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HF 6

1st Engrossment - 83rd Legislature, 2003 1st Special Session (2003 - 2003) Posted on 12/15/2009 12:00am

KEY: stricken = removed, old language.
underscored = added, new language.
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Current Version - 1st Engrossment

  1.1                          A bill for an act 
  1.2             relating to state government; making changes to public 
  1.3             assistance programs, long-term care, continuing care 
  1.4             for persons with disabilities, children's services, 
  1.5             occupational licenses, human services licensing, 
  1.6             county initiatives, local public health grants, child 
  1.7             care provisions, child support provisions, and health 
  1.8             care; establishing the Community Services Act; 
  1.9             establishing alternative care liens; modifying 
  1.10            petroleum product specifications; conveying land in 
  1.11            Cass county; making forecast adjustments; 
  1.12            appropriating money; amending Minnesota Statutes 2002, 
  1.13            sections 13.69, subdivision 1; 41A.09, subdivision 2a; 
  1.14            61A.072, subdivision 6; 62A.31, subdivisions 1f, 1u, 
  1.15            by adding a subdivision; 62A.315; 62A.316; 62A.48, by 
  1.16            adding a subdivision; 62A.49, by adding a subdivision; 
  1.17            62A.65, subdivision 7; 62D.095, subdivision 2, by 
  1.18            adding a subdivision; 62E.06, subdivision 1; 62J.17, 
  1.19            subdivision 2; 62J.23, by adding a subdivision; 
  1.20            62J.52, subdivisions 1, 2; 62J.692, subdivisions 3, 4, 
  1.21            5, 7, 8; 62J.694, by adding a subdivision; 62L.05, 
  1.22            subdivision 4; 62Q.19, subdivisions 1, 2; 62S.22, 
  1.23            subdivision 1; 69.021, subdivision 11; 119B.011, 
  1.24            subdivisions 5, 6, 15, 19, 20, 21, by adding a 
  1.25            subdivision; 119B.02, subdivision 1; 119B.03, 
  1.26            subdivisions 4, 9; 119B.05, subdivision 1; 119B.08, 
  1.27            subdivision 3; 119B.09, subdivisions 1, 2, 7, by 
  1.28            adding subdivisions; 119B.11, subdivision 2a; 119B.12, 
  1.29            subdivision 2; 119B.13, subdivisions 1, 6, by adding a 
  1.30            subdivision; 119B.16, subdivision 2, by adding 
  1.31            subdivisions; 119B.19, subdivision 7; 119B.21, 
  1.32            subdivision 11; 119B.23, subdivision 3; 124D.23, 
  1.33            subdivision 1; 144.1222, by adding a subdivision; 
  1.34            144.125; 144.128; 144.1481, subdivision 1; 144.1483; 
  1.35            144.1488, subdivision 4; 144.1491, subdivision 1; 
  1.36            144.1502, subdivision 4; 144.396, subdivisions 1, 5, 
  1.37            7, 10, 11, 12; 144.414, subdivision 3; 144.551, 
  1.38            subdivision 1; 144A.04, subdivision 3, by adding a 
  1.39            subdivision; 144A.071, subdivision 4c, as added; 
  1.40            144A.10, by adding a subdivision; 144A.4605, 
  1.41            subdivision 4; 144E.11, subdivision 6; 144E.50, 
  1.42            subdivision 5; 145.88; 145.881, subdivisions 1, 2; 
  1.43            145.882, subdivisions 1, 2, 3, 7, by adding a 
  1.44            subdivision; 145.883, subdivisions 1, 9; 145A.02, 
  1.45            subdivisions 5, 6, 7; 145A.06, subdivision 1; 145A.09, 
  1.46            subdivisions 2, 4, 7; 145A.10, subdivisions 2, 10, by 
  2.1             adding a subdivision; 145A.11, subdivisions 2, 4; 
  2.2             145A.12, subdivisions 1, 2, by adding a subdivision; 
  2.3             145A.13, by adding a subdivision; 145A.14, subdivision 
  2.4             2, by adding a subdivision; 147A.08; 148.5194, 
  2.5             subdivisions 1, 2, 3, by adding a subdivision; 
  2.6             148.6445, subdivision 7; 148C.01, subdivisions 2, 12, 
  2.7             by adding subdivisions; 148C.03, subdivision 1; 
  2.8             148C.0351, subdivision 1, by adding a subdivision; 
  2.9             148C.04; 148C.05, subdivision 1, by adding 
  2.10            subdivisions; 148C.07; 148C.10, subdivisions 1, 2; 
  2.11            148C.11; 153A.17; 171.06, subdivision 3; 171.07, by 
  2.12            adding a subdivision; 174.30, subdivision 1; 239.761, 
  2.13            subdivisions 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13; 
  2.14            239.792; 245.0312; 245.4874; 245.493, subdivision 1a; 
  2.15            245A.035, subdivision 3; 245A.04, subdivisions 3, 3b, 
  2.16            3d; 245A.09, subdivision 7; 245A.10; 245A.11, 
  2.17            subdivisions 2a, 2b, by adding a subdivision; 245B.03, 
  2.18            subdivision 2, by adding a subdivision; 245B.04, 
  2.19            subdivision 2; 245B.06, subdivisions 2, 5, 8; 245B.07, 
  2.20            subdivisions 6, 9, 11; 245B.08, subdivision 1; 
  2.21            246.014; 246.015, subdivision 3; 246.018, subdivisions 
  2.22            2, 3, 4; 246.13; 246.15; 246.16; 246.54; 246.57, 
  2.23            subdivisions 1, 4, 6; 246.71, subdivisions 4, 5; 
  2.24            246B.02; 246B.03; 246B.04; 252.025, subdivision 7; 
  2.25            252.06; 252.27, subdivision 2a; 252.32, subdivisions 
  2.26            1, 1a, 3, 3c; 252.41, subdivision 3; 252.46, 
  2.27            subdivision 1; 253.015, subdivision 1; 253.017; 
  2.28            253.20; 253.26; 253B.02, subdivision 18a; 253B.04, 
  2.29            subdivision 1; 253B.05, subdivision 3; 253B.09, 
  2.30            subdivision 1; 256.01, subdivision 2; 256.012; 
  2.31            256.046, subdivision 1; 256.0471, subdivision 1; 
  2.32            256.476, subdivisions 1, 3, 4, 5, 11; 256.482, 
  2.33            subdivision 8; 256.955, subdivisions 2a, 3, by adding 
  2.34            a subdivision; 256.9657, subdivisions 1, 4, by adding 
  2.35            a subdivision; 256.969, subdivisions 2b, 3a, by adding 
  2.36            a subdivision; 256.975, by adding a subdivision; 
  2.37            256.98, subdivisions 3, 4, 8; 256.984, subdivision 1; 
  2.38            256B.055, by adding a subdivision; 256B.056, 
  2.39            subdivisions 1a, 1c, 3c, 6; 256B.057, subdivisions 1, 
  2.40            2, 3b, 9, 10; 256B.0595, subdivisions 1, 2, by adding 
  2.41            subdivisions; 256B.06, subdivision 4; 256B.061; 
  2.42            256B.0621, subdivisions 4, 7; 256B.0623, subdivisions 
  2.43            2, 4, 5, 6, 8; 256B.0625, subdivisions 5a, 9, 13, 17, 
  2.44            19c, 23, by adding subdivisions; 256B.0627, 
  2.45            subdivisions 1, 4, 9; 256B.0635, subdivisions 1, 2; 
  2.46            256B.064, subdivision 2; 256B.0911, subdivision 4d; 
  2.47            256B.0913, subdivisions 2, 4, 5, 6, 7, 8, 10, 12; 
  2.48            256B.0915, subdivision 3, by adding a subdivision; 
  2.49            256B.092, subdivisions 1a, 5, by adding a subdivision; 
  2.50            256B.0945, subdivisions 2, 4; 256B.095; 256B.0951, 
  2.51            subdivisions 1, 2, 3, 5, 7, 9; 256B.0952, subdivision 
  2.52            1; 256B.0953, subdivision 2; 256B.0955; 256B.15, 
  2.53            subdivisions 1, 1a, 2, 3, 4, by adding subdivisions; 
  2.54            256B.19, subdivision 1; 256B.195, subdivisions 3, 5; 
  2.55            256B.32, subdivision 1; 256B.431, subdivisions 2r, 32, 
  2.56            36, by adding subdivisions; 256B.434, subdivisions 4, 
  2.57            10; 256B.47, subdivision 2; 256B.49, subdivision 15; 
  2.58            256B.501, subdivision 1, by adding a subdivision; 
  2.59            256B.5012, by adding a subdivision; 256B.5013, by 
  2.60            adding a subdivision; 256B.5015; 256B.69, subdivisions 
  2.61            2, 4, 5, 5a, 5c, 6a, 6b, 8, by adding subdivisions; 
  2.62            256B.75; 256B.76; 256B.761; 256B.82; 256D.03, 
  2.63            subdivisions 3, 3a, 4; 256D.06, subdivision 2; 
  2.64            256D.44, subdivision 5; 256D.46, subdivisions 1, 3; 
  2.65            256D.48, subdivision 1; 256G.05, subdivision 2; 
  2.66            256I.02; 256I.04, subdivision 3; 256I.05, subdivisions 
  2.67            1, 1a, 7c; 256J.01, subdivision 5; 256J.02, 
  2.68            subdivision 2; 256J.021; 256J.08, subdivisions 35, 65, 
  2.69            82, 85, by adding subdivisions; 256J.09, subdivisions 
  2.70            2, 3, 3a, 3b, 8, 10; 256J.14; 256J.20, subdivision 3; 
  2.71            256J.21, subdivisions 1, 2; 256J.24, subdivisions 3, 
  3.1             5, 6, 7, 10; 256J.30, subdivision 9; 256J.32, 
  3.2             subdivisions 2, 4, 5a, by adding a subdivision; 
  3.3             256J.37, subdivision 9, by adding subdivisions; 
  3.4             256J.38, subdivisions 3, 4; 256J.40; 256J.42, 
  3.5             subdivisions 4, 5, 6; 256J.425, subdivisions 1, 1a, 2, 
  3.6             3, 4, 6, 7; 256J.45, subdivision 2; 256J.46, 
  3.7             subdivisions 1, 2, 2a; 256J.49, subdivisions 4, 5, 9, 
  3.8             13, by adding subdivisions; 256J.50, subdivisions 1, 
  3.9             9, 10; 256J.51, subdivisions 1, 2, 3, 4; 256J.53, 
  3.10            subdivisions 1, 2, 5; 256J.54, subdivisions 1, 2, 3, 
  3.11            5; 256J.55, subdivisions 1, 2; 256J.56; 256J.57; 
  3.12            256J.62, subdivision 9; 256J.645, subdivision 3; 
  3.13            256J.66, subdivision 2; 256J.69, subdivision 2; 
  3.14            256J.75, subdivision 3; 256J.751, subdivisions 1, 2, 
  3.15            5; 256L.03, subdivision 1; 256L.04, subdivisions 1, 
  3.16            10; 256L.05, subdivisions 3a, 4; 256L.06, subdivision 
  3.17            3; 256L.07, subdivisions 1, 3; 256L.12, subdivisions 
  3.18            6, 9, by adding a subdivision; 256L.15, subdivisions 
  3.19            1, 2, 3; 256L.17, subdivision 2; 257.05; 257.0769; 
  3.20            259.21, subdivision 6; 259.67, subdivisions 4, 7; 
  3.21            260B.157, subdivision 1; 260B.176, subdivision 2; 
  3.22            260B.178, subdivision 1; 260B.193, subdivision 2; 
  3.23            260B.235, subdivision 6; 260C.141, subdivision 2; 
  3.24            261.063; 295.53, subdivision 1; 295.55, subdivision 2; 
  3.25            296A.01, subdivisions 2, 7, 8, 14, 19, 20, 22, 23, 24, 
  3.26            25, 26, 28, by adding a subdivision; 297I.15, 
  3.27            subdivisions 1, 4; 326.42; 393.07, subdivisions 1, 5, 
  3.28            10; 471.59, subdivision 1; 514.981, subdivision 6; 
  3.29            518.167, subdivision 1; 518.551, subdivisions 7, 12, 
  3.30            13; 518.6111, subdivisions 2, 3, 4, 16; 524.3-805; 
  3.31            626.559, subdivision 5; 641.15, subdivision 2; Laws 
  3.32            1997, chapter 203, article 9, section 21, as amended; 
  3.33            Laws 1997, chapter 245, article 2, section 11; 2003 
  3.34            S.F. No. 1019, sections 2, 3, 7, if enacted; proposing 
  3.35            coding for new law in Minnesota Statutes, chapters 
  3.36            62J; 62Q; 62S; 97A; 119B; 144; 144A; 145; 145A; 148C; 
  3.37            245; 246; 256; 256B; 256I; 256J; 256L; 514; proposing 
  3.38            coding for new law as Minnesota Statutes, chapter 
  3.39            256M; repealing Minnesota Statutes 2002, sections 
  3.40            62J.15; 62J.152; 62J.451; 62J.452; 62J.66; 62J.68; 
  3.41            119B.061; 119B.13, subdivision 2; 144.126; 144.1484; 
  3.42            144.1494; 144.1495; 144.1496; 144.1497; 144.401; 
  3.43            144A.071, subdivision 5; 144A.35; 144A.36; 144A.38; 
  3.44            145.882, subdivisions 4, 5, 6, 8; 145.883, 
  3.45            subdivisions 4, 7; 145.884; 145.885; 145.886; 145.888; 
  3.46            145.889; 145.890; 145A.02, subdivisions 9, 10, 11, 12, 
  3.47            13, 14; 145A.09, subdivision 6; 145A.10, subdivisions 
  3.48            5, 6, 8; 145A.11, subdivision 3; 145A.12, subdivisions 
  3.49            3, 4, 5; 145A.14, subdivisions 3, 4; 145A.17, 
  3.50            subdivision 2; 148.5194, subdivision 3a; 148.6445, 
  3.51            subdivision 9; 148C.0351, subdivision 2; 148C.05, 
  3.52            subdivisions 2, 3, 4; 148C.06; 148C.10, subdivision 
  3.53            1a; 245.478; 245.4886; 245.4888; 245.496; 246.017, 
  3.54            subdivision 2; 246.022; 246.06; 246.07; 246.08; 
  3.55            246.11; 246.19; 246.42; 252.025, subdivisions 1, 2, 4, 
  3.56            5, 6; 252.032; 252.10; 252.32, subdivision 2; 253.015, 
  3.57            subdivisions 2, 3; 253.10; 253.19; 253.201; 253.202; 
  3.58            253.25; 253.27; 254A.17; 256.05; 256.06; 256.08; 
  3.59            256.09; 256.10; 256.955, subdivision 8; 256.973; 
  3.60            256.9772; 256B.055, subdivision 10a; 256B.057, 
  3.61            subdivision 1b; 256B.0625, subdivisions 35, 36; 
  3.62            256B.0945, subdivision 10; 256B.437, subdivision 2; 
  3.63            256B.5013, subdivision 4; 256E.01; 256E.02; 256E.03; 
  3.64            256E.04; 256E.05; 256E.06; 256E.07; 256E.08; 256E.081; 
  3.65            256E.09; 256E.10; 256E.11; 256E.115; 256E.13; 256E.14; 
  3.66            256E.15; 256F.01; 256F.02; 256F.03; 256F.04; 256F.05; 
  3.67            256F.06; 256F.07; 256F.08; 256F.11; 256F.12; 256F.14; 
  3.68            256J.02, subdivision 3; 256J.08, subdivisions 28, 70; 
  3.69            256J.24, subdivision 8; 256J.30, subdivision 10; 
  3.70            256J.462; 256J.47; 256J.48; 256J.49, subdivisions 1a, 
  3.71            2, 6, 7; 256J.50, subdivisions 2, 3, 3a, 5, 7; 
  4.1             256J.52; 256J.55, subdivision 5; 256J.62, subdivisions 
  4.2             1, 2a, 4, 6, 7, 8; 256J.625; 256J.655; 256J.74, 
  4.3             subdivision 3; 256J.751, subdivisions 3, 4; 256J.76; 
  4.4             256K.30; 257.075; 257.81; 260.152; 268A.08; 626.562; 
  4.5             Laws 1998, chapter 407, article 4, section 63; Laws 
  4.6             2000, chapter 488, article 10, section 29; Laws 2000, 
  4.7             chapter 489, article 1, section 36; Laws 2001, First 
  4.8             Special Session chapter 3, article 1, section 16; Laws 
  4.9             2001, First Special Session chapter 9, article 13, 
  4.10            section 24; Laws 2002, chapter 374, article 9, section 
  4.11            8; Laws 2003, chapter 55, sections 1, 4; Minnesota 
  4.12            Rules, parts 4705.0100; 4705.0200; 4705.0300; 
  4.13            4705.0400; 4705.0500; 4705.0600; 4705.0700; 4705.0800; 
  4.14            4705.0900; 4705.1000; 4705.1100; 4705.1200; 4705.1300; 
  4.15            4705.1400; 4705.1500; 4705.1600; 4736.0010; 4736.0020; 
  4.16            4736.0030; 4736.0040; 4736.0050; 4736.0060; 4736.0070; 
  4.17            4736.0080; 4736.0090; 4736.0120; 4736.0130; 4747.0030, 
  4.18            subparts 25, 28, 30; 4747.0040, subpart 3, item A; 
  4.19            4747.0060, subpart 1, items A, B, D; 4747.0070, 
  4.20            subparts 4, 5; 4747.0080; 4747.0090; 4747.0100; 
  4.21            4747.0300; 4747.0400, subparts 2, 3; 4747.0500; 
  4.22            4747.0600; 4747.1000; 4747.1100, subpart 3; 4747.1600; 
  4.23            4763.0100; 4763.0110; 4763.0125; 4763.0135; 4763.0140; 
  4.24            4763.0150; 4763.0160; 4763.0170; 4763.0180; 4763.0190; 
  4.25            4763.0205; 4763.0215; 4763.0220; 4763.0230; 4763.0240; 
  4.26            4763.0250; 4763.0260; 4763.0270; 4763.0285; 4763.0295; 
  4.27            4763.0300; 9505.0324; 9505.0326; 9505.0327; 9505.3045; 
  4.28            9505.3050; 9505.3055; 9505.3060; 9505.3068; 9505.3070; 
  4.29            9505.3075; 9505.3080; 9505.3090; 9505.3095; 9505.3100; 
  4.30            9505.3105; 9505.3107; 9505.3110; 9505.3115; 9505.3120; 
  4.31            9505.3125; 9505.3130; 9505.3138; 9505.3139; 9505.3140; 
  4.32            9505.3680; 9505.3690; 9505.3700; 9545.2000; 9545.2010; 
  4.33            9545.2020; 9545.2030; 9545.2040; 9550.0010; 9550.0020; 
  4.34            9550.0030; 9550.0040; 9550.0050; 9550.0060; 9550.0070; 
  4.35            9550.0080; 9550.0090; 9550.0091; 9550.0092; 9550.0093. 
  4.36  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  4.37                             ARTICLE 1 
  4.38                           WELFARE REFORM 
  4.39     Section 1.  Minnesota Statutes 2002, section 119B.03, 
  4.40  subdivision 4, is amended to read: 
  4.41     Subd. 4.  [FUNDING PRIORITY.] (a) First priority for child 
  4.42  care assistance under the basic sliding fee program must be 
  4.43  given to eligible non-MFIP families who do not have a high 
  4.44  school or general equivalency diploma or who need remedial and 
  4.45  basic skill courses in order to pursue employment or to pursue 
  4.46  education leading to employment and who need child care 
  4.47  assistance to participate in the education program.  Within this 
  4.48  priority, the following subpriorities must be used: 
  4.49     (1) child care needs of minor parents; 
  4.50     (2) child care needs of parents under 21 years of age; and 
  4.51     (3) child care needs of other parents within the priority 
  4.52  group described in this paragraph. 
  4.53     (b) Second priority must be given to parents who have 
  5.1   completed their MFIP or work first transition year, or parents 
  5.2   who are no longer receiving or eligible for diversionary work 
  5.3   program supports.  
  5.4      (c) Third priority must be given to families who are 
  5.5   eligible for portable basic sliding fee assistance through the 
  5.6   portability pool under subdivision 9. 
  5.7      Sec. 2.  Minnesota Statutes 2002, section 256.984, 
  5.8   subdivision 1, is amended to read: 
  5.9      Subdivision 1.  [DECLARATION.] Every application for public 
  5.10  assistance under this chapter and/or or chapters 256B, 256D, 
  5.11  256K, MFIP program 256J, and food stamps or food support under 
  5.12  chapter 393 shall be in writing or reduced to writing as 
  5.13  prescribed by the state agency and shall contain the following 
  5.14  declaration which shall be signed by the applicant: 
  5.15     "I declare under the penalties of perjury that this 
  5.16     application has been examined by me and to the best of my 
  5.17     knowledge is a true and correct statement of every material 
  5.18     point.  I understand that a person convicted of perjury may 
  5.19     be sentenced to imprisonment of not more than five years or 
  5.20     to payment of a fine of not more than $10,000, or both." 
  5.21     Sec. 3.  Minnesota Statutes 2002, section 256D.06, 
  5.22  subdivision 2, is amended to read: 
  5.23     Subd. 2.  [EMERGENCY NEED.] Notwithstanding the provisions 
  5.24  of subdivision 1, a grant of emergency general assistance shall, 
  5.25  to the extent funds are available, be made to an eligible single 
  5.26  adult, married couple, or family for an emergency need, as 
  5.27  defined in rules promulgated by the commissioner, where the 
  5.28  recipient requests temporary assistance not exceeding 30 days if 
  5.29  an emergency situation appears to exist and (a) until March 31, 
  5.30  1998, the individual is ineligible for the program of emergency 
  5.31  assistance under aid to families with dependent children and is 
  5.32  not a recipient of aid to families with dependent children at 
  5.33  the time of application; or (b) the individual or family is (i) 
  5.34  ineligible for MFIP or DWP or is not a participant of MFIP; and 
  5.35  (ii) is ineligible for emergency assistance under section 
  5.36  256J.48 or DWP.  If an applicant or recipient relates facts to 
  6.1   the county agency which may be sufficient to constitute an 
  6.2   emergency situation, the county agency shall, to the extent 
  6.3   funds are available, advise the person of the procedure for 
  6.4   applying for assistance according to this subdivision.  An 
  6.5   emergency general assistance grant is available to a recipient 
  6.6   not more than once in any 12-month period.  Funding for an 
  6.7   emergency general assistance program is limited to the 
  6.8   appropriation.  Each fiscal year, the commissioner shall 
  6.9   allocate to counties the money appropriated for emergency 
  6.10  general assistance grants based on each county agency's average 
  6.11  share of state's emergency general expenditures for the 
  6.12  immediate past three fiscal years as determined by the 
  6.13  commissioner, and may reallocate any unspent amounts to other 
  6.14  counties.  Any emergency general assistance expenditures by a 
  6.15  county above the amount of the commissioner's allocation to the 
  6.16  county must be made from county funds. 
  6.17     Sec. 4.  Minnesota Statutes 2002, section 256D.44, 
  6.18  subdivision 5, is amended to read: 
  6.19     Subd. 5.  [SPECIAL NEEDS.] In addition to the state 
  6.20  standards of assistance established in subdivisions 1 to 4, 
  6.21  payments are allowed for the following special needs of 
  6.22  recipients of Minnesota supplemental aid who are not residents 
  6.23  of a nursing home, a regional treatment center, or a group 
  6.24  residential housing facility. 
  6.25     (a) The county agency shall pay a monthly allowance for 
  6.26  medically prescribed diets payable under the Minnesota family 
  6.27  investment program if the cost of those additional dietary needs 
  6.28  cannot be met through some other maintenance benefit.  The need 
  6.29  for special diets or dietary items must be prescribed by a 
  6.30  licensed physician.  Costs for special diets shall be determined 
  6.31  as percentages of the allotment for a one-person household under 
  6.32  the thrifty food plan as defined by the United States Department 
  6.33  of Agriculture.  The types of diets and the percentages of the 
  6.34  thrifty food plan that are covered are as follows: 
  6.35     (1) high protein diet, at least 80 grams daily, 25 percent 
  6.36  of thrifty food plan; 
  7.1      (2) controlled protein diet, 40 to 60 grams and requires 
  7.2   special products, 100 percent of thrifty food plan; 
  7.3      (3) controlled protein diet, less than 40 grams and 
  7.4   requires special products, 125 percent of thrifty food plan; 
  7.5      (4) low cholesterol diet, 25 percent of thrifty food plan; 
  7.6      (5) high residue diet, 20 percent of thrifty food plan; 
  7.7      (6) pregnancy and lactation diet, 35 percent of thrifty 
  7.8   food plan; 
  7.9      (7) gluten-free diet, 25 percent of thrifty food plan; 
  7.10     (8) lactose-free diet, 25 percent of thrifty food plan; 
  7.11     (9) antidumping diet, 15 percent of thrifty food plan; 
  7.12     (10) hypoglycemic diet, 15 percent of thrifty food plan; or 
  7.13     (11) ketogenic diet, 25 percent of thrifty food plan. 
  7.14     (b) Payment for nonrecurring special needs must be allowed 
  7.15  for necessary home repairs or necessary repairs or replacement 
  7.16  of household furniture and appliances using the payment standard 
  7.17  of the AFDC program in effect on July 16, 1996, for these 
  7.18  expenses, as long as other funding sources are not available.  
  7.19     (c) A fee for guardian or conservator service is allowed at 
  7.20  a reasonable rate negotiated by the county or approved by the 
  7.21  court.  This rate shall not exceed five percent of the 
  7.22  assistance unit's gross monthly income up to a maximum of $100 
  7.23  per month.  If the guardian or conservator is a member of the 
  7.24  county agency staff, no fee is allowed. 
  7.25     (d) The county agency shall continue to pay a monthly 
  7.26  allowance of $68 for restaurant meals for a person who was 
  7.27  receiving a restaurant meal allowance on June 1, 1990, and who 
  7.28  eats two or more meals in a restaurant daily.  The allowance 
  7.29  must continue until the person has not received Minnesota 
  7.30  supplemental aid for one full calendar month or until the 
  7.31  person's living arrangement changes and the person no longer 
  7.32  meets the criteria for the restaurant meal allowance, whichever 
  7.33  occurs first. 
  7.34     (e) A fee of ten percent of the recipient's gross income or 
  7.35  $25, whichever is less, is allowed for representative payee 
  7.36  services provided by an agency that meets the requirements under 
  8.1   SSI regulations to charge a fee for representative payee 
  8.2   services.  This special need is available to all recipients of 
  8.3   Minnesota supplemental aid regardless of their living 
  8.4   arrangement.  
  8.5      (f) Notwithstanding the language in this subdivision, an 
  8.6   amount equal to the maximum allotment authorized by the federal 
  8.7   Food Stamp Program for a single individual which is in effect on 
  8.8   the first day of January of the previous year will be added to 
  8.9   the standards of assistance established in subdivisions 1 to 4 
  8.10  for individuals under the age of 65 who are relocating from an 
  8.11  institution and who are shelter needy.  An eligible individual 
  8.12  who receives this benefit prior to age 65 may continue to 
  8.13  receive the benefit after the age of 65. 
  8.14     "Shelter needy" means that the assistance unit incurs 
  8.15  monthly shelter costs that exceed 40 percent of the assistance 
  8.16  unit's gross income before the application of this special needs 
  8.17  standard.  "Gross income" for the purposes of this section is 
  8.18  the applicant's or recipient's income as defined in section 
  8.19  256D.35, subdivision 10, or the standard specified in 
  8.20  subdivision 3, whichever is greater.  A recipient of a federal 
  8.21  or state housing subsidy, that limits shelter costs to a 
  8.22  percentage of gross income, shall not be considered shelter 
  8.23  needy for purposes of this paragraph. 
  8.24     Sec. 5.  Minnesota Statutes 2002, section 256D.46, 
  8.25  subdivision 1, is amended to read: 
  8.26     Subdivision 1.  [ELIGIBILITY.] A county agency must grant 
  8.27  emergency Minnesota supplemental aid must be granted, to the 
  8.28  extent funds are available, if the recipient is without adequate 
  8.29  resources to resolve an emergency that, if unresolved, will 
  8.30  threaten the health or safety of the recipient.  For the 
  8.31  purposes of this section, the term "recipient" includes persons 
  8.32  for whom a group residential housing benefit is being paid under 
  8.33  sections 256I.01 to 256I.06. 
  8.34     Sec. 6.  Minnesota Statutes 2002, section 256D.46, 
  8.35  subdivision 3, is amended to read: 
  8.36     Subd. 3.  [PAYMENT AMOUNT.] The amount of assistance 
  9.1   granted under emergency Minnesota supplemental aid is limited to 
  9.2   the amount necessary to resolve the emergency.  An emergency 
  9.3   Minnesota supplemental aid grant is available to a recipient no 
  9.4   more than once in any 12-month period.  Funding for emergency 
  9.5   Minnesota supplemental aid is limited to the appropriation.  
  9.6   Each fiscal year, the commissioner shall allocate to counties 
  9.7   the money appropriated for emergency Minnesota supplemental aid 
  9.8   grants based on each county agency's average share of state's 
  9.9   emergency Minnesota supplemental aid expenditures for the 
  9.10  immediate past three fiscal years as determined by the 
  9.11  commissioner, and may reallocate any unspent amounts to other 
  9.12  counties.  Any emergency Minnesota supplemental aid expenditures 
  9.13  by a county above the amount of the commissioner's allocation to 
  9.14  the county must be made from county funds. 
  9.15     Sec. 7.  Minnesota Statutes 2002, section 256D.48, 
  9.16  subdivision 1, is amended to read: 
  9.17     Subdivision 1.  [NEED FOR PROTECTIVE PAYEE.] The county 
  9.18  agency shall determine whether a recipient needs a protective 
  9.19  payee when a physical or mental condition renders the recipient 
  9.20  unable to manage funds and when payments to the recipient would 
  9.21  be contrary to the recipient's welfare.  Protective payments 
  9.22  must be issued when there is evidence of:  (1) repeated 
  9.23  inability to plan the use of income to meet necessary 
  9.24  expenditures; (2) repeated observation that the recipient is not 
  9.25  properly fed or clothed; (3) repeated failure to meet 
  9.26  obligations for rent, utilities, food, and other essentials; (4) 
  9.27  evictions or a repeated incurrence of debts; or (5) lost or 
  9.28  stolen checks; or (6) use of emergency Minnesota supplemental 
  9.29  aid more than twice in a calendar year.  The determination of 
  9.30  representative payment by the Social Security Administration for 
  9.31  the recipient is sufficient reason for protective payment of 
  9.32  Minnesota supplemental aid payments.  
  9.33     Sec. 8.  Minnesota Statutes 2002, section 256J.01, 
  9.34  subdivision 5, is amended to read: 
  9.35     Subd. 5.  [COMPLIANCE SYSTEM.] The commissioner shall 
  9.36  administer a compliance system for the state's temporary 
 10.1   assistance for needy families (TANF) program, the food stamp 
 10.2   program, emergency assistance, general assistance, medical 
 10.3   assistance, general assistance medical care, emergency general 
 10.4   assistance, Minnesota supplemental aid, preadmission screening, 
 10.5   child support program, and alternative care grants under the 
 10.6   powers and authorities named in section 256.01, subdivision 2.  
 10.7   The purpose of the compliance system is to permit the 
 10.8   commissioner to supervise the administration of public 
 10.9   assistance programs and to enforce timely and accurate 
 10.10  distribution of benefits, completeness of service and efficient 
 10.11  and effective program management and operations, to increase 
 10.12  uniformity and consistency in the administration and delivery of 
 10.13  public assistance programs throughout the state, and to reduce 
 10.14  the possibility of sanction and fiscal disallowances for 
 10.15  noncompliance with federal regulations and state statutes. 
 10.16     Sec. 9.  Minnesota Statutes 2002, section 256J.02, 
 10.17  subdivision 2, is amended to read: 
 10.18     Subd. 2.  [USE OF MONEY.] State money appropriated for 
 10.19  purposes of this section and TANF block grant money must be used 
 10.20  for: 
 10.21     (1) financial assistance to or on behalf of any minor child 
 10.22  who is a resident of this state under section 256J.12; 
 10.23     (2) employment and training services under this chapter or 
 10.24  chapter 256K; 
 10.25     (3) emergency financial assistance and services under 
 10.26  section 256J.48; 
 10.27     (4) diversionary assistance under section 256J.47; 
 10.28     (5) the health care and human services training and 
 10.29  retention program under chapter 116L, for costs associated with 
 10.30  families with children with incomes below 200 percent of the 
 10.31  federal poverty guidelines; 
 10.32     (6) (3) the pathways program under section 116L.04, 
 10.33  subdivision 1a; 
 10.34     (7) welfare-to-work extended employment services for MFIP 
 10.35  participants with severe impairment to employment as defined in 
 10.36  section 268A.15, subdivision 1a; 
 11.1      (8) the family homeless prevention and assistance program 
 11.2   under section 462A.204; 
 11.3      (9) the rent assistance for family stabilization 
 11.4   demonstration project under section 462A.205; 
 11.5      (10) (4) welfare to work transportation authorized under 
 11.6   Public Law Number 105-178; 
 11.7      (11) (5) reimbursements for the federal share of child 
 11.8   support collections passed through to the custodial parent; 
 11.9      (12) (6) reimbursements for the working family credit under 
 11.10  section 290.0671; 
 11.11     (13) intensive ESL grants under Laws 2000, chapter 489, 
 11.12  article 1; 
 11.13     (14) transitional housing programs under section 119A.43; 
 11.14     (15) programs and pilot projects under chapter 256K; and 
 11.15     (16) (7) program administration under this chapter; 
 11.16     (8) the diversionary work program under section 256J.95; 
 11.17     (9) the MFIP consolidated fund under section 256J.626; and 
 11.18     (10) the Minnesota department of health consolidated fund 
 11.19  under Laws 2001, First Special Session chapter 9, article 17, 
 11.20  section 3, subdivision 2. 
 11.21     Sec. 10.  Minnesota Statutes 2002, section 256J.021, is 
 11.22  amended to read: 
 11.23     256J.021 [SEPARATE STATE PROGRAM FOR USE OF STATE MONEY.] 
 11.24     Beginning October 1, 2001, and each year thereafter, the 
 11.25  commissioner of human services must treat financial assistance 
 11.26  MFIP expenditures made to or on behalf of any minor child under 
 11.27  section 256J.02, subdivision 2, clause (1), who is a resident of 
 11.28  this state under section 256J.12, and who is part of a 
 11.29  two-parent eligible household as expenditures under a separately 
 11.30  funded state program and report those expenditures to the 
 11.31  federal Department of Health and Human Services as separate 
 11.32  state program expenditures under Code of Federal Regulations, 
 11.33  title 45, section 263.5. 
 11.34     Sec. 11.  Minnesota Statutes 2002, section 256J.08, is 
 11.35  amended by adding a subdivision to read: 
 11.36     Subd. 11a.  [CHILD ONLY CASE.] "Child only case" means a 
 12.1   case that would be part of the child only TANF program under 
 12.2   section 256J.88. 
 12.3      Sec. 12.  Minnesota Statutes 2002, section 256J.08, is 
 12.4   amended by adding a subdivision to read: 
 12.5      Subd. 24b.  [DIVERSIONARY WORK PROGRAM OR DWP.] 
 12.6   "Diversionary work program" or "DWP" has the meaning given in 
 12.7   section 256J.95. 
 12.8      Sec. 13.  Minnesota Statutes 2002, section 256J.08, is 
 12.9   amended by adding a subdivision to read: 
 12.10     Subd. 28b.  [EMPLOYABLE.] "Employable" means a person is 
 12.11  capable of performing existing positions in the local labor 
 12.12  market, regardless of the current availability of openings for 
 12.13  those positions. 
 12.14     Sec. 14.  Minnesota Statutes 2002, section 256J.08, is 
 12.15  amended by adding a subdivision to read: 
 12.16     Subd. 34a.  [FAMILY VIOLENCE.] (a) "Family violence" means 
 12.17  the following, if committed against a family or household member 
 12.18  by a family or household member: 
 12.19     (1) physical harm, bodily injury, or assault; 
 12.20     (2) the infliction of fear of imminent physical harm, 
 12.21  bodily injury, or assault; or 
 12.22     (3) terroristic threats, within the meaning of section 
 12.23  609.713, subdivision 1; criminal sexual conduct, within the 
 12.24  meaning of section 609.342, 609.343, 609.344, 609.345, or 
 12.25  609.3451; or interference with an emergency call within the 
 12.26  meaning of section 609.78, subdivision 2. 
 12.27     (b) For the purposes of family violence, "family or 
 12.28  household member" means:  
 12.29     (1) spouses and former spouses; 
 12.30     (2) parents and children; 
 12.31     (3) persons related by blood; 
 12.32     (4) persons who are residing together or who have resided 
 12.33  together in the past; 
 12.34     (5) persons who have a child in common regardless of 
 12.35  whether they have been married or have lived together at any 
 12.36  time; 
 13.1      (6) a man and woman if the woman is pregnant and the man is 
 13.2   alleged to be the father, regardless of whether they have been 
 13.3   married or have lived together at anytime; and 
 13.4      (7) persons involved in a current or past significant 
 13.5   romantic or sexual relationship. 
 13.6      Sec. 15.  Minnesota Statutes, section 256J.08, is amended 
 13.7   by adding a subdivision to read: 
 13.8      Subd. 34b.  [FAMILY VIOLENCE WAIVER.] "Family violence 
 13.9   waiver" means a waiver of the 60-month time limit for victims of 
 13.10  family violence who meet the criteria in section 256J.545 and 
 13.11  are complying with an employment plan in section 256J.521, 
 13.12  subdivision 3. 
 13.13     Sec. 16.  Minnesota Statutes 2002, section 256J.08, 
 13.14  subdivision 35, is amended to read: 
 13.15     Subd. 35.  [FAMILY WAGE LEVEL.] "Family wage level" means 
 13.16  110 percent of the transitional standard as specified in section 
 13.17  256J.24, subdivision 7. 
 13.18     Sec. 17.  Minnesota Statutes 2002, section 256J.08, is 
 13.19  amended by adding a subdivision to read: 
 13.20     Subd. 51b.  [LEARNING DISABLED.] "Learning disabled," for 
 13.21  purposes of an extension to the 60-month time limit under 
 13.22  section 256J.425, subdivision 3, clause (3), means the person 
 13.23  has a disorder in one or more of the psychological processes 
 13.24  involved in perceiving, understanding, or using concepts through 
 13.25  verbal language or nonverbal means.  Learning disabled does not 
 13.26  include learning problems that are primarily the result of 
 13.27  visual, hearing, or motor handicaps, mental retardation, 
 13.28  emotional disturbance, or due to environmental, cultural, or 
 13.29  economic disadvantage. 
 13.30     Sec. 18.  Minnesota Statutes 2002, section 256J.08, 
 13.31  subdivision 65, is amended to read: 
 13.32     Subd. 65.  [PARTICIPANT.] "Participant" means a person who 
 13.33  is currently receiving cash assistance or the food portion 
 13.34  available through MFIP as funded by TANF and the food stamp 
 13.35  program.  A person who fails to withdraw or access 
 13.36  electronically any portion of the person's cash and food 
 14.1   assistance payment by the end of the payment month, who makes a 
 14.2   written request for closure before the first of a payment month 
 14.3   and repays cash and food assistance electronically issued for 
 14.4   that payment month within that payment month, or who returns any 
 14.5   uncashed assistance check and food coupons and withdraws from 
 14.6   the program is not a participant.  A person who withdraws a cash 
 14.7   or food assistance payment by electronic transfer or receives 
 14.8   and cashes an MFIP assistance check or food coupons and is 
 14.9   subsequently determined to be ineligible for assistance for that 
 14.10  period of time is a participant, regardless whether that 
 14.11  assistance is repaid.  The term "participant" includes the 
 14.12  caregiver relative and the minor child whose needs are included 
 14.13  in the assistance payment.  A person in an assistance unit who 
 14.14  does not receive a cash and food assistance payment because the 
 14.15  person case has been suspended from MFIP is a participant.  A 
 14.16  person who receives cash payments under the diversionary work 
 14.17  program under section 256J.95 is a participant. 
 14.18     Sec. 19.  Minnesota Statutes 2002, section 256J.08, is 
 14.19  amended by adding a subdivision to read: 
 14.20     Subd. 65a.  [PARTICIPATION REQUIREMENTS OF 
 14.21  TANF.] "Participation requirements of TANF" means activities and 
 14.22  hourly requirements allowed under title IV-A of the federal 
 14.23  Social Security Act. 
 14.24     Sec. 20.  Minnesota Statutes 2002, section 256J.08, is 
 14.25  amended by adding a subdivision to read: 
 14.26     Subd. 73a.  [QUALIFIED PROFESSIONAL.] (a) For physical 
 14.27  illness, injury, or incapacity, a "qualified professional" means 
 14.28  a licensed physician, a physician's assistant, a nurse 
 14.29  practitioner, or a licensed chiropractor. 
 14.30     (b) For mental retardation and intelligence testing, a 
 14.31  "qualified professional" means an individual qualified by 
 14.32  training and experience to administer the tests necessary to 
 14.33  make determinations, such as tests of intellectual functioning, 
 14.34  assessments of adaptive behavior, adaptive skills, and 
 14.35  developmental functioning.  These professionals include licensed 
 14.36  psychologists, certified school psychologists, or certified 
 15.1   psychometrists working under the supervision of a licensed 
 15.2   psychologist. 
 15.3      (c) For learning disabilities, a "qualified professional" 
 15.4   means a licensed psychologist or school psychologist with 
 15.5   experience determining learning disabilities.  
 15.6      (d) For mental health, a "qualified professional" means a 
 15.7   licensed physician or a qualified mental health professional.  A 
 15.8   "qualified mental health professional" means: 
 15.9      (1) for children, in psychiatric nursing, a registered 
 15.10  nurse who is licensed under sections 148.171 to 148.285, and who 
 15.11  is certified as a clinical specialist in child and adolescent 
 15.12  psychiatric or mental health nursing by a national nurse 
 15.13  certification organization or who has a master's degree in 
 15.14  nursing or one of the behavioral sciences or related fields from 
 15.15  an accredited college or university or its equivalent, with at 
 15.16  least 4,000 hours of post-master's supervised experience in the 
 15.17  delivery of clinical services in the treatment of mental 
 15.18  illness; 
 15.19     (2) for adults, in psychiatric nursing, a registered nurse 
 15.20  who is licensed under sections 148.171 to 148.285, and who is 
 15.21  certified as a clinical specialist in adult psychiatric and 
 15.22  mental health nursing by a national nurse certification 
 15.23  organization or who has a master's degree in nursing or one of 
 15.24  the behavioral sciences or related fields from an accredited 
 15.25  college or university or its equivalent, with at least 4,000 
 15.26  hours of post-master's supervised experience in the delivery of 
 15.27  clinical services in the treatment of mental illness; 
 15.28     (3) in clinical social work, a person licensed as an 
 15.29  independent clinical social worker under section 148B.21, 
 15.30  subdivision 6, or a person with a master's degree in social work 
 15.31  from an accredited college or university, with at least 4,000 
 15.32  hours of post-master's supervised experience in the delivery of 
 15.33  clinical services in the treatment of mental illness; 
 15.34     (4) in psychology, an individual licensed by the board of 
 15.35  psychology under sections 148.88 to 148.98, who has stated to 
 15.36  the board of psychology competencies in the diagnosis and 
 16.1   treatment of mental illness; 
 16.2      (5) in psychiatry, a physician licensed under chapter 147 
 16.3   and certified by the American Board of Psychiatry and Neurology 
 16.4   or eligible for board certification in psychiatry; and 
 16.5      (6) in marriage and family therapy, the mental health 
 16.6   professional must be a marriage and family therapist licensed 
 16.7   under sections 148B.29 to 148B.39, with at least two years of 
 16.8   post-master's supervised experience in the delivery of clinical 
 16.9   services in the treatment of mental illness. 
 16.10     Sec. 21.  Minnesota Statutes 2002, section 256J.08, 
 16.11  subdivision 82, is amended to read: 
 16.12     Subd. 82.  [SANCTION.] "Sanction" means the reduction of a 
 16.13  family's assistance payment by a specified percentage of the 
 16.14  MFIP standard of need because:  a nonexempt participant fails to 
 16.15  comply with the requirements of sections 256J.52 256J.515 to 
 16.16  256J.55 256J.57; a parental caregiver fails without good cause 
 16.17  to cooperate with the child support enforcement requirements; or 
 16.18  a participant fails to comply with the insurance, tort 
 16.19  liability, or other requirements of this chapter. 
 16.20     Sec. 22.  Minnesota Statutes 2002, section 256J.08, is 
 16.21  amended by adding a subdivision to read: 
 16.22     Subd. 84a.  [SSI RECIPIENT.] "SSI recipient" means a person 
 16.23  who receives at least $1 in SSI benefits, or who is not 
 16.24  receiving an SSI benefit due to recoupment or a one month 
 16.25  suspension by the Social Security Administration due to excess 
 16.26  income. 
 16.27     Sec. 23.  Minnesota Statutes 2002, section 256J.08, 
 16.28  subdivision 85, is amended to read: 
 16.29     Subd. 85.  [TRANSITIONAL STANDARD.] "Transitional standard" 
 16.30  means the basic standard for a family with no other income or a 
 16.31  nonworking family without earned income and is a combination of 
 16.32  the cash assistance needs portion and food assistance needs for 
 16.33  a family of that size portion as specified in section 256J.24, 
 16.34  subdivision 5. 
 16.35     Sec. 24.  Minnesota Statutes 2002, section 256J.08, is 
 16.36  amended by adding a subdivision to read: 
 17.1      Subd. 90.  [SEVERE FORMS OF TRAFFICKING IN 
 17.2   PERSONS.] "Severe forms of trafficking in persons" means:  (1) 
 17.3   sex trafficking in which a commercial sex act is induced by 
 17.4   force, fraud, or coercion, or in which the person induced to 
 17.5   perform the act has not attained 18 years of age; or (2) the 
 17.6   recruitment, harboring, transportation, provision, or obtaining 
 17.7   of a person for labor or services through the use of force, 
 17.8   fraud, or coercion for the purposes of subjection to involuntary 
 17.9   servitude, peonage, debt bondage, or slavery. 
 17.10     Sec. 25.  Minnesota Statutes 2002, section 256J.09, 
 17.11  subdivision 2, is amended to read: 
 17.12     Subd. 2.  [COUNTY AGENCY RESPONSIBILITY TO PROVIDE 
 17.13  INFORMATION.] When a person inquires about assistance, a county 
 17.14  agency must: 
 17.15     (1) explain the eligibility requirements of, and how to 
 17.16  apply for, diversionary assistance as provided in section 
 17.17  256J.47; emergency assistance as provided in section 256J.48; 
 17.18  MFIP as provided in section 256J.10; or any other assistance for 
 17.19  which the person may be eligible; and 
 17.20     (2) offer the person brochures developed or approved by the 
 17.21  commissioner that describe how to apply for assistance. 
 17.22     Sec. 26.  Minnesota Statutes 2002, section 256J.09, 
 17.23  subdivision 3, is amended to read: 
 17.24     Subd. 3.  [SUBMITTING THE APPLICATION FORM.] (a) A county 
 17.25  agency must offer, in person or by mail, the application forms 
 17.26  prescribed by the commissioner as soon as a person makes a 
 17.27  written or oral inquiry.  At that time, the county agency must: 
 17.28     (1) inform the person that assistance begins with the date 
 17.29  the signed application is received by the county agency or the 
 17.30  date all eligibility criteria are met, whichever is later; 
 17.31     (2) inform the person that any delay in submitting the 
 17.32  application will reduce the amount of assistance paid for the 
 17.33  month of application; 
 17.34     (3) inform a person that the person may submit the 
 17.35  application before an interview; 
 17.36     (4) explain the information that will be verified during 
 18.1   the application process by the county agency as provided in 
 18.2   section 256J.32; 
 18.3      (5) inform a person about the county agency's average 
 18.4   application processing time and explain how the application will 
 18.5   be processed under subdivision 5; 
 18.6      (6) explain how to contact the county agency if a person's 
 18.7   application information changes and how to withdraw the 
 18.8   application; 
 18.9      (7) inform a person that the next step in the application 
 18.10  process is an interview and what a person must do if the 
 18.11  application is approved including, but not limited to, attending 
 18.12  orientation under section 256J.45 and complying with employment 
 18.13  and training services requirements in sections 256J.52 256J.515 
 18.14  to 256J.55 256J.57; 
 18.15     (8) explain the child care and transportation services that 
 18.16  are available under paragraph (c) to enable caregivers to attend 
 18.17  the interview, screening, and orientation; and 
 18.18     (9) identify any language barriers and arrange for 
 18.19  translation assistance during appointments, including, but not 
 18.20  limited to, screening under subdivision 3a, orientation under 
 18.21  section 256J.45, and the initial assessment under section 
 18.22  256J.52 256J.521.  
 18.23     (b) Upon receipt of a signed application, the county agency 
 18.24  must stamp the date of receipt on the face of the application.  
 18.25  The county agency must process the application within the time 
 18.26  period required under subdivision 5.  An applicant may withdraw 
 18.27  the application at any time by giving written or oral notice to 
 18.28  the county agency.  The county agency must issue a written 
 18.29  notice confirming the withdrawal.  The notice must inform the 
 18.30  applicant of the county agency's understanding that the 
 18.31  applicant has withdrawn the application and no longer wants to 
 18.32  pursue it.  When, within ten days of the date of the agency's 
 18.33  notice, an applicant informs a county agency, in writing, that 
 18.34  the applicant does not wish to withdraw the application, the 
 18.35  county agency must reinstate the application and finish 
 18.36  processing the application. 
 19.1      (c) Upon a participant's request, the county agency must 
 19.2   arrange for transportation and child care or reimburse the 
 19.3   participant for transportation and child care expenses necessary 
 19.4   to enable participants to attend the screening under subdivision 
 19.5   3a and orientation under section 256J.45.  
 19.6      Sec. 27.  Minnesota Statutes 2002, section 256J.09, 
 19.7   subdivision 3a, is amended to read: 
 19.8      Subd. 3a.  [SCREENING.] The county agency, or at county 
 19.9   option, the county's employment and training service provider as 
 19.10  defined in section 256J.49, must screen each applicant to 
 19.11  determine immediate needs and to determine if the applicant may 
 19.12  be eligible for: 
 19.13     (1) another program that is not partially funded through 
 19.14  the federal temporary assistance to needy families block grant 
 19.15  under Title I of Public Law Number 104-193, including the 
 19.16  expedited issuance of food stamps under section 256J.28, 
 19.17  subdivision 1.  If the applicant may be eligible for another 
 19.18  program, a county caseworker must provide the appropriate 
 19.19  referral to the program; 
 19.20     (2) the diversionary assistance program under section 
 19.21  256J.47; or 
 19.22     (3) the emergency assistance program under section 
 19.23  256J.48.  If the applicant appears eligible for another program, 
 19.24  including any program funded by the MFIP consolidated fund, the 
 19.25  county must make a referral to the appropriate program. 
 19.26     Sec. 28.  Minnesota Statutes 2002, section 256J.09, 
 19.27  subdivision 3b, is amended to read: 
 19.28     Subd. 3b.  [INTERVIEW TO DETERMINE REFERRALS AND SERVICES.] 
 19.29  If the applicant is not diverted from applying for MFIP, and if 
 19.30  the applicant meets the MFIP eligibility requirements, then a 
 19.31  county agency must: 
 19.32     (1) identify an applicant who is under the age of 
 19.33  20 without a high school diploma or its equivalent and explain 
 19.34  to the applicant the assessment procedures and employment plan 
 19.35  requirements for minor parents under section 256J.54; 
 19.36     (2) explain to the applicant the eligibility criteria in 
 20.1   section 256J.545 for an exemption under the family violence 
 20.2   provisions in section 256J.52, subdivision 6 waiver, and explain 
 20.3   what an applicant should do to develop an alternative employment 
 20.4   plan; 
 20.5      (3) determine if an applicant qualifies for an exemption 
 20.6   under section 256J.56 from employment and training services 
 20.7   requirements, explain how a person should report to the county 
 20.8   agency any status changes, and explain that an applicant who is 
 20.9   exempt may volunteer to participate in employment and training 
 20.10  services; 
 20.11     (4) for applicants who are not exempt from the requirement 
 20.12  to attend orientation, arrange for an orientation under section 
 20.13  256J.45 and an initial assessment under section 256J.52 
 20.14  256J.521; 
 20.15     (5) inform an applicant who is not exempt from the 
 20.16  requirement to attend orientation that failure to attend the 
 20.17  orientation is considered an occurrence of noncompliance with 
 20.18  program requirements and will result in an imposition of a 
 20.19  sanction under section 256J.46; and 
 20.20     (6) explain how to contact the county agency if an 
 20.21  applicant has questions about compliance with program 
 20.22  requirements. 
 20.23     Sec. 29.  Minnesota Statutes 2002, section 256J.09, 
 20.24  subdivision 8, is amended to read: 
 20.25     Subd. 8.  [ADDITIONAL APPLICATIONS.] Until a county agency 
 20.26  issues notice of approval or denial, additional applications 
 20.27  submitted by an applicant are void.  However, an application for 
 20.28  monthly assistance or other benefits funded under section 
 20.29  256J.626 and an application for emergency assistance or 
 20.30  emergency general assistance may exist concurrently.  More than 
 20.31  one application for monthly assistance, emergency assistance, or 
 20.32  emergency general assistance may exist concurrently when the 
 20.33  county agency decisions on one or more earlier applications have 
 20.34  been appealed to the commissioner, and the applicant asserts 
 20.35  that a change in circumstances has occurred that would allow 
 20.36  eligibility.  A county agency must require additional 
 21.1   application forms or supplemental forms as prescribed by the 
 21.2   commissioner when a payee's name changes, or when a caregiver 
 21.3   requests the addition of another person to the assistance unit.  
 21.4      Sec. 30.  Minnesota Statutes 2002, section 256J.09, 
 21.5   subdivision 10, is amended to read: 
 21.6      Subd. 10.  [APPLICANTS WHO DO NOT MEET ELIGIBILITY 
 21.7   REQUIREMENTS FOR MFIP OR THE DIVERSIONARY WORK PROGRAM.] When an 
 21.8   applicant is not eligible for MFIP or the diversionary work 
 21.9   program under section 256J.95 because the applicant does not 
 21.10  meet eligibility requirements, the county agency must determine 
 21.11  whether the applicant is eligible for food stamps, medical 
 21.12  assistance, diversionary assistance, or has a need for emergency 
 21.13  assistance when the applicant meets the eligibility requirements 
 21.14  for those programs or health care programs.  The county must 
 21.15  also inform applicants about resources available through the 
 21.16  county or other agencies to meet short-term emergency needs. 
 21.17     Sec. 31.  Minnesota Statutes 2002, section 256J.14, is 
 21.18  amended to read: 
 21.19     256J.14 [ELIGIBILITY FOR PARENTING OR PREGNANT MINORS.] 
 21.20     (a) The definitions in this paragraph only apply to this 
 21.21  subdivision. 
 21.22     (1) "Household of a parent, legal guardian, or other adult 
 21.23  relative" means the place of residence of: 
 21.24     (i) a natural or adoptive parent; 
 21.25     (ii) a legal guardian according to appointment or 
 21.26  acceptance under section 260C.325, 525.615, or 525.6165, and 
 21.27  related laws; 
 21.28     (iii) a caregiver as defined in section 256J.08, 
 21.29  subdivision 11; or 
 21.30     (iv) an appropriate adult relative designated by a county 
 21.31  agency. 
 21.32     (2) "Adult-supervised supportive living arrangement" means 
 21.33  a private family setting which assumes responsibility for the 
 21.34  care and control of the minor parent and minor child, or other 
 21.35  living arrangement, not including a public institution, licensed 
 21.36  by the commissioner of human services which ensures that the 
 22.1   minor parent receives adult supervision and supportive services, 
 22.2   such as counseling, guidance, independent living skills 
 22.3   training, or supervision. 
 22.4      (b) A minor parent and the minor child who is in the care 
 22.5   of the minor parent must reside in the household of a parent, 
 22.6   legal guardian, other adult relative, or in an adult-supervised 
 22.7   supportive living arrangement in order to receive MFIP unless: 
 22.8      (1) the minor parent has no living parent, other adult 
 22.9   relative, or legal guardian whose whereabouts is known; 
 22.10     (2) no living parent, other adult relative, or legal 
 22.11  guardian of the minor parent allows the minor parent to live in 
 22.12  the parent's, other adult relative's, or legal guardian's home; 
 22.13     (3) the minor parent lived apart from the minor parent's 
 22.14  own parent or legal guardian for a period of at least one year 
 22.15  before either the birth of the minor child or the minor parent's 
 22.16  application for MFIP; 
 22.17     (4) the physical or emotional health or safety of the minor 
 22.18  parent or minor child would be jeopardized if the minor parent 
 22.19  and the minor child resided in the same residence with the minor 
 22.20  parent's parent, other adult relative, or legal guardian; or 
 22.21     (5) an adult supervised supportive living arrangement is 
 22.22  not available for the minor parent and child in the county in 
 22.23  which the minor parent and child currently reside.  If an adult 
 22.24  supervised supportive living arrangement becomes available 
 22.25  within the county, the minor parent and child must reside in 
 22.26  that arrangement. 
 22.27     (c) The county agency shall inform minor applicants both 
 22.28  orally and in writing about the eligibility requirements, their 
 22.29  rights and obligations under the MFIP program, and any other 
 22.30  applicable orientation information.  The county must advise the 
 22.31  minor of the possible exemptions under section 256J.54, 
 22.32  subdivision 5, and specifically ask whether one or more of these 
 22.33  exemptions is applicable.  If the minor alleges one or more of 
 22.34  these exemptions, then the county must assist the minor in 
 22.35  obtaining the necessary verifications to determine whether or 
 22.36  not these exemptions apply. 
 23.1      (d) If the county worker has reason to suspect that the 
 23.2   physical or emotional health or safety of the minor parent or 
 23.3   minor child would be jeopardized if they resided with the minor 
 23.4   parent's parent, other adult relative, or legal guardian, then 
 23.5   the county worker must make a referral to child protective 
 23.6   services to determine if paragraph (b), clause (4), applies.  A 
 23.7   new determination by the county worker is not necessary if one 
 23.8   has been made within the last six months, unless there has been 
 23.9   a significant change in circumstances which justifies a new 
 23.10  referral and determination. 
 23.11     (e) If a minor parent is not living with a parent, legal 
 23.12  guardian, or other adult relative due to paragraph (b), clause 
 23.13  (1), (2), or (4), the minor parent must reside, when possible, 
 23.14  in a living arrangement that meets the standards of paragraph 
 23.15  (a), clause (2). 
 23.16     (f) Regardless of living arrangement, MFIP must be paid, 
 23.17  when possible, in the form of a protective payment on behalf of 
 23.18  the minor parent and minor child according to section 256J.39, 
 23.19  subdivisions 2 to 4. 
 23.20     Sec. 32.  Minnesota Statutes 2002, section 256J.20, 
 23.21  subdivision 3, is amended to read: 
 23.22     Subd. 3.  [OTHER PROPERTY LIMITATIONS.] To be eligible for 
 23.23  MFIP, the equity value of all nonexcluded real and personal 
 23.24  property of the assistance unit must not exceed $2,000 for 
 23.25  applicants and $5,000 for ongoing participants.  The value of 
 23.26  assets in clauses (1) to (19) must be excluded when determining 
 23.27  the equity value of real and personal property: 
 23.28     (1) a licensed vehicle up to a loan value of less than or 
 23.29  equal to $7,500.  The county agency shall apply any excess loan 
 23.30  value as if it were equity value to the asset limit described in 
 23.31  this section.  If the assistance unit owns more than one 
 23.32  licensed vehicle, the county agency shall determine the vehicle 
 23.33  with the highest loan value and count only the loan value over 
 23.34  $7,500, excluding:  (i) the value of one vehicle per physically 
 23.35  disabled person when the vehicle is needed to transport the 
 23.36  disabled unit member; this exclusion does not apply to mentally 
 24.1   disabled people; (ii) the value of special equipment for a 
 24.2   handicapped member of the assistance unit; and (iii) any vehicle 
 24.3   used for long-distance travel, other than daily commuting, for 
 24.4   the employment of a unit member. 
 24.5      The county agency shall count the loan value of all other 
 24.6   vehicles and apply this amount as if it were equity value to the 
 24.7   asset limit described in this section.  To establish the loan 
 24.8   value of vehicles, a county agency must use the N.A.D.A. 
 24.9   Official Used Car Guide, Midwest Edition, for newer model cars.  
 24.10  When a vehicle is not listed in the guidebook, or when the 
 24.11  applicant or participant disputes the loan value listed in the 
 24.12  guidebook as unreasonable given the condition of the particular 
 24.13  vehicle, the county agency may require the applicant or 
 24.14  participant document the loan value by securing a written 
 24.15  statement from a motor vehicle dealer licensed under section 
 24.16  168.27, stating the amount that the dealer would pay to purchase 
 24.17  the vehicle.  The county agency shall reimburse the applicant or 
 24.18  participant for the cost of a written statement that documents a 
 24.19  lower loan value; 
 24.20     (2) the value of life insurance policies for members of the 
 24.21  assistance unit; 
 24.22     (3) one burial plot per member of an assistance unit; 
 24.23     (4) the value of personal property needed to produce earned 
 24.24  income, including tools, implements, farm animals, inventory, 
 24.25  business loans, business checking and savings accounts used at 
 24.26  least annually and used exclusively for the operation of a 
 24.27  self-employment business, and any motor vehicles if at least 50 
 24.28  percent of the vehicle's use is to produce income and if the 
 24.29  vehicles are essential for the self-employment business; 
 24.30     (5) the value of personal property not otherwise specified 
 24.31  which is commonly used by household members in day-to-day living 
 24.32  such as clothing, necessary household furniture, equipment, and 
 24.33  other basic maintenance items essential for daily living; 
 24.34     (6) the value of real and personal property owned by a 
 24.35  recipient of Supplemental Security Income or Minnesota 
 24.36  supplemental aid; 
 25.1      (7) the value of corrective payments, but only for the 
 25.2   month in which the payment is received and for the following 
 25.3   month; 
 25.4      (8) a mobile home or other vehicle used by an applicant or 
 25.5   participant as the applicant's or participant's home; 
 25.6      (9) money in a separate escrow account that is needed to 
 25.7   pay real estate taxes or insurance and that is used for this 
 25.8   purpose; 
 25.9      (10) money held in escrow to cover employee FICA, employee 
 25.10  tax withholding, sales tax withholding, employee worker 
 25.11  compensation, business insurance, property rental, property 
 25.12  taxes, and other costs that are paid at least annually, but less 
 25.13  often than monthly; 
 25.14     (11) monthly assistance, emergency assistance, and 
 25.15  diversionary payments for the current month's needs or 
 25.16  short-term emergency needs under section 256J.626, subdivision 
 25.17  2; 
 25.18     (12) the value of school loans, grants, or scholarships for 
 25.19  the period they are intended to cover; 
 25.20     (13) payments listed in section 256J.21, subdivision 2, 
 25.21  clause (9), which are held in escrow for a period not to exceed 
 25.22  three months to replace or repair personal or real property; 
 25.23     (14) income received in a budget month through the end of 
 25.24  the payment month; 
 25.25     (15) savings from earned income of a minor child or a minor 
 25.26  parent that are set aside in a separate account designated 
 25.27  specifically for future education or employment costs; 
 25.28     (16) the federal earned income credit, Minnesota working 
 25.29  family credit, state and federal income tax refunds, state 
 25.30  homeowners and renters credits under chapter 290A, property tax 
 25.31  rebates and other federal or state tax rebates in the month 
 25.32  received and the following month; 
 25.33     (17) payments excluded under federal law as long as those 
 25.34  payments are held in a separate account from any nonexcluded 
 25.35  funds; 
 25.36     (18) the assets of children ineligible to receive MFIP 
 26.1   benefits because foster care or adoption assistance payments are 
 26.2   made on their behalf; and 
 26.3      (19) the assets of persons whose income is excluded under 
 26.4   section 256J.21, subdivision 2, clause (43). 
 26.5      Sec. 33.  Minnesota Statutes 2002, section 256J.21, 
 26.6   subdivision 1, is amended to read: 
 26.7      Subdivision 1.  [INCOME INCLUSIONS.] To determine MFIP 
 26.8   eligibility, the county agency must evaluate income received by 
 26.9   members of an assistance unit, or by other persons whose income 
 26.10  is considered available to the assistance unit, and only count 
 26.11  income that is available to the member of the assistance unit.  
 26.12  Income is available if the individual has legal access to the 
 26.13  income.  All payments, unless specifically excluded in 
 26.14  subdivision 2, must be counted as income.  The county agency 
 26.15  shall verify the income of all MFIP recipients and applicants. 
 26.16     Sec. 34.  Minnesota Statutes 2002, section 256J.21, 
 26.17  subdivision 2, is amended to read: 
 26.18     Subd. 2.  [INCOME EXCLUSIONS.] The following must be 
 26.19  excluded in determining a family's available income: 
 26.20     (1) payments for basic care, difficulty of care, and 
 26.21  clothing allowances received for providing family foster care to 
 26.22  children or adults under Minnesota Rules, parts 9545.0010 to 
 26.23  9545.0260 and 9555.5050 to 9555.6265, and payments received and 
 26.24  used for care and maintenance of a third-party beneficiary who 
 26.25  is not a household member; 
 26.26     (2) reimbursements for employment training received through 
 26.27  the Job Training Partnership Workforce Investment Act 1998, 
 26.28  United States Code, title 29 20, chapter 19 73, sections 1501 
 26.29  to 1792b section 9201; 
 26.30     (3) reimbursement for out-of-pocket expenses incurred while 
 26.31  performing volunteer services, jury duty, employment, or 
 26.32  informal carpooling arrangements directly related to employment; 
 26.33     (4) all educational assistance, except the county agency 
 26.34  must count graduate student teaching assistantships, 
 26.35  fellowships, and other similar paid work as earned income and, 
 26.36  after allowing deductions for any unmet and necessary 
 27.1   educational expenses, shall count scholarships or grants awarded 
 27.2   to graduate students that do not require teaching or research as 
 27.3   unearned income; 
 27.4      (5) loans, regardless of purpose, from public or private 
 27.5   lending institutions, governmental lending institutions, or 
 27.6   governmental agencies; 
 27.7      (6) loans from private individuals, regardless of purpose, 
 27.8   provided an applicant or participant documents that the lender 
 27.9   expects repayment; 
 27.10     (7)(i) state income tax refunds; and 
 27.11     (ii) federal income tax refunds; 
 27.12     (8)(i) federal earned income credits; 
 27.13     (ii) Minnesota working family credits; 
 27.14     (iii) state homeowners and renters credits under chapter 
 27.15  290A; and 
 27.16     (iv) federal or state tax rebates; 
 27.17     (9) funds received for reimbursement, replacement, or 
 27.18  rebate of personal or real property when these payments are made 
 27.19  by public agencies, awarded by a court, solicited through public 
 27.20  appeal, or made as a grant by a federal agency, state or local 
 27.21  government, or disaster assistance organizations, subsequent to 
 27.22  a presidential declaration of disaster; 
 27.23     (10) the portion of an insurance settlement that is used to 
 27.24  pay medical, funeral, and burial expenses, or to repair or 
 27.25  replace insured property; 
 27.26     (11) reimbursements for medical expenses that cannot be 
 27.27  paid by medical assistance; 
 27.28     (12) payments by a vocational rehabilitation program 
 27.29  administered by the state under chapter 268A, except those 
 27.30  payments that are for current living expenses; 
 27.31     (13) in-kind income, including any payments directly made 
 27.32  by a third party to a provider of goods and services; 
 27.33     (14) assistance payments to correct underpayments, but only 
 27.34  for the month in which the payment is received; 
 27.35     (15) emergency assistance payments for short-term emergency 
 27.36  needs under section 256J.626, subdivision 2; 
 28.1      (16) funeral and cemetery payments as provided by section 
 28.2   256.935; 
 28.3      (17) nonrecurring cash gifts of $30 or less, not exceeding 
 28.4   $30 per participant in a calendar month; 
 28.5      (18) any form of energy assistance payment made through 
 28.6   Public Law Number 97-35, Low-Income Home Energy Assistance Act 
 28.7   of 1981, payments made directly to energy providers by other 
 28.8   public and private agencies, and any form of credit or rebate 
 28.9   payment issued by energy providers; 
 28.10     (19) Supplemental Security Income (SSI), including 
 28.11  retroactive SSI payments and other income of an SSI recipient, 
 28.12  except as described in section 256J.37, subdivision 3b; 
 28.13     (20) Minnesota supplemental aid, including retroactive 
 28.14  payments; 
 28.15     (21) proceeds from the sale of real or personal property; 
 28.16     (22) adoption assistance payments under section 259.67; 
 28.17     (23) state-funded family subsidy program payments made 
 28.18  under section 252.32 to help families care for children with 
 28.19  mental retardation or related conditions, consumer support grant 
 28.20  funds under section 256.476, and resources and services for a 
 28.21  disabled household member under one of the home and 
 28.22  community-based waiver services programs under chapter 256B; 
 28.23     (24) interest payments and dividends from property that is 
 28.24  not excluded from and that does not exceed the asset limit; 
 28.25     (25) rent rebates; 
 28.26     (26) income earned by a minor caregiver, minor child 
 28.27  through age 6, or a minor child who is at least a half-time 
 28.28  student in an approved elementary or secondary education 
 28.29  program; 
 28.30     (27) income earned by a caregiver under age 20 who is at 
 28.31  least a half-time student in an approved elementary or secondary 
 28.32  education program; 
 28.33     (28) MFIP child care payments under section 119B.05; 
 28.34     (29) all other payments made through MFIP to support a 
 28.35  caregiver's pursuit of greater self-support economic stability; 
 28.36     (30) income a participant receives related to shared living 
 29.1   expenses; 
 29.2      (31) reverse mortgages; 
 29.3      (32) benefits provided by the Child Nutrition Act of 1966, 
 29.4   United States Code, title 42, chapter 13A, sections 1771 to 
 29.5   1790; 
 29.6      (33) benefits provided by the women, infants, and children 
 29.7   (WIC) nutrition program, United States Code, title 42, chapter 
 29.8   13A, section 1786; 
 29.9      (34) benefits from the National School Lunch Act, United 
 29.10  States Code, title 42, chapter 13, sections 1751 to 1769e; 
 29.11     (35) relocation assistance for displaced persons under the 
 29.12  Uniform Relocation Assistance and Real Property Acquisition 
 29.13  Policies Act of 1970, United States Code, title 42, chapter 61, 
 29.14  subchapter II, section 4636, or the National Housing Act, United 
 29.15  States Code, title 12, chapter 13, sections 1701 to 1750jj; 
 29.16     (36) benefits from the Trade Act of 1974, United States 
 29.17  Code, title 19, chapter 12, part 2, sections 2271 to 2322; 
 29.18     (37) war reparations payments to Japanese Americans and 
 29.19  Aleuts under United States Code, title 50, sections 1989 to 
 29.20  1989d; 
 29.21     (38) payments to veterans or their dependents as a result 
 29.22  of legal settlements regarding Agent Orange or other chemical 
 29.23  exposure under Public Law Number 101-239, section 10405, 
 29.24  paragraph (a)(2)(E); 
 29.25     (39) income that is otherwise specifically excluded from 
 29.26  MFIP consideration in federal law, state law, or federal 
 29.27  regulation; 
 29.28     (40) security and utility deposit refunds; 
 29.29     (41) American Indian tribal land settlements excluded under 
 29.30  Public Law Numbers Laws 98-123, 98-124, and 99-377 to the 
 29.31  Mississippi Band Chippewa Indians of White Earth, Leech Lake, 
 29.32  and Mille Lacs reservations and payments to members of the White 
 29.33  Earth Band, under United States Code, title 25, chapter 9, 
 29.34  section 331, and chapter 16, section 1407; 
 29.35     (42) all income of the minor parent's parents and 
 29.36  stepparents when determining the grant for the minor parent in 
 30.1   households that include a minor parent living with parents or 
 30.2   stepparents on MFIP with other children; 
 30.3      (43) income of the minor parent's parents and stepparents 
 30.4   equal to 200 percent of the federal poverty guideline for a 
 30.5   family size not including the minor parent and the minor 
 30.6   parent's child in households that include a minor parent living 
 30.7   with parents or stepparents not on MFIP when determining the 
 30.8   grant for the minor parent.  The remainder of income is deemed 
 30.9   as specified in section 256J.37, subdivision 1b; 
 30.10     (44) payments made to children eligible for relative 
 30.11  custody assistance under section 257.85; 
 30.12     (45) vendor payments for goods and services made on behalf 
 30.13  of a client unless the client has the option of receiving the 
 30.14  payment in cash; and 
 30.15     (46) the principal portion of a contract for deed payment. 
 30.16     Sec. 35.  Minnesota Statutes 2002, section 256J.24, 
 30.17  subdivision 3, is amended to read: 
 30.18     Subd. 3.  [INDIVIDUALS WHO MUST BE EXCLUDED FROM AN 
 30.19  ASSISTANCE UNIT.] (a) The following individuals who are part of 
 30.20  the assistance unit determined under subdivision 2 are 
 30.21  ineligible to receive MFIP: 
 30.22     (1) individuals receiving who are recipients of 
 30.23  Supplemental Security Income or Minnesota supplemental aid; 
 30.24     (2) individuals disqualified from the food stamp program or 
 30.25  MFIP, until the disqualification ends; 
 30.26     (3) children on whose behalf federal, state or local foster 
 30.27  care payments are made, except as provided in sections 256J.13, 
 30.28  subdivision 2, and 256J.74, subdivision 2; and 
 30.29     (4) children receiving ongoing monthly adoption assistance 
 30.30  payments under section 259.67.  
 30.31     (b) The exclusion of a person under this subdivision does 
 30.32  not alter the mandatory assistance unit composition. 
 30.33     Sec. 36.  Minnesota Statutes 2002, section 256J.24, 
 30.34  subdivision 5, is amended to read: 
 30.35     Subd. 5.  [MFIP TRANSITIONAL STANDARD.] The following table 
 30.36  represents the MFIP transitional standard table when all members 
 31.1   of is based on the number of persons in the assistance unit are 
 31.2   eligible for both food and cash assistance unless the 
 31.3   restrictions in subdivision 6 on the birth of a child apply.  
 31.4   The following table represents the transitional standards 
 31.5   effective October 1, 2002. 
 31.6       Number of       Transitional         Cash       Food
 31.7    Eligible People     Standard           Portion    Portion
 31.8         1                $351   $370:      $250       $120
 31.9         2                $609   $658:      $437       $221
 31.10        3                $763   $844:      $532       $312
 31.11        4                $903   $998:      $621       $377
 31.12        5              $1,025 $1,135:      $697       $438
 31.13        6              $1,165 $1,296:      $773       $523
 31.14        7              $1,273 $1,414:      $850       $564
 31.15        8              $1,403 $1,558:      $916       $642
 31.16        9              $1,530 $1,700:      $980       $720
 31.17       10              $1,653 $1,836:    $1,035       $801
 31.18  over 10            add $121   $136:       $53        $83
 31.19  per additional member.
 31.20     The commissioner shall annually publish in the State 
 31.21  Register the transitional standard for an assistance unit sizes 
 31.22  1 to 10 including a breakdown of the cash and food portions. 
 31.23     Sec. 37.  Minnesota Statutes 2002, section 256J.24, 
 31.24  subdivision 6, is amended to read: 
 31.25     Subd. 6.  [APPLICATION OF ASSISTANCE STANDARDS FAMILY CAP.] 
 31.26  The standards apply to the number of eligible persons in the 
 31.27  assistance unit.  (a) MFIP assistance units shall not receive an 
 31.28  increase in the cash portion of the transitional standard as a 
 31.29  result of the birth of a child, unless one of the conditions 
 31.30  under paragraph (b) is met.  The child shall be considered a 
 31.31  member of the assistance unit according to subdivisions 1 to 3, 
 31.32  but shall be excluded in determining family size for purposes of 
 31.33  determining the amount of the cash portion of the transitional 
 31.34  standard under subdivision 5.  The child shall be included in 
 31.35  determining family size for purposes of determining the food 
 31.36  portion of the transitional standard.  The transitional standard 
 32.1   under this subdivision shall be the total of the cash and food 
 32.2   portions as specified in this paragraph.  The family wage level 
 32.3   under this subdivision shall be based on the family size used to 
 32.4   determine the food portion of the transitional standard. 
 32.5      (b) A child shall be included in determining family size 
 32.6   for purposes of determining the amount of the cash portion of 
 32.7   the MFIP transitional standard when at least one of the 
 32.8   following conditions is met: 
 32.9      (1) for families receiving MFIP assistance on July 1, 2003, 
 32.10  the child is born to the adult parent before May 1, 2004; 
 32.11     (2) for families who apply for the diversionary work 
 32.12  program under section 256J.95 or MFIP assistance on or after 
 32.13  July 1, 2003, the child is born to the adult parent within ten 
 32.14  months of the date the family is eligible for assistance; 
 32.15     (3) the child was conceived as a result of a sexual assault 
 32.16  or incest, provided that the incident has been reported to a law 
 32.17  enforcement agency; 
 32.18     (4) the child's mother is a minor caregiver as defined in 
 32.19  section 256J.08, subdivision 59, and the child, or multiple 
 32.20  children, are the mother's first birth; or 
 32.21     (5) any child previously excluded in determining family 
 32.22  size under paragraph (a) shall be included if the adult parent 
 32.23  or parents have not received benefits from the diversionary work 
 32.24  program under section 256J.95 or MFIP assistance in the previous 
 32.25  ten months.  An adult parent or parents who reapply and have 
 32.26  received benefits from the diversionary work program or MFIP 
 32.27  assistance in the past ten months shall be under the ten-month 
 32.28  grace period of their previous application under clause (2). 
 32.29     (c) Income and resources of a child excluded under this 
 32.30  subdivision, except child support received or distributed on 
 32.31  behalf of this child, must be considered using the same policies 
 32.32  as for other children when determining the grant amount of the 
 32.33  assistance unit. 
 32.34     (d) The caregiver must assign support and cooperate with 
 32.35  the child support enforcement agency to establish paternity and 
 32.36  collect child support on behalf of the excluded child.  Failure 
 33.1   to cooperate results in the sanction specified in section 
 33.2   256J.46, subdivisions 2 and 2a.  Current support paid on behalf 
 33.3   of the excluded child shall be distributed according to section 
 33.4   256.741, subdivision 15. 
 33.5      (e) County agencies must inform applicants of the 
 33.6   provisions under this subdivision at the time of each 
 33.7   application and at recertification.  
 33.8      (f) Children excluded under this provision shall be deemed 
 33.9   MFIP recipients for purposes of child care under chapter 119B. 
 33.10     Sec. 38.  Minnesota Statutes 2002, section 256J.24, 
 33.11  subdivision 7, is amended to read: 
 33.12     Subd. 7.  [FAMILY WAGE LEVEL STANDARD.] The family wage 
 33.13  level standard is 110 percent of the transitional standard under 
 33.14  subdivision 5 or 6, when applicable, and is the standard used 
 33.15  when there is earned income in the assistance unit.  As 
 33.16  specified in section 256J.21, earned income is subtracted from 
 33.17  the family wage level to determine the amount of the assistance 
 33.18  payment.  Not including The family wage level standard, 
 33.19  assistance payments payment may not exceed the MFIP standard of 
 33.20  need transitional standard under subdivision 5 or 6, or the 
 33.21  shared household standard under subdivision 9, whichever is 
 33.22  applicable, for the assistance unit. 
 33.23     Sec. 39.  Minnesota Statutes 2002, section 256J.24, 
 33.24  subdivision 10, is amended to read: 
 33.25     Subd. 10.  [MFIP EXIT LEVEL.] The commissioner shall adjust 
 33.26  the MFIP earned income disregard to ensure that most 
 33.27  participants do not lose eligibility for MFIP until their income 
 33.28  reaches at least 120 115 percent of the federal poverty 
 33.29  guidelines in effect in October of each fiscal year.  The 
 33.30  adjustment to the disregard shall be based on a household size 
 33.31  of three, and the resulting earned income disregard percentage 
 33.32  must be applied to all household sizes.  The adjustment under 
 33.33  this subdivision must be implemented at the same time as the 
 33.34  October food stamp cost-of-living adjustment is reflected in the 
 33.35  food portion of MFIP transitional standard as required under 
 33.36  subdivision 5a. 
 34.1      Sec. 40.  Minnesota Statutes 2002, section 256J.30, 
 34.2   subdivision 9, is amended to read: 
 34.3      Subd. 9.  [CHANGES THAT MUST BE REPORTED.] A caregiver must 
 34.4   report the changes or anticipated changes specified in clauses 
 34.5   (1) to (17) (16) within ten days of the date they occur, at the 
 34.6   time of the periodic recertification of eligibility under 
 34.7   section 256J.32, subdivision 6, or within eight calendar days of 
 34.8   a reporting period as in subdivision 5 or 6, whichever occurs 
 34.9   first.  A caregiver must report other changes at the time of the 
 34.10  periodic recertification of eligibility under section 256J.32, 
 34.11  subdivision 6, or at the end of a reporting period under 
 34.12  subdivision 5 or 6, as applicable.  A caregiver must make these 
 34.13  reports in writing to the county agency.  When a county agency 
 34.14  could have reduced or terminated assistance for one or more 
 34.15  payment months if a delay in reporting a change specified under 
 34.16  clauses (1) to (16) (15) had not occurred, the county agency 
 34.17  must determine whether a timely notice under section 256J.31, 
 34.18  subdivision 4, could have been issued on the day that the change 
 34.19  occurred.  When a timely notice could have been issued, each 
 34.20  month's overpayment subsequent to that notice must be considered 
 34.21  a client error overpayment under section 256J.38.  Calculation 
 34.22  of overpayments for late reporting under clause (17) (16) is 
 34.23  specified in section 256J.09, subdivision 9.  Changes in 
 34.24  circumstances which must be reported within ten days must also 
 34.25  be reported on the MFIP household report form for the reporting 
 34.26  period in which those changes occurred.  Within ten days, a 
 34.27  caregiver must report: 
 34.28     (1) a change in initial employment; 
 34.29     (2) a change in initial receipt of unearned income; 
 34.30     (3) a recurring change in unearned income; 
 34.31     (4) a nonrecurring change of unearned income that exceeds 
 34.32  $30; 
 34.33     (5) the receipt of a lump sum; 
 34.34     (6) an increase in assets that may cause the assistance 
 34.35  unit to exceed asset limits; 
 34.36     (7) a change in the physical or mental status of an 
 35.1   incapacitated member of the assistance unit if the physical or 
 35.2   mental status is the basis of exemption from an MFIP employment 
 35.3   services program under section 256J.56, or as the basis for 
 35.4   reducing the hourly participation requirements under section 
 35.5   256J.55, subdivision 1, or the type of activities included in an 
 35.6   employment plan under section 256J.521, subdivision 2; 
 35.7      (8) a change in employment status; 
 35.8      (9) information affecting an exception under section 
 35.9   256J.24, subdivision 9; 
 35.10     (10) a change in health insurance coverage; 
 35.11     (11) the marriage or divorce of an assistance unit member; 
 35.12     (12) (11) the death of a parent, minor child, or 
 35.13  financially responsible person; 
 35.14     (13) (12) a change in address or living quarters of the 
 35.15  assistance unit; 
 35.16     (14) (13) the sale, purchase, or other transfer of 
 35.17  property; 
 35.18     (15) (14) a change in school attendance of a custodial 
 35.19  parent caregiver under age 20 or an employed child; 
 35.20     (16) (15) filing a lawsuit, a workers' compensation claim, 
 35.21  or a monetary claim against a third party; and 
 35.22     (17) (16) a change in household composition, including 
 35.23  births, returns to and departures from the home of assistance 
 35.24  unit members and financially responsible persons, or a change in 
 35.25  the custody of a minor child. 
 35.26     Sec. 41.  Minnesota Statutes 2002, section 256J.32, 
 35.27  subdivision 2, is amended to read: 
 35.28     Subd. 2.  [DOCUMENTATION.] The applicant or participant 
 35.29  must document the information required under subdivisions 4 to 6 
 35.30  or authorize the county agency to verify the information.  The 
 35.31  applicant or participant has the burden of providing documentary 
 35.32  evidence to verify eligibility.  The county agency shall assist 
 35.33  the applicant or participant in obtaining required documents 
 35.34  when the applicant or participant is unable to do so.  When an 
 35.35  applicant or participant and the county agency are unable to 
 35.36  obtain documents needed to verify information, the county agency 
 36.1   may accept an affidavit from an applicant or participant as 
 36.2   sufficient documentation.  The county agency may accept an 
 36.3   affidavit only for factors specified under subdivision 8.  
 36.4      Sec. 42.  Minnesota Statutes 2002, section 256J.32, 
 36.5   subdivision 4, is amended to read: 
 36.6      Subd. 4.  [FACTORS TO BE VERIFIED.] The county agency shall 
 36.7   verify the following at application: 
 36.8      (1) identity of adults; 
 36.9      (2) presence of the minor child in the home, if 
 36.10  questionable; 
 36.11     (3) relationship of a minor child to caregivers in the 
 36.12  assistance unit; 
 36.13     (4) age, if necessary to determine MFIP eligibility; 
 36.14     (5) immigration status; 
 36.15     (6) social security number according to the requirements of 
 36.16  section 256J.30, subdivision 12; 
 36.17     (7) income; 
 36.18     (8) self-employment expenses used as a deduction; 
 36.19     (9) source and purpose of deposits and withdrawals from 
 36.20  business accounts; 
 36.21     (10) spousal support and child support payments made to 
 36.22  persons outside the household; 
 36.23     (11) real property; 
 36.24     (12) vehicles; 
 36.25     (13) checking and savings accounts; 
 36.26     (14) savings certificates, savings bonds, stocks, and 
 36.27  individual retirement accounts; 
 36.28     (15) pregnancy, if related to eligibility; 
 36.29     (16) inconsistent information, if related to eligibility; 
 36.30     (17) medical insurance; 
 36.31     (18) burial accounts; 
 36.32     (19) (18) school attendance, if related to eligibility; 
 36.33     (20) (19) residence; 
 36.34     (21) (20) a claim of family violence if used as a basis for 
 36.35  a to qualify for the family violence waiver from the 60-month 
 36.36  time limit in section 256J.42 and regular employment and 
 37.1   training services requirements in section 256J.56; 
 37.2      (22) (21) disability if used as the basis for an exemption 
 37.3   from employment and training services requirements under section 
 37.4   256J.56 or as the basis for reducing the hourly participation 
 37.5   requirements under section 256J.55, subdivision 1, or the type 
 37.6   of activity included in an employment plan under section 
 37.7   256J.521, subdivision 2; and 
 37.8      (23) (22) information needed to establish an exception 
 37.9   under section 256J.24, subdivision 9. 
 37.10     Sec. 43.  Minnesota Statutes 2002, section 256J.32, 
 37.11  subdivision 5a, is amended to read: 
 37.12     Subd. 5a.  [INCONSISTENT INFORMATION.] When the county 
 37.13  agency verifies inconsistent information under subdivision 4, 
 37.14  clause (16), or 6, clause (4) (5), the reason for verifying the 
 37.15  information must be documented in the financial case record. 
 37.16     Sec. 44.  Minnesota Statutes 2002, section 256J.32, is 
 37.17  amended by adding a subdivision to read: 
 37.18     Subd. 8.  [AFFIDAVIT.] The county agency may accept an 
 37.19  affidavit from the applicant or recipient as sufficient 
 37.20  documentation at the time of application or recertification only 
 37.21  for the following factors: 
 37.22     (1) a claim of family violence if used as a basis to 
 37.23  qualify for the family violence waiver; 
 37.24     (2) information needed to establish an exception under 
 37.25  section 256J.24, subdivision 9; 
 37.26     (3) relationship of a minor child to caregivers in the 
 37.27  assistance unit; and 
 37.28     (4) citizenship status from a noncitizen who reports to be, 
 37.29  or is identified as, a victim of severe forms of trafficking in 
 37.30  persons, if the noncitizen reports that the noncitizen's 
 37.31  immigration documents are being held by an individual or group 
 37.32  of individuals against the noncitizen's will.  The noncitizen 
 37.33  must follow up with the Office of Refugee Resettlement (ORR) to 
 37.34  pursue certification.  If verification that certification is 
 37.35  being pursued is not received within 30 days, the MFIP case must 
 37.36  be closed and the agency shall pursue overpayments.  The ORR 
 38.1   documents certifying the noncitizen's status as a victim of 
 38.2   severe forms of trafficking in persons, or the reason for the 
 38.3   delay in processing, must be received within 90 days, or the 
 38.4   MFIP case must be closed and the agency shall pursue 
 38.5   overpayments. 
 38.6      Sec. 45.  Minnesota Statutes 2002, section 256J.37, is 
 38.7   amended by adding a subdivision to read: 
 38.8      Subd. 3a.  [RENTAL SUBSIDIES; UNEARNED INCOME.] (a) 
 38.9   Effective July 1, 2003, the county agency shall count $50 of the 
 38.10  value of public and assisted rental subsidies provided through 
 38.11  the Department of Housing and Urban Development (HUD) as 
 38.12  unearned income to the cash portion of the MFIP grant.  The full 
 38.13  amount of the subsidy must be counted as unearned income when 
 38.14  the subsidy is less than $50.  The income from this subsidy 
 38.15  shall be budgeted according to section 256J.34. 
 38.16     (b) The provisions of this subdivision shall not apply to 
 38.17  an MFIP assistance unit which includes a participant who is: 
 38.18     (1) age 60 or older; 
 38.19     (2) a caregiver who is suffering from an illness, injury, 
 38.20  or incapacity that has been certified by a qualified 
 38.21  professional when the illness, injury, or incapacity is expected 
 38.22  to continue for more than 30 days and prevents the person from 
 38.23  obtaining or retaining employment; or 
 38.24     (3) a caregiver whose presence in the home is required due 
 38.25  to the illness or incapacity of another member in the assistance 
 38.26  unit, a relative in the household, or a foster child in the 
 38.27  household when the illness or incapacity and the need for the 
 38.28  participant's presence in the home has been certified by a 
 38.29  qualified professional and is expected to continue for more than 
 38.30  30 days. 
 38.31     (c) The provisions of this subdivision shall not apply to 
 38.32  an MFIP assistance unit where the parental caregiver is an SSI 
 38.33  recipient. 
 38.34     (d) Prior to implementing this provision, the commissioner 
 38.35  must identify the MFIP participants subject to this provision 
 38.36  and provide written notice to these participants at least 30 
 39.1   days before the first grant reduction.  The notice must inform 
 39.2   the participant of the basis for the potential grant reduction, 
 39.3   the exceptions to the provision, if any, and inform the 
 39.4   participant of the steps necessary to claim an exception.  A 
 39.5   person who is found not to meet one of the exceptions to the 
 39.6   provision must be notified and informed of the right to a fair 
 39.7   hearing under section 256J.40.  The notice must also inform the 
 39.8   participant that the participant may be eligible for a rent 
 39.9   reduction resulting from a reduction in the MFIP grant, and 
 39.10  encourage the participant to contact the local housing authority.
 39.11     Sec. 46.  Minnesota Statutes 2002, section 256J.37, is 
 39.12  amended by adding a subdivision to read: 
 39.13     Subd. 3b.  [TREATMENT OF SUPPLEMENTAL SECURITY 
 39.14  INCOME.] Effective July 1, 2003, the county shall reduce the 
 39.15  cash portion of the MFIP grant by $125 per SSI recipient who 
 39.16  resides in the household, and who would otherwise be included in 
 39.17  the MFIP assistance unit under section 256J.24, subdivision 2, 
 39.18  but is excluded solely due to the SSI recipient status under 
 39.19  section 256J.24, subdivision 3, paragraph (a), clause (1).  If 
 39.20  the SSI recipient receives less than $125 of SSI, only the 
 39.21  amount received shall be used in calculating the MFIP cash 
 39.22  assistance payment.  This provision does not apply to relative 
 39.23  caregivers who could elect to be included in the MFIP assistance 
 39.24  unit under section 256J.24, subdivision 4, unless the 
 39.25  caregiver's children or stepchildren are included in the MFIP 
 39.26  assistance unit. 
 39.27     Sec. 47.  Minnesota Statutes 2002, section 256J.37, 
 39.28  subdivision 9, is amended to read: 
 39.29     Subd. 9.  [UNEARNED INCOME.] (a) The county agency must 
 39.30  apply unearned income to the MFIP standard of need.  When 
 39.31  determining the amount of unearned income, the county agency 
 39.32  must deduct the costs necessary to secure payments of unearned 
 39.33  income.  These costs include legal fees, medical fees, and 
 39.34  mandatory deductions such as federal and state income taxes. 
 39.35     (b) Effective July 1, 2003, the county agency shall count 
 39.36  $100 of the value of public and assisted rental subsidies 
 40.1   provided through the Department of Housing and Urban Development 
 40.2   (HUD) as unearned income.  The full amount of the subsidy must 
 40.3   be counted as unearned income when the subsidy is less than $100.
 40.4      (c) The provisions of paragraph (b) shall not apply to MFIP 
 40.5   participants who are exempt from the employment and training 
 40.6   services component because they are: 
 40.7      (i) individuals who are age 60 or older; 
 40.8      (ii) individuals who are suffering from a professionally 
 40.9   certified permanent or temporary illness, injury, or incapacity 
 40.10  which is expected to continue for more than 30 days and which 
 40.11  prevents the person from obtaining or retaining employment; or 
 40.12     (iii) caregivers whose presence in the home is required 
 40.13  because of the professionally certified illness or incapacity of 
 40.14  another member in the assistance unit, a relative in the 
 40.15  household, or a foster child in the household. 
 40.16     (d) The provisions of paragraph (b) shall not apply to an 
 40.17  MFIP assistance unit where the parental caregiver receives 
 40.18  supplemental security income. 
 40.19     Sec. 48.  Minnesota Statutes 2002, section 256J.38, 
 40.20  subdivision 3, is amended to read: 
 40.21     Subd. 3.  [RECOVERING OVERPAYMENTS FROM FORMER 
 40.22  PARTICIPANTS.] A county agency must initiate efforts to recover 
 40.23  overpayments paid to a former participant or caregiver.  Adults 
 40.24  Caregivers, both parental and nonparental, and minor caregivers 
 40.25  of an assistance unit at the time an overpayment occurs, whether 
 40.26  receiving assistance or not, are jointly and individually liable 
 40.27  for repayment of the overpayment.  The county agency must 
 40.28  request repayment from the former participants and caregivers.  
 40.29  When an agreement for repayment is not completed within six 
 40.30  months of the date of discovery or when there is a default on an 
 40.31  agreement for repayment after six months, the county agency must 
 40.32  initiate recovery consistent with chapter 270A, or section 
 40.33  541.05.  When a person has been convicted of fraud under section 
 40.34  256.98, recovery must be sought regardless of the amount of 
 40.35  overpayment.  When an overpayment is less than $35, and is not 
 40.36  the result of a fraud conviction under section 256.98, the 
 41.1   county agency must not seek recovery under this subdivision.  
 41.2   The county agency must retain information about all overpayments 
 41.3   regardless of the amount.  When an adult, adult caregiver, or 
 41.4   minor caregiver reapplies for assistance, the overpayment must 
 41.5   be recouped under subdivision 4. 
 41.6      Sec. 49.  Minnesota Statutes 2002, section 256J.38, 
 41.7   subdivision 4, is amended to read: 
 41.8      Subd. 4.  [RECOUPING OVERPAYMENTS FROM PARTICIPANTS.] A 
 41.9   participant may voluntarily repay, in part or in full, an 
 41.10  overpayment even if assistance is reduced under this 
 41.11  subdivision, until the total amount of the overpayment is 
 41.12  repaid.  When an overpayment occurs due to fraud, the county 
 41.13  agency must recover from the overpaid assistance unit, including 
 41.14  child only cases, ten percent of the applicable standard or the 
 41.15  amount of the monthly assistance payment, whichever is less.  
 41.16  When a nonfraud overpayment occurs, the county agency must 
 41.17  recover from the overpaid assistance unit, including child only 
 41.18  cases, three percent of the MFIP standard of need or the amount 
 41.19  of the monthly assistance payment, whichever is less.  
 41.20     Sec. 50.  Minnesota Statutes 2002, section 256J.40, is 
 41.21  amended to read: 
 41.22     256J.40 [FAIR HEARINGS.] 
 41.23     Caregivers receiving a notice of intent to sanction or a 
 41.24  notice of adverse action that includes a sanction, reduction in 
 41.25  benefits, suspension of benefits, denial of benefits, or 
 41.26  termination of benefits may request a fair hearing.  A request 
 41.27  for a fair hearing must be submitted in writing to the county 
 41.28  agency or to the commissioner and must be mailed within 30 days 
 41.29  after a participant or former participant receives written 
 41.30  notice of the agency's action or within 90 days when a 
 41.31  participant or former participant shows good cause for not 
 41.32  submitting the request within 30 days.  A former participant who 
 41.33  receives a notice of adverse action due to an overpayment may 
 41.34  appeal the adverse action according to the requirements in this 
 41.35  section.  Issues that may be appealed are: 
 41.36     (1) the amount of the assistance payment; 
 42.1      (2) a suspension, reduction, denial, or termination of 
 42.2   assistance; 
 42.3      (3) the basis for an overpayment, the calculated amount of 
 42.4   an overpayment, and the level of recoupment; 
 42.5      (4) the eligibility for an assistance payment; and 
 42.6      (5) the use of protective or vendor payments under section 
 42.7   256J.39, subdivision 2, clauses (1) to (3). 
 42.8      Except for benefits issued under section 256J.95, a county 
 42.9   agency must not reduce, suspend, or terminate payment when an 
 42.10  aggrieved participant requests a fair hearing prior to the 
 42.11  effective date of the adverse action or within ten days of the 
 42.12  mailing of the notice of adverse action, whichever is later, 
 42.13  unless the participant requests in writing not to receive 
 42.14  continued assistance pending a hearing decision.  An appeal 
 42.15  request cannot extend benefits for the diversionary work program 
 42.16  under section 256J.95 beyond the four-month time limit.  
 42.17  Assistance issued pending a fair hearing is subject to recovery 
 42.18  under section 256J.38 when as a result of the fair hearing 
 42.19  decision the participant is determined ineligible for assistance 
 42.20  or the amount of the assistance received.  A county agency may 
 42.21  increase or reduce an assistance payment while an appeal is 
 42.22  pending when the circumstances of the participant change and are 
 42.23  not related to the issue on appeal.  The commissioner's order is 
 42.24  binding on a county agency.  No additional notice is required to 
 42.25  enforce the commissioner's order. 
 42.26     A county agency shall reimburse appellants for reasonable 
 42.27  and necessary expenses of attendance at the hearing, such as 
 42.28  child care and transportation costs and for the transportation 
 42.29  expenses of the appellant's witnesses and representatives to and 
 42.30  from the hearing.  Reasonable and necessary expenses do not 
 42.31  include legal fees.  Fair hearings must be conducted at a 
 42.32  reasonable time and date by an impartial referee employed by the 
 42.33  department.  The hearing may be conducted by telephone or at a 
 42.34  site that is readily accessible to persons with disabilities. 
 42.35     The appellant may introduce new or additional evidence 
 42.36  relevant to the issues on appeal.  Recommendations of the 
 43.1   appeals referee and decisions of the commissioner must be based 
 43.2   on evidence in the hearing record and are not limited to a 
 43.3   review of the county agency action. 
 43.4      Sec. 51.  Minnesota Statutes 2002, section 256J.42, 
 43.5   subdivision 4, is amended to read: 
 43.6      Subd. 4.  [VICTIMS OF FAMILY VIOLENCE.] Any cash assistance 
 43.7   received by an assistance unit in a month when a caregiver 
 43.8   complied with a safety plan, an alternative employment plan, or 
 43.9   an employment plan or after October 1, 2001, complied or is 
 43.10  complying with an alternative employment plan under section 
 43.11  256J.49 256J.521, subdivision 1a 3, does not count toward the 
 43.12  60-month limitation on assistance. 
 43.13     Sec. 52.  Minnesota Statutes 2002, section 256J.42, 
 43.14  subdivision 5, is amended to read: 
 43.15     Subd. 5.  [EXEMPTION FOR CERTAIN FAMILIES.] (a) Any cash 
 43.16  assistance received by an assistance unit does not count toward 
 43.17  the 60-month limit on assistance during a month in which the 
 43.18  caregiver is in the category in age 60 or older, including 
 43.19  months during which the caregiver was exempt under section 
 43.20  256J.56, paragraph (a), clause (1). 
 43.21     (b) From July 1, 1997, until the date MFIP is operative in 
 43.22  the caregiver's county of financial responsibility, any cash 
 43.23  assistance received by a caregiver who is complying with 
 43.24  Minnesota Statutes 1996, section 256.73, subdivision 5a, and 
 43.25  Minnesota Statutes 1998, section 256.736, if applicable, does 
 43.26  not count toward the 60-month limit on assistance.  Thereafter, 
 43.27  any cash assistance received by a minor caregiver who is 
 43.28  complying with the requirements of sections 256J.14 and 256J.54, 
 43.29  if applicable, does not count towards the 60-month limit on 
 43.30  assistance. 
 43.31     (c) Any diversionary assistance or emergency assistance 
 43.32  received prior to July 1, 2003, does not count toward the 
 43.33  60-month limit. 
 43.34     (d) Any cash assistance received by an 18- or 19-year-old 
 43.35  caregiver who is complying with the requirements of an 
 43.36  employment plan that includes an education option under section 
 44.1   256J.54 does not count toward the 60-month limit. 
 44.2      (e) Payments provided to meet short-term emergency needs 
 44.3   under section 256J.626 and diversionary work program benefits 
 44.4   provided under section 256J.95 do not count toward the 60-month 
 44.5   time limit. 
 44.6      Sec. 53.  Minnesota Statutes 2002, section 256J.42, 
 44.7   subdivision 6, is amended to read: 
 44.8      Subd. 6.  [CASE REVIEW.] (a) Within 180 days, but not less 
 44.9   than 60 days, before the end of the participant's 60th month on 
 44.10  assistance, the county agency or job counselor must review the 
 44.11  participant's case to determine if the employment plan is still 
 44.12  appropriate or if the participant is exempt under section 
 44.13  256J.56 from the employment and training services component, and 
 44.14  attempt to meet with the participant face-to-face. 
 44.15     (b) During the face-to-face meeting, a county agency or the 
 44.16  job counselor must: 
 44.17     (1) inform the participant how many months of counted 
 44.18  assistance the participant has accrued and when the participant 
 44.19  is expected to reach the 60th month; 
 44.20     (2) explain the hardship extension criteria under section 
 44.21  256J.425 and what the participant should do if the participant 
 44.22  thinks a hardship extension applies; 
 44.23     (3) identify other resources that may be available to the 
 44.24  participant to meet the needs of the family; and 
 44.25     (4) inform the participant of the right to appeal the case 
 44.26  closure under section 256J.40. 
 44.27     (c) If a face-to-face meeting is not possible, the county 
 44.28  agency must send the participant a notice of adverse action as 
 44.29  provided in section 256J.31, subdivisions 4 and 5. 
 44.30     (d) Before a participant's case is closed under this 
 44.31  section, the county must ensure that: 
 44.32     (1) the case has been reviewed by the job counselor's 
 44.33  supervisor or the review team designated in by the county's 
 44.34  approved local service unit plan county to determine if the 
 44.35  criteria for a hardship extension, if requested, were applied 
 44.36  appropriately; and 
 45.1      (2) the county agency or the job counselor attempted to 
 45.2   meet with the participant face-to-face. 
 45.3      Sec. 54.  Minnesota Statutes 2002, section 256J.425, 
 45.4   subdivision 1, is amended to read: 
 45.5      Subdivision 1.  [ELIGIBILITY.] (a) To be eligible for a 
 45.6   hardship extension, a participant in an assistance unit subject 
 45.7   to the time limit under section 256J.42, subdivision 1, in which 
 45.8   any participant has received 60 counted months of assistance, 
 45.9   must be in compliance in the participant's 60th counted month 
 45.10  the participant is applying for the extension.  For purposes of 
 45.11  determining eligibility for a hardship extension, a participant 
 45.12  is in compliance in any month that the participant has not been 
 45.13  sanctioned. 
 45.14     (b) If one participant in a two-parent assistance unit is 
 45.15  determined to be ineligible for a hardship extension, the county 
 45.16  shall give the assistance unit the option of disqualifying the 
 45.17  ineligible participant from MFIP.  In that case, the assistance 
 45.18  unit shall be treated as a one-parent assistance unit and the 
 45.19  assistance unit's MFIP grant shall be calculated using the 
 45.20  shared household standard under section 256J.08, subdivision 82a.
 45.21     Sec. 55.  Minnesota Statutes 2002, section 256J.425, 
 45.22  subdivision 1a, is amended to read: 
 45.23     Subd. 1a.  [REVIEW.] If a county grants a hardship 
 45.24  extension under this section, a county agency shall review the 
 45.25  case every six or 12 months, whichever is appropriate based on 
 45.26  the participant's circumstances and the extension 
 45.27  category.  More frequent reviews shall be required if 
 45.28  eligibility for an extension is based on a condition that is 
 45.29  subject to change in less than six months. 
 45.30     Sec. 56.  Minnesota Statutes 2002, section 256J.425, 
 45.31  subdivision 2, is amended to read: 
 45.32     Subd. 2.  [ILL OR INCAPACITATED.] (a) An assistance unit 
 45.33  subject to the time limit in section 256J.42, subdivision 1, in 
 45.34  which any participant has received 60 counted months of 
 45.35  assistance, is eligible to receive months of assistance under a 
 45.36  hardship extension if the participant who reached the time limit 
 46.1   belongs to any of the following groups: 
 46.2      (1) participants who are suffering from a professionally 
 46.3   certified an illness, injury, or incapacity which has been 
 46.4   certified by a qualified professional when the illness, injury, 
 46.5   or incapacity is expected to continue for more than 30 days 
 46.6   and which prevents the person from obtaining or retaining 
 46.7   employment and who are following.  These participants must 
 46.8   follow the treatment recommendations of the health care provider 
 46.9   qualified professional certifying the illness, injury, or 
 46.10  incapacity; 
 46.11     (2) participants whose presence in the home is required as 
 46.12  a caregiver because of a professionally certified the illness, 
 46.13  injury, or incapacity of another member in the assistance unit, 
 46.14  a relative in the household, or a foster child in the 
 46.15  household and when the illness or incapacity and the need for a 
 46.16  person to provide assistance in the home has been certified by a 
 46.17  qualified professional and is expected to continue for more than 
 46.18  30 days; or 
 46.19     (3) caregivers with a child or an adult in the household 
 46.20  who meets the disability or medical criteria for home care 
 46.21  services under section 256B.0627, subdivision 1, paragraph 
 46.22  (c) (f), or a home and community-based waiver services program 
 46.23  under chapter 256B, or meets the criteria for severe emotional 
 46.24  disturbance under section 245.4871, subdivision 6, or for 
 46.25  serious and persistent mental illness under section 245.462, 
 46.26  subdivision 20, paragraph (c).  Caregivers in this category are 
 46.27  presumed to be prevented from obtaining or retaining employment. 
 46.28     (b) An assistance unit receiving assistance under a 
 46.29  hardship extension under this subdivision may continue to 
 46.30  receive assistance as long as the participant meets the criteria 
 46.31  in paragraph (a), clause (1), (2), or (3). 
 46.32     Sec. 57.  Minnesota Statutes 2002, section 256J.425, 
 46.33  subdivision 3, is amended to read: 
 46.34     Subd. 3.  [HARD-TO-EMPLOY PARTICIPANTS.] An assistance unit 
 46.35  subject to the time limit in section 256J.42, subdivision 1, in 
 46.36  which any participant has received 60 counted months of 
 47.1   assistance, is eligible to receive months of assistance under a 
 47.2   hardship extension if the participant who reached the time limit 
 47.3   belongs to any of the following groups: 
 47.4      (1) a person who is diagnosed by a licensed physician, 
 47.5   psychological practitioner, or other qualified professional, as 
 47.6   mentally retarded or mentally ill, and that condition prevents 
 47.7   the person from obtaining or retaining unsubsidized employment; 
 47.8      (2) a person who: 
 47.9      (i) has been assessed by a vocational specialist or the 
 47.10  county agency to be unemployable for purposes of this 
 47.11  subdivision; or 
 47.12     (ii) has an IQ below 80 who has been assessed by a 
 47.13  vocational specialist or a county agency to be employable, but 
 47.14  not at a level that makes the participant eligible for an 
 47.15  extension under subdivision 4 or,.  The determination of IQ 
 47.16  level must be made by a qualified professional.  In the case of 
 47.17  a non-English-speaking person for whom it is not possible to 
 47.18  provide a determination due to language barriers or absence of 
 47.19  culturally appropriate assessment tools, is determined by a 
 47.20  qualified professional to have an IQ below 80.  A person is 
 47.21  considered employable if positions of employment in the local 
 47.22  labor market exist, regardless of the current availability of 
 47.23  openings for those positions, that the person is capable of 
 47.24  performing:  (A) the determination must be made by a qualified 
 47.25  professional with experience conducting culturally appropriate 
 47.26  assessments, whenever possible; (B) the county may accept 
 47.27  reports that identify an IQ range as opposed to a specific 
 47.28  score; (C) these reports must include a statement of confidence 
 47.29  in the results; 
 47.30     (3) a person who is determined by the county agency a 
 47.31  qualified professional to be learning disabled or, and the 
 47.32  disability severely limits the person's ability to obtain, 
 47.33  perform, or maintain suitable employment.  For purposes of the 
 47.34  initial approval of a learning disability extension, the 
 47.35  determination must have been made or confirmed within the 
 47.36  previous 12 months.  In the case of a non-English-speaking 
 48.1   person for whom it is not possible to provide a medical 
 48.2   diagnosis due to language barriers or absence of culturally 
 48.3   appropriate assessment tools, is determined by a qualified 
 48.4   professional to have a learning disability.  If a rehabilitation 
 48.5   plan for the person is developed or approved by the county 
 48.6   agency, the plan must be incorporated into the employment plan.  
 48.7   However, a rehabilitation plan does not replace the requirement 
 48.8   to develop and comply with an employment plan under section 
 48.9   256J.52.  For purposes of this section, "learning disabled" 
 48.10  means the applicant or recipient has a disorder in one or more 
 48.11  of the psychological processes involved in perceiving, 
 48.12  understanding, or using concepts through verbal language or 
 48.13  nonverbal means.  The disability must severely limit the 
 48.14  applicant or recipient in obtaining, performing, or maintaining 
 48.15  suitable employment.  Learning disabled does not include 
 48.16  learning problems that are primarily the result of visual, 
 48.17  hearing, or motor handicaps; mental retardation; emotional 
 48.18  disturbance; or due to environmental, cultural, or economic 
 48.19  disadvantage:  (i) the determination must be made by a qualified 
 48.20  professional with experience conducting culturally appropriate 
 48.21  assessments, whenever possible; and (ii) these reports must 
 48.22  include a statement of confidence in the results.  If a 
 48.23  rehabilitation plan for a participant extended as learning 
 48.24  disabled is developed or approved by the county agency, the plan 
 48.25  must be incorporated into the employment plan.  However, a 
 48.26  rehabilitation plan does not replace the requirement to develop 
 48.27  and comply with an employment plan under section 256J.521; or 
 48.28     (4) a person who is a victim of has been granted a family 
 48.29  violence as defined in section 256J.49, subdivision 2 waiver, 
 48.30  and who is participating in complying with an alternative 
 48.31  employment plan under section 256J.49 256J.521, subdivision 1a 
 48.32  3.  
 48.33     Sec. 58.  Minnesota Statutes 2002, section 256J.425, 
 48.34  subdivision 4, is amended to read: 
 48.35     Subd. 4.  [EMPLOYED PARTICIPANTS.] (a) An assistance unit 
 48.36  subject to the time limit under section 256J.42, subdivision 1, 
 49.1   in which any participant has received 60 months of assistance, 
 49.2   is eligible to receive assistance under a hardship extension if 
 49.3   the participant who reached the time limit belongs to: 
 49.4      (1) a one-parent assistance unit in which the participant 
 49.5   is participating in work activities for at least 30 hours per 
 49.6   week, of which an average of at least 25 hours per week every 
 49.7   month are spent participating in employment; 
 49.8      (2) a two-parent assistance unit in which the participants 
 49.9   are participating in work activities for at least 55 hours per 
 49.10  week, of which an average of at least 45 hours per week every 
 49.11  month are spent participating in employment; or 
 49.12     (3) an assistance unit in which a participant is 
 49.13  participating in employment for fewer hours than those specified 
 49.14  in clause (1), and the participant submits verification from a 
 49.15  health care provider qualified professional, in a form 
 49.16  acceptable to the commissioner, stating that the number of hours 
 49.17  the participant may work is limited due to illness or 
 49.18  disability, as long as the participant is participating in 
 49.19  employment for at least the number of hours specified by 
 49.20  the health care provider qualified professional.  The 
 49.21  participant must be following the treatment recommendations of 
 49.22  the health care provider qualified professional providing the 
 49.23  verification.  The commissioner shall develop a form to be 
 49.24  completed and signed by the health care provider qualified 
 49.25  professional, documenting the diagnosis and any additional 
 49.26  information necessary to document the functional limitations of 
 49.27  the participant that limit work hours.  If the participant is 
 49.28  part of a two-parent assistance unit, the other parent must be 
 49.29  treated as a one-parent assistance unit for purposes of meeting 
 49.30  the work requirements under this subdivision. 
 49.31     (b) For purposes of this section, employment means: 
 49.32     (1) unsubsidized employment under section 256J.49, 
 49.33  subdivision 13, clause (1); 
 49.34     (2) subsidized employment under section 256J.49, 
 49.35  subdivision 13, clause (2); 
 49.36     (3) on-the-job training under section 256J.49, subdivision 
 50.1   13, clause (4) (2); 
 50.2      (4) an apprenticeship under section 256J.49, subdivision 
 50.3   13, clause (19) (1); 
 50.4      (5) supported work.  For purposes of this section, 
 50.5   "supported work" means services supporting a participant on the 
 50.6   job which include, but are not limited to, supervision, job 
 50.7   coaching, and subsidized wages under section 256J.49, 
 50.8   subdivision 13, clause (2); 
 50.9      (6) a combination of clauses (1) to (5); or 
 50.10     (7) child care under section 256J.49, subdivision 13, 
 50.11  clause (25) (7), if it is in combination with paid employment. 
 50.12     (c) If a participant is complying with a child protection 
 50.13  plan under chapter 260C, the number of hours required under the 
 50.14  child protection plan count toward the number of hours required 
 50.15  under this subdivision.  
 50.16     (d) The county shall provide the opportunity for subsidized 
 50.17  employment to participants needing that type of employment 
 50.18  within available appropriations. 
 50.19     (e) To be eligible for a hardship extension for employed 
 50.20  participants under this subdivision, a participant in a 
 50.21  one-parent assistance unit or both parents in a two-parent 
 50.22  assistance unit must be in compliance for at least ten out of 
 50.23  the 12 months immediately preceding the participant's 61st month 
 50.24  on assistance.  If only one parent in a two-parent assistance 
 50.25  unit fails to be in compliance ten out of the 12 months 
 50.26  immediately preceding the participant's 61st month, the county 
 50.27  shall give the assistance unit the option of disqualifying the 
 50.28  noncompliant parent.  If the noncompliant participant is 
 50.29  disqualified, the assistance unit must be treated as a 
 50.30  one-parent assistance unit for the purposes of meeting the work 
 50.31  requirements under this subdivision and the assistance unit's 
 50.32  MFIP grant shall be calculated using the shared household 
 50.33  standard under section 256J.08, subdivision 82a. 
 50.34     (f) The employment plan developed under section 256J.52 
 50.35  256J.521, subdivision 5 2, for participants under this 
 50.36  subdivision must contain the number of hours specified in 
 51.1   paragraph (a) related to employment and work activities.  The 
 51.2   job counselor and the participant must sign the employment plan 
 51.3   to indicate agreement between the job counselor and the 
 51.4   participant on the contents of the plan. 
 51.5      (g) Participants who fail to meet the requirements in 
 51.6   paragraph (a), without good cause under section 256J.57, shall 
 51.7   be sanctioned or permanently disqualified under subdivision 6.  
 51.8   Good cause may only be granted for that portion of the month for 
 51.9   which the good cause reason applies.  Participants must meet all 
 51.10  remaining requirements in the approved employment plan or be 
 51.11  subject to sanction or permanent disqualification.  
 51.12     (h) If the noncompliance with an employment plan is due to 
 51.13  the involuntary loss of employment, the participant is exempt 
 51.14  from the hourly employment requirement under this subdivision 
 51.15  for one month.  Participants must meet all remaining 
 51.16  requirements in the approved employment plan or be subject to 
 51.17  sanction or permanent disqualification.  This exemption is 
 51.18  available to one-parent assistance units a participant two times 
 51.19  in a 12-month period, and two-parent assistance units, two times 
 51.20  per parent in a 12-month period. 
 51.21     (i) This subdivision expires on June 30, 2004. 
 51.22     Sec. 59.  Minnesota Statutes 2002, section 256J.425, 
 51.23  subdivision 6, is amended to read: 
 51.24     Subd. 6.  [SANCTIONS FOR EXTENDED CASES.] (a) If one or 
 51.25  both participants in an assistance unit receiving assistance 
 51.26  under subdivision 3 or 4 are not in compliance with the 
 51.27  employment and training service requirements in sections 256J.52 
 51.28  256J.521 to 256J.55 256J.57, the sanctions under this 
 51.29  subdivision apply.  For a first occurrence of noncompliance, an 
 51.30  assistance unit must be sanctioned under section 256J.46, 
 51.31  subdivision 1, paragraph (d) (c), clause (1).  For a second or 
 51.32  third occurrence of noncompliance, the assistance unit must be 
 51.33  sanctioned under section 256J.46, subdivision 1, 
 51.34  paragraph (d) (c), clause (2).  For a fourth occurrence of 
 51.35  noncompliance, the assistance unit is disqualified from MFIP.  
 51.36  If a participant is determined to be out of compliance, the 
 52.1   participant may claim a good cause exception under section 
 52.2   256J.57, however, the participant may not claim an exemption 
 52.3   under section 256J.56.  
 52.4      (b) If both participants in a two-parent assistance unit 
 52.5   are out of compliance at the same time, it is considered one 
 52.6   occurrence of noncompliance.  
 52.7      Sec. 60.  Minnesota Statutes 2002, section 256J.425, 
 52.8   subdivision 7, is amended to read: 
 52.9      Subd. 7.  [STATUS OF DISQUALIFIED PARTICIPANTS.] (a) An 
 52.10  assistance unit that is disqualified under subdivision 6, 
 52.11  paragraph (a), may be approved for MFIP if the participant 
 52.12  complies with MFIP program requirements and demonstrates 
 52.13  compliance for up to one month.  No assistance shall be paid 
 52.14  during this period. 
 52.15     (b) An assistance unit that is disqualified under 
 52.16  subdivision 6, paragraph (a), and that reapplies under paragraph 
 52.17  (a) is subject to sanction under section 256J.46, subdivision 1, 
 52.18  paragraph (d) (c), clause (1), for a first occurrence of 
 52.19  noncompliance.  A subsequent occurrence of noncompliance results 
 52.20  in a permanent disqualification. 
 52.21     (c) If one participant in a two-parent assistance unit 
 52.22  receiving assistance under a hardship extension under 
 52.23  subdivision 3 or 4 is determined to be out of compliance with 
 52.24  the employment and training services requirements under sections 
 52.25  256J.52 256J.521 to 256J.55 256J.57, the county shall give the 
 52.26  assistance unit the option of disqualifying the noncompliant 
 52.27  participant from MFIP.  In that case, the assistance unit shall 
 52.28  be treated as a one-parent assistance unit for the purposes of 
 52.29  meeting the work requirements under subdivision 4 and the 
 52.30  assistance unit's MFIP grant shall be calculated using the 
 52.31  shared household standard under section 256J.08, subdivision 
 52.32  82a.  An applicant who is disqualified from receiving assistance 
 52.33  under this paragraph may reapply under paragraph (a).  If a 
 52.34  participant is disqualified from MFIP under this subdivision a 
 52.35  second time, the participant is permanently disqualified from 
 52.36  MFIP. 
 53.1      (d) Prior to a disqualification under this subdivision, a 
 53.2   county agency must review the participant's case to determine if 
 53.3   the employment plan is still appropriate and attempt to meet 
 53.4   with the participant face-to-face.  If a face-to-face meeting is 
 53.5   not conducted, the county agency must send the participant a 
 53.6   notice of adverse action as provided in section 256J.31.  During 
 53.7   the face-to-face meeting, the county agency must: 
 53.8      (1) determine whether the continued noncompliance can be 
 53.9   explained and mitigated by providing a needed preemployment 
 53.10  activity, as defined in section 256J.49, subdivision 13, clause 
 53.11  (16), or services under a local intervention grant for 
 53.12  self-sufficiency under section 256J.625 (9); 
 53.13     (2) determine whether the participant qualifies for a good 
 53.14  cause exception under section 256J.57; 
 53.15     (3) inform the participant of the family violence waiver 
 53.16  criteria and make appropriate referrals if the waiver is 
 53.17  requested; 
 53.18     (4) inform the participant of the participant's sanction 
 53.19  status and explain the consequences of continuing noncompliance; 
 53.20     (4) (5) identify other resources that may be available to 
 53.21  the participant to meet the needs of the family; and 
 53.22     (5) (6) inform the participant of the right to appeal under 
 53.23  section 256J.40. 
 53.24     Sec. 61.  Minnesota Statutes 2002, section 256J.45, 
 53.25  subdivision 2, is amended to read: 
 53.26     Subd. 2.  [GENERAL INFORMATION.] The MFIP orientation must 
 53.27  consist of a presentation that informs caregivers of: 
 53.28     (1) the necessity to obtain immediate employment; 
 53.29     (2) the work incentives under MFIP, including the 
 53.30  availability of the federal earned income tax credit and the 
 53.31  Minnesota working family tax credit; 
 53.32     (3) the requirement to comply with the employment plan and 
 53.33  other requirements of the employment and training services 
 53.34  component of MFIP, including a description of the range of work 
 53.35  and training activities that are allowable under MFIP to meet 
 53.36  the individual needs of participants; 
 54.1      (4) the consequences for failing to comply with the 
 54.2   employment plan and other program requirements, and that the 
 54.3   county agency may not impose a sanction when failure to comply 
 54.4   is due to the unavailability of child care or other 
 54.5   circumstances where the participant has good cause under 
 54.6   subdivision 3; 
 54.7      (5) the rights, responsibilities, and obligations of 
 54.8   participants; 
 54.9      (6) the types and locations of child care services 
 54.10  available through the county agency; 
 54.11     (7) the availability and the benefits of the early 
 54.12  childhood health and developmental screening under sections 
 54.13  121A.16 to 121A.19; 123B.02, subdivision 16; and 123B.10; 
 54.14     (8) the caregiver's eligibility for transition year child 
 54.15  care assistance under section 119B.05; 
 54.16     (9) the caregiver's eligibility for extended medical 
 54.17  assistance when the caregiver loses eligibility for MFIP due to 
 54.18  increased earnings or increased child or spousal support the 
 54.19  availability of all health care programs, including transitional 
 54.20  medical assistance; 
 54.21     (10) the caregiver's option to choose an employment and 
 54.22  training provider and information about each provider, including 
 54.23  but not limited to, services offered, program components, job 
 54.24  placement rates, job placement wages, and job retention rates; 
 54.25     (11) the caregiver's option to request approval of an 
 54.26  education and training plan according to section 256J.52 
 54.27  256J.53; 
 54.28     (12) the work study programs available under the higher 
 54.29  education system; and 
 54.30     (13) effective October 1, 2001, information about the 
 54.31  60-month time limit exemption and waivers of regular employment 
 54.32  and training requirements for family violence victims exemptions 
 54.33  under the family violence waiver and referral information about 
 54.34  shelters and programs for victims of family violence. 
 54.35     Sec. 62.  Minnesota Statutes 2002, section 256J.46, 
 54.36  subdivision 1, is amended to read: 
 55.1      Subdivision 1.  [PARTICIPANTS NOT COMPLYING WITH PROGRAM 
 55.2   REQUIREMENTS.] (a) A participant who fails without good 
 55.3   cause under section 256J.57 to comply with the requirements of 
 55.4   this chapter, and who is not subject to a sanction under 
 55.5   subdivision 2, shall be subject to a sanction as provided in 
 55.6   this subdivision.  Prior to the imposition of a sanction, a 
 55.7   county agency shall provide a notice of intent to sanction under 
 55.8   section 256J.57, subdivision 2, and, when applicable, a notice 
 55.9   of adverse action as provided in section 256J.31. 
 55.10     (b) A participant who fails to comply with an alternative 
 55.11  employment plan must have the plan reviewed by a person trained 
 55.12  in domestic violence and a job counselor or the county agency to 
 55.13  determine if components of the alternative employment plan are 
 55.14  still appropriate.  If the activities are no longer appropriate, 
 55.15  the plan must be revised with a person trained in domestic 
 55.16  violence and approved by a job counselor or the county agency.  
 55.17  A participant who fails to comply with a plan that is determined 
 55.18  not to need revision will lose their exemption and be required 
 55.19  to comply with regular employment services activities.  
 55.20     (c) A sanction under this subdivision becomes effective the 
 55.21  month following the month in which a required notice is given.  
 55.22  A sanction must not be imposed when a participant comes into 
 55.23  compliance with the requirements for orientation under section 
 55.24  256J.45 or third-party liability for medical services under 
 55.25  section 256J.30, subdivision 10, prior to the effective date of 
 55.26  the sanction.  A sanction must not be imposed when a participant 
 55.27  comes into compliance with the requirements for employment and 
 55.28  training services under sections 256J.49 256J.515 to 
 55.29  256J.55 256J.57 ten days prior to the effective date of the 
 55.30  sanction.  For purposes of this subdivision, each month that a 
 55.31  participant fails to comply with a requirement of this chapter 
 55.32  shall be considered a separate occurrence of noncompliance.  A 
 55.33  participant who has had one or more sanctions imposed must 
 55.34  remain in compliance with the provisions of this chapter for six 
 55.35  months in order for a subsequent occurrence of noncompliance to 
 55.36  be considered a first occurrence.  If both participants in a 
 56.1   two-parent assistance unit are out of compliance at the same 
 56.2   time, it is considered one occurrence of noncompliance.  
 56.3      (d) (c) Sanctions for noncompliance shall be imposed as 
 56.4   follows: 
 56.5      (1) For the first occurrence of noncompliance by a 
 56.6   participant in an assistance unit, the assistance unit's grant 
 56.7   shall be reduced by ten percent of the MFIP standard of need for 
 56.8   an assistance unit of the same size with the residual grant paid 
 56.9   to the participant.  The reduction in the grant amount must be 
 56.10  in effect for a minimum of one month and shall be removed in the 
 56.11  month following the month that the participant returns to 
 56.12  compliance.  
 56.13     (2) For a second or subsequent, third, fourth, fifth, or 
 56.14  sixth occurrence of noncompliance by a participant in an 
 56.15  assistance unit, or when each of the participants in a 
 56.16  two-parent assistance unit have a first occurrence of 
 56.17  noncompliance at the same time, the assistance unit's shelter 
 56.18  costs shall be vendor paid up to the amount of the cash portion 
 56.19  of the MFIP grant for which the assistance unit is eligible.  At 
 56.20  county option, the assistance unit's utilities may also be 
 56.21  vendor paid up to the amount of the cash portion of the MFIP 
 56.22  grant remaining after vendor payment of the assistance unit's 
 56.23  shelter costs.  The residual amount of the grant after vendor 
 56.24  payment, if any, must be reduced by an amount equal to 30 
 56.25  percent of the MFIP standard of need for an assistance unit of 
 56.26  the same size before the residual grant is paid to the 
 56.27  assistance unit.  The reduction in the grant amount must be in 
 56.28  effect for a minimum of one month and shall be removed in the 
 56.29  month following the month that the participant in a one-parent 
 56.30  assistance unit returns to compliance.  In a two-parent 
 56.31  assistance unit, the grant reduction must be in effect for a 
 56.32  minimum of one month and shall be removed in the month following 
 56.33  the month both participants return to compliance.  The vendor 
 56.34  payment of shelter costs and, if applicable, utilities shall be 
 56.35  removed six months after the month in which the participant or 
 56.36  participants return to compliance.  If an assistance unit is 
 57.1   sanctioned under this clause, the participant's case file must 
 57.2   be reviewed as required under paragraph (e) to determine if the 
 57.3   employment plan is still appropriate. 
 57.4      (e) When a sanction under paragraph (d), clause (2), is in 
 57.5   effect (d) For a seventh occurrence of noncompliance by a 
 57.6   participant in an assistance unit, or when the participants in a 
 57.7   two-parent assistance unit have a total of seven occurrences of 
 57.8   noncompliance, the county agency shall close the MFIP assistance 
 57.9   unit's financial assistance case, both the cash and food 
 57.10  portions.  The case must remain closed for a minimum of one full 
 57.11  month.  Closure under this paragraph does not make a participant 
 57.12  automatically ineligible for food support, if otherwise eligible.
 57.13  Before the case is closed, the county agency must review the 
 57.14  participant's case to determine if the employment plan is still 
 57.15  appropriate and attempt to meet with the participant 
 57.16  face-to-face.  The participant may bring an advocate to the 
 57.17  face-to-face meeting.  If a face-to-face meeting is not 
 57.18  conducted, the county agency must send the participant a written 
 57.19  notice that includes the information required under clause (1). 
 57.20     (1) During the face-to-face meeting, the county agency must:
 57.21     (i) determine whether the continued noncompliance can be 
 57.22  explained and mitigated by providing a needed preemployment 
 57.23  activity, as defined in section 256J.49, subdivision 13, clause 
 57.24  (16), or services under a local intervention grant for 
 57.25  self-sufficiency under section 256J.625 (9); 
 57.26     (ii) determine whether the participant qualifies for a good 
 57.27  cause exception under section 256J.57, or if the sanction is for 
 57.28  noncooperation with child support requirements, determine if the 
 57.29  participant qualifies for a good cause exemption under section 
 57.30  256.741, subdivision 10; 
 57.31     (iii) determine whether the participant qualifies for an 
 57.32  exemption under section 256J.56 or the work activities in the 
 57.33  employment plan are appropriate based on the criteria in section 
 57.34  256J.521, subdivision 2 or 3; 
 57.35     (iv) determine whether the participant qualifies for an 
 57.36  exemption from regular employment services requirements for 
 58.1   victims of family violence under section 256J.52, subdivision 
 58.2   6 determine whether the participant qualifies for the family 
 58.3   violence waiver; 
 58.4      (v) inform the participant of the participant's sanction 
 58.5   status and explain the consequences of continuing noncompliance; 
 58.6      (vi) identify other resources that may be available to the 
 58.7   participant to meet the needs of the family; and 
 58.8      (vii) inform the participant of the right to appeal under 
 58.9   section 256J.40. 
 58.10     (2) If the lack of an identified activity or service can 
 58.11  explain the noncompliance, the county must work with the 
 58.12  participant to provide the identified activity, and the county 
 58.13  must restore the participant's grant amount to the full amount 
 58.14  for which the assistance unit is eligible.  The grant must be 
 58.15  restored retroactively to the first day of the month in which 
 58.16  the participant was found to lack preemployment activities or to 
 58.17  qualify for an exemption under section 256J.56, a good cause 
 58.18  exception under section 256J.57, or an exemption for victims of 
 58.19  family violence under section 256J.52, subdivision 6. 
 58.20     (3) If the participant is found to qualify for a good cause 
 58.21  exception or an exemption, the county must restore the 
 58.22  participant's grant to the full amount for which the assistance 
 58.23  unit is eligible.  The grant must be restored to the full amount 
 58.24  for which the assistance unit is eligible retroactively to the 
 58.25  first day of the month in which the participant was found to 
 58.26  lack preemployment activities or to qualify for an exemption 
 58.27  under section 256J.56, a family violence waiver, or for a good 
 58.28  cause exemption under section 256.741, subdivision 10, or 
 58.29  256J.57. 
 58.30     (e) For the purpose of applying sanctions under this 
 58.31  section, only occurrences of noncompliance that occur after the 
 58.32  effective date of this section shall be considered.  If the 
 58.33  participant is in 30 percent sanction in the month this section 
 58.34  takes effect, that month counts as the first occurrence for 
 58.35  purposes of applying the sanctions under this section, but the 
 58.36  sanction shall remain at 30 percent for that month. 
 59.1      (f) An assistance unit whose case is closed under paragraph 
 59.2   (d) or (g), or under an approved county option sanction plan 
 59.3   under section 256J.462 in effect June 30, 2003, or a county 
 59.4   pilot project under Laws 2000, chapter 488, article 10, section 
 59.5   29, in effect June 30, 2003, may reapply for MFIP and shall be 
 59.6   eligible if the participant complies with MFIP program 
 59.7   requirements and demonstrates compliance for up to one month.  
 59.8   No assistance shall be paid during this period. 
 59.9      (g) An assistance unit whose case has been closed for 
 59.10  noncompliance, that reapplies under paragraph (f) is subject to 
 59.11  sanction under paragraph (c), clause (2), for a first occurrence 
 59.12  of noncompliance.  Any subsequent occurrence of noncompliance 
 59.13  shall result in case closure under paragraph (d). 
 59.14     Sec. 63.  Minnesota Statutes 2002, section 256J.46, 
 59.15  subdivision 2, is amended to read: 
 59.16     Subd. 2.  [SANCTIONS FOR REFUSAL TO COOPERATE WITH SUPPORT 
 59.17  REQUIREMENTS.] The grant of an MFIP caregiver who refuses to 
 59.18  cooperate, as determined by the child support enforcement 
 59.19  agency, with support requirements under section 256.741, shall 
 59.20  be subject to sanction as specified in this subdivision and 
 59.21  subdivision 1.  For a first occurrence of noncooperation, the 
 59.22  assistance unit's grant must be reduced by 25 30 percent of the 
 59.23  applicable MFIP standard of need.  Subsequent occurrences of 
 59.24  noncooperation shall be subject to sanction under subdivision 1, 
 59.25  paragraphs (c), clause (2), and (d).  The residual amount of the 
 59.26  grant, if any, must be paid to the caregiver.  A sanction under 
 59.27  this subdivision becomes effective the first month following the 
 59.28  month in which a required notice is given.  A sanction must not 
 59.29  be imposed when a caregiver comes into compliance with the 
 59.30  requirements under section 256.741 prior to the effective date 
 59.31  of the sanction.  The sanction shall be removed in the month 
 59.32  following the month that the caregiver cooperates with the 
 59.33  support requirements.  Each month that an MFIP caregiver fails 
 59.34  to comply with the requirements of section 256.741 must be 
 59.35  considered a separate occurrence of noncompliance for the 
 59.36  purpose of applying sanctions under subdivision 1, paragraphs 
 60.1   (c), clause (2), and (d).  An MFIP caregiver who has had one or 
 60.2   more sanctions imposed must remain in compliance with the 
 60.3   requirements of section 256.741 for six months in order for a 
 60.4   subsequent sanction to be considered a first occurrence. 
 60.5      Sec. 64.  Minnesota Statutes 2002, section 256J.46, 
 60.6   subdivision 2a, is amended to read: 
 60.7      Subd. 2a.  [DUAL SANCTIONS.] (a) Notwithstanding the 
 60.8   provisions of subdivisions 1 and 2, for a participant subject to 
 60.9   a sanction for refusal to comply with child support requirements 
 60.10  under subdivision 2 and subject to a concurrent sanction for 
 60.11  refusal to cooperate with other program requirements under 
 60.12  subdivision 1, sanctions shall be imposed in the manner 
 60.13  prescribed in this subdivision. 
 60.14     A participant who has had one or more sanctions imposed 
 60.15  under this subdivision must remain in compliance with the 
 60.16  provisions of this chapter for six months in order for a 
 60.17  subsequent occurrence of noncompliance to be considered a first 
 60.18  occurrence.  Any vendor payment of shelter costs or utilities 
 60.19  under this subdivision must remain in effect for six months 
 60.20  after the month in which the participant is no longer subject to 
 60.21  sanction under subdivision 1. 
 60.22     (b) If the participant was subject to sanction for: 
 60.23     (i) noncompliance under subdivision 1 before being subject 
 60.24  to sanction for noncooperation under subdivision 2; or 
 60.25     (ii) noncooperation under subdivision 2 before being 
 60.26  subject to sanction for noncompliance under subdivision 1, the 
 60.27  participant is considered to have a second occurrence of 
 60.28  noncompliance and shall be sanctioned as provided in subdivision 
 60.29  1, paragraph (d) (c), clause (2).  Each subsequent occurrence of 
 60.30  noncompliance shall be considered one additional occurrence and 
 60.31  shall be subject to the applicable level of sanction under 
 60.32  subdivision 1, paragraph (d), or section 256J.462.  The 
 60.33  requirement that the county conduct a review as specified in 
 60.34  subdivision 1, paragraph (e) (d), remains in effect. 
 60.35     (c) A participant who first becomes subject to sanction 
 60.36  under both subdivisions 1 and 2 in the same month is subject to 
 61.1   sanction as follows: 
 61.2      (i) in the first month of noncompliance and noncooperation, 
 61.3   the participant's grant must be reduced by 25 30 percent of the 
 61.4   applicable MFIP standard of need, with any residual amount paid 
 61.5   to the participant; 
 61.6      (ii) in the second and subsequent months of noncompliance 
 61.7   and noncooperation, the participant shall be subject to the 
 61.8   applicable level of sanction under subdivision 1, paragraph (d), 
 61.9   or section 256J.462. 
 61.10     The requirement that the county conduct a review as 
 61.11  specified in subdivision 1, paragraph (e) (d), remains in effect.
 61.12     (d) A participant remains subject to sanction under 
 61.13  subdivision 2 if the participant: 
 61.14     (i) returns to compliance and is no longer subject to 
 61.15  sanction under subdivision 1 or section 256J.462 for 
 61.16  noncompliance with section 256J.45 or sections 256J.515 to 
 61.17  256J.57; or 
 61.18     (ii) has the sanction under subdivision 1, paragraph (d), 
 61.19  or section 256J.462 for noncompliance with section 256J.45 or 
 61.20  sections 256J.515 to 256J.57 removed upon completion of the 
 61.21  review under subdivision 1, paragraph (e). 
 61.22     A participant remains subject to the applicable level of 
 61.23  sanction under subdivision 1, paragraph (d), or section 256J.462 
 61.24  if the participant cooperates and is no longer subject to 
 61.25  sanction under subdivision 2. 
 61.26     Sec. 65.  Minnesota Statutes 2002, section 256J.49, 
 61.27  subdivision 4, is amended to read: 
 61.28     Subd. 4.  [EMPLOYMENT AND TRAINING SERVICE PROVIDER.] 
 61.29  "Employment and training service provider" means: 
 61.30     (1) a public, private, or nonprofit employment and training 
 61.31  agency certified by the commissioner of economic security under 
 61.32  sections 268.0122, subdivision 3, and 268.871, subdivision 1, or 
 61.33  is approved under section 256J.51 and is included in the county 
 61.34  plan service agreement submitted under section 256J.50 256J.626, 
 61.35  subdivision 7 4; 
 61.36     (2) a public, private, or nonprofit agency that is not 
 62.1   certified by the commissioner under clause (1), but with which a 
 62.2   county has contracted to provide employment and training 
 62.3   services and which is included in the county's plan service 
 62.4   agreement submitted under section 256J.50 256J.626, 
 62.5   subdivision 7 4; or 
 62.6      (3) a county agency, if the county has opted to provide 
 62.7   employment and training services and the county has indicated 
 62.8   that fact in the plan service agreement submitted under section 
 62.9   256J.50 256J.626, subdivision 7 4. 
 62.10     Notwithstanding section 268.871, an employment and training 
 62.11  services provider meeting this definition may deliver employment 
 62.12  and training services under this chapter. 
 62.13     Sec. 66.  Minnesota Statutes 2002, section 256J.49, 
 62.14  subdivision 5, is amended to read: 
 62.15     Subd. 5.  [EMPLOYMENT PLAN.] "Employment plan" means a plan 
 62.16  developed by the job counselor and the participant which 
 62.17  identifies the participant's most direct path to unsubsidized 
 62.18  employment, lists the specific steps that the caregiver will 
 62.19  take on that path, and includes a timetable for the completion 
 62.20  of each step.  The plan should also identify any subsequent 
 62.21  steps that support long-term economic stability.  For 
 62.22  participants who request and qualify for a family violence 
 62.23  waiver, an employment plan must be developed by the job 
 62.24  counselor and the participant, and in consultation with a person 
 62.25  trained in domestic violence and follow the employment plan 
 62.26  provisions in section 256J.521, subdivision 3. 
 62.27     Sec. 67.  Minnesota Statutes 2002, section 256J.49, is 
 62.28  amended by adding a subdivision to read: 
 62.29     Subd. 6a.  [FUNCTIONAL WORK LITERACY.] "Functional work 
 62.30  literacy" means an intensive English as a second language 
 62.31  program that is work focused and offers at least 20 hours of 
 62.32  class time per week. 
 62.33     Sec. 68.  Minnesota Statutes 2002, section 256J.49, 
 62.34  subdivision 9, is amended to read: 
 62.35     Subd. 9.  [PARTICIPANT.] "Participant" means a recipient of 
 62.36  MFIP assistance who participates or is required to participate 
 63.1   in employment and training services under sections 256J.515 to 
 63.2   256J.57 and 256J.95. 
 63.3      Sec. 69.  Minnesota Statutes 2002, section 256J.49, is 
 63.4   amended by adding a subdivision to read: 
 63.5      Subd. 12a.  [SUPPORTED WORK.] "Supported work" means a 
 63.6   subsidized or unsubsidized work experience placement with a 
 63.7   public or private sector employer, which may include services 
 63.8   such as individualized supervision and job coaching to support 
 63.9   the participant on the job. 
 63.10     Sec. 70.  Minnesota Statutes 2002, section 256J.49, 
 63.11  subdivision 13, is amended to read: 
 63.12     Subd. 13.  [WORK ACTIVITY.] "Work activity" means any 
 63.13  activity in a participant's approved employment plan that is 
 63.14  tied to the participant's leads to employment goal.  For 
 63.15  purposes of the MFIP program, any activity that is included in a 
 63.16  participant's approved employment plan meets this includes 
 63.17  activities that meet the definition of work activity as counted 
 63.18  under the federal participation standards requirements of TANF.  
 63.19  Work activity includes, but is not limited to: 
 63.20     (1) unsubsidized employment, including work study and paid 
 63.21  apprenticeships or internships; 
 63.22     (2) subsidized private sector or public sector employment, 
 63.23  including grant diversion as specified in section 256J.69, 
 63.24  on-the-job training as specified in section 256J.66, the 
 63.25  self-employment investment demonstration program (SEID) as 
 63.26  specified in section 256J.65, paid work experience, and 
 63.27  supported work when a wage subsidy is provided; 
 63.28     (3) unpaid work experience, including CWEP community 
 63.29  service, volunteer work, the community work experience program 
 63.30  as specified in section 256J.67, unpaid apprenticeships or 
 63.31  internships, and including work associated with the refurbishing 
 63.32  of publicly assisted housing if sufficient private sector 
 63.33  employment is not available supported work when a wage subsidy 
 63.34  is not provided; 
 63.35     (4) on-the-job training as specified in section 256J.66 job 
 63.36  search including job readiness assistance, job clubs, job 
 64.1   placement, job-related counseling, and job retention services; 
 64.2      (5) job search, either supervised or unsupervised; 
 64.3      (6) job readiness assistance; 
 64.4      (7) job clubs, including job search workshops; 
 64.5      (8) job placement; 
 64.6      (9) job development; 
 64.7      (10) job-related counseling; 
 64.8      (11) job coaching; 
 64.9      (12) job retention services; 
 64.10     (13) job-specific training or education; 
 64.11     (14) job skills training directly related to employment; 
 64.12     (15) the self-employment investment demonstration (SEID), 
 64.13  as specified in section 256J.65; 
 64.14     (16) preemployment activities, based on availability and 
 64.15  resources, such as volunteer work, literacy programs and related 
 64.16  activities, citizenship classes, English as a second language 
 64.17  (ESL) classes as limited by the provisions of section 256J.52, 
 64.18  subdivisions 3, paragraph (d), and 5, paragraph (c), or 
 64.19  participation in dislocated worker services, chemical dependency 
 64.20  treatment, mental health services, peer group networks, 
 64.21  displaced homemaker programs, strength-based resiliency 
 64.22  training, parenting education, or other programs designed to 
 64.23  help families reach their employment goals and enhance their 
 64.24  ability to care for their children; 
 64.25     (17) community service programs; 
 64.26     (18) vocational educational training or educational 
 64.27  programs that can reasonably be expected to lead to employment, 
 64.28  as limited by the provisions of section 256J.53; 
 64.29     (19) apprenticeships; 
 64.30     (20) satisfactory attendance in general educational 
 64.31  development diploma classes or an adult diploma program; 
 64.32     (21) satisfactory attendance at secondary school, if the 
 64.33  participant has not received a high school diploma; 
 64.34     (22) adult basic education classes; 
 64.35     (23) internships; 
 64.36     (24) bilingual employment and training services; 
 65.1      (25) providing child care services to a participant who is 
 65.2   working in a community service program; and 
 65.3      (26) activities included in an alternative employment plan 
 65.4   that is developed under section 256J.52, subdivision 6. 
 65.5      (5) job readiness education, including English as a second 
 65.6   language (ESL) or functional work literacy classes as limited by 
 65.7   the provisions of section 256J.531, subdivision 2, general 
 65.8   educational development (GED) course work, high school 
 65.9   completion, and adult basic education as limited by the 
 65.10  provisions of section 256J.531, subdivision 1; 
 65.11     (6) job skills training directly related to employment, 
 65.12  including education and training that can reasonably be expected 
 65.13  to lead to employment, as limited by the provisions of section 
 65.14  256J.53; 
 65.15     (7) providing child care services to a participant who is 
 65.16  working in a community service program; 
 65.17     (8) activities included in the employment plan that is 
 65.18  developed under section 256J.521, subdivision 3; and 
 65.19     (9) preemployment activities including chemical and mental 
 65.20  health assessments, treatment, and services; learning 
 65.21  disabilities services; child protective services; family 
 65.22  stabilization services; or other programs designed to enhance 
 65.23  employability. 
 65.24     Sec. 71.  Minnesota Statutes 2002, section 256J.50, 
 65.25  subdivision 1, is amended to read: 
 65.26     Subdivision 1.  [EMPLOYMENT AND TRAINING SERVICES COMPONENT 
 65.27  OF MFIP.] (a) By January 1, 1998, Each county must develop and 
 65.28  implement provide an employment and training services component 
 65.29  of MFIP which is designed to put participants on the most direct 
 65.30  path to unsubsidized employment.  Participation in these 
 65.31  services is mandatory for all MFIP caregivers, unless the 
 65.32  caregiver is exempt under section 256J.56. 
 65.33     (b) A county must provide employment and training services 
 65.34  under sections 256J.515 to 256J.74 within 30 days after 
 65.35  the caregiver's participation becomes mandatory under 
 65.36  subdivision 5 or within 30 days of receipt of a request for 
 66.1   services from a caregiver who under section 256J.42 is no longer 
 66.2   eligible to receive MFIP but whose income is below 120 percent 
 66.3   of the federal poverty guidelines for a family of the same 
 66.4   size.  The request must be made within 12 months of the date the 
 66.5   caregivers' MFIP case was closed caregiver is determined 
 66.6   eligible for MFIP, or within ten days when the caregiver 
 66.7   participated in the diversionary work program under section 
 66.8   256J.95 within the past 12 months. 
 66.9      Sec. 72.  Minnesota Statutes 2002, section 256J.50, 
 66.10  subdivision 9, is amended to read: 
 66.11     Subd. 9.  [EXCEPTION; FINANCIAL HARDSHIP.] Notwithstanding 
 66.12  subdivision 8, a county that explains in the plan service 
 66.13  agreement required under section 256J.626, subdivision 7 4, that 
 66.14  the provision of alternative employment and training service 
 66.15  providers would result in financial hardship for the county is 
 66.16  not required to make available more than one employment and 
 66.17  training provider. 
 66.18     Sec. 73.  Minnesota Statutes 2002, section 256J.50, 
 66.19  subdivision 10, is amended to read: 
 66.20     Subd. 10.  [REQUIRED NOTIFICATION TO VICTIMS OF FAMILY 
 66.21  VIOLENCE.] (a) County agencies and their contractors must 
 66.22  provide universal notification to all applicants and recipients 
 66.23  of MFIP that: 
 66.24     (1) referrals to counseling and supportive services are 
 66.25  available for victims of family violence; 
 66.26     (2) nonpermanent resident battered individuals married to 
 66.27  United States citizens or permanent residents may be eligible to 
 66.28  petition for permanent residency under the federal Violence 
 66.29  Against Women Act, and that referrals to appropriate legal 
 66.30  services are available; 
 66.31     (3) victims of family violence are exempt from the 60-month 
 66.32  limit on assistance while the individual is if they are 
 66.33  complying with an approved safety plan or, after October 1, 
 66.34  2001, an alternative employment plan, as defined in under 
 66.35  section 256J.49 256J.521, subdivision 1a 3; and 
 66.36     (4) victims of family violence may choose to have regular 
 67.1   work requirements waived while the individual is complying with 
 67.2   an alternative employment plan as defined in under section 
 67.3   256J.49 256J.521, subdivision 1a 3.  
 67.4      (b) If an alternative employment plan under section 
 67.5   256J.521, subdivision 3, is denied, the county or a job 
 67.6   counselor must provide reasons why the plan is not approved and 
 67.7   document how the denial of the plan does not interfere with the 
 67.8   safety of the participant or children. 
 67.9      Notification must be in writing and orally at the time of 
 67.10  application and recertification, when the individual is referred 
 67.11  to the title IV-D child support agency, and at the beginning of 
 67.12  any job training or work placement assistance program. 
 67.13     Sec. 74.  Minnesota Statutes 2002, section 256J.51, 
 67.14  subdivision 1, is amended to read: 
 67.15     Subdivision 1.  [PROVIDER APPLICATION.] An employment and 
 67.16  training service provider that is not included in a county's 
 67.17  plan service agreement under section 256J.50 256J.626, 
 67.18  subdivision 7 4, because the county has demonstrated financial 
 67.19  hardship under section 256J.50, subdivision 9 of that section, 
 67.20  may appeal its exclusion to the commissioner of economic 
 67.21  security under this section. 
 67.22     Sec. 75.  Minnesota Statutes 2002, section 256J.51, 
 67.23  subdivision 2, is amended to read: 
 67.24     Subd. 2.  [APPEAL; ALTERNATE APPROVAL.] (a) An employment 
 67.25  and training service provider that is not included by a county 
 67.26  agency in the plan service agreement under section 
 67.27  256J.50 256J.626, subdivision 7 4, and that meets the criteria 
 67.28  in paragraph (b), may appeal its exclusion to the commissioner 
 67.29  of economic security, and may request alternative approval by 
 67.30  the commissioner of economic security to provide services in the 
 67.31  county.  
 67.32     (b) An employment and training services provider that is 
 67.33  requesting alternative approval must demonstrate to the 
 67.34  commissioner that the provider meets the standards specified in 
 67.35  section 268.871, subdivision 1, paragraph (b), except that the 
 67.36  provider's past experience may be in services and programs 
 68.1   similar to those specified in section 268.871, subdivision 1, 
 68.2   paragraph (b). 
 68.3      Sec. 76.  Minnesota Statutes 2002, section 256J.51, 
 68.4   subdivision 3, is amended to read: 
 68.5      Subd. 3.  [COMMISSIONER'S REVIEW.] (a) The commissioner 
 68.6   must act on a request for alternative approval under this 
 68.7   section within 30 days of the receipt of the request.  If after 
 68.8   reviewing the provider's request, and the county's plan service 
 68.9   agreement submitted under section 256J.50 256J.626, 
 68.10  subdivision 7 4, the commissioner determines that the provider 
 68.11  meets the criteria under subdivision 2, paragraph (b), and that 
 68.12  approval of the provider would not cause financial hardship to 
 68.13  the county, the county must submit a revised plan service 
 68.14  agreement under subdivision 4 that includes the approved 
 68.15  provider.  
 68.16     (b) If the commissioner determines that the approval of the 
 68.17  provider would cause financial hardship to the county, the 
 68.18  commissioner must notify the provider and the county of this 
 68.19  determination.  The alternate approval process under this 
 68.20  section shall be closed to other requests for alternate approval 
 68.21  to provide employment and training services in the county for up 
 68.22  to 12 months from the date that the commissioner makes a 
 68.23  determination under this paragraph. 
 68.24     Sec. 77.  Minnesota Statutes 2002, section 256J.51, 
 68.25  subdivision 4, is amended to read: 
 68.26     Subd. 4.  [REVISED PLAN SERVICE AGREEMENT REQUIRED.] The 
 68.27  commissioner of economic security must notify the county agency 
 68.28  when the commissioner grants an alternative approval to an 
 68.29  employment and training service provider under subdivision 2.  
 68.30  Upon receipt of the notice, the county agency must submit a 
 68.31  revised plan service agreement under section 256J.50 256J.626, 
 68.32  subdivision 7 4, that includes the approved provider.  The 
 68.33  county has 90 days from the receipt of the commissioner's notice 
 68.34  to submit the revised plan service agreement. 
 68.35     Sec. 78.  [256J.521] [ASSESSMENT; EMPLOYMENT PLANS.] 
 68.36     Subdivision 1.  [ASSESSMENTS.] (a) For purposes of MFIP 
 69.1   employment services, assessment is a continuing process of 
 69.2   gathering information related to employability for the purpose 
 69.3   of identifying both participant's strengths and strategies for 
 69.4   coping with issues that interfere with employment.  The job 
 69.5   counselor must use information from the assessment process to 
 69.6   develop and update the employment plan under subdivision 2. 
 69.7      (b) The scope of assessment must cover at least the 
 69.8   following areas: 
 69.9      (1) basic information about the participant's ability to 
 69.10  obtain and retain employment, including:  a review of the 
 69.11  participant's education level; interests, skills, and abilities; 
 69.12  prior employment or work experience; transferable work skills; 
 69.13  child care and transportation needs; 
 69.14     (2) identification of personal and family circumstances 
 69.15  that impact the participant's ability to obtain and retain 
 69.16  employment, including:  any special needs of the children, the 
 69.17  level of English proficiency, family violence issues, and any 
 69.18  involvement with social services or the legal system; 
 69.19     (3) the results of a mental and chemical health screening 
 69.20  tool designed by the commissioner and results of the brief 
 69.21  screening tool for special learning needs.  Screening tools for 
 69.22  mental and chemical health and special learning needs must be 
 69.23  approved by the commissioner and may only be administered by job 
 69.24  counselors or county staff trained in using such screening 
 69.25  tools.  The commissioner shall work with county agencies to 
 69.26  develop protocols for referrals and follow-up actions after 
 69.27  screens are administered to participants, including guidance on 
 69.28  how employment plans may be modified based upon outcomes of 
 69.29  certain screens.  Participants must be told of the purpose of 
 69.30  the screens and how the information will be used to assist the 
 69.31  participant in identifying and overcoming barriers to 
 69.32  employment.  Screening for mental and chemical health and 
 69.33  special learning needs must be completed by participants who are 
 69.34  unable to find suitable employment after six weeks of job search 
 69.35  under subdivision 2, paragraph (b), and participants who are 
 69.36  determined to have barriers to employment under subdivision 2, 
 70.1   paragraph (d).  Failure to complete the screens will result in 
 70.2   sanction under section 256J.46; and 
 70.3      (4) a comprehensive review of participation and progress 
 70.4   for participants who have received MFIP assistance and have not 
 70.5   worked in unsubsidized employment during the past 12 months.  
 70.6   The purpose of the review is to determine the need for 
 70.7   additional services and supports, including placement in 
 70.8   subsidized employment or unpaid work experience under section 
 70.9   256J.49, subdivision 13. 
 70.10     (c) Information gathered during a caregiver's participation 
 70.11  in the diversionary work program under section 256J.95 must be 
 70.12  incorporated into the assessment process. 
 70.13     (d) The job counselor may require the participant to 
 70.14  complete a professional chemical use assessment to be performed 
 70.15  according to the rules adopted under section 254A.03, 
 70.16  subdivision 3, including provisions in the administrative rules 
 70.17  which recognize the cultural background of the participant, or a 
 70.18  professional psychological assessment as a component of the 
 70.19  assessment process, when the job counselor has a reasonable 
 70.20  belief, based on objective evidence, that a participant's 
 70.21  ability to obtain and retain suitable employment is impaired by 
 70.22  a medical condition.  The job counselor may assist the 
 70.23  participant with arranging services, including child care 
 70.24  assistance and transportation, necessary to meet needs 
 70.25  identified by the assessment.  Data gathered as part of a 
 70.26  professional assessment must be classified and disclosed 
 70.27  according to the provisions in section 13.46. 
 70.28     Subd. 2.  [EMPLOYMENT PLAN; CONTENTS.] (a) Based on the 
 70.29  assessment under subdivision 1, the job counselor and the 
 70.30  participant must develop an employment plan that includes 
 70.31  participation in activities and hours that meet the requirements 
 70.32  of section 256J.55, subdivision 1.  The purpose of the 
 70.33  employment plan is to identify for each participant the most 
 70.34  direct path to unsubsidized employment and any subsequent steps 
 70.35  that support long-term economic stability.  The employment plan 
 70.36  should be developed using the highest level of activity 
 71.1   appropriate for the participant.  Activities must be chosen from 
 71.2   clauses (1) to (6), which are listed in order of preference.  
 71.3   The employment plan must also list the specific steps the 
 71.4   participant will take to obtain employment, including steps 
 71.5   necessary for the participant to progress from one level of 
 71.6   activity to another, and a timetable for completion of each 
 71.7   step.  Levels of activity include: 
 71.8      (1) unsubsidized employment; 
 71.9      (2) job search; 
 71.10     (3) subsidized employment or unpaid work experience; 
 71.11     (4) unsubsidized employment and job readiness education or 
 71.12  job skills training; 
 71.13     (5) unsubsidized employment or unpaid work experience, and 
 71.14  activities related to a family violence waiver or preemployment 
 71.15  needs; and 
 71.16     (6) activities related to a family violence waiver or 
 71.17  preemployment needs. 
 71.18     (b) Participants who are determined to possess sufficient 
 71.19  skills such that the participant is likely to succeed in 
 71.20  obtaining unsubsidized employment must job search at least 30 
 71.21  hours per week for up to six weeks, and accept any offer of 
 71.22  suitable employment.  The remaining hours necessary to meet the 
 71.23  requirements of section 256J.55, subdivision 1, may be met 
 71.24  through participation in other work activities under section 
 71.25  256J.49, subdivision 13.  The participant's employment plan must 
 71.26  specify, at a minimum:  (1) whether the job search is supervised 
 71.27  or unsupervised; (2) support services that will be provided; and 
 71.28  (3) how frequently the participant must report to the job 
 71.29  counselor.  Participants who are unable to find suitable 
 71.30  employment after six weeks must meet with the job counselor to 
 71.31  determine whether other activities in paragraph (a) should be 
 71.32  incorporated into the employment plan.  Job search activities 
 71.33  which are continued after six weeks must be structured and 
 71.34  supervised. 
 71.35     (c) Beginning July 1, 2004, activities and hourly 
 71.36  requirements in the employment plan may be adjusted as necessary 
 72.1   to accommodate the personal and family circumstances of 
 72.2   participants identified under section 256J.561, subdivision 2, 
 72.3   paragraph (d).  Participants who no longer meet the provisions 
 72.4   of section 256J.561, subdivision 2, paragraph (d), must meet 
 72.5   with the job counselor within ten days of the determination to 
 72.6   revise the employment plan. 
 72.7      (d) Participants who are determined to have barriers to 
 72.8   obtaining or retaining employment that will not be overcome 
 72.9   during six weeks of job search under paragraph (b) must work 
 72.10  with the job counselor to develop an employment plan that 
 72.11  addresses those barriers by incorporating appropriate activities 
 72.12  from paragraph (a), clauses (1) to (6).  The employment plan 
 72.13  must include enough hours to meet the participation requirements 
 72.14  in section 256J.55, subdivision 1, unless a compelling reason to 
 72.15  require fewer hours is noted in the participant's file. 
 72.16     (e) The job counselor and the participant must sign the 
 72.17  employment plan to indicate agreement on the contents.  Failure 
 72.18  to develop or comply with activities in the plan, or voluntarily 
 72.19  quitting suitable employment without good cause, will result in 
 72.20  the imposition of a sanction under section 256J.46. 
 72.21     (f) Employment plans must be reviewed at least every three 
 72.22  months to determine whether activities and hourly requirements 
 72.23  should be revised. 
 72.24     Subd. 3.  [EMPLOYMENT PLAN; FAMILY VIOLENCE WAIVER.] (a) A 
 72.25  participant who requests and qualifies for a family violence 
 72.26  waiver shall develop or revise the employment plan as specified 
 72.27  in this subdivision with a job counselor or county, and a person 
 72.28  trained in domestic violence.  The revised or new employment 
 72.29  plan must be approved by the county or the job counselor.  The 
 72.30  plan may address safety, legal, or emotional issues, and other 
 72.31  demands on the family as a result of the family violence.  
 72.32  Information in section 256J.515, clauses (1) to (8), must be 
 72.33  included as part of the development of the plan. 
 72.34     (b) The primary goal of an employment plan developed under 
 72.35  this subdivision is to ensure the safety of the caregiver and 
 72.36  children.  To the extent it is consistent with ensuring safety, 
 73.1   the plan shall also include activities that are designed to lead 
 73.2   to economic stability.  An activity is inconsistent with 
 73.3   ensuring safety if, in the opinion of a person trained in 
 73.4   domestic violence, the activity would endanger the safety of the 
 73.5   participant or children.  A plan under this subdivision may not 
 73.6   automatically include a provision that requires a participant to 
 73.7   obtain an order for protection or to attend counseling. 
 73.8      (c) If at any time there is a disagreement over whether the 
 73.9   activities in the plan are appropriate or the participant is not 
 73.10  complying with activities in the plan under this subdivision, 
 73.11  the participant must receive the assistance of a person trained 
 73.12  in domestic violence to help resolve the disagreement or 
 73.13  noncompliance with the county or job counselor.  If the person 
 73.14  trained in domestic violence recommends that the activities are 
 73.15  still appropriate, the county or a job counselor must approve 
 73.16  the activities in the plan or provide written reasons why 
 73.17  activities in the plan are not approved and document how denial 
 73.18  of the activities do not endanger the safety of the participant 
 73.19  or children. 
 73.20     Subd. 4.  [SELF-EMPLOYMENT.] (a) Self-employment activities 
 73.21  may be included in an employment plan contingent on the 
 73.22  development of a business plan which establishes a timetable and 
 73.23  earning goals that will result in the participant exiting MFIP 
 73.24  assistance.  Business plans must be developed with assistance 
 73.25  from an individual or organization with expertise in small 
 73.26  business as approved by the job counselor. 
 73.27     (b) Participants with an approved plan that includes 
 73.28  self-employment must meet the participation requirements in 
 73.29  section 256J.55, subdivision 1.  Only hours where the 
 73.30  participant earns at least minimum wage shall be counted toward 
 73.31  the requirement.  Additional activities and hours necessary to 
 73.32  meet the participation requirements in section 256J.55, 
 73.33  subdivision 1, must be included in the employment plan. 
 73.34     (c) Employment plans which include self-employment 
 73.35  activities must be reviewed every three months.  Participants 
 73.36  who fail, without good cause, to make satisfactory progress as 
 74.1   established in the business plan must revise the employment plan 
 74.2   to replace the self-employment with other approved work 
 74.3   activities. 
 74.4      (d) The requirements of this subdivision may be waived for 
 74.5   participants who are enrolled in the self-employment investment 
 74.6   demonstration program (SEID) under section 256J.65, and who make 
 74.7   satisfactory progress as determined by the job counselor and the 
 74.8   SEID provider. 
 74.9      Subd. 5.  [TRANSITION FROM THE DIVERSIONARY WORK 
 74.10  PROGRAM.] Participants who become eligible for MFIP assistance 
 74.11  after completing the diversionary work program under section 
 74.12  256J.95 must comply with all requirements of subdivisions 1 and 
 74.13  2.  Participants who become eligible for MFIP assistance after 
 74.14  being determined unable to benefit from the diversionary work 
 74.15  program must comply with the requirements of subdivisions 1 and 
 74.16  2, with the exception of subdivision 2, paragraph (b). 
 74.17     Subd. 6.  [LOSS OF EMPLOYMENT.] Participants who are laid 
 74.18  off, quit with good cause, or are terminated from employment 
 74.19  through no fault of their own must meet with the job counselor 
 74.20  within ten working days to ascertain the reason for the job loss 
 74.21  and to revise the employment plan as necessary to address the 
 74.22  problem. 
 74.23     Sec. 79.  Minnesota Statutes 2002, section 256J.53, 
 74.24  subdivision 1, is amended to read: 
 74.25     Subdivision 1.  [LENGTH OF PROGRAM.] In order for a 
 74.26  post-secondary education or training program to be an approved 
 74.27  work activity as defined in section 256J.49, subdivision 13, 
 74.28  clause (18) (6), it must be a program lasting 24 months or less, 
 74.29  and the participant must meet the requirements of subdivisions 2 
 74.30  and, 3, and 5.  
 74.31     Sec. 80.  Minnesota Statutes 2002, section 256J.53, 
 74.32  subdivision 2, is amended to read: 
 74.33     Subd. 2.  [DOCUMENTATION SUPPORTING PROGRAM APPROVAL OF 
 74.34  POSTSECONDARY EDUCATION OR TRAINING.] (a) In order for a 
 74.35  post-secondary education or training program to be an approved 
 74.36  activity in a participant's an employment plan, the participant 
 75.1   or the employment and training service provider must provide 
 75.2   documentation that: be working in unsubsidized employment at 
 75.3   least 20 hours per week. 
 75.4      (b) Participants seeking approval of a postsecondary 
 75.5   education or training plan must provide documentation that: 
 75.6      (1) the participant's employment plan identifies specific 
 75.7   goals that goal can only be met with the additional education or 
 75.8   training; 
 75.9      (2) there are suitable employment opportunities that 
 75.10  require the specific education or training in the area in which 
 75.11  the participant resides or is willing to reside; 
 75.12     (3) the education or training will result in significantly 
 75.13  higher wages for the participant than the participant could earn 
 75.14  without the education or training; 
 75.15     (4) the participant can meet the requirements for admission 
 75.16  into the program; and 
 75.17     (5) there is a reasonable expectation that the participant 
 75.18  will complete the training program based on such factors as the 
 75.19  participant's MFIP assessment, previous education, training, and 
 75.20  work history; current motivation; and changes in previous 
 75.21  circumstances. 
 75.22     (c) The hourly unsubsidized employment requirement may be 
 75.23  reduced for intensive education or training programs lasting 12 
 75.24  weeks or less when full-time attendance is required. 
 75.25     (d) Participants with an approved employment plan in place 
 75.26  on July 1, 2003, which includes more than 12 months of 
 75.27  postsecondary education or training shall be allowed to complete 
 75.28  that plan provided that hourly requirements in section 256J.55, 
 75.29  subdivision 1, and conditions specified in paragraph (b), and 
 75.30  subdivisions 3 and 5 are met. 
 75.31     Sec. 81.  Minnesota Statutes 2002, section 256J.53, 
 75.32  subdivision 5, is amended to read: 
 75.33     Subd. 5.  [JOB SEARCH AFTER COMPLETION OF WORK ACTIVITY 
 75.34  REQUIREMENTS AFTER POSTSECONDARY EDUCATION OR TRAINING.] If a 
 75.35  participant's employment plan includes a post-secondary 
 75.36  educational or training program, the plan must include an 
 76.1   anticipated completion date for those activities.  At the time 
 76.2   the education or training is completed, the participant must 
 76.3   participate in job search.  If, after three months of job 
 76.4   search, the participant does not find a job that is consistent 
 76.5   with the participant's employment goal, the participant must 
 76.6   accept any offer of suitable employment.  Upon completion of an 
 76.7   approved education or training program, a participant who does 
 76.8   not meet the participation requirements in section 256J.55, 
 76.9   subdivision 1, through unsubsidized employment must participate 
 76.10  in job search.  If, after six weeks of job search, the 
 76.11  participant does not find a full-time job consistent with the 
 76.12  employment goal, the participant must accept any offer of 
 76.13  full-time suitable employment, or meet with the job counselor to 
 76.14  revise the employment plan to include additional work activities 
 76.15  necessary to meet hourly requirements. 
 76.16     Sec. 82.  [256J.531] [BASIC EDUCATION; ENGLISH AS A SECOND 
 76.17  LANGUAGE.] 
 76.18     Subdivision 1.  [APPROVAL OF ADULT BASIC EDUCATION.] With 
 76.19  the exception of classes related to obtaining a general 
 76.20  educational development credential (GED), a participant must 
 76.21  have reading or mathematics proficiency below a ninth grade 
 76.22  level in order for adult basic education classes to be an 
 76.23  approved work activity.  The employment plan must also specify 
 76.24  that the participant fulfill no more than one-half of the 
 76.25  participation requirements in section 256J.55, subdivision 1, 
 76.26  through attending adult basic education or general educational 
 76.27  development classes. 
 76.28     Subd. 2.  [APPROVAL OF ENGLISH AS A SECOND LANGUAGE.] In 
 76.29  order for English as a second language (ESL) classes to be an 
 76.30  approved work activity in an employment plan, a participant must 
 76.31  be below a spoken language proficiency level of SPL6 or its 
 76.32  equivalent, as measured by a nationally recognized test.  In 
 76.33  approving ESL as a work activity, the job counselor must give 
 76.34  preference to enrollment in a functional work literacy program, 
 76.35  if one is available, over a regular ESL program.  A participant 
 76.36  may not be approved for more than a combined total of 24 months 
 77.1   of ESL classes while participating in the diversionary work 
 77.2   program and the employment and training services component of 
 77.3   MFIP.  The employment plan must also specify that the 
 77.4   participant fulfill no more than one-half of the participation 
 77.5   requirements in section 256J.55, subdivision 1, through 
 77.6   attending ESL classes.  For participants enrolled in functional 
 77.7   work literacy classes, no more than two-thirds of the 
 77.8   participation requirements in section 256J.55, subdivision 1, 
 77.9   may be met through attending functional work literacy classes. 
 77.10     Sec. 83.  Minnesota Statutes 2002, section 256J.54, 
 77.11  subdivision 1, is amended to read: 
 77.12     Subdivision 1.  [ASSESSMENT OF EDUCATIONAL PROGRESS AND 
 77.13  NEEDS.] (a) The county agency must document the educational 
 77.14  level of each MFIP caregiver who is under the age of 20 and 
 77.15  determine if the caregiver has obtained a high school diploma or 
 77.16  its equivalent.  If the caregiver has not obtained a high school 
 77.17  diploma or its equivalent, and is not exempt from the 
 77.18  requirement to attend school under subdivision 5, the county 
 77.19  agency must complete an individual assessment for the 
 77.20  caregiver unless the caregiver is exempt from the requirement to 
 77.21  attend school under subdivision 5 or has chosen to have an 
 77.22  employment plan under section 256J.521, subdivision 2, as 
 77.23  allowed in paragraph (b).  The assessment must be performed as 
 77.24  soon as possible but within 30 days of determining MFIP 
 77.25  eligibility for the caregiver.  The assessment must provide an 
 77.26  initial examination of the caregiver's educational progress and 
 77.27  needs, literacy level, child care and supportive service needs, 
 77.28  family circumstances, skills, and work experience.  In the case 
 77.29  of a caregiver under the age of 18, the assessment must also 
 77.30  consider the results of either the caregiver's or the 
 77.31  caregiver's minor child's child and teen checkup under Minnesota 
 77.32  Rules, parts 9505.0275 and 9505.1693 to 9505.1748, if available, 
 77.33  and the effect of a child's development and educational needs on 
 77.34  the caregiver's ability to participate in the program.  The 
 77.35  county agency must advise the caregiver that the caregiver's 
 77.36  first goal must be to complete an appropriate educational 
 78.1   education option if one is identified for the caregiver through 
 78.2   the assessment and, in consultation with educational agencies, 
 78.3   must review the various school completion options with the 
 78.4   caregiver and assist in selecting the most appropriate option.  
 78.5      (b) The county agency must give a caregiver, who is age 18 
 78.6   or 19 and has not obtained a high school diploma or its 
 78.7   equivalent, the option to choose an employment plan with an 
 78.8   education option under subdivision 3 or an employment plan under 
 78.9   section 256J.521, subdivision 2. 
 78.10     Sec. 84.  Minnesota Statutes 2002, section 256J.54, 
 78.11  subdivision 2, is amended to read: 
 78.12     Subd. 2.  [RESPONSIBILITY FOR ASSESSMENT AND EMPLOYMENT 
 78.13  PLAN.] For caregivers who are under age 18 without a high school 
 78.14  diploma or its equivalent, the assessment under subdivision 1 
 78.15  and the employment plan under subdivision 3 must be completed by 
 78.16  the social services agency under section 257.33.  For caregivers 
 78.17  who are age 18 or 19 without a high school diploma or its 
 78.18  equivalent who choose to have an employment plan with an 
 78.19  education option under subdivision 3, the assessment under 
 78.20  subdivision 1 and the employment plan under subdivision 3 must 
 78.21  be completed by the job counselor or, at county option, by the 
 78.22  social services agency under section 257.33.  Upon reaching age 
 78.23  18 or 19 a caregiver who received social services under section 
 78.24  257.33 and is without a high school diploma or its equivalent 
 78.25  has the option to choose whether to continue receiving services 
 78.26  under the caregiver's plan from the social services agency or to 
 78.27  utilize an MFIP employment and training service provider.  The 
 78.28  social services agency or the job counselor shall consult with 
 78.29  representatives of educational agencies that are required to 
 78.30  assist in developing educational plans under section 124D.331. 
 78.31     Sec. 85.  Minnesota Statutes 2002, section 256J.54, 
 78.32  subdivision 3, is amended to read: 
 78.33     Subd. 3.  [EDUCATIONAL EDUCATION OPTION DEVELOPED.] If the 
 78.34  job counselor or county social services agency identifies an 
 78.35  appropriate educational education option for a minor caregiver 
 78.36  under the age of 20 without a high school diploma or its 
 79.1   equivalent, or a caregiver age 18 or 19 without a high school 
 79.2   diploma or its equivalent who chooses an employment plan with an 
 79.3   education option, the job counselor or agency must develop an 
 79.4   employment plan which reflects the identified option.  The plan 
 79.5   must specify that participation in an educational activity is 
 79.6   required, what school or educational program is most 
 79.7   appropriate, the services that will be provided, the activities 
 79.8   the caregiver will take part in, including child care and 
 79.9   supportive services, the consequences to the caregiver for 
 79.10  failing to participate or comply with the specified 
 79.11  requirements, and the right to appeal any adverse action.  The 
 79.12  employment plan must, to the extent possible, reflect the 
 79.13  preferences of the caregiver. 
 79.14     Sec. 86.  Minnesota Statutes 2002, section 256J.54, 
 79.15  subdivision 5, is amended to read: 
 79.16     Subd. 5.  [SCHOOL ATTENDANCE REQUIRED.] (a) Notwithstanding 
 79.17  the provisions of section 256J.56, minor parents, or 18- or 
 79.18  19-year-old parents without a high school diploma or its 
 79.19  equivalent who chooses an employment plan with an education 
 79.20  option must attend school unless: 
 79.21     (1) transportation services needed to enable the caregiver 
 79.22  to attend school are not available; 
 79.23     (2) appropriate child care services needed to enable the 
 79.24  caregiver to attend school are not available; 
 79.25     (3) the caregiver is ill or incapacitated seriously enough 
 79.26  to prevent attendance at school; or 
 79.27     (4) the caregiver is needed in the home because of the 
 79.28  illness or incapacity of another member of the household.  This 
 79.29  includes a caregiver of a child who is younger than six weeks of 
 79.30  age. 
 79.31     (b) The caregiver must be enrolled in a secondary school 
 79.32  and meeting the school's attendance requirements.  The county, 
 79.33  social service agency, or job counselor must verify at least 
 79.34  once per quarter that the caregiver is meeting the school's 
 79.35  attendance requirements.  An enrolled caregiver is considered to 
 79.36  be meeting the attendance requirements when the school is not in 
 80.1   regular session, including during holiday and summer breaks.  
 80.2      Sec. 87.  [256J.545] [FAMILY VIOLENCE WAIVER CRITERIA.] 
 80.3      (a) In order to qualify for a family violence waiver, an 
 80.4   individual must provide documentation of past or current family 
 80.5   violence which may prevent the individual from participating in 
 80.6   certain employment activities.  A claim of family violence must 
 80.7   be documented by the applicant or participant providing a sworn 
 80.8   statement which is supported by collateral documentation. 
 80.9      (b) Collateral documentation may consist of: 
 80.10     (1) police, government agency, or court records; 
 80.11     (2) a statement from a battered women's shelter staff with 
 80.12  knowledge of the circumstances or credible evidence that 
 80.13  supports the sworn statement; 
 80.14     (3) a statement from a sexual assault or domestic violence 
 80.15  advocate with knowledge of the circumstances or credible 
 80.16  evidence that supports the sworn statement; 
 80.17     (4) a statement from professionals from whom the applicant 
 80.18  or recipient has sought assistance for the abuse; or 
 80.19     (5) a sworn statement from any other individual with 
 80.20  knowledge of circumstances or credible evidence that supports 
 80.21  the sworn statement. 
 80.22     Sec. 88.  Minnesota Statutes 2002, section 256J.55, 
 80.23  subdivision 1, is amended to read: 
 80.24     Subdivision 1.  [COMPLIANCE WITH JOB SEARCH OR EMPLOYMENT 
 80.25  PLAN; SUITABLE EMPLOYMENT PARTICIPATION REQUIREMENTS.] (a) Each 
 80.26  MFIP participant must comply with the terms of the participant's 
 80.27  job search support plan or employment plan.  When the 
 80.28  participant has completed the steps listed in the employment 
 80.29  plan, the participant must comply with section 256J.53, 
 80.30  subdivision 5, if applicable, and then the participant must not 
 80.31  refuse any offer of suitable employment.  The participant may 
 80.32  choose to accept an offer of suitable employment before the 
 80.33  participant has completed the steps of the employment plan. 
 80.34     (b) For a participant under the age of 20 who is without a 
 80.35  high school diploma or general educational development diploma, 
 80.36  the requirement to comply with the terms of the employment plan 
 81.1   means the participant must meet the requirements of section 
 81.2   256J.54. 
 81.3      (c) Failure to develop or comply with a job search support 
 81.4   plan or an employment plan, or quitting suitable employment 
 81.5   without good cause, shall result in the imposition of a sanction 
 81.6   as specified in sections 256J.46 and 256J.57. 
 81.7      (a) All caregivers must participate in employment services 
 81.8   under sections 256J.515 to 256J.57 concurrent with receipt of 
 81.9   MFIP assistance. 
 81.10     (b) Until July 1, 2004, participants who meet the 
 81.11  requirements of section 256J.56 are exempt from participation 
 81.12  requirements. 
 81.13     (c) Participants under paragraph (a) must develop and 
 81.14  comply with an employment plan under section 256J.521, or 
 81.15  section 256J.54 in the case of a participant under the age of 20 
 81.16  who has not obtained a high school diploma or its equivalent. 
 81.17     (d) With the exception of participants under the age of 20 
 81.18  who must meet the education requirements of section 256J.54, all 
 81.19  participants must meet the hourly participation requirements of 
 81.20  TANF or the hourly requirements listed in clauses (1) to (3), 
 81.21  whichever is higher. 
 81.22     (1) In single-parent families with no children under six 
 81.23  years of age, the job counselor and the caregiver must develop 
 81.24  an employment plan that includes 30 to 35 hours per week of work 
 81.25  activities. 
 81.26     (2) In single-parent families with a child under six years 
 81.27  of age, the job counselor and the caregiver must develop an 
 81.28  employment plan that includes 20 to 35 hours per week of work 
 81.29  activities. 
 81.30     (3) In two-parent families, the job counselor and the 
 81.31  caregivers must develop employment plans which result in a 
 81.32  combined total of at least 55 hours per week of work activities. 
 81.33     (e) Failure to participate in employment services, 
 81.34  including the requirement to develop and comply with an 
 81.35  employment plan, including hourly requirements, without good 
 81.36  cause under section 256J.57, shall result in the imposition of a 
 82.1   sanction under section 256J.46. 
 82.2      Sec. 89.  Minnesota Statutes 2002, section 256J.55, 
 82.3   subdivision 2, is amended to read: 
 82.4      Subd. 2.  [DUTY TO REPORT.] The participant must inform the 
 82.5   job counselor within three ten working days regarding any 
 82.6   changes related to the participant's employment status. 
 82.7      Sec. 90.  Minnesota Statutes 2002, section 256J.56, is 
 82.8   amended to read: 
 82.9      256J.56 [EMPLOYMENT AND TRAINING SERVICES COMPONENT; 
 82.10  EXEMPTIONS.] 
 82.11     (a) An MFIP participant is exempt from the requirements of 
 82.12  sections 256J.52 256J.515 to 256J.55 256J.57 if the participant 
 82.13  belongs to any of the following groups: 
 82.14     (1) participants who are age 60 or older; 
 82.15     (2) participants who are suffering from a professionally 
 82.16  certified permanent or temporary illness, injury, or incapacity 
 82.17  which has been certified by a qualified professional when the 
 82.18  illness, injury, or incapacity is expected to continue for more 
 82.19  than 30 days and which prevents the person from obtaining or 
 82.20  retaining employment.  Persons in this category with a temporary 
 82.21  illness, injury, or incapacity must be reevaluated at least 
 82.22  quarterly; 
 82.23     (3) participants whose presence in the home is required as 
 82.24  a caregiver because of a professionally certified the illness, 
 82.25  injury, or incapacity of another member in the assistance unit, 
 82.26  a relative in the household, or a foster child in the 
 82.27  household and when the illness or incapacity and the need for a 
 82.28  person to provide assistance in the home has been certified by a 
 82.29  qualified professional and is expected to continue for more than 
 82.30  30 days; 
 82.31     (4) women who are pregnant, if the pregnancy has resulted 
 82.32  in a professionally certified an incapacity that prevents the 
 82.33  woman from obtaining or retaining employment, and the incapacity 
 82.34  has been certified by a qualified professional; 
 82.35     (5) caregivers of a child under the age of one year who 
 82.36  personally provide full-time care for the child.  This exemption 
 83.1   may be used for only 12 months in a lifetime.  In two-parent 
 83.2   households, only one parent or other relative may qualify for 
 83.3   this exemption; 
 83.4      (6) participants experiencing a personal or family crisis 
 83.5   that makes them incapable of participating in the program, as 
 83.6   determined by the county agency.  If the participant does not 
 83.7   agree with the county agency's determination, the participant 
 83.8   may seek professional certification from a qualified 
 83.9   professional, as defined in section 256J.08, that the 
 83.10  participant is incapable of participating in the program. 
 83.11     Persons in this exemption category must be reevaluated 
 83.12  every 60 days.  A personal or family crisis related to family 
 83.13  violence, as determined by the county or a job counselor with 
 83.14  the assistance of a person trained in domestic violence, should 
 83.15  not result in an exemption, but should be addressed through the 
 83.16  development or revision of an alternative employment plan under 
 83.17  section 256J.52 256J.521, subdivision 6 3; or 
 83.18     (7) caregivers with a child or an adult in the household 
 83.19  who meets the disability or medical criteria for home care 
 83.20  services under section 256B.0627, subdivision 1, 
 83.21  paragraph (c) (f), or a home and community-based waiver services 
 83.22  program under chapter 256B, or meets the criteria for severe 
 83.23  emotional disturbance under section 245.4871, subdivision 6, or 
 83.24  for serious and persistent mental illness under section 245.462, 
 83.25  subdivision 20, paragraph (c).  Caregivers in this exemption 
 83.26  category are presumed to be prevented from obtaining or 
 83.27  retaining employment. 
 83.28     A caregiver who is exempt under clause (5) must enroll in 
 83.29  and attend an early childhood and family education class, a 
 83.30  parenting class, or some similar activity, if available, during 
 83.31  the period of time the caregiver is exempt under this section.  
 83.32  Notwithstanding section 256J.46, failure to attend the required 
 83.33  activity shall not result in the imposition of a sanction. 
 83.34     (b) The county agency must provide employment and training 
 83.35  services to MFIP participants who are exempt under this section, 
 83.36  but who volunteer to participate.  Exempt volunteers may request 
 84.1   approval for any work activity under section 256J.49, 
 84.2   subdivision 13.  The hourly participation requirements for 
 84.3   nonexempt participants under section 256J.50 256J.55, 
 84.4   subdivision 5 1, do not apply to exempt participants who 
 84.5   volunteer to participate. 
 84.6      (c) This section expires on June 30, 2004. 
 84.7      Sec. 91.  [256J.561] [UNIVERSAL PARTICIPATION REQUIRED.] 
 84.8      Subdivision 1.  [IMPLEMENTATION OF UNIVERSAL PARTICIPATION 
 84.9   REQUIREMENTS.] (a) All caregivers whose applications were 
 84.10  received July 1, 2004, or after, are immediately subject to the 
 84.11  requirements in subdivision 2. 
 84.12     (b) For all MFIP participants who were exempt from 
 84.13  participating in employment services under section 256J.56 as of 
 84.14  June 30, 2004, between July 1, 2004, and June 30, 2005, the 
 84.15  county, as part of the participant's recertification under 
 84.16  section 256J.32, subdivision 6, shall determine whether a new 
 84.17  employment plan is required to meet the requirements in 
 84.18  subdivision 2.  Counties shall notify each participant who is in 
 84.19  need of an employment plan that the participant must meet with a 
 84.20  job counselor within ten days to develop an employment plan.  
 84.21  Until a participant's employment plan is developed, the 
 84.22  participant shall be considered in compliance with the 
 84.23  participation requirements in this section if the participant 
 84.24  continues to meet the criteria for an exemption under section 
 84.25  256J.56 as in effect on June 30, 2004, and is cooperating in the 
 84.26  development of the new plan. 
 84.27     Subd. 2.  [PARTICIPATION REQUIREMENTS.] (a) All MFIP 
 84.28  caregivers, except caregivers who meet the criteria in 
 84.29  subdivision 3, must participate in employment services.  Except 
 84.30  as specified in paragraphs (b) to (d), the employment plan must 
 84.31  meet the requirements of section 256J.521, subdivision 2, 
 84.32  contain allowable work activities, as defined in section 
 84.33  256J.49, subdivision 13, and, include at a minimum, the number 
 84.34  of participation hours required under section 256J.55, 
 84.35  subdivision 1. 
 84.36     (b) Minor caregivers and caregivers who are less than age 
 85.1   20 who have not completed high school or obtained a GED are 
 85.2   required to comply with section 256J.54. 
 85.3      (c) A participant who has a family violence waiver shall 
 85.4   develop and comply with an employment plan under section 
 85.5   256J.521, subdivision 3. 
 85.6      (d) As specified in section 256J.521, subdivision 2, 
 85.7   paragraph (c), a participant who meets any one of the following 
 85.8   criteria may work with the job counselor to develop an 
 85.9   employment plan that contains less than the number of 
 85.10  participation hours under section 256J.55, subdivision 1.  
 85.11  Employment plans for participants covered under this paragraph 
 85.12  must be tailored to recognize the special circumstances of 
 85.13  caregivers and families including limitations due to illness or 
 85.14  disability and caregiving needs: 
 85.15     (1) a participant who is age 60 or older; 
 85.16     (2) a participant who has been diagnosed by a qualified 
 85.17  professional as suffering from an illness or incapacity that is 
 85.18  expected to last for 30 days or more, including a pregnant 
 85.19  participant who is determined to be unable to obtain or retain 
 85.20  employment due to the pregnancy; or 
 85.21     (3) a participant who is determined by a qualified 
 85.22  professional as being needed in the home to care for an ill or 
 85.23  incapacitated family member, including caregivers with a child 
 85.24  or an adult in the household who meets the disability or medical 
 85.25  criteria for home care services under section 256B.0627, 
 85.26  subdivision 1, paragraph (f), or a home and community-based 
 85.27  waiver services program under chapter 256B, or meets the 
 85.28  criteria for severe emotional disturbance under section 
 85.29  245.4871, subdivision 6, or for serious and persistent mental 
 85.30  illness under section 245.462, subdivision 20, paragraph (c). 
 85.31     (e) For participants covered under paragraphs (c) and (d), 
 85.32  the county shall review the participant's employment services 
 85.33  status every three months to determine whether conditions have 
 85.34  changed.  When it is determined that the participant's status is 
 85.35  no longer covered under paragraph (c) or (d), the county shall 
 85.36  notify the participant that a new or revised employment plan is 
 86.1   needed.  The participant and job counselor shall meet within ten 
 86.2   days of the determination to revise the employment plan. 
 86.3      Subd. 3.  [CHILD UNDER 12 WEEKS OF AGE.] (a) A participant 
 86.4   who has a natural born child who is less than 12 weeks of age 
 86.5   who meets the criteria in clauses (1) and (2) is not required to 
 86.6   participate in employment services until the child reaches 12 
 86.7   weeks of age.  To be eligible for this provision, the following 
 86.8   conditions must be met: 
 86.9      (1) the child must have been born within ten months of the 
 86.10  caregiver's application for the diversionary work program or 
 86.11  MFIP; and 
 86.12     (2) the assistance unit must not have already used this 
 86.13  provision or the previously allowed child under age one 
 86.14  exemption.  However, an assistance unit that has an approved 
 86.15  child under age one exemption at the time this provision becomes 
 86.16  effective may continue to use that exemption until the child 
 86.17  reaches one year of age. 
 86.18     (b) The provision in paragraph (a) ends the first full 
 86.19  month after the child reaches 12 weeks of age.  This provision 
 86.20  is available only once in a caregiver's lifetime.  In a 
 86.21  two-parent household, only one parent shall be allowed to use 
 86.22  this provision.  The participant and job counselor must meet 
 86.23  within ten days after the child reaches 12 weeks of age to 
 86.24  revise the participant's employment plan. 
 86.25     [EFFECTIVE DATE.] This section is effective July 1, 2004. 
 86.26     Sec. 92.  Minnesota Statutes 2002, section 256J.57, is 
 86.27  amended to read: 
 86.28     256J.57 [GOOD CAUSE; FAILURE TO COMPLY; NOTICE; 
 86.29  CONCILIATION CONFERENCE.] 
 86.30     Subdivision 1.  [GOOD CAUSE FOR FAILURE TO COMPLY.] The 
 86.31  county agency shall not impose the sanction under section 
 86.32  256J.46 if it determines that the participant has good cause for 
 86.33  failing to comply with the requirements of sections 256J.52 
 86.34  256J.515 to 256J.55 256J.57.  Good cause exists when: 
 86.35     (1) appropriate child care is not available; 
 86.36     (2) the job does not meet the definition of suitable 
 87.1   employment; 
 87.2      (3) the participant is ill or injured; 
 87.3      (4) a member of the assistance unit, a relative in the 
 87.4   household, or a foster child in the household is ill and needs 
 87.5   care by the participant that prevents the participant from 
 87.6   complying with the job search support plan or employment plan; 
 87.7      (5) the parental caregiver is unable to secure necessary 
 87.8   transportation; 
 87.9      (6) the parental caregiver is in an emergency situation 
 87.10  that prevents compliance with the job search support plan or 
 87.11  employment plan; 
 87.12     (7) the schedule of compliance with the job search support 
 87.13  plan or employment plan conflicts with judicial proceedings; 
 87.14     (8) a mandatory MFIP meeting is scheduled during a time 
 87.15  that conflicts with a judicial proceeding or a meeting related 
 87.16  to a juvenile court matter, or a participant's work schedule; 
 87.17     (9) the parental caregiver is already participating in 
 87.18  acceptable work activities; 
 87.19     (10) the employment plan requires an educational program 
 87.20  for a caregiver under age 20, but the educational program is not 
 87.21  available; 
 87.22     (11) activities identified in the job search support plan 
 87.23  or employment plan are not available; 
 87.24     (12) the parental caregiver is willing to accept suitable 
 87.25  employment, but suitable employment is not available; or 
 87.26     (13) the parental caregiver documents other verifiable 
 87.27  impediments to compliance with the job search support plan or 
 87.28  employment plan beyond the parental caregiver's control. 
 87.29     The job counselor shall work with the participant to 
 87.30  reschedule mandatory meetings for individuals who fall under 
 87.31  clauses (1), (3), (4), (5), (6), (7), and (8). 
 87.32     Subd. 2.  [NOTICE OF INTENT TO SANCTION.] (a) When a 
 87.33  participant fails without good cause to comply with the 
 87.34  requirements of sections 256J.52 256J.515 to 256J.55 256J.57, 
 87.35  the job counselor or the county agency must provide a notice of 
 87.36  intent to sanction to the participant specifying the program 
 88.1   requirements that were not complied with, informing the 
 88.2   participant that the county agency will impose the sanctions 
 88.3   specified in section 256J.46, and informing the participant of 
 88.4   the opportunity to request a conciliation conference as 
 88.5   specified in paragraph (b).  The notice must also state that the 
 88.6   participant's continuing noncompliance with the specified 
 88.7   requirements will result in additional sanctions under section 
 88.8   256J.46, without the need for additional notices or conciliation 
 88.9   conferences under this subdivision.  The notice, written in 
 88.10  English, must include the department of human services language 
 88.11  block, and must be sent to every applicable participant.  If the 
 88.12  participant does not request a conciliation conference within 
 88.13  ten calendar days of the mailing of the notice of intent to 
 88.14  sanction, the job counselor must notify the county agency that 
 88.15  the assistance payment should be reduced.  The county must then 
 88.16  send a notice of adverse action to the participant informing the 
 88.17  participant of the sanction that will be imposed, the reasons 
 88.18  for the sanction, the effective date of the sanction, and the 
 88.19  participant's right to have a fair hearing under section 256J.40.
 88.20     (b) The participant may request a conciliation conference 
 88.21  by sending a written request, by making a telephone request, or 
 88.22  by making an in-person request.  The request must be received 
 88.23  within ten calendar days of the date the county agency mailed 
 88.24  the ten-day notice of intent to sanction.  If a timely request 
 88.25  for a conciliation is received, the county agency's service 
 88.26  provider must conduct the conference within five days of the 
 88.27  request.  The job counselor's supervisor, or a designee of the 
 88.28  supervisor, must review the outcome of the conciliation 
 88.29  conference.  If the conciliation conference resolves the 
 88.30  noncompliance, the job counselor must promptly inform the county 
 88.31  agency and request withdrawal of the sanction notice. 
 88.32     (c) Upon receiving a sanction notice, the participant may 
 88.33  request a fair hearing under section 256J.40, without exercising 
 88.34  the option of a conciliation conference.  In such cases, the 
 88.35  county agency shall not require the participant to engage in a 
 88.36  conciliation conference prior to the fair hearing. 
 89.1      (d) If the participant requests a fair hearing or a 
 89.2   conciliation conference, sanctions will not be imposed until 
 89.3   there is a determination of noncompliance.  Sanctions must be 
 89.4   imposed as provided in section 256J.46. 
 89.5      Sec. 93.  Minnesota Statutes 2002, section 256J.62, 
 89.6   subdivision 9, is amended to read: 
 89.7      Subd. 9.  [CONTINUATION OF CERTAIN SERVICES.] Only if 
 89.8   services were approved as part of an employment plan prior to 
 89.9   June 30, 2003, at the request of the participant, the county may 
 89.10  continue to provide case management, counseling, or other 
 89.11  support services to a participant: 
 89.12     (a) (1) who has achieved the employment goal; or 
 89.13     (b) (2) who under section 256J.42 is no longer eligible to 
 89.14  receive MFIP but whose income is below 115 percent of the 
 89.15  federal poverty guidelines for a family of the same size. 
 89.16     These services may be provided for up to 12 months 
 89.17  following termination of the participant's eligibility for MFIP. 
 89.18     Sec. 94.  [256J.626] [MFIP CONSOLIDATED FUND.] 
 89.19     Subdivision 1.  [CONSOLIDATED FUND.] The consolidated fund 
 89.20  is established to support counties and tribes in meeting their 
 89.21  duties under this chapter.  Counties and tribes must use funds 
 89.22  from the consolidated fund to develop programs and services that 
 89.23  are designed to improve participant outcomes as measured in 
 89.24  section 256J.751, subdivision 2.  Counties may use the funds for 
 89.25  any allowable expenditures under subdivision 2.  Tribes may use 
 89.26  the funds for any allowable expenditures under subdivision 2, 
 89.27  except those in clauses (1) and (6). 
 89.28     Subd. 2.  [ALLOWABLE EXPENDITURES.] (a) The commissioner 
 89.29  must restrict expenditures under the consolidated fund to 
 89.30  benefits and services allowed under title IV-A of the federal 
 89.31  Social Security Act.  Allowable expenditures under the 
 89.32  consolidated fund may include, but are not limited to: 
 89.33     (1) short-term, nonrecurring shelter and utility needs that 
 89.34  are excluded from the definition of assistance under Code of 
 89.35  Federal Regulations, title 45, section 260.31, for families who 
 89.36  meet the residency requirement in section 256J.12, subdivisions 
 90.1   1 and 1a.  Payments under this subdivision are not considered 
 90.2   TANF cash assistance and are not counted towards the 60-month 
 90.3   time limit; 
 90.4      (2) transportation needed to obtain or retain employment or 
 90.5   to participate in other approved work activities; 
 90.6      (3) direct and administrative costs of staff to deliver 
 90.7   employment services for MFIP or the diversionary work program, 
 90.8   to administer financial assistance, and to provide specialized 
 90.9   services intended to assist hard-to-employ participants to 
 90.10  transition to work; 
 90.11     (4) costs of education and training including functional 
 90.12  work literacy and English as a second language; 
 90.13     (5) cost of work supports including tools, clothing, boots, 
 90.14  and other work-related expenses; 
 90.15     (6) county administrative expenses as defined in Code of 
 90.16  Federal Regulations, title 45, section 260(b); 
 90.17     (7) services to parenting and pregnant teens; 
 90.18     (8) supported work; 
 90.19     (9) wage subsidies; 
 90.20     (10) child care needed for MFIP or diversionary work 
 90.21  program participants to participate in social services; 
 90.22     (11) child care to ensure that families leaving MFIP or 
 90.23  diversionary work program will continue to receive child care 
 90.24  assistance from the time the family no longer qualifies for 
 90.25  transition year child care until an opening occurs under the 
 90.26  basic sliding fee child care program; and 
 90.27     (12) services to help noncustodial parents who live in 
 90.28  Minnesota and have minor children receiving MFIP or DWP 
 90.29  assistance, but do not live in the same household as the child, 
 90.30  obtain or retain employment. 
 90.31     (b) Administrative costs that are not matched with county 
 90.32  funds as provided in subdivision 8 may not exceed 7.5 percent of 
 90.33  a county's or 15 percent of a tribe's reimbursement under this 
 90.34  section.  The commissioner shall define administrative costs for 
 90.35  purposes of this subdivision. 
 90.36     Subd. 3.  [ELIGIBILITY FOR SERVICES.] Families with a minor 
 91.1   child, a pregnant woman, or a noncustodial parent of a minor 
 91.2   child receiving assistance, with incomes below 200 percent of 
 91.3   the federal poverty guideline for a family of the applicable 
 91.4   size, are eligible for services funded under the consolidated 
 91.5   fund.  Counties and tribes must give priority to families 
 91.6   currently receiving MFIP or diversionary work program, and 
 91.7   families at risk of receiving MFIP or diversionary work program. 
 91.8      Subd. 4.  [COUNTY AND TRIBAL BIENNIAL SERVICE 
 91.9   AGREEMENTS.] (a) Effective January 1, 2004, and each two-year 
 91.10  period thereafter, each county and tribe must have in place an 
 91.11  approved biennial service agreement related to the services and 
 91.12  programs in this chapter.  In counties with a city of the first 
 91.13  class with a population over 300,000, the county must consider a 
 91.14  service agreement that includes a jointly developed plan for the 
 91.15  delivery of employment services with the city.  Counties may 
 91.16  collaborate to develop multicounty, multitribal, or regional 
 91.17  service agreements. 
 91.18     (b) The service agreements will be completed in a form 
 91.19  prescribed by the commissioner.  The agreement must include: 
 91.20     (1) a statement of the needs of the service population and 
 91.21  strengths and resources in the community; 
 91.22     (2) numerical goals for participant outcomes measures to be 
 91.23  accomplished during the biennial period.  The commissioner may 
 91.24  identify outcomes from section 256J.751, subdivision 2, as core 
 91.25  outcomes for all counties and tribes; 
 91.26     (3) strategies the county or tribe will pursue to achieve 
 91.27  the outcome targets.  Strategies must include specification of 
 91.28  how funds under this section will be used and may include 
 91.29  community partnerships that will be established or strengthened; 
 91.30  and 
 91.31     (4) other items prescribed by the commissioner in 
 91.32  consultation with counties and tribes. 
 91.33     (c) The commissioner shall provide each county and tribe 
 91.34  with information needed to complete an agreement, including:  
 91.35  (1) information on MFIP cases in the county or tribe; (2) 
 91.36  comparisons with the rest of the state; (3) baseline performance 
 92.1   on outcome measures; and (4) promising program practices. 
 92.2      (d) The service agreement must be submitted to the 
 92.3   commissioner by October 15, 2003, and October 15 of each second 
 92.4   year thereafter.  The county or tribe must allow a period of not 
 92.5   less than 30 days prior to the submission of the agreement to 
 92.6   solicit comments from the public on the contents of the 
 92.7   agreement. 
 92.8      (e) The commissioner must, within 60 days of receiving each 
 92.9   county or tribal service agreement, inform the county or tribe 
 92.10  if the service agreement is approved.  If the service agreement 
 92.11  is not approved, the commissioner must inform the county or 
 92.12  tribe of any revisions needed prior to approval. 
 92.13     (f) The service agreement in this subdivision supersedes 
 92.14  the plan requirements of section 268.88. 
 92.15     Subd. 5.  [INNOVATION PROJECTS.] Beginning January 1, 2005, 
 92.16  no more than $3,000,000 of the funds annually appropriated to 
 92.17  the commissioner for use in the consolidated fund shall be 
 92.18  available to the commissioner for projects testing innovative 
 92.19  approaches to improving outcomes for MFIP participants, and 
 92.20  persons at risk of receiving MFIP as detailed in subdivision 3.  
 92.21  Projects shall be targeted to geographic areas with poor 
 92.22  outcomes as specified in section 256J.751, subdivision 5, or to 
 92.23  subgroups within the MFIP case load who are experiencing poor 
 92.24  outcomes. 
 92.25     Subd. 6.  [BASE ALLOCATION TO COUNTIES AND TRIBES.] (a) For 
 92.26  purposes of this section, the following terms have the meanings 
 92.27  given them: 
 92.28     (1) "2002 historic spending base" means the commissioner's 
 92.29  determination of the sum of the reimbursement related to fiscal 
 92.30  year 2002 of county or tribal agency expenditures for the base 
 92.31  programs listed in clause (4), items (i) through (iv), and 
 92.32  earnings related to calendar year 2002 in the base program 
 92.33  listed in clause (4), item (v), and the amount of spending in 
 92.34  fiscal year 2002 in the base program listed in clause (4), item 
 92.35  (vi), issued to or on behalf of persons residing in the county 
 92.36  or tribal service delivery area. 
 93.1      (2) "Initial allocation" means the amount potentially 
 93.2   available to each county or tribe based on the formula in 
 93.3   paragraphs (b) through (d). 
 93.4      (3) "Final allocation" means the amount available to each 
 93.5   county or tribe based on the formula in paragraphs (b) through 
 93.6   (d), after adjustment by subdivision 7. 
 93.7      (4) "Base programs" means the: 
 93.8      (i) MFIP employment and training services under section 
 93.9   256J.62, subdivision 1, in effect June 30, 2002; 
 93.10     (ii) bilingual employment and training services to refugees 
 93.11  under section 256J.62, subdivision 6, in effect June 30, 2002; 
 93.12     (iii) work literacy language programs under section 
 93.13  256J.62, subdivision 7, in effect June 30, 2002; 
 93.14     (iv) supported work program authorized in Laws 2001, First 
 93.15  Special Session chapter 9, article 17, section 2, in effect June 
 93.16  30, 2002; 
 93.17     (v) administrative aid program under section 256J.76 in 
 93.18  effect December 31, 2002; and 
 93.19     (vi) emergency assistance program under section 256J.48 in 
 93.20  effect June 30, 2002. 
 93.21     (b)(1) Beginning July 1, 2003, the commissioner shall 
 93.22  determine the initial allocation of funds available under this 
 93.23  section according to clause (2). 
 93.24     (2) All of the funds available for the period beginning 
 93.25  July 1, 2003, and ending December 31, 2004, shall be allocated 
 93.26  to each county or tribe in proportion to the county's or tribe's 
 93.27  share of the statewide 2002 historic spending base. 
 93.28     (c) For calendar year 2005, the commissioner shall 
 93.29  determine the initial allocation of funds to be made available 
 93.30  under this section in proportion to the county or tribe's 
 93.31  initial allocation for the period of July 1, 2003 to December 
 93.32  31, 2004. 
 93.33     (d) The formula under this subdivision sunsets December 31, 
 93.34  2005. 
 93.35     (e) Before November 30, 2003, a county or tribe may ask for 
 93.36  a review of the commissioner's determination of the historic 
 94.1   base spending when the county or tribe believes the 2002 
 94.2   information was inaccurate or incomplete.  By January 1, 2004, 
 94.3   the commissioner must adjust that county's or tribe's base when 
 94.4   the commissioner has determined that inaccurate or incomplete 
 94.5   information was used to develop that base.  The commissioner 
 94.6   shall adjust each county's or tribe's initial allocation under 
 94.7   paragraph (c) and final allocation under subdivision 7 to 
 94.8   reflect the base change. 
 94.9      (f) Effective January 1, 2005, counties and tribes will 
 94.10  have their final allocations adjusted based on the performance 
 94.11  provisions of subdivision 7. 
 94.12     Subd. 7.  [PERFORMANCE BASE FUNDS.] (a) Each county and 
 94.13  tribe will be allocated 95 percent of their initial calendar 
 94.14  year 2005 allocation.  Counties and tribes will be allocated 
 94.15  additional funds based on performance as follows: 
 94.16     (1) a county or tribe that achieves a 50 percent rate or 
 94.17  higher on the MFIP participation rate under section 256J.751, 
 94.18  subdivision 2, clause (8), as averaged across the four quarterly 
 94.19  measurements for the most recent year for which the measurements 
 94.20  are available, will receive an additional allocation equal to 
 94.21  2.5 percent of its initial allocation; and 
 94.22     (2) a county or tribe that performs above the top of its 
 94.23  range of expected performance on the three-year self-support 
 94.24  index under section 256J.751, subdivision 2, clause (7), in both 
 94.25  measurements in the preceding year will receive an additional 
 94.26  allocation equal to five percent of its initial allocation; or 
 94.27     (3) a county or tribe that performs within its range of 
 94.28  expected performance on the three-year self-support index under 
 94.29  section 256J.751, subdivision 2, clause (7), in both 
 94.30  measurements in the preceding year, or above the top of its 
 94.31  range of expected performance in one measurement and within its 
 94.32  expected range of performance in the other measurement, will 
 94.33  receive an additional allocation equal to 2.5 percent of its 
 94.34  initial allocation. 
 94.35     (b) Funds remaining unallocated after the performance-based 
 94.36  allocations in paragraph (a) are available to the commissioner 
 95.1   for innovation projects under subdivision 5. 
 95.2      (c)(1) If available funds are insufficient to meet county 
 95.3   and tribal allocations under paragraph (a), the commissioner may 
 95.4   make available for allocation funds that are unobligated and 
 95.5   available from the innovation projects through the end of the 
 95.6   current biennium. 
 95.7      (2) If after the application of clause (1) funds remain 
 95.8   insufficient to meet county and tribal allocations under 
 95.9   paragraph (a), the commissioner must proportionally reduce the 
 95.10  allocation of each county and tribe with respect to their 
 95.11  maximum allocation available under paragraph (a). 
 95.12     Subd. 8.  [REPORTING REQUIREMENT AND REIMBURSEMENT.] (a) 
 95.13  The commissioner shall specify requirements for reporting 
 95.14  according to section 256.01, subdivision 2, clause (17).  Each 
 95.15  county or tribe shall be reimbursed for eligible expenditures up 
 95.16  to the limit of its allocation and subject to availability of 
 95.17  funds. 
 95.18     (b) Reimbursements for county administrative-related 
 95.19  expenditures determined through the income maintenance random 
 95.20  moment time study shall be reimbursed at a rate of 50 percent of 
 95.21  eligible expenditures.  
 95.22     (c) The commissioner of human services shall review county 
 95.23  and tribal agency expenditures of the MFIP consolidated fund as 
 95.24  appropriate and may reallocate unencumbered or unexpended money 
 95.25  appropriated under this section to those county and tribal 
 95.26  agencies that can demonstrate a need for additional money. 
 95.27     Subd. 9.  [REPORT.] The commissioner shall, in consultation 
 95.28  with counties and tribes: 
 95.29     (1) determine how performance-based allocations under 
 95.30  subdivision 7, paragraph (a), clauses (2) and (3), will be 
 95.31  allocated to groupings of counties and tribes when groupings are 
 95.32  used to measure expected performance ranges for the self-support 
 95.33  index under section 256J.751, subdivision 2, clause (7); and 
 95.34     (2) determine how performance-based allocations under 
 95.35  subdivision 7, paragraph (a), clauses (2) and (3), will be 
 95.36  allocated to tribes. 
 96.1   The commissioner shall report to the legislature on the formulas 
 96.2   developed in clauses (1) and (2) by January 1, 2004. 
 96.3      Sec. 95.  Minnesota Statutes 2002, section 256J.645, 
 96.4   subdivision 3, is amended to read: 
 96.5      Subd. 3.  [FUNDING.] If the commissioner and an Indian 
 96.6   tribe are parties to an agreement under this subdivision, the 
 96.7   agreement shall annually provide to the Indian tribe the funding 
 96.8   allocated in section 256J.62, subdivisions 1 and 2a 256J.626. 
 96.9      Sec. 96.  Minnesota Statutes 2002, section 256J.66, 
 96.10  subdivision 2, is amended to read: 
 96.11     Subd. 2.  [TRAINING AND PLACEMENT.] (a) County agencies 
 96.12  shall limit the length of training based on the complexity of 
 96.13  the job and the caregiver's previous experience and training.  
 96.14  Placement in an on-the-job training position with an employer is 
 96.15  for the purpose of training and employment with the same 
 96.16  employer who has agreed to retain the person upon satisfactory 
 96.17  completion of training. 
 96.18     (b) Placement of any participant in an on-the-job training 
 96.19  position must be compatible with the participant's assessment 
 96.20  and employment plan under section 256J.52 256J.521. 
 96.21     Sec. 97.  Minnesota Statutes 2002, section 256J.69, 
 96.22  subdivision 2, is amended to read: 
 96.23     Subd. 2.  [TRAINING AND PLACEMENT.] (a) County agencies 
 96.24  shall limit the length of training to nine months.  Placement in 
 96.25  a grant diversion training position with an employer is for the 
 96.26  purpose of training and employment with the same employer who 
 96.27  has agreed to retain the person upon satisfactory completion of 
 96.28  training. 
 96.29     (b) Placement of any participant in a grant diversion 
 96.30  subsidized training position must be compatible with the 
 96.31  assessment and employment plan or employability development plan 
 96.32  established for the recipient under section 256J.52 or 256K.03, 
 96.33  subdivision 8 256J.521. 
 96.34     Sec. 98.  Minnesota Statutes 2002, section 256J.75, 
 96.35  subdivision 3, is amended to read: 
 96.36     Subd. 3.  [RESPONSIBILITY FOR INCORRECT ASSISTANCE 
 97.1   PAYMENTS.] A county of residence, when different from the county 
 97.2   of financial responsibility, will be charged by the commissioner 
 97.3   for the value of incorrect assistance payments and medical 
 97.4   assistance paid to or on behalf of a person who was not eligible 
 97.5   to receive that amount.  Incorrect payments include payments to 
 97.6   an ineligible person or family resulting from decisions, 
 97.7   failures to act, miscalculations, or overdue recertification.  
 97.8   However, financial responsibility does not accrue for a county 
 97.9   when the recertification is overdue at the time the referral is 
 97.10  received by the county of residence or when the county of 
 97.11  financial responsibility does not act on the recommendation of 
 97.12  the county of residence.  When federal or state law requires 
 97.13  that medical assistance continue after assistance ends, this 
 97.14  subdivision also governs financial responsibility for the 
 97.15  extended medical assistance. 
 97.16     Sec. 99.  Minnesota Statutes 2002, section 256J.751, 
 97.17  subdivision 1, is amended to read: 
 97.18     Subdivision 1.  [QUARTERLY MONTHLY COUNTY CASELOAD REPORT.] 
 97.19  The commissioner shall report quarterly monthly to each county 
 97.20  on the county's performance on the following measures following 
 97.21  caseload information: 
 97.22     (1) number of cases receiving only the food portion of 
 97.23  assistance; 
 97.24     (2) number of child-only cases; 
 97.25     (3) number of minor caregivers; 
 97.26     (4) number of cases that are exempt from the 60-month time 
 97.27  limit by the exemption category under section 256J.42; 
 97.28     (5) number of participants who are exempt from employment 
 97.29  and training services requirements by the exemption category 
 97.30  under section 256J.56; 
 97.31     (6) number of assistance units receiving assistance under a 
 97.32  hardship extension under section 256J.425; 
 97.33     (7) number of participants and number of months spent in 
 97.34  each level of sanction under section 256J.46, subdivision 1; 
 97.35     (8) number of MFIP cases that have left assistance; 
 97.36     (9) federal participation requirements as specified in 
 98.1   title 1 of Public Law Number 104-193; 
 98.2      (10) median placement wage rate; and 
 98.3      (11) of each county's total MFIP caseload less the number 
 98.4   of cases in clauses (1) to (6): 
 98.5      (i) number of one-parent cases; 
 98.6      (ii) number of two-parent cases; 
 98.7      (iii) percent of one-parent cases that are working more 
 98.8   than 20 hours per week; 
 98.9      (iv) percent of two-parent cases that are working more than 
 98.10  20 hours per week; and 
 98.11     (v) percent of cases that have received more than 36 months 
 98.12  of assistance. 
 98.13     (1) total number of cases receiving MFIP, and subtotals of 
 98.14  cases with one eligible parent, two eligible parents, and an 
 98.15  eligible caregiver who is not a parent; 
 98.16     (2) total number of child only assistance cases; 
 98.17     (3) total number of eligible adults and children receiving 
 98.18  an MFIP grant, and subtotals for cases with one eligible parent, 
 98.19  two eligible parents, an eligible caregiver who is not a parent, 
 98.20  and child only cases; 
 98.21     (4) number of cases with an exemption from the 60-month 
 98.22  time limit based on a family violence waiver; 
 98.23     (5) number of MFIP cases with work hours, and subtotals for 
 98.24  cases with one eligible parent, two eligible parents, and an 
 98.25  eligible caregiver who is not a parent; 
 98.26     (6) number of employed MFIP cases, and subtotals for cases 
 98.27  with one eligible parent, two eligible parents, and an eligible 
 98.28  caregiver who is not a parent; 
 98.29     (7) average monthly gross earnings, and averages for 
 98.30  subgroups of cases with one eligible parent, two eligible 
 98.31  parents, and an eligible caregiver who is not a parent; 
 98.32     (8) number of employed cases receiving only the food 
 98.33  portion of assistance; 
 98.34     (9) number of parents or caregivers exempt from work 
 98.35  activity requirements, with subtotals for each exemption type; 
 98.36  and 
 99.1      (10) number of cases with a sanction, with subtotals by 
 99.2   level of sanction for cases with one eligible parent, two 
 99.3   eligible parents, and an eligible caregiver who is not a parent. 
 99.4      Sec. 100.  Minnesota Statutes 2002, section 256J.751, 
 99.5   subdivision 2, is amended to read: 
 99.6      Subd. 2.  [QUARTERLY COMPARISON REPORT.] The commissioner 
 99.7   shall report quarterly to all counties on each county's 
 99.8   performance on the following measures: 
 99.9      (1) percent of MFIP caseload working in paid employment; 
 99.10     (2) percent of MFIP caseload receiving only the food 
 99.11  portion of assistance; 
 99.12     (3) number of MFIP cases that have left assistance; 
 99.13     (4) federal participation requirements as specified in 
 99.14  Title 1 of Public Law Number 104-193; 
 99.15     (5) median placement wage rate; and 
 99.16     (6) caseload by months of TANF assistance; 
 99.17     (7) percent of MFIP cases off cash assistance or working 30 
 99.18  or more hours per week at one-year, two-year, and three-year 
 99.19  follow-up points from a base line quarter.  This measure is 
 99.20  called the self-support index.  Twice annually, the commissioner 
 99.21  shall report an expected range of performance for each county, 
 99.22  county grouping, and tribe on the self-support index.  The 
 99.23  expected range shall be derived by a statistical methodology 
 99.24  developed by the commissioner in consultation with the counties 
 99.25  and tribes.  The statistical methodology shall control 
 99.26  differences across counties in economic conditions and 
 99.27  demographics of the MFIP case load; and 
 99.28     (8) the MFIP work participation rate, defined as the 
 99.29  participation requirements specified in title 1 of Public Law 
 99.30  104-193 applied to all MFIP cases except child only cases and 
 99.31  cases exempt under section 256J.56. 
 99.32     Sec. 101.  Minnesota Statutes 2002, section 256J.751, 
 99.33  subdivision 5, is amended to read: 
 99.34     Subd. 5.  [FAILURE TO MEET FEDERAL PERFORMANCE STANDARDS.] 
 99.35  (a) If sanctions occur for failure to meet the performance 
 99.36  standards specified in title 1 of Public Law Number 104-193 of 
100.1   the Personal Responsibility and Work Opportunity Act of 1996, 
100.2   the state shall pay 88 percent of the sanction.  The remaining 
100.3   12 percent of the sanction will be paid by the counties.  The 
100.4   county portion of the sanction will be distributed across all 
100.5   counties in proportion to each county's percentage of the MFIP 
100.6   average monthly caseload during the period for which the 
100.7   sanction was applied. 
100.8      (b) If a county fails to meet the performance standards 
100.9   specified in title 1 of Public Law Number 104-193 of the 
100.10  Personal Responsibility and Work Opportunity Act of 1996 for any 
100.11  year, the commissioner shall work with counties to organize a 
100.12  joint state-county technical assistance team to work with the 
100.13  county.  The commissioner shall coordinate any technical 
100.14  assistance with other departments and agencies including the 
100.15  departments of economic security and children, families, and 
100.16  learning as necessary to achieve the purpose of this paragraph. 
100.17     (c) For state performance measures, a low-performing county 
100.18  is one that: 
100.19     (1) performs below the bottom of their expected range for 
100.20  the measure in subdivision 2, clause (7), in both measurements 
100.21  during the year; or 
100.22     (2) performs below 40 percent for the measure in 
100.23  subdivision 2, clause (8), as averaged across the four quarterly 
100.24  measurements for the year, or the ten counties with the lowest 
100.25  rates if more than ten are below 40 percent. 
100.26     (d) Low-performing counties under paragraph (c) must engage 
100.27  in corrective action planning as defined by the commissioner.  
100.28  The commissioner may coordinate technical assistance as 
100.29  specified in paragraph (b) for low-performing counties under 
100.30  paragraph (c). 
100.31     Sec. 102.  [256J.95] [DIVERSIONARY WORK PROGRAM.] 
100.32     Subdivision 1.  [ESTABLISHING A DIVERSIONARY WORK PROGRAM 
100.33  (DWP).] (a) The Personal Responsibility and Work Opportunity 
100.34  Reconciliation Act of 1996, Public Law 104-193, establishes 
100.35  block grants to states for temporary assistance for needy 
100.36  families (TANF).  TANF provisions allow states to use TANF 
101.1   dollars for nonrecurrent, short-term diversionary benefits.  The 
101.2   diversionary work program established on July 1, 2003, is 
101.3   Minnesota's TANF program to provide short-term diversionary 
101.4   benefits to eligible recipients of the diversionary work program.
101.5      (b) The goal of the diversionary work program is to provide 
101.6   short-term, necessary services and supports to families which 
101.7   will lead to unsubsidized employment, increase economic 
101.8   stability, and reduce the risk of those families needing longer 
101.9   term assistance, under the Minnesota family investment program 
101.10  (MFIP). 
101.11     (c) When a family unit meets the eligibility criteria in 
101.12  this section, the family must receive a diversionary work 
101.13  program grant and is not eligible for MFIP. 
101.14     (d) A family unit is eligible for the diversionary work 
101.15  program for a maximum of four months only once in a 12-month 
101.16  period.  The 12-month period begins at the date of application 
101.17  or the date eligibility is met, whichever is later.  During the 
101.18  four-month period, family maintenance needs as defined in 
101.19  subdivision 2, shall be vendor paid, up to the cash portion of 
101.20  the MFIP standard of need for the same size household.  To the 
101.21  extent there is a balance available between the amount paid for 
101.22  family maintenance needs and the cash portion of the 
101.23  transitional standard, a personal needs allowance of up to $70 
101.24  per DWP recipient in the family unit shall be issued.  The 
101.25  personal needs allowance payment plus the family maintenance 
101.26  needs shall not exceed the cash portion of the MFIP standard of 
101.27  need.  Counties may provide supportive and other allowable 
101.28  services funded by the MFIP consolidated fund under section 
101.29  256J.626 to eligible participants during the four-month 
101.30  diversionary period. 
101.31     Subd. 2.  [DEFINITIONS.] The terms used in this section 
101.32  have the following meanings. 
101.33     (a) "Diversionary Work Program (DWP)" means the program 
101.34  established under this section. 
101.35     (b) "Employment plan" means a plan developed by the job 
101.36  counselor and the participant which identifies the participant's 
102.1   most direct path to unsubsidized employment, lists the specific 
102.2   steps that the caregiver will take on that path, and includes a 
102.3   timetable for the completion of each step.  For participants who 
102.4   request and qualify for a family violence waiver in section 
102.5   256J.521, subdivision 3, an employment plan must be developed by 
102.6   the job counselor, the participant and a person trained in 
102.7   domestic violence and follow the employment plan provisions in 
102.8   section 256J.521, subdivision 3.  Employment plans under this 
102.9   section shall be written for a period of time not to exceed four 
102.10  months. 
102.11     (c) "Employment services" means programs, activities, and 
102.12  services in this section that are designed to assist 
102.13  participants in obtaining and retaining employment. 
102.14     (d) "Family maintenance needs" means current housing costs 
102.15  including rent, manufactured home lot rental costs, or monthly 
102.16  principal, interest, insurance premiums, and property taxes due 
102.17  for mortgages or contracts for deed, association fees required 
102.18  for homeownership, utility costs for current month expenses of 
102.19  gas and electric, garbage, water and sewer, and a flat rate of 
102.20  $35 for telephone services. 
102.21     (e) "Family unit" means a group of people applying for or 
102.22  receiving DWP benefits together.  For the purposes of 
102.23  determining eligibility for this program, the unit includes the 
102.24  relationships in section 256J.24, subdivisions 2 and 4. 
102.25     (f) "Minnesota family investment program (MFIP)" means the 
102.26  assistance program as defined in section 256J.08, subdivision 57.
102.27     (g) "Personal needs allowance" means an allowance of up to 
102.28  $70 per month per DWP unit member to pay for expenses such as 
102.29  household products and personal products. 
102.30     (h) "Work activities" means allowable work activities as 
102.31  defined in section 256J.49, subdivision 13. 
102.32     Subd. 3.  [ELIGIBILITY FOR DIVERSIONARY WORK PROGRAM.] (a) 
102.33  Except for the categories of family units listed below, all 
102.34  family units who apply for cash benefits and who meet MFIP 
102.35  eligibility as required in sections 256J.11 to 256J.15 are 
102.36  eligible and must participate in the diversionary work program.  
103.1   Family units that are not eligible for the diversionary work 
103.2   program include: 
103.3      (1) child only cases; 
103.4      (2) a single-parent family unit that includes a child under 
103.5   12 weeks of age.  A parent is eligible for this exception once 
103.6   in a parent's lifetime and is not eligible if the parent has 
103.7   already used the previously allowed child under age one 
103.8   exemption from MFIP employment services; 
103.9      (3) a minor parent without a high school diploma or its 
103.10  equivalent; 
103.11     (4) a caregiver 18 or 19 years of age without a high school 
103.12  diploma or its equivalent who chooses to have an employment plan 
103.13  with an education option; 
103.14     (5) a caregiver age 60 or over; 
103.15     (6) family units with a parent who received DWP benefits 
103.16  within a 12-month period as defined in subdivision 1, paragraph 
103.17  (d); and 
103.18     (7) family units with a parent who received MFIP within the 
103.19  past 12 months. 
103.20     (b) A two-parent family must participate in DWP unless both 
103.21  parents meet the criteria for an exception under paragraph (a), 
103.22  clauses (1) through (5), or the family unit includes a parent 
103.23  who meets the criteria in paragraph (a), clause (6) or (7). 
103.24     Subd. 4.  [COOPERATION WITH PROGRAM REQUIREMENTS.] (a) To 
103.25  be eligible for DWP, an applicant must comply with the 
103.26  requirements of paragraphs (b) to (d). 
103.27     (b) Applicants and participants must cooperate with the 
103.28  requirements of the child support enforcement program, but will 
103.29  not be charged a fee under section 518.551, subdivision 7. 
103.30     (c) The applicant must provide each member of the family 
103.31  unit's social security number to the county agency.  This 
103.32  requirement is satisfied when each member of the family unit 
103.33  cooperates with the procedures for verification of numbers, 
103.34  issuance of duplicate cards, and issuance of new numbers which 
103.35  have been established jointly between the Social Security 
103.36  Administration and the commissioner. 
104.1      (d) Before DWP benefits can be issued to a family unit, the 
104.2   caregiver must, in conjunction with a job counselor, develop and 
104.3   sign an employment plan.  In two-parent family units, both 
104.4   parents must develop and sign employment plans before benefits 
104.5   can be issued.  Food support and health care benefits are not 
104.6   contingent on the requirement for a signed employment plan. 
104.7      Subd. 5.  [SUBMITTING APPLICATION FORM.] The eligibility 
104.8   date for the diversionary work program begins with the date the 
104.9   signed combined application form (CAF) is received by the county 
104.10  agency or the date diversionary work program eligibility 
104.11  criteria are met, whichever is later.  The county agency must 
104.12  inform the applicant that any delay in submitting the 
104.13  application will reduce the benefits paid for the month of 
104.14  application.  The county agency must inform a person that an 
104.15  application may be submitted before the person has an interview 
104.16  appointment.  Upon receipt of a signed application, the county 
104.17  agency must stamp the date of receipt on the face of the 
104.18  application.  The applicant may withdraw the application at any 
104.19  time prior to approval by giving written or oral notice to the 
104.20  county agency.  The county agency must follow the notice 
104.21  requirements in section 256J.09, subdivision 3, when issuing a 
104.22  notice confirming the withdrawal. 
104.23     Subd. 6.  [INITIAL SCREENING OF APPLICATIONS.] Upon receipt 
104.24  of the application, the county agency must determine if the 
104.25  applicant may be eligible for other benefits as required in 
104.26  sections 256J.09, subdivision 3a, and 256J.28, subdivisions 1 
104.27  and 5.  The county must also follow the provisions in section 
104.28  256J.09, subdivision 3b, clause (2). 
104.29     Subd. 7.  [PROGRAM AND PROCESSING STANDARDS.] (a) The 
104.30  interview to determine financial eligibility for the 
104.31  diversionary work program must be conducted within five working 
104.32  days of the receipt of the cash application form.  During the 
104.33  intake interview the financial worker must discuss: 
104.34     (1) the goals, requirements, and services of the 
104.35  diversionary work program; 
104.36     (2) the availability of child care assistance.  If child 
105.1   care is needed, the worker must obtain a completed application 
105.2   for child care from the applicant before the interview is 
105.3   terminated.  The same day the application for child care is 
105.4   received, the application must be forwarded to the appropriate 
105.5   child care worker.  For purposes of eligibility for child care 
105.6   assistance under chapter 119B, DWP participants shall be 
105.7   eligible for the same benefits as MFIP recipients; and 
105.8      (3) if the applicant has not requested food support and 
105.9   health care assistance on the application, the county agency 
105.10  shall, during the interview process, talk with the applicant 
105.11  about the availability of these benefits. 
105.12     (b) The county shall follow section 256J.74, subdivision 2, 
105.13  paragraph (b), clauses (1) and (2), when an applicant or a 
105.14  recipient of DWP has a person who is a member of more than one 
105.15  assistance unit in a given payment month. 
105.16     (c) If within 30 days the county agency cannot determine 
105.17  eligibility for the diversionary work program, the county must 
105.18  deny the application and inform the applicant of the decision 
105.19  according to the notice provisions in section 256J.31.  A family 
105.20  unit is eligible for a fair hearing under section 256J.40.  
105.21     Subd. 8.  [VERIFICATION REQUIREMENTS.] (a) A county agency 
105.22  must only require verification of information necessary to 
105.23  determine DWP eligibility and the amount of the payment.  The 
105.24  applicant or participant must document the information required 
105.25  or authorize the county agency to verify the information.  The 
105.26  applicant or participant has the burden of providing documentary 
105.27  evidence to verify eligibility.  The county agency shall assist 
105.28  the applicant or participant in obtaining required documents 
105.29  when the applicant or participant is unable to do so. 
105.30     (b) A county agency must not request information about an 
105.31  applicant or participant that is not a matter of public record 
105.32  from a source other than county agencies, the department of 
105.33  human services, or the United States Department of Health and 
105.34  Human Services without the person's prior written consent.  An 
105.35  applicant's signature on an application form constitutes consent 
105.36  for contact with the sources specified on the application.  A 
106.1   county agency may use a single consent form to contact a group 
106.2   of similar sources, but the sources to be contacted must be 
106.3   identified by the county agency prior to requesting an 
106.4   applicant's consent. 
106.5      (c) Factors to be verified shall follow section 256J.32, 
106.6   subdivision 4.  Except for personal needs, family maintenance 
106.7   needs must be verified before the expense can be allowed in the 
106.8   calculation of the DWP grant. 
106.9      Subd. 9.  [PROPERTY AND INCOME LIMITATIONS.] The asset 
106.10  limits and exclusions in section 256J.20, apply to applicants 
106.11  and recipients of DWP.  All payments, unless excluded in section 
106.12  256J.21, must be counted as income to determine eligibility for 
106.13  the diversionary work program.  The county shall treat income as 
106.14  outlined in section 256J.37, except for subdivision 3a.  The 
106.15  initial income test and the disregards in section 256J.21, 
106.16  subdivision 3, shall be followed for determining eligibility for 
106.17  the diversionary work program. 
106.18     Subd. 10.  [DIVERSIONARY WORK PROGRAM GRANT.] (a) The 
106.19  amount of cash benefits that a family unit is eligible for under 
106.20  the diversionary work program is based on the number of persons 
106.21  in the family unit, the family maintenance needs, personal needs 
106.22  allowance, and countable income.  The county agency shall 
106.23  evaluate the income of the family unit that is requesting 
106.24  payments under the diversionary work program.  Countable income 
106.25  means gross earned and unearned income not excluded or 
106.26  disregarded under MFIP.  The same disregards for earned income 
106.27  that are allowed under MFIP are allowed for the diversionary 
106.28  work program. 
106.29     (b) The DWP grant is based on the family maintenance needs 
106.30  for which the DWP family unit is responsible plus a personal 
106.31  needs allowance.  Housing and utilities, except for telephone 
106.32  service, shall be vendor paid.  Unless otherwise stated in this 
106.33  section, actual housing and utility expenses shall be used when 
106.34  determining the amount of the DWP grant. 
106.35     (c) The maximum monthly benefit amount available under the 
106.36  diversionary work program is the difference between the family 
107.1   unit's needs under paragraph (b) and the family unit's countable 
107.2   income not to exceed the cash portion of the MFIP standard of 
107.3   need as defined in section 256J.08, subdivision 55a, for the 
107.4   family unit's size.  
107.5      (d) Once the county has determined a grant amount, the DWP 
107.6   grant amount will not be decreased if the determination is based 
107.7   on the best information available at the time of approval and 
107.8   shall not be decreased because of any additional income to the 
107.9   family unit.  The grant must be increased if a participant later 
107.10  verifies an increase in family maintenance needs or family unit 
107.11  size.  The minimum cash benefit amount, if income and asset 
107.12  tests are met, is $10.  Benefits of $10 shall not be vendor paid.
107.13     (e) When all criteria are met, including the development of 
107.14  an employment plan as described in subdivision 14 and 
107.15  eligibility exists for the month of application, the amount of 
107.16  benefits for the diversionary work program retroactive to the 
107.17  date of application is as specified in section 256J.35, 
107.18  paragraph (a). 
107.19     (f) Any month during the four-month DWP period that a 
107.20  person receives a DWP benefit directly or through a vendor 
107.21  payment made on the person's behalf, that person is ineligible 
107.22  for MFIP or any other TANF cash assistance program except for 
107.23  benefits defined in section 256J.626, subdivision 2, clause (1). 
107.24     If during the four-month period a family unit that receives 
107.25  DWP benefits moves to a county that has not established a 
107.26  diversionary work program, the family unit may be eligible for 
107.27  MFIP the month following the last month of the issuance of the 
107.28  DWP benefit. 
107.29     Subd. 11.  [UNIVERSAL PARTICIPATION REQUIRED.] (a) All DWP 
107.30  caregivers, except caregivers who meet the criteria in paragraph 
107.31  (d), are required to participate in DWP employment services.  
107.32  Except as specified in paragraphs (b) and (c), employment plans 
107.33  under DWP must, at a minimum, meet the requirements in section 
107.34  256J.55, subdivision 1. 
107.35     (b) A caregiver who is a member of a two-parent family that 
107.36  is required to participate in DWP who would otherwise be 
108.1   ineligible for DWP under subdivision 3 may be allowed to develop 
108.2   an employment plan under section 256J.521, subdivision 2, 
108.3   paragraph (c), that may contain alternate activities and reduced 
108.4   hours.  
108.5      (c) A participant who has a family violence waiver shall be 
108.6   allowed to develop an employment plan under section 256J.521, 
108.7   subdivision 3. 
108.8      (d) One parent in a two-parent family unit that has a 
108.9   natural born child under 12 weeks of age is not required to have 
108.10  an employment plan until the child reaches 12 weeks of age 
108.11  unless the family unit has already used the exclusion under 
108.12  section 256J.561, subdivision 2, or the previously allowed child 
108.13  under age one exemption under section 256J.56, paragraph (a), 
108.14  clause (5). 
108.15     (e) The provision in paragraph (d) ends the first full 
108.16  month after the child reaches 12 weeks of age.  This provision 
108.17  is allowable only once in a caregiver's lifetime.  In a 
108.18  two-parent household, only one parent shall be allowed to use 
108.19  this category. 
108.20     (f) The participant and job counselor must meet within ten 
108.21  working days after the child reaches 12 weeks of age to revise 
108.22  the participant's employment plan.  The employment plan for a 
108.23  family unit that has a child under 12 weeks of age that has 
108.24  already used the exclusion in section 256J.561 or the previously 
108.25  allowed child under age one exemption under section 256J.56, 
108.26  paragraph (a), clause (5), must be tailored to recognize the 
108.27  caregiving needs of the parent. 
108.28     Subd. 12.  [CONVERSION OR REFERRAL TO MFIP.] (a) If at any 
108.29  time during the DWP application process or during the four-month 
108.30  DWP eligibility period, it is determined that a participant is 
108.31  unlikely to benefit from the diversionary work program, the 
108.32  county shall convert or refer the participant to MFIP as 
108.33  specified in paragraph (d).  Participants who are determined to 
108.34  be unlikely to benefit from the diversionary work program must 
108.35  develop and sign an employment plan.  Participants who meet any 
108.36  one of the criteria in paragraph (b) shall be considered to be 
109.1   unlikely to benefit from DWP, provided the necessary 
109.2   documentation is available to support the determination. 
109.3      (b) A participant who: 
109.4      (1) has been determined by a qualified professional as 
109.5   being unable to obtain or retain employment due to an illness, 
109.6   injury, or incapacity that is expected to last at least 60 days; 
109.7      (2) is required in the home as a caregiver because of the 
109.8   illness, injury, or incapacity, of a family member, or a 
109.9   relative in the household, or a foster child, and the illness, 
109.10  injury, or incapacity and the need for a person to provide 
109.11  assistance in the home has been certified by a qualified 
109.12  professional and is expected to continue more than 60 days; 
109.13     (3) is determined by a qualified professional as being 
109.14  needed in the home to care for a child meeting the special 
109.15  medical criteria in section 256J.425, subdivision 2, clause (3); 
109.16     (4) is pregnant and is determined by a qualified 
109.17  professional as being unable to obtain or retain employment due 
109.18  to the pregnancy; or 
109.19     (5) has applied for SSI or RSDI. 
109.20     (c) In a two-parent family unit, both parents must be 
109.21  determined to be unlikely to benefit from the diversionary work 
109.22  program before the family unit can be converted or referred to 
109.23  MFIP. 
109.24     (d) A participant who is determined to be unlikely to 
109.25  benefit from the diversionary work program shall be converted to 
109.26  MFIP and, if the determination was made within 30 days of the 
109.27  initial application for benefits, no additional application form 
109.28  is required.  A participant who is determined to be unlikely to 
109.29  benefit from the diversionary work program shall be referred to 
109.30  MFIP and, if the determination is made more than 30 days after 
109.31  the initial application, the participant must submit a program 
109.32  change request form.  The county agency shall process the 
109.33  program change request form by the first of the following month 
109.34  to ensure that no gap in benefits is due to delayed action by 
109.35  the county agency.  In processing the program change request 
109.36  form, the county must follow section 256J.32, subdivision 1, 
110.1   except that the county agency shall not require additional 
110.2   verification of the information in the case file from the DWP 
110.3   application unless the information in the case file is 
110.4   inaccurate, questionable, or no longer current. 
110.5      (e) The county shall not request a combined application 
110.6   form for a participant who has exhausted the four months of the 
110.7   diversionary work program, has continued need for cash and food 
110.8   assistance, and has completed, signed, and submitted a program 
110.9   change request form within 30 days of the fourth month of the 
110.10  diversionary work program.  The county must process the program 
110.11  change request according to section 256J.32, subdivision 1, 
110.12  except that the county agency shall not require additional 
110.13  verification of information in the case file unless the 
110.14  information is inaccurate, questionable, or no longer current.  
110.15  When a participant does not request MFIP within 30 days of the 
110.16  diversionary work program benefits being exhausted, a new 
110.17  combined application form must be completed for any subsequent 
110.18  request for MFIP. 
110.19     Subd. 13.  [IMMEDIATE REFERRAL TO EMPLOYMENT SERVICES.] 
110.20  Within one working day of determination that the applicant is 
110.21  eligible for the diversionary work program, but before benefits 
110.22  are issued to or on behalf of the family unit, the county shall 
110.23  refer all caregivers to employment services.  The referral to 
110.24  the DWP employment services must be in writing and must contain 
110.25  the following information: 
110.26     (1) notification that, as part of the application process, 
110.27  applicants are required to develop an employment plan or the DWP 
110.28  application will be denied; 
110.29     (2) the employment services provider name and phone number; 
110.30     (3) the date, time, and location of the scheduled 
110.31  employment services interview; 
110.32     (4) the immediate availability of supportive services, 
110.33  including, but not limited to, child care, transportation, and 
110.34  other work-related aid; and 
110.35     (5) the rights, responsibilities, and obligations of 
110.36  participants in the program, including, but not limited to, the 
111.1   grounds for good cause, the consequences of refusing or failing 
111.2   to participate fully with program requirements, and the appeal 
111.3   process. 
111.4      Subd. 14.  [EMPLOYMENT PLAN; DWP BENEFITS.] As soon as 
111.5   possible, but no later than ten working days of being notified 
111.6   that a participant is financially eligible for the diversionary 
111.7   work program, the employment services provider shall provide the 
111.8   participant with an opportunity to meet to develop an initial 
111.9   employment plan.  Once the initial employment plan has been 
111.10  developed and signed by the participant and the job counselor, 
111.11  the employment services provider shall notify the county within 
111.12  one working day that the employment plan has been signed.  The 
111.13  county shall issue DWP benefits within one working day after 
111.14  receiving notice that the employment plan has been signed. 
111.15     Subd. 15.  [LIMITATIONS ON CERTAIN WORK ACTIVITIES.] (a) 
111.16  Except as specified in paragraphs (b) to (d), employment 
111.17  activities listed in section 256J.49, subdivision 13, are 
111.18  allowable under the diversionary work program. 
111.19     (b) Work activities under section 256J.49, subdivision 13, 
111.20  clause (5), shall be allowable only when in combination with 
111.21  approved work activities under section 256J.49, subdivision 13, 
111.22  clauses (1) to (4), and shall be limited to no more than 
111.23  one-half of the hours required in the employment plan. 
111.24     (c) In order for an English as a second language (ESL) 
111.25  class to be an approved work activity, a participant must: 
111.26     (1) be below a spoken language proficiency level of SPL6 or 
111.27  its equivalent, as measured by a nationally recognized test; and 
111.28     (2) not have been enrolled in ESL for more than 24 months 
111.29  while previously participating in MFIP or DWP.  A participant 
111.30  who has been enrolled in ESL for 20 or more months may be 
111.31  approved for ESL until the participant has received 24 total 
111.32  months. 
111.33     (d) Work activities under section 256J.49, subdivision 13, 
111.34  clause (6), shall be allowable only when the training or 
111.35  education program will be completed within the four-month DWP 
111.36  period.  Training or education programs that will not be 
112.1   completed within the four-month DWP period shall not be approved.
112.2      Subd. 16.  [FAILURE TO COMPLY WITH REQUIREMENTS.] A family 
112.3   unit that includes a participant who fails to comply with DWP 
112.4   employment service or child support enforcement requirements, 
112.5   without good cause as defined in sections 256.741 and 256J.57, 
112.6   shall be disqualified from the diversionary work program.  The 
112.7   county shall provide written notice as specified in section 
112.8   256J.31 to the participant prior to disqualifying the family 
112.9   unit due to noncompliance with employment service or child 
112.10  support.  The disqualification does not apply to food support or 
112.11  health care benefits. 
112.12     Subd. 17.  [GOOD CAUSE FOR NOT COMPLYING WITH 
112.13  REQUIREMENTS.] A participant who fails to comply with the 
112.14  requirements of the diversionary work program may claim good 
112.15  cause for reasons listed in sections 256.741 and 256J.57, 
112.16  subdivision 1, clauses (1) to (13).  The county shall not impose 
112.17  a disqualification if good cause exists. 
112.18     Subd. 18.  [REINSTATEMENT FOLLOWING DISQUALIFICATION.] A 
112.19  participant who has been disqualified from the diversionary work 
112.20  program due to noncompliance with employment services may regain 
112.21  eligibility for the diversionary work program by complying with 
112.22  program requirements.  A participant who has been disqualified 
112.23  from the diversionary work program due to noncooperation with 
112.24  child support enforcement requirements may regain eligibility by 
112.25  complying with child support requirements under section 
112.26  256.741.  Once a participant has been reinstated, the county 
112.27  shall issue prorated benefits for the remaining portion of the 
112.28  month.  A family unit that has been disqualified from the 
112.29  diversionary work program due to noncompliance shall not be 
112.30  eligible for MFIP or any other TANF cash program during the 
112.31  period of time the participant remains noncompliant.  In a 
112.32  two-parent family, both parents must be in compliance before the 
112.33  family unit can regain eligibility for benefits. 
112.34     Subd. 19.  [RECOVERY OF OVERPAYMENTS.] When an overpayment 
112.35  or an ATM error is determined, the overpayment shall be recouped 
112.36  or recovered as specified in section 256J.38. 
113.1      Subd. 20.  [IMPLEMENTATION OF DWP.] Counties may establish 
113.2   a diversionary work program according to this section any time 
113.3   on or after July 1, 2003.  Prior to establishing a diversionary 
113.4   work program, the county must notify the commissioner.  All 
113.5   counties must implement the provisions of this section no later 
113.6   than July 1, 2004. 
113.7      Sec. 103.  Minnesota Statutes 2002, section 261.063, is 
113.8   amended to read: 
113.9      261.063 [TAX LEVY FOR SOCIAL SERVICES; BOARD DUTY; 
113.10  PENALTY.] 
113.11     (a) The board of county commissioners of each county shall 
113.12  annually levy taxes and fix a rate sufficient to produce the 
113.13  full amount required for poor relief, general assistance, 
113.14  Minnesota family investment program, diversionary work program, 
113.15  county share of county and state supplemental aid to 
113.16  supplemental security income applicants or recipients, and any 
113.17  other social security measures wherein there is now or may 
113.18  hereafter be county participation, sufficient to produce the 
113.19  full amount necessary for each such item, including 
113.20  administrative expenses, for the ensuing year, within the time 
113.21  fixed by law in addition to all other tax levies and tax rates, 
113.22  however fixed or determined, and any commissioner who shall fail 
113.23  to comply herewith shall be guilty of a gross misdemeanor and 
113.24  shall be immediately removed from office by the governor.  For 
113.25  the purposes of this paragraph, "poor relief" means county 
113.26  services provided under sections 261.035, 261.04, and 261.21 to 
113.27  261.231. 
113.28     (b) Nothing within the provisions of this section shall be 
113.29  construed as requiring a county agency to provide income support 
113.30  or cash assistance to needy persons when they are no longer 
113.31  eligible for assistance under general assistance, the Minnesota 
113.32  family investment program chapter 256J, or Minnesota 
113.33  supplemental aid. 
113.34     Sec. 104.  Minnesota Statutes 2002, section 393.07, 
113.35  subdivision 10, is amended to read: 
113.36     Subd. 10.  [FEDERAL FOOD STAMP PROGRAM AND THE MATERNAL AND 
114.1   CHILD NUTRITION ACT.] (a) The local social services agency shall 
114.2   establish and administer the food stamp or support program 
114.3   according to rules of the commissioner of human services, the 
114.4   supervision of the commissioner as specified in section 256.01, 
114.5   and all federal laws and regulations.  The commissioner of human 
114.6   services shall monitor food stamp or support program delivery on 
114.7   an ongoing basis to ensure that each county complies with 
114.8   federal laws and regulations.  Program requirements to be 
114.9   monitored include, but are not limited to, number of 
114.10  applications, number of approvals, number of cases pending, 
114.11  length of time required to process each application and deliver 
114.12  benefits, number of applicants eligible for expedited issuance, 
114.13  length of time required to process and deliver expedited 
114.14  issuance, number of terminations and reasons for terminations, 
114.15  client profiles by age, household composition and income level 
114.16  and sources, and the use of phone certification and home 
114.17  visits.  The commissioner shall determine the county-by-county 
114.18  and statewide participation rate.  
114.19     (b) On July 1 of each year, the commissioner of human 
114.20  services shall determine a statewide and county-by-county food 
114.21  stamp program participation rate.  The commissioner may 
114.22  designate a different agency to administer the food stamp 
114.23  program in a county if the agency administering the program 
114.24  fails to increase the food stamp program participation rate 
114.25  among families or eligible individuals, or comply with all 
114.26  federal laws and regulations governing the food stamp program.  
114.27  The commissioner shall review agency performance annually to 
114.28  determine compliance with this paragraph. 
114.29     (c) A person who commits any of the following acts has 
114.30  violated section 256.98 or 609.821, or both, and is subject to 
114.31  both the criminal and civil penalties provided under those 
114.32  sections: 
114.33     (1) obtains or attempts to obtain, or aids or abets any 
114.34  person to obtain by means of a willful statement or 
114.35  misrepresentation, or intentional concealment of a material 
114.36  fact, food stamps or vouchers issued according to sections 
115.1   145.891 to 145.897 to which the person is not entitled or in an 
115.2   amount greater than that to which that person is entitled or 
115.3   which specify nutritional supplements to which that person is 
115.4   not entitled; or 
115.5      (2) presents or causes to be presented, coupons or vouchers 
115.6   issued according to sections 145.891 to 145.897 for payment or 
115.7   redemption knowing them to have been received, transferred or 
115.8   used in a manner contrary to existing state or federal law; or 
115.9      (3) willfully uses, possesses, or transfers food stamp 
115.10  coupons, authorization to purchase cards or vouchers issued 
115.11  according to sections 145.891 to 145.897 in any manner contrary 
115.12  to existing state or federal law, rules, or regulations; or 
115.13     (4) buys or sells food stamp coupons, authorization to 
115.14  purchase cards, other assistance transaction devices, vouchers 
115.15  issued according to sections 145.891 to 145.897, or any food 
115.16  obtained through the redemption of vouchers issued according to 
115.17  sections 145.891 to 145.897 for cash or consideration other than 
115.18  eligible food. 
115.19     (d) A peace officer or welfare fraud investigator may 
115.20  confiscate food stamps, authorization to purchase cards, or 
115.21  other assistance transaction devices found in the possession of 
115.22  any person who is neither a recipient of the food stamp program 
115.23  nor otherwise authorized to possess and use such materials.  
115.24  Confiscated property shall be disposed of as the commissioner 
115.25  may direct and consistent with state and federal food stamp 
115.26  law.  The confiscated property must be retained for a period of 
115.27  not less than 30 days to allow any affected person to appeal the 
115.28  confiscation under section 256.045. 
115.29     (e) Food stamp overpayment claims which are due in whole or 
115.30  in part to client error shall be established by the county 
115.31  agency for a period of six years from the date of any resultant 
115.32  overpayment.  
115.33     (f) With regard to the federal tax revenue offset program 
115.34  only, recovery incentives authorized by the federal food and 
115.35  consumer service shall be retained at the rate of 50 percent by 
115.36  the state agency and 50 percent by the certifying county agency. 
116.1      (g) A peace officer, welfare fraud investigator, federal 
116.2   law enforcement official, or the commissioner of health may 
116.3   confiscate vouchers found in the possession of any person who is 
116.4   neither issued vouchers under sections 145.891 to 145.897, nor 
116.5   otherwise authorized to possess and use such vouchers.  
116.6   Confiscated property shall be disposed of as the commissioner of 
116.7   health may direct and consistent with state and federal law.  
116.8   The confiscated property must be retained for a period of not 
116.9   less than 30 days. 
116.10     (h) The commissioner of human services may seek a waiver 
116.11  from the United States Department of Agriculture to allow the 
116.12  state to specify foods that may and may not be purchased in 
116.13  Minnesota with benefits funded by the federal Food Stamp 
116.14  Program.  The commissioner shall consult with the members of the 
116.15  house of representatives and senate policy committees having 
116.16  jurisdiction over food support issues in developing the waiver.  
116.17  The commissioner, in consultation with the commissioners of 
116.18  health and education, shall develop a broad public health policy 
116.19  related to improved nutrition and health status.  The 
116.20  commissioner must seek legislative approval prior to 
116.21  implementing the waiver. 
116.22     Sec. 105.  Laws 1997, chapter 203, article 9, section 21, 
116.23  as amended by Laws 1998, chapter 407, article 6, section 111, 
116.24  Laws 2000, chapter 488, article 10, section 28, and Laws 2001, 
116.25  First Special Session chapter 9, article 10, section 62, is 
116.26  amended to read: 
116.27     Sec. 21.  [INELIGIBILITY FOR STATE FUNDED PROGRAMS.] 
116.28     (a) Effective on the date specified, the following 
116.29  persons Beginning July 1, 2007, legal noncitizens ineligible for 
116.30  federally funded cash or food benefits due to 1996 changes in 
116.31  federal law and subsequent relevant enactments, who are eligible 
116.32  for state-funded MFIP cash or food assistance, will be 
116.33  ineligible for general assistance and general assistance medical 
116.34  care under Minnesota Statutes, chapter 256D, group residential 
116.35  housing under Minnesota Statutes, chapter 256I, and state-funded 
116.36  MFIP assistance under Minnesota Statutes, chapter 256J, funded 
117.1   with state money:. 
117.2      (1) Beginning July 1, 2002, persons who are terminated from 
117.3   or denied Supplemental Security Income due to the 1996 changes 
117.4   in the federal law making persons whose alcohol or drug 
117.5   addiction is a material factor contributing to the person's 
117.6   disability ineligible for Supplemental Security Income, and are 
117.7   eligible for general assistance under Minnesota Statutes, 
117.8   section 256D.05, subdivision 1, paragraph (a), clause (15), 
117.9   general assistance medical care under Minnesota Statutes, 
117.10  chapter 256D, or group residential housing under Minnesota 
117.11  Statutes, chapter 256I; and 
117.12     (2) Beginning July 1, 2002, legal noncitizens who are 
117.13  ineligible for Supplemental Security Income due to the 1996 
117.14  changes in federal law making certain noncitizens ineligible for 
117.15  these programs due to their noncitizen status; and 
117.16     (3) beginning July 1, 2003, legal noncitizens who are 
117.17  eligible for MFIP assistance, either the cash assistance portion 
117.18  or the food assistance portion, funded entirely with state money.
117.19     (b) State money that remains unspent due to changes in 
117.20  federal law enacted after May 12, 1997, that reduce state 
117.21  spending for legal noncitizens or for persons whose alcohol or 
117.22  drug addiction is a material factor contributing to the person's 
117.23  disability, or enacted after February 1, 1998, that reduce state 
117.24  spending for food benefits for legal noncitizens shall not 
117.25  cancel and shall be deposited in the TANF reserve account. 
117.26     Sec. 106.  [REVISOR'S INSTRUCTION.] 
117.27     (a) In the next publication of Minnesota Statutes, the 
117.28  revisor of statutes shall codify section 108 of this act. 
117.29     (b) Wherever "food stamp" or "food stamps" appears in 
117.30  Minnesota Statutes and Rules, the revisor of statutes shall 
117.31  insert "food support" or "or food support" except for instances 
117.32  where federal code or federal law is referenced. 
117.33     (c) For sections in Minnesota Statutes and Minnesota Rules 
117.34  affected by the repealed sections in this article, the revisor 
117.35  shall delete internal cross-references where appropriate and 
117.36  make changes necessary to correct the punctuation, grammar, or 
118.1   structure of the remaining text and preserve its meaning. 
118.2      Sec. 107.  [REPEALER.] 
118.3      (a) Minnesota Statutes 2002, sections 256J.02, subdivision 
118.4   3; 256J.08, subdivisions 28 and 70; 256J.24, subdivision 8; 
118.5   256J.30, subdivision 10; 256J.462; 256J.47; 256J.48; 256J.49, 
118.6   subdivisions 1a, 2, 6, and 7; 256J.50, subdivisions 2, 3, 3a, 5, 
118.7   and 7; 256J.52; 256J.55, subdivision 5; 256J.62, subdivisions 1, 
118.8   2a, 4, 6, 7, and 8; 256J.625; 256J.655; 256J.74, subdivision 3; 
118.9   256J.751, subdivisions 3 and 4; 256J.76; and 256K.30, are 
118.10  repealed. 
118.11     (b) Laws 2000, chapter 488, article 10, section 29, is 
118.12  repealed. 
118.13                             ARTICLE 2 
118.14                           LONG-TERM CARE 
118.15     Section 1.  Minnesota Statutes 2002, section 61A.072, 
118.16  subdivision 6, is amended to read: 
118.17     Subd. 6.  [ACCELERATED BENEFITS.] (a) "Accelerated 
118.18  benefits" covered under this section are benefits payable under 
118.19  the life insurance contract: 
118.20     (1) to a policyholder or certificate holder, during the 
118.21  lifetime of the insured, in anticipation of death upon the 
118.22  occurrence of a specified life-threatening or catastrophic 
118.23  condition as defined by the policy or rider; 
118.24     (2) that reduce the death benefit otherwise payable under 
118.25  the life insurance contract; and 
118.26     (3) that are payable upon the occurrence of a single 
118.27  qualifying event that results in the payment of a benefit amount 
118.28  fixed at the time of acceleration. 
118.29     (b) "Qualifying event" means one or more of the following: 
118.30     (1) a medical condition that would result in a drastically 
118.31  limited life span as specified in the contract; 
118.32     (2) a medical condition that has required or requires 
118.33  extraordinary medical intervention, such as, but not limited to, 
118.34  major organ transplant or continuous artificial life support 
118.35  without which the insured would die; or 
118.36     (3) a condition that requires continuous confinement in an 
119.1   eligible institution as defined in the contract if the insured 
119.2   is expected to remain there for the rest of the insured's life; 
119.3      (4) a long-term care illness or physical condition that 
119.4   results in cognitive impairment or the inability to perform the 
119.5   activities of daily life or the substantial and material duties 
119.6   of any occupation; or 
119.7      (5) other qualifying events that the commissioner approves 
119.8   for a particular filing. 
119.9      [EFFECTIVE DATE.] This section is effective the day 
119.10  following final enactment and applies to policies issued on or 
119.11  after that date. 
119.12     Sec. 2.  Minnesota Statutes 2002, section 62A.315, is 
119.13  amended to read: 
119.14     62A.315 [EXTENDED BASIC MEDICARE SUPPLEMENT PLAN; 
119.15  COVERAGE.] 
119.16     The extended basic Medicare supplement plan must have a 
119.17  level of coverage so that it will be certified as a qualified 
119.18  plan pursuant to section 62E.07, and will provide: 
119.19     (1) coverage for all of the Medicare part A inpatient 
119.20  hospital deductible and coinsurance amounts, and 100 percent of 
119.21  all Medicare part A eligible expenses for hospitalization not 
119.22  covered by Medicare; 
119.23     (2) coverage for the daily copayment amount of Medicare 
119.24  part A eligible expenses for the calendar year incurred for 
119.25  skilled nursing facility care; 
119.26     (3) coverage for the copayment amount of Medicare eligible 
119.27  expenses under Medicare part B regardless of hospital 
119.28  confinement, and the Medicare part B deductible amount; 
119.29     (4) 80 percent of the usual and customary hospital and 
119.30  medical expenses and supplies described in section 62E.06, 
119.31  subdivision 1, not to exceed any charge limitation established 
119.32  by the Medicare program or state law, the usual and customary 
119.33  hospital and medical expenses and supplies, described in section 
119.34  62E.06, subdivision 1, while in a foreign country, and 
119.35  prescription drug expenses, not covered by Medicare; 
119.36     (5) coverage for the reasonable cost of the first three 
120.1   pints of blood, or equivalent quantities of packed red blood 
120.2   cells as defined under federal regulations under Medicare parts 
120.3   A and B, unless replaced in accordance with federal regulations; 
120.4      (6) 100 percent of the cost of immunizations and routine 
120.5   screening procedures for cancer, including mammograms and pap 
120.6   smears; 
120.7      (7) preventive medical care benefit:  coverage for the 
120.8   following preventive health services: 
120.9      (i) an annual clinical preventive medical history and 
120.10  physical examination that may include tests and services from 
120.11  clause (ii) and patient education to address preventive health 
120.12  care measures; 
120.13     (ii) any one or a combination of the following preventive 
120.14  screening tests or preventive services, the frequency of which 
120.15  is considered medically appropriate: 
120.16     (A) fecal occult blood test and/or digital rectal 
120.17  examination; 
120.18     (B) dipstick urinalysis for hematuria, bacteriuria, and 
120.19  proteinuria; 
120.20     (C) pure tone (air only) hearing screening test 
120.21  administered or ordered by a physician; 
120.22     (D) serum cholesterol screening every five years; 
120.23     (E) thyroid function test; 
120.24     (F) diabetes screening; 
120.25     (iii) any other tests or preventive measures determined 
120.26  appropriate by the attending physician.  
120.27     Reimbursement shall be for the actual charges up to 100 
120.28  percent of the Medicare-approved amount for each service as if 
120.29  Medicare were to cover the service as identified in American 
120.30  Medical Association current procedural terminology (AMA CPT) 
120.31  codes to a maximum of $120 annually under this benefit.  This 
120.32  benefit shall not include payment for any procedure covered by 
120.33  Medicare; 
120.34     (8) at-home recovery benefit:  coverage for services to 
120.35  provide short-term at-home assistance with activities of daily 
120.36  living for those recovering from an illness, injury, or surgery: 
121.1      (i) for purposes of this benefit, the following definitions 
121.2   shall apply: 
121.3      (A) "activities of daily living" include, but are not 
121.4   limited to, bathing, dressing, personal hygiene, transferring, 
121.5   eating, ambulating, assistance with drugs that are normally 
121.6   self-administered, and changing bandages or other dressings; 
121.7      (B) "care provider" means a duly qualified or licensed home 
121.8   health aide/homemaker, personal care aide, or nurse provided 
121.9   through a licensed home health care agency or referred by a 
121.10  licensed referral agency or licensed nurses registry; 
121.11     (C) "home" means a place used by the insured as a place of 
121.12  residence, provided that the place would qualify as a residence 
121.13  for home health care services covered by Medicare.  A hospital 
121.14  or skilled nursing facility shall not be considered the 
121.15  insured's place of residence; 
121.16     (D) "at-home recovery visit" means the period of a visit 
121.17  required to provide at-home recovery care, without limit on the 
121.18  duration of the visit, except each consecutive four hours in a 
121.19  24-hour period of services provided by a care provider is one 
121.20  visit; 
121.21     (ii) coverage requirements and limitations: 
121.22     (A) at-home recovery services provided must be primarily 
121.23  services that assist in activities of daily living; 
121.24     (B) the insured's attending physician must certify that the 
121.25  specific type and frequency of at-home recovery services are 
121.26  necessary because of a condition for which a home care plan of 
121.27  treatment was approved by Medicare; 
121.28     (C) coverage is limited to: 
121.29     (I) no more than the number and type of at-home recovery 
121.30  visits certified as medically necessary by the insured's 
121.31  attending physician.  The total number of at-home recovery 
121.32  visits shall not exceed the number of Medicare-approved home 
121.33  health care visits under a Medicare-approved home care plan of 
121.34  treatment; 
121.35     (II) the actual charges for each visit up to a maximum 
121.36  reimbursement of $40 $100 per visit; 
122.1      (III) $1,600 $4,000 per calendar year; 
122.2      (IV) seven visits in any one week; 
122.3      (V) care furnished on a visiting basis in the insured's 
122.4   home; 
122.5      (VI) services provided by a care provider as defined in 
122.6   this section; 
122.7      (VII) at-home recovery visits while the insured is covered 
122.8   under the policy or certificate and not otherwise excluded; 
122.9      (VIII) at-home recovery visits received during the period 
122.10  the insured is receiving Medicare-approved home care services or 
122.11  no more than eight weeks after the service date of the last 
122.12  Medicare-approved home health care visit; 
122.13     (iii) coverage is excluded for: 
122.14     (A) home care visits paid for by Medicare or other 
122.15  government programs; and 
122.16     (B) care provided by family members, unpaid volunteers, or 
122.17  providers who are not care providers. 
122.18     [EFFECTIVE DATE.] This section is effective January 1, 
122.19  2004, and applies to policies issued on or after that date. 
122.20     Sec. 3.  Minnesota Statutes 2002, section 62A.48, is 
122.21  amended by adding a subdivision to read: 
122.22     Subd. 12.  [REGULATORY FLEXIBILITY.] The commissioner may 
122.23  upon written request issue an order to modify or suspend a 
122.24  specific provision or provisions of sections 62A.46 to 62A.56 
122.25  with respect to a specific long-term care insurance policy or 
122.26  certificate upon a written finding that: 
122.27     (1) the modification or suspension is in the best interest 
122.28  of the insureds; 
122.29     (2) the purpose to be achieved could not be effectively or 
122.30  efficiently achieved without the modifications or suspension; 
122.31  and 
122.32     (3)(i) the modification or suspension is necessary to the 
122.33  development of an innovative and reasonable approach for 
122.34  insuring long-term care; 
122.35     (ii) the policy or certificate is to be issued to residents 
122.36  of a life care or continuing care retirement community or some 
123.1   other residential community for the elderly and the modification 
123.2   or suspension is reasonably related to the special needs or 
123.3   nature of such a community; or 
123.4      (iii) the modification or suspension is necessary to permit 
123.5   long-term care insurance to be sold as part of, or in 
123.6   conjunction with, another insurance product. 
123.7      [EFFECTIVE DATE.] This section is effective January 1, 
123.8   2004, and applies to policies issued on or after that date. 
123.9      Sec. 4.  Minnesota Statutes 2002, section 62A.49, is 
123.10  amended by adding a subdivision to read: 
123.11     Subd. 3.  [PROHIBITED LIMITATIONS.] A long-term care 
123.12  insurance policy or certificate shall not, if it provides 
123.13  benefits for home health care or community care services, limit 
123.14  or exclude benefits by: 
123.15     (1) requiring that the insured would need care in a skilled 
123.16  nursing facility if home health care services were not provided; 
123.17     (2) requiring that the insured first or simultaneously 
123.18  receive nursing or therapeutic services in a home, community, or 
123.19  institutional setting before home health care services are 
123.20  covered; 
123.21     (3) limiting eligible services to services provided by a 
123.22  registered nurse or licensed practical nurse; 
123.23     (4) requiring that a nurse or therapist provide services 
123.24  covered by the policy that can be provided by a home health aide 
123.25  or other licensed or certified home care worker acting within 
123.26  the scope of licensure or certification; 
123.27     (5) excluding coverage for personal care services provided 
123.28  by a home health aide; 
123.29     (6) requiring that the provision of home health care 
123.30  services be at a level of certification or licensure greater 
123.31  than that required by the eligible service; 
123.32     (7) requiring that the insured have an acute condition 
123.33  before home health care services are covered; 
123.34     (8) limiting benefits to services provided by 
123.35  Medicare-certified agencies or providers; 
123.36     (9) excluding coverage for adult day care services; or 
124.1      (10) excluding coverage based upon location or type of 
124.2   residence in which the home health care services would be 
124.3   provided. 
124.4      [EFFECTIVE DATE.] This section is effective January 1, 
124.5   2004, and applies to policies issued on or after that date. 
124.6      Sec. 5.  Minnesota Statutes 2002, section 62S.22, 
124.7   subdivision 1, is amended to read: 
124.8      Subdivision 1.  [PROHIBITED LIMITATIONS.] A long-term care 
124.9   insurance policy or certificate shall not, if it provides 
124.10  benefits for home health care or community care services, limit 
124.11  or exclude benefits by: 
124.12     (1) requiring that the insured would need care in a skilled 
124.13  nursing facility if home health care services were not provided; 
124.14     (2) requiring that the insured first or simultaneously 
124.15  receive nursing or therapeutic services in a home, community, or 
124.16  institutional setting before home health care services are 
124.17  covered; 
124.18     (3) limiting eligible services to services provided by a 
124.19  registered nurse or licensed practical nurse; 
124.20     (4) requiring that a nurse or therapist provide services 
124.21  covered by the policy that can be provided by a home health aide 
124.22  or other licensed or certified home care worker acting within 
124.23  the scope of licensure or certification; 
124.24     (5) excluding coverage for personal care services provided 
124.25  by a home health aide; 
124.26     (6) requiring that the provision of home health care 
124.27  services be at a level of certification or licensure greater 
124.28  than that required by the eligible service; 
124.29     (7) requiring that the insured have an acute condition 
124.30  before home health care services are covered; 
124.31     (8) limiting benefits to services provided by 
124.32  Medicare-certified agencies or providers; or 
124.33     (9) excluding coverage for adult day care services; or 
124.34     (10) excluding coverage based upon location or type of 
124.35  residence in which the home health care services would be 
124.36  provided. 
125.1      [EFFECTIVE DATE.] This section is effective January 1, 
125.2   2004, and applies to policies issued on or after that date. 
125.3      Sec. 6.  [62S.34] [REGULATORY FLEXIBILITY.] 
125.4      The commissioner may upon written request issue an order to 
125.5   modify or suspend a specific provision or provisions of this 
125.6   chapter with respect to a specific long-term care insurance 
125.7   policy or certificate upon a written finding that: 
125.8      (1) the modification or suspension is in the best interest 
125.9   of the insureds; 
125.10     (2) the purpose to be achieved could not be effectively or 
125.11  efficiently achieved without the modifications or suspension; 
125.12  and 
125.13     (3)(i) the modification or suspension is necessary to the 
125.14  development of an innovative and reasonable approach for 
125.15  insuring long-term care; 
125.16     (ii) the policy or certificate is to be issued to residents 
125.17  of a life care or continuing care retirement community or some 
125.18  other residential community for the elderly and the modification 
125.19  or suspension is reasonably related to the special needs or 
125.20  nature of such a community; or 
125.21     (iii) the modification or suspension is necessary to permit 
125.22  long-term care insurance to be sold as part of, or in 
125.23  conjunction with, another insurance product. 
125.24     [EFFECTIVE DATE.] This section is effective January 1, 
125.25  2004, and applies to policies issued on or after that date. 
125.26     Sec. 7.  Minnesota Statutes 2002, section 144A.04, 
125.27  subdivision 3, is amended to read: 
125.28     Subd. 3.  [STANDARDS.] (a) The facility must meet the 
125.29  minimum health, sanitation, safety and comfort standards 
125.30  prescribed by the rules of the commissioner of health with 
125.31  respect to the construction, equipment, maintenance and 
125.32  operation of a nursing home.  The commissioner of health may 
125.33  temporarily waive compliance with one or more of the standards 
125.34  if the commissioner determines that: 
125.35     (a) (1) temporary noncompliance with the standard will not 
125.36  create an imminent risk of harm to a nursing home resident; and 
126.1      (b) (2) a controlling person on behalf of all other 
126.2   controlling persons: 
126.3      (1) (i) has entered into a contract to obtain the materials 
126.4   or labor necessary to meet the standard set by the commissioner 
126.5   of health, but the supplier or other contractor has failed to 
126.6   perform the terms of the contract and the inability of the 
126.7   nursing home to meet the standard is due solely to that failure; 
126.8   or 
126.9      (2) (ii) is otherwise making a diligent good faith effort 
126.10  to meet the standard. 
126.11     The commissioner shall make available to other nursing 
126.12  homes information on facility-specific waivers related to 
126.13  technology or physical plant that are granted.  The commissioner 
126.14  shall, upon the request of a facility, extend a waiver granted 
126.15  to a specific facility related to technology or physical plant 
126.16  to the facility making the request, if the commissioner 
126.17  determines that the facility also satisfies clauses (1) and (2) 
126.18  and any other terms and conditions of the waiver.  
126.19     The commissioner of health shall allow, by rule, a nursing 
126.20  home to provide fewer hours of nursing care to intermediate care 
126.21  residents of a nursing home than required by the present rules 
126.22  of the commissioner if the commissioner determines that the 
126.23  needs of the residents of the home will be adequately met by a 
126.24  lesser amount of nursing care. 
126.25     (b) A facility is not required to seek a waiver for room 
126.26  furniture or equipment under paragraph (a) when responding to 
126.27  resident-specific requests, if the facility has discussed health 
126.28  and safety concerns with the resident and the resident request 
126.29  and discussion of health and safety concerns are documented in 
126.30  the resident's patient record. 
126.31     [EFFECTIVE DATE.] This section is effective the day 
126.32  following final enactment. 
126.33     Sec. 8.  Minnesota Statutes 2002, section 144A.04, is 
126.34  amended by adding a subdivision to read: 
126.35     Subd. 11.  [INCONTINENT RESIDENTS.] Notwithstanding 
126.36  Minnesota Rules, part 4658.0520, an incontinent resident must be 
127.1   checked according to a specific time interval written in the 
127.2   resident's care plan.  The resident's attending physician must 
127.3   authorize in writing any interval longer than two hours unless 
127.4   the resident, if competent, or a family member or legally 
127.5   appointed conservator, guardian, or health care agent of a 
127.6   resident who is not competent, agrees in writing to waive 
127.7   physician involvement in determining this interval, and this 
127.8   waiver is documented in the resident's care plan. 
127.9      [EFFECTIVE DATE.] This section is effective July 1, 2003. 
127.10     Sec. 9.  Minnesota Statutes 2002, section 144A.071, 
127.11  subdivision 4c, as added by Laws 2003, chapter 16, section 1, is 
127.12  amended to read: 
127.13     Subd. 4c.  [EXCEPTIONS FOR REPLACEMENT BEDS AFTER JUNE 30, 
127.14  2003.] (a) The commissioner of health, in coordination with the 
127.15  commissioner of human services, may approve the renovation, 
127.16  replacement, upgrading, or relocation of a nursing home or 
127.17  boarding care home, under the following conditions: 
127.18     (1) to license and certify an 80-bed city-owned facility in 
127.19  Nicollet county to be constructed on the site of a new 
127.20  city-owned hospital to replace an existing 85-bed facility 
127.21  attached to a hospital that is also being replaced.  The 
127.22  threshold allowed for this project under section 144A.073 shall 
127.23  be the maximum amount available to pay the additional medical 
127.24  assistance costs of the new facility; and 
127.25     (2) to license and certify 29 beds to be added to an 
127.26  existing 69-bed facility in St. Louis county, provided that the 
127.27  29 beds must be transferred from active or layaway status at an 
127.28  existing facility in St. Louis county that had 235 beds on April 
127.29  1, 2003. 
127.30  The licensed capacity at the 235-bed facility must be reduced to 
127.31  206 beds, but the payment rate at that facility shall not be 
127.32  adjusted as a result of this transfer.  The operating payment 
127.33  rate of the facility adding beds after completion of this 
127.34  project shall be the same as it was on the day prior to the day 
127.35  the beds are licensed and certified.  This project shall not 
127.36  proceed unless it is approved and financed under the provisions 
128.1   of section 144A.073.  
128.2      (b) Projects approved under this subdivision shall be 
128.3   treated in a manner equivalent to projects approved under 
128.4   subdivision 4a. 
128.5      Sec. 10.  Minnesota Statutes 2002, section 144A.10, is 
128.6   amended by adding a subdivision to read: 
128.7      Subd. 16.  [INDEPENDENT INFORMAL DISPUTE RESOLUTION.] (a) 
128.8   Notwithstanding subdivision 15, a facility certified under the 
128.9   federal Medicare or Medicaid programs may request from the 
128.10  commissioner, in writing, an independent informal dispute 
128.11  resolution process regarding any deficiency citation issued to 
128.12  the facility.  The facility must specify in its written request 
128.13  each deficiency citation that it disputes.  The commissioner 
128.14  shall provide a hearing under sections 14.57 to 14.62.  Upon the 
128.15  written request of the facility, the parties must submit the 
128.16  issues raised to arbitration by an administrative law judge. 
128.17     (b) Upon receipt of a written request for an arbitration 
128.18  proceeding, the commissioner shall file with the office of 
128.19  administrative hearings a request for the appointment of an 
128.20  arbitrator and simultaneously serve the facility with notice of 
128.21  the request.  The arbitrator for the dispute shall be an 
128.22  administrative law judge appointed by the office of 
128.23  administrative hearings.  The disclosure provisions of section 
128.24  572.10 and the notice provisions of section 572.12 apply.  The 
128.25  facility and the commissioner have the right to be represented 
128.26  by an attorney. 
128.27     (c) The commissioner and the facility may present written 
128.28  evidence, depositions, and oral statements and arguments at the 
128.29  arbitration proceeding.  Oral statements and arguments may be 
128.30  made by telephone. 
128.31     (d) Within ten working days of the close of the arbitration 
128.32  proceeding, the administrative law judge shall issue findings 
128.33  regarding each of the deficiencies in dispute.  The findings 
128.34  shall be one or more of the following: 
128.35     (1) Supported in full.  The citation is supported in full, 
128.36  with no deletion of findings and no change in the scope or 
129.1   severity assigned to the deficiency citation. 
129.2      (2) Supported in substance.  The citation is supported, but 
129.3   one or more findings are deleted without any change in the scope 
129.4   or severity assigned to the deficiency. 
129.5      (3) Deficient practice cited under wrong requirement of 
129.6   participation.  The citation is amended by moving it to the 
129.7   correct requirement of participation. 
129.8      (4) Scope not supported.  The citation is amended through a 
129.9   change in the scope assigned to the citation. 
129.10     (5) Severity not supported.  The citation is amended 
129.11  through a change in the severity assigned to the citation. 
129.12     (6) No deficient practice.  The citation is deleted because 
129.13  the findings did not support the citation or the negative 
129.14  resident outcome was unavoidable.  The findings of the 
129.15  arbitrator are not binding on the commissioner.  
129.16     (e) The commissioner shall reimburse the office of 
129.17  administrative hearings for the costs incurred by that office 
129.18  for the arbitration proceeding.  The facility shall reimburse 
129.19  the commissioner for the proportion of the costs that represent 
129.20  the sum of deficiency citations supported in full under 
129.21  paragraph (d), clause (1), or in substance under paragraph (d), 
129.22  clause (2), divided by the total number of deficiencies 
129.23  disputed.  A deficiency citation for which the administrative 
129.24  law judge's sole finding is that the deficient practice was 
129.25  cited under the wrong requirements of participation shall not be 
129.26  counted in the numerator or denominator in the calculation of 
129.27  the proportion of costs. 
129.28     [EFFECTIVE DATE.] This section is effective July 1, 2003. 
129.29     Sec. 11.  [144A.351] [BALANCING LONG-TERM CARE:  REPORT 
129.30  REQUIRED.] 
129.31     The commissioners of health and human services, with the 
129.32  cooperation of counties and regional entities, shall prepare a 
129.33  report to the legislature by January 15, 2004, and biennially 
129.34  thereafter, regarding the status of the full range of long-term 
129.35  care services for the elderly in Minnesota.  The report shall 
129.36  address: 
130.1      (1) demographics and need for long-term care in Minnesota; 
130.2      (2) summary of county and regional reports on long-term 
130.3   care gaps, surpluses, imbalances, and corrective action plans; 
130.4      (3) status of long-term care services by county and region 
130.5   including: 
130.6      (i) changes in availability of the range of long-term care 
130.7   services and housing options; 
130.8      (ii) access problems regarding long-term care; and 
130.9      (iii) comparative measures of long-term care availability 
130.10  and progress over time; and 
130.11     (4) recommendations regarding goals for the future of 
130.12  long-term care services, policy changes, and resource needs. 
130.13     Sec. 12.  Minnesota Statutes 2002, section 144A.4605, 
130.14  subdivision 4, is amended to read: 
130.15     Subd. 4.  [LICENSE REQUIRED.] (a) A housing with services 
130.16  establishment registered under chapter 144D that is required to 
130.17  obtain a home care license must obtain an assisted living home 
130.18  care license according to this section or a class A or class E 
130.19  license according to rule.  A housing with services 
130.20  establishment that obtains a class E license under this 
130.21  subdivision remains subject to the payment limitations in 
130.22  sections 256B.0913, subdivision 5 5f, paragraph (h) (b), and 
130.23  256B.0915, subdivision 3, paragraph (g) 3d. 
130.24     (b) A board and lodging establishment registered for 
130.25  special services as of December 31, 1996, and also registered as 
130.26  a housing with services establishment under chapter 144D, must 
130.27  deliver home care services according to sections 144A.43 to 
130.28  144A.47, and may apply for a waiver from requirements under 
130.29  Minnesota Rules, parts 4668.0002 to 4668.0240, to operate a 
130.30  licensed agency under the standards of section 157.17.  Such 
130.31  waivers as may be granted by the department will expire upon 
130.32  promulgation of home care rules implementing section 144A.4605. 
130.33     (c) An adult foster care provider licensed by the 
130.34  department of human services and registered under chapter 144D 
130.35  may continue to provide health-related services under its foster 
130.36  care license until the promulgation of home care rules 
131.1   implementing this section. 
131.2      (d) An assisted living home care provider licensed under 
131.3   this section must comply with the disclosure provisions of 
131.4   section 325F.72 to the extent they are applicable. 
131.5      Sec. 13.  Minnesota Statutes 2002, section 256.9657, 
131.6   subdivision 1, is amended to read: 
131.7      Subdivision 1.  [NURSING HOME LICENSE SURCHARGE.] (a) 
131.8   Effective July 1, 1993, each non-state-operated nursing home 
131.9   licensed under chapter 144A shall pay to the commissioner an 
131.10  annual surcharge according to the schedule in subdivision 4.  
131.11  The surcharge shall be calculated as $620 per licensed bed.  If 
131.12  the number of licensed beds is reduced, the surcharge shall be 
131.13  based on the number of remaining licensed beds the second month 
131.14  following the receipt of timely notice by the commissioner of 
131.15  human services that beds have been delicensed.  The nursing home 
131.16  must notify the commissioner of health in writing when beds are 
131.17  delicensed.  The commissioner of health must notify the 
131.18  commissioner of human services within ten working days after 
131.19  receiving written notification.  If the notification is received 
131.20  by the commissioner of human services by the 15th of the month, 
131.21  the invoice for the second following month must be reduced to 
131.22  recognize the delicensing of beds.  Beds on layaway status 
131.23  continue to be subject to the surcharge.  The commissioner of 
131.24  human services must acknowledge a medical care surcharge appeal 
131.25  within 30 days of receipt of the written appeal from the 
131.26  provider. 
131.27     (b) Effective July 1, 1994, the surcharge in paragraph (a) 
131.28  shall be increased to $625. 
131.29     (c) Effective August 15, 2002, the surcharge under 
131.30  paragraph (b) shall be increased to $990. 
131.31     (d) Effective July 15, 2003, the surcharge under paragraph 
131.32  (c) shall be increased to $2,815. 
131.33     (e) The commissioner may reduce, and may subsequently 
131.34  restore, the surcharge under paragraph (d) based on the 
131.35  commissioner's determination of a permissible surcharge. 
131.36     (f) Between April 1, 2002, and August 15, 2003 2004, a 
132.1   facility governed by this subdivision may elect to assume full 
132.2   participation in the medical assistance program by agreeing to 
132.3   comply with all of the requirements of the medical assistance 
132.4   program, including the rate equalization law in section 256B.48, 
132.5   subdivision 1, paragraph (a), and all other requirements 
132.6   established in law or rule, and to begin intake of new medical 
132.7   assistance recipients.  Rates will be determined under Minnesota 
132.8   Rules, parts 9549.0010 to 9549.0080.  Notwithstanding section 
132.9   256B.431, subdivision 27, paragraph (i), rate calculations will 
132.10  be subject to limits as prescribed in rule and law.  Other than 
132.11  the adjustments in sections 256B.431, subdivisions 30 and 32; 
132.12  256B.437, subdivision 3, paragraph (b), Minnesota Rules, part 
132.13  9549.0057, and any other applicable legislation enacted prior to 
132.14  the finalization of rates, facilities assuming full 
132.15  participation in medical assistance under this paragraph are not 
132.16  eligible for any rate adjustments until the July 1 following 
132.17  their settle-up period. 
132.18     [EFFECTIVE DATE.] This section is effective June 30, 2003. 
132.19     Sec. 14.  Minnesota Statutes 2002, section 256.9657, is 
132.20  amended by adding a subdivision to read: 
132.21     Subd. 3a.  [ICF/MR LICENSE SURCHARGE.] Effective July 1, 
132.22  2003, each nonstate-operated facility as defined under section 
132.23  256B.501, subdivision 1, shall pay to the commissioner an annual 
132.24  surcharge according to the schedule in subdivision 4, paragraph 
132.25  (d).  The annual surcharge shall be $1,040 per licensed bed.  If 
132.26  the number of licensed beds is reduced, the surcharge shall be 
132.27  based on the number of remaining licensed beds the second month 
132.28  following the receipt of timely notice by the commissioner of 
132.29  human services that beds have been delicensed.  The facility 
132.30  must notify the commissioner of health in writing when beds are 
132.31  delicensed.  The commissioner of health must notify the 
132.32  commissioner of human services within ten working days after 
132.33  receiving written notification.  If the notification is received 
132.34  by the commissioner of human services by the 15th of the month, 
132.35  the invoice for the second following month must be reduced to 
132.36  recognize the delicensing of beds.  The commissioner may reduce, 
133.1   and may subsequently restore, the surcharge under this 
133.2   subdivision based on the commissioner's determination of a 
133.3   permissible surcharge. 
133.4      [EFFECTIVE DATE.] This section is effective the day 
133.5   following final enactment. 
133.6      Sec. 15.  Minnesota Statutes 2002, section 256.9657, 
133.7   subdivision 4, is amended to read: 
133.8      Subd. 4.  [PAYMENTS INTO THE ACCOUNT.] (a) Payments to the 
133.9   commissioner under subdivisions 1 to 3 must be paid in monthly 
133.10  installments due on the 15th of the month beginning October 15, 
133.11  1992.  The monthly payment must be equal to the annual surcharge 
133.12  divided by 12.  Payments to the commissioner under subdivisions 
133.13  2 and 3 for fiscal year 1993 must be based on calendar year 1990 
133.14  revenues.  Effective July 1 of each year, beginning in 1993, 
133.15  payments under subdivisions 2 and 3 must be based on revenues 
133.16  earned in the second previous calendar year. 
133.17     (b) Effective October 1, 1995, and each October 1 
133.18  thereafter, the payments in subdivisions 2 and 3 must be based 
133.19  on revenues earned in the previous calendar year. 
133.20     (c) If the commissioner of health does not provide by 
133.21  August 15 of any year data needed to update the base year for 
133.22  the hospital and health maintenance organization surcharges, the 
133.23  commissioner of human services may estimate base year revenue 
133.24  and use that estimate for the purposes of this section until 
133.25  actual data is provided by the commissioner of health. 
133.26     (d) Payments to the commissioner under subdivision 3a must 
133.27  be paid in monthly installments due on the 15th of the month 
133.28  beginning July 15, 2003.  The monthly payment must be equal to 
133.29  the annual surcharge divided by 12. 
133.30     [EFFECTIVE DATE.] This section is effective the day 
133.31  following final enactment. 
133.32     Sec. 16.  Minnesota Statutes 2002, section 256B.056, 
133.33  subdivision 6, is amended to read: 
133.34     Subd. 6.  [ASSIGNMENT OF BENEFITS.] To be eligible for 
133.35  medical assistance a person must have applied or must agree to 
133.36  apply all proceeds received or receivable by the person or the 
134.1   person's spouse legal representative from any third person party 
134.2   liable for the costs of medical care for the person, the spouse, 
134.3   and children.  The state agency shall require from any applicant 
134.4   or recipient of medical assistance the assignment of any rights 
134.5   to medical support and third party payments.  By accepting or 
134.6   receiving assistance, the person is deemed to have assigned the 
134.7   person's rights to medical support and third party payments as 
134.8   required by Title 19 of the Social Security Act.  Persons must 
134.9   cooperate with the state in establishing paternity and obtaining 
134.10  third party payments.  By signing an application for accepting 
134.11  medical assistance, a person assigns to the department of human 
134.12  services all rights the person may have to medical support or 
134.13  payments for medical expenses from any other person or entity on 
134.14  their own or their dependent's behalf and agrees to cooperate 
134.15  with the state in establishing paternity and obtaining third 
134.16  party payments.  Any rights or amounts so assigned shall be 
134.17  applied against the cost of medical care paid for under this 
134.18  chapter.  Any assignment takes effect upon the determination 
134.19  that the applicant is eligible for medical assistance and up to 
134.20  three months prior to the date of application if the applicant 
134.21  is determined eligible for and receives medical assistance 
134.22  benefits.  The application must contain a statement explaining 
134.23  this assignment.  Any assignment shall not be effective as to 
134.24  benefits paid or provided under automobile accident coverage and 
134.25  private health care coverage prior to notification of the 
134.26  assignment by the person or organization providing the 
134.27  benefits.  For the purposes of this section, "the department of 
134.28  human services or the state" includes prepaid health plans under 
134.29  contract with the commissioner according to sections 256B.031, 
134.30  256B.69, 256D.03, subdivision 4, paragraph (d), and 256L.12; 
134.31  children's mental health collaboratives under section 245.493; 
134.32  demonstration projects for persons with disabilities under 
134.33  section 256B.77; nursing facilities under the alternative 
134.34  payment demonstration project under section 256B.434; and the 
134.35  county-based purchasing entities under section 256B.692.  
134.36     Sec. 17.  Minnesota Statutes 2002, section 256B.064, 
135.1   subdivision 2, is amended to read: 
135.2      Subd. 2.  [IMPOSITION OF MONETARY RECOVERY AND SANCTIONS.] 
135.3   (a) The commissioner shall determine any monetary amounts to be 
135.4   recovered and sanctions to be imposed upon a vendor of medical 
135.5   care under this section.  Except as provided in 
135.6   paragraph paragraphs (b) and (d), neither a monetary recovery 
135.7   nor a sanction will be imposed by the commissioner without prior 
135.8   notice and an opportunity for a hearing, according to chapter 
135.9   14, on the commissioner's proposed action, provided that the 
135.10  commissioner may suspend or reduce payment to a vendor of 
135.11  medical care, except a nursing home or convalescent care 
135.12  facility, after notice and prior to the hearing if in the 
135.13  commissioner's opinion that action is necessary to protect the 
135.14  public welfare and the interests of the program. 
135.15     (b) Except for a nursing home or convalescent care 
135.16  facility, the commissioner may withhold or reduce payments to a 
135.17  vendor of medical care without providing advance notice of such 
135.18  withholding or reduction if either of the following occurs: 
135.19     (1) the vendor is convicted of a crime involving the 
135.20  conduct described in subdivision 1a; or 
135.21     (2) the commissioner receives reliable evidence of fraud or 
135.22  willful misrepresentation by the vendor. 
135.23     (c) The commissioner must send notice of the withholding or 
135.24  reduction of payments under paragraph (b) within five days of 
135.25  taking such action.  The notice must: 
135.26     (1) state that payments are being withheld according to 
135.27  paragraph (b); 
135.28     (2) except in the case of a conviction for conduct 
135.29  described in subdivision 1a, state that the withholding is for a 
135.30  temporary period and cite the circumstances under which 
135.31  withholding will be terminated; 
135.32     (3) identify the types of claims to which the withholding 
135.33  applies; and 
135.34     (4) inform the vendor of the right to submit written 
135.35  evidence for consideration by the commissioner. 
135.36     The withholding or reduction of payments will not continue 
136.1   after the commissioner determines there is insufficient evidence 
136.2   of fraud or willful misrepresentation by the vendor, or after 
136.3   legal proceedings relating to the alleged fraud or willful 
136.4   misrepresentation are completed, unless the commissioner has 
136.5   sent notice of intention to impose monetary recovery or 
136.6   sanctions under paragraph (a). 
136.7      (d) The commissioner may suspend or terminate a vendor's 
136.8   participation in the program without providing advance notice 
136.9   and an opportunity for a hearing when the suspension or 
136.10  termination is required because of the vendor's exclusion from 
136.11  participation in Medicare.  Within five days of taking such 
136.12  action, the commissioner must send notice of the suspension or 
136.13  termination.  The notice must: 
136.14     (1) state that suspension or termination is the result of 
136.15  the vendor's exclusion from Medicare; 
136.16     (2) identify the effective date of the suspension or 
136.17  termination; 
136.18     (3) inform the vendor of the need to be reinstated to 
136.19  Medicare before reapplying for participation in the program; and 
136.20     (4) inform the vendor of the right to submit written 
136.21  evidence for consideration by the commissioner. 
136.22     (e) Upon receipt of a notice under paragraph (a) that a 
136.23  monetary recovery or sanction is to be imposed, a vendor may 
136.24  request a contested case, as defined in section 14.02, 
136.25  subdivision 3, by filing with the commissioner a written request 
136.26  of appeal.  The appeal request must be received by the 
136.27  commissioner no later than 30 days after the date the 
136.28  notification of monetary recovery or sanction was mailed to the 
136.29  vendor.  The appeal request must specify: 
136.30     (1) each disputed item, the reason for the dispute, and an 
136.31  estimate of the dollar amount involved for each disputed item; 
136.32     (2) the computation that the vendor believes is correct; 
136.33     (3) the authority in statute or rule upon which the vendor 
136.34  relies for each disputed item; 
136.35     (4) the name and address of the person or entity with whom 
136.36  contacts may be made regarding the appeal; and 
137.1      (5) other information required by the commissioner. 
137.2      Sec. 18.  Minnesota Statutes 2002, section 256B.0913, 
137.3   subdivision 2, is amended to read: 
137.4      Subd. 2.  [ELIGIBILITY FOR SERVICES.] Alternative care 
137.5   services are available to Minnesotans age 65 or older who are 
137.6   not eligible for medical assistance without a spenddown or 
137.7   waiver obligation but who would be eligible for medical 
137.8   assistance within 180 days of admission to a nursing facility 
137.9   and subject to subdivisions 4 to 13. 
137.10     Sec. 19.  Minnesota Statutes 2002, section 256B.0913, 
137.11  subdivision 4, is amended to read: 
137.12     Subd. 4.  [ELIGIBILITY FOR FUNDING FOR SERVICES FOR 
137.13  NONMEDICAL ASSISTANCE RECIPIENTS.] (a) Funding for services 
137.14  under the alternative care program is available to persons who 
137.15  meet the following criteria: 
137.16     (1) the person has been determined by a community 
137.17  assessment under section 256B.0911 to be a person who would 
137.18  require the level of care provided in a nursing facility, but 
137.19  for the provision of services under the alternative care 
137.20  program; 
137.21     (2) the person is age 65 or older; 
137.22     (3) the person would be eligible for medical assistance 
137.23  within 180 days of admission to a nursing facility; 
137.24     (4) the person is not ineligible for the medical assistance 
137.25  program due to an asset transfer penalty; 
137.26     (5) the person needs services that are not funded through 
137.27  other state or federal funding; and 
137.28     (6) the monthly cost of the alternative care services 
137.29  funded by the program for this person does not exceed 75 percent 
137.30  of the statewide weighted average monthly nursing facility rate 
137.31  of the case mix resident class to which the individual 
137.32  alternative care client would be assigned under Minnesota Rules, 
137.33  parts 9549.0050 to 9549.0059, less the recipient's maintenance 
137.34  needs allowance as described in section 256B.0915, subdivision 
137.35  1d, paragraph (a), until the first day of the state fiscal year 
137.36  in which the resident assessment system, under section 256B.437, 
138.1   for nursing home rate determination is implemented.  Effective 
138.2   on the first day of the state fiscal year in which a resident 
138.3   assessment system, under section 256B.437, for nursing home rate 
138.4   determination is implemented and the first day of each 
138.5   subsequent state fiscal year, the monthly cost of alternative 
138.6   care services for this person shall not exceed the alternative 
138.7   care monthly cap for the case mix resident class to which the 
138.8   alternative care client would be assigned under Minnesota Rules, 
138.9   parts 9549.0050 to 9549.0059, which was in effect on the last 
138.10  day of the previous state fiscal year, and adjusted by the 
138.11  greater of any legislatively adopted home and community-based 
138.12  services cost-of-living percentage increase or any legislatively 
138.13  adopted statewide percent rate increase for nursing 
138.14  facilities monthly limit described under section 256B.0915, 
138.15  subdivision 3a.  This monthly limit does not prohibit the 
138.16  alternative care client from payment for additional services, 
138.17  but in no case may the cost of additional services purchased 
138.18  under this section exceed the difference between the client's 
138.19  monthly service limit defined under section 256B.0915, 
138.20  subdivision 3, and the alternative care program monthly service 
138.21  limit defined in this paragraph.  If medical supplies and 
138.22  equipment or environmental modifications are or will be 
138.23  purchased for an alternative care services recipient, the costs 
138.24  may be prorated on a monthly basis for up to 12 consecutive 
138.25  months beginning with the month of purchase.  If the monthly 
138.26  cost of a recipient's other alternative care services exceeds 
138.27  the monthly limit established in this paragraph, the annual cost 
138.28  of the alternative care services shall be determined.  In this 
138.29  event, the annual cost of alternative care services shall not 
138.30  exceed 12 times the monthly limit described in this paragraph.; 
138.31  and 
138.32     (7) the person is making timely payments of the assessed 
138.33  monthly fee. 
138.34  A person is ineligible if payment of the fee is over 60 days 
138.35  past due, unless the person agrees to: 
138.36     (i) the appointment of a representative payee; 
139.1      (ii) automatic payment from a financial account; 
139.2      (iii) the establishment of greater family involvement in 
139.3   the financial management of payments; or 
139.4      (iv) another method acceptable to the county to ensure 
139.5   prompt fee payments. 
139.6      The county shall extend the client's eligibility as 
139.7   necessary while making arrangements to facilitate payment of 
139.8   past-due amounts and future premium payments.  Following 
139.9   disenrollment due to nonpayment of a monthly fee, eligibility 
139.10  shall not be reinstated for a period of 30 days. 
139.11     (b) Alternative care funding under this subdivision is not 
139.12  available for a person who is a medical assistance recipient or 
139.13  who would be eligible for medical assistance without a spenddown 
139.14  or waiver obligation.  A person whose initial application for 
139.15  medical assistance and the elderly waiver program is being 
139.16  processed may be served under the alternative care program for a 
139.17  period up to 60 days.  If the individual is found to be eligible 
139.18  for medical assistance, medical assistance must be billed for 
139.19  services payable under the federally approved elderly waiver 
139.20  plan and delivered from the date the individual was found 
139.21  eligible for the federally approved elderly waiver plan.  
139.22  Notwithstanding this provision, upon federal approval, 
139.23  alternative care funds may not be used to pay for any service 
139.24  the cost of which:  (i) is payable by medical assistance or 
139.25  which; (ii) is used by a recipient to meet a medical assistance 
139.26  income spenddown or waiver obligation; or (iii) is used to pay a 
139.27  medical assistance income spenddown for a person who is eligible 
139.28  to participate in the federally approved elderly waiver program 
139.29  under the special income standard provision. 
139.30     (c) Alternative care funding is not available for a person 
139.31  who resides in a licensed nursing home, certified boarding care 
139.32  home, hospital, or intermediate care facility, except for case 
139.33  management services which are provided in support of the 
139.34  discharge planning process to for a nursing home resident or 
139.35  certified boarding care home resident to assist with a 
139.36  relocation process to a community-based setting. 
140.1      (d) Alternative care funding is not available for a person 
140.2   whose income is greater than the maintenance needs allowance 
140.3   under section 256B.0915, subdivision 1d, but equal to or less 
140.4   than 120 percent of the federal poverty guideline effective July 
140.5   1, in the year for which alternative care eligibility is 
140.6   determined, who would be eligible for the elderly waiver with a 
140.7   waiver obligation. 
140.8      Sec. 20.  Minnesota Statutes 2002, section 256B.0913, 
140.9   subdivision 5, is amended to read: 
140.10     Subd. 5.  [SERVICES COVERED UNDER ALTERNATIVE CARE.] (a) 
140.11  Alternative care funding may be used for payment of costs of: 
140.12     (1) adult foster care; 
140.13     (2) adult day care; 
140.14     (3) home health aide; 
140.15     (4) homemaker services; 
140.16     (5) personal care; 
140.17     (6) case management; 
140.18     (7) respite care; 
140.19     (8) assisted living; 
140.20     (9) residential care services; 
140.21     (10) care-related supplies and equipment; 
140.22     (11) meals delivered to the home; 
140.23     (12) transportation; 
140.24     (13) nursing services; 
140.25     (14) chore services; 
140.26     (15) companion services; 
140.27     (16) nutrition services; 
140.28     (17) training for direct informal caregivers; 
140.29     (18) telehome care devices to monitor recipients provide 
140.30  services in their own homes as an alternative to hospital care, 
140.31  nursing home care, or home in conjunction with in-home visits; 
140.32     (19) other services which includes discretionary funds and 
140.33  direct cash payments to clients, services, for which counties 
140.34  may make payment from their alternative care program allocation 
140.35  or services not otherwise defined in this section or section 
140.36  256B.0625, following approval by the commissioner, subject to 
141.1   the provisions of paragraph (j).  Total annual payments for 
141.2   "other services" for all clients within a county may not exceed 
141.3   25 percent of that county's annual alternative care program base 
141.4   allocation; and 
141.5      (20) environmental modifications.; and 
141.6      (21) direct cash payments for which counties may make 
141.7   payment from their alternative care program allocation to 
141.8   clients for the purpose of purchasing services, following 
141.9   approval by the commissioner, and subject to the provisions of 
141.10  subdivision 5h, until approval and implementation of 
141.11  consumer-directed services through the federally approved 
141.12  elderly waiver plan.  Upon implementation, consumer-directed 
141.13  services under the alternative care program are available 
141.14  statewide and limited to the average monthly expenditures 
141.15  representative of all alternative care program participants for 
141.16  the same case mix resident class assigned in the most recent 
141.17  fiscal year for which complete expenditure data is available. 
141.18     Total annual payments for discretionary services and direct 
141.19  cash payments, until the federally approved consumer-directed 
141.20  service option is implemented statewide, for all clients within 
141.21  a county may not exceed 25 percent of that county's annual 
141.22  alternative care program base allocation.  Thereafter, 
141.23  discretionary services are limited to 25 percent of the county's 
141.24  annual alternative care program base allocation. 
141.25     Subd. 5a.  [SERVICES; SERVICE DEFINITIONS; SERVICE 
141.26  STANDARDS.] (a) Unless specified in statute, the services, 
141.27  service definitions, and standards for alternative care services 
141.28  shall be the same as the services, service definitions, and 
141.29  standards specified in the federally approved elderly waiver 
141.30  plan, except for transitional support services. 
141.31     (b) The county agency must ensure that the funds are not 
141.32  used to supplant services available through other public 
141.33  assistance or services programs. 
141.34     (c) Unless specified in statute, the services, service 
141.35  definitions, and standards for alternative care services shall 
141.36  be the same as the services, service definitions, and standards 
142.1   specified in the federally approved elderly waiver plan.  Except 
142.2   for the county agencies' approval of direct cash payments to 
142.3   clients as described in paragraph (j) or For a provider of 
142.4   supplies and equipment when the monthly cost of the supplies and 
142.5   equipment is less than $250, persons or agencies must be 
142.6   employed by or under a contract with the county agency or the 
142.7   public health nursing agency of the local board of health in 
142.8   order to receive funding under the alternative care program.  
142.9   Supplies and equipment may be purchased from a vendor not 
142.10  certified to participate in the Medicaid program if the cost for 
142.11  the item is less than that of a Medicaid vendor.  
142.12     (c) Personal care services must meet the service standards 
142.13  defined in the federally approved elderly waiver plan, except 
142.14  that a county agency may contract with a client's relative who 
142.15  meets the relative hardship waiver requirements or a relative 
142.16  who meets the criteria and is also the responsible party under 
142.17  an individual service plan that ensures the client's health and 
142.18  safety and supervision of the personal care services by a 
142.19  qualified professional as defined in section 256B.0625, 
142.20  subdivision 19c.  Relative hardship is established by the county 
142.21  when the client's care causes a relative caregiver to do any of 
142.22  the following:  resign from a paying job, reduce work hours 
142.23  resulting in lost wages, obtain a leave of absence resulting in 
142.24  lost wages, incur substantial client-related expenses, provide 
142.25  services to address authorized, unstaffed direct care time, or 
142.26  meet special needs of the client unmet in the formal service 
142.27  plan. 
142.28     (d) Subd. 5b.  [ADULT FOSTER CARE RATE.] The adult foster 
142.29  care rate shall be considered a difficulty of care payment and 
142.30  shall not include room and board.  The adult foster care rate 
142.31  shall be negotiated between the county agency and the foster 
142.32  care provider.  The alternative care payment for the foster care 
142.33  service in combination with the payment for other alternative 
142.34  care services, including case management, must not exceed the 
142.35  limit specified in subdivision 4, paragraph (a), clause (6). 
142.36     (e) Personal care services must meet the service standards 
143.1   defined in the federally approved elderly waiver plan, except 
143.2   that a county agency may contract with a client's relative who 
143.3   meets the relative hardship waiver requirement as defined in 
143.4   section 256B.0627, subdivision 4, paragraph (b), clause (10), to 
143.5   provide personal care services if the county agency ensures 
143.6   supervision of this service by a qualified professional as 
143.7   defined in section 256B.0625, subdivision 19c.  
143.8      (f)  Subd. 5c.  [RESIDENTIAL CARE SERVICES; SUPPORTIVE 
143.9   SERVICES; HEALTH-RELATED SERVICES.] For purposes of this 
143.10  section, residential care services are services which are 
143.11  provided to individuals living in residential care homes.  
143.12  Residential care homes are currently licensed as board and 
143.13  lodging establishments under section 157.16, and are registered 
143.14  with the department of health as providing special services 
143.15  under section 157.17 and are not subject to registration except 
143.16  settings that are currently registered under chapter 144D.  
143.17  Residential care services are defined as "supportive services" 
143.18  and "health-related services."  "Supportive services" means the 
143.19  provision of up to 24-hour supervision and oversight.  
143.20  Supportive services includes:  (1) transportation, when provided 
143.21  by the residential care home only; (2) socialization, when 
143.22  socialization is part of the plan of care, has specific goals 
143.23  and outcomes established, and is not diversional or recreational 
143.24  in nature; (3) assisting clients in setting up meetings and 
143.25  appointments; (4) assisting clients in setting up medical and 
143.26  social services; (5) providing assistance with personal laundry, 
143.27  such as carrying the client's laundry to the laundry room.  
143.28  Assistance with personal laundry does not include any laundry, 
143.29  such as bed linen, that is included in the room and board rate 
143.30  services as defined in section 157.17, subdivision 1, paragraph 
143.31  (a).  "Health-related services" are limited to minimal 
143.32  assistance with dressing, grooming, and bathing and providing 
143.33  reminders to residents to take medications that are 
143.34  self-administered or providing storage for medications, if 
143.35  requested means services covered in section 157.17, subdivision 
143.36  1, paragraph (b).  Individuals receiving residential care 
144.1   services cannot receive homemaking services funded under this 
144.2   section.  
144.3      (g) Subd. 5d.  [ASSISTED LIVING SERVICES.] For the purposes 
144.4   of this section, "assisted living" refers to supportive services 
144.5   provided by a single vendor to clients who reside in the same 
144.6   apartment building of three or more units which are not subject 
144.7   to registration under chapter 144D and are licensed by the 
144.8   department of health as a class A home care provider or a class 
144.9   E home care provider.  Assisted living services are defined as 
144.10  up to 24-hour supervision, and oversight, and supportive 
144.11  services as defined in clause (1) section 157.17, subdivision 1, 
144.12  paragraph (a), individualized home care aide tasks as defined in 
144.13  clause (2) Minnesota Rules, part 4668.0110, and individualized 
144.14  home management tasks as defined in clause (3) Minnesota Rules, 
144.15  part 4668.0120 provided to residents of a residential center 
144.16  living in their units or apartments with a full kitchen and 
144.17  bathroom.  A full kitchen includes a stove, oven, refrigerator, 
144.18  food preparation counter space, and a kitchen utensil storage 
144.19  compartment.  Assisted living services must be provided by the 
144.20  management of the residential center or by providers under 
144.21  contract with the management or with the county. 
144.22     (1) Supportive services include:  
144.23     (i) socialization, when socialization is part of the plan 
144.24  of care, has specific goals and outcomes established, and is not 
144.25  diversional or recreational in nature; 
144.26     (ii) assisting clients in setting up meetings and 
144.27  appointments; and 
144.28     (iii) providing transportation, when provided by the 
144.29  residential center only.  
144.30     (2) Home care aide tasks means:  
144.31     (i) preparing modified diets, such as diabetic or low 
144.32  sodium diets; 
144.33     (ii) reminding residents to take regularly scheduled 
144.34  medications or to perform exercises; 
144.35     (iii) household chores in the presence of technically 
144.36  sophisticated medical equipment or episodes of acute illness or 
145.1   infectious disease; 
145.2      (iv) household chores when the resident's care requires the 
145.3   prevention of exposure to infectious disease or containment of 
145.4   infectious disease; and 
145.5      (v) assisting with dressing, oral hygiene, hair care, 
145.6   grooming, and bathing, if the resident is ambulatory, and if the 
145.7   resident has no serious acute illness or infectious disease.  
145.8   Oral hygiene means care of teeth, gums, and oral prosthetic 
145.9   devices.  
145.10     (3) Home management tasks means:  
145.11     (i) housekeeping; 
145.12     (ii) laundry; 
145.13     (iii) preparation of regular snacks and meals; and 
145.14     (iv) shopping.  
145.15     Subd. 5e.  [FURTHER ASSISTED LIVING REQUIREMENTS.] (a) 
145.16  Individuals receiving assisted living services shall not receive 
145.17  both assisted living services and homemaking services.  
145.18  Individualized means services are chosen and designed 
145.19  specifically for each resident's needs, rather than provided or 
145.20  offered to all residents regardless of their illnesses, 
145.21  disabilities, or physical conditions.  Assisted living services 
145.22  as defined in this section shall not be authorized in boarding 
145.23  and lodging establishments licensed according to sections 
145.24  157.011 and 157.15 to 157.22. 
145.25     (h) (b) For establishments registered under chapter 144D, 
145.26  assisted living services under this section means either the 
145.27  services described in paragraph (g) subdivision 5d and delivered 
145.28  by a class E home care provider licensed by the department of 
145.29  health or the services described under section 144A.4605 and 
145.30  delivered by an assisted living home care provider or a class A 
145.31  home care provider licensed by the commissioner of health. 
145.32     (i) Subd. 5f.  [PAYMENT RATES FOR ASSISTED LIVING SERVICES 
145.33  AND RESIDENTIAL CARE.] (a) Payment for assisted living services 
145.34  and residential care services shall be a monthly rate negotiated 
145.35  and authorized by the county agency based on an individualized 
145.36  service plan for each resident and may not cover direct rent or 
146.1   food costs.  
146.2      (1) (b) The individualized monthly negotiated payment for 
146.3   assisted living services as described in paragraph 
146.4   (g) subdivision 5d or (h) 5e, paragraph (b), and residential 
146.5   care services as described in paragraph (f) subdivision 5c, 
146.6   shall not exceed the nonfederal share in effect on July 1 of the 
146.7   state fiscal year for which the rate limit is being calculated 
146.8   of the greater of either the statewide or any of the geographic 
146.9   groups' weighted average monthly nursing facility payment rate 
146.10  of the case mix resident class to which the alternative care 
146.11  eligible client would be assigned under Minnesota Rules, parts 
146.12  9549.0050 to 9549.0059, less the maintenance needs allowance as 
146.13  described in section 256B.0915, subdivision 1d, paragraph (a), 
146.14  until the first day of the state fiscal year in which a resident 
146.15  assessment system, under section 256B.437, of nursing home rate 
146.16  determination is implemented.  Effective on the first day of the 
146.17  state fiscal year in which a resident assessment system, under 
146.18  section 256B.437, of nursing home rate determination is 
146.19  implemented and the first day of each subsequent state fiscal 
146.20  year, the individualized monthly negotiated payment for the 
146.21  services described in this clause shall not exceed the limit 
146.22  described in this clause which was in effect on the last day of 
146.23  the previous state fiscal year and which has been adjusted by 
146.24  the greater of any legislatively adopted home and 
146.25  community-based services cost-of-living percentage increase or 
146.26  any legislatively adopted statewide percent rate increase for 
146.27  nursing facilities groups according to subdivision 4, paragraph 
146.28  (a), clause (6). 
146.29     (2) (c) The individualized monthly negotiated payment for 
146.30  assisted living services described under section 144A.4605 and 
146.31  delivered by a provider licensed by the department of health as 
146.32  a class A home care provider or an assisted living home care 
146.33  provider and provided in a building that is registered as a 
146.34  housing with services establishment under chapter 144D and that 
146.35  provides 24-hour supervision in combination with the payment for 
146.36  other alternative care services, including case management, must 
147.1   not exceed the limit specified in subdivision 4, paragraph (a), 
147.2   clause (6). 
147.3      (j) Subd. 5g.  [PROVISIONS GOVERNING DIRECT CASH PAYMENTS.] 
147.4   A county agency may make payment from their alternative care 
147.5   program allocation for "other services" which include use of 
147.6   "discretionary funds" for services that are not otherwise 
147.7   defined in this section and direct cash payments to the client 
147.8   for the purpose of purchasing the services.  The following 
147.9   provisions apply to payments under this paragraph subdivision: 
147.10     (1) a cash payment to a client under this provision cannot 
147.11  exceed the monthly payment limit for that client as specified in 
147.12  subdivision 4, paragraph (a), clause (6); and 
147.13     (2) a county may not approve any cash payment for a client 
147.14  who meets either of the following: 
147.15     (i) has been assessed as having a dependency in 
147.16  orientation, unless the client has an authorized 
147.17  representative.  An "authorized representative" means an 
147.18  individual who is at least 18 years of age and is designated by 
147.19  the person or the person's legal representative to act on the 
147.20  person's behalf.  This individual may be a family member, 
147.21  guardian, representative payee, or other individual designated 
147.22  by the person or the person's legal representative, if any, to 
147.23  assist in purchasing and arranging for supports; or 
147.24     (ii) is concurrently receiving adult foster care, 
147.25  residential care, or assisted living services;. 
147.26     (3)  Subd. 5h.  [CASH PAYMENTS TO PERSONS.] (a) Cash 
147.27  payments to a person or a person's family will be provided 
147.28  through a monthly payment and be in the form of cash, voucher, 
147.29  or direct county payment to a vendor.  Fees or premiums assessed 
147.30  to the person for eligibility for health and human services are 
147.31  not reimbursable through this service option.  Services and 
147.32  goods purchased through cash payments must be identified in the 
147.33  person's individualized care plan and must meet all of the 
147.34  following criteria: 
147.35     (i) (1) they must be over and above the normal cost of 
147.36  caring for the person if the person did not have functional 
148.1   limitations; 
148.2      (ii) (2) they must be directly attributable to the person's 
148.3   functional limitations; 
148.4      (iii) (3) they must have the potential to be effective at 
148.5   meeting the goals of the program; and 
148.6      (iv) (4) they must be consistent with the needs identified 
148.7   in the individualized service plan.  The service plan shall 
148.8   specify the needs of the person and family, the form and amount 
148.9   of payment, the items and services to be reimbursed, and the 
148.10  arrangements for management of the individual grant; and. 
148.11     (v) (b) The person, the person's family, or the legal 
148.12  representative shall be provided sufficient information to 
148.13  ensure an informed choice of alternatives.  The local agency 
148.14  shall document this information in the person's care plan, 
148.15  including the type and level of expenditures to be reimbursed;. 
148.16     (c) Persons receiving grants under this section shall have 
148.17  the following responsibilities: 
148.18     (1) spend the grant money in a manner consistent with their 
148.19  individualized service plan with the local agency; 
148.20     (2) notify the local agency of any necessary changes in the 
148.21  grant expenditures; 
148.22     (3) arrange and pay for supports; and 
148.23     (4) inform the local agency of areas where they have 
148.24  experienced difficulty securing or maintaining supports. 
148.25     (d) The county shall report client outcomes, services, and 
148.26  costs under this paragraph in a manner prescribed by the 
148.27  commissioner. 
148.28     (4) Subd. 5i.  [IMMUNITY.] The state of Minnesota, county, 
148.29  lead agency under contract, or tribal government under contract 
148.30  to administer the alternative care program shall not be liable 
148.31  for damages, injuries, or liabilities sustained through the 
148.32  purchase of direct supports or goods by the person, the person's 
148.33  family, or the authorized representative with funds received 
148.34  through the cash payments under this section.  Liabilities 
148.35  include, but are not limited to, workers' compensation, the 
148.36  Federal Insurance Contributions Act (FICA), or the Federal 
149.1   Unemployment Tax Act (FUTA);. 
149.2      (5) persons receiving grants under this section shall have 
149.3   the following responsibilities: 
149.4      (i) spend the grant money in a manner consistent with their 
149.5   individualized service plan with the local agency; 
149.6      (ii) notify the local agency of any necessary changes in 
149.7   the grant expenditures; 
149.8      (iii) arrange and pay for supports; and 
149.9      (iv) inform the local agency of areas where they have 
149.10  experienced difficulty securing or maintaining supports; and 
149.11     (6) the county shall report client outcomes, services, and 
149.12  costs under this paragraph in a manner prescribed by the 
149.13  commissioner. 
149.14     Sec. 21.  Minnesota Statutes 2002, section 256B.0913, 
149.15  subdivision 6, is amended to read: 
149.16     Subd. 6.  [ALTERNATIVE CARE PROGRAM ADMINISTRATION.] (a) 
149.17  The alternative care program is administered by the county 
149.18  agency.  This agency is the lead agency responsible for the 
149.19  local administration of the alternative care program as 
149.20  described in this section.  However, it may contract with the 
149.21  public health nursing service to be the lead agency.  The 
149.22  commissioner may contract with federally recognized Indian 
149.23  tribes with a reservation in Minnesota to serve as the lead 
149.24  agency responsible for the local administration of the 
149.25  alternative care program as described in the contract. 
149.26     (b) Alternative care pilot projects operate according to 
149.27  this section and the provisions of Laws 1993, First Special 
149.28  Session chapter 1, article 5, section 133, under agreement with 
149.29  the commissioner.  Each pilot project agreement period shall 
149.30  begin no later than the first payment cycle of the state fiscal 
149.31  year and continue through the last payment cycle of the state 
149.32  fiscal year. 
149.33     [EFFECTIVE DATE.] This section is effective July 1, 2004. 
149.34     Sec. 22.  Minnesota Statutes 2002, section 256B.0913, 
149.35  subdivision 7, is amended to read: 
149.36     Subd. 7.  [CASE MANAGEMENT.] Providers of case management 
150.1   services for persons receiving services funded by the 
150.2   alternative care program must meet the qualification 
150.3   requirements and standards specified in section 256B.0915, 
150.4   subdivision 1b.  The case manager must not approve alternative 
150.5   care funding for a client in any setting in which the case 
150.6   manager cannot reasonably ensure the client's health and 
150.7   safety.  The case manager is responsible for the 
150.8   cost-effectiveness of the alternative care individual care plan 
150.9   and must not approve any care plan in which the cost of services 
150.10  funded by alternative care and client contributions exceeds the 
150.11  limit specified in section 256B.0915, subdivision 3, paragraph 
150.12  (b).  The county may allow a case manager employed by the county 
150.13  to delegate certain aspects of the case management activity to 
150.14  another individual employed by the county provided there is 
150.15  oversight of the individual by the case manager.  The case 
150.16  manager may not delegate those aspects which require 
150.17  professional judgment including assessments, reassessments, and 
150.18  care plan development. 
150.19     Sec. 23.  Minnesota Statutes 2002, section 256B.0913, 
150.20  subdivision 8, is amended to read: 
150.21     Subd. 8.  [REQUIREMENTS FOR INDIVIDUAL CARE PLAN.] (a) The 
150.22  case manager shall implement the plan of care for each 
150.23  alternative care client and ensure that a client's service needs 
150.24  and eligibility are reassessed at least every 12 months.  The 
150.25  plan shall include any services prescribed by the individual's 
150.26  attending physician as necessary to allow the individual to 
150.27  remain in a community setting.  In developing the individual's 
150.28  care plan, the case manager should include the use of volunteers 
150.29  from families and neighbors, religious organizations, social 
150.30  clubs, and civic and service organizations to support the formal 
150.31  home care services.  The county shall be held harmless for 
150.32  damages or injuries sustained through the use of volunteers 
150.33  under this subdivision including workers' compensation 
150.34  liability.  The lead agency shall provide documentation in each 
150.35  individual's plan of care and, if requested, to the commissioner 
150.36  that the most cost-effective alternatives available have been 
151.1   offered to the individual and that the individual was free to 
151.2   choose among available qualified providers, both public and 
151.3   private, including qualified case management or service 
151.4   coordination providers other than those employed by the lead 
151.5   agency when the lead agency maintains responsibility for prior 
151.6   authorizing services in accordance with statutory and 
151.7   administrative requirements.  The case manager must give the 
151.8   individual a ten-day written notice of any denial, termination, 
151.9   or reduction of alternative care services. 
151.10     (b) If the county administering alternative care services 
151.11  is different than the county of financial responsibility, the 
151.12  care plan may be implemented without the approval of the county 
151.13  of financial responsibility. 
151.14     [EFFECTIVE DATE.] This section is effective July 1, 2005. 
151.15     Sec. 24.  Minnesota Statutes 2002, section 256B.0913, 
151.16  subdivision 10, is amended to read: 
151.17     Subd. 10.  [ALLOCATION FORMULA.] (a) The alternative care 
151.18  appropriation for fiscal years 1992 and beyond shall cover only 
151.19  alternative care eligible clients.  By July 1 of each year, the 
151.20  commissioner shall allocate to county agencies the state funds 
151.21  available for alternative care for persons eligible under 
151.22  subdivision 2. 
151.23     (b) The adjusted base for each county is the county's 
151.24  current fiscal year base allocation plus any targeted funds 
151.25  approved during the current fiscal year.  Calculations for 
151.26  paragraphs (c) and (d) are to be made as follows:  for each 
151.27  county, the determination of alternative care program 
151.28  expenditures shall be based on payments for services rendered 
151.29  from April 1 through March 31 in the base year, to the extent 
151.30  that claims have been submitted and paid by June 1 of that year. 
151.31     (c) If the alternative care program expenditures as defined 
151.32  in paragraph (b) are 95 percent or more of the county's adjusted 
151.33  base allocation, the allocation for the next fiscal year is 100 
151.34  percent of the adjusted base, plus inflation to the extent that 
151.35  inflation is included in the state budget. 
151.36     (d) If the alternative care program expenditures as defined 
152.1   in paragraph (b) are less than 95 percent of the county's 
152.2   adjusted base allocation, the allocation for the next fiscal 
152.3   year is the adjusted base allocation less the amount of unspent 
152.4   funds below the 95 percent level. 
152.5      (e) If the annual legislative appropriation for the 
152.6   alternative care program is inadequate to fund the combined 
152.7   county allocations for a biennium, the commissioner shall 
152.8   distribute to each county the entire annual appropriation as 
152.9   that county's percentage of the computed base as calculated in 
152.10  paragraphs (c) and (d). 
152.11     (f) On agreement between the commissioner and the lead 
152.12  agency, the commissioner may have discretion to reallocate 
152.13  alternative care base allocations distributed to lead agencies 
152.14  in which the base amount exceeds program expenditures. 
152.15     Sec. 25.  Minnesota Statutes 2002, section 256B.0913, 
152.16  subdivision 12, is amended to read: 
152.17     Subd. 12.  [CLIENT PREMIUMS FEES.] (a) A premium fee is 
152.18  required for all alternative care eligible clients to help pay 
152.19  for the cost of participating in the program.  The amount of the 
152.20  premium fee for the alternative care client shall be determined 
152.21  as follows: 
152.22     (1) when the alternative care client's income less 
152.23  recurring and predictable medical expenses is greater than the 
152.24  recipient's maintenance needs allowance as defined in section 
152.25  256B.0915, subdivision 1d, paragraph (a), but less than 150 100 
152.26  percent of the federal poverty guideline effective on July 1 of 
152.27  the state fiscal year in which the premium fee is being 
152.28  computed, and total assets are less than $10,000, the fee is 
152.29  zero; 
152.30     (2) when the alternative care client's income less 
152.31  recurring and predictable medical expenses is equal to or 
152.32  greater than 100 percent but less than 150 percent of the 
152.33  federal poverty guideline effective on July 1 of the state 
152.34  fiscal year in which the premium fee is being computed, and 
152.35  total assets are less than $10,000, the fee is 25 five percent 
152.36  of the cost of alternative care services or the difference 
153.1   between 150 percent of the federal poverty guideline effective 
153.2   on July 1 of the state fiscal year in which the premium is being 
153.3   computed and the client's income less recurring and predictable 
153.4   medical expenses, whichever is less; and 
153.5      (3) when the alternative care client's total assets are 
153.6   greater income less recurring and predictable medical expenses 
153.7   is equal to or greater than 150 percent but less than 200 
153.8   percent of the federal poverty guidelines effective on July 1 of 
153.9   the state fiscal year in which the fee is being computed and 
153.10  assets are less than $10,000, the fee is 25 15 percent of the 
153.11  cost of alternative care services; 
153.12     (4) when the alternative care client's income less 
153.13  recurring and predictable medical expenses is equal to or 
153.14  greater than 200 percent of the federal poverty guidelines 
153.15  effective on July 1 of the state fiscal year in which the fee is 
153.16  being computed and assets are less than $10,000, the fee is 30 
153.17  percent of the cost of alternative care services; and 
153.18     (5) when the alternative care client's assets are equal to 
153.19  or greater than $10,000, the fee is 30 percent of the cost of 
153.20  alternative care services.  
153.21     For married persons, total assets are defined as the total 
153.22  marital assets less the estimated community spouse asset 
153.23  allowance, under section 256B.059, if applicable.  For married 
153.24  persons, total income is defined as the client's income less the 
153.25  monthly spousal allotment, under section 256B.058. 
153.26     All alternative care services except case management shall 
153.27  be included in the estimated costs for the purpose of 
153.28  determining 25 percent of the costs fee. 
153.29     Premiums Fees are due and payable each month alternative 
153.30  care services are received unless the actual cost of the 
153.31  services is less than the premium fee, in which case the fee is 
153.32  the lesser amount. 
153.33     (b) The fee shall be waived by the commissioner when: 
153.34     (1) a person who is residing in a nursing facility is 
153.35  receiving case management only; 
153.36     (2) a person is applying for medical assistance; 
154.1      (3) a married couple is requesting an asset assessment 
154.2   under the spousal impoverishment provisions; 
154.3      (4) (3) a person is found eligible for alternative care, 
154.4   but is not yet receiving alternative care services; or 
154.5      (5) a person's fee under paragraph (a) is less than $25 
154.6      (4) a person has chosen to participate in a 
154.7   consumer-directed service plan for which the cost is no greater 
154.8   than the total cost of the person's alternative care service 
154.9   plan less the monthly fee amount that would otherwise be 
154.10  assessed. 
154.11     (c) The county agency must record in the state's receivable 
154.12  system the client's assessed premium fee amount or the reason 
154.13  the premium fee has been waived.  The commissioner will bill and 
154.14  collect the premium fee from the client.  Money collected must 
154.15  be deposited in the general fund and is appropriated to the 
154.16  commissioner for the alternative care program.  The client must 
154.17  supply the county with the client's social security number at 
154.18  the time of application.  The county shall supply the 
154.19  commissioner with the client's social security number and other 
154.20  information the commissioner requires to collect the premium fee 
154.21  from the client.  The commissioner shall collect unpaid premiums 
154.22  fees using the Revenue Recapture Act in chapter 270A and other 
154.23  methods available to the commissioner.  The commissioner may 
154.24  require counties to inform clients of the collection procedures 
154.25  that may be used by the state if a premium fee is not paid.  
154.26  This paragraph does not apply to alternative care pilot projects 
154.27  authorized in Laws 1993, First Special Session chapter 1, 
154.28  article 5, section 133, if a county operating under the pilot 
154.29  project reports the following dollar amounts to the commissioner 
154.30  quarterly: 
154.31     (1) total premiums fees billed to clients; 
154.32     (2) total collections of premiums fees billed; and 
154.33     (3) balance of premiums fees owed by clients. 
154.34  If a county does not adhere to these reporting requirements, the 
154.35  commissioner may terminate the billing, collecting, and 
154.36  remitting portions of the pilot project and require the county 
155.1   involved to operate under the procedures set forth in this 
155.2   paragraph. 
155.3      Sec. 26.  Minnesota Statutes 2002, section 256B.0915, 
155.4   subdivision 3, is amended to read: 
155.5      Subd. 3.  [LIMITS OF CASES, RATES, PAYMENTS, AND 
155.6   FORECASTING.] (a) The number of medical assistance waiver 
155.7   recipients that a county may serve must be allocated according 
155.8   to the number of medical assistance waiver cases open on July 1 
155.9   of each fiscal year.  Additional recipients may be served with 
155.10  the approval of the commissioner. 
155.11     (b) Subd. 3a.  [ELDERLY WAIVER COST LIMITS.] (a) The 
155.12  monthly limit for the cost of waivered services to an individual 
155.13  elderly waiver client shall be the weighted average monthly 
155.14  nursing facility rate of the case mix resident class to which 
155.15  the elderly waiver client would be assigned under Minnesota 
155.16  Rules, parts 9549.0050 to 9549.0059, less the recipient's 
155.17  maintenance needs allowance as described in subdivision 1d, 
155.18  paragraph (a), until the first day of the state fiscal year in 
155.19  which the resident assessment system as described in section 
155.20  256B.437 for nursing home rate determination is implemented.  
155.21  Effective on the first day of the state fiscal year in which the 
155.22  resident assessment system as described in section 256B.437 for 
155.23  nursing home rate determination is implemented and the first day 
155.24  of each subsequent state fiscal year, the monthly limit for the 
155.25  cost of waivered services to an individual elderly waiver client 
155.26  shall be the rate of the case mix resident class to which the 
155.27  waiver client would be assigned under Minnesota Rules, parts 
155.28  9549.0050 to 9549.0059, in effect on the last day of the 
155.29  previous state fiscal year, adjusted by the greater of any 
155.30  legislatively adopted home and community-based services 
155.31  cost-of-living percentage increase or any legislatively adopted 
155.32  statewide percent rate increase for nursing facilities. 
155.33     (c) (b) If extended medical supplies and equipment or 
155.34  environmental modifications are or will be purchased for an 
155.35  elderly waiver client, the costs may be prorated for up to 12 
155.36  consecutive months beginning with the month of purchase.  If the 
156.1   monthly cost of a recipient's waivered services exceeds the 
156.2   monthly limit established in paragraph (b) (a), the annual cost 
156.3   of all waivered services shall be determined.  In this event, 
156.4   the annual cost of all waivered services shall not exceed 12 
156.5   times the monthly limit of waivered services as described in 
156.6   paragraph (b) (a).  
156.7      (d) Subd. 3b.  [COST LIMITS FOR ELDERLY WAIVER APPLICANTS 
156.8   WHO RESIDE IN A NURSING FACILITY.] (a) For a person who is a 
156.9   nursing facility resident at the time of requesting a 
156.10  determination of eligibility for elderly waivered services, a 
156.11  monthly conversion limit for the cost of elderly waivered 
156.12  services may be requested.  The monthly conversion limit for the 
156.13  cost of elderly waiver services shall be the resident class 
156.14  assigned under Minnesota Rules, parts 9549.0050 to 9549.0059, 
156.15  for that resident in the nursing facility where the resident 
156.16  currently resides until July 1 of the state fiscal year in which 
156.17  the resident assessment system as described in section 256B.437 
156.18  for nursing home rate determination is implemented.  Effective 
156.19  on July 1 of the state fiscal year in which the resident 
156.20  assessment system as described in section 256B.437 for nursing 
156.21  home rate determination is implemented, the monthly conversion 
156.22  limit for the cost of elderly waiver services shall be the per 
156.23  diem nursing facility rate as determined by the resident 
156.24  assessment system as described in section 256B.437 for that 
156.25  resident in the nursing facility where the resident currently 
156.26  resides multiplied by 365 and divided by 12, less the 
156.27  recipient's maintenance needs allowance as described in 
156.28  subdivision 1d.  The initially approved conversion rate may be 
156.29  adjusted by the greater of any subsequent legislatively adopted 
156.30  home and community-based services cost-of-living percentage 
156.31  increase or any subsequent legislatively adopted statewide 
156.32  percentage rate increase for nursing facilities.  The limit 
156.33  under this clause subdivision only applies to persons discharged 
156.34  from a nursing facility after a minimum 30-day stay and found 
156.35  eligible for waivered services on or after July 1, 1997.  
156.36     (b) The following costs must be included in determining the 
157.1   total monthly costs for the waiver client: 
157.2      (1) cost of all waivered services, including extended 
157.3   medical supplies and equipment and environmental modifications; 
157.4   and 
157.5      (2) cost of skilled nursing, home health aide, and personal 
157.6   care services reimbursable by medical assistance.  
157.7      (e) Subd. 3c.  [SERVICE APPROVAL AND CONTRACTING 
157.8   PROVISIONS.] (a) Medical assistance funding for skilled nursing 
157.9   services, private duty nursing, home health aide, and personal 
157.10  care services for waiver recipients must be approved by the case 
157.11  manager and included in the individual care plan. 
157.12     (f) (b) A county is not required to contract with a 
157.13  provider of supplies and equipment if the monthly cost of the 
157.14  supplies and equipment is less than $250.  
157.15     (g) Subd. 3d.  [ADULT FOSTER CARE RATE.] The adult foster 
157.16  care rate shall be considered a difficulty of care payment and 
157.17  shall not include room and board.  The adult foster care service 
157.18  rate shall be negotiated between the county agency and the 
157.19  foster care provider.  The elderly waiver payment for the foster 
157.20  care service in combination with the payment for all other 
157.21  elderly waiver services, including case management, must not 
157.22  exceed the limit specified in subdivision 3a, paragraph (b) (a). 
157.23     (h) Subd. 3e.  [ASSISTED LIVING SERVICE RATE.] (a) Payment 
157.24  for assisted living service shall be a monthly rate negotiated 
157.25  and authorized by the county agency based on an individualized 
157.26  service plan for each resident and may not cover direct rent or 
157.27  food costs. 
157.28     (1) (b) The individualized monthly negotiated payment for 
157.29  assisted living services as described in section 256B.0913, 
157.30  subdivision 5, paragraph (g) or (h) subdivisions 5d to 5f, and 
157.31  residential care services as described in section 256B.0913, 
157.32  subdivision 5, paragraph (f) 5c, shall not exceed the nonfederal 
157.33  share, in effect on July 1 of the state fiscal year for which 
157.34  the rate limit is being calculated, of the greater of either the 
157.35  statewide or any of the geographic groups' weighted average 
157.36  monthly nursing facility rate of the case mix resident class to 
158.1   which the elderly waiver eligible client would be assigned under 
158.2   Minnesota Rules, parts 9549.0050 to 9549.0059, less the 
158.3   maintenance needs allowance as described in subdivision 1d, 
158.4   paragraph (a), until the July 1 of the state fiscal year in 
158.5   which the resident assessment system as described in section 
158.6   256B.437 for nursing home rate determination is implemented.  
158.7   Effective on July 1 of the state fiscal year in which the 
158.8   resident assessment system as described in section 256B.437 for 
158.9   nursing home rate determination is implemented and July 1 of 
158.10  each subsequent state fiscal year, the individualized monthly 
158.11  negotiated payment for the services described in this clause 
158.12  shall not exceed the limit described in this clause which was in 
158.13  effect on June 30 of the previous state fiscal year and which 
158.14  has been adjusted by the greater of any legislatively adopted 
158.15  home and community-based services cost-of-living percentage 
158.16  increase or any legislatively adopted statewide percent rate 
158.17  increase for nursing facilities. 
158.18     (2) (c) The individualized monthly negotiated payment for 
158.19  assisted living services described in section 144A.4605 and 
158.20  delivered by a provider licensed by the department of health as 
158.21  a class A home care provider or an assisted living home care 
158.22  provider and provided in a building that is registered as a 
158.23  housing with services establishment under chapter 144D and that 
158.24  provides 24-hour supervision in combination with the payment for 
158.25  other elderly waiver services, including case management, must 
158.26  not exceed the limit specified in paragraph (b) subdivision 3a. 
158.27     (i) Subd. 3f.  [INDIVIDUAL SERVICE RATES; EXPENDITURE 
158.28  FORECASTS.] (a) The county shall negotiate individual service 
158.29  rates with vendors and may authorize payment for actual costs up 
158.30  to the county's current approved rate.  Persons or agencies must 
158.31  be employed by or under a contract with the county agency or the 
158.32  public health nursing agency of the local board of health in 
158.33  order to receive funding under the elderly waiver program, 
158.34  except as a provider of supplies and equipment when the monthly 
158.35  cost of the supplies and equipment is less than $250.  
158.36     (j) (b) Reimbursement for the medical assistance recipients 
159.1   under the approved waiver shall be made from the medical 
159.2   assistance account through the invoice processing procedures of 
159.3   the department's Medicaid Management Information System (MMIS), 
159.4   only with the approval of the client's case manager.  The budget 
159.5   for the state share of the Medicaid expenditures shall be 
159.6   forecasted with the medical assistance budget, and shall be 
159.7   consistent with the approved waiver.  
159.8      (k) Subd. 3g.  [SERVICE RATE LIMITS; STATE ASSUMPTION OF 
159.9   COSTS.] (a) To improve access to community services and 
159.10  eliminate payment disparities between the alternative care 
159.11  program and the elderly waiver, the commissioner shall establish 
159.12  statewide maximum service rate limits and eliminate 
159.13  county-specific service rate limits. 
159.14     (1) (b) Effective July 1, 2001, for service rate limits, 
159.15  except those described or defined in paragraphs (g) and 
159.16  (h) subdivisions 3d and 3e, the rate limit for each service 
159.17  shall be the greater of the alternative care statewide maximum 
159.18  rate or the elderly waiver statewide maximum rate. 
159.19     (2) (c) Counties may negotiate individual service rates 
159.20  with vendors for actual costs up to the statewide maximum 
159.21  service rate limit. 
159.22     Sec. 27.  Minnesota Statutes 2002, section 256B.15, 
159.23  subdivision 1, is amended to read: 
159.24     Subdivision 1.  [DEFINITION.] For purposes of this section, 
159.25  "medical assistance" includes the medical assistance program 
159.26  under this chapter and the general assistance medical care 
159.27  program under chapter 256D, but does not include the alternative 
159.28  care program for nonmedical assistance recipients under section 
159.29  256B.0913, subdivision 4 and alternative care for nonmedical 
159.30  assistance recipients under section 256B.0913. 
159.31     [EFFECTIVE DATE.] This section is effective July 1, 2003, 
159.32  for decedents dying on or after that date. 
159.33     Sec. 28.  Minnesota Statutes 2002, section 256B.15, 
159.34  subdivision 1a, is amended to read: 
159.35     Subd. 1a.  [ESTATES SUBJECT TO CLAIMS.] If a person 
159.36  receives any medical assistance hereunder, on the person's 
160.1   death, if single, or on the death of the survivor of a married 
160.2   couple, either or both of whom received medical assistance, or 
160.3   as otherwise provided for in this section, the total amount paid 
160.4   for medical assistance rendered for the person and spouse shall 
160.5   be filed as a claim against the estate of the person or the 
160.6   estate of the surviving spouse in the court having jurisdiction 
160.7   to probate the estate or to issue a decree of descent according 
160.8   to sections 525.31 to 525.313.  
160.9      A claim shall be filed if medical assistance was rendered 
160.10  for either or both persons under one of the following 
160.11  circumstances: 
160.12     (a) the person was over 55 years of age, and received 
160.13  services under this chapter, excluding alternative care; 
160.14     (b) the person resided in a medical institution for six 
160.15  months or longer, received services under this chapter excluding 
160.16  alternative care, and, at the time of institutionalization or 
160.17  application for medical assistance, whichever is later, the 
160.18  person could not have reasonably been expected to be discharged 
160.19  and returned home, as certified in writing by the person's 
160.20  treating physician.  For purposes of this section only, a 
160.21  "medical institution" means a skilled nursing facility, 
160.22  intermediate care facility, intermediate care facility for 
160.23  persons with mental retardation, nursing facility, or inpatient 
160.24  hospital; or 
160.25     (c) the person received general assistance medical care 
160.26  services under chapter 256D.  
160.27     The claim shall be considered an expense of the last 
160.28  illness of the decedent for the purpose of section 524.3-805.  
160.29  Any statute of limitations that purports to limit any county 
160.30  agency or the state agency, or both, to recover for medical 
160.31  assistance granted hereunder shall not apply to any claim made 
160.32  hereunder for reimbursement for any medical assistance granted 
160.33  hereunder.  Notice of the claim shall be given to all heirs and 
160.34  devisees of the decedent whose identity can be ascertained with 
160.35  reasonable diligence.  The notice must include procedures and 
160.36  instructions for making an application for a hardship waiver 
161.1   under subdivision 5; time frames for submitting an application 
161.2   and determination; and information regarding appeal rights and 
161.3   procedures.  Counties are entitled to one-half of the nonfederal 
161.4   share of medical assistance collections from estates that are 
161.5   directly attributable to county effort.  Counties are entitled 
161.6   to ten percent of the collections for alternative care directly 
161.7   attributable to county effort. 
161.8      [EFFECTIVE DATE.] The amendments in this section relating 
161.9   to the alternative care program are effective July 1, 2003, and 
161.10  apply to the estates of decedents who die on or after that 
161.11  date.  The remaining amendments in this section are effective 
161.12  August 1, 2003, and apply to the estates of decedents who die on 
161.13  and after that date. 
161.14     Sec. 29.  Minnesota Statutes 2002, section 256B.15, 
161.15  subdivision 2, is amended to read: 
161.16     Subd. 2.  [LIMITATIONS ON CLAIMS.] The claim shall include 
161.17  only the total amount of medical assistance rendered after age 
161.18  55 or during a period of institutionalization described in 
161.19  subdivision 1a, clause (b), and the total amount of general 
161.20  assistance medical care rendered, and shall not include 
161.21  interest.  Claims that have been allowed but not paid shall bear 
161.22  interest according to section 524.3-806, paragraph (d).  A claim 
161.23  against the estate of a surviving spouse who did not receive 
161.24  medical assistance, for medical assistance rendered for the 
161.25  predeceased spouse, is limited to the value of the assets of the 
161.26  estate that were marital property or jointly owned property at 
161.27  any time during the marriage.  Claims for alternative care shall 
161.28  be net of all premiums paid under section 256B.0913, subdivision 
161.29  12, on or after July 1, 2003, and shall be limited to services 
161.30  provided on or after July 1, 2003. 
161.31     [EFFECTIVE DATE.] This section is effective July 1, 2003, 
161.32  for decedents dying on or after that date. 
161.33     Sec. 30.  Minnesota Statutes 2002, section 256B.431, 
161.34  subdivision 2r, is amended to read: 
161.35     Subd. 2r.  [PAYMENT RESTRICTIONS ON LEAVE DAYS.] Effective 
161.36  July 1, 1993, the commissioner shall limit payment for leave 
162.1   days in a nursing facility to 79 percent of that nursing 
162.2   facility's total payment rate for the involved resident.  For 
162.3   services rendered on or after July 1, 2003, for facilities 
162.4   reimbursed under this section or section 256B.434, the 
162.5   commissioner shall limit payment for leave days in a nursing 
162.6   facility to 60 percent of that nursing facility's total payment 
162.7   rate for the involved resident. 
162.8      Sec. 31.  Minnesota Statutes 2002, section 256B.431, is 
162.9   amended by adding a subdivision to read: 
162.10     Subd. 2t.  [PAYMENT LIMITATION.] For services rendered on 
162.11  or after July 1, 2003, for facilities reimbursed under this 
162.12  section or section 256B.434, the Medicaid program shall only pay 
162.13  a co-payment during a Medicare-covered skilled nursing facility 
162.14  stay if the Medicare rate less the resident's co-payment 
162.15  responsibility is less than the Medicaid RUG-III case-mix 
162.16  payment rate.  The amount that shall be paid by the Medicaid 
162.17  program is equal to the amount by which the Medicaid RUG-III 
162.18  case-mix payment rate exceeds the Medicare rate less the 
162.19  co-payment responsibility.  Health plans paying for nursing home 
162.20  services under section 256B.69, subdivision 6a, may limit 
162.21  payments as allowed under this subdivision. 
162.22     Sec. 32.  Minnesota Statutes 2002, section 256B.431, 
162.23  subdivision 32, is amended to read: 
162.24     Subd. 32.  [PAYMENT DURING FIRST 90 DAYS.] (a) For rate 
162.25  years beginning on or after July 1, 2001, the total payment rate 
162.26  for a facility reimbursed under this section, section 256B.434, 
162.27  or any other section for the first 90 paid days after admission 
162.28  shall be: 
162.29     (1) for the first 30 paid days, the rate shall be 120 
162.30  percent of the facility's medical assistance rate for each case 
162.31  mix class; and 
162.32     (2) for the next 60 paid days after the first 30 paid days, 
162.33  the rate shall be 110 percent of the facility's medical 
162.34  assistance rate for each case mix class.; 
162.35     (b) (3) beginning with the 91st paid day after admission, 
162.36  the payment rate shall be the rate otherwise determined under 
163.1   this section, section 256B.434, or any other section.; and 
163.2      (c) (4) payments under this subdivision applies paragraph 
163.3   apply to admissions occurring on or after July 1, 2001, and 
163.4   before July 1, 2003, and to resident days occurring before July 
163.5   30, 2003. 
163.6      (b) For rate years beginning on or after July 1, 2003, the 
163.7   total payment rate for a facility reimbursed under this section, 
163.8   section 256B.434, or any other section shall be: 
163.9      (1) for the first 30 calendar days after admission, the 
163.10  rate shall be 120 percent of the facility's medical assistance 
163.11  rate for each RUG class; 
163.12     (2) beginning with the 31st calendar day after admission, 
163.13  the payment rate shall be the rate otherwise determined under 
163.14  this section, section 256B.434, or any other section; and 
163.15     (3) payments under this paragraph apply to admissions 
163.16  occurring on or after July 1, 2003. 
163.17     (c) Effective January 1, 2004, the enhanced rates under 
163.18  this subdivision shall not be allowed if a resident has resided 
163.19  during the previous 30 calendar days in: 
163.20     (1) the same nursing facility; 
163.21     (2) a nursing facility owned or operated by a related 
163.22  party; or 
163.23     (3) a nursing facility or part of a facility that closed. 
163.24     Sec. 33.  Minnesota Statutes 2002, section 256B.431, 
163.25  subdivision 36, is amended to read: 
163.26     Subd. 36.  [EMPLOYEE SCHOLARSHIP COSTS AND TRAINING IN 
163.27  ENGLISH AS A SECOND LANGUAGE.] (a) For the period between July 
163.28  1, 2001, and June 30, 2003, the commissioner shall provide to 
163.29  each nursing facility reimbursed under this section, section 
163.30  256B.434, or any other section, a scholarship per diem of 25 
163.31  cents to the total operating payment rate to be used: 
163.32     (1) for employee scholarships that satisfy the following 
163.33  requirements: 
163.34     (i) scholarships are available to all employees who work an 
163.35  average of at least 20 hours per week at the facility except the 
163.36  administrator, department supervisors, and registered nurses; 
164.1   and 
164.2      (ii) the course of study is expected to lead to career 
164.3   advancement with the facility or in long-term care, including 
164.4   medical care interpreter services and social work; and 
164.5      (2) to provide job-related training in English as a second 
164.6   language. 
164.7      (b) A facility receiving a rate adjustment under this 
164.8   subdivision may submit to the commissioner on a schedule 
164.9   determined by the commissioner and on a form supplied by the 
164.10  commissioner a calculation of the scholarship per diem, 
164.11  including:  the amount received from this rate adjustment; the 
164.12  amount used for training in English as a second language; the 
164.13  number of persons receiving the training; the name of the person 
164.14  or entity providing the training; and for each scholarship 
164.15  recipient, the name of the recipient, the amount awarded, the 
164.16  educational institution attended, the nature of the educational 
164.17  program, the program completion date, and a determination of the 
164.18  per diem amount of these costs based on actual resident days. 
164.19     (c) On July 1, 2003, the commissioner shall remove the 25 
164.20  cent scholarship per diem from the total operating payment rate 
164.21  of each facility. 
164.22     (d) For rate years beginning after June 30, 2003, the 
164.23  commissioner shall provide to each facility the scholarship per 
164.24  diem determined in paragraph (b).  In calculating the per diem 
164.25  under paragraph (b), the commissioner shall allow only costs 
164.26  related to tuition and direct educational expenses. 
164.27     Sec. 34.  Minnesota Statutes 2002, section 256B.431, is 
164.28  amended by adding a subdivision to read: 
164.29     Subd. 38.  [NURSING HOME RATE INCREASES EFFECTIVE IN FISCAL 
164.30  YEAR 2003.] Effective June 1, 2003, the commissioner shall 
164.31  provide to each nursing home reimbursed under this section or 
164.32  section 256B.434, an increase in each case mix payment rate 
164.33  equal to the increase in the per-bed surcharge paid under 
164.34  section 256.9657, subdivision 1, paragraph (d), divided by 365 
164.35  and further divided by .90.  The increase shall not be subject 
164.36  to any annual percentage increase.  The 30-day advance notice 
165.1   requirement in section 256B.47, subdivision 2, shall not apply 
165.2   to rate increases resulting from this section.  The commissioner 
165.3   shall not adjust the rate increase under this subdivision unless 
165.4   the adjustment is greater than 1.5 percent of the monthly 
165.5   surcharge payment amount under section 256.9657, subdivision 4. 
165.6      [EFFECTIVE DATE.] This section is effective May 31, 2003. 
165.7      Sec. 35.  Minnesota Statutes 2002, section 256B.431, is 
165.8   amended by adding a subdivision to read: 
165.9      Subd. 39.  [FACILITY RATES BEGINNING ON OR AFTER JULY 1, 
165.10  2003.] For rate years beginning on or after July 1, 2003, 
165.11  nursing facilities reimbursed under this section shall have 
165.12  their July 1 operating payment rate be equal to their operating 
165.13  payment rate in effect on the prior June 30th. 
165.14     Sec. 36.  Minnesota Statutes 2002, section 256B.434, 
165.15  subdivision 4, is amended to read: 
165.16     Subd. 4.  [ALTERNATE RATES FOR NURSING FACILITIES.] (a) For 
165.17  nursing facilities which have their payment rates determined 
165.18  under this section rather than section 256B.431, the 
165.19  commissioner shall establish a rate under this subdivision.  The 
165.20  nursing facility must enter into a written contract with the 
165.21  commissioner. 
165.22     (b) A nursing facility's case mix payment rate for the 
165.23  first rate year of a facility's contract under this section is 
165.24  the payment rate the facility would have received under section 
165.25  256B.431. 
165.26     (c) A nursing facility's case mix payment rates for the 
165.27  second and subsequent years of a facility's contract under this 
165.28  section are the previous rate year's contract payment rates plus 
165.29  an inflation adjustment and, for facilities reimbursed under 
165.30  this section or section 256B.431, an adjustment to include the 
165.31  cost of any increase in health department licensing fees for the 
165.32  facility taking effect on or after July 1, 2001.  The index for 
165.33  the inflation adjustment must be based on the change in the 
165.34  Consumer Price Index-All Items (United States City average) 
165.35  (CPI-U) forecasted by Data Resources, Inc. the commissioner of 
165.36  finance's national economic consultant, as forecasted in the 
166.1   fourth quarter of the calendar year preceding the rate year.  
166.2   The inflation adjustment must be based on the 12-month period 
166.3   from the midpoint of the previous rate year to the midpoint of 
166.4   the rate year for which the rate is being determined.  For the 
166.5   rate years beginning on July 1, 1999, July 1, 2000, July 1, 
166.6   2001, and July 1, 2002, July 1, 2003, and July 1, 2004, this 
166.7   paragraph shall apply only to the property-related payment rate, 
166.8   except that adjustments to include the cost of any increase in 
166.9   health department licensing fees taking effect on or after July 
166.10  1, 2001, shall be provided.  In determining the amount of the 
166.11  property-related payment rate adjustment under this paragraph, 
166.12  the commissioner shall determine the proportion of the 
166.13  facility's rates that are property-related based on the 
166.14  facility's most recent cost report. 
166.15     (d) The commissioner shall develop additional 
166.16  incentive-based payments of up to five percent above the 
166.17  standard contract rate for achieving outcomes specified in each 
166.18  contract.  The specified facility-specific outcomes must be 
166.19  measurable and approved by the commissioner.  The commissioner 
166.20  may establish, for each contract, various levels of achievement 
166.21  within an outcome.  After the outcomes have been specified the 
166.22  commissioner shall assign various levels of payment associated 
166.23  with achieving the outcome.  Any incentive-based payment cancels 
166.24  if there is a termination of the contract.  In establishing the 
166.25  specified outcomes and related criteria the commissioner shall 
166.26  consider the following state policy objectives: 
166.27     (1) improved cost effectiveness and quality of life as 
166.28  measured by improved clinical outcomes; 
166.29     (2) successful diversion or discharge to community 
166.30  alternatives; 
166.31     (3) decreased acute care costs; 
166.32     (4) improved consumer satisfaction; 
166.33     (5) the achievement of quality; or 
166.34     (6) any additional outcomes proposed by a nursing facility 
166.35  that the commissioner finds desirable. 
166.36     Sec. 37.  Minnesota Statutes 2002, section 256B.434, 
167.1   subdivision 10, is amended to read: 
167.2      Subd. 10.  [EXEMPTIONS.] (a) To the extent permitted by 
167.3   federal law, (1) a facility that has entered into a contract 
167.4   under this section is not required to file a cost report, as 
167.5   defined in Minnesota Rules, part 9549.0020, subpart 13, for any 
167.6   year after the base year that is the basis for the calculation 
167.7   of the contract payment rate for the first rate year of the 
167.8   alternative payment demonstration project contract; and (2) a 
167.9   facility under contract is not subject to audits of historical 
167.10  costs or revenues, or paybacks or retroactive adjustments based 
167.11  on these costs or revenues, except audits, paybacks, or 
167.12  adjustments relating to the cost report that is the basis for 
167.13  calculation of the first rate year under the contract. 
167.14     (b) A facility that is under contract with the commissioner 
167.15  under this section is not subject to the moratorium on licensure 
167.16  or certification of new nursing home beds in section 144A.071, 
167.17  unless the project results in a net increase in bed capacity or 
167.18  involves relocation of beds from one site to another.  Contract 
167.19  payment rates must not be adjusted to reflect any additional 
167.20  costs that a nursing facility incurs as a result of a 
167.21  construction project undertaken under this paragraph.  In 
167.22  addition, as a condition of entering into a contract under this 
167.23  section, a nursing facility must agree that any future medical 
167.24  assistance payments for nursing facility services will not 
167.25  reflect any additional costs attributable to the sale of a 
167.26  nursing facility under this section and to construction 
167.27  undertaken under this paragraph that otherwise would not be 
167.28  authorized under the moratorium in section 144A.073.  Nothing in 
167.29  this section prevents a nursing facility participating in the 
167.30  alternative payment demonstration project under this section 
167.31  from seeking approval of an exception to the moratorium through 
167.32  the process established in section 144A.073, and if approved the 
167.33  facility's rates shall be adjusted to reflect the cost of the 
167.34  project.  Nothing in this section prevents a nursing facility 
167.35  participating in the alternative payment demonstration project 
167.36  from seeking legislative approval of an exception to the 
168.1   moratorium under section 144A.071, and, if enacted, the 
168.2   facility's rates shall be adjusted to reflect the cost of the 
168.3   project. 
168.4      (c) Notwithstanding section 256B.48, subdivision 6, 
168.5   paragraphs (c), (d), and (e), and pursuant to any terms and 
168.6   conditions contained in the facility's contract, a nursing 
168.7   facility that is under contract with the commissioner under this 
168.8   section is in compliance with section 256B.48, subdivision 6, 
168.9   paragraph (b), if the facility is Medicare certified. 
168.10     (d) Notwithstanding paragraph (a), if by April 1, 1996, the 
168.11  health care financing administration has not approved a required 
168.12  waiver, or the Centers for Medicare and Medicaid Services 
168.13  otherwise requires cost reports to be filed prior to the 
168.14  waiver's approval, the commissioner shall require a cost report 
168.15  for the rate year. 
168.16     (e) A facility that is under contract with the commissioner 
168.17  under this section shall be allowed to change therapy 
168.18  arrangements from an unrelated vendor to a related vendor during 
168.19  the term of the contract.  The commissioner may develop 
168.20  reasonable requirements designed to prevent an increase in 
168.21  therapy utilization for residents enrolled in the medical 
168.22  assistance program. 
168.23     (f) Nursing facilities participating in the alternative 
168.24  payment system demonstration project must either participate in 
168.25  the alternative payment system quality improvement program 
168.26  established by the commissioner or submit information on their 
168.27  own quality improvement process to the commissioner for 
168.28  approval.  Nursing facilities that have had their own quality 
168.29  improvement process approved by the commissioner must report 
168.30  results for at least one key area of quality improvement 
168.31  annually to the commissioner.  
168.32     [EFFECTIVE DATE.] This section is effective the day 
168.33  following final enactment. 
168.34     Sec. 38.  Minnesota Statutes 2002, section 256B.5012, is 
168.35  amended by adding a subdivision to read: 
168.36     Subd. 5.  [RATE INCREASE EFFECTIVE JUNE 1, 2003.] For rate 
169.1   periods beginning on or after June 1, 2003, the commissioner 
169.2   shall increase the total operating payment rate for each 
169.3   facility reimbursed under this section by $3 per day.  The 
169.4   increase shall not be subject to any annual percentage increase. 
169.5      [EFFECTIVE DATE.] This section is effective the day 
169.6   following final enactment. 
169.7      Sec. 39.  Minnesota Statutes 2002, section 256B.76, is 
169.8   amended to read: 
169.9      256B.76 [PHYSICIAN AND DENTAL REIMBURSEMENT.] 
169.10     (a) Effective for services rendered on or after October 1, 
169.11  1992, the commissioner shall make payments for physician 
169.12  services as follows: 
169.13     (1) payment for level one Centers for Medicare and Medicaid 
169.14  Services' common procedural coding system codes titled "office 
169.15  and other outpatient services," "preventive medicine new and 
169.16  established patient," "delivery, antepartum, and postpartum 
169.17  care," "critical care," cesarean delivery and pharmacologic 
169.18  management provided to psychiatric patients, and level three 
169.19  codes for enhanced services for prenatal high risk, shall be 
169.20  paid at the lower of (i) submitted charges, or (ii) 25 percent 
169.21  above the rate in effect on June 30, 1992.  If the rate on any 
169.22  procedure code within these categories is different than the 
169.23  rate that would have been paid under the methodology in section 
169.24  256B.74, subdivision 2, then the larger rate shall be paid; 
169.25     (2) payments for all other services shall be paid at the 
169.26  lower of (i) submitted charges, or (ii) 15.4 percent above the 
169.27  rate in effect on June 30, 1992; 
169.28     (3) all physician rates shall be converted from the 50th 
169.29  percentile of 1982 to the 50th percentile of 1989, less the 
169.30  percent in aggregate necessary to equal the above increases 
169.31  except that payment rates for home health agency services shall 
169.32  be the rates in effect on September 30, 1992; 
169.33     (4) effective for services rendered on or after January 1, 
169.34  2000, payment rates for physician and professional services 
169.35  shall be increased by three percent over the rates in effect on 
169.36  December 31, 1999, except for home health agency and family 
170.1   planning agency services; and 
170.2      (5) the increases in clause (4) shall be implemented 
170.3   January 1, 2000, for managed care. 
170.4      (b) Effective for services rendered on or after October 1, 
170.5   1992, the commissioner shall make payments for dental services 
170.6   as follows: 
170.7      (1) dental services shall be paid at the lower of (i) 
170.8   submitted charges, or (ii) 25 percent above the rate in effect 
170.9   on June 30, 1992; 
170.10     (2) dental rates shall be converted from the 50th 
170.11  percentile of 1982 to the 50th percentile of 1989, less the 
170.12  percent in aggregate necessary to equal the above increases; 
170.13     (3) effective for services rendered on or after January 1, 
170.14  2000, payment rates for dental services shall be increased by 
170.15  three percent over the rates in effect on December 31, 1999; 
170.16     (4) the commissioner shall award grants to community 
170.17  clinics or other nonprofit community organizations, political 
170.18  subdivisions, professional associations, or other organizations 
170.19  that demonstrate the ability to provide dental services 
170.20  effectively to public program recipients.  Grants may be used to 
170.21  fund the costs related to coordinating access for recipients, 
170.22  developing and implementing patient care criteria, upgrading or 
170.23  establishing new facilities, acquiring furnishings or equipment, 
170.24  recruiting new providers, or other development costs that will 
170.25  improve access to dental care in a region.  In awarding grants, 
170.26  the commissioner shall give priority to applicants that plan to 
170.27  serve areas of the state in which the number of dental providers 
170.28  is not currently sufficient to meet the needs of recipients of 
170.29  public programs or uninsured individuals.  The commissioner 
170.30  shall consider the following in awarding the grants: 
170.31     (i) potential to successfully increase access to an 
170.32  underserved population; 
170.33     (ii) the ability to raise matching funds; 
170.34     (iii) the long-term viability of the project to improve 
170.35  access beyond the period of initial funding; 
170.36     (iv) the efficiency in the use of the funding; and 
171.1      (v) the experience of the proposers in providing services 
171.2   to the target population. 
171.3      The commissioner shall monitor the grants and may terminate 
171.4   a grant if the grantee does not increase dental access for 
171.5   public program recipients.  The commissioner shall consider 
171.6   grants for the following: 
171.7      (i) implementation of new programs or continued expansion 
171.8   of current access programs that have demonstrated success in 
171.9   providing dental services in underserved areas; 
171.10     (ii) a pilot program for utilizing hygienists outside of a 
171.11  traditional dental office to provide dental hygiene services; 
171.12  and 
171.13     (iii) a program that organizes a network of volunteer 
171.14  dentists, establishes a system to refer eligible individuals to 
171.15  volunteer dentists, and through that network provides donated 
171.16  dental care services to public program recipients or uninsured 
171.17  individuals; 
171.18     (5) beginning October 1, 1999, the payment for tooth 
171.19  sealants and fluoride treatments shall be the lower of (i) 
171.20  submitted charge, or (ii) 80 percent of median 1997 charges; 
171.21     (6) the increases listed in clauses (3) and (5) shall be 
171.22  implemented January 1, 2000, for managed care; and 
171.23     (7) effective for services provided on or after January 1, 
171.24  2002, payment for diagnostic examinations and dental x-rays 
171.25  provided to children under age 21 shall be the lower of (i) the 
171.26  submitted charge, or (ii) 85 percent of median 1999 charges.  
171.27     (c) Effective for dental services rendered on or after 
171.28  January 1, 2002, the commissioner may, within the limits of 
171.29  available appropriation, increase reimbursements to dentists and 
171.30  dental clinics deemed by the commissioner to be critical access 
171.31  dental providers.  Reimbursement to a critical access dental 
171.32  provider may be increased by not more than 50 percent above the 
171.33  reimbursement rate that would otherwise be paid to the 
171.34  provider.  Payments to health plan companies shall be adjusted 
171.35  to reflect increased reimbursements to critical access dental 
171.36  providers as approved by the commissioner.  In determining which 
172.1   dentists and dental clinics shall be deemed critical access 
172.2   dental providers, the commissioner shall review: 
172.3      (1) the utilization rate in the service area in which the 
172.4   dentist or dental clinic operates for dental services to 
172.5   patients covered by medical assistance, general assistance 
172.6   medical care, or MinnesotaCare as their primary source of 
172.7   coverage; 
172.8      (2) the level of services provided by the dentist or dental 
172.9   clinic to patients covered by medical assistance, general 
172.10  assistance medical care, or MinnesotaCare as their primary 
172.11  source of coverage; and 
172.12     (3) whether the level of services provided by the dentist 
172.13  or dental clinic is critical to maintaining adequate levels of 
172.14  patient access within the service area. 
172.15  In the absence of a critical access dental provider in a service 
172.16  area, the commissioner may designate a dentist or dental clinic 
172.17  as a critical access dental provider if the dentist or dental 
172.18  clinic is willing to provide care to patients covered by medical 
172.19  assistance, general assistance medical care, or MinnesotaCare at 
172.20  a level which significantly increases access to dental care in 
172.21  the service area. 
172.22     (d) Effective July 1, 2001, the medical assistance rates 
172.23  for outpatient mental health services provided by an entity that 
172.24  operates: 
172.25     (1) a Medicare-certified comprehensive outpatient 
172.26  rehabilitation facility; and 
172.27     (2) a facility that was certified prior to January 1, 1993, 
172.28  with at least 33 percent of the clients receiving rehabilitation 
172.29  services in the most recent calendar year who are medical 
172.30  assistance recipients, will be increased by 38 percent, when 
172.31  those services are provided within the comprehensive outpatient 
172.32  rehabilitation facility and provided to residents of nursing 
172.33  facilities owned by the entity. 
172.34     (e) An entity that operates both a Medicare certified 
172.35  comprehensive outpatient rehabilitation facility and a facility 
172.36  which was certified prior to January 1, 1993, that is licensed 
173.1   under Minnesota Rules, parts 9570.2000 to 9570.3600, and for 
173.2   whom at least 33 percent of the clients receiving rehabilitation 
173.3   services in the most recent calendar year are medical assistance 
173.4   recipients, shall be reimbursed by the commissioner for 
173.5   rehabilitation services at rates that are 38 percent greater 
173.6   than the maximum reimbursement rate allowed under paragraph (a), 
173.7   clause (2), when those services are (1) provided within the 
173.8   comprehensive outpatient rehabilitation facility and (2) 
173.9   provided to residents of nursing facilities owned by the entity. 
173.10     Sec. 40.  Minnesota Statutes 2002, section 256B.761, is 
173.11  amended to read: 
173.12     256B.761 [REIMBURSEMENT FOR MENTAL HEALTH SERVICES.] 
173.13     (a) Effective for services rendered on or after July 1, 
173.14  2001, payment for medication management provided to psychiatric 
173.15  patients, outpatient mental health services, day treatment 
173.16  services, home-based mental health services, and family 
173.17  community support services shall be paid at the lower of (1) 
173.18  submitted charges, or (2) 75.6 percent of the 50th percentile of 
173.19  1999 charges. 
173.20     (b) Effective July 1, 2001, the medical assistance rates 
173.21  for outpatient mental health services provided by an entity that 
173.22  operates:  (1) a Medicare-certified comprehensive outpatient 
173.23  rehabilitation facility; and (2) a facility that was certified 
173.24  prior to January 1, 1993, with at least 33 percent of the 
173.25  clients receiving rehabilitation services in the most recent 
173.26  calendar year who are medical assistance recipients, will be 
173.27  increased by 38 percent, when those services are provided within 
173.28  the comprehensive outpatient rehabilitation facility and 
173.29  provided to residents of nursing facilities owned by the entity. 
173.30     Sec. 41.  Minnesota Statutes 2002, section 256D.03, 
173.31  subdivision 3a, is amended to read: 
173.32     Subd. 3a.  [CLAIMS; ASSIGNMENT OF BENEFITS.] Claims must be 
173.33  filed pursuant to section 256D.16.  General assistance medical 
173.34  care applicants and recipients must apply or agree to apply 
173.35  third party health and accident benefits to the costs of medical 
173.36  care.  They must cooperate with the state in establishing 
174.1   paternity and obtaining third party payments.  By signing an 
174.2   application for accepting general assistance, a person assigns 
174.3   to the department of human services all rights to medical 
174.4   support or payments for medical expenses from another person or 
174.5   entity on their own or their dependent's behalf and agrees to 
174.6   cooperate with the state in establishing paternity and obtaining 
174.7   third party payments.  The application shall contain a statement 
174.8   explaining the assignment.  Any rights or amounts assigned shall 
174.9   be applied against the cost of medical care paid for under this 
174.10  chapter.  An assignment is effective on the date general 
174.11  assistance medical care eligibility takes effect.  The 
174.12  assignment shall not affect benefits paid or provided under 
174.13  automobile accident coverage and private health care coverage 
174.14  until the person or organization providing the benefits has 
174.15  received notice of the assignment.  
174.16     Sec. 42.  Minnesota Statutes 2002, section 256I.02, is 
174.17  amended to read: 
174.18     256I.02 [PURPOSE.] 
174.19     The Group Residential Housing Act establishes a 
174.20  comprehensive system of rates and payments for persons who 
174.21  reside in a group residence the community and who meet the 
174.22  eligibility criteria under section 256I.04, subdivision 1. 
174.23     Sec. 43.  Minnesota Statutes 2002, section 256I.04, 
174.24  subdivision 3, is amended to read: 
174.25     Subd. 3.  [MORATORIUM ON THE DEVELOPMENT OF GROUP 
174.26  RESIDENTIAL HOUSING BEDS.] (a) County agencies shall not enter 
174.27  into agreements for new group residential housing beds with 
174.28  total rates in excess of the MSA equivalent rate except:  (1) 
174.29  for group residential housing establishments meeting the 
174.30  requirements of subdivision 2a, clause (2) with department 
174.31  approval; (2) for group residential housing establishments 
174.32  licensed under Minnesota Rules, parts 9525.0215 to 9525.0355, 
174.33  provided the facility is needed to meet the census reduction 
174.34  targets for persons with mental retardation or related 
174.35  conditions at regional treatment centers; (3) (2) to ensure 
174.36  compliance with the federal Omnibus Budget Reconciliation Act 
175.1   alternative disposition plan requirements for inappropriately 
175.2   placed persons with mental retardation or related conditions or 
175.3   mental illness; (4) (3) up to 80 beds in a single, specialized 
175.4   facility located in Hennepin county that will provide housing 
175.5   for chronic inebriates who are repetitive users of 
175.6   detoxification centers and are refused placement in emergency 
175.7   shelters because of their state of intoxication, and planning 
175.8   for the specialized facility must have been initiated before 
175.9   July 1, 1991, in anticipation of receiving a grant from the 
175.10  housing finance agency under section 462A.05, subdivision 20a, 
175.11  paragraph (b); (5) (4) notwithstanding the provisions of 
175.12  subdivision 2a, for up to 190 supportive housing units in Anoka, 
175.13  Dakota, Hennepin, or Ramsey county for homeless adults with a 
175.14  mental illness, a history of substance abuse, or human 
175.15  immunodeficiency virus or acquired immunodeficiency syndrome.  
175.16  For purposes of this section, "homeless adult" means a person 
175.17  who is living on the street or in a shelter or discharged from a 
175.18  regional treatment center, community hospital, or residential 
175.19  treatment program and has no appropriate housing available and 
175.20  lacks the resources and support necessary to access appropriate 
175.21  housing.  At least 70 percent of the supportive housing units 
175.22  must serve homeless adults with mental illness, substance abuse 
175.23  problems, or human immunodeficiency virus or acquired 
175.24  immunodeficiency syndrome who are about to be or, within the 
175.25  previous six months, has been discharged from a regional 
175.26  treatment center, or a state-contracted psychiatric bed in a 
175.27  community hospital, or a residential mental health or chemical 
175.28  dependency treatment program.  If a person meets the 
175.29  requirements of subdivision 1, paragraph (a), and receives a 
175.30  federal or state housing subsidy, the group residential housing 
175.31  rate for that person is limited to the supplementary rate under 
175.32  section 256I.05, subdivision 1a, and is determined by 
175.33  subtracting the amount of the person's countable income that 
175.34  exceeds the MSA equivalent rate from the group residential 
175.35  housing supplementary rate.  A resident in a demonstration 
175.36  project site who no longer participates in the demonstration 
176.1   program shall retain eligibility for a group residential housing 
176.2   payment in an amount determined under section 256I.06, 
176.3   subdivision 8, using the MSA equivalent rate.  Service funding 
176.4   under section 256I.05, subdivision 1a, will end June 30, 1997, 
176.5   if federal matching funds are available and the services can be 
176.6   provided through a managed care entity.  If federal matching 
176.7   funds are not available, then service funding will continue 
176.8   under section 256I.05, subdivision 1a; or (6) for group 
176.9   residential housing beds in settings meeting the requirements of 
176.10  subdivision 2a, clauses (1) and (3), which are used exclusively 
176.11  for recipients receiving home and community-based waiver 
176.12  services under sections 256B.0915, 256B.092, subdivision 5, 
176.13  256B.093, and 256B.49, and who resided in a nursing facility for 
176.14  the six months immediately prior to the month of entry into the 
176.15  group residential housing setting.  The group residential 
176.16  housing rate for these beds must be set so that the monthly 
176.17  group residential housing payment for an individual occupying 
176.18  the bed when combined with the nonfederal share of services 
176.19  delivered under the waiver for that person does not exceed the 
176.20  nonfederal share of the monthly medical assistance payment made 
176.21  for the person to the nursing facility in which the person 
176.22  resided prior to entry into the group residential housing 
176.23  establishment.  The rate may not exceed the MSA equivalent rate 
176.24  plus $426.37 for any case. 
176.25     (b) A county agency may enter into a group residential 
176.26  housing agreement for beds with rates in excess of the MSA 
176.27  equivalent rate in addition to those currently covered under a 
176.28  group residential housing agreement if the additional beds are 
176.29  only a replacement of beds with rates in excess of the MSA 
176.30  equivalent rate which have been made available due to closure of 
176.31  a setting, a change of licensure or certification which removes 
176.32  the beds from group residential housing payment, or as a result 
176.33  of the downsizing of a group residential housing setting.  The 
176.34  transfer of available beds from one county to another can only 
176.35  occur by the agreement of both counties. 
176.36     Sec. 44.  Minnesota Statutes 2002, section 256I.05, 
177.1   subdivision 1, is amended to read: 
177.2      Subdivision 1.  [MAXIMUM RATES.] (a) Monthly room and board 
177.3   rates negotiated by a county agency for a recipient living in 
177.4   group residential housing must not exceed the MSA equivalent 
177.5   rate specified under section 256I.03, subdivision 5,. with the 
177.6   exception that a county agency may negotiate a supplementary 
177.7   room and board rate that exceeds the MSA equivalent rate for 
177.8   recipients of waiver services under title XIX of the Social 
177.9   Security Act.  This exception is subject to the following 
177.10  conditions: 
177.11     (1) the setting is licensed by the commissioner of human 
177.12  services under Minnesota Rules, parts 9555.5050 to 9555.6265; 
177.13     (2) the setting is not the primary residence of the license 
177.14  holder and in which the license holder is not the primary 
177.15  caregiver; and 
177.16     (3) the average supplementary room and board rate in a 
177.17  county for a calendar year may not exceed the average 
177.18  supplementary room and board rate for that county in effect on 
177.19  January 1, 2000.  For calendar years beginning on or after 
177.20  January 1, 2002, within the limits of appropriations 
177.21  specifically for this purpose, the commissioner shall increase 
177.22  each county's supplemental room and board rate average on an 
177.23  annual basis by a factor consisting of the percentage change in 
177.24  the Consumer Price Index-All items, United States city average 
177.25  (CPI-U) for that calendar year compared to the preceding 
177.26  calendar year as forecasted by Data Resources, Inc., in the 
177.27  third quarter of the preceding calendar year.  If a county has 
177.28  not negotiated supplementary room and board rates for any 
177.29  facilities located in the county as of January 1, 2000, or has 
177.30  an average supplemental room and board rate under $100 per 
177.31  person as of January 1, 2000, it may submit a supplementary room 
177.32  and board rate request with budget information for a facility to 
177.33  the commissioner for approval. 
177.34  The county agency may at any time negotiate a higher or lower 
177.35  room and board rate than the average supplementary room and 
177.36  board rate. 
178.1      (b) Notwithstanding paragraph (a), clause (3), county 
178.2   agencies may negotiate a supplementary room and board rate that 
178.3   exceeds the MSA equivalent rate by up to $426.37 for up to five 
178.4   facilities, serving not more than 20 individuals in total, that 
178.5   were established to replace an intermediate care facility for 
178.6   persons with mental retardation and related conditions located 
178.7   in the city of Roseau that became uninhabitable due to flood 
178.8   damage in June 2002. 
178.9      [EFFECTIVE DATE.] This section is effective July 1, 2004, 
178.10  or upon receipt of federal approval of waiver amendment, 
178.11  whichever is later. 
178.12     Sec. 45.  Minnesota Statutes 2002, section 256I.05, 
178.13  subdivision 1a, is amended to read: 
178.14     Subd. 1a.  [SUPPLEMENTARY SERVICE RATES.] (a) Subject to 
178.15  the provisions of section 256I.04, subdivision 3, in addition to 
178.16  the room and board rate specified in subdivision 1, the county 
178.17  agency may negotiate a payment not to exceed $426.37 for other 
178.18  services necessary to provide room and board provided by the 
178.19  group residence if the residence is licensed by or registered by 
178.20  the department of health, or licensed by the department of human 
178.21  services to provide services in addition to room and board, and 
178.22  if the provider of services is not also concurrently receiving 
178.23  funding for services for a recipient under a home and 
178.24  community-based waiver under title XIX of the Social Security 
178.25  Act; or funding from the medical assistance program under 
178.26  section 256B.0627, subdivision 4, for personal care services for 
178.27  residents in the setting; or residing in a setting which 
178.28  receives funding under Minnesota Rules, parts 9535.2000 to 
178.29  9535.3000.  If funding is available for other necessary services 
178.30  through a home and community-based waiver, or personal care 
178.31  services under section 256B.0627, subdivision 4, then the GRH 
178.32  rate is limited to the rate set in subdivision 1.  Unless 
178.33  otherwise provided in law, in no case may the supplementary 
178.34  service rate plus the supplementary room and board rate exceed 
178.35  $426.37.  The registration and licensure requirement does not 
178.36  apply to establishments which are exempt from state licensure 
179.1   because they are located on Indian reservations and for which 
179.2   the tribe has prescribed health and safety requirements.  
179.3   Service payments under this section may be prohibited under 
179.4   rules to prevent the supplanting of federal funds with state 
179.5   funds.  The commissioner shall pursue the feasibility of 
179.6   obtaining the approval of the Secretary of Health and Human 
179.7   Services to provide home and community-based waiver services 
179.8   under title XIX of the Social Security Act for residents who are 
179.9   not eligible for an existing home and community-based waiver due 
179.10  to a primary diagnosis of mental illness or chemical dependency 
179.11  and shall apply for a waiver if it is determined to be 
179.12  cost-effective.  
179.13     (b) The commissioner is authorized to make cost-neutral 
179.14  transfers from the GRH fund for beds under this section to other 
179.15  funding programs administered by the department after 
179.16  consultation with the county or counties in which the affected 
179.17  beds are located.  The commissioner may also make cost-neutral 
179.18  transfers from the GRH fund to county human service agencies for 
179.19  beds permanently removed from the GRH census under a plan 
179.20  submitted by the county agency and approved by the 
179.21  commissioner.  The commissioner shall report the amount of any 
179.22  transfers under this provision annually to the legislature. 
179.23     (c) The provisions of paragraph (b) do not apply to a 
179.24  facility that has its reimbursement rate established under 
179.25  section 256B.431, subdivision 4, paragraph (c). 
179.26     Sec. 46.  Minnesota Statutes 2002, section 256I.05, 
179.27  subdivision 7c, is amended to read: 
179.28     Subd. 7c.  [DEMONSTRATION PROJECT.] The commissioner is 
179.29  authorized to pursue a demonstration project under federal food 
179.30  stamp regulation for the purpose of gaining federal 
179.31  reimbursement of food and nutritional costs currently paid by 
179.32  the state group residential housing program.  The commissioner 
179.33  shall seek approval no later than January 1, 2004.  Any 
179.34  reimbursement received is nondedicated revenue to the general 
179.35  fund. 
179.36     Sec. 47.  [514.991] [ALTERNATIVE CARE LIENS; DEFINITIONS.] 
180.1      Subdivision 1.  [APPLICABILITY.] The definitions in this 
180.2   section apply to sections 514.991 to 514.995. 
180.3      Subd. 2.  [ALTERNATIVE CARE AGENCY, AGENCY, OR 
180.4   DEPARTMENT.] "Alternative care agency," "agency," or "department"
180.5   means the department of human services when it pays for or 
180.6   provides alternative care benefits for a nonmedical assistance 
180.7   recipient directly or through a county social services agency 
180.8   under chapter 256B according to section 256B.0913. 
180.9      Subd. 3.  [ALTERNATIVE CARE BENEFIT OR 
180.10  BENEFITS.] "Alternative care benefit" or "benefits" means a 
180.11  benefit provided to a nonmedical assistance recipient under 
180.12  chapter 256B according to section 256B.0913. 
180.13     Subd. 4.  [ALTERNATIVE CARE RECIPIENT OR 
180.14  RECIPIENT.] "Alternative care recipient" or "recipient" means a 
180.15  person who receives alternative care grant benefits. 
180.16     Subd. 5.  [ALTERNATIVE CARE LIEN OR LIEN.] "Alternative 
180.17  care lien" or "lien" means a lien filed under sections 514.992 
180.18  to 514.995. 
180.19     [EFFECTIVE DATE.] This section is effective July 1, 2003, 
180.20  for services for persons first enrolling in the alternative care 
180.21  program on or after that date and on the first day of the first 
180.22  eligibility renewal period for persons enrolled in the 
180.23  alternative care program prior to July 1, 2003. 
180.24     Sec. 48.  [514.992] [ALTERNATIVE CARE LIEN.] 
180.25     Subdivision 1.  [PROPERTY SUBJECT TO LIEN; LIEN AMOUNT.] (a)
180.26  Subject to sections 514.991 to 514.995, payments made by an 
180.27  alternative care agency to provide benefits to a recipient or to 
180.28  the recipient's spouse who owns property in this state 
180.29  constitute a lien in favor of the agency on all real property 
180.30  the recipient owns at and after the time the benefits are first 
180.31  paid. 
180.32     (b) The amount of the lien is limited to benefits paid for 
180.33  services provided to recipients over 55 years of age and 
180.34  provided on and after July 1, 2003. 
180.35     Subd. 2.  [ATTACHMENT.] (a) A lien attaches to and becomes 
180.36  enforceable against specific real property as of the date when 
181.1   all of the following conditions are met: 
181.2      (1) the agency has paid benefits for a recipient; 
181.3      (2) the recipient has been given notice and an opportunity 
181.4   for a hearing under paragraph (b); 
181.5      (3) the lien has been filed as provided for in section 
181.6   514.993 or memorialized on the certificate of title for the 
181.7   property it describes; and 
181.8      (4) all restrictions against enforcement have ceased to 
181.9   apply. 
181.10     (b) An agency may not file a lien until it has sent the 
181.11  recipient, their authorized representative, or their legal 
181.12  representative written notice of its lien rights by certified 
181.13  mail, return receipt requested, or registered mail and there has 
181.14  been an opportunity for a hearing under section 256.045.  No 
181.15  person other than the recipient shall have a right to a hearing 
181.16  under section 256.045 prior to the time the lien is filed.  The 
181.17  hearing shall be limited to whether the agency has met all of 
181.18  the prerequisites for filing the lien and whether any of the 
181.19  exceptions in this section apply. 
181.20     (c) An agency may not file a lien against the recipient's 
181.21  homestead when any of the following exceptions apply: 
181.22     (1) while the recipient's spouse is also physically present 
181.23  and lawfully and continuously residing in the homestead; 
181.24     (2) a child of the recipient who is under age 21 or who is 
181.25  blind or totally and permanently disabled according to 
181.26  supplemental security income criteria is also physically present 
181.27  on the property and lawfully and continuously residing on the 
181.28  property from and after the date the recipient first receives 
181.29  benefits; 
181.30     (3) a child of the recipient who has also lawfully and 
181.31  continuously resided on the property for a period beginning at 
181.32  least two years before the first day of the month in which the 
181.33  recipient began receiving alternative care, and who provided 
181.34  uncompensated care to the recipient which enabled the recipient 
181.35  to live without alternative care services for the two-year 
181.36  period; 
182.1      (4) a sibling of the recipient who has an ownership 
182.2   interest in the property of record in the office of the county 
182.3   recorder or registrar of titles for the county in which the real 
182.4   property is located and who has also continuously occupied the 
182.5   homestead for a period of at least one year immediately prior to 
182.6   the first day of the first month in which the recipient received 
182.7   benefits and continuously since that date. 
182.8      (d) A lien only applies to the real property it describes. 
182.9      Subd. 3.  [CONTINUATION OF LIEN.] A lien remains effective 
182.10  from the time it is filed until it is paid, satisfied, 
182.11  discharged, or becomes unenforceable under sections 514.991 to 
182.12  514.995. 
182.13     Subd. 4.  [PRIORITY OF LIEN.] (a) A lien which attaches to 
182.14  the real property it describes is subject to the rights of 
182.15  anyone else whose interest in the real property is perfected of 
182.16  record before the lien has been recorded or filed under section 
182.17  514.993, including: 
182.18     (1) an owner, other than the recipient or the recipient's 
182.19  spouse; 
182.20     (2) a good faith purchaser for value without notice of the 
182.21  lien; 
182.22     (3) a holder of a mortgage or security interest; or 
182.23     (4) a judgment lien creditor whose judgment lien has 
182.24  attached to the recipient's interest in the real property. 
182.25     (b) The rights of the other person have the same 
182.26  protections against an alternative care lien as are afforded 
182.27  against a judgment lien that arises out of an unsecured 
182.28  obligation and arises as of the time of the filing of an 
182.29  alternative care grant lien under section 514.993.  The lien 
182.30  shall be inferior to a lien for property taxes and special 
182.31  assessments and shall be superior to all other matters first 
182.32  appearing of record after the time and date the lien is filed or 
182.33  recorded. 
182.34     Subd. 5.  [SETTLEMENT, SUBORDINATION, AND RELEASE.] (a) An 
182.35  agency may, with absolute discretion, settle or subordinate the 
182.36  lien to any other lien or encumbrance of record upon the terms 
183.1   and conditions it deems appropriate. 
183.2      (b) The agency filing the lien shall release and discharge 
183.3   the lien: 
183.4      (1) if it has been paid, discharged, or satisfied; 
183.5      (2) if it has received reimbursement for the amounts 
183.6   secured by the lien, has entered into a binding and legally 
183.7   enforceable agreement under which it is reimbursed for the 
183.8   amount of the lien, or receives other collateral sufficient to 
183.9   secure payment of the lien; 
183.10     (3) against some, but not all, of the property it describes 
183.11  upon the terms, conditions, and circumstances the agency deems 
183.12  appropriate; 
183.13     (4) to the extent it cannot be lawfully enforced against 
183.14  the property it describes because of an error, omission, or 
183.15  other material defect in the legal description contained in the 
183.16  lien or a necessary prerequisite to enforcement of the lien; and 
183.17     (5) if, in its discretion, it determines the filing or 
183.18  enforcement of the lien is contrary to the public interest. 
183.19     (c) The agency executing the lien shall execute and file 
183.20  the release as provided for in section 514.993, subdivision 2. 
183.21     Subd. 6.  [LENGTH OF LIEN.] (a) A lien shall be a lien on 
183.22  the real property it describes for a period of ten years from 
183.23  the date it attaches according to subdivision 2, paragraph (a), 
183.24  except as otherwise provided for in sections 514.992 to 
183.25  514.995.  The agency filing the lien may renew the lien for one 
183.26  additional ten-year period from the date it would otherwise 
183.27  expire by recording or filing a certificate of renewal before 
183.28  the lien expires.  The certificate of renewal shall be recorded 
183.29  or filed in the office of the county recorder or registrar of 
183.30  titles for the county in which the lien is recorded or filed.  
183.31  The certificate must refer to the recording or filing data for 
183.32  the lien it renews.  The certificate need not be attested, 
183.33  certified, or acknowledged as a condition for recording or 
183.34  filing.  The recorder or registrar of titles shall record, file, 
183.35  index, and return the certificate of renewal in the same manner 
183.36  provided for liens in section 514.993, subdivision 2. 
184.1      (b) An alternative care lien is not enforceable against the 
184.2   real property of an estate to the extent there is a 
184.3   determination by a court of competent jurisdiction, or by an 
184.4   officer of the court designated for that purpose, that there are 
184.5   insufficient assets in the estate to satisfy the lien in whole 
184.6   or in part because of the homestead exemption under section 
184.7   256B.15, subdivision 4, the rights of a surviving spouse or a 
184.8   minor child under section 524.2-403, paragraphs (a) and (b), or 
184.9   claims with a priority under section 524.3-805, paragraph (a), 
184.10  clauses (1) to (4).  For purposes of this section, the rights of 
184.11  the decedent's adult children to exempt property under section 
184.12  524.2-403, paragraph (b), shall not be considered costs of 
184.13  administration under section 524.3-805, paragraph (a), clause 
184.14  (1). 
184.15     [EFFECTIVE DATE.] This section is effective July 1, 2003, 
184.16  for services for persons first enrolling in the alternative care 
184.17  program on or after that date and on the first day of the first 
184.18  eligibility renewal period for persons enrolled in the 
184.19  alternative care program prior to July 1, 2003. 
184.20     Sec. 49.  [514.993] [LIEN; CONTENTS AND FILING.] 
184.21     Subdivision 1.  [CONTENTS.] A lien shall be dated and must 
184.22  contain: 
184.23     (1) the recipient's full name, last known address, and 
184.24  social security number; 
184.25     (2) a statement that benefits have been paid to or for the 
184.26  recipient's benefit; 
184.27     (3) a statement that all of the recipient's interests in 
184.28  the real property described in the lien may be subject to or 
184.29  affected by the agency's right to reimbursement for benefits; 
184.30     (4) a legal description of the real property subject to the 
184.31  lien and whether it is registered or abstract property; and 
184.32     (5) such other contents, if any, as the agency deems 
184.33  appropriate. 
184.34     Subd. 2.  [FILING.] Any lien, release, or other document 
184.35  required or permitted to be filed under sections 514.991 to 
184.36  514.995 must be recorded or filed in the office of the county 
185.1   recorder or registrar of titles, as appropriate, in the county 
185.2   where the real property is located.  Notwithstanding section 
185.3   386.77, the agency shall pay the applicable filing fee for any 
185.4   documents filed under sections 514.991 to 514.995.  An 
185.5   attestation, certification, or acknowledgment is not required as 
185.6   a condition of filing.  If the property described in the lien is 
185.7   registered property, the registrar of titles shall record it on 
185.8   the certificate of title for each parcel of property described 
185.9   in the lien.  If the property described in the lien is abstract 
185.10  property, the recorder shall file the lien in the county's 
185.11  grantor-grantee indexes and any tract indexes the county 
185.12  maintains for each parcel of property described in the lien.  
185.13  The recorder or registrar shall return the recorded or filed 
185.14  lien to the agency at no cost.  If the agency provides a 
185.15  duplicate copy of the lien, the recorder or registrar of titles 
185.16  shall show the recording or filing data on the copy and return 
185.17  it to the agency at no cost.  The agency is responsible for 
185.18  filing any lien, release, or other documents under sections 
185.19  514.991 to 514.995. 
185.20     [EFFECTIVE DATE.] This section is effective July 1, 2003, 
185.21  for services for persons first enrolling in the alternative care 
185.22  program on or after that date and on the first day of the first 
185.23  eligibility renewal period for persons enrolled in the 
185.24  alternative care program prior to July 1, 2003. 
185.25     Sec. 50.  [514.994] [ENFORCEMENT; OTHER REMEDIES.] 
185.26     Subdivision 1.  [FORECLOSURE OR ENFORCEMENT OF LIEN.] The 
185.27  agency may enforce or foreclose a lien filed under sections 
185.28  514.991 to 514.995 in the manner provided for by law for 
185.29  enforcement of judgment liens against real estate or by a 
185.30  foreclosure by action under chapter 581.  The lien shall remain 
185.31  enforceable as provided for in sections 514.991 to 514.995 
185.32  notwithstanding any laws limiting the enforceability of 
185.33  judgments. 
185.34     Subd. 2.  [HOMESTEAD EXEMPTION.] The lien may not be 
185.35  enforced against the homestead property of the recipient or the 
185.36  spouse while they physically occupy it as their lawful residence.
186.1      Subd. 3.  [AGENCY CLAIM OR REMEDY.] Sections 514.992 to 
186.2   514.995 do not limit the agency's right to file a claim against 
186.3   the recipient's estate or the estate of the recipient's spouse, 
186.4   do not limit any other claims for reimbursement the agency may 
186.5   have, and do not limit the availability of any other remedy to 
186.6   the agency. 
186.7      [EFFECTIVE DATE.] This section is effective July 1, 2003, 
186.8   for services for persons first enrolling in the alternative care 
186.9   program on or after that date and on the first day of the first 
186.10  eligibility renewal period for persons enrolled in the 
186.11  alternative care program prior to July 1, 2003. 
186.12     Sec. 51.  [514.995] [AMOUNTS RECEIVED TO SATISFY LIEN.] 
186.13     Amounts the agency receives to satisfy the lien must be 
186.14  deposited in the state treasury and credited to the fund from 
186.15  which the benefits were paid. 
186.16     [EFFECTIVE DATE.] This section is effective July 1, 2003, 
186.17  for services for persons first enrolling in the alternative care 
186.18  program on or after that date and on the first day of the first 
186.19  eligibility renewal period for persons enrolled in the 
186.20  alternative care program prior to July 1, 2003. 
186.21     Sec. 52.  Minnesota Statutes 2002, section 524.3-805, is 
186.22  amended to read: 
186.23     524.3-805 [CLASSIFICATION OF CLAIMS.] 
186.24     (a) If the applicable assets of the estate are insufficient 
186.25  to pay all claims in full, the personal representative shall 
186.26  make payment in the following order: 
186.27     (1) costs and expenses of administration; 
186.28     (2) reasonable funeral expenses; 
186.29     (3) debts and taxes with preference under federal law; 
186.30     (4) reasonable and necessary medical, hospital, or nursing 
186.31  home expenses of the last illness of the decedent, including 
186.32  compensation of persons attending the decedent, a claim filed 
186.33  under section 256B.15 for recovery of expenditures for 
186.34  alternative care for nonmedical assistance recipients under 
186.35  section 256B.0913, and including a claim filed pursuant to 
186.36  section 256B.15; 
187.1      (5) reasonable and necessary medical, hospital, and nursing 
187.2   home expenses for the care of the decedent during the year 
187.3   immediately preceding death; 
187.4      (6) debts with preference under other laws of this state, 
187.5   and state taxes; 
187.6      (7) all other claims. 
187.7      (b) No preference shall be given in the payment of any 
187.8   claim over any other claim of the same class, and a claim due 
187.9   and payable shall not be entitled to a preference over claims 
187.10  not due, except that if claims for expenses of the last illness 
187.11  involve only claims filed under section 256B.15 for recovery of 
187.12  expenditures for alternative care for nonmedical assistance 
187.13  recipients under section 256B.0913, section 246.53 for costs of 
187.14  state hospital care and claims filed under section 256B.15, 
187.15  claims filed to recover expenditures for alternative care for 
187.16  nonmedical assistance recipients under section 256B.0913 shall 
187.17  have preference over claims filed under both sections 246.53 and 
187.18  other claims filed under section 256B.15, and claims filed under 
187.19  section 246.53 have preference over claims filed under section 
187.20  256B.15 for recovery of amounts other than those for 
187.21  expenditures for alternative care for nonmedical assistance 
187.22  recipients under section 256B.0913. 
187.23     [EFFECTIVE DATE.] This section is effective July 1, 2003, 
187.24  for decedents dying on or after that date. 
187.25     Sec. 53.  [IMPOSITION OF FEDERAL CERTIFICATION REMEDIES.] 
187.26     The commissioner of health shall seek changes in the 
187.27  federal policy that mandates the imposition of federal sanctions 
187.28  without providing an opportunity for a nursing facility to 
187.29  correct deficiencies, solely as the result of previous 
187.30  deficiencies issued to the nursing facility.  
187.31     [EFFECTIVE DATE.] This section is effective July 1, 2003. 
187.32     Sec. 54.  [REPORT ON LONG-TERM CARE.] 
187.33     The report on long-term care services required under 
187.34  Minnesota Statutes, section 144A.351, that is presented to the 
187.35  legislature by January 15, 2004, must also address the 
187.36  feasibility of offering government or private sector loans or 
188.1   lines of credit to individuals age 65 and over, for the purchase 
188.2   of long-term care services. 
188.3      Sec. 55.  [REPORTS; POTENTIAL SAVINGS TO STATE FROM CERTAIN 
188.4   LONG-TERM CARE INSURANCE PURCHASE INCENTIVES.] 
188.5      The commissioner of human services shall report to the 
188.6   legislature by January 15, 2005, on long-term care financing 
188.7   reform.  The report must include a new mix of public and private 
188.8   approaches to the financing of long-term care.  The report shall 
188.9   examine strategies and financing options that will increase the 
188.10  availability and use of nongovernment resources to pay for 
188.11  long-term care, including new ways of using limited government 
188.12  funds for long-term care.  The report shall examine the 
188.13  feasibility of: 
188.14     (1) initiating a long-term care insurance partnership 
188.15  program, similar to those adopted in other states, under which 
188.16  the state would encourage the purchase of private long-term care 
188.17  insurance by permitting the insured to retain assets in excess 
188.18  of those otherwise permitted for medical assistance eligibility, 
188.19  if the insured later exhausts the private long-term care 
188.20  insurance benefits.  The report must include the feasibility of 
188.21  obtaining any necessary federal waiver; 
188.22     (2) using state medical assistance funds to subsidize the 
188.23  purchase of private long-term care insurance by individuals who 
188.24  would be unlikely to purchase it without a subsidy, in order to 
188.25  generate long-term medical assistance savings; and 
188.26     (3) adding a nursing facility benefit to Medicare-related 
188.27  coverage, as defined in Minnesota Statutes, section 62Q.01, 
188.28  subdivision 6.  The report must quantify the costs or savings 
188.29  resulting from adding a nursing facility benefit. 
188.30     The report must comply with Minnesota Statutes, sections 
188.31  3.195 and 3.197. 
188.32     [EFFECTIVE DATE.] This section is effective July 1, 2003. 
188.33     Sec. 56.  [REVISOR'S INSTRUCTION.] 
188.34     For sections in Minnesota Statutes and Minnesota Rules 
188.35  affected by the repealed sections in this article, the revisor 
188.36  shall delete internal cross-references where appropriate and 
189.1   make changes necessary to correct the punctuation, grammar, or 
189.2   structure of the remaining text and preserve its meaning. 
189.3      Sec. 57.  [REPEALER.] 
189.4      (a) Minnesota Statutes 2002, sections 256.973; 256.9772; 
189.5   and 256B.437, subdivision 2, are repealed effective July 1, 2003.
189.6      (b) Minnesota Statutes 2002, sections 62J.66; 62J.68; 
189.7   144A.071, subdivision 5; and 144A.35, are repealed. 
189.8      (c) Laws 1998, chapter 407, article 4, section 63, is 
189.9   repealed. 
189.10     (d) Minnesota Rules, parts 9505.3045; 9505.3050; 9505.3055; 
189.11  9505.3060; 9505.3068; 9505.3070; 9505.3075; 9505.3080; 
189.12  9505.3090; 9505.3095; 9505.3100; 9505.3105; 9505.3107; 
189.13  9505.3110; 9505.3115; 9505.3120; 9505.3125; 9505.3130; 
189.14  9505.3138; 9505.3139; 9505.3140; 9505.3680; 9505.3690; and 
189.15  9505.3700, are repealed effective July 1, 2003. 
189.16     (e) Laws 2003, chapter 55, sections 1 and 4, are repealed 
189.17  effective the day following final enactment. 
189.18                             ARTICLE 3 
189.19           CONTINUING CARE FOR PERSONS WITH DISABILITIES 
189.20     Section 1.  Minnesota Statutes 2002, section 174.30, 
189.21  subdivision 1, is amended to read: 
189.22     Subdivision 1.  [APPLICABILITY.] (a) The operating 
189.23  standards for special transportation service adopted under this 
189.24  section do not apply to special transportation provided by:  
189.25     (1) a common carrier operating on fixed routes and 
189.26  schedules; 
189.27     (2) a volunteer driver using a private automobile; 
189.28     (3) a school bus as defined in section 169.01, subdivision 
189.29  6; or 
189.30     (4) an emergency ambulance regulated under chapter 144. 
189.31     (b) The operating standards adopted under this section only 
189.32  apply to providers of special transportation service who receive 
189.33  grants or other financial assistance from either the state or 
189.34  the federal government, or both, to provide or assist in 
189.35  providing that service; except that the operating standards 
189.36  adopted under this section do not apply to any nursing home 
190.1   licensed under section 144A.02, to any board and care facility 
190.2   licensed under section 144.50, or to any day training and 
190.3   habilitation services, day care, or group home facility licensed 
190.4   under sections 245A.01 to 245A.19 unless the facility or program 
190.5   provides transportation to nonresidents on a regular basis and 
190.6   the facility receives reimbursement, other than per diem 
190.7   payments, for that service under rules promulgated by the 
190.8   commissioner of human services.  
190.9      (c) Notwithstanding paragraph (b), the operating standards 
190.10  adopted under this section do not apply to any vendor of 
190.11  services licensed under chapter 245B that provides 
190.12  transportation services to consumers or residents of other 
190.13  vendors licensed under chapter 245B and transports 15 or fewer 
190.14  persons, including consumers or residents and the driver. 
190.15     Sec. 2.  Minnesota Statutes 2002, section 245B.06, 
190.16  subdivision 8, is amended to read: 
190.17     Subd. 8.  [LEAVING THE RESIDENCE.] As specified in each 
190.18  consumer's individual service plan, Each consumer requiring a 
190.19  24-hour plan of care must leave the residence to participate in 
190.20  regular education, employment, or community activities shall 
190.21  receive services during the day outside the residence unless 
190.22  otherwise specified in the individual's service plan.  License 
190.23  holders, providing services to consumers living in a licensed 
190.24  site, shall ensure that they are prepared to care for consumers 
190.25  whenever they are at the residence during the day because of 
190.26  illness, work schedules, or other reasons. 
190.27     Sec. 3.  Minnesota Statutes 2002, section 245B.07, 
190.28  subdivision 11, is amended to read: 
190.29     Subd. 11.  [TRAVEL TIME TO AND FROM A DAY TRAINING AND 
190.30  HABILITATION SITE.] Except in unusual circumstances, the license 
190.31  holder must not transport a consumer receiving services for 
190.32  longer than one hour 90 minutes per one-way trip.  Nothing in 
190.33  this subdivision relieves the provider of the obligation to 
190.34  provide the number of program hours as identified in the 
190.35  individualized service plan. 
190.36     Sec. 4.  Minnesota Statutes 2002, section 246.54, is 
191.1   amended to read: 
191.2      246.54 [LIABILITY OF COUNTY; REIMBURSEMENT.] 
191.3      Subdivision 1.  [COUNTY PORTION FOR COST OF CARE.] Except 
191.4   for chemical dependency services provided under sections 254B.01 
191.5   to 254B.09, the client's county shall pay to the state of 
191.6   Minnesota a portion of the cost of care provided in a regional 
191.7   treatment center or a state nursing facility to a client legally 
191.8   settled in that county.  A county's payment shall be made from 
191.9   the county's own sources of revenue and payments shall be paid 
191.10  as follows:  payments to the state from the county shall 
191.11  equal ten 20 percent of the cost of care, as determined by the 
191.12  commissioner, for each day, or the portion thereof, that the 
191.13  client spends at a regional treatment center or a state nursing 
191.14  facility.  If payments received by the state under sections 
191.15  246.50 to 246.53 exceed 90 80 percent of the cost of care, the 
191.16  county shall be responsible for paying the state only the 
191.17  remaining amount.  The county shall not be entitled to 
191.18  reimbursement from the client, the client's estate, or from the 
191.19  client's relatives, except as provided in section 246.53.  No 
191.20  such payments shall be made for any client who was last 
191.21  committed prior to July 1, 1947. 
191.22     Subd. 2.  [EXCEPTIONS.] Subdivision 1 does not apply to 
191.23  services provided at the Minnesota security hospital, the 
191.24  Minnesota sex offender program, or the Minnesota extended 
191.25  treatment options program.  For services at these facilities, a 
191.26  county's payment shall be made from the county's own sources of 
191.27  revenue and payments shall be paid as follows:  payments to the 
191.28  state from the county shall equal ten percent of the cost of 
191.29  care, as determined by the commissioner, for each day, or the 
191.30  portion thereof, that the client spends at the facility.  If 
191.31  payments received by the state under sections 246.50 to 246.53 
191.32  exceed 90 percent of the cost of care, the county shall be 
191.33  responsible for paying the state only the remaining amount.  The 
191.34  county shall not be entitled to reimbursement from the client, 
191.35  the client's estate, or from the client's relatives, except as 
191.36  provided in section 246.53. 
192.1      [EFFECTIVE DATE.] This section is effective July 1, 2004. 
192.2      Sec. 5.  Minnesota Statutes 2002, section 252.32, 
192.3   subdivision 1, is amended to read: 
192.4      Subdivision 1.  [PROGRAM ESTABLISHED.] In accordance with 
192.5   state policy established in section 256F.01 that all children 
192.6   are entitled to live in families that offer safe, nurturing, 
192.7   permanent relationships, and that public services be directed 
192.8   toward preventing the unnecessary separation of children from 
192.9   their families, and because many families who have children with 
192.10  mental retardation or related conditions disabilities have 
192.11  special needs and expenses that other families do not have, the 
192.12  commissioner of human services shall establish a program to 
192.13  assist families who have dependents dependent children with 
192.14  mental retardation or related conditions disabilities living in 
192.15  their home.  The program shall make support grants available to 
192.16  the families. 
192.17     Sec. 6.  Minnesota Statutes 2002, section 252.32, 
192.18  subdivision 1a, is amended to read: 
192.19     Subd. 1a.  [SUPPORT GRANTS.] (a) Provision of support 
192.20  grants must be limited to families who require support and whose 
192.21  dependents are under the age of 22 and who have mental 
192.22  retardation or who have a related condition 21 and who have been 
192.23  determined by a screening team established certified disabled 
192.24  under section 256B.092 to be at risk of 
192.25  institutionalization 256B.055, subdivision 12, paragraphs (a), 
192.26  (b), (c), (d), and (e).  Families who are receiving home and 
192.27  community-based waivered services for persons with mental 
192.28  retardation or related conditions are not eligible for support 
192.29  grants. 
192.30     Families receiving grants who will be receiving home and 
192.31  community-based waiver services for persons with mental 
192.32  retardation or a related condition for their family member 
192.33  within the grant year, and who have ongoing payments for 
192.34  environmental or vehicle modifications which have been approved 
192.35  by the county as a grant expense and would have qualified for 
192.36  payment under this waiver may receive a onetime grant payment 
193.1   from the commissioner to reduce or eliminate the principal of 
193.2   the remaining debt for the modifications, not to exceed the 
193.3   maximum amount allowable for the remaining years of eligibility 
193.4   for a family support grant.  The commissioner is authorized to 
193.5   use up to $20,000 annually from the grant appropriation for this 
193.6   purpose.  Any amount unexpended at the end of the grant year 
193.7   shall be allocated by the commissioner in accordance with 
193.8   subdivision 3a, paragraph (b), clause (2).  Families whose 
193.9   annual adjusted gross income is $60,000 or more are not eligible 
193.10  for support grants except in cases where extreme hardship is 
193.11  demonstrated.  Beginning in state fiscal year 1994, the 
193.12  commissioner shall adjust the income ceiling annually to reflect 
193.13  the projected change in the average value in the United States 
193.14  Department of Labor Bureau of Labor Statistics consumer price 
193.15  index (all urban) for that year. 
193.16     (b) Support grants may be made available as monthly subsidy 
193.17  grants and lump sum grants. 
193.18     (c) Support grants may be issued in the form of cash, 
193.19  voucher, and direct county payment to a vendor.  
193.20     (d) Applications for the support grant shall be made by the 
193.21  legal guardian to the county social service agency.  The 
193.22  application shall specify the needs of the families, the form of 
193.23  the grant requested by the families, and that the families have 
193.24  agreed to use the support grant for items and services within 
193.25  the designated reimbursable expense categories and 
193.26  recommendations of the county to be reimbursed.  
193.27     (e) Families who were receiving subsidies on the date of 
193.28  implementation of the $60,000 income limit in paragraph (a) 
193.29  continue to be eligible for a family support grant until 
193.30  December 31, 1991, if all other eligibility criteria are met.  
193.31  After December 31, 1991, these families are eligible for a grant 
193.32  in the amount of one-half the grant they would otherwise 
193.33  receive, for as long as they remain eligible under other 
193.34  eligibility criteria.  
193.35     Sec. 7.  Minnesota Statutes 2002, section 252.32, 
193.36  subdivision 3, is amended to read: 
194.1      Subd. 3.  [AMOUNT OF SUPPORT GRANT; USE.] Support grant 
194.2   amounts shall be determined by the county social service 
194.3   agency.  Each service Services and item items purchased with a 
194.4   support grant must: 
194.5      (1) be over and above the normal costs of caring for the 
194.6   dependent if the dependent did not have a disability; 
194.7      (2) be directly attributable to the dependent's disabling 
194.8   condition; and 
194.9      (3) enable the family to delay or prevent the out-of-home 
194.10  placement of the dependent. 
194.11     The design and delivery of services and items purchased 
194.12  under this section must suit the dependent's chronological age 
194.13  and be provided in the least restrictive environment possible, 
194.14  consistent with the needs identified in the individual service 
194.15  plan. 
194.16     Items and services purchased with support grants must be 
194.17  those for which there are no other public or private funds 
194.18  available to the family.  Fees assessed to parents for health or 
194.19  human services that are funded by federal, state, or county 
194.20  dollars are not reimbursable through this program. 
194.21     In approving or denying applications, the county shall 
194.22  consider the following factors:  
194.23     (1) the extent and areas of the functional limitations of 
194.24  the disabled child; 
194.25     (2) the degree of need in the home environment for 
194.26  additional support; and 
194.27     (3) the potential effectiveness of the grant to maintain 
194.28  and support the person in the family environment. 
194.29     The maximum monthly grant amount shall be $250 per eligible 
194.30  dependent, or $3,000 per eligible dependent per state fiscal 
194.31  year, within the limits of available funds.  The county social 
194.32  service agency may consider the dependent's supplemental 
194.33  security income in determining the amount of the support grant.  
194.34  The county social service agency may exceed $3,000 per state 
194.35  fiscal year per eligible dependent for emergency circumstances 
194.36  in cases where exceptional resources of the family are required 
195.1   to meet the health, welfare-safety needs of the child.  
195.2      County social service agencies shall continue to provide 
195.3   funds to families receiving state grants on June 30, 1997, if 
195.4   eligibility criteria continue to be met.  Any adjustments to 
195.5   their monthly grant amount must be based on the needs of the 
195.6   family and funding availability. 
195.7      Sec. 8.  Minnesota Statutes 2002, section 252.32, 
195.8   subdivision 3c, is amended to read: 
195.9      Subd. 3c.  [COUNTY BOARD RESPONSIBILITIES.] County boards 
195.10  receiving funds under this section shall:  
195.11     (1) determine the needs of families for services in 
195.12  accordance with section 256B.092 or 256E.08 and any rules 
195.13  adopted under those sections; submit a plan to the department 
195.14  for the management of the family support grant program.  The 
195.15  plan must include the projected number of families the county 
195.16  will serve and policies and procedures for:  
195.17     (i) identifying potential families for the program; 
195.18     (ii) grant distribution; 
195.19     (iii) waiting list procedures; and 
195.20     (iv) prioritization of families to receive grants; 
195.21     (2) determine the eligibility of all persons proposed for 
195.22  program participation; 
195.23     (3) approve a plan for items and services to be reimbursed 
195.24  and inform families of the county's approval decision; 
195.25     (4) issue support grants directly to, or on behalf of, 
195.26  eligible families; 
195.27     (5) inform recipients of their right to appeal under 
195.28  subdivision 3e; 
195.29     (6) submit quarterly financial reports under subdivision 3b 
195.30  and indicate on the screening documents the annual grant level 
195.31  for each family, the families denied grants, and the families 
195.32  eligible but waiting for funding; and 
195.33     (7) coordinate services with other programs offered by the 
195.34  county. 
195.35     Sec. 9.  Minnesota Statutes 2002, section 252.41, 
195.36  subdivision 3, is amended to read: 
196.1      Subd. 3.  [DAY TRAINING AND HABILITATION SERVICES FOR 
196.2   ADULTS WITH MENTAL RETARDATION, RELATED CONDITIONS.] "Day 
196.3   training and habilitation services for adults with mental 
196.4   retardation and related conditions" means services that: 
196.5      (1) include supervision, training, assistance, and 
196.6   supported employment, work-related activities, or other 
196.7   community-integrated activities designed and implemented in 
196.8   accordance with the individual service and individual 
196.9   habilitation plans required under Minnesota Rules, parts 
196.10  9525.0015 to 9525.0165, to help an adult reach and maintain the 
196.11  highest possible level of independence, productivity, and 
196.12  integration into the community; and 
196.13     (2) are provided under contract with the county where the 
196.14  services are delivered by a vendor licensed under sections 
196.15  245A.01 to 245A.16 and 252.28, subdivision 2, to provide day 
196.16  training and habilitation services; and 
196.17     (3) are regularly provided to one or more adults with 
196.18  mental retardation or related conditions in a place other than 
196.19  the adult's own home or residence unless medically 
196.20  contraindicated. 
196.21     Day training and habilitation services reimbursable under 
196.22  this section do not include special education and related 
196.23  services as defined in the Education of the Handicapped Act, 
196.24  United States Code, title 20, chapter 33, section 1401, clauses 
196.25  (6) and (17), or vocational services funded under section 110 of 
196.26  the Rehabilitation Act of 1973, United States Code, title 29, 
196.27  section 720, as amended. 
196.28     Sec. 10.  Minnesota Statutes 2002, section 252.46, 
196.29  subdivision 1, is amended to read: 
196.30     Subdivision 1.  [RATES.] (a) Payment rates to vendors, 
196.31  except regional centers, for county-funded day training and 
196.32  habilitation services and transportation provided to persons 
196.33  receiving day training and habilitation services established by 
196.34  a county board are governed by subdivisions 2 to 19.  The 
196.35  commissioner shall approve the following three payment rates for 
196.36  services provided by a vendor: 
197.1      (1) a full-day service rate for persons who receive at 
197.2   least six service hours a day, including the time it takes to 
197.3   transport the person to and from the service site; 
197.4      (2) a partial-day service rate that must not exceed 75 
197.5   percent of the full-day service rate for persons who receive 
197.6   less than a full day of service; and 
197.7      (3) a transportation rate for providing, or arranging and 
197.8   paying for, transportation of a person to and from the person's 
197.9   residence to the service site.  
197.10     (b) The commissioner may also approve an hourly job-coach, 
197.11  follow-along rate for services provided by one employee at or en 
197.12  route to or from community locations to supervise, support, and 
197.13  assist one person receiving the vendor's services to learn 
197.14  job-related skills necessary to obtain or retain employment when 
197.15  and where no other persons receiving services are present and 
197.16  when all the following criteria are met: 
197.17     (1) the vendor requests and the county recommends the 
197.18  optional rate; 
197.19     (2) the service is prior authorized by the county on the 
197.20  Medicaid Management Information System for no more than 414 
197.21  hours in a 12-month period and the daily per person charge to 
197.22  medical assistance does not exceed the vendor's approved full 
197.23  day plus transportation rates; 
197.24     (3) separate full day, partial day, and transportation 
197.25  rates are not billed for the same person on the same day; 
197.26     (4) the approved hourly rate does not exceed the sum of the 
197.27  vendor's current average hourly direct service wage, including 
197.28  fringe benefits and taxes, plus a component equal to the 
197.29  vendor's average hourly nondirect service wage expenses; and 
197.30     (5) the actual revenue received for provision of hourly 
197.31  job-coach, follow-along services is subtracted from the vendor's 
197.32  total expenses for the same time period and those adjusted 
197.33  expenses are used for determining recommended full day and 
197.34  transportation payment rates under subdivision 5 in accordance 
197.35  with the limitations in subdivision 3. 
197.36     (b) Notwithstanding any law or rule to the contrary, the 
198.1   commissioner may authorize county participation in a voluntary 
198.2   individualized payment rate structure for day training and 
198.3   habilitation services to allow a county the flexibility to 
198.4   change, after consulting with providers, from a site-based 
198.5   payment rate structure to an individual payment rate structure 
198.6   for the providers of day training and habilitation services in 
198.7   the county.  The commissioner shall seek input from providers 
198.8   and consumers in establishing procedures for determining the 
198.9   structure of voluntary individualized payment rates to ensure 
198.10  that there is no additional cost to the state or counties and 
198.11  that the rate structure is cost-neutral to providers of day 
198.12  training and habilitation services, on July 1, 2004, or on day 
198.13  one of the individual rate structure, whichever is later. 
198.14     (c) Medical assistance rates for home and community-based 
198.15  service provided under section 256B.501, subdivision 4, by 
198.16  licensed vendors of day training and habilitation services must 
198.17  not be greater than the rates for the same services established 
198.18  by counties under sections 252.40 to 252.46.  For very dependent 
198.19  persons with special needs the commissioner may approve an 
198.20  exception to the approved payment rate under section 256B.501, 
198.21  subdivision 4 or 8. 
198.22     Sec. 11.  Minnesota Statutes 2002, section 256.476, 
198.23  subdivision 1, is amended to read: 
198.24     Subdivision 1.  [PURPOSE AND GOALS.] The commissioner of 
198.25  human services shall establish a consumer support grant program 
198.26  for individuals with functional limitations and their families 
198.27  who wish to purchase and secure their own supports.  The 
198.28  commissioner and local agencies shall jointly develop an 
198.29  implementation plan which must include a way to resolve the 
198.30  issues related to county liability.  The program shall: 
198.31     (1) make support grants or exception grants described in 
198.32  subdivision 11 available to individuals or families as an 
198.33  effective alternative to existing programs and services, such as 
198.34  the developmental disability family support program, personal 
198.35  care attendant services, home health aide services, and private 
198.36  duty nursing services; 
199.1      (2) provide consumers more control, flexibility, and 
199.2   responsibility over their services and supports; 
199.3      (3) promote local program management and decision making; 
199.4   and 
199.5      (4) encourage the use of informal and typical community 
199.6   supports. 
199.7      [EFFECTIVE DATE.] This section is effective January 1, 2004.
199.8      Sec. 12.  Minnesota Statutes 2002, section 256.476, 
199.9   subdivision 3, is amended to read: 
199.10     Subd. 3.  [ELIGIBILITY TO APPLY FOR GRANTS.] (a) A person 
199.11  is eligible to apply for a consumer support grant if the person 
199.12  meets all of the following criteria: 
199.13     (1) the person is eligible for and has been approved to 
199.14  receive services under medical assistance as determined under 
199.15  sections 256B.055 and 256B.056 or the person has been approved 
199.16  to receive a grant under the developmental disability family 
199.17  support program under section 252.32; 
199.18     (2) the person is able to direct and purchase the person's 
199.19  own care and supports, or the person has a family member, legal 
199.20  representative, or other authorized representative who can 
199.21  purchase and arrange supports on the person's behalf; 
199.22     (3) the person has functional limitations, requires ongoing 
199.23  supports to live in the community, and is at risk of or would 
199.24  continue institutionalization without such supports; and 
199.25     (4) the person will live in a home.  For the purpose of 
199.26  this section, "home" means the person's own home or home of a 
199.27  person's family member.  These homes are natural home settings 
199.28  and are not licensed by the department of health or human 
199.29  services. 
199.30     (b) Persons may not concurrently receive a consumer support 
199.31  grant if they are: 
199.32     (1) receiving home and community-based services under 
199.33  United States Code, title 42, section 1396h(c); personal care 
199.34  attendant and home health aide services, or private duty nursing 
199.35  under section 256B.0625; a developmental disability family 
199.36  support grant; or alternative care services under section 
200.1   256B.0913; or 
200.2      (2) residing in an institutional or congregate care setting.
200.3      (c) A person or person's family receiving a consumer 
200.4   support grant shall not be charged a fee or premium by a local 
200.5   agency for participating in the program.  
200.6      (d) The commissioner may limit the participation of 
200.7   recipients of services from federal waiver programs in the 
200.8   consumer support grant program if the participation of these 
200.9   individuals will result in an increase in the cost to the 
200.10  state.  Individuals receiving home and community-based waivers 
200.11  under United States Code, title 42, section 1396h(c), are not 
200.12  eligible for the consumer support grant, except for individuals 
200.13  receiving consumer support grants before July 1, 2003, as long 
200.14  as other eligibility criteria are met. 
200.15     (e) The commissioner shall establish a budgeted 
200.16  appropriation each fiscal year for the consumer support grant 
200.17  program.  The number of individuals participating in the program 
200.18  will be adjusted so the total amount allocated to counties does 
200.19  not exceed the amount of the budgeted appropriation.  The 
200.20  budgeted appropriation will be adjusted annually to accommodate 
200.21  changes in demand for the consumer support grants. 
200.22     Sec. 13.  Minnesota Statutes 2002, section 256.476, 
200.23  subdivision 4, is amended to read: 
200.24     Subd. 4.  [SUPPORT GRANTS; CRITERIA AND LIMITATIONS.] (a) A 
200.25  county board may choose to participate in the consumer support 
200.26  grant program.  If a county has not chosen to participate by 
200.27  July 1, 2002, the commissioner shall contract with another 
200.28  county or other entity to provide access to residents of the 
200.29  nonparticipating county who choose the consumer support grant 
200.30  option.  The commissioner shall notify the county board in a 
200.31  county that has declined to participate of the commissioner's 
200.32  intent to enter into a contract with another county or other 
200.33  entity at least 30 days in advance of entering into the 
200.34  contract.  The local agency shall establish written procedures 
200.35  and criteria to determine the amount and use of support grants.  
200.36  These procedures must include, at least, the availability of 
201.1   respite care, assistance with daily living, and adaptive aids.  
201.2   The local agency may establish monthly or annual maximum amounts 
201.3   for grants and procedures where exceptional resources may be 
201.4   required to meet the health and safety needs of the person on a 
201.5   time-limited basis, however, the total amount awarded to each 
201.6   individual may not exceed the limits established in subdivision 
201.7   11. 
201.8      (b) Support grants to a person or a person's family will be 
201.9   provided through a monthly subsidy payment and be in the form of 
201.10  cash, voucher, or direct county payment to vendor.  Support 
201.11  grant amounts must be determined by the local agency.  Each 
201.12  service and item purchased with a support grant must meet all of 
201.13  the following criteria:  
201.14     (1) it must be over and above the normal cost of caring for 
201.15  the person if the person did not have functional limitations; 
201.16     (2) it must be directly attributable to the person's 
201.17  functional limitations; 
201.18     (3) it must enable the person or the person's family to 
201.19  delay or prevent out-of-home placement of the person; and 
201.20     (4) it must be consistent with the needs identified in the 
201.21  service plan agreement, when applicable. 
201.22     (c) Items and services purchased with support grants must 
201.23  be those for which there are no other public or private funds 
201.24  available to the person or the person's family.  Fees assessed 
201.25  to the person or the person's family for health and human 
201.26  services are not reimbursable through the grant. 
201.27     (d) In approving or denying applications, the local agency 
201.28  shall consider the following factors:  
201.29     (1) the extent and areas of the person's functional 
201.30  limitations; 
201.31     (2) the degree of need in the home environment for 
201.32  additional support; and 
201.33     (3) the potential effectiveness of the grant to maintain 
201.34  and support the person in the family environment or the person's 
201.35  own home. 
201.36     (e) At the time of application to the program or screening 
202.1   for other services, the person or the person's family shall be 
202.2   provided sufficient information to ensure an informed choice of 
202.3   alternatives by the person, the person's legal representative, 
202.4   if any, or the person's family.  The application shall be made 
202.5   to the local agency and shall specify the needs of the person 
202.6   and family, the form and amount of grant requested, the items 
202.7   and services to be reimbursed, and evidence of eligibility for 
202.8   medical assistance. 
202.9      (f) Upon approval of an application by the local agency and 
202.10  agreement on a support plan for the person or person's family, 
202.11  the local agency shall make grants to the person or the person's 
202.12  family.  The grant shall be in an amount for the direct costs of 
202.13  the services or supports outlined in the service agreement.  
202.14     (g) Reimbursable costs shall not include costs for 
202.15  resources already available, such as special education classes, 
202.16  day training and habilitation, case management, other services 
202.17  to which the person is entitled, medical costs covered by 
202.18  insurance or other health programs, or other resources usually 
202.19  available at no cost to the person or the person's family. 
202.20     (h) The state of Minnesota, the county boards participating 
202.21  in the consumer support grant program, or the agencies acting on 
202.22  behalf of the county boards in the implementation and 
202.23  administration of the consumer support grant program shall not 
202.24  be liable for damages, injuries, or liabilities sustained 
202.25  through the purchase of support by the individual, the 
202.26  individual's family, or the authorized representative under this 
202.27  section with funds received through the consumer support grant 
202.28  program.  Liabilities include but are not limited to:  workers' 
202.29  compensation liability, the Federal Insurance Contributions Act 
202.30  (FICA), or the Federal Unemployment Tax Act (FUTA).  For 
202.31  purposes of this section, participating county boards and 
202.32  agencies acting on behalf of county boards are exempt from the 
202.33  provisions of section 268.04. 
202.34     Sec. 14.  Minnesota Statutes 2002, section 256.476, 
202.35  subdivision 5, is amended to read: 
202.36     Subd. 5.  [REIMBURSEMENT, ALLOCATIONS, AND REPORTING.] (a) 
203.1   For the purpose of transferring persons to the consumer support 
203.2   grant program from specific programs or services, such as the 
203.3   developmental disability family support program and personal 
203.4   care assistant services, home health aide services, or private 
203.5   duty nursing services, the amount of funds transferred by the 
203.6   commissioner between the developmental disability family support 
203.7   program account, the medical assistance account, or the consumer 
203.8   support grant account shall be based on each county's 
203.9   participation in transferring persons to the consumer support 
203.10  grant program from those programs and services. 
203.11     (b) At the beginning of each fiscal year, county 
203.12  allocations for consumer support grants shall be based on: 
203.13     (1) the number of persons to whom the county board expects 
203.14  to provide consumer supports grants; 
203.15     (2) their eligibility for current program and services; 
203.16     (3) the amount of nonfederal dollars allowed under 
203.17  subdivision 11; and 
203.18     (4) projected dates when persons will start receiving 
203.19  grants.  County allocations shall be adjusted periodically by 
203.20  the commissioner based on the actual transfer of persons or 
203.21  service openings, and the nonfederal dollars associated with 
203.22  those persons or service openings, to the consumer support grant 
203.23  program. 
203.24     (c) The amount of funds transferred by the commissioner 
203.25  from the medical assistance account for an individual may be 
203.26  changed if it is determined by the county or its agent that the 
203.27  individual's need for support has changed. 
203.28     (d) The authority to utilize funds transferred to the 
203.29  consumer support grant account for the purposes of implementing 
203.30  and administering the consumer support grant program will not be 
203.31  limited or constrained by the spending authority provided to the 
203.32  program of origination. 
203.33     (e) The commissioner may use up to five percent of each 
203.34  county's allocation, as adjusted, for payments for 
203.35  administrative expenses, to be paid as a proportionate addition 
203.36  to reported direct service expenditures. 
204.1      (f) The county allocation for each individual or 
204.2   individual's family cannot exceed the amount allowed under 
204.3   subdivision 11. 
204.4      (g) The commissioner may recover, suspend, or withhold 
204.5   payments if the county board, local agency, or grantee does not 
204.6   comply with the requirements of this section. 
204.7      (h) Grant funds unexpended by consumers shall return to the 
204.8   state once a year.  The annual return of unexpended grant funds 
204.9   shall occur in the quarter following the end of the state fiscal 
204.10  year. 
204.11     Sec. 15.  Minnesota Statutes 2002, section 256.476, 
204.12  subdivision 11, is amended to read: 
204.13     Subd. 11.  [CONSUMER SUPPORT GRANT PROGRAM AFTER JULY 1, 
204.14  2001.] (a) Effective July 1, 2001, the commissioner shall 
204.15  allocate consumer support grant resources to serve additional 
204.16  individuals based on a review of Medicaid authorization and 
204.17  payment information of persons eligible for a consumer support 
204.18  grant from the most recent fiscal year.  The commissioner shall 
204.19  use the following methodology to calculate maximum allowable 
204.20  monthly consumer support grant levels: 
204.21     (1) For individuals whose program of origination is medical 
204.22  assistance home care under section 256B.0627, the maximum 
204.23  allowable monthly grant levels are calculated by: 
204.24     (i) determining the nonfederal share of the average service 
204.25  authorization for each home care rating; 
204.26     (ii) calculating the overall ratio of actual payments to 
204.27  service authorizations by program; 
204.28     (iii) applying the overall ratio to the average service 
204.29  authorization level of each home care rating; 
204.30     (iv) adjusting the result for any authorized rate increases 
204.31  provided by the legislature; and 
204.32     (v) adjusting the result for the average monthly 
204.33  utilization per recipient; and. 
204.34     (2) for persons with programs of origination other than the 
204.35  program described in clause (1), the maximum grant level for an 
204.36  individual shall not exceed the total of the nonfederal dollars 
205.1   expended on the individual by the program of origination The 
205.2   commissioner may review and evaluate the methodology to reflect 
205.3   changes in the home care programs overall ratio of actual 
205.4   payments to service authorizations. 
205.5      (b) Effective January 1, 2004, persons previously receiving 
205.6   consumer support exception grants prior to July 1, 2001, may 
205.7   continue to receive the grant amount established prior to July 
205.8   1, 2001 will have their grants calculated using the methodology 
205.9   in paragraph (a), clause (1).  If a person currently receiving 
205.10  an exception grant wishes to have their home care rating 
205.11  reevaluated, they may request an assessment as defined in 
205.12  section 256B.0627, subdivision 1, paragraph (b). 
205.13     (c) The commissioner may provide up to 200 exception 
205.14  grants, including grants in use under paragraph (b).  Eligible 
205.15  persons shall be provided an exception grant in priority order 
205.16  based upon the date of the commissioner's receipt of the county 
205.17  request.  The maximum allowable grant level for an exception 
205.18  grant shall be based upon the nonfederal share of the average 
205.19  service authorization from the most recent fiscal year for each 
205.20  home care rating category.  The amount of each exception grant 
205.21  shall be based upon the commissioner's determination of the 
205.22  nonfederal dollars that would have been expended if services had 
205.23  been available for an individual who is unable to obtain the 
205.24  support needed from the program of origination due to the 
205.25  unavailability of qualified service providers at the time or the 
205.26  location where the supports are needed. 
205.27     Sec. 16.  Minnesota Statutes 2002, section 256.482, 
205.28  subdivision 8, is amended to read: 
205.29     Subd. 8.  [SUNSET.] Notwithstanding section 15.059, 
205.30  subdivision 5, the council on disability shall not sunset until 
205.31  June 30, 2003 2007. 
205.32     [EFFECTIVE DATE.] This section is effective May 30, 2003. 
205.33     Sec. 17.  Minnesota Statutes 2002, section 256B.0621, 
205.34  subdivision 4, is amended to read: 
205.35     Subd. 4.  [RELOCATION TARGETED CASE MANAGEMENT PROVIDER 
205.36  QUALIFICATIONS.] The following qualifications and certification 
206.1   standards must be met by providers of relocation targeted case 
206.2   management: 
206.3      (a) The commissioner must certify each provider of 
206.4   relocation targeted case management before enrollment.  The 
206.5   certification process shall examine the provider's ability to 
206.6   meet the requirements in this subdivision and other federal and 
206.7   state requirements of this service.  A certified relocation 
206.8   targeted case management provider may subcontract with another 
206.9   provider to deliver relocation targeted case management 
206.10  services.  Subcontracted providers must demonstrate the ability 
206.11  to provide the services outlined in subdivision 6. 
206.12     (b) (a) A relocation targeted case management provider is 
206.13  an enrolled medical assistance provider who is determined by the 
206.14  commissioner to have all of the following characteristics: 
206.15     (1) the legal authority to provide public welfare under 
206.16  sections 393.01, subdivision 7; and 393.07; or a federally 
206.17  recognized Indian tribe; 
206.18     (2) the demonstrated capacity and experience to provide the 
206.19  components of case management to coordinate and link community 
206.20  resources needed by the eligible population; 
206.21     (3) the administrative capacity and experience to serve the 
206.22  target population for whom it will provide services and ensure 
206.23  quality of services under state and federal requirements; 
206.24     (4) the legal authority to provide complete investigative 
206.25  and protective services under section 626.556, subdivision 10; 
206.26  and child welfare and foster care services under section 393.07, 
206.27  subdivisions 1 and 2; or a federally recognized Indian tribe; 
206.28     (5) a financial management system that provides accurate 
206.29  documentation of services and costs under state and federal 
206.30  requirements; and 
206.31     (6) the capacity to document and maintain individual case 
206.32  records under state and federal requirements. 
206.33     (b) A provider of targeted case management under section 
206.34  256B.0625, subdivision 20, may be deemed a certified provider of 
206.35  relocation targeted case management. 
206.36     (c) A relocation targeted case management provider may 
207.1   subcontract with another provider to deliver relocation targeted 
207.2   case management services.  Subcontracted providers must 
207.3   demonstrate the ability to provide the services outlined in 
207.4   subdivision 6, and have a procedure in place that notifies the 
207.5   recipient and the recipient's legal representative of any 
207.6   conflict of interest if the contracted targeted case management 
207.7   provider also provides, or will provide, the recipient's 
207.8   services and supports.  Contracted providers must provide 
207.9   information on all conflicts of interest and obtain the 
207.10  recipient's informed consent or provide the recipient with 
207.11  alternatives.  
207.12     Sec. 18.  Minnesota Statutes 2002, section 256B.0621, 
207.13  subdivision 7, is amended to read: 
207.14     Subd. 7.  [TIME LINES.] The following time lines must be 
207.15  met for assigning a case manager: 
207.16     (1) (a) For relocation targeted case management, an 
207.17  eligible recipient must be assigned a case manager who visits 
207.18  the person within 20 working days of requesting a case manager 
207.19  from their county of financial responsibility as determined 
207.20  under chapter 256G.  
207.21     (1) If a county agency, its contractor, or federally 
207.22  recognized tribe does not provide case management services as 
207.23  required, the recipient may, after written notice to the county 
207.24  agency, obtain targeted relocation case management services from 
207.25  a home care targeted case management provider, as defined in 
207.26  subdivision 5; and an alternative provider of targeted case 
207.27  management services enrolled by the commissioner. 
207.28     (2) The commissioner may waive the provider requirements in 
207.29  subdivision 4, paragraph (a), clauses (1) and (4), to ensure 
207.30  recipient access to the assistance necessary to move from an 
207.31  institution to the community.  The recipient or the recipient's 
207.32  legal guardian shall provide written notice to the county or 
207.33  tribe of the decision to obtain services from an alternative 
207.34  provider. 
207.35     (3) Providers of relocation targeted case management 
207.36  enrolled under this subdivision shall: 
208.1      (i) meet the provider requirements under subdivision 4 that 
208.2   are not waived by the commissioner; 
208.3      (ii) be qualified to provide the services specified in 
208.4   subdivision 6; 
208.5      (iii) coordinate efforts with local social service agencies 
208.6   and tribes; and 
208.7      (iv) comply with the conflict of interest provisions 
208.8   established under subdivision 4, paragraph (c). 
208.9      (4) Local social service agencies and federally recognized 
208.10  tribes shall cooperate with providers certified by the 
208.11  commissioner under this subdivision to facilitate the 
208.12  recipient's successful relocation from an institution to the 
208.13  community. 
208.14     (b) For home care targeted case management, an eligible 
208.15  recipient must be assigned a case manager within 20 working days 
208.16  of requesting a case manager from a home care targeted case 
208.17  management provider, as defined in subdivision 5. 
208.18     [EFFECTIVE DATE.] This section is effective the day 
208.19  following final enactment. 
208.20     Sec. 19.  [256B.0622] [INTENSIVE REHABILITATIVE MENTAL 
208.21  HEALTH SERVICES.] 
208.22     Subdivision 1.  [SCOPE.] Subject to federal approval, 
208.23  medical assistance covers medically necessary, intensive 
208.24  nonresidential and residential rehabilitative mental health 
208.25  services as defined in subdivision 2, for recipients as defined 
208.26  in subdivision 3, when the services are provided by an entity 
208.27  meeting the standards in this section. 
208.28     Subd. 2.  [DEFINITIONS.] For purposes of this section, the 
208.29  following terms have the meanings given them.  
208.30     (a) "Intensive nonresidential rehabilitative mental health 
208.31  services" means adult rehabilitative mental health services as 
208.32  defined in section 256B.0623, subdivision 2, paragraph (a), 
208.33  except that these services are provided by a multidisciplinary 
208.34  staff using a total team approach consistent with assertive 
208.35  community treatment, the Fairweather Lodge treatment model, and 
208.36  other evidence-based practices, and directed to recipients with 
209.1   a serious mental illness who require intensive services. 
209.2      (b) "Intensive residential rehabilitative mental health 
209.3   services" means short-term, time-limited services provided in a 
209.4   residential setting to recipients who are in need of more 
209.5   restrictive settings and are at risk of significant functional 
209.6   deterioration if they do not receive these services.  Services 
209.7   are designed to develop and enhance psychiatric stability, 
209.8   personal and emotional adjustment, self-sufficiency, and skills 
209.9   to live in a more independent setting.  Services must be 
209.10  directed toward a targeted discharge date with specified client 
209.11  outcomes and must be consistent with evidence-based practices. 
209.12     (c) "Evidence-based practices" are nationally recognized 
209.13  mental health services that are proven by substantial research 
209.14  to be effective in helping individuals with serious mental 
209.15  illness obtain specific treatment goals. 
209.16     (d) "Overnight staff" means a member of the intensive 
209.17  residential rehabilitative mental health treatment team who is 
209.18  responsible during hours when recipients are typically asleep. 
209.19     (e) "Treatment team" means all staff who provide services 
209.20  under this section to recipients.  At a minimum, this includes 
209.21  the clinical supervisor, mental health professionals, mental 
209.22  health practitioners, and mental health rehabilitation workers. 
209.23     Subd. 3.  [ELIGIBILITY.] An eligible recipient is an 
209.24  individual who: 
209.25     (1) is age 18 or older; 
209.26     (2) is eligible for medical assistance; 
209.27     (3) is diagnosed with a mental illness; 
209.28     (4) because of a mental illness, has substantial disability 
209.29  and functional impairment in three or more of the areas listed 
209.30  in section 245.462, subdivision 11a, so that self-sufficiency is 
209.31  markedly reduced; 
209.32     (5) has one or more of the following:  a history of two or 
209.33  more inpatient hospitalizations in the past year, significant 
209.34  independent living instability, homelessness, or very frequent 
209.35  use of mental health and related services yielding poor 
209.36  outcomes; and 
210.1      (6) in the written opinion of a licensed mental health 
210.2   professional, has the need for mental health services that 
210.3   cannot be met with other available community-based services, or 
210.4   is likely to experience a mental health crisis or require a more 
210.5   restrictive setting if intensive rehabilitative mental health 
210.6   services are not provided. 
210.7      Subd. 4.  [PROVIDER CERTIFICATION AND CONTRACT 
210.8   REQUIREMENTS.] (a) The intensive nonresidential rehabilitative 
210.9   mental health services provider must: 
210.10     (1) have a contract with the host county to provide 
210.11  intensive adult rehabilitative mental health services; and 
210.12     (2) be certified by the commissioner as being in compliance 
210.13  with this section and section 256B.0623. 
210.14     (b) The intensive residential rehabilitative mental health 
210.15  services provider must: 
210.16     (1) be licensed under Minnesota Rules, parts 9520.0500 to 
210.17  9520.0670; 
210.18     (2) not exceed 16 beds per site; 
210.19     (3) comply with the additional standards in this section; 
210.20  and 
210.21     (4) have a contract with the host county to provide these 
210.22  services. 
210.23     (c) The commissioner shall develop procedures for counties 
210.24  and providers to submit contracts and other documentation as 
210.25  needed to allow the commissioner to determine whether the 
210.26  standards in this section are met. 
210.27     Subd. 5.  [STANDARDS APPLICABLE TO BOTH NONRESIDENTIAL AND 
210.28  RESIDENTIAL PROVIDERS.] (a) Services must be provided by 
210.29  qualified staff as defined in section 256B.0623, subdivision 5, 
210.30  who are trained and supervised according to section 256B.0623, 
210.31  subdivision 6, except that mental health rehabilitation workers 
210.32  acting as overnight staff are not required to comply with 
210.33  section 256B.0623, subdivision 5, clause (3)(iv). 
210.34     (b) The clinical supervisor must be an active member of the 
210.35  treatment team.  The treatment team must meet with the clinical 
210.36  supervisor at least weekly to discuss recipients' progress and 
211.1   make rapid adjustments to meet recipients' needs.  The team 
211.2   meeting shall include recipient-specific case reviews and 
211.3   general treatment discussions among team members.  
211.4   Recipient-specific case reviews and planning must be documented 
211.5   in the individual recipient's treatment record. 
211.6      (c) Treatment staff must have prompt access in person or by 
211.7   telephone to a mental health practitioner or mental health 
211.8   professional.  The provider must have the capacity to promptly 
211.9   and appropriately respond to emergent needs and make any 
211.10  necessary staffing adjustments to assure the health and safety 
211.11  of recipients. 
211.12     (d) The initial functional assessment must be completed 
211.13  within ten days of intake and updated at least every three 
211.14  months or prior to discharge from the service, whichever comes 
211.15  first. 
211.16     (e) The initial individual treatment plan must be completed 
211.17  within ten days of intake and reviewed and updated at least 
211.18  monthly with the recipient.  
211.19     Subd. 6.  [ADDITIONAL STANDARDS APPLICABLE ONLY TO 
211.20  INTENSIVE RESIDENTIAL REHABILITATIVE MENTAL HEALTH 
211.21  SERVICES.] (a) The provider of intensive residential services 
211.22  must have sufficient staff to provide 24 hour per day coverage 
211.23  to deliver the rehabilitative services described in the 
211.24  treatment plan and to safely supervise and direct the activities 
211.25  of recipients given the recipient's level of behavioral and 
211.26  psychiatric stability, cultural needs, and vulnerability.  The 
211.27  provider must have the capacity within the facility to provide 
211.28  integrated services for chemical dependency, illness management 
211.29  services, and family education when appropriate. 
211.30     (b) At a minimum: 
211.31     (1) staff must be available and provide direction and 
211.32  supervision whenever recipients are present in the facility; 
211.33     (2) staff must remain awake during all work hours; 
211.34     (3) there must be a staffing ratio of at least one to nine 
211.35  recipients for each day and evening shift.  If more than nine 
211.36  recipients are present at the residential site, there must be a 
212.1   minimum of two staff during day and evening shifts, one of whom 
212.2   must be a mental health practitioner or mental health 
212.3   professional; 
212.4      (4) if services are provided to recipients who need the 
212.5   services of a medical professional, the provider shall assure 
212.6   that these services are provided either by the provider's own 
212.7   medical staff or through referral to a medical professional; and 
212.8      (5) the provider must assure the timely availability of a 
212.9   licensed registered nurse, either directly employed or under 
212.10  contract, who is responsible for ensuring the effectiveness and 
212.11  safety of medication administration in the facility and 
212.12  assessing patients for medication side effects and drug 
212.13  interactions. 
212.14     Subd. 7.  [ADDITIONAL STANDARDS FOR NONRESIDENTIAL 
212.15  SERVICES.] The standards in this subdivision apply to intensive 
212.16  nonresidential rehabilitative mental health services. 
212.17     (1) The treatment team must use team treatment, not an 
212.18  individual treatment model. 
212.19     (2) The clinical supervisor must function as a practicing 
212.20  clinician at least on a part-time basis. 
212.21     (3) The staffing ratio must not exceed ten recipients to 
212.22  one full-time equivalent treatment team position. 
212.23     (4) Services must be available at times that meet client 
212.24  needs.  
212.25     (5) The treatment team must actively and assertively engage 
212.26  and reach out to the recipient's family members and significant 
212.27  others, after obtaining the recipient's permission.  
212.28     (6) The treatment team must establish ongoing communication 
212.29  and collaboration between the team, family, and significant 
212.30  others and educate the family and significant others about 
212.31  mental illness, symptom management, and the family's role in 
212.32  treatment. 
212.33     (7) The treatment team must provide interventions to 
212.34  promote positive interpersonal relationships. 
212.35     Subd. 8.  [MEDICAL ASSISTANCE PAYMENT FOR INTENSIVE 
212.36  REHABILITATIVE MENTAL HEALTH SERVICES.] (a) Payment for 
213.1   residential and nonresidential services in this section shall be 
213.2   based on one daily rate per provider inclusive of the following 
213.3   services received by an eligible recipient in a given calendar 
213.4   day:  all rehabilitative services under this section and crisis 
213.5   stabilization services under section 256B.0624. 
213.6      (b) Except as indicated in paragraph (c), payment will not 
213.7   be made to more than one entity for each recipient for services 
213.8   provided under this section on a given day.  If services under 
213.9   this section are provided by a team that includes staff from 
213.10  more than one entity, the team must determine how to distribute 
213.11  the payment among the members. 
213.12     (c) The host county shall recommend to the commissioner one 
213.13  rate for each entity that will bill medical assistance for 
213.14  residential services under this section and two rates for each 
213.15  nonresidential provider.  The first nonresidential rate is for 
213.16  recipients who are not receiving residential services.  The 
213.17  second nonresidential rate is for recipients who are temporarily 
213.18  receiving residential services and need continued contact with 
213.19  the nonresidential team to assure timely discharge from 
213.20  residential services.  In developing these rates, the host 
213.21  county shall consider and document: 
213.22     (1) the cost for similar services in the local trade area; 
213.23     (2) actual costs incurred by entities providing the 
213.24  services; 
213.25     (3) the intensity and frequency of services to be provided 
213.26  to each recipient; 
213.27     (4) the degree to which recipients will receive services 
213.28  other than services under this section; 
213.29     (5) the costs of other services, such as case management, 
213.30  that will be separately reimbursed; and 
213.31     (6) input from the local planning process authorized by the 
213.32  adult mental health initiative under section 245.4661, regarding 
213.33  recipients' service needs. 
213.34     (d) The rate for intensive rehabilitative mental health 
213.35  services must exclude room and board, as defined in section 
213.36  256I.03, subdivision 6, and services not covered under this 
214.1   section, such as case management, partial hospitalization, home 
214.2   care, and inpatient services.  Physician services that are not 
214.3   separately billed may be included in the rate to the extent that 
214.4   a psychiatrist is a member of the treatment team.  The county's 
214.5   recommendation shall specify the period for which the rate will 
214.6   be applicable, not to exceed two years. 
214.7      (e) When services under this section are provided by an 
214.8   assertive community team, case management functions must be an 
214.9   integral part of the team.  The county must allocate costs which 
214.10  are reimbursable under this section versus costs which are 
214.11  reimbursable through case management or other reimbursement, so 
214.12  that payment is not duplicated. 
214.13     (f) The rate for a provider must not exceed the rate 
214.14  charged by that provider for the same service to other payors. 
214.15     (g) The commissioner shall approve or reject the county's 
214.16  rate recommendation, based on the commissioner's own analysis of 
214.17  the criteria in paragraph (c). 
214.18     Subd. 9.  [PROVIDER ENROLLMENT; RATE SETTING FOR 
214.19  COUNTY-OPERATED ENTITIES.] Counties that employ their own staff 
214.20  to provide services under this section shall apply directly to 
214.21  the commissioner for enrollment and rate setting.  In this case, 
214.22  a county contract is not required and the commissioner shall 
214.23  perform the program review and rate setting duties which would 
214.24  otherwise be required of counties under this section. 
214.25     Subd. 10.  [PROVIDER ENROLLMENT; RATE SETTING FOR 
214.26  SPECIALIZED PROGRAM.] A provider proposing to serve a 
214.27  subpopulation of eligible recipients may bypass the county 
214.28  approval procedures in this section and receive approval for 
214.29  provider enrollment and rate setting directly from the 
214.30  commissioner under the following circumstances: 
214.31     (1) the provider demonstrates that the subpopulation to be 
214.32  served requires a specialized program which is not available 
214.33  from county-approved entities; and 
214.34     (2) the subpopulation to be served is of such a low 
214.35  incidence that it is not feasible to develop a program serving a 
214.36  single county or regional group of counties. 
215.1      For providers meeting the criteria in clauses (1) and (2), 
215.2   the commissioner shall perform the program review and rate 
215.3   setting duties which would otherwise be required of counties 
215.4   under this section. 
215.5      Sec. 20.  Minnesota Statutes 2002, section 256B.0623, 
215.6   subdivision 2, is amended to read: 
215.7      Subd. 2.  [DEFINITIONS.] For purposes of this section, the 
215.8   following terms have the meanings given them. 
215.9      (a) "Adult rehabilitative mental health services" means 
215.10  mental health services which are rehabilitative and enable the 
215.11  recipient to develop and enhance psychiatric stability, social 
215.12  competencies, personal and emotional adjustment, and independent 
215.13  living and community skills, when these abilities are impaired 
215.14  by the symptoms of mental illness.  Adult rehabilitative mental 
215.15  health services are also appropriate when provided to enable a 
215.16  recipient to retain stability and functioning, if the recipient 
215.17  would be at risk of significant functional decompensation or 
215.18  more restrictive service settings without these services. 
215.19     (1) Adult rehabilitative mental health services instruct, 
215.20  assist, and support the recipient in areas such as:  
215.21  interpersonal communication skills, community resource 
215.22  utilization and integration skills, crisis assistance, relapse 
215.23  prevention skills, health care directives, budgeting and 
215.24  shopping skills, healthy lifestyle skills and practices, cooking 
215.25  and nutrition skills, transportation skills, medication 
215.26  education and monitoring, mental illness symptom management 
215.27  skills, household management skills, employment-related skills, 
215.28  and transition to community living services. 
215.29     (2) These services shall be provided to the recipient on a 
215.30  one-to-one basis in the recipient's home or another community 
215.31  setting or in groups. 
215.32     (b) "Medication education services" means services provided 
215.33  individually or in groups which focus on educating the recipient 
215.34  about mental illness and symptoms; the role and effects of 
215.35  medications in treating symptoms of mental illness; and the side 
215.36  effects of medications.  Medication education is coordinated 
216.1   with medication management services and does not duplicate it.  
216.2   Medication education services are provided by physicians, 
216.3   pharmacists, physician's assistants, or registered nurses. 
216.4      (c) "Transition to community living services" means 
216.5   services which maintain continuity of contact between the 
216.6   rehabilitation services provider and the recipient and which 
216.7   facilitate discharge from a hospital, residential treatment 
216.8   program under Minnesota Rules, chapter 9505, board and lodging 
216.9   facility, or nursing home.  Transition to community living 
216.10  services are not intended to provide other areas of adult 
216.11  rehabilitative mental health services.  
216.12     Sec. 21.  Minnesota Statutes 2002, section 256B.0623, 
216.13  subdivision 4, is amended to read: 
216.14     Subd. 4.  [PROVIDER ENTITY STANDARDS.] (a) The provider 
216.15  entity must be: 
216.16     (1) a county operated entity certified by the state; or 
216.17     (2) a noncounty entity certified by the entity's host 
216.18  county certified by the state following the certification 
216.19  process and procedures developed by the commissioner. 
216.20     (b) The certification process is a determination as to 
216.21  whether the entity meets the standards in this subdivision.  The 
216.22  certification must specify which adult rehabilitative mental 
216.23  health services the entity is qualified to provide. 
216.24     (c) If an entity seeks to provide services outside its host 
216.25  county, it A noncounty provider entity must obtain additional 
216.26  certification from each county in which it will provide 
216.27  services.  The additional certification must be based on the 
216.28  adequacy of the entity's knowledge of that county's local health 
216.29  and human service system, and the ability of the entity to 
216.30  coordinate its services with the other services available in 
216.31  that county.  A county-operated entity must obtain this 
216.32  additional certification from any other county in which it will 
216.33  provide services. 
216.34     (d) Recertification must occur at least every two three 
216.35  years. 
216.36     (e) The commissioner may intervene at any time and 
217.1   decertify providers with cause.  The decertification is subject 
217.2   to appeal to the state.  A county board may recommend that the 
217.3   state decertify a provider for cause. 
217.4      (f) The adult rehabilitative mental health services 
217.5   provider entity must meet the following standards: 
217.6      (1) have capacity to recruit, hire, manage, and train 
217.7   mental health professionals, mental health practitioners, and 
217.8   mental health rehabilitation workers; 
217.9      (2) have adequate administrative ability to ensure 
217.10  availability of services; 
217.11     (3) ensure adequate preservice and inservice and ongoing 
217.12  training for staff; 
217.13     (4) ensure that mental health professionals, mental health 
217.14  practitioners, and mental health rehabilitation workers are 
217.15  skilled in the delivery of the specific adult rehabilitative 
217.16  mental health services provided to the individual eligible 
217.17  recipient; 
217.18     (5) ensure that staff is capable of implementing culturally 
217.19  specific services that are culturally competent and appropriate 
217.20  as determined by the recipient's culture, beliefs, values, and 
217.21  language as identified in the individual treatment plan; 
217.22     (6) ensure enough flexibility in service delivery to 
217.23  respond to the changing and intermittent care needs of a 
217.24  recipient as identified by the recipient and the individual 
217.25  treatment plan; 
217.26     (7) ensure that the mental health professional or mental 
217.27  health practitioner, who is under the clinical supervision of a 
217.28  mental health professional, involved in a recipient's services 
217.29  participates in the development of the individual treatment 
217.30  plan; 
217.31     (8) assist the recipient in arranging needed crisis 
217.32  assessment, intervention, and stabilization services; 
217.33     (9) ensure that services are coordinated with other 
217.34  recipient mental health services providers and the county mental 
217.35  health authority and the federally recognized American Indian 
217.36  authority and necessary others after obtaining the consent of 
218.1   the recipient.  Services must also be coordinated with the 
218.2   recipient's case manager or care coordinator if the recipient is 
218.3   receiving case management or care coordination services; 
218.4      (10) develop and maintain recipient files, individual 
218.5   treatment plans, and contact charting; 
218.6      (11) develop and maintain staff training and personnel 
218.7   files; 
218.8      (12) submit information as required by the state; 
218.9      (13) establish and maintain a quality assurance plan to 
218.10  evaluate the outcome of services provided; 
218.11     (14) keep all necessary records required by law; 
218.12     (15) deliver services as required by section 245.461; 
218.13     (16) comply with all applicable laws; 
218.14     (17) be an enrolled Medicaid provider; 
218.15     (18) maintain a quality assurance plan to determine 
218.16  specific service outcomes and the recipient's satisfaction with 
218.17  services; and 
218.18     (19) develop and maintain written policies and procedures 
218.19  regarding service provision and administration of the provider 
218.20  entity. 
218.21     (g) The commissioner shall develop statewide procedures for 
218.22  provider certification, including timelines for counties to 
218.23  certify qualified providers. 
218.24     Sec. 22.  Minnesota Statutes 2002, section 256B.0623, 
218.25  subdivision 5, is amended to read: 
218.26     Subd. 5.  [QUALIFICATIONS OF PROVIDER STAFF.] Adult 
218.27  rehabilitative mental health services must be provided by 
218.28  qualified individual provider staff of a certified provider 
218.29  entity.  Individual provider staff must be qualified under one 
218.30  of the following criteria: 
218.31     (1) a mental health professional as defined in section 
218.32  245.462, subdivision 18, clauses (1) to (5).  If the recipient 
218.33  has a current diagnostic assessment by a licensed mental health 
218.34  professional as defined in section 245.462, subdivision 18, 
218.35  clauses (1) to (5), recommending receipt of adult mental health 
218.36  rehabilitative services, the definition of mental health 
219.1   professional for purposes of this section includes a person who 
219.2   is qualified under section 245.462, subdivision 18, clause (6), 
219.3   and who holds a current and valid national certification as a 
219.4   certified rehabilitation counselor or certified psychosocial 
219.5   rehabilitation practitioner; 
219.6      (2) a mental health practitioner as defined in section 
219.7   245.462, subdivision 17.  The mental health practitioner must 
219.8   work under the clinical supervision of a mental health 
219.9   professional; or 
219.10     (3) a mental health rehabilitation worker.  A mental health 
219.11  rehabilitation worker means a staff person working under the 
219.12  direction of a mental health practitioner or mental health 
219.13  professional and under the clinical supervision of a mental 
219.14  health professional in the implementation of rehabilitative 
219.15  mental health services as identified in the recipient's 
219.16  individual treatment plan who: 
219.17     (i) is at least 21 years of age; 
219.18     (ii) has a high school diploma or equivalent; 
219.19     (iii) has successfully completed 30 hours of training 
219.20  during the past two years in all of the following areas:  
219.21  recipient rights, recipient-centered individual treatment 
219.22  planning, behavioral terminology, mental illness, co-occurring 
219.23  mental illness and substance abuse, psychotropic medications and 
219.24  side effects, functional assessment, local community resources, 
219.25  adult vulnerability, recipient confidentiality; and 
219.26     (iv) meets the qualifications in subitem (A) or (B): 
219.27     (A) has an associate of arts degree in one of the 
219.28  behavioral sciences or human services, or is a registered nurse 
219.29  without a bachelor's degree, or who within the previous ten 
219.30  years has:  
219.31     (1) three years of personal life experience with serious 
219.32  and persistent mental illness; 
219.33     (2) three years of life experience as a primary caregiver 
219.34  to an adult with a serious mental illness or traumatic brain 
219.35  injury; or 
219.36     (3) 4,000 hours of supervised paid work experience in the 
220.1   delivery of mental health services to adults with a serious 
220.2   mental illness or traumatic brain injury; or 
220.3      (B)(1) is fluent in the non-English language or competent 
220.4   in the culture of the ethnic group to which at least 50 20 
220.5   percent of the mental health rehabilitation worker's clients 
220.6   belong; 
220.7      (2) receives during the first 2,000 hours of work, monthly 
220.8   documented individual clinical supervision by a mental health 
220.9   professional; 
220.10     (3) has 18 hours of documented field supervision by a 
220.11  mental health professional or practitioner during the first 160 
220.12  hours of contact work with recipients, and at least six hours of 
220.13  field supervision quarterly during the following year; 
220.14     (4) has review and cosignature of charting of recipient 
220.15  contacts during field supervision by a mental health 
220.16  professional or practitioner; and 
220.17     (5) has 40 hours of additional continuing education on 
220.18  mental health topics during the first year of employment. 
220.19     Sec. 23.  Minnesota Statutes 2002, section 256B.0623, 
220.20  subdivision 6, is amended to read: 
220.21     Subd. 6.  [REQUIRED TRAINING AND SUPERVISION.] (a) Mental 
220.22  health rehabilitation workers must receive ongoing continuing 
220.23  education training of at least 30 hours every two years in areas 
220.24  of mental illness and mental health services and other areas 
220.25  specific to the population being served.  Mental health 
220.26  rehabilitation workers must also be subject to the ongoing 
220.27  direction and clinical supervision standards in paragraphs (c) 
220.28  and (d). 
220.29     (b) Mental health practitioners must receive ongoing 
220.30  continuing education training as required by their professional 
220.31  license; or if the practitioner is not licensed, the 
220.32  practitioner must receive ongoing continuing education training 
220.33  of at least 30 hours every two years in areas of mental illness 
220.34  and mental health services.  Mental health practitioners must 
220.35  meet the ongoing clinical supervision standards in paragraph (c).
220.36     (c) Clinical supervision may be provided by a full- or 
221.1   part-time qualified professional employed by or under contract 
221.2   with the provider entity.  Clinical supervision may be provided 
221.3   by interactive videoconferencing according to procedures 
221.4   developed by the commissioner.  A mental health professional 
221.5   providing clinical supervision of staff delivering adult 
221.6   rehabilitative mental health services must provide the following 
221.7   guidance: 
221.8      (1) review the information in the recipient's file; 
221.9      (2) review and approve initial and updates of individual 
221.10  treatment plans; 
221.11     (3) meet with mental health rehabilitation workers and 
221.12  practitioners, individually or in small groups, at least monthly 
221.13  to discuss treatment topics of interest to the workers and 
221.14  practitioners; 
221.15     (4) meet with mental health rehabilitation workers and 
221.16  practitioners, individually or in small groups, at least monthly 
221.17  to discuss treatment plans of recipients, and approve by 
221.18  signature and document in the recipient's file any resulting 
221.19  plan updates; 
221.20     (5) meet at least twice a month monthly with the directing 
221.21  mental health practitioner, if there is one, to review needs of 
221.22  the adult rehabilitative mental health services program, review 
221.23  staff on-site observations and evaluate mental health 
221.24  rehabilitation workers, plan staff training, review program 
221.25  evaluation and development, and consult with the directing 
221.26  practitioner; and 
221.27     (6) be available for urgent consultation as the individual 
221.28  recipient needs or the situation necessitates; and 
221.29     (7) provide clinical supervision by full- or part-time 
221.30  mental health professionals employed by or under contract with 
221.31  the provider entity. 
221.32     (d) An adult rehabilitative mental health services provider 
221.33  entity must have a treatment director who is a mental health 
221.34  practitioner or mental health professional.  The treatment 
221.35  director must ensure the following: 
221.36     (1) while delivering direct services to recipients, a newly 
222.1   hired mental health rehabilitation worker must be directly 
222.2   observed delivering services to recipients by the a mental 
222.3   health practitioner or mental health professional for at least 
222.4   six hours per 40 hours worked during the first 160 hours that 
222.5   the mental health rehabilitation worker works; 
222.6      (2) the mental health rehabilitation worker must receive 
222.7   ongoing on-site direct service observation by a mental health 
222.8   professional or mental health practitioner for at least six 
222.9   hours for every six months of employment; 
222.10     (3) progress notes are reviewed from on-site service 
222.11  observation prepared by the mental health rehabilitation worker 
222.12  and mental health practitioner for accuracy and consistency with 
222.13  actual recipient contact and the individual treatment plan and 
222.14  goals; 
222.15     (4) immediate availability by phone or in person for 
222.16  consultation by a mental health professional or a mental health 
222.17  practitioner to the mental health rehabilitation services worker 
222.18  during service provision; 
222.19     (5) oversee the identification of changes in individual 
222.20  recipient treatment strategies, revise the plan, and communicate 
222.21  treatment instructions and methodologies as appropriate to 
222.22  ensure that treatment is implemented correctly; 
222.23     (6) model service practices which:  respect the recipient, 
222.24  include the recipient in planning and implementation of the 
222.25  individual treatment plan, recognize the recipient's strengths, 
222.26  collaborate and coordinate with other involved parties and 
222.27  providers; 
222.28     (7) ensure that mental health practitioners and mental 
222.29  health rehabilitation workers are able to effectively 
222.30  communicate with the recipients, significant others, and 
222.31  providers; and 
222.32     (8) oversee the record of the results of on-site 
222.33  observation and charting evaluation and corrective actions taken 
222.34  to modify the work of the mental health practitioners and mental 
222.35  health rehabilitation workers. 
222.36     (e) A mental health practitioner who is providing treatment 
223.1   direction for a provider entity must receive supervision at 
223.2   least monthly from a mental health professional to: 
223.3      (1) identify and plan for general needs of the recipient 
223.4   population served; 
223.5      (2) identify and plan to address provider entity program 
223.6   needs and effectiveness; 
223.7      (3) identify and plan provider entity staff training and 
223.8   personnel needs and issues; and 
223.9      (4) plan, implement, and evaluate provider entity quality 
223.10  improvement programs.  
223.11     Sec. 24.  Minnesota Statutes 2002, section 256B.0623, 
223.12  subdivision 8, is amended to read: 
223.13     Subd. 8.  [DIAGNOSTIC ASSESSMENT.] Providers of adult 
223.14  rehabilitative mental health services must complete a diagnostic 
223.15  assessment as defined in section 245.462, subdivision 9, within 
223.16  five days after the recipient's second visit or within 30 days 
223.17  after intake, whichever occurs first.  In cases where a 
223.18  diagnostic assessment is available that reflects the recipient's 
223.19  current status, and has been completed within 180 days preceding 
223.20  admission, an update must be completed.  An update shall include 
223.21  a written summary by a mental health professional of the 
223.22  recipient's current mental health status and service needs.  If 
223.23  the recipient's mental health status has changed significantly 
223.24  since the adult's most recent diagnostic assessment, a new 
223.25  diagnostic assessment is required.  For initial implementation 
223.26  of adult rehabilitative mental health services, until June 30, 
223.27  2005, a diagnostic assessment that reflects the recipient's 
223.28  current status and has been completed within the past three 
223.29  years preceding admission is acceptable. 
223.30     Sec. 25.  Minnesota Statutes 2002, section 256B.0625, 
223.31  subdivision 19c, is amended to read: 
223.32     Subd. 19c.  [PERSONAL CARE.] Medical assistance covers 
223.33  personal care assistant services provided by an individual who 
223.34  is qualified to provide the services according to subdivision 
223.35  19a and section 256B.0627, where the services are prescribed by 
223.36  a physician in accordance with a plan of treatment and are 
224.1   supervised by the recipient or a qualified professional.  
224.2   "Qualified professional" means a mental health professional as 
224.3   defined in section 245.462, subdivision 18, or 245.4871, 
224.4   subdivision 27; or a registered nurse as defined in sections 
224.5   148.171 to 148.285, or a licensed social worker as defined in 
224.6   section 148B.21.  As part of the assessment, the county public 
224.7   health nurse will assist the recipient or responsible party to 
224.8   identify the most appropriate person to provide supervision of 
224.9   the personal care assistant.  The qualified professional shall 
224.10  perform the duties described in Minnesota Rules, part 9505.0335, 
224.11  subpart 4.  
224.12     Sec. 26.  Minnesota Statutes 2002, section 256B.0627, 
224.13  subdivision 1, is amended to read: 
224.14     Subdivision 1.  [DEFINITION.] (a) "Activities of daily 
224.15  living" includes eating, toileting, grooming, dressing, bathing, 
224.16  transferring, mobility, and positioning.  
224.17     (b) "Assessment" means a review and evaluation of a 
224.18  recipient's need for home care services conducted in person.  
224.19  Assessments for private duty nursing shall be conducted by a 
224.20  registered private duty nurse.  Assessments for home health 
224.21  agency services shall be conducted by a home health agency 
224.22  nurse.  Assessments for personal care assistant services shall 
224.23  be conducted by the county public health nurse or a certified 
224.24  public health nurse under contract with the county.  A 
224.25  face-to-face assessment must include:  documentation of health 
224.26  status, determination of need, evaluation of service 
224.27  effectiveness, identification of appropriate services, service 
224.28  plan development or modification, coordination of services, 
224.29  referrals and follow-up to appropriate payers and community 
224.30  resources, completion of required reports, recommendation of 
224.31  service authorization, and consumer education.  Once the need 
224.32  for personal care assistant services is determined under this 
224.33  section, the county public health nurse or certified public 
224.34  health nurse under contract with the county is responsible for 
224.35  communicating this recommendation to the commissioner and the 
224.36  recipient.  A face-to-face assessment for personal care 
225.1   assistant services is conducted on those recipients who have 
225.2   never had a county public health nurse assessment.  A 
225.3   face-to-face assessment must occur at least annually or when 
225.4   there is a significant change in the recipient's condition or 
225.5   when there is a change in the need for personal care assistant 
225.6   services.  A service update may substitute for the annual 
225.7   face-to-face assessment when there is not a significant change 
225.8   in recipient condition or a change in the need for personal care 
225.9   assistant service.  A service update or review for temporary 
225.10  increase includes a review of initial baseline data, evaluation 
225.11  of service effectiveness, redetermination of service need, 
225.12  modification of service plan and appropriate referrals, update 
225.13  of initial forms, obtaining service authorization, and on going 
225.14  consumer education.  Assessments for medical assistance home 
225.15  care services for mental retardation or related conditions and 
225.16  alternative care services for developmentally disabled home and 
225.17  community-based waivered recipients may be conducted by the 
225.18  county public health nurse to ensure coordination and avoid 
225.19  duplication.  Assessments must be completed on forms provided by 
225.20  the commissioner within 30 days of a request for home care 
225.21  services by a recipient or responsible party. 
225.22     (c) "Care plan" means a written description of personal 
225.23  care assistant services developed by the qualified professional 
225.24  or the recipient's physician with the recipient or responsible 
225.25  party to be used by the personal care assistant with a copy 
225.26  provided to the recipient or responsible party. 
225.27     (d) "Complex and regular private duty nursing care" means: 
225.28     (1) complex care is private duty nursing provided to 
225.29  recipients who are ventilator dependent or for whom a physician 
225.30  has certified that were it not for private duty nursing the 
225.31  recipient would meet the criteria for inpatient hospital 
225.32  intensive care unit (ICU) level of care; and 
225.33     (2) regular care is private duty nursing provided to all 
225.34  other recipients. 
225.35     (e) "Health-related functions" means functions that can be 
225.36  delegated or assigned by a licensed health care professional 
226.1   under state law to be performed by a personal care attendant. 
226.2      (f) "Home care services" means a health service, determined 
226.3   by the commissioner as medically necessary, that is ordered by a 
226.4   physician and documented in a service plan that is reviewed by 
226.5   the physician at least once every 60 days for the provision of 
226.6   home health services, or private duty nursing, or at least once 
226.7   every 365 days for personal care.  Home care services are 
226.8   provided to the recipient at the recipient's residence that is a 
226.9   place other than a hospital or long-term care facility or as 
226.10  specified in section 256B.0625.  
226.11     (g) "Instrumental activities of daily living" includes meal 
226.12  planning and preparation, managing finances, shopping for food, 
226.13  clothing, and other essential items, performing essential 
226.14  household chores, communication by telephone and other media, 
226.15  and getting around and participating in the community. 
226.16     (h) "Medically necessary" has the meaning given in 
226.17  Minnesota Rules, parts 9505.0170 to 9505.0475.  
226.18     (i) "Personal care assistant" means a person who:  
226.19     (1) is at least 18 years old, except for persons 16 to 18 
226.20  years of age who participated in a related school-based job 
226.21  training program or have completed a certified home health aide 
226.22  competency evaluation; 
226.23     (2) is able to effectively communicate with the recipient 
226.24  and personal care provider organization; 
226.25     (3) effective July 1, 1996, has completed one of the 
226.26  training requirements as specified in Minnesota Rules, part 
226.27  9505.0335, subpart 3, items A to D; 
226.28     (4) has the ability to, and provides covered personal care 
226.29  assistant services according to the recipient's care plan, 
226.30  responds appropriately to recipient needs, and reports changes 
226.31  in the recipient's condition to the supervising qualified 
226.32  professional or physician; 
226.33     (5) is not a consumer of personal care assistant services; 
226.34  and 
226.35     (6) is subject to criminal background checks and procedures 
226.36  specified in section 245A.04.  
227.1      (j) "Personal care provider organization" means an 
227.2   organization enrolled to provide personal care assistant 
227.3   services under the medical assistance program that complies with 
227.4   the following:  (1) owners who have a five percent interest or 
227.5   more, and managerial officials are subject to a background study 
227.6   as provided in section 245A.04.  This applies to currently 
227.7   enrolled personal care provider organizations and those agencies 
227.8   seeking enrollment as a personal care provider organization.  An 
227.9   organization will be barred from enrollment if an owner or 
227.10  managerial official of the organization has been convicted of a 
227.11  crime specified in section 245A.04, or a comparable crime in 
227.12  another jurisdiction, unless the owner or managerial official 
227.13  meets the reconsideration criteria specified in section 245A.04; 
227.14  (2) the organization must maintain a surety bond and liability 
227.15  insurance throughout the duration of enrollment and provides 
227.16  proof thereof.  The insurer must notify the department of human 
227.17  services of the cancellation or lapse of policy; and (3) the 
227.18  organization must maintain documentation of services as 
227.19  specified in Minnesota Rules, part 9505.2175, subpart 7, as well 
227.20  as evidence of compliance with personal care assistant training 
227.21  requirements. 
227.22     (k) "Responsible party" means an individual residing with a 
227.23  recipient of personal care assistant services who is capable of 
227.24  providing the supportive care support necessary to assist the 
227.25  recipient to live in the community, is at least 18 years 
227.26  old, actively participates in planning and directing of personal 
227.27  care assistant services, and is not a the personal care 
227.28  assistant.  The responsible party must be accessible to the 
227.29  recipient and the personal care assistant when personal care 
227.30  services are being provided and monitor the services at least 
227.31  weekly according to the plan of care.  The responsible party 
227.32  must be identified at the time of assessment and listed on the 
227.33  recipient's service agreement and care plan.  Responsible 
227.34  parties who are parents of minors or guardians of minors or 
227.35  incapacitated persons may delegate the responsibility to another 
227.36  adult during a temporary absence of at least 24 hours but not 
228.1   more than six months.  The person delegated as a responsible 
228.2   party must be able to meet the definition of responsible party, 
228.3   except that the delegated responsible party is required to 
228.4   reside with the recipient only while serving as the responsible 
228.5   party who is not the personal care assistant.  The responsible 
228.6   party must assure that the delegate performs the functions of 
228.7   the responsible party, is identified at the time of the 
228.8   assessment, and is listed on the service agreement and the care 
228.9   plan.  Foster care license holders may be designated the 
228.10  responsible party for residents of the foster care home if case 
228.11  management is provided as required in section 256B.0625, 
228.12  subdivision 19a.  For persons who, as of April 1, 1992, are 
228.13  sharing personal care assistant services in order to obtain the 
228.14  availability of 24-hour coverage, an employee of the personal 
228.15  care provider organization may be designated as the responsible 
228.16  party if case management is provided as required in section 
228.17  256B.0625, subdivision 19a. 
228.18     (l) "Service plan" means a written description of the 
228.19  services needed based on the assessment developed by the nurse 
228.20  who conducts the assessment together with the recipient or 
228.21  responsible party.  The service plan shall include a description 
228.22  of the covered home care services, frequency and duration of 
228.23  services, and expected outcomes and goals.  The recipient and 
228.24  the provider chosen by the recipient or responsible party must 
228.25  be given a copy of the completed service plan within 30 calendar 
228.26  days of the request for home care services by the recipient or 
228.27  responsible party. 
228.28     (m) "Skilled nurse visits" are provided in a recipient's 
228.29  residence under a plan of care or service plan that specifies a 
228.30  level of care which the nurse is qualified to provide.  These 
228.31  services are: 
228.32     (1) nursing services according to the written plan of care 
228.33  or service plan and accepted standards of medical and nursing 
228.34  practice in accordance with chapter 148; 
228.35     (2) services which due to the recipient's medical condition 
228.36  may only be safely and effectively provided by a registered 
229.1   nurse or a licensed practical nurse; 
229.2      (3) assessments performed only by a registered nurse; and 
229.3      (4) teaching and training the recipient, the recipient's 
229.4   family, or other caregivers requiring the skills of a registered 
229.5   nurse or licensed practical nurse. 
229.6      (n) "Telehomecare" means the use of telecommunications 
229.7   technology by a home health care professional to deliver home 
229.8   health care services, within the professional's scope of 
229.9   practice, to a patient located at a site other than the site 
229.10  where the practitioner is located. 
229.11     Sec. 27.  Minnesota Statutes 2002, section 256B.0627, 
229.12  subdivision 4, is amended to read: 
229.13     Subd. 4.  [PERSONAL CARE ASSISTANT SERVICES.] (a) The 
229.14  personal care assistant services that are eligible for payment 
229.15  are services and supports furnished to an individual, as needed, 
229.16  to assist in accomplishing activities of daily living; 
229.17  instrumental activities of daily living; health-related 
229.18  functions through hands-on assistance, supervision, and cuing; 
229.19  and redirection and intervention for behavior including 
229.20  observation and monitoring.  
229.21     (b) Payment for services will be made within the limits 
229.22  approved using the prior authorized process established in 
229.23  subdivision 5. 
229.24     (c) The amount and type of services authorized shall be 
229.25  based on an assessment of the recipient's needs in these areas: 
229.26     (1) bowel and bladder care; 
229.27     (2) skin care to maintain the health of the skin; 
229.28     (3) repetitive maintenance range of motion, muscle 
229.29  strengthening exercises, and other tasks specific to maintaining 
229.30  a recipient's optimal level of function; 
229.31     (4) respiratory assistance; 
229.32     (5) transfers and ambulation; 
229.33     (6) bathing, grooming, and hairwashing necessary for 
229.34  personal hygiene; 
229.35     (7) turning and positioning; 
229.36     (8) assistance with furnishing medication that is 
230.1   self-administered; 
230.2      (9) application and maintenance of prosthetics and 
230.3   orthotics; 
230.4      (10) cleaning medical equipment; 
230.5      (11) dressing or undressing; 
230.6      (12) assistance with eating and meal preparation and 
230.7   necessary grocery shopping; 
230.8      (13) accompanying a recipient to obtain medical diagnosis 
230.9   or treatment; 
230.10     (14) assisting, monitoring, or prompting the recipient to 
230.11  complete the services in clauses (1) to (13); 
230.12     (15) redirection, monitoring, and observation that are 
230.13  medically necessary and an integral part of completing the 
230.14  personal care assistant services described in clauses (1) to 
230.15  (14); 
230.16     (16) redirection and intervention for behavior, including 
230.17  observation and monitoring; 
230.18     (17) interventions for seizure disorders, including 
230.19  monitoring and observation if the recipient has had a seizure 
230.20  that requires intervention within the past three months; 
230.21     (18) tracheostomy suctioning using a clean procedure if the 
230.22  procedure is properly delegated by a registered nurse.  Before 
230.23  this procedure can be delegated to a personal care assistant, a 
230.24  registered nurse must determine that the tracheostomy suctioning 
230.25  can be accomplished utilizing a clean rather than a sterile 
230.26  procedure and must ensure that the personal care assistant has 
230.27  been taught the proper procedure; and 
230.28     (19) incidental household services that are an integral 
230.29  part of a personal care service described in clauses (1) to (18).
230.30  For purposes of this subdivision, monitoring and observation 
230.31  means watching for outward visible signs that are likely to 
230.32  occur and for which there is a covered personal care service or 
230.33  an appropriate personal care intervention.  For purposes of this 
230.34  subdivision, a clean procedure refers to a procedure that 
230.35  reduces the numbers of microorganisms or prevents or reduces the 
230.36  transmission of microorganisms from one person or place to 
231.1   another.  A clean procedure may be used beginning 14 days after 
231.2   insertion. 
231.3      (d) The personal care assistant services that are not 
231.4   eligible for payment are the following:  
231.5      (1) services not ordered by the physician; 
231.6      (2) assessments by personal care assistant provider 
231.7   organizations or by independently enrolled registered nurses; 
231.8      (3) services that are not in the service plan; 
231.9      (4) services provided by the recipient's spouse, legal 
231.10  guardian for an adult or child recipient, or parent of a 
231.11  recipient under age 18; 
231.12     (5) services provided by a foster care provider of a 
231.13  recipient who cannot direct the recipient's own care, unless 
231.14  monitored by a county or state case manager under section 
231.15  256B.0625, subdivision 19a; 
231.16     (6) services provided by the residential or program license 
231.17  holder in a residence for more than four persons; 
231.18     (7) services that are the responsibility of a residential 
231.19  or program license holder under the terms of a service agreement 
231.20  and administrative rules; 
231.21     (8) sterile procedures; 
231.22     (9) injections of fluids into veins, muscles, or skin; 
231.23     (10) services provided by parents of adult recipients, 
231.24  adult children, or siblings of the recipient, unless these 
231.25  relatives meet one of the following hardship criteria and the 
231.26  commissioner waives this requirement: 
231.27     (i) the relative resigns from a part-time or full-time job 
231.28  to provide personal care for the recipient; 
231.29     (ii) the relative goes from a full-time to a part-time job 
231.30  with less compensation to provide personal care for the 
231.31  recipient; 
231.32     (iii) the relative takes a leave of absence without pay to 
231.33  provide personal care for the recipient; 
231.34     (iv) the relative incurs substantial expenses by providing 
231.35  personal care for the recipient; or 
231.36     (v) because of labor conditions, special language needs, or 
232.1   intermittent hours of care needed, the relative is needed in 
232.2   order to provide an adequate number of qualified personal care 
232.3   assistants to meet the medical needs of the recipient; 
232.4      (11) homemaker services that are not an integral part of a 
232.5   personal care assistant services; 
232.6      (12) (11) home maintenance, or chore services; 
232.7      (13) (12) services not specified under paragraph (a); and 
232.8      (14) (13) services not authorized by the commissioner or 
232.9   the commissioner's designee. 
232.10     (e) The recipient or responsible party may choose to 
232.11  supervise the personal care assistant or to have a qualified 
232.12  professional, as defined in section 256B.0625, subdivision 19c, 
232.13  provide the supervision.  As required under section 256B.0625, 
232.14  subdivision 19c, the county public health nurse, as a part of 
232.15  the assessment, will assist the recipient or responsible party 
232.16  to identify the most appropriate person to provide supervision 
232.17  of the personal care assistant.  Health-related delegated tasks 
232.18  performed by the personal care assistant will be under the 
232.19  supervision of a qualified professional or the direction of the 
232.20  recipient's physician.  If the recipient has a qualified 
232.21  professional, Minnesota Rules, part 9505.0335, subpart 4, 
232.22  applies. 
232.23     Sec. 28.  Minnesota Statutes 2002, section 256B.0627, 
232.24  subdivision 9, is amended to read: 
232.25     Subd. 9.  [FLEXIBLE USE OF PERSONAL CARE ASSISTANT HOURS.] 
232.26  (a) The commissioner may allow for the flexible use of personal 
232.27  care assistant hours.  "Flexible use" means the scheduled use of 
232.28  authorized hours of personal care assistant services, which vary 
232.29  within the length of the service authorization in order to more 
232.30  effectively meet the needs and schedule of the recipient.  
232.31  Recipients may use their approved hours flexibly within the 
232.32  service authorization period for medically necessary covered 
232.33  services specified in the assessment required in subdivision 1.  
232.34  The flexible use of authorized hours does not increase the total 
232.35  amount of authorized hours available to a recipient as 
232.36  determined under subdivision 5.  The commissioner shall not 
233.1   authorize additional personal care assistant services to 
233.2   supplement a service authorization that is exhausted before the 
233.3   end date under a flexible service use plan, unless the county 
233.4   public health nurse determines a change in condition and a need 
233.5   for increased services is established. 
233.6      (b) The recipient or responsible party, together with the 
233.7   county public health nurse, shall determine whether flexible use 
233.8   is an appropriate option based on the needs and preferences of 
233.9   the recipient or responsible party, and, if appropriate, must 
233.10  ensure that the allocation of hours covers the ongoing needs of 
233.11  the recipient over the entire service authorization period.  As 
233.12  part of the assessment and service planning process, the 
233.13  recipient or responsible party must work with the county public 
233.14  health nurse to develop a written month-to-month plan of the 
233.15  projected use of personal care assistant services that is part 
233.16  of the service plan and ensures that the: 
233.17     (1) health and safety needs of the recipient will be met; 
233.18     (2) total annual authorization will not exceed before the 
233.19  end date; and 
233.20     (3) how actual use of hours will be monitored.  
233.21     (c) If the actual use of personal care assistant service 
233.22  varies significantly from the use projected in the plan, the 
233.23  written plan must be promptly updated by the recipient or 
233.24  responsible party and the county public health nurse. 
233.25     (d) The recipient or responsible party, together with the 
233.26  provider, must work to monitor and document the use of 
233.27  authorized hours and ensure that a recipient is able to manage 
233.28  services effectively throughout the authorized period.  The 
233.29  provider must ensure that the month-to-month plan is 
233.30  incorporated into the care plan.  Upon request of the recipient 
233.31  or responsible party, the provider must furnish regular updates 
233.32  to the recipient or responsible party on the amount of personal 
233.33  care assistant services used.  
233.34     (e) The recipient or responsible party may revoke the 
233.35  authorization for flexible use of hours by notifying the 
233.36  provider and county public health nurse in writing. 
234.1      (f) If the requirements in paragraphs (a) to (e) have not 
234.2   substantially been met, the commissioner shall deny, revoke, or 
234.3   suspend the authorization to use authorized hours flexibly.  The 
234.4   recipient or responsible party may appeal the commissioner's 
234.5   action according to section 256.045.  The denial, revocation, or 
234.6   suspension to use the flexible hours option shall not affect the 
234.7   recipient's authorized level of personal care assistant services 
234.8   as determined under subdivision 5. 
234.9      Sec. 29.  Minnesota Statutes 2002, section 256B.0911, 
234.10  subdivision 4d, is amended to read: 
234.11     Subd. 4d.  [PREADMISSION SCREENING OF INDIVIDUALS UNDER 65 
234.12  YEARS OF AGE.] (a) It is the policy of the state of Minnesota to 
234.13  ensure that individuals with disabilities or chronic illness are 
234.14  served in the most integrated setting appropriate to their needs 
234.15  and have the necessary information to make informed choices 
234.16  about home and community-based service options. 
234.17     (b) Individuals under 65 years of age who are admitted to a 
234.18  nursing facility from a hospital must be screened prior to 
234.19  admission as outlined in subdivisions 4a through 4c. 
234.20     (c) Individuals under 65 years of age who are admitted to 
234.21  nursing facilities with only a telephone screening must receive 
234.22  a face-to-face assessment from the long-term care consultation 
234.23  team member of the county in which the facility is located or 
234.24  from the recipient's county case manager within 20 working 40 
234.25  calendar days of admission. 
234.26     (d) Individuals under 65 years of age who are admitted to a 
234.27  nursing facility without preadmission screening according to the 
234.28  exemption described in subdivision 4b, paragraph (a), clause 
234.29  (3), and who remain in the facility longer than 30 days must 
234.30  receive a face-to-face assessment within 40 days of admission.  
234.31     (e) At the face-to-face assessment, the long-term care 
234.32  consultation team member or county case manager must perform the 
234.33  activities required under subdivision 3b. 
234.34     (f) For individuals under 21 years of age, a screening 
234.35  interview which recommends nursing facility admission must be 
234.36  face-to-face and approved by the commissioner before the 
235.1   individual is admitted to the nursing facility. 
235.2      (g) In the event that an individual under 65 years of age 
235.3   is admitted to a nursing facility on an emergency basis, the 
235.4   county must be notified of the admission on the next working 
235.5   day, and a face-to-face assessment as described in paragraph (c) 
235.6   must be conducted within 20 working days 40 calendar days of 
235.7   admission. 
235.8      (h) At the face-to-face assessment, the long-term care 
235.9   consultation team member or the case manager must present 
235.10  information about home and community-based options so the 
235.11  individual can make informed choices.  If the individual chooses 
235.12  home and community-based services, the long-term care 
235.13  consultation team member or case manager must complete a written 
235.14  relocation plan within 20 working days of the visit.  The plan 
235.15  shall describe the services needed to move out of the facility 
235.16  and a time line for the move which is designed to ensure a 
235.17  smooth transition to the individual's home and community. 
235.18     (i) An individual under 65 years of age residing in a 
235.19  nursing facility shall receive a face-to-face assessment at 
235.20  least every 12 months to review the person's service choices and 
235.21  available alternatives unless the individual indicates, in 
235.22  writing, that annual visits are not desired.  In this case, the 
235.23  individual must receive a face-to-face assessment at least once 
235.24  every 36 months for the same purposes. 
235.25     (j) Notwithstanding the provisions of subdivision 6, the 
235.26  commissioner may pay county agencies directly for face-to-face 
235.27  assessments for individuals under 65 years of age who are being 
235.28  considered for placement or residing in a nursing facility. 
235.29     Sec. 30.  Minnesota Statutes 2002, section 256B.0915, is 
235.30  amended by adding a subdivision to read: 
235.31     Subd. 9.  [TRIBAL MANAGEMENT OF ELDERLY WAIVER.] 
235.32  Notwithstanding contrary provisions of this section, or those in 
235.33  other state laws or rules, the commissioner and White Earth 
235.34  reservation may develop a model for tribal management of the 
235.35  elderly waiver program and implement this model through a 
235.36  contract between the state and White Earth reservation.  The 
236.1   model shall include the provision of tribal waiver case 
236.2   management, assessment for personal care assistance, and 
236.3   administrative requirements otherwise carried out by counties 
236.4   but shall not include tribal financial eligibility determination 
236.5   for medical assistance. 
236.6      Sec. 31.  Minnesota Statutes 2002, section 256B.092, 
236.7   subdivision 1a, is amended to read: 
236.8      Subd. 1a.  [CASE MANAGEMENT ADMINISTRATION AND SERVICES.] 
236.9   (a) The administrative functions of case management provided to 
236.10  or arranged for a person include: 
236.11     (1) intake review of eligibility for services; 
236.12     (2) diagnosis screening; 
236.13     (3) screening intake; 
236.14     (4) service authorization diagnosis; 
236.15     (5) review of eligibility for services the review and 
236.16  authorization of services based upon an individualized service 
236.17  plan; and 
236.18     (6) responding to requests for conciliation conferences and 
236.19  appeals according to section 256.045 made by the person, the 
236.20  person's legal guardian or conservator, or the parent if the 
236.21  person is a minor. 
236.22     (b) Case management service activities provided to or 
236.23  arranged for a person include: 
236.24     (1) development of the individual service plan; 
236.25     (2) informing the individual or the individual's legal 
236.26  guardian or conservator, or parent if the person is a minor, of 
236.27  service options; 
236.28     (3) consulting with relevant medical experts or service 
236.29  providers; 
236.30     (3) (4) assisting the person in the identification of 
236.31  potential providers; 
236.32     (4) (5) assisting the person to access services; 
236.33     (5) (6) coordination of services, if coordination is not 
236.34  provided by another service provider; 
236.35     (6) (7) evaluation and monitoring of the services 
236.36  identified in the plan; and 
237.1      (7) (8) annual reviews of service plans and services 
237.2   provided. 
237.3      (c) Case management administration and service activities 
237.4   that are provided to the person with mental retardation or a 
237.5   related condition shall be provided directly by county agencies 
237.6   or under contract.  
237.7      (d) Case managers are responsible for the administrative 
237.8   duties and service provisions listed in paragraphs (a) and (b).  
237.9   Case managers shall collaborate with consumers, families, legal 
237.10  representatives, and relevant medical experts and service 
237.11  providers in the development and annual review of the 
237.12  individualized service and habilitation plans. 
237.13     (e) The department of human services shall offer ongoing 
237.14  education in case management to case managers.  Case managers 
237.15  shall receive no less than ten hours of case management 
237.16  education and disability-related training each year. 
237.17     Sec. 32.  Minnesota Statutes 2002, section 256B.092, 
237.18  subdivision 5, is amended to read: 
237.19     Subd. 5.  [FEDERAL WAIVERS.] (a) The commissioner shall 
237.20  apply for any federal waivers necessary to secure, to the extent 
237.21  allowed by law, federal financial participation under United 
237.22  States Code, title 42, sections 1396 et seq., as amended, for 
237.23  the provision of services to persons who, in the absence of the 
237.24  services, would need the level of care provided in a regional 
237.25  treatment center or a community intermediate care facility for 
237.26  persons with mental retardation or related conditions.  The 
237.27  commissioner may seek amendments to the waivers or apply for 
237.28  additional waivers under United States Code, title 42, sections 
237.29  1396 et seq., as amended, to contain costs.  The commissioner 
237.30  shall ensure that payment for the cost of providing home and 
237.31  community-based alternative services under the federal waiver 
237.32  plan shall not exceed the cost of intermediate care services 
237.33  including day training and habilitation services that would have 
237.34  been provided without the waivered services.  
237.35     (b) The commissioner, in administering home and 
237.36  community-based waivers for persons with mental retardation and 
238.1   related conditions, shall ensure that day services for eligible 
238.2   persons are not provided by the person's residential service 
238.3   provider, unless the person or the person's legal representative 
238.4   is offered a choice of providers and agrees in writing to 
238.5   provision of day services by the residential service provider.  
238.6   The individual service plan for individuals who choose to have 
238.7   their residential service provider provide their day services 
238.8   must describe how health, safety, and protection, and 
238.9   habilitation needs will be met by, including how frequent and 
238.10  regular contact with persons other than the residential service 
238.11  provider will occur.  The individualized service plan must 
238.12  address the provision of services during the day outside the 
238.13  residence on weekdays.  
238.14     (c) When a county is evaluating denials, reductions, or 
238.15  terminations of home and community-based services under section 
238.16  256B.0916 for an individual, the case manager shall offer to 
238.17  meet with the individual or the individual's guardian in order 
238.18  to discuss the prioritization of service needs within the 
238.19  individualized service plan.  The reduction in the authorized 
238.20  services for an individual due to changes in funding for 
238.21  waivered services may not exceed the amount needed to ensure 
238.22  medically necessary services to meet the individual's health, 
238.23  safety, and welfare. 
238.24     Sec. 33.  Minnesota Statutes 2002, section 256B.095, is 
238.25  amended to read: 
238.26     256B.095 [QUALITY ASSURANCE PROJECT SYSTEM ESTABLISHED.] 
238.27     (a) Effective July 1, 1998, an alternative a quality 
238.28  assurance licensing system project for persons with 
238.29  developmental disabilities, which includes an alternative 
238.30  quality assurance licensing system for programs for persons with 
238.31  developmental disabilities, is established in Dodge, Fillmore, 
238.32  Freeborn, Goodhue, Houston, Mower, Olmsted, Rice, Steele, 
238.33  Wabasha, and Winona counties for the purpose of improving the 
238.34  quality of services provided to persons with developmental 
238.35  disabilities.  A county, at its option, may choose to have all 
238.36  programs for persons with developmental disabilities located 
239.1   within the county licensed under chapter 245A using standards 
239.2   determined under the alternative quality assurance licensing 
239.3   system project or may continue regulation of these programs 
239.4   under the licensing system operated by the commissioner.  The 
239.5   project expires on June 30, 2005 2007. 
239.6      (b) Effective July 1, 2003, a county not listed in 
239.7   paragraph (a) may apply to participate in the quality assurance 
239.8   system established under paragraph (a).  The commission 
239.9   established under section 256B.0951 may, at its option, allow 
239.10  additional counties to participate in the system. 
239.11     (c) Effective July 1, 2003, any county or group of counties 
239.12  not listed in paragraph (a) may establish a quality assurance 
239.13  system under this section.  A new system established under this 
239.14  section shall have the same rights and duties as the system 
239.15  established under paragraph (a).  A new system shall be governed 
239.16  by a commission under section 256B.0951.  The commissioner shall 
239.17  appoint the initial commission members based on recommendations 
239.18  from advocates, families, service providers, and counties in the 
239.19  geographic area included in the new system.  Counties that 
239.20  choose to participate in a new system shall have the duties 
239.21  assigned under section 256B.0952.  The new system shall 
239.22  establish a quality assurance process under section 256B.0953.  
239.23  The provisions of section 256B.0954 shall apply to a new system 
239.24  established under this paragraph.  The commissioner shall 
239.25  delegate authority to a new system established under this 
239.26  paragraph according to section 256B.0955. 
239.27     [EFFECTIVE DATE.] This section is effective July 1, 2003. 
239.28     Sec. 34.  Minnesota Statutes 2002, section 256B.0951, 
239.29  subdivision 1, is amended to read: 
239.30     Subdivision 1.  [MEMBERSHIP.] The region 10 quality 
239.31  assurance commission is established.  The commission consists of 
239.32  at least 14 but not more than 21 members as follows:  at least 
239.33  three but not more than five members representing advocacy 
239.34  organizations; at least three but not more than five members 
239.35  representing consumers, families, and their legal 
239.36  representatives; at least three but not more than five members 
240.1   representing service providers; at least three but not more than 
240.2   five members representing counties; and the commissioner of 
240.3   human services or the commissioner's designee.  Initial 
240.4   membership of the commission shall be recruited and approved by 
240.5   the region 10 stakeholders group.  Prior to approving the 
240.6   commission's membership, the stakeholders group shall provide to 
240.7   the commissioner a list of the membership in the stakeholders 
240.8   group, as of February 1, 1997, a brief summary of meetings held 
240.9   by the group since July 1, 1996, and copies of any materials 
240.10  prepared by the group for public distribution.  The first 
240.11  commission shall establish membership guidelines for the 
240.12  transition and recruitment of membership for the commission's 
240.13  ongoing existence.  Members of the commission who do not receive 
240.14  a salary or wages from an employer for time spent on commission 
240.15  duties may receive a per diem payment when performing commission 
240.16  duties and functions.  All members may be reimbursed for 
240.17  expenses related to commission activities.  Notwithstanding the 
240.18  provisions of section 15.059, subdivision 5, the commission 
240.19  expires on June 30, 2005 2007. 
240.20     [EFFECTIVE DATE.] This section is effective July 1, 2003. 
240.21     Sec. 35.  Minnesota Statutes 2002, section 256B.0951, 
240.22  subdivision 2, is amended to read: 
240.23     Subd. 2.  [AUTHORITY TO HIRE STAFF; CHARGE FEES; PROVIDE 
240.24  TECHNICAL ASSISTANCE.] (a) The commission may hire staff to 
240.25  perform the duties assigned in this section.  
240.26     (b) The commission may charge fees for its services. 
240.27     (c) The commission may provide technical assistance to 
240.28  other counties, families, providers, and advocates interested in 
240.29  participating in a quality assurance system under section 
240.30  256B.095, paragraph (b) or (c). 
240.31     [EFFECTIVE DATE.] This section is effective July 1, 2003. 
240.32     Sec. 36.  Minnesota Statutes 2002, section 256B.0951, 
240.33  subdivision 3, is amended to read: 
240.34     Subd. 3.  [COMMISSION DUTIES.] (a) By October 1, 1997, the 
240.35  commission, in cooperation with the commissioners of human 
240.36  services and health, shall do the following:  (1) approve an 
241.1   alternative quality assurance licensing system based on the 
241.2   evaluation of outcomes; (2) approve measurable outcomes in the 
241.3   areas of health and safety, consumer evaluation, education and 
241.4   training, providers, and systems that shall be evaluated during 
241.5   the alternative licensing process; and (3) establish variable 
241.6   licensure periods not to exceed three years based on outcomes 
241.7   achieved.  For purposes of this subdivision, "outcome" means the 
241.8   behavior, action, or status of a person that can be observed or 
241.9   measured and can be reliably and validly determined. 
241.10     (b) By January 15, 1998, the commission shall approve, in 
241.11  cooperation with the commissioner of human services, a training 
241.12  program for members of the quality assurance teams established 
241.13  under section 256B.0952, subdivision 4. 
241.14     (c) The commission and the commissioner shall establish an 
241.15  ongoing review process for the alternative quality assurance 
241.16  licensing system.  The review shall take into account the 
241.17  comprehensive nature of the alternative system, which is 
241.18  designed to evaluate the broad spectrum of licensed and 
241.19  unlicensed entities that provide services to clients, as 
241.20  compared to the current licensing system.  
241.21     (d) The commission shall contract with an independent 
241.22  entity to conduct a financial review of the alternative quality 
241.23  assurance project.  The review shall take into account the 
241.24  comprehensive nature of the alternative system, which is 
241.25  designed to evaluate the broad spectrum of licensed and 
241.26  unlicensed entities that provide services to clients, as 
241.27  compared to the current licensing system.  The review shall 
241.28  include an evaluation of possible budgetary savings within the 
241.29  department of human services as a result of implementation of 
241.30  the alternative quality assurance project.  If a federal waiver 
241.31  is approved under subdivision 7, the financial review shall also 
241.32  evaluate possible savings within the department of health.  This 
241.33  review must be completed by December 15, 2000. 
241.34     (e) The commission shall submit a report to the legislature 
241.35  by January 15, 2001, on the results of the review process for 
241.36  the alternative quality assurance project, a summary of the 
242.1   results of the independent financial review, and a 
242.2   recommendation on whether the project should be extended beyond 
242.3   June 30, 2001. 
242.4      (f) The commissioner commission, in consultation with 
242.5   the commission commissioner, shall examine the feasibility of 
242.6   expanding work cooperatively with other populations to expand 
242.7   the project system to other those populations or geographic 
242.8   areas and identify barriers to expansion.  The commissioner 
242.9   shall report findings and recommendations to the legislature by 
242.10  December 15, 2004. 
242.11     [EFFECTIVE DATE.] This section is effective July 1, 2003. 
242.12     Sec. 37.  Minnesota Statutes 2002, section 256B.0951, 
242.13  subdivision 5, is amended to read: 
242.14     Subd. 5.  [VARIANCE OF CERTAIN STANDARDS PROHIBITED.] The 
242.15  safety standards, rights, or procedural protections under 
242.16  sections 245.825; 245.91 to 245.97; 245A.04, subdivisions 3, 3a, 
242.17  3b, and 3c; 245A.09, subdivision 2, paragraph (c), clauses (2) 
242.18  and (5); 245A.12; 245A.13; 252.41, subdivision 9; 256B.092, 
242.19  subdivisions 1b, clause (7), and 10; 626.556; 626.557, and 
242.20  procedures for the monitoring of psychotropic medications shall 
242.21  not be varied under the alternative licensing quality assurance 
242.22  licensing system project.  The commission may make 
242.23  recommendations to the commissioners of human services and 
242.24  health or to the legislature regarding alternatives to or 
242.25  modifications of the rules and procedures referenced in this 
242.26  subdivision. 
242.27     [EFFECTIVE DATE.] This section is effective July 1, 2003. 
242.28     Sec. 38.  Minnesota Statutes 2002, section 256B.0951, 
242.29  subdivision 7, is amended to read: 
242.30     Subd. 7.  [WAIVER OF RULES.] If a federal waiver is 
242.31  approved under subdivision 8, the commissioner of health may 
242.32  exempt residents of intermediate care facilities for persons 
242.33  with mental retardation (ICFs/MR) who participate in the 
242.34  alternative quality assurance project system established in 
242.35  section 256B.095 from the requirements of Minnesota Rules, 
242.36  chapter 4665. 
243.1      [EFFECTIVE DATE.] This section is effective July 1, 2003. 
243.2      Sec. 39.  Minnesota Statutes 2002, section 256B.0951, 
243.3   subdivision 9, is amended to read: 
243.4      Subd. 9.  [EVALUATION.] The commission, in consultation 
243.5   with the commissioner of human services, shall conduct an 
243.6   evaluation of the alternative quality assurance system, and 
243.7   present a report to the commissioner by June 30, 2004. 
243.8      [EFFECTIVE DATE.] This section is effective July 1, 2003. 
243.9      Sec. 40.  Minnesota Statutes 2002, section 256B.0952, 
243.10  subdivision 1, is amended to read: 
243.11     Subdivision 1.  [NOTIFICATION.] For each year of the 
243.12  project, region 10 Counties shall give notice to the commission 
243.13  and commissioners of human services and health by March 15 of 
243.14  intent to join the quality assurance alternative quality 
243.15  assurance licensing system, effective July 1 of that year.  A 
243.16  county choosing to participate in the alternative quality 
243.17  assurance licensing system commits to participate until June 30, 
243.18  2005.  Counties participating in the quality assurance 
243.19  alternative licensing system as of January 1, 2001, shall notify 
243.20  the commission and the commissioners of human services and 
243.21  health by March 15, 2001, of intent to continue participation.  
243.22  Counties that elect to continue participation must participate 
243.23  in the alternative licensing system until June 30, 2005 for 
243.24  three years. 
243.25     [EFFECTIVE DATE.] This section is effective July 1, 2003. 
243.26     Sec. 41.  Minnesota Statutes 2002, section 256B.0953, 
243.27  subdivision 2, is amended to read: 
243.28     Subd. 2.  [LICENSURE PERIODS.] (a) In order to be licensed 
243.29  under the alternative quality assurance process licensing 
243.30  system, a facility, program, or service must satisfy the health 
243.31  and safety outcomes approved for the pilot project alternative 
243.32  quality assurance licensing system. 
243.33     (b) Licensure shall be approved for periods of one to three 
243.34  years for a facility, program, or service that satisfies the 
243.35  requirements of paragraph (a) and achieves the outcome 
243.36  measurements in the categories of consumer evaluation, education 
244.1   and training, providers, and systems. 
244.2      [EFFECTIVE DATE.] This section is effective July 1, 2003. 
244.3      Sec. 42.  Minnesota Statutes 2002, section 256B.0955, is 
244.4   amended to read: 
244.5      256B.0955 [DUTIES OF THE COMMISSIONER OF HUMAN SERVICES.] 
244.6      (a) Effective July 1, 1998, the commissioner of human 
244.7   services shall delegate authority to perform licensing functions 
244.8   and activities, in accordance with section 245A.16, to counties 
244.9   participating in the alternative quality assurance licensing 
244.10  system.  The commissioner shall not license or reimburse a 
244.11  facility, program, or service for persons with developmental 
244.12  disabilities in a county that participates in the 
244.13  alternative quality assurance licensing system if the 
244.14  commissioner has received from the appropriate county 
244.15  notification that the facility, program, or service has been 
244.16  reviewed by a quality assurance team and has failed to qualify 
244.17  for licensure. 
244.18     (b) The commissioner may conduct random licensing 
244.19  inspections based on outcomes adopted under section 256B.0951 at 
244.20  facilities, programs, and services governed by the alternative 
244.21  quality assurance licensing system.  The role of such random 
244.22  inspections shall be to verify that the alternative quality 
244.23  assurance licensing system protects the safety and well-being of 
244.24  consumers and maintains the availability of high-quality 
244.25  services for persons with developmental disabilities.  
244.26     (c) The commissioner shall provide technical assistance and 
244.27  support or training to the alternative licensing system pilot 
244.28  project. 
244.29     [EFFECTIVE DATE.] This section is effective July 1, 2003. 
244.30     Sec. 43.  Minnesota Statutes 2002, section 256B.19, 
244.31  subdivision 1, is amended to read: 
244.32     Subdivision 1.  [DIVISION OF COST.] The state and county 
244.33  share of medical assistance costs not paid by federal funds 
244.34  shall be as follows:  
244.35     (1) beginning January 1, 1992, 50 percent state funds and 
244.36  50 percent county funds for the cost of placement of severely 
245.1   emotionally disturbed children in regional treatment centers; 
245.2   and 
245.3      (2) beginning January 1, 2003, 80 percent state funds and 
245.4   20 percent county funds for the costs of nursing facility 
245.5   placements of persons with disabilities under the age of 65 that 
245.6   have exceeded 90 days.  This clause shall be subject to chapter 
245.7   256G and shall not apply to placements in facilities not 
245.8   certified to participate in medical assistance.; 
245.9      (3) beginning July 1, 2004, 80 percent state funds and 20 
245.10  percent county funds for the costs of placements that have 
245.11  exceeded 90 days in intermediate care facilities for persons 
245.12  with mental retardation or a related condition that have seven 
245.13  or more beds.  This provision includes pass-through payments 
245.14  made under section 256B.5015; and 
245.15     (4) beginning July 1, 2004, when state funds are used to 
245.16  pay for a nursing facility placement due to the facility's 
245.17  status as an institution for mental diseases (IMD), the county 
245.18  shall pay 20 percent of the nonfederal share of costs that have 
245.19  exceeded 90 days.  This clause is subject to chapter 256G. 
245.20     For counties that participate in a Medicaid demonstration 
245.21  project under sections 256B.69 and 256B.71, the division of the 
245.22  nonfederal share of medical assistance expenses for payments 
245.23  made to prepaid health plans or for payments made to health 
245.24  maintenance organizations in the form of prepaid capitation 
245.25  payments, this division of medical assistance expenses shall be 
245.26  95 percent by the state and five percent by the county of 
245.27  financial responsibility.  
245.28     In counties where prepaid health plans are under contract 
245.29  to the commissioner to provide services to medical assistance 
245.30  recipients, the cost of court ordered treatment ordered without 
245.31  consulting the prepaid health plan that does not include 
245.32  diagnostic evaluation, recommendation, and referral for 
245.33  treatment by the prepaid health plan is the responsibility of 
245.34  the county of financial responsibility. 
245.35     Sec. 44.  Minnesota Statutes 2002, section 256B.47, 
245.36  subdivision 2, is amended to read: 
246.1      Subd. 2.  [NOTICE TO RESIDENTS.] (a) No increase in nursing 
246.2   facility rates for private paying residents shall be effective 
246.3   unless the nursing facility notifies the resident or person 
246.4   responsible for payment of the increase in writing 30 days 
246.5   before the increase takes effect.  
246.6      A nursing facility may adjust its rates without giving the 
246.7   notice required by this subdivision when the purpose of the rate 
246.8   adjustment is to reflect a necessary change in the level of care 
246.9   provided to a case-mix classification of the resident.  If the 
246.10  state fails to set rates as required by section 
246.11  256B.431, subdivision 1, the time required for giving notice is 
246.12  decreased by the number of days by which the state was late in 
246.13  setting the rates. 
246.14     (b) If the state does not set rates by the date required in 
246.15  section 256B.431, subdivision 1, nursing facilities shall meet 
246.16  the requirement for advance notice by informing the resident or 
246.17  person responsible for payments, on or before the effective date 
246.18  of the increase, that a rate increase will be effective on that 
246.19  date.  If the exact amount has not yet been determined, the 
246.20  nursing facility may raise the rates by the amount anticipated 
246.21  to be allowed.  Any amounts collected from private pay residents 
246.22  in excess of the allowable rate must be repaid to private pay 
246.23  residents with interest at the rate used by the commissioner of 
246.24  revenue for the late payment of taxes and in effect on the date 
246.25  the rate increase is effective. 
246.26     Sec. 45.  Minnesota Statutes 2002, section 256B.47, 
246.27  subdivision 2, is amended to read: 
246.28     Subd. 2.  [NOTICE TO RESIDENTS.] (a) No increase in nursing 
246.29  facility rates for private paying residents shall be effective 
246.30  unless the nursing facility notifies the resident or person 
246.31  responsible for payment of the increase in writing 30 days 
246.32  before the increase takes effect.  
246.33     A nursing facility may adjust its rates without giving the 
246.34  notice required by this subdivision when the purpose of the rate 
246.35  adjustment is to reflect a necessary change in the level of care 
246.36  provided to a case-mix classification of the resident.  If the 
247.1   state fails to set rates as required by section 
247.2   256B.431, subdivision 1, the time required for giving notice is 
247.3   decreased by the number of days by which the state was late in 
247.4   setting the rates. 
247.5      (b) If the state does not set rates by the date required in 
247.6   section 256B.431, subdivision 1, nursing facilities shall meet 
247.7   the requirement for advance notice by informing the resident or 
247.8   person responsible for payments, on or before the effective date 
247.9   of the increase, that a rate increase will be effective on that 
247.10  date.  If the exact amount has not yet been determined, the 
247.11  nursing facility may raise the rates by the amount anticipated 
247.12  to be allowed.  Any amounts collected from private pay residents 
247.13  in excess of the allowable rate must be repaid to private pay 
247.14  residents with interest at the rate used by the commissioner of 
247.15  revenue for the late payment of taxes and in effect on the date 
247.16  the rate increase is effective. 
247.17     Sec. 46.  Minnesota Statutes 2002, section 256B.49, 
247.18  subdivision 15, is amended to read: 
247.19     Subd. 15.  [INDIVIDUALIZED SERVICE PLAN.] (a) Each 
247.20  recipient of home and community-based waivered services shall be 
247.21  provided a copy of the written service plan which: 
247.22     (1) is developed and signed by the recipient within ten 
247.23  working days of the completion of the assessment; 
247.24     (2) meets the assessed needs of the recipient; 
247.25     (3) reasonably ensures the health and safety of the 
247.26  recipient; 
247.27     (4) promotes independence; 
247.28     (5) allows for services to be provided in the most 
247.29  integrated settings; and 
247.30     (6) provides for an informed choice, as defined in section 
247.31  256B.77, subdivision 2, paragraph (p), of service and support 
247.32  providers. 
247.33     (b) When a county is evaluating denials, reductions, or 
247.34  terminations of home and community-based services under section 
247.35  256B.49 for an individual, the case manager shall offer to meet 
247.36  with the individual or the individual's guardian in order to 
248.1   discuss the prioritization of service needs within the 
248.2   individualized service plan.  The reduction in the authorized 
248.3   services for an individual due to changes in funding for 
248.4   waivered services may not exceed the amount needed to ensure 
248.5   medically necessary services to meet the individual's health, 
248.6   safety, and welfare. 
248.7      Sec. 47.  Minnesota Statutes 2002, section 256B.501, 
248.8   subdivision 1, is amended to read: 
248.9      Subdivision 1.  [DEFINITIONS.] For the purposes of this 
248.10  section, the following terms have the meaning given them.  
248.11     (a) "Commissioner" means the commissioner of human services.
248.12     (b) "Facility" means a facility licensed as a mental 
248.13  retardation residential facility under section 252.28, licensed 
248.14  as a supervised living facility under chapter 144, and certified 
248.15  as an intermediate care facility for persons with mental 
248.16  retardation or related conditions.  The term does not include a 
248.17  state regional treatment center. 
248.18     (c) "Habilitation services" means health and social 
248.19  services directed toward increasing and maintaining the 
248.20  physical, intellectual, emotional, and social functioning of 
248.21  persons with mental retardation or related conditions.  
248.22  Habilitation services include therapeutic activities, 
248.23  assistance, training, supervision, and monitoring in the areas 
248.24  of self-care, sensory and motor development, interpersonal 
248.25  skills, communication, socialization, reduction or elimination 
248.26  of maladaptive behavior, community living and mobility, health 
248.27  care, leisure and recreation, money management, and household 
248.28  chores. 
248.29     (d) "Services during the day" means services or supports 
248.30  provided to a person that enables the person to be fully 
248.31  integrated into the community.  Services during the day must 
248.32  include habilitation services, and may include a variety of 
248.33  supports to enable the person to exercise choices for community 
248.34  integration and inclusion activities.  Services during the day 
248.35  may include, but are not limited to:  supported work, support 
248.36  during community activities, community volunteer opportunities, 
249.1   adult day care, recreational activities, and other 
249.2   individualized integrated supports. 
249.3      (e) "Waivered service" means home or community-based 
249.4   service authorized under United States Code, title 42, section 
249.5   1396n(c), as amended through December 31, 1987, and defined in 
249.6   the Minnesota state plan for the provision of medical assistance 
249.7   services.  Waivered services include, at a minimum, case 
249.8   management, family training and support, developmental training 
249.9   homes, supervised living arrangements, semi-independent living 
249.10  services, respite care, and training and habilitation services. 
249.11     Sec. 48.  Minnesota Statutes 2002, section 256B.501, is 
249.12  amended by adding a subdivision to read: 
249.13     Subd. 3m.  [SERVICES DURING THE DAY.] When establishing a 
249.14  rate for services during the day, the commissioner shall ensure 
249.15  that these services comply with active treatment requirements 
249.16  for persons residing in an ICF/MR as defined under federal 
249.17  regulations and shall ensure that services during the day for 
249.18  eligible persons are not provided by the person's residential 
249.19  service provider, unless the person or the person's legal 
249.20  representative is offered a choice of providers and agrees in 
249.21  writing to provision of services during the day by the 
249.22  residential service provider, consistent with the individual 
249.23  service plan.  The individual service plan for individuals who 
249.24  choose to have their residential service provider provide their 
249.25  services during the day must describe how health, safety, 
249.26  protection, and habilitation needs will be met, including how 
249.27  frequent and regular contact with persons other than the 
249.28  residential service provider will occur.  The individualized 
249.29  service plan must address the provision of services during the 
249.30  day outside the residence.  
249.31     Sec. 49.  Minnesota Statutes 2002, section 256B.5013, is 
249.32  amended by adding a subdivision to read: 
249.33     Subd. 7.  [RATE ADJUSTMENTS FOR SHORT-TERM ADMISSIONS FOR 
249.34  CRISIS OR SPECIALIZED MEDICAL CARE.] Beginning July 1, 2003, the 
249.35  commissioner may designate up to 25 beds in ICF/MR facilities 
249.36  statewide for short-term admissions due to crisis care needs or 
250.1   care for medically fragile individuals.  The commissioner shall 
250.2   adjust the monthly facility rate to provide payment for 
250.3   vacancies in designated short-term beds by an amount equal to 
250.4   the rate for each recipient residing in a designated bed for up 
250.5   to 15 days per bed per month.  The commissioner may designate 
250.6   short-term beds in ICF/MR facilities based on the short-term 
250.7   care needs of a region or county as provided in section 252.28.  
250.8   Nothing in this section shall be construed as limiting payments 
250.9   for short-term admissions of eligible recipients to an ICF/MR 
250.10  that is not designated for short-term admissions for crisis or 
250.11  specialized medical care under this subdivision and does not 
250.12  receive a temporary rate adjustment. 
250.13     Sec. 50.  Minnesota Statutes 2002, section 256B.5015, is 
250.14  amended to read: 
250.15     256B.5015 [PASS-THROUGH OF TRAINING AND HABILITATION OTHER 
250.16  SERVICES COSTS.] 
250.17     Subdivision 1.  [DAY TRAINING AND HABILITATION SERVICES.] 
250.18  Day training and habilitation services costs shall be paid as a 
250.19  pass-through payment at the lowest rate paid for the comparable 
250.20  services at that site under sections 252.40 to 252.46.  The 
250.21  pass-through payments for training and habilitation services 
250.22  shall be paid separately by the commissioner and shall not be 
250.23  included in the computation of the ICF/MR facility total payment 
250.24  rate. 
250.25     Subd. 2.  [SERVICES DURING THE DAY.] Services during the 
250.26  day, as defined in section 256B.501, but excluding day training 
250.27  and habilitation services, shall be paid as a pass-through 
250.28  payment no later than January 1, 2004.  The commissioner shall 
250.29  establish rates for these services, other than day training and 
250.30  habilitation services, at levels that do not exceed 75 percent 
250.31  of a recipient's day training and habilitation service costs 
250.32  prior to the service change. 
250.33     When establishing a rate for these services, the 
250.34  commissioner shall also consider an individual recipient's needs 
250.35  as identified in the individualized service plan and the 
250.36  person's need for active treatment as defined under federal 
251.1   regulations.  The pass-through payments for services during the 
251.2   day shall be paid separately by the commissioner and shall not 
251.3   be included in the computation of the ICF/MR facility total 
251.4   payment rate.  
251.5      Sec. 51.  Minnesota Statutes 2002, section 256B.82, is 
251.6   amended to read: 
251.7      256B.82 [PREPAID PLANS AND MENTAL HEALTH REHABILITATIVE 
251.8   SERVICES.] 
251.9      Medical assistance and MinnesotaCare prepaid health plans 
251.10  may include coverage for adult mental health rehabilitative 
251.11  services under section 256B.0623, intensive rehabilitative 
251.12  services under section 256B.0622, and adult mental health crisis 
251.13  response services under section 256B.0624, beginning January 1, 
251.14  2004 2005. 
251.15     By January 15, 2003 2004, the commissioner shall report to 
251.16  the legislature how these services should be included in prepaid 
251.17  plans.  The commissioner shall consult with mental health 
251.18  advocates, health plans, and counties in developing this 
251.19  report.  The report recommendations must include a plan to 
251.20  ensure coordination of these services between health plans and 
251.21  counties, assure recipient access to essential community 
251.22  providers, and monitor the health plans' delivery of services 
251.23  through utilization review and quality standards. 
251.24     Sec. 52.  [256I.08] [COUNTY SHARE FOR CERTAIN NURSING 
251.25  FACILITY STAYS.] 
251.26     Beginning July 1, 2004, if group residential housing is 
251.27  used to pay for a nursing facility placement due to the 
251.28  facility's status as an Institution for Mental Diseases, the 
251.29  county is liable for 20 percent of the nonfederal share of costs 
251.30  for persons under the age of 65 that have exceeded 90 days. 
251.31     Sec. 53.  [CASE MANAGEMENT ACCESS FOR PERSONS SEEKING 
251.32  COMMUNITY-BASED SERVICES.] 
251.33     When a person requests services authorized under Minnesota 
251.34  Statutes, section 256B.0621, 256B.092, or 256B.49, subdivision 
251.35  13, the county must determine whether the person qualifies, 
251.36  begin the screening process, begin individualized service plan 
252.1   development, and provide mandated case management services or 
252.2   relocation service coordination to those eligible within a 
252.3   reasonable time.  If a county is unable to provide case 
252.4   management services within the required time period under 
252.5   Minnesota Statutes, sections 256B.0621, subdivision 7; 256B.49, 
252.6   subdivision 13; and Minnesota Rules, parts 9525.0004 to 
252.7   9525.0036, the county shall contract for case management 
252.8   services to meet the obligation.  
252.9      Sec. 54.  [CASE MANAGEMENT SERVICES REDESIGN.] 
252.10     The commissioner shall report to the legislature on the 
252.11  redesign of case management services.  In preparing the report, 
252.12  the commissioner shall consult with representatives for 
252.13  consumers, consumer advocates, counties, and service providers.  
252.14  The report shall include draft legislation for case management 
252.15  changes that will (1) streamline administration, (2) improve 
252.16  consumer access to case management services, (3) address the use 
252.17  of a comprehensive universal assessment protocol for persons 
252.18  seeking community supports, (4) establish case management 
252.19  performance measures, (5) provide for consumer choice of the 
252.20  case management service vendor, and (6) provide a method of 
252.21  payment for case management services that is cost-effective and 
252.22  best supports the draft legislation in clauses (1) to (5).  The 
252.23  proposed legislation shall be provided to the legislative 
252.24  committees with jurisdiction over health and human services 
252.25  issues by January 15, 2005. 
252.26     Sec. 55.  [VACANCY LISTINGS.] 
252.27     The commissioner of human services shall work with 
252.28  interested stakeholders on how provider and industry specific 
252.29  Web sites can provide useful information to consumers on bed 
252.30  vacancies for group residential housing providers and 
252.31  intermediate care facilities for persons with mental retardation 
252.32  and related conditions.  Providers and industry trade 
252.33  organizations are responsible for all costs related to 
252.34  maintaining Web sites listing bed vacancies. 
252.35     Sec. 56.  [HOMELESS SERVICES; STATE CONTRACTS.] 
252.36     The commissioner of human services may contract directly 
253.1   with nonprofit organizations providing homeless services in two 
253.2   or more counties.  
253.3      Sec. 57.  [GOVERNOR'S COUNCIL ON DEVELOPMENTAL DISABILITY, 
253.4   OMBUDSMAN FOR MENTAL HEALTH AND MENTAL RETARDATION, AND COUNCIL 
253.5   ON DISABILITIES.] 
253.6      The governor's council on developmental disability under 
253.7   Minnesota Statutes, section 16B.053, the ombudsman for mental 
253.8   health and mental retardation under Minnesota Statutes, section 
253.9   245.92, the centers for independent living, and the council on 
253.10  disability under Minnesota Statutes, section 256.482, must study 
253.11  the feasibility of reducing costs and increasing effectiveness 
253.12  through (1) space coordination, (2) shared use of technology, 
253.13  (3) coordination of resource priorities, and (4) consolidation 
253.14  and make recommendations to the house and senate committees with 
253.15  jurisdiction over these entities by January 15, 2004. 
253.16     Sec. 58.  [LICENSING CHANGE.] 
253.17     Notwithstanding Minnesota Statutes, sections 245A.11 and 
253.18  252.291, the commissioner of human services shall allow an 
253.19  existing intermediate care facility for persons with mental 
253.20  retardation or related conditions located in Goodhue county 
253.21  serving 39 children to be converted to four separately licensed 
253.22  or certified cottages serving up to six children each. 
253.23     Sec. 59.  [REVISOR'S INSTRUCTION.] 
253.24     For sections in Minnesota Statutes and Minnesota Rules 
253.25  affected by the repealed sections in this article, the revisor 
253.26  shall delete internal cross-references where appropriate and 
253.27  make changes necessary to correct the punctuation, grammar, or 
253.28  structure of the remaining text and preserve its meaning. 
253.29     Sec. 60.  [REPEALER.] 
253.30     (a) Minnesota Statutes 2002, sections 252.32, subdivision 
253.31  2; and 256B.5013, subdivision 4, are repealed July 1, 2003. 
253.32     (b) Laws 2001, First Special Session chapter 9, article 13, 
253.33  section 24, is repealed July 1, 2003. 
253.34                             ARTICLE 4 
253.35                        CHILDREN'S SERVICES 
253.36     Section 1.  Minnesota Statutes 2002, section 124D.23, 
254.1   subdivision 1, is amended to read: 
254.2      Subdivision 1.  [ESTABLISHMENT.] (a) In order to qualify as 
254.3   a family services collaborative, a minimum of one school 
254.4   district, one county, one public health entity, one community 
254.5   action agency as defined in section 119A.375, and one Head Start 
254.6   grantee if the community action agency is not the designated 
254.7   federal grantee for the Head Start program must agree in writing 
254.8   to provide coordinated family services and commit resources to 
254.9   an integrated fund.  Collaboratives are expected to have broad 
254.10  community representation, which may include other local 
254.11  providers, including additional school districts, counties, and 
254.12  public health entities, other municipalities, public libraries, 
254.13  existing culturally specific community organizations, tribal 
254.14  entities, local health organizations, private and nonprofit 
254.15  service providers, child care providers, local foundations, 
254.16  community-based service groups, businesses, local transit 
254.17  authorities or other transportation providers, community action 
254.18  agencies under section 119A.375, senior citizen volunteer 
254.19  organizations, parent organizations, parents, and sectarian 
254.20  organizations that provide nonsectarian services. 
254.21     (b) Members of the governing bodies of political 
254.22  subdivisions involved in the establishment of a family services 
254.23  collaborative shall select representatives of the 
254.24  nongovernmental entities listed in paragraph (a) to serve on the 
254.25  governing board of a collaborative.  The governing body members 
254.26  of the political subdivisions shall select one or more 
254.27  representatives of the nongovernmental entities within the 
254.28  family service collaborative. 
254.29     (c) Two or more family services collaboratives or 
254.30  children's mental health collaboratives may consolidate 
254.31  decision-making, pool resources, and collectively act on behalf 
254.32  of the individual collaboratives, based on a written agreement 
254.33  among the participating collaboratives. 
254.34     Sec. 2.  Minnesota Statutes 2002, section 245.4874, is 
254.35  amended to read: 
254.36     245.4874 [DUTIES OF COUNTY BOARD.] 
255.1      The county board in each county shall use its share of 
255.2   mental health and Community Social Services Act funds allocated 
255.3   by the commissioner according to a biennial children's mental 
255.4   health component of the community social services plan required 
255.5   under section 245.4888, and approved by the commissioner.  The 
255.6   county board must: 
255.7      (1) develop a system of affordable and locally available 
255.8   children's mental health services according to sections 245.487 
255.9   to 245.4888; 
255.10     (2) establish a mechanism providing for interagency 
255.11  coordination as specified in section 245.4875, subdivision 6; 
255.12     (3) develop a biennial children's mental health component 
255.13  of the community social services plan required under section 
255.14  256E.09 which considers the assessment of unmet needs in the 
255.15  county as reported by the local children's mental health 
255.16  advisory council under section 245.4875, subdivision 5, 
255.17  paragraph (b), clause (3).  The county shall provide, upon 
255.18  request of the local children's mental health advisory council, 
255.19  readily available data to assist in the determination of unmet 
255.20  needs; 
255.21     (4) assure that parents and providers in the county receive 
255.22  information about how to gain access to services provided 
255.23  according to sections 245.487 to 245.4888; 
255.24     (5) coordinate the delivery of children's mental health 
255.25  services with services provided by social services, education, 
255.26  corrections, health, and vocational agencies to improve the 
255.27  availability of mental health services to children and the 
255.28  cost-effectiveness of their delivery; 
255.29     (6) assure that mental health services delivered according 
255.30  to sections 245.487 to 245.4888 are delivered expeditiously and 
255.31  are appropriate to the child's diagnostic assessment and 
255.32  individual treatment plan; 
255.33     (7) provide the community with information about predictors 
255.34  and symptoms of emotional disturbances and how to access 
255.35  children's mental health services according to sections 245.4877 
255.36  and 245.4878; 
256.1      (8) provide for case management services to each child with 
256.2   severe emotional disturbance according to sections 245.486; 
256.3   245.4871, subdivisions 3 and 4; and 245.4881, subdivisions 1, 3, 
256.4   and 5; 
256.5      (9) provide for screening of each child under section 
256.6   245.4885 upon admission to a residential treatment facility, 
256.7   acute care hospital inpatient treatment, or informal admission 
256.8   to a regional treatment center; 
256.9      (10) prudently administer grants and purchase-of-service 
256.10  contracts that the county board determines are necessary to 
256.11  fulfill its responsibilities under sections 245.487 to 245.4888; 
256.12     (11) assure that mental health professionals, mental health 
256.13  practitioners, and case managers employed by or under contract 
256.14  to the county to provide mental health services are qualified 
256.15  under section 245.4871; 
256.16     (12) assure that children's mental health services are 
256.17  coordinated with adult mental health services specified in 
256.18  sections 245.461 to 245.486 so that a continuum of mental health 
256.19  services is available to serve persons with mental illness, 
256.20  regardless of the person's age; and 
256.21     (13) assure that culturally informed mental health 
256.22  consultants are used as necessary to assist the county board in 
256.23  assessing and providing appropriate treatment for children of 
256.24  cultural or racial minority heritage; and 
256.25     (14) arrange for or provide a children's mental health 
256.26  screening to a child receiving child protective services or a 
256.27  child in out-of-home placement, a child for whom parental rights 
256.28  have been terminated, a child found to be delinquent, and a 
256.29  child found to have committed a juvenile petty offense for the 
256.30  third or subsequent time, unless a screening has been performed 
256.31  within the previous 180 days, or the child is currently under 
256.32  the care of a mental health professional.  The court or county 
256.33  agency must notify a parent or guardian whose parental rights 
256.34  have not been terminated of the potential mental health 
256.35  screening and the option to prevent the screening by notifying 
256.36  the court or county agency in writing.  The screening shall be 
257.1   conducted with a screening instrument approved by the 
257.2   commissioner of human services according to criteria that are 
257.3   updated and issued annually to ensure that approved screening 
257.4   instruments are valid and useful for child welfare and juvenile 
257.5   justice populations, and shall be conducted by a mental health 
257.6   practitioner as defined in section 245.4871, subdivision 26, or 
257.7   a probation officer or local social services agency staff person 
257.8   who is trained in the use of the screening instrument.  Training 
257.9   in the use of the instrument shall include training in the 
257.10  administration of the instrument, the interpretation of its 
257.11  validity given the child's current circumstances, the state and 
257.12  federal data practices laws and confidentiality standards, the 
257.13  parental consent requirement, and providing respect for families 
257.14  and cultural values.  If the screen indicates a need for 
257.15  assessment, the child's family, or if the family lacks mental 
257.16  health insurance, the local social services agency, in 
257.17  consultation with the child's family, shall have conducted a 
257.18  diagnostic assessment, including a functional assessment, as 
257.19  defined in section 245.4871.  The administration of the 
257.20  screening shall safeguard the privacy of children receiving the 
257.21  screening and their families and shall comply with the Minnesota 
257.22  Government Data Practices Act, chapter 13, and the federal 
257.23  Health Insurance Portability and Accountability Act of 1996, 
257.24  Public Law 104-191.  Screening results shall be considered 
257.25  private data and the commissioner shall not collect individual 
257.26  screening results. 
257.27     [EFFECTIVE DATE.] This section is effective July 1, 2004. 
257.28     Sec. 3.  Minnesota Statutes 2002, section 245.493, 
257.29  subdivision 1a, is amended to read: 
257.30     Subd. 1a.  [DUTIES OF CERTAIN COORDINATING BODIES.] (a) By 
257.31  mutual agreement of the collaborative and a coordinating body 
257.32  listed in this subdivision, a children's mental health 
257.33  collaborative or a collaborative established by the merger of a 
257.34  children's mental health collaborative and a family services 
257.35  collaborative under section 124D.23, may assume the duties of a 
257.36  community transition interagency committee established under 
258.1   section 125A.22; an interagency early intervention committee 
258.2   established under section 125A.30; a local advisory council 
258.3   established under section 245.4875, subdivision 5; or a local 
258.4   coordinating council established under section 245.4875, 
258.5   subdivision 6. 
258.6      (b) Two or more family services collaboratives or 
258.7   children's mental health collaboratives may consolidate 
258.8   decision-making, pool resources, and collectively act on behalf 
258.9   of the individual collaboratives, based on a written agreement 
258.10  among the participating collaboratives. 
258.11     Sec. 4.  Minnesota Statutes 2002, section 256B.0625, 
258.12  subdivision 23, is amended to read: 
258.13     Subd. 23.  [DAY TREATMENT SERVICES.] Medical assistance 
258.14  covers day treatment services as specified in sections 245.462, 
258.15  subdivision 8, and 245.4871, subdivision 10, that are provided 
258.16  under contract with the county board.  Notwithstanding Minnesota 
258.17  Rules, part 9505.0323, subpart 15, the commissioner may set 
258.18  authorization thresholds for day treatment for adults according 
258.19  to section 256B.0625, subdivision 25.  Effective July 1, 2004, 
258.20  medical assistance covers day treatment services for children as 
258.21  specified under section 256B.0943.  
258.22     Sec. 5.  Minnesota Statutes 2002, section 256B.0625, is 
258.23  amended by adding a subdivision to read: 
258.24     Subd. 35a.  [CHILDREN'S MENTAL HEALTH CRISIS RESPONSE 
258.25  SERVICES.] Medical assistance covers children's mental health 
258.26  crisis response services according to section 256B.0944. 
258.27     [EFFECTIVE DATE.] This section is effective July 1, 2004. 
258.28     Sec. 6.  Minnesota Statutes 2002, section 256B.0625, is 
258.29  amended by adding a subdivision to read: 
258.30     Subd. 35b.  [CHILDREN'S THERAPEUTIC SERVICES AND SUPPORTS.] 
258.31  Medical assistance covers children's therapeutic services and 
258.32  supports according to section 256B.0943. 
258.33     [EFFECTIVE DATE.] This section is effective July 1, 2004. 
258.34     Sec. 7.  Minnesota Statutes 2002, section 256B.0625, is 
258.35  amended by adding a subdivision to read: 
258.36     Subd. 45.  [SUBACUTE PSYCHIATRIC CARE FOR PERSONS UNDER 21 
259.1   YEARS OF AGE.] Medical assistance covers subacute psychiatric 
259.2   care for person under 21 years of age when: 
259.3      (1) the services meet the requirements of Code of Federal 
259.4   Regulations, title 42, section 440.160; 
259.5      (2) the facility is accredited as a psychiatric treatment 
259.6   facility by the joint commission on accreditation of healthcare 
259.7   organizations, the commission on accreditation of rehabilitation 
259.8   facilities, or the council on accreditation; and 
259.9      (3) the facility is licensed by the commissioner of health 
259.10  under section 144.50. 
259.11     [EFFECTIVE DATE.] This section is effective July 1, 2003. 
259.12     Sec. 8.  [256B.0943] [CHILDREN'S THERAPEUTIC SERVICES AND 
259.13  SUPPORTS.] 
259.14     Subdivision 1.  [DEFINITIONS.] For purposes of this 
259.15  section, the following terms have the meanings given them. 
259.16     (a) "Children's therapeutic services and supports" means 
259.17  the flexible package of mental health services for children who 
259.18  require varying therapeutic and rehabilitative levels of 
259.19  intervention.  The services are time-limited interventions that 
259.20  are delivered using various treatment modalities and 
259.21  combinations of services designed to reach treatment outcomes 
259.22  identified in the individual treatment plan. 
259.23     (b) "Clinical supervision" means the overall responsibility 
259.24  of the mental health professional for the control and direction 
259.25  of individualized treatment planning, service delivery, and 
259.26  treatment review for each client.  A mental health professional 
259.27  who is an enrolled Minnesota health care program provider 
259.28  accepts full professional responsibility for a supervisee's 
259.29  actions and decisions, instructs the supervisee in the 
259.30  supervisee's work, and oversees or directs the supervisee's work.
259.31     (c) "County board" means the county board of commissioners 
259.32  or board established under sections 402.01 to 402.10 or 471.59. 
259.33     (d) "Crisis assistance" has the meaning given in section 
259.34  245.4871, subdivision 9a. 
259.35     (e) "Culturally competent provider" means a provider who 
259.36  understands and can utilize to a client's benefit the client's 
260.1   culture when providing services to the client.  A provider may 
260.2   be culturally competent because the provider is of the same 
260.3   cultural or ethnic group as the client or the provider has 
260.4   developed the knowledge and skills through training and 
260.5   experience to provide services to culturally diverse clients. 
260.6      (f) "Day treatment program" for children means a site-based 
260.7   structured program consisting of group psychotherapy for more 
260.8   than three individuals and other intensive therapeutic services 
260.9   provided by a multidisciplinary team, under the clinical 
260.10  supervision of a mental health professional. 
260.11     (g) "Diagnostic assessment" has the meaning given in 
260.12  section 245.4871, subdivision 11. 
260.13     (h) "Direct service time" means the time that a mental 
260.14  health professional, mental health practitioner, or mental 
260.15  health behavioral aide spends face-to-face with a client and the 
260.16  client's family.  Direct service time includes time in which the 
260.17  provider obtains a client's history or provides service 
260.18  components of children's therapeutic services and supports.  
260.19  Direct service time does not include time doing work before and 
260.20  after providing direct services, including scheduling, 
260.21  maintaining clinical records, consulting with others about the 
260.22  client's mental health status, preparing reports, receiving 
260.23  clinical supervision directly related to the client's 
260.24  psychotherapy session, and revising the client's individual 
260.25  treatment plan. 
260.26     (i) "Direction of mental health behavioral aide" means the 
260.27  activities of a mental health professional or mental health 
260.28  practitioner in guiding the mental health behavioral aide in 
260.29  providing services to a client.  The direction of a mental 
260.30  health behavioral aide must be based on the client's 
260.31  individualized treatment plan and meet the requirements in 
260.32  subdivision 6, paragraph (b), clause (5). 
260.33     (j) "Emotional disturbance" has the meaning given in 
260.34  section 245.4871, subdivision 15.  For persons at least age 18 
260.35  but under age 21, mental illness has the meaning given in 
260.36  section 245.462, subdivision 20, paragraph (a). 
261.1      (k) "Individual behavioral plan" means a plan of 
261.2   intervention, treatment, and services for a child written by a 
261.3   mental health professional or mental health practitioner, under 
261.4   the clinical supervision of a mental health professional, to 
261.5   guide the work of the mental health behavioral aide. 
261.6      (l) "Individual treatment plan" has the meaning given in 
261.7   section 245.4871, subdivision 21. 
261.8      (m) "Mental health professional" means an individual as 
261.9   defined in section 245.4871, subdivision 27, clauses (1) to (5), 
261.10  or tribal vendor as defined in section 256B.02, subdivision 7, 
261.11  paragraph (b). 
261.12     (n) "Preschool program" means a day program licensed under 
261.13  Minnesota Rules, parts 9503.0005 to 9503.0175, and enrolled as a 
261.14  children's therapeutic services and supports provider to provide 
261.15  a structured treatment program to a child who is at least 33 
261.16  months old but who has not yet attended the first day of 
261.17  kindergarten. 
261.18     (o) "Skills training" means individual, family, or group 
261.19  training designed to improve the basic functioning of the child 
261.20  with emotional disturbance and the child's family in the 
261.21  activities of daily living and community living, and to improve 
261.22  the social functioning of the child and the child's family in 
261.23  areas important to the child's maintaining or reestablishing 
261.24  residency in the community.  Individual, family, and group 
261.25  skills training must: 
261.26     (1) consist of activities designed to promote skill 
261.27  development of the child and the child's family in the use of 
261.28  age-appropriate daily living skills, interpersonal and family 
261.29  relationships, and leisure and recreational services; 
261.30     (2) consist of activities that will assist the family's 
261.31  understanding of normal child development and to use parenting 
261.32  skills that will help the child with emotional disturbance 
261.33  achieve the goals outlined in the child's individual treatment 
261.34  plan; and 
261.35     (3) promote family preservation and unification, promote 
261.36  the family's integration with the community, and reduce the use 
262.1   of unnecessary out-of-home placement or institutionalization of 
262.2   children with emotional disturbance. 
262.3      Subd. 2.  [COVERED SERVICE COMPONENTS OF CHILDREN'S 
262.4   THERAPEUTIC SERVICES AND SUPPORTS.] (a) Subject to federal 
262.5   approval, medical assistance covers medically necessary 
262.6   children's therapeutic services and supports as defined in this 
262.7   section that an eligible provider entity under subdivisions 4 
262.8   and 5 provides to a client eligible under subdivision 3. 
262.9      (b) The service components of children's therapeutic 
262.10  services and supports are: 
262.11     (1) individual, family, and group psychotherapy; 
262.12     (2) individual, family, or group skills training provided 
262.13  by a mental health professional or mental health practitioner; 
262.14     (3) crisis assistance; 
262.15     (4) mental health behavioral aide services; and 
262.16     (5) direction of a mental health behavioral aide. 
262.17     (c) Service components may be combined to constitute 
262.18  therapeutic programs, including day treatment programs and 
262.19  preschool programs.  Although day treatment and preschool 
262.20  programs have specific client and provider eligibility 
262.21  requirements, medical assistance only pays for the service 
262.22  components listed in paragraph (b). 
262.23     Subd. 3.  [DETERMINATION OF CLIENT ELIGIBILITY.] A client's 
262.24  eligibility to receive children's therapeutic services and 
262.25  supports under this section shall be determined based on a 
262.26  diagnostic assessment by a mental health professional that is 
262.27  performed within 180 days of the initial start of service.  The 
262.28  diagnostic assessment must: 
262.29     (1) include current diagnoses on all five axes of the 
262.30  client's current mental health status; 
262.31     (2) determine whether a child under age 18 has a diagnosis 
262.32  of emotional disturbance or, if the person is between the ages 
262.33  of 18 and 21, whether the person has a mental illness; 
262.34     (3) document children's therapeutic services and supports 
262.35  as medically necessary to address an identified disability, 
262.36  functional impairment, and the individual client's needs and 
263.1   goals; 
263.2      (4) be used in the development of the individualized 
263.3   treatment plan; and 
263.4      (5) be completed annually until age 18.  For individuals 
263.5   between age 18 and 21, unless a client's mental health condition 
263.6   has changed markedly since the client's most recent diagnostic 
263.7   assessment, annual updating is necessary.  For the purpose of 
263.8   this section, "updating" means a written summary, including 
263.9   current diagnoses on all five axes, by a mental health 
263.10  professional of the client's current mental health status and 
263.11  service needs. 
263.12     Subd. 4.  [PROVIDER ENTITY CERTIFICATION.] (a) Effective 
263.13  July 1, 2003, the commissioner shall establish an initial 
263.14  provider entity application and certification process and 
263.15  recertification process to determine whether a provider entity 
263.16  has an administrative and clinical infrastructure that meets the 
263.17  requirements in subdivisions 5 and 6.  The commissioner shall 
263.18  recertify a provider entity at least every three years.  The 
263.19  commissioner shall establish a process for decertification of a 
263.20  provider entity that no longer meets the requirements in this 
263.21  section.  The county, tribe, and the commissioner shall be 
263.22  mutually responsible and accountable for the county's, tribe's, 
263.23  and state's part of the certification, recertification, and 
263.24  decertification processes. 
263.25     (b) For purposes of this section, a provider entity must be:
263.26     (1) an Indian health services facility or a facility owned 
263.27  and operated by a tribe or tribal organization operating as a 
263.28  638 facility under Public Law 93-368 certified by the state; 
263.29     (2) a county-operated entity certified by the state; or 
263.30     (3) a noncounty entity recommended for certification by the 
263.31  provider's host county and certified by the state. 
263.32     Subd. 5.  [PROVIDER ENTITY ADMINISTRATIVE INFRASTRUCTURE 
263.33  REQUIREMENTS.] (a) To be an eligible provider entity under this 
263.34  section, a provider entity must have an administrative 
263.35  infrastructure that establishes authority and accountability for 
263.36  decision making and oversight of functions, including finance, 
264.1   personnel, system management, clinical practice, and performance 
264.2   measurement.  The provider must have written policies and 
264.3   procedures that it reviews and updates every three years and 
264.4   distributes to staff initially and upon each subsequent update. 
264.5      (b) The administrative infrastructure written policies and 
264.6   procedures must include: 
264.7      (1) personnel procedures, including a process for:  (i) 
264.8   recruiting, hiring, training, and retention of culturally and 
264.9   linguistically competent providers; (ii) conducting a criminal 
264.10  background check on all direct service providers and volunteers; 
264.11  (iii) investigating, reporting, and acting on violations of 
264.12  ethical conduct standards; (iv) investigating, reporting, and 
264.13  acting on violations of data privacy policies that are compliant 
264.14  with federal and state laws; (v) utilizing volunteers, including 
264.15  screening applicants, training and supervising volunteers, and 
264.16  providing liability coverage for volunteers; and (vi) 
264.17  documenting that a mental health professional, mental health 
264.18  practitioner, or mental health behavioral aide meets the 
264.19  applicable provider qualification criteria, training criteria 
264.20  under subdivision 8, and clinical supervision or direction of a 
264.21  mental health behavioral aide requirements under subdivision 6; 
264.22     (2) fiscal procedures, including internal fiscal control 
264.23  practices and a process for collecting revenue that is compliant 
264.24  with federal and state laws; 
264.25     (3) if a client is receiving services from a case manager 
264.26  or other provider entity, a service coordination process that 
264.27  ensures services are provided in the most appropriate manner to 
264.28  achieve maximum benefit to the client.  The provider entity must 
264.29  ensure coordination and nonduplication of services consistent 
264.30  with county board coordination procedures established under 
264.31  section 245.4881, subdivision 5; 
264.32     (4) a performance measurement system, including monitoring 
264.33  to determine cultural appropriateness of services identified in 
264.34  the individual treatment plan, as determined by the client's 
264.35  culture, beliefs, values, and language, and family-driven 
264.36  services; and 
265.1      (5) a process to establish and maintain individual client 
265.2   records.  The client's records must include:  (i) the client's 
265.3   personal information; (ii) forms applicable to data privacy; 
265.4   (iii) the client's diagnostic assessment, updates, tests, 
265.5   individual treatment plan, and individual behavior plan, if 
265.6   necessary; (iv) documentation of service delivery as specified 
265.7   under subdivision 6; (v) telephone contacts; (vi) discharge 
265.8   plan; and (vii) if applicable, insurance information. 
265.9      Subd. 6.  [PROVIDER ENTITY CLINICAL INFRASTRUCTURE 
265.10  REQUIREMENTS.] (a) To be an eligible provider entity under this 
265.11  section, a provider entity must have a clinical infrastructure 
265.12  that utilizes diagnostic assessment, an individualized treatment 
265.13  plan, service delivery, and individual treatment plan review 
265.14  that are culturally competent, child-centered, and family-driven 
265.15  to achieve maximum benefit for the client.  The provider entity 
265.16  must review and update the clinical policies and procedures 
265.17  every three years and must distribute the policies and 
265.18  procedures to staff initially and upon each subsequent update. 
265.19     (b) The clinical infrastructure written policies and 
265.20  procedures must include policies and procedures for: 
265.21     (1) providing or obtaining a client's diagnostic assessment 
265.22  that identifies acute and chronic clinical disorders, 
265.23  co-occurring medical conditions, sources of psychological and 
265.24  environmental problems, and a functional assessment.  The 
265.25  functional assessment must clearly summarize the client's 
265.26  individual strengths and needs; 
265.27     (2) developing an individual treatment plan that is:  (i) 
265.28  based on the information in the client's diagnostic assessment; 
265.29  (ii) developed no later than the end of the first psychotherapy 
265.30  session after the completion of the client's diagnostic 
265.31  assessment by the mental health professional who provides the 
265.32  client's psychotherapy; (iii) developed through a 
265.33  child-centered, family-driven planning process that identifies 
265.34  service needs and individualized, planned, and culturally 
265.35  appropriate interventions that contain specific treatment goals 
265.36  and objectives for the client and the client's family or foster 
266.1   family; (iv) reviewed at least once every 90 days and revised, 
266.2   if necessary; and (v) signed by the client or, if appropriate, 
266.3   by the client's parent or other person authorized by statute to 
266.4   consent to mental health services for the client; 
266.5      (3) developing an individual behavior plan that documents 
266.6   services to be provided by the mental health behavioral aide.  
266.7   The individual behavior plan must include:  (i) detailed 
266.8   instructions on the service to be provided; (ii) time allocated 
266.9   to each service; (iii) methods of documenting the child's 
266.10  behavior; (iv) methods of monitoring the child's progress in 
266.11  reaching objectives; and (v) goals to increase or decrease 
266.12  targeted behavior as identified in the individual treatment 
266.13  plan; 
266.14     (4) clinical supervision of the mental health practitioner 
266.15  and mental health behavioral aide.  A mental health professional 
266.16  must document the clinical supervision the professional provides 
266.17  by cosigning individual treatment plans and making entries in 
266.18  the client's record on supervisory activities.  Clinical 
266.19  supervision does not include the authority to make or terminate 
266.20  court-ordered placements of the child.  A clinical supervisor 
266.21  must be available for urgent consultation as required by the 
266.22  individual client's needs or the situation.  Clinical 
266.23  supervision may occur individually or in a small group to 
266.24  discuss treatment and review progress toward goals.  The focus 
266.25  of clinical supervision must be the client's treatment needs and 
266.26  progress and the mental health practitioner's or behavioral 
266.27  aide's ability to provide services; 
266.28     (5) providing direction to a mental health behavioral 
266.29  aide.  For entities that employ mental health behavioral aides, 
266.30  the clinical supervisor must be employed by the provider entity 
266.31  to ensure necessary and appropriate oversight for the client's 
266.32  treatment and continuity of care.  The mental health 
266.33  professional or mental health practitioner giving direction must 
266.34  begin with the goals on the individualized treatment plan, and 
266.35  instruct the mental health behavioral aide on how to construct 
266.36  therapeutic activities and interventions that will lead to goal 
267.1   attainment.  The professional or practitioner giving direction 
267.2   must also instruct the mental health behavioral aide about the 
267.3   client's diagnosis, functional status, and other characteristics 
267.4   that are likely to affect service delivery.  Direction must also 
267.5   include determining that the mental health behavioral aide has 
267.6   the skills to interact with the client and the client's family 
267.7   in ways that convey personal and cultural respect and that the 
267.8   aide actively solicits information relevant to treatment from 
267.9   the family.  The aide must be able to clearly explain the 
267.10  activities the aide is doing with the client and the activities' 
267.11  relationship to treatment goals.  Direction is more didactic 
267.12  than is supervision and requires the professional or 
267.13  practitioner providing it to continuously evaluate the mental 
267.14  health behavioral aide's ability to carry out the activities of 
267.15  the individualized treatment plan and the individualized 
267.16  behavior plan.  When providing direction, the professional or 
267.17  practitioner must:  (i) review progress notes prepared by the 
267.18  mental health behavioral aide for accuracy and consistency with 
267.19  diagnostic assessment, treatment plan, and behavior goals and 
267.20  the professional or practitioner must approve and sign the 
267.21  progress notes; (ii) identify changes in treatment strategies, 
267.22  revise the individual behavior plan, and communicate treatment 
267.23  instructions and methodologies as appropriate to ensure that 
267.24  treatment is implemented correctly; (iii) demonstrate 
267.25  family-friendly behaviors that support healthy collaboration 
267.26  among the child, the child's family, and providers as treatment 
267.27  is planned and implemented; (iv) ensure that the mental health 
267.28  behavioral aide is able to effectively communicate with the 
267.29  child, the child's family, and the provider; and (v) record the 
267.30  results of any evaluation and corrective actions taken to modify 
267.31  the work of the mental health behavioral aide; 
267.32     (6) providing service delivery that implements the 
267.33  individual treatment plan and meets the requirements under 
267.34  subdivision 9; and 
267.35     (7) individual treatment plan review.  The review must 
267.36  determine the extent to which the services have met the goals 
268.1   and objectives in the previous treatment plan.  The review must 
268.2   assess the client's progress and ensure that services and 
268.3   treatment goals continue to be necessary and appropriate to the 
268.4   client and the client's family or foster family.  Revision of 
268.5   the individual treatment plan does not require a new diagnostic 
268.6   assessment unless the client's mental health status has changed 
268.7   markedly.  The updated treatment plan must be signed by the 
268.8   client, if appropriate, and by the client's parent or other 
268.9   person authorized by statute to give consent to the mental 
268.10  health services for the child. 
268.11     Subd. 7.  [QUALIFICATIONS OF INDIVIDUAL AND TEAM 
268.12  PROVIDERS.] (a) An individual or team provider working within 
268.13  the scope of the provider's practice or qualifications may 
268.14  provide service components of children's therapeutic services 
268.15  and supports that are identified as medically necessary in a 
268.16  client's individual treatment plan. 
268.17     (b) An individual provider and multidisciplinary team 
268.18  include: 
268.19     (1) a mental health professional as defined in subdivision 
268.20  1, paragraph (m); 
268.21     (2) a mental health practitioner as defined in section 
268.22  245.4871, subdivision 26.  The mental health practitioner must 
268.23  work under the clinical supervision of a mental health 
268.24  professional; 
268.25     (3) a mental health behavioral aide working under the 
268.26  direction of a mental health professional to implement the 
268.27  rehabilitative mental health services identified in the client's 
268.28  individual treatment plan.  A level I mental health behavioral 
268.29  aide must:  (i) be at least 18 years old; (ii) have a high 
268.30  school diploma or general equivalency diploma (GED) or two years 
268.31  of experience as a primary caregiver to a child with severe 
268.32  emotional disturbance within the previous ten years; and (iii) 
268.33  meet preservices and continuing education requirements under 
268.34  subdivision 8.  A level II mental health behavioral aide must: 
268.35  (i) be at least 18 years old; (ii) have an associate or 
268.36  bachelor's degree or 4,000 hours of experience in delivering 
269.1   clinical services in the treatment of mental illness concerning 
269.2   children or adolescents; and (iii) meet preservice and 
269.3   continuing education requirements in subdivision 8; 
269.4      (4) a preschool program multidisciplinary team that 
269.5   includes at least one mental health professional and one or more 
269.6   of the following individuals under the clinical supervision of a 
269.7   mental health professional:  (i) a mental health practitioner; 
269.8   or (ii) a program person, including a teacher, assistant 
269.9   teacher, or aide, who meets the qualifications and training 
269.10  standards of a level I mental health behavioral aide; or 
269.11     (5) a day treatment multidisciplinary team that includes at 
269.12  least one mental health professional and one mental health 
269.13  practitioner. 
269.14     Subd. 8.  [REQUIRED PRESERVICE AND CONTINUING 
269.15  EDUCATION.] (a) A provider entity shall establish a plan to 
269.16  provide preservice and continuing education for staff.  The plan 
269.17  must clearly describe the type of training necessary to maintain 
269.18  current skills and obtain new skills, and that relates to the 
269.19  provider entity's goals and objectives for services offered. 
269.20     (b) A provider that employs a mental health behavioral aide 
269.21  under this section must require the mental health behavioral 
269.22  aide to complete 30 hours of preservice training.  The 
269.23  preservice training must include topics specified in Minnesota 
269.24  Rules, part 9535.4068, subparts 1 and 2, and parent team 
269.25  training.  The preservice training must include 15 hours of 
269.26  in-person training of a mental health behavioral aide in mental 
269.27  health services delivery and eight hours of parent team 
269.28  training.  Components of parent team training include:  
269.29     (1) partnering with parents; 
269.30     (2) fundamentals of family support; 
269.31     (3) fundamentals of policy and decision making; 
269.32     (4) defining equal partnership; 
269.33     (5) complexities of the parent and service provider 
269.34  partnership in multiple service delivery systems due to system 
269.35  strengths and weaknesses; 
269.36     (6) sibling impacts; 
270.1      (7) support networks; and 
270.2      (8) community resources. 
270.3      (c) A provider entity that employs a mental health 
270.4   practitioner and a mental health behavioral aide to provide 
270.5   children's therapeutic services and supports under this section 
270.6   must require the mental health practitioner and mental health 
270.7   behavioral aide to complete 20 hours of continuing education 
270.8   every two calendar years.  The continuing education must be 
270.9   related to serving the needs of a child with emotional 
270.10  disturbance in the child's home environment and the child's 
270.11  family.  The topics covered in orientation and training must 
270.12  conform to Minnesota Rules, part 9535.4068. 
270.13     (d) The provider entity must document the mental health 
270.14  practitioner's or mental health behavioral aide's annual 
270.15  completion of the required continuing education.  The 
270.16  documentation must include the date, subject, and number of 
270.17  hours of the continuing education, and attendance records, as 
270.18  verified by the staff member's signature, job title, and the 
270.19  instructor's name.  The provider entity must keep documentation 
270.20  for each employee, including records of attendance at 
270.21  professional workshops and conferences, at a central location 
270.22  and in the employee's personnel file. 
270.23     Subd. 9.  [SERVICE DELIVERY CRITERIA.] (a) In delivering 
270.24  services under this section, a certified provider entity must 
270.25  ensure that: 
270.26     (1) each individual provider's caseload size permits the 
270.27  provider to deliver services to both clients with severe, 
270.28  complex needs and clients with less intensive needs.  The 
270.29  provider's caseload size should reasonably enable the provider 
270.30  to play an active role in service planning, monitoring, and 
270.31  delivering services to meet the client's and client's family's 
270.32  needs, as specified in each client's individual treatment plan; 
270.33     (2) site-based programs, including day treatment and 
270.34  preschool programs, provide staffing and facilities to ensure 
270.35  the client's health, safety, and protection of rights, and that 
270.36  the programs are able to implement each client's individual 
271.1   treatment plan; 
271.2      (3) a day treatment program is provided to a group of 
271.3   clients by a multidisciplinary staff under the clinical 
271.4   supervision of a mental health professional.  The day treatment 
271.5   program must be provided in and by:  (i) an outpatient hospital 
271.6   accredited by the joint commission on accreditation of health 
271.7   organizations and licensed under sections 144.50 to 144.55; (ii) 
271.8   a community mental health center under section 245.62; and (iii) 
271.9   an entity that is under contract with the county board to 
271.10  operate a program that meets the requirements of sections 
271.11  245.4712, subdivision 2, and 245.4884, subdivision 2, and 
271.12  Minnesota Rules, parts 9505.0170 to 9505.0475. The day treatment 
271.13  program must stabilize the client's mental health status while 
271.14  developing and improving the client's independent living and 
271.15  socialization skills.  The goal of the day treatment program 
271.16  must be to reduce or relieve the effects of mental illness and 
271.17  provide training to enable the client to live in the community.  
271.18  The program must be available at least one day a week for a 
271.19  minimum three-hour time block.  The three-hour time block must 
271.20  include at least one hour, but no more than two hours, of 
271.21  individual or group psychotherapy.  The remainder of the 
271.22  three-hour time block may include recreation therapy, 
271.23  socialization therapy, or independent living skills therapy, but 
271.24  only if the therapies are included in the client's individual 
271.25  treatment plan.  Day treatment programs are not part of 
271.26  inpatient or residential treatment services; and 
271.27     (4) a preschool program is a structured treatment program 
271.28  offered to a child who is at least 33 months old, but who has 
271.29  not yet reached the first day of kindergarten, by a preschool 
271.30  multidisciplinary team in a day program licensed under Minnesota 
271.31  Rules, parts 9503.0005 to 9503.0175.  The program must be 
271.32  available at least one day a week for a minimum two-hour time 
271.33  block.  The structured treatment program may include individual 
271.34  or group psychotherapy and recreation therapy, socialization 
271.35  therapy, or independent living skills therapy, if included in 
271.36  the client's individual treatment plan. 
272.1      (b) A provider entity must delivery the service components 
272.2   of children's therapeutic services and supports in compliance 
272.3   with the following requirements: 
272.4      (1) individual, family, and group psychotherapy must be 
272.5   delivered as specified in Minnesota Rules, parts 9505.0523; 
272.6      (2) individual, family, or group skills training must be 
272.7   provided by a mental health professional or a mental health 
272.8   practitioner who has a consulting relationship with a mental 
272.9   health professional who accepts full professional responsibility 
272.10  for the training; 
272.11     (3) crisis assistance must be an intense, time-limited, and 
272.12  designed to resolve or stabilize crisis through arrangements for 
272.13  direct intervention and support services to the child and the 
272.14  child's family.  Crisis assistance must utilize resources 
272.15  designed to address abrupt or substantial changes in the 
272.16  functioning of the child or the child's family as evidenced by a 
272.17  sudden change in behavior with negative consequences for well 
272.18  being, a loss of usual coping mechanisms, or the presentation of 
272.19  danger to self or others; 
272.20     (4) medically necessary services that are provided by a 
272.21  mental health behavioral aide must be designed to improve the 
272.22  functioning of the child and support the family in activities of 
272.23  daily and community living.  A mental health behavioral aide 
272.24  must document the delivery of services in written progress 
272.25  notes.  The mental health behavioral aide must implement goals 
272.26  in the treatment plan for the child's emotional disturbance that 
272.27  allow the child to acquire developmentally and therapeutically 
272.28  appropriate daily living skills, social skills, and leisure and 
272.29  recreational skills through targeted activities.  These 
272.30  activities may include: 
272.31     (i) assisting a child as needed with skills development in 
272.32  dressing, eating, and toileting; 
272.33     (ii) assisting, monitoring, and guiding the child to 
272.34  complete tasks, including facilitating the child's participation 
272.35  in medical appointments; 
272.36     (iii) observing the child and intervening to redirect the 
273.1   child's inappropriate behavior; 
273.2      (iv) assisting the child in using age-appropriate 
273.3   self-management skills as related to the child's emotional 
273.4   disorder or mental illness, including problem solving, decision 
273.5   making, communication, conflict resolution, anger management, 
273.6   social skills, and recreational skills; 
273.7      (v) implementing deescalation techniques as recommended by 
273.8   the mental health professional; 
273.9      (vi) implementing any other mental health service that the 
273.10  mental health professional has approved as being within the 
273.11  scope of the behavioral aide's duties; or 
273.12     (vii) assisting the parents to develop and use parenting 
273.13  skills that help the child achieve the goals outlined in the 
273.14  child's individual treatment plan or individual behavioral 
273.15  plan.  Parenting skills must be directed exclusively to the 
273.16  child's treatment; and 
273.17     (5) direction of a mental health behavioral aide must 
273.18  include the following: 
273.19     (i) a total of one hour of on-site observation by a mental 
273.20  health professional during the first 12 hours of service 
273.21  provided to a child; 
273.22     (ii) ongoing on-site observation by a mental health 
273.23  professional or mental health practitioner for at least a total 
273.24  of one hour during every 40 hours of service provided to a 
273.25  child; and 
273.26     (iii) immediate accessibility of the mental health 
273.27  professional or mental health practitioner to the mental health 
273.28  behavioral aide during service provision. 
273.29     Subd. 10.  [SERVICE AUTHORIZATION.] The commissioner shall 
273.30  publish in the State Register a list of health services that 
273.31  require prior authorization, as well as the criteria and 
273.32  standards used to select health services on the list.  The list 
273.33  and the criteria and standards used to formulate the list are 
273.34  not subject to the requirements of sections 14.001 to 14.69.  
273.35  The commissioner's decision on whether prior authorization is 
273.36  required for a health service is not subject to administrative 
274.1   appeal. 
274.2      Subd. 11.  [DOCUMENTATION AND BILLING.] (a) A provider 
274.3   entity must document the services it provides under this 
274.4   section.  The provider entity must ensure that the entity's 
274.5   documentation standards meet the requirements of federal and 
274.6   state laws.  Services billed under this section that are not 
274.7   documented according to this subdivision shall be subject to 
274.8   monetary recovery by the commissioner. 
274.9      (b) An individual mental health provider must promptly 
274.10  document the following in a client's record after providing 
274.11  services to the client: 
274.12     (1) each occurrence of the client's mental health service, 
274.13  including the date, type, length, and scope of the service; 
274.14     (2) the name of the person who gave the service; 
274.15     (3) contact made with other persons interested in the 
274.16  client, including representatives of the courts, corrections 
274.17  systems, or schools.  The provider must document the name and 
274.18  date of each contact; 
274.19     (4) any contact made with the client's other mental health 
274.20  providers, case manager, family members, primary caregiver, 
274.21  legal representative, or the reason the provider did not contact 
274.22  the client's family members, primary caregiver, or legal 
274.23  representative, if applicable; and 
274.24     (5) required clinical supervision, as appropriate. 
274.25     Subd. 12.  [EXCLUDED SERVICES.] The following services are 
274.26  not eligible for medical assistance payment as children's 
274.27  therapeutic services and supports: 
274.28     (1) service components of children's therapeutic services 
274.29  and supports simultaneously provided by more than one provider 
274.30  entity unless prior authorization is obtained; 
274.31     (2) children's therapeutic services and supports provided 
274.32  in violation of medical assistance policy in Minnesota Rules, 
274.33  part 9505.0220; 
274.34     (3) mental health behavioral aide services provided by a 
274.35  personal care assistant who is not qualified as a mental health 
274.36  behavioral aide and employed by a certified children's 
275.1   therapeutic services and supports provider entity; 
275.2      (4) services that are the responsibility of a residential 
275.3   or program license holder, including foster care providers under 
275.4   the terms of a service agreement or administrative rules 
275.5   governing licensure; 
275.6      (5) up to 15 hours of children's therapeutic services and 
275.7   supports provided within a six-month period to a child with 
275.8   severe emotional disturbance who is residing in a hospital, a 
275.9   group home as defined in Minnesota Rules, part 9560.0520, 
275.10  subpart 4, a residential treatment facility licensed under 
275.11  Minnesota Rules, parts 9545.0900 to 9545.1090, a regional 
275.12  treatment center, or other institutional group setting or who is 
275.13  participating in a program of partial hospitalization are 
275.14  eligible for medical assistance payment if part of the discharge 
275.15  plan; and 
275.16     (6) adjunctive activities that may be offered by a provider 
275.17  entity but are not otherwise covered by medical assistance, 
275.18  including: 
275.19     (i) a service that is primarily recreation oriented or that 
275.20  is provided in a setting that is not medically supervised.  This 
275.21  includes sports activities, exercise groups, activities such as 
275.22  craft hours, leisure time, social hours, meal or snack time, 
275.23  trips to community activities, and tours; 
275.24     (ii) a social or educational service that does not have or 
275.25  cannot reasonably be expected to have a therapeutic outcome 
275.26  related to the client's emotional disturbance; 
275.27     (iii) consultation with other providers or service agency 
275.28  staff about the care or progress of a client; 
275.29     (iv) prevention or education programs provided to the 
275.30  community; and 
275.31     (v) treatment for clients with primary diagnoses of alcohol 
275.32  or other drug abuse. 
275.33     [EFFECTIVE DATE.] Unless otherwise specified, this section 
275.34  is effective July 1, 2004. 
275.35     Sec. 9.  [256B.0944] [COVERED SERVICES; CHILDREN'S MENTAL 
275.36  HEALTH CRISIS RESPONSE SERVICES.] 
276.1      Subdivision 1.  [DEFINITIONS.] For purposes of this 
276.2   section, the following terms have the meanings given them. 
276.3      (a) "Mental health crisis" means a child's behavioral, 
276.4   emotional, or psychiatric situation that, but for the provision 
276.5   of crisis response services to the child, would likely result in 
276.6   significantly reduced levels of functioning in primary 
276.7   activities of daily living, an emergency situation, or the 
276.8   child's placement in a more restrictive setting, including, but 
276.9   not limited to, inpatient hospitalization. 
276.10     (b) "Mental health emergency" means a child's behavioral, 
276.11  emotional, or psychiatric situation that causes an immediate 
276.12  need for mental health services and is consistent with section 
276.13  62Q.55.  A physician, mental health professional, or crisis 
276.14  mental health practitioner determines a mental health crisis or 
276.15  emergency for medical assistance reimbursement with input from 
276.16  the client and the client's family, if possible. 
276.17     (c) "Mental health crisis assessment" means an immediate 
276.18  face-to-face assessment by a physician, mental health 
276.19  professional, or mental health practitioner under the clinical 
276.20  supervision of a mental health professional, following a 
276.21  screening that suggests the child may be experiencing a mental 
276.22  health crisis or mental health emergency situation. 
276.23     (d) "Mental health mobile crisis intervention services" 
276.24  means face-to-face, short-term intensive mental health services 
276.25  initiated during a mental health crisis or mental health 
276.26  emergency.  Mental health mobile crisis services must help the 
276.27  recipient cope with immediate stressors, identify and utilize 
276.28  available resources and strengths, and begin to return to the 
276.29  recipient's baseline level of functioning.  Mental health mobile 
276.30  services must be provided on-site by a mobile crisis 
276.31  intervention team outside of an emergency room, urgent care, or 
276.32  an inpatient hospital setting. 
276.33     (e) "Mental health crisis stabilization services" means 
276.34  individualized mental health services provided to a recipient 
276.35  following crisis intervention services that are designed to 
276.36  restore the recipient to the recipient's prior functional 
277.1   level.  The individual treatment plan recommending mental health 
277.2   crisis stabilization must be completed by the intervention team 
277.3   or by staff after an inpatient or urgent care visit.  Mental 
277.4   health crisis stabilization services may be provided in the 
277.5   recipient's home, the home of a family member or friend of the 
277.6   recipient, schools, another community setting, or a short-term 
277.7   supervised, licensed residential program if the service is not 
277.8   included in the facility's cost pool or per diem.  Mental health 
277.9   crisis stabilization is not reimbursable when provided as part 
277.10  of a partial hospitalization or day treatment program. 
277.11     Subd. 2.  [MEDICAL ASSISTANCE COVERAGE.] Medical assistance 
277.12  covers medically necessary children's mental health crisis 
277.13  response services, subject to federal approval, if provided to 
277.14  an eligible recipient under subdivision 3, by a qualified 
277.15  provider entity under subdivision 4 or a qualified individual 
277.16  provider working within the provider's scope of practice, and 
277.17  identified in the recipient's individual crisis treatment plan 
277.18  under subdivision 8. 
277.19     Subd. 3.  [ELIGIBILITY.] An eligible recipient is an 
277.20  individual who: 
277.21     (1) is eligible for medical assistance; 
277.22     (2) is under age 18 or between the ages of 18 and 21; 
277.23     (3) is screened as possibly experiencing a mental health 
277.24  crisis or mental health emergency where a mental health crisis 
277.25  assessment is needed; 
277.26     (4) is assessed as experiencing a mental health crisis or 
277.27  mental health emergency, and mental health mobile crisis 
277.28  intervention or mental health crisis stabilization services are 
277.29  determined to be medically necessary; and 
277.30     (5) meets the criteria for emotional disturbance or mental 
277.31  illness. 
277.32     Subd. 4.  [PROVIDER ENTITY STANDARDS.] (a) A crisis 
277.33  intervention and crisis stabilization provider entity must meet 
277.34  the administrative and clinical standards specified in section 
277.35  256B.0943, subdivisions 5 and 6, meet the standards listed in 
277.36  paragraph (b), and be: 
278.1      (1) an Indian health service facility or facility owned and 
278.2   operated by a tribe or a tribal organization operating under 
278.3   Public Law 93-638 as a 638 facility; 
278.4      (2) a county board-operated entity; or 
278.5      (3) a provider entity that is under contract with the 
278.6   county board in the county where the potential crisis or 
278.7   emergency is occurring. 
278.8      (b) The children's mental health crisis response services 
278.9   provider entity must: 
278.10     (1) ensure that mental health crisis assessment and mobile 
278.11  crisis intervention services are available 24 hours a day, seven 
278.12  days a week; 
278.13     (2) directly provide the services or, if services are 
278.14  subcontracted, the provider entity must maintain clinical 
278.15  responsibility for services and billing; 
278.16     (3) ensure that crisis intervention services are provided 
278.17  in a manner consistent with sections 245.487 to 245.4888; and 
278.18     (4) develop and maintain written policies and procedures 
278.19  regarding service provision that include safety of staff and 
278.20  recipients in high-risk situations. 
278.21     Subd. 5.  [MOBILE CRISIS INTERVENTION STAFF 
278.22  QUALIFICATIONS.] (a) To provide children's mental health mobile 
278.23  crisis intervention services, a mobile crisis intervention team 
278.24  must include: 
278.25     (1) at least two mental health professionals as defined in 
278.26  section 256B.0943, subdivision 1, paragraph (m); or 
278.27     (2) a combination of at least one mental health 
278.28  professional and one mental health practitioner as defined in 
278.29  section 245.4871, subdivision 26, with the required mental 
278.30  health crisis training and under the clinical supervision of a 
278.31  mental health professional on the team. 
278.32     (b) The team must have at least two people with at least 
278.33  one member providing on-site crisis intervention services when 
278.34  needed.  Team members must be experienced in mental health 
278.35  assessment, crisis intervention techniques, and clinical 
278.36  decision making under emergency conditions and have knowledge of 
279.1   local services and resources.  The team must recommend and 
279.2   coordinate the team's services with appropriate local resources, 
279.3   including as the county social services agency, mental health 
279.4   service providers, and local law enforcement, if necessary. 
279.5      Subd. 6.  [INITIAL SCREENING, CRISIS ASSESSMENT, AND MOBILE 
279.6   INTERVENTION TREATMENT PLANNING.] (a) Before initiating mobile 
279.7   crisis intervention services, a screening of the potential 
279.8   crisis situation must be conducted.  The screening may use the 
279.9   resources of crisis assistance and emergency services as defined 
279.10  in sections 245.4871, subdivision 14, and 245.4879, subdivisions 
279.11  1 and 2.  The screening must gather information, determine 
279.12  whether a crisis situation exists, identify the parties 
279.13  involved, and determine an appropriate response. 
279.14     (b) If a crisis exists, a crisis assessment must be 
279.15  completed.  A crisis assessment must evaluate any immediate 
279.16  needs for which emergency services are needed and, as time 
279.17  permits, the recipient's current life situation, sources of 
279.18  stress, mental health problems and symptoms, strengths, cultural 
279.19  considerations, support network, vulnerabilities, and current 
279.20  functioning. 
279.21     (c) If the crisis assessment determines mobile crisis 
279.22  intervention services are needed, the intervention services must 
279.23  be provided promptly.  As the opportunity presents itself during 
279.24  the intervention, at least two members of the mobile crisis 
279.25  intervention team must confer directly or by telephone about the 
279.26  assessment, treatment plan, and actions taken and needed.  At 
279.27  least one of the team members must be on site providing crisis 
279.28  intervention services.  If providing on-site crisis intervention 
279.29  services, a mental health practitioner must seek clinical 
279.30  supervision as required under subdivision 9. 
279.31     (d) The mobile crisis intervention team must develop an 
279.32  initial, brief crisis treatment plan as soon as appropriate but 
279.33  no later than 24 hours after the initial face-to-face 
279.34  intervention.  The plan must address the needs and problems 
279.35  noted in the crisis assessment and include measurable short-term 
279.36  goals, cultural considerations, and frequency and type of 
280.1   services to be provided to achieve the goals and reduce or 
280.2   eliminate the crisis.  The crisis treatment plan must be updated 
280.3   as needed to reflect current goals and services.  The team must 
280.4   involve the client and the client's family in developing and 
280.5   implementing the plan. 
280.6      (e) The team must document in progress notes which 
280.7   short-term goals have been met and when no further crisis 
280.8   intervention services are required. 
280.9      (f) If the client's crisis is stabilized, but the client 
280.10  needs a referral for mental health crisis stabilization services 
280.11  or to other services, the team must provide a referral to these 
280.12  services.  If the recipient has a case manager, planning for 
280.13  other services must be coordinated with the case manager. 
280.14     Subd. 7.  [CRISIS STABILIZATION SERVICES.] (a) Crisis 
280.15  stabilization services must be provided by a mental health 
280.16  professional or a mental health practitioner who works under the 
280.17  clinical supervision of a mental health professional and for a 
280.18  crisis stabilization services provider entity, and must meet the 
280.19  following standards: 
280.20     (1) a crisis stabilization treatment plan must be developed 
280.21  which meets the criteria in subdivision 8; 
280.22     (2) services must be delivered according to the treatment 
280.23  plan and include face-to-face contact with the recipient by 
280.24  qualified staff for further assessment, help with referrals, 
280.25  updating the crisis stabilization treatment plan, supportive 
280.26  counseling, skills training, and collaboration with other 
280.27  service providers in the community; and 
280.28     (3) mental health practitioners must have completed at 
280.29  least 30 hours of training in crisis intervention and 
280.30  stabilization during the past two years. 
280.31     Subd. 8.  [TREATMENT PLAN.] (a) The individual crisis 
280.32  stabilization treatment plan must include, at a minimum: 
280.33     (1) a list of problems identified in the assessment; 
280.34     (2) a list of the recipient's strengths and resources; 
280.35     (3) concrete, measurable short-term goals and tasks to be 
280.36  achieved, including time frames for achievement of the goals; 
281.1      (4) specific objectives directed toward the achievement of 
281.2   each goal; 
281.3      (5) documentation of the participants involved in the 
281.4   service planning; 
281.5      (6) planned frequency and type of services initiated; 
281.6      (7) a crisis response action plan if a crisis should occur; 
281.7   and 
281.8      (8) clear progress notes on the outcome of goals. 
281.9      (b) The client, if clinically appropriate, must be a 
281.10  participant in the development of the crisis stabilization 
281.11  treatment plan.  The client or the client's legal guardian must 
281.12  sign the service plan or documentation must be provided why this 
281.13  was not possible.  A copy of the plan must be given to the 
281.14  client and the client's legal guardian.  The plan should include 
281.15  services arranged, including specific providers where applicable.
281.16     (c) A treatment plan must be developed by a mental health 
281.17  professional or mental health practitioner under the clinical 
281.18  supervision of a mental health professional.  A written plan 
281.19  must be completed within 24 hours of beginning services with the 
281.20  client. 
281.21     Subd. 9.  [SUPERVISION.] (a) A mental health practitioner 
281.22  may provide crisis assessment and mobile crisis intervention 
281.23  services if the following clinical supervision requirements are 
281.24  met: 
281.25     (1) the mental health provider entity must accept full 
281.26  responsibility for the services provided; 
281.27     (2) the mental health professional of the provider entity, 
281.28  who is an employee or under contract with the provider entity, 
281.29  must be immediately available by telephone or in person for 
281.30  clinical supervision; 
281.31     (3) the mental health professional is consulted, in person 
281.32  or by telephone, during the first three hours when a mental 
281.33  health practitioner provides on-site service; and 
281.34     (4) the mental health professional must review and approve 
281.35  the tentative crisis assessment and crisis treatment plan, 
281.36  document the consultation, and sign the crisis assessment and 
282.1   treatment plan within the next business day. 
282.2      (b) If the mobile crisis intervention services continue 
282.3   into a second calendar day, a mental health professional must 
282.4   contact the client face-to-face on the second day to provide 
282.5   services and update the crisis treatment plan.  The on-site 
282.6   observation must be documented in the client's record and signed 
282.7   by the mental health professional. 
282.8      Subd. 10.  [CLIENT RECORD.] The provider must maintain a 
282.9   file for each client that complies with the requirements under 
282.10  section 256B.0943, subdivision 11, and contains the following 
282.11  information: 
282.12     (1) individual crisis treatment plans signed by the 
282.13  recipient, mental health professional, and mental health 
282.14  practitioner who developed the crisis treatment plan, or if the 
282.15  recipient refused to sign the plan, the date and reason stated 
282.16  by the recipient for not signing the plan; 
282.17     (2) signed release of information forms; 
282.18     (3) recipient health information and current medications; 
282.19     (4) emergency contacts for the recipient; 
282.20     (5) case records that document the date of service, place 
282.21  of service delivery, signature of the person providing the 
282.22  service, and the nature, extent, and units of service.  Direct 
282.23  or telephone contact with the recipient's family or others 
282.24  should be documented; 
282.25     (6) required clinical supervision by mental health 
282.26  professionals; 
282.27     (7) summary of the recipient's case reviews by staff; and 
282.28     (8) any written information by the recipient that the 
282.29  recipient wants in the file. 
282.30     Subd. 11.  [EXCLUDED SERVICES.] The following services are 
282.31  excluded from reimbursement under this section: 
282.32     (1) room and board services; 
282.33     (2) services delivered to a recipient while admitted to an 
282.34  inpatient hospital; 
282.35     (3) transportation services under children's mental health 
282.36  crisis response service; 
283.1      (4) services provided and billed by a provider who is not 
283.2   enrolled under medical assistance to provide children's mental 
283.3   health crisis response services; 
283.4      (5) crisis response services provided by a residential 
283.5   treatment center to clients in their facility; 
283.6      (6) services performed by volunteers; 
283.7      (7) direct billing of time spent "on call" when not 
283.8   delivering services to a recipient; 
283.9      (8) provider service time included in case management 
283.10  reimbursement; 
283.11     (9) outreach services to potential recipients; and 
283.12     (10) a mental health service that is not medically 
283.13  necessary. 
283.14     [EFFECTIVE DATE.] This section is effective July 1, 2004. 
283.15     Sec. 10.  Minnesota Statutes 2002, section 256B.0945, 
283.16  subdivision 2, is amended to read: 
283.17     Subd. 2.  [COVERED SERVICES.] All services must be included 
283.18  in a child's individualized treatment or multiagency plan of 
283.19  care as defined in chapter 245.  
283.20     (a) For facilities that are institutions for mental 
283.21  diseases according to statute and regulation or are not 
283.22  institutions for mental diseases but are approved by the 
283.23  commissioner to provide services under this paragraph, medical 
283.24  assistance covers the full contract rate, including room and 
283.25  board if the services meet the requirements of Code of Federal 
283.26  Regulations, title 42, section 440.160.  
283.27     (b) For facilities that are not institutions for mental 
283.28  diseases according to federal statute and regulation and are not 
283.29  providing services under paragraph (a), medical assistance 
283.30  covers mental health related services that are required to be 
283.31  provided by a residential facility under section 245.4882 and 
283.32  administrative rules promulgated thereunder, except for room and 
283.33  board. 
283.34     Sec. 11.  Minnesota Statutes 2002, section 256B.0945, 
283.35  subdivision 4, is amended to read: 
283.36     Subd. 4.  [PAYMENT RATES.] (a) Notwithstanding sections 
284.1   256B.19 and 256B.041, payments to counties for residential 
284.2   services provided by a residential facility shall only be made 
284.3   of federal earnings for services provided under this section, 
284.4   and the nonfederal share of costs for services provided under 
284.5   this section shall be paid by the county from sources other than 
284.6   federal funds or funds used to match other federal funds.  
284.7   Payment to counties for services provided according to 
284.8   subdivision 2, paragraph (a), shall be the federal share of the 
284.9   contract rate.  Payment to counties for services provided 
284.10  according to subdivision 2, paragraph (b), this section shall be 
284.11  a proportion of the per day contract rate that relates to 
284.12  rehabilitative mental health services and shall not include 
284.13  payment for costs or services that are billed to the IV-E 
284.14  program as room and board.  
284.15     (b) The commissioner shall set aside a portion not to 
284.16  exceed five percent of the federal funds earned under this 
284.17  section to cover the state costs of administering this section.  
284.18  Any unexpended funds from the set-aside shall be distributed to 
284.19  the counties in proportion to their earnings under this section. 
284.20     Sec. 12.  Minnesota Statutes 2002, section 257.05, is 
284.21  amended to read: 
284.22     257.05 [IMPORTATION.] 
284.23     Subdivision 1.  [NOTIFICATION AND DUTIES OF COMMISSIONER.] 
284.24  No person, except as provided by subdivision subdivisions 2 and 
284.25  3, shall bring or send into the state any child for the purpose 
284.26  of placing the child out or procuring the child's adoption 
284.27  without first obtaining the consent of the commissioner of human 
284.28  services, and such person shall conform to all rules of the 
284.29  commissioner of human services and laws of the state of 
284.30  Minnesota relating to protection of children in foster care.  
284.31  Before any child shall be brought or sent into the state for the 
284.32  purpose of being placed in foster care, the person bringing or 
284.33  sending the child into the state shall first notify the 
284.34  commissioner of human services of the person's intention, and 
284.35  shall obtain from the commissioner of human services a 
284.36  certificate stating that the home in which the child is to be 
285.1   placed is, in the opinion of the commissioner of human services, 
285.2   a suitable adoptive home for the child if legal adoption is 
285.3   contemplated or that the home meets the commissioner's 
285.4   requirements for licensing of foster homes if legal adoption is 
285.5   not contemplated.  The commissioner is responsible for 
285.6   protecting the child's interests so long as the child remains 
285.7   within the state and until the child reaches the age of 18 or is 
285.8   legally adopted.  Notice to the commissioner shall state the 
285.9   name, age, and personal description of the child, and the name 
285.10  and address of the person with whom the child is to be placed, 
285.11  and such other information about the child and the foster home 
285.12  as may be required by the commissioner. 
285.13     Subd. 2.  [EXEMPT RELATIVES.] A parent, stepparent, 
285.14  grandparent, brother, sister and aunt or uncle in the first 
285.15  degree of the minor child who bring a child into the state for 
285.16  placement within their own home shall be exempt from the 
285.17  provisions of subdivision 1.  This relationship may be by blood 
285.18  or marriage.  
285.19     Subd. 3.  [INTERNATIONAL ADOPTIONS.] Subject to state and 
285.20  federal laws and rules, adoption agencies licensed under chapter 
285.21  245A and Minnesota Rules, parts 9545.0755 to 9545.0845, and 
285.22  county social services agencies are authorized to certify that 
285.23  the prospective adoptive home of a child brought into the state 
285.24  from another country for the purpose of adoption is a suitable 
285.25  home, or that the home meets the commissioner's requirements for 
285.26  licensing of foster homes if legal adoption is not contemplated. 
285.27     Sec. 13.  Minnesota Statutes 2002, section 259.67, 
285.28  subdivision 4, is amended to read: 
285.29     Subd. 4.  [ELIGIBILITY CONDITIONS.] (a) The placing agency 
285.30  shall use the AFDC requirements as specified in federal law as 
285.31  of July 16, 1996, when determining the child's eligibility for 
285.32  adoption assistance under title IV-E of the Social Security 
285.33  Act.  If the child does not qualify, the placing agency shall 
285.34  certify a child as eligible for state funded adoption assistance 
285.35  only if the following criteria are met:  
285.36     (1) Due to the child's characteristics or circumstances it 
286.1   would be difficult to provide the child an adoptive home without 
286.2   adoption assistance.  
286.3      (2)(i) A placement agency has made reasonable efforts to 
286.4   place the child for adoption without adoption assistance, but 
286.5   has been unsuccessful; or 
286.6      (ii) the child's licensed foster parents desire to adopt 
286.7   the child and it is determined by the placing agency that the 
286.8   adoption is in the best interest of the child. 
286.9      (3) The child has been a ward of the commissioner or, a 
286.10  Minnesota-licensed child-placing agency, or a tribal social 
286.11  service agency of Minnesota recognized by the Secretary of the 
286.12  Interior.  
286.13     (b) For purposes of this subdivision, the characteristics 
286.14  or circumstances that may be considered in determining whether a 
286.15  child is a child with special needs under United States Code, 
286.16  title 42, chapter 7, subchapter IV, part E, or meets the 
286.17  requirements of paragraph (a), clause (1), are the following: 
286.18     (1) The child is a member of a sibling group to be placed 
286.19  as one unit in which at least one sibling is older than 15 
286.20  months of age or is described in clause (2) or (3). 
286.21     (2) The child has documented physical, mental, emotional, 
286.22  or behavioral disabilities. 
286.23     (3) The child has a high risk of developing physical, 
286.24  mental, emotional, or behavioral disabilities. 
286.25     (4) The child is adopted according to tribal law without a 
286.26  termination of parental rights or relinquishment, provided that 
286.27  the tribe has documented the valid reason why the child cannot 
286.28  or should not be returned to the home of the child's parent. 
286.29     (c) When a child's eligibility for adoption assistance is 
286.30  based upon the high risk of developing physical, mental, 
286.31  emotional, or behavioral disabilities, payments shall not be 
286.32  made under the adoption assistance agreement unless and until 
286.33  the potential disability manifests itself as documented by an 
286.34  appropriate health care professional. 
286.35     Sec. 14.  Minnesota Statutes 2002, section 260B.157, 
286.36  subdivision 1, is amended to read: 
287.1      Subdivision 1.  [INVESTIGATION.] Upon request of the court 
287.2   the local social services agency or probation officer shall 
287.3   investigate the personal and family history and environment of 
287.4   any minor coming within the jurisdiction of the court under 
287.5   section 260B.101 and shall report its findings to the court.  
287.6   The court may order any minor coming within its jurisdiction to 
287.7   be examined by a duly qualified physician, psychiatrist, or 
287.8   psychologist appointed by the court.  
287.9      The court shall have a chemical use assessment conducted 
287.10  when a child is (1) found to be delinquent for violating a 
287.11  provision of chapter 152, or for committing a felony-level 
287.12  violation of a provision of chapter 609 if the probation officer 
287.13  determines that alcohol or drug use was a contributing factor in 
287.14  the commission of the offense, or (2) alleged to be delinquent 
287.15  for violating a provision of chapter 152, if the child is being 
287.16  held in custody under a detention order.  The assessor's 
287.17  qualifications and the assessment criteria shall comply with 
287.18  Minnesota Rules, parts 9530.6600 to 9530.6655.  If funds under 
287.19  chapter 254B are to be used to pay for the recommended 
287.20  treatment, the assessment and placement must comply with all 
287.21  provisions of Minnesota Rules, parts 9530.6600 to 9530.6655 and 
287.22  9530.7000 to 9530.7030.  The commissioner of human services 
287.23  shall reimburse the court for the cost of the chemical use 
287.24  assessment, up to a maximum of $100. 
287.25     The court shall have a children's mental health screening 
287.26  conducted when a child is found to be delinquent.  The screening 
287.27  shall be conducted with a screening instrument approved by the 
287.28  commissioner of human services and shall be conducted by a 
287.29  mental health practitioner as defined in section 245.4871, 
287.30  subdivision 26, or a probation officer who is trained in the use 
287.31  of the screening instrument.  If the screening indicates a need 
287.32  for assessment, the local social services agency, in 
287.33  consultation with the child's family, shall have a diagnostic 
287.34  assessment conducted, including a functional assessment, as 
287.35  defined in section 245.4871. 
287.36     With the consent of the commissioner of corrections and 
288.1   agreement of the county to pay the costs thereof, the court may, 
288.2   by order, place a minor coming within its jurisdiction in an 
288.3   institution maintained by the commissioner for the detention, 
288.4   diagnosis, custody and treatment of persons adjudicated to be 
288.5   delinquent, in order that the condition of the minor be given 
288.6   due consideration in the disposition of the case.  Any funds 
288.7   received under the provisions of this subdivision shall not 
288.8   cancel until the end of the fiscal year immediately following 
288.9   the fiscal year in which the funds were received.  The funds are 
288.10  available for use by the commissioner of corrections during that 
288.11  period and are hereby appropriated annually to the commissioner 
288.12  of corrections as reimbursement of the costs of providing these 
288.13  services to the juvenile courts.  
288.14     [EFFECTIVE DATE.] This section is effective July 1, 2004. 
288.15     Sec. 15.  Minnesota Statutes 2002, section 260B.176, 
288.16  subdivision 2, is amended to read: 
288.17     Subd. 2.  [REASONS FOR DETENTION.] (a) If the child is not 
288.18  released as provided in subdivision 1, the person taking the 
288.19  child into custody shall notify the court as soon as possible of 
288.20  the detention of the child and the reasons for detention.  
288.21     (b) No child may be detained in a juvenile secure detention 
288.22  facility or shelter care facility longer than 36 hours, 
288.23  excluding Saturdays, Sundays, and holidays, after being taken 
288.24  into custody for a delinquent act as defined in section 
288.25  260B.007, subdivision 6, unless a petition has been filed and 
288.26  the judge or referee determines pursuant to section 260B.178 
288.27  that the child shall remain in detention.  
288.28     (c) No child may be detained in an adult jail or municipal 
288.29  lockup longer than 24 hours, excluding Saturdays, Sundays, and 
288.30  holidays, or longer than six hours in an adult jail or municipal 
288.31  lockup in a standard metropolitan statistical area, after being 
288.32  taken into custody for a delinquent act as defined in section 
288.33  260B.007, subdivision 6, unless: 
288.34     (1) a petition has been filed under section 260B.141; and 
288.35     (2) a judge or referee has determined under section 
288.36  260B.178 that the child shall remain in detention. 
289.1      After August 1, 1991, no child described in this paragraph 
289.2   may be detained in an adult jail or municipal lockup longer than 
289.3   24 hours, excluding Saturdays, Sundays, and holidays, or longer 
289.4   than six hours in an adult jail or municipal lockup in a 
289.5   standard metropolitan statistical area, unless the requirements 
289.6   of this paragraph have been met and, in addition, a motion to 
289.7   refer the child for adult prosecution has been made under 
289.8   section 260B.125.  Notwithstanding this paragraph, continued 
289.9   detention of a child in an adult detention facility outside of a 
289.10  standard metropolitan statistical area county is permissible if: 
289.11     (i) the facility in which the child is detained is located 
289.12  where conditions of distance to be traveled or other ground 
289.13  transportation do not allow for court appearances within 24 
289.14  hours.  A delay not to exceed 48 hours may be made under this 
289.15  clause; or 
289.16     (ii) the facility is located where conditions of safety 
289.17  exist.  Time for an appearance may be delayed until 24 hours 
289.18  after the time that conditions allow for reasonably safe 
289.19  travel.  "Conditions of safety" include adverse life-threatening 
289.20  weather conditions that do not allow for reasonably safe travel. 
289.21     The continued detention of a child under clause (i) or (ii) 
289.22  must be reported to the commissioner of corrections. 
289.23     (d) If a child described in paragraph (c) is to be detained 
289.24  in a jail beyond 24 hours, excluding Saturdays, Sundays, and 
289.25  holidays, the judge or referee, in accordance with rules and 
289.26  procedures established by the commissioner of corrections, shall 
289.27  notify the commissioner of the place of the detention and the 
289.28  reasons therefor.  The commissioner shall thereupon assist the 
289.29  court in the relocation of the child in an appropriate juvenile 
289.30  secure detention facility or approved jail within the county or 
289.31  elsewhere in the state, or in determining suitable 
289.32  alternatives.  The commissioner shall direct that a child 
289.33  detained in a jail be detained after eight days from and 
289.34  including the date of the original detention order in an 
289.35  approved juvenile secure detention facility with the approval of 
289.36  the administrative authority of the facility.  If the court 
290.1   refers the matter to the prosecuting authority pursuant to 
290.2   section 260B.125, notice to the commissioner shall not be 
290.3   required.  
290.4      (e) When a child is detained for an alleged delinquent act 
290.5   in a state licensed juvenile facility or program, or when a 
290.6   child is detained in an adult jail or municipal lockup as 
290.7   provided in paragraph (c), the supervisor of the facility shall, 
290.8   if the child's parent or legal guardian consents, have a 
290.9   children's mental health screening conducted with a screening 
290.10  instrument approved by the commissioner of human services, 
290.11  unless a screening has been performed within the previous 180 
290.12  days or the child is currently under the care of a mental health 
290.13  professional.  The screening shall be conducted by a mental 
290.14  health practitioner as defined in section 245.4871, subdivision 
290.15  26, or a probation officer who is trained in the use of the 
290.16  screening instrument.  The screening shall be conducted after 
290.17  the initial detention hearing has been held and the court has 
290.18  ordered the child continued in detention.  The results of the 
290.19  screening may only be presented to the court at the 
290.20  dispositional phase of the court proceedings on the matter 
290.21  unless the parent or legal guardian consents to presentation at 
290.22  a different time.  If the screening indicates a need for 
290.23  assessment, the local social services agency or probation 
290.24  officer, with the approval of the child's parent or legal 
290.25  guardian, shall have a diagnostic assessment conducted, 
290.26  including a functional assessment, as defined in section 
290.27  245.4871. 
290.28     [EFFECTIVE DATE.] This section is effective July 1, 2004. 
290.29     Sec. 16.  Minnesota Statutes 2002, section 260B.178, 
290.30  subdivision 1, is amended to read: 
290.31     Subdivision 1.  [HEARING AND RELEASE REQUIREMENTS.] (a) The 
290.32  court shall hold a detention hearing: 
290.33     (1) within 36 hours of the time the child was taken into 
290.34  custody, excluding Saturdays, Sundays, and holidays, if the 
290.35  child is being held at a juvenile secure detention facility or 
290.36  shelter care facility; or 
291.1      (2) within 24 hours of the time the child was taken into 
291.2   custody, excluding Saturdays, Sundays, and holidays, if the 
291.3   child is being held at an adult jail or municipal lockup.  
291.4      (b) Unless there is reason to believe that the child would 
291.5   endanger self or others, not return for a court hearing, run 
291.6   away from the child's parent, guardian, or custodian or 
291.7   otherwise not remain in the care or control of the person to 
291.8   whose lawful custody the child is released, or that the child's 
291.9   health or welfare would be immediately endangered, the child 
291.10  shall be released to the custody of a parent, guardian, 
291.11  custodian, or other suitable person, subject to reasonable 
291.12  conditions of release including, but not limited to, a 
291.13  requirement that the child undergo a chemical use assessment as 
291.14  provided in section 260B.157, subdivision 1, and a children's 
291.15  mental health screening as provided in section 260B.176, 
291.16  subdivision 2, paragraph (e).  In determining whether the 
291.17  child's health or welfare would be immediately endangered, the 
291.18  court shall consider whether the child would reside with a 
291.19  perpetrator of domestic child abuse.  
291.20     [EFFECTIVE DATE.] This section is effective July 1, 2004. 
291.21     Sec. 17.  Minnesota Statutes 2002, section 260B.193, 
291.22  subdivision 2, is amended to read: 
291.23     Subd. 2.  [CONSIDERATION OF REPORTS.] Before making a 
291.24  disposition in a case, or appointing a guardian for a child, the 
291.25  court may consider any report or recommendation made by the 
291.26  local social services agency, probation officer, licensed 
291.27  child-placing agency, foster parent, guardian ad litem, tribal 
291.28  representative, or other authorized advocate for the child or 
291.29  child's family, a school district concerning the effect on 
291.30  student transportation of placing a child in a school district 
291.31  in which the child is not a resident, or any other information 
291.32  deemed material by the court.  In addition, the court may 
291.33  consider the results of the children's mental health screening 
291.34  provided in section 260B.157, subdivision 1. 
291.35     [EFFECTIVE DATE.] This section is effective July 1, 2004. 
291.36     Sec. 18.  Minnesota Statutes 2002, section 260B.235, 
292.1   subdivision 6, is amended to read: 
292.2      Subd. 6.  [ALTERNATIVE DISPOSITION.] In addition to 
292.3   dispositional alternatives authorized by subdivision 3 4, in the 
292.4   case of a third or subsequent finding by the court pursuant to 
292.5   an admission in court or after trial that a child has committed 
292.6   a juvenile alcohol or controlled substance offense, the juvenile 
292.7   court shall order a chemical dependency evaluation of the child 
292.8   and if warranted by the evaluation, the court may order 
292.9   participation by the child in an inpatient or outpatient 
292.10  chemical dependency treatment program, or any other treatment 
292.11  deemed appropriate by the court.  In the case of a third or 
292.12  subsequent finding that a child has committed any juvenile petty 
292.13  offense, the court shall order a children's mental health 
292.14  screening be conducted as provided in section 260B.157, 
292.15  subdivision 1, and if indicated by the screening, to undergo a 
292.16  diagnostic assessment, including a functional assessment, as 
292.17  defined in section 245.4871. 
292.18     [EFFECTIVE DATE.] This section is effective July 1, 2004. 
292.19     Sec. 19.  Minnesota Statutes 2002, section 260C.141, 
292.20  subdivision 2, is amended to read: 
292.21     Subd. 2.  [REVIEW OF FOSTER CARE STATUS.] The social 
292.22  services agency responsible for the placement of a child in a 
292.23  residential facility, as defined in section 260C.212, 
292.24  subdivision 1, pursuant to a voluntary release by the child's 
292.25  parent or parents must proceed in juvenile court to review the 
292.26  foster care status of the child in the manner provided in this 
292.27  section.  
292.28     (a) Except for a child in placement due solely to the 
292.29  child's developmental disability or emotional disturbance, when 
292.30  a child continues in voluntary placement according to section 
292.31  260C.212, subdivision 8, a petition shall be filed alleging the 
292.32  child to be in need of protection or services or seeking 
292.33  termination of parental rights or other permanent placement of 
292.34  the child away from the parent within 90 days of the date of the 
292.35  voluntary placement agreement.  The petition shall state the 
292.36  reasons why the child is in placement, the progress on the 
293.1   out-of-home placement plan required under section 260C.212, 
293.2   subdivision 1, and the statutory basis for the petition under 
293.3   section 260C.007, subdivision 6, 260C.201, subdivision 11, or 
293.4   260C.301. 
293.5      (1) In the case of a petition alleging the child to be in 
293.6   need of protection or services filed under this paragraph, if 
293.7   all parties agree and the court finds it is in the best 
293.8   interests of the child, the court may find the petition states a 
293.9   prima facie case that: 
293.10     (i) the child's needs are being met; 
293.11     (ii) the placement of the child in foster care is in the 
293.12  best interests of the child; 
293.13     (iii) reasonable efforts to reunify the child and the 
293.14  parent or guardian are being made; and 
293.15     (iv) the child will be returned home in the next three 
293.16  months. 
293.17     (2) If the court makes findings under paragraph (1), the 
293.18  court shall approve the voluntary arrangement and continue the 
293.19  matter for up to three more months to ensure the child returns 
293.20  to the parents' home.  The responsible social services agency 
293.21  shall: 
293.22     (i) report to the court when the child returns home and the 
293.23  progress made by the parent on the out-of-home placement plan 
293.24  required under section 260C.212, in which case the court shall 
293.25  dismiss jurisdiction; 
293.26     (ii) report to the court that the child has not returned 
293.27  home, in which case the matter shall be returned to the court 
293.28  for further proceedings under section 260C.163; or 
293.29     (iii) if any party does not agree to continue the matter 
293.30  under paragraph (1) and this paragraph, the matter shall proceed 
293.31  under section 260C.163. 
293.32     (b) In the case of a child in voluntary placement due 
293.33  solely to the child's developmental disability or emotional 
293.34  disturbance according to section 260C.212, subdivision 9, the 
293.35  following procedures apply: 
293.36     (1)  [REPORT TO COURT.] (i) Unless the county attorney 
294.1   determines that a petition under subdivision 1 is appropriate, 
294.2   without filing a petition, a written report shall be forwarded 
294.3   to the court within 165 days of the date of the voluntary 
294.4   placement agreement.  The written report shall contain necessary 
294.5   identifying information for the court to proceed, a copy of the 
294.6   out-of-home placement plan required under section 260C.212, 
294.7   subdivision 1, a written summary of the proceedings of any 
294.8   administrative review required under section 260C.212, 
294.9   subdivision 7, and any other information the responsible social 
294.10  services agency, parent or guardian, the child or the foster 
294.11  parent or other residential facility wants the court to consider.
294.12     (ii) The responsible social services agency, where 
294.13  appropriate, must advise the child, parent or guardian, the 
294.14  foster parent, or representative of the residential facility of 
294.15  the requirements of this section and of their right to submit 
294.16  information to the court.  If the child, parent or guardian, 
294.17  foster parent, or representative of the residential facility 
294.18  wants to send information to the court, the responsible social 
294.19  services agency shall advise those persons of the reporting date 
294.20  and the identifying information necessary for the court 
294.21  administrator to accept the information and submit it to a judge 
294.22  with the agency's report.  The responsible social services 
294.23  agency must also notify those persons that they have the right 
294.24  to be heard in person by the court and how to exercise that 
294.25  right.  The responsible social services agency must also provide 
294.26  notice that an in-court hearing will not be held unless 
294.27  requested by a parent or guardian, foster parent, or the child. 
294.28     (iii) After receiving the required report, the court has 
294.29  jurisdiction to make the following determinations and must do so 
294.30  within ten days of receiving the forwarded report:  (A) whether 
294.31  or not the placement of the child is in the child's best 
294.32  interests; and (B) whether the parent and agency are 
294.33  appropriately planning for the child.  Unless requested by a 
294.34  parent or guardian, foster parent, or child, no in-court hearing 
294.35  need be held in order for the court to make findings and issue 
294.36  an order under this paragraph. 
295.1      (iv) If the court finds the placement is in the child's 
295.2   best interests and that the agency and parent are appropriately 
295.3   planning for the child, the court shall issue an order 
295.4   containing explicit, individualized findings to support its 
295.5   determination.  The court shall send a copy of the order to the 
295.6   county attorney, the responsible social services agency, the 
295.7   parent or guardian, the child, and the foster parents.  The 
295.8   court shall also send the parent or guardian, the child, and the 
295.9   foster parent notice of the required review under clause (2).  
295.10     (v) If the court finds continuing the placement not to be 
295.11  in the child's best interests or that the agency or the parent 
295.12  or guardian is not appropriately planning for the child, the 
295.13  court shall notify the county attorney, the responsible social 
295.14  services agency, the parent or guardian, the foster parent, the 
295.15  child, and the county attorney of the court's determinations and 
295.16  the basis for the court's determinations. 
295.17     (2)  [PERMANENCY REVIEW BY PETITION.] If a child with a 
295.18  developmental disability or an emotional disturbance continues 
295.19  in out-of-home placement for 13 months from the date of a 
295.20  voluntary placement, a petition alleging the child to be in need 
295.21  of protection or services, for termination of parental rights, 
295.22  or for permanent placement of the child away from the parent 
295.23  under section 260C.201 shall be filed.  The court shall conduct 
295.24  a permanency hearing on the petition no later than 14 months 
295.25  after the date of the voluntary placement.  At the permanency 
295.26  hearing, the court shall determine the need for an order 
295.27  permanently placing the child away from the parent or determine 
295.28  whether there are compelling reasons that continued voluntary 
295.29  placement is in the child's best interests.  A petition alleging 
295.30  the child to be in need of protection or services shall state 
295.31  the date of the voluntary placement agreement, the nature of the 
295.32  child's developmental disability or emotional disturbance, the 
295.33  plan for the ongoing care of the child, the parents' 
295.34  participation in the plan, the responsible social services 
295.35  agency's efforts to finalize a plan for the permanent placement 
295.36  of the child, and the statutory basis for the petition. 
296.1      (i) If a petition alleging the child to be in need of 
296.2   protection or services is filed under this paragraph, the court 
296.3   may find, based on the contents of the sworn petition, and the 
296.4   agreement of all parties, including the child, where 
296.5   appropriate, that there are compelling reasons that the 
296.6   voluntary arrangement is in the best interests of the child and 
296.7   that the responsible social services agency has made reasonable 
296.8   efforts to finalize a plan for the permanent placement of the 
296.9   child, approve the continued voluntary placement, and continue 
296.10  the matter under the court's jurisdiction for the purpose of 
296.11  reviewing the child's placement as a continued voluntary 
296.12  arrangement every 12 months as long as the child continues in 
296.13  out-of-home placement.  The matter must be returned to the court 
296.14  for further review every 12 months as long as the child remains 
296.15  in placement.  The court shall give notice to the parent or 
296.16  guardian of the continued review requirements under this 
296.17  section.  Nothing in this paragraph shall be construed to mean 
296.18  the court must order permanent placement for the child under 
296.19  section 260C.201, subdivision 11, as long as the court finds 
296.20  compelling reasons at the first review required under this 
296.21  section. 
296.22     (ii) If a petition for termination of parental rights, for 
296.23  transfer of permanent legal and physical custody to a relative, 
296.24  for long-term foster care, or for foster care for a specified 
296.25  period of time is filed, the court must proceed under section 
296.26  260C.201, subdivision 11. 
296.27     (3) If any party, including the child, disagrees with the 
296.28  voluntary arrangement, the court shall proceed under section 
296.29  260C.163. 
296.30     Sec. 20.  Minnesota Statutes 2002, section 626.559, 
296.31  subdivision 5, is amended to read: 
296.32     Subd. 5.  [REVENUE.] The commissioner of human services 
296.33  shall add the following funds to the funds appropriated under 
296.34  section 626.5591, subdivision 2, to develop and support training:
296.35     (a) The commissioner of human services shall submit claims 
296.36  for federal reimbursement earned through the activities and 
297.1   services supported through department of human services child 
297.2   protection or child welfare training funds.  Federal revenue 
297.3   earned must be used to improve and expand training services by 
297.4   the department.  The department expenditures eligible for 
297.5   federal reimbursement under this section must not be made from 
297.6   federal funds or funds used to match other federal funds. 
297.7      (b) Each year, the commissioner of human services shall 
297.8   withhold from funds distributed to each county under Minnesota 
297.9   Rules, parts 9550.0300 to 9550.0370, an amount equivalent to 1.5 
297.10  percent of each county's annual title XX allocation under 
297.11  section 256E.07 256M.50.  The commissioner must use these funds 
297.12  to ensure decentralization of training. 
297.13     (c) The federal revenue under this subdivision is available 
297.14  for these purposes until the funds are expended. 
297.15     Sec. 21.  [MEDICAL ASSISTANCE FOR MENTAL HEALTH SERVICES 
297.16  PROVIDED IN OUT-OF-HOME PLACEMENT SETTINGS.] 
297.17     The commissioner of human services shall develop a plan in 
297.18  conjunction with the commissioner of corrections and 
297.19  representatives from counties, provider groups, and other 
297.20  stakeholders, to secure medical assistance funding for mental 
297.21  health-related services provided in out-of-home placement 
297.22  settings, including treatment foster care, group homes, and 
297.23  residential programs licensed under Minnesota Statutes, chapters 
297.24  241 and 245A.  The plan must include proposed legislation, 
297.25  fiscal implications, and other pertinent information. 
297.26     Treatment foster care services must be provided by a child 
297.27  placing agency licensed under Minnesota Rules, parts 9543.0010 
297.28  to 9543.0150 or 9545.0755 to 9545.0845.  
297.29     The commissioner shall report to the legislature by January 
297.30  15, 2004. 
297.31     Sec. 22.  [TRANSITION TO CHILDREN'S THERAPEUTIC SERVICES 
297.32  AND SUPPORTS.] 
297.33     Beginning July 1, 2003, the commissioner shall use the 
297.34  provider certification process under Minnesota Statutes, section 
297.35  256B.0943, instead of the provider certification process 
297.36  required in Minnesota Rules, parts 9505.0324; 9505.0326; and 
298.1   9505.0327. 
298.2      Sec. 23.  [REVISOR'S INSTRUCTION.] 
298.3      For sections in Minnesota Statutes and Minnesota Rules 
298.4   affected by the repealed sections in this article, the revisor 
298.5   shall delete internal cross-references where appropriate and 
298.6   make changes necessary to correct the punctuation, grammar, or 
298.7   structure of the remaining text and preserve its meaning. 
298.8      Sec. 24.  [REPEALER.] 
298.9      (a) Minnesota Statutes 2002, sections 256B.0945, 
298.10  subdivision 10, is repealed. 
298.11     (b) Minnesota Statutes 2002, section 256B.0625, 
298.12  subdivisions 35 and 36, are repealed effective July 1, 2004. 
298.13     (c) Minnesota Rules, parts 9505.0324; 9505.0326; and 
298.14  9505.0327, are repealed effective July 1, 2004. 
298.15                             ARTICLE 5 
298.16                       OCCUPATIONAL LICENSES
298.17     Section 1.  Minnesota Statutes 2002, section 148C.01, is 
298.18  amended by adding a subdivision to read: 
298.19     Subd. 1a.  [ACCREDITING ASSOCIATION.] "Accrediting 
298.20  association" means an organization recognized by the 
298.21  commissioner that evaluates schools and education programs of 
298.22  alcohol and drug counseling or is listed in Nationally 
298.23  Recognized Accrediting Agencies and Associations, Criteria and 
298.24  Procedures for Listing by the U.S. Secretary of Education and 
298.25  Current List (1996), which is incorporated by reference.  
298.26     Sec. 2.  Minnesota Statutes 2002, section 148C.01, 
298.27  subdivision 2, is amended to read: 
298.28     Subd. 2.  [ALCOHOL AND DRUG COUNSELOR.] "Alcohol and drug 
298.29  counselor" or "counselor" means a person who: 
298.30     (1) uses, as a representation to the public, any title, 
298.31  initials, or description of services incorporating the words 
298.32  "alcohol and drug counselor"; 
298.33     (2) offers to render professional alcohol and drug 
298.34  counseling services relative to the abuse of or the dependency 
298.35  on alcohol or other drugs to the general public or groups, 
298.36  organizations, corporations, institutions, or government 
299.1   agencies for compensation, implying that the person is licensed 
299.2   and trained, experienced or expert in alcohol and drug 
299.3   counseling; 
299.4      (3) holds a valid license issued under sections 148C.01 to 
299.5   148C.11 this chapter to engage in the practice of alcohol and 
299.6   drug counseling; or 
299.7      (4) is an applicant for an alcohol and drug counseling 
299.8   license.  
299.9      Sec. 3.  Minnesota Statutes 2002, section 148C.01, is 
299.10  amended by adding a subdivision to read: 
299.11     Subd. 2a.  [ALCOHOL AND DRUG COUNSELOR ACADEMIC COURSE 
299.12  WORK.] "Alcohol and drug counselor academic course work" means 
299.13  classroom education, which is directly related to alcohol and 
299.14  drug counseling and meets the requirements of section 148C.04, 
299.15  subdivision 5a, and is taken through an accredited school or 
299.16  educational program.  
299.17     Sec. 4.  Minnesota Statutes 2002, section 148C.01, is 
299.18  amended by adding a subdivision to read: 
299.19     Subd. 2b.  [ALCOHOL AND DRUG COUNSELOR CONTINUING EDUCATION 
299.20  ACTIVITY.] "Alcohol and drug counselor continuing education 
299.21  activity" means clock hours that meet the requirements of 
299.22  section 148C.075 and Minnesota Rules, part 4747.1100, and are 
299.23  obtained by a licensee at educational programs of annual 
299.24  conferences, lectures, panel discussions, workshops, seminars, 
299.25  symposiums, employer-sponsored inservices, or courses taken 
299.26  through accredited schools or education programs, including home 
299.27  study courses.  A home study course need not be provided by an 
299.28  accredited school or education program to meet continuing 
299.29  education requirements.  
299.30     Sec. 5.  Minnesota Statutes 2002, section 148C.01, is 
299.31  amended by adding a subdivision to read: 
299.32     Subd. 2c.  [ALCOHOL AND DRUG COUNSELOR 
299.33  TECHNICIAN.] "Alcohol and drug counselor technician" means a 
299.34  person not licensed as an alcohol and drug counselor who is 
299.35  performing acts authorized under section 148C.045.  
299.36     Sec. 6.  Minnesota Statutes 2002, section 148C.01, is 
300.1   amended by adding a subdivision to read: 
300.2      Subd. 2d.  [ALCOHOL AND DRUG COUNSELOR TRAINING.] "Alcohol 
300.3   and drug counselor training" means clock hours obtained by an 
300.4   applicant at educational programs of annual conferences, 
300.5   lectures, panel discussions, workshops, seminars, symposiums, 
300.6   employer-sponsored inservices, or courses taken through 
300.7   accredited schools or education programs, including home study 
300.8   courses.  Clock hours obtained from accredited schools or 
300.9   education programs must be measured under Minnesota Rules, part 
300.10  4747.1100, subpart 5.  
300.11     Sec. 7.  Minnesota Statutes 2002, section 148C.01, is 
300.12  amended by adding a subdivision to read: 
300.13     Subd. 2f.  [CLOCK HOUR.] "Clock hour" means an 
300.14  instructional session of 50 consecutive minutes, excluding 
300.15  coffee breaks, registration, meals without a speaker, and social 
300.16  activities.  
300.17     Sec. 8.  Minnesota Statutes 2002, section 148C.01, is 
300.18  amended by adding a subdivision to read: 
300.19     Subd. 2g.  [CREDENTIAL.] "Credential" means a license, 
300.20  permit, certification, registration, or other evidence of 
300.21  qualification or authorization to engage in the practice of an 
300.22  occupation.  
300.23     Sec. 9.  Minnesota Statutes 2002, section 148C.01, is 
300.24  amended by adding a subdivision to read: 
300.25     Subd. 4a.  [LICENSEE.] "Licensee" means a person who holds 
300.26  a valid license under this chapter.  
300.27     Sec. 10.  Minnesota Statutes 2002, section 148C.01, is 
300.28  amended by adding a subdivision to read: 
300.29     Subd. 11a.  [STUDENT.] "Student" means a person enrolled in 
300.30  an alcohol and drug counselor education program at an accredited 
300.31  school or educational program and earning a minimum of nine 
300.32  semester credits per calendar year towards completion of an 
300.33  associate's, bachelor's, master's, or doctorate degree 
300.34  requirements that include an additional 18 semester credits or 
300.35  270 clock hours of alcohol and drug counseling specific course 
300.36  work and 440 clock hours of practicum.  
301.1      Sec. 11.  Minnesota Statutes 2002, section 148C.01, 
301.2   subdivision 12, is amended to read: 
301.3      Subd. 12.  [SUPERVISED ALCOHOL AND DRUG COUNSELING 
301.4   EXPERIENCE COUNSELOR.] Except during the transition period, 
301.5   "Supervised alcohol and drug counseling experience counselor" 
301.6   means practical experience gained by a student, volunteer, or 
301.7   either before, during, or after the student completes a program 
301.8   from an accredited school or educational program of alcohol and 
301.9   drug counseling, an intern, and or a person issued a temporary 
301.10  permit under section 148C.04, subdivision 4, and who is 
301.11  supervised by a person either licensed under this chapter or 
301.12  exempt under its provisions; either before, during, or after the 
301.13  student completes a program from an accredited school or 
301.14  educational program of alcohol and drug counseling. 
301.15     Sec. 12.  Minnesota Statutes 2002, section 148C.01, is 
301.16  amended by adding a subdivision to read: 
301.17     Subd. 12a.  [SUPERVISOR.] "Supervisor" means a licensed 
301.18  alcohol and drug counselor licensed under this chapter or other 
301.19  licensed professional practicing alcohol and drug counseling 
301.20  under section 148C.11 who monitors activities of and accepts 
301.21  legal liability for the person practicing under supervision.  A 
301.22  supervisor shall supervise no more than three trainees 
301.23  practicing under section 148C.04, subdivision 6.  
301.24     Sec. 13.  Minnesota Statutes 2002, section 148C.03, 
301.25  subdivision 1, is amended to read: 
301.26     Subdivision 1.  [GENERAL.] The commissioner shall, after 
301.27  consultation with the advisory council or a committee 
301.28  established by rule: 
301.29     (a) adopt and enforce rules for licensure of alcohol and 
301.30  drug counselors, including establishing standards and methods of 
301.31  determining whether applicants and licensees are qualified under 
301.32  section 148C.04.  The rules must provide for examinations and 
301.33  establish standards for the regulation of professional conduct.  
301.34  The rules must be designed to protect the public; 
301.35     (b) develop and, at least twice a year, administer an 
301.36  examination to assess applicants' knowledge and skills.  The 
302.1   commissioner may contract for the administration of an 
302.2   examination with an entity designated by the commissioner.  The 
302.3   examinations must be psychometrically valid and reliable; must 
302.4   be written and oral, with the oral examination based on a 
302.5   written case presentation; must minimize cultural bias; and must 
302.6   be balanced in various theories relative to the practice of 
302.7   alcohol and drug counseling; 
302.8      (c) issue licenses to individuals qualified under sections 
302.9   148C.01 to 148C.11; 
302.10     (d) issue copies of the rules for licensure to all 
302.11  applicants; 
302.12     (e) adopt rules to establish and implement procedures, 
302.13  including a standard disciplinary process and rules of 
302.14  professional conduct; 
302.15     (f) carry out disciplinary actions against licensees; 
302.16     (g) establish, with the advice and recommendations of the 
302.17  advisory council, written internal operating procedures for 
302.18  receiving and investigating complaints and for taking 
302.19  disciplinary actions as appropriate; 
302.20     (h) educate the public about the existence and content of 
302.21  the rules for alcohol and drug counselor licensing to enable 
302.22  consumers to file complaints against licensees who may have 
302.23  violated the rules; 
302.24     (i) evaluate the rules in order to refine and improve the 
302.25  methods used to enforce the commissioner's standards; and 
302.26     (j) set, collect, and adjust license fees for alcohol and 
302.27  drug counselors so that the total fees collected will as closely 
302.28  as possible equal anticipated expenditures during the biennium, 
302.29  as provided in section 16A.1285; fees for initial and renewal 
302.30  application and examinations; late fees for counselors who 
302.31  submit license renewal applications after the renewal deadline; 
302.32  and a surcharge fee.  The surcharge fee must include an amount 
302.33  necessary to recover, over a five-year period, the 
302.34  commissioner's direct expenditures for the adoption of the rules 
302.35  providing for the licensure of alcohol and drug counselors.  All 
302.36  fees received shall be deposited in the state treasury and 
303.1   credited to the special revenue fund. 
303.2      Sec. 14.  Minnesota Statutes 2002, section 148C.0351, 
303.3   subdivision 1, is amended to read: 
303.4      Subdivision 1.  [APPLICATION FORMS.] Unless exempted under 
303.5   section 148C.11, a person who practices alcohol and drug 
303.6   counseling in Minnesota must: 
303.7      (1) apply to the commissioner for a license to practice 
303.8   alcohol and drug counseling on forms provided by the 
303.9   commissioner; 
303.10     (2) include with the application a statement that the 
303.11  statements in the application are true and correct to the best 
303.12  of the applicant's knowledge and belief; 
303.13     (3) include with the application a nonrefundable 
303.14  application fee specified by the commissioner in section 
303.15  148C.12; 
303.16     (4) include with the application information describing the 
303.17  applicant's experience, including the number of years and months 
303.18  the applicant has practiced alcohol and drug counseling as 
303.19  defined in section 148C.01; 
303.20     (5) include with the application the applicant's business 
303.21  address and telephone number, or home address and telephone 
303.22  number if the applicant conducts business out of the home, and 
303.23  if applicable, the name of the applicant's supervisor, manager, 
303.24  and employer; 
303.25     (6) include with the application a written and signed 
303.26  authorization for the commissioner to make inquiries to 
303.27  appropriate state regulatory agencies and private credentialing 
303.28  organizations in this or any other state where the applicant has 
303.29  practiced alcohol and drug counseling; and 
303.30     (7) complete the application in sufficient detail for the 
303.31  commissioner to determine whether the applicant meets the 
303.32  requirements for filing.  The commissioner may ask the applicant 
303.33  to provide additional information necessary to clarify 
303.34  incomplete or ambiguous information submitted in the application.
303.35     Sec. 15.  Minnesota Statutes 2002, section 148C.0351, is 
303.36  amended by adding a subdivision to read: 
304.1      Subd. 4.  [INITIAL LICENSE; TERM.] (a) An initial license 
304.2   is effective on the date the commissioner indicates on the 
304.3   license certificate, with the license number, sent to the 
304.4   applicant upon approval of the application.  
304.5      (b) An initial license is valid for a period beginning with 
304.6   the effective date in paragraph (a) and ending on the date 
304.7   specified by the commissioner on the license certificate placing 
304.8   the applicant in an existing two-year renewal cycle, as 
304.9   established under section 148C.05, subdivision 1.  
304.10     Sec. 16.  [148C.0355] [COMMISSIONER ACTION ON APPLICATIONS 
304.11  FOR LICENSURE.] 
304.12     The commissioner shall act on each application for 
304.13  licensure within 90 days from the date the completed application 
304.14  and all required information is received by the commissioner.  
304.15  The commissioner shall determine if the applicant meets the 
304.16  requirements for licensure and whether there are grounds for 
304.17  denial of licensure under this chapter.  If the commissioner 
304.18  denies an application on grounds other than the applicant's 
304.19  failure of an examination, the commissioner shall:  
304.20     (1) notify the applicant, in writing, of the denial and the 
304.21  reason for the denial and provide the applicant 30 days from the 
304.22  date of the letter informing the applicant of the denial in 
304.23  which the applicant may provide additional information to 
304.24  address the reasons for the denial.  If the applicant does not 
304.25  respond in writing to the commissioner within the 30-day period, 
304.26  the denial is final.  If the commissioner receives additional 
304.27  information, the commissioner shall review it and make a final 
304.28  determination thereafter; 
304.29     (2) notify the applicant that an application submitted 
304.30  following denial is a new application and must be accompanied by 
304.31  the appropriate fee as specified in section 148C.12; and 
304.32     (3) notify the applicant of the right to request a hearing 
304.33  under chapter 14.  
304.34     Sec. 17.  Minnesota Statutes 2002, section 148C.04, is 
304.35  amended to read: 
304.36     148C.04 [REQUIREMENTS FOR LICENSURE.] 
305.1      Subdivision 1.  [GENERAL REQUIREMENTS.] The commissioner 
305.2   shall issue licenses to the individuals qualified under sections 
305.3   148C.01 to 148C.11 this chapter to practice alcohol and drug 
305.4   counseling. 
305.5      Subd. 2.  [FEE.] Each applicant shall pay a nonrefundable 
305.6   fee set by the commissioner pursuant to section 148C.03 as 
305.7   specified in section 148C.12.  Fees paid to the commissioner 
305.8   shall be deposited in the special revenue fund. 
305.9      Subd. 3.  [LICENSING REQUIREMENTS FOR THE FIRST FIVE 
305.10  YEARS LICENSURE BEFORE JULY 1, 2008.] For five years after the 
305.11  effective date of the rules authorized in section 148C.03, 
305.12  the An applicant, unless qualified under section 148C.06 during 
305.13  the 25-month period authorized therein, under section 148C.07, 
305.14  or under subdivision 4, for a license must furnish evidence 
305.15  satisfactory to the commissioner that the applicant has met all 
305.16  the requirements in clauses (1) to (3). The applicant must have: 
305.17     (1) received an associate degree, or an equivalent number 
305.18  of credit hours, and a certificate in alcohol and drug 
305.19  counseling, including 18 semester credits or 270 clock hours of 
305.20  alcohol and drug counseling classroom education academic course 
305.21  work in accordance with subdivision 5a, paragraph (a), from an 
305.22  accredited school or educational program and 880 clock hours of 
305.23  supervised alcohol and drug counseling practicum; 
305.24     (2) completed a written case presentation and 
305.25  satisfactorily passed an oral examination established by the 
305.26  commissioner that demonstrates competence in the core functions; 
305.27  and 
305.28     (3) satisfactorily passed a written examination as 
305.29  established by the commissioner. 
305.30     Subd. 4.  [LICENSING REQUIREMENTS AFTER FIVE YEARS FOR 
305.31  LICENSURE AFTER JULY 1, 2008.] Beginning five years after the 
305.32  effective date of the rules authorized in section 148C.03, 
305.33  subdivision 1 , An applicant for licensure a license must submit 
305.34  evidence to the commissioner that the applicant has met one of 
305.35  the following requirements: 
305.36     (1) the applicant must have: 
306.1      (i) received a bachelor's degree from an accredited school 
306.2   or educational program, including 480 18 semester credits or 270 
306.3   clock hours of alcohol and drug counseling education academic 
306.4   course work in accordance with subdivision 5a, paragraph (a), 
306.5   from an accredited school or educational program and 880 clock 
306.6   hours of supervised alcohol and drug counseling practicum; 
306.7      (ii) completed a written case presentation and 
306.8   satisfactorily passed an oral examination established by the 
306.9   commissioner that demonstrates competence in the core functions; 
306.10  and 
306.11     (iii) satisfactorily passed a written examination as 
306.12  established by the commissioner; or 
306.13     (2) the applicant must meet the requirements of section 
306.14  148C.07. 
306.15     Subd. 5a.  [ACADEMIC COURSE WORK.] (a) Minimum academic 
306.16  course work requirements for licensure as referred to under 
306.17  subdivision 3, clause (1), and subdivision 4, clause (1), item 
306.18  (i), must be in the following areas: 
306.19     (1) overview of alcohol and drug counseling focusing on the 
306.20  transdisciplinary foundations of alcohol and drug counseling and 
306.21  providing an understanding of theories of chemical dependency, 
306.22  the continuum of care, and the process of change; 
306.23     (2) pharmacology of substance abuse disorders and the 
306.24  dynamics of addiction; 
306.25     (3) screening, intake, assessment, and treatment planning; 
306.26     (4) counseling theory and practice, crisis intervention, 
306.27  orientation, and client education; 
306.28     (5) case management, consultation, referral, treatment 
306.29  planning, reporting, record keeping, and professional and 
306.30  ethical responsibilities; and 
306.31     (6) multicultural aspects of chemical dependency to include 
306.32  awareness of learning outcomes described in Minnesota Rules, 
306.33  part 4747.1100, subpart 2, and the ability to know when 
306.34  consultation is needed.  
306.35     (b) Advanced academic course work includes, at a minimum, 
306.36  the course work required in paragraph (a) and additional course 
307.1   work in the following areas:  
307.2      (1) advanced study in the areas listed in paragraph (a); 
307.3      (2) chemical dependency and the family; 
307.4      (3) treating substance abuse disorders in culturally 
307.5   diverse and identified populations; 
307.6      (4) dual diagnoses/co-occurring disorders with substance 
307.7   abuse disorders; and 
307.8      (5) ethics and chemical dependency. 
307.9      Subd. 6.  [TEMPORARY PRACTICE PERMIT REQUIREMENTS.] (a) A 
307.10  person may temporarily The commissioner shall issue a temporary 
307.11  permit to practice alcohol and drug counseling prior to being 
307.12  licensed under this chapter if the person: 
307.13     (1) either: 
307.14     (i) meets the associate degree education and practicum 
307.15  requirements of subdivision 3, clause (1); 
307.16     (ii) meets the bachelor's degree education and practicum 
307.17  requirements of subdivision 4, clause (1), item (i); or 
307.18     (iii) submits verification of a current and unrestricted 
307.19  credential for the practice of alcohol and drug counseling from 
307.20  a national certification body or a certification or licensing 
307.21  body from another state, United States territory, or federally 
307.22  recognized tribal authority; 
307.23     (ii) submits verification of the completion of at least 64 
307.24  semester credits, including 270 clock hours or 18 semester 
307.25  credits of formal classroom education in alcohol and drug 
307.26  counseling and at least 880 clock hours of alcohol and drug 
307.27  counseling practicum from an accredited school or educational 
307.28  program; or 
307.29     (iii) meets the requirements of section 148C.11, 
307.30  subdivision 6, clauses (1), (2), and (5); 
307.31     (2) requests applies, in writing, temporary practice status 
307.32  with the commissioner on an application form according to 
307.33  section 148C.0351 provided by the commissioner, which includes 
307.34  the nonrefundable license temporary permit fee as specified in 
307.35  section 148C.12 and an affirmation by the person's supervisor, 
307.36  as defined in paragraph (b) (c), clause (1), and which is signed 
308.1   and dated by the person and the person's supervisor; and 
308.2      (3) has not been disqualified to practice temporarily on 
308.3   the basis of a background investigation under section 148C.09, 
308.4   subdivision 1a; and.  
308.5      (4) has been notified (b) The commissioner must notify the 
308.6   person in writing within 90 days from the date the completed 
308.7   application and all required information is received by the 
308.8   commissioner that whether the person is qualified to practice 
308.9   under this subdivision. 
308.10     (b) (c) A person practicing under this subdivision: 
308.11     (1) may practice only in a program licensed by the 
308.12  department of human services and under tribal jurisdiction or 
308.13  under the direct, on-site supervision of a person who is 
308.14  licensed under this chapter and employed in that licensed 
308.15  program; 
308.16     (2) is subject to the rules of professional conduct set by 
308.17  rule; and 
308.18     (3) is not subject to the continuing education requirements 
308.19  of section 148C.05 148C.075. 
308.20     (c) (d) A person practicing under this subdivision may not 
308.21  must use with the public any the title or description stating or 
308.22  implying that the person is licensed to engage a trainee engaged 
308.23  in the practice of alcohol and drug counseling. 
308.24     (d) (e) The temporary status of A person applying for 
308.25  temporary practice practicing under this subdivision expires on 
308.26  the date the commissioner grants or denies licensing must 
308.27  annually submit a renewal application on forms provided by the 
308.28  commissioner with the renewal fee required in section 148C.12, 
308.29  subdivision 3, and the commissioner may renew the temporary 
308.30  permit if the trainee meets the requirements of this 
308.31  subdivision.  A trainee may renew a practice permit no more than 
308.32  five times. 
308.33     (e) (f) A temporary permit expires if not renewed, upon a 
308.34  change of employment of the trainee or upon a change in 
308.35  supervision, or upon the granting or denial by the commissioner 
308.36  of a license.  
309.1      Subd. 7.  [EFFECT AND SUSPENSION OF TEMPORARY PRACTICE 
309.2   PERMIT.] Approval of a person's application for 
309.3   temporary practice permit creates no rights to or expectation of 
309.4   approval from the commissioner for licensure as an alcohol and 
309.5   drug counselor.  The commissioner may suspend or restrict a 
309.6   person's temporary practice permit status according to section 
309.7   148C.09. 
309.8      [EFFECTIVE DATE.] Subdivisions 1, 2, 3, 4, and 5a are 
309.9   effective January 28, 2003.  Subdivision 6 is effective July 1, 
309.10  2003.  
309.11     Sec. 18.  [148C.045] [ALCOHOL AND DRUG COUNSELOR 
309.12  TECHNICIAN.] 
309.13     An alcohol and drug counselor technician may perform the 
309.14  services described in section 148C.01, subdivision 9, paragraphs 
309.15  (1), (2), and (3), while under the direct supervision of a 
309.16  licensed alcohol and drug counselor.  
309.17     Sec. 19.  Minnesota Statutes 2002, section 148C.05, 
309.18  subdivision 1, is amended to read: 
309.19     Subdivision 1.  [BIENNIAL RENEWAL REQUIREMENTS.] To renew a 
309.20  license, an applicant must: 
309.21     (1) complete a renewal application every two years on a 
309.22  form provided by the commissioner and submit the biennial 
309.23  renewal fee by the deadline; and 
309.24     (2) submit additional information if requested by the 
309.25  commissioner to clarify information presented in the renewal 
309.26  application.  This information must be submitted within 30 days 
309.27  of the commissioner's request.  A license must be renewed every 
309.28  two years.  
309.29     Sec. 20.  Minnesota Statutes 2002, section 148C.05, is 
309.30  amended by adding a subdivision to read: 
309.31     Subd. 1a.  [RENEWAL REQUIREMENTS.] To renew a license, an 
309.32  applicant must submit to the commissioner: 
309.33     (1) a completed and signed application for license renewal, 
309.34  including a signed consent authorizing the commissioner to 
309.35  obtain information about the applicant from third parties, 
309.36  including, but not limited to, employers, former employers, and 
310.1   law enforcement agencies; 
310.2      (2) the renewal fee required under section 148C.12; and 
310.3      (3) additional information as requested by the commissioner 
310.4   to clarify information presented in the renewal application.  
310.5   The licensee must submit information within 30 days of the date 
310.6   of the commissioner's request.  
310.7      Sec. 21.  Minnesota Statutes 2002, section 148C.05, is 
310.8   amended by adding a subdivision to read: 
310.9      Subd. 5.  [LICENSE RENEWAL NOTICE.] At least 60 calendar 
310.10  days before the renewal deadline date in subdivision 6, the 
310.11  commissioner shall mail a renewal notice to the licensee's last 
310.12  known address on file with the commissioner.  The notice must 
310.13  include an application for license renewal, the renewal 
310.14  deadline, and notice of fees required for renewal.  The 
310.15  licensee's failure to receive notice does not relieve the 
310.16  licensee of the obligation to meet the renewal deadline and 
310.17  other requirements for license renewal.  
310.18     Sec. 22.  Minnesota Statutes 2002, section 148C.05, is 
310.19  amended by adding a subdivision to read: 
310.20     Subd. 6.  [RENEWAL DEADLINE AND LAPSE OF LICENSURE.] (a) 
310.21  Licensees must comply with paragraphs (b) to (d).  
310.22     (b) Each license certificate must state an expiration 
310.23  date.  An application for license renewal must be received by 
310.24  the commissioner or postmarked at least 30 calendar days before 
310.25  the expiration date.  If the postmark is illegible, the 
310.26  application must be considered timely if received at least 21 
310.27  calendar days before the expiration date.  
310.28     (c) An application for license renewal not received within 
310.29  the time required under paragraph (b) must be accompanied by a 
310.30  late fee in addition to the renewal fee required in section 
310.31  148C.12.  
310.32     (d) A licensee's license lapses if the licensee fails to 
310.33  submit to the commissioner a license renewal application by the 
310.34  licensure expiration date.  A licensee shall not engage in the 
310.35  practice of alcohol and drug counseling while the license is 
310.36  lapsed.  A licensee whose license has lapsed may renew the 
311.1   license by complying with section 148C.055.  
311.2      Sec. 23.  [148C.055] [INACTIVE OR LAPSED LICENSE.] 
311.3      Subdivision 1.  [INACTIVE LICENSE STATUS.] Unless a 
311.4   complaint is pending against the licensee, a licensee whose 
311.5   license is in good standing may request, in writing, that the 
311.6   license be placed on the inactive list.  If a complaint is 
311.7   pending against a licensee, a license may not be placed on the 
311.8   inactive list until action relating to the complaint is 
311.9   concluded.  The commissioner must receive the request for 
311.10  inactive status before expiration of the license.  A request for 
311.11  inactive status received after the license expiration date must 
311.12  be denied.  A licensee may renew a license that is inactive 
311.13  under this subdivision by meeting the renewal requirements of 
311.14  subdivision 2, except that payment of a late renewal fee is not 
311.15  required.  A licensee must not practice alcohol and drug 
311.16  counseling while the license is inactive.  
311.17     Subd. 2.  [RENEWAL OF INACTIVE LICENSE.] A licensee whose 
311.18  license is inactive shall renew the inactive status by the 
311.19  inactive status expiration date determined by the commissioner 
311.20  or the license will lapse.  An application for renewal of 
311.21  inactive status must include evidence satisfactory to the 
311.22  commissioner that the licensee has completed 40 clock hours of 
311.23  continuing professional education required in section 148C.075, 
311.24  and be received by the commissioner at least 30 calendar days 
311.25  before the expiration date.  If the postmark is illegible, the 
311.26  application must be considered timely if received at least 21 
311.27  calendar days before the expiration date.  Late renewal of 
311.28  inactive status must be accompanied by a late fee as required in 
311.29  section 148C.12.  
311.30     Subd. 3.  [RENEWAL OF LAPSED LICENSE.] An individual whose 
311.31  license has lapsed for less than two years may renew the license 
311.32  by submitting:  
311.33     (1) a completed and signed license renewal application; 
311.34     (2) the inactive license renewal fee or the renewal fee and 
311.35  the late fee as required under section 148C.12; and 
311.36     (3) proof of having met the continuing education 
312.1   requirements in section 148C.075 since the individual's initial 
312.2   licensure or last license renewal.  The license issued is then 
312.3   effective for the remainder of the next two-year license cycle.  
312.4      Subd. 4.  [LICENSE RENEWAL FOR TWO YEARS OR MORE AFTER 
312.5   LICENSE EXPIRATION DATE.] An individual who submitted a license 
312.6   renewal two years or more after the license expiration date must 
312.7   submit the following:  
312.8      (1) a completed and signed application for licensure, as 
312.9   required by section 148C.0351; 
312.10     (2) the initial license fee as required in section 148C.12; 
312.11  and 
312.12     (3) verified documentation of having achieved a passing 
312.13  score within the past year on an examination required by the 
312.14  commissioner.  
312.15     Sec. 24.  Minnesota Statutes 2002, section 148C.07, is 
312.16  amended to read: 
312.17     148C.07 [RECIPROCITY.] 
312.18     The commissioner shall issue an appropriate license to (a) 
312.19  An individual who holds a current license or other credential to 
312.20  engage in alcohol and drug counseling national certification as 
312.21  an alcohol and drug counselor from another jurisdiction if the 
312.22  commissioner finds that the requirements for that credential are 
312.23  substantially similar to the requirements in sections 148C.01 to 
312.24  148C.11 must file with the commissioner a completed application 
312.25  for licensure by reciprocity containing the information required 
312.26  under this section.  
312.27     (b) The applicant must request the credentialing authority 
312.28  of the jurisdiction in which the credential is held to send 
312.29  directly to the commissioner a statement that the credential is 
312.30  current and in good standing, the applicant's qualifications 
312.31  that entitled the applicant to the credential, and a copy of the 
312.32  jurisdiction's credentialing laws and rules that were in effect 
312.33  at the time the applicant obtained the credential.  
312.34     (c) The commissioner shall issue a license if the 
312.35  commissioner finds that the requirements, which the applicant 
312.36  had to meet to obtain the credential from the other jurisdiction 
313.1   were substantially similar to the current requirements for 
313.2   licensure in this chapter, and the applicant is not otherwise 
313.3   disqualified under section 148C.09.  
313.4      Sec. 25.  [148C.075] [CONTINUING EDUCATION REQUIREMENTS.] 
313.5      Subdivision 1.  [GENERAL REQUIREMENTS.] The commissioner 
313.6   shall establish a two-year continuing education reporting 
313.7   schedule requiring licensees to report completion of the 
313.8   requirements of this section.  Licensees must document 
313.9   completion of a minimum of 40 clock hours of continuing 
313.10  education activities each reporting period.  A licensee may be 
313.11  given credit only for activities that directly relate to the 
313.12  practice of alcohol and drug counseling, the core functions, or 
313.13  the rules of professional conduct in Minnesota Rules, part 
313.14  4747.1400.  The continuing education reporting form must require 
313.15  reporting of the following information:  
313.16     (1) the continuing education activity title; 
313.17     (2) a brief description of the continuing education 
313.18  activity; 
313.19     (3) the sponsor, presenter, or author; 
313.20     (4) the location and attendance dates; 
313.21     (5) the number of clock hours; and 
313.22     (6) a statement that the information is true and correct to 
313.23  the best knowledge of the licensee.  
313.24     Only continuing education obtained during the previous 
313.25  two-year reporting period may be considered at the time of 
313.26  reporting.  Clock hours must be earned and reported in 
313.27  increments of one-half clock hour with a minimum of one clock 
313.28  hour for each continuing education activity.  
313.29     Subd. 2.  [CONTINUING EDUCATION REQUIREMENTS FOR LICENSEE'S 
313.30  FIRST FOUR YEARS.] A licensee must, as part of meeting the clock 
313.31  hour requirement of this section, obtain and document 18 hours 
313.32  of cultural diversity training within the first four years after 
313.33  the licensee's initial license effective date according to the 
313.34  commissioner's reporting schedule.  
313.35     Subd. 3.  [CONTINUING EDUCATION REQUIREMENTS AFTER 
313.36  LICENSEE'S INITIAL FOUR YEARS.] Beginning four years following a 
314.1   licensee's initial license effective date and according to the 
314.2   board's reporting schedule, a licensee must document completion 
314.3   of a minimum of six clock hours each reporting period of 
314.4   cultural diversity training.  Licensees must also document 
314.5   completion of six clock hours in courses directly related to the 
314.6   rules of professional conduct in Minnesota Rules, part 4747.1400.
314.7      Subd. 4.  [STANDARDS FOR APPROVAL.] In order to obtain 
314.8   clock hour credit for a continuing education activity, the 
314.9   activity must: 
314.10     (1) constitute an organized program of learning; 
314.11     (2) reasonably be expected to advance the knowledge and 
314.12  skills of the alcohol and drug counselor; 
314.13     (3) pertain to subjects that directly relate to the 
314.14  practice of alcohol and drug counseling and the core functions 
314.15  of an alcohol and drug counselor, or the rules of professional 
314.16  conduct in Minnesota Rules, part 4747.1400; 
314.17     (4) be conducted by individuals who have education, 
314.18  training, and experience and are knowledgeable about the subject 
314.19  matter; and 
314.20     (5) be presented by a sponsor who has a system to verify 
314.21  participation and maintains attendance records for three years, 
314.22  unless the sponsor provides dated evidence to each participant 
314.23  with the number of clock hours awarded.  
314.24     Sec. 26.  Minnesota Statutes 2002, section 148C.10, 
314.25  subdivision 1, is amended to read: 
314.26     Subdivision 1.  [PRACTICE.] After the commissioner adopts 
314.27  rules, No individual person, other than those individuals 
314.28  exempted under section 148C.11, or 148C.045, shall engage in 
314.29  alcohol and drug counseling practice unless that individual 
314.30  holds a valid license without first being licensed under this 
314.31  chapter as an alcohol and drug counselor.  For purposes of this 
314.32  chapter, an individual engages in the practice of alcohol and 
314.33  drug counseling if the individual performs or offers to perform 
314.34  alcohol and drug counseling services as defined in section 
314.35  148C.01, subdivision 10, or if the individual is held out as 
314.36  able to perform those services.  
315.1      Sec. 27.  Minnesota Statutes 2002, section 148C.10, 
315.2   subdivision 2, is amended to read: 
315.3      Subd. 2.  [USE OF TITLES.] After the commissioner adopts 
315.4   rules, No individual person shall present themselves or any 
315.5   other individual to the public by any title incorporating the 
315.6   words "licensed alcohol and drug counselor" or otherwise hold 
315.7   themselves out to the public by any title or description stating 
315.8   or implying that they are licensed or otherwise qualified to 
315.9   practice alcohol and drug counseling unless that individual 
315.10  holds a valid license.  City, county, and state agency alcohol 
315.11  and drug counselors who are not licensed under sections 148C.01 
315.12  to 148C.11 may use the title "city agency alcohol and drug 
315.13  counselor," "county agency alcohol and drug counselor," or 
315.14  "state agency alcohol and drug counselor."  Hospital alcohol and 
315.15  drug counselors who are not licensed under sections 148C.01 to 
315.16  148C.11 may use the title "hospital alcohol and drug counselor" 
315.17  while acting within the scope of their employment Persons issued 
315.18  a temporary permit must use titles consistent with section 
315.19  148C.04, subdivision 6, paragraph (c). 
315.20     Sec. 28.  Minnesota Statutes 2002, section 148C.11, is 
315.21  amended to read: 
315.22     148C.11 [EXCEPTIONS TO LICENSE REQUIREMENT.] 
315.23     Subdivision 1.  [OTHER PROFESSIONALS.] (a) Nothing in 
315.24  sections 148C.01 to 148C.10 shall prevent this chapter prevents 
315.25  members of other professions or occupations from performing 
315.26  functions for which they are qualified or licensed.  This 
315.27  exception includes, but is not limited to, licensed physicians, 
315.28  registered nurses, licensed practical nurses, licensed 
315.29  psychological practitioners, members of the clergy, American 
315.30  Indian medicine men and women, licensed attorneys, probation 
315.31  officers, licensed marriage and family therapists, licensed 
315.32  social workers, licensed professional counselors, licensed 
315.33  school counselors, and registered occupational therapists or 
315.34  occupational therapy assistants. 
315.35     (b) Nothing in this chapter prohibits technicians and 
315.36  resident managers in programs licensed by the department of 
316.1   human services from discharging their duties as provided in 
316.2   Minnesota Rules, chapter 9530.  
316.3      (c) Any person who is exempt under this section but who 
316.4   elects to obtain a license under this chapter is subject to this 
316.5   chapter to the same extent as other licensees.  
316.6      (d) These persons must not, however, use a title 
316.7   incorporating the words "alcohol and drug counselor" or 
316.8   "licensed alcohol and drug counselor" or otherwise hold 
316.9   themselves out to the public by any title or description stating 
316.10  or implying that they are engaged in the practice of alcohol and 
316.11  drug counseling, or that they are licensed to engage in the 
316.12  practice of alcohol and drug counseling.  Persons engaged in the 
316.13  practice of alcohol and drug counseling are not exempt from the 
316.14  commissioner's jurisdiction solely by the use of one of the 
316.15  above titles. 
316.16     Subd. 2.  [STUDENTS.] Nothing in sections 148C.01 to 
316.17  148C.10 shall prevent students enrolled in an accredited school 
316.18  of alcohol and drug counseling from engaging in the practice of 
316.19  alcohol and drug counseling while under qualified supervision in 
316.20  an accredited school of alcohol and drug counseling.  
316.21     Subd. 3.  [FEDERALLY RECOGNIZED TRIBES; ETHNIC MINORITIES.] 
316.22  (a) Alcohol and drug counselors licensed to practice practicing 
316.23  alcohol and drug counseling according to standards established 
316.24  by federally recognized tribes, while practicing under tribal 
316.25  jurisdiction, are exempt from the requirements of this chapter.  
316.26  In practicing alcohol and drug counseling under tribal 
316.27  jurisdiction, individuals licensed practicing under that 
316.28  authority shall be afforded the same rights, responsibilities, 
316.29  and recognition as persons licensed pursuant to this chapter. 
316.30     (b) The commissioner shall develop special licensing 
316.31  criteria for issuance of a license to alcohol and drug 
316.32  counselors who:  (1) practice alcohol and drug counseling with a 
316.33  member of an ethnic minority population or with a person with a 
316.34  disability as defined by rule; or (2) are employed by agencies 
316.35  whose primary agency service focus addresses ethnic minority 
316.36  populations or persons with a disability as defined by rule.  
317.1   These licensing criteria may differ from the licensing 
317.2   criteria requirements specified in section 148C.04.  To develop, 
317.3   implement, and evaluate the effect of these criteria, the 
317.4   commissioner shall establish a committee comprised of, but not 
317.5   limited to, representatives from the Minnesota commission 
317.6   serving deaf and hard-of-hearing people, the council on affairs 
317.7   of Chicano/Latino people, the council on Asian-Pacific 
317.8   Minnesotans, the council on Black Minnesotans, the council on 
317.9   disability, and the Indian affairs council.  The committee does 
317.10  not expire. 
317.11     (c) The commissioner shall issue a license to an applicant 
317.12  who (1) is an alcohol and drug counselor who is exempt under 
317.13  paragraph (a) from the requirements of this chapter; (2) has at 
317.14  least 2,000 hours of alcohol and drug counselor experience as 
317.15  defined by the core functions; and (3) meets the licensing 
317.16  requirements that are in effect on the date of application under 
317.17  section 148C.04, subdivision 3 or 4, except the written case 
317.18  presentation and oral examination component under section 
317.19  148C.04, subdivision 3, clause (2), or 4, clause (1), item 
317.20  (ii).  When applying for a license under this paragraph, an 
317.21  applicant must follow the procedures for admission to licensure 
317.22  specified under section 148C.0351.  A person who receives a 
317.23  license under this paragraph must complete the written case 
317.24  presentation and satisfactorily pass the oral examination 
317.25  component under section 148C.04, subdivision 3, clause (2), or 
317.26  4, clause (1), item (ii), at the earliest available opportunity 
317.27  after the commissioner begins administering oral examinations.  
317.28  The commissioner may suspend or restrict a person's license 
317.29  according to section 148C.09 if the person fails to complete the 
317.30  written case presentation and satisfactorily pass the oral 
317.31  examination.  This paragraph expires July 1, 2004. 
317.32     Subd. 4.  [HOSPITAL ALCOHOL AND DRUG COUNSELORS.] The 
317.33  licensing of hospital alcohol and drug counselors shall be 
317.34  voluntary, while the counselor is employed by the hospital.  
317.35  Effective January 1, 2006, hospitals employing alcohol and drug 
317.36  counselors shall not be required to employ licensed alcohol and 
318.1   drug counselors, nor shall they require their alcohol and drug 
318.2   counselors to be licensed, however, nothing in this chapter will 
318.3   prohibit hospitals from requiring their counselors to be 
318.4   eligible for licensure.  An alcohol or drug counselor employed 
318.5   by a hospital must be licensed as an alcohol and drug counselor 
318.6   in accordance with this chapter.  
318.7      Subd. 5.  [CITY, COUNTY, AND STATE AGENCY ALCOHOL AND DRUG 
318.8   COUNSELORS.] The licensing of city, county, and state agency 
318.9   alcohol and drug counselors shall be voluntary, while the 
318.10  counselor is employed by the city, county, or state agency.  
318.11  Effective January 1, 2006, city, county, and state agencies 
318.12  employing alcohol and drug counselors shall not be required to 
318.13  employ licensed alcohol and drug counselors, nor shall they 
318.14  require their drug and alcohol counselors to be licensed.  An 
318.15  alcohol and drug counselor employed by a city, county, or state 
318.16  agency must be licensed as an alcohol and drug counselor in 
318.17  accordance with this chapter.  
318.18     Subd. 6.  [TRANSITION PERIOD FOR HOSPITAL AND CITY, COUNTY, 
318.19  AND STATE AGENCY ALCOHOL AND DRUG COUNSELORS.] For the period 
318.20  between July 1, 2003, and January 1, 2006, the commissioner 
318.21  shall grant a license to an individual who is employed as an 
318.22  alcohol and drug counselor at a Minnesota hospital or a city, 
318.23  county, or state agency in Minnesota if the individual:  
318.24     (1) was employed as an alcohol and drug counselor at a 
318.25  hospital or a city, county, or state agency before August 1, 
318.26  2002; 
318.27     (2) has 8,000 hours of alcohol and drug counselor work 
318.28  experience; 
318.29     (3) has completed a written case presentation and 
318.30  satisfactorily passed an oral examination established by the 
318.31  commissioner; 
318.32     (4) has satisfactorily passed a written examination as 
318.33  established by the commissioner; and 
318.34     (5) meets the requirements in section 148C.0351. 
318.35     Sec. 29.  [148C.12] [FEES.] 
318.36     Subdivision 1.  [APPLICATION FEE.] The application fee is 
319.1   $295.  
319.2      Subd. 2.  [BIENNIAL RENEWAL FEE.] The license renewal fee 
319.3   is $295.  If the commissioner changes the renewal schedule and 
319.4   the expiration date is less than two years, the fee must be 
319.5   prorated.  
319.6      Subd. 3.  [TEMPORARY PERMIT FEE.] The initial fee for 
319.7   applicants under section 148C.04, subdivision 6, paragraph (a), 
319.8   is $100.  The fee for annual renewal of a temporary permit is 
319.9   $100.  
319.10     Subd. 4.  [EXAMINATION FEE.] The examination fee for the 
319.11  written examination is $95 and for the oral examination is $200. 
319.12     Subd. 5.  [INACTIVE RENEWAL FEE.] The inactive renewal fee 
319.13  is $150.  
319.14     Subd. 6.  [LATE FEE.] The late fee is 25 percent of the 
319.15  biennial renewal fee, the inactive renewal fee, or the annual 
319.16  fee for renewal of temporary practice status.  
319.17     Subd. 7.  [FEE TO RENEW AFTER EXPIRATION OF LICENSE.] The 
319.18  fee for renewal of a license that has expired for less than two 
319.19  years is the total of the biennial renewal fee, the late fee, 
319.20  and a fee of $100 for review and approval of the continuing 
319.21  education report.  
319.22     Subd. 8.  [FEE FOR LICENSE VERIFICATIONS.] The fee for 
319.23  license verification to institutions and other jurisdictions is 
319.24  $25.  
319.25     Subd. 9.  [SURCHARGE FEE.] Notwithstanding section 
319.26  16A.1285, subdivision 2, a surcharge of $99 shall be paid at the 
319.27  time of initial application for or renewal of an alcohol and 
319.28  drug counselor license until June 30, 2013.  
319.29     Subd. 10.  [NONREFUNDABLE FEES.] All fees are nonrefundable.
319.30     Sec. 30.  [REPEALER.] 
319.31     (a) Minnesota Statutes 2002, sections 148C.0351, 
319.32  subdivision 2; 148C.05, subdivisions 2, 3, and 4; 148C.06; and 
319.33  148C.10, subdivision 1a, are repealed.  
319.34     (b) Minnesota Rules, parts 4747.0030, subparts 25, 28, and 
319.35  30; 4747.0040, subpart 3, item A; 4747.0060, subpart 1, items A, 
319.36  B, and D; 4747.0070, subparts 4 and 5; 4747.0080; 4747.0090; 
320.1   4747.0100; 4747.0300; 4747.0400, subparts 2 and 3; 4747.0500; 
320.2   4747.0600; 4747.1000; 4747.1100, subpart 3; and 4747.1600, are 
320.3   repealed. 
320.4                              ARTICLE 6 
320.5            HUMAN SERVICES LICENSING, COUNTY INITIATIVES, 
320.6                           AND MISCELLANEOUS 
320.7      Section 1.  Minnesota Statutes 2002, section 69.021, 
320.8   subdivision 11, is amended to read: 
320.9      Subd. 11.  [EXCESS POLICE STATE-AID HOLDING ACCOUNT.] (a) 
320.10  The excess police state-aid holding account is established in 
320.11  the general fund.  The excess police state-aid holding account 
320.12  must be administered by the commissioner. 
320.13     (b) Excess police state aid determined according to 
320.14  subdivision 10, must be deposited in the excess police state-aid 
320.15  holding account. 
320.16     (c) From the balance in the excess police state-aid holding 
320.17  account, $1,000,000 $900,000 is appropriated to and must be 
320.18  transferred annually to the ambulance service personnel 
320.19  longevity award and incentive suspense account established by 
320.20  section 144E.42, subdivision 2. 
320.21     (d) If a police officer stress reduction program is created 
320.22  by law and money is appropriated for that program, an amount 
320.23  equal to that appropriation must be transferred from the balance 
320.24  in the excess police state-aid holding account. 
320.25     (e) On October 1, 1997, and annually on each subsequent 
320.26  October 1, one-half of the balance of the excess police 
320.27  state-aid holding account remaining after the deductions under 
320.28  paragraphs (c) and (d) is appropriated for additional 
320.29  amortization aid under section 423A.02, subdivision 1b. 
320.30     (f) Annually, the remaining balance in the excess police 
320.31  state-aid holding account, after the deductions under paragraphs 
320.32  (c), (d), and (e), cancels to the general fund. 
320.33     Sec. 2.  Minnesota Statutes 2002, section 245.0312, is 
320.34  amended to read: 
320.35     245.0312 [DESIGNATING SPECIAL UNITS AND REGIONAL CENTERS.] 
320.36     Notwithstanding any provision of law to the contrary, 
321.1   during the biennium, the commissioner of human services, upon 
321.2   the approval of the governor after consulting with the 
321.3   legislative advisory commission, may designate portions of 
321.4   hospitals for the mentally ill state-operated services 
321.5   facilities under the commissioner's control as special care 
321.6   units for mentally retarded or inebriate persons, or as nursing 
321.7   homes for persons over the age of 65, and may designate portions 
321.8   of the hospitals designated in Minnesota Statutes 1969, section 
321.9   252.025, subdivision 1, as special care units for mentally ill 
321.10  or inebriate persons, and may plan to develop all hospitals for 
321.11  mentally ill, mentally retarded, or inebriate persons under the 
321.12  commissioner's control as multipurpose regional centers for 
321.13  programs related to all of the said problems.  
321.14     If approved by the governor, the commissioner may rename 
321.15  the state hospital as a state regional center and appoint the 
321.16  hospital administrator as administrator of the center, in 
321.17  accordance with section 246.0251.  
321.18     The directors of the separate program units of regional 
321.19  centers shall be responsible directly to the commissioner at the 
321.20  discretion of the commissioner. 
321.21     Sec. 3.  [245.945] [REIMBURSEMENT TO OMBUDSMAN FOR MENTAL 
321.22  HEALTH AND MENTAL RETARDATION.] 
321.23     The commissioner shall obtain federal financial 
321.24  participation for eligible activity by the ombudsman for mental 
321.25  health and mental retardation.  The ombudsman shall maintain and 
321.26  transmit to the department of human services documentation that 
321.27  is necessary in order to obtain federal funds. 
321.28     Sec. 4.  Minnesota Statutes 2002, section 245A.035, 
321.29  subdivision 3, is amended to read: 
321.30     Subd. 3.  [REQUIREMENTS FOR EMERGENCY LICENSE.] Before an 
321.31  emergency license may be issued, the following requirements must 
321.32  be met: 
321.33     (1) the county agency must conduct an initial inspection of 
321.34  the premises where the foster care is to be provided to ensure 
321.35  the health and safety of any child placed in the home.  The 
321.36  county agency shall conduct the inspection using a form 
322.1   developed by the commissioner; 
322.2      (2) at the time of the inspection or placement, whichever 
322.3   is earlier, the relative being considered for an emergency 
322.4   license shall receive an application form for a child foster 
322.5   care license; 
322.6      (3) whenever possible, prior to placing the child in the 
322.7   relative's home, the relative being considered for an emergency 
322.8   license shall provide the information required by section 
322.9   245A.04, subdivision 3, paragraph (b) (k); and 
322.10     (4) if the county determines, prior to the issuance of an 
322.11  emergency license, that anyone requiring a background study may 
322.12  be disqualified under section 245A.04, and the disqualification 
322.13  is one which the commissioner cannot set aside, an emergency 
322.14  license shall not be issued. 
322.15     [EFFECTIVE DATE.] This section is effective the day 
322.16  following final enactment. 
322.17     Sec. 5.  Minnesota Statutes 2002, section 245A.04, 
322.18  subdivision 3, is amended to read: 
322.19     Subd. 3.  [BACKGROUND STUDY OF THE APPLICANT; DEFINITIONS.] 
322.20  (a) Individuals and organizations that are required in statute 
322.21  to initiate background studies under this section shall comply 
322.22  with the following requirements: 
322.23     (1) Applicants for licensure, license holders, and other 
322.24  entities as provided in this section must submit completed 
322.25  background study forms to the commissioner before individuals 
322.26  specified in paragraph (c), clauses (1) to (4), (6), and (7), 
322.27  begin positions allowing direct contact in any licensed program. 
322.28     (2) Applicants and license holders under the jurisdiction 
322.29  of other state agencies who are required in other statutory 
322.30  sections to initiate background studies under this section must 
322.31  submit completed background study forms to the commissioner 
322.32  prior to the background study subject beginning in a position 
322.33  allowing direct contact in the licensed program, or where 
322.34  applicable, prior to being employed. 
322.35     (3) Organizations required to initiate background studies 
322.36  under section 256B.0627 for individuals described in paragraph 
323.1   (c), clause (5), must submit a completed background study form 
323.2   to the commissioner before those individuals begin a position 
323.3   allowing direct contact with persons served by the 
323.4   organization.  The commissioner shall recover the cost of these 
323.5   background studies through a fee of no more than $12 per study 
323.6   charged to the organization responsible for submitting the 
323.7   background study form.  The fees collected under this paragraph 
323.8   are appropriated to the commissioner for the purpose of 
323.9   conducting background studies.  
323.10     Upon receipt of the background study forms from the 
323.11  entities in clauses (1) to (3), the commissioner shall complete 
323.12  the background study as specified under this section and provide 
323.13  notices required in subdivision 3a.  Unless otherwise specified, 
323.14  the subject of a background study may have direct contact with 
323.15  persons served by a program after the background study form is 
323.16  mailed or submitted to the commissioner pending notification of 
323.17  the study results under subdivision 3a.  A county agency may 
323.18  accept a background study completed by the commissioner under 
323.19  this section in place of the background study required under 
323.20  section 245A.16, subdivision 3, in programs with joint licensure 
323.21  as home and community-based services and adult foster care for 
323.22  people with developmental disabilities when the license holder 
323.23  does not reside in the foster care residence and the subject of 
323.24  the study has been continuously affiliated with the license 
323.25  holder since the date of the commissioner's study. 
323.26     (b) The definitions in this paragraph apply only to 
323.27  subdivisions 3 to 3e. 
323.28     (1) "Background study" means the review of records 
323.29  conducted by the commissioner to determine whether a subject is 
323.30  disqualified from direct contact with persons served by a 
323.31  program, and where specifically provided in statutes, whether a 
323.32  subject is disqualified from having access to persons served by 
323.33  a program. 
323.34     (2) "Continuous, direct supervision" means an individual is 
323.35  within sight or hearing of the supervising person to the extent 
323.36  that supervising person is capable at all times of intervening 
324.1   to protect the health and safety of the persons served by the 
324.2   program. 
324.3      (3) "Contractor" means any person, regardless of employer, 
324.4   who is providing program services for hire under the control of 
324.5   the provider. 
324.6      (4) "Direct contact" means providing face-to-face care, 
324.7   training, supervision, counseling, consultation, or medication 
324.8   assistance to persons served by the program. 
324.9      (5) "Reasonable cause" means information or circumstances 
324.10  exist which provide the commissioner with articulable suspicion 
324.11  that further pertinent information may exist concerning a 
324.12  subject.  The commissioner has reasonable cause when, but not 
324.13  limited to, the commissioner has received a report from the 
324.14  subject, the license holder, or a third party indicating that 
324.15  the subject has a history that would disqualify the person or 
324.16  that may pose a risk to the health or safety of persons 
324.17  receiving services. 
324.18     (6) "Subject of a background study" means an individual on 
324.19  whom a background study is required or completed. 
324.20     (c) The applicant, license holder, registrant under section 
324.21  144A.71, subdivision 1, bureau of criminal apprehension, 
324.22  commissioner of health, and county agencies, after written 
324.23  notice to the individual who is the subject of the study, shall 
324.24  help with the study by giving the commissioner criminal 
324.25  conviction data and reports about the maltreatment of adults 
324.26  substantiated under section 626.557 and the maltreatment of 
324.27  minors in licensed programs substantiated under section 
324.28  626.556.  If a background study is initiated by an applicant or 
324.29  license holder and the applicant or license holder receives 
324.30  information about the possible criminal or maltreatment history 
324.31  of an individual who is the subject of the background study, the 
324.32  applicant or license holder must immediately provide the 
324.33  information to the commissioner.  The individuals to be studied 
324.34  shall include: 
324.35     (1) the applicant; 
324.36     (2) persons age 13 and over living in the household where 
325.1   the licensed program will be provided; 
325.2      (3) current employees or contractors of the applicant who 
325.3   will have direct contact with persons served by the facility, 
325.4   agency, or program; 
325.5      (4) volunteers or student volunteers who have direct 
325.6   contact with persons served by the program to provide program 
325.7   services, if the contact is not under the continuous, direct 
325.8   supervision by an individual listed in clause (1) or (3); 
325.9      (5) any person required under section 256B.0627 to have a 
325.10  background study completed under this section; 
325.11     (6) persons ages 10 to 12 living in the household where the 
325.12  licensed services will be provided when the commissioner has 
325.13  reasonable cause; and 
325.14     (7) persons who, without providing direct contact services 
325.15  at a licensed program, may have unsupervised access to children 
325.16  or vulnerable adults receiving services from the program 
325.17  licensed to provide family child care for children, foster care 
325.18  for children in the provider's own home, or foster care or day 
325.19  care services for adults in the provider's own home when the 
325.20  commissioner has reasonable cause. 
325.21     (d) According to paragraph (c), clauses (2) and (6), the 
325.22  commissioner shall review records from the juvenile courts.  For 
325.23  persons under paragraph (c), clauses (1), (3), (4), (5), and 
325.24  (7), who are ages 13 to 17, the commissioner shall review 
325.25  records from the juvenile courts when the commissioner has 
325.26  reasonable cause.  The juvenile courts shall help with the study 
325.27  by giving the commissioner existing juvenile court records on 
325.28  individuals described in paragraph (c), clauses (2), (6), and 
325.29  (7), relating to delinquency proceedings held within either the 
325.30  five years immediately preceding the background study or the 
325.31  five years immediately preceding the individual's 18th birthday, 
325.32  whichever time period is longer.  The commissioner shall destroy 
325.33  juvenile records obtained pursuant to this subdivision when the 
325.34  subject of the records reaches age 23. 
325.35     (e) Beginning August 1, 2001, the commissioner shall 
325.36  conduct all background studies required under this chapter and 
326.1   initiated by supplemental nursing services agencies registered 
326.2   under section 144A.71, subdivision 1.  Studies for the agencies 
326.3   must be initiated annually by each agency.  The commissioner 
326.4   shall conduct the background studies according to this chapter.  
326.5   The commissioner shall recover the cost of the background 
326.6   studies through a fee of no more than $8 per study, charged to 
326.7   the supplemental nursing services agency.  The fees collected 
326.8   under this paragraph are appropriated to the commissioner for 
326.9   the purpose of conducting background studies. 
326.10     (f) For purposes of this section, a finding that a 
326.11  delinquency petition is proven in juvenile court shall be 
326.12  considered a conviction in state district court. 
326.13     (g) A study of an individual in paragraph (c), clauses (1) 
326.14  to (7), shall be conducted at least upon application for initial 
326.15  license for all license types or registration under section 
326.16  144A.71, subdivision 1, and at reapplication for a license for 
326.17  family child care, child foster care, and adult foster care.  
326.18  The commissioner is not required to conduct a study of an 
326.19  individual at the time of reapplication for a license or if the 
326.20  individual has been continuously affiliated with a foster care 
326.21  provider licensed by the commissioner of human services and 
326.22  registered under chapter 144D, other than a family day care or 
326.23  foster care license, if:  (i) a study of the individual was 
326.24  conducted either at the time of initial licensure or when the 
326.25  individual became affiliated with the license holder; (ii) the 
326.26  individual has been continuously affiliated with the license 
326.27  holder since the last study was conducted; and (iii) the 
326.28  procedure described in paragraph (j) has been implemented and 
326.29  was in effect continuously since the last study was conducted.  
326.30  For the purposes of this section, a physician licensed under 
326.31  chapter 147 is considered to be continuously affiliated upon the 
326.32  license holder's receipt from the commissioner of health or 
326.33  human services of the physician's background study results.  For 
326.34  individuals who are required to have background studies under 
326.35  paragraph (c) and who have been continuously affiliated with a 
326.36  foster care provider that is licensed in more than one county, 
327.1   criminal conviction data may be shared among those counties in 
327.2   which the foster care programs are licensed.  A county agency's 
327.3   receipt of criminal conviction data from another county agency 
327.4   shall meet the criminal data background study requirements of 
327.5   this section. 
327.6      (h) The commissioner may also conduct studies on 
327.7   individuals specified in paragraph (c), clauses (3) and (4), 
327.8   when the studies are initiated by: 
327.9      (i) personnel pool agencies; 
327.10     (ii) temporary personnel agencies; 
327.11     (iii) educational programs that train persons by providing 
327.12  direct contact services in licensed programs; and 
327.13     (iv) professional services agencies that are not licensed 
327.14  and which contract with licensed programs to provide direct 
327.15  contact services or individuals who provide direct contact 
327.16  services. 
327.17     (i) Studies on individuals in paragraph (h), items (i) to 
327.18  (iv), must be initiated annually by these agencies, programs, 
327.19  and individuals.  Except as provided in paragraph (a), clause 
327.20  (3), no applicant, license holder, or individual who is the 
327.21  subject of the study shall pay any fees required to conduct the 
327.22  study. 
327.23     (1) At the option of the licensed facility, rather than 
327.24  initiating another background study on an individual required to 
327.25  be studied who has indicated to the licensed facility that a 
327.26  background study by the commissioner was previously completed, 
327.27  the facility may make a request to the commissioner for 
327.28  documentation of the individual's background study status, 
327.29  provided that: 
327.30     (i) the facility makes this request using a form provided 
327.31  by the commissioner; 
327.32     (ii) in making the request the facility informs the 
327.33  commissioner that either: 
327.34     (A) the individual has been continuously affiliated with a 
327.35  licensed facility since the individual's previous background 
327.36  study was completed, or since October 1, 1995, whichever is 
328.1   shorter; or 
328.2      (B) the individual is affiliated only with a personnel pool 
328.3   agency, a temporary personnel agency, an educational program 
328.4   that trains persons by providing direct contact services in 
328.5   licensed programs, or a professional services agency that is not 
328.6   licensed and which contracts with licensed programs to provide 
328.7   direct contact services or individuals who provide direct 
328.8   contact services; and 
328.9      (iii) the facility provides notices to the individual as 
328.10  required in paragraphs (a) to (j), and that the facility is 
328.11  requesting written notification of the individual's background 
328.12  study status from the commissioner.  
328.13     (2) The commissioner shall respond to each request under 
328.14  paragraph (1) with a written or electronic notice to the 
328.15  facility and the study subject.  If the commissioner determines 
328.16  that a background study is necessary, the study shall be 
328.17  completed without further request from a licensed agency or 
328.18  notifications to the study subject.  
328.19     (3) When a background study is being initiated by a 
328.20  licensed facility or a foster care provider that is also 
328.21  registered under chapter 144D, a study subject affiliated with 
328.22  multiple licensed facilities may attach to the background study 
328.23  form a cover letter indicating the additional facilities' names, 
328.24  addresses, and background study identification numbers.  When 
328.25  the commissioner receives such notices, each facility identified 
328.26  by the background study subject shall be notified of the study 
328.27  results.  The background study notice sent to the subsequent 
328.28  agencies shall satisfy those facilities' responsibilities for 
328.29  initiating a background study on that individual. 
328.30     (j) If an individual who is affiliated with a program or 
328.31  facility regulated by the department of human services or 
328.32  department of health, a facility serving children or youth 
328.33  licensed by the department of corrections, or who is affiliated 
328.34  with any type of home care agency or provider of personal care 
328.35  assistance services, is convicted of a crime constituting a 
328.36  disqualification under subdivision 3d, the probation officer or 
329.1   corrections agent shall notify the commissioner of the 
329.2   conviction.  For the purpose of this paragraph, "conviction" has 
329.3   the meaning given it in section 609.02, subdivision 5.  The 
329.4   commissioner, in consultation with the commissioner of 
329.5   corrections, shall develop forms and information necessary to 
329.6   implement this paragraph and shall provide the forms and 
329.7   information to the commissioner of corrections for distribution 
329.8   to local probation officers and corrections agents.  The 
329.9   commissioner shall inform individuals subject to a background 
329.10  study that criminal convictions for disqualifying crimes will be 
329.11  reported to the commissioner by the corrections system.  A 
329.12  probation officer, corrections agent, or corrections agency is 
329.13  not civilly or criminally liable for disclosing or failing to 
329.14  disclose the information required by this paragraph.  Upon 
329.15  receipt of disqualifying information, the commissioner shall 
329.16  provide the notifications required in subdivision 3a, as 
329.17  appropriate to agencies on record as having initiated a 
329.18  background study or making a request for documentation of the 
329.19  background study status of the individual.  This paragraph does 
329.20  not apply to family day care and child foster care programs. 
329.21     (k) The individual who is the subject of the study must 
329.22  provide the applicant or license holder with sufficient 
329.23  information to ensure an accurate study including the 
329.24  individual's first, middle, and last name and all other names by 
329.25  which the individual has been known; home address, city, county, 
329.26  and state of residence for the past five years; zip code; sex; 
329.27  date of birth; and driver's license number or state 
329.28  identification number.  The applicant or license holder shall 
329.29  provide this information about an individual in paragraph (c), 
329.30  clauses (1) to (7), on forms prescribed by the commissioner.  By 
329.31  January 1, 2000, for background studies conducted by the 
329.32  department of human services, the commissioner shall implement a 
329.33  system for the electronic transmission of:  (1) background study 
329.34  information to the commissioner; and (2) background study 
329.35  results to the license holder.  The commissioner may request 
329.36  additional information of the individual, which shall be 
330.1   optional for the individual to provide, such as the individual's 
330.2   social security number or race. 
330.3      (l) For programs directly licensed by the commissioner, a 
330.4   study must include information related to names of substantiated 
330.5   perpetrators of maltreatment of vulnerable adults that has been 
330.6   received by the commissioner as required under section 626.557, 
330.7   subdivision 9c, paragraph (i), and the commissioner's records 
330.8   relating to the maltreatment of minors in licensed programs, 
330.9   information from juvenile courts as required in paragraph (c) 
330.10  for persons listed in paragraph (c), clauses (2), (6), and (7), 
330.11  and information from the bureau of criminal apprehension.  For 
330.12  child foster care, adult foster care, and family day care homes, 
330.13  the study must include information from the county agency's 
330.14  record of substantiated maltreatment of adults, and the 
330.15  maltreatment of minors, information from juvenile courts as 
330.16  required in paragraph (c) for persons listed in paragraph (c), 
330.17  clauses (2), (6), and (7), and information from the bureau of 
330.18  criminal apprehension.  For any background study completed under 
330.19  this section, the commissioner may also review arrest and 
330.20  investigative information from the bureau of criminal 
330.21  apprehension, the commissioner of health, a county attorney, 
330.22  county sheriff, county agency, local chief of police, other 
330.23  states, the courts, or the Federal Bureau of Investigation if 
330.24  the commissioner has reasonable cause to believe the information 
330.25  is pertinent to the disqualification of an individual listed in 
330.26  paragraph (c), clauses (1) to (7).  The commissioner is not 
330.27  required to conduct more than one review of a subject's records 
330.28  from the Federal Bureau of Investigation if a review of the 
330.29  subject's criminal history with the Federal Bureau of 
330.30  Investigation has already been completed by the commissioner and 
330.31  there has been no break in the subject's affiliation with the 
330.32  license holder who initiated the background study. 
330.33     (m) For any background study completed under this section, 
330.34  when the commissioner has reasonable cause to believe that 
330.35  further pertinent information may exist on the subject, the 
330.36  subject shall provide a set of classifiable fingerprints 
331.1   obtained from an authorized law enforcement agency.  For 
331.2   purposes of requiring fingerprints, the commissioner shall be 
331.3   considered to have reasonable cause under, but not limited to, 
331.4   the following circumstances: 
331.5      (1) information from the bureau of criminal apprehension 
331.6   indicates that the subject is a multistate offender; 
331.7      (2) information from the bureau of criminal apprehension 
331.8   indicates that multistate offender status is undetermined; or 
331.9      (3) the commissioner has received a report from the subject 
331.10  or a third party indicating that the subject has a criminal 
331.11  history in a jurisdiction other than Minnesota. 
331.12     (n) The failure or refusal of an applicant, license holder, 
331.13  or registrant under section 144A.71, subdivision 1, to cooperate 
331.14  with the commissioner is reasonable cause to disqualify a 
331.15  subject, deny a license application or immediately suspend, 
331.16  suspend, or revoke a license or registration.  Failure or 
331.17  refusal of an individual to cooperate with the study is just 
331.18  cause for denying or terminating employment of the individual if 
331.19  the individual's failure or refusal to cooperate could cause the 
331.20  applicant's application to be denied or the license holder's 
331.21  license to be immediately suspended, suspended, or revoked. 
331.22     (o) The commissioner shall not consider an application to 
331.23  be complete until all of the information required to be provided 
331.24  under this subdivision has been received.  
331.25     (p) No person in paragraph (c), clauses (1) to (7), who is 
331.26  disqualified as a result of this section may be retained by the 
331.27  agency in a position involving direct contact with persons 
331.28  served by the program and no person in paragraph (c), clauses 
331.29  (2), (6), and (7), or as provided elsewhere in statute who is 
331.30  disqualified as a result of this section may be allowed access 
331.31  to persons served by the program, unless the commissioner has 
331.32  provided written notice to the agency stating that: 
331.33     (1) the individual may remain in direct contact during the 
331.34  period in which the individual may request reconsideration as 
331.35  provided in subdivision 3a, paragraph (b), clause (2) or (3); 
331.36     (2) the individual's disqualification has been set aside 
332.1   for that agency as provided in subdivision 3b, paragraph (b); or 
332.2      (3) the license holder has been granted a variance for the 
332.3   disqualified individual under subdivision 3e. 
332.4      (q) Termination of affiliation with persons in paragraph 
332.5   (c), clauses (1) to (7), made in good faith reliance on a notice 
332.6   of disqualification provided by the commissioner shall not 
332.7   subject the applicant or license holder to civil liability. 
332.8      (r) The commissioner may establish records to fulfill the 
332.9   requirements of this section. 
332.10     (s) The commissioner may not disqualify an individual 
332.11  subject to a study under this section because that person has, 
332.12  or has had, a mental illness as defined in section 245.462, 
332.13  subdivision 20. 
332.14     (t) An individual subject to disqualification under this 
332.15  subdivision has the applicable rights in subdivision 3a, 3b, or 
332.16  3c. 
332.17     (u) For the purposes of background studies completed by 
332.18  tribal organizations performing licensing activities otherwise 
332.19  required of the commissioner under this chapter, after obtaining 
332.20  consent from the background study subject, tribal licensing 
332.21  agencies shall have access to criminal history data in the same 
332.22  manner as county licensing agencies and private licensing 
332.23  agencies under this chapter. 
332.24     (v) County agencies shall have access to the criminal 
332.25  history data in the same manner as county licensing agencies 
332.26  under this chapter for purposes of background studies completed 
332.27  by county agencies on legal nonlicensed child care providers to 
332.28  determine eligibility for child care funds under chapter 119B. 
332.29     [EFFECTIVE DATE.] This section is effective the day 
332.30  following final enactment. 
332.31     Sec. 6.  Minnesota Statutes 2002, section 245A.04, 
332.32  subdivision 3b, is amended to read: 
332.33     Subd. 3b.  [RECONSIDERATION OF DISQUALIFICATION.] (a) The 
332.34  individual who is the subject of the disqualification may 
332.35  request a reconsideration of the disqualification.  
332.36     The individual must submit the request for reconsideration 
333.1   to the commissioner in writing.  A request for reconsideration 
333.2   for an individual who has been sent a notice of disqualification 
333.3   under subdivision 3a, paragraph (b), clause (1) or (2), must be 
333.4   submitted within 30 calendar days of the disqualified 
333.5   individual's receipt of the notice of disqualification.  Upon 
333.6   showing that the information in clause (1) or (2) cannot be 
333.7   obtained within 30 days, the disqualified individual may request 
333.8   additional time, not to exceed 30 days, to obtain that 
333.9   information.  A request for reconsideration for an individual 
333.10  who has been sent a notice of disqualification under subdivision 
333.11  3a, paragraph (b), clause (3), must be submitted within 15 
333.12  calendar days of the disqualified individual's receipt of the 
333.13  notice of disqualification.  An individual who was determined to 
333.14  have maltreated a child under section 626.556 or a vulnerable 
333.15  adult under section 626.557, and who was disqualified under this 
333.16  section on the basis of serious or recurring maltreatment, may 
333.17  request reconsideration of both the maltreatment and the 
333.18  disqualification determinations.  The request for 
333.19  reconsideration of the maltreatment determination and the 
333.20  disqualification must be submitted within 30 calendar days of 
333.21  the individual's receipt of the notice of disqualification.  
333.22  Removal of a disqualified individual from direct contact shall 
333.23  be ordered if the individual does not request reconsideration 
333.24  within the prescribed time, and for an individual who submits a 
333.25  timely request for reconsideration, if the disqualification is 
333.26  not set aside.  The individual must present information showing 
333.27  that: 
333.28     (1) the information the commissioner relied upon in 
333.29  determining that the underlying conduct giving rise to the 
333.30  disqualification occurred, and for maltreatment, that the 
333.31  maltreatment was serious or recurring, is incorrect; or 
333.32     (2) the subject of the study does not pose a risk of harm 
333.33  to any person served by the applicant, license holder, or 
333.34  registrant under section 144A.71, subdivision 1. 
333.35     (b) The commissioner shall rescind the disqualification if 
333.36  the commissioner finds that the information relied on to 
334.1   disqualify the subject is incorrect.  The commissioner may set 
334.2   aside the disqualification under this section if the 
334.3   commissioner finds that the individual does not pose a risk of 
334.4   harm to any person served by the applicant, license holder, or 
334.5   registrant under section 144A.71, subdivision 1.  In determining 
334.6   that an individual does not pose a risk of harm, the 
334.7   commissioner shall consider the nature, severity, and 
334.8   consequences of the event or events that lead to 
334.9   disqualification, whether there is more than one disqualifying 
334.10  event, the age and vulnerability of the victim at the time of 
334.11  the event, the harm suffered by the victim, the similarity 
334.12  between the victim and persons served by the program, the time 
334.13  elapsed without a repeat of the same or similar event, 
334.14  documentation of successful completion by the individual studied 
334.15  of training or rehabilitation pertinent to the event, and any 
334.16  other information relevant to reconsideration.  In reviewing a 
334.17  disqualification under this section, the commissioner shall give 
334.18  preeminent weight to the safety of each person to be served by 
334.19  the license holder, applicant, or registrant under section 
334.20  144A.71, subdivision 1, over the interests of the license 
334.21  holder, applicant, or registrant under section 144A.71, 
334.22  subdivision 1.  If the commissioner sets aside a 
334.23  disqualification under this section, the disqualified individual 
334.24  remains disqualified, but may hold a license and have direct 
334.25  contact with or access to persons receiving services.  The 
334.26  commissioner's set aside of a disqualification is limited solely 
334.27  to the licensed program, applicant, or agency specified in the 
334.28  set aside notice, unless otherwise specified in the notice.  The 
334.29  commissioner may rescind a previous set aside of a 
334.30  disqualification under this section based on new information 
334.31  that indicates the individual may pose a risk of harm to persons 
334.32  served by the applicant, license holder, or registrant.  If the 
334.33  commissioner rescinds a set aside of a disqualification under 
334.34  this paragraph, the appeal rights under paragraphs (a) and (e) 
334.35  shall apply. 
334.36     (c) Unless the information the commissioner relied on in 
335.1   disqualifying an individual is incorrect, the commissioner may 
335.2   not set aside the disqualification of an individual in 
335.3   connection with a license to provide family day care for 
335.4   children, foster care for children in the provider's own home, 
335.5   or foster care or day care services for adults in the provider's 
335.6   own home if: 
335.7      (1) less than ten years have passed since the discharge of 
335.8   the sentence imposed for the offense; and the individual has 
335.9   been convicted of a violation of any offense listed in sections 
335.10  609.165 (felon ineligible to possess firearm), criminal 
335.11  vehicular homicide under 609.21 (criminal vehicular homicide and 
335.12  injury), 609.215 (aiding suicide or aiding attempted suicide), 
335.13  felony violations under 609.223 or 609.2231 (assault in the 
335.14  third or fourth degree), 609.713 (terroristic threats), 609.235 
335.15  (use of drugs to injure or to facilitate crime), 609.24 (simple 
335.16  robbery), 609.255 (false imprisonment), 609.562 (arson in the 
335.17  second degree), 609.71 (riot), 609.498, subdivision 1 or 1a 1b 
335.18  (aggravated first degree or first degree tampering with a 
335.19  witness), burglary in the first or second degree under 609.582 
335.20  (burglary), 609.66 (dangerous weapon), 609.665 (spring guns), 
335.21  609.67 (machine guns and short-barreled shotguns), 609.749, 
335.22  subdivision 2 (gross misdemeanor harassment; stalking), 152.021 
335.23  or 152.022 (controlled substance crime in the first or second 
335.24  degree), 152.023, subdivision 1, clause (3) or (4), or 
335.25  subdivision 2, clause (4) (controlled substance crime in the 
335.26  third degree), 152.024, subdivision 1, clause (2), (3), or (4) 
335.27  (controlled substance crime in the fourth degree), 609.224, 
335.28  subdivision 2, paragraph (c) (fifth-degree assault by a 
335.29  caregiver against a vulnerable adult), 609.23 (mistreatment of 
335.30  persons confined), 609.231 (mistreatment of residents or 
335.31  patients), 609.2325 (criminal abuse of a vulnerable adult), 
335.32  609.233 (criminal neglect of a vulnerable adult), 609.2335 
335.33  (financial exploitation of a vulnerable adult), 609.234 (failure 
335.34  to report), 609.265 (abduction), 609.2664 to 609.2665 
335.35  (manslaughter of an unborn child in the first or second degree), 
335.36  609.267 to 609.2672 (assault of an unborn child in the first, 
336.1   second, or third degree), 609.268 (injury or death of an unborn 
336.2   child in the commission of a crime), 617.293 (disseminating or 
336.3   displaying harmful material to minors), a felony level 
336.4   conviction involving alcohol or drug use, a gross misdemeanor 
336.5   offense under 609.324, subdivision 1 (other prohibited acts), a 
336.6   gross misdemeanor offense under 609.378 (neglect or endangerment 
336.7   of a child), a gross misdemeanor offense under 609.377 
336.8   (malicious punishment of a child), 609.72, subdivision 3 
336.9   (disorderly conduct against a vulnerable adult); or an attempt 
336.10  or conspiracy to commit any of these offenses, as each of these 
336.11  offenses is defined in Minnesota Statutes; or an offense in any 
336.12  other state, the elements of which are substantially similar to 
336.13  the elements of any of the foregoing offenses; 
336.14     (2) regardless of how much time has passed since the 
336.15  involuntary termination of parental rights under section 
336.16  260C.301 or the discharge of the sentence imposed for the 
336.17  offense, the individual was convicted of a violation of any 
336.18  offense listed in sections 609.185 to 609.195 (murder in the 
336.19  first, second, or third degree), 609.20 (manslaughter in the 
336.20  first degree), 609.205 (manslaughter in the second degree), 
336.21  609.245 (aggravated robbery), 609.25 (kidnapping), 609.561 
336.22  (arson in the first degree), 609.749, subdivision 3, 4, or 5 
336.23  (felony-level harassment; stalking), 609.228 (great bodily harm 
336.24  caused by distribution of drugs), 609.221 or 609.222 (assault in 
336.25  the first or second degree), 609.66, subdivision 1e (drive-by 
336.26  shooting), 609.855, subdivision 5 (shooting in or at a public 
336.27  transit vehicle or facility), 609.2661 to 609.2663 (murder of an 
336.28  unborn child in the first, second, or third degree), a felony 
336.29  offense under 609.377 (malicious punishment of a child), a 
336.30  felony offense under 609.324, subdivision 1 (other prohibited 
336.31  acts), a felony offense under 609.378 (neglect or endangerment 
336.32  of a child), 609.322 (solicitation, inducement, and promotion of 
336.33  prostitution), 609.342 to 609.345 (criminal sexual conduct in 
336.34  the first, second, third, or fourth degree), 609.352 
336.35  (solicitation of children to engage in sexual conduct), 617.246 
336.36  (use of minors in a sexual performance), 617.247 (possession of 
337.1   pictorial representations of a minor), 609.365 (incest), a 
337.2   felony offense under sections 609.2242 and 609.2243 (domestic 
337.3   assault), a felony offense of spousal abuse, a felony offense of 
337.4   child abuse or neglect, a felony offense of a crime against 
337.5   children, or an attempt or conspiracy to commit any of these 
337.6   offenses as defined in Minnesota Statutes, or an offense in any 
337.7   other state, the elements of which are substantially similar to 
337.8   any of the foregoing offenses; 
337.9      (3) within the seven years preceding the study, the 
337.10  individual committed an act that constitutes maltreatment of a 
337.11  child under section 626.556, subdivision 10e, and that resulted 
337.12  in substantial bodily harm as defined in section 609.02, 
337.13  subdivision 7a, or substantial mental or emotional harm as 
337.14  supported by competent psychological or psychiatric evidence; or 
337.15     (4) within the seven years preceding the study, the 
337.16  individual was determined under section 626.557 to be the 
337.17  perpetrator of a substantiated incident of maltreatment of a 
337.18  vulnerable adult that resulted in substantial bodily harm as 
337.19  defined in section 609.02, subdivision 7a, or substantial mental 
337.20  or emotional harm as supported by competent psychological or 
337.21  psychiatric evidence. 
337.22     In the case of any ground for disqualification under 
337.23  clauses (1) to (4), if the act was committed by an individual 
337.24  other than the applicant, license holder, or registrant under 
337.25  section 144A.71, subdivision 1, residing in the applicant's or 
337.26  license holder's home, or the home of a registrant under section 
337.27  144A.71, subdivision 1, the applicant, license holder, or 
337.28  registrant under section 144A.71, subdivision 1, may seek 
337.29  reconsideration when the individual who committed the act no 
337.30  longer resides in the home.  
337.31     The disqualification periods provided under clauses (1), 
337.32  (3), and (4) are the minimum applicable disqualification 
337.33  periods.  The commissioner may determine that an individual 
337.34  should continue to be disqualified from licensure or 
337.35  registration under section 144A.71, subdivision 1, because the 
337.36  license holder, applicant, or registrant under section 144A.71, 
338.1   subdivision 1, poses a risk of harm to a person served by that 
338.2   individual after the minimum disqualification period has passed. 
338.3      (d) The commissioner shall respond in writing or by 
338.4   electronic transmission to all reconsideration requests for 
338.5   which the basis for the request is that the information relied 
338.6   upon by the commissioner to disqualify is incorrect or 
338.7   inaccurate within 30 working days of receipt of a request and 
338.8   all relevant information.  If the basis for the request is that 
338.9   the individual does not pose a risk of harm, the commissioner 
338.10  shall respond to the request within 15 working days after 
338.11  receiving the request for reconsideration and all relevant 
338.12  information.  If the request is based on both the correctness or 
338.13  accuracy of the information relied on to disqualify the 
338.14  individual and the risk of harm, the commissioner shall respond 
338.15  to the request within 45 working days after receiving the 
338.16  request for reconsideration and all relevant information.  If 
338.17  the disqualification is set aside, the commissioner shall notify 
338.18  the applicant or license holder in writing or by electronic 
338.19  transmission of the decision. 
338.20     (e) Except as provided in subdivision 3c, if a 
338.21  disqualification for which reconsideration was requested is not 
338.22  set aside or is not rescinded, an individual who was 
338.23  disqualified on the basis of a preponderance of evidence that 
338.24  the individual committed an act or acts that meet the definition 
338.25  of any of the crimes listed in subdivision 3d, paragraph (a), 
338.26  clauses (1) to (4); for a determination under section 626.556 or 
338.27  626.557 of substantiated maltreatment that was serious or 
338.28  recurring under subdivision 3d, paragraph (a), clause (4); or 
338.29  for failure to make required reports under section 626.556, 
338.30  subdivision 3, or 626.557, subdivision 3, pursuant to 
338.31  subdivision 3d, paragraph (a), clause (4), may request a fair 
338.32  hearing under section 256.045.  Except as provided under 
338.33  subdivision 3c, the fair hearing is the only administrative 
338.34  appeal of the final agency determination for purposes of appeal 
338.35  by the disqualified individual, specifically, including a 
338.36  challenge to the accuracy and completeness of data under section 
339.1   13.04.  If the individual was disqualified based on a conviction 
339.2   or admission to any crimes listed in subdivision 3d, paragraph 
339.3   (a), clauses (1) to (4), the reconsideration decision under this 
339.4   subdivision is the final agency determination for purposes of 
339.5   appeal by the disqualified individual and is not subject to a 
339.6   hearing under section 256.045. 
339.7      (f) Except as provided under subdivision 3c, if an 
339.8   individual was disqualified on the basis of a determination of 
339.9   maltreatment under section 626.556 or 626.557, which was serious 
339.10  or recurring, and the individual has requested reconsideration 
339.11  of the maltreatment determination under section 626.556, 
339.12  subdivision 10i, or 626.557, subdivision 9d, and also requested 
339.13  reconsideration of the disqualification under this subdivision, 
339.14  reconsideration of the maltreatment determination and 
339.15  reconsideration of the disqualification shall be consolidated 
339.16  into a single reconsideration.  For maltreatment and 
339.17  disqualification determinations made by county agencies, the 
339.18  consolidated reconsideration shall be conducted by the county 
339.19  agency.  If the county agency has disqualified an individual on 
339.20  multiple bases, one of which is a county maltreatment 
339.21  determination for which the individual has a right to request 
339.22  reconsideration, the county shall conduct the reconsideration of 
339.23  all disqualifications.  Except as provided under subdivision 3c, 
339.24  if an individual who was disqualified on the basis of serious or 
339.25  recurring maltreatment requests a fair hearing on the 
339.26  maltreatment determination under section 626.556, subdivision 
339.27  10i, or 626.557, subdivision 9d, and requests a fair hearing on 
339.28  the disqualification, which has not been set aside or rescinded 
339.29  under this subdivision, the scope of the fair hearing under 
339.30  section 256.045 shall include the maltreatment determination and 
339.31  the disqualification.  Except as provided under subdivision 3c, 
339.32  a fair hearing is the only administrative appeal of the final 
339.33  agency determination, specifically, including a challenge to the 
339.34  accuracy and completeness of data under section 13.04. 
339.35     (g) In the notice from the commissioner that a 
339.36  disqualification has been set aside, the license holder must be 
340.1   informed that information about the nature of the 
340.2   disqualification and which factors under paragraph (b) were the 
340.3   bases of the decision to set aside the disqualification is 
340.4   available to the license holder upon request without consent of 
340.5   the background study subject.  With the written consent of a 
340.6   background study subject, the commissioner may release to the 
340.7   license holder copies of all information related to the 
340.8   background study subject's disqualification and the 
340.9   commissioner's decision to set aside the disqualification as 
340.10  specified in the written consent. 
340.11     [EFFECTIVE DATE.] This section is effective the day 
340.12  following final enactment. 
340.13     Sec. 7.  Minnesota Statutes 2002, section 245A.04, 
340.14  subdivision 3d, is amended to read: 
340.15     Subd. 3d.  [DISQUALIFICATION.] (a) Upon receipt of 
340.16  information showing, or when a background study completed under 
340.17  subdivision 3 shows any of the following:  a conviction of one 
340.18  or more crimes listed in clauses (1) to (4); the individual has 
340.19  admitted to or a preponderance of the evidence indicates the 
340.20  individual has committed an act or acts that meet the definition 
340.21  of any of the crimes listed in clauses (1) to (4); or an 
340.22  investigation results in an administrative determination listed 
340.23  under clause (4), the individual shall be disqualified from any 
340.24  position allowing direct contact with persons receiving services 
340.25  from the license holder, entity identified in subdivision 3, 
340.26  paragraph (a), or registrant under section 144A.71, subdivision 
340.27  1, and for individuals studied under section 245A.04, 
340.28  subdivision 3, paragraph (c), clauses (2), (6), and (7), the 
340.29  individual shall also be disqualified from access to a person 
340.30  receiving services from the license holder: 
340.31     (1) regardless of how much time has passed since the 
340.32  involuntary termination of parental rights under section 
340.33  260C.301 or the discharge of the sentence imposed for the 
340.34  offense, and unless otherwise specified, regardless of the level 
340.35  of the conviction, the individual was convicted of any of the 
340.36  following offenses:  sections 609.185 (murder in the first 
341.1   degree); 609.19 (murder in the second degree); 609.195 (murder 
341.2   in the third degree); 609.2661 (murder of an unborn child in the 
341.3   first degree); 609.2662 (murder of an unborn child in the second 
341.4   degree); 609.2663 (murder of an unborn child in the third 
341.5   degree); 609.20 (manslaughter in the first degree); 609.205 
341.6   (manslaughter in the second degree); 609.221 or 609.222 (assault 
341.7   in the first or second degree); 609.228 (great bodily harm 
341.8   caused by distribution of drugs); 609.245 (aggravated robbery); 
341.9   609.25 (kidnapping); 609.561 (arson in the first degree); 
341.10  609.749, subdivision 3, 4, or 5 (felony-level harassment; 
341.11  stalking); 609.66, subdivision 1e (drive-by shooting); 609.855, 
341.12  subdivision 5 (shooting at or in a public transit vehicle or 
341.13  facility); 609.322 (solicitation, inducement, and promotion of 
341.14  prostitution); 609.342 (criminal sexual conduct in the first 
341.15  degree); 609.343 (criminal sexual conduct in the second degree); 
341.16  609.344 (criminal sexual conduct in the third degree); 609.345 
341.17  (criminal sexual conduct in the fourth degree); 609.352 
341.18  (solicitation of children to engage in sexual conduct); 609.365 
341.19  (incest); felony offense under 609.377 (malicious punishment of 
341.20  a child); a felony offense under 609.378 (neglect or 
341.21  endangerment of a child); a felony offense under 609.324, 
341.22  subdivision 1 (other prohibited acts); 617.246 (use of minors in 
341.23  sexual performance prohibited); 617.247 (possession of pictorial 
341.24  representations of minors); a felony offense under sections 
341.25  609.2242 and 609.2243 (domestic assault), a felony offense of 
341.26  spousal abuse, a felony offense of child abuse or neglect, a 
341.27  felony offense of a crime against children; or attempt or 
341.28  conspiracy to commit any of these offenses as defined in 
341.29  Minnesota Statutes, or an offense in any other state or country, 
341.30  where the elements are substantially similar to any of the 
341.31  offenses listed in this clause; 
341.32     (2) if less than 15 years have passed since the discharge 
341.33  of the sentence imposed for the offense; and the individual has 
341.34  received a felony conviction for a violation of any of these 
341.35  offenses:  sections 609.21 (criminal vehicular homicide and 
341.36  injury); 609.165 (felon ineligible to possess firearm); 609.215 
342.1   (suicide); 609.223 or 609.2231 (assault in the third or fourth 
342.2   degree); repeat offenses under 609.224 (assault in the fifth 
342.3   degree); repeat offenses under 609.3451 (criminal sexual conduct 
342.4   in the fifth degree); 609.498, subdivision 1 or 1a 
342.5   1b (aggravated first degree or first degree tampering with a 
342.6   witness); 609.713 (terroristic threats); 609.235 (use of drugs 
342.7   to injure or facilitate crime); 609.24 (simple robbery); 609.255 
342.8   (false imprisonment); 609.562 (arson in the second degree); 
342.9   609.563 (arson in the third degree); repeat offenses under 
342.10  617.23 (indecent exposure; penalties); repeat offenses under 
342.11  617.241 (obscene materials and performances; distribution and 
342.12  exhibition prohibited; penalty); 609.71 (riot); 609.66 
342.13  (dangerous weapons); 609.67 (machine guns and short-barreled 
342.14  shotguns); 609.2325 (criminal abuse of a vulnerable adult); 
342.15  609.2664 (manslaughter of an unborn child in the first degree); 
342.16  609.2665 (manslaughter of an unborn child in the second degree); 
342.17  609.267 (assault of an unborn child in the first degree); 
342.18  609.2671 (assault of an unborn child in the second degree); 
342.19  609.268 (injury or death of an unborn child in the commission of 
342.20  a crime); 609.52 (theft); 609.2335 (financial exploitation of a 
342.21  vulnerable adult); 609.521 (possession of shoplifting gear); 
342.22  609.582 (burglary); 609.625 (aggravated forgery); 609.63 
342.23  (forgery); 609.631 (check forgery; offering a forged check); 
342.24  609.635 (obtaining signature by false pretense); 609.27 
342.25  (coercion); 609.275 (attempt to coerce); 609.687 (adulteration); 
342.26  260C.301 (grounds for termination of parental rights); chapter 
342.27  152 (drugs; controlled substance); and a felony level conviction 
342.28  involving alcohol or drug use.  An attempt or conspiracy to 
342.29  commit any of these offenses, as each of these offenses is 
342.30  defined in Minnesota Statutes; or an offense in any other state 
342.31  or country, the elements of which are substantially similar to 
342.32  the elements of the offenses in this clause.  If the individual 
342.33  studied is convicted of one of the felonies listed in this 
342.34  clause, but the sentence is a gross misdemeanor or misdemeanor 
342.35  disposition, the lookback period for the conviction is the 
342.36  period applicable to the disposition, that is the period for 
343.1   gross misdemeanors or misdemeanors; 
343.2      (3) if less than ten years have passed since the discharge 
343.3   of the sentence imposed for the offense; and the individual has 
343.4   received a gross misdemeanor conviction for a violation of any 
343.5   of the following offenses:  sections 609.224 (assault in the 
343.6   fifth degree); 609.2242 and 609.2243 (domestic assault); 
343.7   violation of an order for protection under 518B.01, subdivision 
343.8   14; 609.3451 (criminal sexual conduct in the fifth degree); 
343.9   repeat offenses under 609.746 (interference with privacy); 
343.10  repeat offenses under 617.23 (indecent exposure); 617.241 
343.11  (obscene materials and performances); 617.243 (indecent 
343.12  literature, distribution); 617.293 (harmful materials; 
343.13  dissemination and display to minors prohibited); 609.71 (riot); 
343.14  609.66 (dangerous weapons); 609.749, subdivision 2 (harassment; 
343.15  stalking); 609.224, subdivision 2, paragraph (c) (assault in the 
343.16  fifth degree by a caregiver against a vulnerable adult); 609.23 
343.17  (mistreatment of persons confined); 609.231 (mistreatment of 
343.18  residents or patients); 609.2325 (criminal abuse of a vulnerable 
343.19  adult); 609.233 (criminal neglect of a vulnerable adult); 
343.20  609.2335 (financial exploitation of a vulnerable adult); 609.234 
343.21  (failure to report maltreatment of a vulnerable adult); 609.72, 
343.22  subdivision 3 (disorderly conduct against a vulnerable adult); 
343.23  609.265 (abduction); 609.378 (neglect or endangerment of a 
343.24  child); 609.377 (malicious punishment of a child); 609.324, 
343.25  subdivision 1a (other prohibited acts; minor engaged in 
343.26  prostitution); 609.33 (disorderly house); 609.52 (theft); 
343.27  609.582 (burglary); 609.631 (check forgery; offering a forged 
343.28  check); 609.275 (attempt to coerce); or an attempt or conspiracy 
343.29  to commit any of these offenses, as each of these offenses is 
343.30  defined in Minnesota Statutes; or an offense in any other state 
343.31  or country, the elements of which are substantially similar to 
343.32  the elements of any of the offenses listed in this clause.  If 
343.33  the defendant is convicted of one of the gross misdemeanors 
343.34  listed in this clause, but the sentence is a misdemeanor 
343.35  disposition, the lookback period for the conviction is the 
343.36  period applicable to misdemeanors; or 
344.1      (4) if less than seven years have passed since the 
344.2   discharge of the sentence imposed for the offense; and the 
344.3   individual has received a misdemeanor conviction for a violation 
344.4   of any of the following offenses:  sections 609.224 (assault in 
344.5   the fifth degree); 609.2242 (domestic assault); violation of an 
344.6   order for protection under 518B.01 (Domestic Abuse Act); 
344.7   violation of an order for protection under 609.3232 (protective 
344.8   order authorized; procedures; penalties); 609.746 (interference 
344.9   with privacy); 609.79 (obscene or harassing phone calls); 
344.10  609.795 (letter, telegram, or package; opening; harassment); 
344.11  617.23 (indecent exposure; penalties); 609.2672 (assault of an 
344.12  unborn child in the third degree); 617.293 (harmful materials; 
344.13  dissemination and display to minors prohibited); 609.66 
344.14  (dangerous weapons); 609.665 (spring guns); 609.2335 (financial 
344.15  exploitation of a vulnerable adult); 609.234 (failure to report 
344.16  maltreatment of a vulnerable adult); 609.52 (theft); 609.27 
344.17  (coercion); or an attempt or conspiracy to commit any of these 
344.18  offenses, as each of these offenses is defined in Minnesota 
344.19  Statutes; or an offense in any other state or country, the 
344.20  elements of which are substantially similar to the elements of 
344.21  any of the offenses listed in this clause; a determination or 
344.22  disposition of failure to make required reports under section 
344.23  626.556, subdivision 3, or 626.557, subdivision 3, for incidents 
344.24  in which:  (i) the final disposition under section 626.556 or 
344.25  626.557 was substantiated maltreatment, and (ii) the 
344.26  maltreatment was recurring or serious; or a determination or 
344.27  disposition of substantiated serious or recurring maltreatment 
344.28  of a minor under section 626.556 or of a vulnerable adult under 
344.29  section 626.557 for which there is a preponderance of evidence 
344.30  that the maltreatment occurred, and that the subject was 
344.31  responsible for the maltreatment. 
344.32     For the purposes of this section, "serious maltreatment" 
344.33  means sexual abuse; maltreatment resulting in death; or 
344.34  maltreatment resulting in serious injury which reasonably 
344.35  requires the care of a physician whether or not the care of a 
344.36  physician was sought; or abuse resulting in serious injury.  For 
345.1   purposes of this section, "abuse resulting in serious injury" 
345.2   means:  bruises, bites, skin laceration or tissue damage; 
345.3   fractures; dislocations; evidence of internal injuries; head 
345.4   injuries with loss of consciousness; extensive second-degree or 
345.5   third-degree burns and other burns for which complications are 
345.6   present; extensive second-degree or third-degree frostbite, and 
345.7   others for which complications are present; irreversible 
345.8   mobility or avulsion of teeth; injuries to the eyeball; 
345.9   ingestion of foreign substances and objects that are harmful; 
345.10  near drowning; and heat exhaustion or sunstroke.  For purposes 
345.11  of this section, "care of a physician" is treatment received or 
345.12  ordered by a physician, but does not include diagnostic testing, 
345.13  assessment, or observation.  For the purposes of this section, 
345.14  "recurring maltreatment" means more than one incident of 
345.15  maltreatment for which there is a preponderance of evidence that 
345.16  the maltreatment occurred, and that the subject was responsible 
345.17  for the maltreatment.  For purposes of this section, "access" 
345.18  means physical access to an individual receiving services or the 
345.19  individual's personal property without continuous, direct 
345.20  supervision as defined in section 245A.04, subdivision 3.  
345.21     (b) Except for background studies related to child foster 
345.22  care, adult foster care, or family child care licensure, when 
345.23  the subject of a background study is regulated by a 
345.24  health-related licensing board as defined in chapter 214, and 
345.25  the regulated person has been determined to have been 
345.26  responsible for substantiated maltreatment under section 626.556 
345.27  or 626.557, instead of the commissioner making a decision 
345.28  regarding disqualification, the board shall make a determination 
345.29  whether to impose disciplinary or corrective action under 
345.30  chapter 214. 
345.31     (1) The commissioner shall notify the health-related 
345.32  licensing board: 
345.33     (i) upon completion of a background study that produces a 
345.34  record showing that the individual was determined to have been 
345.35  responsible for substantiated maltreatment; 
345.36     (ii) upon the commissioner's completion of an investigation 
346.1   that determined the individual was responsible for substantiated 
346.2   maltreatment; or 
346.3      (iii) upon receipt from another agency of a finding of 
346.4   substantiated maltreatment for which the individual was 
346.5   responsible. 
346.6      (2) The commissioner's notice shall indicate whether the 
346.7   individual would have been disqualified by the commissioner for 
346.8   the substantiated maltreatment if the individual were not 
346.9   regulated by the board.  The commissioner shall concurrently 
346.10  send this notice to the individual. 
346.11     (3) Notwithstanding the exclusion from this subdivision for 
346.12  individuals who provide child foster care, adult foster care, or 
346.13  family child care, when the commissioner or a local agency has 
346.14  reason to believe that the direct contact services provided by 
346.15  the individual may fall within the jurisdiction of a 
346.16  health-related licensing board, a referral shall be made to the 
346.17  board as provided in this section. 
346.18     (4) If, upon review of the information provided by the 
346.19  commissioner, a health-related licensing board informs the 
346.20  commissioner that the board does not have jurisdiction to take 
346.21  disciplinary or corrective action, the commissioner shall make 
346.22  the appropriate disqualification decision regarding the 
346.23  individual as otherwise provided in this chapter. 
346.24     (5) The commissioner has the authority to monitor the 
346.25  facility's compliance with any requirements that the 
346.26  health-related licensing board places on regulated persons 
346.27  practicing in a facility either during the period pending a 
346.28  final decision on a disciplinary or corrective action or as a 
346.29  result of a disciplinary or corrective action.  The commissioner 
346.30  has the authority to order the immediate removal of a regulated 
346.31  person from direct contact or access when a board issues an 
346.32  order of temporary suspension based on a determination that the 
346.33  regulated person poses an immediate risk of harm to persons 
346.34  receiving services in a licensed facility. 
346.35     (6) A facility that allows a regulated person to provide 
346.36  direct contact services while not complying with the 
347.1   requirements imposed by the health-related licensing board is 
347.2   subject to action by the commissioner as specified under 
347.3   sections 245A.06 and 245A.07. 
347.4      (7) The commissioner shall notify a health-related 
347.5   licensing board immediately upon receipt of knowledge of 
347.6   noncompliance with requirements placed on a facility or upon a 
347.7   person regulated by the board. 
347.8      [EFFECTIVE DATE.] This section is effective the day 
347.9   following final enactment. 
347.10     Sec. 8.  Minnesota Statutes 2002, section 245A.09, 
347.11  subdivision 7, is amended to read: 
347.12     Subd. 7.  [REGULATORY METHODS.] (a) Where appropriate and 
347.13  feasible the commissioner shall identify and implement 
347.14  alternative methods of regulation and enforcement to the extent 
347.15  authorized in this subdivision.  These methods shall include: 
347.16     (1) expansion of the types and categories of licenses that 
347.17  may be granted; 
347.18     (2) when the standards of another state or federal 
347.19  governmental agency or an independent accreditation body have 
347.20  been shown to predict compliance with the rules require the same 
347.21  standards, methods, or alternative methods to achieve 
347.22  substantially the same intended outcomes as the licensing 
347.23  standards, the commissioner shall consider compliance with the 
347.24  governmental or accreditation standards to be equivalent to 
347.25  partial compliance with the rules licensing standards; and 
347.26     (3) use of an abbreviated inspection that employs key 
347.27  standards that have been shown to predict full compliance with 
347.28  the rules. 
347.29     (b) If the commissioner accepts accreditation as 
347.30  documentation of compliance with a licensing standard under 
347.31  paragraph (a), the commissioner shall continue to investigate 
347.32  complaints related to noncompliance with all licensing standards.
347.33  The commissioner may take a licensing action for noncompliance 
347.34  under this chapter and shall recognize all existing appeal 
347.35  rights regarding any licensing actions taken under this chapter. 
347.36     (c) The commissioner shall work with the commissioners of 
348.1   health, public safety, administration, and children, families, 
348.2   and learning in consolidating duplicative licensing and 
348.3   certification rules and standards if the commissioner determines 
348.4   that consolidation is administratively feasible, would 
348.5   significantly reduce the cost of licensing, and would not reduce 
348.6   the protection given to persons receiving services in licensed 
348.7   programs.  Where administratively feasible and appropriate, the 
348.8   commissioner shall work with the commissioners of health, public 
348.9   safety, administration, and children, families, and learning in 
348.10  conducting joint agency inspections of programs. 
348.11     (c) (d) The commissioner shall work with the commissioners 
348.12  of health, public safety, administration, and children, 
348.13  families, and learning in establishing a single point of 
348.14  application for applicants who are required to obtain concurrent 
348.15  licensure from more than one of the commissioners listed in this 
348.16  clause. 
348.17     (d) (e) Unless otherwise specified in statute, the 
348.18  commissioner may specify in rule periods of licensure up to two 
348.19  years conduct routine inspections biennially. 
348.20     Sec. 9.  Minnesota Statutes 2002, section 245A.10, is 
348.21  amended to read: 
348.22     245A.10 [FEES.] 
348.23     Subdivision 1.  [APPLICATION OR LICENSE FEE REQUIRED, 
348.24  PROGRAMS EXEMPT FROM FEE.] (a) Unless exempt under paragraph 
348.25  (b), the commissioner shall charge a fee for evaluation of 
348.26  applications and inspection of programs, other than family day 
348.27  care and foster care, which are licensed under this chapter.  
348.28  The commissioner may charge a fee for the licensing of school 
348.29  age child care programs, in an amount sufficient to cover the 
348.30  cost to the state agency of processing the license. 
348.31     (b) Except as provided under subdivision 2, no application 
348.32  or license fee shall be charged for child foster care, adult 
348.33  foster care, family and group family child care or 
348.34  state-operated programs, unless the state-operated program is an 
348.35  intermediate care facility for persons with mental retardation 
348.36  or related conditions (ICF/MR). 
349.1      Subd. 2.  [COUNTY FEES FOR BACKGROUND STUDIES AND LICENSING 
349.2   INSPECTIONS IN FAMILY AND GROUP FAMILY CHILD CARE.] (a) For 
349.3   purposes of family and group family child care licensing under 
349.4   this chapter, a county agency may charge a fee to an applicant 
349.5   or license holder to recover the actual cost of background 
349.6   studies, but in any case not to exceed $100 annually.  A county 
349.7   agency may also charge a fee to an applicant or license holder 
349.8   to recover the actual cost of licensing inspections, but in any 
349.9   case not to exceed $150 annually. 
349.10     (b) A county agency may charge a fee to a legal nonlicensed 
349.11  child care provider or applicant for authorization to recover 
349.12  the actual cost of background studies completed under section 
349.13  119B.125, but in any case not to exceed $100 annually. 
349.14     (c) Counties may elect to reduce or waive the fees in 
349.15  paragraph (a) or (b):  
349.16     (1) in cases of financial hardship; 
349.17     (2) if the county has a shortage of providers in the 
349.18  county's area; 
349.19     (3) for new providers; or 
349.20     (4) for providers who have attained at least 16 hours of 
349.21  training before seeking initial licensure. 
349.22     (d) Counties may allow providers to pay the applicant fees 
349.23  in paragraph (a) or (b) on an installment basis for up to one 
349.24  year.  If the provider is receiving child care assistance 
349.25  payments from the state, the provider may have the fees under 
349.26  paragraph (a) or (b) deducted from the child care assistance 
349.27  payments for up to one year and the state shall reimburse the 
349.28  county for the county fees collected in this manner. 
349.29     Subd. 3.  [APPLICATION FEE FOR INITIAL LICENSE OR 
349.30  CERTIFICATION.] (a) For fees required under subdivision 1, an 
349.31  applicant for an initial license or certification issued by the 
349.32  commissioner shall submit a $500 application fee with each new 
349.33  application required under this subdivision.  The application 
349.34  fee shall not be prorated, is nonrefundable, and is in lieu of 
349.35  the annual license or certification fee that expires on December 
349.36  31.  The commissioner shall not process an application until the 
350.1   application fee is paid.  
350.2      (b) Except as provided in clauses (1) to (3), an applicant 
350.3   shall apply for a license to provide services at a specific 
350.4   location.  
350.5      (1) For a license to provide waivered services to persons 
350.6   with developmental disabilities or related conditions, an 
350.7   applicant shall submit an application for each county in which 
350.8   the waivered services will be provided.  
350.9      (2) For a license to provide semi-independent living 
350.10  services to persons with developmental disabilities or related 
350.11  conditions, an applicant shall submit a single application to 
350.12  provide services statewide. 
350.13     (3) For a license to provide independent living assistance 
350.14  for youth under section 245A.22, an applicant shall submit a 
350.15  single application to provide services statewide.  
350.16     Subd. 4.  [ANNUAL LICENSE OR CERTIFICATION FEE FOR PROGRAMS 
350.17  WITH LICENSED CAPACITY.] (a) Child care centers and programs 
350.18  with a licensed capacity shall pay an annual nonrefundable 
350.19  license or certification fee based on the following schedule: 
350.20      Licensed Capacity          Child Care         Other
350.21                                 Center             Program
350.22                                 License Fee        License Fee
350.23       1 to 24 persons               $300               $400
350.24       25 to 49 persons              $450               $600
350.25       50 to 74 persons              $600               $800
350.26       75 to 99 persons              $750             $1,000
350.27       100 to 124 persons            $900             $1,200
350.28       125 to 149 persons          $1,200             $1,400
350.29       150 to 174 persons          $1,400             $1,600
350.30       175 to 199 persons          $1,600             $1,800
350.31       200 to 224 persons          $1,800             $2,000
350.32       225 or more persons         $2,000             $2,500
350.33     (b) A day training and habilitation program serving persons 
350.34  with developmental disabilities or related conditions shall be 
350.35  assessed a license fee based on the schedule in paragraph (a) 
350.36  unless the license holder serves more than 50 percent of the 
351.1   same persons at two or more locations in the community.  When a 
351.2   day training and habilitation program serves more than 50 
351.3   percent of the same persons in two or more locations in a 
351.4   community, the day training and habilitation program shall pay a 
351.5   license fee based on the licensed capacity of the largest 
351.6   facility and the other facility or facilities shall be charged a 
351.7   license fee based on a licensed capacity of a residential 
351.8   program serving one to 24 persons. 
351.9      Subd. 5.  [ANNUAL LICENSE OR CERTIFICATION FEE FOR PROGRAMS 
351.10  WITHOUT A LICENSED CAPACITY.] (a) Except as provided in 
351.11  paragraph (b), a program without a stated licensed capacity 
351.12  shall pay a license or certification fee of $400.  
351.13     (b) A mental health center or mental health clinic 
351.14  requesting certification for purposes of insurance and 
351.15  subscriber contract reimbursement under Minnesota Rules, parts 
351.16  9520.0750 to 9520.0870 shall pay a certification fee of $1,000 
351.17  per year.  If the mental health center or mental health clinic 
351.18  provides services at a primary location with satellite 
351.19  facilities, the satellite facilities shall be certified with the 
351.20  primary location without an additional charge. 
351.21     Subd. 6.  [LICENSE NOT ISSUED UNTIL LICENSE OR 
351.22  CERTIFICATION FEE IS PAID.] The commissioner shall not issue a 
351.23  license or certification until the license or certification fee 
351.24  is paid.  The commissioner shall send a bill for the license or 
351.25  certification fee to the billing address identified by the 
351.26  license holder.  If the license holder does not submit the 
351.27  license or certification fee payment by the due date, the 
351.28  commissioner shall send the license holder a past due notice.  
351.29  If the license holder fails to pay the license or certification 
351.30  fee by the due date on the past due notice, the commissioner 
351.31  shall send a final notice to the license holder informing the 
351.32  license holder that the program license will expire on December 
351.33  31 unless the license fee is paid before December 31.  If a 
351.34  license expires, the program is no longer licensed and, unless 
351.35  exempt from licensure under section 245A.03, subdivision 2, must 
351.36  not operate after the expiration date.  After a license expires, 
352.1   if the former license holder wishes to provide licensed 
352.2   services, the former license holder must submit a new license 
352.3   application and application fee under subdivision 3. 
352.4      Sec. 10.  Minnesota Statutes 2002, section 245A.11, 
352.5   subdivision 2a, is amended to read: 
352.6      Subd. 2a.  [ADULT FOSTER CARE LICENSE CAPACITY.] (a) An 
352.7   adult foster care license holder may have a maximum license 
352.8   capacity of five if all persons in care are age 55 or over and 
352.9   do not have a serious and persistent mental illness or a 
352.10  developmental disability.  
352.11     (b) The commissioner may grant variances to paragraph (a) 
352.12  to allow a foster care provider with a licensed capacity of five 
352.13  persons to admit an individual under the age of 55 if the 
352.14  variance complies with section 245A.04, subdivision 9, and 
352.15  approval of the variance is recommended by the county in which 
352.16  the licensed foster care provider is located. 
352.17     (c) The commissioner may grant variances to paragraph (a) 
352.18  to allow the use of a fifth bed for emergency crisis services 
352.19  for a person with serious and persistent mental illness or a 
352.20  developmental disability, regardless of age, if the variance 
352.21  complies with section 245A.04, subdivision 9, and approval of 
352.22  the variance is recommended by the county in which the licensed 
352.23  foster care provider is located. 
352.24     (d) Notwithstanding paragraph (a), the commissioner may 
352.25  issue an adult foster care license with a capacity of five 
352.26  adults when the capacity is recommended by the county licensing 
352.27  agency of the county in which the facility is located and if the 
352.28  recommendation verifies that: 
352.29     (1) the facility meets the physical environment 
352.30  requirements in the adult foster care licensing rule; 
352.31     (2) the five-bed living arrangement is specified for each 
352.32  resident in the resident's: 
352.33     (i) individualized plan of care; 
352.34     (ii) individual service plan under section 256B.092, 
352.35  subdivision 1b, if required; or 
352.36     (iii) individual resident placement agreement under 
353.1   Minnesota Rules, part 9555.5105, subpart 19, if required; 
353.2      (3) the license holder obtains written and signed informed 
353.3   consent from each resident or resident's legal representative 
353.4   documenting the resident's informed choice to living in the home 
353.5   and that the resident's refusal to consent would not have 
353.6   resulted in service termination; and 
353.7      (4) the facility was licensed for adult foster care before 
353.8   March 1, 2003. 
353.9      (e) The commissioner shall not issue a new adult foster 
353.10  care license under paragraph (d) after June 30, 2005.  The 
353.11  commissioner shall allow a facility with an adult foster care 
353.12  license issued under paragraph (d) before June 30, 2005, to 
353.13  continue with a capacity of five or six adults if the license 
353.14  holder continues to comply with the requirements in paragraph 
353.15  (d). 
353.16     Sec. 11.  Minnesota Statutes 2002, section 245A.11, 
353.17  subdivision 2b, is amended to read: 
353.18     Subd. 2b.  [ADULT FOSTER CARE; FAMILY ADULT DAY CARE.] An 
353.19  adult foster care license holder licensed under the conditions 
353.20  in subdivision 2a may also provide family adult day care for 
353.21  adults age 55 or over if no persons in the adult foster or adult 
353.22  family day care program have a serious and persistent mental 
353.23  illness or a developmental disability.  The maximum combined 
353.24  capacity for adult foster care and family adult day care is five 
353.25  adults, except that the commissioner may grant a variance for a 
353.26  family adult day care provider to admit up to seven individuals 
353.27  for day care services and one individual for respite care 
353.28  services, if all of the following requirements are met:  (1) the 
353.29  variance complies with section 245A.04, subdivision 9; (2) a 
353.30  second caregiver is present whenever six or more clients are 
353.31  being served; and (3) the variance is recommended by the county 
353.32  social service agency in the county where the provider is 
353.33  located.  A separate license is not required to provide family 
353.34  adult day care under this subdivision.  Adult foster care homes 
353.35  providing services to five adults under this section shall not 
353.36  be subject to licensure by the commissioner of health under the 
354.1   provisions of chapter 144, 144A, 157, or any other law requiring 
354.2   facility licensure by the commissioner of health. 
354.3      Sec. 12.  Minnesota Statutes 2002, section 245A.11, is 
354.4   amended by adding a subdivision to read: 
354.5      Subd. 7.  [ADULT FOSTER CARE; VARIANCE FOR ALTERNATE 
354.6   OVERNIGHT SUPERVISION.] (a) The commissioner may grant a 
354.7   variance under section 245A.04, subdivision 9, to rule parts 
354.8   requiring a caregiver to be present in an adult foster care home 
354.9   during normal sleeping hours to allow for alternative methods of 
354.10  overnight supervision.  The commissioner may grant the variance 
354.11  if the local county licensing agency recommends the variance and 
354.12  the county recommendation includes documentation verifying that: 
354.13     (1) the county has approved the license holder's plan for 
354.14  alternative methods of providing overnight supervision and 
354.15  determined the plan protects the residents' health, safety, and 
354.16  rights; 
354.17     (2) the license holder has obtained written and signed 
354.18  informed consent from each resident or each resident's legal 
354.19  representative documenting the resident's or legal 
354.20  representative's agreement with the alternative method of 
354.21  overnight supervision; and 
354.22     (3) the alternative method of providing overnight 
354.23  supervision is specified for each resident in the resident's: 
354.24  (i) individualized plan of care; (ii) individual service plan 
354.25  under section 256B.092, subdivision 1b, if required; or (iii) 
354.26  individual resident placement agreement under Minnesota Rules, 
354.27  part 9555.5105, subpart 19, if required. 
354.28     (b) To be eligible for a variance under paragraph (a), the 
354.29  adult foster care license holder must not have had a licensing 
354.30  action under section 245A.06 or 245A.07 during the prior 24 
354.31  months based on failure to provide adequate supervision, health 
354.32  care services, or resident safety in the adult foster care home. 
354.33     Sec. 13.  Minnesota Statutes 2002, section 245B.03, 
354.34  subdivision 2, is amended to read: 
354.35     Subd. 2.  [RELATIONSHIP TO OTHER STANDARDS GOVERNING 
354.36  SERVICES FOR PERSONS WITH MENTAL RETARDATION OR RELATED 
355.1   CONDITIONS.] (a) ICFs/MR are exempt from: 
355.2      (1) section 245B.04; 
355.3      (2) section 245B.06, subdivisions 4 and 6; and 
355.4      (3) section 245B.07, subdivisions 4, paragraphs (b) and 
355.5   (c); 7; and 8, paragraphs (1), clause (iv), and (2). 
355.6      (b) License holders also licensed under chapter 144 as a 
355.7   supervised living facility are exempt from section 245B.04. 
355.8      (c) Residential service sites controlled by license holders 
355.9   licensed under chapter 245B for home and community-based 
355.10  waivered services for four or fewer adults are exempt from 
355.11  compliance with Minnesota Rules, parts 9543.0040, subpart 2, 
355.12  item C; 9555.5505; 9555.5515, items B and G; 9555.5605; 
355.13  9555.5705; 9555.6125, subparts 3, item C, subitem (2), and 4 to 
355.14  6; 9555.6185; 9555.6225, subpart 8; 9555.6245; 9555.6255; and 
355.15  9555.6265; and as provided under section 245B.06, subdivision 2, 
355.16  the license holder is exempt from the program abuse prevention 
355.17  plans and individual abuse prevention plans otherwise required 
355.18  under sections 245A.65, subdivision 2, and 626.557, subdivision 
355.19  14.  The commissioner may approve alternative methods of 
355.20  providing overnight supervision using the process and criteria 
355.21  for granting a variance in section 245A.04, subdivision 9.  This 
355.22  chapter does not apply to foster care homes that do not provide 
355.23  residential habilitation services funded under the home and 
355.24  community-based waiver programs defined in section 256B.092. 
355.25     (d) Residential service sites controlled by license holders 
355.26  licensed under this chapter for home and community-based 
355.27  waivered services for four or fewer children are exempt from 
355.28  compliance with Minnesota Rules, parts 9545.0130; 9545.0140; 
355.29  9545.0150; 9545.0170; 9545.0220, subparts 1, items C, F, and I, 
355.30  and 3; and 9545.0230. 
355.31     (e) The commissioner may exempt license holders from 
355.32  applicable standards of this chapter when the license holder 
355.33  meets the standards under section 245A.09, subdivision 7.  
355.34  License holders that are accredited by an independent 
355.35  accreditation body shall continue to be licensed under this 
355.36  chapter. 
356.1      (e) (f) License holders governed by sections 245B.02 to 
356.2   245B.07 must also meet the licensure requirements in chapter 
356.3   245A.  
356.4      (f) (g) Nothing in this chapter prohibits license holders 
356.5   from concurrently serving consumers with and without mental 
356.6   retardation or related conditions provided this chapter's 
356.7   standards are met as well as other relevant standards. 
356.8      (g) (h) The documentation that sections 245B.02 to 245B.07 
356.9   require of the license holder meets the individual program plan 
356.10  required in section 256B.092 or successor provisions.  
356.11     Sec. 14.  Minnesota Statutes 2002, section 245B.03, is 
356.12  amended by adding a subdivision to read: 
356.13     Subd. 3.  [CONTINUITY OF CARE.] (a) When a consumer changes 
356.14  service to the same type of service provided under a different 
356.15  license held by the same license holder and the policies and 
356.16  procedures under section 245B.07, subdivision 8, are 
356.17  substantially similar, the license holder is exempt from the 
356.18  requirements in sections 245B.06, subdivisions 2, paragraphs (e) 
356.19  and (f), and 4; and 245B.07, subdivision 9, clause (2). 
356.20     (b) When a direct service staff person begins providing 
356.21  direct service under one or more licenses other than the license 
356.22  for which the staff person initially received the staff 
356.23  orientation requirements under section 245B.07, subdivision 5, 
356.24  the license holder is exempt from all staff orientation 
356.25  requirements under section 245B.07, subdivision 5, except that: 
356.26     (1) if the service provision location changes, the staff 
356.27  person must receive orientation regarding any policies or 
356.28  procedures under section 245B.07, subdivision 8, that are 
356.29  specific to the service provision location; and 
356.30     (2) if the staff person provides direct service to one or 
356.31  more consumers for whom the staff person has not previously 
356.32  provided direct service, the staff person must review each 
356.33  consumer's:  (i) service plans and risk management plan in 
356.34  accordance with section 245B.07, subdivision 5, paragraph (b), 
356.35  clause (1); and (ii) medication administration in accordance 
356.36  with section 245B.07, subdivision 5, paragraph (b), clause (6). 
357.1      Sec. 15.  Minnesota Statutes 2002, section 245B.04, 
357.2   subdivision 2, is amended to read: 
357.3      Subd. 2.  [SERVICE-RELATED RIGHTS.] A consumer's 
357.4   service-related rights include the right to: 
357.5      (1) refuse or terminate services and be informed of the 
357.6   consequences of refusing or terminating services; 
357.7      (2) know, in advance, limits to the services available from 
357.8   the license holder; 
357.9      (3) know conditions and terms governing the provision of 
357.10  services, including those related to initiation and termination; 
357.11     (4) know what the charges are for services, regardless of 
357.12  who will be paying for the services, and be notified upon 
357.13  request of changes in those charges; 
357.14     (5) know, in advance, whether services are covered by 
357.15  insurance, government funding, or other sources, and be told of 
357.16  any charges the consumer or other private party may have to pay; 
357.17  and 
357.18     (6) receive licensed services from individuals who are 
357.19  competent and trained, who have professional certification or 
357.20  licensure, as required, and who meet additional qualifications 
357.21  identified in the individual service plan. 
357.22     Sec. 16.  Minnesota Statutes 2002, section 245B.06, 
357.23  subdivision 2, is amended to read: 
357.24     Subd. 2.  [RISK MANAGEMENT PLAN.] (a) The license holder 
357.25  must develop and, document in writing, and implement a risk 
357.26  management plan that incorporates the individual abuse 
357.27  prevention plan as required in section 245A.65 meets the 
357.28  requirements of this subdivision.  License holders licensed 
357.29  under this chapter are exempt from sections 245A.65, subdivision 
357.30  2, and 626.557, subdivision 14, if the requirements of this 
357.31  subdivision are met.  
357.32     (b) The risk management plan must identify areas in which 
357.33  the consumer is vulnerable, based on an assessment, at a 
357.34  minimum, of the following areas: 
357.35     (1) an adult consumer's susceptibility to physical, 
357.36  emotional, and sexual abuse as defined in section 626.5572, 
358.1   subdivision 2, and financial exploitation as defined in section 
358.2   626.5572, subdivision 9; a minor consumer's susceptibility to 
358.3   sexual and physical abuse as defined in section 626.556, 
358.4   subdivision 2; and a consumer's susceptibility to self-abuse, 
358.5   regardless of age; 
358.6      (2) the consumer's health needs, considering the consumer's 
358.7   physical disabilities; allergies; sensory impairments; seizures; 
358.8   diet; need for medications; and ability to obtain medical 
358.9   treatment; 
358.10     (3) the consumer's safety needs, considering the consumer's 
358.11  ability to take reasonable safety precautions; community 
358.12  survival skills; water survival skills; ability to seek 
358.13  assistance or provide medical care; and access to toxic 
358.14  substances or dangerous items; 
358.15     (4) environmental issues, considering the program's 
358.16  location in a particular neighborhood or community; the type of 
358.17  grounds and terrain surrounding the building; and the consumer's 
358.18  ability to respond to weather-related conditions, open locked 
358.19  doors, and remain alone in any environment; and 
358.20     (5) the consumer's behavior, including behaviors that may 
358.21  increase the likelihood of physical aggression between consumers 
358.22  or sexual activity between consumers involving force or 
358.23  coercion, as defined under section 245B.02, subdivision 10, 
358.24  clauses (6) and (7). 
358.25     (c) When assessing a consumer's vulnerability, the license 
358.26  holder must consider only the consumer's skills and abilities, 
358.27  independent of staffing patterns, supervision plans, the 
358.28  environment, or other situational elements.  
358.29     (d) License holders jointly providing services to a 
358.30  consumer shall coordinate and use the resulting assessment of 
358.31  risk areas for the development of this each license holder's 
358.32  risk management or the shared risk management plan.  Upon 
358.33  initiation of services, the license holder will have in place an 
358.34  initial risk management plan that identifies areas in which the 
358.35  consumer is vulnerable, including health, safety, and 
358.36  environmental issues and the supports the provider will have in 
359.1   place to protect the consumer and to minimize these risks.  The 
359.2   plan must be changed based on the needs of the individual 
359.3   consumer and reviewed at least annually.  The license holder's 
359.4   plan must include the specific actions a staff person will take 
359.5   to protect the consumer and minimize risks for the identified 
359.6   vulnerability areas.  The specific actions must include the 
359.7   proactive measures being taken, training being provided, or a 
359.8   detailed description of actions a staff person will take when 
359.9   intervention is needed. 
359.10     (e) Prior to or upon initiating services, a license holder 
359.11  must develop an initial risk management plan that is, at a 
359.12  minimum, verbally approved by the consumer or consumer's legal 
359.13  representative and case manager.  The license holder must 
359.14  document the date the license holder receives the consumer's or 
359.15  consumer's legal representative's and case manager's verbal 
359.16  approval of the initial plan. 
359.17     (f) As part of the meeting held within 45 days of 
359.18  initiating service, as required under section 245B.06, 
359.19  subdivision 4, the license holder must review the initial risk 
359.20  management plan for accuracy and revise the plan if necessary.  
359.21  The license holder must give the consumer or consumer's legal 
359.22  representative and case manager an opportunity to participate in 
359.23  this plan review.  If the license holder revises the plan, or if 
359.24  the consumer or consumer's legal representative and case manager 
359.25  have not previously signed and dated the plan, the license 
359.26  holder must obtain dated signatures to document the plan's 
359.27  approval. 
359.28     (g) After plan approval, the license holder must review the 
359.29  plan at least annually and update the plan based on the 
359.30  individual consumer's needs and changes to the environment.  The 
359.31  license holder must give the consumer or consumer's legal 
359.32  representative and case manager an opportunity to participate in 
359.33  the ongoing plan development.  The license holder shall obtain 
359.34  dated signatures from the consumer or consumer's legal 
359.35  representative and case manager to document completion of the 
359.36  annual review and approval of plan changes. 
360.1      Sec. 17.  Minnesota Statutes 2002, section 245B.06, 
360.2   subdivision 5, is amended to read: 
360.3      Subd. 5.  [PROGRESS REVIEWS.] The license holder must 
360.4   participate in progress review meetings following stated time 
360.5   lines established in the consumer's individual service plan or 
360.6   as requested in writing by the consumer, the consumer's legal 
360.7   representative, or the case manager, at a minimum of once a 
360.8   year.  The license holder must summarize the progress toward 
360.9   achieving the desired outcomes and make recommendations in a 
360.10  written report sent to the consumer or the consumer's legal 
360.11  representative and case manager prior to the review meeting.  
360.12  For consumers under public guardianship, the license holder is 
360.13  required to provide quarterly written progress review reports to 
360.14  the consumer, designated family member, and case manager.  
360.15     Sec. 18.  Minnesota Statutes 2002, section 245B.07, 
360.16  subdivision 6, is amended to read: 
360.17     Subd. 6.  [STAFF TRAINING.] (a) The A license holder 
360.18  providing semi-independent living services shall ensure that 
360.19  direct service staff annually complete hours of training equal 
360.20  to two one percent of the number of hours the staff person 
360.21  worked or one percent for license holders providing 
360.22  semi-independent living services.  All other license holders 
360.23  shall ensure that direct service staff annually complete hours 
360.24  of training as follows: 
360.25     (1) if the direct services staff have been employed for one 
360.26  to 24 months and: 
360.27     (i) the average number of work hours scheduled per week is 
360.28  30 to 40 hours, the staff must annually complete 40 training 
360.29  hours; 
360.30     (ii) the average number of work hours scheduled per week is 
360.31  20 to 29 hours, the staff must annually complete 30 training 
360.32  hours; and 
360.33     (iii) the average number of work hours scheduled per week 
360.34  is one to 19 hours, the staff must annually complete 20 training 
360.35  hours; or 
360.36     (2) if the direct services staff have been employed for 
361.1   more than 24 months and: 
361.2      (i) the average number of work hours scheduled per week is 
361.3   30 to 40 hours, the staff must annually complete 20 training 
361.4   hours; 
361.5      (ii) the average number of work hours scheduled per week is 
361.6   20 to 29 hours, the staff must annually complete 15 training 
361.7   hours; and 
361.8      (iii) the average number of work hours scheduled per week 
361.9   is one to 19 hours, the staff must annually complete 12 training 
361.10  hours. 
361.11     If direct service staff has received training from a 
361.12  license holder licensed under a program rule identified in this 
361.13  chapter or completed course work regarding disability-related 
361.14  issues from a post-secondary educational institute, that 
361.15  training may also count toward training requirements for other 
361.16  services and for other license holders. 
361.17     (b) The license holder must document the training completed 
361.18  by each employee. 
361.19     (c) Training shall address staff competencies necessary to 
361.20  address the consumer needs as identified in the consumer's 
361.21  individual service plan and ensure consumer health, safety, and 
361.22  protection of rights.  Training may also include other areas 
361.23  identified by the license holder. 
361.24     (d) For consumers requiring a 24-hour plan of care, the 
361.25  license holder shall provide training in cardiopulmonary 
361.26  resuscitation, from a qualified source determined by the 
361.27  commissioner, if the consumer's health needs as determined by 
361.28  the consumer's physician indicate trained staff would be 
361.29  necessary to the consumer. 
361.30     Sec. 19.  Minnesota Statutes 2002, section 245B.07, 
361.31  subdivision 9, is amended to read: 
361.32     Subd. 9.  [AVAILABILITY OF CURRENT WRITTEN POLICIES AND 
361.33  PROCEDURES.] The license holder shall: 
361.34     (1) review and update, as needed, the written policies and 
361.35  procedures in this chapter and inform all consumers or the 
361.36  consumer's legal representatives, case managers, and employees 
362.1   of the revised policies and procedures when they affect the 
362.2   service provision; 
362.3      (2) inform consumers or the consumer's legal 
362.4   representatives of the written policies and procedures in this 
362.5   chapter upon service initiation.  Copies must be available to 
362.6   consumers or the consumer's legal representatives, case 
362.7   managers, the county where services are located, and the 
362.8   commissioner upon request; and 
362.9      (3) provide all consumers or the consumers' legal 
362.10  representatives and case managers a copy and explanation of 
362.11  revisions to policies and procedures that affect consumers' 
362.12  service-related or protection-related rights under section 
362.13  245B.04.  Unless there is reasonable cause, the license holder 
362.14  must provide this notice at least 30 days before implementing 
362.15  the revised policy and procedure.  The license holder must 
362.16  document the reason for not providing the notice at least 30 
362.17  days before implementing the revisions; 
362.18     (4) annually notify all consumers or the consumers' legal 
362.19  representatives and case managers of any revised policies and 
362.20  procedures under this chapter, other than those in clause (3).  
362.21  Upon request, the license holder must provide the consumer or 
362.22  consumer's legal representative and case manager copies of the 
362.23  revised policies and procedures; 
362.24     (5) before implementing revisions to policies and 
362.25  procedures under this chapter, inform all employees of the 
362.26  revised policies and procedures; and 
362.27     (6) document and maintain relevant information related to 
362.28  the policies and procedures in this chapter. 
362.29     Sec. 20.  Minnesota Statutes 2002, section 245B.08, 
362.30  subdivision 1, is amended to read: 
362.31     Subdivision 1.  [ALTERNATIVE METHODS OF DETERMINING 
362.32  COMPLIANCE.] (a) In addition to methods specified in chapter 
362.33  245A, the commissioner may use alternative methods and new 
362.34  regulatory strategies to determine compliance with this 
362.35  section.  The commissioner may use sampling techniques to ensure 
362.36  compliance with this section.  Notwithstanding section 245A.09, 
363.1   subdivision 7, paragraph (d) (e), the commissioner may also 
363.2   extend periods of licensure, not to exceed five years, for 
363.3   license holders who have demonstrated substantial and consistent 
363.4   compliance with sections 245B.02 to 245B.07 and have 
363.5   consistently maintained the health and safety of consumers and 
363.6   have demonstrated by alternative methods in paragraph (b) that 
363.7   they meet or exceed the requirements of this section.  For 
363.8   purposes of this section, "substantial and consistent 
363.9   compliance" means that during the current licensing period: 
363.10     (1) the license holder's license has not been made 
363.11  conditional, suspended, or revoked; 
363.12     (2) there have been no substantiated allegations of 
363.13  maltreatment against the license holder; 
363.14     (3) there have been no program deficiencies that have been 
363.15  identified that would jeopardize the health or safety of 
363.16  consumers being served; and 
363.17     (4) the license holder is in substantial compliance with 
363.18  the other requirements of chapter 245A and other applicable laws 
363.19  and rules. 
363.20     (b) To determine the length of a license, the commissioner 
363.21  shall consider: 
363.22     (1) information from affected consumers, and the license 
363.23  holder's responsiveness to consumers' concerns and 
363.24  recommendations; 
363.25     (2) self assessments and peer reviews of the standards of 
363.26  this section, corrective actions taken by the license holder, 
363.27  and sharing the results of the inspections with consumers, the 
363.28  consumers' families, and others, as requested; 
363.29     (3) length of accreditation by an independent accreditation 
363.30  body, if applicable; 
363.31     (4) information from the county where the license holder is 
363.32  located; and 
363.33     (5) information from the license holder demonstrating 
363.34  performance that meets or exceeds the minimum standards of this 
363.35  chapter. 
363.36     (c) The commissioner may reduce the length of the license 
364.1   if the license holder fails to meet the criteria in paragraph 
364.2   (a) and the conditions specified in paragraph (b). 
364.3      Sec. 21.  Minnesota Statutes 2002, section 246.014, is 
364.4   amended to read: 
364.5      246.014 [SERVICES.] 
364.6      The measure of services established and prescribed by 
364.7   section 246.012, are: 
364.8      (a) The commissioner of human services shall develop and 
364.9   maintain state-operated services in a manner consistent with 
364.10  sections 245.461, 245.487, and 253.28, and chapters 252A, 254A, 
364.11  and 254B.  State-operated services shall be provided in 
364.12  coordination with counties and other vendors.  State-operated 
364.13  services shall include regional treatment centers, specialized 
364.14  inpatient or outpatient treatment programs, enterprise services, 
364.15  community-based services and programs, community preparation 
364.16  services, consultative services, and other services consistent 
364.17  with the mission of the department of human services.  These 
364.18  services shall include crisis beds, waivered homes, intermediate 
364.19  care facilities, and day training and habilitation facilities.  
364.20  The administrative structure of state-operated services must be 
364.21  statewide in character.  The state-operated services staff may 
364.22  deliver services at any location throughout the state. 
364.23     (b) The commissioner of human services shall create and 
364.24  maintain forensic services programs.  Forensic services shall be 
364.25  provided in coordination with counties and other vendors.  
364.26  Forensic services shall include specialized inpatient programs 
364.27  at secure treatment facilities as defined in section 253B.02, 
364.28  subdivision 18a, consultative services, aftercare services, 
364.29  community-based services and programs, transition services, or 
364.30  other services consistent with the mission of the department of 
364.31  human services. 
364.32     (c) Community preparation services as identified in 
364.33  paragraphs (a) and (b) are defined as specialized inpatient or 
364.34  outpatient services or programs operated outside of a secure 
364.35  environment but are administered by a secured treatment facility.
364.36     (d) The commissioner of human services may establish 
365.1   policies and procedures which govern the operation of the 
365.2   services and programs under the direct administrative authority 
365.3   of the commissioner. 
365.4      (1) There shall be served in state hospitals a single 
365.5   standard of food for patients and employees alike, which is 
365.6   nutritious and palatable together with special diets as 
365.7   prescribed by the medical staff thereof.  There shall be a chief 
365.8   dietitian in the department of human services and at least one 
365.9   dietitian at each state hospital.  There shall be adequate staff 
365.10  and equipment for processing, preparation, distribution and 
365.11  serving of food. 
365.12     (2) There shall be a staff of persons, professional and 
365.13  lay, sufficient in number, trained in the diagnosis, care and 
365.14  treatment of persons with mental illness, physical illness, and 
365.15  including religious and spiritual counsel through qualified 
365.16  chaplains (who shall be in the unclassified service) adequate to 
365.17  take advantage of and put into practice modern methods of 
365.18  psychiatry, medicine and related field. 
365.19     (3) There shall be a staff and facilities to provide 
365.20  occupational and recreational therapy, entertainment and other 
365.21  creative activities as are consistent with modern methods of 
365.22  treatment and well being. 
365.23     (4) There shall be in each state hospital for the care and 
365.24  treatment of persons with mental illness facilities for the 
365.25  segregation and treatment of patients and residents who have 
365.26  communicable disease. 
365.27     (5) The commissioner of human services shall provide modern 
365.28  and adequate psychiatric social case work service. 
365.29     (6) The commissioner of human services shall make every 
365.30  effort to improve the accommodations for patients and residents 
365.31  so that the same shall be comfortable and attractive with 
365.32  adequate furnishings, clothing, and supplies. 
365.33     (7) The commissioner of human services shall establish 
365.34  training programs for the training of personnel and may require 
365.35  the participation of personnel in such programs.  Within the 
365.36  limits of the appropriations available the commissioner may 
366.1   establish professional training programs in the forms of 
366.2   educational stipends for positions for which there is a scarcity 
366.3   of applicants. 
366.4      (8) The standards herein established shall be adapted and 
366.5   applied to the diagnosis, care and treatment of persons with 
366.6   chemical dependency or mental retardation who come within those 
366.7   terms as defined in the laws relating to the hospitalization and 
366.8   commitment of such persons, and of persons who have sexual 
366.9   psychopathic personalities or are sexually dangerous persons as 
366.10  defined in chapter 253B.  
366.11     (9) The commissioner of human services shall establish a 
366.12  program of detection, diagnosis and treatment of persons with 
366.13  mental illness and persons described in clause (8), and within 
366.14  the limits of appropriations may establish clinics and staff the 
366.15  same with persons specially trained in psychiatry and related 
366.16  fields. 
366.17     (10) The commissioner of employee relations may reclassify 
366.18  employees of the state hospitals from time to time, and assign 
366.19  classifications to such salary brackets as will adequately 
366.20  compensate personnel and reasonably assure a continuity of 
366.21  adequate staff. 
366.22     (11) In addition to the chaplaincy services, provided in 
366.23  clause (2), the commissioner of human services shall open said 
366.24  state hospitals to members of the clergy and other spiritual 
366.25  leaders to the end that religious and spiritual counsel and 
366.26  services are made available to the patients and residents 
366.27  therein, and shall cooperate with all members of the clergy and 
366.28  other spiritual leaders in making said patients and residents 
366.29  available for religious and spiritual counsel, and shall provide 
366.30  such members of the clergy and other spiritual leaders with 
366.31  meals and accommodations. 
366.32     (12) Within the limits of the appropriations therefor, the 
366.33  commissioner of human services shall establish and provide 
366.34  facilities and equipment for research and study in the field of 
366.35  modern hospital management, the causes of mental and related 
366.36  illness and the treatment, diagnosis and care of persons with 
367.1   mental illness and funds provided therefor may be used to make 
367.2   available services, abilities and advice of leaders in these and 
367.3   related fields, and may provide them with meals and 
367.4   accommodations and compensate them for traveling expenses and 
367.5   services. 
367.6      Sec. 22.  Minnesota Statutes 2002, section 246.015, 
367.7   subdivision 3, is amended to read: 
367.8      Subd. 3.  Within the limits of the appropriations 
367.9   available, The commissioner of human services may authorize 
367.10  state-operated services to provide consultative services for 
367.11  courts, and state welfare agencies, and supervise the placement 
367.12  and aftercare of patients, on a fee-for-service basis as defined 
367.13  in section 246.50, provisionally or otherwise discharged from 
367.14  a state hospital or institution, state-operated services 
367.15  facility.  State-operated services may also promote and conduct 
367.16  programs of education for the people of the state relating to 
367.17  the problem of mental health and mental hygiene.  The 
367.18  commissioner shall administer, expend, and distribute federal 
367.19  funds which may be made available to the state and other funds 
367.20  other than those not appropriated by the legislature, which may 
367.21  be made available to the state for mental health and mental 
367.22  hygiene purposes. 
367.23     Sec. 23.  Minnesota Statutes 2002, section 246.018, 
367.24  subdivision 2, is amended to read: 
367.25     Subd. 2.  [MEDICAL DIRECTOR.] The commissioner of human 
367.26  services shall appoint a medical director, and unless otherwise 
367.27  established by law, set the salary of a licensed physician to 
367.28  serve as medical director to assist in establishing and 
367.29  maintaining the medical policies of the department of human 
367.30  services.  The commissioner may place the medical director's 
367.31  position in the unclassified service if the position meets the 
367.32  criteria of section 43A.08, subdivision 1a.  The medical 
367.33  director must be a psychiatrist certified by the board of 
367.34  psychiatry. 
367.35     Sec. 24.  Minnesota Statutes 2002, section 246.018, 
367.36  subdivision 3, is amended to read: 
368.1      Subd. 3.  [DUTIES.] The medical director shall: 
368.2      (1) oversee the clinical provision of inpatient mental 
368.3   health services provided in the state's regional treatment 
368.4   centers; 
368.5      (2) recruit and retain psychiatrists to serve on the state 
368.6   medical staff established in subdivision 4; 
368.7      (3) consult with the commissioner of human services, the 
368.8   assistant commissioner of mental health, community mental health 
368.9   center directors, and the regional treatment center governing 
368.10  bodies state-operated services governing body to develop 
368.11  standards for treatment and care of patients in regional 
368.12  treatment centers and outpatient state-operated service 
368.13  programs; 
368.14     (4) develop and oversee a continuing education program for 
368.15  members of the regional treatment center medical staff; and 
368.16     (5) consult with the commissioner on the appointment of the 
368.17  chief executive officers for regional treatment centers; and 
368.18     (6) participate and cooperate in the development and 
368.19  maintenance of a quality assurance program for regional 
368.20  treatment centers state-operated services that assures that 
368.21  residents receive quality inpatient care and continuous quality 
368.22  care once they are discharged or transferred to an outpatient 
368.23  setting. 
368.24     Sec. 25.  Minnesota Statutes 2002, section 246.018, 
368.25  subdivision 4, is amended to read: 
368.26     Subd. 4.  [REGIONAL TREATMENT CENTER STATE-OPERATED 
368.27  SERVICES MEDICAL STAFF.] (a) The commissioner of human services 
368.28  medical director shall establish a regional treatment center 
368.29  state-operated service medical staff which shall be under the 
368.30  clinical direction of the office of medical director. 
368.31     (b) The medical director, in conjunction with the regional 
368.32  treatment center medical staff, shall: 
368.33     (1) establish standards and define qualifications for 
368.34  physicians who care for residents in regional treatment 
368.35  centers state-operated services; 
368.36     (2) monitor the performance of physicians who care for 
369.1   residents in regional treatment centers state-operated services; 
369.2   and 
369.3      (3) recommend to the commissioner changes in procedures for 
369.4   operating regional treatment centers state-operated service 
369.5   facilities that are needed to improve the provision of medical 
369.6   care in those facilities. 
369.7      Sec. 26.  Minnesota Statutes 2002, section 246.13, is 
369.8   amended to read: 
369.9      246.13 [RECORD OF PATIENTS AND RESIDENTS; DEPARTMENT OF 
369.10  HUMAN IN STATE-OPERATED SERVICES.] 
369.11     The commissioner of human services' office shall have, 
369.12  accessible only by consent of the commissioner or on the order 
369.13  of a judge or court of record, a record showing the residence, 
369.14  sex, age, nativity, occupation, civil condition, and date of 
369.15  entrance or commitment of every person, in the state hospitals 
369.16  state-operated services facilities as defined under section 
369.17  246.014 under exclusive control of the commissioner,; the date 
369.18  of discharge and whether such discharge was final,; the 
369.19  condition of such the person when the person left the state 
369.20  hospital, state-operated services facility; and the date and 
369.21  cause of all deaths.  The record shall state every transfer from 
369.22  one state hospital state-operated services facility to another, 
369.23  naming each state-operated services facility.  This information 
369.24  shall be furnished to the commissioner of human services by each 
369.25  public and private agency, along with such other obtainable 
369.26  facts as the commissioner may from time to time require.  The 
369.27  chief executive officer of each such state hospital, within ten 
369.28  days after the commitment or entrance thereto of a patient or 
369.29  resident, shall cause a true copy of an entrance record to be 
369.30  forwarded to the commissioner of human services.  When a patient 
369.31  or resident leaves, in a state-operated services facility is 
369.32  discharged or, transferred, or dies in any state hospital, 
369.33  the chief executive officer, or other person in charge head of 
369.34  the state-operated services facility or designee shall inform 
369.35  the commissioner of human services of these events within ten 
369.36  days thereafter on forms furnished by the commissioner.  
370.1      The commissioner of human services may authorize the chief 
370.2   executive officer of any state hospital for persons with mental 
370.3   illness or mental retardation, to release to public or private 
370.4   medical personnel, hospitals, clinics, local social services 
370.5   agencies or other specifically designated interested persons or 
370.6   agencies any information regarding any patient or resident 
370.7   thereat, if, in the opinion of the commissioner, it will be for 
370.8   the benefit of the patient or resident.  
370.9      Sec. 27.  Minnesota Statutes 2002, section 246.15, is 
370.10  amended to read: 
370.11     246.15 [MONEY OF INMATES OF PUBLIC WELFARE INSTITUTIONS 
370.12  PATIENTS OR RESIDENTS.] 
370.13     Subdivision 1.  [RECORD KEEPING OF MONEY.] The chief 
370.14  executive officer of each institution head of the state-operated 
370.15  services facility or designee under the jurisdiction of the 
370.16  commissioner of human services shall may have the care and 
370.17  custody of all money belonging to inmates thereof patients or 
370.18  residents which may come into the chief executive officer's head 
370.19  of the state-operated services facility or designee's hands,.  
370.20  The head of the state-operated services facility or designee 
370.21  shall keep accurate accounts thereof of the money, and pay them 
370.22  out under rules prescribed by law or by the commissioner of 
370.23  human services, taking vouchers therefor for the money.  
370.24  All such money received by any officer or employee shall be paid 
370.25  to the chief executive officer forthwith head of the 
370.26  state-operated services facility or designee immediately.  Every 
370.27  such executive officer head of the state-operated services 
370.28  facility or designee, at the close of each month, or oftener 
370.29  earlier if required by the commissioner, shall forward to the 
370.30  commissioner a statement of the amount of all money so received 
370.31  and the names of the inmates patients or residents from whom 
370.32  received, accompanied by a check for the amount, payable to the 
370.33  state treasurer.  On receipt of such the statement, the 
370.34  commissioner shall transmit the same statement along with a 
370.35  check to the commissioner of finance, together with such check, 
370.36  who shall deliver the same statement and check to the state 
371.1   treasurer.  Upon the payment of such the check, the amount shall 
371.2   be credited to a fund to be known as "Inmates Client Fund," for 
371.3   the institution from which the same check was received.  All 
371.4   such funds shall be paid out by the state treasurer upon 
371.5   vouchers duly approved by the commissioner of human services as 
371.6   in other cases.  The commissioner may permit a contingent fund 
371.7   to remain in the hands of the executive officer head of the 
371.8   state-operated services facility or designee of any such the 
371.9   institution from which necessary expenditure expenditures may 
371.10  from time to time be made.  
371.11     Subd. 2.  [CORRECTIONAL INMATES FUND.] Any money in the 
371.12  inmates fund provided for in this section, belonging to inmates 
371.13  of state institutions under the jurisdiction of the commissioner 
371.14  of corrections shall forthwith be immediately transferred by the 
371.15  commissioner of human services to the correctional inmates 
371.16  inmates' fund created by section 241.08.  
371.17     Sec. 28.  Minnesota Statutes 2002, section 246.16, is 
371.18  amended to read: 
371.19     246.16 [UNCLAIMED MONEY OR PERSONAL PROPERTY OF 
371.20  INMATES PATIENTS OR RESIDENTS.] 
371.21     Subdivision 1.  [UNCLAIMED MONEY.] When there money has 
371.22  heretofore accumulated or shall hereafter accumulate in the 
371.23  hands of the superintendent of any state institution head of the 
371.24  state-operated services facility or designee under the 
371.25  jurisdiction of the commissioner of human services money 
371.26  belonging to inmates patients or residents of such the 
371.27  institution who have died therein there, or 
371.28  disappeared therefrom from there, and for which money there is 
371.29  no claimant or person entitled thereto to the money known to the 
371.30  superintendent, such head of the state-operated services 
371.31  facility or designee the money may, at the discretion of such 
371.32  superintendent the head of the state-operated services facility 
371.33  or designee, to be expended under the direction of the 
371.34  superintendent head of the state-operated services facility or 
371.35  designee for the amusement, entertainment, and general benefit 
371.36  of the inmates patients or residents of such the institution.  
372.1   No money shall be so used until it shall have has remained 
372.2   unclaimed for at least five years.  If, at any time after the 
372.3   expiration of the five years, the legal heirs of the inmate 
372.4   shall patients or residents appear and make proper proof of such 
372.5   heirship, they shall be entitled to receive from the state 
372.6   treasurer such the sum of money as shall have been expended by 
372.7   the superintendent head of the state-operated services facility 
372.8   or designee belonging to the inmate patient or resident. 
372.9      Subd. 2.  [UNCLAIMED PERSONAL PROPERTY.] When any 
372.10  inmate patient or resident of a state institution state-operated 
372.11  services facility under the jurisdiction of the commissioner of 
372.12  human services has died or disappeared therefrom, or hereafter 
372.13  shall die or disappear therefrom dies or disappears from the 
372.14  state-operated services facility, leaving personal property 
372.15  exclusive of money in the custody of the superintendent thereof 
372.16  personal property, exclusive of money, which head of the 
372.17  state-operated services facility or designee and the property 
372.18  remains unclaimed for a period of two years, and there is with 
372.19  no person entitled thereto to the property known to the 
372.20  superintendent head of the state-operated services or designee, 
372.21  the superintendent or an agent head of the state-operated 
372.22  services facility or designee may sell such the property at 
372.23  public auction.  Notice of such the sale shall be published for 
372.24  two consecutive weeks in a legal newspaper in the county wherein 
372.25  where the institution state-operated services facility is 
372.26  located and shall state the time and place of such the sale.  
372.27  The proceeds of the sale, after deduction of the costs of 
372.28  publication and auction, may be expended, at the discretion of 
372.29  the superintendent head of the state-operated services facility 
372.30  or designee, for the entertainment and benefit of the inmates 
372.31  patients or residents of such institution the state-operated 
372.32  services facility.  Any inmate patient or resident, or heir or 
372.33  representative of the inmate patient or resident, may file with, 
372.34  and make proof of ownership to, the superintendent head of the 
372.35  state-operated services facility or designee of the institution 
372.36  state-operated services facility disposing of such the personal 
373.1   property within four years after such the sale, and, upon proof 
373.2   satisfactory proof to such superintendent the head of the 
373.3   state-operated services or designee, shall certify for payment 
373.4   to the state treasurer the amount received by the sale of such 
373.5   the property.  No suit shall be brought for damages consequent 
373.6   to the disposal of personal property or use of money in 
373.7   accordance with this section against the state or any official, 
373.8   employee, or agent thereof.  
373.9      Sec. 29.  Minnesota Statutes 2002, section 246.57, 
373.10  subdivision 1, is amended to read: 
373.11     Subdivision 1.  [AUTHORIZED.] The commissioner of human 
373.12  services may authorize any state state-operated services 
373.13  facility operated under the authority of the commissioner to 
373.14  enter into agreement with other governmental entities and both 
373.15  nonprofit and for-profit organizations for participation in 
373.16  shared service agreements that would be of mutual benefit to the 
373.17  state, other governmental entities and organizations involved, 
373.18  and the public.  Notwithstanding section 16C.05, subdivision 2, 
373.19  the commissioner of human services may delegate the execution of 
373.20  shared services contracts to the chief executive officers of the 
373.21  regional centers or state operated nursing homes.  No additional 
373.22  employees shall be added to the legislatively approved 
373.23  complement for any regional center or state nursing home as a 
373.24  result of entering into any shared service agreement.  However, 
373.25  Positions funded by a shared service agreement may be are 
373.26  authorized by the commissioner of finance for the duration of 
373.27  the shared service agreement.  The charges for the services 
373.28  shall be on an actual cost basis.  All receipts for shared 
373.29  services may be retained by the regional treatment center or 
373.30  state-operated nursing home service that provided the services, 
373.31  in addition to other funding the regional treatment center or 
373.32  state-operated nursing home receives. 
373.33     Sec. 30.  Minnesota Statutes 2002, section 246.57, 
373.34  subdivision 4, is amended to read: 
373.35     Subd. 4.  [SHARED STAFF OR SERVICES.] The commissioner of 
373.36  human services may authorize a regional treatment center 
374.1   state-operated services to provide staff or services to Camp 
374.2   Confidence in return for services to, or use of the camp's 
374.3   facilities by, residents of the treatment center facility who 
374.4   have mental retardation or a related condition. 
374.5      Sec. 31.  Minnesota Statutes 2002, section 246.57, 
374.6   subdivision 6, is amended to read: 
374.7      Subd. 6.  [DENTAL SERVICES.] The commissioner of human 
374.8   services shall authorize any regional treatment center or 
374.9   state-operated nursing home services facility under the 
374.10  commissioner's authority to provide dental services to disabled 
374.11  persons who are eligible for medical assistance and are not 
374.12  residing at the regional treatment center or state-operated 
374.13  nursing home, provided that the reimbursement received for these 
374.14  services is sufficient to cover actual costs.  To provide these 
374.15  services, regional treatment centers and state-operated nursing 
374.16  homes may participate under contract with health networks in 
374.17  their service area.  Notwithstanding section 16C.05, subdivision 
374.18  2, the commissioner of human services may delegate the execution 
374.19  of these dental services contracts to the chief executive 
374.20  officers of the regional centers or state-operated nursing 
374.21  homes.  All receipts for these dental services shall be retained 
374.22  by the regional treatment center or state-operated nursing home 
374.23  that provides the services and shall be in addition to other 
374.24  funding the regional treatment center or state-operated nursing 
374.25  home receives. 
374.26     Sec. 32.  Minnesota Statutes 2002, section 246.71, 
374.27  subdivision 4, is amended to read: 
374.28     Subd. 4.  [EMPLOYEE OF A SECURE TREATMENT FACILITY OR 
374.29  EMPLOYEE.] "Employee of a secure treatment facility" or 
374.30  "employee" means an employee of the Minnesota security hospital 
374.31  or a secure treatment facility operated by the Minnesota sexual 
374.32  psychopathic personality treatment center sex offender program. 
374.33     Sec. 33.  Minnesota Statutes 2002, section 246.71, 
374.34  subdivision 5, is amended to read: 
374.35     Subd. 5.  [SECURE TREATMENT FACILITY.] "Secure treatment 
374.36  facility" means the Minnesota security hospital or the Minnesota 
375.1   sexual psychopathic personality treatment center and the 
375.2   Minnesota sex offender program facility in Moose Lake and any 
375.3   portion of the Minnesota sex offender program operated by the 
375.4   Minnesota sex offender program at the Minnesota security 
375.5   hospital.  
375.6      Sec. 34.  Minnesota Statutes 2002, section 246B.02, is 
375.7   amended to read: 
375.8      246B.02 [ESTABLISHMENT OF MINNESOTA SEXUAL PSYCHOPATHIC 
375.9   PERSONALITY TREATMENT CENTER SEX OFFENDER PROGRAM.] 
375.10     The commissioner of human services shall establish and 
375.11  maintain a secure facility located in Moose Lake.  The facility 
375.12  shall be known as shall be operated by the Minnesota Sexual 
375.13  Psychopathic Personality Treatment Center sex offender program.  
375.14  The facility program shall provide care and treatment in secure 
375.15  treatment facilities to 100 persons committed by the courts as 
375.16  sexual psychopathic personalities or sexually dangerous persons, 
375.17  or persons admitted there with the consent of the commissioner 
375.18  of human services. 
375.19     Sec. 35.  Minnesota Statutes 2002, section 246B.03, is 
375.20  amended to read: 
375.21     246B.03 [LICENSURE.] 
375.22     The commissioner of human services shall apply to the 
375.23  commissioner of health to license the secure treatment 
375.24  facilities operated by the Minnesota Sexual Psychopathic 
375.25  Personality Treatment Center sex offender program as a 
375.26  supervised living facility facilities with applicable program 
375.27  licensing standards. 
375.28     Sec. 36.  Minnesota Statutes 2002, section 246B.04, is 
375.29  amended to read: 
375.30     246B.04 [RULES; EVALUATION.] 
375.31     The commissioner of human services shall adopt rules to 
375.32  govern the operation, maintenance, and licensure of the secure 
375.33  treatment facilities operated by the Minnesota sex offender 
375.34  program established at the Minnesota Sexual Psychopathic 
375.35  Personality Treatment Center, or at any other facility operated 
375.36  by the commissioner, for persons committed as a sexual 
376.1   psychopathic personality or sexually dangerous person.  The 
376.2   commissioner shall establish an evaluation process to measure 
376.3   outcomes and behavioral changes as a result of treatment 
376.4   compared with incarceration without treatment, to determine the 
376.5   value, if any, of treatment in protecting the public. 
376.6      Sec. 37.  Minnesota Statutes 2002, section 252.025, 
376.7   subdivision 7, is amended to read: 
376.8      Subd. 7.  [MINNESOTA EXTENDED TREATMENT OPTIONS.] The 
376.9   commissioner shall develop by July 1, 1997, the Minnesota 
376.10  extended treatment options to serve Minnesotans who have mental 
376.11  retardation and exhibit severe behaviors which present a risk to 
376.12  public safety.  This program must provide specialized 
376.13  residential services on the Cambridge campus in Cambridge and an 
376.14  array of community support services statewide. 
376.15     Sec. 38.  Minnesota Statutes 2002, section 252.06, is 
376.16  amended to read: 
376.17     252.06 [SHERIFF TO TRANSPORT PERSONS WITH MENTAL 
376.18  RETARDATION.] 
376.19     It shall be the duty of the sheriff of any county, upon the 
376.20  request of the commissioner of human services, to take charge of 
376.21  and, transport, and deliver any person with mental retardation 
376.22  who has been committed by the district court of any county to 
376.23  the care and custody of the commissioner of human services 
376.24  to such state hospital a state-operated services facility as may 
376.25  be designated by the commissioner of human services and there 
376.26  deliver such person to the chief executive officer of the state 
376.27  hospital. 
376.28     Sec. 39.  Minnesota Statutes 2002, section 252.27, 
376.29  subdivision 2a, is amended to read: 
376.30     Subd. 2a.  [CONTRIBUTION AMOUNT.] (a) The natural or 
376.31  adoptive parents of a minor child, including a child determined 
376.32  eligible for medical assistance without consideration of 
376.33  parental income, must contribute monthly to the cost of 
376.34  services, unless the child is married or has been married, 
376.35  parental rights have been terminated, or the child's adoption is 
376.36  subsidized according to section 259.67 or through title IV-E of 
377.1   the Social Security Act. 
377.2      (b) For households with adjusted gross income equal to or 
377.3   greater than 100 percent of federal poverty guidelines, the 
377.4   parental contribution shall be the greater of a minimum monthly 
377.5   fee of $25 for households with adjusted gross income of $30,000 
377.6   and over, or an amount to be computed by applying the following 
377.7   schedule of rates to the adjusted gross income of the natural or 
377.8   adoptive parents that exceeds 150 percent of the federal poverty 
377.9   guidelines for the applicable household size, the following 
377.10  schedule of rates: 
377.11     (1) on the amount of adjusted gross income over 150 percent 
377.12  of poverty, but not over $50,000, ten percent if the adjusted 
377.13  gross income is equal to or greater than 100 percent of federal 
377.14  poverty guidelines and less than 175 percent of federal poverty 
377.15  guidelines, the parental contribution is $4 per month; 
377.16     (2) on if the amount of adjusted gross income over 150 
377.17  percent of poverty and over $50,000 but not over $60,000, 12 
377.18  percent is equal to or greater than 175 percent of federal 
377.19  poverty guidelines and less than or equal to 375 percent of 
377.20  federal poverty guidelines, the parental contribution shall be 
377.21  determined using a sliding fee scale established by the 
377.22  commissioner of human services which begins at one percent of 
377.23  adjusted gross income at 175 percent of federal poverty 
377.24  guidelines and increases to 7.5 percent of adjusted gross income 
377.25  for those with adjusted gross income up to 375 percent of 
377.26  federal poverty guidelines; 
377.27     (3) on if the amount of adjusted gross income over 150 is 
377.28  greater than 375 percent of federal poverty, and over $60,000 
377.29  but not over $75,000, 14 percent guidelines and less than 675 
377.30  percent of federal poverty guidelines, the parental contribution 
377.31  shall be 7.5 percent of adjusted gross income; and 
377.32     (4) on all if the adjusted gross income amounts over 150 is 
377.33  equal to or greater than 675 percent of federal poverty, and 
377.34  over $75,000, 15 percent guidelines and less than 975 percent of 
377.35  federal poverty guidelines, the parental contribution shall be 
377.36  ten percent of adjusted gross income; and 
378.1      (5) if the adjusted gross income is equal to or greater 
378.2   than 975 percent of federal poverty guidelines, the parental 
378.3   contribution shall be 12.5 percent of adjusted gross income. 
378.4      If the child lives with the parent, the parental 
378.5   contribution annual adjusted gross income is reduced by $200, 
378.6   except that the parent must pay the minimum monthly $25 fee 
378.7   under this paragraph $2,400 prior to calculating the parental 
378.8   contribution.  If the child resides in an institution specified 
378.9   in section 256B.35, the parent is responsible for the personal 
378.10  needs allowance specified under that section in addition to the 
378.11  parental contribution determined under this section.  The 
378.12  parental contribution is reduced by any amount required to be 
378.13  paid directly to the child pursuant to a court order, but only 
378.14  if actually paid. 
378.15     (c) The household size to be used in determining the amount 
378.16  of contribution under paragraph (b) includes natural and 
378.17  adoptive parents and their dependents under age 21, including 
378.18  the child receiving services.  Adjustments in the contribution 
378.19  amount due to annual changes in the federal poverty guidelines 
378.20  shall be implemented on the first day of July following 
378.21  publication of the changes. 
378.22     (d) For purposes of paragraph (b), "income" means the 
378.23  adjusted gross income of the natural or adoptive parents 
378.24  determined according to the previous year's federal tax form. 
378.25     (e) The contribution shall be explained in writing to the 
378.26  parents at the time eligibility for services is being 
378.27  determined.  The contribution shall be made on a monthly basis 
378.28  effective with the first month in which the child receives 
378.29  services.  Annually upon redetermination or at termination of 
378.30  eligibility, if the contribution exceeded the cost of services 
378.31  provided, the local agency or the state shall reimburse that 
378.32  excess amount to the parents, either by direct reimbursement if 
378.33  the parent is no longer required to pay a contribution, or by a 
378.34  reduction in or waiver of parental fees until the excess amount 
378.35  is exhausted. 
378.36     (f) The monthly contribution amount must be reviewed at 
379.1   least every 12 months; when there is a change in household size; 
379.2   and when there is a loss of or gain in income from one month to 
379.3   another in excess of ten percent.  The local agency shall mail a 
379.4   written notice 30 days in advance of the effective date of a 
379.5   change in the contribution amount.  A decrease in the 
379.6   contribution amount is effective in the month that the parent 
379.7   verifies a reduction in income or change in household size. 
379.8      (g) Parents of a minor child who do not live with each 
379.9   other shall each pay the contribution required under paragraph 
379.10  (a), except that a.  An amount equal to the annual court-ordered 
379.11  child support payment actually paid on behalf of the child 
379.12  receiving services shall be deducted from the contribution 
379.13  adjusted gross income of the parent making the payment prior to 
379.14  calculating the parental contribution under paragraph (b). 
379.15     (h) The contribution under paragraph (b) shall be increased 
379.16  by an additional five percent if the local agency determines 
379.17  that insurance coverage is available but not obtained for the 
379.18  child.  For purposes of this section, "available" means the 
379.19  insurance is a benefit of employment for a family member at an 
379.20  annual cost of no more than five percent of the family's annual 
379.21  income.  For purposes of this section, "insurance" means health 
379.22  and accident insurance coverage, enrollment in a nonprofit 
379.23  health service plan, health maintenance organization, 
379.24  self-insured plan, or preferred provider organization. 
379.25     Parents who have more than one child receiving services 
379.26  shall not be required to pay more than the amount for the child 
379.27  with the highest expenditures.  There shall be no resource 
379.28  contribution from the parents.  The parent shall not be required 
379.29  to pay a contribution in excess of the cost of the services 
379.30  provided to the child, not counting payments made to school 
379.31  districts for education-related services.  Notice of an increase 
379.32  in fee payment must be given at least 30 days before the 
379.33  increased fee is due.  
379.34     (i) The contribution under paragraph (b) shall be reduced 
379.35  by $300 per fiscal year if, in the 12 months prior to July 1: 
379.36     (1) the parent applied for insurance for the child; 
380.1      (2) the insurer denied insurance; 
380.2      (3) the parents submitted a complaint or appeal, in writing 
380.3   to the insurer, submitted a complaint or appeal, in writing, to 
380.4   the commissioner of health or the commissioner of commerce, or 
380.5   litigated the complaint or appeal; and 
380.6      (4) as a result of the dispute, the insurer reversed its 
380.7   decision and granted insurance. 
380.8      For purposes of this section, "insurance" has the meaning 
380.9   given in paragraph (h). 
380.10     A parent who has requested a reduction in the contribution 
380.11  amount under this paragraph shall submit proof in the form and 
380.12  manner prescribed by the commissioner or county agency, 
380.13  including, but not limited to, the insurer's denial of 
380.14  insurance, the written letter or complaint of the parents, court 
380.15  documents, and the written response of the insurer approving 
380.16  insurance.  The determinations of the commissioner or county 
380.17  agency under this paragraph are not rules subject to chapter 14. 
380.18     [EFFECTIVE DATE.] This section is effective July 1, 2003. 
380.19     Sec. 40.  Minnesota Statutes 2002, section 253.015, 
380.20  subdivision 1, is amended to read: 
380.21     Subdivision 1.  [STATE HOSPITALS STATE-OPERATED SERVICES 
380.22  FOR PERSONS WITH MENTAL ILLNESS.] The state hospitals 
380.23  state-operated services facilities located at Anoka, Brainerd, 
380.24  Fergus Falls, St. Peter, and Willmar, and Moose Lake until June 
380.25  30, 1995, shall constitute the state hospitals state-operated 
380.26  services facilities for persons with mental illness, and shall 
380.27  be maintained under the general management of the commissioner 
380.28  of human services.  The commissioner of human services shall 
380.29  determine to what state hospital state-operated services 
380.30  facility persons with mental illness shall be committed from 
380.31  each county and notify the judge exercising probate jurisdiction 
380.32  thereof, and of changes made from time to time.  The chief 
380.33  executive officer of each hospital for persons with mental 
380.34  illness shall be known as the chief executive officer.  
380.35     Sec. 41.  Minnesota Statutes 2002, section 253.017, is 
380.36  amended to read: 
381.1      253.017 [TREATMENT PROVIDED BY REGIONAL TREATMENT CENTERS 
381.2   STATE-OPERATED SERVICES.] 
381.3      Subdivision 1.  [ACTIVE PSYCHIATRIC TREATMENT.] The 
381.4   regional treatment centers state-operated services shall provide 
381.5   active psychiatric treatment according to contemporary 
381.6   professional standards.  Treatment must be designed to: 
381.7      (1) stabilize the individual and the symptoms that required 
381.8   hospital admission; 
381.9      (2) restore individual functioning to a level permitting 
381.10  return to the community; 
381.11     (3) strengthen family and community support; and 
381.12     (4) facilitate discharge, after care, and follow-up as 
381.13  patients return to the community. 
381.14     Subd. 2.  [NEED FOR SERVICES.] The commissioner shall 
381.15  determine the need for the psychiatric services provided by the 
381.16  department based upon individual needs assessments of persons in 
381.17  the regional treatment centers state-operated services as 
381.18  required by section 245.474, subdivision 2, and an evaluation 
381.19  of:  (1) regional treatment center state-operated service 
381.20  programs, (2) programs needed in the region for persons who 
381.21  require hospitalization, and (3) available epidemiologic data.  
381.22  Throughout its planning and implementation, the assessment 
381.23  process must be discussed with the state advisory council on 
381.24  mental health in accordance with its duties under section 
381.25  245.697.  Continuing assessment of this information must be 
381.26  considered in planning for and implementing changes in 
381.27  state-operated programs and facilities for persons with mental 
381.28  illness.  By January 31, 1990, the commissioner shall submit a 
381.29  proposal for renovation or new construction of the facilities at 
381.30  Anoka, Brainerd, Moose Lake, and Fergus Falls.  Expansion may be 
381.31  considered only after a thorough analysis of need and in 
381.32  conjunction with a comprehensive mental health plan. 
381.33     Subd. 3.  [DISSEMINATION OF ADMISSION AND STAY CRITERIA.] 
381.34  The commissioner shall periodically disseminate criteria for 
381.35  admission and continued stay in a regional treatment center and 
381.36  security hospital state-operated services facility.  The 
382.1   commissioner shall disseminate the criteria to the courts of the 
382.2   state and counties. 
382.3      Sec. 42.  Minnesota Statutes 2002, section 253.20, is 
382.4   amended to read: 
382.5      253.20 [MINNESOTA SECURITY HOSPITAL.] 
382.6      The commissioner of human services is hereby authorized and 
382.7   directed to shall erect, equip, and maintain in connection with 
382.8   a state hospital at St. Peter a suitable building to be known as 
382.9   the Minnesota Security Hospital, for the purpose of holding in 
382.10  custody and caring for such persons with mental illness or 
382.11  mental retardation as providing a secure treatment facility as 
382.12  defined in section 253B.02, subdivision 18a, for persons who may 
382.13  be committed thereto there by courts of criminal jurisdiction, 
382.14  or otherwise, or transferred thereto there by the commissioner 
382.15  of human services, and for such persons as may be declared 
382.16  insane who are found to be mentally ill while confined in any 
382.17  penal institution correctional facility, or who may be found to 
382.18  be mentally ill and dangerous, and the commissioner shall 
382.19  supervise and manage the same as in the case of other state 
382.20  hospitals. 
382.21     Sec. 43.  Minnesota Statutes 2002, section 253.26, is 
382.22  amended to read: 
382.23     253.26 [TRANSFERS OF PATIENTS OR RESIDENTS.] 
382.24     When any person of the state hospital for patients with 
382.25  mental illness or residents with mental retardation is found by 
382.26  the commissioner of human services to have homicidal tendencies 
382.27  or to be under sentence or indictment or information the person 
382.28  may be transferred by the commissioner to the Minnesota Security 
382.29  Hospital for safekeeping and treatment The commissioner of human 
382.30  services may transfer a committed patient to the Minnesota 
382.31  Security Hospital following a determination that the patient's 
382.32  behavior presents a danger to others and treatment in a secure 
382.33  treatment facility is necessary.  The commissioner shall 
382.34  establish a written policy creating the transfer criteria. 
382.35     Sec. 44.  Minnesota Statutes 2002, section 253B.02, 
382.36  subdivision 18a, is amended to read: 
383.1      Subd. 18a.  [SECURE TREATMENT FACILITY.] "Secure treatment 
383.2   facility" means the Minnesota security hospital or the Minnesota 
383.3   sexual psychopathic personality treatment center and the 
383.4   Minnesota sex offender program facility in Moose Lake and any 
383.5   portion of the Minnesota sex offender program operated by the 
383.6   Minnesota sex offender program at the Minnesota security 
383.7   hospital, but does not include services or programs administered 
383.8   by the secure treatment facility outside a secure environment. 
383.9      Sec. 45.  Minnesota Statutes 2002, section 253B.04, 
383.10  subdivision 1, is amended to read: 
383.11     Subdivision 1.  [VOLUNTARY ADMISSION AND TREATMENT.] (a) 
383.12  Voluntary admission is preferred over involuntary commitment and 
383.13  treatment.  Any person 16 years of age or older may request to 
383.14  be admitted to a treatment facility as a voluntary patient for 
383.15  observation, evaluation, diagnosis, care and treatment without 
383.16  making formal written application.  Any person under the age of 
383.17  16 years may be admitted as a patient with the consent of a 
383.18  parent or legal guardian if it is determined by independent 
383.19  examination that there is reasonable evidence that (1) the 
383.20  proposed patient has a mental illness, or is mentally retarded 
383.21  or chemically dependent; and (2) the proposed patient is 
383.22  suitable for treatment.  The head of the treatment facility 
383.23  shall not arbitrarily refuse any person seeking admission as a 
383.24  voluntary patient.  In making decisions regarding admissions, 
383.25  the facility shall use clinical admission criteria consistent 
383.26  with the current applicable inpatient admission standards 
383.27  established by the American Psychiatric Association or the 
383.28  American Academy of Child and Adolescent Psychiatry.  These 
383.29  criteria must be no more restrictive than, and must be 
383.30  consistent with, the requirements of section 62Q.53.  The 
383.31  facility may not refuse to admit a person voluntarily solely 
383.32  because the person does not meet the criteria for involuntary 
383.33  holds under section 253B.05 or the definition of mental illness 
383.34  under section 253B.02, subdivision 13.  
383.35     (b) In addition to the consent provisions of paragraph (a), 
383.36  a person who is 16 or 17 years of age who refuses to consent 
384.1   personally to admission may be admitted as a patient for mental 
384.2   illness or chemical dependency treatment with the consent of a 
384.3   parent or legal guardian if it is determined by an independent 
384.4   examination that there is reasonable evidence that the proposed 
384.5   patient is chemically dependent or has a mental illness and is 
384.6   suitable for treatment.  The person conducting the examination 
384.7   shall notify the proposed patient and the parent or legal 
384.8   guardian of this determination. 
384.9      (c) A person who is voluntarily participating in treatment 
384.10  for a mental illness is not subject to civil commitment under 
384.11  this chapter if the person: 
384.12     (1) has given informed consent or, if lacking capacity, is 
384.13  a person for whom legally valid substitute consent has been 
384.14  given; and 
384.15     (2) is participating in a medically appropriate course of 
384.16  treatment, including clinically appropriate and lawful use of 
384.17  neuroleptic medication and electroconvulsive therapy.  The 
384.18  limitation on commitment in this paragraph does not apply if, 
384.19  based on clinical assessment, the court finds that it is 
384.20  unlikely that the person will remain in and cooperate with a 
384.21  medically appropriate course of treatment absent commitment and 
384.22  the standards for commitment are otherwise met.  This paragraph 
384.23  does not apply to a person for whom commitment proceedings are 
384.24  initiated pursuant to rule 20.01 or 20.02 of the Rules of 
384.25  Criminal Procedure, or a person found by the court to meet the 
384.26  requirements under section 253B.02, subdivision 17. 
384.27     Legally valid substitute consent may be provided by a proxy 
384.28  under a health care directive, a guardian or conservator with 
384.29  authority to consent to mental health treatment, or consent to 
384.30  admission under subdivision 1a or 1b.  
384.31     Sec. 46.  Minnesota Statutes 2002, section 253B.05, 
384.32  subdivision 3, is amended to read: 
384.33     Subd. 3.  [DURATION OF HOLD.] (a) Any person held pursuant 
384.34  to this section may be held up to 72 hours, exclusive of 
384.35  Saturdays, Sundays, and legal holidays after admission.  If a 
384.36  petition for the commitment of the person is filed in the 
385.1   district court in the county of the person's residence or of the 
385.2   county in which the treatment facility is located, the court may 
385.3   issue a judicial hold order pursuant to section 253B.07, 
385.4   subdivision 2b. 
385.5      (b) During the 72-hour hold period, a court may not release 
385.6   a person held under this section unless the court has received a 
385.7   written petition for release and held a summary hearing 
385.8   regarding the release.  The petition must include the name of 
385.9   the person being held, the basis for and location of the hold, 
385.10  and a statement as to why the hold is improper.  The petition 
385.11  also must include copies of any written documentation under 
385.12  subdivision 1 or 2 in support of the hold, unless the person 
385.13  holding the petitioner refuses to supply the documentation.  The 
385.14  hearing must be held as soon as practicable and may be conducted 
385.15  by means of a telephone conference call or similar method by 
385.16  which the participants are able to simultaneously hear each 
385.17  other.  If the court decides to release the person, the court 
385.18  shall direct the release and shall issue written findings 
385.19  supporting the decision.  The release may not be delayed pending 
385.20  the written order.  Before deciding to release the person, the 
385.21  court shall make every reasonable effort to provide notice of 
385.22  the proposed release to: 
385.23     (1) any specific individuals identified in a statement 
385.24  under subdivision 1 or 2 or individuals identified in the record 
385.25  who might be endangered if the person was not held; 
385.26     (2) the examiner whose written statement was a basis for a 
385.27  hold under subdivision 1; and 
385.28     (3) the peace or health officer who applied for a hold 
385.29  under subdivision 2. 
385.30     (c) If a person is intoxicated in public and held under 
385.31  this section for detoxification, a treatment facility may 
385.32  release the person without providing notice under paragraph (d) 
385.33  as soon as the treatment facility determines the person is no 
385.34  longer a danger to themselves or others.  Notice must be 
385.35  provided to the peace officer or health officer who transported 
385.36  the person, or the appropriate law enforcement agency, if the 
386.1   officer or agency requests notification. 
386.2      (c) (d) If a treatment facility releases a person during 
386.3   the 72-hour hold period, the head of the treatment facility 
386.4   shall immediately notify the agency which employs the peace or 
386.5   health officer who transported the person to the treatment 
386.6   facility under this section. 
386.7      (e) A person held under a 72-hour emergency hold must be 
386.8   released by the facility within 72 hours unless a court order to 
386.9   hold the person is obtained.  A consecutive emergency hold order 
386.10  under this section may not be issued. 
386.11     Sec. 47.  Minnesota Statutes 2002, section 253B.09, 
386.12  subdivision 1, is amended to read: 
386.13     Subdivision 1.  [STANDARD OF PROOF.] (a) If the court finds 
386.14  by clear and convincing evidence that the proposed patient is a 
386.15  person who is mentally ill, mentally retarded, or chemically 
386.16  dependent and after careful consideration of reasonable 
386.17  alternative dispositions, including but not limited to, 
386.18  dismissal of petition, voluntary outpatient care, voluntary 
386.19  admission to a treatment facility, appointment of a guardian or 
386.20  conservator, or release before commitment as provided for in 
386.21  subdivision 4, it finds that there is no suitable alternative to 
386.22  judicial commitment, the court shall commit the patient to the 
386.23  least restrictive treatment program or alternative programs 
386.24  which can meet the patient's treatment needs consistent with 
386.25  section 253B.03, subdivision 7.  
386.26     (b) In deciding on the least restrictive program, the court 
386.27  shall consider a range of treatment alternatives including, but 
386.28  not limited to, community-based nonresidential treatment, 
386.29  community residential treatment, partial hospitalization, acute 
386.30  care hospital, and regional treatment center services.  The 
386.31  court shall also consider the proposed patient's treatment 
386.32  preferences and willingness to participate voluntarily in the 
386.33  treatment ordered.  The court may not commit a patient to a 
386.34  facility or program that is not capable of meeting the patient's 
386.35  needs.  
386.36     (c) If the commitment as mentally ill, chemically 
387.1   dependent, or mentally retarded is to a service facility 
387.2   provided by the commissioner of human services, the court shall 
387.3   order the commitment to the commissioner.  The commissioner 
387.4   shall designate the placement of the person to the court. 
387.5      (d) If the court finds a proposed patient to be a person 
387.6   who is mentally ill under section 253B.02, subdivision 13, 
387.7   paragraph (a), clause (2) or (4), the court shall commit to a 
387.8   community-based program that meets the proposed patient's 
387.9   needs.  For purposes of this paragraph, a community-based 
387.10  program may include inpatient mental health services at a 
387.11  community hospital. 
387.12     Sec. 48.  Minnesota Statutes 2002, section 256.012, is 
387.13  amended to read: 
387.14     256.012 [MINNESOTA MERIT SYSTEM.] 
387.15     Subdivision 1.  [MINNESOTA MERIT SYSTEM.] The commissioner 
387.16  of human services shall promulgate by rule personnel standards 
387.17  on a merit basis in accordance with federal standards for a 
387.18  merit system of personnel administration for all employees of 
387.19  county boards engaged in the administration of community social 
387.20  services or income maintenance programs, all employees of human 
387.21  services boards that have adopted the rules of the Minnesota 
387.22  merit system, and all employees of local social services 
387.23  agencies.  
387.24     Excluded from the rules are employees of institutions and 
387.25  hospitals under the jurisdiction of the aforementioned boards 
387.26  and agencies; employees of county personnel systems otherwise 
387.27  provided for by law that meet federal merit system requirements; 
387.28  duly appointed or elected members of the aforementioned boards 
387.29  and agencies; and the director of community social services and 
387.30  employees in positions that, upon the request of the appointing 
387.31  authority, the commissioner chooses to exempt, provided the 
387.32  exemption accords with the federal standards for a merit system 
387.33  of personnel administration.  
387.34     Subd. 2.  [PAYMENT FOR SERVICES PROVIDED.] (a) The cost of 
387.35  merit system operations shall be paid by counties and other 
387.36  entities that utilize merit system services.  Total costs shall 
388.1   be determined by the commissioner annually and must be set at a 
388.2   level that neither significantly overrecovers nor underrecovers 
388.3   the costs of providing the service.  The costs of merit system 
388.4   services shall be prorated among participating counties in 
388.5   accordance with an agreement between the commissioner and these 
388.6   counties.  Participating counties will be billed quarterly in 
388.7   advance and shall pay their share of the costs upon receipt of 
388.8   the billing. 
388.9      (b) This subdivision does not apply to counties with 
388.10  personnel systems otherwise provided by law that meet federal 
388.11  merit system requirements.  A county that applies to withdraw 
388.12  from the merit system must notify the commissioner of the 
388.13  county's intent to develop its own personnel system.  This 
388.14  notice must be provided in writing by December 31 of the year 
388.15  preceding the year of final participation in the merit system.  
388.16  The county may withdraw after the commissioner has certified 
388.17  that its personnel system meets federal merit system 
388.18  requirements. 
388.19     (c) A county merit system operations account is established 
388.20  in the special revenue fund.  Payments received by the 
388.21  commissioner for merit system costs must be deposited in the 
388.22  merit system operations account and must be used for the purpose 
388.23  of providing the services and administering the merit system. 
388.24     (d) County payment of merit system costs is effective July 
388.25  1, 2003, however payment for the period from July 1, 2003 
388.26  through December 31, 2003, shall be made no later than January 
388.27  31, 2004. 
388.28     Subd. 3.  [PARTICIPATING COUNTY CONSULTATION.] The 
388.29  commissioner shall ensure that participating counties are 
388.30  consulted regularly and offered the opportunity to provide input 
388.31  on the management of the merit system to ensure effective use of 
388.32  resources and to monitor system performance. 
388.33     Sec. 49.  [256.0451] [HEARING PROCEDURES.] 
388.34     Subdivision 1.  [SCOPE.] The requirements in this section 
388.35  apply to all fair hearings and appeals under section 256.045, 
388.36  subdivision 3, paragraph (a), clauses (1), (2), (3), (5), (6), 
389.1   and (7).  Except as provided in subdivisions 3 and 19, the 
389.2   requirements under this section apply to fair hearings and 
389.3   appeals under section 256.045, subdivision 3, paragraph (a), 
389.4   clauses (4), (8), and (9). 
389.5      The term "person" is used in this section to mean an 
389.6   individual who, on behalf of themselves or their household, is 
389.7   appealing or disputing or challenging an action, a decision, or 
389.8   a failure to act, by an agency in the human services system.  
389.9   When a person involved in a proceeding under this section is 
389.10  represented by an attorney or by an authorized representative, 
389.11  the term "person" also refers to the person's attorney or 
389.12  authorized representative.  Any notice sent to the person 
389.13  involved in the hearing must also be sent to the person's 
389.14  attorney or authorized representative. 
389.15     The term "agency" includes the county human services 
389.16  agency, the state human services agency, and, where applicable, 
389.17  any entity involved under a contract, subcontract, grant, or 
389.18  subgrant with the state agency or with a county agency, that 
389.19  provides or operates programs or services in which appeals are 
389.20  governed by section 256.045. 
389.21     Subd. 2.  [ACCESS TO FILES.] A person involved in a fair 
389.22  hearing appeal has the right of access to the person's complete 
389.23  case files and to examine all private welfare data on the person 
389.24  which has been generated, collected, stored, or disseminated by 
389.25  the agency.  A person involved in a fair hearing appeal has the 
389.26  right to a free copy of all documents in the case file involved 
389.27  in a fair hearing appeal.  "Case file" means the information, 
389.28  documents, and data, in whatever form, which have been 
389.29  generated, collected, stored, or disseminated by the agency in 
389.30  connection with the person and the program or service involved. 
389.31     Subd. 3.  [AGENCY APPEAL SUMMARY.] (a) Except in fair 
389.32  hearings and appeals under section 256.045, subdivision 3, 
389.33  paragraph (a), clauses (4), (8), and (9), the agency involved in 
389.34  an appeal must prepare a state agency appeal summary for each 
389.35  fair hearing appeal.  The state agency appeal summary shall be 
389.36  mailed or otherwise delivered to the person who is involved in 
390.1   the appeal at least three working days before the date of the 
390.2   hearing.  The state agency appeal summary must also be mailed or 
390.3   otherwise delivered to the department's appeals office at least 
390.4   three working days before the date of the fair hearing appeal. 
390.5      (b) In addition, the appeals referee shall confirm that the 
390.6   state agency appeal summary is mailed or otherwise delivered to 
390.7   the person involved in the appeal as required under paragraph 
390.8   (a).  The person involved in the fair hearing should be 
390.9   provided, through the state agency appeal summary or other 
390.10  reasonable methods, appropriate information about the procedures 
390.11  for the fair hearing and an adequate opportunity to prepare.  
390.12  These requirements apply equally to the state agency or an 
390.13  entity under contract when involved in the appeal. 
390.14     (c) The contents of the state agency appeal summary must be 
390.15  adequate to inform the person involved in the appeal of the 
390.16  evidence on which the agency relies and the legal basis for the 
390.17  agency's action or determination. 
390.18     Subd. 4.  [ENFORCING ACCESS TO FILES.] A person involved in 
390.19  a fair hearing appeal may enforce the right of access to data 
390.20  and copies of the case file by making a request to the appeals 
390.21  referee.  The appeals referee will make an appropriate order 
390.22  enforcing the person's rights under the Minnesota Government 
390.23  Data Practices Act, including but not limited to, ordering 
390.24  access to files, data, and documents; continuing a hearing to 
390.25  allow adequate time for access to data; or prohibiting use by 
390.26  the agency of files, data, or documents which have been 
390.27  generated, collected, stored, or disseminated without compliance 
390.28  with the Minnesota Government Data Practices Act and which have 
390.29  not been provided to the person involved in the appeal. 
390.30     Subd. 5.  [PREHEARING CONFERENCES.] (a) The appeals referee 
390.31  prior to a fair hearing appeal may hold a prehearing conference 
390.32  to further the interests of justice or efficiency and must 
390.33  include the person involved in the appeal.  A person involved in 
390.34  a fair hearing appeal or the agency may request a prehearing 
390.35  conference.  The prehearing conference may be conducted by 
390.36  telephone, in person, or in writing.  The prehearing conference 
391.1   may address the following: 
391.2      (1) disputes regarding access to files, evidence, 
391.3   subpoenas, or testimony; 
391.4      (2) the time required for the hearing or any need for 
391.5   expedited procedures or decision; 
391.6      (3) identification or clarification of legal or other 
391.7   issues that may arise at the hearing; 
391.8      (4) identification of and possible agreement to factual 
391.9   issues; and 
391.10     (5) scheduling and any other matter which will aid in the 
391.11  proper and fair functioning of the hearing. 
391.12     (b) The appeals referee shall make a record or otherwise 
391.13  contemporaneously summarize the prehearing conference in 
391.14  writing, which shall be sent to both the person involved in the 
391.15  hearing, the person's attorney or authorized representative, and 
391.16  the agency. 
391.17     Subd. 6.  [APPEAL REQUEST FOR EMERGENCY ASSISTANCE OR 
391.18  URGENT MATTER.] (a) When an appeal involves an application for 
391.19  emergency assistance, the agency involved shall mail or 
391.20  otherwise deliver the state agency appeal summary to the 
391.21  department's appeals office within two working days of receiving 
391.22  the request for an appeal.  A person may also request that a 
391.23  fair hearing be held on an emergency basis when the issue 
391.24  requires an immediate resolution.  The appeals referee shall 
391.25  schedule the fair hearing on the earliest available date 
391.26  according to the urgency of the issue involved.  Issuance of the 
391.27  recommended decision after an emergency hearing shall be 
391.28  expedited. 
391.29     (b) The commissioner shall issue a written decision within 
391.30  five working days of receiving the recommended decision, shall 
391.31  immediately inform the parties of the outcome by telephone, and 
391.32  shall mail the decision no later than two working days following 
391.33  the date of the decision. 
391.34     Subd. 7.  [CONTINUANCE, RESCHEDULING, OR ADJOURNING A 
391.35  HEARING.] (a) A person involved in a fair hearing, or the 
391.36  agency, may request a continuance, a rescheduling, or an 
392.1   adjournment of a hearing for a reasonable period of time.  The 
392.2   grounds for granting a request for a continuance, a 
392.3   rescheduling, or adjournment of a hearing include, but are not 
392.4   limited to, the following: 
392.5      (1) to reasonably accommodate the appearance of a witness; 
392.6      (2) to ensure that the person has adequate opportunity for 
392.7   preparation and for presentation of evidence and argument; 
392.8      (3) to ensure that the person or the agency has adequate 
392.9   opportunity to review, evaluate, and respond to new evidence, or 
392.10  where appropriate, to require that the person or agency review, 
392.11  evaluate, and respond to new evidence; 
392.12     (4) to permit the person involved and the agency to 
392.13  negotiate toward resolution of some or all of the issues where 
392.14  both agree that additional time is needed; 
392.15     (5) to permit the agency to reconsider a previous action or 
392.16  determination; 
392.17     (6) to permit or to require the performance of actions not 
392.18  previously taken; and 
392.19     (7) to provide additional time or to permit or require 
392.20  additional activity by the person or agency as the interests of 
392.21  fairness may require. 
392.22     (b) Requests for continuances or for rescheduling may be 
392.23  made orally or in writing.  The person or agency requesting the 
392.24  continuance or rescheduling must first make reasonable efforts 
392.25  to contact the other participants in the hearing or their 
392.26  representatives, and seek to obtain an agreement on the 
392.27  request.  Requests for continuance or rescheduling should be 
392.28  made no later than three working days before the scheduled date 
392.29  of the hearing, unless there is a good cause as specified in 
392.30  subdivision 13.  Granting a continuance or rescheduling may be 
392.31  conditioned upon a waiver by the requester of applicable time 
392.32  limits, but should not cause unreasonable delay. 
392.33     Subd. 8.  [SUBPOENAS.] A person involved in a fair hearing 
392.34  or the agency may request a subpoena for a witness, for 
392.35  evidence, or for both.  A reasonable number of subpoenas shall 
392.36  be issued to require the attendance and the testimony of 
393.1   witnesses, and the production of evidence relating to any issue 
393.2   of fact in the appeal hearing.  The request for a subpoena must 
393.3   show a need for the subpoena and the general relevance to the 
393.4   issues involved.  The subpoena shall be issued in the name of 
393.5   the department and shall be served and enforced as provided in 
393.6   section 357.22 and the Minnesota Rules of Civil Procedure. 
393.7      An individual or entity served with a subpoena may petition 
393.8   the appeals referee in writing to vacate or modify a subpoena.  
393.9   The appeals referee shall resolve such a petition in a 
393.10  prehearing conference involving all parties and shall make a 
393.11  written decision.  A subpoena may be vacated or modified if the 
393.12  appeals referee determines that the testimony or evidence sought 
393.13  does not relate with reasonable directness to the issues of the 
393.14  fair hearing appeal; that the subpoena is unreasonable, over 
393.15  broad, or oppressive; that the evidence sought is repetitious or 
393.16  cumulative; or that the subpoena has not been served reasonably 
393.17  in advance of the time when the appeal hearing will be held. 
393.18     Subd. 9.  [NO EX PARTE CONTACT.] The appeals referee shall 
393.19  not have ex parte contact on substantive issues with the agency 
393.20  or with any person or witness in a fair hearing appeal.  No 
393.21  employee of the department or agency shall review, interfere 
393.22  with, change, or attempt to influence the recommended decision 
393.23  of the appeals referee in any fair hearing appeal, except 
393.24  through the procedure allowed in subdivision 18.  The 
393.25  limitations in this subdivision do not affect the commissioner's 
393.26  authority to review or reconsider decisions or make final 
393.27  decisions. 
393.28     Subd. 10.  [TELEPHONE OR FACE-TO-FACE HEARING.] A fair 
393.29  hearing appeal may be conducted by telephone, by other 
393.30  electronic media, or by an in-person, face-to-face hearing.  At 
393.31  the request of the person involved in a fair hearing appeal or 
393.32  their representative, a face-to-face hearing shall be conducted 
393.33  with all participants personally present before the appeals 
393.34  referee. 
393.35     Subd. 11.  [HEARING FACILITIES AND EQUIPMENT.] The appeals 
393.36  referee shall conduct the hearing in the county where the person 
394.1   involved resides, unless an alternate location is mutually 
394.2   agreed upon before the hearing, or unless the person has agreed 
394.3   to a hearing by telephone.  Hearings under section 256.045, 
394.4   subdivision 3, paragraph (a), clauses (4), (8), and (9), must be 
394.5   conducted in the county where the determination was made, unless 
394.6   an alternate location is mutually agreed upon before the 
394.7   hearing.  The hearing room shall be of sufficient size and 
394.8   layout to adequately accommodate both the number of individuals 
394.9   participating in the hearing and any identified special needs of 
394.10  any individual participating in the hearing.  The appeals 
394.11  referee shall ensure that all communication and recording 
394.12  equipment that is necessary to conduct the hearing and to create 
394.13  an adequate record is present and functioning properly.  If any 
394.14  necessary communication or recording equipment fails or ceases 
394.15  to operate effectively, the appeals referee shall take any steps 
394.16  necessary, including stopping or adjourning the hearing, until 
394.17  the necessary equipment is present and functioning properly.  
394.18  All reasonable efforts shall be undertaken to prevent and avoid 
394.19  any delay in the hearing process caused by defective 
394.20  communication or recording equipment. 
394.21     Subd. 12.  [INTERPRETER AND TRANSLATION SERVICES.] The 
394.22  appeals referee has a duty to inquire and to determine whether 
394.23  any participant in the hearing needs the services of an 
394.24  interpreter or translator in order to participate in or to 
394.25  understand the hearing process.  Necessary interpreter or 
394.26  translation services must be provided at no charge to the person 
394.27  involved in the hearing.  If it appears that interpreter or 
394.28  translation services are needed but are not available for the 
394.29  scheduled hearing, the appeals referee shall continue or 
394.30  postpone the hearing until appropriate services can be provided. 
394.31     Subd. 13.  [FAILURE TO APPEAR; GOOD CAUSE.] If a person 
394.32  involved in a fair hearing appeal fails to appear at the 
394.33  hearing, the appeals referee may dismiss the appeal.  The person 
394.34  may reopen the appeal if within ten working days the person 
394.35  submits information to the appeals referee to show good cause 
394.36  for not appearing.  Good cause can be shown when there is: 
395.1      (1) a death or serious illness in the person's family; 
395.2      (2) a personal injury or illness which reasonably prevents 
395.3   the person from attending the hearing; 
395.4      (3) an emergency, crisis, or unforeseen event which 
395.5   reasonably prevents the person from attending the hearing; 
395.6      (4) an obligation or responsibility of the person which a 
395.7   reasonable person, in the conduct of one's affairs, could 
395.8   reasonably determine takes precedence over attending the 
395.9   hearing; 
395.10     (5) lack of or failure to receive timely notice of the 
395.11  hearing in the preferred language of the person involved in the 
395.12  hearing; and 
395.13     (6) excusable neglect, excusable inadvertence, excusable 
395.14  mistake, or other good cause as determined by the appeals 
395.15  referee. 
395.16     Subd. 14.  [COMMENCEMENT OF HEARING.] The appeals referee 
395.17  shall begin each hearing by describing the process to be 
395.18  followed in the hearing, including the swearing-in of witnesses, 
395.19  how testimony and evidence are presented, the order of examining 
395.20  and cross-examining witnesses, and the opportunity for an 
395.21  opening statement and a closing statement.  The appeals referee 
395.22  shall identify for the participants the issues to be addressed 
395.23  at the hearing and shall explain to the participants the burden 
395.24  of proof which applies to the person involved and the agency.  
395.25  The appeals referee shall confirm, prior to proceeding with the 
395.26  hearing, that the state agency appeal summary, if required under 
395.27  subdivision 3, has been properly completed and provided to the 
395.28  person involved in the hearing, and that the person has been 
395.29  provided documents and an opportunity to review the case file, 
395.30  as provided in this section. 
395.31     Subd. 15.  [CONDUCT OF THE HEARING.] The appeals referee 
395.32  shall act in a fair and impartial manner at all times.  At the 
395.33  beginning of the hearing the agency must designate one person as 
395.34  their representative who shall be responsible for presenting the 
395.35  agency's evidence and questioning any witnesses.  The appeals 
395.36  referee shall make sure that the person and the agency are 
396.1   provided sufficient time to present testimony and evidence, to 
396.2   confront and cross-examine all adverse witnesses, and to make 
396.3   any relevant statement at the hearing.  The appeals referee 
396.4   shall make reasonable efforts to explain the hearing process to 
396.5   persons who are not represented, and shall ensure that the 
396.6   hearing is conducted fairly and efficiently.  Upon the 
396.7   reasonable request of the person or the agency involved, the 
396.8   appeals referee may direct witnesses to remain outside the 
396.9   hearing room, except during their individual testimony.  The 
396.10  appeals referee shall not terminate the hearing before affording 
396.11  the person and the agency a complete opportunity to submit all 
396.12  admissible evidence, and reasonable opportunity for oral or 
396.13  written statement.  When a hearing extends beyond the time which 
396.14  was anticipated, the hearing shall be rescheduled or continued 
396.15  from day-to-day until completion.  Hearings that have been 
396.16  continued shall be timely scheduled to minimize delay in the 
396.17  disposition of the appeal. 
396.18     Subd. 16.  [SCOPE OF ISSUES ADDRESSED AT THE HEARING.] The 
396.19  hearing shall address the correctness and legality of the 
396.20  agency's action and shall not be limited simply to a review of 
396.21  the propriety of the agency's action.  The person involved may 
396.22  raise and present evidence on all legal claims or defenses 
396.23  arising under state or federal law as a basis for appealing or 
396.24  disputing an agency action, but not constitutional claims beyond 
396.25  the jurisdiction of the fair hearing.  The appeals referee may 
396.26  take official notice of adjudicative facts. 
396.27     Subd. 17.  [BURDEN OF PERSUASION.] The burden of persuasion 
396.28  is governed by specific state or federal law and regulations 
396.29  that apply to the subject of the hearing.  If there is no 
396.30  specific law, then the participant in the hearing who asserts 
396.31  the truth of a claim is under the burden to persuade the appeals 
396.32  referee that the claim is true. 
396.33     Subd. 18.  [INVITING COMMENT BY DEPARTMENT.] The appeals 
396.34  referee or the commissioner may determine that a written comment 
396.35  by the department about the policy implications of a specific 
396.36  legal issue could help resolve a pending appeal.  Such a written 
397.1   policy comment from the department shall be obtained only by a 
397.2   written request that is also sent to the person involved and to 
397.3   the agency or its representative.  When such a written comment 
397.4   is received, both the person involved in the hearing and the 
397.5   agency shall have adequate opportunity to review, evaluate, and 
397.6   respond to the written comment, including submission of 
397.7   additional testimony or evidence, and cross-examination 
397.8   concerning the written comment. 
397.9      Subd. 19.  [DEVELOPING THE RECORD.] The appeals referee 
397.10  shall accept all evidence, except evidence privileged by law, 
397.11  that is commonly accepted by reasonable people in the conduct of 
397.12  their affairs as having probative value on the issues to be 
397.13  addressed at the hearing.  Except in fair hearings and appeals 
397.14  under section 256.045, subdivision 3, paragraph (a), clauses 
397.15  (4), (8), and (9), in cases involving medical issues such as a 
397.16  diagnosis, a physician's report, or a review team's decision, 
397.17  the appeals referee shall consider whether it is necessary to 
397.18  have a medical assessment other than that of the individual 
397.19  making the original decision.  When necessary, the appeals 
397.20  referee shall require an additional assessment be obtained at 
397.21  agency expense and made part of the hearing record.  The appeals 
397.22  referee shall ensure for all cases that the record is 
397.23  sufficiently complete to make a fair and accurate decision.  
397.24     Subd. 20.  [UNREPRESENTED PERSONS.] In cases involving 
397.25  unrepresented persons, the appeals referee shall take 
397.26  appropriate steps to identify and develop in the hearing 
397.27  relevant facts necessary for making an informed and fair 
397.28  decision.  These steps may include, but are not limited to, 
397.29  asking questions of witnesses, and referring the person to a 
397.30  legal services office.  An unrepresented person shall be 
397.31  provided an adequate opportunity to respond to testimony or 
397.32  other evidence presented by the agency at the hearing.  The 
397.33  appeals referee shall ensure that an unrepresented person has a 
397.34  full and reasonable opportunity at the hearing to establish a 
397.35  record for appeal. 
397.36     Subd. 21.  [CLOSING OF THE RECORD.] The agency must present 
398.1   its evidence prior to or at the hearing.  The agency shall not 
398.2   be permitted to submit evidence after the hearing except by 
398.3   agreement at the hearing between the person involved, the 
398.4   agency, and the appeals referee.  If evidence is submitted after 
398.5   the hearing, based on such an agreement, the person involved and 
398.6   the agency must be allowed sufficient opportunity to respond to 
398.7   the evidence.  When necessary, the record shall remain open to 
398.8   permit a person to submit additional evidence on the issues 
398.9   presented at the hearing. 
398.10     Subd. 22.  [DECISIONS.] A timely, written decision must be 
398.11  issued in every appeal.  Each decision must contain a clear 
398.12  ruling on the issues presented in the appeal hearing, and should 
398.13  contain a ruling only on questions directly presented by the 
398.14  appeal and the arguments raised in the appeal. 
398.15     (a) [TIMELINESS.] A written decision must be issued within 
398.16  90 days of the date the person involved requested the appeal 
398.17  unless a shorter time is required by law.  An additional 30 days 
398.18  is provided in those cases where the commissioner refuses to 
398.19  accept the recommended decision. 
398.20     (b) [CONTENTS OF HEARING DECISION.] The decision must 
398.21  contain both findings of fact and conclusions of law, clearly 
398.22  separated and identified.  The findings of fact must be based on 
398.23  the entire record.  Each finding of fact made by the appeals 
398.24  referee shall be supported by a preponderance of the evidence 
398.25  unless a different standard is required under the regulatio