must identify:

(i) the desired personal short and long-term outcomes;

(ii) the recipient's preferences for services and supports, including development of
a person-centered plan if requested; and

(iii) formal and informal services and supports based on areas of assessment, such
as: social, health, mental health, residence, family, educational and vocational, safety,
legal, self-determination, financial, and chemical health as determined by the recipient and
the recipient's legal representative and the recipient's support network.

Sec. 7.

Minnesota Statutes 2006, section 256B.0924, subdivision 6, is amended to read:

Subd. 6.

Payment for targeted case management.

(a) Medical assistance and
MinnesotaCare payment for targeted case management shall be made on a monthly basis.
In order to receive payment for an eligible adult, the provider must document at least one
contact per month and not more than two consecutive months without a face-to-face
contact with the adult or the adult's legal representative, family, primary caregiver, or
other relevant persons identified as necessary to the development or implementation
of the goals of the personal service plan.

(b) Payment for targeted case management provided by county staff under this
subdivision shall be based on the monthly rate methodology under section 256B.094,
subdivision 6, paragraph (b), calculated as one combined average rate together with
adult mental health case management under section 256B.0625, subdivision 20, except
for calendar year 2002. In calendar year 2002, the rate for case management under this
section shall be the same as the rate for adult mental health case management in effect
as of December 31, 2001. Billing and payment must identify the recipient's primary
population group to allow tracking of revenues.

(c) Payment for targeted case management provided by county-contracted vendors
shall be based on a monthly rate negotiated by the host county. The negotiated rate must
not exceed the rate charged by the vendor for the same service to other payers. If the
service is provided by a team of contracted vendors, the county may negotiate a team rate
with a vendor who is a member of the team. The team shall determine how to distribute
the rate among its members. No reimbursement received by contracted vendors shall be
returned to the county, except to reimburse the county for advance funding provided by
the county to the vendor.

(d) If the service is provided by a team that includes contracted vendors and county
staff, the costs for county staff participation on the team shall be included in the rate for
county-provided services. In this case, the contracted vendor and the county may each
receive separate payment for services provided by each entity in the same month. In
order to prevent duplication of services, the county must document, in the recipient's file,
the need for team targeted case management and a description of the different roles of
the team members.

(e) Notwithstanding section 256B.19, subdivision 1, the nonfederal share of costs
for targeted case management shall be provided by the recipient's county of responsibility,
as defined in sections 256G.01 to 256G.12, from sources other than federal funds or
funds used to match other federal funds.

(f) The commissioner may suspend, reduce, or terminate reimbursement to a
provider that does not meet the reporting or other requirements of this section. The county
of responsibility, as defined in sections 256G.01 to 256G.12, is responsible for any federal
disallowances. The county may share this responsibility with its contracted vendors.

(g) The commissioner shall set aside five percent of the federal funds received under
this section for use in reimbursing the state for costs of developing and implementing
this section.

(h) Payments to counties for targeted case management expenditures under this
section shall only be made from federal earnings from services provided under this
section. Payments to contracted vendors shall include both the federal earnings and the
county share.

(i) Notwithstanding section 256B.041, county payments for the cost of case
management services provided by county staff shall not be made to the commissioner of
finance. For the purposes of targeted case management services provided by county staff
under this section, the centralized disbursement of payments to counties under section
256B.041 consists only of federal earnings from services provided under this section.

(j) If the recipient is a resident of a nursing facility, intermediate care facility, or
hospital, and the recipient's institutional care is paid by medical assistance, payment for
targeted case management services under this subdivision is limited to new text begin the lesser of:
new text end

new text begin (1) new text end the last 180 days of the recipient's residency in that facility deleted text begin and may not exceed
more than six months in a calendar year deleted text end new text begin ; or
new text end

new text begin (2) the limits and conditions which apply to federal Medicaid funding for this service new text end .

(k) Payment for targeted case management services under this subdivision shall not
duplicate payments made under other program authorities for the same purpose.

(l) Any growth in targeted case management services and cost increases under this
section shall be the responsibility of the counties.

Sec. 8.

Minnesota Statutes 2006, section 256B.19, subdivision 1d, is amended to read:

Subd. 1d.

Portion of nonfederal share to be paid by certain counties.

(a)
In addition to the percentage contribution paid by a county under subdivision 1, the
governmental units designated in this subdivision shall be responsible for an additional
portion of the nonfederal share of medical assistance cost. For purposes of this
subdivision, "designated governmental unit" means the counties of Becker, Beltrami,
Clearwater, Cook, Dodge, Hubbard, Itasca, Lake, Pennington, Pipestone, Ramsey, St.
Louis, Steele, Todd, Traverse, and Wadena.

(b) Beginning in 1994, each of the governmental units designated in this subdivision
shall transfer before noon on May 31 to the state Medicaid agency an amount equal to the
number of licensed beds in any nursing home owned and operated by the county on that
date, with the county named as licensee, multiplied by $5,723. If two or more counties own
and operate a nursing home, the payment shall be prorated. These sums shall be part of the
designated governmental unit's portion of the nonfederal share of medical assistance costs.

(c) Beginning in 2002, in addition to any transfer under paragraph (b), each of the
governmental units designated in this subdivision shall transfer before noon on May 31
to the state Medicaid agency an amount equal to the number of licensed beds in any
nursing home owned and operated by the county on that date, with the county named as
licensee, multiplied by $10,784. The provisions of paragraph (b) apply to transfers under
this paragraph.

deleted text begin (d) Beginning in 2003, in addition to any transfer under paragraphs (b) and (c), each
of the governmental units designated in this subdivision shall transfer before noon on May
31 to the state Medicaid agency an amount equal to the number of licensed beds in any
nursing home owned and operated by the county on that date, with the county named as
licensee, multiplied by $2,230. The provisions of paragraph (b) apply to transfers under
this paragraph.
deleted text end

deleted text begin (e) deleted text end new text begin (d) new text end The commissioner may reduce the intergovernmental transfers under
deleted text begin paragraphs deleted text end new text begin paragraph new text end (c) deleted text begin and (d) deleted text end based on the commissioner's determination of the
payment rate in section 256B.431, subdivision 23, paragraphs (c) deleted text begin , deleted text end new text begin and new text end (d) deleted text begin , and (e) deleted text end . Any
adjustments must be made on a per-bed basis and must result in an amount equivalent to
the total amount resulting from the rate adjustment in section 256B.431, subdivision 23,
paragraphs (c) deleted text begin , deleted text end new text begin and new text end (d) deleted text begin , and (e) deleted text end .

Sec. 9.

Minnesota Statutes 2006, section 256B.431, subdivision 23, is amended to read:

Subd. 23.

County nursing home payment adjustments.

(a) Beginning in 1994,
the commissioner shall pay a nursing home payment adjustment on May 31 after noon
to a county in which is located a nursing home that, on that date, was county-owned and
operated, with the county named as licensee by the commissioner of health, and had over
40 beds and medical assistance occupancy in excess of 50 percent during the reporting
year ending September 30, 1991. The adjustment shall be an amount equal to $16 per
calendar day multiplied by the number of beds licensed in the facility on that date.

(b) Payments under paragraph (a) are excluded from medical assistance per diem
rate calculations. These payments are required notwithstanding any rule prohibiting
medical assistance payments from exceeding payments from private pay residents. A
facility receiving a payment under paragraph (a) may not increase charges to private pay
residents by an amount equivalent to the per diem amount payments under paragraph (a)
would equal if converted to a per diem.

(c) Beginning in 2002, in addition to any payment under paragraph (a), the
commissioner shall pay to a nursing facility described in paragraph (a) an adjustment in
an amount equal to $29.55 per calendar day multiplied by the number of beds licensed
in the facility on that date. The provisions of paragraphs (a) and (b) apply to payments
under this paragraph.

deleted text begin (d) Beginning in 2003, in addition to any payment under paragraphs (a) and (c), the
commissioner shall pay to a nursing facility described in paragraph (a) an adjustment in
an amount equal to $6.11 per calendar day multiplied by the number of beds licensed in
the facility on that date. The provisions of paragraphs (a) and (b) apply to payments
under this paragraph.
deleted text end

deleted text begin (e) deleted text end new text begin (d) new text end The commissioner may reduce payments under deleted text begin paragraphs deleted text end new text begin paragraph new text end (c) deleted text begin and
(d) deleted text end based on the commissioner's determination of Medicare upper payment limits. Any
adjustments must be proportional to adjustments made under section 256B.19, subdivision
1d, paragraph deleted text begin (e) deleted text end new text begin (d) new text end .

Sec. 10.

Minnesota Statutes 2006, section 256B.434, is amended by adding a
subdivision to read:

new text begin Subd. 21. new text end

new text begin Nursing facility rate increases beginning October 1, 2009. new text end

new text begin For the rate
year beginning October 1, 2009, the commissioner shall make available to each nursing
facility reimbursed under this section operating payment rate adjustments equal to 1.5
percent of the operating payment rates in effect on September 30, 2009. The September
30, 2009, operating rate does not include rate adjustments given under subdivision 4,
paragraph (d).
new text end

Sec. 11.

Minnesota Statutes 2006, section 256B.441, is amended by adding a
subdivision to read:

new text begin Subd. 46b. new text end

new text begin Calculation of quality add-on for the rate year beginning October
1, 2009. new text end

new text begin (a) The payment rate for the rate year beginning October 1, 2009, for the
quality add-on, is a variable amount based on each facility's quality score. For the rate
year, the maximum quality add-on is 1.2 percent of the operating payment rate in effect
on September 30, 2009. The commissioner shall determine the quality add-on for each
facility according to paragraphs (b) to (d).
new text end

new text begin (b) For each facility, the commissioner shall determine the operating payment rate in
effect on September 30, 2009. The September 30, 2009, operating rate does not include
rate adjustments given under section 256B.434, subdivision 4, paragraph (d).
new text end

new text begin (c) For each facility, the commissioner shall determine a ratio of the quality score
of the facility determined in subdivision 44 by subtracting 40 from the quality score,
and dividing the result by 60. If this value is less than zero, the commissioner shall use
the value zero.
new text end

new text begin (d) For each facility, the quality add-on is the value determined in paragraph (b),
multiplied by the value determined in paragraph (c), and then multiplied by 1.2 percent.
new text end

Sec. 12.

Minnesota Statutes 2006, section 256B.69, subdivision 6, is amended to read:

Subd. 6.

Service delivery.

(a) Each demonstration provider shall be responsible for
the health care coordination for eligible individuals. Demonstration providers:

(1) shall authorize and arrange for the provision of all needed health services
including but not limited to the full range of services listed in sections 256B.02,
subdivision 8, and 256B.0625 in order to ensure appropriate health care is delivered to
enrollees new text begin . Notwithstanding section 256B.0621, demonstration providers that provide
nursing home and community-based services under this section shall provide relocation
service coordination to enrolled persons age 65 and over new text end ;

(2) shall accept the prospective, per capita payment from the commissioner in return
for the provision of comprehensive and coordinated health care services for eligible
individuals enrolled in the program;

(3) may contract with other health care and social service practitioners to provide
services to enrollees; and

(4) shall institute recipient grievance procedures according to the method established
by the project, utilizing applicable requirements of chapter 62D. Disputes not resolved
through this process shall be appealable to the commissioner as provided in subdivision 11.

(b) Demonstration providers must comply with the standards for claims settlement
under section 72A.201, subdivisions 4, 5, 7, and 8, when contracting with other health
care and social service practitioners to provide services to enrollees. A demonstration
provider must pay a clean claim, as defined in Code of Federal Regulations, title 42,
section 447.45(b), within 30 business days of the date of acceptance of the claim.

Sec. 13.

Minnesota Statutes 2006, section 256D.44, subdivision 2, is amended to read:

Subd. 2.

Standard of assistance for persons eligible for medical assistance
waivers or at risk of placement in a group residential housing facility.

The state
standard of assistance for a person who new text begin : (1) new text end is eligible for a medical assistance home and
community-based services waiver deleted text begin or a person who deleted text end new text begin ; (2) new text end has been determined by the local
agency to meet the plan requirements for placement in a group residential housing facility
under section 256I.04, subdivision 1a deleted text begin , deleted text end new text begin ; or (3) is eligible for a shelter needy payment
under subdivision 5, paragraph (f); new text end is the standard established in subdivision 3, paragraph
(a) or (b).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2009.
new text end

Sec. 14.

Minnesota Statutes 2006, section 256D.44, subdivision 5, is amended to read:

Subd. 5.

Special needs.

In addition to the state standards of assistance established in
subdivisions 1 to 4, payments are allowed for the following special needs of recipients of
Minnesota supplemental aid who are not residents of a nursing home, a regional treatment
center, or a group residential housing facility.

(a) The county agency shall pay a monthly allowance for medically prescribed
diets if the cost of those additional dietary needs cannot be met through some other
maintenance benefit. The need for special diets or dietary items must be prescribed by
a licensed physician. Costs for special diets shall be determined as percentages of the
allotment for a one-person household under the thrifty food plan as defined by the United
States Department of Agriculture. The types of diets and the percentages of the thrifty
food plan that are covered are as follows:

(1) high protein diet, at least 80 grams daily, 25 percent of thrifty food plan;

(2) controlled protein diet, 40 to 60 grams and requires special products, 100 percent
of thrifty food plan;

(3) controlled protein diet, less than 40 grams and requires special products, 125
percent of thrifty food plan;

(4) low cholesterol diet, 25 percent of thrifty food plan;

(5) high residue diet, 20 percent of thrifty food plan;

(6) pregnancy and lactation diet, 35 percent of thrifty food plan;

(7) gluten-free diet, 25 percent of thrifty food plan;

(8) lactose-free diet, 25 percent of thrifty food plan;

(9) antidumping diet, 15 percent of thrifty food plan;

(10) hypoglycemic diet, 15 percent of thrifty food plan; or

(11) ketogenic diet, 25 percent of thrifty food plan.

(b) Payment for nonrecurring special needs must be allowed for necessary home
repairs or necessary repairs or replacement of household furniture and appliances using
the payment standard of the AFDC program in effect on July 16, 1996, for these expenses,
as long as other funding sources are not available.

(c) A fee for guardian or conservator service is allowed at a reasonable rate
negotiated by the county or approved by the court. This rate shall not exceed five percent
of the assistance unit's gross monthly income up to a maximum of $100 per month. If the
guardian or conservator is a member of the county agency staff, no fee is allowed.

(d) The county agency shall continue to pay a monthly allowance of $68 for
restaurant meals for a person who was receiving a restaurant meal allowance on June 1,
1990, and who eats two or more meals in a restaurant daily. The allowance must continue
until the person has not received Minnesota supplemental aid for one full calendar month
or until the person's living arrangement changes and the person no longer meets the criteria
for the restaurant meal allowance, whichever occurs first.

(e) A fee of ten percent of the recipient's gross income or $25, whichever is less,
is allowed for representative payee services provided by an agency that meets the
requirements under SSI regulations to charge a fee for representative payee services. This
special need is available to all recipients of Minnesota supplemental aid regardless of
their living arrangement.

(f) new text begin (1) new text end Notwithstanding the language in this subdivision, an amount equal to the
maximum allotment authorized by the federal Food Stamp Program for a single individual
which is in effect on the first day of deleted text begin January deleted text end new text begin July new text end of deleted text begin the previous deleted text end new text begin each new text end year will be added
to the standards of assistance established in subdivisions 1 to 4 for deleted text begin individuals deleted text end new text begin adults new text end
under the age of 65 who new text begin qualify as shelter needy and new text end are new text begin : (i) new text end relocating from an institution,
or an adult mental health residential treatment program under section 256B.0622 deleted text begin , and
who are shelter needy deleted text end new text begin ; (ii) self-directed supports option eligible as defined under section
256B.0657, subdivision 2; or (iii) home and community-based waiver recipients living in
their own home or rented or leased apartment which is not owned, operated, or controlled
by a provider of service not related by blood or marriage new text end .

new text begin (2) Notwithstanding subdivision 3, paragraph (c), an individual eligible for the
shelter needy benefit under subdivision 5, paragraph (f), is considered a household of one. new text end
An eligible individual who receives this benefit prior to age 65 may continue to receive
the benefit after the age of 65.

new text begin (3) new text end "Shelter needy" means that the assistance unit incurs monthly shelter costs that
exceed 40 percent of the assistance unit's gross income before the application of this
special needs standard. "Gross income" for the purposes of this section is the applicant's or
recipient's income as defined in section 256D.35, subdivision 10, or the standard specified
in subdivision 3, new text begin paragraph (a) or (b), new text end whichever is greater. A recipient of a federal or
state housing subsidy, that limits shelter costs to a percentage of gross income, shall not be
considered shelter needy for purposes of this paragraph.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2009.
new text end

Sec. 15.

Laws 2006, chapter 282, article 20, section 37, as amended by Laws 2007,
chapter 147, article 7, section 69, is amended to read:

Sec. 37. REPAYMENT DELAY.

deleted text begin (a) deleted text end A county that overspent its allowed amounts in calendar year 2004 or 2005 under
the waivered services program for persons with developmental disabilities shall deleted text begin not be
required to deleted text end pay back the amount of overspending new text begin by January 2, 2009 new text end . deleted text begin This section applies
to Fillmore, Steele, and St. Louis Counties. deleted text end

deleted text begin (b) Carver County is not required to pay back the amount of overspending under
the waivered services program for persons with developmental disabilities for calendar
years 2004 and 2005 until June 30, 2009.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 16. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2006, section 256B.441, subdivision 25, new text end new text begin is repealed.
new text end

new text begin Minnesota Statutes 2007 Supplement, section 256B.441, subdivisions 1, 14a, 30,
31, 48, 49, 50, 51, 52, 53, 54, 55, 56, and 58, new text end new text begin are repealed.
new text end

ARTICLE 2

AGENCY MANAGEMENT

Section 1.

Minnesota Statutes 2007 Supplement, section 256.01, subdivision 2, is
amended to read:

Subd. 2.

Specific powers.

Subject to the provisions of section 241.021, subdivision
2, the commissioner of human services shall carry out the specific duties in paragraphs (a)
through (cc):

(a) Administer and supervise all forms of public assistance provided for by state law
and other welfare activities or services as are vested in the commissioner. Administration
and supervision of human services activities or services includes, but is not limited to,
assuring timely and accurate distribution of benefits, completeness of service, and quality
program management. In addition to administering and supervising human services
activities vested by law in the department, the commissioner shall have the authority to:

(1) require county agency participation in training and technical assistance programs
to promote compliance with statutes, rules, federal laws, regulations, and policies
governing human services;

(2) monitor, on an ongoing basis, the performance of county agencies in the
operation and administration of human services, enforce compliance with statutes, rules,
federal laws, regulations, and policies governing welfare services and promote excellence
of administration and program operation;

(3) develop a quality control program or other monitoring program to review county
performance and accuracy of benefit determinations;

(4) require county agencies to make an adjustment to the public assistance benefits
issued to any individual consistent with federal law and regulation and state law and rule
and to issue or recover benefits as appropriate;

(5) delay or deny payment of all or part of the state and federal share of benefits and
administrative reimbursement according to the procedures set forth in section 256.017;

(6) make contracts with and grants to public and private agencies and organizations,
both profit and nonprofit, and individuals, using appropriated funds; and

(7) enter into contractual agreements with federally recognized Indian tribes with
a reservation in Minnesota to the extent necessary for the tribe to operate a federally
approved family assistance program or any other program under the supervision of the
commissioner. The commissioner shall consult with the affected county or counties in
the contractual agreement negotiations, if the county or counties wish to be included,
in order to avoid the duplication of county and tribal assistance program services. The
commissioner may establish necessary accounts for the purposes of receiving and
disbursing funds as necessary for the operation of the programs.

(b) Inform county agencies, on a timely basis, of changes in statute, rule, federal law,
regulation, and policy necessary to county agency administration of the programs.

(c) Administer and supervise all child welfare activities; promote the enforcement of
laws protecting disabled, dependent, neglected and delinquent children, and children born
to mothers who were not married to the children's fathers at the times of the conception
nor at the births of the children; license and supervise child-caring and child-placing
agencies and institutions; supervise the care of children in boarding and foster homes or
in private institutions; and generally perform all functions relating to the field of child
welfare now vested in the State Board of Control.

(d) Administer and supervise all noninstitutional service to disabled persons,
including those who are visually impaired, hearing impaired, or physically impaired
or otherwise disabled. The commissioner may provide and contract for the care and
treatment of qualified indigent children in facilities other than those located and available
at state hospitals when it is not feasible to provide the service in state hospitals.

(e) Assist and actively cooperate with other departments, agencies and institutions,
local, state, and federal, by performing services in conformity with the purposes of Laws
1939, chapter 431.

(f) Act as the agent of and cooperate with the federal government in matters of
mutual concern relative to and in conformity with the provisions of Laws 1939, chapter
431, including the administration of any federal funds granted to the state to aid in the
performance of any functions of the commissioner as specified in Laws 1939, chapter 431,
and including the promulgation of rules making uniformly available medical care benefits
to all recipients of public assistance, at such times as the federal government increases its
participation in assistance expenditures for medical care to recipients of public assistance,
the cost thereof to be borne in the same proportion as are grants of aid to said recipients.

(g) Establish and maintain any administrative units reasonably necessary for the
performance of administrative functions common to all divisions of the department.

(h) Act as designated guardian of both the estate and the person of all the wards of
the state of Minnesota, whether by operation of law or by an order of court, without any
further act or proceeding whatever, except as to persons committed as developmentally
disabled. For children under the guardianship of the commissioner or a tribe in Minnesota
recognized by the Secretary of the Interior whose interests would be best served by
adoptive placement, the commissioner may contract with a licensed child-placing agency
or a Minnesota tribal social services agency to provide adoption services. A contract
with a licensed child-placing agency must be designed to supplement existing county
efforts and may not replace existing county programs or tribal social services, unless the
replacement is agreed to by the county board and the appropriate exclusive bargaining
representative, tribal governing body, or the commissioner has evidence that child
placements of the county continue to be substantially below that of other counties. Funds
encumbered and obligated under an agreement for a specific child shall remain available
until the terms of the agreement are fulfilled or the agreement is terminated.

(i) Act as coordinating referral and informational center on requests for service for
newly arrived immigrants coming to Minnesota.

(j) The specific enumeration of powers and duties as hereinabove set forth shall in no
way be construed to be a limitation upon the general transfer of powers herein contained.

(k) Establish county, regional, or statewide schedules of maximum fees and charges
which may be paid by county agencies for medical, dental, surgical, hospital, nursing and
nursing home care and medicine and medical supplies under all programs of medical
care provided by the state and for congregate living care under the income maintenance
programs.

(l) Have the authority to conduct and administer experimental projects to test
methods and procedures of administering assistance and services to recipients or potential
recipients of public welfare. To carry out such experimental projects, it is further provided
that the commissioner of human services is authorized to waive the enforcement of
existing specific statutory program requirements, rules, and standards in one or more
counties. The order establishing the waiver shall provide alternative methods and
procedures of administration, shall not be in conflict with the basic purposes, coverage, or
benefits provided by law, and in no event shall the duration of a project exceed four years.
It is further provided that no order establishing an experimental project as authorized by
the provisions of this section shall become effective until the following conditions have
been met:

(1) the secretary of health and human services of the United States has agreed, for
the same project, to waive state plan requirements relative to statewide uniformity; and

(2) a comprehensive plan, including estimated project costs, shall be approved by
the Legislative Advisory Commission and filed with the commissioner of administration.

(m) According to federal requirements, establish procedures to be followed by
local welfare boards in creating citizen advisory committees, including procedures for
selection of committee members.

(n) Allocate federal fiscal disallowances or sanctions which are based on quality
control error rates for the aid to families with dependent children program formerly
codified in sections 256.72 to 256.87, medical assistance, or food stamp program in the
following manner:

(1) one-half of the total amount of the disallowance shall be borne by the county
boards responsible for administering the programs. For the medical assistance and the
AFDC program formerly codified in sections 256.72 to 256.87, disallowances shall be
shared by each county board in the same proportion as that county's expenditures for the
sanctioned program are to the total of all counties' expenditures for the AFDC program
formerly codified in sections 256.72 to 256.87, and medical assistance programs. For the
food stamp program, sanctions shall be shared by each county board, with 50 percent of
the sanction being distributed to each county in the same proportion as that county's
administrative costs for food stamps are to the total of all food stamp administrative costs
for all counties, and 50 percent of the sanctions being distributed to each county in the
same proportion as that county's value of food stamp benefits issued are to the total of
all benefits issued for all counties. Each county shall pay its share of the disallowance
to the state of Minnesota. When a county fails to pay the amount due hereunder, the
commissioner may deduct the amount from reimbursement otherwise due the county, or
the attorney general, upon the request of the commissioner, may institute civil action
to recover the amount due; and

(2) notwithstanding the provisions of clause (1), if the disallowance results from
knowing noncompliance by one or more counties with a specific program instruction, and
that knowing noncompliance is a matter of official county board record, the commissioner
may require payment or recover from the county or counties, in the manner prescribed in
clause (1), an amount equal to the portion of the total disallowance which resulted from the
noncompliance, and may distribute the balance of the disallowance according to clause (1).

(o) Develop and implement special projects that maximize reimbursements and
result in the recovery of money to the state. For the purpose of recovering state money,
the commissioner may enter into contracts with third parties. Any recoveries that result
from projects or contracts entered into under this paragraph shall be deposited in the
state treasury and credited to a special account until the balance in the account reaches
$1,000,000. When the balance in the account exceeds $1,000,000, the excess shall be
transferred and credited to the general fund. All money in the account is appropriated to
the commissioner for the purposes of this paragraph.

(p) Have the authority to make direct payments to facilities providing shelter
to women and their children according to section 256D.05, subdivision 3. Upon
the written request of a shelter facility that has been denied payments under section
256D.05, subdivision 3, the commissioner shall review all relevant evidence and make
a determination within 30 days of the request for review regarding issuance of direct
payments to the shelter facility. Failure to act within 30 days shall be considered a
determination not to issue direct payments.

(q) Have the authority to establish and enforce the following county reporting
requirements:

(1) the commissioner shall establish fiscal and statistical reporting requirements
necessary to account for the expenditure of funds allocated to counties for human
services programs. When establishing financial and statistical reporting requirements, the
commissioner shall evaluate all reports, in consultation with the counties, to determine if
the reports can be simplified or the number of reports can be reduced;

(2) the county board shall submit monthly or quarterly reports to the department
as required by the commissioner. Monthly reports are due no later than 15 working days
after the end of the month. Quarterly reports are due no later than 30 calendar days after
the end of the quarter, unless the commissioner determines that the deadline must be
shortened to 20 calendar days to avoid jeopardizing compliance with federal deadlines
or risking a loss of federal funding. Only reports that are complete, legible, and in the
required format shall be accepted by the commissioner;

(3) if the required reports are not received by the deadlines established in clause (2),
the commissioner may delay payments and withhold funds from the county board until
the next reporting period. When the report is needed to account for the use of federal
funds and the late report results in a reduction in federal funding, the commissioner shall
withhold from the county boards with late reports an amount equal to the reduction in
federal funding until full federal funding is received;

(4) a county board that submits reports that are late, illegible, incomplete, or not
in the required format for two out of three consecutive reporting periods is considered
noncompliant. When a county board is found to be noncompliant, the commissioner
shall notify the county board of the reason the county board is considered noncompliant
and request that the county board develop a corrective action plan stating how the
county board plans to correct the problem. The corrective action plan must be submitted
to the commissioner within 45 days after the date the county board received notice
of noncompliance;

(5) the final deadline for fiscal reports or amendments to fiscal reports is one year
after the date the report was originally due. If the commissioner does not receive a report
by the final deadline, the county board forfeits the funding associated with the report for
that reporting period and the county board must repay any funds associated with the
report received for that reporting period;

(6) the commissioner may not delay payments, withhold funds, or require repayment
under clause (3) or (5) if the county demonstrates that the commissioner failed to
provide appropriate forms, guidelines, and technical assistance to enable the county to
comply with the requirements. If the county board disagrees with an action taken by the
commissioner under clause (3) or (5), the county board may appeal the action according
to sections 14.57 to 14.69; and

(7) counties subject to withholding of funds under clause (3) or forfeiture or
repayment of funds under clause (5) shall not reduce or withhold benefits or services to
clients to cover costs incurred due to actions taken by the commissioner under clause
(3) or (5).

(r) Allocate federal fiscal disallowances or sanctions for audit exceptions when
federal fiscal disallowances or sanctions are based on a statewide random sample deleted text begin for
the foster care program under title IV-E of the Social Security Act, United States Code,
title 42, deleted text end in direct proportion to each county's deleted text begin title IV-E foster care maintenance deleted text end claim
for that period.

(s) Be responsible for ensuring the detection, prevention, investigation, and
resolution of fraudulent activities or behavior by applicants, recipients, and other
participants in the human services programs administered by the department.

(t) Require county agencies to identify overpayments, establish claims, and utilize
all available and cost-beneficial methodologies to collect and recover these overpayments
in the human services programs administered by the department.

(u) Have the authority to administer a drug rebate program for drugs purchased
pursuant to the prescription drug program established under section 256.955 after the
beneficiary's satisfaction of any deductible established in the program. The commissioner
shall require a rebate agreement from all manufacturers of covered drugs as defined in
section 256B.0625, subdivision 13. Rebate agreements for prescription drugs delivered on
or after July 1, 2002, must include rebates for individuals covered under the prescription
drug program who are under 65 years of age. For each drug, the amount of the rebate shall
be equal to the rebate as defined for purposes of the federal rebate program in United
States Code, title 42, section 1396r-8. The manufacturers must provide full payment
within 30 days of receipt of the state invoice for the rebate within the terms and conditions
used for the federal rebate program established pursuant to section 1927 of title XIX of
the Social Security Act. The manufacturers must provide the commissioner with any
information necessary to verify the rebate determined per drug. The rebate program shall
utilize the terms and conditions used for the federal rebate program established pursuant to
section 1927 of title XIX of the Social Security Act.

(v) Have the authority to administer the federal drug rebate program for drugs
purchased under the medical assistance program as allowed by section 1927 of title XIX
of the Social Security Act and according to the terms and conditions of section 1927.
Rebates shall be collected for all drugs that have been dispensed or administered in an
outpatient setting and that are from manufacturers who have signed a rebate agreement
with the United States Department of Health and Human Services.

(w) Have the authority to administer a supplemental drug rebate program for drugs
purchased under the medical assistance program. The commissioner may enter into
supplemental rebate contracts with pharmaceutical manufacturers and may require prior
authorization for drugs that are from manufacturers that have not signed a supplemental
rebate contract. Prior authorization of drugs shall be subject to the provisions of section
256B.0625, subdivision 13.

(x) Operate the department's communication systems account established in Laws
1993, First Special Session chapter 1, article 1, section 2, subdivision 2, to manage shared
communication costs necessary for the operation of the programs the commissioner
supervises. A communications account may also be established for each regional
treatment center which operates communications systems. Each account must be used
to manage shared communication costs necessary for the operations of the programs the
commissioner supervises. The commissioner may distribute the costs of operating and
maintaining communication systems to participants in a manner that reflects actual usage.
Costs may include acquisition, licensing, insurance, maintenance, repair, staff time and
other costs as determined by the commissioner. Nonprofit organizations and state, county,
and local government agencies involved in the operation of programs the commissioner
supervises may participate in the use of the department's communications technology and
share in the cost of operation. The commissioner may accept on behalf of the state any
gift, bequest, devise or personal property of any kind, or money tendered to the state for
any lawful purpose pertaining to the communication activities of the department. Any
money received for this purpose must be deposited in the department's communication
systems accounts. Money collected by the commissioner for the use of communication
systems must be deposited in the state communication systems account and is appropriated
to the commissioner for purposes of this section.

(y) Receive any federal matching money that is made available through the medical
assistance program for the consumer satisfaction survey. Any federal money received for
the survey is appropriated to the commissioner for this purpose. The commissioner may
expend the federal money received for the consumer satisfaction survey in either year of
the biennium.

(z) Designate community information and referral call centers and incorporate
cost reimbursement claims from the designated community information and referral
call centers into the federal cost reimbursement claiming processes of the department
according to federal law, rule, and regulations. Existing information and referral centers
provided by Greater Twin Cities United Way or existing call centers for which Greater
Twin Cities United Way has legal authority to represent, shall be included in these
designations upon review by the commissioner and assurance that these services are
accredited and in compliance with national standards. Any reimbursement is appropriated
to the commissioner and all designated information and referral centers shall receive
payments according to normal department schedules established by the commissioner
upon final approval of allocation methodologies from the United States Department of
Health and Human Services Division of Cost Allocation or other appropriate authorities.

(aa) Develop recommended standards for foster care homes that address the
components of specialized therapeutic services to be provided by foster care homes with
those services.

(bb) Authorize the method of payment to or from the department as part of the
human services programs administered by the department. This authorization includes the
receipt or disbursement of funds held by the department in a fiduciary capacity as part of
the human services programs administered by the department.

(cc) Have the authority to administer a drug rebate program for drugs purchased for
persons eligible for general assistance medical care under section 256D.03, subdivision 3.
For manufacturers that agree to participate in the general assistance medical care rebate
program, the commissioner shall enter into a rebate agreement for covered drugs as
defined in section 256B.0625, subdivisions 13 and 13d. For each drug, the amount of the
rebate shall be equal to the rebate as defined for purposes of the federal rebate program in
United States Code, title 42, section 1396r-8. The manufacturers must provide payment
within the terms and conditions used for the federal rebate program established under
section 1927 of title XIX of the Social Security Act. The rebate program shall utilize
the terms and conditions used for the federal rebate program established under section
1927 of title XIX of the Social Security Act.

Effective January 1, 2006, drug coverage under general assistance medical care shall
be limited to those prescription drugs that:

(1) are covered under the medical assistance program as described in section
256B.0625, subdivisions 13 and 13d; and

(2) are provided by manufacturers that have fully executed general assistance
medical care rebate agreements with the commissioner and comply with such agreements.
Prescription drug coverage under general assistance medical care shall conform to
coverage under the medical assistance program according to section 256B.0625,
subdivisions 13 to 13g.

The rebate revenues collected under the drug rebate program are deposited in the
general fund.

ARTICLE 3

STATE-OPERATED SERVICES

Section 1.

new text begin [246B.06] ESTABLISHMENT OF MINNESOTA STATE INDUSTRIES.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment; purpose. new text end

new text begin (a) The commissioner of human
services may establish, equip, maintain, and operate the Minnesota State Industries at
any Minnesota sex offender program facility under this chapter. The commissioner
may establish industrial and commercial activities for sex offender treatment patients
as the commissioner deems necessary and suitable to the profitable employment,
educational training, and development of proper work habits of patients consistent with
the requirements in section 246B.05. The industrial and commercial activities authorized
by this section are designated Minnesota State Industries and must be for the primary
purpose of sustaining and ensuring Minnesota State Industries' self-sufficiency, providing
educational training, meaningful employment, and the teaching of proper work habits to
the patients of the Minnesota sex offender program under this chapter, and not solely as
competitive business ventures.
new text end

new text begin (b) The net profits from Minnesota State Industries must be used for the benefit
of the patients as it relates to building education and self-sufficiency skills. Prior to
the establishment of any industrial and commercial activity, the commissioner of
human services may consult with stakeholders including representatives of business,
industry, organized labor, the commissioner of education, the state Apprenticeship
Council, the commissioner of labor and industry, the commissioner of employment and
economic development, the commissioner of administration, and other stakeholders the
commissioner deems qualified. The purpose of the stakeholder consultation is to determine
the quantity and nature of the goods, wares, merchandise, and services to be made or
provided, and the types of processes to be used in their manufacture, processing, repair,
and production consistent with the greatest opportunity for the reform and educational
training of the patients, and with the best interests of the state, business, industry, and labor.
new text end

new text begin (c) The commissioner of human services shall, at all times in the conduct of any
industrial or commercial activity authorized by this section, utilize patient labor to the
greatest extent feasible, provided that the commissioner may employ all administrative,
supervisory, and other skilled workers necessary to the proper instruction of the patients
and the profitable and efficient operation of the industrial and commercial activities
authorized by this section.
new text end

new text begin (d) The commissioner of human services may authorize the director of any
Minnesota sex offender treatment facility under the commissioner's control to accept
work projects from outside sources for processing, fabrication, or repair, provided that
preference is given to the performance of work projects for state departments and agencies.
new text end

new text begin Subd. 2. new text end

new text begin Revolving fund. new text end

new text begin As described in section 246B.05, subdivision 2, there
is established a Minnesota State Industries revolving fund under the control of the
commissioner of human services. The revolving fund must be used for Minnesota State
Industries authorized under this section, including, but not limited to, the purchase of
equipment and raw materials, the payment of salaries and wages, and other necessary
expenses as determined by the commissioner of human services. The purchase of
services, materials, and commodities used in and held for resale are not subject to the
competitive bidding procedures of section 16C.06, but are subject to all other provisions
of chapters 16B and 16C. When practical, purchases must be made from small targeted
group businesses designated under section 16C.16. Additionally, the expenses of patient
educational training and self-sufficiency skills may be financed from the revolving fund
in an amount to be determined by the commissioner or designee. The proceeds and
income from all Minnesota State Industries conducted at the Minnesota sex offender
treatment facilities must be deposited in the revolving fund subject to disbursement under
subdivision 3. The commissioner of human services may request that money in the fund
be invested pursuant to section 11A.25. Proceeds from the investment not currently
needed must be accounted for separately and credited to the revolving fund.
new text end

new text begin Subd. 3. new text end

new text begin Disbursement from fund. new text end

new text begin The Minnesota State Industries revolving
fund must be deposited in the state treasury and paid out only on proper vouchers as
authorized and approved by the commissioner of human services, and in the same manner
and under the same restrictions as are now provided by law for the disbursement of funds
by the commissioner. An amount deposited in the state treasury equal to six months
of net operating cash as determined by the prior 12 months of revenue and cash flow
statements must be restricted for use only by Minnesota State Industries as described
under subdivision 2. For purposes of this subdivision, "net operating cash" means net
income, minus sales, plus cost of goods sold. Cost of goods sold include all direct costs
of industry products attributable to the goods' production.
new text end

new text begin Subd. 4. new text end

new text begin Revolving fund; borrowing. new text end

new text begin The commissioner of human services is
authorized to borrow sums of money as the commissioner deems necessary to meet
current demands on the Minnesota State Industries revolving fund. The sums borrowed
must not exceed, in any calendar year, six months of net operating cash as determined
by the previous 12 months of the industries' revenue and cash flow statements. If the
commissioner of human services determines that borrowing of funds is necessary, the
commissioner of human services shall certify this need to the commissioner of finance.
Funds may be borrowed from general fund appropriations to the Minnesota sex offender
program with the authorization of the commissioner of finance. Upon authorization of the
commissioner of finance, the transfer must be made and credited to the Minnesota State
Industries revolving fund. The sum transferred to the Minnesota State Industries revolving
fund must be repaid by the commissioner of human services from the revolving fund to
the fund from which it was transferred in a time period specified by the commissioner
of finance, but by no later than the end of the biennium, as defined in section 16A.011,
in which the loan is made. When any transfer is made to the Minnesota State Industries
revolving fund, the commissioner of finance shall notify the commissioner of human
services of the amount transferred to the fund and the date the transfer is to be repaid.
new text end

new text begin Subd. 5. new text end

new text begin Federal grant fund transfers. new text end

new text begin Grants received by the commissioner of
human services from the federal government for any vocational training program or for
administration by the commissioner of human services must (1) be credited to a federal
grant fund and then (2) be transferred from the federal grant fund to the credit of the
commissioner of human services in the appropriate account upon certification by the
commissioner of human services that the amounts requested to be transferred have been
earned or are required for the purposes of this section. Funds received by the federal
grant fund need not be budgeted as such, provided transfers from the fund are budgeted
for allotment purposes in the appropriate appropriation.
new text end

new text begin Subd. 6. new text end

new text begin Wages. new text end

new text begin Notwithstanding section 177.24 or any other law to the
contrary, wages paid to patients working within this program are at the discretion of the
commissioner of human services.
new text end

ARTICLE 4

CHILDREN AND FAMILY SERVICES

Section 1.

Minnesota Statutes 2007 Supplement, section 256.741, subdivision 1,
is amended to read:

Subdivision 1.

deleted text begin Public assistance deleted text end new text begin Definitions new text end .

(a) The term "direct support" as used
in this chapter and chapters 257, 518, 518A, and 518C refers to an assigned support
payment from an obligor which is paid directly to a recipient of deleted text begin TANF or MFIP deleted text end new text begin public
assistance new text end .

(b) The term "public assistance" as used in this chapter and chapters 257, 518, 518A,
and 518C, includes any form of assistance provided under the AFDC program formerly
codified in sections 256.72 to 256.87, MFIP and MFIP-R formerly codified under chapter
256, MFIP under chapter 256J, work first program new text begin formerly codified new text end under chapter 256K;
child care assistance provided through the child care fund under chapter 119B; any form
of medical assistance under chapter 256B; MinnesotaCare under chapter 256L; and foster
care as provided under title IV-E of the Social Security Act.

(c) The term "child support agency" as used in this section refers to the public
authority responsible for child support enforcement.

(d) The term "public assistance agency" as used in this section refers to a public
authority providing public assistance to an individual.

new text begin (e) The terms "child support" and "arrears" as used in this section have the meanings
provided in section 518A.26.
new text end

new text begin (f) The term "maintenance" as used in this section has the meaning provided in
section 518.003.
new text end

Sec. 2.

Minnesota Statutes 2006, section 256.741, subdivision 2, is amended to read:

Subd. 2.

Assignment of support and maintenance rights.

(a) An individual
receiving public assistance in the form of assistance under any of the following programs:
the AFDC program formerly codified in sections 256.72 to 256.87, MFIP under chapter
256J, MFIP-R and MFIP formerly codified under chapter 256, or work first new text begin program
formerly codified under chapter 256K new text end is considered to have assigned to the state at the
time of application all rights to child support and maintenance from any other person the
applicant or recipient may have in the individual's own behalf or in the behalf of any other
family member for whom application for public assistance is made. An assistance unit is
ineligible for the Minnesota family investment program unless the caregiver assigns all
rights to child support and deleted text begin spousal deleted text end maintenance benefits according to this section.

(1) deleted text begin An deleted text end new text begin The new text end assignment deleted text begin made according to this section deleted text end is effective as to deleted text begin :
deleted text end

deleted text begin (i) deleted text end any current child support and current deleted text begin spousal deleted text end maintenance deleted text begin ; and deleted text end new text begin .
new text end

deleted text begin (ii) any accrued child support and spousal maintenance arrears.
deleted text end

deleted text begin (2) An assignment made after September 30, 1997, is effective as to:
deleted text end

deleted text begin (i) any current child support and current spousal maintenance;
deleted text end

deleted text begin (ii) any accrued child support and spousal maintenance arrears collected before
October 1, 2000, or the date the individual terminates assistance, whichever is later; and
deleted text end

deleted text begin (iii) any accrued child support and spousal maintenance arrears collected under
federal tax intercept.
deleted text end

new text begin (2) Any child support or maintenance arrears that accrue while an individual is
receiving public assistance in the form of assistance under any of the programs listed in
this paragraph are permanently assigned to the state.
new text end

new text begin (3) The assignment of current child support and current maintenance ends on the
date the individual ceases to receive or is no longer eligible to receive public assistance
under any of the programs listed in this paragraph.
new text end

(b) An individual receiving public assistance in the form of medical assistance,
including MinnesotaCare, is considered to have assigned to the state at the time of
application all rights to medical support from any other person the individual may have
in the individual's own behalf or in the behalf of any other family member for whom
medical assistance is provided.

new text begin (1) new text end An assignment made after September 30, 1997, is effective as to any medical
support accruing after the date of medical assistance or MinnesotaCare eligibility.

new text begin (2) Any medical support arrears that accrue while an individual is receiving public
assistance in the form of medical assistance, including MinnesotaCare, are permanently
assigned to the state.
new text end

new text begin (3) The assignment of current medical support ends on the date the individual ceases
to receive or is no longer eligible to receive public assistance in the form of medical
assistance or MinnesotaCare.
new text end

(c) An individual receiving public assistance in the form of child care assistance
under the child care fund pursuant to chapter 119B is considered to have assigned to the
state at the time of application all rights to child care support from any other person the
individual may have in the individual's own behalf or in the behalf of any other family
member for whom child care assistance is provided.

deleted text begin An deleted text end new text begin (1) The new text end assignment deleted text begin made according to this paragraph deleted text end is effective as to deleted text begin :
deleted text end

deleted text begin (1) deleted text end any current child care support deleted text begin and any child care support arrears assigned and
accruing after July 1, 1997, that are collected before October 1, 2000; and deleted text end new text begin .
new text end

(2) deleted text begin any accrued child care support arrears collected under federal tax intercept. deleted text end new text begin Any
child support arrears that accrue while an individual is receiving public assistance in the
form of child care assistance under the child care fund in chapter 119B are permanently
assigned to the state.
new text end

new text begin (3) The assignment of current child care support ends on the date the individual
ceases to receive or is no longer eligible to receive public assistance in the form of child
care assistance under the child care fund under chapter 119B.
new text end

Sec. 3.

Minnesota Statutes 2006, section 256.741, subdivision 2a, is amended to read:

Subd. 2a.

deleted text begin Families-first deleted text end Distribution of child support deleted text begin arrearages deleted text end .

new text begin (a) The
state shall distribute current child support and maintenance received by the state to an
individual who assigns the right to that support under subdivision 2, paragraph (a).
new text end

new text begin (b) new text end When the public authority collects new text begin child new text end support arrearages on behalf of an
individual who is receiving new text begin public new text end assistance deleted text begin provided under MFIP or MFIP-R under
this chapter, MFIP under chapter 256J, or work first under chapter 256K, and the public
authority has the option of applying the collection to arrears permanently assigned to the
state or to arrears temporarily assigned to the state deleted text end , the public authority shall first apply the
collection to satisfy those arrears that are permanently assigned to the state.

new text begin (c) When the public authority collects child support arrearages on behalf of an
individual who is not receiving public assistance, the public authority shall first apply the
collection to satisfy those arrears that are not permanently assigned to the state.
new text end

new text begin (d) When the public authority collects child support arrearages certified under the
federal tax offset, the public authority shall first apply the collection to satisfy those arrears
that are permanently assigned to the state.
new text end

Sec. 4.

Minnesota Statutes 2006, section 256.741, subdivision 3, is amended to read:

Subd. 3.

Existing assignments.

Assignments based on the receipt of public
assistance in existence prior to July 1, 1997, are permanently assigned to the state. new text begin Arrears
that accrued prior to the receipt of assistance that were assigned to the state between July
1, 1997, and October 1, 2009, will no longer be assigned as of October 1, 2009.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective October 1, 2009.
new text end

Sec. 5.

Minnesota Statutes 2007 Supplement, section 256J.621, is amended to read:

256J.621 WORK PARTICIPATION deleted text begin BONUS deleted text end new text begin FOOD BENEFITS new text end .

(a) new text begin Effective March 1, 2010, new text end upon exiting the diversionary work program (DWP) or
upon terminating new text begin the Minnesota family investment program ( new text end MFIP new text begin ) new text end deleted text begin cash assistance deleted text end with
earnings, a participant who is employed may be eligible for deleted text begin transitional assistance deleted text end new text begin work
participation food benefits new text end of $75 per month to assist in meeting the family's basic needs
as the participant continues to move toward self-sufficiency.

(b) To be eligible for deleted text begin a transitional assistance payment deleted text end new text begin work participation food
benefits new text end , the participant shall not receive MFIP deleted text begin cash assistance deleted text end or diversionary work
program assistance during the month and the participant or participants must meet the
following work requirements:

(1) if the participant is a single caregiver and has a child under six years of age, the
participant must be employed at least 87 hours per month;

(2) if the participant is a single caregiver and does not have a child under six years of
age, the participant must be employed at least 130 hours per month; or

(3) if the household is a two-parent family, at least one of the parents must be
employed an average of at least 130 hours per month.

Whenever a participant exits the diversionary work program or is terminated from
MFIP deleted text begin cash assistance deleted text end and meets the other criteria in this section, deleted text begin transitional assistance is deleted text end
new text begin work participation food benefits are new text end available for up to 24 consecutive months.

(c) Expenditures on the program are maintenance of effort state funds for participants
under paragraph (b), clauses (1) and (2). Expenditures for participants under paragraph
(b), clause (3), are nonmaintenance of effort funds. Months in which a participant receives
deleted text begin transitional assistance deleted text end new text begin work participation food benefits new text end under this section do not count
toward the participant's MFIP 60-month time limit.

Sec. 6.

Minnesota Statutes 2006, section 518A.50, is amended to read:

518A.50 PAYMENT TO PUBLIC AGENCY.

(a) This section applies to all proceedings involving a support order, including, but
not limited to, a support order establishing an order for past support or reimbursement
of public assistance.

(b) The court shall direct that all payments ordered for maintenance or support
be made to the public authority responsible for child support enforcement so long as
the obligee is receiving or has applied for public assistance, or has applied for child
support or maintenance collection services. Public authorities responsible for child
support enforcement may act on behalf of other public authorities responsible for child
support enforcement, including the authority to represent the legal interests of or execute
documents on behalf of the other public authority in connection with the establishment,
enforcement, and collection of child support, maintenance, or medical support, and
collection on judgments.

(c) Payments made to the public authority deleted text begin other than payments under section
518A.53 deleted text end must be credited as of the date the payment is received by the central collections
unit deleted text begin . deleted text end new text begin , except that payments made under section 518A.53 may be considered to have been
paid as of the date the obligor received the remainder of the income.
new text end

(d) Monthly amounts received by the public agency responsible for child support
enforcement from the obligor that are greater than the monthly amount of public assistance
granted to the obligee must be remitted to the obligee.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective October 1, 2009.
new text end

Sec. 7.

Minnesota Statutes 2006, section 518A.53, subdivision 5, is amended to read:

Subd. 5.

Payor of funds responsibilities.

(a) An order for or notice of withholding
is binding on a payor of funds upon receipt. Withholding must begin no later than the first
pay period that occurs after 14 days following the date of receipt of the order for or notice
of withholding. In the case of a financial institution, preauthorized transfers must occur in
accordance with a court-ordered payment schedule.

(b) A payor of funds shall withhold from the income payable to the obligor the
amount specified in the order or notice of withholding and amounts specified under
subdivisions 6 and 9 and shall remit the amounts withheld to the public authority within
seven business days of the date the obligor is paid the remainder of the income. The payor
of funds shall include with the remittance the Social Security number of the obligor, the
case type indicator as provided by the public authority and the date the obligor is paid
the remainder of the income. deleted text begin The obligor is considered to have paid the amount withheld
as of the date the obligor received the remainder of the income. deleted text end A payor of funds may
combine all amounts withheld from one pay period into one payment to each public
authority, but shall separately identify each obligor making payment.

(c) A payor of funds shall not discharge, or refuse to hire, or otherwise discipline an
employee as a result of wage or salary withholding authorized by this section. A payor of
funds shall be liable to the obligee for any amounts required to be withheld. A payor of
funds that fails to withhold or transfer funds in accordance with this section is also liable
to the obligee for interest on the funds at the rate applicable to judgments under section
549.09, computed from the date the funds were required to be withheld or transferred.
A payor of funds is liable for reasonable attorney fees of the obligee or public authority
incurred in enforcing the liability under this paragraph. A payor of funds that has failed
to comply with the requirements of this section is subject to contempt sanctions under
section 518A.73. If the payor of funds is an employer or independent contractor and
violates this subdivision, a court may award the obligor twice the wages lost as a result
of this violation. If a court finds a payor of funds violated this subdivision, the court
shall impose a civil fine of not less than $500. The liabilities in this paragraph apply to
intentional noncompliance with this section.

(d) If a single employee is subject to multiple withholding orders or multiple notices
of withholding for the support of more than one child, the payor of funds shall comply
with all of the orders or notices to the extent that the total amount withheld from the
obligor's income does not exceed the limits imposed under the Consumer Credit Protection
Act, United States Code, title 15, section 1673(b), giving priority to amounts designated in
each order or notice as current support as follows:

(1) if the total of the amounts designated in the orders for or notices of withholding
as current support exceeds the amount available for income withholding, the payor of
funds shall allocate to each order or notice an amount for current support equal to the
amount designated in that order or notice as current support, divided by the total of the
amounts designated in the orders or notices as current support, multiplied by the amount
of the income available for income withholding; and

(2) if the total of the amounts designated in the orders for or notices of withholding
as current support does not exceed the amount available for income withholding, the
payor of funds shall pay the amounts designated as current support, and shall allocate to
each order or notice an amount for past due support, equal to the amount designated in
that order or notice as past due support, divided by the total of the amounts designated in
the orders or notices as past due support, multiplied by the amount of income remaining
available for income withholding after the payment of current support.

(e) When an order for or notice of withholding is in effect and the obligor's
employment is terminated, the obligor and the payor of funds shall notify the public
authority of the termination within ten days of the termination date. The termination
notice shall include the obligor's home address and the name and address of the obligor's
new payor of funds, if known.

(f) A payor of funds may deduct one dollar from the obligor's remaining salary for
each payment made pursuant to an order for or notice of withholding under this section to
cover the expenses of withholding.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective October 1, 2009.
new text end

Sec. 8.

Laws 2007, chapter 147, article 2, section 21, the effective date, is amended to
read:

EFFECTIVE DATE.

Subdivision 1 is effective February 1, 2008, and subdivision
2 is effective deleted text begin May 1, 2008 deleted text end new text begin March 1, 2009 new text end .

Sec. 9.

Laws 2007, chapter 147, article 19, section 3, subdivision 1, is amended to read:

Subdivision 1. Total Appropriation

$

5,294,627,000

$

5,695,458,000

Appropriations by Fund
	2008	2009
General	4,614,727,000	4,940,293,000
State Government Special Revenue	549,000	565,000
Health Care Access	426,628,000	492,759,000
Federal TANF	250,537,000	260,051,000
Lottery Prize Fund	2,185,000	1,790,000

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

Receipts for Systems Projects.
Appropriations and federal receipts for
information system projects for MAXIS,
PRISM, MMIS, and SSIS must be deposited
in the state system account authorized in
Minnesota Statutes, section 256.014. Money
appropriated for computer projects approved
by the Minnesota Office of Enterprise
Technology, funded by the legislature, and
approved by the commissioner of finance,
may be transferred from one project to
another and from development to operations
as the commissioner of human services
considers necessary. Any unexpended
balance in the appropriation for these
projects does not cancel but is available for
ongoing development and operations.

Pay for Performance. (a) Of the general
fund appropriation, $272,000 each year
is available to the commissioner of
human services only under the following
circumstances:

(1) $272,000 shall be made available by the
commissioner of finance on January 1, 2009,
only after notification by the commissioner
of human services to the commissioner of
finance and to the chairs of the relevant house
of representatives and senate finance and
policy committees that the average number
of days from the receipt of a MinnesotaCare
application at the state processing unit until
the initial eligibility determination of the
application was 30 days or less during the
period October 1, 2007, to September 30,
2008. Applications transferred from counties
to the state processing unit are excluded from
this calculation; and

(2) $272,000 shall be made available by the
commissioner of finance on January 1, 2009,
only after notification by the commissioner
of human services to the commissioner of
finance and to the chairs of the relevant
house of representatives and senate finance
and policy committees that the commissioner
initiated a separate treatment program for
persons in the Minnesota sex offenders
program who are between the ages of 18 and
25 by January 1, 2008.

(b) Regardless of whether these
appropriations are made available to
the commissioner of human services, they
shall be part of base level funding for the
biennium beginning July 1, 2009.

Purchasing Alliance Fund Transfer.
On September 1, 2007, any remaining
balance in the purchasing alliance stop-loss
fund account established under Minnesota
Statutes, section 256.956, shall transfer to
the general fund.

Nonfederal Share Transfers. The
nonfederal share of activities for which
federal administrative reimbursement is
appropriated to the commissioner may be
transferred to the special revenue fund.

TANF Maintenance of Effort. (a) In order
to meet the basic MOE requirements of the
TANF block grant specified under Code
of Federal Regulations, title 45, section
263.1, the commissioner may only report
nonfederal money expended for allowable
activities listed in the following clauses as
TANF/MOE expenditures:

(1) MFIP cash, diversionary work program,
and food assistance benefits under Minnesota
Statutes, chapter 256J;

(2) the child care assistance programs
under Minnesota Statutes, sections 119B.03
and 119B.05, and county child care
administrative costs under Minnesota
Statutes, section 119B.15;

(3) state and county MFIP administrative
costs under Minnesota Statutes, chapters
256J and 256K;

(4) state, county, and tribal MFIP
employment services under Minnesota
Statutes, chapters 256J and 256K;

(5) expenditures made on behalf of
noncitizen MFIP recipients who qualify
for the medical assistance without federal
financial participation program under
Minnesota Statutes, section 256B.06,
subdivision 4, paragraphs (d), (e), and (j);
and

(6) qualifying working family credit
expenditures under Minnesota Statutes,
section 290.0671.

(b) The commissioner shall ensure that
sufficient qualified nonfederal expenditures
are made each year to meet the state's
TANF/MOE requirements. For the activities
listed in paragraph (a), clauses (2) to
(6), the commissioner may only report
expenditures that are excluded from the
definition of assistance under Code of
Federal Regulations, title 45, section 260.31.

(c) The commissioner shall ensure that the
MOE used by the commissioner of finance
for the February and November forecasts
required under Minnesota Statutes, section
16A.103, contains expenditures under
paragraph (a), clause (1), equal to at least 16
percent of the total required under Code of
Federal Regulations, title 45, section 263.1.

(d) Minnesota Statutes, section 256.011,
subdivision 3, which requires that federal
grants or aids secured or obtained under that
subdivision be used to reduce any direct
appropriations provided by law, does not
apply if the grants or aids are federal TANF
funds.

new text begin (e) Beginning October 1, 2007, the
commissioner may not claim an amount
of TANF/MOE in excess of the 75 percent
standard in Code of Federal Regulations, title
45, section 263.1(a)(2), except:
new text end

new text begin (1) to the extent necessary to meet the
80 percent standard in Code of Federal
Regulations, title 45, section 263.1(a)(1), if
it is determined by the commissioner that
the state would not meet the TANF work
participation rate for the current year;
new text end

new text begin (2) any additional amounts under Code of
Federal Regulations, title 45, section 264.5,
that relate to replacement of TANF funds due
to the operation of TANF penalties; and
new text end

new text begin (3) any additional amounts that may
contribute to avoiding TANF work
participation penalties through the operation
of the excess MOE provisions of Code
of Federal Regulations, title 45, section
261.43(a)(2).
new text end

new text begin For the purposes of clauses (1) to (3),
the commissioner may supplement the
MOE claim with working family credit
expenditures or other qualified expenditures
to the extent the expenditures are otherwise
available after considering the expenditures
allowed in this section.
new text end

new text begin (f) If allowable by the federal Office of
Family Assistance, the commissioner may
claim excess MOE with respect to federal
fiscal years 2006 and 2007 to the extent
that working family credit expenditures or
other qualified expenditures are otherwise
available to supplement the state's MOE
claim for those years after considering the
expenditures allowed in this section.
new text end

deleted text begin (e) deleted text end new text begin (g) new text end Notwithstanding any contrary
provision in this article, this rider expires
June 30, 2011.

Working Family Credit Expenditures as
TANF/MOE. The commissioner may claim
as TANF/MOE up to $6,707,000 per year
for fiscal year 2008 through fiscal year 2011.
Notwithstanding any contrary provision in
this article, this rider expires June 30, 2011.

Additional Working Family Credit
Expenditures to be Claimed for
TANF/MOE. In addition to the amounts
provided in this section, the commissioner
may count the following amounts of working
family credit expenditure as TANF/MOE:

(1) fiscal year 2008, deleted text begin $11,097,000 deleted text end new text begin
$63,796,000 new text end ;

(2) fiscal year 2009, deleted text begin $25,401,000 deleted text end new text begin
$43,219,000 new text end ;

(3) fiscal year 2010, deleted text begin $20,398,000 deleted text end new text begin
$24,127,000 new text end ; and

(4) fiscal year 2011, deleted text begin $19,841,000 deleted text end new text begin
$21,492,000 new text end .

Notwithstanding any contrary provision in
this article, this rider expires June 30, 2011.

Capitation Rate Increase. Of the health care
access fund appropriations to the University
of Minnesota in the higher education
omnibus appropriation bill, $2,157,000 in
fiscal year 2008 and $2,157,000 in fiscal year
2009 are to be used to increase the capitation
payments under Minnesota Statutes, section
256B.69.

Sec. 10.

Laws 2007, chapter 147, article 19, section 3, subdivision 4, is amended to
read:

Subd. 4. Children and Economic Assistance Grants

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

(a) MFIP/DWP Grants

Appropriations by Fund
General	62,069,000	62,405,000
Federal TANF	75,904,000	80,841,000

(b) Support Services Grants

Appropriations by Fund
General	8,715,000	8,715,000
Federal TANF	113,429,000	115,902,000

TANF Prior Appropriation Cancellation.
Notwithstanding Laws 2001, First Special
Session chapter 9, article 17, section
2, subdivision 11, paragraph (b), any
unexpended TANF funds appropriated to the
commissioner to contract with the Board of
Trustees of Minnesota State Colleges and
Universities, to provide tuition waivers to
employees of health care and human service
providers that are members of qualifying
consortia operating under Minnesota
Statutes, sections 116L.10 to 116L.15, must
cancel at the end of fiscal year 2007.

MFIP Pilot Program. Of the TANF
appropriation, $100,000 in fiscal year 2008
and $750,000 in fiscal year 2009 are for a
grant to the Stearns-Benton Employment and
Training Council for the Workforce U pilot
program. Base level funding for this program
shall be $750,000 in 2010 and $0 in 2011.

Supported Work. (1) Of the TANF
appropriation, $5,468,000 in fiscal year
2008 and $7,291,000 in fiscal year
2009 are for supported work for MFIP
participants, to be allocated to counties
and tribes based on the criteria under
clauses (2) and (3). Paid transitional work
experience and other supported employment
under this rider provides a continuum of
employment assistance, including outreach
and recruitment, program orientation
and intake, testing and assessment, job
development and marketing, preworksite
training, supported worksite experience, job
coaching, and postplacement follow-up, in
addition to extensive case management and
referral services. * (The preceding text "and
$7,291,000 in fiscal year 2009" was indicated
as vetoed by the governor.)

(2) A county or tribe is eligible to receive an
allocation under this rider if:

(i) the county or tribe is not meeting the
federal work participation rate;

(ii) the county or tribe has participants who
are required to perform work activities under
Minnesota Statutes, chapter 256J, but are not
meeting hourly work requirements; and

(iii) the county or tribe has assessed
participants who have completed six weeks
of job search or are required to perform
work activities and are not meeting the
hourly requirements, and the county or tribe
has determined that the participant would
benefit from working in a supported work
environment.

(3) A county or tribe may also be eligible for
funds in order to contract for supplemental
hours of paid work at the participant's child's
place of education, child care location, or the
child's physical or mental health treatment
facility or office. This grant to counties and
tribes is specifically for MFIP participants
who need to work up to five hours more
per week in order to meet the hourly work
requirement, and the participant's employer
cannot or will not offer more hours to the
participant.

Work Study. Of the TANF appropriation,
$750,000 each year are to the commissioner
to contract with the Minnesota Office of
Higher Education for the biennium beginning
July 1, 2007, for work study grants under
Minnesota Statutes, section 136A.233,
specifically for low-income individuals who
receive assistance under Minnesota Statutes,
chapter 256J, and for grants to opportunities
industrialization centers. * (The preceding
text beginning "Work Study. Of the TANF
appropriation," was indicated as vetoed by
the governor.)

Integrated Service Projects. $2,500,000
in fiscal year 2008 and $2,500,000 in fiscal
year 2009 are appropriated from the TANF
fund to the commissioner to continue to
fund the existing integrated services projects
for MFIP families, and if funding allows,
additional similar projects.

Base Adjustment. The TANF base for fiscal
year 2010 is $115,902,000 and for fiscal year
2011 is $115,152,000.

(c) MFIP Child Care Assistance Grants

General

74,654,000

71,951,000

(d) Basic Sliding Fee Child Care Assistance Grants

General

42,995,000

45,008,000

Base Adjustment. The general fund base
is $44,881,000 for fiscal year 2010 and
$44,852,000 for fiscal year 2011.

At-Home Infant Care Program. No
funding shall be allocated to or spent on
the at-home infant care program under
Minnesota Statutes, section 119B.035.

(e) Child Care Development Grants

General

4,390,000

6,390,000

Prekindergarten Exploratory Projects. Of
the general fund appropriation, $2,000,000
the first year and $4,000,000 the second
year are for grants to the city of St. Paul,
Hennepin County, and Blue Earth County to
establish scholarship demonstration projects
to be conducted in partnership with the
Minnesota Early Learning Foundation to
promote children's school readiness. This
appropriation is available until June 30, 2009.

Child Care Services Grants. Of this
appropriation, $500,000 each year are for
the purpose of providing child care services
grants under Minnesota Statutes, section
119B.21, subdivision 5. This appropriation
is for the 2008-2009 biennium only, and does
not increase the base funding.

Early Childhood Professional
Development System. Of this appropriation,
$500,000 each year are for purposes of the
early childhood professional development
system, which increases the quality and
continuum of professional development
opportunities for child care practitioners.
This appropriation is for the 2008-2009
biennium only, and does not increase the
base funding.

Base Adjustment. The general fund base
is $1,515,000 for each of fiscal years 2010
and 2011.

(f) Child Support Enforcement Grants

General

11,038,000

3,705,000

Child Support Enforcement. $7,333,000
for fiscal year 2008 is to make grants to
counties for child support enforcement
programs to make up for the loss under the
2005 federal Deficit Reduction Act of federal
matching funds for federal incentive funds
passed on to the counties by the state.

This appropriation is available until June 30,
2009.

(g) Children's Services Grants

Appropriations by Fund
General	63,647,000	71,147,000
Health Care Access	250,000	-0-
TANF	240,000	340,000

Grants for Programs Serving Young
Parents. Of the TANF fund appropriation,
$140,000 each year is for a grant to a program
or programs that provide comprehensive
services through a private, nonprofit agency
to young parents in Hennepin County who
have dropped out of school and are receiving
public assistance. The program administrator
shall report annually to the commissioner on
skills development, education, job training,
and job placement outcomes for program
participants.

County Allocations for Rate Increases.
County Children and Community Services
Act allocations shall be increased by
$197,000 effective October 1, 2007, and
$696,000 effective October 1, 2008, to help
counties pay for the rate adjustments to
day training and habilitation providers for
participants paid by county social service
funds. Notwithstanding the provisions of
Minnesota Statutes, section 256M.40, the
allocation to a county shall be based on
the county's proportion of social services
spending for day training and habilitation
services as determined in the most recent
social services expenditure and grant
reconciliation report.

Privatized Adoption Grants. Federal
reimbursement for privatized adoption grant
and foster care recruitment grant expenditures
is appropriated to the commissioner for
adoption grants and foster care and adoption
administrative purposes.

Adoption Assistance Incentive Grants.
Federal funds available during fiscal year
2008 and fiscal year 2009 for the adoption
incentive grants are appropriated to the
commissioner for these purposes.

Adoption Assistance and Relative Custody
Assistance. The commissioner may transfer
unencumbered appropriation balances for
adoption assistance and relative custody
assistance between fiscal years and between
programs.

Children's Mental Health Grants. Of the
general fund appropriation, $5,913,000 in
fiscal year 2008 and $6,825,000 in fiscal year
2009 are for children's mental health grants.
The purpose of these grants is to increase and
maintain the state's children's mental health
service capacity, especially for school-based
mental health services. The commissioner
shall require grantees to utilize all available
third party reimbursement sources as a
condition of using state grant funds. At
least 15 percent of these funds shall be
used to encourage efficiencies through early
intervention services. At least another 15
percent shall be used to provide respite care
services for children with severe emotional
disturbance at risk of out-of-home placement.

Mental Health Crisis Services. Of the
general fund appropriation, $2,528,000 in
fiscal year 2008 and $2,850,000 in fiscal year
2009 are for statewide funding of children's
mental health crisis services. Providers must
utilize all available funding streams.

Children's Mental Health Evidence-Based
and Best Practices. Of the general fund
appropriation, $375,000 in fiscal year 2008
and $750,000 in fiscal year 2009 are for
children's mental health evidence-based and
best practices including, but not limited
to: Adolescent Integrated Dual Diagnosis
Treatment services; school-based mental
health services; co-location of mental
health and physical health care, and; the
use of technological resources to better
inform diagnosis and development of
treatment plan development by mental
health professionals. The commissioner
shall require grantees to utilize all available
third-party reimbursement sources as a
condition of using state grant funds.

Culturally Specific Mental Health
Treatment Grants. Of the general fund
appropriation, $75,000 in fiscal year 2008
and $300,000 in fiscal year 2009 are for
children's mental health grants to support
increased availability of mental health
services for persons from cultural and
ethnic minorities within the state. The
commissioner shall use at least 20 percent
of these funds to help members of cultural
and ethnic minority communities to become
qualified mental health professionals and
practitioners. The commissioner shall assist
grantees to meet third-party credentialing
requirements and require them to utilize all
available third-party reimbursement sources
as a condition of using state grant funds.

Mental Health Services for Children with
Special Treatment Needs. Of the general
fund appropriation, $50,000 in fiscal year
2008 and $200,000 in fiscal year 2009 are
for children's mental health grants to support
increased availability of mental health
services for children with special treatment
needs. These shall include, but not be limited
to: victims of trauma, including children
subjected to abuse or neglect, veterans and
their families, and refugee populations;
persons with complex treatment needs, such
as eating disorders; and those with low
incidence disorders.

MFIP and Children's Mental Health
Pilot Project. Of the TANF appropriation,
$100,000 in fiscal year 2008 and $200,000
in fiscal year 2009 are to fund the MFIP
and children's mental health pilot project.
Of these amounts, up to $100,000 may be
expended on evaluation of this pilot.

Prenatal Alcohol or Drug Use. Of the
general fund appropriation, $75,000 each
year is to award grants beginning July 1,
2007, to programs that provide services
under Minnesota Statutes, section 254A.171,
in Pine, Kanabec, and Carlton Counties. This
appropriation shall become part of the base
appropriation.

Base Adjustment. The general fund base
is $62,572,000 in fiscal year 2010 and
$62,575,000 in fiscal year 2011.

(h) Children and Community Services Grants

General

101,369,000

69,208,000

Base Adjustment. The general fund base
is $69,274,000 in each of fiscal years 2010
and 2011.

Targeted Case Management Temporary
Funding. (a) Of the general fund
appropriation, $32,667,000 in fiscal year
2008 is transferred to the targeted case
management contingency reserve account in
the general fund to be allocated to counties
and tribes affected by reductions in targeted
case management federal Medicaid revenue
as a result of the provisions in the federal
Deficit Reduction Act of 2005, Public Law
109-171.

(b) Contingent upon (1) publication by the
federal Centers for Medicare and Medicaid
Services of final regulations implementing
the targeted case management provisions
of the federal Deficit Reduction Act of
2005, Public Law 109-171, or (2) the
issuance of a finding by the Centers for
Medicare and Medicaid Services of federal
Medicaid overpayments for targeted case
management expenditures, up to $32,667,000
is appropriated to the commissioner of human
services. Prior to distribution of funds, the
commissioner shall estimate and certify the
amount by which the federal regulations or
federal disallowance will reduce targeted
case management Medicaid revenue over the
2008-2009 biennium.

(c) Within 60 days of a contingency described
in paragraph (b), the commissioner shall
distribute the grants proportionate to each
affected county or tribe's targeted case
management federal earnings for calendar
year 2005, not to exceed the lower of (1) the
amount of the estimated reduction in federal
revenue or (2) $32,667,000.

(d) These funds are available in either year of
the biennium. Counties and tribes shall use
these funds to pay for social service-related
costs, but the funds are not subject to
provisions of the Children and Community
Services Act grant under Minnesota Statutes,
chapter 256M.

(e) This appropriation shall be available to
pay counties and tribes for expenses incurred
on or after July 1, 2007. The appropriation
shall be available until expended.

(i) General Assistance Grants

General

37,876,000

38,253,000

General Assistance Standard. The
commissioner shall set the monthly standard
of assistance for general assistance units
consisting of an adult recipient who is
childless and unmarried or living apart
from parents or a legal guardian at $203.
The commissioner may reduce this amount
according to Laws 1997, chapter 85, article
3, section 54.

Emergency General Assistance. The
amount appropriated for emergency general
assistance funds is limited to no more
than $7,889,812 in fiscal year 2008 and
$7,889,812 in fiscal year 2009. Funds
to counties must be allocated by the
commissioner using the allocation method
specified in Minnesota Statutes, section
256D.06.

(j) Minnesota Supplemental Aid Grants

General

30,505,000

30,812,000

Emergency Minnesota Supplemental
Aid Funds. The amount appropriated for
emergency Minnesota supplemental aid
funds is limited to no more than $1,100,000
in fiscal year 2008 and $1,100,000 in fiscal
year 2009. Funds to counties must be
allocated by the commissioner using the
allocation method specified in Minnesota
Statutes, section 256D.46.

(k) Group Residential Housing Grants

General

91,069,000

98,671,000

People Incorporated. Of the general fund
appropriation, $460,000 each year is to
augment community support and mental
health services provided to individuals
residing in facilities under Minnesota
Statutes, section 256I.05, subdivision 1m.

(l) Other Children and Economic Assistance Grants

General	20,183,000	16,333,000
Federal TANF	1,500,000	1,500,000

Base Adjustment. The general fund base
shall be $16,033,000 in fiscal year 2010 and
$15,533,000 in fiscal year 2011. The TANF
base shall be $1,500,000 in fiscal year 2010
and $1,181,000 in fiscal year 2011.

Homeless and Runaway Youth. Of the
general fund appropriation, $500,000 each
year are for the Runaway and Homeless
Youth Act under Minnesota Statutes, section
256K.45. Funds shall be spent in each area
of the continuum of care to ensure that
programs are meeting the greatest need. This
is a onetime appropriation.

Long-Term Homelessness. Of the general
fund appropriation, deleted text begin $1,500,000 each year
are deleted text end new text begin $2,000,000 in fiscal year 2008 is new text end for
implementation of programs to address
long-term homelessness new text begin and is available in
either year of the biennium new text end . This is a onetime
appropriation.

Minnesota Community Action Grants. (a)
Of the general fund appropriation, $250,000
each year is for the purposes of Minnesota
community action grants under Minnesota
Statutes, sections 256E.30 to 256E.32. This
is a onetime appropriation.

(b) Of the TANF appropriation, $1,500,000
each year is for community action agencies
for auto repairs, auto loans, and auto purchase
grants to individuals who are eligible to
receive benefits under Minnesota Statutes,
chapter 256J, or who have lost eligibility
for benefits under Minnesota Statutes,
chapter 256J, due to earnings in the prior 12
months. Base level funding for this activity
shall be $1,500,000 in fiscal year 2010
and $1,181,000 in fiscal year 2011. * (The
preceding text beginning "(b) Of the TANF
appropriation," was indicated as vetoed by
the governor.)

(c) Money appropriated under paragraphs (a)
and (b) that is not spent in the first year does
not cancel but is available for the second
year.

Sec. 11. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2006, section 256.741, subdivision 15, new text end new text begin is repealed.
new text end

ARTICLE 5

HEALTH CARE

Section 1.

Minnesota Statutes 2006, section 256.969, subdivision 2b, is amended to
read:

Subd. 2b.

Operating payment rates.

In determining operating payment rates for
admissions occurring on or after the rate year beginning January 1, 1991, and every two
years after, or more frequently as determined by the commissioner, the commissioner
shall obtain operating data from an updated base year and establish operating payment
rates per admission for each hospital based on the cost-finding methods and allowable
costs of the Medicare program in effect during the base year. Rates under the general
assistance medical care, medical assistance, and MinnesotaCare programs shall not be
rebased to more current data on January 1, 1997, deleted text begin and deleted text end January 1, 2005 new text begin , and for the first
year of the rebased period beginning January 1, 2009 new text end . The base year operating payment
rate per admission is standardized by the case mix index and adjusted by the hospital
cost index, relative values, and disproportionate population adjustment. The cost and
charge data used to establish operating rates shall only reflect inpatient services covered
by medical assistance and shall not include property cost information and costs recognized
in outlier payments.

Sec. 2.

Minnesota Statutes 2006, section 256.969, subdivision 20, is amended to read:

Subd. 20.

Increases in medical assistance inpatient payments; conditions.

(a)
Medical assistance inpatient payments shall increase 20 percent for inpatient hospital
originally paid admissions, excluding Medicare crossovers, that occurred between July 1,
1988 and December 31, 1990, if: (i) the hospital had 100 or fewer Minnesota medical
assistance annualized paid admissions, excluding Medicare crossovers, that were paid by
March 1, 1988, for the period January 1, 1987 to June 30, 1987; (ii) the hospital had 100
or fewer licensed beds on March 1, 1988; (iii) the hospital is located in Minnesota; and
(iv) the hospital is not located in a city of the first class as defined in section 410.01.
For purposes of this paragraph, medical assistance does not include general assistance
medical care.

(b) Medical assistance inpatient payments shall increase 15 percent for inpatient
hospital originally paid admissions, excluding Medicare crossovers, that occurred between
July 1, 1988 and December 31, 1990, if: (i) the hospital had more than 100 but fewer
than 250 Minnesota medical assistance annualized paid admissions, excluding Medicare
crossovers, that were paid by March 1, 1988, for the period January 1, 1987 to June 30,
1987; (ii) the hospital had 100 or fewer licensed beds on March 1, 1988; (iii) the hospital
is located in Minnesota; and (iv) the hospital is not located in a city of the first class as
defined in section 410.01. For purposes of this paragraph, medical assistance does not
include general assistance medical care.

(c) Medical assistance inpatient payment rates shall increase 20 percent for inpatient
hospital originally paid admissions, excluding Medicare crossovers, that occur on or
after October 1, 1992, if: (i) the hospital had 100 or fewer Minnesota medical assistance
annualized paid admissions, excluding Medicare crossovers, that were paid by March
1, 1988, for the period January 1, 1987 to June 30, 1987; (ii) the hospital had 100 or
fewer licensed beds on March 1, 1988; (iii) the hospital is located in Minnesota; and (iv)
the hospital is not located in a city of the first class as defined in section 410.01. For a
hospital that qualifies for an adjustment under this paragraph and under subdivision 9 or
23, the hospital must be paid the adjustment under subdivisions 9 and 23, as applicable,
plus any amount by which the adjustment under this paragraph exceeds the adjustment
under those subdivisions. For this paragraph, medical assistance does not include general
assistance medical care.

(d) Medical assistance inpatient payment rates shall increase 15 percent for inpatient
hospital originally paid admissions, excluding Medicare crossovers, that occur after
September 30, 1992, if: (i) the hospital had more than 100 but fewer than 250 Minnesota
medical assistance annualized paid admissions, excluding Medicare crossovers, that
were paid by March 1, 1988, for the period January 1, 1987 to June 30, 1987; (ii) the
hospital had 100 or fewer licensed beds on March 1, 1988; (iii) the hospital is located in
Minnesota; and (iv) the hospital is not located in a city of the first class as defined in
section 410.01. For a hospital that qualifies for an adjustment under this paragraph and
under subdivision 9 or 23, the hospital must be paid the adjustment under subdivisions
9 and 23, as applicable, plus any amount by which the adjustment under this paragraph
exceeds the adjustment under those subdivisions. For purposes of this paragraph, medical
assistance does not include general assistance medical care.

new text begin (e) For admissions occurring on or after July 1, 2008, fee-for-service inpatient
payments must increase eight percent for a hospital with a medical assistance inpatient
utilization rate of 17.95 percent of total patient days as of the base year in effect on July 1,
2005, and nine percent for a hospital with a medical assistance inpatient utilization rate of
59.60 percent of total patient days as of the base year in effect on July 1, 2005. Payments
made to managed care plans must not be increased to reflect this increase. For purposes of
this paragraph, medical assistance does not include general assistance medical care.
new text end

Sec. 3.

Minnesota Statutes 2006, section 256B.0571, subdivision 8, is amended to read:

Subd. 8.

Program established.

(a) The commissioner, in cooperation with the
commissioner of commerce, shall establish the Minnesota partnership for long-term care
program to provide for the financing of long-term care through a combination of private
insurance and medical assistance.

(b) An individual who meets the requirements in this paragraph is eligible to
participate in the partnership program. The individual must:

(1) be a Minnesota resident at the time coverage first became effective under the
partnership policy; new text begin and
new text end

(2) be a beneficiary of a partnership policy that (i) is issued on or after the effective
date of the state plan amendment implementing the partnership program in Minnesota, or
(ii) qualifies as a partnership policy under the provisions of subdivision 8a deleted text begin ; and deleted text end new text begin .
new text end

deleted text begin (3) have exhausted all of the benefits under the partnership policy as described in this
section. Benefits received under a long-term care insurance policy before July 1, 2006, do
not count toward the exhaustion of benefits required in this subdivision.
deleted text end

Sec. 4.

Minnesota Statutes 2006, section 256B.0571, subdivision 9, is amended to read:

Subd. 9.

Medical assistance eligibility.

(a) Upon application for medical assistance
program payment of long-term care services by an individual who meets the requirements
described in subdivision 8, the commissioner shall determine the individual's eligibility
for medical assistance according to paragraphs (b) to (i).

(b) After determining assets subject to the asset limit under section 256B.056,
subdivision 3 or 3c, or 256B.057, subdivision 9 or 10, the commissioner shall allow the
individual to designate assets to be protected from recovery under subdivisions 13 and
15 up to the dollar amount of the benefits utilized under the partnership policy new text begin as of the
effective date of eligibility for medical assistance program payment of long-term care
services. Benefits utilized under a long-term care insurance policy before July 1, 2006,
do not count for the purpose of determining the amount of assets that can be designated new text end .
Designated assets shall be disregarded for purposes of determining eligibility for payment
of long-term care services. new text begin The dollar amount of benefits utilized must be equal to the
amount of claims paid by the issuer under the policy as verified by the issuer.
new text end

(c) The individual shall identify the designated assets and the full fair market value
of those assets and designate them as assets to be protected at the time of deleted text begin initial deleted text end application
for medical assistance new text begin payment of long-term care services new text end . The full fair market value of
real property or interests in real property shall be based on the most recent full assessed
value for property tax purposes for the real property, unless the individual provides a
complete professional appraisal by a licensed appraiser to establish the full fair market
value. The extent of a life estate in real property shall be determined using the life estate
table in the health care program's manual. Ownership of any asset in joint tenancy shall be
treated as ownership as tenants in common for purposes of its designation as a disregarded
asset. The unprotected value of any protected asset is subject to estate recovery according
to subdivisions 13 and 15.

(d) The right to designate assets to be protected is personal to the individual and
ends when the individual dies, except as otherwise provided in subdivisions 13 and
15. It does not include the increase in the value of the protected asset and the income,
dividends, or profits from the asset. It may be exercised by the individual or by anyone
with the legal authority to do so on the individual's behalf. It shall not be sold, assigned,
transferred, or given away.

(e) deleted text begin If the dollar amount of the benefits utilized under a partnership policy is greater
than the full fair market value of all assets protected at the time of the application for
medical assistance long-term care services, deleted text end new text begin As the individual continues to utilize benefits
under a partnership policy after eligibility for medical assistance payment of long-term
care services begins, new text end the individual may designate new text begin , for additional protection, an increase
in the value of protected assets and new text end additional assets that become available during the
individual's lifetime deleted text begin for protection under this section deleted text end new text begin up to the amount of additional
benefits utilized new text end . The individual must make the designation in writing to the county agency
no later than the last date on which the individual must report a change in circumstances to
the county agency, as provided for under the medical assistance program. deleted text begin Any excess used
for this purpose shall not be available to the individual's estate to protect assets in the estate
from recovery under section 256B.15 or 524.3-1202, or otherwise. deleted text end new text begin The amount used for
this purpose must reduce the unused amount of asset protection available to protect assets
in the individual's estate from recovery under section 256B.15 or 524.3-1202, or otherwise.
new text end

(f) This section applies only to estate recovery under United States Code, title 42,
section 1396p, subsections (a) and (b), and does not apply to recovery authorized by other
provisions of federal law, including, but not limited to, recovery from trusts under United
States Code, title 42, section 1396p, subsection (d)(4)(A) and (C), or to recovery from
annuities, or similar legal instruments, subject to section 6012, subsections (a) and (b), of
the Deficit Reduction Act of 2005, Public Law 109-171.

(g) An individual's protected assets owned by the individual's spouse who applies
for payment of medical assistance long-term care services shall not be protected assets or
disregarded for purposes of eligibility of the individual's spouse solely because they were
protected assets of the individual.

(h) Assets designated under this subdivision shall not be subject to penalty under
section 256B.0595.

(i) The commissioner shall otherwise determine the individual's eligibility
for payment of long-term care services according to medical assistance eligibility
requirements.

Sec. 5.

Minnesota Statutes 2006, section 256B.0625, subdivision 3c, is amended to
read:

Subd. 3c.

Health Services Policy Committee.

The commissioner, after receiving
recommendations from professional physician associations, professional associations
representing licensed nonphysician health care professionals, and consumer groups, shall
establish a 13-member Health Services Policy Committee, which consists of 12 voting
members and one nonvoting member. The Health Services Policy Committee shall advise
the commissioner regarding health services pertaining to the administration of health
care benefits covered under the medical assistance, general assistance medical care, and
MinnesotaCare programs. The Health Services Policy Committee shall meet at least
quarterly. The Health Services Policy Committee shall annually elect a physician chair
from among its members, who shall work directly with the commissioner's medical
director, to establish the agenda for each meeting. new text begin The Health Services Policy Committee
shall also recommend criteria for verifying centers of excellence for specific aspects of
medical care where a specific set of combined services, a volume of patients necessary to
maintain a high level of competency, or a specific level of technical capacity is associated
with improved health outcomes. Individuals receiving fee-for-service medical assistance,
general assistance medical care, and MinnesotaCare may be directed to obtain these
services designated by the Health Services Policy Committee at these centers.
new text end

Sec. 6.

Minnesota Statutes 2006, section 256B.0625, subdivision 13e, is amended to
read:

Subd. 13e.

Payment rates.

(a) The basis for determining the amount of payment
shall be the lower of the actual acquisition costs of the drugs plus a fixed dispensing fee;
the maximum allowable cost set by the federal government or by the commissioner plus
the fixed dispensing fee; or the usual and customary price charged to the public. The
amount of payment basis must be reduced to reflect all discount amounts applied to the
charge by any provider/insurer agreement or contract for submitted charges to medical
assistance programs. The net submitted charge may not be greater than the patient liability
for the service. The pharmacy dispensing fee shall be $3.65, except that the dispensing fee
for intravenous solutions which must be compounded by the pharmacist shall be $8 per
bag, $14 per bag for cancer chemotherapy products, and $30 per bag for total parenteral
nutritional products dispensed in one liter quantities, or $44 per bag for total parenteral
nutritional products dispensed in quantities greater than one liter. Actual acquisition
cost includes quantity and other special discounts except time and cash discounts.
new text begin Effective July 1, 2008, new text end the actual acquisition cost of a drug shall be estimated by the
commissioner, at average wholesale price minus deleted text begin 12 deleted text end new text begin 14 new text end percent. The actual acquisition
cost of antihemophilic factor drugs shall be estimated at the average wholesale price
minus 30 percent. The maximum allowable cost of a multisource drug may be set by the
commissioner and it shall be comparable to, but no higher than, the maximum amount
paid by other third-party payors in this state who have maximum allowable cost programs.
Establishment of the amount of payment for drugs shall not be subject to the requirements
of the Administrative Procedure Act.

(b) An additional dispensing fee of $.30 may be added to the dispensing fee paid
to pharmacists for legend drug prescriptions dispensed to residents of long-term care
facilities when a unit dose blister card system, approved by the department, is used. Under
this type of dispensing system, the pharmacist must dispense a 30-day supply of drug.
The National Drug Code (NDC) from the drug container used to fill the blister card must
be identified on the claim to the department. The unit dose blister card containing the
drug must meet the packaging standards set forth in Minnesota Rules, part 6800.2700,
that govern the return of unused drugs to the pharmacy for reuse. The pharmacy provider
will be required to credit the department for the actual acquisition cost of all unused
drugs that are eligible for reuse. Over-the-counter medications must be dispensed in the
manufacturer's unopened package. The commissioner may permit the drug clozapine to be
dispensed in a quantity that is less than a 30-day supply.

(c) Whenever a generically equivalent product is available, payment shall be on the
basis of the actual acquisition cost of the generic drug, or on the maximum allowable cost
established by the commissioner.

(d) The basis for determining the amount of payment for drugs administered in an
outpatient setting shall be the lower of the usual and customary cost submitted by the
provider or the amount established for Medicare by the United States Department of
Health and Human Services pursuant to title XVIII, section 1847a of the federal Social
Security Act.

(e) The commissioner may negotiate lower reimbursement rates for specialty
pharmacy products than the rates specified in paragraph (a). The commissioner may
require individuals enrolled in the health care programs administered by the department
to obtain specialty pharmacy products from providers with whom the commissioner has
negotiated lower reimbursement rates. Specialty pharmacy products are defined as those
used by a small number of recipients or recipients with complex and chronic diseases
that require expensive and challenging drug regimens. Examples of these conditions
include, but are not limited to: multiple sclerosis, HIV/AIDS, transplantation, hepatitis
C, growth hormone deficiency, Crohn's Disease, rheumatoid arthritis, and certain forms
of cancer. Specialty pharmaceutical products include injectable and infusion therapies,
biotechnology drugs, high-cost therapies, and therapies that require complex care. The
commissioner shall consult with the formulary committee to develop a list of specialty
pharmacy products subject to this paragraph. In consulting with the formulary committee
in developing this list, the commissioner shall take into consideration the population
served by specialty pharmacy products, the current delivery system and standard of care in
the state, and access to care issues. The commissioner shall have the discretion to adjust
the reimbursement rate to prevent access to care issues.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2008.
new text end

Sec. 7.

Minnesota Statutes 2007 Supplement, section 256B.0631, subdivision 1,
is amended to read:

Subdivision 1.

Co-payments.

(a) Except as provided in subdivision 2, the medical
assistance benefit plan shall include the following co-payments for all recipients, effective
for services provided on or after October 1, 2003, and before January 1, 2009:

(1) $3 per nonpreventive visit. For purposes of this subdivision, a visit means an
episode of service which is required because of a recipient's symptoms, diagnosis, or
established illness, and which is delivered in an ambulatory setting by a physician or
physician ancillary, chiropractor, podiatrist, nurse midwife, advanced practice nurse,
audiologist, optician, or optometrist;

(2) $3 for eyeglasses;

(3) $6 for nonemergency visits to a hospital-based emergency room; and

(4) $3 per brand-name drug prescription and $1 per generic drug prescription,
subject to a $12 per month maximum for prescription drug co-payments. No co-payments
shall apply to antipsychotic drugs when used for the treatment of mental illness.

(b) Except as provided in subdivision 2, the medical assistance benefit plan shall
include the following co-payments for all recipients, effective for services provided on
or after January 1, 2009:

(1) $6 for nonemergency visits to a hospital-based emergency room; and

(2) $3 per brand-name drug prescription and $1 per generic drug prescription,
subject to a $7 per month maximum for prescription drug co-payments. No co-payments
shall apply to antipsychotic drugs when used for the treatment of mental illness.

new text begin (3) For individuals with income at or below 100 percent of the federal poverty
guidelines, total monthly co-payments must not exceed five percent of family income.
For purposes of this paragraph, family income is the total earned and unearned income of
the individual and the individual's spouse, if the spouse is enrolled in medical assistance
and also subject to the five percent limit on co-payments.
new text end

(c) Recipients of medical assistance are responsible for all co-payments in this
subdivision.

Sec. 8.

Minnesota Statutes 2007 Supplement, section 256B.0631, subdivision 3,
is amended to read:

Subd. 3.

Collection.

(a) The medical assistance reimbursement to the provider shall
be reduced by the amount of the co-payment, except that deleted text begin reimbursement for prescription
drugs deleted text end new text begin reimbursements new text end shall not be reduced new text begin :
new text end

new text begin (1) new text end once a recipient has reached the $12 per month maximum or the $7 per month
maximum effective January 1, 2009, for prescription drug co-payments new text begin ; or
new text end

new text begin (2) for a recipient under 100 percent of the federal poverty guidelines who has met
their monthly five percent co-payment limit new text end .

(b) The provider collects the co-payment from the recipient. Providers may not deny
services to recipients who are unable to pay the co-payment.

(c) Medical assistance reimbursement to fee-for-service providers and payments to
managed care plans shall not be increased as a result of the removal of the co-payments
effective January 1, 2009.

Sec. 9.

new text begin [256B.194] FEDERAL PAYMENTS.
new text end

new text begin Subdivision 1. new text end

new text begin Payments at actual cost. new text end

new text begin Notwithstanding any other statute or rule
to the contrary, for providers that are units of government, the commissioner may limit
medical assistance and MinnesotaCare payments to a provider's actual cost of providing
services, according to the Centers for Medicare and Medicaid Services (CMS) final rule
referenced in this subdivision. The commissioner may also require medical assistance
and MinnesotaCare providers to provide any information necessary to determine
Medicaid-related costs, and require the cooperation of providers in any audit or review
necessary to ensure payments are limited to cost. This section does not apply to providers
who are exempt from the provisions of the CMS final rule. This subdivision becomes
effective when the CMS final rule, published May 29, 2007, at Federal Register, Vol. 72,
No. 100, governing payments to providers that are units of government goes into effect at
the end of the moratorium imposed by Congress.
new text end

new text begin Subd. 2. new text end

new text begin Loss of federal financial participation. new text end

new text begin For all transfers, certified
expenditures, and medical assistance payments listed in this subdivision, if the
commissioner determines that federal financial participation is no longer available for the
medical assistance payments listed, then related obligations for the nonfederal share of
payments and the medical assistance payments must terminate. The commissioner shall
notify all affected parties of the loss of federal financial participation, and the resulting
payments and obligations that are terminated. If the commissioner determines that federal
financial participation is no longer available for any medical assistance payments or
contributions to the nonfederal share of medical assistance payments that have already
been made, the commissioner may collect the medical assistance payments from providers
and return contributions of the nonfederal share to its source. The transfers, certified
expenditures, and medical assistance payments subject to this section are those specified in
section 62J.692, subdivision 7, paragraphs (b) and (c); 256B.19, subdivisions 1c and 1d;
256B.195; 256B.431, subdivision 23; and 256B.69, subdivision 5c, paragraph (a), clauses
(2) to (4); Laws 2002, chapter 220, article 17, section 2, subdivision 3; and Laws 2005,
First Special Session chapter 4, article 9, section 2, subdivision 1.
new text end

Sec. 10.

Minnesota Statutes 2007 Supplement, section 256B.199, is amended to read:

256B.199 PAYMENTS REPORTED BY GOVERNMENTAL ENTITIES.

(a) Effective July 1, 2007, the commissioner shall apply for federal matching funds
for the expenditures in paragraphs (b) and (c).

(b) The commissioner shall apply for federal matching funds for certified public
expenditures as follows:

(1) Hennepin County deleted text begin , deleted text end new text begin and new text end Hennepin County Medical Center deleted text begin , Ramsey County,
Regions Hospital, the University of Minnesota, and Fairview-University Medical Center deleted text end
shall report quarterly to the commissioner beginning June 1, 2007, payments made during
the second previous quarter that may qualify for reimbursement under federal law;

(2) based on these reports, the commissioner shall apply for federal matching funds.
These funds are appropriated to the commissioner deleted text begin for the payments under section 256.969,
subdivision 27 deleted text end new text begin to offset medical assistance expenditures new text end ; and

(3) by May 1 of each year, beginning May 1, 2007, the commissioner shall inform
the nonstate entities listed in new text begin this new text end paragraph deleted text begin (a) deleted text end of the amount of federal disproportionate
share hospital payment money expected to be available in the current federal fiscal year.

(c) The commissioner shall apply for federal matching funds for general assistance
medical care expenditures as follows:

(1) for hospital services occurring on or after July 1, 2007, general assistance medical
care expenditures for fee-for-service inpatient and outpatient hospital payments made by
the department shall be used to apply for federal matching funds, except as limited below:

(i) only those general assistance medical care expenditures made to an individual
hospital that would not cause the hospital to exceed its individual hospital limits under
section 1923 of the Social Security Act may be considered; and

(ii) general assistance medical care expenditures may be considered only to the extent
of Minnesota's aggregate allotment under section 1923 of the Social Security Act; and

(2) all hospitals must provide any necessary expenditure, cost, and revenue
information required by the commissioner as necessary for purposes of obtaining federal
Medicaid matching funds for general assistance medical care expenditures.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from July 1, 2007.
new text end

Sec. 11.

Minnesota Statutes 2006, section 256B.69, subdivision 5a, is amended to read:

Subd. 5a.

Managed care contracts.

(a) Managed care contracts under this section
and sections 256L.12 and 256D.03, shall be entered into or renewed on a calendar year
basis beginning January 1, 1996. Managed care contracts which were in effect on June
30, 1995, and set to renew on July 1, 1995, shall be renewed for the period July 1, 1995
through December 31, 1995 at the same terms that were in effect on June 30, 1995. The
commissioner may issue separate contracts with requirements specific to services to
medical assistance recipients age 65 and older.

(b) A prepaid health plan providing covered health services for eligible persons
pursuant to chapters 256B, 256D, and 256L, is responsible for complying with the terms
of its contract with the commissioner. Requirements applicable to managed care programs
under chapters 256B, 256D, and 256L, established after the effective date of a contract
with the commissioner take effect when the contract is next issued or renewed.

(c) Effective for services rendered on or after January 1, 2003, the commissioner
shall withhold five percent of managed care plan payments under this section for the
prepaid medical assistance and general assistance medical care programs pending
completion of performance targets. Each performance target must be quantifiable,
objective, measurable, and reasonably attainable, except in the case of a performance
target based on a federal or state law or rule. Criteria for assessment of each performance
target must be outlined in writing prior to the contract effective date. The withheld funds
must be returned no sooner than July of the following year if performance targets in the
contract are achieved. The commissioner may exclude special demonstration projects
under subdivision 23. A managed care plan or a county-based purchasing plan under
section 256B.692 may include as admitted assets under section 62D.044 any amount
withheld under this paragraph that is reasonably expected to be returned.

new text begin (d)(1) Effective for services rendered on or after January 1, 2009, the commissioner
shall withhold an additional two percent of managed care plan payments under this section
for the prepaid medical assistance and general assistance medical care programs. The
withheld funds must be returned no sooner than July 1 and no later than July 31 of the
following year. The commissioner may exclude special demonstration projects under
subdivision 23.
new text end

new text begin (2) A managed care plan or a county-based purchasing plan under section 256B.692
may include as admitted assets under section 62D.044 any amount withheld under this
paragraph that is reasonably expected to be returned.
new text end

Sec. 12.

Minnesota Statutes 2007 Supplement, section 256L.04, subdivision 1, is
amended to read:

Subdivision 1.

Families with children.

(a) Families with children with family
income equal to or less than 275 percent of the federal poverty guidelines for the
applicable family size shall be eligible for MinnesotaCare according to this section. All
other provisions of sections 256L.01 to 256L.18, including the insurance-related barriers
to enrollment under section 256L.07, shall apply unless otherwise specified.

(b) Parents who enroll in the MinnesotaCare program must also enroll their children,
if the children are eligible. Children may be enrolled separately without enrollment by
parents. However, if one parent in the household enrolls, both parents must enroll, unless
other insurance is available. If one child from a family is enrolled, all children must
be enrolled, unless other insurance is available. If one spouse in a household enrolls,
the other spouse in the household must also enroll, unless other insurance is available.
Families cannot choose to enroll only certain uninsured members.

(c) Beginning October 1, 2003, the dependent sibling definition no longer applies
to the MinnesotaCare program. These persons are no longer counted in the parental
household and may apply as a separate household.

(d) Beginning July 1, 2003, or upon federal approval, whichever is later, parents are
not eligible for MinnesotaCare if their gross income exceeds $50,000.

deleted text begin (e) Children formerly enrolled in medical assistance and automatically deemed
eligible for MinnesotaCare according to section 256B.057, subdivision 2c, are exempt
from the requirements of this section until renewal.
deleted text end

Sec. 13.

Minnesota Statutes 2007 Supplement, section 256L.04, subdivision 7, is
amended to read:

Subd. 7.

Single adults and households with no children.

The definition of eligible
persons includes all individuals and households with no children who have gross family
incomes that are equal to or less than 200 percent of the federal poverty guidelines.
deleted text begin Effective July 1, 2009, the definition of eligible persons includes all individuals and
households with no children who have gross family incomes that are equal to or less than
215 percent of the federal poverty guidelines.
deleted text end

Sec. 14.

Minnesota Statutes 2007 Supplement, section 256L.07, subdivision 1, is
amended to read:

Subdivision 1.

General requirements.

(a) Children enrolled in the original
children's health plan as of September 30, 1992, children who enrolled in the
MinnesotaCare program after September 30, 1992, pursuant to Laws 1992, chapter 549,
article 4, section 17, and children who have family gross incomes that are equal to or
less than 150 percent of the federal poverty guidelines are eligible without meeting
the requirements of subdivision 2 and the four-month requirement in subdivision 3, as
long as they maintain continuous coverage in the MinnesotaCare program or medical
assistance. Children who apply for MinnesotaCare on or after the implementation date
of the employer-subsidized health coverage program as described in Laws 1998, chapter
407, article 5, section 45, who have family gross incomes that are equal to or less than 150
percent of the federal poverty guidelines, must meet the requirements of subdivision 2 to
be eligible for MinnesotaCare.

Families enrolled in MinnesotaCare under section 256L.04, subdivision 1, whose
income increases above 275 percent of the federal poverty guidelines, are no longer
eligible for the program and shall be disenrolled by the commissioner. Beginning January
1, 2008, individuals enrolled in MinnesotaCare under section 256L.04, subdivision
7, whose income increases above 200 percent of the federal poverty guidelines deleted text begin or 215
percent of the federal poverty guidelines on or after July 1, 2009, deleted text end are no longer eligible for
the program and shall be disenrolled by the commissioner. For persons disenrolled under
this subdivision, MinnesotaCare coverage terminates the last day of the calendar month
following the month in which the commissioner determines that the income of a family or
individual exceeds program income limits.

(b) Notwithstanding paragraph (a), children may remain enrolled in MinnesotaCare
if ten percent of their gross individual or gross family income as defined in section
256L.01, subdivision 4, is less than the annual premium for a policy with a $500
deductible available through the Minnesota Comprehensive Health Association. Children
who are no longer eligible for MinnesotaCare under this clause shall be given a 12-month
notice period from the date that ineligibility is determined before disenrollment. The
premium for children remaining eligible under this clause shall be the maximum premium
determined under section 256L.15, subdivision 2, paragraph (b).

(c) Notwithstanding paragraphs (a) and (b), parents are not eligible for
MinnesotaCare if gross household income exceeds $50,000 for the 12-month period
of eligibility.

Sec. 15.

Minnesota Statutes 2006, section 256L.12, subdivision 9, is amended to read:

Subd. 9.

Rate setting; performance withholds.

(a) Rates will be prospective,
per capita, where possible. The commissioner may allow health plans to arrange for
inpatient hospital services on a risk or nonrisk basis. The commissioner shall consult with
an independent actuary to determine appropriate rates.

(b) For services rendered on or after January 1, 2003, to December 31, 2003, the
commissioner shall withhold .5 percent of managed care plan payments under this section
pending completion of performance targets. The withheld funds must be returned no
sooner than July 1 and no later than July 31 of the following year if performance targets
in the contract are achieved. A managed care plan may include as admitted assets under
section 62D.044 any amount withheld under this paragraph that is reasonably expected
to be returned.

(c) For services rendered on or after January 1, 2004, the commissioner shall
withhold five percent of managed care plan payments under this section pending
completion of performance targets. Each performance target must be quantifiable,
objective, measurable, and reasonably attainable, except in the case of a performance
target based on a federal or state law or rule. Criteria for assessment of each performance
target must be outlined in writing prior to the contract effective date. The withheld
funds must be returned no sooner than July 1 and no later than July 31 of the following
calendar year if performance targets in the contract are achieved. A managed care plan or
a county-based purchasing plan under section 256B.692 may include as admitted assets
under section 62D.044 any amount withheld under this paragraph that is reasonably
expected to be returned.

new text begin (d) For services rendered on or after January 1, 2009, the commissioner shall
withhold an additional two percent of managed care plan payments under this section. The
withheld funds must be returned no sooner than July 1 and no later than July 31 of the
following calendar year. A managed care plan or a county-based purchasing plan under
section 256B.692 may include as admitted assets under section 62D.044 any amount
withheld under this paragraph that is reasonably expected to be returned.
new text end

Sec. 16.

Laws 2007, chapter 147, article 19, section 3, subdivision 6, is amended to
read:

Subd. 6. Basic Health Care Grants

The amounts that may be spent from the
appropriation for each purpose are as follows:

(a) MinnesotaCare Grants

Health Care Access

389,760,000

458,401,000

HealthMatch Delay. Of this appropriation,
$2,560,000 the first year and $21,735,000
the second year are for the MinnesotaCare
program costs related to a seven-month
delay in implementation of the HealthMatch
program.

Health Match Enrollment Shift. In fiscal
year 2009, $6,178,000 shall be transferred
from the health care access fund to the
general fund to pay for the Health Match
program-related enrollment shift. In the
event no systematic enrollment shift of
MinnesotaCare families and children to
medical assistance occurs prior to June 30,
2009, except as required under Minnesota
Statutes, section 256L.04, subdivision 8, this
transfer shall not occur.

(b) MA Basic Health Care - Families and Children

Appropriations by Fund
General	739,957,000	838,874,000
Health Care Access	1,672,000	-0-

(c) MA Basic Health Care - Elderly and Disabled

General

995,560,000

1,101,390,000

Treatment Foster Care Services Delay. (a)
Notwithstanding Minnesota Statutes, section
256B.0625, subdivision 47, effective July
1, 2009, and subject to federal approval,
medical assistance covers treatment foster
care services according to Minnesota
Statutes, section 256B.0946.

(b) Of the general fund savings that result
from the delayed effective date in paragraph
(a):

(1) The commissioner shall present to the
legislature, by February 1, 2008, a report
and recommendations on establishing a
health insurance exchange that would
provide individuals with greater access,
choice, portability, and affordability of
health insurance products. The report must
evaluate, identify options, and present
recommendations, on:

(i) whether a health insurance exchange
would provide individuals with greater
access, choice, portability, and affordability
of health care products;

(ii) the duties and powers of the exchange;

(iii) the use of the exchange to receive and
process employee premiums on a pretax
basis through section 125 plans;

(iv) eligibility criteria that enrollees and
health plan companies must meet to
participate in the exchange;

(v) the types of health plans to be offered
through the exchange, and the extent to
which these plans should be available for
purchase only through the exchange;

(vi) loss ratio requirements for health plans
offered through the exchange;

(vii) the extent to which the operation of the
exchange will lower the cost of health care
insurance coverage;

(viii) estimates of administrative costs of
operating the exchange, and methods for
funding these administrative costs; and

(iv) other topics relevant to the design and
operation of the exchange if its establishment
is recommended.

(2) $375,000 each year are for the family,
friend, and neighbor grant program in article
1, section 94. Any balance in the first year
does not cancel but is available in the second
year. This appropriation is for the 2008-2009
biennium only, and does not increase the
base funding.

(3) $300,000 each year from the general fund
and $150,000 each year from the TANF fund
are to the commissioner for the purposes
of a program in Ramsey County that
provides early intervention efforts designed
to discourage pregnant women from using
alcohol and illegal drugs. The appropriation
shall not become part of base level funding
and is available until spent.

(4) $750,000 the first year is for transitional
housing programs under Minnesota Statutes,
section 256E.33. Up to ten percent of this
appropriation may be used for housing and
services which extend beyond 24 months.
$600,000 the first year is for emergency
services grants under Laws 1997, chapter
162, article 3, section 7.

(5) $50,000 each year is for a grant to HOME
Line for the tenant hotline services program.
This is a onetime appropriation. * (The
preceding text beginning "(5) $50,000 each
year is for" was indicated as vetoed by the
governor.)

(6) $60,000 in fiscal year 2008 is to
the commissioner to contract with a
Minnesota-based, nonprofit quality
improvement organization that collaborates
with providers and consumers in health
improvement activities, for the purpose
of conducting an independent analysis
of the reimbursement methodologies for
home health services provided to enrollees
in the Minnesota senior health options
and Minnesota disability health options
programs. The analysis of reimbursement
methodologies shall include, at a minimum,
a review of:

(i) any limitations on flexibility in services or
technology for the home health provider;

(ii) the Medicare program reimbursement
methodologies, including possible
alternatives, and Medicare benefits;

(iii) potential access issues raised by current
reimbursement methodologies; and

(iv) incentives, including episodic care
reimbursement methodologies, to promote
best practices and achieve identified clinical
outcomes.

The analysis and any supporting
recommendations shall be presented
to the commissioner by December 1, 2007,
and to the chairs of the appropriate legislative
committees by December 15, 2007. In no
event shall the study disclose any specific
reimbursement amount or methodologies
attributable to an individual health carrier.

In conducting its analysis, the organization
described in paragraph (a) shall consult with
the commissioner, the Minnesota Home Care
Association, managed care organizations,
and other interested home health entities and
advocates, and shall convene the parties to
discuss pertinent issues.

(7) $50,000 the first year is to conduct
a feasibility study of and to predesign a
Native American juvenile treatment center
on or near the White Earth Reservation.
The facility must house and treat Native
American juveniles and provide culturally
specific programming to juveniles placed in
the treatment center. The commissioner may
contract with parties who have experience
in the design and construction of juvenile
treatment centers to assist in the feasibility
study and predesign. On or before January
15, 2008, the commissioner shall present
the results of the feasibility study and the
predesign of the facility to the chairs of house
of representatives and senate committees
having jurisdiction over human services
finance, public safety finance, and capital
investment.

(8) $200,000 in fiscal year 2008 and $200,000
in fiscal year 2009 are to develop a statewide
quality assurance and improvement system
under Minnesota Statutes, section 256B.096,
for persons receiving disability services.
Any unspent portion of the appropriation
for the first year shall not cancel but shall
be available for the second year. These are
onetime appropriations.

(9) $200,000 is to the commissioner to be
available until June 30, 2009, to make a
grant to Advocating Change Together for the
purposes of the Remembering With Dignity
project. As part of the Remembering With
Dignity project, the grant recipient shall:

(i) conduct necessary research on persons
buried in state cemeteries who were residents
of state hospitals or regional treatment
centers and buried in numbered or unmarked
graves;

(ii) purchase and install headstones that are
properly inscribed with their names on the
graves of those persons; and

(iii) collaborate with community groups
and state and local government agencies to
build community involvement and public
awareness, ensure public access to the
graves, and ensure appropriate perpetual
maintenance of state cemeteries.

(10) $500,000 each year are to fund
the Regional Children's Mental Health
Initiative pilot project. This is a onetime
appropriation. This paragraph does not apply
to a radiation therapy facility that is being
built attached to a community hospital in
Wright County and meets the following
conditions prior to August 1, 2007: the
capital expenditure report required under
Minnesota Statutes, section 62J.17, has been
filed with the commissioner of health; a
timely construction schedule is developed,
stipulating dates for beginning, achieving
various stages, and completing construction;
and all zoning and building permits applied
for.

Provider-Directed Care Coordination. In
addition to medical assistance reimbursement
under Minnesota Statutes, sections
256B.0625 and 256B.76, clinics participating
in provider-directed care coordination under
Minnesota Statutes, section 256B.0625, also
receive a monthly payment per client when
the clinic serves an eligible client. The
payments across the program must average
$50 per month per client.

(d) General Assistance Medical Care Grants

General

238,822,000

251,412,000

(e) Other Health Care Grants

General	421,000	921,000
Health Care Access	850,000	900,000

Community-Based Health Care
Demonstration Project. Of the general
fund appropriation, $212,000 deleted text begin each year deleted text end is
to be transferred to the commissioner of
health for the demonstration project grant
described in Minnesota Statutes, section
62Q.80, subdivision 1a. deleted text begin This appropriation
shall remain part of base level funding until
June 30, 2012. Notwithstanding any contrary
provision in this article, this rider expires
July 1, 2012. deleted text end

Care Coordination Pilot Projects. Of
the health care access fund appropriation,
$881,000 in fiscal year 2009 is for the health
care pilot projects for children and adults
with complex health care needs. Base level
funding for this program is $878,000 in 2010
and $0 in 2011.

Patient Incentive Programs. Of the general
fund appropriation, $500,000 in fiscal year
2009 is for patient incentive programs.

Base Adjustment. The health care access
fund base is $900,000 in fiscal year 2010 and
$150,000 in fiscal year 2011.

Oral Health Care Innovations Grants. (a)
Of the health care access fund appropriation,
$400,000 for the fiscal year beginning July 1,
2007, is to award competitive oral health care
innovations grants to organizations described
in Minnesota Statutes, section 256B.76,
paragraph (b), clause (4), or coalitions of
such organizations, providing access to oral
health services for low-income and uninsured
persons. The commissioner shall award one
grant for a project to develop a nonprofit
dental clinic serving public program
recipients and uninsured persons in Beltrami
County; one grant for the maintenance of
nonprofit dental clinics providing oral health
care services to children ages birth to 18 in
St. Louis County; and one grant for the bright
smiles program to increase access to oral
health care for low-income and immigrant
children, ages birth to five years, and their
families in underserved areas in Minneapolis.

(b) This grant shall not become part of base
level funding.

State Health Policies Grant. Of the health
care access fund appropriation, $300,000 in
fiscal year 2008 is to provide a grant to a
research center associated with a safety net
hospital and county-affiliated health system
to develop the capabilities necessary for
evaluating the effects of changes in state
health policies on low-income and uninsured
individuals, including the impact on state
health care program costs, health outcomes,
cost-shifting to different units and levels
of government, and utilization patterns
including use of emergency room care and
hospitalization rates. The center shall report
on the use of this money by December 1,
2008, to the chairs of the senate and house
of representatives committees with relevant
jurisdiction. * (The preceding text beginning
"State Health Policies Grant." was indicated
as vetoed by the governor.)

Sec. 17. new text begin REPEALER.
new text end

new text begin (a) new text end new text begin Minnesota Statutes 2007 Supplement, section 256.969, subdivision 27, new text end new text begin is
repealed retroactively from July 1, 2007.
new text end

new text begin (b) new text end new text begin Minnesota Statutes 2007 Supplement, sections 256.962, subdivision 5; 256B.057,
subdivision 2c; and 256L.07, subdivision 7, new text end new text begin are repealed.
new text end

ARTICLE 6

DEPARTMENT OF HEALTH

Section 1.

Minnesota Statutes 2006, section 144.1222, subdivision 1a, is amended to
read:

Subd. 1a.

Fees.

All plans and specifications for public swimming pool and spa
construction, installation, or alteration or requests for a variance that are submitted to the
commissioner according to Minnesota Rules, part 4717.3975, shall be accompanied by the
appropriate fees. new text begin All public pool construction plans submitted for review after January 1,
2009, must be certified by a professional engineer registered in the state of Minnesota. new text end
If the commissioner determines, upon review of the plans, that inadequate fees were
paid, the necessary additional fees shall be paid before plan approval. For purposes of
determining fees, a project is defined as a proposal to construct or install a public pool,
spa, special purpose pool, or wading pool and all associated water treatment equipment
and drains, gutters, decks, water recreation features, spray pads, and those design and
safety features that are within five feet of any pool or spa. The commissioner shall charge
the following fees for plan review and inspection of public pools and spas and for requests
for variance from the public pool and spa rules:

(1) each deleted text begin spa deleted text end pool, deleted text begin $500 deleted text end new text begin $800 new text end ;

(2) deleted text begin projects valued at $250,000 or less, a minimum of $800 per pool plus: deleted text end new text begin each
spa pool, $500;
new text end

deleted text begin (i) deleted text end new text begin (3) new text end deleted text begin for deleted text end each slide, deleted text begin an additional deleted text end $400; deleted text begin and
deleted text end

deleted text begin (ii) for each spa pool, an additional $500;
deleted text end

deleted text begin (3) deleted text end new text begin (4) new text end projects valued at $250,000 or more, new text begin the greater of the sum of the fees in
clauses (1), (2), and (3) or new text end 0.5 percent of new text begin the new text end documented estimated project cost to a
maximum fee of $10,000;

deleted text begin (4) deleted text end new text begin (5) new text end alterations to an existing pool without changing the size or configuration
of the pool, $400;

deleted text begin (5) deleted text end new text begin (6) new text end removal or replacement of pool disinfection equipment only, $75; and

deleted text begin (6) deleted text end new text begin (7) new text end request for variance from the public pool and spa rules, $500.

Sec. 2.

Minnesota Statutes 2006, section 144.1222, is amended by adding a subdivision
to read:

new text begin Subd. 1b. new text end

new text begin Unblockable drain. new text end

new text begin "Unblockable drain" means a drain of any size and
shape that a human body cannot sufficiently block to create a suction entrapment hazard.
new text end

Sec. 3.

Minnesota Statutes 2006, section 144.1222, is amended by adding a subdivision
to read:

new text begin Subd. 1c. new text end

new text begin Public pool construction. new text end

new text begin All public pools constructed after December
19, 2008, must contain a combination of two or more main drains, or drain covers meeting
ASME/ANSI standards, connected in parallel, per suction pump.
new text end

Sec. 4.

Minnesota Statutes 2006, section 144.1222, is amended by adding a subdivision
to read:

new text begin Subd. 1d. new text end

new text begin Public pools; required equipment. new text end

new text begin (a) Beginning December 19, 2008,
all pools with the deepest water being less than four feet deep must meet the requirements
in this subdivision:
new text end

new text begin (1) Each public pool and spa must be equipped with anti-entrapment devices or
systems that comply with ASME/ANSI performance standard A112.19.8, or any successor
standard.
new text end

new text begin (2) Each public pool and spa with a single main drain, other than an unblockable
drain, must be equipped, at a minimum, with one or more of the devices listed in items (i)
to (vi) or with systems designed to prevent entrapment by pool or spa drains that meet the
requirements of paragraph (b):
new text end

new text begin (i) a safety vacuum release system that ceases operation of the pump, reverses
the circulation flow, or otherwise provides a vacuum release at a suction outlet when a
blockage is detected, that has been tested by an independent third party and found to
conform to ASME/ANSI standard A112.19.17 or ASTM standard F2387;
new text end

new text begin (ii) a suction-limiting vent system with a tamper-resistant atmospheric opening;
new text end

new text begin (iii) a gravity drainage system that utilizes a collector tank;
new text end

new text begin (iv) an automatic pump shut-off system;
new text end

new text begin (v) a device or system that disables the drain; and
new text end

new text begin (vi) any other system determined by the commissioner to be equally effective as,
or better than, the systems listed in this paragraph at preventing or eliminating the risk
of injury or death associated with pool drainage systems.
new text end

new text begin (b) Any devise or system described in paragraph (a) must meet the requirements of
any ASME/ANSI or ASTM performance standard if there is a standard for a device or
system, or any applicable consumer product safety standard.
new text end

new text begin (c) All other existing pools must comply with this subdivision no later than
December 19, 2009.
new text end

Sec. 5.

Minnesota Statutes 2006, section 157.16, as amended by Laws 2007, chapter
147, article 9, section 34, is amended to read:

157.16 LICENSES REQUIRED; FEES.

Subdivision 1.

License required annually.

A license is required annually for
every person, firm, or corporation engaged in the business of conducting a food and
beverage service establishment, hotel, motel, lodging establishment, new text begin public pool, new text end or
resort. Any person wishing to operate a place of business licensed in this section shall
first make application, pay the required fee specified in this section, and receive approval
for operation, including plan review approval. Seasonal and temporary food stands and
special event food stands are not required to submit plans. Nonprofit organizations
operating a special event food stand with multiple locations at an annual one-day event
shall be issued only one license. Application shall be made on forms provided by the
commissioner and shall require the applicant to state the full name and address of the
owner of the building, structure, or enclosure, the lessee and manager of the food and
beverage service establishment, hotel, motel, lodging establishment, new text begin public pool, new text end or resort;
the name under which the business is to be conducted; and any other information as may
be required by the commissioner to complete the application for license.

Subd. 2.

License renewal.

Initial and renewal licenses for all food and beverage
service establishments, hotels, motels, lodging establishments, new text begin public pools, new text end and resorts
shall be issued for the calendar year for which application is made and shall expire
on December 31 of such year. Any person who operates a place of business after the
expiration date of a license or without having submitted an application and paid the fee
shall be deemed to have violated the provisions of this chapter and shall be subject to
enforcement action, as provided in the Health Enforcement Consolidation Act, sections
144.989 to 144.993. In addition, a penalty of $50 shall be added to the total of the license
fee for any food and beverage service establishment operating without a license as a
mobile food unit, a seasonal temporary or seasonal permanent food stand, or a special
event food stand, and a penalty of $100 shall be added to the total of the license fee for all
restaurants, food carts, hotels, motels, lodging establishments, new text begin public pools, new text end and resorts
operating without a license for a period of up to 30 days. A late fee of $300 shall be added
to the license fee for establishments operating more than 30 days without a license.

Subd. 2a.

Food manager certification.

An applicant for certification or certification
renewal as a food manager must submit to the commissioner a $28 nonrefundable
certification fee payable to the Department of Health.

Subd. 3.

Establishment fees; definitions.

(a) The following fees are required for
food and beverage service establishments, hotels, motels, lodging establishments, new text begin public
pools, new text end and resorts licensed under this chapter. Food and beverage service establishments
must pay the highest applicable fee under paragraph (d), clause (1), (2), (3), or (4), and
establishments serving alcohol must pay the highest applicable fee under paragraph (d),
clause (6) or (7). The license fee for new operators previously licensed under this chapter
for the same calendar year is one-half of the appropriate annual license fee, plus any
penalty that may be required. The license fee for operators opening on or after October 1
is one-half of the appropriate annual license fee, plus any penalty that may be required.

(b) All food and beverage service establishments, except special event food stands,
and all hotels, motels, lodging establishments, new text begin public pools, new text end and resorts shall pay an
annual base fee of $150.

(c) A special event food stand shall pay a flat fee of $40 annually. "Special event
food stand" means a fee category where food is prepared or served in conjunction with
celebrations, county fairs, or special events from a special event food stand as defined
in section 157.15.

(d) In addition to the base fee in paragraph (b), each food and beverage service
establishment, other than a special event food stand, and each hotel, motel, lodging
establishment, new text begin public pool, new text end and resort shall pay an additional annual fee for each fee
category, additional food service, or required additional inspection specified in this
paragraph:

(1) Limited food menu selection, $50. "Limited food menu selection" means a fee
category that provides one or more of the following:

(i) prepackaged food that receives heat treatment and is served in the package;

(ii) frozen pizza that is heated and served;

(iii) a continental breakfast such as rolls, coffee, juice, milk, and cold cereal;

(iv) soft drinks, coffee, or nonalcoholic beverages; or

(v) cleaning for eating, drinking, or cooking utensils, when the only food served
is prepared off site.

(2) Small establishment, including boarding establishments, $100. "Small
establishment" means a fee category that has no salad bar and meets one or more of
the following:

(i) possesses food service equipment that consists of no more than a deep fat fryer, a
grill, two hot holding containers, and one or more microwave ovens;

(ii) serves dipped ice cream or soft serve frozen desserts;

(iii) serves breakfast in an owner-occupied bed and breakfast establishment;

(iv) is a boarding establishment; or

(v) meets the equipment criteria in clause (3), item (i) or (ii), and has a maximum
patron seating capacity of not more than 50.

(3) Medium establishment, $260. "Medium establishment" means a fee category
that meets one or more of the following:

(i) possesses food service equipment that includes a range, oven, steam table, salad
bar, or salad preparation area;

(ii) possesses food service equipment that includes more than one deep fat fryer,
one grill, or two hot holding containers; or

(iii) is an establishment where food is prepared at one location and served at one or
more separate locations.

Establishments meeting criteria in clause (2), item (v), are not included in this fee
category.

(4) Large establishment, $460. "Large establishment" means either:

(i) a fee category that (A) meets the criteria in clause (3), items (i) or (ii), for a
medium establishment, (B) seats more than 175 people, and (C) offers the full menu
selection an average of five or more days a week during the weeks of operation; or

(ii) a fee category that (A) meets the criteria in clause (3), item (iii), for a medium
establishment, and (B) prepares and serves 500 or more meals per day.

(5) Other food and beverage service, including food carts, mobile food units,
seasonal temporary food stands, and seasonal permanent food stands, $50.

(6) Beer or wine table service, $50. "Beer or wine table service" means a fee
category where the only alcoholic beverage service is beer or wine, served to customers
seated at tables.

(7) Alcoholic beverage service, other than beer or wine table service, $135.

"Alcohol beverage service, other than beer or wine table service" means a fee
category where alcoholic mixed drinks are served or where beer or wine are served from
a bar.

(8) Lodging per sleeping accommodation unit, $8, including hotels, motels,
lodging establishments, and resorts, up to a maximum of $800. "Lodging per sleeping
accommodation unit" means a fee category including the number of guest rooms, cottages,
or other rental units of a hotel, motel, lodging establishment, or resort; or the number of
beds in a dormitory.

(9) First public swimming pool, $180; each additional public swimming pool, $100.
"Public swimming pool" means a fee category that has the meaning given in Minnesota
Rules, part 4717.0250, subpart 8.

(10) First spa, $110; each additional spa, $50. "Spa pool" means a fee category that
has the meaning given in Minnesota Rules, part 4717.0250, subpart 9.

(11) Private sewer or water, $50. "Individual private water" means a fee category
with a water supply other than a community public water supply as defined in Minnesota
Rules, chapter 4720. "Individual private sewer" means a fee category with an individual
sewage treatment system which uses subsurface treatment and disposal.

(12) Additional food service, $130. "Additional food service" means a location at
a food service establishment, other than the primary food preparation and service area,
used to prepare or serve food to the public.

(13) Additional inspection fee, $300. "Additional inspection fee" means a fee to
conduct the second inspection each year for elementary and secondary education facility
school lunch programs when required by the Richard B. Russell National School Lunch
Act.

(e) A fee of $350 for review of the construction plans must accompany the initial
license application for restaurants, hotels, motels, lodging establishments, or resorts with
five or more sleeping units.

(f) When existing food and beverage service establishments, hotels, motels, lodging
establishments, or resorts are extensively remodeled, a fee of $250 must be submitted
with the remodeling plans. A fee of $250 must be submitted for new construction or
remodeling for a restaurant with a limited food menu selection, a seasonal permanent
food stand, a mobile food unit, or a food cart, or for a hotel, motel, resort, or lodging
establishment addition of less than five sleeping units.

(g) Seasonal temporary food stands and special event food stands are not required to
submit construction or remodeling plans for review.

Subd. 3a.

Statewide hospitality fee.

Every person, firm, or corporation that
operates a licensed boarding establishment, food and beverage service establishment,
seasonal temporary or permanent food stand, special event food stand, mobile food unit,
food cart, resort, hotel, motel, or lodging establishment in Minnesota must submit to the
commissioner a $35 annual statewide hospitality fee for each licensed activity. The fee
for establishments licensed by the Department of Health is required at the same time the
licensure fee is due. For establishments licensed by local governments, the fee is due by
July 1 of each year.

Subd. 4.

Posting requirements.

Every food and beverage service establishment,
hotel, motel, lodging establishment, new text begin public pool, new text end or resort must have the license posted in
a conspicuous place at the establishment.

Sec. 6.

Laws 2007, chapter 147, article 19, section 4, subdivision 2, is amended to read:

Subd. 2. Community and Family Health Promotion

Appropriations by Fund
General	44,271,000	43,836,000
State Government Special Revenue	870,000	875,000
Health Care Access	4,050,000	4,086,000
Federal TANF	8,735,000	8,735,000

TANF Appropriations. (a) $3,579,000 of
the TANF funds is appropriated in each year
of the biennium to the commissioner for
home visiting and nutritional services listed
under Minnesota Statutes, section 145.882,
subdivision 7, clauses (6) and (7). Funding
shall be distributed to community health
boards according to Minnesota Statutes,
section 145A.131, subdivision 1.

(b) $4,000,000 in the first year and $4,000,000
in the second year are appropriated to the
commissioner of health for the family
home visiting grant program according
to Minnesota Statutes, section 145A.17.
Funding shall be distributed to community
health boards according to Minnesota
Statutes, section 145A.131, subdivision 1.
The commissioner may use five percent of
the funds appropriated in each fiscal year to
conduct the ongoing evaluations required
under Minnesota Statutes, section 145A.17,
subdivision 7, and may use ten percent of
the funds appropriated each fiscal year to
provide training and technical assistance as
required under Minnesota Statutes, section
145A.17, subdivisions 4 and 5.

TANF Carryforward. Any unexpended
balance of the TANF appropriation in the
first year of the biennium does not cancel but
is available for the second year.

Loan Forgiveness. $400,000 in fiscal
year 2010 and $400,000 in fiscal year
2011 from the state government special
revenue fund are to the commissioner
for the loan forgiveness program under
Minnesota Statutes, section 144.1501. This
appropriation shall not become part of base
level funding for the biennium beginning
July 1, 2011. Notwithstanding any contrary
provision in this article, this rider expires
December 31, 2011.

MN ENABL. Base level funding for the MN
ENABL program, under Minnesota Statutes,
section 145.9255, is reduced by $220,000
each year of the biennium beginning July 1,
2007.

Fetal Alcohol Spectrum Disorder.
$500,000 deleted text begin each year deleted text end new text begin in fiscal year 2008 new text end from
the general fund is added to the base for fetal
alcohol spectrum disorder.

(1) On July 1 of each fiscal year, the
portion of the general fund appropriation
to the commissioner of health for fetal
alcohol spectrum disorder administration
and grants shall be transferred to a
statewide organization that focuses solely
on prevention of and intervention with fetal
alcohol spectrum disorder as follows:

(i) on July 1, 2007, $1,690,000; and

(ii) on July 1, 2008, deleted text begin $1,690,000 deleted text end new text begin $1,190,000 new text end .

(2) The money shall be used for prevention
and intervention services and programs,
including, but not limited to, community
grants, professional education, public
awareness, and diagnosis. The organization
may retain $60,000 of the transferred money
for administrative costs. The organization
shall report to the commissioner annually
by January 15 on the services and programs
funded by the appropriation.

(3) Notwithstanding any contrary provision
in this article, this rider shall not expire.

Family Planning Grants. Of the TANF
appropriation, $1,156,000 each year is for
family planning grants under Minnesota
Statutes, section 145.925.

Suicide prevention programs. Of the
general fund appropriation, $335,000 in fiscal
year 2008 and $145,000 in fiscal year 2009
are to fund the suicide prevention program.

Hearing Aid and Instrument Loan Bank.
Of the general fund appropriation, $70,000
each year is to the commissioner for the
purpose of providing a grant to cover
administrative costs for a statewide hearing
aid and instrument loan bank to families with
children newly diagnosed with hearing loss
from birth to the age of ten.

Medical Home Learning Collaborative.
Of the health care access fund appropriation,
$500,000 in fiscal year 2008 and $500,000 in
fiscal year 2009 are to expand the medical
home learning collaborative initiative in
collaboration with the commissioner of
human services. Services provided under this
funding must support a medical home model
for children with special health care needs.
The collaborative shall report back to the
legislature on use of the funds by January 15,
2010. This appropriation shall not become
part of the base funding for the 2010-2011
biennium.

Base Adjustment. The health care access
fund base is $3,586,000 in each of fiscal
years 2010 and 2011.

Sec. 7.

Laws 2007, chapter 147, article 19, section 4, subdivision 4, is amended to read:

Subd. 4. Health Protection

Appropriations by Fund
General	15,315,000	10,526,000
State Government Special Revenue	27,475,000	28,327,000

Pandemic Influenza Preparedness. Of the
general fund appropriation, (1) $115,000 in
fiscal year 2008 is for department activities
of epidemiology, laboratory services,
exercises, and planning, and (2) $3,970,000
is to purchase antiviral medications and
prepare and manage a stockpile of health
care supplies.

Lead Abatement. Of the general fund
appropriation, $388,000 in deleted text begin each deleted text end fiscal year
new text begin 2008 new text end is for the lead abatement program in
Minnesota Statutes, section 144.9512.

Water Treatment. Of the general fund
appropriation, $40,000 in fiscal year 2008
is to augment any appropriation from the
remediation fund to conduct an evaluation of
point of use water treatment units at removing
perfluorooctanoic acid, perfluorooctane
sulfonate, and perfluorobutanoic acid from
known concentrations of these compounds
in drinking water. The evaluation shall be
completed by December 31, 2007, and the
commissioner may contract for services to
complete the evaluation. This is a onetime
appropriation.

HIV Information. Of the general fund
appropriation, $80,000 each year is to fund
a community-based nonprofit organization
with demonstrated capacity to operate a
statewide HIV information and referral
service using telephone, Internet, and other
appropriate technologies. This appropriation
shall become part of base level funding for
the biennium beginning July 1, 2009. * (The
preceding text beginning "HIV Information.
Of the general fund" was indicated as vetoed
by the governor.)

Base Adjustment. The general fund base
is deleted text begin $10,526,000 deleted text end new text begin $10,138,000 new text end in each of the
fiscal years 2010 and 2011.

Sec. 8. new text begin REVISOR'S INSTRUCTION.
new text end

new text begin The revisor of statutes shall change the public pool definition in Minnesota Rules,
part 4717.0250, subpart 8, with the following language: "public pool" means any pool that
is open to the public generally, whether for a fee or free of charge; open exclusively to
members of an organization and their guests; residents of a multiunit apartment building,
apartment complex, residential real estate development, or other multifamily residential
area; or patrons of a hotel or lodging or other public accommodation facility; or operated
by a person in a park, school, licensed child care facility, group home, motel, camp, resort,
club, condominium, manufactured home park, or political subdivision with the exception
of swimming pools at family day care homes licensed under Minnesota Statutes, section
245A.14, subdivision 11, paragraph (a).
new text end

Sec. 9. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2006, section 62J.58, new text end new text begin is repealed.
new text end

ARTICLE 7

HEALTH AND HUMAN SERVICES APPROPRIATIONS

Section 1. new text begin SUMMARY OF APPROPRIATIONS. new text end

new text begin The amounts shown in this section summarize direct appropriations by fund made
in this article.
new text end

		new text begin 2008 new text end		new text begin 2009 new text end		new text begin Total new text end
new text begin General new text end	new text begin $ new text end	new text begin (87,755,000) new text end	new text begin $ new text end	new text begin (186,164,000) new text end	new text begin $ new text end	new text begin (273,919,000) new text end
new text begin State Government Special new text end
new text begin Revenue new text end		new text begin 0 new text end		new text begin 633,000 new text end		new text begin 633,000 new text end
new text begin Health Care Access new text end		new text begin 0 new text end		new text begin 35,551,000 new text end		new text begin 35,551,000 new text end
new text begin Federal TANF new text end		new text begin 52,700,000 new text end		new text begin 38,818,000 new text end		new text begin 91,518,000 new text end
new text begin Total new text end	new text begin $ new text end	new text begin (35,055,000) new text end	new text begin $ new text end	new text begin (111,162,000) new text end	new text begin $ new text end	new text begin (146,217,000) new text end

Sec. 2. new text begin HEALTH AND HUMAN SERVICES APPROPRIATION. new text end

new text begin The sums shown in the columns marked "Appropriations" are added to or, if shown
in parentheses, subtracted from the appropriations in Laws 2007, chapter 147, or other
law to the agencies and for the purposes specified in this article. The appropriations
are from the general fund, or another named fund, and are available for the fiscal years
indicated for each purpose. The figures "2008" and "2009" used in this article mean
that the addition or subtraction from appropriations listed under them are available for
the fiscal year ending June 30, 2008, or June 30, 2009, respectively. "The first year" is
fiscal year 2008. "The second year" is fiscal year 2009. "The biennium" is fiscal years
2008 and 2009. Supplemental appropriations and reductions for the fiscal year ending
June 30, 2008, are effective the day following final enactment.
new text end

			new text begin APPROPRIATIONS new text end
			new text begin Available for the Year new text end
			new text begin Ending June 30 new text end
				new text begin 2008 new text end		new text begin 2009 new text end

Sec. 3. new text begin HUMAN SERVICES new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin (35,055,000) new text end

new text begin $ new text end

new text begin (109,482,000) new text end

new text begin Appropriations by Fund new text end
	new text begin 2008 new text end	new text begin 2009 new text end
new text begin General new text end	new text begin (87,755,000) new text end	new text begin (183,851,000) new text end
new text begin Health Care Access new text end	new text begin 0 new text end	new text begin 35,551,000 new text end
new text begin Federal TANF new text end	new text begin 52,700,000 new text end	new text begin 38,818,000 new text end

new text begin Subd. 2. new text end new text begin Agency Management new text end

new text begin Financial Operations new text end

new text begin 0 new text end

new text begin (5,867,000) new text end

new text begin The amounts that may be spent from the
appropriation for each purpose are as follows:
new text end

new text begin Base Adjustment. new text end new text begin The general fund base
is increased $23,000 in fiscal year 2010 and
$26,000 in fiscal year 2011.
new text end

new text begin Subd. 3. new text end new text begin Revenue and Pass-Through Revenue Expenditures new text end

new text begin Federal TANF new text end

new text begin 25,000,000 new text end

new text begin 27,039,000 new text end

new text begin Additional TANF Transfer to Social
Services Block Grant. new text end new text begin In addition
to transfers allowed under prior law,
$21,000,000 in fiscal year 2009 is
appropriated to the commissioner for the
purposes of providing services for families
with children whose incomes are at or below
200 percent of the federal poverty guidelines.
The commissioner shall authorize a sufficient
transfer of funds from the state's federal
TANF block grant to the state's federal
social services block grant to meet this
appropriation. The funds must be distributed
to counties for the children and community
services grant according to the formula for
state appropriations in Minnesota Statutes,
chapter 256M.
new text end

new text begin new text begin Additional TANF Transfer to Child
Care and Development Fund. new text end In
addition to transfers allowed under prior
law, $25,000,000 in fiscal year 2008
and $6,039,000 in fiscal year 2009 are
appropriated to the commissioner for the
purposes of MFIP transition year child care
under Minnesota Statutes, section 119B.05.
The commissioner shall authorize transfer
of sufficient TANF funds to the federal
child care and development fund to meet
this appropriation and shall ensure that all
transferred funds are expended according to
the federal child care and development fund
regulations.
new text end

new text begin Subd. 4. new text end new text begin Children and Economic Assistance Grants new text end

new text begin The amounts that may be spent from this
appropriation for each purpose are as follows:
new text end

new text begin (a) MFIP/DWP Grants new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin (27,700,000) new text end	new text begin (11,779,000) new text end
new text begin Federal TANF new text end	new text begin 27,700,000 new text end	new text begin 11,779,000 new text end

new text begin (b) MFIP Child Care Assistance Grants new text end

new text begin (25,000,000) new text end

new text begin (6,039,000) new text end

new text begin (c) Children's Services Grants new text end

new text begin (311,000) new text end

new text begin (1,742,000) new text end

new text begin Base Adjustment. The general fund base
is increased $1,726,000 in fiscal year 2010
and $1,742,000 in fiscal year 2011 due to
the onetime increase in adoption assistance
grants and the onetime decreases in relative
custody assistance grants, and the delayed
rate increase and county shift for children's
mental health grants.
new text end

new text begin Funding Usage. Up to 75 percent of the
fiscal year 2010 appropriation for children's
mental health screening grants may be used
to fund calendar year 2009 allocations for
these programs, with the resulting calendar
year funding pattern continuing into the
future.
new text end

new text begin (d) Children and Community Services Grants new text end

new text begin 0 new text end

new text begin (21,330,000) new text end

new text begin Base Adjustment. The general fund base
is increased $21,264,000 in fiscal year 2010
and $21,330,000 in fiscal year 2011 to
reinvest a onetime reduction to community
social service grants and the delay of the
cost-of-living adjustment for community
social service grants.
new text end

new text begin (e) Minnesota Supplemental Aid Grants new text end

new text begin 0 new text end

new text begin 201,000 new text end

new text begin (f) Group Residential Housing Grants new text end

new text begin 0 new text end

new text begin (433,000) new text end

new text begin Subd. 5. new text end new text begin Basic Health Care Grants new text end

new text begin The amounts that may be spent from this
appropriation for each purpose are as follows:
new text end

new text begin (a) MinnesotaCare Grants new text end

new text begin Health Care Access new text end

new text begin 0 new text end

new text begin (9,618,000) new text end

new text begin (b) MA Basic Health Care Grants - Families and Children new text end

new text begin (17,985,000) new text end

new text begin (33,277,000) new text end

new text begin Hospital Payment Delay. Notwithstanding
Laws 2005, First Special Session chapter 4,
article 9, section 2, subdivision 6, payments
from the Medicaid Management Information
System that would otherwise have been made
for inpatient hospital services for medical
assistance enrollees are delayed as follows:
(1) for fiscal year 2008, the last payments for
the month of June must be included in the
first payments in fiscal year 2009; and (2)
for fiscal year 2009, the last payments in the
month of June must be included in the first
payment of fiscal year 2010. The provisions
of Minnesota Statutes, section 16A.124, shall
not apply to these delayed payments.
new text end

new text begin (c) MA Basic Health Care Grants - Elderly and Disabled new text end

new text begin (14,028,000) new text end

new text begin (6,608,000) new text end

new text begin Minnesota Disabilities Options Service
Limits. Enrollment of new members into the
Minnesota disability health options program
under Minnesota Statutes, section 256B.69,
subdivision 23, must be limited to provision
of state plan basic care services as defined
under Minnesota Statutes, section 256B.69,
subdivision 28, after July 1, 2008, except that
nursing home services will remain capitated
at 180 days. Notwithstanding any contrary
section in this article, this provision expires
June 30, 2011.
new text end

new text begin (d) General Assistance Medical Care Grants new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 0 new text end	new text begin (50,743,000) new text end
new text begin Health Care Access new text end	new text begin 0 new text end	new text begin 46,835,000 new text end

new text begin GAMC Transition. Notwithstanding
Minnesota Statutes, section 295.581,
payments for general assistance medical care
under Minnesota Statutes, section 256D.03,
subdivision 3, paragraph (c), for adults
transitioning to MinnesotaCare must be
paid for out of the health care access fund.
Notwithstanding any contrary provision in
this article, this provision does not expire.
new text end

new text begin (e) Other Health Care Grants new text end

new text begin 0 new text end

new text begin (212,000) new text end

new text begin MinnesotaCare Outreach Grants Special
Revenue Account. The balance in the
MinnesotaCare outreach grants special
revenue account at the close of fiscal year
2008 must be transferred to the general fund.
new text end

new text begin Subd. 6. new text end new text begin Health Care Management new text end

new text begin The amounts that may be spent from the
appropriation for each purpose are as follows:
new text end

new text begin (a) Health Care Administration new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin (200,000) new text end	new text begin (1,223,000) new text end
new text begin Health Care Access new text end	new text begin 0 new text end	new text begin (1,096,000) new text end

new text begin Base Adjustment. The general fund base is
increased $164,000 in fiscal year 2010 and
$335,000 in fiscal year 2011. The health care
access fund base is increased $125,000 in
fiscal years 2010 and 2011.
new text end

new text begin (b) Health Care Operations new text end

new text begin Health Care Access new text end

new text begin 0 new text end

new text begin (570,000) new text end

new text begin Base Adjustment. The general fund base is
decreased $1,151,000 in fiscal year 2010 and
$1,068,000 in fiscal year 2011.
new text end

new text begin Subd. 7. new text end new text begin Continuing Care Grants new text end

new text begin The amounts that may be spent from the
appropriation for each purpose are as follows:
new text end

new text begin (a) Aging and Adult Services Grants new text end

new text begin 0 new text end

new text begin (241,000) new text end

new text begin Base Adjustment. The general fund base
is increased $193,000 in fiscal year 2010
and $241,000 in fiscal year 2011 due to the
delayed rate adjustment for aging and adult
services grants.
new text end

new text begin (b) Alternative Care Grants new text end

new text begin 0 new text end

new text begin (661,000) new text end

new text begin Base Adjustment. new text end new text begin The general fund base
is increased $511,000 in fiscal year 2010
and $661,000 in fiscal year 2011 due to the
delayed rate adjustment for alternative care
grants.
new text end

new text begin (c) MA Long-Term Care Facilities Grants new text end

new text begin (2,306,000) new text end

new text begin (8,366,000) new text end

new text begin Long-Term Care Provider Rate
Adjustment Delay. Notwithstanding Laws
2007, chapter 147, article 7, sections 59
and 71, the long-term care provider rate
adjustment for July 1, 2008, is delayed until
July 1, 2009.
new text end

new text begin (d) MA Long-Term Care Waivers and Home Care Grants new text end

new text begin 0 new text end

new text begin (23,679,000) new text end

new text begin Manage Growth in TBI and CADI Waiver.
During the fiscal years beginning on July
1, 2008, July 1, 2009, and July 1, 2010,
the commissioner shall allocate money
for home and community-based programs
covered under Minnesota Statutes, section
256B.49, to ensure a reduction in state
spending that is equivalent to limiting the
caseload growth of the traumatic brain injury
(TBI) waiver to 200 diversions in each
year of the biennium and the community
alternatives for disabled individuals (CADI)
waiver to 1,500 diversions each year of the
biennium. Priorities for the allocation of
funds must be for individuals anticipated to
be discharged from institutional settings or
who are at imminent risk of a placement in
an institutional setting. Notwithstanding any
contrary section in this article, this provision
expires June 30, 2011.
new text end

new text begin (e) Mental Health Grants new text end

new text begin 0 new text end

new text begin (5,450,000) new text end

new text begin Base Adjustment. The general fund base
is increased $5,270,000 in fiscal year 2010
and $5,450,000 in fiscal year 2011 due to the
delayed rate adjustment and county payment
shift for adult mental health grants.
new text end

new text begin (f) Deaf and Hard-of-Hearing Grants new text end

new text begin 0 new text end

new text begin (20,000) new text end

new text begin Base Adjustment. The general fund base
is increased $16,000 in fiscal year 2010 and
$20,000 in fiscal year 2011 due to the delayed
rate increase for deaf and hard-of-hearing
grants.
new text end

new text begin (g) Chemical Dependency Entitlement Grants new text end

new text begin 0 new text end

new text begin (3,390,000) new text end

new text begin Payments for Substance Abuse Treatment.
For services provided in fiscal year 2009,
county-negotiated rates and provider claims
to the consolidated chemical dependency
fund must not exceed rates charged for
services in excess of those in effect on
May 31, 2008. If statutes authorize a
cost-of-living adjustment during fiscal year
2009, then notwithstanding any law to the
contrary, fiscal year 2009 rates may not
exceed those in effect on May 31, 2008, plus
any authorized cost-of-living adjustments.
new text end

new text begin Chemical Dependency Treatment Fund
Special Revenue Account.
new text end

new text begin The lesser of the balance of the consolidated
chemical dependency treatment fund at the
close of fiscal year 2008 or $2,500,000 must
be transferred and deposited into the general
fund.
new text end

new text begin (h) Chemical Dependency Nonentitlement Grants new text end

new text begin 0 new text end

new text begin 2,150,000 new text end

new text begin Base Level Adjustment. The general
fund base for chemical dependency
nonentitlement treatment grants shall be
increased by $150,000 for fiscal years
2010 and 2011 for increased grants for
methamphetamine treatment.
new text end

new text begin American Indian Youth Program. Of
the health care access fund appropriation,
$2,000,000 in fiscal year 2009 is for grants
to be awarded competitively to American
Indian tribes to purchase or develop one or
more culturally specific treatment programs
designed to serve youth from native cultures.
This appropriation is onetime and available
until spent.
new text end

new text begin (i) Other Continuing Care Grants new text end

new text begin 0 new text end

new text begin (4,832,000) new text end

new text begin Base Level Adjustment. The general fund
base is increased $7,633,000 in fiscal year
2010 and $5,332,000 in fiscal year 2011, due
to the onetime reduction of HIV grants in
fiscal year 2009, an increase each year for
housing grants under Minnesota Statutes,
section 256B.0658, and the adjustment
for the county grant payment shift for
developmental disability semi-independent
services grants and developmental disability
family support grants.
new text end

new text begin Housing Access Grants. Of the general
fund appropriation, $250,000 is appropriated
in fiscal year 2009 for housing access
grants under Minnesota Statutes, section
256B.0658.
new text end

new text begin Funding Usage. Up to 75 percent of
the fiscal year 2010 appropriation for
developmental disability semi-independent
living services grants and developmental
disability family support grants may be used
to fund calendar year 2009 allocations for
these programs, with the resulting calendar
year funding pattern continuing into the
future.
new text end

new text begin Subd. 8. new text end new text begin State-Operated Services new text end

new text begin County Past Due Receivables. new text end new text begin The
commissioner is authorized to withhold
county federal administrative reimbursement
when the county of financial responsibility
for cost-of-care payments due to the state
under Minnesota Statutes, section 246.54
or 253B.045, is 180 days past due. The
commissioner shall deposit the federal
administrative withholding into the general
fund to settle the claims with the county of
financial responsibility.
new text end

new text begin Mental Health Services new text end

new text begin (225,000) new text end

new text begin (300,000) new text end

Sec. 4. new text begin COMMISSIONER OF HEALTH new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 0 new text end

new text begin $ new text end

new text begin (1,723,000) new text end

new text begin Appropriations by Fund new text end
	new text begin 2008 new text end	new text begin 2009 new text end
new text begin General new text end	new text begin 0 new text end	new text begin (2,356,000) new text end
new text begin State Government Special Revenue new text end	new text begin 0 new text end	new text begin 633,000 new text end

new text begin Subd. 2. new text end new text begin Community and Family Health new text end

new text begin 0 new text end

new text begin (825,000) new text end

new text begin Subd. 3. new text end new text begin Health Protection new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 0 new text end	new text begin (388,000) new text end
new text begin State Government Special Revenue new text end	new text begin 0 new text end	new text begin 633,000 new text end

new text begin Base Adjustment. The state government
special revenue fund base is increased
$89,000 in fiscal years 2010 and 2011.
new text end

new text begin Subd. 4. new text end new text begin Administrative Support Services new text end

new text begin 0 new text end

new text begin (1,100,000) new text end

new text begin Base Adjustment. new text end new text begin The general fund base is
increased $46,000 in fiscal years 2010 and
2011.
new text end

Sec. 5. new text begin HEALTH RELATED BOARDS new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin 2008 new text end

new text begin 2009 new text end

new text begin State Government Special Revenue new text end

new text begin $ new text end

new text begin 416,000 new text end

new text begin $ new text end

new text begin 200,000 new text end

new text begin Subd. 2. new text end new text begin Board of Nursing Home Administrators new text end

new text begin State Government Special Revenue new text end

new text begin 100,000 new text end

new text begin 200,000 new text end

new text begin Administrative Services Unit. new text end new text begin The amounts
appropriated are for the administrative
services unit to pay for costs of contested
case hearings and other unanticipated costs
of legal proceedings involving health-related
boards funded under Laws 2007, chapter
147, article 19, section 6. Upon certification
of a health-related board to the administrative
services unit that such costs will be
incurred and that there are insufficient
funds available to pay for such costs out of
funds currently available to that board, the
administrative services unit is authorized
to transfer funds from this appropriation
to the board for payment of those costs
with the approval of the commissioner of
finance. This appropriation shall not cancel.
Any unencumbered and unspent balances
remain available for these expenditures in
subsequent fiscal years.
new text end

new text begin Subd. 3. new text end new text begin Board of Chiropractic Examiners new text end

new text begin State Government Special Revenue new text end

new text begin 150,000 new text end

new text begin 0 new text end

new text begin Subd. 4. new text end new text begin Board of Dentistry new text end

new text begin State Government Special Revenue new text end

new text begin 100,000 new text end

new text begin 0 new text end

new text begin Subd. 5. new text end new text begin Board of Veterinary Medicine new text end

new text begin State Government Special Revenue new text end

new text begin 54,000 new text end

new text begin 0 new text end

new text begin Subd. 6. new text end new text begin Board of Marriage and Family Therapy new text end

new text begin State Government Special Revenue new text end

new text begin 12,000 new text end

new text begin 0 new text end

Sec. 6.

Minnesota Statutes 2007 Supplement, section 16A.724, subdivision 2, is
amended to read:

Subd. 2.

Transfers.

(a) Notwithstanding section 295.581, to the extent available
resources in the health care access fund exceed expenditures in that fund, effective for the
biennium beginning July 1, 2007, the commissioner of finance shall transfer the excess
funds from the health care access fund to the general fund on June 30 of each year,
provided that the amount transferred in any fiscal biennium shall not exceed $96,000,000.
The purpose of this transfer is to meet the rate increase required under Laws 2003, First
Special Session chapter 14, article 13C, section 2, subdivision 6.

(b) For fiscal years 2006 to 2011, MinnesotaCare shall be a forecasted program, and,
if necessary, the commissioner shall reduce these transfers from the health care access
fund to the general fund to meet annual MinnesotaCare expenditures or, if necessary,
transfer sufficient funds from the general fund to the health care access fund to meet
annual MinnesotaCare expenditures.

new text begin (c) The commissioner of finance shall transfer $250,000,000 from the health care
access fund to the general fund on June 30, 2009. This is in addition to the transfer in
paragraph (a).
new text end